Sun Life Reports Third Quarter 2024 Results
Sun Life Financial reported strong Q3 2024 results with underlying net income of $1,016 million, up 9% from Q3'23, and reported net income of $1,348 million, up 55%. The company's Assets under Management reached $1,515 billion, increasing 13% year-over-year. Key performance metrics include: underlying ROE of 17.9%, reported ROE of 23.8%, and a strong LICAT ratio of 152%. The company increased its common share dividend from $0.81 to $0.84 per share. Growth was driven by strong performance across business segments, particularly in Wealth & Asset Management, Group Health & Protection, and Individual Protection.
Sun Life Financial ha riportato risultati solidi per il terzo trimestre del 2024 con un reddito netto sottostante di $1.016 milioni, in aumento del 9% rispetto al Q3'23, e un reddito netto riportato di $1.348 milioni, in crescita del 55%. Gli Attivi in Gestione della compagnia hanno raggiunto $1.515 miliardi, segnando un incremento del 13% rispetto all'anno precedente. Le principali metriche di performance includono: ROE sottostante del 17,9%, ROE riportato del 23,8% e un robusto rapporto LICAT del 152%. L’azienda ha incrementato il dividendo per azione comune da $0,81 a $0,84. La crescita è stata guidata da una forte performance in tutti i segmenti aziendali, in particolare in Wealth & Asset Management, Group Health & Protection e Individual Protection.
Sun Life Financial reportó resultados sólidos para el tercer trimestre de 2024 con un ingreso neto subyacente de $1,016 millones, un aumento del 9% en comparación con el Q3'23, y un ingreso neto reportado de $1,348 millones, un aumento del 55%. Los Activos bajo Gestión de la compañía alcanzaron $1,515 mil millones, creciendo un 13% en comparación con el año anterior. Las métricas clave de rendimiento incluyen: ROE subyacente del 17.9%, ROE reportado del 23.8%, y una sólida razón LICAT del 152%. La compañía aumentó su dividendo por acción común de $0.81 a $0.84. El crecimiento fue impulsado por un sólido desempeño en todos los segmentos de negocio, particularmente en Wealth & Asset Management, Group Health & Protection e Individual Protection.
선라이프 파이낸셜은 2024년 3분기 강력한 실적을 보고했으며, 기본 순이익은 10억 1,600만 달러로, 지난해 3분기 대비 9% 증가했고, 보고된 순이익은 13억 4,800만 달러로 55% 증가했습니다. 회사의 운용자산은 1,515억 달러에 도달하여 전년 대비 13% 증가했습니다. 주요 성과 지표로는 기본 ROE 17.9%, 보고된 ROE 23.8%, 강력한 LICAT 비율 152%가 포함됩니다. 회사는 보통주 배당금을 주당 0.81달러에서 0.84달러로 인상했습니다. 성장은 Wealth & Asset Management, Group Health & Protection, Individual Protection 등 사업 부문 전반의 강력한 실적에 의해 추진되었습니다.
Sun Life Financial a rendu compte de résultats solides pour le troisième trimestre 2024, avec un revenu net sous-jacent de 1 016 millions de dollars, en hausse de 9 % par rapport au T3'23, et un revenu net déclaré de 1 348 millions de dollars, en hausse de 55 %. Les Actifs sous Gestion de l'entreprise ont atteint 1 515 milliards de dollars, augmentant de 13 % d'une année à l'autre. Les indicateurs de performance clés comprennent : un ROE sous-jacent de 17,9 %, un ROE déclaré de 23,8 % et un solide ratio LICAT de 152 %. La société a augmenté son dividende sur actions ordinaires de 0,81 $ à 0,84 $ par action. La croissance a été soutenue par de solides performances dans tous les segments d'activité, en particulier dans la Gestion de Patrimoine et d'Actifs, la Santé et Protection de Groupe, et la Protection Individuelle.
