Sun Life Financial (SLF) investor relations material

Executive summary

• Underlying net income was CAD 1,146 million, up 9% YoY; underlying EPS rose 10% to CAD 2.05, with growth across Canada, Asia, U.S. stop-loss and GreenOak.

• Reported net income fell 29% to CAD 785 million and reported EPS fell 29% to CAD 1.40, reflecting market impacts and acquisition, integration and restructuring costs.

• AUM reached CAD 1,676 billion, up 3% YoY; underlying ROE was 19.0%, versus 18.3% a year earlier.

Financial highlights

• Q3 underlying net income was CAD 1,146 million versus CAD 1,047 million; reported net income was CAD 785 million versus CAD 1,106 million. YTD underlying net income was CAD 3,319 million versus CAD 3,107 million.

• Group insurance sales rose 24% to CAD 619 million and individual insurance sales rose 6% to CAD 1,042 million; asset-management gross flows and wealth sales were CAD 54.4 billion, down 14%.

• Asset-management net outflows were US$22.8 billion versus net inflows of US$3.0 billion a year earlier; MFS outflows were US$26.9 billion and GreenOak net inflows were US$4.0 billion.

• New business CSM declined 14% YoY to CAD 385 million, reflecting increased competition, primarily in Hong Kong.

Outlook and guidance

• Medium-term objectives are 10% underlying EPS growth, 20% underlying ROE and a 40%–50% underlying dividend payout ratio; these are forward-looking objectives, not guidance.

• Wilton Re partnership is expected to launch in H1 2027, subject to regulatory approvals and customary closing conditions; GreenOak is expected to lead asset management for Windsor Life Re.

• A five-year Canadian investment commitment targets CAD 5 billion, including intended CAD 1.5 billion infrastructure-equity deployment, dependent on Insurance Companies Act amendments.