Sun Life Reports Third Quarter 2023 Results
- Sun Life's underlying net income decreased by 2% to $930 million, with an underlying return on equity (ROE) of 17.7% for Q3 2023.
- Reported net income increased to $871 million, with a reported ROE of 16.6%.
- Sun Life's President and CEO, Kevin Strain, highlighted strong performance in Canada, growth in SLC Management and Asia, and strategic partnerships in virtual health and wellness.
- The increase in common share dividend from $0.75 to $0.78 per share indicates positive financial performance.
- None.
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
$930 million $19 million 2% from Q3'22(2); underlying ROE(1) was17.7% .- Wealth & asset management underlying net income(1):
$457 million $38 million 9% . - Group - Health & Protection underlying net income(1):
$285 million $4 million 1% . - Individual - Protection underlying net income(1):
$297 million $8 million 3% . - Corporate expenses & other(1):
$(109) million $(53) million 95% .
- Wealth & asset management underlying net income(1):
- Reported net income of
$871 million $760 million 16.6% . - Increase to common share dividend from
$0.75 $0.78
"Sun Life delivered good results and we continue to benefit from our diversified business mix with strong net income in
"We completed our acquisition of Dialogue,
Quarterly results | Year-to-date | ||||
Profitability | Q3'23 | Q3'22(2) | 2023 | 2022(2) | |
Underlying net income ($ millions)(1) | 930 | 949 | 2,745 | 2,477 | |
Reported net income - Common shareholders ($ millions) | 871 | 111 | 2,337 | 1,706 | |
Underlying EPS ($)(1)(3) | 1.59 | 1.62 | 4.68 | 4.23 | |
Reported EPS ($)(3) | 1.48 | 0.19 | 3.97 | 2.91 | |
Underlying return on equity ("ROE")(1) | 17.7 % | 19.4 % | 17.6 % | 17.1 % | |
Reported ROE(1) | 16.6 % | 2.3 % | 14.9 % | 11.8 % | |
Growth | Q3'23 | Q3'22(2) | 2023 | 2022(2) | |
Wealth sales & asset management gross flows ($ millions)(1)(4) | 39,324 | 42,146 | 128,070 | 155,381 | |
Group - Health & Protection sales ($ millions)(1) | 374 | 499 | 1,573 | 1,209 | |
Individual - Protection sales ($ millions)(1) | 669 | 444 | 1,784 | 1,269 | |
Assets under management ("AUM") ($ billions)(1) | 1,340 | 1,269 | 1,340 | 1,269 | |
New business Contractual Service Margin ("CSM") ($ millions)(1) | 370 | 177 | 872 | 509 | |
Financial Strength | Q3'23 | As at | |||
LICAT ratios (at period end)(5) | |||||
Sun Life Financial Inc. | 147 % | 142 % | |||
Sun Life Assurance(6) | 138 % | 139 % | |||
Financial leverage ratio (at period end)(2)(7) | 21.8 % | 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 Q3'23 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) | 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 Q3'23 MD&A. |
(6) | Sun Life Assurance Company of |
(7) | 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 (Q3'23 vs. Q3'22)
($ millions) | Q3'23 | |||||
Underlying net income by business type(1)(2): | Sun Life | Asset | Corporate | |||
Wealth & asset management | 457 | 330 | 116 | — | 11 | — |
Group - Health & Protection | 285 | — | 136 | 149 | — | — |
Individual - Protection | 297 | — | 86 | 36 | 175 | — |
Corporate expenses & other | (109) | — | — | — | (20) | (89) |
Underlying net income(1) | 930 | 330 | 338 | 185 | 166 | (89) |
Reported net income - Common shareholders | 871 | 268 | 365 | 132 | 211 | (105) |
Change in underlying net income (% year-over-year) | (2) % | 11 % | 15 % | (19) % | 8 % | nm(3) |
Change in reported net income (% year-over-year) | nm(3) | 23 % | nm(3) | 6 % | nm(3) | nm(3) |
Wealth sales & asset management gross flows(1)(4) | 39,324 | 34,266 | 3,395 | — | 1,663 | — |
Group - Health & Protection sales(1) | 374 | — | 119 | 239 | 16 | — |
Individual - Protection sales(1) | 669 | — | 148 | — | 521 | — |
Change in wealth sales & asset management gross flows (% year-over-year) | (7) % | (6) % | 7 % | — | (34) % | — |
Change in group sales (% year-over-year) | (25) % | — | 4 % | (35) % | (16) % | — |
Change in individual sales (% year-over-year) | 51 % | — | 24 % | — | 60 % | — |
(1) | Represents a non-IFRS financial measure. For more details, see the Non-IFRS Financial Measures section in this document and in the Q3'23 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 Q3'23 MD&A. |
(3) | Not meaningful. |
(4) | Effective January 1, 2023, |
Underlying net income(1) of
- Wealth & asset management(1) up
$38 - Group - Health & Protection(1) up
$4 U.S. businesses and better disability experience inCanada , largely offset by health and protection experience in theU.S. , and lower fee-related earnings inCanada . - Individual - Protection(1) down
$8 UK (2), and lower net investment results in theU.S. , partially offset by business growth reflecting good sales momentum during the past year inAsia . - Corporate expenses & other(1)
$(53) million - Higher expenses across business types were driven by volume growth, continued investments in the business, and higher incentive compensation.
