Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Q4 2013 Earnings Presentation
16 slides from Sun Life Financial's earnings presentation, Feb 13, 2014
Slide 1: Financial and operating results for the period ended December 31, 2013
Financial and operating results for the period ended December 31, 2013 Sun Life Financial Inc. (unaudited) Forward-looking statements Certain statements in this presentation and certain oral statements made during the earnings conference call on February 13, 2014 (collectively, this “presentation”),
Slide 2: Strong quarter and year overall
Dean A. Connor President and Chief Executive Officer 3 Strong quarter and year overall • Operating net income of $642 million, up from $333 million in Q4’12 • Significant contribution from restructuring of an internal reinsurance arrangement • FY 2013 operating net income of $1,943 million • FY 2013
Slide 3: Solid Q4 earnings finish off strong year
Solid Q4 earnings finish off strong year Continuing Operations C$ millions Q4’13 Q3’13 Q4’12 FY2013 (unless otherwise noted) Operating net income 642 422 333 1,943 Reported net income 571 324 284 1,696 Diluted Operating EPS 1.05 0.69 0.56 3.21 (C$) (1) Operating ROE 17.7% 12.6% 13.1% 14.8% MCCSR(2)
Slide 4: Executing on our four pillar strategy
Executing on our four pillar strategy A strategy focusing on growth, higher ROE, and less volatile businesses Becoming the best Enhancing leadership performing life Growing our Growing Asia position in U.S. group insurer in Canada asset to be a more insurance and management significant part becoming
Slide 5: SLF Canada – Q4'13 / SLF U.S. – Q4'13
SLF Canada – Q4’13 Individual Insurance Sales (C$ millions) Solid performance across 275 businesses 221 234 • Individual Insurance sales up 34%, with strong results across both wholesale and Career Sales 2011 2012 2013 Force channels • Individual Wealth sales up 31%, with strong payout annuity and m
Slide 6: Asset Management – Q4'13 / SLF Asia – Q4'13
Asset Management – Q4’13 Assets under Exceptional growth and management performance at MFS (US$ billions) • Another exceptional quarter 413 • Gross sales of US$23 billion • Average net assets at US$398 billion 323 253 • AUM US$413 billion, an all time high • Continued strong performance Q4'11 Q4'12
Slide 7: Q4'13 financial highlights
Colm J. Freyne Executive Vice President and Chief Financial Officer 13 Q4’13 financial highlights • Solid top and bottom line performance(1) • Operating net income of $642 million in Q4’13 from $333 million in Q4’12 • Operating net income excluding the net impact of market factors of $605 million •
Slide 8: Solid underlying earnings; Strong growth in expected profit
Solid underlying earnings Q4’13 Q4’13 Continuing Operations Pre- After- (C$ millions) tax tax Operating net income 642 Net impact of market factors 26 37 Operating net income excluding the net impact of market factors 605 Other notable items 94 167 15 Strong growth in expected profit, reduced new bu
Slide 9: SLF Canada performance / SLF U.S. performance
SLF Canada performance Change (C$ millions) Q4’13 over Q4’12 Operating net income 137 (8)% Sales Individual Insurance 87 34% Individual Wealth – Fixed Products 418 32% Individual Wealth – Mutual Funds 586 42% Individual Wealth – Segregated Funds 97 (12)% Group Benefits 80 (4)% Group Retirement Servi
Slide 10: MFS performance / SLF Asia performance
MFS performance Change over (US$) Q4’13 Q4’12 Operating Net Income (US$ millions) 148 74% 10 percentage Pre-tax operating profit margin 45% points Gross Sales (US$ billions) 22.5 (14)% Net Sales (US$ billions) 3.3 (71)% Assets under management (US$ billions) 413 28% Growing our asset management busi
Slide 11: Key takeaways – Q4'13
Key takeaways – Q4’13 Strong quarter and year overall Growing underlying earnings power Efficient management of capital Disciplined execution 21 Stephen C. Peacher Executive Vice President and Chief Investment Officer 22
Slide 12: Sun Life Investment Management Inc.
Sun Life Investment Management Inc. • Launching new institutional asset management business to capitalize on trends in the defined benefit pension plan market • Growing demand for alternative investments • De-risking and liability-driven investments strategies Sun Life Investment Management mission
Slide 13: Offers a full range of solutions
Offers a full range of solutions Making our capabilities available to defined benefit pension plans and other institutional investors in Canada through our subsidiary Sun Life Investment Management Inc. Sun Life Investment Management Inc. Defined Benefit Solutions* Private Annuity Commercial LDI Lon
Slide 14: Growing asset management
Growing asset management A complement to our other asset management businesses in Canada MFS Investment Sun Life Global Sun Life Investment Management Investments (Canada) Inc. Management Inc. Canada Limited • Investment management • Mutual funds for retail • Private asset class funds for DB and DC
Slide 15: Net impact of market factors; Other notable items
Net impact of market factors Continuing Operations Q4’13 Q4’13 (C$ millions, unless otherwise stated) Pre-tax After-tax Operating net income 642 Net equity market impact (including basis risk impact of $(18) million) 28 22 Net interest impact (including credit spread impact of $(25) million, swap sp
Slide 16: Forward-Looking Statements
Use of Non-IFRS Financial Measures We report certain financial information using non-IFRS financial measures, as we believe that they provide information that is useful to investors in understanding our performance and facilitate a comparison of the quarterly and full year results from period to per