Sun Life Financial Inc. Q1 FY2026 earnings call

At SLC, achieved acquisitions, advanced leadership alignment, and announced intention to acquire Bell Partners. Canada: wealth platform builds ETF platform. Asia: strong sales momentum, Hong Kong and Indonesia perform well. U.S.: dental business rebuild progresses, digital capabilities advanced. Canada: insurance sales change, wealth AUMA up; U.S.: medical stop-loss sales grow; Asia: net income up. Digital: Asia data-driven underwriting, Malaysia AI chatbot, Canada AI in multiple areas.

Underlying net income was $1.05 billion. Strong protection income results were driven by growth in Canada, Asia, and U.S. stop-loss. Sun Life Asset Management: MFS had consistent earnings year-over-year; SLC management results were below expectations but expected to rebound. Insurance sales saw significant growth, driven by Asia and U.S. Asset management growth sales remain strong. MFS U.S. equity outflows increased. Canada underlying net income increased 7%; U.S. underlying net income up 6% from medical stop-loss growth; Asia underlying net income increased 23% driven by robust sales growth.

Expect SLC earnings to rebound solidly over remainder of 2026. Confident in ability to continue creating value by executing strategy. SLC expected to rebound strongly; businesses have growth opportunities.

Reported net income impacted by market adjustments and one-time items. SLC management results below expectations risk. U.S. dental business repositioning risk. Market volatility impact on LICAT ratio.

Q: Doug Young asks about decline in LICAT from 157 to 143.

A: Tim explains 10% from SLC acquisitions, 2% from markets, 1% from legal provision, etc.

Q: Gabrielle DeShane asks about morbidity experience in stop-loss business.

A: David says stop-loss performed well but offset by disability experience.

Q: Mike Ward asks about Asia strength drivers and U.S. business mix.

A: Manjit talks about distribution investments, brand strength, etc.; Kevin and David discuss U.S. benefit space focus.

Q: Paul Holden asks about U.S. business profitability.

A: Brendan Kennedy and Brett discuss trading gains and cohort experience.

Q: Tom McKinnon asks about SLC rebound.

A: Steve comments on SLC quarter factors and future growth.

Q: Darko Mielic asks about Canadian business mix and CSM growth.

A: Jessica and Kevin discuss par and non-par sales balance and wealth business growth.

Q: Darko Mielic asks about U.S. medical stop-loss run rate.

A: David says focused on 7% after-tax margin for group benefits