SLF Inc. increases its common share dividend
by 5% to $0.55
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: Canada,
United States ("U.S."), Asset
Management, Asia, and Corporate.
The information in this document is based on the unaudited interim
financial results of SLF Inc. for the period ended
September 30, 2019 and should be read in conjunction with the
interim management's discussion and analysis ("MD&A") and our
unaudited interim consolidated financial statements and
accompanying notes ("Interim Consolidated Financial Statements")
for the period ended September 30, 2019, prepared in
accordance with International Financial Reporting Standards
("IFRS"), which are available on www.sunlife.com under Investors –
Financial results and reports. Additional information relating to
SLF Inc. is available on the SEDAR website at http://www.sedar.com
and on the U.S. Securities and Exchange Commission's website at
http://www.sec.gov. Unless otherwise noted, all amounts are in
Canadian dollars.
TORONTO, Nov. 6, 2019
/PRNewswire/ - Sun Life Financial Inc. (TSX: SLF) (NYSE: SLF)
today announced its results for the third quarter ended
September 30, 2019. Third quarter reported net income was
$681 million and underlying net
income(1) was $809
million.
|
|
Quarterly
results
|
Year-to-date
|
Profitability
|
Q3'19
|
Q3'18
|
2019
|
2018
|
|
Reported net income
($ millions)
|
681
|
567
|
1,899
|
1,942
|
|
Underlying net
income(1) ($ millions)
|
809
|
730
|
2,265
|
2,229
|
|
Reported
EPS(2) ($)
|
1.15
|
0.93
|
3.19
|
3.18
|
|
Underlying
EPS(1)(2) ($)
|
1.37
|
1.20
|
3.81
|
3.66
|
|
|
|
|
|
|
|
Reported Return on
equity ("ROE")(1)
|
13.0%
|
10.8%
|
11.8%
|
12.5%
|
|
Underlying
ROE(1)
|
15.5%
|
14.0%
|
14.1%
|
14.3%
|
Growth
|
|
|
|
|
|
Insurance
sales(1) ($ millions)
|
685
|
577
|
2,122
|
1,875
|
|
Wealth
sales(1) ($ billions)
|
41.2
|
29.8
|
114.1
|
100.5
|
|
Value of new business
("VNB")(1) ($ millions)
|
252
|
244
|
869
|
844
|
|
Assets under
management ("AUM")(1) ($ billions)
|
1,062.9
|
983.5
|
1,062.9
|
983.5
|
Financial
Strength
|
|
|
|
|
|
LICAT
ratios(3) (at period end)
|
|
|
|
|
|
Sun Life Financial
Inc.
|
146%
|
145%
|
|
|
|
Sun Life
Assurance(4)
|
133%
|
130%
|
|
|
|
Financial leverage
ratio(1) (at period end)
|
22.8%
|
21.9%
|
|
|
"We delivered on another quarter of growth, with underlying net
income at $809 million, underlying
return on equity at 15.5%, and we increased our common share
dividend by 5% to $0.55," said
Dean Connor, President and CEO, Sun
Life.
"We are pleased with the growth in insurance sales, led by
Asia, our fastest growing pillar,
and growth in Asset Management sales, where we are meeting our
Clients' needs for active fund managers with strong long-term
performance as well as investment solutions in alternative asset
classes. Asia insurance sales
increased 47% over the prior year, with particular strength in
Hong Kong, and an increase in
International high net worth sales. In Asset Management, we
achieved net inflows of $3.2 billion,
driven by both MFS and SLC Management. Gross sales were
$34.4 billion, an increase of 41%
from the prior year."
____________
|
(1)
|
Represents a non-IFRS
financial measure. See the Non-IFRS Financial Measures section in
this document and in our interim MD&A for the period ended
September 30, 2019 ("Q3 2019 MD&A").
|
(2)
|
All Earnings per
share ("EPS") measures refer to fully diluted EPS, unless otherwise
stated.
|
(3)
|
For further
information on the Life Insurance Capital Adequacy Test ("LICAT"),
see section E - Financial Strength in the Q3 2019
MD&A.
|
(4)
|
Sun Life Assurance
Company of Canada ("Sun Life Assurance") is SLF Inc.'s principal
operating life insurance subsidiary.
|
Financial and Operational Highlights - Quarterly Comparison
(Q3 2019 vs. Q3 2018)
Our strategy is focused on four key pillars of growth, where we
aim to be a leader in the markets in which we operate, with our
continued progress detailed below.