Sun Life Financial berichtete über starke Ergebnisse im dritten Quartal 2024 mit einem unterliegenden Nettoergebnis von 1.016 Millionen Dollar, was einem Anstieg von 9 % im Vergleich zum Q3'23 entspricht, und einem berichteten Nettoergebnis von 1.348 Millionen Dollar, ein Anstieg von 55 %. Die Assets under Management des Unternehmens erreichten 1.515 Milliarden Dollar und stiegen im Jahresvergleich um 13 %. Die wichtigsten Leistungskennzahlen sind: unterliegender ROE von 17,9 %, berichteter ROE von 23,8 % und ein starker LICAT-Quote von 152 %. Das Unternehmen erhöhte die Dividende auf die Stammaktien von 0,81 auf 0,84 Dollar pro Aktie. Das Wachstum wurde durch starke Leistungen in allen Geschäftsfeldern, insbesondere im Bereich Wealth & Asset Management, Group Health & Protection und Individual Protection, vorangetrieben.
- Underlying net income increased 9% to $1,016 million
- Reported net income grew 55% to $1,348 million
- Assets under Management increased 13% to $1,515 billion
- Strong underlying ROE of 17.9% and reported ROE of 23.8%
- Dividend increase from $0.81 to $0.84 per share
- Group Health & Protection sales up 19% to $445 million
- MFS experienced net outflows of $19.1 billion
- Individual Protection sales in Canada declined 24%
- Lower Dental results in U.S. due to higher utilization rates
- Unfavorable mortality experience in Asia segment
Insights
Sun Life delivered strong Q3 2024 results with significant growth across key metrics. Underlying net income rose
- Wealth & asset management income up
4% to$474 million - Group Health & Protection surged
21% to$345 million - Individual Protection grew
3% to$306 million
The company's strong capital position is reflected in a healthy LICAT ratio of
The results showcase Sun Life's diversified business model and strong execution across segments. Key positive indicators include:
- Robust underlying ROE of
17.9% , indicating efficient capital deployment - Strong sales growth in U.S. Group Benefits, up
22% in USD terms - Milestone achievement as largest U.S. dental benefits provider with 35 million members
- Solid growth in Asia with individual sales up
19% and new business CSM increasing to$267 million
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$1,016 million or$86 million 9% from Q3'23; underlying return on equity ("ROE")(1) was17.9% .- Wealth & asset management underlying net income(1):
, up$474 million $17 million or4% . - Group - Health & Protection underlying net income(1):
$345 million , up$60 million or21% . - Individual - Protection underlying net income(1):
, up$306 million $9 million or3% . - Corporate expenses & other(1):
net loss, consistent with the prior year.$(109) million
- Wealth & asset management underlying net income(1):
- Reported net income of
increased$1,348 million or$477 million 55% from Q3'23; reported ROE(1) was23.8% . - Assets under management ("AUM")(1) of
increased$1,515 billion or$175 billion 13% from Q3'23. - Increase to common share dividend from
to$0.81 per share.$0.84
"Sun Life had a strong quarter with more than
Financial and Operational Highlights
Quarterly results | Year-to-date | ||||
Profitability | Q3'24 | Q3'23 | 2024 | 2023 | |
Underlying net income ($ millions)(1) | 1,016 | 930 | 2,891 | 2,745 | |
Reported net income - Common shareholders ($ millions) | 1,348 | 871 | 2,812 | 2,337 | |
Underlying EPS ($)(1)(2) | 1.76 | 1.59 | 4.98 | 4.68 | |
Reported EPS ($)(2) | 2.33 | 1.48 | 4.83 | 3.97 | |
Underlying ROE(1) | 17.9 % | 17.7 % | 17.2 % | 17.6 % | |
Reported ROE(1) | 23.8 % | 16.6 % | 16.8 % | 14.9 % | |
Growth | Q3'24 | Q3'23 | 2024 | 2023 | |
Wealth sales & asset management gross flows ($ millions)(1) | 41,915 | 39,324 | 135,075 | 128,070 | |
