Sun Life Financial predicts impact of U.S. tax changes

Sun Life Financial says it will take a charge to reported net income of approximately $200 million related to U.S. tax reform when it reports fourth quarter results on Feb. 14.

The expected charge is a result of actuarial liabilities, deferred tax assets and deferred tax liabilities, as well as a one-time tax charge on deemed repatriation of foreign earnings, the company said in a release.

Under the Tax Cuts and Jobs Act, which took effect Jan. 1, the U.S. corporate tax rate was reduced to 21% from the previous rate of 35%. As a result, Sun Life expects the tax expense included in its 2018 underlying net income to decrease by approximately $130 million.

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