Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Q1 2021 Earnings Presentation
17 slides from Sun Life Financial's earnings presentation, May 6, 2021
Slide 1: Q1 2021 Financial & Operating Results
Q1 2021 Financial & Operating Results For the period ended March 31, 2021 Sun Life Financial Inc. (unaudited)
Slide 2: Forward-looking statements and non-IFRS financial measures
In this presentation, Sun Life Financial Inc. (“SLF” or “SLF Inc.”), its subsidiaries and, where applicable, its joint ventures and associates are referred to as “we”, “us”, “our”, “Sun Life” and the “Company”. Forward-looking statements Certain statements in this presentation and certain oral state
Slide 3: Dean Connor, Chief Executive Officer
Dean Connor Chief Executive Officer S U N L I F E • Q 1 2 0 2 1 3
Slide 4: First quarter key highlights
First quarter key highlights Executing on our ambition to be one of the best insurance and asset management companies globally Financial (vs. Q1 2020) Highlights Strong flows at $937M $850M Fee-eligible inflows of approximately $8.5B; +140% +10% SLC Management Q1 AUM1,4 of $160B Reported net income
Slide 5: First quarter digital achievements across our businesses
First quarter digital achievements across our businesses Digital Enterprise is the next step in the evolution of our Client strategy, bringing the business and IT closer than ever before and transforming the way we work ■ Ella, our digital coach, proactively ■ Online disability claim submissions ■ L
Slide 6: Manjit Singh, Executive Vice President & Chief Financial Officer
Manjit Singh Executive Vice President & Chief Financial Officer S U N L I F E • Q 1 2 0 2 1 6
Slide 7: Q1 2021 results
Q1 2021 results PROFITABILITY Q1’21 Q4’20 Q1’20 YoY Change Reported net income ($ millions) 937 744 391 140% Underlying net income ($ millions)1 850 862 770 10% Underlying net income +10% y/y: Driven by business growth, Reported EPS ($)2 1.59 1.27 0.67 137% favourable morbidity in the U.S. Underlyin
Slide 8: Business group performance
Business group performance Reported net income ($ millions) Underlying net income1 ($ millions) Impact of currency decreased reported net income by $33M Impact of currency decreased underlying net income by $31M 405 239 230 285 291 211 198 256 242 164 161 171 155 159 100 CORP CORP U.S. AM ASIA CAN U
Slide 9: Sources of earnings
Sources of earnings Sources of earnings Common shareholders Q1’21 Q1’20 $ millions Expected profit on in-force business1 913 829 Expected profit: up 10% from prior year driven by Asset Management as well as business growth and higher fee-based Impact of new business1 14 (7) income in Canada and Asia
Slide 10: Sales results by business group
Sales results by business group Insurance Wealth and Asset Management Individual sales1 Wealth sales1 [excluding AM] ($ millions) ($ millions) $437 $389 $7,950 $7,731 +12% (3)% Value of new business1,2 Canada Q1'20 Q1'21 Canada Asia $278M Q1'20 Q1'21 Asia Group sales1 +10% YoY MFS U.S. Asset Managem
Slide 11: Operating expenses
Operating expenses Increase driven by higher share-based compensation, business growth, the impact of acquisitions, and restructuring costs ($ millions) Increase in controllable 2,086 expenses and contractual volumes reflect: 1,733 • Strong top line growth and performance in Asset Management Asset M
Slide 12: Appendix
Appendix S U N L I F E • Q 1 2 0 2 1 12
Slide 13: Reconciliation of underlying net income
Reconciliation of underlying net income Q1’21 Q1’21 $ millions Pre-tax Post-tax Reported net income 937 Net equity market impact (including basis risk impact of $5 million)1 98 72 Net interest rate impact (including credit spread impact of $(8) and swap spread impact of $(12) million)1 289 141 Impac
Slide 14: SOE experience gains/(losses) - details
SOE experience gains/ (losses) - details Q1’21 Q1’20 Q1’21 Q1’20 $ millions Pre-tax Pre-tax Post-tax Post-tax Net equity market impact 98 (483) 72 (360) Net interest rate impact1 289 326 141 74 Impact of changes in the fair value of investment properties1 (6) (13) (3) (10) Market-Related Impacts1 38
Slide 15: Market movements and impacts in the quarter
Market movements and impacts in the quarter YTD YTD YTD Equity Market Impacts Market Movements Q1’21 Q4’20 Q1’20 Q1’21 Q4’20 Q1’20 ($millions, post-tax) S&P/ TSX +7.3% +2.2% (21.6)% Equity market movement and volatility 67 122 (303) S&P 500 +5.8% +16.3% (20.0)% Basis risk 5 (14) (57) CA 10 - year +8
Slide 16: Use of Non-IFRS Financial Measures
Use of Non-IFRS Financial Measures We report certain financial information using non-IFRS financial measures, as we believe that these measures provide information that is useful to investors in understanding our performance and facilitate a comparison of our quarterly and full year results from per
Slide 17: Forward-Looking Statements
Forward-Looking Statements From time to time, the Company makes written or oral forward-looking statements within the meaning of certain securities laws, including the “safe harbour” provisions of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities l