Pa e q323 Finsupp

Financial and Operating Results
Supplementary Financial Information
Sun Life Financial Inc. (unaudited)

For the period ended September 30, 2023
SUPPLEMENTARY FINANCIAL INFORMATION
TABLE OF CONTENTS
Page Page
Non-IFRS Financial Measures 1 Investments
Debt and Equity Securities 32
Financial Highlights 2-3 Properties, Mortgages & Loans and Derivatives 33
Consolidated Financial Statements Expenses

Statements of Operations 4 Operating Expenses and Commissions 34
Drivers of Earnings 5-6 Interest Expense 34
Underlying Net Income by Business Type 5
Statements of Financial Position 7 Financial Strength and Capital Adequacy
Statements of Equity 8 Financial Strength and Debt Ratings 35
LICAT Ratio – Sun Life Financial Inc. and Capital 9
Contractual Service Margin Movement Analysis 10 General Information 36
Segmented Results (Business Groups & Associated Business Units) Appendix
Asset Management 11 Net Income Reconciliations 37-40

MFS 12 MFS Reconciliations 41
SLC Management 13-14 Asset Management Reported Net Income Reconciliation 42
Canada 15-17 SLC Management Reported Net Income Reconciliation 43
Canada Business Unit Summary 18 Diluted Earnings Per Share Reconciliation 44
U.S. 19-24 Drivers of Earnings Reconciliations 45-49
U.S. Business Unit Summary 25 Additional Non-IFRS Financial Measures Glossary 50-51
Asia 26-28 Reporting Refinements 51
Asia Business Unit Summary 29 Understanding the Drivers of Earnings 52-53
Corporate 30-31
New and Amended International Financial Reporting Standards Adopted in 2023
Sun Life Financial Inc. ('the Company", "Sun Life",“we”,“our” and "us") adopted IFRS 17 Insurance Contracts and IFRS 9 Financial Instruments (“IFRS 17” and “IFRS 9",
respectively, and “IFRS 17/9”, collectively) on January 1, 2023. Restated 2022 IFRS 17 comparative period results have been provided. For IFRS 9, we elected not to
restate comparative period results, but will present comparative information on financial assets as if IFRS 9 were applicable during the 2022 comparative period
(“classification overlay”).
Note to Readers: Restated Results on Adoption of IFRS 17 and IFRS 9

2022 results have been restated for the adoption of IFRS 17 and the related IFRS 9 classification overlay (“the new standards”). The restated results may not be fully
representative of our future earnings profile, as in 2022 we were not managing our asset and liability portfolios under the new standards. The majority of the actions taken to
re-balance asset portfolios and transition asset-liability management execution to an IFRS 17 basis occurred in Q1 2023. Accordingly, analysis based on 2022 comparative
results may not necessarily be indicative of future trends, and should be interpreted with this context. Using sensitivities to analyze the outlook for market risk and related
impacts (e.g., interest rate sensitivities) will be more representative starting with the sensitivities disclosed for Q1 2023 and onwards in section I - Risk Management of the
Company's Management's Discussion and Analysis ("MD&A") for each respective quarter. Certain 2022 restated results and 2023 interim results in the Drivers of Earnings
and CSM Movement Analysis were refined to more accurately reflect how management views the business. As these results are not audited, or have not yet been audited,
they may still be subject to change.
Basis of Presentation
All amounts in this document are presented in millions of Canadian dollars unless otherwise indicated. We prepare our unaudited Interim Consolidated Financial Statements
using International Financial Reporting Standards ("IFRS"), the accounting requirements of the Office of the Superintendent of Financial Institutions ("OSFI") and in
accordance with the International Accounting Standards ("IAS") 34 Interim Financial Reporting as issued and adopted by the International Accounting Standards Board
("IASB"). Reported net income (loss) refers to common shareholders' net income (loss) determined in accordance with IFRS.
This document and the Q3 2023 MD&A contain certain amounts that are presented on a net basis to reflect how management views the business, compared to a gross
basis in the Consolidated Financial Statements. Examples include:
(1) Within the Drivers of Earnings: i) Net investment result and Other expenses of the Asset Management operating segment are combined with Fee Income to report the
net contribution to earnings; ii) Income for fee-based businesses is reported net of the associated expenses; iii) Carried interest in SLC Management excludes the carried
interest that Sun Life does not participate in economically, and nets the non-controlling interest against fee income and expenses of consolidated funds; iv) Net investment
results include assets returns net of the crediting rate for investment contract liabilities and the unwinding of and changes in the discount rate for insurance contract
liabilities; v) Earnings on surplus reflects net spread earned from investment strategies; vi) Earnings attributable to the participating account are excluded; and vii)
Assumption changes and management actions combines the amounts included in Net insurance service result and Net investment result.
(2) Within the CSM Movement Analysis: i) The impacts of insurance contracts issued is presented net of reinsurance; ii) Impact of new business is presented net of
acquisition expense gain/loss; and iii) Certain methodology changes are presented as an impact of change in assumptions, whereas the Consolidated Financial Statement
presentation is a contract modification.
For more information on the Drivers of Earnings and CSM Movement Analysis, refer to the Non-IFRS Financial Measures section on the subsequent page of this document
or Section N. Non-IFRS Financial Measures of the Company's Q3 2023 MD&A. For the reconciliations of the Statements of Operations to the DOE, refer to the Drivers of
Earnings Reconciliations section in the appendix of this document.
Constant Currency Measures

