Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Investor Presentation (November 2014)
26 slides from Sun Life Financial's investor presentation, November 2014
Slide 1: Building Sustainable Shareholder Value Q3 2014
BUILDING SUSTAINABLE SHAREHOLDER VALUE Q3 2014
Slide 2: 127,755 advisors, P&D $121 billion, AUM of $698 billion
127,755 advisors(1) · P&D(2) $121 billion · AUM(3) of $698 billion (1) At December 31, 2013. (2) Last Twelve Months (“LTM”) Q3’14; premiums and deposits (“P&D”). Represents a non-IFRS financial measure. Includes Birla Sun Life Asset Management Company’s equity and fixed income mutual funds, based on
Slide 3: Executing on Our Four Pillar Strategy
EXECUTING ON OUR FOUR PILLAR STRATEGY A growth strategy focused on high ROE and strong capital generation through leading positions in attractive markets globally LEADER in FINANCIAL PROTECTION and WEALTH SOLUTIONS in our Canadian home market ✓ ✓ PREMIER GLOBAL ASSET MANAGER, anchored by MFS LEADER
Slide 4: Products & Markets Positioned for Growth
PRODUCTS & MARKETS POSITIONED FOR GROWTH AGING DOWNLOADING of responsibility from GROWTH of the middle class in the of baby boomers government & employers to emerging markets of Asia employees LONG TERM MACRO DRIVERS OF CONSUMER DEMAND 4
Slide 5: Ambitious and Achievable Objectives
AMBITIOUS AND ACHIEVABLE OBJECTIVES Operating Net Income 2011 Adjusted 2015 Objectives(1) (C$ millions) Net Income(2) 2015 operating net income objective of SLF Canada 900 660 $1.85 BILLION SLF U.S. 345 273 MFS 450 275 SLF Asia 225 110 2015 ROE objective of 12% - 13% Corporate (70) (73) Total compan
Slide 6: Robust Sales & Earnings Growth
ROBUST SALES & EARNINGS GROWTH Continuing Operations Change C$ millions LTM Q3’14 over LTM • LTM Q3’14 expected profit(1) up 23% (unless otherwise noted) Q3’13 • LTM Q3’14 new business strain(1) flat Life and Health sales(1)(2) 1,965 12% Wealth sales(1) 17,283 6% OPERATING NET INCOME(1) UNDERLYING N
Slide 7: Wealth Management
WEALTH MANAGEMENT(1) Sales Value of new business Q3’14 (LTM) (C$ billions) C$1.1 billion 114.5 Wealth 108.7 100.0 Protection 70.5 44% 56% LTM 2011 2012 2013 Q3’14 Fee income Assets under management (C$ millions) (C$ billions) 575.4 3,919 528.0 3,339 398.2 2,632 328.8 2,370 LTM 2011 2012 2013 2011 20
Slide 8: Did You Know?
DID YOU KNOW? • Voted by Canadians as “Most Trusted Life Insurance Company” in the country for the fifth consecutive year(1) STRONG BRAND • Achieved gold certification in the Progressive Excellence Program® (PEP)(2) • CARP(3) recommended provider for retirement and estate planning (1) Source: Harris
Slide 9: Strong Sales, Improved Profitability
STRONG SALES, IMPROVED PROFITABILITY LEADER in FINANCIAL PROTECTION and WEALTH SOLUTIONS in our Canadian home market ✓ SLGI CLIENT ASSETS UNDER MANAGEMENT(1) (C$ millions) NEW BUSINESS STRAIN(1) (C$ millions) 8,980 4 2014 HIGHLIGHTS 6,723 LTM 2012 2013 Q3’14 • Achieved growth across 5,739 individual
Slide 10: Strategy & Key Initiatives
STRATEGY & KEY INITIATIVES Capture the • Expand retirement distribution RETIREMENT • Grow retail and institutional retirement assets; grow SLGI MARKET assets OPPORTUNITY • Drive growth in Defined Benefit Solutions Extend #1 • Total Benefits and Mobile Initiatives to differentiate plan MARKET SHARE s
Slide 11: Record Performance at MFS
RECORD PERFORMANCE AT MFS(1) PREMIER GLOBAL ASSET MANAGER, anchored by MFS ✓ ASSETS UNDER MANAGEMENT(2) (US$ billions) OPERATING NET INCOME(2) (US$ millions) 2014 HIGHLIGHTS 568 • Achieved record average net 425 assets 465 386 • Grew and diversified AUM(2) • Won multiple industry awards 304 • Strong
Slide 12: Strategy & Key Initiatives
STRATEGY & KEY INITIATIVES Deliver consistent, • Enhance global research platform strong • Strengthen unique, collaborative culture INVESTMENT PERFORMANCE Broaden • Diversify product sales and grow in our markets GLOBAL • Add investment offices and staff to cover more regions PRESENCE • Expand globa
Slide 13: Accelerated Growth, Lower Volatility
