Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Investor Day (2024)
34 slides from Sun Life Financial's investor day presentation, 2024
Slide 1: Asia: Playing to Win
Asia Playing to Win
Slide 2: Manjit Singh, President, Sun Life Asia
MANJIT SINGH President, Sun Life Asia 2
Slide 3: Delivering strong growth and building on our Leadership position
• Delivered significant growth • In the right markets with the right capabilities Delivering strong • Solid momentum in our At-Scale Businesses growth and building on our Leadership position • Accelerated growth in our Scaling Businesses • Medium-term target1 of 15%+ underlying earnings2 growth per
Slide 4: We have a Winning Track Record
• Delivered significant growth • In the right markets with the right capabilities We have a • Solid momentum in our At-Scale Businesses Winning Track Record • Accelerated growth in our Scaling Businesses • Medium-term target1 of 15%+ underlying earnings2 growth per annum, 15%+ underlying ROE2 1 Thes
Slide 5: Track record of double-digit growth
TRACK RECORD OF DOUBLE-DIGIT GROWTH Insurance Sales1 Underlying Net Income1 ($M) ($M) +12% 1,344 +10% 627 CAGR CAGR 290 556 2014 2022 2014 2022 1 Represents a non-IFRS financial measure. Refer to the non-IFRS Financial Measures section in the appendix to these slides. All results are reported on an
Slide 6: Execution excellence driving strong momentum
EXECUTION EXCELLENCE DRIVING STRONG MOMENTUM Insurance Sales1 New Business CSM1,2 Underlying Net Income1 Organic CSM Growth CAGR3 ($M) ($M) ($M) 17% +35% +57% +15% 1,897 717 526 457 1,406 9% 9% 458 7% YTD Q3’23 YTD Q3’24 YTD Q3’23 YTD Q3’24 YTD Q3’23 YTD Q3’24 Sun Life Peer A Peer B Peer C Asia 1 Re
Slide 7: Attractive returns in At-Scale Businesses with upside in Scaling Businesses
ATTRACTIVE RETURNS IN AT-SCALE BUSINESSES WITH UPSIDE IN SCALING BUSINESSES Underlying ROE1 Underlying ROE1 Proven record of increasing ROE Scaling Businesses present upside opportunities by 50bps per year 19.9% 12.8% 8.0% 10.5% 2.1% 2014 YTD Q3’24 -1.1% 2 3 At-Scale Scaling Businesses Businesses 20
Slide 8: We are in the right markets with the right local capabilities
• Delivered significant growth We are in the • In the right markets with the right capabilities right markets • Solid momentum in our At-Scale Businesses with the • Accelerated growth in our Scaling Businesses right local capabilities • Medium-term target1 of 15%+ underlying earnings2 growth per ann
Slide 9: Our markets have attractive growth fundamentals
OUR MARKETS HAVE ATTRACTIVE GROWTH FUNDAMENTALS Rapidly growing Unfulfilled Client economies needs persist Real GDP growth, 20281 Life insurance penetration, 20232 Philippines 6% 1.2% India 7% 2.8% Vietnam 6% 1.6% Double-digit sales growth Indonesia 5% 0.8% across Asia Malaysia 4% 3.7% 4% 2.1% China
Slide 10: We have the right local capabilities
WE HAVE THE RIGHT LOCAL CAPABILITIES LOCAL CAPABILITIES Trusted brand Comprehensive suite of solutions Digital capabilities Strong talent & culture Diversified distribution GLOBAL STRENGTHS 10
Slide 11: Diversified & high-quality distribution with wide reach
DIVERSIFIED & HIGH-QUALITY DISTRIBUTION WITH WIDE REACH China Hong Kong Agency 2k Advisors 3k Advisors ~90k Advisors with a focus on 1 bank partner writing quality business Enabled by Digital 6 bank partners India #1 Broker 52k Advisors market share1 Bancassurance 11 bank 26 bank partnerships with p
Slide 12: Leveraging global strength of Sun Life
LEVERAGING GLOBAL STRENGTH OF SUN LIFE LOCAL CAPABILITIES ASIA Picture Deep life insurance protection capabilities Leading global asset management capabilities Balance sheet to invest in growth Global network of talent GLOBAL STRENGTHS 12
Slide 13: Relentless focus on execution
RELENTLESS FOCUS ON EXECUTION Leverage trusted brand Reach more Clients Deliver Client impact Speed to market Enabled by Purpose-driven people and culture 13
Slide 14: Market leadership positions in our At-Scale Businesses
• Delivered significant growth Market leadership • In the right markets with the right capabilities positions in our • Solid momentum in our At-Scale Businesses At-Scale Businesses • Accelerated growth in our Scaling Businesses • Medium-term target1 of 15%+ underlying earnings2 growth per annum, 15%
Slide 15: Hong Kong
HONG KONG Continuing to grow market share and deepening Client relationships Right market Right capabilities $83B+ of gross Market leader position across Life and MPF written premiums1 • #4 in Life Sales4 and #3 in MPF AUM and inflows5 • Strong Client loyalty and increasing share of wallet 40% of As
Slide 16: High Net Worth
HIGH NET WORTH Leveraging our industry leadership, exceptional broker and Client experience and distinctive offerings to drive strong growth Right market Right capabilities 4M+ individuals globally #1 International High Net Worth “HNW” insurer4 with $5M+ assets1 • 25+ years of U/HNW expertise, with
Slide 17: The Philippines
THE PHILIPPINES Building on our #1 position by investing in agency growth, digitizing customer and advisor journeys, and maintaining top brand trust Right market Right capabilities 6%+ GDP growth1 Undisputed leader with reputation for quality agency, quality Client experience and quality sales #1 Ma
Slide 18: India: partnership with Aditya Birla Group over 25 years
