Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Investor Day (2024)
192 slides from Sun Life Financial's investor day presentation, 2024
Slide 1: Total Company Strategic Update: Playing to Win
Total Company Strategic Update Playing to Win
Slide 2: Kevin Strain, President and CEO
KEVIN STRAIN President and Chief Executive Officer 2
Slide 3: Helping Clients achieve lifetime financial security and live healthier lives
• Winning strategy and a superior business mix • Leading asset management and insurance platform with a strong track record of execution Helping Clients achieve and financial performance lifetime financial security • Elevating our focus on four strategic imperatives and live healthier lives • Increa
Slide 4: Winning Strategy
WINNING STRATEGY Our Purpose: Help Clients achieve lifetime financial security and live healthier lives Our Values: Caring, Authentic, Bold, Inspiring, Impactful Four Pillars Client Impact Strategic Imperatives A global leader in both public and Leverage our asset management AM alternative asset cla
Slide 5: Superior Business Mix
SUPERIOR BUSINESS MIX Balanced and diversified business model Capital light and high-growth business model Underlying net income1 Underlying net income1 Underlying net income1 Underlying net income1 by business pillar by business type by geography by capital utilization3 15% 36% 26% 30% 32% 41% 22%
Slide 6: Strong Execution and Financial Performance
STRONG EXECUTION AND FINANCIAL PERFORMANCE Underlying EPS1 Underlying ROE1 Underlying Dividend Payout Ratio1 Target underlying EPS growth per annum: Target underlying ROE: 18%+ Target underlying dividend payout ratio: 8-10% 40-50% +9% $6.36 +620 17.8% 50% 47% CAGR bps 11.6% $2.96 2014 2023 2014 2023
Slide 7: A Leading Asset Management & Insurance Platform
A LEADING ASSET MANAGEMENT & INSURANCE PLATFORM Asset Management & Wealth Insurance & Health Top 25 global asset manager1 Top 11 global life insurer by market cap10 Largest Canadian-based2 asset manager with $1.5T3 AUM4 Canada: #1 individual insurance7 and #1 group benefits provider11 Top 10 U.S. re
Slide 8: Our Path to Win
OUR PATH TO WIN Delivering on our strategic imperatives ASSET MANAGEMENT ASIA HEALTH DIGITAL & WEALTH Leverage our asset Deepen our impact management Accelerate our Operate like a digital along our Client’s capabilities and extend momentum in Asia company health journey our wealth presence 8
Slide 9: Asset Management & Wealth
ASSET MANAGEMENT & WEALTH Be a global leader in both public and alternative asset classes All the right pieces Path to win Together, delivering industry-leading solutions Expand global asset management complex and presence in wealth Grow SLC Management Maintain MFS leadership Premier capabilities to
Slide 10: Asia
ASIA Be a regional leader focused on fast-growing markets Ingredients for growth Path to win Positioning Sun Life for expansion in key markets Accelerate growth and become Sun Life’s fastest growing business Strengthen distribution Accelerate speed to In the right markets and realize value value thr
Slide 11: Health
HEALTH Become a trusted health partner focused on access, affordability, and empowerment Differentiated benefits businesses Path to win Playing a deeper role in health services Reimagine our role in advancing the health of our Clients Expand health services Empower Clients Market leader in benefits
Slide 12: Digital
DIGITAL Be a digital leader by embedding digital throughout the organization Strong digital foundations Path to win Delivering impact, efficiency, innovation & growth Drive impact at scale with digital Embed a digital mindset Modernize tech stack Obsess about Client journeys and Client centricity th
Slide 13: Exceptional Talent and Culture
EXCEPTIONAL TALENT AND CULTURE A high-performing, future-ready and inclusive environment where our people thrive and are empowered to achieve our Purpose Top talent magnet Great Place to Work® Leader in appealing to talent amongst Canadian FIs Certified as a Great Place to Work® in (Ipsos)1 all part
Slide 14: Leading Medium-Term Financial Objectives
LEADING MEDIUM-TERM FINANCIAL OBJECTIVES UNDERLYING EPS1, 2 UNDERLYING DIVIDEND UNDERLYING ROE1,2 GROWTH PER ANNUM PAYOUT RATIO1,2 10% 20% 40-50% Previous target: 8-10% Previous target: 18%+ Unchanged 1 Underlying EPS, underlying ROE and underlying dividend payout ratio are non-IFRS financial measur
Slide 15: Helping Clients achieve lifetime financial security and live healthier lives
• Winning strategy and a superior business mix • Leading asset management and insurance platform with a strong track record of execution Helping Clients achieve and financial performance lifetime financial security • Elevating our focus on four strategic imperatives and live healthier lives • Increa
Slide 16: Our Purpose
OUR PURPOSE Helping Clients achieve lifetime financial security and live healthier lives 16
Slide 17: Appendix
Appendix Sun Life | investor vay 7
Slide 18: 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 19: 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 20: Medium-Term Financial Objectives
Medium-Term Financial Objectives The Company’s Medium-Term Financial Objectives are forward-looking non-IFRS financial measures. Our ability to achieve those objectives is dependent on our success in achieving growth initiatives and business objectives and on certain key assumptions that include: (i
Slide 21: Endnotes
Endnotes Slide 5: 2 Business type mix based on underlying net income, excluding corporate expenses and other. Wealth & asset management includes MFS Investment Management, SLC Management, Canada Individual Wealth, Group Retirement Services, Asia Wealth & asset management. Group Protection / Health i
Slide 22: Total Company Financial Update: Playing to Win
Total Company Financial Update Playing to Win
Slide 23: Tim Deacon, EVP and CFO
TIM DEACON Executive Vice President & Chief Financial Officer 23
