Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Q4 2024 Earnings Presentation
37 slides from Sun Life Financial's earnings presentation, February 2025
Slide 1: Q4'24 Delivering sustainable shareholder value
Q4’24 Delivering sustainable shareholder value
Slide 2: Agenda
• Business overview • Strategic overview • Business group results & highlights • Capital management • Asset portfolio Sun Life – Q4 2024 2
Slide 3: A leading global financial services organization
A leading global financial services organization Balanced & diversified $1.54T business model2 85M+ 66,900 95,000 Offices in Assets Under $49.0B Year-to-date at December 31, 2024 Clients3,4 Employees3,5 Advisors3,6 28 markets3 Management market cap7 (AUM)1,7 Group - Health & Protection 28% Wealth &
Slide 4: The Sun Life story
The Sun Life story • A diversified business model, with four well-positioned business groups, focused on creating value and positively impacting our Clients, employees and shareholders • Portfolio of businesses that have strong growth prospects and capital generation in attractive global markets • S
Slide 5: Leveraging global trends
Leveraging global trends • Individual and employer attention on physical and mental health • Demographic shifts in developed markets • Increased economic, market and geopolitical volatility • Gig economy and shift in nature of work • Digital acceleration • Adoption of digital health technologies • G
Slide 6: Agenda
• Business overview • Strategic overview • Business group results & highlights • Capital management • Asset portfolio Sun Life – Q4 2024 6
Slide 7: Executing on our ambition to be the best Asset Management and Insurance company
Executing on our ambition to be the best Asset Management and Insurance company in the world Our Purpose: Help Clients achieve lifetime financial security and live healthier lives Our Values: Caring, Authentic, Bold, Inspiring, Impactful Four Pillars Client Impact Strategic Imperatives A global lead
Slide 8: Consistently delivering value to shareholders
Consistently delivering value to shareholders 5-year annualized total shareholder return6 Performance against medium-term financial objectives At December 31, 2024 Medium-term financial Prior Medium-term Measure1 objectives2,3 financial objectives2,3 2024 3-Year4,5 Sun Life 12.1% Underlying EPS 10%
Slide 9: Digital leadership
Digital leadership Q4 2024 highlights We are operating like a digital company focused on: Launched Clinical 360+ in the U.S. • In Health and Risk Solutions, we launched Clinical 360+, an expanded stop-loss program that gives members digital access to personalized tools and care services through one
Slide 10: Distribution excellence
Distribution excellence Distribution across the four pillars AM • MFS partners with leading retail intermediary firms and global institutional consultants Omni-channel approach • SLC Management distributes products through affiliates Crescent Capital, to serving Clients, including BentallGreenOak, I
Slide 11: Agenda
• Business and strategic overview • Strategic overview • Business group results & highlights • Capital management • Asset portfolio Sun Life – Q4 2024 11
Slide 12: Q4 2024 results
Q4 2024 results Profitability Q4’24 Q4’23 Change Results Highlights Underlying net income1 ($ millions) 965 983 (2)% Underlying results consistent with prior year; fundamentals remain solid: Reported net income ($ millions) 237 749 (68)% • Wealth & asset management: up 11% y/y on higher fee income a
Slide 13: Q4 2024 results
Q4 2024 results Underlying net income1 ($ millions) Reported net income ($ millions) Impact of currency translation increased underlying net income by $16M2 Impact of currency translation increased reported net income by $17M2 AM CAN U.S. ASIA CORP AM CAN U.S. ASIA CORP 360 366 350 348 331 326 297 2
Slide 14: Asset Management: A global leader in public and alternative asset classes
Asset Management: A global leader in both public and alternative asset classes through MFS and SLC Management Business Group Results (C$) Q4 2024 strategic highlights Profitability Q4’24 Q4’23 Change MFS Underlying net income1 ($ millions) 360 331 +9% • MFS continues to experience solid fixed income
Slide 15: MFS: US$606B AUM
Wealth & asset management RETAIL INSTITUTIONAL TOTAL MFS US$426B AUM1 US$180B AUM1 US$606B AUM1 Distributed through financial advisors Partner with leading consultants to manage MFS is a strong strategic and financial affiliated with brokerage houses, financial assets for public and corporate pensio
Slide 16: SLC Management
Wealth & asset management Real Estate IG Credit Alternative Credit Infrastructure Distribution $93B AUM1,2 $73B AUM1,2 $63B AUM1,2 $18B AUM1,2 $3B AUM1,2,3 Seeks to help investors Invests across spectrum Seeks investments in high- 230+ infrastructure One of the largest • • • of investment grade qual
Slide 17: Canada: A leader in health, wealth, and insurance
Canada: A leader in health, wealth, and insurance Business Group Results Q4 2024 strategic highlights Profitability Q4’24 Q4’23 Change • Launched the Designed for Health Report, which focuses on chronic Wealth & asset management ($ millions) 101 92 +10% disease in the workplace and offers new insigh
Slide 18: Canada business overview
Wealth & asset Individual - Group - Health management Protection & Protection Group Retirement Services (GRS) Individual Wealth Individual Insurance Sun Life Health $156B AUM1,3 $33B AUM1,3 $6.3B Net premiums1,4 $7.1B Net premiums1,4 Canada ~1M Canadians2 ~0.7M Canadians2 ~2M Canadians2 ~10M Canadia
