Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Q4 2015 Earnings Presentation
20 slides from Sun Life Financial's earnings presentation, Feb 11, 2016
Slide 1: Financial & Operating Results for the Period Ended December 31, 2015
FINANCIAL & OPERATING RESULTS FOR THE PERIOD ENDED December 31, 2015 Sun Life Financial Inc. (unaudited)
Slide 2: Forward-looking statements
Forward-looking statements Certain statements in this presentation and certain oral statements made during the earnings conference call on February 11, 2016 (collectively, this “presentation”), including, but not limited to, statements that are not historical facts, are forward-looking and are subje
Slide 3: Dean A. Connor, President and Chief Executive Officer
Dean A. Connor President and Chief Executive Officer
Slide 4: Operating Results
SUN LIFE FINANCIAL OPERATING RESULTS 2015 Underlying Net Income by Business Group(1) • Q4’15 operating net income of $598 million, up from $511 million in Q4’14 SLF Asia 10% • Underlying net income of $646 SLF Canada million, up from $360 million in SLF Asset Management 36% 29% Q4’14 SLF U.K. SLF U.
Slide 5: Fourth Quarter Highlights
SUN LIFE FINANCIAL FOURTH QUARTER HIGHLIGHTS • Strengthened leadership position in Defined Benefit Solutions with innovative $530 million LEADER in FINANCIAL group annuity transaction PROTECTION and WEALTH • Continued momentum in Sun Life Global Investments mutual funds and Sun Life SOLUTIONS in our
Slide 6: Strong Execution, Exceeding 2015 Objectives
SUN LIFE FINANCIAL STRONG EXECUTION, EXCEEDING 2015 OBJECTIVES • Committed $2.4 billion in capital through six UNDERLYING NET INCOME (C$ millions) transactions in support of four pillar strategy • Investments in Canadian wealth gaining traction: 2,305 • Excellent performance from Sun Life Global $1.
Slide 7: Colm J. Freyne, Executive Vice President and Chief Financial Officer
Colm J. Freyne Executive Vice President and Chief Financial Officer
Slide 8: Q4'15 Results
SUN LIFE FINANCIAL Q4’15 RESULTS C$ millions Q4’15 Q3’15 Q4’14 (except EPS and ROE) Operating net income 598 478 511 Underlying net income 646 528 360 Reported net income 536 482 502 Diluted operating EPS (C$) 0.98 0.78 0.83 Diluted underlying EPS (C$) 1.05 0.86 0.59 Operating ROE 12.7% 10.5% 12.6%
Slide 9: Business Group Performance
SUN LIFE FINANCIAL BUSINESS GROUP PERFORMANCE SLF Canada SOLID GROWTH IN UNDERLYING EARNINGS ACROSS BUSINESSES SLF Canada (C$ millions) • Favourable disability results and investing activity • New business gains in Group Retirement Services • Continued investment in Individual Wealth 269 SLF SLFU.S.
Slide 10: Sources of Earnings View
SUN LIFE FINANCIAL SOURCES OF EARNINGS VIEW Sources of earnings Common shareholders Q4’15 Q4’14 Change C$ millions Expected profit on in-force business 680 597 83 Impact of new business (30) (43) 13 Experience gains or (losses) 84 (207) 291 Assumption changes and management actions (20) 214 (234) Ea
Slide 11: Sales Results
SUN LIFE FINANCIAL SALES RESULTS Change over Change over C$ millions Q4’15 2015 Q4’14 2014 Individual life and health 276 20% 916 10% Group life and health 491 (16%) 1,256 1% Total Insurance sales 767 (6%) 2,172 5% Wealth – SLF Asset 24,247 4% 100,523 10% Management Wealth – Non SLF Asset 5,387 (18%
Slide 12: Operating Expenses
SUN LIFE FINANCIAL OPERATING EXPENSES 2015 Change C$ millions Full Year (over 2014) Operating expenses 5,037 500 Currency Impact 400 400 MFS(1) 1,576 (50) Operating expenses, excluding currency and MFS 3,061 150 Volume-related(2) 86 Inflation, investments in growth (net of productivity gains) and 64
Slide 13: Stephen C. Peacher, Executive Vice President and President, Sun Life Investment Management
SUN LIFE FINANCIAL Stephen C. Peacher Executive Vice President and President, Sun Life Investment Management 13
Slide 14: Energy Exposure
SUN LIFE FINANCIAL ENERGY EXPOSURE Debt Securities & Corporate Loan Highlights Energy Exposure Total $5.6 billion • Total energy debt securities & corporate loan exposure 4% of total invested assets Exploration & Production • 93% of our energy portfolio is 15% rated investment grade Integrated • Per
Slide 15: Appendix
SUN LIFE FINANCIAL APPENDIX 15
Slide 16: Reconciliation of Underlying Net Income
SUN LIFE FINANCIAL RECONCILIATION OF UNDERLYING NET INCOME Q4’15 Q4’15 C$ millions Pre-tax After-tax Operating net income 598 Net equity market impact (including basis risk impact of $(3) million) (9) (4) Net interest impact (including credit spread impact of $(10) million and swap (29) (35) spread
Slide 17: Other Notable Items
SUN LIFE FINANCIAL OTHER NOTABLE ITEMS Impact of other items on our net income Q4’15 Q4’15 C$ millions Pre-tax After-tax Experience related items Impact of investment activity on insurance contract liabilities 98 73 Mortality 4 7 Morbidity 16 12 Credit 21 18 Lapse and other policyholder behaviour (7
Slide 18: Wealth Management
SUN LIFE FINANCIAL WEALTH MANAGEMENT(1) Sales Value of new business 2015 (C$ billions) C$1.2 billion Wealth 123 114 111 Protection 100 40% 60% 2012 2013 2014 2015 Fee income Assets under management (C$ millions) (C$ billions) 746 4,911 606 4,053 528 3,339 398 2,632 2013 2014 2015 2012 2013 2014 2015
Slide 19: Use of Non-IFRS Financial Measures
In this presentation, Sun Life Financial Inc. and its subsidiaries, 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 that these measures pr
Slide 20: Forward-Looking Statements
Forward-Looking Statements Certain statements in this presentation, including statements (i) related to our pending acquisition of the U.S Employee Benefits Business of Assurant ,Inc., (ii) statements relating to our growth strategies, (iii) statements concerning our medium-term financial objectives