TORONTO (Reuters) -- Sun Life Financial Services of Canada reported higher first-quarter profit yesterday despite volatile world equity markets early in the year.

Sun Life, which has a presence in Bermuda, said net income for the quarter ended March 31 was C$202 million, or 48 Canadian cents a share, compared with pro forma profit of C$181 million, or 45 Canadian cents, last year.

The pro forma earnings reflect the impact of Sun Life's demutualisation for the full reporting periods. Sun Life became a publicly traded company on March 23, 2000.

The earnings fell just shy of six analysts' consensus forecast of 49 Canadian cents a share, according to financial tracking firm Thomson Financial/First Call.

Sun Life stock was up 40 Canadian cents at C$31.40 on the Toronto Stock Exchange late Wednesday morning. The stock has a 52-week range of C$16.50 to C$40.

But, Sun Life's stock, which has slid about 22 percent since the beginning of the year, has sharply underperformed the financial services subindex on the Toronto Stock Exchange, which has fallen about ten percent.

Total revenue in the first quarter was C$4.3 billion, up 16 percent from the C$3.7 billion recorded in the corresponding quarter last year. Return on equity dipped to 12 percent from 12.6 percent.

"Solid earnings added to the company's accumulated capital resources during the quarter,'' said Paul Derksen, chief financial officer in a statement.

"This high level of capital contributed to the decline in return on equity to 12.0 per cent.'' Total assets under management slipped 2 percent to C$316.3 billion, compared with C$321.4 billion a year earlier, because of a downturn in equity markets over the past year.

Sun Life, which has holdings around the world including the United States, Britain and Asia, saw mixed results from some of its markets.

In Canada, its operations contributed C$49 million to earnings, up 40 percent from a year earlier's C$35 million. Britain earned C$39 million in the first quarter, up 129 percent from C$17 million. The Asian market also saw a slight increase in earnings.

But the US insurance business decreased to C$50 million from C$65 million because of "a reduction in venture capital gains net of asset provisions.''