Sun Life Financial Inc. · TSX:SLF

Sun Life Financial — Q2 2018 Earnings Presentation

15 slides from Sun Life Financial's earnings presentation, Aug 9, 2018

  1. Slide 1: Q2'18 Financial & Operating results

    Q2’18 Financial & Operating results For the period ended June 30, 2018 Sun Life Financial Inc. (unaudited) Life’s brighter under the sun

  2. Slide 2: Forward-looking statements

    Forward-looking statements Certain statements in this presentation and certain oral statements made during the earnings conference call on August 9, 2018 (collectively, this “presentation”), including, but not limited to, statements that are not historical facts, are forward-looking and are subject

  3. Slide 3: Dean Connor, President and Chief Executive Officer

    DEAN CONNOR President and Chief Executive Officer Life’s brighter under the sun 3

  4. Slide 4: Strong progress across all four pillars

    Q2 STRONG PROGRESS ACROSS ALL FOUR PILLARS 2018 SUN LIFE FINANCIAL DOING MORE FOR FINANCIAL HIGHLIGHTS KEY ACCOMPLISHMENTS CLIENTS  Q2’18 reported net income of $706 million,  Achieved a milestone $100 billion of Assets  Acquisition of Maxwell Health in the U.S., an up from Q2’17; underlying net

  5. Slide 5: Kevin Strain, Executive Vice President & Chief Financial Officer

    KEVIN STRAIN Executive Vice President & Chief Financial Officer Life’s brighter under the sun 5

  6. Slide 6: Q2'18 Results

    Q2 Q2’18 RESULTS 2018 SUN LIFE FINANCIAL C$ millions (except EPS and ROE) Q2’18 Q1’18 Q2’17 Reported net income 706 669 574 Underlying net income(1) 729 770 689 Diluted reported EPS (C$) 1.16 1.09 0.93 Diluted underlying EPS(1) (C$) 1.20 1.26 1.12 Reported ROE 13.5% 13.1% 11.4% Underlying ROE(1) 14.

  7. Slide 7: Q2'18 Business Group Performance

    Q2 2018 Q2’18 BUSINESS GROUP PERFORMANCE REPORTED NET INCOME (LOSS) SUN LIFE FINANCIAL (C$ millions) Impact of currency reduced reported net income by $21M  Higher reported net income from market related impacts, including 356 CAN  favourable equity markets and increases in real estate valuations

  8. Slide 8: Sources of Earnings View

    Q2 SOURCES OF EARNINGS VIEW 2018 SUN LIFE FINANCIAL Sources of earnings Common shareholders Q2’18 Q2’17 C$ millions Expected profit: business growth driven by SLF Asia and strong results in SLF Canada and SLF U.S. Expected profit on in-force business(1) 732 702 New business strain: reflects improvem

  9. Slide 9: Sales Results by Business Group

    Q2 SALES RESULTS BY BUSINESS GROUP 2018 INSURANCE SALES BY BUSINESS WEALTH SALES BY BUSINESS SUN LIFE FINANCIAL $633M $30.8B 12% -16% YoY YoY SLF Canada SLF U.S. SLF Asia SLF Canada SLF Asset Management SLF Asia  SLF Asia sales down 9% on a constant currency basis. Strong sales  SLF Asia individua

  10. Slide 10: Appendix

    APPENDIX Life’s brighter under the sun 10

  11. Slide 11: Operating Expenses

    Q2 OPERATING EXPENSES 2018 SUN LIFE FINANCIAL Figures are in C$ millions 18 19 72 (22) 85 3,244 (93) 3,165 Q2 2017 YTD Controllable Contractual Fair Value Other Impact of Currency Q2 2018 YTD Expenses Volumes Adjustments Acquisitions  Increase in controllable expenses reflects investments in growth

  12. Slide 12: Reconciliation of Underlying Income

    Q2 RECONCILIATION OF UNDERLYING INCOME 2018 SUN LIFE FINANCIAL Q2’18 Q2’18 C$ millions Pre-tax After-tax Reported net income 706 Net equity market impact (including basis risk impact of $(6) million)(1) 18 9 Net interest impact (including credit spread impact of $6 million and swap spread impact of

  13. Slide 13: Other Notable Items

    Q2 OTHER NOTABLE ITEMS 2018 SUN LIFE FINANCIAL Impact of other items on our net income Q2’18 Q2’18 C$ millions Pre-tax After-tax Experience related items Impact of investment activity on insurance contract liabilities 37 30 Mortality 6 6 Morbidity 56 43 Credit 5 6 Lapse and other policyholder behavi

  14. Slide 14: Use of Non-IFRS Financial Measures

    In this presentation, Sun Life Financial Inc., and its subsidiaries and, where applicable, its 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 bel

  15. 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

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