Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Q1 2025 Earnings Presentation
24 slides from Sun Life Financial's earnings presentation, May 9, 2025
Slide 1: Q1'25 financial & operating results
Q1'25 financial & operating results For the period ended March 31, 2025 Sun Life Financial Inc. (unaudited)
Slide 2: Forward-looking statements and non-IFRS financial measures
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 3: Kevin Strain, President and Chief Executive Officer
Kevin Strain President and Chief Executive Officer Sun Life – Q1 2025 3
Slide 4: Q1 2025 financial highlights
Q1 2025 financial highlights Profitability Financial Strength Growth Underlying net income1 Underlying ROE1 Asset management net flows & net wealth sales1,5 $1,045 M +19% 17.7% $(6.4) B +36% Reported net income Reported ROE1 Group - Health & Protection sales1 $928 M +13% 15.7% $580 M +10% Underlying
Slide 5: Delivering on our Purpose and strategy
Delivering on our Purpose and strategy Asset Management and Wealth Asia Health Strong performance across our Asset Accelerated momentum in fast-growing markets Continued strength and resilience in Canada Management platforms • Overall: Good results driven by strong protection • Strong sales performa
Slide 6: Tim Deacon, Executive Vice-President & Chief Financial Officer
Tim Deacon Executive Vice-President & Chief Financial Officer Sun Life – Q1 2025 6
Slide 7: Q1 2025 results
Q1 2025 results Profitability ($ millions) Q1’25 Q1’24 Change Results Highlights Asset management & wealth2 487 408 +19% Strong financial performance, reflecting growth across businesses: Group - Health & Protection 330 280 +18% • Asset management & wealth: up 19% y/y on higher fee income across bus
Slide 8: Q1 2025 results
Q1 2025 results Underlying net income1 ($ millions) Reported net income ($ millions) Impact of currency translation increased underlying net income by $39M2 Impact of currency translation increased reported net income by $41M2 AM CAN U.S. ASIA CORP AM CAN U.S. ASIA CORP 376 351 351 310 326 282 284 2
Slide 9: MFS: A global leader in public asset management
MFS: A global leader in public asset management Business Group Results (US$) Quarterly Highlights (US$) Profitability Q1’25 Q1’24 Change • Underlying net income down 2% compared to the prior year as lower Underlying net income1 ($ millions) 186 189 (2)% expenses were partially offset by a decrease i
Slide 10: SLC Management: Growing a premier alternatives platform
SLC Management: Growing a premier alternatives platform Business Group Results Quarterly Highlights Profitability Q1’25 Q1’24 Change • Underlying net income up 204% y/y on strong fee-related earnings growth Fee-related earnings1 ($ millions) 99 69 +43% and higher net seed investment income Pre-tax f
Slide 11: Canada: A leader in health, wealth, and insurance
Canada: A leader in health, wealth, and insurance Business Group Results Quarterly Highlights Profitability Q1’25 Q1’24 Change • Underlying net income up 21% y/y on favourable insurance experience, Asset management & wealth ($ millions) 112 109 +3% business growth and higher fee income Group - Healt
Slide 12: U.S.: A leader in health & benefits
U.S.: A leader in health & benefits Business Group Results (US$) Quarterly Highlights (US$) Profitability Q1’25 Q1’24 Change • Underlying net income up 7% y/y Group - Health & Protection ($ millions) 129 124 +4% • Group - Health & Protection earnings up 4% y/y driven by higher Dental Individual - Pr
Slide 13: Asia: A regional leader focused on fast-growing markets
Asia: A regional leader focused on fast-growing markets Business Group Results Quarterly Highlights (% in constant currency1) Profitability Q1’25 Q1’24 Change CC1 • Underlying net income up 6% y/y Individual - Protection ($ millions)2 173 160 +8% +3% • Total CSM grew by 22% y/y on strong organic CSM
Slide 14: Appendix
Appendix Sun Life – Q1 2025 14
Slide 15: Drivers of earnings
Drivers of earnings1 Underlying drivers of earnings (DOE) Non-underlying net income adjustments Q1’25 Q4’24 Q1’24 Q1’25 Q4’24 Q1’24 $ millions, pre-tax $ millions, post-tax Risk adjustment release 109 104 101 Common shareholders’ underlying net income (loss) 1,045 965 875 Contractual service margin
Slide 16: DOE experience gains/(losses) – details
DOE experience gains/(losses)1 – details Pre-tax Post-tax $ millions Q1’25 Q4’24 Q1’24 Q1’25 Q4’24 Q1’24 Net equity market impact (63) (13) 19 (48) (15) 12 Net interest rate impact 76 (109) 104 57 (86) 40 Impact of changes in the fair value of investment properties (41) (99) (149) (31) (78) (122) Ma
Slide 17: Contractual service margin movement analysis
Contractual service margin movement analysis1 $ millions, pre-tax Q1’25 Q4’24 Q1’24 CSM Highlights CSM at beginning of period 13,366 12,836 11,786 • Total CSM ended Q1’25 at $13.6 billion, up 12% y/y largely driven by organic Impact of new insurance business2 406 306 347 CSM growth Expected movement
Slide 18: Earnings on surplus – Supplemental details
Earnings on surplus – Supplemental details Earnings on surplus – EOS Highlights supplemental details $ millions, pre-tax Q1’25 Q4’24 Q1’24 • Core investment income in-line with the prior quarter Core investment income 133 134 168 Realized investment gains / (losses) (2) 2 5 Other1 (3) (7) (13) Earni
Slide 19: Credit experience – Supplemental details
Credit experience– Supplemental details Credit experience – Credit Highlights supplemental details $ millions, pre-tax Q1’25 Q4’24 Q3’24 • Ratings/Net impairments reflect small number of impairments and unfavourable Ratings/Net impairments1 (22) (51) (71) migration Expected credit loss2 (6) 3 (9) Cr
Slide 20: Historically low sensitivities to macroeconomic shocks
Historically low sensitivities to macroeconomic shocks; well-positioned to navigate environment of moderate market volatility Change in Private and Public Equity Markets1,2,3 Change in Credit Spreads3,8 As at March 31, 2025 25% 10% 10% 25% As at March 31, 2025 50 basis point 50 basis point increase
Slide 21: Use of Non-IFRS Financial Measures
Use of Non-IFRS Financial Measures We report certain financial information using non-IFRS financial measures, as we believe that these measures provide information that is useful to investors in understanding our performance and facilitate a comparison of our quarterly and full year results from per
Slide 22: 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
Slide 23: Footnotes
Footnotes From slide 4 2 Impact of new insurance business on CSM, also referred to as "new business CSM”, represents growth from sales activity in the period, including individual protection sales (excluding joint ventures), and defined benefit solutions and segregated fund wealth sales in Canada. 3
Slide 24: Footnotes
Footnotes From slide 20 1 Represents the respective change across all equity exposures as at March 31, 2025 and December 31, 2023. Due to the impact of active management, basis risk, and other factors, realized sensitivities may differ significantly from expectations. Sensitivities include the impac