($ millions, unless
otherwise noted)
|
|
|
|
|
|
|
Reported
net income
(loss)
|
Underlying
net income
(loss)(1)
|
Insurance
sales(1)
|
Wealth
sales(1)
|
|
Q3'19
|
Q3'18
|
change
|
Q3'19
|
Q3'18
|
change
|
Q3'19
|
Q3'18
|
change
|
Q3'19
|
Q3'18
|
change
|
Canada(3)
|
223
|
335
|
(33)%
|
268
|
251
|
7%
|
204
|
203
|
—%
|
4,136
|
3,539
|
17%
|
U.S.(3)
|
(186)
|
(267)
|
30%
|
135
|
139
|
(3)%
|
184
|
172
|
7%
|
—
|
—
|
—
|
Asset
Management(3)
|
221
|
241
|
(8)%
|
251
|
251
|
—%
|
—
|
—
|
—
|
34,442
|
24,365
|
41%
|
Asia(3)
|
170
|
164
|
4%
|
138
|
110
|
25%
|
297
|
202
|
47%
|
2,573
|
1,928
|
33%
|
Corporate(3)
|
253
|
94
|
nm(2)
|
17
|
(21)
|
nm(2)
|
—
|
—
|
—
|
—
|
—
|
—
|
Total
|
681
|
567
|
20%
|
809
|
730
|
11%
|
685
|
577
|
19%
|
41,151
|
29,832
|
38%
|
|
|
(1)
|
Represents a non-IFRS
financial measure. See the Non-IFRS Financial Measures section in
this document and in our Q3 2019 MD&A.
|
(2)
|
Not
meaningful.
|
(3)
|
Prior to the second
quarter of 2019, these business segments were referred to as Sun
Life Financial Canada, Sun Life Financial U.S., Sun Life Financial
Asset Management, Sun Life Financial Asia, and Corporate,
respectively, in our interim and annual MD&A.
|
Our reported net income was $681
million in the third quarter of 2019, an increase of
$114 million or 20% compared to the
same period in 2018, driven by improved impacts from assumption
changes and management actions ("ACMA")(1), partially
offset by unfavourable market related impacts, predominantly from
interest rates, and higher acquisition costs related to our
acquisition of a majority stake in BentallGreenOak ("BGO
acquisition"). ACMA in the third quarter of 2019 was neutral for
the Company, and was comprised of favourable impacts of
$236 million in Corporate,
predominantly pertaining to the UK, and $47
million in Asia, which were
fully offset by $287 million in the
U.S. The ultimate reinvestment rates ("URR") adjustments of
$93 million included in ACMA,
primarily in Canada, were offset
by other investment related assumptions.
Underlying net income was $809
million in the third quarter of 2019, an increase of
$79 million or 11%, compared to the
same period in 2018, which includes the favourable impact of the
resolution of tax matters from prior years, including interest and
investment income tax allocation updates between the participating
policyholders' account and the shareholders' account ("tax matters
from prior years") of $78
million — $58 million in
Corporate and $20 million in
Canada. Underlying net income also
reflected business growth, favourable credit experience, a gain
from a mortgage investment prepayment in the U.S. and higher
available-for-sale ("AFS") gains, offset by unfavourable morbidity
experience in Canada and the U.S.
and lower investing activity gains.
Our reported ROE(1) was 13.0% in the third quarter of
2019. Underlying ROE(1) was 15.5%, compared to 14.0% in
the third quarter of 2018, reflecting higher underlying net income
and the increase in common shareholders' equity. The impact of the
BGO acquisition on common shareholders' equity was more than offset
by increases from earnings, net of dividends and share repurchases,
and increases in accumulated other comprehensive income. SLF Inc.
and its wholly-owned holding companies ended the quarter with
$2.8 billion in cash and other liquid
assets, which includes the issuance of $750
million of subordinated debt that also increased our
financial leverage ratio(1) to 22.8%.
A Leader in Insurance and Wealth Solutions in our Canadian
Home Market
Canada's reported net income
was $223 million in the third quarter
of 2019, a decrease of $112 million
compared to the same period in 2018, reflecting unfavourable market
related impacts and less favourable ACMA impacts. Underlying net
income was $268 million in the third
quarter of 2019, an increase of $17
million or 7%, compared to the same period in 2018, which
includes tax matters from prior years of $20
million. Underlying net income also reflected business
growth, higher AFS gains and favourable expense experience, offset
by unfavourable morbidity experience and lower new business
gains.
