Sun Life Financial (SLF) Q4 2023 earnings summary

Executive summary

• Q4 underlying net income was $983M, up 10% YoY; reported net income was $749M, down 36% YoY, including unfavorable market-related impacts.

• FY2023 underlying net income rose 11% to $3.728B and reported net income rose 7% to $3.086B; underlying EPS was $6.36, up 11%.

• Results reflected diversified business performance, higher sales in protection and health, and strong new business CSM growth.

Financial highlights

• Q4 underlying EPS was $1.68, up 11% YoY; reported EPS was $1.28, down 35%; underlying ROE was 18.4% and reported ROE was 14.0%.

• FY2023 underlying and reported ROE were 17.8% and 14.7%, respectively; book value per common share was $36.51, up 6% YoY.

• Q4 total AUM reached $1.40T, up 6% YoY; wealth sales and asset-management gross flows were $45.75B, up 6%.

• FY2023 new business CSM was $1.253B, up 64%; total CSM reached $11.8B, up 8% YoY.

Outlook and guidance

• 2024 priorities: advance digital capabilities, deepen health support, leverage the asset-management platform, accelerate Asia momentum, and strengthen culture and ways of working.

• SLC Management’s $20.9B of AUM not yet earning fees could generate annualized fee-related revenue above $180M once invested.