Slide 24: Focusing on capital light businesses delivers superior risk adjusted returns
• Winning track record of executing on our Medium-Term Objectives and value creation • Capital light business mix supports strong Focusing on capital capital generation light businesses • Industry leading capital position provides resilience and optionality delivers superior risk • Disciplined expen
Slide 25: Delivered Strong Returns
DELIVERED STRONG RETURNS Underlying EPS1 Underlying ROE1 Dividend per Share Target Underlying EPS growth per annum: Target underlying ROE: 18%+ Target underlying dividend payout ratio: 40-50% 8-10% 42% average underlying dividend payout ratio1 +9% $6.36 +620 bps +8% 17.8% CAGR growth CAGR $3.00 11.6
Slide 26: Delivered Peer-Leading Growth Across Financial Metrics
DELIVERED PEER-LEADING GROWTH ACROSS FINANCIAL METRICS Underlying EPS1, 2 Growth in Underlying ROE1, 2 Underlying Dividend Payout Ratio1, 2 CAGR since 2014 since 2014 10-year average 46.5% 8.9% 42.3% 34.4% 620bps 20bps 5.3% 3.9% (370)bps Sun Life Insurance & Banks Sun Life Insurance & Banks Sun Life
Slide 27: High Quality Earnings
HIGH QUALITY EARNINGS Differential between underlying and reported earnings over last 10-years is modest and/or transitory1 Long-term neutral 2 Primarily due Integration & Increase in fair to interest Restructuring value of MFS rates shares to Will reduce as employees is an integrations and expense
Slide 28: Strong CSM Growth: A Store of Future Value and Earnings
STRONG CSM GROWTH: A STORE OF FUTURE VALUE AND EARNINGS Total CSM ($B) New Business CSM1 ($M) +8% +64% +34% 1,253 1,167 11.8 872 10.9 762 2022 2023 2022 2023 YTD 2023 YTD 2024 Average Canadian Lifeco2 growth Average Canadian Lifeco2 new business CSM growth +7% +0% +24% Organic CSM1,3 Growth New Busi
Slide 29: Unmatched Capital Strength Across Multiple Measures
UNMATCHED CAPITAL STRENGTH ACROSS MULTIPLE MEASURES PROVIDES SIGNIFICANT FLEXIBILITY Q3 2024 LICAT ratios1,2,3 Q3 2024 Financial leverage ratio1,3 Industry leading ratings Industry leading capital Industry leading leverage AM Best: A+ 25.3% 152% 147% 136% 20.4% DBRS: AA Moody’s: Aa3 SLF SLA Canadian
Slide 30: Capital Light Businesses Support High Capital Generation
CAPITAL LIGHT BUSINESSES SUPPORT HIGH CAPITAL GENERATION Underlying net income by business type1,2 15-25% 41% ~45% Canada 10% Asia 14% 27% U.S. IFM 3% 30-40% 32% Wealth & Asset Management Group - Health & Protection 1 1,3 Individual - Protection Income Reinvestment Dividend Generation Organic capita
Slide 31: Strong Capital Generation Supports Deployment Priorities
STRONG CAPITAL GENERATION SUPPORTS DEPLOYMENT PRIORITIES Organic capital generation1 of $1B+ per annum after organic investments and dividends 1. Funding organic 2. Common share 3. M&A and strategic 4. Share buybacks growth dividend increases investments ~$4 billion ~$7.3 billion ~$6.2 billion ~$1 b
Slide 32: Strategically Invested in High Growth Areas
STRATEGICALLY INVESTED IN HIGH GROWTH AREAS Alternative Asset Health Asia Management ~$1.4 billion invested, with further ~$0.9 billion invested, with a further amounts committed to buy-ups1 ~$3.9 billion invested ~$0.5 billion committed to Indonesia1 1 These statements are forward-looking statement
Slide 33: Disciplined and Prudent Approach to M&A
DISCIPLINED AND PRUDENT APPROACH TO M&A After funding organic growth and dividends, we evaluate inorganic deployment opportunities on both strategic and financial merit Strategic – strategically complements our existing businesses with potential to meaningfully and sustainably improve competitive po
Slide 34: Growth in Capital Light Businesses Unlocks Significant Value Creation
GROWTH IN CAPITAL LIGHT BUSINESSES UNLOCKS SIGNIFICANT VALUE CREATION1 Where we have added Peer average multiples 33.1x Peer leading multiples 20.6x 16.5x 13.3x 10.1x 18.6x 12.0x 10.6x 12.7x 8.2x US Insurers 10 largest Asia Insurers U.S. Asset Canadian Financial Institutions Healthcare Management We
Slide 35: Financial Discipline Through Effective Cost Management
FINANCIAL DISCIPLINE THROUGH EFFECTIVE COST MANAGEMENT 1 Efficiency contribution from restructuring program Additional opportunities for increased efficiency Operating Real estate & Operating and Automation Continued model procurement productivity digitization of efficiencies operations 57% 24% 19%
Slide 36: Winning Objectives
WINNING OBJECTIVES A path to achieving execution excellence Underlying Net Income1,2 growth target by business group SLC MFS Asia U.S. Canada 20%+ 5%+ 15%+ 12%+ 6%+ 1 Represents a non-IFRS financial measure. Refer to the non-IFRS Financial Measures section in the appendix to these slides. 2 These gr
Slide 37: Winning Objectives: Underlying ROE targets by pillar
WINNING OBJECTIVES Underlying ROE targets by pillar1,2 30bps 20% 40bps 60bps 70bps 18% 1 Represents a non-IFRS financial measure. Refer to the non-IFRS Financial Measures section in the appendix to these slides. 2 These growth targets are forward-looking within the meaning of applicable securities l
Slide 38: Increasing Our Medium-Term Financial Objectives
INCREASING OUR MEDIUM-TERM FINANCIAL OBJECTIVES UNDERLYING EPS GROWTH UNDERLYING DIVIDEND UNDERLYING ROE 1,2 PER ANNUM 1,2 PAYOUT RATIO 1,2 10% 20% 40-50% Previous target: 8-10% Previous target: 18%+ Unchanged 1 Underlying EPS, underlying ROE and underlying dividend payout ratio are non-IFRS financi
Slide 39: Focusing on capital light businesses delivers superior risk adjusted returns
• Winning track record of executing on our Medium-Term Objectives and value creation • Capital light business mix supports strong Focusing on capital capital generation light businesses • Industry leading capital position provides resilience and optionality delivers superior risk • Disciplined expen
Slide 40: Appendix
Appendix Sun Life | investor vay 40
Slide 41: 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 42: 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 43: Medium-Term Financial Objectives
