Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Q1 2026 Earnings Presentation
42 slides from Sun Life Financial's earnings presentation, May 7, 2026
Slide 1: Q1 2026 Delivering sustainable shareholder value
Q1 2026 Delivering sustainable shareholder value
Slide 2: Business overview
• Business overview • Strategic overview • Business group highlights • Share performance • Capital management • Asset portfolio Sun Life – Q1 2026 2
Slide 3: A leading global financial services organization
A leading global financial services organization Balanced & diversified $1.58T business model2 85M+ 68,800 99,000+ Offices in Assets Under $48.3B Year-to-date at March 31, 2026 Clients3,4,5 Employees3,6 Advisors3,7 28 markets3 Management market cap8 (AUM)1,8 Group - Health & Protection 26% Asset man
Slide 4: The Sun Life story
The Sun Life story • A diversified business model, with four well-positioned business groups, focused on creating value and positively impacting our Clients, employees and shareholders • Portfolio of businesses that have strong growth prospects and capital generation in attractive global markets • S
Slide 5: Leveraging global trends
Leveraging global trends • Individual and employer attention on physical and mental health • Demographic shifts in developed markets • Increased economic, market and geopolitical volatility • Gig economy and shift in nature of work • Digital acceleration • Adoption of digital health technologies • G
Slide 6: Strategic overview
• Business overview • Strategic overview • Business group highlights • Share performance • Capital management • Asset portfolio Sun Life – Q1 2026 6
Slide 7: Executing on our ambition to be the best Asset Management and Insurance company in the world
Executing on our ambition to be the best Asset Management and Insurance company in the world Our Purpose: Help Clients achieve lifetime financial security and live healthier lives Our Values: Caring, Authentic, Bold, Inspiring, Impactful Four Pillars Client Impact Strategic Imperatives Scale a leadi
Slide 8: Consistently delivering value to shareholders
Consistently delivering value to shareholders 5-year annualized total shareholder return5 Performance against medium-term objectives At March 31, 2026 Sun Life 11.1% Medium-term objectives2 Q1’26 4-Year3,4 Underlying EPS growth1 Canadian Lifecos 19.8% 10% 4% 9% Canadian Banks 17.0% Underlying ROE1 1
Slide 9: Digital Leadership
Digital Leadership Q1 2026 highlights We are operating like a digital company focused on: Enhancing digital capabilities in Asia • In Hong Kong, we integrated digital, data-driven underwriting into our point-of-sale system, increasing straight-through processing and enabling Digital Experiences fast
Slide 10: Distribution excellence
Distribution excellence Distribution across the four pillars AM • MFS partners with leading retail intermediary firms and global institutional consultants Omni-channel approach • SLC Management distributes products through affiliates Crescent Capital, to serving Clients, including BentallGreenOak, I
Slide 11: Business group highlights
• Business and strategic overview • Strategic overview • Business group highlights • Share performance • Capital management • Asset portfolio Sun Life – Q1 2026 11
Slide 12: Q1 2026 results
Q1 2026 results Profitability ($ millions) Q1’26 Q1’25 Change Results Highlights Sun Life Asset Management 363 390 (7)% Underlying net income1 of $1,050M increased $5M, driven by: Canada 370 346 +7% • Strong performance in Asia reflecting sales momentum in Hong Kong, and Canada from U.S. 218 218 - h
Slide 13: Q1 2026 results
Q1 2026 results Underlying net income1 ($ millions) Reported net income ($ millions) Impact of currency translation decreased underlying net income by $35M2 Impact of currency translation decreased underlying net income by $17M2 AM CAN U.S. ASIA CORP AM CAN U.S. ASIA CORP 390 369 363 370 346 317 218
Slide 14: Asset Management
Solutions & Other MFS SLC Management Aditya Birla Sun Asia Asset Defined Benefits Life AMC Management Solutions Asset Management US$622B AUM1 US$189B AUM1 US$45B AUM1,3 US$21B AUM1 US$15B AUM1 ⬤ ⬤ ⬤ Top 10 US Retail Global, diversified One of the leading Leader in Hong Kong Leading insurance A globa
Slide 15: MFS
RETAIL INSTITUTIONAL TOTAL MFS US$438B AUM1 US$184B AUM1 US$622B AUM1 Distributed through financial advisors Partner with leading consultants to manage MFS is a strong strategic and financial affiliated with brokerage houses, financial assets for public and corporate pension contributor to Sun Life
Slide 16: SLC Management
Real Estate IG Credit Alternative Credit Infrastructure Distribution US$71B AUM1,2 US$55B AUM1,2 US$49B AUM1,2 US$13B AUM1,2 US$2B AUM1,2,3 Seeks to help investors Invests across spectrum Seeks investments in high- 230+ infrastructure One of the largest ⬤ ⬤ ⬤ of investment grade quality companies ac
Slide 17: Canada
Sun Life Health Asset Management & Wealth9 Individual Insurance $7.6B Net premiums1,5 $261B AUMA1,4 $6.7B Net premiums1,5 Canada ~11M Canadians2 ~2M Canadians2 ~2M Canadians2 Market Position: 2nd in Group Benefits6 Market Position: 1st in Group Market Position: 1st in Individual ⬤ ⬤ ⬤ Wealth7and 5th
Slide 18: U.S.
