Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Investor Day (2024)
24 slides from Sun Life Financial's investor day presentation, 2024
Slide 1: U.S. Playing to Win
U.S. Playing to Win
Slide 2: Dan Fishbein, M.D., President, Sun Life U.S.
DAN FISHBEIN, M.D. President, Sun Life U.S. 2
Slide 3: A leader in Health and Benefits
• Sun Life U.S. is winning in the market while exceeding our medium-term financial targets • We are in businesses where we can differentiate, win, and have leadership positions • Capital-light and faster growing U.S. Health A leader in Health businesses attract higher earnings multiples, and health
Slide 4: Sun Life U.S. has evolved
SUN LIFE U.S. HAS EVOLVED 2012 2012 - 2016 2017 -2024 Primarily Small, High Today, we have over US$8B individual life traditional performing in annual revenue1, with and annuities Group Group more than 85% from business business business focused on health-related businesses healthcare 1 Revenue = Ne
Slide 5: We are winning and exceeding our objectives
WE ARE WINNING AND EXCEEDING OUR OBJECTIVES Sun Life U.S. Sun Life U.S. Sun Life U.S. Revenue1,2 Underlying Net Income1 Underlying ROE1 (US$B) (US$M) 8.1 14.2% 663 +13% +19% +740bps CAGR CAGR 6.8% 2.8 135 2014 2023 2014 2023 2014 2023 1 Represents a non-IFRS financial measure. Refer to the non-IFRS
Slide 6: We have leading competitive positions
WE HAVE LEADING COMPETITIVE POSITIONS Dental Health & Risk Solutions Employee Benefits In-force Management US$3.2B 2023 Revenues1 US$2.6B 2023 Revenues1 US$2.3B 2023 Revenues1 US$15.9B 2023 AUM6 ~35M Members2 ~8M Members2 ~9M Members2 ~200,000 Members2 Largest dental benefits Largest independent Top
Slide 7: The Health & Benefits market is enormous at US$4.8T
THE HEALTH & BENEFITS MARKET IS ENORMOUS AT US$4.8T1 We are competing in areas where we can be a leader Health and Employee Dental Risk Solutions Benefits US$107B2 ~US$39B3 US$42B4 Dental Benefits Stop-loss Disability Insurance & & & Care Delivery Care Navigation Supplemental Health / Vision 7 Refer
Slide 8: Health is at the core of our strategy
HEALTH IS AT THE CORE OF OUR STRATEGY Access to care will Healthcare We are helping Our focus on health is continue to be difficult costs are rising Clients access the driving growth in due to provider healthcare and higher shortages and an coverage they need, return and lower- aging population with
Slide 9: The dental market is very large with high returns and strong growth opportunities
Dental THE DENTAL MARKET IS VERY LARGE WITH HIGH RETURNS AND STRONG GROWTH OPPORTUNITIES Commercial plans Government plans Group Individual Medicaid / CHIP Medicare Other Total Advantage Employer Individual and Low-income Individuals >65 years Dept. of Defense plans covering public individuals and o
Slide 10: We are the largest benefits provider with strong competitive advantages
Dental WE ARE THE LARGEST BENEFITS PROVIDER1 WITH STRONG COMPETITIVE ADVANTAGES Medicaid / CHIP Commercial Medicare Advantage Advantage Dental+ • Largest provider of • Combined capabilities • Strong health plan • ~80 dental practices Medicaid dental benefits driving growth relationships and dental p
Slide 11: Setting winning objectives for Dental
Dental SETTING WINNING OBJECTIVES FOR DENTAL AFTER-TAX TIMEFRAME2 REVENUE1,2,3 MARGIN1,2 5% US$5B ~5 Years 1 Represents a non-IFRS financial measure. Refer to the non-IFRS Financial Measures section in the appendix to these slides. 2 These statements are forward-looking statements within the meaning
Slide 12: Dental future earnings power
Dental DENTAL FUTURE EARNINGS POWER1 Sun Life U.S. Dental Underlying Net Income2 US$250M Short-term drivers: • ~75% from margin improvement driven by repricing, dental cost management, and expense focus • ~25% from growth driven by new Client wins Medium-term drivers: US$100M • ~75% from growth driv
Slide 13: We are a leader in the large and growing stop-loss market
