Sun Life Financial (SLF) investor relations material

Strategic priorities and business focus

• Asset management pillar formalized under common leadership, surpassing CAD 1.6 trillion AUM, aiming to unlock synergies and drive growth, with full integration of private asset managers (BGO and Crescent) in early next year.

• U.S. dental business performance enhancement underway, focusing on repricing Medicaid, managing expenses, and scaling commercial dental to become a top five player.

• Accelerated digitization and AI deployment to boost operational efficiency and advisor productivity, with future revenue opportunities anticipated.

• Continued support and investment in Asia and Canadian businesses, both achieving record earnings in Q3 and showing strong future potential.

Capital generation, deployment, and M&A

• Over 70% of earnings are capital-light, driving strong cash generation and a differentiated financial profile.

• Organic capital generation guidance is 30–40% of underlying earnings after dividends, but current performance is above target due to strong sales, especially in Asia.

• Over CAD 11 billion deployed in M&A over the past decade, with immediate focus on completing CAD 2.2 billion in private asset manager buy-ups and ongoing share buybacks.

• Future M&A will be disciplined, focusing on smaller, strategic tuck-ins to enhance existing capabilities, especially in asset management and Asian distribution.

Return on equity (ROE) and growth outlook

• Underlying ROE is near 18%, with a 20% target over the next several years, driven by growth in asset management, SLC, and individual protection businesses.

• SLC expected to grow earnings at 20% annually post-transition, with integration of private asset managers and new management equity plan supporting growth.

• Canadian business delivers 29% ROE, supported by market leadership, favorable insurance experience, and strong asset management growth; normalized growth remains robust.