Canada insurance sales were
$204 million in the third quarter of
2019, in line with the same period in 2018. Canada wealth sales were $4.1 billion for the third quarter of 2019, an
increase of $597 million or 17%
compared to the same period in 2018, driven by Group Retirement
Services ("GRS").
We continue to shape the Canadian market with digital and health
solutions that make a positive difference. For example, we expanded
our suite of available healthcare innovations to include
pharmacogenomics. This helps medical practitioners identify the
right medications and dosages for individuals based on their
personal health profile and makeup, resulting in improved outcomes
for our Clients. We have embedded this solution into our disability
case management to help our Clients return back to work and lead
healthier lives.
____________
|
(1)
|
Represents a non-IFRS
financial measure. See the Non-IFRS Financial Measures section in
this document and in our Q3 2019 MD&A.
|
A Leader in U.S. Group Benefits
U.S.'s reported net loss was $186
million in the third quarter of 2019, an improvement of
$81 million compared to the same
period in 2018, reflecting less unfavourable impacts from ACMA
primarily pertaining to In-force Management, partially offset by
unfavourable market related impacts. Underlying net income was
$135 million in the third quarter of
2019, in line with the same period in 2018, reflecting favourable
expense experience, a gain on a mortgage investment prepayment and
business growth, offset by unfavourable morbidity experience in
medical stop-loss relative to a strong third quarter of 2018 and
lower investing activity and AFS gains. The after-tax profit margin
for U.S. Group Benefits(1) was 7.2% as of the third
quarter of 2019, compared to 6.4% as of the third quarter of
2018.
U.S. Group Benefits sales were $184
million in the third quarter of 2019, an increase of
$12 million or 7% compared to the
same period in 2018, driven primarily by increases in medical
stop-loss sales.
We are pleased with the early results of our innovative Sun Life
+ Maxwell Health benefits administration platform, which simplifies
and enhances the enrollment experience for plan members. To date,
employers on this platform are selecting nearly three times as many
Sun Life products compared to our typical employee benefits
Clients, helping to close the gaps in coverage for members. During
the quarter, we also introduced offerings to help employers provide
fully-insured and self-insured paid family and medical leave
programs. This is an area of growth in the U.S. where Sun Life has
been a leader, as we continue to work with various states to
establish a legislative foundation for paid leave alongside our
recent launch of an enhanced program for our own employees.
A Leader in Global Asset Management
Asset Management's reported net income was $221 million in the third quarter of 2019, a
decrease of $20 million or 8%
compared to the same period in 2018, reflecting higher acquisition
costs in SLC Management related to the BGO acquisition. Underlying
net income was $251 million in the
third quarter of 2019, in line with the same period in 2018,
reflecting consistent average net assets ("ANA") in MFS Investment
Management ("MFS"). The pre-tax net operating profit margin
ratio for MFS(1) was 40% in the third quarter of
2019, in line with the same period last year.
Asset Management ended the third quarter with $738.7 billion in AUM, consisting of $655.5 billion (US$495.2
billion) in MFS and $83.2
billion in SLC Management. MFS and SLC Management reported
net inflows of $1.7 billion
(US$1.3 billion) and $1.5 billion in the quarter, respectively. In
particular, MFS's retail net inflows, which were positive for the
third consecutive quarter, contributed US$3.7 billion for this quarter, driven by higher
gross retail sales of US$17.5
billion. Strong U.S. and non-U.S. retail sales in both
equity and fixed income mandates demonstrate that MFS's success and
brand presence are resonating with retail investors seeking active
fund managers with strong long-term performance.
In the third quarter of 2019, 92%, 93% and 94% of MFS's U.S.
retail fund assets ranked in the top half of their Lipper
categories based on ten-, five- and three-year performance,
respectively.
At the beginning of the quarter, we completed the BGO
acquisition, which was the product of the merger of the Bentall
Kennedy group of companies and GreenOak Real Estate, a global real
estate investment firm. The acquisition increases our global real
estate investment footprint, while adding organizational depth and
a full spectrum of solutions including equity and debt real estate
strategies. As a result of the acquisition, Total equity was
reduced by $856 million, primarily
driven by the establishment of financial liabilities associated
with the anticipated increase of our future ownership in
BentallGreenOak ("BGO").
