Sun Life Reports Second Quarter 2023 Results
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: |
- Underlying net income(1) of
increased$920 million or$112 million 14% from Q2'22(2); underlying ROE(1) was17.7% . - Wealth & asset management underlying net income(1):
, down$419 million .$1 million - Group - Health & Protection underlying net income(1):
, up$360 million or$122 million 51% . - Individual - Protection underlying net income(1):
, up$265 million or$50 million 23% . - Reported net income of
decreased$660 million or$270 million 29% from Q2'22(2); reported ROE(1) was12.7% .
"Sun Life delivered good second quarter results as our diversified set of businesses continued to demonstrate resilience in a challenging economic environment," said Kevin Strain, President and CEO of Sun Life. "Health and protection sales growth was strong, which shows the importance and priority that our Clients continue to place on health and protection services. Providing access to health and health education remains a priority for Sun Life. We're excited about our announcement to acquire Dialogue Health Technologies,
"We're also seeing momentum from many of our recent acquisitions and strategic partnerships. This includes solid Q2 results from DentaQuest, the strong start to our 15-year bancassurance partnership with Dah Sing Bank in
Quarterly results | Year-to-date | ||||
Profitability | Q2'23 | Q2'22(2) | 2023 | 2022(2) | |
Underlying net income ($ millions)(1) | 920 | 808 | 1,815 | 1,528 | |
Reported net income - Common shareholders ($ millions) | 660 | 930 | 1,466 | 1,595 | |
Underlying EPS ($)(1)(3) | 1.57 | 1.38 | 3.09 | 2.61 | |
Reported EPS ($)(3) | 1.12 | 1.58 | 2.49 | 2.72 | |
Underlying return on equity ("ROE")(1) | 17.7 % | 16.7 % | 17.5 % | 15.6 % | |
Reported ROE(1) | 12.7 % | 19.2 % | 14.2 % | 16.3 % | |
Growth | Q2'23 | Q2'22(2) | 2023 | 2022(2) | |
Wealth sales & asset management gross flows ($ millions)(1)(4) | 42,397 | 56,279 | 88,746 | 113,235 | |
Group - Health & Protection sales ($ millions)(1) | 656 | 320 | 1,199 | 710 | |
Individual - Protection sales ($ millions)(1) | 604 | 416 | 1,115 | 825 | |
Assets under management ("AUM") ($ billions)(1) | 1,367 | 1,257 | 1,367 | 1,257 | |
New business Contractual Service Margin ("CSM") ($ millions)(5) | 270 | 189 | 502 | 332 | |
Financial Strength | Q2'23 | As at | |||
LICAT ratios (at period end)(6) | |||||
Sun Life Financial Inc. | 148 % | 142 % | |||
Sun Life Assurance(7) | 139 % | 139 % | |||
Financial leverage ratio (at period end)(2)(8) | 23.3 % | 23.7 % |
______________________ | |
(1) | Represents a non-IFRS financial measure. For more details, see the Non-IFRS Financial Measures section in this document and in the Q2'23 MD&A. |
(2) | 2022 restated results may not be fully representative of our future earnings profile, as we were not managing our asset and liability portfolios under the new standards, IFRS 17 and IFRS 9. For more details, see the heading "Note to Readers: 2022 Restated Results on Adoption of IFRS 17 and IFRS 9" in this document. |
(3) | All earnings per share ("EPS") measures refer to fully diluted EPS, unless otherwise stated. |
(4) | Effective January 1, 2023, |
(5) | New business CSM represents growth from sales activity in the period, including individual protection sales (excluding joint ventures), and defined benefit solutions and segregated fund wealth sales in |
(6) | OSFI's 2023 LICAT Guideline, effective January 1, 2023, specifies that available capital for LICAT purposes includes the Contractual Service Margin. Prior period restatement and resubmissions are not mandated. Pro-forma January 1, 2023 LICAT ratios are disclosed to illustrate transition impact. These pro-forma calculations will not be formally submitted to OSFI. Refer to section F - Financial Strength in the Q2'23 MD&A. |
(7) | Sun Life Assurance Company of |
(8) | Effective January 1, 2023, the calculation for the financial leverage ratio was updated to include the CSM balance (net of taxes) in the denominator. The CSM (net of taxes) was |
Financial and Operational Highlights - Quarterly Comparison (Q2'23 vs. Q2'22)
($ millions) | Q2'23 | |||||
Underlying net income by business type(1)(2): | Sun Life | Asset | Corporate | |||
Wealth & asset management | 419 | 296 | 110 | — | 13 | — |
Group - Health & Protection | 360 | — | 160 | 200 | — | — |
Individual - Protection | 265 | — | 102 | 15 | 144 | 4 |
