Financial Data and Key Metrics Changes - Reported net income for Q1 2020 was $391 million, down 37% from Q1 2019, primarily due to equity market declines [19][34] - Underlying net income increased by 7% to $770 million, with underlying earnings per share up 9% to $1.31 [19][35] - Underlying return on equity for the quarter was 14.2% [19][35] - LICAT ratio remained unchanged at 143%, indicating strong capital position [21][38] - Assets under management decreased by $76 billion to $1.023 trillion, mainly due to unfavorable market movements [44] Business Line Data and Key Metrics Changes - Wealth sales grew by 66% year-over-year, with MFS achieving record sales [22][61] - Insurance sales slightly decreased to $776 million, primarily due to lower large case Group Benefits sales in Canada [25][59] - International Hubs insurance sales increased by 148% year-over-year, driven by growth in Hong Kong and International [27] - Asset management reported net income growth of 9%, driven by favorable fair value adjustments [49] Market Data and Key Metrics Changes - Canadian insurance sales were down 19%, while U.S. sales increased by 2% on a constant currency basis [59][60] - Individual insurance sales in Asia rose by 22% on a constant currency basis, with strong growth in Hong Kong and the Philippines [60][63] - Overall, MFS experienced net inflows of $1.8 billion, reflecting strong retail net flows [62] Company Strategy and Development Direction - The company is focusing on digital transformation to enhance client interactions and service delivery [29][30] - A four-pillar strategy is in place to ensure balanced and diversified earnings streams [21] - The company is evaluating M&A opportunities while adhering to regulatory guidelines [87][88] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the COVID-19 pandemic but expressed confidence in the company's strong capital and liquidity positions [79] - The company anticipates a challenging year for financial institutions, with potential reductions in sales and premium levels [31][32] - Management highlighted the importance of digital tools in maintaining sales activities during the pandemic [72][120] Other Important Information - The company has implemented measures to support clients facing financial hardships, including premium payment deferrals [76] - The company donated over $2 million to charities to support at-risk populations during the pandemic [17] Q&A Session Summary Question: How do capital allocation priorities shift due to regulatory measures? - Management indicated that share buybacks will be considered again once restrictions are lifted, and M&A opportunities will be evaluated based on various scenarios [86][88] Question: Any issues with the hedging program during market volatility? - Management expressed satisfaction with the hedging program, noting that it effectively covered actuarial liabilities related to market movements [95] Question: What is the outlook for lapse rates and credit losses? - Management stated that lapse rates could vary depending on the economic environment and product types, with potential increases in lapsation if unemployment rises [126] Question: How are sales performing in different regions? - Management reported mixed sales performance, with some markets recovering while others remain impacted by lockdowns [104][106]

Q1 2020 Financial & Operating Results For the period ended March 31, 2020 Sun Life Life's brighter under the sun Sun Life Financial Inc. (unaudited) In this presentation, Sun Life Financial Inc. ("SLF" or "SLF Inc."), its subsidiaries and, where applicable, its joint ventures and associates are referred to as "we", "us", "our", "Sun Life" and the "Company". Forward-looking statements Certain statements in this presentation and certain oral statements made by senior management during the earnings conference ...