Sun Life Financial (SLF) Investor Day 2024 summary

Strategic direction and business mix

• Four strategic imperatives—asset management and wealth, Asia, health, and digital—drive growth and resilience, supporting client lifetime financial security and healthier lives.

• Business mix is highly diversified and capital-light, with 75% of earnings and 74% of underlying net income from high-growth sectors like wealth, asset management, and health.

• Maintains leading positions in asset management and insurance, with strong global presence in Canada, the U.S., and Asia.

• Pursues growth through global asset management expansion, digital transformation, and deepening health and wealth offerings.

• Emphasizes sustainability, client impact, and operational excellence across all markets.

Financial performance and updated guidance

• Medium-term objectives raised: underlying EPS growth target to 10%+ per annum, ROE to 20%+, and dividend payout ratio at 40-50%.

• Achieved 9% EPS CAGR and over 600bps ROE improvement over the past decade, returning over $14B to shareholders.

• Maintains industry-leading LICAT ratio of 152% and low leverage (20-20.4%), providing resilience and flexibility.

• Organic capital generation exceeds $1B per year, supporting investments, dividends, M&A, and buybacks.

• Disciplined cost management includes a restructuring program targeting $200M in pre-tax efficiencies by 2026.

Asset management and alternatives growth

• Asset management platform at $1.5T AUM, with $1.3T in third-party assets; MFS and SLC are key growth engines.

• SLC Management targets 15%+ AUM growth and 20%+ fee-related/net income growth, focusing on organic expansion and selective acquisitions.

• Distribution partnerships and retail alternatives are major growth drivers.

• Emphasis on maintaining culture and talent retention across acquired asset managers.

• No immediate plans for large-scale integration; focus is on coordinated platform and leadership alignment.