Group - Health & Protection sales ($ millions)(1)(3) | 445 | 374 | 1,467 | 1,483 | |
Individual - Protection sales ($ millions)(1) | 730 | 669 | 2,240 | 1,784 | |
Assets under management ("AUM") ($ billions)(1) | 1,515 | 1,340 | 1,515 | 1,340 | |
New business Contractual Service Margin ("CSM") ($ millions)(1) | 383 | 370 | 1,167 | 872 | |
Financial Strength | Q3'24 | Q3'23 | |||
LICAT ratios (at period end)(4) | |||||
Sun Life Financial Inc. | 152 % | 147 % | |||
Sun Life Assurance(5) | 147 % | 138 % | |||
Financial leverage ratio (at period end)(1)(6) | 20.4 % | 21.8 % |
___________ | |
(1) | Represents a non-IFRS financial measure. For more details, see the Non-IFRS Financial Measures section in this document and in the Q3'24 MD&A. |
(2) | All earnings per share ("EPS") measures refer to fully diluted EPS, unless otherwise stated. |
(3) | Prior period amounts related to |
(4) | Life Insurance Capital Adequacy Test ("LICAT") ratio. Our LICAT ratios are calculated in accordance with the OSFI-mandated guideline, Life Insurance Capital Adequacy Test. |
(5) | Sun Life Assurance Company of |
(6) | The calculation for the financial leverage ratio includes the CSM balance (net of taxes) in the denominator. The CSM (net of taxes) was |
Financial and Operational Highlights - Quarterly Comparison (Q3'24 vs. Q3'23)
($ millions) | Q3'24 | |||||
Underlying net income by business type(1)(2): | Sun Life | Asset | Corporate | |||
Wealth & asset management | 474 | 344 | 101 | — | 29 | — |
Group - Health & Protection | 345 | — | 172 | 173 | — | — |
Individual - Protection | 306 | — | 102 | 46 | 158 | — |
Corporate expenses & other | (109) | — | — | — | (17) | (92) |
Underlying net income(1) | 1,016 | 344 | 375 | 219 | 170 | (92) |
Reported net income - Common shareholders | 1,348 | 644 | 382 | 339 | 32 | (49) |
Change in underlying net income (% year-over-year) | 9 % | 4 % | 11 % | 18 % | 2 % | nm(3) |
Change in reported net income (% year-over-year) | 55 % | 140 % | 5 % | 157 % | (85) % | nm(3) |
Wealth sales & asset management gross flows(1) | 41,915 | 36,259 | 3,755 | — | 1,901 | — |
Group - Health & Protection sales(1) | 445 | — | 124 | 300 | 21 | — |
Individual - Protection sales(1) | 730 | — | 112 | — | 618 | — |
Change in wealth sales & asset management gross flows (% year-over-year) | 7 % | 6 % | 11 % | — | 14 % | — |
Change in group sales (% year-over-year) | 19 % | — | 4 % | 26 % | 31 % | — |
Change in individual sales (% year-over-year) | 9 % | — | (24) % | — | 19 % | — |
(1) | Represents a non-IFRS financial measure. For more details, see the Non-IFRS Financial Measures section in this document and in the Q3'24 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 Q3'24 MD&A. |
(3) | Not meaningful. |
Underlying net income(1) of
- Wealth & asset management(1) up
$17 million : Higher fee income in Asset Management,Asia , andCanada , partially offset by unfavourable credit experience inCanada . - Group - Health & Protection(1)(2) up
$60 million : Strong business growth inU.S. Group Benefits andCanada , higher fee-based income inCanada , and improved group life mortality experience in theU.S. , partially offset by lowerU.S. Dental results. - Individual - Protection(1)(2) up
$9 million : Business growth inAsia andCanada partially offset by unfavourable mortality experience inAsia . - Corporate expenses & other(1) were in line with prior year.
Reported net income of
- A decrease in SLC Management's estimated acquisition-related liabilities(3); and
- The increase in underlying net income.
- Favourable equity market impacts and improved real estate experience(4) were offset by interest rate impacts.
