Sun Life Financial Inc. · TSX:SLF

Sun Life Financial — Q3 2018 Earnings Presentation

15 slides from Sun Life Financial's earnings presentation, Nov 8, 2018

  1. Slide 1: Q3'18 Financial & Operating results

    Q3’18 Financial & Operating results For the period ended September 30, 2018 Sun Life Financial Inc. (unaudited) Life’s brighter under the sun

  2. Slide 2: Forward-looking statements

    Forward-looking statements Certain statements in this presentation and certain oral statements made during the earnings conference call on November 8, 2018 (collectively, this “presentation”), including, but not limited to, statements that are not historical facts, are forward-looking and are subjec

  3. Slide 3: Dean Connor, President and Chief Executive Officer

    DEAN CONNOR President and Chief Executive Officer Life’s brighter under the sun 3

  4. Slide 4: Strong progress across all four pillars

    Q3 STRONG PROGRESS ACROSS ALL FOUR PILLARS 2018 SUN LIFE FINANCIAL DOING MORE FOR FINANCIAL HIGHLIGHTS KEY ACCOMPLISHMENTS CLIENTS  Q3’18 reported net income of $567 million;  Announced the launch of Lumino, a first of its kind  Entered into a strategic relationship with Rise People underlying ne

  5. Slide 5: Kevin Strain, Executive Vice President & Chief Financial Officer

    KEVIN STRAIN Executive Vice President & Chief Financial Officer Life’s brighter under the sun 5

  6. Slide 6: Q3'18 Results

    Q3 Q3’18 RESULTS 2018 SUN LIFE FINANCIAL C$ millions (except EPS and ROE) Q3’18 Q2’18 Q3’17 Reported net income 567 706 817 Underlying net income(1) 730 729 643 Diluted reported EPS (C$) 0.93 1.16 1.32 Diluted underlying EPS(1) (C$) 1.20 1.20 1.05 Reported ROE 10.8% 13.5% 16.2% Underlying ROE(1) 14.

  7. Slide 7: Q3'18 Business Group Performance

    Q3 2018 Q3’18 BUSINESS GROUP PERFORMANCE REPORTED NET INCOME (LOSS) SUN LIFE FINANCIAL (C$ millions) Impact of currency increased reported net income by $6M  Growth in fee income in wealth businesses and favourable investing 340 335 241 216 CAN  activity Reported net income lower over the prior ye

  8. Slide 8: Sources of Earnings View

    Q3 SOURCES OF EARNINGS VIEW 2018 SUN LIFE FINANCIAL Sources of earnings Expected profit: 11% year-over-year increase driven Common shareholders Q3’18 Q3’17 by business growth across all four pillars C$ millions Expected profit on in-force business(1) 788 710 New business strain: higher strain in SLF

  9. Slide 9: Sales Results by Business Group

    Q3 SALES RESULTS BY BUSINESS GROUP 2018 INSURANCE SALES(1) BY BUSINESS WEALTH SALES(1) BY BUSINESS SUN LIFE FINANCIAL VALUE OF NEW BUSINESS(1),(3) +9% YoY $577M $29.8B -4% -17% YoY YoY SLF Canada SLF U.S. SLF Asia SLF Canada SLF Asset Management SLF Asia  SLF Asia individual sales up 7% on a consta

  10. Slide 10: Appendix

    APPENDIX Life’s brighter under the sun 10

  11. Slide 11: Operating Expenses

    Q3 OPERATING EXPENSES 2018 Figures are in SUN LIFE FINANCIAL C$ millions 113 21 (11) 4,807 (32) 111 (56) 4,661 Q3 2017 YTD Controllable Contractual Other Fair Value Impact of Currency Q3 2018 YTD Expenses Volumes Adjustments Acquisitions  Increase in controllable expenses reflects investments in gr

  12. Slide 12: Reconciliation of Underlying Income

    Q3 RECONCILIATION OF UNDERLYING INCOME 2018 SUN LIFE FINANCIAL Q3’18 Q3’18 C$ millions Pre-tax After-tax Reported net income 567 Net equity market impact (including basis risk impact of $5 million)(1) 7 5 Net interest impact (including credit spread impact of $(3) million and swap spread impact 27 1

  13. Slide 13: Other Notable Items

    Q3 OTHER NOTABLE ITEMS 2018 SUN LIFE FINANCIAL Impact of other items on our net income Q3’18 Q3’18 C$ millions Pre-tax After-tax Experience related items Impact of investment activity on insurance contract liabilities 34 29 Mortality 17 15 Morbidity 9 8 Credit 27 22 Lapse and other policyholder beha

  14. Slide 14: Use of Non-IFRS Financial Measures

    In this presentation, Sun Life Financial Inc., its subsidiaries and, where applicable, its joint ventures and associates are referred to as “we”, “us”, “our” and the “Company”. Use of Non-IFRS Financial Measures We report certain financial information using non-IFRS financial measures, as we believe

  15. 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

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