PR Newswire
TORONTO, May 9, 2017
The information in this document is based on the unaudited interim financial results of Sun Life Financial Inc. for the period ended March 31, 2017. Sun Life Financial Inc., its subsidiaries and, where applicable, its joint ventures and associates are collectively referred to as "the Company", "Sun Life Financial", "we", "our", and "us". Unless otherwise noted, all amounts are in Canadian dollars. Beginning in the first quarter of 2017, we will no longer report operating net income and its related measures, operating earnings per share ("EPS")(1) and operating return on equity ("ROE")(1). The adjustments previously used to derive operating net income will continue to be used to derive underlying net income.
TORONTO, May 9, 2017 /PRNewswire/ - Sun Life Financial Inc. (TSX: SLF) (NYSE: SLF) today announced its results for the first quarter ended March 31, 2017. First quarter reported net income was $551 million and underlying net income(1) was $573 million.
| | | | Q1'17 | | Q1'16 |
Reported net income ($ millions) | | | | 551 | | 540 |
Underlying net income(1) ($ millions) | | | | 573 | | 582 |
| | | | | | |
Reported EPS(2) ($) | | | | 0.89 | | 0.88 |
Underlying EPS(1)(2) ($) | | | | 0.93 | | 0.95 |
| | | | | | |
Reported ROE(1) | | | | 11.0% | | 11.5% |
Underlying ROE(1) | | | | 11.5% | | 12.4% |
"Our first quarter results delivered $573 million in underlying net income and a 11.5% ROE," said Dean Connor, President and CEO, Sun Life Financial. "We achieved strong top line growth with a 58% increase in insurance sales and 13% increase in wealth sales, compared to the same period last year. Assets under management grew to $927 billion during the quarter, and our Canadian and Asia pillars performed well, however, we saw lower results in our U.S. business and MFS continued to experience recent trends in net outflows."
"In the quarter we continued to make it easier for Clients to do business with us, and to be more proactive. For example, for a portion of our Canadian plan sponsors whose employees use our new digital enrolment tool, we helped them get the most from their plans and this contributed to an increase in retirement savings in 70% of these plans. We also extended our reach to Clients, investing in a digital financial services platform in Vietnam, and acquiring Premier Dental Group, Inc. expanding our dental preferred provider network in the U.S. Elevating our Client focus goes hand in hand with supporting our growth momentum and achieving our medium-term objectives of 8% to 10% EPS growth, 12% to 14% ROE and a strong dividend payout ratio," Connor concluded.
____________________ | |
(1) | Represents a non-IFRS financial measure. See Use of Non-IFRS Financial Measures and Reconciliation of Non-IFRS Financial Measures. |
(2) | All EPS measures refer to fully diluted EPS, unless otherwise stated. For underlying EPS, refer to Use of Non-IFRS Financial Measures. |
(3) | For additional information, see the section under the heading Capital Management. |
Operational Highlights
Our strategy is focused on four key pillars of growth, where we aim to be a leader in the markets in which we operate. We detail our continued progress in these pillars below.
A Leader in Insurance and Wealth Solutions in our Canadian home market
SLF Canada delivered strong overall sales in the first quarter of 2017. Individual insurance sales doubled to $144 million, driven by strong third-party sales of participating whole life and universal life insurance as a result of tax legislation and product design changes. Individual Wealth sales of $1.7 billion were 16% above the same quarter of the prior year with continued growth from our wealth manufactured(1) products including SLGI(2) mutual funds, Sun GIF(3) segregated funds and increases in fixed product sales.
Group Benefits ("GB") sales more than doubled and Group Retirement Services ("GRS") sales increased approximately 76% compared to the first quarter of 2016, primarily due to several large-case sales.
A Leader in global Asset Management
SLF Asset Management ended the first quarter with $643 billion in assets under management consisting of $587 billion (US$441 billion) from MFS Investment Management ("MFS") and $56 billion from Sun Life Investment Management ("SLIM"). MFS's net outflows of US$11.1 billion were primarily driven by institutional Client portfolio rebalancing and the trend to passive investing. SLIM had net inflows of $2.2 billion driven primarily by strong sales at Prime Advisors, Inc.
MFS long-term retail fund performance remained strong with 80%, 79% and 96% of MFS's U.S. retail mutual fund assets ranked in the top half of their Lipper categories based on three-, five- and ten-year performance, respectively, as of March 31, 2017.
A Leader in U.S. Group Benefits and International high net worth solutions
Group Benefits sales increased compared to the first quarter of 2016 reflecting a full quarter of production from our unified sales team and expanded product portfolio as a result of our U.S. employee benefits acquisition a year ago. This was partially offset by a decrease in stop-loss sales due to pricing actions taken to enhance profitability. International sales increased compared to the first quarter of the prior year.
A Leader in Asia through Distribution Excellence in Higher Growth Markets
SLF Asia individual insurance sales increased by 31% over the first quarter of the prior year, with growth in all markets. Increased sales were driven by a balance of organic growth and increases in ownership of our India, Indonesia and Vietnam businesses. Strong wealth sales in Asia of $2.9 billion were led by growth in India, at our joint venture mutual fund company, Birla Sun Life Asset Management, which manages over $40 billion in AUM and is the fourth largest mutual fund operation in India(4).
