Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — CSFB 17th Annual Insurance Conference (November 2001)
19 slides from Sun Life Financial's conference presentation, Nov 14, 2001
Slide 1: CSFB 17th Annual Insurance Conference
CSFB 17th Annual Insurance Conference C. James Prieur November 14, 2001 President and Chief Operating Officer
Slide 2: Forward Looking Information
Forward Looking Information This This presentation presentation contains contains forward forward looking looking statements statements with with respect respect to to the the Corporation, Corporation, including including its its business business operations operations and and strategy strategy and
Slide 3: Investment Highlights
Investment Highlights • Diversified, strategically positioned financial services franchise • Solid positions in selected North American and developing Asian insurance markets • Significant and growing Wealth Management business • MFS – A leading U.S. investment management and mutual fund company • A
Slide 4: International Financial Services Company
DIVERSIFIED, STRATEGICALLY POSITIONED FINANCIAL SERVICES FRANCHISE International Financial • U.S. Individual Life Services Company • Group Life and Health Canada • Retirement Products and Services • Individual Life • Group Life and Health MFS • Group Retirement • Investment Management Services • Mut
Slide 5: Major North American Competitor
DIVERSIFIED, STRATEGICALLY POSITIONED FINANCIAL SERVICES FRANCHISE Major North American Competitor Total Assets Under Management(1) (C$ Billions) Met Life $439 SUN LIFE $299 John Hancock $188 Lincoln National $186 Manulife $135 Great West Life $94 Jefferson Pilot $45 5 Note: (1) As at September 30,
Slide 6: Well Diversified Earnings Stream
DIVERSIFIED, STRATEGICALLY POSITIONED FINANCIAL SERVICES FRANCHISE Well Diversified Earnings Stream Other Other Canada Canada Int’l Int’l 5% U.K. 5% U.K. 25% 22% 20% 18% MFS MFS U.S. 26% U.S. 29% Operations Operations 21% 29% United States: 50% United States: 55% Geographic Mix YTD 2001 Geographic M
Slide 7: Diversification Has Created Earnings Consistency and Predictability
DIVERSIFIED, STRATEGICALLY POSITIONED FINANCIAL SERVICES FRANCHISE Diversification Has Created Earnings Consistency and Predictability 250 200 Protection & Other 46% 150 100 MFS 29% Wealth 50 Management Wealth Management 25% 54% 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 7 2000 2001
Slide 8: Leading Market Positions in Canada
DIVERSIFIED, STRATEGICALLY POSITIONED FINANCIAL SERVICES FRANCHISE Leading Market Positions in Canada • Group Retirement Services – #3 Market Rank – Large and Medium Corporations • Group Life & Health – #2 Market Rank – Large Corporations • Individual Life – #4 Market Rank – High Net Worth Individua
Slide 9: Focused U.S. Strategy Has Produced Attractive Growth and Profitability
DIVERSIFIED, STRATEGICALLY POSITIONED FINANCIAL SERVICES FRANCHISE Focused U.S. Strategy Has Produced Attractive Growth and Profitability • Retirement Products and Services –– Focus Focus on on fixed, fixed, indexed indexed and and variable variable annuities annuities –– #10 #10 in in variable vari
Slide 10: Asia Poised for Long-Term Growth
PURSUE EXPANSION PURSUE EXPANSION IN IN KEY KEY STRATEGIC STRATEGIC MARKETS MARKETS Asia Poised for Long-Term Growth • Philippines –– #2 #2 in in individual individual life life insurance insurance –– Established Established and and growing growing business business achieving achieving hurdle hurdle
Slide 11: Keyport and IFMG Acquisition – Strategic Rationale
STRATEGIC ACQUISITION STRATEGIC ACQUISITION STRENGTHENS STRENGTHENS WEALTH WEALTH MANAGEMENT MANAGEMENT BUSINESS BUSINESS Keyport and IFMG Acquisition – Strategic Rationale Scale, Product, Distribution • Improves competitive position in the annuity market • Captures operating economies of scale and
Slide 12: AUM Growth (US$ Bn)
A LEADING A LEADING U.S. U.S. INVESTMENT INVESTMENT MANAGEMENT MANAGEMENT AND AND MUTUAL MUTUAL FUND FUND COMPANY COMPANY AUM Growth (US$ Bn) $147 160 $137 140 $122 120 $98 1996- 1996- 100 Q3 2001 2000 CAGR CAGR $70 80 Institutional 33% 43% $52 1 9 % R: Retail Mutual 60 G Funds 17% 28% CA Internatio
Slide 13: The 9th Largest Mutual Fund Company in the U.S.
A LEADING A LEADING U.S. U.S. INVESTMENT INVESTMENT MANAGEMENT MANAGEMENT AND AND MUTUAL MUTUAL FUND FUND COMPANY COMPANY The 9th Largest Mutual Fund Company in the U.S. September 2001 AUM (US$Bn) 1 Fidelity (combined) $480 2 Vanguard Group 436 3 American Fund Distributors 297 4 Putnam Investments 1
Slide 14: Solid Long-Term Investment Performance
A LEADING A LEADING U.S. U.S. INVESTMENT INVESTMENT MANAGEMENT MANAGEMENT AND AND MUTUAL MUTUAL FUND FUND COMPANY COMPANY Solid Long-Term Investment Performance Equity and Fixed Income Funds Performance (as of 9/30/01) 100 90 77% 75% 80 67% 70 35% 37% 31% 50% 60 50 11% 40 36% 32% 38% 39% 30 20 10 0
Slide 15: Net New Flows At Top Of Non-Proprietary Channel
A LEADING A LEADING U.S. U.S. INVESTMENT INVESTMENT MANAGEMENT MANAGEMENT AND AND MUTUAL MUTUAL FUND FUND COMPANY COMPANY Net New Flows At Top Of Non-Proprietary Channel Net New Nine Months Net New Year Ended Flows % of Ended Flows % of December 2000 US$MM Flows September 2001 US$MM Flows AIM Manage
Slide 16: IPO Commitments Delivered
DELIVERED ON DELIVERED ON IPO IPO COMMITMENTS COMMITMENTS AND AND CONTINUE CONTINUE TO TO MEET MEET GROWTH GROWTH TARGETS TARGETS IPO Commitments Delivered • Cost reduction targets achieved • Capital effectively redeployed — Keyport/IFMG — Keyport/IFMG redeploys redeploys C$1.5 C$1.5 billion billion
Slide 17: Core Earnings Growth
FINANCIAL HIGHLIGHTS FINANCIAL HIGHLIGHTS Core Earnings Growth Adjusted Shareholders’ Net Income from Continuing Operations(1) (C$MM) 250 250 $211 $202 $212 $215 $197 $203 200 $181 200 $147 $154 150 150 100 100 50 50 0 0 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 1999 2000 2001 Shareholders’ Net Income from Continu
Slide 18: ROE Enhancement Initiatives
SUSTAINED GROWTH SUSTAINED GROWTH ROE Enhancement Initiatives ROE Target – 15% • Acquisition of Keyport to increase ROE by 100 – 150 bp • Partial redeployment of U.K. capital • Grow core business profitability through increased sales and product innovation • Additional cost containment 18
Slide 19: Investment Highlights
Investment Highlights • Diversified, strategically positioned financial services franchise • Solid positions in selected North American and developing Asian insurance markets • Significant and growing Wealth Management business • MFS – A leading U.S. investment management and mutual fund company • A
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