Constant currency measures are calculated using the average currency and period end rates, as appropriate, in effect in the comparable period. Constant currency
measures are non-IFRS financial measures. See Section N. Non-IFRS Financial Measures, 3. Additional Non-IFRS Financial Measures of the Company's Q3 2023 MD&A.
Rounding
Amounts in this document may be impacted by rounding.
Adjustments
Acquisition, Integration and Restructuring
In Q3 2023, amounts include DentaQuest Group, Inc. ("DentaQuest") integration costs of $31 million post-tax and the unwinding of the discount for Other financial liabilities
of $21 million post-tax for BentallGreenOak ("BGO"), InfraRed Capital Partners ("InfraRed") the Crescent Capital Group LP ("Crescent") and Advisors Asset Management
Inc. ("AAM") (collectively, "SLC Management's affiliates").
In Q2 2023, amounts include DentaQuest integration costs of $32 million post-tax and the unwinding of the discount for Other financial liabilities of $21 million post-tax for
SLC Management's affiliates. Amounts also include a $19 million post-tax gain resulting from the completion of the sale of SLF of Canada UK Limited to Phoenix Group
Holdings plc ("Phoenix Group") on April 3, 2023 ("the sale of Sun Life UK"). After the sale, the remaining UK payout annuities business has moved to the U.S. business
segment and is combined with U.S. In-force Management.
In Q1 2023, amounts include DentaQuest integration costs of $29 million post-tax and AAM acquisition costs of $16M post-tax, as well as the unwinding of the discount for
Other financial liabilities of $20 million post-tax for SLC Management's affiliates. Amounts also include Canada's $65 million post-tax gain on sale of its sponsored markets
business to Canadian Premier Life Insurance Company, which was recognized in Other income.
SLC Management's affiliates, BGO, InfraRed, and Crescent.
SLC Management's affiliates. Amounts also include the changes in estimated future payments for acquisition-related contingent considerations and options to purchase
remaining ownership interests of SLC Management affiliates in the amount of $80 million post-tax, as well as an impairment charge of $170 million (£108 million) pertaining
to the attributed goodwill that is not expected to be recovered through the sale of Sun Life UK to Phoenix Group,
In Q2 2022, amounts include acquisition costs for DentaQuest of $49 million post-tax and unwinding of the discount for Other financial liabilities of $16 million post-tax for
SLC Management's affiliates.
In Q1 2022, amounts include unwinding of the discount for Other financial liabilities of $16 million post-tax for SLC Management's affiliates.
Other
Q4 2022: On December 15, 2022, legislation implementing an additional surtax of 1.5% applicable to banks and life insurers’ taxable income in excess of $100 million was
enacted in Canada ("Canada Tax Rate Change"). This legislation applies retroactively to the Federal Budget date of April 7, 2022. As a result, Reported net income
increased by $141 million in the fourth quarter, reflected in Other adjustments, of which $90 million was in Canada and $51 million was in Corporate.
Q3 2022: In October 2022, a matter related to reinsurance pricing for our U.S. In-force Management business was resolved, resulting in a charge of $48 million (US$37
million) post-tax in the third quarter and a further charge of $11 million (US$8 million) post-tax in the fourth quarter of 2022.
Q2 2022: There was a $94 million pre-tax or $75 million post-tax gain related to the sale-leaseback arrangement on our Wellesley property, including the write-off of
leasehold improvements ("Sale of Wellesley Property in the U.S.").
ii
Non-IFRS Financial Measures
Sun Life prepares annual and interim financial statements using IFRS. We report certain financial information that are not based on IFRS (“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 in isolation from or as alternatives to measures of financial
performance determined in accordance with IFRS. Additional information concerning non-IFRS financial measures and, if applicable, reconciliations to the closest IFRS measures are
available in the Company’s annual and interim MD&A and the Supplementary Financial Information packages on www.sunlife.com under Investors – Financial results and reports.
Underlying Net Income

