Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Q1 2019 Earnings Presentation
15 slides from Sun Life Financial's earnings presentation, May 9, 2019
Slide 1: Q1 2019 Financial & Operating Results
2019 Financial & Operating Q1 Results For the period ended March 31, 2019 Sun Life Financial Inc. (unaudited)
Slide 2: Forward-looking statements
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, President and Chief Executive Officer
DEAN CONNOR President and Chief Executive Officer Q1 2019 | Sun Life Financial | 3
Slide 4: Strong progress across all four pillars
STRONG PROGRESS ACROSS ALL FOUR PILLARS Financial highlights Key accomplishments Doing more for Clients Q1’19 reported net income of $623 million; Assets under management (“AUM”)(1) reached a Our digital capabilities enabled us to reach over 1.5 underlying net income(1) of $717 million milesto
Slide 5: Kevin Strain, Executive Vice President & Chief Financial Officer
KEVIN STRAIN Executive Vice President & Chief Financial Officer Q1 2019 | Sun Life Financial | 5
Slide 6: Q1'19 Results
Q1’19 RESULTS $ millions (except EPS and ROE) Q1’19 Q4’18 Q1’18 Reported net income 623 580 669 Underlying net income(1) 717 718 770 Diluted reported EPS (C$) 1.04 0.96 1.09 Diluted underlying EPS(1) (C$) 1.20 1.19 1.26 Reported ROE 11.5% 10.9% 13.1% Underlying ROE(1) 13.3% 13.6% 15.1% Assets unde
Slide 7: Q1'19 Business Group Performance
Q1’19 BUSINESS GROUP PERFORMANCE UNDERLYING NET INCOME(1) ($ millions) Strong business growth and favourable investing activity gains, Impact of currency increased underlying net income by $22M CAN mortality and expense experience, offset by credit experience and the impact of interest on par seed
Slide 8: Sources of Earnings View
SOURCES OF EARNINGS VIEW Sources of earnings Expected profit: business growth across SLF Canada Common shareholders Q1’19 Q1’18 and in the SLF U.S. Stop-loss business, offset by the $ millions impact of lower average net assets at MFS Expected profit on in-force business 739 734 New business strain:
Slide 9: Sales Results by Business Group
SALES RESULTS BY BUSINESS GROUP INSURANCE SALES(1) BY BUSINESS WEALTH SALES(1) BY BUSINESS $780M VALUE OF NEW $36.0B BUSINESS(1),(2) -10% +17% YoY YoY +14% YoY SLF Canada SLF U.S. SLF Asia SLF Canada SLF Asset Management SLF Asia SLF Canada sales up 22% mainly due to large case sales in SLF Cana
Slide 10: Appendix
APPENDIX Q1 2019 | Sun Life Financial | 10
Slide 11: Operating Expenses
OPERATING EXPENSES Figures are in $ millions 0% on a constant currency basis 46 8 1,668 16 1,618 (5) (1) (14) Q1 2018 Controllable Contractual Currency Fair Value Impact of Other Q1 2019 Expenses Volumes Adjustments Acquisitions Increase in controllable expenses reflects investments in growth part
Slide 12: Reconciliation of Underlying Net Income
RECONCILIATION OF UNDERLYING NET INCOME Q1’19 Q1’19 $ millions Pre-tax After-tax Reported net income 623 Net equity market impact (including basis risk impact of $(10) million)(1) 83 58 Net interest rate impact (including credit spread impact of $(27) million and (243) (133) swap spread impact of $1
Slide 13: Other Notable Items
OTHER NOTABLE ITEMS Impact of other items on our net income Q1’19 Q1’19 $ millions Pre-tax After-tax Experience related items Impact of investment activity on insurance contract liabilities 77 61 Mortality 21 15 Morbidity 29 25 Credit (35) (29) Lapse and other policyholder behaviour (10) (8) Expense
Slide 14: 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 measure provide information that is useful to investors in understanding our performance and facilitate a comparison of our quarterly and full year results from peri
Slide 15: 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