Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Q4 2008 Earnings Presentation
14 slides from Sun Life Financial's earnings presentation, Feb 12, 2009
Slide 1: Fourth Quarter 2008 Financial and Operating Results
Q4 Fourth Quarter 2008 Financial and Operating Results For the period ended December 31, 2008 Sun Life Financial Inc. (unaudited) February 12, 2009 Forward-Looking Statements Q4 Certain statements contained in this document, including those relating to the Company’s strategies and other statements t
Slide 2: Q4 2008 Overview
Q4 Donald A. Stewart Chief Executive Officer, Sun Life Financial Q4 Q4 2008 • Earnings impacted by continued deterioration in global capital markets • Sun Life Financial well-capitalized • Company positioning for continuation of difficult environment – Strong risk management – Prioritizing expenses
Slide 3: Q4 EPS
Q4 Rick McKenney Executive Vice-President & Chief Financial Officer, Sun Life Financial Q4 EPS Reported EPS $0.98 Full Year Reported EPS $0.23 $3.90 Q4'07 Q4'08 Fully Diluted Operating EPS $0.98 $1.40 Q4’08 2007 2008 Q4'07 Q4'08 6 ($1.25)
Slide 4: Q4 Earnings After Adjustments; Capital Market Impact
Q4 Earnings After Adjustments Income EPS (C$millions) Q4 Reported 129 0.23 Gain on sale of CI 825 1.47 Asset Impairments and Credit (529) (0.95) Related Losses Equity Market Impact (682) (1.22) Earnings After Adjustments 515 0.92 7 Q4 Capital Market Impact Asset Impairments and Credit Related Equity
Slide 5: Source of Earnings; Premiums and Deposits
Q4 Source of Earnings – Common Shareholders * (C$ millions) Q4'08 Q4'07 Change Expected profit on in-force business 430 534 (104) Impact of new business (85) (8) (77) Experience gains or losses (1,384) (28) (1,356) Assumption changes and management actions (402) 122 (524) Earnings on operations (1,4
Slide 6: Value of New Business; Assets Under Management
Q4 Value of New Business (C$ millions) 881 822 2007 2008 11 Note: All amounts are based on 2007 annual average exchange rates. Q4 Assets Under Management (C$ billions) 425 415 413 389 381 Q4'07 Q1'08 Q2'08 Q3'08 Q4'08 MFS and Other 238 228 226 207 195 Segregated Funds 73 72 73 69 66 General Funds 11
Slide 7: Capital Management; SLF Canada
Q4 Capital Management Total excess capital of $2.5 billion including CI proceeds (1) MCCSR Ratio 213% 209% 232% 209% 202% Q4'07 Q1'08 Q2'08 Q3'08 Q4'08 (2) 2008 RBC ratio within target range of 300-350% (1) MCCSR of Sun Life Assurance Company of Canada 13 (2) RBC ratio of Sun Life Assurance Company
Slide 8: SLF Canada
Q4 SLF Canada Individual Insurance Individual Wealth Sales Sales (C$ millions) (C$ millions) 1,041 895 209 54 304 49 13 10 832 41 591 39 Q4'07 Q4'08 Q4'07 Q4'08 Sun Life Financial Advisors Wholesale Seg Funds & Other Mutual Funds 15 Q4 SLF Canada Group Retirement Services Group Benefits DC Plan Asse
Slide 9: SLF U.S.
Q4 SLF U.S. (US$ millions) Net Income 165 (576) Q4'07 Q4'08 Employee Benefits Group 24 1 Individual Insurance 84 95 Annuities 57 (672) 17 Q4 SLF U.S. Annuity Gross Sales Annuity Net Sales (US$ millions) (Redemptions) (US$ millions) 1,099 756 (473) (490) Q4'07 Q4'08 Q4'07 Q4'08 Fixed 100 126 Fixed (3
Slide 10: SLF U.S.; MFS
Q4 SLF U.S. Individual Insurance Employee Benefits Group Sales Business In-Force (US$ millions) (US$ billions) 2.0 2.1 60 28 21 16 (1) Core BOLI/COLI/PPVUL Q4'07 Q4'08 Q4'07 Q4'08 19 (1) Bank-owned life insurance (BOLI), Corporate-owned life insurance (COLI), Private placement variable universal lif
Slide 11: MFS; SLF Asia
Q4 MFS Net Sales Assets Under Management (US$ billions) (US$ billions) (3.2) (2.1) 200 Q4’07 Q4’08 134 Q4'07 Q4'08 Retail Mutual Funds Gross New Sales 4.1 4.1 Redem ptions (6.0) (6.0) Net New Sales (1.9) (1.8) Managed Funds Net New Sales (1.3) (0.3) Q4'07 Q4'08 21 Total Net New Sales (3.2) (2.1) Q4
Slide 12: Outlook; Medium-Term Financial Objectives
Q4 Outlook Scenario Equity Credit • Release reserves for fees • Lower levels of defaults Recovery to Pre-crisis and guarantees • Release reserves on Levels • Asset management fees narrower credit spreads improve • Stable reserve levels • Defaults in line with Reset Growth from Current • Lower fee in
Slide 13: Looking Ahead; Questions & Answers
Q4 Looking Ahead • Well positioned – Financially disciplined – Solid capital position – Strong risk management – Diversified balance sheet 25 Q4 Questions & Answers
Slide 14: Updated Sensitivities
Q4 Appendix Q4 Updated Sensitivities Income Equity Market An immediate 10% increase across all equity An immediate 10% decrease across all equity markets markets is projected to result in: is projected to result in: An estimated increase in net income of $250-$300 An estimated decrease in net income