Slide 1: 2016 Financial & Operating Results for the Period Ended June 30, 2016
2016 FINANCIAL & OPERATING RESULTS FOR THE PERIOD ENDED JUNE 30, 2016 Sun Life Financial Inc. (unaudited) Life’s brighter under the sun
Slide 2: Forward-looking statements
Forward-looking statements Certain statements in this presentation and certain oral statements made during the earnings conference call on August 11, 2016 (collectively, this “presentation”), including, but not limited to, statements that are not historical facts, are forward-looking and are subject
Slide 3: Dean A. Connor, President and Chief Executive Officer
Dean A. Connor President and Chief Executive Officer Life’s brighter under the sun
Slide 4: Q2 Operating Results
Sun Life Financial Q2 OPERATING RESULTS 2016 Q2 2016 Underlying Net Income by Business Group(1) • Q2’16 reported net income of $480 million, compared to $726 million in SLF Asia 15% Q2’15 SLF Canada 34% • Operating net income of $474 million, SLF Asset Management versus $731 million in Q2’15 26% • U
Slide 5: Q2 Highlights
Sun Life Financial Q2 Q2 HIGHLIGHTS 2016 • Individual Insurance sales up 16% LEADER in FINANCIAL PROTECTION and WEALTH • Group Benefits sales up 12% SOLUTIONS in our Canadian • Individual wealth manufactured product sales(1) up 37% from continued momentum in Sun Life home market Global Investments m
Slide 6: Colm J. Freyne, Executive Vice President and Chief Financial Officer
COLM J. FREYNE Executive Vice President and Chief Financial Officer Colm J. Freyne Executive Vice President and Chief Financial Officer Life’s brighter under the sun
Slide 7: Q2'16 Results
Sun Life Financial Q2 Q2’16 RESULTS 2016 C$ millions Q2’16 Q1’16 Q2’15 (except EPS and ROE) Reported net income 480 540 726 Operating net income 474 531 731 Underlying net income 554 582 615 Diluted operating EPS (C$) 0.77 0.87 1.19 Diluted underlying EPS (C$) 0.90 0.95 1.00 Operating ROE 10.1% 11.3
Slide 8: Business Group Performance
Sun Life Financial Q2 BUSINESS GROUP PERFORMANCE 2016 SLF SLFCanada UNDERLYING NET INCOME (C$ millions) Canada • Solid result against strong comparative in prior year • Mortality, morbidity and policyholder experience largely in- line with expectations 250 SLF U.S. 200 173 • Contributions from the A
Slide 9: Sources of Earnings View
Sun Life Financial Q2 SOURCES OF EARNINGS VIEW 2016 Sources of earnings Common shareholders Q2’16 Q2’15 Change C$ millions Expected profit on in-force business 668 672 (4) Impact of new business (37) (39) 2 Experience gains or (losses) (97) 252 (349) Assumption changes and management actions (10) 22
Slide 10: Sales Results
Sun Life Financial Q2 SALES RESULTS 2016 Change over C$ millions Q2’16 Q2’ 15 Q2’15 Individual life and health 260 214 21% Group life and health 278 213 31% Total Insurance sales 538 427 26% Wealth – SLF Asset 28,182 25,292 11% Management Wealth – Non SLF Asset 4,523 6,424 (30%) Management(1) Total
Slide 11: Operating Expenses
Sun Life Financial Q2 OPERATING EXPENSES 2016 3,100 117 2,812 2,900 9 281 (3) 2,700 (85) 84 2,500 2,409 C$ millions 2,300 2,100 1,900 1,700 1,500 Q2 15 YTD Controllable Impact of Currency Contractual Fair Value Other Q2 16 YTD Actual Expenses Acquisitions Volumes Adjustments Actual • Increase in con
Slide 12: Appendix
Sun Life Financial Q2 APPENDIX 2016
Slide 13: Reconciliation of Underlying Income
Sun Life Financial Q2 RECONCILIATION OF UNDERLYING INCOME 2016 Q2’16 Q2’16 C$ millions Pre-tax After-tax Operating net income 474 Net equity market impact (including basis risk impact of $6 million)(1) 21 14 Net interest impact (including credit spread impact of $(11) million and swap (143) (95) spr
Slide 14: Other Notable Items
Sun Life Financial Q2 OTHER NOTABLE ITEMS 2016 Impact of other items on our net income Q2’16 Q2’16 C$ millions Pre-tax After-tax Experience related items Impact of investment activity on insurance contract liabilities 49 41 Mortality 8 10 Morbidity (34) (30) Credit 20 15 Lapse and other policyholder
Slide 15: Energy Exposure
Sun Life Financial Q2 ENERGY EXPOSURE 2016 Debt Securities & Corporate Loan Highlights Carrying Value by Rating (as of June 30, 2016) • Total of $5.4 billion in energy debt Credit BB and securities and corporate loans, AAA AA A BBB Quality Below 4% of total invested assets. % Total 0.5% 3.1% 33.2% 5
Slide 16: Global Assets Under Management
Sun Life Financial Q2 GLOBAL ASSETS UNDER MANAGEMENT 2016 Wealth SLF Asset General Account Management Management Solutions • Management of general fund • Source, create and market • Provide holistic wealth assets on SLF balance sheet investment solutions in active management solutions to address • S
Slide 17: 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
Slide 18: Forward-Looking Statements
Forward-Looking Statements Certain statements in this presentation, including statements (i) relating to our growth strategies, (ii) statements concerning our medium-term financial objectives, (iii) statements relating to productivity and expense initiatives, growth initiatives and other business ob