Slide 19: U.S.: A leader in health and benefits
U.S.: A leader in health and benefits Business Group Results (US$) Q4 2024 strategic highlights Profitability Q4’24 Q4’23 Change • In Employee Benefits, we expanded our Healthcare Professional Group - Health & Protection ($ millions) 82 153 (46)% long-term disability coverage to provide more income
Slide 20: U.S. business overview
Group - Health Individual - & Protection Protection Dental Health Group Individual US$3.1B Revenues1,3 US$2.7B Revenues1,3 US$2.4B Revenues1,3 US$15.7B AUM1 ~35M Members ~8M Members ~9M Members ~0.2M Members Largest Dental benefits Largest independent Stop- Top ten U.S. Group Life Closed blocks of i
Slide 21: Asia: A regional leader focused on fast-growing markets
Asia: A regional leader focused on fast-growing markets Business Group Results Q4 2024 strategic highlights Profitability Q4’24 Q4’23 Change CC1 • We are committed to helping our Clients achieve lifetime financial Individual - Protection ($ millions) 179 138 +30% +26% security through financial lite
Slide 22: Asia business overview
Philippines Hong Kong Vietnam Indonesia $242M ins. sales1,2 $1,425M ins. sales1,2 $66M ins. sales1,2 $58M ins. sales1,2 • 1st in total premiums1,3 for • 3rd in MPF net inflows and • 9th in insurance sales and 5th • 12th in insurance sales and 11th Asia 13 consecutive years 3rd based on AUM1,6 in ban
Slide 23: Agenda
• Business overview • Strategic overview • Business group results & highlights • Capital management • Asset portfolio Sun Life – Q4 2024 23
Slide 24: Capital model provides financial flexibility
Capital model provides financial flexibility SLF Inc. LICAT1 152% SLA Asset Management LICAT1 146% DentaQuest SLC Canada Bermuda Asia U.S. (U.S.) MFS Management Capitalized to meet local capital rules Book value excl. from LICAT All information as at December 31, 2024; all dollar amounts are in C$,
Slide 25: Capital strength & flexibility
Capital strength & flexibility • Target minimum cash and other liquid assets at the holding company of $500 million1,2,3 Q4’24 Capital Q4’24 Capital metrics SLF Inc. ($ millions) Deployment opportunities LICAT4 152% Subordinated debt5 6,179 • Organic investments Financial leverage ratio1 20.1% Innov
Slide 26: M&A activity reflects strategic priorities
M&A activity reflects strategic priorities • Activity over last ten years promotes growth in Asia and Asset Management and builds out group benefits/dental capabilities in the U.S. Asset Management Canada U.S. Asia 2023 – Divestiture 2016 – Acquisition of 2016 – Expanded 2016 – Expanded 2018 – of th
Slide 27: Agenda
• Business overview • Strategic overview • Business group results & highlights • Capital management • Asset portfolio Sun Life – Q4 2024 27
Slide 28: High quality, well-diversified investment portfolio
High quality, well-diversified investment portfolio Investment profile Debt securities by credit rating • 74% of the portfolio is fixed As of December 31, 2024 As of December 31, 2024 income; 98% of fixed income BB and lower rated investment grade1 BBB- 1% Equity BBB 2% 12% AAA Investment securities
Slide 29: Mortgages and investment property exposures
Mortgages and investment property exposures Mortgages by type and geography1 Mortgages by type and rating1,3 As of December 31, 2024 As of December 31, 2024 Multi-family % of Multi-family ($millions) Office Industrial Retail Other Total ($millions) Office Industrial Retail Other Total residential To
Slide 30: Appendix
Appendix Sun Life – Q4 2024 30
Slide 31: Market sensitivities
Market sensitivities Change in Private and Public Equity Markets1,2,3 Change in Credit Spreads3,8 As at December 31, 2024 25% 10% 10% 25% As at December 31, 2024 As at December 31, 2023 ($millions, unless otherwise noted) decrease decrease increase increase ($millions, unless otherwise noted) 50 bas
Slide 32: Forward-Looking Statements
In this document, 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) dete
Slide 33: Use of Non-IFRS Financial Measures
Use of Non-IFRS Financial Measures We report certain financial information using non-IFRS financial measures, as we believe that these measures provide information that is useful to investors in understanding our performance and facilitate a comparison of our quarterly and full year results from per
Slide 34: Footnotes
Footnotes From slide 3 2 Business Mix based on underlying net income, excluding Corporate expenses and other. Wealth & asset management includes MFS Investment Management, SLC Management, Canada Individual Wealth, Group Retirement Services, Asia Wealth & asset management. Group – Health & Protection
Slide 35: Footnotes continued
Footnotes continued From slide 16 2 Does not include the General Account. SLC total AUM including the General Account was $409 billion at December 31, 2024. 3 This does not include the $15.9B of assets under administration, distributed mostly by Advisors Asset Management Inc. From slide 18 2 Total n
Slide 36: Footnotes continued
Footnotes continued From slide 25 3 Cash and other liquid assets at SLF Inc. and its wholly owned holding companies. 4 Life Insurance Capital Adequacy Test (“LICAT”) ratio of SLF Inc.; our LICAT ratios are calculated in accordance with the OSFI-mandated guideline, Life Insurance Capital Adequacy Tes
Slide 37: Sun Life Investor Relations
Sun Life Investor Relations To contact Sun Life Investor Relations: Please email Investor_Relations@sunlife.com Sun Life – Q4 2024 37