Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Q3 2020 Earnings Presentation
17 slides from Sun Life Financial's earnings presentation, Nov 5, 2020
Slide 1: Q3 2020 Financial & Operating Results
Q3 2020 Financial & Operating Results For the period ended September 30, 2020 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”. Forward-looking statements Certain statements in this presentation and certain oral state
Slide 3: Dean Connor, President and Chief Executive Officer
Dean Connor President and Chief Executive Officer S U N L I F E • Q 3 2 0 2 0 3
Slide 4: Key highlights
Key highlights Executing on our ambition to be one of the best insurance and asset management companies globally Financial (vs. Q3 2019) Accomplishments SLC Management: $750M +10% $842M +4% InfraRed & Crescent bring Closed on the InfraRed acquisition, and announced intention to acquire a majority st
Slide 5: Kevin Strain, Executive Vice President & Chief Financial Officer
KEVIN STRAIN Executive Vice President & Chief Financial Officer S U N L I F E • Q 3 2 0 2 0 5
Slide 6: Q3 2020 results
Q3 2020 results Capital management $ millions YoY (except EPS, ROE, AUM, Book value per Q3’20 Q2’20 Q3’19 Change share) 144% SLF LICAT ratio(3) Reported net income 750 519 681 10% 127% SLA LICAT ratio(3) Underlying net income(1) 842 739 809 4% Reported EPS(2) 1.28 0.88 1.15 11% Underlying EPS(1)(2)
Slide 7: Business group performance
Business group performance Reported net income ($ millions) Underlying net income(1) ($ millions) Impact of currency increased reported net income by $11M Impact of currency increased underlying net income by $9M 387 294 251 236 253 268 293 251 223 221 170 164 135 136 138 U.S. 17 CAN AM ASIA (11) CA
Slide 8: Sources of earnings
Sources of earnings Sources of earnings Common shareholders Q3’20 Q3’19 Highlights $ millions Expected profit on in-force business 924 816 Expected profit: continued growth in all business groups, with particular strength across Asset Management, Canada, and U.S. Impact of new business 8 (22) Impact
Slide 9: Sales results by business group
Sales results by business group Insurance sales by business(1) Wealth sales by business(1) $681M $52.7B (1)% YoY +28% YoY Value of new business(1)(2) Canada U.S. Asia $261M Asset Management Canada Asia +4% YoY Canada insurance sales decreased by 28%, reflecting lower sales in Asset Management sa
Slide 10: Operating expenses
Operating expenses Expenses up 3% on a constant currency basis ($ millions) 27 37 5,311 52 (38) 69 Year-to-date 41 5,079 44 controllable expenses increased 1% Q3 YTD Controllable Contractual Currency Other Restructuring Impact of Fair Value Q3 YTD 2019 Expenses Volumes Acquisitions Adjustments 2020
Slide 11: Save the date: SLC Management Investor Day
SAVE THE DATE SLC Management Investor Day March 18, 2021 S U N L I F E • Q 3 2 0 2 0 11
Slide 12: Appendix
Appendix S U N L I F E • Q 3 2 0 2 0 12
Slide 13: Reconciliation of underlying net income
Reconciliation of underlying net income Q3’20 Q3’20 $ millions Pre-tax Post-tax Reported net income 750 Net equity market impact (including basis risk impact of $8 million)(1) 65 50 Net interest rate impact (including credit spread impact of $(27) and swap spread impact of $(5) million) (1) (68) (14
Slide 14: Other notable items
Other notable items Impact of other items on our net income Q3’20 Q3’20 $ millions Pre-tax Post-tax Experience related items Impact of investment activity on insurance contract liabilities 33 28 Credit (1) (2) Mortality (26) (19) Morbidity 84 65 Lapse and other policyholder behaviour (10) (9) Expens
Slide 15: Market movements and impacts in the quarter
Market movements and impacts in the quarter Market Movements QTD YTD Equity Market Impacts September 30, 2020 September 30, 2020 Q3’20 Q2’20 Q1’20 ($millions, after-tax) S&P/ TSX +3.9% (5.5)% Equity market movement and 42 105 (303) volatility S&P 500 +8.5% +4.1% Basis risk 8 (46) (57) CA 10 - year +
Slide 16: Reconciliation of Select Net Income 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 resul ts from pe
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