Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Q3 2008 Earnings Presentation
14 slides from Sun Life Financial's earnings presentation, Oct 21, 2008
Slide 1: Third Quarter 2008 Financial and Operating Results
Q3 Third Quarter 2008 Financial and Operating Results For the period ended September 30, 2008 Sun Life Financial Inc. (unaudited) October 21, 2008 Life’s brighter under the sun
Slide 2: Forward-Looking Statements
Forward-Looking Statements Q3 Certain statements in this document, including those relating to the Company’s strategies and other statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as “expects”, “anticipates”, “intends”, “pl
Slide 3: Donald A. Stewart, Chief Executive Officer
Q3 Donald A. Stewart Chief Executive Officer, Sun Life Financial Life’s brighter under the sun
Slide 4: Q3'08 Highlights
Q3 Q3’08 • Results this quarter were impacted by unprecedented disruptions in capital markets • Core businesses remain sound and continue to maintain momentum • Well capitalized to manage through challenging times 4
Slide 5: Rick McKenney, Chief Financial Officer
Q3 Rick McKenney Executive Vice-President & Chief Financial Officer, Sun Life Financial Life’s brighter under the sun
Slide 6: Q3 Financial Summary
Q3 Financial Summary Operating Income EPS (millions) Reported ($396) ($0.71) Credit Impact ($636) ($1.13) Significant Equity ($326) ($0.58) Market Impact Adjusted Earnings $566 $1.00 6 Unless otherwise indicated, all information in this presentation is as of September 30, 2008, in Canadian dollars
Slide 7: Q3 Credit Impacts
Q3 Credit Impacts Write-downs Income EPS (millions) Lehman Brothers ($234) ($0.42) Washington Mutual ($228) ($0.41) Other ($114) ($0.20) Downgrades ($60) ($0.10) Total ($636) ($1.13) 7
Slide 8: Q3'08 Equity Market Movements
Q3 Q3’08 Equity Market Movements Sept 30’08 vs. YTD to Sept 30’08 June 30’08 S&P 500 (9%) (21%) S&P/TSX 60 (18%) (13%) 8
Slide 9: Significant Equity Market Impacts
Q3 Significant Equity Market Impacts Income EPS (millions) Impact on current period fees and ($131) ($0.23) present value of future fees due to lower account values (unhedged) Increase in reserves for segregated ($134) ($0.24) fund guarantee benefits and other reserve changes (net of hedging) Increa
Slide 10: Performance by Business Group
Q3 Performance by Business Group Operating Credit Impact Significant Equity Earnings Market Impact (millions) SLF Canada $157 ($59) ($126) SLF US ($533) ($488) ($181) MFS $49 - ($7) Asia ($8) ($18) ($2) Corporate ($61) ($71) ($10) Total ($396) ($636) ($326) 10
Slide 11: Capital Position
Q3 Capital Position MCCSR Ratio (1) 213% 209% 209% 202% 212% Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 (1) 11 Represents the MCCSR ratio of Sun Life Assurance Company of Canada. Canada.
Slide 12: Conclusion
Q3 Conclusion • Unprecedented market impacts from global market disruptions – Underlying earnings power of SLF businesses remains sound • Diversified and growing life insurance and wealth businesses – Good Q3’08 sales in core businesses – Group and individual life businesses performing well – Wealth
Slide 13: Questions & Answers
Q3 Questions & Answers Life’s brighter under the sun
Slide 14: Updated Equity Market Sensitivities
Q3 Updated Equity Market Sensitivities 10% increase 10% decrease An immediate 10% An immediate 10% increase across all decrease across all equity markets is equity markets is projected to result in: project to result in: Income An estimated An estimated decrease increase in net in net income of $222