Corporate expenses & other | (124) | — | — | — | (7) | (117) |
Underlying net income(1) | 920 | 296 | 372 | 215 | 150 | (113) |
Reported net income - Common shareholders | 660 | 248 | 210 | 175 | 122 | (95) |
Change in underlying net income (% year-over-year) | 14 % | nm(3) | 24 % | 60 % | 27 % | nm(3) |
Change in reported net income (% year-over-year) | (29) % | (17) % | (56) % | 17 % | nm(3) | nm(3) |
Wealth sales & asset management gross flows(1)(4) | 42,397 | 37,651 | 3,130 | — | 1,616 | — |
Group - Health & Protection sales(1) | 656 | — | 153 | 484 | 19 | — |
Individual - Protection sales(1) | 604 | — | 154 | — | 450 | — |
Change in wealth sales & asset management gross flows (% year-over-year) | (25) % | (24) % | (6) % | — | (51) % | — |
Change in group sales (% year-over-year) | 105 % | — | 66 % | 127 % | 27 % | — |
Change in individual sales (% year-over-year) | 45 % | — | 22 % | — | 55 % | — |
(1) | Represents a non-IFRS financial measure. For more details, see the Non-IFRS Financial Measures section in this document and in the Q2'23 MD&A. |
(2) | For more information about the business types in Sun Life's business groups, see section A - How We Report Our Results in the Q2'23 MD&A. |
(3) | Not meaningful. |
(4) | Effective January 1, 2023, |
Underlying net income(1) of
- Wealth & asset management(1) down
million: Higher investment income driven by volume growth and an increase in yields was largely offset by lower fee-based earnings in MFS(2), reflecting equity market declines over the past year, as well as higher expenses in$1 Canada . - Group - Health & Protection(1) up
million: Strong performance driven by good premium growth and better disability experience in$122 Canada and theU.S. , as well as a full quarter of DentaQuest contributions. - Individual - Protection(1) up
million: Higher premiums reflecting good sales momentum during the past year in$50 Asia , and improved insurance experience inCanada and theU.S. - Corporate expenses & other(1)
increased net loss driven by higher operating expenses including incentive compensation and an increase in debt financing costs.$(59) million - Higher earnings on surplus reflecting an increase in realized gains and net interest income from higher rates.
- An increase of
from the impacts of foreign exchange translation.$27 million
Reported net income of
- Market-related impacts primarily reflecting interest rates and real estate investments(3);
- Prior year gain on the sale-leaseback of the
Wellesley office in theU.S. ; and - Fair value changes in management's ownership of MFS shares; partially offset by
- The increase in underlying net income.
____________________ | |
(1) | Refer to section C - Profitability in the Q2'23 MD&A for more information on notable items attributable to reported & underlying net income items and the Non-IFRS Financial Measures in this document for a reconciliation between reported net income and underlying net income. For more information about the business types in Sun Life's operating segments/business groups, see section A - How We Report Our Results in the Q2'23 MD&A. |
(2) | MFS Investment Management ("MFS"). |
(3) | Real estate investments comprises real estate experience and changes in fair value of real estate investments held in surplus. Real estate experience reflects the difference between the actual value of real estate investments compared to management's longer-term expected returns supporting insurance contract liabilities ("real estate experience"). |
Asset Management: A global leader in both public and alternative asset classes through MFS and SLC Management
Asset Management underlying net income of
- MFS up
(down$2 million US million): Higher net investment income and the impacts from foreign exchange translation was largely offset by lower average net assets ("ANA") reflecting equity market declines over the past year and net outflows. The MFS pre-tax net operating profit margin(1) was$10 37% for Q2'23, compared to36% in the prior year. - SLC Management down
million: Fee-related earnings(1) increased$1 19% driven by higher AUM, reflecting strong capital raising and deployment across the platform and the AAM acquisition(2). Fee-related earnings margin(1) for Q2'23 was24% compared to23% in the prior year. Underlying net income was in line with prior year, with the increase in fee-related earnings offset by higher earned operating income in the prior year that did not repeat.