Medium-Term Financial Objectives The Company’s Medium-Term Financial Objectives are forward-looking non-IFRS financial measures. Our ability to achieve those objectives is dependent on our success in achieving growth initiatives and business objectives and on certain key assumptions that include: (i
Slide 44: Endnotes
Endnotes Slide 26: 2 ROE, EPS, and Dividend Payout Ratio are on an adjusted basis for Sun Life and peers. Insurance & Asset Management Peers: Great-West Life, Industrial Alliance Insurance and Financial Services, Lincoln National, Manulife Financial, MetLife, Principal Financial Group, Prudential Fi
Slide 45: Digital Leadership & Client Impact: Playing to Win
Digital Leadership & Client Impact Playing to Win
Slide 46: Laura Money, EVP and Chief Information and Technology Innovation Officer
LAURA MONEY Executive Vice-President & Chief Information and Technology Innovation Officer 46
Slide 47: Meaningful Client impact, efficiency, innovation & growth through Digital Leadership
• Exhibiting a strong track record of Digital Leadership in the financial services industry Meaningful Client • Continuing to invest in a modern tech stack that powers the end-to-end Client impact, efficiency, experience innovation & growth • Embedding a digital mindset and Client- centricity throug
Slide 48: Digital
DIGITAL Be a digital leader by embedding digital throughout the organization Strong digital foundations Path to win Delivering impact, efficiency, innovation & growth Drive impact at scale with digital Embed a digital mindset Modern tech stack Obsess about Client journeys and Client centricity throu
Slide 49: Embed a Digital Mindset and Client Centricity
EMBED A DIGITAL MINDSET AND CLIENT CENTRICITY Our winning track record 4k+ 4/5 +85% employees delivering of employees believe Sun Life five-year increase in the digital capabilities, working creates a safe space to experiment percentage of employees who across ~500 agile squads1 with new ways of wor
Slide 50: Embed a Digital Mindset and Client Centricity: Examples of Impact
EMBED A DIGITAL MINDSET AND CLIENT CENTRICITY Examples of impact we’re driving on our path to win Client-first and data-driven leads in Matching prospective Clients and Canada Advisors in Asia Higher quality leads driving better Reduced callback time to under 3 minutes in experiences and outcomes Vi
Slide 51: Deploying comprehensive data capabilities
We are deploying comprehensive data 360 Client journey capabilities that support Data quality Sun Life employees and Advisors to make data- Data accessibility driven decisions and Data culture & literacy enable our Client journeys 51
Slide 52: Modern Tech Stack to Power Client Experiences
MODERN TECH STACK TO POWER CLIENT EXPERIENCES Our winning track record 56% 91% 99.6% of all applications migrated to the of new solutions using APIs or availability for Client-facing cloud; on track for 77% by 20261, 2 real-time-driven integrations1 applications1 2 This statement is a forward-lookin
Slide 53: Modern Tech Stack: Examples of Impact
MODERN TECH STACK TO POWER CLIENT EXPERIENCES Examples of impact we’re driving on our path to win Benefits ecosystem Client experience Industry-leading APIs in the U.S. Seamless integration and value-add product offerings Making it easy to do business with us $300M+ annualized premium for Clients wi
Slide 54: Harness Client Insights for Solutions That Matter
HARNESS CLIENT INSIGHTS FOR SOLUTIONS THAT MATTER Our winning track record 50+ continuous Client listening programs to understand our Clients’ needs 6 insights communities to gather real- time ongoing feedback from Clients, Advisors and Brokers 54
Slide 55: Harness Client Insights: Examples of Impact
HARNESS CLIENT INSIGHTS FOR SOLUTIONS THAT MATTER Examples of impact we’re driving on our path to win OneSun Financial Planning Sun Life MyRetirement Income Insight Solution Insight Solution 80% of Canadians feel more Cutting-edge, goals-based 40% of Canadians are First-of-its-kind, fully confident
Slide 56: Lead in GenAI for Productivity & Client Impact
LEAD IN GenAI FOR PRODUCTIVITY & CLIENT IMPACT Our winning track record Horizon 3 10 50+ Impacts to health and wealth GenAI deployments GenAI solutions in our being used by development pipeline 1000s of employees Horizon 2 Capabilities, leads 6k+ 35k and data Horizon 1 employees trained employees wi
Slide 57: Lead in GenAI: Examples of Impact
LEAD IN GenAI FOR PRODUCTIVITY & CLIENT IMPACT Examples of impact we’re driving on our path to win Global Client Contact Centre Medical Record Summarization New Advisor Coaching in Asia Productivity in U.S. & Canada Enables transformative Client 30% Launching this week, with a planned experiences, n
Slide 58: Humans + AI together
Humans + AI together For even greater Client impact 58
Slide 59: Lead in GenAI: Our Template for Success
LEAD IN GenAI FOR PRODUCTIVITY & CLIENT IMPACT Our template for success Scaled adoption Change management Guardrails Partnership Humans in the loop Target high-value Training, tools, materials, Leverage existing Speedy ramp up and Maximize efficacy of business and Client and events that help governa
Slide 60: Setting Winning Objectives
SETTING WINNING OBJECTIVES CLIENT IMPACT1 EFFICIENCY1 INNOVATION & GROWTH1 #1 95% 50 Client satisfaction score2 in Canada and straight-through processing in Canada by 2028, new GenAI capabilities in 2025 Philippines by 2028 scaled to other markets Top 3 1M 5% Group Benefits Clients reaching us via C
Slide 61: Meaningful Client impact, efficiency, innovation & growth through Digital Leadership
• Exhibiting a strong track record of Digital Leadership in the financial services industry Meaningful Client • Continuing to invest in a modern tech stack that powers the end-to-end Client impact, efficiency, experience innovation & growth • Embedding a digital mindset and Client- centricity throug
Slide 62: Appendix
Appendix Sun Life | investor vay 62
