Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Q2 2019 Earnings Presentation
15 slides from Sun Life Financial's earnings presentation, Aug 1, 2019
Slide 1: Q2 2019 Financial & Operating Results
2019 Financial & Operating Q2 Results For the period ended June 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 Q2 2019 | Sun Life | 3
Slide 4: Progress Across All Four Pillars
PROGRESS ACROSS ALL FOUR PILLARS Financial highlights Key accomplishments Doing more for Clients Q2’19 reported net income of $595 million; On July 1, completed the acquisition of our majority Launched two new apps in Asia: A pension app in Hong Kong underlying net income(1) of $739 million st
Slide 5: Kevin Strain, Executive Vice President & Chief Financial Officer
KEVIN STRAIN Executive Vice President & Chief Financial Officer Q2 2019 | Sun Life | 5
Slide 6: Q2'19 Results
Q2’19 RESULTS $ millions (except EPS and ROE) Q2’19 Q1’19 Q2’18 Reported net income 595 623 706 Underlying net income(1) 739 717 729 Diluted reported EPS (C$) 1.00 1.04 1.16 Diluted underlying EPS(1) (C$) 1.24 1.20 1.20 Reported ROE(1) 11.0% 11.5% 13.5% Underlying ROE(1) 13.7% 13.3% 14.0% Assets u
Slide 7: Q2'19 Business Group Performance
Q2’19 BUSINESS GROUP PERFORMANCE UNDERLYING NET INCOME(1) ($ millions) Continued business growth and favourable expense experience, offset Impact of currency increased underlying net income by $16M CAN by unfavourable morbidity and credit experience 245 243 245 Reported net income lower than Q2
Slide 8: Sources of Earnings View
SOURCES OF EARNINGS VIEW Sources of earnings Expected profit: business growth across all pillars, Common shareholders Q2’19 Q2’18 with particular strength in Canada and the U.S. $ millions New business strain: higher strain in Asia from Expected profit on in-force business 784 732 lower sales in Int
Slide 9: Sales Results by Business Group
SALES RESULTS BY BUSINESS GROUP INSURANCE SALES(1) BY BUSINESS WEALTH SALES(1) BY BUSINESS $657M VALUE OF NEW $37.0B BUSINESS(1),(2) +20% +4% YoY YoY -12% YoY Canada U.S. Asia Canada Asset Management Asia Canada down 27% as a result of lower sales in Group Benefits Canada wealth sales up 7% driv
Slide 10: Operating Expenses
OPERATING EXPENSES Figures are in $ millions 1% on a constant currency basis 82 13 21 3,365 63 (5) 3,244 (53) Q2 2018 YTD Controllable Contractual Currency Fair Value Impact of Other Q2 2019 YTD Expenses Volumes Adjustments Acquisitions Increase in controllable expenses reflects investments in gro
Slide 11: Appendix
APPENDIX Q2 2019 | Sun Life | 11
Slide 12: Reconciliation of Underlying Net Income
RECONCILIATION OF UNDERLYING NET INCOME Q2’19 Q2’19 $ millions Pre-tax After-tax Reported net income 595 Net equity market impact (including basis risk impact of $6 million)(1) 27 20 Net interest rate impact (including credit spread impact of $(22) million and (165) (114) swap spread impact of $7 mi
Slide 13: Other Notable Items
OTHER NOTABLE ITEMS Impact of other items on our net income Q2’19 Q2’19 $ millions Pre-tax After-tax Experience related items Impact of investment activity on insurance contract liabilities 34 28 Credit 9 12 Mortality - (3) Morbidity (5) (3) Lapse and other policyholder behaviour (4) (4) Expenses 17
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