Sun Life Financial Inc. · TSX:SLF
Sun Life Financial — Investor Presentation (February 2014)
25 slides from Sun Life Financial's investor presentation, February 2014
Slide 1: Building Sustainable Shareholder Value 2013
BUILDING SUSTAINABLE SHAREHOLDER VALUE 2013
Slide 2: SLF Around the World
SLF Around the World 127,755 advisors(1) · P&D(2) $129 billion · AUM(3) of $640 billion UNITED KINGDOM CANADA IRELAND LONDON CHINA VANCOUVER MONTREAL ROTTERDAM FRANKFURT PARIS ZURICH TORONTO BOSTON MILAN HONG KONG MADRID UNITED STATES PHOENIX VIETNAM TOKYO INDIA HONG KONG DUBAI BERMUDA PHILIPPINES M
Slide 3: Enduring Strategy
Sun Life Financial ENDURING STRATEGY A strategy focusing on growth, higher ROE, and less volatile businesses Becoming the BEST ENHANCING LEADERSHIP PERFORMING LIFE POSITION in U.S. group insurance and BECOMING INSURER in Canada TOP 5 in voluntary benefits GROWING our ASSET GROWING ASIA to be MANAGEM
Slide 4: Products & Markets Positioned for Growth
Sun Life Financial PRODUCTS & MARKETS POSITIONED FOR GROWTH AGING of baby boomers DOWNLOADING of responsibility GROWTH of the middle class from government & employers to in the emerging employees markets of Asia LONG TERM MACRO DRIVERS OF CUSTOMER DEMAND BUILDING SUSTAINABLE SHAREHOLDER VALUE 3
Slide 5: Ambitious and Achievable Objectives
Sun Life Financial AMBITIOUS AND ACHIEVABLE OBJECTIVES OPERATING NET INCOME 2011 ADJUSTED 2015 OBJECTIVES(1) (C$ MILLIONS) NET INCOME(2) 2015 operating net income SLF Canada 900 660 objective of $1.85 BILLION SLF U.S. 345 273 MFS 450 275 SLF Asia 225 110 2015 operating ROE objective of 12% - 13% Cor
Slide 6: Robust Sales & Earnings Growth
Sun Life Financial ROBUST SALES & EARNINGS GROWTH CONTINUING CHANGE • 2013 value of new business(1) up 30% OPERATIONS (C$ MILLIONS) 2013 OVER • 2013 expected profit(1) up 20% (unless otherwise noted) 2012 • 2013 new business strain(1) down 57% Life and Health 1,880 20% sales(1) (2) OPERATING NET INC
Slide 7: SLF Canada: Did You Know?
SLF Canada DID YOU KNOW? • Voted by Canadians as “Most Trusted Life Insurance Company” in the country for the fourth 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 i
Slide 8: SLF Canada: Strong Sales, Improved Profitability
SLF Canada STRONG SALES, IMPROVED PROFITABILITY SLGI CLIENT ASSETS UNDER NEW BUSINESS STRAIN(1) MANAGEMENT(1)(2) Becoming the BEST (C$ billions) PERFORMING LIFE (C$ millions) INSURER in Canada 7,241 16 6,048 2013 HIGHLIGHTS 4 GROWING our ASSET • MANAGEMENT Achieved significant growth across group bu
Slide 9: SLF Canada: Strategy and Key Initiatives
SLF Canada STRATEGY AND KEY INITIATIVES Capture the • Expand retirement distribution RETIREMENT • Grow retail and institutional retirement assets; MARKET grow SLGI assets OPPORTUNITY • Drive growth in Defined Benefit Solutions Extend #1 • Total Benefits and Mobile Initiatives to differentiate MARKET
Slide 10: SLF U.S.: Accelerated Growth, Lower Volatility
SLF U.S. ACCELERATED GROWTH, LOWER VOLATILITY VOLUNTARY SALES(1) GROUP BENEFITS ENHANCING LEADERSHIP (US$ millions) BUSINESS SALES(1)(2) POSITION in U.S. group (US$ millions) insurance and BECOMING TOP 5 in voluntary benefits 666 563 178 2013 HIGHLIGHTS 141 446 • Transformed riskGROWING ASIA tosale
Slide 11: SLF U.S.: Strategy and Key Initiatives
SLFU.S. SLF U.S. STRATEGY AND 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 VOLUNTARY • Enhance enrollment, d
Slide 12: Asset Management: Record Performance at MFS
Asset Management Becoming the BEST RECORD PERFORMANCE AT MFS (1) PERFORMING LIFE INSURER in Canada ASSETS UNDER GROSS SALES(2) MANAGEMENT(2) (US$ billions) GROWING our ASSET (US$ billions) 96 MANAGEMENT 413 86 BUSINESS globally 323 2013 HIGHLIGHTS • Achieved record gross sales • Grew and diversified
Slide 13: MFS: Strategy and Key Initiatives