Underlying net income is a non-IFRS financial measure that assists in understanding Sun Life’s business performance by making certain adjustments to IFRS income. Underlying net
income, along with common shareholders’ net income (Reported net income), is used as a basis for management planning, and is also a key measure in our employee incentive
compensation programs. This measure reflects management’s view of the underlying business performance of the Company and long-term earnings potential. For example, due to the
longer term nature of our individual protection businesses, market movements related to interest rates, equity markets and investment properties can have a significant impact on Reported
net income in the reporting period. However, these impacts are not necessarily realized, and may never be realized, if markets move in the opposite direction in subsequent periods or, in
the case of interest rates, the fixed income investment is held to maturity.
Underlying net income removes the impact of the following items from reported net income:
• Market-related impacts reflecting the after-tax difference in actual versus expected market movements, including:
i. Net interest impact from risk-free rate, credit spread, and swap spread movements, reflecting accounting mismatches between assets and liabilities:
a. Differences arising from fair value changes (1) of fixed income assets (including derivatives) measured at Fair value through profit or loss (FVTPL) supporting insurance
contracts, compared to fair value changes of the liabilities (2);
b. Fair value changes of fixed income assets (including derivatives) measured at FVTPL supporting our investment contract liability and surplus portfolios (3); and
c. Tax-exempt investment income above or below expected long-term tax savings relating to our Canadian multi-national insurance operations.
ii. Non-fixed income investments, where the weighted average expected return is approximately 2% per quarter, including:
a. Equity investments (including derivatives) supporting insurance contracts and surplus portfolios; and
b. Investment properties supporting insurance contracts and surplus portfolios.
• Assumptions changes and management actions (ACMA) – captures the impact of method and assumption changes, and management actions on insurance and reinsurance contracts.
• Other adjustments:
i. Management’s ownership of MFS shares – this adjustment removes the change in fair value and other activity related to MFS common shares owned by management;
ii. Acquisition, integration, and restructuring - expense and income related to acquisition or disposal of a business. Also includes expenses related to restructuring activities;
Intangible asset amortization - removes the amortization expense associated with finite life intangible assets arising from acquisitions or business combinations excluding
iii. amortization of software and distribution agreements; and
iv. Other – represents items that are unusual or exceptional in nature which management believes are not representative of the long-term performance of the Company.
Refer to Net Income Reconciliations - Pre-Tax and Post-Tax in the appendix of this document for the non-underlying adjustments from underlying net income to reported net income, as well
as Section N. Non-IFRS Financial Measures, 2. Underlying Net Income and Underlying EPS and 4. Reconciliations of Select Non-IFRS Financial Measures of the Company's Q3 2023
MD&A.
For more information about business types in Sun Life's operating segments/business groups, see the General Information section of this document and Section A. How We Report Our
Results under the heading Underlying Net Income by Business Types of the Company's Q3 2023 MD&A.
Underlying Diluted Earnings per Share (EPS)

This measure is used in comparing the profitability across multiple periods and is calculated by dividing Underlying net income by weighted average common shares outstanding for diluted
EPS, excluding the dilutive impact of convertible instruments. For additional information about the Underlying net income, see above. For additional information about the composition of the
EPS, please refer to Note 14 of our Interim Consolidated Financial Statements for the period ended September 30, 2023. For additional information about the SLEECS, please refer to Note
13 of our 2022 Annual Consolidated Financial Statements.
Drivers of Earnings (DOE)

The DOE analysis provides additional detail on the sources of earnings, primarily for protection and health businesses, and explains the actual results compared to the longer term
expectations. The DOE is presented on a reported and underlying common shareholders' basis. Within the net insurance service result, the underlying DOE provides detail on expected
insurance earnings, impact of new insurance business and experience gains (losses). Within the net investment result, the underlying DOE provides detail on expected investment
earnings, credit experience, earnings on surplus, and joint ventures & other. For more information on the DOE, see Understanding the Drivers of Earnings in the appendix of this document
and Section N. Non-IFRS Financial Measures, 3. Additional Non-IFRS Financial Measures under the heading Driver of Earnings of the Company's Q3 2023 MD&A. Refer to the Basis of
Presentation section on page ii of this document for more information about certain amounts that are presented on a net basis to reflect how management views the business, compared to
a gross basis in the Consolidated Financial Statements, and the reconciliations of the Statements of Operations to the DOE in the Drivers of Earnings Reconciliations section in the
appendix of this document.
Contractual Service Margin (CSM)

