Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Q3 2019 Earnings Presentation
15 slides from Sun Life Financial's earnings presentation, Nov 7, 2019
Slide 1: 2019 Q3 Financial & Operating Results
2019 Financial & Operating Q3 Results For the period ended September 30, 2019 Sun Life Financial Inc. (unaudited)
Slide 2: Forward-looking statements
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 Q3 2019 | Sun Life | 3
Slide 4: Progress across all four pillars
PROGRESS ACROSS ALL FOUR PILLARS Financial highlights Key accomplishments Doing more for Clients Q3’19 reported net income of $681 million; Asset Management net inflows of $3.2 billion, Launched SunAccess in Malaysia, completing the rollout of underlying net income(1) of $809 million including
Slide 5: Kevin Strain, Executive Vice President & Chief Financial Officer
KEVIN STRAIN Executive Vice President & Chief Financial Officer Q3 2019 | Sun Life | 5
Slide 6: Q3'19 Results
Q3’19 RESULTS $ millions (except EPS and ROE) Q3’19 Q2’19 Q3’18 Reported net income 681 595 567 Underlying net income(1) 809 739 730 Diluted reported EPS (C$) 1.15 1.00 0.93 Diluted underlying EPS(1) (C$) 1.37 1.24 1.20 Reported ROE(1) 13.0% 11.0% 10.8% Underlying ROE(1) 15.5% 13.7% 14.0% Underlyi
Slide 7: Q3'19 Business Group Performance
Q3’19 BUSINESS GROUP PERFORMANCE Underlying net income includes the favourable impact of tax matters from prior UNDERLYING NET INCOME(1) ($ millions) years(2) of $20 million Impact of currency increased underlying net income by $7M Business growth, higher available-for-sale (“AFS”) gains and fav
Slide 8: Sources of Earnings View
SOURCES OF EARNINGS VIEW Expected profit: continued business growth, with particular Sources of earnings strength in Canada and the U.S. Common shareholders Q3’19 Q3’18 $ millions New business strain: lower gains in Canada primarily as a result of declining interest rates Expected profit on in-force
Slide 9: Sales Results by Business Group
SALES RESULTS BY BUSINESS GROUP INSURANCE SALES(1) BY BUSINESS WEALTH SALES(1) BY BUSINESS $685M VALUE OF NEW $41.2B BUSINESS(1),(2) +38% YoY +19% YoY +3% YoY Canada U.S. Asia Canada Asset Management Asia Canada insurance sales in line with Q3 2018 Canada wealth sales up 17% driven by Group Reti
Slide 10: Operating Expenses
OPERATING EXPENSES Figures are in $ millions 4% on a constant currency basis 27 37 96 5,079 76 (68) 104 4,807 Q3 2018 YTD Controllable Contractual Currency Fair Value Impact of Other Q3 2019 YTD Expenses Volumes Adjustments Acquisitions Increase in controllable expenses reflects investments in gro
Slide 11: Appendix
APPENDIX Q3 2019 | Sun Life | 11
Slide 12: Reconciliation of Underlying Net Income
RECONCILIATION OF UNDERLYING NET INCOME Q3’19 Q3’19 $ millions Pre-tax After-tax Reported net income 681 Net equity market impact (including basis risk impact of $7 million)(1) 15 9 Net interest rate impact (including credit spread impact of $4 million and swap spread (95) (90) impact of $10 million
Slide 13: Other Notable Items
OTHER NOTABLE ITEMS Impact of other items on our net income Q3’19 Q3’19 $ millions Pre-tax After-tax Experience related items Impact of investment activity on insurance contract liabilities 11 8 Credit 47 44 Mortality 12 13 Morbidity (61) (45) Lapse and other policyholder behaviour (5) (6) Expenses
Slide 14: 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 measure provide information that is useful to investors in understanding our performance and facilitate a comparison of our quarterly and full year results from peri
Slide 15: 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