Reported net income of
Foreign exchange translation led to an increase of
Asset Management ended Q2'23 with
Our Asset Management businesses continue to maintain a strong focus on sustainable investing. During the second quarter, BentallGreenOak ("BGO") received Gold Recognition in the 2023 Green Lease Leaders program organized by the Institute for Market Transformation and the
Advisors Asset Management, Inc. ("AAM"), a
- Wealth & asset management in line with prior year: Increase in investment income driven by higher volume and yields, largely offset by higher expenses.
- Group - Health & Protection up
million: Better disability experience reflecting higher margins, lower claims volumes, and shorter claims durations.$48 - Individual - Protection up
million: Improved insurance experience as well as higher investment contributions.$25
Reported net income of
- Wealth sales & asset management gross flows of
were down$3 billion 6% , reflecting lower defined benefit solution sales partially offset by higher defined contribution sales in Group Retirement Services ("GRS"). - Group sales of
were up$153 million 66% , reflecting higher large case sales. - Individual sales of
were up$154 million 22% , reflecting higher participating whole life insurance sales.
We continue to deliver on our strategy of strengthening and expanding our health business. We provide Canadians with the support they need to take action throughout their health journey, helping to prevent and mitigate health risks and live healthier lives. During the second quarter, we launched Lumino Health Pharmacy, a new online pharmacy app, which will help Clients consult a knowledgeable pharmacist by chat or a phone call and have medications delivered to their door free of charge. This service helps Clients to keep track of their medications, usage, refills, and sends them important notifications regarding their prescriptions.
In July, we entered into an agreement to acquire Dialogue Health Technologies Inc. ("Dialogue"),
___________________________ | |
(1) | Represents a non-IFRS financial measure. For more details, see the Non-IFRS Financial Measures section in this document and in the Q2'23 MD&A. |
(2) | On February 1, 2023, we completed the acquisition of a majority stake interest in Advisors Asset Management, Inc. ("the AAM acquisition"), a leading independent |
(3) | JOLT Energy ("JOLT") is a pioneering, international Charge Point Operator. JOLT's smart electric vehicle charging stations bring ultra-fast charging to dense urban areas. |
(4) | In-scope assets comprise approximately |
(5) | BGO Industrial Real Estate Income Trust ("BGO IREIT"). |
(6) | Compared to the prior year. |
- Group - Health & Protection up
US million: Strong performance across all businesses including good premium growth, contribution from the DentaQuest acquisition, higher investment contributions and favourable experience. Experience in the quarter included higher medical stop-loss margins and favourable group disability.$46 - Individual - Protection up
US million: The inclusion of the$12 UK payout annuity business(1) and insurance experience. Mortality experience in the quarter improved compared to the prior year. - Higher earnings on surplus reflecting an increase in net interest income from higher rates.
Reported net income of
Foreign exchange translation led to an increase of
We continue to take action to support our strategic priority to help Clients access the health care and coverage they need. In our Dental business, we expanded the Advantage Dental+ care practices with two new offices in
We also announced a relationship with
- Wealth & asset management down
million: Lower fee-based earnings reflecting lower AUM in$2 the Philippines . - Individual - Protection up
million: Higher premiums reflecting good sales momentum during the past year, and improved expenses and lapse experience in our joint ventures. This was partially offset by less favourable morbidity experience in$38 Hong Kong . - Regional office expenses & other
increased net loss: In line with the prior year.$(4) million
Reported net income of
Foreign exchange translation led to an increase of
- Wealth sales & asset management gross flows of
were down$2 billion 51% , primarily reflecting lower money market fund sales inthe Philippines . - Individual sales of
were up$450 million 55% , driven by higher sales inHong Kong, China andIndia .
