Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Q2 2017 Earnings Presentation
16 slides from Sun Life Financial's earnings presentation, Aug 10, 2017
Slide 1: 2017 Financial & Operating Results
2017 F I NANCI AL & O PERAT I NG RESULT S For the period ended June 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 August 10, 2017 (collectively, this “presentation”), including, but not limited to, statements that are not historical facts, are forward-looking and are subject
Slide 3: Dean Connor, President and Chief Executive Officer
SUN LIFE FINANCIAL DEAN CONNOR President and Chief Executive Officer
Slide 4: Q2 Financial Highlights
Sun Life Financial Q2 2017 FINANCIAL HIGHLIGHTS Q2 2017 Underlying Income by Business Group • Q2’17 reported net income of $574 million, up 20% from Q2’16, SLF underlying net income(1) of $689 million, up 24% from Q2’16 SLF UK Asia SLF • Insurance and wealth sales up 5% and 12%, respectively, over C
Slide 5: Kevin Strain, Executive Vice President & Chief Financial Officer
SUN LIFE FINANCIAL KEVIN STRAIN Executive Vice President & Chief Financial Officer
Slide 6: Q2'17 Results
Sun Life Financial Q2 2017 Q2’17 RESULTS C$ millions (except EPS and ROE) Q2’17 Q1’17 Q2’16 Reported net income 574 551 480 Underlying net income(1) 689 573 554 Diluted reported EPS (C$) 0.93 0.89 0.78 Diluted underlying EPS(1) (C$) 1.12 0.93 0.90 Reported ROE 11.4% 11.0% 10.3% Underlying ROE(1) 13.
Slide 7: Q2 2017 Business Group Performance
Sun Life Financial Q2 Q2 2017 BUSINESS GROUP PERFORMANCE 2017 REPORTED NET INCOME (C$ millions) • Strong new business gains in Group Retirement Services and 185 185 183 173 Individual Insurance • Business growth and margin improvement in Group Retirement Services 101 77 • Favourable morbidity experi
Slide 8: Sources of Earnings View
Sun Life Financial Q2 SOURCES OF EARNINGS VIEW 2017 • Expected profit: business growth across all four pillars – Sources of earnings SLF Asset Management, SLF Canada, SLF U.S. and SLF Asia Common shareholders Q2’17 Q2’16 C$ millions • New business strain: reflects higher sales in SLF Canada, Expecte
Slide 9: Sales Results
Sun Life Financial Q2 SALES RESULTS 2017 Change over C$ millions Q2’17 Q2’16 Q2’16 Individual life and health 263 260 1% Group life and health 302 278 9% Total Insurance sales 565 538 5% Wealth – SLF Asset Management 29,852 28,182 6% Wealth – Non SLF Asset Management 6,730 4,523 49% Total Wealth sal
Slide 10: Appendix
Sun Life Financial Q2 2017 APPENDIX
Slide 11: Operating Expenses
Sun Life Financial Q2 OPERATING EXPENSES 2017 Figures are in 51 3,165 113 C$ millions (9) (1) 94 105 2,812 Q2 2016 YTD Controllable Impact of Contractual Fair Value Currency Other Q2 2017 YTD Expenses Acquisitions Volumes Adjustments • Increase in controllable expenses of 3.7% reflecting investments
Slide 12: Reconciliation of Underlying Income
Sun Life Financial Q2 RECONCILIATION OF UNDERLYING INCOME 2017 Q2’17 Q2’17 C$ millions Pre-tax After-tax Reported net income 574 Net equity market impact (including basis risk impact of $9 million)(1) 3 5 Net interest impact (including credit spread impact of $(19) million and (149) (92) swap spread
Slide 13: Other Notable Items
Sun Life Financial Q2 OTHER NOTABLE ITEMS 2017 Impact of other items on our net income Q2’17 Q2’17 C$ millions Pre-tax After-tax Experience related items Impact of investment activity on insurance contract liabilities 49 41 Mortality 14 8 Morbidity 28 18 Credit 33 25 Lapse and other policyholder beh
Slide 14: Reported to Underlying Net Income
Sun Life Financial Q2 REPORTED TO UNDERLYING NET INCOME 2017 Reported Par P/H Markets(1) ACMA(1) Other(2) Underlying(3) C$ millions Income (loss) before taxes 619 51 (129) (114) (83) 894 Less: Income tax expense (benefit) (23) 6 (55) (125) (18) 169 Net income attributable to participating policyhold
Slide 15: 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 16: 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