- Favourable foreign currency translation led to an increase of
$16 million
Reported net income of
- Favourable market-related impacts primarily reflecting interest rates partially offset by real estate experience(3);
- A
$170 million UK (2) and a higher increase in SLC Management's acquisition-related liabilities(4) in the prior year; and - ACMA(5) impacts; partially offset by
- Fair value changes in management's ownership of MFS(6) shares.
___________ | |
(1) | Refer to section C - Profitability in the Q3'23 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 Q3'23 MD&A. |
(2) | On April 3, 2023 we completed the sale of SLF of Canada |
(3) | 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"). |
(4) | Reflects the changes in estimated future payments for acquisition-related contingent considerations and options to purchase remaining ownership interests of SLC Management affiliates. |
(5) | Assumption changes and management actions ("ACMA"). |
(6) | MFS Investment Management ("MFS"). |
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
$4 million US million): Higher average net assets ("ANA"), an increase in net investment income, favourable foreign exchange translation and higher variable compensation expenses. The MFS pre-tax net operating profit margin(1) was$5 41% for Q3'23, consistent with the prior year. - SLC Management up
$28 17% driven by higher AUM, reflecting strong capital raising and deployment across the platform and the AAM acquisition(2). Fee-related earnings margin(1) for Q3'23 of24% was consistent with the prior year. The increase in underlying net income was driven by the higher fee-related earnings, a favourable tax rate(3), and higher retention expenses in the prior year that did not repeat.
Reported net income of
Foreign exchange translation led to an increase of
Asset Management ended Q3'23 with
MFS maintained good momentum in growing the defined contribution business. On a year-to-date basis, defined contribution gross sales are up
In October, SLC Management entered into a strategic partnership with Scotiabank to distribute alternative investment capabilities to the Canadian retail market through Scotia Global Wealth Management. This will allow SLC Management to extend alternative investment capabilities to new Clients and expands the roster of investment solutions Scotiabank can offer the Canadian wealth management market. This strategic partnership, coupled with the recent acquisition of Advisors Asset Management, Inc. ("AAM"), positions SLC Management to meet the growing demand for alternative assets among High-Net-Worth ("HNW") investors. AAM also announced it will distribute Crescent Private BDC, a non-traded closed-end fund launched by Crescent Capital Group LP. This is the second collaboration between AAM and other SLC Management affiliates since its acquisition in Q1, highlighting the strategic benefit of adding this distribution channel.
- Wealth & asset management up
$14 - Group - Health & Protection up
$34 - Individual - Protection down
$3 - Higher expenses across all businesses were driven by volume growth, continued investments in the business, and higher incentive compensation.
Reported net income of
- Wealth sales & asset management gross flows of
$3 billion 7% , driven by higher Individual Wealth sales, primarily from mutual funds, partially offset by lower defined contribution sales in Group Retirement Services ("GRS"). - Group - Health & Protection sales of
$119 million 4% , reflecting higher health sales. - Individual - Protection sales of
$148 million 24% , reflecting higher participating whole life insurance sales.
We continue to execute on our strategy of helping Clients access the care they need to prevent and mitigate health risks and live healthier lives. In Q3, Sun Life was selected to move forward in the final stages of contract negotiations with the Government of
________ | |
(1) | Represents a non-IFRS financial measure. For more details, see the Non-IFRS Financial Measures section in this document and in the Q3'23 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) | Underlying net income includes favourable adjustments related to tax filings. |
(4) | Reflects the changes in estimated future payments for acquisition-related contingent considerations and options to purchase remaining ownership interests of SLC Management affiliates. |
(5) | Compared to the prior year. |
In support of our focus on inclusive workplace benefits, we are making it easier for plan members to understand and access culturally relevant covered health expenses under the standard Personal Spending Accounts ("PSA"). For example, we created a new Indigenous Health category which outlines and creates awareness that Sun Life provides coverage for traditional medicines, fees and supplies for Indigenous ceremonies, and more under the PSA. We also expanded our partnership with Spirit North, a national charitable organization, committing
- Group - Health & Protection down
US million: Lower Dental results as strong revenue growth was more than offset by the impact of Medicaid redeterminations following the end of the Public Health Emergency and investments in the Advantage Dental+ business. In Group Benefits, strong revenue growth was largely offset by less favourable morbidity experience.$24 - Individual - Protection down
US million: The inclusion of the$9 UK payout annuity business(1) was more than offset by lower net investment results.
