Financial Performance - Underlying net income reached $1,000 million, a 9% increase compared to Q2'23[9] - Reported net income was $646 million, a 2% decrease compared to Q2'23[9] - New business CSM increased significantly by 62% to $437 million compared to Q2'23[9] - Total CSM increased by 11% to $12.5 billion[10] - Individual sales increased by 25% year-over-year to $753 million, while Group sales decreased by 18% to $494 million[10] Financial Strength - SLF Inc's LICAT ratio stood at 150%, a 2 percentage point increase from Q1'24[10, 18] - The financial leverage ratio was 22.6%[10] - Net wealth sales & AM net flows was $(19.7) billion, a (466)% change[10] Business Segment Results - Wealth & asset management underlying net income increased by 9% to $455 million[17] - Group - Health & Protection underlying net income decreased by 15% to $305 million[17] - Individual - Protection underlying net income increased by 31% to $347 million[17] - MFS Investment Management reported total net outflows of $(14.8) billion[30] - SLC Management's fee-related earnings increased by 5% to $65 million[31] - Canada's underlying net income increased by 8% to $402 million[34] - U.S. Group - Health & Protection earnings decreased by 25% to $112 million[36] - Asia's underlying net income increased by 19% to $179 million[43]

Shares of Sun Life Financial Inc SLF were climbing higher on Tuesday, after experiencing volatility ahead of the company's second-quarter earnings. The results came amid an exciting earnings season. Here are some key analyst takeaways. RBC Capital Markets On Sun Life Financial Analyst Darko Mihelic maintained an Outperform rating and price target of C$76. Sun Life Financial's second-quarter underlying earnings came in at $1.72 per share, above consensus of $1.58 per share, "primarily reflecting strength in ...

JHVEPhoto/iStock Editorial via Getty Images 1M зм 7D CA Market 36.49% Financials 34.45% Consumer Finance 150.15% 60.70% Insurance Capital Markets 39.06% Banks 25.31% Mortgage Finance 0% Mortgage REITs 0% Diversified Financial -26.29% Canada is home to some of my portfolio holdings such as Suncor Energy (SU) and Acadian Timber (OTCPK: ACAZF), so I keep a close eye on Canada's economic climate to assess the risks facing my existing investments and to uncover potential investment opportunities. The financial s ...

Core Viewpoint - Sun Life reported quarterly earnings of $1.25 per share, exceeding the Zacks Consensus Estimate of $1.18 per share, and showing an increase from $1.17 per share a year ago, representing an earnings surprise of 5.93% [1] Group 1: Earnings Performance - The company has surpassed consensus EPS estimates three times over the last four quarters [2] - Sun Life's revenues for the quarter ended June 2024 were $6.52 billion, missing the Zacks Consensus Estimate by 3%, compared to $5.71 billion in the same quarter last year [2] - The company has not beaten consensus revenue estimates in the last four quarters [2] Group 2: Stock Performance and Outlook - Sun Life shares have declined approximately 7.3% since the beginning of the year, while the S&P 500 has gained 12% [3] - The company's earnings outlook will be crucial for future stock movements, with current consensus EPS estimates at $1.24 for the coming quarter and $4.80 for the current fiscal year [4][7] Group 3: Estimate Revisions and Industry Context - The trend for estimate revisions ahead of the earnings release was unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] - The Insurance - Life Insurance industry is currently in the top 37% of Zacks industries, suggesting that the industry outlook can significantly impact stock performance [8]