Contractual Service Margin represents a source of stored value for future insurance profits and qualifies as available capital for LICAT purposes. CSM is a component of insurance contract
liabilities. Refer to the Basis of Presentation section on page ii of this document for more information about certain amounts that are presented on a net basis to reflect how management
views the business, compared to a gross basis in the Consolidated Financial Statements.
Organic CSM Movement is comprised of the Impact of new insurance business, Expected movements from asset returns & locked-in rates, Insurance experience gains/losses, and
• CSM recognized for services provided
• Impact of new insurance business on CSM, also referred to as "new business CSM", represents growth from sales activity in the period, including individual protection sales (excluding
joint ventures), and defined benefit solutions and segregated fund wealth sales in Canada. New business CSM is presented net of acquisition expense gain/loss.
Expected movements from asset returns & locked-in rates applies to variable fee approach (VFA) and general measurement approach (GMA) contracts. For VFA contracts, this
component of the CSM movement analysis is comprised of two factors: (i) the expected return on underlying assets and (ii) the measurement of financial guarantees. The difference
• between actual and expected results are reported as the impact of markets. For GMA contracts, this component of the CSM includes the accretion of the CSM balance at locked-in
rates, which refer to the term structure associated with locked-in discount rates, set when the insurance contract was sold or on transition to IFRS 17. Average locked-in rates increase
with the passage of time on in-force business and new business added at current rates.
• Impact of markets & other includes the difference between actual and expected movement for VFA contracts for: (i) the return on underlying assets and (ii) the measurement of
financial guarantees. Also includes other amounts excluded from Organic CSM Movement.
• Insurance experience gains/losses represents the current period impacts of insurance experience, resulting in a change in future cash flows that adjust CSM.
• Impact of change in assumptions represents the future period impacts of changes in fulfilment cash flows that adjust CSM.
(1)
For fixed income assets, Underlying net income includes credit experience from rating changes on assets measured at FVTPL, and the Expected credit loss (ECL) impact for assets measured at Fair value through other comprehensive income
(FVOCI).
(2)
Underlying net income is based on observable discount curves and exchange rates at the beginning of the period.
(3)
Underlying net income for earnings on surplus includes realized gains (losses) on fixed income assets classified as FVOCI.
1
At and For
the Year
FINANCIAL HIGHLIGHTS At and For the Quarter Ended Ended
(C$ millions, unless otherwise noted) Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 2022
RESULTS
Underlying Net Income by Segment (1)

Asset Management 1 330 296 282 324 298 295 321 1,238
Canada 2 338 372 316 265 293 299 206 1,063
U.S. 3 185 215 237 230 227 134 107 698
Asia 4 166 150 141 135 153 118 133 539
Corporate 5 (89) (113) (81) (62) (22) (38) (47) (169)
Total underlying net income (1) 6 930 920 895 892 949 808 720 3,369
Reported Net Income - Common Shareholders by Segment

Canada 8 365 210 329 453 56 476 256 1,241
U.S. 9 132 175 168 202 125 149 56 532
Asia 10 211 122 134 92 — 7 111 210
Corporate 11 (105) (95) (79) 97 (288) — (69) (260)
Total reported net income - Common shareholders 12 871 660 806 1,165 111 930 665 2,871
Profitability Measures
Basic earnings per common share (EPS)
Reported 13 1.49 1.12 1.37 1.99 0.19 1.59 1.13 4.90
Diluted earnings per common share
Underlying (1) 14 1.59 1.57 1.52 1.52 1.62 1.38 1.23 5.75
Reported 15 1.48 1.12 1.37 1.98 0.19 1.58 1.13 4.89
(1)
Return on equity - underlying 16 17.7% 17.7% 17.3% 17.7% 19.4% 16.7% 14.7% 17.0%
Return on equity - reported (1) 17 16.6% 12.7% 15.6% 23.2% 2.3% 19.2% 13.6% 14.5%
Dividend per common share ($) 18 0.75 0.75 0.72 0.72 0.69 0.69 0.66 2.76
Dividend payout ratio (1)
Underlying 19 47% 48% 47% 47% 43% 50% 54% 48%
Reported (2) 20 51% 67% 53% 36% nm 44% 58% 56%
Dividend yield (1) 21 4.5% 4.5% 4.4% 4.8% 4.7% 4.4% 3.8% 4.4%
Valuation Data
Book value per common share 22 35.91 34.86 35.34 34.60 33.33 32.89 32.61 34.60
Tangible book value per common share (1) 23 15.51 15.20 15.36 14.79 13.15 12.88 18.71 14.79
Price-to-book value (times) 24 1.85 1.98 1.79 1.82 1.65 1.79 2.14 1.82
Total market capitalization (TSX in $ billions) 25 38.7 40.5 37.0 36.9 32.2 34.6 40.9 36.9
Common Share Information (SLF on TSX)

