Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Q4 2024 Earnings Presentation
24 slides from Sun Life Financial's earnings presentation, Feb 13, 2025
Slide 1: Q4'24 financial & operating results
Q4'24 financial & operating results For the period ended December 31, 2024 Sun Life Financial Inc. (unaudited)
Slide 2: Forward-looking statements and non-IFRS financial measures
In this presentation, 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)
Slide 3: Kevin Strain, President and Chief Executive Officer
Kevin Strain President and Chief Executive Officer Sun Life – Q4 2024 3
Slide 4: Q4 2024 financial highlights
Q4 2024 financial highlights Profitability Financial Strength Growth Underlying net income1 Underlying ROE1 Net wealth sales & AM net flows1 $965 M (2)% 16.5% $(13.6) B (40)% Reported net income Reported ROE1 Group - Health & Protection sales1 $237 M (68)% 4.0% $1,270 M (13)% Underlying EPS1 SLF Inc
Slide 5: Delivering on our Purpose and strategy
Delivering on our Purpose and strategy Asset Management and Wealth Asia Health Delivered strong growth in SLC Management Accelerated momentum in fast-growing markets Continued strength in core business and • Achieved strong capital raising of $10.2 billion1 improving results • Realized value from ou
Slide 6: Full year 2024 financial highlights
Full year 2024 financial highlights Profitability Growth Key Business Highlights Underlying net income1 Assets under management1 AM • Record third-party assets under management and $3,856 M +3% 1.54 T +10% administration1 of $1.1 trillion • $23.9 billion of capital raising1 at SLC Management; Report
Slide 7: Tim Deacon, Executive Vice President & Chief Financial Officer
Tim Deacon Executive Vice President & Chief Financial Officer Sun Life – Q4 2024 7
Slide 8: Q4 2024 results
Q4 2024 results Profitability ($ millions) Q4'24 Q4'23 Change Results Highlights Wealth & asset management 486 439 +11% Underlying results consistent with prior year; fundamentals remain solid: Group - Health & Protection 266 365 (27)% • Wealth & asset management: up 11% y/y on higher fee income acr
Slide 9: 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 $17M2 AM CAN U.S. ASIA CORP AM CAN U.S. ASIA CORP 366 350 348 360 331 326 297 2
Slide 10: MFS: A global leader in public asset management
MFS: A global leader in public asset management Business Group Results (US$) Quarterly Highlights (US$) Profitability Q4'24 Q4'23 Change • Underlying net income up 13% compared to the prior year as higher fee Underlying net income1 ($ millions) 216 191 +13% income from ANA growth was partially offse
Slide 11: SLC Management: Growing a premier alternatives platform
SLC Management: Growing a premier alternatives platform Business Group Results Quarterly Highlights Profitability Q4'24 Q4'23 Change • Underlying net income down 16% y/y on lower fee-related earnings (“FRE”), Fee-related earnings1 ($ millions) 79 92 (14)% which was partially offset by higher net see
Slide 12: Canada: A leader in health, wealth, and insurance
Canada: A leader in health, wealth, and insurance Business Group Results Quarterly Highlights Profitability Q4'24 Q4'23 Change • Underlying net income up 5% y/y on higher fee income and strong business Wealth & asset management ($ millions) 101 92 +10% growth, partially offset by lower net investmen
Slide 13: U.S.: A leader in health & benefits
U.S.: A leader in health & benefits Business Group Results (US$) Quarterly Highlights (US$) Profitability Q4'24 Q4'23 Change • Underlying net income down 39% y/y Group - Health & Protection ($ millions) 82 153 (46)% • Group - Health & Protection earnings down 46% y/y driven by unfavourable Individua
Slide 14: Asia: A regional leader focused on fast-growing markets
Asia: A regional leader focused on fast-growing markets Business Group Results Quarterly Highlights (% in constant currency1) Profitability Q4'24 Q4'23 Change CC1 • Underlying net income up 20% y/y on improved protection experience, Individual - Protection ($ millions) 179 138 +30% +26% higher contr
Slide 15: Performance against our medium-term financial objectives
Performance against our medium-term financial objectives Medium-term Prior Medium- financial term financial Measure1 objectives2,3 objectives 2,3 2024 Results Underlying EPS growth Growth in EPS reflects the Company's focus on generating 10% 8 - 10% 5% sustainable earnings for shareholders. Underlyi
Slide 16: Appendix
Appendix Sun Life – Q4 2024 16
Slide 17: Drivers of earnings
Drivers of earnings1 Underlying drivers of earnings (DOE) Non-underlying net income adjustments Q4'24 Q3’24 Q4’23 Q4'24 Q3’24 Q4’23 $ millions, pre-tax $ millions, post-tax Risk adjustment release 104 101 106 Common shareholders’ underlying net income (loss) 965 1,016 983 Contractual service margin
Slide 18: DOE experience gains/(losses) – details
DOE experience gains/(losses)1 – details Pre-tax Post-tax $ millions Q4'24 Q3’24 Q4'23 Q4'24 Q3’24 Q4'23 Net equity market impact (13) 48 18 (15) 36 8 Net interest rate impact (109) (3) (272) (86) 38 (53) Impact of changes in the fair value of investment properties (99) (57) (182) (78) (45) (148) Ma
Slide 19: Contractual service margin movement analysis
Contractual service margin movement analysis1 $ millions, pre-tax Q4'24 Q3’24 Q4'23 CSM Highlights CSM at beginning of period 12,836 12,512 11,452 • Total CSM ended Q4'24 at $13.4 billion, up 13% y/y largely driven by organic CSM Impact of new insurance business2 306 383 381 growth and currency impa
Slide 20: Earnings on surplus – Supplemental details
Earnings on surplus – Supplemental details Earnings on surplus – EOS Highlights supplemental details $ millions, pre-tax Q4'24 Q3’24 Q4'23 • Core investment income down q/q due to lower surplus holdings and yields Core investment income 134 151 160 Realized investment gains / (losses) 2 13 (5) Other
Slide 21: Credit experience – Supplemental details
Credit experience– Supplemental details Credit experience – supplemental details $ millions, pre-tax Q4'24 Q3’24 Q2’24 Ratings/Net impairments1 (51) (71) (12) Expected credit loss2 3 (9) (2) Credit experience (48) (80) (14) Release of credit within expected investment 37 37 35 earnings3 Net Credit E
Slide 22: 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 23: Medium-Term Financial Objectives
Medium-Term Financial Objectives The Company's medium-term financial objectives are forward-looking non-IFRS financial measures. Our ability to achieve those objectives is dependent on our success in achieving growth initiatives and business objectives and on certain key assumptions that include: (i
Slide 24: Footnotes
Footnotes From slide 4 2 Impact of new insurance business on CSM, also referred to as "new business CSM”, represents growth from sales activity in the period, including individual protection sales (excluding joint ventures), and defined benefit solutions and segregated fund wealth sales in Canada. 3