Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Q2 2014 Earnings Presentation
14 slides from Sun Life Financial's earnings presentation, Aug 7, 2014
Slide 1: Financial & Operating Results for the Period Ended June 30, 2014
FINANCIAL & OPERATING RESULTS FOR THE PERIOD ENDED JUNE 30, 2014 Sun Life Financial Inc. (unaudited) Forward-looking statements Certain statements in this presentation and certain oral statements made during the earnings conference call on August 7, 2014 (collectively, this “presentation”), includin
Slide 2: Solid Quarter
Dean A. Connor President and Chief Executive Officer SOLID QUARTER • Operating net income of $488 million, up from $431 million in Q2’13 • Underlying net income of $499 million, up from $373 million in Q2’13 • Q2’14 Operating ROE of 12.6% and Underlying ROE of 12.9% • Improvement in key earnings dri
Slide 3: Strong Q2 Earnings; Sales Results
STRONG Q2 EARNINGS Continuing Operations C$ millions Q2’14 Q1’14 Q2’13 (unless otherwise noted) Operating net income 488 454 431 Underlying net income 499 440 373 Reported net income 425 400 391 Diluted Operating EPS 0.80 0.74 0.71 (C$) Diluted Underlying EPS 0.81 0.72 0.62 (C$) (1) Operating ROE 12
Slide 4: Executing on Our Four Pillar Strategy
EXECUTING ON OUR FOUR PILLAR STRATEGY A strategy focusing on growth, higher ROE, and less volatile businesses Becoming the BEST PERFORMING LIFE INSURER in Canada ✓ ✓ ENHANCING LEADERSHIP POSITION in U.S. group insurance and BECOMING TOP 5 in voluntary benefits GROWING our ASSET MANAGEMENT business g
Slide 5: Q2'14 – Strong Sales; Achieving Key Milestones
Q2’14 – STRONG SALES Becoming the BEST PERFORMING LIFE INSURER in Canada ✓ Individual Insurance Sales (C$ millions) Individual Wealth Sales(2) (C$ millions) 4,035 • Individual Insurance sales up 14% • Individual Wealth sales up 23% to 3,527 $1.1 billion • SLGI retail mutual fund sales up 122% • Grou
Slide 6: Q2'14 – Strong Growth at MFS; Continued Execution
Q2’14 – STRONG GROWTH AT MFS GROWING our ASSET MANAGEMENT BUSINESS globally ✓ Assets under management (US$ billions) Dividends to Sun Life (US$ millions) 530 • Another strong quarter 465 • AUM US$439 billion, an all time high 439 • Record revenues and average net 401 assets 354 349 • Continued stron
Slide 7: Q2'14 Financial Overview
Colm J. Freyne Executive Vice President and Chief Financial Officer Q2’14 FINANCIAL OVERVIEW • Strong earnings(1) • Operating net income of $488 million in Q2’14 from $431 million in Q2’13 • Underlying net income of $499 million in Q2’14 from $373 million in Q2’13 • Life & health sales down 5%; weal
Slide 8: Strong Earnings Growth in Key Lines
STRONG EARNINGS Continuing Operations Q2’14 Q2’14 (C$ millions) Pre-tax After-tax Operating net income 488 Net impact of market factors (39) (22) Assumption changes and management actions 14 11 Underlying net income 499 Other notable items 39 36 15 GROWTH IN KEY LINES Sources of earnings Common shar
Slide 9: Q2'14 Performance
Q2’14 PERFORMANCE Becoming the BEST PERFORMING LIFE INSURER in Canada ✓ Change over (C$ millions) Q2’14 Q2’13 Operating net income 197 (6)% Underlying net income 195 (12)% Sales Individual Insurance 75 14% Individual Wealth 1,077 23% Group Benefits 78 (32)% Group Retirement Services 1,913 68% 17 Q2’
Slide 10: Q2'14 Performance
Q2’14 PERFORMANCE GROWING our ASSET MANAGEMENT BUSINESS globally ✓ (US$ millions) Q2’14 Change over Q2’13 Operating net income 133 32% Underlying net income 133 32% 3 percentage Pre-tax operating profit margin 40% points Gross Sales (US$ billions) 19.5 (24)% Net Sales (US$ billions) 1.4 (76)% Assets
Slide 11: Operating Expenses; Key Takeaways – Q2'14
OPERATING EXPENSES YTD Q2’14 Continuing Operations (C$ millions) Change (over YTD Q2’13) Operating expenses 301 Currency Impact 97 MFS(1) 96 Operating expenses, excluding currency and MFS 108 Volume-related(2) 51 Investments in growth, inflation and other 57 Total 108 (1) MFS expenses exclude the im
Slide 12: Appendix: Reconciliation of Underlying Net Income
APPENDIX 23 RECONCILIATION OF UNDERLYING NET INCOME Continuing Operations Q2’14 Q2’14 (C$ millions) Pre-tax After-tax Operating net income 488 Net equity market impact (including basis risk impact of $1 million) 31 23 Net interest impact (including credit spread impact of $(17) million, (68) (44) sw
Slide 13: Other Notable Items
OTHER NOTABLE ITEMS Impact of other items on our net income Q2’14 Q2’14 Continuing Operations (C$ millions) Pre-tax After-tax Experience related items Impact of investment activity on insurance contract liabilities 36 32 Mortality/morbidity (24) (18) Credit 21 18 Lapse and other policyholder behavio
Slide 14: Forward-Looking Statements
Forward-Looking Statements Certain statements in this presentation, including (i) statements relating to our strategies, (ii) statements that are predictive in nature, (iii) statements that depend upon or refer to future events or conditions, and (iv) that include words such as "aim", "anticipate",