Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Q1 2016 Earnings Presentation
19 slides from Sun Life Financial's earnings presentation, May 11, 2016
Slide 1: Financial & Operating Results for the Period Ended March 31, 2016
2016 FINANCIAL & OPERATING RESULTS FOR THE PERIOD ENDED MARCH 31, 2016 Sun Life Financial Inc. (unaudited) Life’s brighter under the sun
Slide 2: Forward-looking statements
Forward-looking statements Certain statements in this presentation and certain oral statements made during the earnings conference call on May 11, 2016 (collectively, this “presentation”), including, but not limited to, statements that are not historical facts, are forward-looking and are subject to
Slide 3: Dean A. Connor, President and Chief Executive Officer
Dean A. Connor President and Chief Executive Officer Life’s brighter under the sun
Slide 4: Q1 Operating Results
Sun Life Financial Q1 OPERATING RESULTS 2016 Q1 2016 Underlying Net Income by Business Group(1) • Q1’16 operating net income of $531 SLF Asia million, up from $446 million in Q1’15 11% • Underlying net income of $582 SLF Canada 35% million, up from $516 million in Q1’15 SLF Asset Management 28% • Qu
Slide 5: Q1 Highlights
Sun Life Financial Q1 Q1 HIGHLIGHTS 2016 LEADER in FINANCIAL • Strong net flows in Sun Life Global Investments mutual funds and Sun Life Guaranteed PROTECTION and WEALTH Investment segregated funds • Launched an innovative digital enrollment tool in Group Retirement Services – MAX my SOLUTIONS in ou
Slide 6: Increasing presence in Canadian mutual fund market
Sun Life Financial INCREASING PRESENCE IN CANADIAN MUTUAL Q1 FUND MARKET 2016 Geographic region Style Manager Asset Class Sector Year over Year change in Net Sales(1) Sun Life Granite Managed Portfolios(2) Industry SLGI 1st Quartile 30,000 73% 1200 25,418 2nd Quartile 25,000 1000 C$ millions 3rd Qua
Slide 7: Colm J. Freyne, Executive Vice President and Chief Financial Officer
COLM J. FREYNE Executive Vice President and Chief Financial Officer Colm J. Freyne Executive Vice President and Chief Financial Officer Life’s brighter under the sun
Slide 8: Q1'16 Results
Sun Life Financial Q1 Q1’16 RESULTS 2016 C$ millions Q1’16 Q4’15 Q1’15 (except EPS and ROE) Operating net income 531 598 446 Underlying net income 582 646 516 Reported net income 540 536 441 Diluted operating EPS (C$) 0.87 0.98 0.73 Diluted underlying EPS (C$) 0.95 1.05 0.84 Operating ROE 11.3% 12.7
Slide 9: Business Group Performance
Sun Life Financial Q1 BUSINESS GROUP PERFORMANCE 2016 SLF Canada STRONG GROWTH IN UNDERLYING NET INCOME (C$ millions) SLF Canada • Favourable investing activity, net gains on available-for- sale assets • Continued investment in Individual Wealth 218 201 170 SLF SLFU.S. U.S. 168 • Favourable morbidit
Slide 10: Sources of Earnings View
Sun Life Financial Q1 SOURCES OF EARNINGS VIEW 2016 Sources of earnings Common shareholders Q1’16 Q1’15 Change C$ millions Expected profit on in-force business 674 639 35 Impact of new business (62) (50) (12) Experience gains or (losses) (54) (49) (5) Assumption changes and management actions (17) (
Slide 11: Sales Results
Sun Life Financial Q1 SALES RESULTS 2016 Change over C$ millions Q1’16 Q1’ 15 Q1’15 Individual life and health 214 199 8% Group life and health 274 249 10% Total Insurance sales 488 448 9% Wealth – SLF Asset 28,995 28,236 3% Management Wealth – Non SLF Asset 4,595 4,984 (8%) Management(1) Total Weal
Slide 12: Operating Expenses
Sun Life Financial Q1 OPERATING EXPENSES 2016 1,600 40 1,400 111 4 1,369 (4) (38) 76 C$ millions 1,200 1,180 1,000 800 Q1 2015 Currency Impact of Controllable Contractual Fair Value Other Q1 2016 Actual Acquisitions Expenses Volumes Adjustments Actual • Higher expenses driven primarily by currency a
Slide 13: Energy Exposure
Sun Life Financial Q1 ENERGY EXPOSURE 2016 Debt Securities & Corporate Loan Carrying Highlights Value by Rating (as of March 31, 2016) • Total of $5.4 billion in energy debt Credit BB and securities and corporate loans, AAA AA A BBB Quality Below 4% of total invested assets. % Total 0.5% 2.9% 33.6%
Slide 14: Appendix
Sun Life Financial Q1 APPENDIX 2016
Slide 15: Reconciliation of Underlying Income
Sun Life Financial Q1 RECONCILIATION OF UNDERLYING INCOME 2016 Q1’16 Q1’16 C$ millions Pre-tax After-tax Operating net income 531 Net equity market impact (including basis risk impact of $(16) million) (27) (18) Net interest impact (including credit spread impact of $9 million and swap spread (69) (
Slide 16: Other Notable Items
Sun Life Financial Q1 OTHER NOTABLE ITEMS 2016 Impact of other items on our net income Q1’16 Q1’16 C$ millions Pre-tax After-tax Experience related items Impact of investment activity on insurance contract liabilities 58 42 Mortality (5) 3 Morbidity 24 21 Credit 4 5 Lapse and other policyholder beha
Slide 17: Global Assets Under Management
Sun Life Financial Q1 GLOBAL ASSETS UNDER MANAGEMENT 2016 Wealth SLF Asset General Account Management Management Solutions • Management of general fund • Source, create and market • Provide holistic wealth assets on SLF balance sheet investment solutions in active management solutions to address • S
Slide 18: 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 these measures pr
Slide 19: Forward-Looking Statements
Forward-Looking Statements Certain statements in this presentation, including statements (i) relating to our growth strategies, (ii) statements concerning our medium-term financial objectives, (iii) statements relating to productivity and expense initiatives, growth initiatives and other business ob