Sun Life Announces Renewal of its Normal Course Issuer Bid

Rhea-AI Summary

Sun Life Financial Inc. (TSX: SLF) (NYSE: SLF) has announced the renewal of its normal course issuer bid (NCIB) to purchase up to 15,000,000 common shares, representing approximately 2.6% of its outstanding shares. The NCIB, approved by regulatory authorities, will run from August 29, 2024, to August 28, 2025. Sun Life can purchase up to 527,068 shares daily on the TSX, subject to certain conditions. Purchases may be made through various Canadian trading platforms at market rates, and potentially through private agreements or share repurchase programs. The company has established an automatic repurchase plan with its designated broker to facilitate purchases during blackout periods. Under its prior NCIB, Sun Life purchased 10,300,710 shares at an average price of $69.40.

Positive

• Renewal of NCIB allows Sun Life to return capital to shareholders
• Ability to purchase up to 15,000,000 common shares (2.6% of outstanding shares)
• Flexibility in share repurchase methods, including private agreements and alternative trading platforms
• Establishment of automatic repurchase plan for continued buying during blackout periods

Negative

• None.

Insights

Financial Analyst

Sun Life's renewal of its Normal Course Issuer Bid (NCIB) for up to 15 million common shares (about 2.6% of outstanding shares) signals a continuation of its capital management strategy. This move allows the company to return capital to shareholders, potentially boosting stock value. The reduced number of shares compared to the prior NCIB (17 million) might indicate a more conservative approach or reflect changes in the company's financial position. The average purchase price of $69.40 per share under the prior NCIB suggests Sun Life sees value in its stock at current levels. This program provides flexibility in capital allocation but investors should monitor its impact on earnings per share and overall financial health.

Market Research Analyst

Sun Life's NCIB renewal reflects a broader trend in the insurance sector where companies are actively managing their capital structures. The ability to purchase up to 25% of the average daily trading volume provides significant market presence. The inclusion of private agreements and share repurchase programs offers additional flexibility, potentially allowing for more efficient execution. The automatic repurchase plan is a strategic move, ensuring continuous activity even during blackout periods. This NCIB, while positive for shareholder value, should be viewed in the context of market conditions and Sun Life's growth prospects. Investors should consider how this capital allocation strategy compares with potential investments in business expansion or acquisitions.

TORONTO, Aug. 26, 2024 /PRNewswire/ - Sun Life Financial Inc. (TSX: SLF) (NYSE: SLF) (the "Company" or "Sun Life") announced today that the Office of the Superintendent of Financial Institutions and the Toronto Stock Exchange (the "TSX") have approved the renewal of the Company's previously announced normal course issuer bid to purchase up to 15,000,000 of its common shares ("common shares") (representing approximately 2.6% of the 577,567,842 common shares issued and outstanding as at August 20, 2024) (the "NCIB").

The NCIB will provide the Company with the flexibility to acquire common shares in order to return capital to shareholders as part of its overall capital management strategy.

The NCIB will commence on August 29, 2024 and continue until August 28, 2025, such earlier date as the Company may determine, or such date as the Company completes its purchases of common shares pursuant to the NCIB. The average daily trading volume on the TSX for the six months ending July 31, 2024 was 2,108,275 common shares (the "ADTV"). In accordance with the TSX rules, the Company may purchase up to 527,068 of its common shares on the TSX during any trading day, which represents 25% of the ADTV, subject to the TSX rules permitting block purchases.

Purchases under the NCIB may be made through the facilities of the TSX, other Canadian stock exchanges and/or alternative Canadian trading platforms, at prevailing market rates. Subject to regulatory approval, purchases under the NCIB may also be made by way of private agreements or share repurchase programs under issuer bid exemption orders issued by securities regulatory authorities. Any purchases made under an exemption order issued by a securities regulatory authority will generally be at a discount to the prevailing market price. The actual number of common shares purchased under the NCIB, and the timing of such purchases (if any), will be determined by the Company. Any common shares purchased by the Company pursuant to the NCIB will be cancelled or used in connection with certain equity settled incentive arrangements.