Dental Health Group Individual US$3.2B Revenue1,3 US$2.8B Revenue1,3 US$2.5B Revenue1,3 US$16.5B AUM1 ~32M Members ~8M Members ~10M Members ~0.2M Members One of the largest Dental Largest independent Stop- Top ten U.S. Group Life Closed blocks of individual U.S. benefits provider in the U.S.4 Loss p
Slide 19: Asia
Philippines Hong Kong Vietnam Indonesia $261M ins. sales1,2 $2,124M ins. sales1,2 $55M ins. sales1,2 $87M ins. sales1,2 • 1st in total premiums1,3 for • 4th in MPF net inflows and • 10th in insurance sales and Asia 15 consecutive years 3rd based on AUM1,6 5th in bancassurance sales1,8 • 10th in insu
Slide 20: Share performance
• Business overview • Strategic overview • Business group highlights • Share performance • Capital management • Asset portfolio Sun Life – Q1 2026 20
Slide 21: Earnings consistently exceeded consensus estimates over the past decade
Earnings consistently exceeded consensus estimates over the past decade Underlying earnings per share1 vs. consensus estimate2 $2.10 $1.80 Earnings Per Share ($) $1.50 $1.20 $0.90 $0.60 $0.30 $0.00 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20
Slide 22: High-quality earnings – differential between underlying and reported earnings is modest
High-quality earnings – differential between underlying and reported earnings is modest and/or transitory Cumulative reported net income impacts (2016 – 2025) 100% 91% 87% (5)% (4)% (3)% (1)% Long-term neutral 1 Underlying Markets ACMA & Other Acquisition MFS Shares Reported Net Income Primarily due
Slide 23: Strong record of returning capital to shareholders
Strong record of returning capital to shareholders Annual dividend per common share +9% CAGR $4.00 Dividend Per Share ($) $3.00 $2.00 $1.00 $0.00 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 $14.3B in dividends paid to common shareholders over the past 10 years Sun Life – Q1 2026
Slide 24: Capital management
• Business overview • Strategic overview • Business group highlights • Share performance • Capital management • Asset portfolio Sun Life – Q1 2026 24
Slide 25: Capital model provides financial flexibility
Capital model provides financial flexibility SLF Inc. LICAT1 143% SLA Asset Management LICAT1 134% DentaQuest SLC Canada Bermuda Asia U.S. (U.S.) MFS Management Capitalized to meet local capital rules Book value excl. from LICAT All information as at March 31, 2026; all dollar amounts are in C$, unl
Slide 26: Capital strength & flexibility
Capital strength & flexibility • Target minimum cash and other liquid assets at the holding company of $500 million1,2,3 Q1’26 Capital Q1’26 Capital metrics SLF Inc. ($ millions) Deployment opportunities LICAT3 143% Subordinated debt4 8,172 • Organic investments Financial leverage ratio1 23.2% Innov
Slide 27: M&A activity reflects strategic priorities
M&A activity reflects strategic priorities • Activity over last eleven years promotes growth in Asia and Asset Management and builds out group benefits/dental capabilities in the U.S. Asset Management Canada U.S. Asia 2023 – Divestiture 2016 – Acquisition of 2016 – Expanded 2016 – Expanded 2018 – of
Slide 28: Asset portfolio
• Business overview • Strategic overview • Business group highlights • Share performance • Capital management • Asset portfolio Sun Life – Q1 2026 28
Slide 29: High quality, well-diversified investment portfolio
High quality, well-diversified investment portfolio Investment profile Debt securities by credit rating • 73% of the portfolio is fixed As of March 31, 2026 As of March 31, 2026 income; 98% of fixed income BB and lower rated investment grade2 BBB- 1% Cash, cash equivalents BBB 2% AAA & short-term se