Underlying ROE was
__________ | |
(1) | Refer to section C - Profitability in the Q3'24 MD&A for more information on notable items attributable to reported and 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 Q3'24 MD&A. |
(2) | Effective Q1'24, reflects a refinement in the allocation methodology for expenses from Individual - Protection to Group - Health & Protection business types in the |
(3) | Reflects a decrease of |
(4) | 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"). |
Business Group Highlights
Asset Management: A global leader in both public and alternative asset classes through MFS and SLC Management
Asset Management underlying net income of
- MFS(1) up
(up$20 million US million): Higher fee income from higher average net assets ("ANA") partially offset by higher expenses. The MFS pre-tax net operating profit margin(2) was$11 40.5% for Q3'24, compared to40.8% in the prior year. - SLC Management down
$6 million : Higher fee-related earnings more than offset by a favourable tax rate(3) in the prior year and lower net seed investment income. Fee-related earnings(2) increased6% driven by higher AUM, reflecting strong capital raising and deployment across the platform, partially offset by higher expenses. Fee-related earnings margin(2) was24.2% for Q3'24, compared to23.8% in the prior year.
Reported net income of
Foreign exchange translation led to an increase of
Asset Management ended Q3'24 with
Asset Management experienced solid fixed income flows, with MFS generating
On August 22, 2024, we acquired the remaining
- Wealth & asset management down
million: Unfavourable credit experience partially offset by higher fee income driven by higher AUM.$15 - Group - Health & Protection up
million: Business growth and higher fee-based income.$36 - Individual - Protection up
million: Business growth and higher investment contributions.$16
Reported net income of
- Wealth sales & asset management gross flows of
were up$4 billion 11% , driven by higher mutual fund sales in Individual Wealth, partially offset by lower defined benefit solution sales in Group Retirement Services ("GRS") and guaranteed product sales in Individual Wealth. - Group - Health & Protection sales of
were up$124 million 4% , driven by higher health sales. - Individual - Protection sales of
were down$112 million 24% , reflecting lower third-party sales.
In the third quarter, we accelerated our wealth strategy of providing innovative product solutions and expanding distribution capabilities with the launch of MyRetirement Income, an innovative first for Canadians that aims to provide retirees with a reliable source of income, while maintaining flexibility and the potential for continued investment growth. This solution leverages automated calculations to help ease the transition from saving to drawing income in retirement so that Clients can focus on living their best retirement. Additionally, we have launched our securities investment dealer platform, Sun Life Canada Securities Inc. ("SLCSI"). Our wealth offerings in SLCSI will broaden our Clients' access to wealth solutions and help them achieve lifetime financial security.
__________ | |
(1) | MFS Investment Management ("MFS"). |
(2) | Represents a non-IFRS financial measure. For more details, see the Non-IFRS Financial Measures section in this document and in the Q3'24 MD&A. |
(3) | Underlying net income in the prior year included favourable adjustments related to tax filings. |
(4) | Reflects a decrease of |
(5) | Assumption changes and management actions ("ACMA"). |
(6) | Compared to the prior year. |
- Group - Health & Protection(1) up
US million: Strong business growth in Group Benefits and improved group life mortality experience partially offset by lower Dental results. Dental results were impacted by a continued acuity shift reflecting higher average utilization in remaining members as a result of Medicaid redeterminations following the end of the Public Health Emergency, partially offset by Medicaid pricing updates and claim and expense management actions.$15 - Individual - Protection(1) up US
$6 million : Higher net investment results, including a partial offset from unfavourable credit experience.
Reported net income of
Foreign exchange translation led to an increase of
As a leader in health and benefits in the
We are also making it faster and easier for members to use their benefits. In the third quarter, we enhanced claims connectivity across our disability, supplemental health, stop-loss, and dental products. When a member has more than one of these products and files a single claim, all other applicable Sun Life benefits will be processed automatically, ensuring members receive all the coverage they elected without having to file additional claims. This creates an advantage for employers who buy multiple Sun Life
- Wealth & asset management up
million: Higher fee income primarily driven by higher AUM.$18 - Individual - Protection down
million: Good sales momentum and in-force business growth, and contributions from joint ventures, were more than offset by unfavourable mortality experience, lower earnings on surplus, and higher expenses primarily reflecting continued investments in the business.$17 - Regional office expenses & other
$3 million improved net loss primarily driven by lower incentive compensation.