New business CSM of
We continue to make progress on our strategic priorities of establishing digital leadership and leveraging distribution excellence. In
We strive to enhance Clients' experience and make it easier for them to do business with us. During the second quarter, we opened the Sun Gateway prestige Client center ("The Center") in
___________________ | |
(1) | On April 3, 2023, we completed the sale of SLF of Canada |
(2) | Assumption changes and management actions ("ACMA"). |
(3) | Dental sales include sales from DentaQuest, acquired on June 1, 2022. |
(4) | Compared to the prior year. |
Corporate
Corporate underlying net loss was
Reported net loss was
Sun Life was recognized as one of Corporate Knights' Global 100 Most Sustainable Corporations in the World for the 14th consecutive year and was the top ranked insurance company globally. We announced our second sustainability bond offering, issuing
Earnings Conference Call
The Company's Q2'23 financial results will be reviewed at a conference call on Wednesday, August 9, 2023, at 10:00 a.m. ET. Visit www.sunlife.com/QuarterlyReports 10 minutes prior to the start of the event to access the call through either the webcast or conference call options. Individuals participating in the call in a listen-only mode are encouraged to connect via our webcast. Following the call, the webcast and presentation will be archived and made available on the Company's website, www.sunlife.com, until the Q2'24 period end.
Media Relations Contact: | Investor Relations Contact: |
Krista Wilson | David Garg |
Director, Corporate Communications | Senior Vice-President, Capital Management and Investor Relations |
Tel: 226-751-2391 | Tel: 416-408-8649 |
Note to Readers: 2022 Restated Results on Adoption of IFRS 17 and IFRS 9
2022 results have been restated for the adoption of IFRS 17 and the related IFRS 9 classification overlay ("the new standards"). The restated results may not be fully representative of our future earnings profile, as we were not managing our asset and liability portfolios under the new standards. The majority of the actions taken to re-balance asset portfolios and transition asset-liability management execution to an IFRS 17 basis occurred in Q1'23. Accordingly, analysis based on 2022 comparative results may not necessarily be indicative of future trends, and should be interpreted with this context. Using sensitivities to analyze the outlook for market risk and related impacts (e.g., interest rate sensitivities) will be more representative starting with the sensitivities disclosed for Q1'23 and onward in section I - Risk Management in each quarter's respective MD&A document. Certain 2022 restated results and 2023 interim results in the Drivers of Earnings and CSM Movement Analysis were refined to more accurately reflect how management views the business. As these results are not audited, or have not yet been audited, they may still be subject to change.
Non-IFRS Financial Measures
We report certain financial information using non-IFRS financial measures, as we believe that these measures provide information that is useful to investors in understanding our performance and facilitate a comparison of our quarterly and full year results from period to period. These non-IFRS financial measures do not have any standardized meaning and may not be comparable with similar measures used by other companies. For certain non-IFRS financial measures, there are no directly comparable amounts under IFRS. These non-IFRS financial measures should not be viewed in isolation from or as alternatives to measures of financial performance determined in accordance with IFRS. Additional information concerning non-IFRS financial measures and, if applicable, reconciliations to the closest IFRS measures are available in the Q2'23 MD&A under the heading N - Non-IFRS Financial Measures and the Supplementary Financial Information packages that are available on www.sunlife.com under Investors – Financial results and reports.
1. Underlying Net Income and Underlying EPS
Underlying net income is a non-IFRS financial measure that assists in understanding Sun Life's business performance by making certain adjustments to IFRS income. Underlying net income, along with common shareholders' net income (Reported net income), is used as a basis for management planning, and is also a key measure in our employee incentive compensation programs. This measure reflects management's view of the underlying business performance of the company and long-term earnings potential. For example, due to the longer term nature of our individual protection businesses, market movements related to interest rates, equity markets and investment properties can have a significant impact on reported net income in the reporting period. However, these impacts are not necessarily realized, and may never be realized, if markets move in the opposite direction in subsequent periods or in the case of interest rates, the fixed income investment is held to maturity.
Underlying net income removes the impact of the following items from reported net income:
- Market-related impacts reflecting the after-tax difference in actual versus expected market movements;
- Assumptions changes and management actions;
- Other adjustments:
i. Management's ownership of MFS shares;
ii. Acquisition, integration, and restructuring;
iii. Intangible asset amortization;
iv. Other items that are unusual or exceptional in nature.