A Leader in Asia through
Distribution Excellence in Higher Growth Markets
Asia's reported net income was
$170 million in the third quarter of
2019, an increase of $6 million or 4%
compared to the same period in 2018, driven by the change in
underlying net income, partially offset by less favourable ACMA
impacts. Underlying net income was $138
million in the third quarter of 2019, an increase of
$28 million or 25% compared to the
same period in 2018, driven by higher AFS gains, favourable credit
experience and business growth.
Asia insurance sales were
$297 million in the third quarter of
2019, an increase of $95 million or
47% compared to the same period in 2018, driven by strong growth in
most local insurance markets and in International. Asia wealth sales were $2.6 billion in the third quarter of 2019, an
increase of $645 million or 33%
compared to the same period in 2018, primarily driven by elevated
money market sales in the
Philippines and growth in the pension business in
Hong Kong, partially offset by
lower mutual fund sales in India
due to weak market sentiment and volatility.
In Asia, we continue our
success in growing our distribution opportunities. We grew agency
sales by 35% compared to the same period last year, driven by
strong recruiting activities in the
Philippines and China and
an enriched product suite in Hong
Kong. We more than doubled high net worth sales based on our
competitive product offering and strong Client service model in the
brokerage channel. On our digital journey, we reached another
milestone by launching SunAccess in Malaysia, completing the rollout of mobile
apps for Clients across all seven of our local markets.
____________
|
(1)
|
Represents a non-IFRS
financial measure. See the Non-IFRS Financial Measures section in
this document and in our Q3 2019 MD&A.
|
Earnings Conference Call
The Company's third quarter 2019 financial results will be
reviewed at a conference call on Thursday, November 7, 2019,
at 10:00 a.m. ET. To listen to the
call via live audio webcast and to view the presentation slides, as
well as related information, please visit www.sunlife.com and click
on the link to Quarterly reports under Investors – Financial
results and reports 10 minutes prior to the start of the call.
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 2021 period end.
The conference call can also be accessed by phone by dialing
647-427-2311 (International) or 1-866-521-4909 (toll-free within
North America). A replay of the
conference call will be available from Thursday, November 7,
2019 at 2:00 p.m. ET until 11:59 p.m. ET on
Thursday, November 21, 2019 by calling 416-621-4642 or
1-800-585-8367 (toll-free within North
America) using Conference ID: 1899156.
Media Relations
Contact:
|
Investor Relations
Contact:
|
Noah
Zatzman
|
Leigh
Chalmers
|
Corporate
Communications
|
Senior
Vice-President, Head of Investor Relations & Capital
Management
|
Tel:
416-526-4208
|
Tel:
647-256-8201
|
noah.zatzman@sunlife.com
|
investor.relations@sunlife.com
|
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. 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. 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 reconciliations to the closest IFRS measures are available in
the Q3 2019 MD&A under the heading M - Non-IFRS Financial
Measures, our annual MD&A 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
(loss) and financial measures based on underlying net income
(loss), including underlying EPS or underlying loss per share, and
underlying ROE, are non-IFRS financial measures. Underlying net
income (loss) removes from reported net income (loss) the impacts
of the following items that create volatility in our results under
IFRS and when removed assist in explaining our results from period
to period:
|
(a)
|
market related
impacts that differ from our best estimate assumptions, which
include: (i) impacts of returns in equity markets, net of hedging,
for which our best estimate assumptions are approximately 2% per
quarter. This also includes the impacts of the basis risk inherent
in our hedging program, which is the difference between the return
on underlying funds of products that provide benefit guarantees and
the return on the derivative assets used to hedge those benefit
guarantees; (ii) the impacts of changes in interest rates in the
reporting period and on the value of derivative instruments used in
our hedging programs including changes in credit and swap spreads,
and any changes to the assumed fixed income reinvestment rates in
determining the actuarial liabilities; and (iii) the impacts of
changes in the fair value of investment properties in the reporting
period;
|
(b)
|
assumption changes
and management actions, which include: (i) the impacts of revisions
to the methods and assumptions used in determining our liabilities
for insurance contracts and investment contracts; and (ii) the
impacts on insurance contracts and investment contracts of actions
taken by management in the current reporting period, referred to as
management actions which include, for example, changes in the
prices of in-force products, new or revised reinsurance on in-force
business, and material changes to investment policies for assets
supporting our liabilities; and
|
(c)
|
other
adjustments:
|
|
(i)
|
certain hedges in
Canada that do not qualify for hedge accounting - this adjustment
enhances the comparability of our net income from period to period,
as it reduces volatility to the extent it will be offset over the
duration of the hedges;
|
|
(ii)
|
fair value
adjustments on MFS's share-based payment awards that are settled
with MFS's own shares and accounted for as liabilities and measured
at fair value each reporting period until they are vested,
exercised and repurchased - this adjustment enhances the
comparability of MFS's results with publicly traded asset managers
in the United States;
|
|
(iii)
|
acquisition,
integration and restructuring costs (including impacts related to
acquiring and integrating acquisitions); and
|
|
(iv)
|
other items that are
unusual or exceptional in nature.
