Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Q4 2018 Earnings Presentation
17 slides from Sun Life Financial's earnings presentation, Feb 14, 2019
Slide 1: Q4'18 Financial & Operating results
Q4’18 Financial & Operating results For the period ended December 31, 2018 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 February 14, 2019 (collectively, this “presentation”), including, but not limited to, statements that are not historical facts, are forward-looking and are subje
Slide 3: Dean Connor, President and Chief Executive Officer
DEAN CONNOR President and Chief Executive Officer Life’s brighter under the sun 3
Slide 4: Strong progress across all four pillars
Q4 STRONG PROGRESS ACROSS ALL FOUR PILLARS 2018 SUN LIFE FINANCIAL DOING MORE FOR FINANCIAL HIGHLIGHTS KEY ACCOMPLISHMENTS CLIENTS Q4’18 reported net income of $580 million; Announced an agreement to merge our North Continued to provide personalized, digital nudges to underlying net income(1)
Slide 5: Executing on strategic priorities while delivering strong full year results
Q4 EXECUTING ON STRATEGIC PRIORITIES WHILE DELIVERING STRONG FULL YEAR RESULTS 2018 SUN LIFE FINANCIAL Underlying Net Underlying Dividend Per Value of Income(1) ROE(1) Common Share New Business(1) +16% YoY $2.9B +150 bps YoY 14.2% +9% YoY $1.91 +19% YoY $1.2B Life’s brighter under the sun (1) Underl
Slide 6: Kevin Strain, Executive Vice President & Chief Financial Officer
KEVIN STRAIN Executive Vice President & Chief Financial Officer Life’s brighter under the sun 6
Slide 7: Q4'18 Results
Q4 Q4’18 RESULTS 2018 SUN LIFE FINANCIAL C$ millions (except EPS and ROE) Q4’18 Q3’18 Q4’17 Reported net income 580 567 207 Underlying net income(1) 718 730 641 Diluted reported EPS (C$) 0.96 0.93 0.34 Diluted underlying EPS(1) (C$) 1.19 1.20 1.05 Reported ROE 10.9% 10.8% 4.1% Underlying ROE(1) 13.6
Slide 8: Q4'18 Business Group Performance
Q4 2018 Q4’18 BUSINESS GROUP PERFORMANCE REPORTED NET INCOME (LOSS) SUN LIFE FINANCIAL (C$ millions) Impact of currency increased reported net income by $18M Improved expense experience, partially offset by lower investment 244 CAN related gains Reported net income lower over the prior year from
Slide 9: Sources of Earnings View 2018
Q4 SOURCES OF EARNINGS VIEW 2018 Sources of earnings SUN LIFE FINANCIAL Common shareholders Q4’18 Q4’17 Expected profit: business growth in SLF U.S., SLF Canada C$ millions and SLF Asia, offset by the impact of lower average net assets Expected profit on in-force business(1) 744 743 at MFS Impact of
Slide 10: Sales Results by Business Group 2018
Q4 SALES RESULTS BY BUSINESS GROUP 2018 INSURANCE SALES(1) BY BUSINESS WEALTH SALES(1) BY BUSINESS SUN LIFE FINANCIAL VALUE OF NEW BUSINESS(1),(2) +17% YoY $1.3B $36.2B +19% +3% YoY YoY SLF Canada SLF U.S. SLF Asia SLF Canada SLF Asset Management SLF Asia Sales in SLF U.S. up 29% in local currency
Slide 11: Demonstrating financial discipline & capital strength
Q4 DEMONSTRATING FINANCIAL DISCIPLINE & CAPITAL STRENGTH 2018 SUN LIFE FINANCIAL FINANCIAL DISCIPLINE CAPITAL STRENGTH Business and income growth across all four Pillars Strong LICAT ratios Diversified businesses generating profitable sales mix Capital return through dividends and buybacks and VNB g
Slide 12: Appendix
APPENDIX Life’s brighter under the sun 12
Slide 13: Operating Expenses 2018
Q4 OPERATING EXPENSES 2018 Figures are in SUN LIFE FINANCIAL C$ millions 122 117 (114) (20) 6,410 (23) 6,432 (60) Q4 2017 YTD Controllable Contractual Fair Value Impact of Currency Other Q4 2018 YTD Expenses Volumes Adjustments Acquisitions Increase in controllable expenses reflects investments in
Slide 14: Reconciliation of Underlying Income
Q4 RECONCILIATION OF UNDERLYING INCOME 2018 SUN LIFE FINANCIAL Q4’18 Q4’18 C$ millions Pre-tax After-tax Reported net income 580 Net equity market impact (including basis risk impact of $(4) million)(1) (189) (143) Net interest rate impact (including credit spread impact of $36 million and swap spre
Slide 15: Other Notable Items
Q4 OTHER NOTABLE ITEMS 2018 SUN LIFE FINANCIAL Impact of other items on our net income Q4’18 Q4’18 C$ millions Pre-tax After-tax Experience related items Impact of investment activity on insurance contract liabilities 33 28 Mortality (15) (11) Morbidity (15) (12) Credit 25 23 Lapse and other policyh
Slide 16: Use of Non-IFRS Financial Measures
In this presentation, Sun Life Financial Inc., its subsidiaries and, where applicable, its 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
Slide 17: 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