Financial Performance - Underlying net income for Q2 2024 was $1,000 million, an increase of $80 million or 9% from Q2 2023, with an underlying return on equity (ROE) of 18.1%[2] - Reported net income decreased to $646 million, down $14 million or 2% from Q2 2023, with a reported ROE of 11.7%[3] - Total revenue for Q2 2024 was $8.916 billion, an increase of $1.2 billion compared to Q2 2023, primarily driven by lower net investment losses and higher insurance revenue in Canada[151] - Reported net income for Q2'24 decreased by $14 million or 2% to $646 million, impacted by a restructuring charge of $138 million[35] - The company reported underlying net income of $1.000 billion for Q2 2024, an increase from $875 million in Q1 2024[157] - Reported net income for Q2 2024 reached $386 million, up $130 million or 51%, influenced by a gain on the partial sale of ABSLAMC and favorable ACMA impacts[98] Assets Under Management (AUM) - Assets under management (AUM) reached $1,465 billion, an increase of $98 billion or 7% from Q2 2023[3] - Total assets under management (AUM) reached $1,464.8 billion, a year-over-year increase from $1,366.8 billion[33] - Total assets under management (AUM) reached $1,464.8 billion in Q2'24, a decrease of $5.3 billion or 0.4% from Q1'24[62] - AUM increased by $65.2 billion or 5% from December 31, 2023, primarily due to favorable market movements of $68.2 billion and foreign exchange translation gains of $32.8 billion[63] - Asset Management AUM reached $1,072.1 billion, an increase of $56.2 billion or 6% from December 31, 2023, driven by net asset value changes of $90.4 billion, partially offset by net outflows of $31.1 billion and client distributions of $3.1 billion[82] Segment Performance - Wealth and asset management underlying net income was $455 million, up $36 million or 9% from the previous year[4] - Group - Health & Protection underlying net income decreased to $305 million, down $55 million or 15% from Q2 2023[4] - Individual - Protection underlying net income increased to $347 million, up $82 million or 31% from Q2 2023[4] - U.S. underlying net income decreased by US$11 million or 7% to US$149 million, driven by lower dental results and unfavorable morbidity experience[14] - Asia's underlying net income increased by $29 million or 19% to $179 million, driven by growth in individual protection and wealth management[17] - Underlying net income for the U.S. segment was $179 million, an increase of $29 million or 19%, driven by growth in Individual - Protection and Wealth & Asset Management[96] Sales and Flows - Wealth sales and asset management gross flows were $46,262 million, an increase of 9% year-over-year[4] - Canada’s wealth sales and asset management gross flows increased by 72% to $5 billion, driven by higher defined benefit solution sales[11] - Total wealth sales and asset management gross flows increased by $3.9 billion or 9% year-over-year, with Canada wealth sales rising by 72% driven by defined benefit solutions[59] - Total individual protection sales increased by $149 million or 25% from the prior year, with Asia individual sales rising by 29% driven by expanded distribution capabilities[60] Restructuring and Charges - The company recorded a restructuring charge of $138 million in Q2'24, expected to yield annual savings of approximately $200 million by 2026[48] - The company recorded a restructuring charge of $108 million in Q2 2024 within the Corporate business group[180] Tax and Regulatory - The effective income tax rate on underlying net income was 17.3% for Q2'24[43] - The effective income tax rate on underlying net income was 16.7%, while the reported net income tax rate was 21.5%[56] - The Pillar Two global minimum tax rules are expected to increase the effective tax rate on underlying net income by approximately one to two percentage points starting January 1, 2024[55] Market Sensitivities - A 25% decrease in private and public equity markets could lead to a potential after-tax net income impact of $(450) million[133] - A 10% increase in private and public equity markets is estimated to increase after-tax net income by $200 million as of June 30, 2024[133] - A 50 basis point increase in interest rates could decrease after-tax net income by $(25) million as of June 30, 2024[135] Cash and Liquidity - Net cash and cash equivalents at the end of Q2 2024 were $8.731 billion, an increase from $7.908 billion at the beginning of the period[155] - Operating activities generated cash flows of $1.167 billion in Q2 2024, compared to cash used of $2.487 billion in Q1 2024[155] Corporate Actions - The company issued $750 million in subordinated unsecured debentures in May 2024 to finance eligible assets[71] - During Q2'24, Sun Life Financial Inc. repurchased and canceled approximately 4.1 million common shares at a total cost of $287 million[72] Future Outlook - The company plans to continue focusing on market expansion and new product development to enhance long-term growth potential[177]

Sun Life Financial Inc. ("SLF Inc."), its subsidiaries and, where applicable, its joint ventures and associates are collectively referred to as "the Company", "Sun Life", "we", "our", and "us". We manage our operations and report our financial results in five business segments: Canada, United States ("U.S."), Asset Management, Asia, and Corporate. The information in this document is based on the unaudited interim financial results of SLF Inc. for the period ended June 30, 2024 and should be read in conjunct ...