Reported net income of
Foreign exchange translation led to an increase of
- Individual sales of
were up$618 million 19% , driven by higher sales inHong Kong reflecting expanded distribution capabilities, andIndia reflecting growth mainly in the bancassurance channel, partially offset by lower sales in International due to higher large case sales in the prior year. - Wealth sales & asset management gross flows of
were up$2 billion 14% , driven by higher fixed income fund and mutual fund sales inIndia , partially offset by lower money market fund sales inthe Philippines and lower Mandatory Provident Fund ("MPF") sales inHong Kong .
New business CSM of
We are committed to helping our Clients achieve lifetime financial security by offering a broad suite of products that fulfill their needs. During the third quarter, we launched a new product(4) for high-net-worth Clients, which addresses a market need for long-term wealth accumulation potential while offering built-in estate planning.
We continue to expand our capabilities to make it easier for Clients to do business with us. In
__________ | |
(1) | Effective Q1'24, reflects a refinement in the allocation methodology for expenses from Individual - Protection to Group - Health & Protection business types in the |
(2) | Based on membership as of August 2024. Ranking compiled by Sun Life and based on data disclosed by competitors. |
(3) | Compared to prior year. |
(4) | Sun Global Luna. |
Corporate
Underlying net loss was
Reported net loss was
Earnings Conference Call
The Company's Q3'24 financial results will be reviewed at a conference call on Tuesday, November 5, 2024, 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 Q3'25 period end.
Media Relations Contact: | Investor Relations Contact: |
Kim Race | David Garg |
Director, Corporate Communications | Senior Vice-President, Capital Management and Investor Relations |
Tel: 416-779-4574 | Tel: 416-408-8649 |
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 Q3'24 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 Q3'24 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) | Q3'24 | Q3'23 | 2024 | 2023 | |
Underlying net income | 1,016 | 930 | 2,891 | 2,745 | |
Market-related impacts | |||||
Equity market impacts | 36 | (21) | 40 | (21) | |
Interest rate impacts(1) | 38 | 127 | 26 | 39 | |
Impacts of changes in the fair value of investment properties (real estate experience) | (45) | (83) | (260) | (279) | |
Add: | Market-related impacts | 29 | 23 | (194) | (261) |
Add: | Assumption changes and management actions | 36 | 35 | 45 | 37 |
Other adjustments | |||||
Management's ownership of MFS shares | (10) | 7 | (22) | 23 | |
Acquisition, integration and restructuring(2)(3)(4)(5)(6)(7) | 312 | (89) | 170 | (113) | |
Intangible asset amortization | (35) | (35) | (109) | (94) | |
Other(8)(9) | — | — | 31 | — | |
Add: | Total of other adjustments | 267 | (117) | 70 | (184) |
Reported net income - Common shareholders | 1,348 | 871 | 2,812 | 2,337 | |
Underlying EPS (diluted) ($) | 1.76 | 1.59 | 4.98 | 4.68 | |
Add: | Market-related impacts ($) | 0.05 | 0.04 | (0.34) | (0.44) |
Assumption changes and management actions ($) | 0.06 | 0.06 | 0.08 | 0.06 | |
Management's ownership of MFS shares ($) | (0.02) | 0.01 | (0.04) | 0.04 | |
Acquisition, integration and restructuring ($) | 0.54 | (0.16) | 0.29 | (0.20) | |
Intangible asset amortization ($) | (0.06) | (0.06) | (0.19) | (0.17) | |
Other ($) | — | — | 0.05 | — | |
Reported EPS (diluted) ($) | 2.33 | 1.48 | 4.83 | 3.97 |
(1) | 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.). |
(2) | 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 |
(3) | Q3'24 reflects a decrease of |
(4) | Includes integration costs associated with DentaQuest, acquired on June 1, 2022. |
(5) | Q2'24 includes a restructuring charge of |
(6) | To meet regulatory obligations, in Q1'24, we sold |
(7) | Includes a |
(8) | Includes a Pillar Two global minimum tax adjustment in Q2'24. For additional information, refer to Note 9 of our Interim Consolidated Financial Statements for the period ended September 30, 2024 and section C - Profitability in the Q3'24 MD&A. |
(9) | Includes the early termination of a distribution agreement in Asset Management in Q1'24. |
