Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Q2 2008 Earnings Presentation
25 slides from Sun Life Financial's earnings presentation, Jul 31, 2008
Slide 1: Second Quarter 2008 Financial and Operating Results
Q2 Second Quarter 2008 Financial and Operating Results For the period ended June 30, 2008 Sun Life Financial Inc. (unaudited) July 31, 2008 Life’s brighter under the sun
Slide 2: Forward-Looking Statements
Forward-Looking Statements Q2 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
Q2 Donald A. Stewart Chief Executive Officer, Sun Life Financial Life’s brighter under the sun
Slide 4: Q2 2008
Q2 Q2 2008 • Mixed performance in a difficult environment • Remain committed to medium-term financial objectives • Continue to execute on strategy 4
Slide 5: Rick McKenney, Chief Financial Officer
Q2 Rick McKenney Executive Vice-President & Chief Financial Officer, Sun Life Financial Life’s brighter under the sun
Slide 6: Fully Diluted Operating EPS
Q2 Fully Diluted Operating EPS 1.03 0.91 Q2'07 Q2'08 6
Slide 7: Source of Earnings – Common Shareholders
Q2 Source of Earnings – Common Shareholders * (C$ millions) Q2'08 Q2'07 Change Expected profit on in-force business 530 510 20 Impact of new business (70) (47) (23) Experience gains or losses (75) 184 (259) Assumption changes and management actions 114 9 105 Earnings on operations 499 656 (157) Earn
Slide 8: Premiums and Deposits
Q2 Premiums and Deposits (C$ millions) 21,344 18,557 3,284 17,441 4,250 4,077 9,411 8,489 7,988 8,649 5,818 5,376 Q2'07 Q2'08 Constant Q2'08 Currency (1) Managed Funds Other Wealth Products Life & Health (1) Includes mutual funds, segregated funds and annuities. 8
Slide 9: Value of New Business
Q2 Value of New Business (C$ millions) 13% 872 775 LTM Q2 '07 LTM Q2 '08 9 Note: All amounts are based on 2007 annual average exchange rates. MTNs MTNs are excluded and Q2 ’08 amounts are estimated. LTM refers to the last twelve months.
Slide 10: Assets Under Management
Q2 Assets Under Management (C$ billions) 510 496 492 481 481 Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 CI Financial (1) 70 69 67 66 68 MFS and Other 251 241 238 228 226 Segregated Funds 73 73 73 72 73 General Funds 116 113 114 115 114 (1) Financial’s assets under management. CI Financial company reports. Includ
Slide 11: Capital Management
Q2 Capital Management 22.0% 22.3% 22.0% 23.2% 24.4% 217% 212% 213% 209% 209% Q2'07 Q3'07 Q4'07 Q1'08 Q2'08 (1) (2) MCCSR Ratio Debt Ratio (1) 11 (2) Represents the MCCSR ratio of Sun Life Assurance Company of Canada. Canada. Represents the ratio of sub debt, preferred shares, Partnership Capital Sec
Slide 12: SLF Canada
Q2 SLF Canada (C$ millions) Net Income 296 280 Q2'07 Q2'08 Group Wealth 34 39 Group Benefits 69 80 Individual Insurance & 177 177 Investments ROE 16.1% 16.7% 12
Slide 13: SLF Canada Individual Sales
Q2 SLF Canada Individual Sales Individual Insurance Individual Wealth (C$ millions) (C$ millions) 1,075 928 305 49 362 48 11 12 770 37 37 566 Q2'07 Q2'08 Q2'07 Q2'08 Sun Life Financial Advisors Wholesale Seg Funds & Other Mutual Funds 13
Slide 14: SLF Canada Group Retirement and Group Benefits
Q2 SLF Canada Group Retirement Services Group Benefits DC Plan Assets Business In-Force (C$ billions) (C$ billions) 33.6 32.0 6.4 6.0 Q2'07 Q2'08 Q2'07 Q2'08 14
Slide 15: SLF U.S.
Q2 SLF U.S. (US$ millions) Net Income 142 82 Q2'07 Q2'08 Employee Benefits 25 25 Group Individual Insurance 37 35 Annuities 80 22 ROE 14.0% 7.8% 15
Slide 16: SLF U.S. Annuity Sales
Q2 SLF U.S. Annuity Gross Sales Annuity Net Sales (US$ millions) (Redemptions) 1,278 (US$ millions) 931 (295) (566) Q2'07 Q2'08 Q2'07 Q2'08 Fixed 186 170 Fixed (345) (235) Fixed Index 127 77 Fixed Index (52) (90) Other Variable 160 174 Other Variable 20 (70) Variable 805 510 Variable 82 (171) 16
Slide 17: SLF U.S. Individual Insurance and Employee Benefits
Q2 SLF U.S. Individual Insurance Employee Benefits Group Sales Business In-Force (US$ millions) (US$ billions) 2.0 2.0 72 41 27 13 (1) Core BOLI/COLI/PPVUL Q2'07 Q2'08 Q2'07 Q2'08 17 (1) Bank- Bank-owned life insurance (BOLI), Corporate- Corporate-owned life insurance (COLI), Private placement varia
Slide 18: MFS Net Income and Operating Margin
Q2 MFS Net Income Pre-Tax (US$ millions) Operating Margin 62 34% 34% 55 Q2'07 Q2'08 Q2'07 Q2'08 18
Slide 19: MFS Net Sales and Assets Under Management
Q2 MFS Net Sales Assets Under Management (US$ billions) (US$ billions) 202 1.0 (0.1) 183 Q2’07 Q2’08 Q2'07 Q2'08 Retail Mutual Funds Gross New Sales 5.3 4.6 Redem ptions (6.1) (5.0) Net New Sales (0.8) (0.4) Managed Funds Net New Sales 0.7 1.4 Total Net New Sales (0.1) 1.0 Q2'07 Q2'08 19
Slide 20: SLF Asia
Q2 SLF Asia Net Income Sales(1) (C$ millions) (C$ millions) 166 17 88 12 Q2'07 Q2'08 Q2'07 Q2'08 ROE 6.0% 4.1% (1) Company’s joint ventures in China and India. Includes 100% of the sales of the Company’ 20
Slide 21: Outlook
Q2 Outlook • Economic conditions remain challenging • Remain committed to medium-term financial objectives • Continue to execute on strategy 21
Slide 22: Questions & Answers
Q2 Questions & Answers Life’s brighter under the sun
Slide 23: Appendix
Q2 Appendix Life’s brighter under the sun
Slide 24: Asset-Backed Securities
Q2 Asset-Backed Securities As at June 30, 2008 (CAD$millions) June 30, 2008 December 31, 2007 Investment Investment Fair Value Fair Value Grade % Grade % Commercial Mortgage-Backed Securities 2,292 99.6 2,523 99.6 Residential Mortgage-Backed Securities: Agency 1,112 100.0 1,112 100.0 Non-Agency 1,25
Slide 25: Asset-Backed Securities: Vintage & Rating
Q2 Asset-Backed Securities Vintage & Rating As at June 30, 2008 Commercial Residential Residential Collateralized Mortgage- Mortgage Backed Mortgage Backed Debt Other Backed Securities - Securities - Non - Obligations Securities Agency Agency Rating AAA 64.2% 100.0% 34.2% 48.7% 25.4% AA 9.4% 0.0% 47