Slide 1: 2017 Financial & Operating Results
2017 F I NANCI AL & O PERAT I NG RESULT S For the period ended September 30, 2017 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 November 9, 2017 (collectively, this “presentation”), including, but not limited to, statements that are not historical facts, are forward-looking and are subjec
Slide 3: Dean Connor, President and Chief Executive Officer
SUN LIFE FINANCIAL DEAN CONNOR President and Chief Executive Officer
Slide 4: Strong earnings & progress in all four of our pillars
Sun Life Financial Q3 2017 STRONG EARNINGS & PROGRESS IN ALL FOUR OF OUR PILLARS Financial Key Doing More Highlights Initiatives for Clients • Q3’17 reported net income • SLGI announced acquisition of • Announced an interactive of $817 million, up 11% from Excel Funds, a $700 million digital coach “
Slide 5: Kevin Strain, Executive Vice President & Chief Financial Officer
SUN LIFE FINANCIAL KEVIN STRAIN Executive Vice President & Chief Financial Officer
Slide 6: Q3'17 Results
Sun Life Financial Q3 2017 Q3’17 RESULTS C$ millions (except EPS and ROE) Q3’17 Q2’17 Q3’16 Reported net income 817 574 737 Underlying net income(1) 643 689 639 Diluted reported EPS (C$) 1.32 0.93 1.20 Diluted underlying EPS(1) (C$) 1.05 1.12 1.04 Reported ROE 16.2% 11.4% 15.4% Underlying ROE(1) 12.
Slide 7: Q3 2017 Business Group Performance
Sun Life Financial Q3 Q3 2017 BUSINESS GROUP PERFORMANCE 2017 REPORTED NET INCOME (C$ millions) • Strong new business gains in Group Retirement Services and 340 Individual Insurance • Growth of fee income in wealth businesses 253 • Unfavourable disability in Group Benefits 184 195 181 185 92 93 • Fa
Slide 8: Sources of Earnings View
Sun Life Financial Q3 SOURCES OF EARNINGS VIEW 2017 Sources of earnings • Expected profit: business growth across SLF Asset Common shareholders Q3’17 Q3’16 Management and SLF Canada, partially offset by currency C$ millions • New business strain: reflects a more profitable mix of Expected profit on
Slide 9: Sales Results
Sun Life Financial Q3 SALES RESULTS 2017 Constant Change over Currency Q3’17 Q3’16 C$ millions Q3’16 Change over Q3’16 Individual life and health 269 292 (8)% (4%) Group life and health 330 369 (11)% (8%) Total Insurance sales 599 661 (9)% (6)% Total Asset Management & Wealth sales 35,826 35,161 2%
Slide 10: Appendix
Sun Life Financial Q3 2017 APPENDIX
Slide 11: Operating Expenses
Sun Life Financial Q3 OPERATING EXPENSES 2017 Figures are in 20 79 C$ millions 4,661 83 (51) 100 108 4,322 Q3 2016 YTD Controllable Impact of Contractual Fair Value Other Currency Q3 2017 YTD Expenses Acquisitions Volumes Adjustments • Increase in controllable expenses of 2.5% reflecting investments
Slide 12: Reconciliation of Underlying Income
Sun Life Financial Q3 RECONCILIATION OF UNDERLYING INCOME 2017 Q3’17 Q3’17 C$ millions Pre-tax After-tax Reported net income 817 Net equity market impact (including basis risk impact of $(6) million)(1) 23 18 Net interest impact (including credit spread impact of $2 million and swap 98 69 spread imp
Slide 13: Other Notable Items
Sun Life Financial Q3 OTHER NOTABLE ITEMS 2017 Impact of other items on our net income Q3’17 Q3’17 C$ millions Pre-tax After-tax Experience related items Impact of investment activity on insurance contract liabilities 16 12 Mortality 39 30 Morbidity 6 3 Credit 28 22 Lapse and other policyholder beha
Slide 14: Use of Non-IFRS 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 measure pro
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