Q2 2024 Sun Life Financial Inc Earnings Call Transcript
Key Points
- Sun Life Financial Inc (SLF) reported a record underlying net income of $1 billion for Q2 2024, representing a 9% growth over the prior year.
- Strong individual protection sales in Canada and Asia, along with robust performance in US Group Benefits, drove the positive results.
- Wealth and Asset Management businesses saw good earnings momentum due to increased assets under management and higher fee income from MFS.
- The company executed the largest transaction in the Canadian pension risk transfer market by a single insurer, representing a $1.2 billion institutional sale.
- Sun Life Financial Inc (SLF) maintains a strong capital position with a LICAT ratio of 150% and an underlying ROE of 18.1%, in line with medium-term financial objectives.
- The US dental business continues to face headwinds, impacting underlying earnings.
- MFS experienced net outflows of $14.8 billion, driven by secular shifts from active to passive investments and cyclical impacts of high interest rates.
- Reported earnings were lower than underlying earnings due to market-related impacts, including a restructuring charge and real estate headwinds.
- The restructuring charge of $108 million post-tax is expected to deliver over $200 million in pretax savings by 2026, indicating ongoing cost-cutting measures.
- Group health and protection businesses saw a 15% decline in underlying earnings year-over-year, affected by unfavorable morbidity experience and lower US dental results.
Good morning, and welcome to the Sun Life Financial Q2 2024 conference call. My name is Kayla, and I will be your conference operator today. (Operator Instructions) And the conference is being recorded. (Operator Instructions) The host of the call is David Garg, Senior Vice President, Capital Management and Investor Relations. Please go ahead, Mr. Garg.
Thank you and good morning, everyone. Welcome to Sun Life's earnings call for the second quarter of 2024. Our earnings release and the slides for today's call are available on the Investor Relations section of our website at sunlife.com. We will begin today's call with opening remarks from Kevin Strain, President and Chief Executive Officer. Following Kevin, Tim, Deakin, Executive Vice President and Chief Financial Officer, will present the financial results for the quarter.
After the prepared remarks, we will move to the question-and-answer portion of the call. Other members of management are also
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