__________________ | |
(1) | Represents sales of individual wealth products developed by Sun Life, which include Sun Life Global Investments mutual funds, Sun Life Guaranteed Investment Funds segregated funds, Guaranteed Investment Certificates, and Accumulation and Payout Annuities. |
(2) | Sun Life Global Investments (Canada) Inc. |
(3) | Sun Life Guaranteed Investment Funds |
(4) | Based on average AUM in the first quarter of 2017. |
How We Report Our Results
Sun Life Financial Inc. ("SLF Inc."), its subsidiaries and, where applicable, its joint ventures and associates are collectively referred to as "the Company", "Sun Life Financial", "we", "our", and "us". We manage our operations and report our financial results in five business segments: Sun Life Financial Canada ("SLF Canada"), Sun Life Financial United States ("SLF U.S."), Sun Life Financial Asset Management ("SLF Asset Management"), Sun Life Financial Asia ("SLF Asia"), and Corporate. Information concerning these segments is included in our annual and interim consolidated financial statements and accompanying notes ("Annual Consolidated Financial Statements" and "Interim Consolidated Financial Statements", respectively). We prepare our unaudited Interim Consolidated Financial Statements using International Financial Reporting Standards ("IFRS"), and in accordance with the International Accounting Standard ("IAS") 34 Interim Financial Reporting. Reported net income (loss) refers to Common shareholders' net income (loss) determined in accordance with IFRS.
The information in this document is in Canadian dollars unless otherwise noted.
Use of 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 as alternatives to measures of financial performance determined in accordance with IFRS. Additional information concerning these non-IFRS financial measures and reconciliations to the closest IFRS measures are included in our annual and interim management's discussion and analysis ("MD&A") and the Supplementary Financial Information packages that are available on www.sunlife.com under Investors – Financial results & reports. Reconciliations to IFRS measures are also available in this document under the heading Reconciliation of Non-IFRS Financial Measures.
Updates to Non-IFRS measures
Beginning in the first quarter of 2017, we will no longer report operating net income and its related measures, operating EPS and operating return on equity ("ROE"), in order to streamline our use of non-IFRS financial measures. The adjustments previously used to derive operating net income will continue to be used to derive underlying net income.
Non-IFRS measures
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 impact 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, which include: (i) the impact of returns in equity markets, net of hedging, above or below our best estimate assumptions of approximately 2% per quarter in the reporting period and of basis risk inherent in our hedging program for products that provide benefit guarantees; (ii) the impact of changes in interest rates that differ from our best estimate assumptions 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 impact of changes in the fair value of real estate properties in the reporting period. Additional information regarding these adjustments is available in the footnotes to the table included under the heading Q1 2017 vs. Q1 2016 in the Financial Summary section in this document; |
(b) | assumption changes and management actions, which include: (i) the impact of revisions to the assumptions used in determining our liabilities for insurance contracts and investment contracts and (ii) the impact 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; |
(c) | certain hedges in SLF 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; |
(d) | 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; |
(e) | acquisition, integration and restructuring amounts (including impacts related to acquiring and integrating acquisitions); and |
(f) | other items that when removed assist in explaining our results from period to period. |
Underlying EPS also excludes the dilutive impact of convertible instruments.
Other non-IFRS financial measures that we use include reported ROE, adjusted revenue, administrative services only ("ASO") premium and deposit equivalents, mutual fund assets and sales, managed fund assets and sales, life and health sales, premiums and deposits, adjusted premiums and deposits, assets under management ("AUM"), assets under administration, pre-tax operating profit margin for MFS, measures based on a currency adjusted basis, real estate market sensitivities, assumption changes and management actions, and effective income tax rate on an underlying net income basis.
All EPS measures in this document refer to fully diluted EPS, unless otherwise stated. As noted above, underlying EPS exclude the dilutive impact of convertible instruments.
Additional Information
Additional information about SLF Inc. can be found in our Annual and Interim Consolidated Financial Statements, annual and interim MD&A and Annual Information Form ("AIF"). These documents are filed with securities regulators in Canada and are available at www.sedar.com. SLF Inc.'s Annual Consolidated Financial Statements, annual MD&A and AIF are filed with the United States Securities and Exchange Commission ("SEC") in SLF Inc.'s annual report on Form 40-F and SLF Inc.'s interim MD&As and Interim Consolidated Financial Statements are furnished to the SEC on Form 6-Ks and are available at www.sec.gov.
Financial Summary
| | | | | | |
($ millions, unless otherwise noted) | Q1'17 | Q4'16 | Q3'16 | Q2'16 | Q1'16 | |
Net income (loss) | | | | | | |
| Reported net income (loss) | 551 | 728 | 737 | 480 | 540 |
| Underlying net income (loss)(1) | 573 | 560 | 639 | 554 | 582 |
Diluted EPS ($) | | | | | | |
| Reported EPS (diluted) | 0.89 | 1.18 Werbung Mehr Nachrichten zur Sun Life Financial Aktie kostenlos abonnieren
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