Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Q1 2017 Earnings Presentation
15 slides from Sun Life Financial's earnings presentation, May 10, 2017
Slide 1: Financial & Operating Results for the period ended March 31, 2017
2017 F I NANCI AL & O PERAT I NG RESULT S For the period ended March 31, 2017 Sun Life Financial Inc. (unaudited)
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 10, 2017 (collectively, this “presentation”), including, but not limited to, statements that are not historical facts, are forward-looking and are subject to
Slide 3: Dean Connor, President and Chief Executive Officer
SUN LIFE FINANCIAL DEAN CONNOR President and Chief Executive Officer
Slide 4: Q1 Financial Highlights
Sun Life Financial Q1 2017 FINANCIAL HIGHLIGHTS Q1 2017 Underlying Income by Business Group • Q1’17 reported net income of $551 million, up 2% from Q1’16, SLF UK underlying net income of $573 million, down 2% from Q1’16 SLF Asia SLF • Quarterly common share dividend increased $0.015, or 4%, Canada t
Slide 5: Colm Freyne, Executive Vice President and Chief Financial Officer
SUN LIFE FINANCIAL COLM FREYNE Executive Vice President and Chief Financial Officer
Slide 6: Q1'17 Results
Sun Life Financial Q1 2017 Q1’17 RESULTS C$ millions (except EPS and ROE) Q1’17 Q4’16 Q1’16 Reported net income 551 728 540 Underlying net income 573 560 582 Diluted reported EPS (C$) 0.89 1.18 0.88 Diluted underlying EPS (C$) 0.93 0.91 0.95 Reported ROE 11.0% 14.8% 11.5% Underlying ROE 11.5% 11.4%
Slide 7: Q1 2017 Business Group Performance
Sun Life Financial Q1 Q1 2017 BUSINESS GROUP PERFORMANCE 2017 UNDERLYING NET INCOME (C$ millions) • Favourable mortality experience in Individual Wealth and GRS • Gains from investment activity on insurance contract liabilities 218 229 • Continued investment in Individual Wealth 183 170 111 77 68 79
Slide 8: Sources of Earnings View
Sun Life Financial Q1 SOURCES OF EARNINGS VIEW 2017 Sources of earnings Common shareholders Q1’17 Q1’16 • Expected profit: growth in SLF Canada, SLF U.S. and C$ millions SLF Asia, partially offset by the impact of currency Expected profit on in-force business(1) 666 651 • New business strain: reflec
Slide 9: Sales Results
Sun Life Financial Q1 SALES RESULTS 2017 Change over C$ millions Q1’17 Q1’ 16 Q1’16 Individual life and health 338 214 58% Group life and health 434 274 58% Total Insurance sales 772 488 58% Wealth– SLF Asset Management 30,306 28,608 6% Wealth– Non SLF Asset Management 7,300 4,595 59% Total Wealth s
Slide 10: Appendix
Sun Life Financial Q1 2017 APPENDIX
Slide 11: Operating Expenses
Sun Life Financial Q1 OPERATING EXPENSES 2017 Figures are in 21 1,598 C$ millions 102 11 80 (43) 58 1,369 Q1 2016 Controllable Impact of Contractual Fair Value Currency Other Q1 2017 Actual Expenses Acquisitions Volumes Adjustments Actual • Higher expenses driven by costs directly attributed to stro
Slide 12: Reconciliation of Underlying Income
Sun Life Financial Q1 RECONCILIATION OF UNDERLYING INCOME 2017 Q1’17 Q1’17 C$ millions Pre-tax After-tax Reported net income 551 Net equity market impact (including basis risk impact of $2 million)(1) 30 20 Net interest impact (including credit spread impact of $(11) million and swap (36) (24) sprea
Slide 13: Other Notable Items
Sun Life Financial Q1 OTHER NOTABLE ITEMS 2017 Impact of other items on our net income Q1’ 17 Q1’ 17 C$ millions Pre-tax After-tax Experience related items Impact of investment activity on insurance contract liabilities 24 18 Mortality 19 21 Morbidity (6) (6) Credit 6 4 Lapse and other policyholder
Slide 14: Use of Non-IFRS 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 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