For additional information about the adjustments removed from reported net income to arrive at underlying net income, refer to section N - Non-IFRS Financial Measures - 2 - Underlying Net Income and Underlying EPS in the Q2'23 MD&A.
The following table sets out the post-tax amounts that were excluded from our underlying net income (loss) and underlying EPS and provides a reconciliation to our reported net income and EPS based on IFRS.
Reconciliations of Select Net Income Measures | Quarterly results | Year-to-date | ||
($ millions, after-tax) | Q2'23 | Q2'22(1) | 2023 | 2022(1) |
Underlying net income | 920 | 808 | 1,815 | 1,528 |
Market-related impacts(1) | ||||
Equity market impacts | (13) | (100) | — | (129) |
Interest rate impacts(2) | (99) | 156 | (88) | 115 |
Impacts of changes in the fair value of investment properties (real estate experience) | (108) | 62 | (196) | 130 |
Add: Market-related impacts | (220) | 118 | (284) | 116 |
Add: Assumption changes and management actions | 7 | (22) | 2 | (49) |
Other adjustments | ||||
Management's ownership of MFS shares | (1) | 42 | 16 | 51 |
Acquisition, integration and restructuring(3)(4)(5) | (20) | (73) | (24) | (94) |
Intangible asset amortization | (26) | (19) | (59) | (33) |
Other(6) | — | 76 | — | 76 |
Add: Total of other adjustments | (47) | 26 | (67) | — |
Reported net income - Common shareholders | 660 | 930 | 1,466 | 1,595 |
Underlying EPS (diluted) ($) | 1.57 | 1.38 | 3.09 | 2.61 |
Add: Market-related impacts ($) | (0.38) | 0.19 | (0.48) | 0.20 |
Assumption changes and management actions ($) | 0.01 | (0.04) | — | (0.09) |
Management's ownership of MFS shares ($) | — | 0.07 | 0.03 | 0.08 |
Acquisition, integration and restructuring ($) | (0.03) | (0.12) | (0.04) | (0.16) |
Intangible asset amortization ($) | (0.05) | (0.03) | (0.11) | (0.06) |
Other ($) | — | 0.13 | — | 0.13 |
Impact of convertible securities on diluted EPS ($) | — | — | — | 0.01 |
Reported EPS (diluted) ($) | 1.12 | 1.58 | 2.49 | 2.72 |
(1) | 2022 restated results may not be fully representative of our future earnings profile, as we were not managing our asset and liability portfolios under the new standards, IFRS 17 and IFRS 9. For more details, see the heading "Note to Readers: 2022 Restated Results on Adoption of IFRS 17 and IFRS 9" in this document. |
(2) | Our results are sensitive to long rates given the nature of our business and to non-parallel yield curve movements (for example flattening, inversion, steepening, etc.). |
(3) | Amounts relate to acquisition costs for our SLC Management affiliates, BentallGreenOak, InfraRed Capital Partners, Crescent Capital Group LP and Advisors Asset Management, Inc, which include the unwinding of the discount for Other financial liabilities of |
(4) | Includes acquisition and integration costs associated with DentaQuest, acquired on June 1, 2022. |
(5) | Includes a |
(6) | Related to a Q2'22 gain on the sale-leaseback of the |
The following table shows the pre-tax amount of underlying net income adjustments:
Quarterly results | Year-to-date | |||
($ millions) | Q2'23 | Q2'22(1) | 2023 | 2022(1) |
Underlying net income (after-tax) | 920 | 808 | 1,815 | 1,528 |
Underlying net income adjustments (pre-tax): | ||||
Add: Market-related impacts(1) | (298) | 282 | (397) | 454 |
Assumption changes and management actions(2) | 11 | (30) | 6 | (60) |
Other adjustments | (89) | 29 | (99) | — |
Total underlying net income adjustments (pre-tax) | (376) | 281 | (490) | 394 |
Add: Taxes related to underlying net income adjustments(3) | 116 | (159) | 141 | (327) |
Reported net income - Common shareholders (after-tax) | 660 | 930 | 1,466 | 1,595 |
(1) | 2022 restated results may not be fully representative of our future earnings profile, as we were not managing our asset and liability portfolios under the new standards, IFRS 17 and IFRS 9. For more details, see the heading "Note to Readers: 2022 Restated Results on Adoption of IFRS 17 and IFRS 9" in this document. |
(2) | In this document, the reported net income impact of ACMA is shown in aggregate for Net insurance service result and Net investment result, and excludes amounts attributable to participating policyholders. In contrast, Note 7.B.iv of the Consolidated Financial Statements for the period ended June 30, 2023 shows the net income impacts of method and assumption changes separately in Net insurance service result and Net investment result, and includes amounts attributable to participating policyholders. |
(3) | Taxes related to underlying net income adjustments may vary from the expected effective tax rate range reflecting the mix of business based on the Company's international operations. |
2. Additional Non-IFRS Financial Measures
Management also uses the following non-IFRS financial measures, and a full listing is available in section N - Non-IFRS Financial Measures in the Q2'23 MD&A.