|
All factors discussed
in this document that impact our underlying net income are also
applicable to reported net income.
|
|
All EPS measures in
this document refer to fully diluted EPS, unless otherwise stated.
As noted below, underlying EPS excludes the dilutive impacts of
convertible instruments.
|
|
The following table
sets out the amounts that were excluded from our underlying net
income (loss) and underlying EPS, and provides a reconciliation to
our reported net income (loss) and EPS based on IFRS.
|
Reconciliations of
Select Net Income Measures
|
Quarterly
results
|
Year-to-date
|
($ millions, unless
otherwise noted)
|
Q3'19
|
Q2'19
|
Q3'18
|
2019
|
2018
|
Reported net
income
|
681
|
595
|
567
|
1,899
|
1,942
|
Equity market
impacts
|
9
|
20
|
5
|
87
|
(31)
|
Interest rate
impacts(1)
|
(90)
|
(114)
|
14
|
(337)
|
(50)
|
Impacts of changes in
the fair value of investment properties
|
(8)
|
(3)
|
6
|
(5)
|
46
|
Market related
impacts
|
(89)
|
(97)
|
25
|
(255)
|
(35)
|
Assumption changes
and management actions
|
—
|
(20)
|
(166)
|
(31)
|
(168)
|
Certain hedges in
Canada that do not qualify for hedge accounting
|
(5)
|
(5)
|
(1)
|
(9)
|
6
|
Fair value
adjustments on MFS's share-based payment awards
|
(8)
|
(11)
|
(10)
|
(27)
|
(33)
|
Acquisition,
integration and restructuring
|
(26)
|
(11)
|
(11)
|
(44)
|
(57)
|
Total of other
adjustments
|
(39)
|
(27)
|
(22)
|
(80)
|
(84)
|
Underlying net income
(loss)
|
809
|
739
|
730
|
2,265
|
2,229
|
Reported EPS
(diluted) ($)
|
1.15
|
1.00
|
0.93
|
3.19
|
3.18
|
Market related
impacts ($)
|
(0.16)
|
(0.16)
|
0.04
|
(0.42)
|
(0.06)
|
Assumption changes
and management actions ($)
|
—
|
(0.03)
|
(0.27)
|
(0.05)
|
(0.28)
|
Certain hedges in
Canada that do not qualify for hedge accounting ($)
|
(0.01)
|
(0.01)
|
—
|
(0.02)
|
0.01
|
Fair value
adjustments on MFS's share-based payment awards ($)
|
(0.01)
|
(0.02)
|
(0.02)
|
(0.05)
|
(0.05)
|
Acquisition,
integration and restructuring ($)
|
(0.04)
|
(0.02)
|
(0.02)
|
(0.07)
|
(0.10)
|
Impacts of
convertible securities on diluted EPS ($)
|
—
|
—
|
—
|
(0.01)
|
—
|
Underlying EPS
(diluted) ($)
|
1.37
|
1.24
|
1.20
|
3.81
|
3.66
|
(1)
|
Our exposure to
interest rates varies by product type, line of business, and
geography. Given the long-term nature of our business, we have a
higher degree of sensitivity in respect of interest rates at long
durations.
|
2. Additional
Non-IFRS Measures
|
Management also uses
the following non-IFRS financial measures, which are referenced in
this news release:
|
|
Return on
equity. IFRS does not prescribe the calculation of ROE and
therefore a comparable measure under IFRS is not available. To
determine reported ROE and underlying ROE, respectively, reported
net income (loss) and underlying net income (loss) is divided by
the total weighted average common shareholders' equity for the
period. The quarterly ROE is annualized.
|
|
Financial leverage
ratio. This total debt to total capital ratio is ratio of debt
plus preferred shares to total capital, where debt consists of all
capital qualifying debt securities. Capital qualifying debt
securities consist of subordinated debt and innovative capital
instruments.