Slide 63: 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 64: 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 65: Endnotes
Endnotes Slide 49: 1 As of September 2024. 2 As of March 2024. Slide 52: 1 As of September 2024. Slide 53: 1 As of September 2024. Slide 55: 1 Sun Life Client Experience Monitor Survey 2022. 2 Sun Life Client Experience Measurement Program — Individual Clients only. 3 Majority of Canadians lack a fi
Slide 66: MFS: Playing to Win
MFS Playing to Win
Slide 67: Mike Roberge and Ted Maloney
MIKE ROBERGE Chief Executive Officer Executive Chairman, MFS TED MALONEY Incoming Chief Executive Officer, MFS 67
Slide 68: Positioned for strong and consistent earnings through active asset management
Positioned for strong • The market for active investment management will remain attractive and consistent • MFS has delivered consistent growth earnings through our • MFS is well-positioned for sustained growth focus on providing world class active • MFS will maintain top quartile earnings margin as
Slide 69: MFS Business Overview
MFS BUSINESS OVERVIEW DIVERSIFIED CLIENT AND ASSET BASE Other Americas < 1% ASSETS (US$) Asia-Pacific 6% U.S. equities 295 billion US$645B EMEA 6% Firmwide U.S. Assets Under Management1 Non-U.S. equities 246 billion Clients Canada 5% by region 82% Fixed income 80 billion Multi-strategy/other 25 bill
Slide 70: MFS Net Income and AUM Growth
MFS NET INCOME AND AUM GROWTH U.S. GAAP Net Income AUM1 (US$M) (US$B) +4% +4% CAGR 833 CAGR 599 609 431 2014 2023 2014 2023 1 Represents a non-IFRS financial measure. Refer to the non-IFRS Financial Measures section in the appendix to these slides. 70
Slide 71: MFS has delivered consistent growth
MFS has delivered consistent growth 71
Slide 72: Consistent Source of Dividends for Sun Life
CONSISTENT SOURCE OF DIVIDENDS FOR SUN LIFE Dividends (US$M) $861 $727 $680 $687 $611 $532 $426 $452 $414 $387 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 US$5.8B in dividends were paid in the 10-year period ending December 2023 72
Slide 73: MFS Has Increased Its Market Share of Active Only Long-Term Funds
MFS HAS INCREASED ITS MARKET SHARE OF ACTIVE ONLY LONG-TERM FUNDS1 Other 9% Municipal 4% Total Return 4% Value 32% High Grade 5% Retail AUM by style2,3 Core 14% Growth 32% Distribution: MFS is the 9th largest U.S. retail asset manager4, partnering with leading intermediaries Leading retail financial
Slide 74: Long-Term Disciplined Investment Process Helps Clients Achieve Their Financial Goals
LONG-TERM DISCIPLINED INVESTMENT PROCESS HELPS CLIENTS TO ACHIEVE THEIR FINANCIAL GOALS MFS beats passive benchmarks (5 largest strategies, representing almost half of MFS total assets): Avg. excess % of periods Composite Benchmark returns1 outperforming MFS Large Cap Value Equity Russell 1000® Valu
Slide 75: Over US$70T in Global Active Management and Significant Capital on the Sidelines
OVER US$70T1 IN GLOBAL ACTIVE MANAGEMENT AND SIGNIFICANT CAPITAL ON THE SIDELINES Global AUM (US$T) +6% CAGR +12% There is a record US$6.3T2 of assets in U.S. money markets, waiting on the “sidelines” Tight monetary policies and general market uncertainty prompted investors to move into products wit
Slide 76: Fewer Providers Competing for Capital – MFS Can Gain Market Share
FEWER PROVIDERS COMPETING FOR CAPITAL – MFS CAN GAIN MARKET SHARE All Others In the U.S. Mutual Fund marketplace, 70% of AUM is concentrated within the top US$20T 10 asset managers (up from 57% in 2010)1 Top 10 Refer to the endnotes in the appendix. 76
Slide 77: Our Path to Win
OUR PATH TO WIN Purpose Clients Strategy Scale fixed income by investing in operational capabilities to We exist to create Align with Clients’ needs onboard and manage complex value responsibly and help investors achieve institutional fixed income assets financial goals Grow our defined contribution
Slide 78: MFS Has a Strong Fixed Income Infrastructure
MFS HAS A STRONG FIXED INCOME INFRASTRUCTURE, WITH SIGNIFICANT CAPACITY TO GROW Fixed income Morningstar assets in top half 1 Multi-sector portfolio management 10Y 5Y 3Y 1Y • Global • North America 98% 86% 59% 96% Sector portfolio management Fixed income: AUM2 • Credit • EMD • Municipals (US$B) • Hi
Slide 79: Planned Launch of Active ETFs
PLANNED LAUNCH OF 5 ACTIVE ETFS WILL MEET GROWING DEMAND FOR TAX EFFICIENT PRODUCTS Mutual fund Stock characteristics characteristics Diversification ETFs Continuous pricing Professional Trading flexibility management Low execution costs Key benefits of ETFs Trading flexibility Tax efficiency Manage
Slide 80: Defined Contribution Strategy
DEFINED CONTRIBUTION STRATEGY DCIO Assets1 (US$B) Total +15.3% MFS DCIO total assets: US$144B2 Top 15 +18.7% $6,070 In the DCIO asset space, the Top 15 asset managers, Top 15 managers including MFS, are gaining market share at the $5,114 expense of smaller firms – the “big get bigger” (including MFS
Slide 81: Setting Winning Objectives
SETTING WINNING OBJECTIVES UNDERLYING NET OPERATING DIVIDEND TO INCOME1,2 GROWTH MARGIN1,2,3 SUN LIFE2 PER ANNUM Maintain position of 5%+ Top quartile 90% of asset manager in terms of net income1 margin 1 Represents a non-IFRS financial measure. Refer to the non-IFRS Financial Measures section in th
Slide 82: Positioned for strong and consistent earnings through active asset management
Positioned for strong • The market for active investment management will remain attractive and consistent • MFS has delivered consistent growth earnings through our • MFS is well-positioned for sustained growth focus on providing world class active • MFS will maintain top quartile earnings margin as
Slide 83: Appendix
Appendix Sun Life | investor vay 83
Slide 84: 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 85: 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 86: Endnotes
Endnotes Slide 69: 2 US and Non-US Mutual Funds, Retail separately managed accounts and Variable insurance trusts comprise “Retail” while Commingled products and Separate & sub-advised accounts comprise “Institutional” as disclosed in the Sun Life Supplement. 3 Strategic Insight as of September 30,
