Sun Life shares fall as Medicaid funding uncertainty prompts revision to U.S. dental forecast

Sun Life works with U.S. states to administer Medicaid and Medicare Advantage dental benefits through the DentaQuest business, which it acquired in 2022 for US$2.5-billion. Share Save for later Please log in to bookmark this story. Log In Create Free Account

Sun Life Financial’s SLF-T shares plunged as much as 8.5 per cent on Friday, a day after the Canadian insurer said it would miss a 2025 profit target for its dental business in the U.S. due to uncertainty over Medicaid funding.

Sun Life, which bulked up its dental business through the US$2.5-billion acquisition of DentaQuest in 2022, said underlying net income for the dental business, which has struggled in past quarters, is expected to be below US$100-million in 2025.

The forecast revision was driven by unc