Health and Risk Solutions WE ARE A LEADER IN THE LARGE AND GROWING STOP-LOSS MARKET Effective risk management and 50%+ pricing discipline set us apart (Stop-loss loss ratios) 3 US$35.5B of Americans get their 90 2023 Stop-loss market healthcare benefits through 85 premiums3 their employer1 80 75 65%
Slide 14: Our focus on health access and outcomes differentiates us
Health and Risk Solutions OUR FOCUS ON HEALTH ACCESS AND OUTCOMES DIFFERENTIATES US Sun Life Health Navigator Sun Life Clinical 360 Care Navigation Cost and care review Our care navigation services featuring Our industry-leading clinical review PinnacleCare help members get the right care program id
Slide 15: Attractive market where we help clients access the care and coverage they need
Employee Benefits ATTRACTIVE MARKET WHERE WE HELP CLIENTS ACCESS THE CARE AND COVERAGE THEY NEED1 Supplemental Health Critical Illness Hospital and Cancer Indemnity Group Short- Absence Group Term and Long-term Management Life Insurance Disability Vision Accident Market US$27.5B US$27.7B US$14.8B Si
Slide 16: Our digital and health-based solutions differentiate us
Employee Benefits OUR DIGITAL AND HEALTH-BASED SOLUTIONS DIFFERENTIATE US Wellness Resources Clinical model We offer virtual behavioral health services and integrative We help members get back to work through a virtual whole-person care and coaching for members collection of best practices and clini
Slide 17: Provides strong, stable underlying earnings contributions and diversification
In-force Management PROVIDES STRONG, STABLE UNDERLYING EARNINGS CONTRIBUTIONS AND DIVERSIFICATION IFM has become a center of We are driving expense efficiencies We are leveraging the asset excellence, managing multiple and capital and reinsurance management capabilities of SLC to closed blocks of Su
Slide 18: Setting winning objectives
SETTING WINNING OBJECTIVES Our health-focused businesses are capital light and have strong earnings growth, supporting robust medium-term targets UNDERLYING NET INCOME1,2 UNDERLYING ROE1,2 GROWTH PER ANNUM 12%+ 18%+ 1 These targets are forward-looking within the meaning of applicable securities laws
Slide 19: A leader in Health and Benefits
• Sun Life U.S. is winning in the market while exceeding our medium-term financial targets • We are in businesses where we can differentiate, win, and have leadership positions • Capital-light and faster growing U.S. Health A leader in Health businesses attract higher earnings multiples, and health
Slide 20: Appendix
Appendix Sun Life | investor vay 20
Slide 21: Forward-Looking Statements
In this presentation, Sun Life Financial Inc. (“SLF” or “SLF Inc.”), its subsidiaries and, where applicable, its joint ventures and associates are collectively referred to as “we”, “us”, “our”, “Sun Life” and the “Company”. Reported net income (loss) refers to Common shareholders' net income (loss)
Slide 22: Use of Non-IFRS Financial Measures
Use of Non-IFRS Financial Measures The Company prepares its financial statements in accordance with international financial reporting standards (“IFRS”). This presentation includes financial measures that are not based on IFRS (“non-IFRS financial measures”). We report certain financial information
Slide 23: Endnotes
Endnotes Slide 5: 2 Revenue = Net Premiums + Fee Income. Net premiums represent a non-IFRS financial measure. Refer to the non-IFRS Financial Measures section in the appendix to these slides and in our Supplementary Financial Information package for the period ended December 31, 2023. Slide 6: 2 As
Slide 24: Endnotes continued
Endnotes continued Slide 11: 3 Revenue = Net Premiums + Fee Income. Net premiums represent a non-IFRS financial measure. Refer to the non-IFRS Financial Measures section in the appendix to these slides and in our Supplementary Financial Information for the period ended December 31, 2023. Slide 13: 1