Slide 87: SLC Management: Playing to Win
SLC Management Playing to Win
Slide 88: Steve Peacher and Sonny Kalsi
STEVE PEACHER Executive Chair, SLC Management SONNY KALSI President and CEO, SLC Management 88
Slide 89: Becoming an at-scale, global alternatives asset manager
• Platform with capabilities comparable to top alternative asset managers • Deep bench of talent and aligned interests with management teams Becoming an at- scale, global • Large and growing markets with strong tailwinds alternatives • Well-positioned to capitalize on the retail asset manager High N
Slide 90: Established a Strong & Growing Alternatives Platform
ESTABLISHED A STRONG & GROWING ALTERNATIVES PLATFORM Vision & capital Build the platform and establish trust and credibility Power of the platform 2014 / 2015 2018 2019 2020 2021 2023 2024 Launched 3rd party Formed SLC Acquired Acquired InfraRed Acquired Crescent Acquired Advisors Announced Sonny as
Slide 91: SLC Is a Global, Diversified Alternatives Asset Manager
SLC IS A GLOBAL, DIVERSIFIED ALTERNATIVES ASSET MANAGER Profile1 Global footprint Founded 2013 AUM2,3 $387B Employees4 1,900+ Investment professionals 760+ Countries 29 Number of offices 65 Clients 1,400+ 2 Represents a non-IFRS financial measure. Refer to the non-IFRS Financial Measures section in
Slide 92: SLC Is a Global, Diversified Alternatives Asset Manager
SLC IS A GLOBAL, DIVERSIFIED ALTERNATIVES ASSET MANAGER Investment grade credit Alternative credit Real estate Infrastructure Distribution AUM1,2,3 AUM1,2 AUM1,2 AUM1,2 Assets Third-party $66B Third-party $56B Third-party $88B Third-party $17B AUM1,2 $3B SL General $129B SL General $2B SL General $2
Slide 93: Delivered Strong Growth Across Key Metrics
DELIVERED STRONG GROWTH ACROSS KEY METRICS Annual Fundraising1,2 3rd Party AUM1,3 Fee-Related Earnings (FRE)1 ($B) ($B) ($M) +13% +28% +57% CAGR CAGR CAGR 290 223 13 7 66 30 2018 2023 2018 2023 2018 2023 1 Represents a non-IFRS financial measure. Refer to the non-IFRS Financial Measures section in t
Slide 94: Playing in Growing Spaces with Strong Secular Tailwinds
PLAYING IN GROWING SPACES WITH STRONG SECULAR TAILWINDS Key secular tailwinds Rate environment Central banks cutting interest rates, which in general is beneficial to risk assets Broader real estate market valuations, excluding office, is close to bottoming, and Real estate1 institutional investors
Slide 95: Playing in Growing Spaces with Strong Secular Tailwinds
PLAYING IN GROWING SPACES WITH STRONG SECULAR TAILWINDS Expected industry growth in alternative Expected retail AUM growth in alternatives1 asset classes that SLC invests in1 (US$T) (US$T) +10% 31 +13% CAGR +10-12% CAGR 13 +8% 11 +13-15% 4 2023 2033F 2022 2032F Private credit Real estate Infrastruct
Slide 96: Well-Positioned for the Retail Alternatives Market
WELL-POSITONED FOR THE RETAIL ALTERNATIVES MARKET U.S. (through AAM) Turnkey distribution for U.S. retail Multi-channel, national Large, dedicated Strong financial advisor Sophisticated education Broad product suite1 coverage1 distribution team1 relationships1 & training • 4 wirehouses • 100+ wholes
Slide 97: Well-Positioned for the Retail Alternatives Market: Canada
WELL-POSITONED FOR THE RETAIL ALTERNATIVES MARKET Canada (through Scotiabank partnership) #3 largest bank in Canada2 Strategic partnership agreement with Scotiabank for Scotia HNW Clients in Canada Retail HNW market penetration1 Significant opportunity Canada <1% given under-penetrated U.S. ~4% mark
Slide 98: Sonny Kalsi, President and CEO, SLC Management
SONNY KALSI President and CEO, SLC Management 98
Slide 99: Our Capabilities Stack Up Against the World's Pre-Eminent Alternative Asset Managers
OUR CAPABILITIES STACK UP AGAINST THE WORLD’S PRE-EMINENT ALTERNATIVE ASSET MANAGERS Capabilities $286B AUM1,2 $1,108B AUM $1,032B AUM $733B AUM $464B AUM $235B AUM Public fixed income Private credit Real estate debt Direct real estate Infrastructure Energy transition, natural resources Solutions Pr
Slide 100: Leverage Power of the Platform
LEVERAGE POWER OF THE PLATFORM Align incentives Access flexible Institutional Access retail Capability to retain sources of distribution HNW market extensions top talent funding Ensuring Expand Client Broad distribution Pursuing more Incremental collaboration coverage and through AAM in the strategi
Slide 101: Strong Market-Leading Objectives
STRONG MARKET-LEADING OBJECTIVES 3RD PARTY ALTERNATIVES FRE1,2 AND UNDERLYING AUM1,2 GROWTH FRE MARGIN1,2,3 NET INCOME1,2 GROWTH PER ANNUM PER ANNUM 15%+ 35%+ 20%+ 1 Represents a non-IFRS financial measure. Refer to the non-IFRS Financial Measures section in the appendix to these slides. 2 These tar
Slide 102: Becoming an at-scale, global alternatives asset manager
• Platform with capabilities comparable to top alternative asset managers • Deep bench of talent and aligned interests with management teams Becoming an at- scale, global • Large and growing markets with strong tailwinds alternatives • Well-positioned to capitalize on the retail asset manager High N
Slide 103: Appendix
Appendix Sun Life | investor vay 103
Slide 104: BGO Summary
BGO SUMMARY Diversified asset and investor base Breadth of investment strategies AUM AUM By asset type1 By investor domicile1 Global equity Real estate Debt platform Development platform Services 2% • Knowledge and • A market leader • Offers extensive • Vertically experience of in providing real exp
Slide 105: Crescent Summary
CRESCENT SUMMARY Diversified asset and investor base Differentiated credit platform AUM AUM Private credit Tradeable credit By asset type1 By investor domicile1 5% Direct lending Multi-asset class Multi-asset class Asset class strategies portfolios portfolios 7% Crescent Credit Capital Trust – Bank
Slide 106: InfraRed Summary