Reported net income of
Foreign exchange translation led to an increase of
As a leader in health and benefits, we are helping Clients get access to the right care at the right time to live healthier lives. In Q3, we established a new preferred partnership with OptiMed, a
We extended our partnership with Teledentistry.com to include DentaQuest members. The service offers members 24/7 virtual access to dental providers, making it easier to get dental care and advice digitally. It is expected to be available to Medicaid and commercial dental plan members in 20 states by the end of 2023, increasing access to oral health care for approximately 3.5 million members in those states.
- Wealth & asset management down
$8 the Philippines . - Individual - Protection up
$39 - Regional office expenses & other
$(18) million
Reported net income of
Foreign exchange translation led to an increase of
- Wealth sales & asset management gross flows of
$2 billion 34% , primarily reflecting lower money market fund sales inthe Philippines . - Individual sales of
$521 million 60% , driven by higher sales inHong Kong reflecting increased demand as pandemic-related travel restrictions were lifted in early 2023, and in International reflecting large case sales, partially offset by lower sales inVietnam reflecting market conditions.
New business CSM of
We continue to execute on our growth strategy through strategic partnerships and investments. We launched our 15-year exclusive bancassurance partnership with Dah Sing Bank in
________ | |
(1) | On April 3, 2023, we completed the sale of SLF of Canada |
(2) | Compared to the prior year. |
(3) | According to Insurance Authority's Provisional Statistics for Long Term Business 2021-2023, Bowtie ranked first in number of new individual paid policies through direct channel in |
Demonstrating our focus on adopting prudent financial practices that protect our Clients while strengthening our risk management capabilities, Sun Life Hong Kong received approval from the Hong Kong Insurance Authority for the early adoption of the Risk-Based Capital ("RBC") regime, effective end of June 2023. Sun Life Hong Kong is among the few insurers in
Corporate
Corporate underlying net loss was
Reported net loss was
_______ | |
(1) | On April 3, 2023 we completed the sale of SLF of Canada |
(2) | In Q3'22, we recognized an impairment charge of |
Earnings Conference Call
The Company's Q3'23 financial results will be reviewed at a conference call on Tuesday, November 14, 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 Q3'24 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 |
krista.wilson@sunlife.com | david.garg@sunlife.com |
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 Q3'23 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 Q3'23 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) | Q3'23 | Q3'22(1) | 2023 | 2022(1) | |||||
Underlying net income | 930 | 949 | 2,745 | 2,477 | |||||
Market-related impacts(1) | |||||||||
Equity market impacts | (21) | (36) | (21) | (165) | |||||
Interest rate impacts(2) | 127 | (338) | 39 | (223) | |||||
Impacts of changes in the fair value of investment properties (real estate experience) | (83) | 13 | (279) | 143 | |||||
Add: | Market-related impacts | 23 | (361) | (261) | (245) | ||||
Add: | Assumption changes and management actions | 35 | (131) | 37 | (180) | ||||
Other adjustments | |||||||||
Management's ownership of MFS shares | 7 | 37 | 23 | 88 | |||||
Acquisition, integration and restructuring(3)(4)(5)(6)(7) | (89) | (312) | (113) | (406) | |||||
Intangible asset amortization | (35) | (23) | (94) | (56) | |||||
Other(8) | — | (48) | — | 28 | |||||
Add: | Total of other adjustments | (117) | (346) | (184) | (346) | ||||
Reported net income - Common shareholders | 871 | 111 | 2,337 | 1,706 | |||||
Underlying EPS (diluted) ($) | 1.59 | 1.62 | 4.68 | 4.23 | |||||
Add: | Market-related impacts ($) | 0.04 | (0.62) | (0.44) | (0.42) | ||||
Assumption changes and management actions ($) | 0.06 | (0.22) | 0.06 | (0.31) | |||||
Management's ownership of MFS shares ($) | 0.01 | 0.06 | 0.04 | 0.15 | |||||
Acquisition, integration and restructuring ($) | (0.16) | (0.53) | (0.20) | (0.70) | |||||
Intangible asset amortization ($) | (0.06) | (0.04) | (0.17) | (0.10) | |||||
Other ($) | — | (0.08) | — | 0.05 | |||||
Impact of convertible securities on diluted EPS ($) | — | — | — | 0.01 | |||||
Reported EPS (diluted) ($) | 1.48 | 0.19 | 3.97 | 2.91 | |||||