Assets under management. AUM is a non-IFRS financial measure that indicates the size of our Company's assets across asset management, wealth, and insurance. There is no standardized financial measure under IFRS. In addition to the most directly comparable IFRS measures, which are the balance of General funds and Segregated funds on our Statements of Financial Position, AUM also includes Third-party AUM and Consolidation adjustments. For additional information about Third-party AUM, refer to sections D - Growth - 2 - Assets Under Management and N - Non-IFRS Financial Measures in the Q2'23 MD&A.
Quarterly results | ||
($ millions) | Q2'23 | Q2'22 |
Assets under management | ||
General fund assets | 196,575 | 191,786 |
Segregated funds | 123,366 | 120,098 |
Third-party AUM(1)(2) | 1,084,437 | 983,608 |
Consolidation adjustments(1)(2) | (37,536) | (38,054) |
Total assets under management | 1,366,842 | 1,257,438 |
(1) | Represents a non-IFRS financial measure. For more details, see section N - Non-IFRS Financial Measures in the Q2'23 MD&A. |
(2) | Effective January 1, 2023, "Other AUM" was renamed to "Third-party AUM", and "Consolidation adjustments" is presented separately as consolidation adjustments apply to all components of total AUM. |
Cash and other liquid assets. This measure is comprised of cash, cash equivalents, short-term investments, and publicly traded securities, net of loans related to acquisitions that are held at SLF Inc. (the ultimate parent company), and its wholly owned holding companies. This measure is a key consideration of available funds for capital re-deployment to support business growth.
($ millions) | As at June 30, 2023 | As at December 31, 2022 |
Cash and other liquid assets (held at SLF Inc. and its wholly owned holding companies): | ||
Cash, cash equivalents & short-term securities | 1,281 | 423 |
Debt securities(1) | 1,370 | 1,408 |
Equity securities(2) | 100 | 102 |
Sub-total | 2,751 | 1,933 |
Less: Loans related to acquisitions (held at SLF Inc. and its wholly owned holding companies) | (704) | (883) |
Cash and other liquid assets (held at SLF Inc. and its wholly owned holding companies) | 2,047 | 1,050 |
(1) Includes publicly traded bonds. |
(2) Includes ETF Investments. |
3. Reconciliations of Select Non-IFRS Financial Measures
Underlying Net Income to Reported Net Income Reconciliation - Pre-tax by Business Group
Q2'23 | ||||||
($ millions) | Asset Management | Canada | U.S. | Corporate | Total | |
Underlying net income (loss) | 296 | 372 | 215 | 150 | (113) | 920 |
Add: Market-related impacts (pre-tax)(1) | (40) | (212) | (17) | (30) | 1 | (298) |
ACMA (pre-tax) | — | (8) | 29 | (10) | — | 11 |
Other adjustments (pre-tax)(1) | (29) | (1) | (65) | (7) | 13 | (89) |
Tax expense (benefit) on above items | 21 | 59 | 13 | 19 | 4 | 116 |
Reported net income (loss) - Common shareholders | 248 | 210 | 175 | 122 | (95) | 660 |
Q2'22(2) | ||||||
Underlying net income (loss) | 295 | 299 | 134 | 118 | (38) | 808 |
Add: Market-related impacts (pre-tax)(1)(2) | (16) | 360 | 2 | (97) | 33 | 282 |
ACMA (pre-tax) | — | (30) | — | — | — | (30) |
Other adjustments (pre-tax)(1) | 21 | (4) | 19 | (8) | 1 | 29 |
Tax expense (benefit) on above items | (2) | (149) | (6) | (6) | 4 | (159) |
Reported net income (loss) - Common shareholders | 298 | 476 | 149 | 7 | — | 930 |
(1) | For a breakdown of this adjustment made to arrive at a non-IFRS financial measure, see the heading Underlying Net Income and Underlying EPS. |
(2) | 2022 restated results may not be fully representative of our future earnings profile, as we were not managing our asset and liability portfolios under the new standards, IFRS 17 and IFRS 9. For more details, see the heading "Note to Readers: 2022 Restated Results on Adoption of IFRS 17 and IFRS 9" in this document. |
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 document include statements (i) relating to our strategies; (ii) relating to the use of proceeds of our sustainability bond offering; (iii) relating to our intention to acquire Dialogue; (iv) relating to our growth initiatives and other business objectives; (v) relating to our targets and commitments; (vi) that are predictive in nature or that depend upon or refer to future events or conditions; and (vii) that include words such as "achieve", "aim", "ambition", "anticipate", "aspiration", "assumption", "believe", "could", "estimate", "expect", "goal", "initiatives", "intend", "may", "objective", "outlook", "plan", "project", "seek", "should", "strategy", "strive", "target", "will", and similar expressions. Forward-looking statements include the information concerning our possible or assumed future results of operations. These statements represent our current expectations, estimates, and projections regarding future events and are not historical facts, and remain subject to change.