The Company has established an automatic repurchase plan with its designated broker in order to facilitate purchases of common shares under the NCIB. Under the automatic repurchase plan, the Company's designated broker may purchase common shares pursuant to the NCIB at times when the Company ordinarily would not be active in the market due to its own internal trading blackout periods, insider trading rules or otherwise. Purchases made pursuant to the automatic repurchase plan, if any, will be made by the Company's designated broker based upon the parameters prescribed by the TSX, applicable Canadian securities laws and the terms of the written agreement between the Company and its designated broker. The automatic repurchase plan constitutes an "automatic plan" for purposes of applicable Canadian securities legislation and has been pre-cleared by the TSX.

Under its prior normal course issuer bid (the "Prior NCIB"), which commenced on August 29, 2023 and expires on August 28, 2024, the Company sought and received approval from the TSX to purchase up to 17,000,000 common shares. As of August 20, 2024, the Company had purchased 10,300,710 common shares under the Prior NCIB at a weighted average price of $69.40 per common share through the facilities of the TSX, other Canadian stock exchanges and/or alternative Canadian trading platforms.

Forward-Looking Statements
From time to time, the Company makes written or oral forward-looking statements within the meaning of certain securities laws, including the "safe harbour" provisions of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements contained in this news release include statements (i) relating to the Company's normal course issuer bid (including, but not limited to, statements regarding future purchases of common shares under the NCIB, including under the automatic repurchase plan), (ii) that are predictive in nature or that depend upon or refer to future events or conditions, and (iii) that include words such as "intends", "expects", "will" and similar expressions. The forward-looking statements made in this news release are stated as at August 26, 2024, represent the Company's current expectations, estimates and projections regarding future events and are not historical facts. These statements are not a guarantee of future performance and involve assumptions and risks and uncertainties that are difficult to predict. Some of these assumptions and risks and uncertainties are described further in the Company's management's discussion and analysis for the year ended December 31, 2023 under the heading "Forward-looking Statements", in the risk factors set out in the Company's annual information form for the year ended December 31, 2023 under the heading "Risk Factors", and in the Company's interim management's discussion and analysis for the quarter ended June 30, 2024 under the heading "Risk Management", in the other factors detailed in the Company's annual and interim financial statements and in the Company's other filings with Canadian and U.S. securities regulators, which are available for review at www.sedarplus.ca and www.sec.gov, respectively. Actual results may differ materially from those expressed, implied or forecasted in such forward-looking statements and there is no assurance that any common shares will be purchased under the NCIB (including under the automatic repurchase plan).

The Company does not undertake any obligation to update or revise its forward-looking statements to reflect events or circumstances after the date of this news release or to reflect the occurrence of unanticipated events, except as required by law.

About Sun Life
Sun Life is a leading international financial services organization providing asset management, wealth, insurance and health solutions to individual and institutional Clients. Sun Life has operations in a number of markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda. As of June 30, 2024, Sun Life had total assets under management of $1.46 trillion. For more information, please visit www.sunlife.com.  

Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under the ticker symbol SLF.

Note to editors: All figures in Canadian dollars

Media Relations Contact:	Investor Relations Contact:
Kim Race	David Garg
Director	Senior Vice-President, Capital Management
Corporate Communications	and Investor Relations
T. 416-779-4574	T. 416-408-8649
kim.race@sunlife.com	david.garg@sunlife.com

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SOURCE Sun Life Financial Inc.

FAQ

How many shares can Sun Life (SLF) repurchase under its new NCIB?

Sun Life can repurchase up to 15,000,000 common shares under its new NCIB, which represents approximately 2.6% of its outstanding shares as of August 20, 2024.

What is the duration of Sun Life's (SLF) new normal course issuer bid?

Sun Life's new normal course issuer bid (NCIB) will run from August 29, 2024, to August 28, 2025, unless completed earlier or terminated by the company.

How many shares did Sun Life (SLF) repurchase under its prior NCIB?

Under its prior NCIB, which expires on August 28, 2024, Sun Life purchased 10,300,710 common shares at a weighted average price of $69.40 per share.

What is the daily purchase limit for Sun Life (SLF) shares on the TSX under the new NCIB?

Sun Life can purchase up to 527,068 common shares daily on the TSX under the new NCIB, which represents 25% of the average daily trading volume.