Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Q3 2007 Earnings Presentation
22 slides from Sun Life Financial's earnings presentation, November 2007
Slide 1: Delivering Excellence: Third Quarter 2007 Financial and Operating Results
Delivering Excellence Third Quarter 2007 Financial and Operating Results For the period ended September 30, 2007 Sun Life Financial Inc. (unaudited)
Slide 2: Forward-Looking Statement
Forward-Looking Statement Certain statements in this presentation, including those relating to the Company’s strategies and other statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as “expects”, “anticipates”, “intends”, “pl
Slide 3: Donald A. Stewart, Chief Executive Officer
Delivering Excellence Donald A. Stewart Chief Executive Officer, Sun Life Financial
Slide 4: Life's Brighter Under the Sun
Life’s Brighter Under the Sun One in every five Canadians has a business relationship with Sun Life 4
Slide 5: Rick McKenney, Chief Financial Officer
Delivering Excellence Rick McKenney Executive Vice President & Chief Financial Officer Sun Life Financial
Slide 6: Operating EPS and Operating ROE
Operating EPS and Operating ROE • Operating EPS 1.03 1.01 of $1.01, up 9%(1) 0.94 0.96 0.93 0.5 0.5 • Operating ROE 0.5 up 40 basis points (bps) to 14.8% 14.4 14.0 14.6 14.8 13.5 Q3'06 Q4'06 Q1'07 Q2'07 Q3'07 ROE (%) Accounting Changes Fully Diluted EPS (dollars) (1) Unless indicated otherwise all r
Slide 7: Sources of Earnings
Sources of Earnings (C$ millions) Q3'07 Q3'06 Change Expected profit on in-force business 535 469 66 Up 14% Impact of new business (51) (68) 17 Experience gains or losses 95 116 (21) Management actions / changes in assumptions 14 53 (39) Earnings on operations 593 570 23 Earnings on surplus 163 148
Slide 8: Premiums and Deposits
Premiums and Deposits (C$ millions) 19,735 17,267 5,203 3,557 13,710 14,532 Q3'06 Q3'07 Wealth Life & Health 8
Slide 9: Value of New Business
Value of New Business (C$ millions) 839 674 LTM Q3'06 LTM Q3'07 Note: All amounts are based on 2006 annual average exchange rates rates and exclude the value of new business generated from medium term term notes Q3’07 amounts are estimated. LTM refers to last twelve months. Q3’ 9
Slide 10: Assets Under Management
Assets Under Management (C$ billions) 505 516 510 496 463 Q3'06 Q4'06 Q1'07 Q2'07 Q3'07 (1) CI Financial 58 63 65 70 69 Other AUM 227 253 256 251 241 Segregated Funds 64 71 73 73 73 General Funds 113 118 122 116 113 (1) CI Financial company reports. Includes 100% of CI Financial’ Financial’s assets
Slide 11: Capital Management
Capital Management 225% 222% 223% 217% 212% 22.4% 22.3% 22.2% 22.0% 21.7% Q3'06 Q4'06 Q1'07 Q2'07 Q3'07 (1) (2) MCCSR Ratio Debt Ratio (1) Represents the MCCSR ratio of Sun Life Assurance Company of Canada Canada (2) Represents the ratio of sub debt, preferred shares, Cumulative Capital Securities a
Slide 12: SLF Canada
SLF Canada Net Income (C$ millions) 257 240 Q3'06 Q3'07 Group Wealth 32 46 Group Benefits 85 59 Individual Insurance 123 152 & Investments ROE 13.3% 14.7% 12
Slide 13: SLF Canada: Individual Insurance and Wealth Sales
SLF Canada Individual Insurance Individual Wealth Sales Sales(1) (C$ millions) (C$ millions) 889 42 38 13 664 288 8 242 30 29 601 422 Q3'06 Q3'07 Q3'06 Q3'07 Sun Life Financial Advisors Wholesale Seg Funds & Other Mutual Funds (1) Prior period sales have been restated to include segregated fund fund
Slide 14: SLF Canada: Group Retirement Services and Group Benefits
SLF Canada Group Retirement Services Group Benefits DC Plan Assets Business In-Force (C$ billions) (C$ billions) 6.0 31.9 5.7 27.7 Q3'06 Q3'07 Q3'06 Q3'07 14
Slide 15: SLF U.S.
SLF U.S. Net Income (US$ millions) 162 121 Q3'06 Q3'07 Employee 11 22 Benefits Group Individual Life 22 41 Annuities 88 99 ROE 13.9% 14.7% 15
Slide 16: SLF U.S.: Annuity Sales
SLF U.S. Annuity Gross Sales Annuity Net Sales (US$ millions) (Redemptions) 1,282 (US$ millions) 845 (274) (517) Q3'06 Q3'07 Q3'06 Q3'07 Fixed 143 255 Fixed (338) (248) Fixed Indexed 155 97 Fixed Indexed 13 (77) Other Variable 143 159 Other Variable 44 (19) Variable 404 771 Variable (236) 70 16
Slide 17: SLF U.S.: Individual Life and Employee Benefits
SLF U.S. Individual Life Employee Benefits Group Sales Business In-Force (US$ millions) (US$ billions) 218 2.0 150 181 1.1 70 80 37 Q3'06 Q3'07 Q3'06 Q3'07 (1) Individual BOLI/COLI/PPVUL Acquisition (1) Bank- Bank-owned life insurance (BOLI), Corporate- Corporate-owned life insurance (COLI), Private
Slide 18: MFS
MFS Net Income Pre-Tax (US$ millions) Operating Margin 65 36% 52 30% Q3'06 Q3'07 Q3'06 Q3'07 18
Slide 19: MFS: Net Sales and Assets Under Management
MFS Net Sales Assets Under Management (US$ billions) (US$ billions) 204 Q3’06 Q3’07 (0.1) 175 (0.9) Q3'06 Q3'07 Retail Mutual Funds Gross New Sales 4.0 4.9 Redem ptions (5.2) (6.3) Net New Sales (1.2) (1.4) Managed Funds Net New Sales 1.1 0.5 Total Net New Sales (0.1) (0.9) Q3'06 Q3'07 19
Slide 20: SLF Asia
SLF Asia Net Income Sales(1) (C$ millions) (C$ millions) 30 171 13 77 Q3'06 Q3'07 ROE 5.2% 10.9% Q3'06 Q3'07 (1) Includes 100% of the sales of the Company’ Company’s joint ventures in China and India 20
Slide 21: Financial Performance and Objectives
Financial Performance and Objectives Delivering on our medium-term objectives: • Operating EPS of $1.01, up 9% • Operating ROE up 40 basis points to 14.8% • Payout ratio of 33% • Repurchased approximately 7 million common shares for $373 million in the first nine-months of 2007 medium-term objective
Slide 22: Questions & Answers
Delivering Excellence Questions & Answers