MFS MFS STRATEGY AND KEY INITIATIVES Deliver consistent, strong • Enhance global research platform INVESTMENT • Strengthen unique, collaborative culture PERFORMANCE Broaden • Diversify product sales and grow in our markets GLOBAL • Add investment offices and staff to cover more regions PRESENCE • Ex
Slide 14: SLF Asia: Sales Growth, Expanded Footprint
SLF AsiaENHANCING LEADERSHIP SALES GROWTH, EXPANDED FOOTPRINT POSITION in U.S. group insurance and BECOMING TOP 5 in voluntary benefits GROWING ASIA to be INDIVIDUAL LIFE WEALTH SALES(1)(2)(4) INSURANCE SALES(1)(2) (C$ millions) a MORE SIGNIFICANT (C$ millions) 5,851 PART of Sun Life’s results 5,024
Slide 15: SLF Asia: Strategy and Key Initiatives
SLF SLF Asia Asia STRATEGY AND KEY INITIATIVES Expand • Expand our agency force and improve productivity MULTI- • Grow distribution through alternative channels, CHANNEL in particular bancassurance DISTRIBUTION Expand • Grow new ventures in Vietnam and Malaysia PRODUCTS • Expand accident and health
Slide 16: Reducing Volatility, Optimizing Capital Usage
Sun Life Financial REDUCING VOLATILITY, OPTIMIZING CAPITAL USAGE • DISCONTINUED U.S. life insurance and annuity sales (January 2012) • REDUCED Canadian segregated fund sales from $2.1 billion (2009) to $419 million (2013) • REDUCED Reduced percentage of Canadian insurance sales from universal life i
Slide 17: Diversified by Geography and Market
Sun Life Financial DIVERSIFIED BY GEOGRAPHY AND MARKET REVENUE BY VALUE OF NEW BUSINESS BUSINESS SEGMENT(1) BY BUSINESS TYPE(1) (%) (%) Corporate SLF Asia 7% Protection 4% 45% MFS Wealth 14% 55% SLF Canada SLF U.S. 45% 30% (1) Based on 2013; revenue excludes the fair value change in Fair Value Throu
Slide 18: Strong Capital and Financial Position
Sun Life Financial STRONG CAPITAL AND FINANCIAL POSITION MCCSR RATIO(1) – SUN LIFE ASSURANCE COMPANY $2.1 billion cash level at Sun Life Financial Inc. as of OF CANADA December 31, 2013 219% 211% 209% Financial Strength Rating SUN LIFE ASSURANCE 2013 2012 2011 2010 COMPANY OF CANADA A.M. Best A+ A+
Slide 19: Quality Asset Portfolio
Sun Life Financial QUALITY ASSET PORTFOLIO 2013 INVESTED ASSETS • Investment portfolio is well diversified (% C$110 billion) by geography, asset class, industry sector and issuer Equities • High quality asset base 5% Debt Securities • Self originated mortgage portfolio is Investment 50% Properties 6
Slide 20: Disciplined Execution
Sun Life Financial DISCIPLINED EXECUTION INTENSIFY OUR FOCUS ON CUSTOMERS GREATER DISCIPLINE AROUND PRODUCTIVITY AND EXPENSES HIGH PERFORMANCE CULTURE BUILDING SUSTAINABLE SHAREHOLDER VALUE 19
Slide 21: Sustainable Shareholder Value: Executing on Growth
Sun Life Financial SUSTAINABLE SHAREHOLDER VALUE EXECUTING ON GROWTH LOWER RISK, HIGHER ROE BUSINESSES DISCIPLINED CAPITAL DEPLOYMENT AMBITIOUS & ACHIEVABLE OBJECTIVES BUILDING SUSTAINABLE SHAREHOLDER VALUE 20
Slide 22: Investor Relations Contact
Sun Life Financial 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 BUILDING SUSTAINABLE SHAREHOLDER VALUE 21
Slide 23: Use of Non-IFRS Financial Measures
Use of Non-IFRS Financial Measures We report certain financial information using financial measures that are not based on International Financial Reporting Standards (“IFRS”), as we believe that they provide information that is useful to investors in understanding our performance and facilitate a co
Slide 24: Forward-Looking Statements
Forward-Looking Statements In this document, Sun Life Financial Inc. and its subsidiaries, joint ventures and associates are referred to as “we”, “us”, “our”, and “the Company”. Certain statements in this document, including (i) the anticipated impact of the sale of our U.S. Annuity Business, (ii) s
Slide 25: 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
Sun Life Financial — Investor Presentation (February 2014) on 6ix