INFRARED SUMMARY Diversified asset and investor base Breadth of investment strategies AUM AUM By asset type1 By investor domicile1 North America Global value-add Global income focus renewables 10% Brownfield / income Brownfield / Income 29% Greenfield value add generating generating 12% Exit driven
Slide 107: Advisors Asset Management (AAM) Summary
ADVISORS ASSET MANAGEMENT (AAM) SUMMARY Broad access to retail wealth channels Broad and deep distribution platform built to meet the needs of wealth partners PRODUCT SALES By channel1 Wholesale platform Capital markets platform UITs & 3rd party distribution (50 wholesalers & specialist (45 sales FT
Slide 108: SLC Fixed Income Summary
SLC FIXED INCOME SUMMARY Diversified asset and investor base Breadth of investment strategies AUM AUM By asset type1 By investor domicile1 Public fixed income Private fixed income Range of investment grade strategies 10% in the public bond markets including Investment grade private fixed strategies
Slide 109: Investment Performance – Real Assets Strategies
INVESTMENT PERFORMANCE – REAL ASSETS STRATEGIES Gross IRR since Inception for each fund1 58.0% 55 44.0% 45 39.0% 35 24.0% 26.3% 25 22.0% 19.0% 17.0% 15.0% 15 12.0% 12.0% 9.0% 8.0% 7.1% 5 -5 -15 -13.0% Japan I Asia II Asia III US I US II US III US IV Europe I Europe II Europe III Europe Europe Infra
Slide 110: Investment Performance – Debt Strategies
INVESTMENT PERFORMANCE – DEBT STRATEGIES Gross IRR since Inception for each fund1 12.2% 12.6% 11.8% 11.8% 11.3% 11.2% 10.7% 10.2% 9.8% 9.5% 8.9% 7.8% 7.5% VA - UK VA - UK VA - VA - Eur VA - Eur VA - HY - Junior - Junior - Senior Senior Eur Eur Sec Lend I lending II UK Sec Sec Lend I Sec Lend II Eur
Slide 111: Investment Performance – Investment Grade Fixed Income
INVESTMENT PERFORMANCE – INVESTMENT GRADE FIXED INCOME Excess returns – U.S. funds1 Excess returns – Canada funds1 1 Year 3 Year 5 Year 1 Year 3 Year 5 Year Quartile rankings2 Quartile rankings2 1.6% 1 1.7% 2 U.S. core 0.5% 2 Core Plus Bond 0.9% 2 0.7% 1.0% 3 2 0.4% 0.9% 1 2 Long Corporate 0.3% Long
Slide 112: 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 113: 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 114: Endnotes
Endnotes Slide 90: 2 Does not include the General Account. SLC total AUM including the General Account was $387B as at September 30, 2024. 3 This does not include the $15B of assets under administration, largely distributed by Advisors Asset Management (“AAM”) Inc. Slide 91: 1 All figures are as of
Slide 115: Canada: Playing to Win
Canada Playing to Win
Slide 116: Jacques Goulet, Executive Chair, Sun Life Canada
JACQUES GOULET Executive Chair, Sun Life Canada 116
Slide 117: Leader in health, wealth and asset management, and protection in Canada
• Proven track record of sustained growth supports thesis that Canada is a growth market • Our strategic priorities to sustain market leadership: (1) Strengthen and expand health, (2) Accelerate wealth and asset management, (3) Evolve distribution Leader in health, wealth • Personalized OneSun exper
Slide 118: Sun Life Canada Overview
SUN LIFE CANADA OVERVIEW Our Purpose: Help Canadians achieve lifetime financial security and live healthier lives Leader in health, wealth and asset management, and protection in Canada Strategic assets • Connections to Canadians through our leading group businesses 40% 30% 30% • Innovative offering
Slide 119: Proven Track Record of Sustained Growth Supports Canada as a Growth Market
PROVEN TRACK RECORD OF SUSTAINED GROWTH SUPPORTS THESIS THAT CANADA IS A GROWTH MARKET FOR SUN LIFE Underlying Net Income1 Underlying Return on Equity1 ($M) 6% CAGR 1,376 21.4% 1,012 823 14.4% 11.2% 2014 2019 2023 2014 2019 2023 Industry leading results 1 Represents a non-IFRS financial measure. Ref
Slide 120: Sun Life Is Well-Positioned to Support Growing Needs of Canadians
SUN LIFE IS WELL-POSITIONED TO SUPPORT GROWING NEEDS OF CANADIANS Wealth Health and asset Protection management Increasingly strained Aging population and Persistent protection gap healthcare ecosystem preparing for retirement among Canadians 1 in 5 1 in 5 40%+ Canadians do not have a Canadians are
Slide 121: Path to Win: Driving Growth by Serving More of Our Clients' Needs
PATH TO WIN: DRIVING GROWTH BY SERVING MORE OF OUR CLIENTS’ NEEDS Wealth Health and asset Protection management Supporting Client needs to deepen and broaden their relationship with Sun Life OneSun Digital Distribution 121
Slide 122: Strengthening and Expanding Our Health Business
STRENGTHENING AND EXPANDING OUR HEALTH BUSINESS Strengthen our leadership Diversify through Create an integrated digital in group benefits health adjacencies health and benefits experience Strengthening value for Sponsors Respiratory Care Program Innovative heath solutions Canadian Dental Care Plan
Slide 123: Accelerating Wealth and Asset Management
ACCELERATING WEALTH AND ASSET MANAGEMENT Driving growth across our continuum Deepening Client relationships Expanding presence Pension risk transfer Group retirement Rollover Insurance Clients Retail wealth Leading and innovative 15%+ Sun Life annual 10%+ Sun Life annual Becoming a primary Leveragin
Slide 124: Innovating Our Protection Business
INNOVATING OUR PROTECTION BUSINESS Surfacing protection needs throughout our Clients’ lifetime and providing solutions at the right moment while driving a diversified product mix to strengthen our portfolio Diabetes term insurance Evolve term insurance Family protection bundle + Diabetes care progra
Slide 125: Evolve Distribution
EVOLVE DISTRIBUTION Serving, advising, and delivering for Canadians in their channel of choice based on needs and preferences Group Retirement Rollover Sun Life Face-to-Face Advisors Third Party Advisors Group Benefits Digital Health Prospr by Sun Life Worksite Retail 125
Slide 126: Personalized OneSun Experience Enables Us to Serve More Client Needs
PERSONALIZED ONESUN EXPERIENCE ENABLES US TO SERVE MORE OF OUR CLIENTS’ NEEDS AND MAXIMIZE THE VALUE OF EVERY CLIENT RELATIONSHIP Personalized financial roadmaps … and improve Client satisfaction help us serve more Client needs … Clients with 2+ solutions1 Client satisfaction (CSAT)2 2.3x 1.5x 70% 7
