Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Q1 2024 Earnings Presentation
22 slides from Sun Life Financial's earnings presentation, May 10, 2024
Slide 1: Q1'24 financial & operating results
Q1’24 financial & operating results For the period ended March 31, 2024 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 2024 3
Slide 4: Q1 2024 financial highlights
Q1 2024 financial highlights Delivering on our Purpose to help Clients achieve lifetime financial security and live healthier lives Executing on our ambition to be one of the best asset management and insurance companies in the world Profitability Financial Strength Growth Underlying net income1 Und
Slide 5: Progress on our Client Impact strategy
Progress on our Client Impact strategy Our Purpose: Help Clients achieve lifetime Improving access to care and helping Clients live healthier lives financial security and live healthier lives • Strong demand for the Canadian Dental Care Plan, with 1.7 million Canadians signed up as of the end of Apr
Slide 6: Tim Deacon, Executive Vice President & Chief Financial Officer
Tim Deacon Executive Vice President & Chief Financial Officer Sun Life – Q1 2024 6
Slide 7: Q1 2024 results
Q1 2024 results Profitability ($ millions) Q1’24 Q1’23 Change Results Highlights Wealth & asset management 408 411 (1)% Mixed operating results; business fundamentals remain solid Group - Health & Protection 280 303 (8)% • Wealth & asset management: flat y/y as higher fee income driven by higher Ind
Slide 8: Q1 2024 results
Q1 2024 results Underlying net income1 ($ millions) Reported net income ($ millions) Impact of currency translation decreased underlying net income by $4M2 Impact of currency translation decreased reported net income by $2M2 AM CAN U.S. ASIA CORP AM CAN U.S. ASIA CORP 329 310 316 290 282 282 284 254
Slide 9: MFS: A global leader in public asset management
MFS: A global leader in public asset management Business Group Results (US$) Quarterly Highlights (US$) Profitability Q1’24 Q1’23 Change • Underlying net income in-line with prior year as higher fee income from ANA Underlying net income1 ($ millions) 189 188 +1% growth was offset by higher expenses,
Slide 10: SLC Management: Growing a premier alternatives platform
SLC Management: Growing a premier alternatives platform Business Group Results Quarterly Highlights Profitability Q1’24 Q1’23 Change • Underlying net income in-line with prior year as fee-related earnings growth Fee-related earnings1 ($ millions) 69 68 +1% was offset by lower net seed investment inc
Slide 11: Canada: A leader in health, wealth, and insurance
Canada: A leader in health, wealth, and insurance Business Group Results Quarterly Highlights Profitability Q1’24 Q1’23 Change • Underlying net income down 2% y/y as strong insurance business growth was Wealth & asset management ($ millions) 109 114 (4)% more than offset by lower net investment resu
Slide 12: U.S.: A leader in health & benefits
U.S.: A leader in health & benefits Business Group Results (US$) Quarterly Highlights (US$) Profitability Q1’24 Q1’23 Change • Underlying net income down 20% y/y Group - Health & Protection ($ millions) 124 154 (19)% • Group - Health & Protection earnings down 19% y/y on lower Dental results Individ
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 Q1’24 Q1’23 Change CC1 • Underlying net income up 27% y/y on strong business growth Individual - Protection ($ millions) 168 130 +29% +30% Wealth & asset manage
Slide 14: Save the date: Sun Life Investor Day 2024
Save the date Sun Life Investor Day 2024 November 13, 2024 Sun Life – Q1 2024 14
Slide 15: Appendix
Appendix Sun Life – Q1 2024 15
Slide 16: Drivers of earnings
Drivers of earnings1 Underlying drivers of earnings (DOE) Non-underlying net income adjustments Q1’24 Q4’23 Q1’23 Q1’24 Q4’23 Q1’23 $ millions, pre-tax $ millions, post-tax Risk adjustment release 101 106 95 Common shareholders’ underlying net income (loss) 875 983 895 Contractual service margin rec
Slide 17: DOE experience gains/(losses) – details
DOE experience gains/(losses)1 – details Pre-tax Post-tax $ millions Q1’24 Q4’23 Q1’23 Q1’24 Q4’23 Q1’23 Net equity market impact 19 18 15 12 8 13 Net interest rate impact 104 (272) (14) 40 (53) 11 Impact of changes in the fair value of investment properties (149) (182) (100) (122) (148) (88) Market
Slide 18: Contractual service margin movement analysis
Contractual service margin movement analysis1 $ millions, pre-tax Q1’24 Q4’23 Q1’23 CSM Highlights CSM at beginning of period 11,786 11,452 10,865 • Total CSM ended Q1’24 at $12.1 billion, up 8% y/y largely driven by organic CSM Impact of new insurance business2 347 381 232 growth reflecting strong
Slide 19: Earnings on surplus – Supplemental details
Earnings on surplus – Supplemental details Earnings on surplus – EOS Highlights supplemental details $ millions, pre-tax Q1’24 Q4’23 Q1’23 • Core investment income up q/q due to higher surplus cash balance Core investment income 168 160 137 Realized investment gains / (losses) 5 (5) 20 Other1 (13) 3
Slide 20: 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 21: 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 22: 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