Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Q3 2015 Earnings Presentation
11 slides from Sun Life Financial's earnings presentation, Nov 5, 2015
Slide 1: Financial & Operating Results for the Period Ended September 30, 2015
FINANCIAL & OPERATING RESULTS FOR THE PERIOD ENDED September 30, 2015 Sun Life Financial Inc. (unaudited) Forward-looking statements Certain statements in this presentation and certain oral statements made during the earnings conference call on November 5, 2015 (collectively, this “presentation”), i
Slide 2: Sun Life Financial Operating Results
Dean A. Connor President and Chief Executive Officer SUN LIFE FINANCIAL OPERATING RESULTS • Operating net income of $478 million, up from $467 million in Q3’14 • Underlying net income of $528 million, up from $517 million in Q3’14 • Operating ROE of 10.5% and Underlying ROE of 11.6% • Growth in key
Slide 3: Business Group Performance / Strong Execution
SUN LIFE FINANCIAL BUSINESS GROUP PERFORMANCE BY BUSINESS GROUP(1) – Q3 2015 BALANCED UNDERLYING EARNINGS FROM BOTH Underlying net income $528 million WEALTH(2) AND INSURANCE BUSINESSES (C$ millions) 517 528 SLF Asia 12% SLF Canada 30% SLF Asset Management 31% SLF U.K. 10% SLF U.S. 17% Q3'14 Q3'15 P
Slide 4: Asset Management: Assets Under Management
SUN LIFE FINANCIAL Stephen C. Peacher Executive Vice President and Chief Investment Officer, President, Sun Life Investment Management 7 SUN LIFE FINANCIAL SUN LIFE FINANCIAL ASSET MANAGEMENT SUN LIFE FINANCIAL ASSET MANAGEMENT ASSETS UNDER MANAGEMENT C$537 billion C$56 billion $29 $18 $7 $2 8
Slide 5: MFS Investment Management
SUN LIFE FINANCIAL MFS INVESTMENT MANAGEMENT Percentage of Assets Ranked in Top Half Market Volatility Drives Elevated (1) of Lipper Peer Group, 10-Year period Level of Net Outflows TOTAL • Retail net outflows of US$0.3billion • Market volatility resulting in 97% reduced sales • Institutional net ou
Slide 6: Q3'15 Results and Earnings Analysis
SUN LIFE FINANCIAL Q3’15 RESULTS C$ millions Q3’15 Q2’15 Q3’14 (except EPS and ROE) Operating net income 478 731 467 Underlying net income 528 615 517 Reported net income 482 726 435 Diluted operating EPS (C$) 0.78 1.19 0.76 Diluted underlying EPS (C$) 0.86 1.00 0.84 Operating ROE 10.5% 16.5% 11.9%
Slide 7: Sources of Earnings View and Sales Results
SUN LIFE FINANCIAL SOURCES OF EARNINGS VIEW Sources of earnings Common shareholders Q3’15 Q3’14 Change C$ millions Expected profit on in-force business 665 609 56 Impact of new business (63) (27) (36) Experience gains or (losses) (98) (65) (33) Assumption changes and management actions 2 (7) 9 Earni
Slide 8: Operating Expenses
SUN LIFE FINANCIAL OPERATING EXPENSES Change Q3 YTD C$ millions (over Q3 2015 YTD 2014) Operating expenses 3,654 308 Currency Impact 278 278 MFS(1) 1,166 (74) Operating expenses, excluding currency and MFS 2,210 104 Volume-related(2) 71 Inflation, investments in growth (net of productivity gains) an
Slide 9: Q3'15 Actuarial Assumption Update; Reconciliation of Underlying Net Income
SUN LIFE FINANCIAL Q3’15 ACTUARIAL ASSUMPTION UPDATE Impact on net income C$ millions (after-tax) Mortality and morbidity 179 Lapse and other policyholder behaviour (555) Expenses (85) Investment returns 237 Other 256 Total 32 17 SUN LIFE FINANCIAL RECONCILIATION OF UNDERLYING NET INCOME Q3’15 Q3’15
Slide 10: Other Notable Items; Wealth Management
SUN LIFE FINANCIAL OTHER NOTABLE ITEMS Impact of other items on our net income Q3’15 Q3’15 Pre-tax After-tax C$ millions Experience related items Impact of investment activity on insurance contract liabilities 41 33 Mortality (34) (18) Morbidity (40) (26) Credit 27 20 Lapse and other policyholder be
Slide 11: Use of Non-IFRS Financial Measures
In this presentation, Sun Life Financial Inc. and its subsidiaries, joint ventures and associates are referred to as “we”, “us”, “our” and the “Company”. Use of Non‐IFRS Financial Measures We report certain financial information using non‐IFRS financial measures, as we believe that these measures pr