Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Investor Presentation (August 2014)
26 slides from Sun Life Financial's investor presentation, August 2014
Slide 1: Building Sustainable Shareholder Value
BUILDING SUSTAINABLE SHAREHOLDER VALUE Q2 2014
Slide 2: 127,755 advisors, P&D $126 billion, AUM of $684 billion
127,755 advisors(1) · P&D(2) $126 billion · AUM(3) of $684 billion (1) At December 31, 2013. (2) Last Twelve Months (“LTM”) Q2’14; premiums and deposits (“P&D”). Represents a non-IFRS financial measure. Includes Birla Sun Life Asset Management Company’s equity and fixed income mutual funds, based on
Slide 3: Enduring Strategy
ENDURING STRATEGY A strategy focusing on growth, higher ROE, and less volatile businesses Becoming the BEST PERFORMING LIFE INSURER in Canada ✓ ✓ ENHANCING LEADERSHIP POSITION in U.S. group insurance and BECOMING TOP 5 in voluntary benefits GROWING our ASSET MANAGEMENT business globally ✓ ✓ GROWING
Slide 4: Long Term Macro Drivers of Consumer Demand
PRODUCTS & MARKETS POSITIONED FOR GROWTH AGING DOWNLOADING of responsibility from GROWTH of the middle class in the of baby boomers government & employers to emerging markets of Asia employees LONG TERM MACRO DRIVERS OF CONSUMER DEMAND 4
Slide 5: Ambitious and Achievable Objectives
AMBITIOUS AND ACHIEVABLE OBJECTIVES Operating Net Income 2011 Adjusted 2015 Objectives(1) (C$ millions) Net Income(2) 2015 operating net income objective of SLF Canada 900 660 $1.85 BILLION SLF U.S. 345 273 MFS 450 275 SLF Asia 225 110 2015 ROE objective of 12% - 13% Corporate (70) (73) Total compan
Slide 6: Robust Sales & Earnings Growth
ROBUST SALES & EARNINGS GROWTH Continuing Operations Change • LTM Q2’14 value of new business(1) up 4% C$ millions LTM Q2’14 over LTM (unless otherwise noted) Q2’13 • LTM Q2’14 expected profit(1) up 23% • LTM Q2’14 new business strain(1) down 37% Life and Health sales(1)(2) 1,929 12.2% Wealth sales(
Slide 7: Did You Know?
DID YOU KNOW? • Voted by Canadians as “Most Trusted Life Insurance Company” in the country for the fifth consecutive year(1) STRONG BRAND • Achieved gold certification in the Progressive Excellence Program® (PEP)(2) • CARP(3) recommended provider for retirement and estate planning (1) Source: Harris
Slide 8: Strong Sales, Improved Profitability
STRONG SALES, IMPROVED PROFITABILITY Becoming the BEST PERFORMING LIFE INSURER in Canada ✓ SLGI CLIENT ASSETS UNDER MANAGEMENT(1)(2) (C$ millions) IMPACT OF NEW BUINESS(1) 16 (C$ billions) 8,424 LTM 2011 2012 2014 HIGHLIGHTS Q2’14 6,381 • Achieved growth across individual businesses 5,314 • Realized
Slide 9: Strategy & Key Initiatives
STRATEGY & KEY INITIATIVES Capture the • Expand retirement distribution RETIREMENT • Grow retail and institutional retirement assets; grow SLGI MARKET assets OPPORTUNITY • Drive growth in Defined Benefit Solutions Extend #1 • Total Benefits and Mobile Initiatives to differentiate plan MARKET SHARE s
Slide 10: Accelerated Growth, Lower Volatility
ACCELERATED GROWTH, LOWER VOLATILITY ENHANCING LEADERSHIP POSITION in U.S. group insurance and BECOMING TOP 5 in voluntary benefits ✓ VOLUNTARY SALES(2) (US$ millions) GROUP BENEFITS(1) BUSINESS IN-FORCE (US$ millions) 2,460 178 178 2014 HIGHLIGHTS 548 2,285 • Transformed Group Benefits(1) sales and
Slide 11: Strategy & Key Initiatives
STRATEGY & KEY INITIATIVES Transform • Improve distribution effectiveness, enhance customer GROUP experience and create a scalable operating model BENEFITS • Differentiate through medical stop-loss offering BUSINESS Grow • Expand product portfolio • Enhance enrollment, distribution and technology VO
Slide 12: Record Performance at MFS
RECORD PERFORMANCE AT MFS(1) GROWING our ASSET MANAGEMENT BUSINESS globally ✓ ASSETS UNDER MANAGEMENT(2) (US$ billions) OPERATING NET INCOME(2) (US$ millions) 2014 HIGHLIGHTS 530 • Achieved record average net 439 465 assets • Grew and diversified AUM(2) 354 • Won multiple industry awards • Continued
Slide 13: Strategy & Key Initiatives