Slide 127: Unlocking Value Through Digital
UNLOCKING VALUE THROUGH DIGITAL A few examples: Virtual primary and mental health platform digitally serving 3.2M Members and their families; ~4k daily interactions Retail virtual pharmacy platform empowering Canadians to manage their medications and health (e.g., diabetes, respiratory health) Using
Slide 128: Jessica Tan, President, Sun Life Canada
JESSICA TAN President, Sun Life Canada 128
Slide 129: Drive Earnings Growth
DRIVE EARNINGS GROWTH Strong execution on our strategic priorities, sustained financial discipline and focused investments will continue to drive earnings growth1 UNDERLYING NET INCOME1,2 GROWTH PER ANNUM 6%+ 1 These targets are forward-looking within the meaning of applicable securities laws. For m
Slide 130: Leader in health, wealth and asset management, and protection in Canada
• Proven track record of sustained growth supports thesis that Canada is a growth market • Our strategic priorities to sustain market leadership: (1) Strengthen and expand health, (2) Accelerate wealth and asset management, (3) Evolve distribution Leader in health, wealth • Personalized OneSun exper
Slide 131: Appendix
Appendix Sun Life | investor vay 131
Slide 132: 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 133: 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 134: Endnotes
Endnotes Slide 118: 2 Figure as at September 30, 2024. Slide 120: 1 Canadian Medical Association Journal. 2 Bank of Canada – Economic Progress report. 3 Deloitte – Confronting the growing retirement gap. 4 LIMRA 2023 Canadian Insurance Barometer Study. Slide 123: 1 Inception in 2008. 2 Inception in
Slide 135: U.S.: Playing to Win
U.S. Playing to Win
Slide 136: Dan Fishbein, M.D., President, Sun Life U.S.
DAN FISHBEIN, M.D. President, Sun Life U.S. 136
Slide 137: A leader in Health and Benefits
• Sun Life U.S. is winning in the market while exceeding our medium-term financial targets • We are in businesses where we can differentiate, win, and have leadership positions • Capital-light and faster growing U.S. Health A leader in Health businesses attract higher earnings multiples, and health
Slide 138: Sun Life U.S. Has Evolved
SUN LIFE U.S. HAS EVOLVED 2012 2012 - 2016 2017 -2024 Primarily Small, High Today, we have over US$8B individual life traditional performing in annual revenue1, with and annuities Group Group more than 85% from business business business focused on health-related businesses healthcare 1 Revenue = Ne
Slide 139: We Are Winning and Exceeding Our Objectives
WE ARE WINNING AND EXCEEDING OUR OBJECTIVES Sun Life U.S. Sun Life U.S. Sun Life U.S. Revenue1,2 Underlying Net Income1 Underlying ROE1 (US$B) (US$M) 8.1 14.2% 663 +13% +19% +740bps CAGR CAGR 6.8% 2.8 135 2014 2023 2014 2023 2014 2023 1 Represents a non-IFRS financial measure. Refer to the non-IFRS
Slide 140: We Have Leading Competitive Positions
WE HAVE LEADING COMPETITIVE POSITIONS Dental Health & Risk Solutions Employee Benefits In-force Management US$3.2B 2023 Revenues1 US$2.6B 2023 Revenues1 US$2.3B 2023 Revenues1 US$15.9B 2023 AUM6 ~35M Members2 ~8M Members2 ~9M Members2 ~200,000 Members2 Largest dental benefits Largest independent Top
Slide 141: The Health & Benefits Market Is Enormous at US$4.8T
THE HEALTH & BENEFITS MARKET IS ENORMOUS AT US$4.8T1 We are competing in areas where we can be a leader Health and Employee Dental Risk Solutions Benefits US$107B2 ~US$39B3 US$42B4 Dental Benefits Stop-loss Disability Insurance & & & Care Delivery Care Navigation Supplemental Health / Vision 141 Ref
Slide 142: Health Is at the Core of Our Strategy
HEALTH IS AT THE CORE OF OUR STRATEGY Access to care will Healthcare We are helping Our focus on health is continue to be difficult costs are rising Clients access the driving growth in due to provider healthcare and higher shortages and an coverage they need, return and lower- aging population with
Slide 143: The Dental Market Is Very Large with High Returns and Strong Growth Opportunities
Dental THE DENTAL MARKET IS VERY LARGE WITH HIGH RETURNS AND STRONG GROWTH OPPORTUNITIES Commercial plans Government plans Group Individual Medicaid / CHIP Medicare Other Total Advantage Employer Individual and Low-income Individuals >65 years Dept. of Defense plans covering public individuals and o
Slide 144: We Are the Largest Benefits Provider with Strong Competitive Advantages
Dental WE ARE THE LARGEST BENEFITS PROVIDER1 WITH STRONG COMPETITIVE ADVANTAGES Medicaid / CHIP Commercial Medicare Advantage Advantage Dental+ • Largest provider of • Combined capabilities • Strong health plan • ~80 dental practices Medicaid dental benefits driving growth relationships and dental p
Slide 145: Setting Winning Objectives for Dental
Dental SETTING WINNING OBJECTIVES FOR DENTAL AFTER-TAX TIMEFRAME2 REVENUE1,2,3 MARGIN1,2 5% US$5B ~5 Years 1 Represents a non-IFRS financial measure. Refer to the non-IFRS Financial Measures section in the appendix to these slides. 2 These statements are forward-looking statements within the meaning
Slide 146: Dental Future Earnings Power
Dental DENTAL FUTURE EARNINGS POWER1 Sun Life U.S. Dental Underlying Net Income2 US$250M Short-term drivers: • ~75% from margin improvement driven by repricing, dental cost management, and expense focus • ~25% from growth driven by new Client wins Medium-term drivers: US$100M • ~75% from growth driv
Slide 147: We Are a Leader in the Large and Growing Stop-Loss Market
Health and Risk Solutions WE ARE A LEADER IN THE LARGE AND GROWING STOP-LOSS MARKET Effective risk management and 50%+ pricing discipline set us apart (Stop-loss loss ratios) 3 US$35.5B of Americans get their 90 2023 Stop-loss market healthcare benefits through 85 premiums3 their employer1 80 75 65%
Slide 148: Our Focus on Health Access and Outcomes Differentiates Us