|
|
Sales. In
Canada, insurance sales consist of sales of individual insurance
and group benefits products; wealth sales consist of sales of
individual wealth products and sales in GRS. In the U.S., insurance
sales consist of sales by Group Benefits. In Asia, insurance sales
consist of the individual and group insurance sales by our
subsidiaries and joint ventures and associates, based on our
proportionate equity interest, in the Philippines, Hong Kong,
Indonesia, India, China, Malaysia, Vietnam and sales from our
International business unit; wealth sales consist of Hong Kong
wealth sales, Philippines mutual fund sales, wealth sales by our
India and China insurance joint ventures and associates, and Aditya
Birla Sun Life AMC Limited's equity and fixed income mutual fund
sales based on our proportionate equity interest, including sales
as reported by our bank distribution partners. Asset Management
sales consist of gross sales (inflows) for retail and
institutional Clients; unfunded commitments are not included in
sales. Sales are also expressed on a constant currency basis,
which is a measure of sales that provides greater comparability
across reporting periods by excluding the impacts of exchange rate
fluctuations from the translation of functional currencies to the
Canadian dollar. There is no directly comparable IFRS
measure.
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Value of New
Business. VNB represents the present value of our best
estimate of future distributable earnings, net of the cost of
capital, from new business contracts written in a particular time
period, except new business in our Asset Management pillar. The
assumptions used in the calculations are generally consistent with
those used in the valuation of our insurance contract liabilities
except that discount rates used approximate theoretical return
expectations of an equity investor. Capital required is based on
the higher of Sun Life Assurance's LICAT operating target and local
(country specific) operating target capital. VNB is a useful metric
to evaluate the present value created from new business contracts.
There is no directly comparable IFRS measure.
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Pre-tax net
operating profit margin ratio for MFS. This ratio is a
measure of the profitability of MFS, which excludes the impacts of
fair value adjustments on MFS's share-based payment awards,
investment income, and certain commission expenses that are
offsetting. These commission expenses are excluded in order to
neutralize the impacts these items have on the pre-tax operating
profit margin ratio and have no impact on the profitability of MFS.
There is no directly comparable IFRS measure.
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After-tax profit
margin for U.S. Group Benefits. This ratio assists in
explaining our results from period to period and is a measure of
profitability that expresses U.S. employee benefits and medical
stop-loss underlying net income as a percentage of net premiums.
This ratio is calculated by dividing underlying net income (loss)
by net premiums for the trailing four quarters. There is no
directly comparable IFRS measure.
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Forward-looking
Statements
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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
our growth initiatives and other business objectives, (iii) that
are predictive in nature or that depend upon or refer to future
events or conditions, and (iv) 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. 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 2019 MD&A under the headings C - Profitability - 5 - Income
taxes, E - Financial Strength and H - Risk Management and in SLF
Inc.'s 2018 AIF under the heading Risk Factors and the factors
detailed in SLF Inc.'s other filings with Canadian and U.S.
securities regulators, which are available for review at
www.sedar.com and www.sec.gov, respectively.
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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: credit risks - related to issuers of securities
held in our investment portfolio, debtors, structured securities,
reinsurers, counterparties, other financial institutions and other
entities; market risks - related to the performance of
equity markets; changes or volatility in interest rates or credit
spreads or swap spreads; real estate investments; and fluctuations
in foreign currency exchange rates; insurance risks -
related to policyholder behaviour; mortality experience, morbidity
experience and longevity; product design and pricing; the impact of
higher-than-expected future expenses; and the availability, cost
and effectiveness of reinsurance; 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;
changes in the legal or regulatory environment, including capital
requirements and tax laws; the environment, environmental laws and
regulations; tax matters, including estimates and judgments used in
calculating taxes; 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 the impact of mergers, acquisitions and
divestitures; 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; and
liquidity risks - the possibility that we will not be able
to fund all cash outflow commitments as they fall
due.
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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.
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About Sun
Life SLF Inc. is a leading international financial services
organization providing insurance, wealth and asset management
solutions to individual and corporate Clients. Sun Life has
operations in a number of markets worldwide, including Canada, the
United States, the United Kingdom, Ireland, Hong Kong, the
Philippines, Japan, Indonesia, India, China, Australia, Singapore,
Vietnam, Malaysia and Bermuda. As of September 30, 2019, Sun
Life had total AUM of $1,063 billion. For more information please
visit www.sunlife.com.
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Sun Life Financial
Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine
(PSE) stock exchanges under the ticker symbol SLF.
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SOURCE Sun Life Financial Inc.