(1) | 2022 restated results may not be fully representative of our future earnings profile, as we were not managing our asset and liability portfolios under the new standards, IFRS 17 and IFRS 9. For more details, see the heading "Note to Readers: 2022 Restated Results on Adoption of IFRS 17 and IFRS 9" in this document. |
(2) | Our results are sensitive to long term interest rates given the nature of our business and to non-parallel yield curve movements (for example flattening, inversion, steepening, etc.). |
(3) | Amounts relate to acquisition costs for our SLC Management affiliates, BentallGreenOak, InfraRed Capital Partners, Crescent Capital Group LP and Advisors Asset Management, Inc, which include the unwinding of the discount for Other financial liabilities of |
(4) | Q3'23 reflects the changes in estimated future payments for acquisition-related contingent considerations and options to purchase remaining ownership interests of SLC Management affiliates of |
(5) | Includes acquisition and integration costs associated with DentaQuest, acquired on June 1, 2022. |
(6) | Includes a |
(7) | Q3'22 reflects an impairment charge of |
(8) | Includes a charge of |
The following table shows the pre-tax amount of underlying net income adjustments:
Quarterly results | Year-to-date | ||||
($ millions) | Q3'23 | Q3'22(1) | 2023 | 2022(1) | |
Underlying net income (after-tax) | 930 | 949 | 2,745 | 2,477 | |
Underlying net income adjustments (pre-tax): | |||||
Add: Market-related impacts(1) | 107 | (400) | (290) | 54 | |
Assumption changes and management actions(2) | 41 | (153) | 47 | (213) | |
Other adjustments | (156) | (385) | (255) | (385) | |
Total underlying net income adjustments (pre-tax) | (8) | (938) | (498) | (544) | |
Add: Taxes related to underlying net income adjustments | (51) | 100 | 90 | (227) | |
Reported net income - Common shareholders (after-tax) | 871 | 111 | 2,337 | 1,706 | |
(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 September 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. |
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 and other tax-related adjustments.
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 Q3'23 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. 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. For additional information about Third-party AUM, refer to sections D - Growth - 2 - Assets Under Management and N - Non-IFRS Financial Measures in the Q3'23 MD&A.
Quarterly results | ||
($ millions) | Q3'23 | Q3'22 |
Assets under management | ||
General fund assets | 193,858 | 198,181 |
Segregated funds | 119,988 | 118,564 |
Third-party AUM(1) | 1,063,075 | 991,349 |
Consolidation adjustments(1) | (36,780) | (38,725) |
Total assets under management | 1,340,141 | 1,269,369 |
(1) Represents a non-IFRS financial measure. For more details, see section N - Non-IFRS Financial Measures in the Q3'23 MD&A. |
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 September 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 | 533 | 423 |
Debt securities(1) | 1,310 | 1,408 |
Equity securities(2) | 102 | 102 |
Sub-total | 1,945 | 1,933 |
Less: Loans related to acquisitions (held at SLF Inc. and its wholly owned holding companies) | (543) | (883) |
Cash and other liquid assets (held at SLF Inc. and its wholly owned holding companies) | 1,402 | 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
Q3'23 | ||||||
($ millions) | Asset Management | Canada | U.S. | Corporate | Total | |
Underlying net income (loss) | 330 | 338 | 185 | 166 | (89) | 930 |
Add: Market-related impacts (pre-tax) | (3) | 94 | 39 | (1) | (22) | 107 |
ACMA (pre-tax) | — | 20 | (30) | 51 | — | 41 |
Other adjustments (pre-tax) | (81) | 3 | (71) | (7) | — | (156) |
Tax expense (benefit) on above items | 22 | (90) | 9 | 2 | 6 | (51) |
Reported net income (loss) - Common shareholders | 268 | 365 | 132 | 211 | (105) | 871 |
Q3'22(1) | ||||||
Underlying net income (loss) | 298 | 293 | 227 | 153 | (22) | 949 |
Add: Market-related impacts (pre-tax)(1) | 3 | (206) | (13) | (107) | (77) | (400) |
ACMA (pre-tax) | — | (82) | (6) | (54) | (11) | (153) |
Other adjustments (pre-tax) | (95) | (6) | (112) | (2) | (170) | (385) |
Tax expense (benefit) on above items | 12 | 57 | 29 | 10 | (8) | 100 |
Reported net income (loss) - Common shareholders | 218 | 56 | 125 | — | (288) | 111 |
(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. |
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 expected benefits of our strategic partnerships; (iii) relating to our contract negotiations with the Government of
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 Q3'23 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
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