ACCELERATED GROWTH, LOWER VOLATILITY LEADER in U.S. GROUP BENEFITS and INTERNATIONAL high net worth solutions ✓ VOLUNTARY SALES(2) (US$ millions) GROUP BENEFITS(1) BUSINESS IN-FORCE (US$ millions) 2,464 178 175 2014 HIGHLIGHTS 555 2,281 • Transformed Group Benefits(1) sales and service model 141 489
Slide 14: Strategy & Key Initiatives
STRATEGY & KEY INITIATIVES Transform • Improve distribution effectiveness, enhance customer GROUP experience and create a scalable operating model BENEFITS • Differentiate through medical stop-loss offering BUSINESS Grow • Expand product portfolio • Enhance enrollment, distribution and technology VO
Slide 15: Sales Growth, Expanded Footprint
SALES GROWTH, EXPANDED FOOTPRINT GROWING Asia through DISTRIBUTION EXCELLENCE in HIGHER GROWTH MARKETS ✓ INDIVIDUAL LIFE INSURANCE SALES (5)(6) (C$ millions) ASSETS UNDER ADMINISTRATION(5) (C$ billions) 54 2014 HIGHLIGHTS • Sun Life of Canada (Philippines), Inc. was number one for the third 395 33 c
Slide 16: Strategy & Key Initiatives
STRATEGY & KEY INITIATIVES Expand • Expand our agency force and improve productivity MULTI- • Grow distribution through alternative channels, in particular CHANNEL bancassurance DISTRIBUTION Expand • Grow new ventures in Vietnam and Malaysia PRODUCTS • Expand accident and health business and MARKETS
Slide 17: Disciplined Cash Deployment
DISCIPLINED CASH DEPLOYMENT DATE AMOUNT APPLICATION Q2 2013 $300 million Acquisition of Malaysia business Q4 2013 $250 million Recapture of U.S. reinsurance arrangement Q1 2014 $500 million Redemption of debt Q1 2014 $250 million Cash injected into Sun Life Investment Management Inc. Up to 9 million
Slide 18: Diversified by Geography
DIVERSIFIED BY GEOGRAPHY REVENUE BY BUSINESS SEGMENT (1) (%) Corporate 3% SLF Asia 7% SLF Canada 45% MFS 15% SLF U.S. 30% (1) Based on LTM Q3’14; revenue excludes the fair value change in Fair Value Through Profit and Loss (“FVTPL”) assets. Based on Continuing Operations. 18
Slide 19: Strong Capital and Financial Position
STRONG CAPITAL AND FINANCIAL POSITION MCCSR(1) Ratio – SUN LIFE $1.7 billion cash level at Sun Life Financial Inc. as ASSURANCE COMPANY of September 30, 2014 OF CANADA 219% 218% 209% Financial Strength Rating Sun Life Assurance Q3’14 2013 2012 2011 Company of Canada A.M Best A+ A+ A+ A+ DBRS IC-1 IC
Slide 20: Quality Asset Portfolio
QUALITY ASSET PORTFOLIO • Investment portfolio is well diversified Q3’14 INVESTED ASSETS by geography, asset class, industry (C$119 billion) sector or issuer Equities • High quality asset base 5% • Self originated mortgage portfolio is Investment diversified across approximately 2,400 Properties 5%
Slide 21: Disciplined Execution
DISCIPLINED EXECUTION INTENSIFY OUR FOCUS ON GREATER CUSTOMERS DISCIPLINE AROUND HIGH PRODUCTIVITY PERFORMANCE AND EXPENSES CULTURE 21
Slide 22: Sustainable Shareholder Value
SUSTAINABLE SHAREHOLDER VALUE COMPELLING FOUR PILLAR STRATEGY EXECUTING ON GROWTH LOWER RISK, HIGHER ROE BUSINESSES DISCIPLINED CAPITAL DEPLOYMENT AMBITIOUS & ACHIEVABLE OBJECTIVES 22
Slide 23: Contact
INVESTOR RELATIONS CONTACT REKHA SAMPATH Assistant Vice President rekha.sampath@sunlife.com 416-979-6010 23
Slide 24: Use of Non-IFRS Financial Measures
In this presentation, Sun Life Financial Inc. and its subsidiaries, joint ventures and associates are referred to as “we”, “us”, “our” and the “Company”. Use of Non-IFRS Financial Measures We report certain financial information using non-IFRS financial measures, as we believe that they provide info
Slide 25: Forward-Looking Statements
Forward-Looking Statements Certain statements in this presentation, including (i) statements relating to our strategies, (ii) statements relating to the anticipated estimated impact of changes to be made in the fourth quarter of 2014 with respect to the ASB's economic reinvestment assumptions and ch
Slide 26: Material assumptions and risk factors
Material assumptions and risk factors Our 2015 financial objectives are based on the assumptions set out in our 2013 annual MD&A. They are also based on best estimate actuarial assumptions as at December 31, 2012. The Company’s operating ROE is dependent upon its capital levels and options for deplo
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