Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Q2 2025 Earnings Presentation
24 slides from Sun Life Financial's earnings presentation, Aug 8, 2025
Slide 1: Q2'25 financial & operating results
Q2'25 financial & operating results For the period ended June 30, 2025 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 collectively referred to as “we”, “us”, “our”, “Sun Life” and the “Company”. Reported net income (loss) refers to Common shareholders' net income (loss)
Slide 3: Kevin Strain, President and Chief Executive Officer
Kevin Strain President and Chief Executive Officer Sun Life – Q2 2025 3
Slide 4: Q2 2025 financial highlights
Q2 2025 financial highlights Profitability Financial Strength Growth Underlying net income1 Underlying ROE1 Asset management net flows & net wealth sales 1,4,5 $1,015 M +2% 17.6% $(14.9) B +24% Reported net income Reported ROE1 Group - Health & Protection sales1 $716 M +11% 12.4% $535 M +8% Underlyi
Slide 5: Highlights: Delivering on our Purpose and strategy
Highlights: Delivering on our Purpose and strategy Asset Management and Wealth Asia Health Continued momentum and resilience across our Record results and sustained momentum Sustained strength in Canada Asset Management platform • Overall: Strong growth in wealth assets under • Strong sales performa
Slide 6: Tim Deacon, Executive Vice-President & Chief Financial Officer
Tim Deacon Executive Vice-President & Chief Financial Officer Sun Life – Q2 2025 6
Slide 7: Q2 2025 results
Q2 2025 results Profitability Q2’25 Q2’24 Change Results Highlights Asset management & wealth ($ millions) 455 455 - Resilient results from business diversification: Group - Health & Protection ($ millions) 326 305 +7% • Asset management & wealth: flat y/y as higher fee-related earnings in SLC Manag
Slide 8: Q2 2025 results
Q2 2025 results Underlying net income1 ($ millions) Reported net income ($ millions) Impact of currency translation increased underlying net income by $9M2 Impact of currency translation increased reported net income by $7M2 AM CAN U.S. ASIA CORP AM CAN U.S. ASIA CORP 402 379 300 307 330 292 274 254
Slide 9: MFS: A global leader in public asset management
MFS: A global leader in public asset management Business Group Results (US$) Quarterly Highlights (US$) Profitability Q2’25 Q2’24 Change • Underlying net income down 5% compared to the prior year, reflecting a Underlying net income1 ($ millions) 184 194 (5)% decline in fee income from lower average
Slide 10: SLC Management: Growing a premier alternatives platform
SLC Management: Growing a premier alternatives platform Business Group Results Quarterly Highlights Profitability Q2’25 Q2’24 Change • Underlying net income up 7% y/y on higher fee-related earnings (“FRE”), Fee-related earnings1 ($ millions) 89 65 +37% mostly offset by lower net seed investment inco
Slide 11: Canada: A leader in health, wealth, and insurance
Canada: A leader in health, wealth, and insurance Business Group Results Quarterly Highlights Profitability Q2’25 Q2’24 Change • Underlying net income down 6% y/y as strong business growth was more than Asset management & wealth ($ millions) 125 130 (4)% offset by lower investment results and less f
Slide 12: U.S.: A leader in health & benefits
U.S.: A leader in health & benefits Business Group Results (US$) Quarterly Highlights (US$) Profitability Q2’25 Q2’24 Change • Underlying net income down 4% y/y Group - Health & Protection ($ millions) 123 112 +10% • Group - Health & Protection earnings up 10% y/y driven by business growth, Individu
Slide 13: Asia: A regional leader focused on fast-growing markets
Asia: A regional leader focused on fast-growing markets Business Group Results Quarterly Highlights (% in constant currency1,2) Profitability Q2’25 Q2’24 Change CC1,2 • Record underlying net income of $206 million up 13% y/y Individual – Protection3,4 ($ millions) 176 161 +9% +7% • Total CSM up y/y
Slide 14: Appendix
Appendix Sun Life – Q2 2025 14
Slide 15: U.S.: Update on Dental outlook
U.S.: Update on Dental outlook1 Outlook Dental revenue and Medicaid loss ratios2,3 2025 underlying net income2 for Dental expected to be below US$100 1000 105% million: 900 833 • Uncertainty around Medicaid funding resulting in slower than anticipated 800 809 100% repricing with State Medicaid Admin
Slide 16: Drivers of earnings
Drivers of earnings1 Underlying drivers of earnings (DOE) Non-underlying net income adjustments Q2’25 Q1’25 Q2’24 Q2’25 Q1’25 Q2’24 $ millions, pre-tax $ millions, post-tax Risk adjustment release 107 109 104 Common shareholders’ underlying net income (loss) 1,015 1,045 1,000 Contractual Service Mar
Slide 17: DOE experience gains/(losses) – details
DOE experience gains/(losses)1 – details Pre-tax Post-tax $ millions Q2’25 Q1’25 Q2’24 Q2’25 Q1’25 Q2’24 Net equity market impact 3 (63) (12) - (48) (8) Net interest rate impact (103) 76 (42) (94) 57 (52) Impact of changes in the fair value of investment properties (87) (41) (115) (72) (31) (93) Mar
Slide 18: Contractual service margin movement analysis
Contractual service margin movement analysis1 $ millions, pre-tax Q2’25 Q1’25 Q2’24 CSM Highlights CSM at beginning of period 13,619 13,366 12,141 • Total CSM ended Q2’25 at $13.7 billion, up 9% y/y largely driven by organic Impact of new insurance business2 435 406 437 CSM growth Expected movements
Slide 19: Earnings on surplus – Supplemental details
Earnings on surplus – Supplemental details Earnings on surplus – EOS Highlights supplemental details $ millions, pre-tax Q2’25 Q1’25 Q2’24 • Core investment income up q/q driven by market gains on private credit; down y/y Core investment income 146 133 163 due to lower surplus assets and yields Real
Slide 20: Credit experience – Supplemental details
Credit experience– Supplemental details Credit experience – Credit Highlights supplemental details $ millions, pre-tax Q2’25 Q1’25 Q2’24 • Ratings/Net impairments reflect a small number of impairments and unfavourable Ratings/Net impairments1 (31) (21) (15) net ratings migration Expected credit loss
Slide 21: 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 22: 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
Slide 23: Footnotes
Footnotes From slide 4 2 Impact of new insurance business on CSM, also referred to as "new business CSM”, represents growth from sales activity in the period, including individual protection sales (excluding joint ventures), and defined benefit solutions and segregated fund wealth sales in Canada. 3
Slide 24: Footnotes
Footnotes From slide 16 2 Effective Q4'23, prior period amounts in the DOE related to Expenses - other for health, asset management and wealth businesses in Canada have been restated to improve comparability of data over time and with other business units; related amounts in Other fee income and Exp