Slide 1: Second Quarter 2009 Financial and Operating Results
Q2 Second Quarter 2009 Financial and Operating Results For the period ended June 30, 2009 Sun Life Financial Inc. (unaudited) August 6th, 2009 Forward-Looking Statements Q2 Certain statements contained in this document, including those relating to the Company’s strategies and other statements that a
Slide 2: Premiums and Deposits
Q2 Donald A. Stewart Chief Executive Officer, Sun Life Financial Q2 Premiums and Deposits (C$ millions) 22,120 19,991 3,743 18,122 4,312 4,067 10,217 9,545 8,679 8,160 5,376 6,135 Q2'08 Q2'08 in Q2'09 Currency Q2'09 (1) Managed Funds Wealth Products Life & Health (1) Includes mutual funds, segregate
Slide 3: MFS Investment Management
Q2 MFS Investment Management Net Sales % of MFS Fund Assets Ranked in Top (US$ billions) Half of Lipper Category Average* 4.9 As of June 30, 2009 Percentage 1.2 3 Years 92% 1.0 3.7 5 Years 95% 1.4 (0.40) 10 Years 89% Q2'08 Q2'09 Institutional Retail *Based on Class A shares at NAV and Class A Assets
Slide 4: Reserve Impacts and Asset Impairments
Q2 Reserve Impacts Net Income Diluted Operating C$ millions EPS (After Tax) ($) Equity Markets 432 0.77 Interest Rates 104 0.19 Credit Spreads 117 0.21 Downgrades (217) (0.39) Future Commercial (97) (0.17) Mortgage Defaults Total 339 0.61 7 Q2 Asset Impairments • Asset impairments of $121 million af
Slide 5: Source of Earnings and Performance by Business Group
Q2 Source of Earnings – Common Shareholders * (C$ millions) Q2'09 Q2'08 Change Expected profit on in-force business 536 482 54 Impact of new business (76) (70) (6) Experience gains or losses 661 (74) 735 Assumption changes and management actions (362) 114 (476) Earnings on operations 759 452 307 Ear
Slide 6: SLF Canada
Q2 Dean Connor President, SLF Canada Q2 SLF Canada Individual Insurance Individual Wealth Sales Sales (C$ millions) (C$ millions) 1,075 974 305 185 44 42 7 7 770 789 37 35 Q2'08 Q2'09 Q2'08 Q2'09 Sun Life Financial Advisors Wholesale Seg Funds & Other Mutual Funds 12
Slide 7: SLF Canada Group Sales
Q2 SLF Canada Group Retirement Services Group Benefits Gross Sales Gross Sales (C$ millions) (C$ millions) 1,476 983 69 41 Q2'08 Q2'09 Q2'08 Q2'09 13 Q2 Jon Boscia President, Sun Life Financial
Slide 8: SLF U.S.
Q2 SLF U.S. Annuity Gross Sales Annuity Net Sales (US$ millions) (Redemptions) (US$ millions) 1,512 648 931 (566) Q2'08 Q2'09 Q2'08 Q2'09 Fixed 170 416 Fixed (235) 212 Fixed Index 77 84 Fixed Index (90) (87) Other Variable 174 179 Other Variable (70) 63 Variable 510 833 Variable (171) 460 15 Q2 SLF
Slide 9: Capital Management
Q2 Colm Freyne SVP and Acting CFO, Sun Life Financial Q2 Capital Management Minimum Continuing Capital Surplus Requirements (MCCSR) (1) MCCSR 232% 231% 223% 209% 202% Q2'08 Q3'08 Q4'08 Q1'09 Q2'09 (1) Represents the MCCSR of Sun Life Assurance Company of Canada 18
Slide 10: Future Impact of Certain Prospective Actuarial Assumption Changes
Q2 Future Impact of Certain Prospective Actuarial Assumption Changes • Updating equity and interest rate related assumptions in Q3’09 in response to pronounced market volatility – Estimated impact in the range of ($450) to ($550) million Additional details can be found in Sun Life Financial’s Q2’09
Slide 11: Closing Comments
Q2 Closing Comments 21 Looking Ahead Q2 • Maintaining momentum • Continue to focus on: – Disciplined growth – Maintaining conservative reserves and deep capital base – Protecting customers and delivering sustainable value to shareholders 22
Slide 12: Questions & Answers
Questions & Answers Q2 Appendix 24
Slide 13: Invested Assets
Q2 Invested Assets Diversified by geography Carrying Value 2007 2008 Q2 2009 $103 billion $107 billion $108 billion 5% 9% 10% 7% 7% 7% 44% 45% 40% 48% 39% 39% Canada U.S. U.K. Asia & Other 25 Q2 Invested Assets Diversified by type Carrying Value 2007 2008 Q2 2009 $103 billion $107 billion $108 billi
Slide 14: Bonds – Diversification
Q2 Bonds – Diversification As of June 30, 2009 Ratings Breakdown Sector Breakdown 2% 5% 17% 25% 25% 30% 17% 8% 9% 7% 6% 2%5% 5% 6% 31% Financials Securitization AAA Consumer Discretionary Consumer Staples AA A Energy Industrials BBB Below Investment Grade Materials Telecommunication Services Utiliti
Slide 15: Bonds – Below Investment Grade and Structured Products
Q2 Bonds – Below Investment Grade As of June 30, 2009 • Below investment grade of 5% is in the low Sector Breakdown range compared to competitors 3% 24% Ratings Breakdown 13% 1% 4% 4% 7% 9% 2% 15% 3% 7% 38% 70% Consumer Discretionary Energy BB B CCC CC D Financials Governments Industrials Materials
Slide 16: CMBS Vintage and Commercial Mortgages
Q2 CMBS by Vintage based on Market Value As of June 30, 2009 A seasoned portfolio with much lower exposure to troubled 2006-2007 vintages compared to average 30 Sun Life Barclays CMBS Index 26.5 25 23.6 21.6 20 18.8 Percent 15 12.1 11.5 11.8 10.1 10 7.8 7.4 6.4 6.5 5.9 6.0 5.4 5.3 5.3 5 3.5 1.4 0.8
Slide 17: Commercial Mortgages by Credit Quality
Q2 Commercial Mortgages by Credit Quality Carrying Value June 30, 2009 Canada United States North America C$7.6 billion C$7.1 billion C$14.7 billion Other Other Other Satisfactory 3% 6% 9% 2% Satisfactory 6% NHA NHA 11% Satisfactory High 22% 11% 31% Standard 35% High 35% Standard High Standard 42% 3