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 March 31, 2024 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 March 31, 2024, prepared in accordance with International Financial Reporting Standards ("IFRS"). We report certain financial information using non-IFRS financial measures. For more details, refer to the Non-IFRS Financial Measures section in this document. Additional information relating to SLF Inc. is available on www.sunlife.com under Investors – Financial results and reports, on the SEDAR+ website at www.sedarplus.ca, and on the U.S. Securities and Exchange Commission's website at www.sec.gov. Reported net income (loss) refers to Common shareholders' net income (loss) determined in accordance with IFRS. Unless otherwise noted, all amounts are in Canadian dollars. Amounts in this document may be impacted by rounding. Certain 2023 results in the Drivers of Earnings and CSM Movement Analysis were refined to more accurately reflect how the business is managed. TORONTO, May 9, 2024 /CNW/ - Sun Life Financial Inc. (TSX:SLF) (NYSE:SLF) announced its results for the first quarter ended March 31, 2024. Underlying net income(1) of $875 million decreased $20 million or 2% from Q1'23; underlying ROE(1) was 16.0%. Wealth & asset management underlying net income(1): $408 million, down $3 million or 1%. Group - Health & Protection underlying net income(1): $280 million, down $23 million or 8%. Individual - Protection underlying net income(1): $278 million, down $13 million or 4%. Corporate expenses & other(1): $(91) million net loss, improved $19 million or 17%. Reported net income of $818 million increased $12 million or 1% from Q1'23; reported ROE(1) was 15.0%. Assets under management ("AUM")(1) of $1,470 billion increased $106 billion or 8% from Q1'23. Increase to common share dividend from $0.78 to $0.81 per share. "In the first quarter, we delivered on our Client Impact strategy by advancing our asset management and insurance businesses with strong growth in insurance sales, CSM and AUM," said Kevin Strain, President and CEO of Sun Life. "Underlying earnings were affected by the sale of Sun Life UK, higher morbidity claims, and the end of the Public Health Emergency in the U.S. Our capital remains strong and this quarter, we announced a 4% increase to our shareholder dividend and expect to actively continue share buybacks in the second quarter." Financial and Operational Highlights Quarterly results Profitability Q1'24 Q1'23 Underlying net income ($ millions)(1) 875 895 Reported net income - Common shareholders ($ millions) 818 806 Underlying EPS ($)(1)(2) 1.50 1.52 Reported EPS ($)(2) 1.40 1.37 Underlying return on equity ("ROE")(1) 16.0 % 17.3 % Reported ROE(1) 15.0 % 15.6 % Growth Q1'24 Q1'23 Wealth sales & asset management gross flows ($ millions)(1) 46,898 46,349 Group - Health & Protection sales ($ millions)(1)(3) 528 509 Individual - Protection sales ($ millions)(1) 757 511 Assets under management ("AUM") ($ billions)(1) 1,470 1,364 New business Contractual Service Margin ("CSM") ($ millions)(1) 347 232 Financial Strength Q1'24 Q1'23 LICAT ratios (at period end)(4) Sun Life Financial Inc. 148 % 148 % Sun Life Assurance(5) 142 % 144 % Financial leverage ratio (at period end)(1)(6) 21.1 % 23.2 % ________________ (1) Represents a non-IFRS financial measure. For more details, see the Non-IFRS Financial Measures section in this document and in the Q1'24 MD&A. (2) All earnings per share ("EPS") measures refer to fully diluted EPS, unless otherwise stated. (3) Prior period amounts related to U.S. Dental sales have been restated to reflect new information.  (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 Canada ("Sun Life Assurance") is SLF Inc.'s principal operating life insurance subsidiary. (6) The calculation for the financial leverage ratio includes the CSM balance (net of taxes) in the denominator. The CSM (net of taxes) was $9.9 billion as at March 31, 2024 (March 31, 2023 - $9.0 billion). Financial and Operational Highlights - Quarterly Comparison (Q1'24 vs. Q1'23) ($ millions) Q1'24 Underlying net income by business type(1)(2): Sun Life Asset Management Canada U.S. Asia Corporate Wealth & asset management 408 282 109 — 17 — Group - Health & Protection 280 — 114 166 — — Individual - Protection 278 — 87 23 168 — Corporate expenses & other (91) — — — (8) (83) Underlying net income(1) 875 282 310 189 177 (83) Reported net income - Common shareholders 818 284 290 97 235 (88) Change in underlying net income (% year-over-year) (2) % nm(3) (2) % (20) % 26 % nm(3) Change in reported net income (% year-over-year) 1 % 12 % (12) % (42) % 75 % nm(3) Wealth sales & asset management gross flows(1) 46,898 40,718 4,079 — 2,101 — Group - Health & Protection sales(1) 528 — 311 191 26 — Individual - Protection sales(1) 757 — 130 — 627 — Change in wealth sales & asset management gross flows (% year-over-year) 1 % nm(3) 32 % — (14) % — Change in group sales (% year-over-year) 4 % — 114 % (44) % 4 % — Change in individual sales (% year-over-year) 48 % — (4) % — 67 % — (1) Represents a non-IFRS financial measure. For more details, see the Non-IFRS Financial Measures section in this document and in the Q1'24 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 Q1'24 MD&A. (3) Not meaningful. Underlying net income(1) of $875 million decreased $20 million from prior year, driven by: Wealth & asset management(1) down $3 million: Higher fee income offset by higher expenses in Asset Management, as well as lower net seed investment income in SLC Management. Group - Health & Protection(1) down $23 million: Less favourable morbidity experience in U.S. medical stop-loss and lower results in U.S. Dental primarily reflecting the impact of Medicaid redeterminations following the end of the Public Health Emergency, partially offset by strong revenue growth in U.S. Group Benefits, and business growth and improved disability experience in Canada. Individual - Protection(1) down $13 million: Lower earnings due to the sale of Sun Life UK(2) partially offset by business growth in Asia. Corporate expenses & other(1) $19 million decrease in net loss driven by lower financing costs. Reported net income of $818 million increased $12 million from prior year, driven by: Gains on partial sale of ABSLAMC(3) and the early termination of a distribution agreement in Asset Management; largely offset by The prior year gain on sale of the sponsored markets business in Canada(4); Fair value changes in management's ownership of MFS(5) shares; and The decrease in underlying net income. Unfavourable real estate experience(6) was mostly offset by favourable interest rate impacts. Underlying ROE was 16.0% and reported ROE was 15.0% (Q1'23 - 17.3% and 15.6%, respectively). SLF Inc. ended the quarter with a LICAT ratio of 148%. _______________ (1) Refer to section C - Profitability in the Q1'24 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 ...