Media Relations Contact: Investor Relations Contact: Rajani Kamath David Garg TORONTO, July 31, 2024 /PRNewswire/ - Sun Life Financial Inc. (TSX: SLF) (NYSE: SLF) is pleased to announce the appointments of Patrick Cronin and Stacey Madge to the Sun Life Board of Directors, effective July 31, 2024. Mr. Cronin sees strong alignment between key areas of Sun Life's business and strategic priorities and his own expertise, which includes a deep understanding of capital markets, financial management, mergers and a ...

About Sun Life | --- | --- | |--------------------------|-----------------------------------| | | | | Media Relations Contact: | Investor Relations Contact: | | Kim Race | David Garg | | Director | Senior Vice-President, Capital | | Corporate Communications | Management and Investor Relations | | T. 416-779-4574 | T. 416-408-8649 | | [email protected] | [email protected] | To access the call and presentation via live webcast, please click here. To access the call via telephone, please click here. Note to ed ...

Core Insights - Sun Life has partnered with Hinge Health to provide digital interventions for members with musculoskeletal (MSK) conditions, which ranked as the fifth highest cost claims from 2020 to 2023 according to Sun Life's report [1][8] - The collaboration aims to improve healthcare outcomes while reducing costs for employers and members through advanced technology and personalized care [2][8] - Hinge Health's services include the FDA-cleared Enso device for pain relief and a Women's Pelvic Health Program, which are expected to significantly lower healthcare costs and enhance care quality [2][13] Company Overview - Sun Life U.S. is a major provider of employee and government benefits, serving over 50 million Americans with a wide range of services including dental, vision, and medical stop-loss insurance [6] - As of March 31, 2024, Sun Life had total assets under management of C$1.47 trillion, indicating a strong financial position [12] - Hinge Health is recognized for its clinically validated MSK solutions, with proven results such as a 68% reduction in pain and a 42% prevention rate of new opioid prescriptions [13] Product and Service Details - The new Health 360 app by Sun Life connects members to health resources, including Hinge Health and Health Navigator Care Advisors, promoting engagement and better health outcomes [14] - Hinge Health offers personalized programs through a team of physical therapists and health coaches, utilizing technology to help members manage pain and avoid unnecessary procedures [15] - Members will have access to early intervention resources and specialized technology, including the Enso device, to support their treatment [15]

Core Insights - Sun Life Financial Inc. is focusing on strategic investments in Asia, enhancing its asset management business, and scaling up its U.S. operations, which are expected to drive growth [16] - The company has a strong capital position and aims for a medium-term return on equity (ROE) target of 18% while maintaining a 40-50% dividend payout [14] Growth Projections - The Zacks Consensus Estimate for Sun Life's 2024 earnings per share indicates a 3.6% increase from the previous year, with 2025 estimates showing an 8.9% increase [13] - Sun Life's earnings contribution from emerging Asian markets has risen to 21% from 8% over recent years, highlighting the potential for higher returns compared to North American markets [10] Business Tailwinds - Sun Life is investing in private fixed-income, mortgages, and real estate to strengthen its asset management, which is expected to provide higher returns on equity and lower volatility [3] - The company is shifting its growth focus toward products that require lower capital and offer more predictable earnings, aiming to be among the top five players in the voluntary benefits business [18] Headwinds - Sun Life has experienced an average expense increase of 11% over the past few years, primarily due to rising employee costs and other operational expenses [11] - The company is undertaking integration activities expected to yield cost savings of $60 million by 2024, which is crucial for maintaining profitability [11]