INDIA We have built a formidable partnership with Aditya Birla Group over 25 years Established partnership 1999 First in India to launch a unit-linked insurance product 2001 Combined JV AUM grows over $10B 2009 Increased stake in LifeCo from 26% to 49% 2016 AMC IPO generated $450M+1 2021 $2B+ market
Slide 19: India: a $5B+ business
INDIA Together, Sun Life and Aditya Birla Group have built a $5B+ business1 $1B market value (Sun Life Share)4 Underlying Net Income2,3 ($M) (Sun Life Share) Aditya Birla Sun Life Insurance $1B market value (Sun Life Share)4 Aditya Birla Sun Life Asset Management Company 2014 2019 2024F 2 Represents
Slide 20: India: extensive capabilities in life and wealth
INDIA Leveraging extensive capabilities of Aditya Birla and Sun Life to capture significant life and wealth market opportunities in India Right market Right capabilities Well-established brand in life and wealth with strong 7% real GDP growth1 growth prospects 20M Clients served4 1B+ middle class po
Slide 21: Realizing the potential in Scaling Businesses
• Delivered significant growth • In the right markets with the right capabilities Realizing the potential in • Solid momentum in our At-Scale Businesses Scaling Businesses • Accelerated growth in our Scaling Businesses • Medium-term target1 of 15%+ underlying earnings2 growth per annum, 15%+ underly
Slide 22: Indonesia
INDONESIA Executing our expanded CIMB bancassurance relationship and driving scale in Sharia and agency to meet Client needs Right market Right capabilities #1 most populous Bancassurance partnerships with CIMB through 2039 ASEAN country1 8M CIMB Niaga bank customers4 $2.6B mortality Leadership posi
Slide 23: Vietnam
VIETNAM Leveraging our rising brand, exclusive bancassurance partnerships and growing agency distribution to meet Client needs Right market Right capabilities 6% real GDP growth1 Long-term exclusive partnerships 2 of the top-10 most reputable banks4 13M+ increase in middle- Leading digital capabilit
Slide 24: China
CHINA Partnering with Everbright to meet Client life, health and wealth needs across their expansive business Client base Right market Right capabilities Partnership with China Everbright Group 400M population aged 60+ Diverse operations across protection, health, and wealth by 20351 Bancassurance w
Slide 25: Malaysia
MALAYSIA Continuing to outpace the market by leveraging our CIMB partnership and accelerating agency growth Right market Right capabilities Fastest-growing insurer over past ten years4 #2 GDP per capita in ASEAN1 3X earnings over 2013-2022 15% of population aged 20-year exclusive bancassurance partn
Slide 26: We are positioned to win
• Delivered significant growth • In the right markets with the right capabilities We are • Solid momentum in our At-Scale Businesses positioned to win • Accelerated growth in our Scaling Businesses • Medium-term target1 of 15%+ underlying earnings2 growth per annum, 15%+ underlying ROE2 1 These targ
Slide 27: We are well positioned to win
WE ARE WELL POSITIONED TO WIN We are in the right markets with the right capabilities We have access to the global strength of Sun Life and a relentless focus on execution UNDERLYING NET INCOME 1,2 UNDERLYING GROWTH PER ANNUM ROE 1,2 15%+ 15%+ 1 These targets are forward-looking within the meaning o
Slide 28: Delivering strong growth and building on our Leadership position
• Delivered significant growth • In the right markets with the right capabilities Delivering strong growth and building on • Solid momentum in our At-Scale Businesses our Leadership position • Accelerated growth in our Scaling Businesses • Medium-term target1 of 15%+ underlying earnings2 growth per
Slide 29: Appendix
Appendix Sun Life | investor vay 29
Slide 30: 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 collectively referred to as “we”, “us”, “our”, “Sun Life” and the “Company”. Reported net income (loss) refers to Common shareholders' net income (loss)
Slide 31: Use of Non-IFRS Financial Measures
Use of Non-IFRS Financial Measures The Company prepares its financial statements in accordance with international financial reporting standards (“IFRS”). This presentation includes financial measures that are not based on IFRS (“non-IFRS financial measures”). We report certain financial information
Slide 32: Endnotes
Endnotes Slide 6: 2 Impact of new insurance business on CSM, also referred to as "new business CSM”, represents growth from sales activity in the period. 3 Organic CSM growth CAGR during 2023 and the first half of 2024 as a percentage of the Total CSM Balance at year-end 2022; external financial dis
Slide 33: Endnotes continued
Endnotes continued Slide 17: 1 Projected CAGR from 2023 to 2028. IMF, World Economic Outlook.. 2 Philippine Statistics Authority. 3 Swiss Re Sigma. 4 Based on total premium income for Sun Life of Canada (Philippines). Insurance Commission of the Philippines. 5 Gold in 2010-2017, Platinum 2018-2024.
Slide 34: Endnotes continued
Endnotes continued Slide 23: 1 Projected CAGR from 2023 to 2028. IMF, World Economic Outlook. 2 from 13m in 2023 to 26m in 2026. HKIA Study, 2021. 3 Swiss Re Sigma. 4 2024 Vietnam Report JSC. 5 As of August 2024. 6 From 9% in 2019 to 21% in the first half of 2024. Slide 24: 1 China's National Health