Sun Life Financial (SLF) Scotiabank Financials Summit summary

Business performance and earnings

• Q2 saw a strong rebound with 8% growth in Canada and robust results in Asia, especially Hong Kong and international operations.

• U.S. business performed well outside of dental, with MFS earnings up 4% year-over-year.

• High-quality earnings were driven by resilient performance across four business pillars and strong insurance results.

• New business CSM reached CAD 437 million in Q2, over CAD 150 million higher than the prior year, supporting future earnings.

• Q1 was a rare miss, but Q2 results aligned with long-term expectations.

U.S. dental and stop-loss business

• Medicaid redetermination post-COVID led to higher claims ratios and temporary challenges in the dental segment.

• About 17% of Medicaid members exited, impacting claims and utilization; negotiations with states are ongoing for special payments.

• The dental business remains a long-term strategic asset, with a CAD 100 million after-tax target for next year.

• Stop-loss business remains strong, with annual repricing and profit margins normalizing but still above targets.

• Investments in digital and service models are enhancing U.S. group benefits performance.

Asset management and alternatives

• Asset management platform totals CAD 1.5 trillion AUM, with MFS contributing significant earnings and cash flow.

• MFS faces industry-wide outflows but remains a key asset, focusing on active ETFs and public fixed income.

• Alternatives platform, including BGO and Crescent, is positioned for growth as interest rates are expected to decline.

• Leadership solidification in alternatives is expected to drive future performance.

• Advisors Asset Management acquisition targets high net worth retail alts distribution, with new fund launches in U.S. wirehouses and Scotia partnership.