Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Q2 2021 Earnings Presentation
18 slides from Sun Life Financial's earnings presentation, Aug 5, 2021
Slide 1: Q2 2021 Financial & Operating Results
Q2 2021 Financial & Operating Results For the period ended June 30, 2021 Sun Life Financial Inc. (unaudited)
Slide 2: Forward-looking statements and non-IFRS financial measures
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, Chief Executive Officer
Dean Connor Chief Executive Officer S U N L I F E • Q 2 2 0 2 1 3
Slide 4: Kevin Strain, President
Kevin Strain President S U N L I F E • Q 2 2 0 2 1 4
Slide 5: Second quarter key highlights
Second quarter key highlights Executing on our ambition to be one of the best insurance and asset management companies globally Financial (vs. Q2 2020) Highlights Making it easier In Canada, leveraging predictive models to $900M +73% $883M +19% for Clients to do transform our underwriting process, C
Slide 6: Second quarter digital achievements across our businesses
Second quarter digital achievements across our businesses Digital Enterprise is the next step in the evolution of our Client strategy, bringing the business and IT closer than ever before and transforming the way we work ▪ Ella, our digital coach, proactively ▪ Expanded online Dental Health Center ▪
Slide 7: Manjit Singh, Executive Vice President & Chief Financial Officer
Manjit Singh Executive Vice President & Chief Financial Officer S U N L I F E • Q 2 2 0 2 1 7
Slide 8: Q2 2021 results
Q2 2021 results PROFITABILITY Q2’21 Q1’21 Q2’20 YoY Change Underlying net income +19% y/y: Driven by business growth, favourable Reported net income ($ millions) 900 937 519 73% credit experience and lower effective tax Underlying net income ($ millions)1 883 850 739 19% rate; partially offset by im
Slide 9: Business group performance
Business group performance Reported net income ($ millions) Underlying net income1 ($ millions) Impact of currency translation decreased reported net income by $70M Impact of currency translation decreased underlying net income by $75M +245% +33% (1)% +13% +3% +34% +20% +6% Constant currency +245% +
Slide 10: Sources of earnings
Sources of earnings Sources of earnings Common shareholders Q2’21 Q2’20 Expected profit: up 9% (18% in constant currency) from prior $ millions year driven by Asset Management as well as business growth in Expected profit on in-force business1 950 872 Canada and Asia Impact of new business1 15 (6) I
Slide 11: Sales results by business group
Sales results by business group (in constant currency) Insurance Wealth and Asset Management Individual sales1 Wealth sales1 [excluding AM] ($ millions) ($ millions) $8,258 $473 $5,063 $312 +63% +52% Value of new business1,2 Canada Q2'20 Q2'21 Canada Asia $284M Q2'20 Q2'21 Asia Group sales1 +46% YoY
Slide 12: Operating expenses
Operating expenses Increase driven by business growth, higher compensation costs, and the impact of acquisitions Increase in controllable expenses and contractual ($ millions) 168 130 volumes reflect: 110 22 (165) • Strong revenue growth in 2,036 Asset Management and 1,771 company performance result
Slide 13: Appendix
Appendix S U N L I F E • Q 2 2 0 2 1 13
Slide 14: Reconciliation of underlying net income
Reconciliation of underlying net income Q2’21 Q2’21 $ millions Pre-tax Post-tax Reported net income 900 Net equity market impact (including basis risk impact of $4 million)1 136 99 Net interest rate impact (including credit spread impact of $(10) and swap spread impact of $24 million)1 (80) (36) Imp
Slide 15: SOE experience gains/(losses) - details
SOE experience gains/ (losses) - details Q2’21 Q2’20 Q2’21 Q2’20 $ millions Pre-tax Pre-tax Post-tax Post-tax Net equity market impact 136 84 99 59 Net interest rate impact1 (80) (465) (36) (205) Impact of changes in the fair value of investment properties1 22 (51) 22 (39) Market-Related Impacts1 78
Slide 16: Market movements and impacts in the quarter
Market movements and impacts in the quarter Market Movements Q2’21 Q1’21 Q2’20 Equity Market Impacts Q2’21 Q1’21 Q2’20 ($millions, post-tax) S&P/ TSX +7.8% +7.3% 16.0% Equity market movement and volatility 95 67 105 S&P 500 +8.2% +5.8% 20.0% Basis risk 4 5 (46) CA 10 - year (17) bps +88 bps (17) bps
Slide 17: 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 18: Forward-Looking Statements
Forward-Looking Statements From time to time, we make 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 legislation