Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Q1 2014 Earnings Presentation
17 slides from Sun Life Financial's earnings presentation, May 7, 2014
Slide 1: Financial & Operating Results for the Period Ended March 31, 2014
FINANCIAL & OPERATING RESULTS FOR THE PERIOD ENDED MARCH 31, 2014 Sun Life Financial Inc. (unaudited) Forward-looking statements Certain statements in this presentation and certain oral statements made during the earnings conference call on May 7, 2014 (collectively, this “presentation”), including,
Slide 2: Strong Quarter
Dean A. Connor President and Chief Executive Officer STRONG QUARTER • Operating net income of $454 million, up from $448 million in Q1’13 • Underlying net income of $440 million, up from $385 million in Q1’13 • New measure which excludes market-related impacts, assumption changes and management acti
Slide 3: Solid Q1 Earnings / Profitable Sales Growth
SOLID Q1 EARNINGS Continuing Operations C$ millions Q1’14 Q4’13 Q1’13 (unless otherwise noted) Operating net income 454 642 448 Underlying net income 440 375 385 Reported net income 400 571 410 Diluted Operating EPS (C$) 0.74 1.05 0.75 Diluted Underlying EPS 0.72 0.61 0.64 (C$) (1) Operating ROE 12.
Slide 4: Executing on Our Four Pillar Strategy
EXECUTING ON OUR FOUR PILLAR STRATEGY A strategy focusing on growth, higher ROE, and less volatile businesses Becoming the BEST PERFORMING LIFE INSURER in Canada ✓ ✓ ENHANCING LEADERSHIP POSITION in U.S. group insurance and BECOMING TOP 5 in voluntary benefits GROWING our ASSET MANAGEMENT business g
Slide 5: Q1'14 – Achieving Key Milestones / Exceptional Growth at MFS
Q1’14 – ACHIEVING KEY MILESTONES ✓ Group Benefits(1) ENHANCING LEADERSHIP Business In-force POSITION in U.S. group (US$ millions) insurance and BECOMING TOP 5 in voluntary benefits 2,433 542 2,247 469 • Total Group Benefits(1) sales up 25% 2,084 with Voluntary sales up 73% 367 • Transformation of Em
Slide 6: Q1'14 – Continued Execution
Q1’14 – CONTINUED EXECUTION GROWING ASIA to be a MORE SIGNIFICANT PART of Sun Life’s results ✓ Individual life insurance sales(4) (C$ millions) Wealth sales(4)(5) (C$ millions) 5,851 5,180 • Strong sales growth in Hong Kong 5,024 and Indonesia • Agency sales force exceeded 5,400 in 373 368 the Phili
Slide 7: Wealth Management
WEALTH MANAGEMENT Sales Value of new business Q1’14 (LTM) (C$ billions) $1.15 billion Wealth 117.8 114.5 Protection 100.0 70.5 44% 56% LTM 2011 2012 2013 Q1’14 13 WEALTH MANAGEMENT Fee income Assets under management (C$ millions) (C$ billions) 559.2 3,546 528.0 3,339 2,632 398.2 2,370 328.8 2012 LTM
Slide 8: Q1'14 Financial Highlights
Colm J. Freyne Executive Vice President and Chief Financial Officer Q1’14 FINANCIAL HIGHLIGHTS • Strong top line and solid bottom line performance(1) • Operating net income of $454 million in Q1’14 from $448 million in Q1’13 • Underlying net income of $440 million in Q1’14 from $385 million in Q1’13
Slide 9: Solid Earnings / Sources of Earnings
SOLID EARNINGS Continuing Operations Q1’14 Q1’14 (C$ millions) Pre-tax After-tax Operating net income 454 Net impact of market factors (48) (26) Assumption changes and management actions 56 40 Underlying net income 440 Other notable items 2 (3) 17 STRONG GROWTH IN EXPECTED PROFIT, REDUCED NEW BUSINE
Slide 10: Q1'14 Performance – Canada and U.S.
Q1’14 PERFORMANCE Becoming the BEST PERFORMING LIFE INSURER in Canada ✓ Change over (C$ millions) Q1’14 Q1’13 Operating net income 238 (10)% Underlying net income 210 1% Sales Individual Insurance 65 38% Individual Wealth – Fixed Products 401 31% Individual Wealth – Mutual Funds 861 34% Individual W
Slide 11: Q1'14 Performance – Asset Management and Asia
Q1’14 PERFORMANCE GROWING our ASSET MANAGEMENT BUSINESS globally ✓ (US$ millions) Q1’14 Change over Q1’13 Operating net income 133 33% Underlying net income 133 33% 4 percentage Pre-tax operating profit margin 42% points Gross Sales (US$ billions) 22.4 (1)% Net Sales (US$ billions) 3.7 (40)% Assets
Slide 12: Key Takeaways – Q1'14
KEY TAKEAWAYS – Q1’14 Strong quarter Growing earnings power Efficient management of capital Disciplined execution 23 Kevin Strain President, Sun Life Asia
Slide 13: Individual Life Sales
INDIVIDUAL LIFE SALES Individual life insurance sales(1) (C$ millions) 373 92 323 192 298 286 149 272 108 281 116 Markets China and India Other markets 178 156 149 131 2009 2010 2011 2012 2013 (1) Sales by joint ventures are based on proportionate equity interest. 25 INDIVIDUAL LIFE SALES BY MARKET
Slide 14: Operating Net Income / Sources of Earnings
OPERATING NET INCOME Operating net income (C$ millions) 157 144 129 92 76 2009 2010 2011 2012 2013 27 SOURCES OF EARNINGS Source of earnings 2009 2013 Change (C$ millions) 2009 76 Expected profit on in-force 106 196 90 +90 business Impact of new business (122) (87) 35 +35 Earnings on surplus 33 57 2
Slide 15: Reconciliation of Underlying Net Income
APPENDIX 29 RECONCILIATION OF UNDERLYING NET INCOME Continuing Operations Q1’14 Q1’14 (C$ millions, unless otherwise stated) Pre-tax After-tax Operating net income 454 Net equity market impact (including basis risk impact of $3 million) 38 33 Net interest impact (including credit spread impact of $(
Slide 16: Other Notable Items
OTHER NOTABLE ITEMS Impact of other items on our net income Q1’14 Q1’14 Continuing Operations Pre-tax After-tax (C$ millions) Experience related items Impact of investment activity on insurance contract liabilities 52 36 Mortality/morbidity (31) (22) Credit 22 16 Lapse and other policyholder behavio
Slide 17: Forward-Looking Statements
Forward-Looking Statements Certain statements in this presentation, including (i) statements relating to our strategies, (ii) statements that are predictive in nature, (iii) statements that depend upon or refer to future events or conditions, and (iv) that include words such as "aim", "anticipate",