Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Q3 2023 Earnings Presentation
22 slides from Sun Life Financial's earnings presentation, Nov 14, 2023
Slide 1: Q3'23 financial & operating results
Q3’23 financial & operating results For the period ended September 30, 2023 Sun Life Financial Inc. (unaudited)
Slide 2: Forward-looking statements and non-IFRS measures
In this presentation, Sun Life Financial Inc. (“SLF” or “SLF Inc.”), its subsidiaries and, where applicable, its joint ventures and associates are referred to as “we”, “us”, “our”, “Sun Life” and the “Company”. Reported net income (loss) refers to Common shareholders' net income (loss) determined in
Slide 3: Kevin Strain, President and Chief Executive Officer
Kevin Strain President and Chief Executive Officer Sun Life – Q3 2023 3
Slide 4: Q3 2023 financial highlights
Q3 2023 financial highlights Delivering on our Purpose to help Clients achieve lifetime financial security and live healthier lives Executing on our ambition to be one of the best asset management and insurance companies in the world Profitability Financial Strength Diversified Business Mix4 Year-to
Slide 5: Client Impact strategy
Client Impact strategy Our Purpose: Help Clients achieve lifetime financial security and live healthier lives Our Values: Caring, Authentic, Bold, Inspiring, Impactful Four Strategic Pillars Client Impact Strategic Imperatives A global leader in both public and Develop deep Client relationships and
Slide 6: Progress on our Client Impact strategy
Progress on our Client Impact strategy Improving access to care and helping Clients live healthier lives Selected to move forward in final stages of contract negotiations with the Government of Canada to be the administrator of the Canadian Dental Care Plan, which will provide a solution for those
Slide 7: Manjit Singh, Executive Vice President & Chief Financial Officer
Manjit Singh Executive Vice President & Chief Financial Officer Sun Life – Q3 2023 7
Slide 8: Q3 2023 results
Q3 2023 results Profitability ($ millions) Q3’23 Q3’22 Change Results Highlights Wealth & asset management 457 419 +9% Group - Health & Protection 285 281 +1% Earnings reflect strong business fundamentals and diversified business mix • Wealth & asset management: includes higher investment income fro
Slide 9: Q3 2023 results
Q3 2023 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 $17M2 AM CAN U.S. ASIA CORP AM CAN U.S. ASIA CORP 365 330 338 298 293 268 227 2
Slide 10: MFS: A global leader in public asset management
MFS: A global leader in public asset management Business Group Results (US$) Quarterly Highlights (US$) Profitability Q3’23 Q3’22 Change • Underlying net income down 2% y/y reflecting higher ANA, increased net Underlying net income1 ($ millions) 207 212 (2)% investment income and higher variable com
Slide 11: SLC Management: Growing a premier alternatives platform
SLC Management: Growing a premier alternatives platform Business Group Results Quarterly Highlights Profitability Q3’23 Q3’22 Change • Fee-related earnings (FRE) up 17% y/y on higher AUM, reflecting good Fee-related earnings1 ($ millions) 68 58 +17% capital raising and deployment across the platform
Slide 12: Canada: A leader in health, wealth, and insurance
Canada: A leader in health, wealth, and insurance Business Group Results Quarterly Highlights Profitability Q3’23 Q3’22 Change • Underlying net income up 15% y/y reflecting strong results in Group Health & Wealth & asset management ($ millions) 116 102 +14% Protection and Wealth & asset management,
Slide 13: U.S.: A leader in health & benefits
U.S.: A leader in health & benefits Business Group Results (US$) Quarterly Highlights (US$) Profitability Q3’23 Q3’22 Change • Underlying net income down 19% y/y driven by unfavourable Dental and lower Group - Health & Protection ($ millions) 112 136 (18)% net investment results Individual - Protect
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 Q3’23 Q3’22 Change CC1 • Underlying net income up 7% y/y, driven by strong Individual - Protection growth Wealth & asset management ($ millions) 11 19 (42)% (40
Slide 15: Appendix
Appendix Sun Life – Q3 2023 15
Slide 16: Drivers of earnings
Drivers of earnings1 Underlying drivers of earnings (DOE) Non-underlying net income adjustments Q3’23 Q2’23 Q3’22 Q3’23 Q2’23 Q3’22 $ millions, pre-tax $ millions, post-tax Risk adjustment release 114 103 98 Common shareholders’ underlying net income (loss) 930 920 949 Contractual service margin rec
Slide 17: DOE experience gains/(losses) – details
DOE experience gains/(losses)1 – details2 Pre-tax Post-tax $ millions Q3’23 Q2’23 Q3’22 Q3’23 Q2’23 Q3’22 Net equity market impact2 (24) (13) (44) (21) (13) (36) Net interest rate impact2 228 (152) (360) 127 (99) (338) Impact of changes in the fair value of investment properties2 (97) (133) 4 (83) (
Slide 18: Contractual service margin movement analysis
Contractual service margin movement analysis1 $ millions, pre-tax Q3’23 Q2’23 Q3’22 CSM Highlights CSM at beginning of period 11,258 11,243 9,904 • Total CSM ended Q3'23 at $11.5 billion, up 11% y/y; ~8% of the increase driven by Impact of new insurance business2 370 270 177 organic CSM growth refle
Slide 19: Earnings on surplus – Supplemental details
Earnings on surplus – Supplemental details Earnings on surplus – supplemental details $ millions, pre-tax Q3’23 Q2’23 Q3’22 Core investment income 169 150 153 Realized investment gains / (losses) 3 20 (6) Other1 (17) (5) 5 Earnings on surplus 155 165 152 Interest on debt (86) (83) (65) Earnings on s
Slide 20: 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 21: Forward-Looking Statements
Forward-Looking Statements From time to time, the Company makes written or oral forward-looking statements within the meaning of certain securities laws, including the “safe harbour” provisions of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities l
Slide 22: 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