Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Q4 2009 Earnings Presentation
15 slides from Sun Life Financial's earnings presentation, Feb 11, 2010
Slide 1: Fourth Quarter 2009 Financial and Operating Results
Q4 Fourth Quarter 2009 Financial and Operating Results For the period ended Dec 31, 2009 Sun Life Financial Inc. (unaudited) February 11, 2010 Forward-Looking Information Certain information in this document, including information relating to the Company’s strategies and other statements that are pr
Slide 2: Highlights
Q4 Donald A. Stewart Chief Executive Officer Q4 Highlights • Sound fundamentals • Delivering top line growth • Executing on strategic initiatives • Capitalizing on key demographic trends 4
Slide 3: Earnings Per Share (Diluted)
Q4 Colm Freyne Executive Vice-President & Chief Financial Officer Q4 Earnings Per Share (Diluted) (C$) Q4’09 Full Year 2009 $1.37 $0.94 $0.52 Q4’08 $0.23 Q4'08 Q4'09 2008* 2009 *Includes gain related to the sale of the Company’s interest in CI Financial 6
Slide 4: Adjusted Earnings from Operations / Credit Impact Summary
Q4 Adjusted Earnings from Operations C$ millions (after-tax) Q4’09 Adjusted earnings from operations 344 Net impairments (92) Downgrades (92) Net Equity Markets 38 Tax 65 Other Items 33 Shareholders Net Income 296 7 Q4 Credit Impact Summary C$ millions (after-tax) Q4’09 Downgrades 92 Impairments Str
Slide 5: Performance by Business Group
Q4 Performance by Business Group Operating Net Income Q4’09 (C$ millions) SLF Canada 243 SLF US (9) MFS 49 SLF Asia 27 Corporate (14) Total 296 9 Q4 Premiums and Deposits (C$ millions) 23,875 3,887 16,460 3,523 15,054 3,810 3,649 7,091 3,111 2,992 5,018 4,384 9,374 4,521 4,029 Q4'08 Q4'08 Q4'09 In Q
Slide 6: Capital Management / Looking Ahead
Q4 Capital Management (1) Minimum Continuing Capital Surplus Requirements (MCCSR) 232% 223% 231% 221% 219% Q4'08 Q1'09 Q2'09 Q3'09 Q4'09 (1) Represents the MCCSR of Sun Life Assurance Company of Canada 11 Q4 Looking Ahead • Estimated Adjusted Earnings from Operations for full year 2010 to be in the
Slide 7: SLF Canada
Q4 Dean Connor Chief Operating Officer Q4 SLF Canada (C$ millions) Q4’09 %change Highlights Sales over Q4’08 • Strong earnings growth Individual Insurance • Strong sales momentum: Sun Life Financial 44 10% – Individual life and health sales up 13% with Advisors improved product mix Wholesale 9 29% –
Slide 8: MFS Investment Management
Q4 MFS Investment Management Net Sales (US$ billions) Highlights • Maintained solid momentum – Strong relative fund performance – $187 AUM, a 40% increase over Q4’08 – Operating margin of 29% 2.2 – Record breaking annual gross sales of $48.5 billion – Net flows $6.1 billion (quarter), $18.9 billion
Slide 9: SLF U.S. / SLF Asia
Q4 SLF U.S. (US$ millions) Q4’09 %change over Q4’08 Sales Highlights Annuities • Focused on core product lines Domestic 716 50% Variable – 50% increase in Domestic VA sales Other Variable 313 291% – Individual Insurance sales up 7% – EBG maintained record sales levels Fixed 35 (72%) • Strengthening
Slide 10: Questions & Answers
Q4 Questions & Answers Q4 Appendix
Slide 11: Invested Assets / Bonds – Diversification
Invested Assets (Carrying Value $108 billion) Q4 Diversified by geography and type As of December 31, 2009 Geography Type 10% 16% 7% 4% 46% 5% 57% 37% 18% Canada U.S. Bonds U.K. Asia & Other Mortgages and Corporate Loans Stock Real Estate Cash & Other 21 Q4 Bonds – Diversification As of December 31,
Slide 12: Bonds – Financials / Bonds – BB and Below
Q4 Bonds – Financials As of December 31, 2009 Total: $14 billion Capital Structure Ratings Breakdown – Senior 65% – Sub 20% 7% 3% – Upper Tier 2 3% – Capital Securities * 12% 20% 28% • Top ten represent 33% of total market value • Strong quality among largest holdings • Broad diversification in lowe
Slide 13: Structured Products / North American Commercial Mortgages
Q4 Structured Products As of December 31, 2009 Amortized Fair BBB or (C$ millions) Cost Value Higher* Commercial Mortgage 2,219 1,772 92.9% Backed Securities (CMBS) Residential Mortgage 1,318 886 80.2% Backed Securities (RMBS) - non-agency RMBS - agency 735 768 100% Collateralized Debt 243 169 34.9%
Slide 14: Commercial Mortgages by Credit Quality / Source of Earnings
Q4 Commercial Mortgages by Credit Quality Carrying Value December 31, 2009 Canada United States North America C$7.2 billion C$6.2 billion C$13.4 billion Other 5% Other NHA NHA Other 11% 12% Satisfactory 22% 18% High 11% Satisfactory 28% 12% Satisfactory High 14% 31% Standard 29% High Standard Standa
Slide 15: Market Risk Sensitivities
Q4 Market Risk Sensitivities Interest Rates 1 Equity Markets 2 Equity Markets 2 1% increase 1% decrease 10% increase 10% decrease 25% increase 25% decrease Net Income (50)–50 (150)–(250) 75-125 (150)–(200) 150-250 (475)-(575) MCCSR ratio 3 Up to 8 Up to 12 Up to 5 Up to 5 Up to 5 Up to 15 percentage