Slide 30: Mortgages and investment property exposures
Mortgages and investment property exposures Mortgages by type and geography1 Mortgages by type and rating1,3 As of March 31, 2026 As of March 31, 2026 Multi-family % of Multi-family ($millions) Office Industrial Retail Other Total ($millions) Office Industrial Retail Other Total residential Total re
Slide 31: Loans
Loans Loans Loans As of March 31, 2026 As of March 31, 2026 Amortized ($millions) FVTPL FVOCI Total Total ($millions) Total Total Cost AAA 199 - - 199 0% Canada 12,821 29% AA 6,434 510 31 6,975 16% U.S. 19,715 44% A 16,201 1,217 226 17,644 39% Europe 9,021 20% BBB 17,475 538 47 18,060 40% Asia 647 1
Slide 32: Private credit: Loan portfolio represents 23% of total invested assets
Private credit: Loan portfolio represents 23% of total invested assets as of Q1 2026 Institutional portfolio strength Loan portfolio As of March 31, 2026 • High-quality portfolio with approximately 95% investment-grade exposure Middle-market direct Cycle-tested platform (40+ years) with focus on dow
Slide 33: Private credit: Crescent Capital private credit portfolio
Private credit: Crescent Capital private credit portfolio Institutional portfolio strength Private credit portfolio concentration (% of market value)1,2 As of March 31, 2026 • US$39 billion in private credit1,3, with approximately 99% in locked vehicles • 95%+ institutional capital base Other 5% Cyc
Slide 34: Appendix
Appendix Sun Life – Q1 2026 34
Slide 35: Market sensitivities
Market sensitivities Change in Private and Public Equity Markets1,2,3 Change in Interest Rates2,3,5 As at March 31, 2026 25% 10% 10% 25% As at March 31, 2026 As at December 31, 2025 ($millions, unless otherwise noted) decrease decrease increase increase ($millions, unless otherwise noted) 50 basis 5
Slide 36: Market sensitivities
Market sensitivities Change in Credit Spreads1,2 As at March 31, 2026 As at December 31, 2025 ($millions, unless otherwise noted) 50 basis point 50 basis point 50 basis point 50 basis point decrease increase decrease increase Potential impact on net income (after-tax) 100 - 125 (25) Potential impact
Slide 37: Forward-Looking Statements
In this document, 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) dete
Slide 38: 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 39: Footnotes
Footnotes From slide 3 2 For more information about business type in Sun Life’s business group, refer to the General Information section in the Financial and Operating Results Supplementary Financial Information for the period ended March 31, 2026. 3 As of December 31, 2025. 4 Rounded to the nearest
Slide 40: Footnotes continued
Footnotes continued From slide 17 2 Total number of Clients served, including Dialogue and Canadian Dental Care Plan members. 3 Includes advisors and associate advisors in Sun Life Financial Distribution (SLFD) network. 4 Total SLGI AUM is $44 billion at March 31, 2026. The portion of SLGI AUM relat
Slide 41: Footnotes continued
Footnotes continued From slide 27 3 Aditya Birla Sun Life AMC Limited (ABSLAMC) and Aditya Birla Life Insurance. Sun Life subsequently sold 12.5% and 6.5% of our ABSLAMC ownership in 2021 and 2024, respectively, to meet regulatory obligations. 4 Acquired additional interest in Bowtie Life Insurance
Slide 42: Sun Life Investor Relations
Sun Life Investor Relations To contact Sun Life Investor Relations: Please email Investor_Relations@sunlife.com Sun Life – Q1 2026 42