Health and Risk Solutions OUR FOCUS ON HEALTH ACCESS AND OUTCOMES DIFFERENTIATES US Sun Life Health Navigator Sun Life Clinical 360 Care Navigation Cost and care review Our care navigation services featuring Our industry-leading clinical review PinnacleCare help members get the right care program id
Slide 149: Attractive Market Where We Help Clients Access Care and Coverage
Employee Benefits ATTRACTIVE MARKET WHERE WE HELP CLIENTS ACCESS THE CARE AND COVERAGE THEY NEED1 Supplemental Health Critical Illness Hospital and Cancer Indemnity Group Short- Absence Group Term and Long-term Management Life Insurance Disability Vision Accident Market US$27.5B US$27.7B US$14.8B Si
Slide 150: Our Digital and Health-Based Solutions Differentiate Us
Employee Benefits OUR DIGITAL AND HEALTH-BASED SOLUTIONS DIFFERENTIATE US Wellness Resources Clinical model We offer virtual behavioral health services and integrative We help members get back to work through a virtual whole-person care and coaching for members collection of best practices and clini
Slide 151: Provides Strong, Stable Underlying Earnings Contributions and Diversification
In-force Management PROVIDES STRONG, STABLE UNDERLYING EARNINGS CONTRIBUTIONS AND DIVERSIFICATION IFM has become a center of We are driving expense efficiencies We are leveraging the asset excellence, managing multiple and capital and reinsurance management capabilities of SLC to closed blocks of Su
Slide 152: Setting Winning Objectives
SETTING WINNING OBJECTIVES Our health-focused businesses are capital light and have strong earnings growth, supporting robust medium-term targets UNDERLYING NET INCOME1,2 UNDERLYING ROE1,2 GROWTH PER ANNUM 12%+ 18%+ 1 These targets are forward-looking within the meaning of applicable securities laws
Slide 153: A leader in Health and Benefits
• Sun Life U.S. is winning in the market while exceeding our medium-term financial targets • We are in businesses where we can differentiate, win, and have leadership positions • Capital-light and faster growing U.S. Health A leader in Health businesses attract higher earnings multiples, and health
Slide 154: Appendix
Appendix Sun Life | investor vay 154
Slide 155: 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 156: 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 157: Endnotes
Endnotes Slide 139: 2 Revenue = Net Premiums + Fee Income. Net premiums represent a non-IFRS financial measure. Refer to the non-IFRS Financial Measures section in the appendix to these slides and in our Supplementary Financial Information package for the period ended December 31, 2023. Slide 140: 2
Slide 158: Endnotes continued
Endnotes continued Slide 145: 3 Revenue = Net Premiums + Fee Income. Net premiums represent a non-IFRS financial measure. Refer to the non-IFRS Financial Measures section in the appendix to these slides and in our Supplementary Financial Information for the period ended December 31, 2023. Slide 147:
Slide 159: Asia: Playing to Win
Asia Playing to Win
Slide 160: Manjit Singh, President, Sun Life Asia
MANJIT SINGH President, Sun Life Asia 160
Slide 161: 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 162: 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 163: Track Record of Double-Digit Growth
TRACK RECORD OF DOUBLE-DIGIT GROWTH Insurance Sales1 Underlying Net Income1 ($M) ($M) +12% 1,344 +10% 627 CAGR CAGR 290 556 2014 2022 2014 2022 1 Represents a non-IFRS financial measure. Refer to the non-IFRS Financial Measures section in the appendix to these slides. All results are reported on an
Slide 164: Execution Excellence Driving Strong Momentum
EXECUTION EXCELLENCE DRIVING STRONG MOMENTUM Insurance Sales1 New Business CSM1,2 Underlying Net Income1 Organic CSM Growth CAGR3 ($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 165: 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 166: 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 167: 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 5% 0.8% Indonesia across Asia Malaysia 4% 3.7% 4% 2.1% China
Slide 168: 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 168
Slide 169: 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 6 bank partners Enabled by Digital India #1 Broker 52k Advisors market share1 Bancassurance 11 bank 26 bank partnerships with p
Slide 170: 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 170
Slide 171: 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 171
Slide 172: 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 173: 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 174: 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 175: 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 176: India
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 177: India
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 178: India
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 179: 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 180: 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 181: 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 182: 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 183: 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 184: 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 185: 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 186: Delivering strong growth and building on our Leadership position
• Delivered significant growth Delivering strong • In the right markets with the right capabilities 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 187: Appendix
Appendix Sun Life | investor vay 187
Slide 188: 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 189: 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 190: Endnotes
Endnotes Slide 164: 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 d
Slide 191: Endnotes continued
Endnotes continued Slide 175: 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 192: Endnotes continued
Endnotes continued Slide 181: 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 182: 1 China's National Heal