The following table shows the pre-tax amount of underlying net income adjustments:
Quarterly results | Year-to-date | ||||
($ millions) | Q3'24 | Q3'23 | 2024 | 2023 | |
Underlying net income (after-tax) | 1,016 | 930 | 2,891 | 2,745 | |
Underlying net income adjustments (pre-tax): | |||||
Add: | Market-related impacts | (12) | 107 | (207) | (290) |
Assumption changes and management actions ("ACMA")(1) | 63 | 41 | 73 | 47 | |
Other adjustments | 246 | (156) | 33 | (255) | |
Total underlying net income adjustments (pre-tax) | 297 | (8) | (101) | (498) | |
Add: | Taxes related to underlying net income adjustments | 35 | (51) | 22 | 90 |
Reported net income - Common shareholders (after-tax) | 1,348 | 871 | 2,812 | 2,337 |
(1) | In this document, the reported net income impact of ACMA excludes amounts attributable to participating policyholders and includes non-liability impacts. In contrast, the net income impacts of method and assumption changes in the Interim Consolidated Financial Statements for the period ended September 30, 2024 includes amounts attributable to participating policyholders and excludes non-liability impacts. |
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 Q3'24 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. "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 Q3'24 MD&A.
Quarterly results | ||
($ millions) | Q3'24 | Q3'23 |
Assets under management | ||
General fund assets | 216,180 | 193,858 |
Segregated funds | 145,072 | 119,988 |
Third-party AUM(1) | 1,196,332 | 1,063,075 |
Consolidation adjustments(1) | (43,014) | (36,780) |
Total assets under management | 1,514,570 | 1,340,141 |
(1) | Represents a non-IFRS financial measure. For more details, see section N - Non-IFRS Financial Measures in the Q3'24 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 and short-term loans 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, 2024 | As at December 31, 2023 |
Cash and other liquid assets (held at SLF Inc. and its wholly owned holding companies): | ||
Cash, cash equivalents & short-term securities | 75 | 712 |
Debt securities(1) | 1,032 | 1,228 |
Equity securities(2) | 107 | 102 |
Sub-total | 1,214 | 2,042 |
Less: Loans related to acquisitions and short-term loans(3) (held at SLF Inc. and its wholly owned holding companies) | — | (411) |
Cash and other liquid assets (held at SLF Inc. and its wholly owned holding companies) | 1,214 | 1,631 |
(1) | Includes publicly traded bonds. |
(2) | Includes ETF Investments. |
(3) | Includes drawdowns from credit facilities to manage timing of cash flows. |
3. Reconciliations of Select Non-IFRS Financial Measures
Underlying Net Income to Reported Net Income Reconciliation - Pre-tax by Business Group
Q3'24 | |||||||
($ millions) | Asset Management | Canada | U.S. | Corporate | Total | ||
Underlying net income (loss) | 344 | 375 | 219 | 170 | (92) | 1,016 | |
Add: | Market-related impacts (pre-tax) | (7) | 13 | 14 | (55) | 23 | (12) |
ACMA (pre-tax) | — | (47) | 180 | (74) | 4 | 63 | |
Other adjustments (pre-tax) | 304 | (8) | (43) | (7) | — | 246 | |
Tax expense (benefit) | 3 | 49 | (31) | (2) | 16 | 35 | |
Reported net income (loss) - Common shareholders | 644 | 382 | 339 | 32 | (49) | 1,348 | |
Q3'23 | |||||||
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) | 22 | (90) | 9 | 2 | 6 | (51) | |
Reported net income (loss) - Common shareholders | 268 | 365 | 132 | 211 | (105) | 871 |
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, plans, targets, goals and priorities; (ii) relating to our growth initiatives and other business objectives; (iii) relating to SLC Management's estimated acquisition-related liabilities; (iv) that are predictive in nature or that depend upon or refer to future events or conditions; and (v) 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 Q3'24 MD&A under the headings C - Profitability - 5 - Income taxes, F - Financial Strength and I - Risk Management and in SLF Inc.'s 2023 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 geopolitical 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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SOURCE Sun Life Financial Inc.
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