STRATEGY & KEY INITIATIVES Deliver consistent, • Enhance global research platform strong • Strengthen unique, collaborative culture INVESTMENT PERFORMANCE Broaden • Diversify product sales and grow in our markets GLOBAL • Add investment offices and staff to cover more regions PRESENCE • Expand globa
Slide 14: Sales Growth, Expanded Footprint
SALES GROWTH, EXPANDED FOOTPRINT ✓ GROWING ASIA to be INDIVIDUAL LIFE ASSETS UNDER a MORE SIGNIFICANT INSURANCE SALES (5)(6) ADMINISTRATION(5) (C$ millions) (C$ billions) PART of Sun Life’s results 48 2014 HIGHLIGHTS • Sun Life of Canada (Philippines), Inc. was number one for the third 35 consecutiv
Slide 15: Strategy & Key Initiatives
STRATEGY & KEY INITIATIVES Expand • Expand our agency force and improve productivity MULTI- • Grow distribution through alternative channels, in particular CHANNEL bancassurance DISTRIBUTION Expand • Grow new ventures in Vietnam and Malaysia PRODUCTS • Expand accident and health business and MARKETS
Slide 16: Wealth Management
WEALTH MANAGEMENT(1) SALES VALUE OF NEW BUSINESS Q2’14 (LTM) (C$ billions) C$1.1 billion 114.5 113.0 Wealth 100.0 Protection 70.5 44% 56% LTM 2011 2012 2013 Q2’14 FEE INCOME ASSETS UNDER MANAGEMENT (C$ millions) (C$ billions) 3,745 571.1 528.0 3,339 2,632 398.2 2,370 328.8 2013 LTM 2011 2012 2011 20
Slide 17: Reducing Volatility, Optimizing Capital Usage
REDUCING VOLATILITY, OPTIMIZING CAPITAL USAGE • REDUCED Canadian segregated fund sales from $2.1 billion (2009) to $419 million (2013) • REDUCED percentage of Canadian insurance sales from universal life insurance from 48% (2009) to 15% (2013) • DIVESTED U.S. Annuity Business (August 2013) • RESTRUC
Slide 18: Diversified by Geography
DIVERSIFIED BY GEOGRAPHY REVENUE BY BUSINESS SEGMENT (1) (%) Corporate 4% SLF Asia 7% SLF Canada 44% MFS 15% SLF U.S. 30% (1) Based on LTM Q2’14; revenue excludes the fair value change in Fair Value Through Profit and Loss (“FVTPL”) assets. Based on Continuing Operations. 18
Slide 19: Strong Capital and Financial Position
STRONG CAPITAL AND FINANCIAL POSITION MCCSR(1) Ratio – SUN LIFE $1.7 billion cash level at Sun Life Financial Inc. as ASSURANCE COMPANY of June 30, 2014 OF CANADA 219% 222% 209% Financial Strength Rating Sun Life Assurance Q2’14 2013 2012 2011 Company of Canada A.M Best A+ A+ A+ A+ DBRS IC-1 IC-1 IC
Slide 20: Quality Asset Portfolio
QUALITY ASSET PORTFOLIO • Investment portfolio is well diversified Q2’14 INVESTED ASSETS by geography, asset class, industry (C$115 billion) sector or issuer Equities • High quality asset base 5% • Self originated mortgage portfolio is Investment diversified across approximately 2,500 Properties 5%
Slide 21: Disciplined Execution
DISCIPLINED EXECUTION INTENSIFY OUR FOCUS ON GREATER CUSTOMERS DISCIPLINE AROUND HIGH PRODUCTIVITY PERFORMANCE AND EXPENSES CULTURE 21
Slide 22: Sustainable Shareholder Value
SUSTAINABLE SHAREHOLDER VALUE ✓ EXECUTING ON GROWTH ✓ LOWER RISK, HIGHER ROE BUSINESSES ✓ DISCIPLINED CAPITAL DEPLOYMENT ✓ AMBITIOUS & ACHIEVABLE OBJECTIVES 22
Slide 23: Contact
INVESTOR RELATIONS CONTACT PHIL MALEK REKHA SAMPATH Vice President Assistant Vice President phil.malek@sunlife.com rekha.sampath@sunlife.com 416-979-4159 416-979-6010 23
Slide 24: 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 they provide info
Slide 25: Forward-Looking Statements
Forward-Looking Statements Certain statements in this presentation, including (i) statements relating to our strategies, (ii) statements that are predictive in nature, (iii) statements that depend upon or refer to future events or conditions, and (iv) that include words such as "aim", "anticipate",
Slide 26: Material assumptions and risk factors
Material assumptions and risk factors Our 2015 financial objectives are based on the assumptions set out in our 2013 annual MD&A. They are also based on best estimate actuarial assumptions as at December 31, 2012. The Company’s operating ROE is dependent upon its capital levels and options for deplo
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