Forward-looking statements are not a guarantee of future performance and involve risks and uncertainties that are difficult to predict. Future results and shareholder value may differ materially from those expressed in these forward-looking statements due to, among other factors, the matters set out in the Q2'23 MD&A under the headings C - Profitability - 5 - Income taxes, F - Financial Strength and I - Risk Management and in SLF Inc.'s 2022 AIF under the heading Risk Factors, and the factors detailed in SLF Inc.'s other filings with Canadian and
Important risk factors that could cause our assumptions and estimates, and expectations and projections to be inaccurate and our actual results or events to differ materially from those expressed in or implied by the forward-looking statements contained in this document, are set out below. The realization of our forward-looking statements essentially depends on our business performance which, in turn, is subject to many risks. Factors that could cause actual results to differ materially from expectations include, but are not limited to: market risks - related to the performance of equity markets; changes or volatility in interest rates or credit spreads or swap spreads; real estate investments; fluctuations in foreign currency exchange rates; and inflation; insurance risks - related to mortality experience, morbidity experience and longevity; policyholder behaviour; product design and pricing; the impact of higher-than-expected future expenses; and the availability, cost and effectiveness of reinsurance; credit risks - related to issuers of securities held in our investment portfolio, debtors, structured securities, reinsurers, counterparties, other financial institutions and other entities; business and strategic risks - related to global economic and political conditions; the design and implementation of business strategies; changes in distribution channels or Client behaviour including risks relating to market conduct by intermediaries and agents; the impact of competition; the performance of our investments and investment portfolios managed for Clients such as segregated and mutual funds; shifts in investing trends and Client preference towards products that differ from our investment products and strategies; changes in the legal or regulatory environment, including capital requirements and tax laws; the environment, environmental laws and regulations; operational risks - related to breaches or failure of information system security and privacy, including cyber-attacks; our ability to attract and retain employees; legal, regulatory compliance and market conduct, including the impact of regulatory inquiries and investigations; the execution and integration of mergers, acquisitions, strategic investments and divestitures; our information technology infrastructure; a failure of information systems and Internet-enabled technology; dependence on third-party relationships, including outsourcing arrangements; business continuity; model errors; information management; liquidity risks - the possibility that we will not be able to fund all cash outflow commitments as they fall due; and other risks - changes to accounting standards in the jurisdictions in which we operate; risks associated with our international operations, including our joint ventures; market conditions that affect our capital position or ability to raise capital; downgrades in financial strength or credit ratings; and tax matters, including estimates and judgements used in calculating taxes.
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 document 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
Sun Life Financial Inc. trades on the
View original content to download multimedia:https://www.prnewswire.com/news-releases/sun-life-reports-second-quarter-2023-results-301896276.html
SOURCE Sun Life Financial Inc.