High (intraday) 26 70.11 69.18 69.09 64.64 62.44 70.54 74.22 74.22
Low (intraday) 27 63.33 62.67 60.01 52.97 54.11 57.21 64.62 52.97
Close (end of period) 28 66.27 69.06 63.14 62.85 54.93 58.98 69.80 62.85
Financial Strength
SLF LICAT ratio (3) 29 147% 148% 148% 130% 129% 128% 143% 130%
SLA LICAT ratio (3) 30 138% 139% 144% 127% 123% 124% 123% 127%
Financial leverage ratio (1) 31 21.8% 23.3% 23.2% 25.1% 26.4% 25.7% 25.9% 25.1%
Sales, Gross Flows and Net Flows (1)

Wealth sales & asset management gross flows 32 39,324 42,397 46,349 43,269 42,146 56,279 56,956 198,650
Net wealth sales & asset management net flows 33 (9,122) (3,476) (1,772) (12,055) (8,105) 809 (1,120) (20,471)
Individual - Protection sales 34 669 604 511 498 444 416 409 1,767
Group - Health & Protection sales 35 374 656 543 1,345 499 320 390 2,554
(1)
Represents a non-IFRS financial measure. Refer to the Non-IFRS Financial Measures section on page 1 and the Additional Non-IFRS Financial Measures Glossary in the appendix of this document, or Section N.
Non-IFRS Financial Measures of the Company's Q3 2023 MD&A.
(2)
Reported dividend payout ratio in Q3 2022 is "nm" that is defined as not meaningful.
(3)
Life Insurance Capital Adequacy Test ("LICAT") ratio. Our LICAT ratios are calculated in accordance with OSFI-mandated guideline, Life Insurance Capital Adequacy Test. Sun Life Assurance Company of Canada
("SLA" or "Sun Life Assurance") is SLF Inc.’s principal operating life insurance subsidiary.
2
At and For
the Year
FINANCIAL HIGHLIGHTS CONTINUED At and For the Quarter Ended Ended
Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 2022
Number of Common Shares Outstanding (in millions) (1)

At beginning of period 1 586.9 586.7 586.4 586.1 586.1 586.1 586.0 586.0
Common shares issued 2 0.2 0.2 0.3 0.3 — — 0.1 0.4
Common shares purchased and cancelled 3 (2.8) — — — — — — —
At end of period 4 584.3 586.9 586.7 586.4 586.1 586.1 586.1 586.4
Weighted average shares outstanding - basic 5 586 587 587 586 586 586 586 586
Weighted average shares outstanding - diluted (2) 6 589 590 590 590 589 589 590 589
Assets Under Management and Administration (AUMA) (3)

General funds 7 193,858 196,575 201,792 198,316 198,181 191,786 196,240 198,316
Segregated funds 8 119,988 123,366 131,033 125,292 118,564 120,098 133,496 125,292
Third-party assets under management
Retail 9 544,946 557,093 543,847 527,617 505,679 508,214 568,678 527,617
Institutional and managed & other 10 518,129 527,344 528,897 507,673 485,670 475,394 492,980 507,673
Total third-party assets under management 11 1,063,075 1,084,437 1,072,744 1,035,290 991,349 983,608 1,061,658 1,035,290
Consolidation adjustments 12 (36,780) (37,536) (41,947) (40,337) (38,725) (38,054) (39,686) (40,337)
Total assets under management 13 1,340,141 1,366,842 1,363,622 1,318,561 1,269,369 1,257,438 1,351,708 1,318,561
Total assets under administration 14 94,600 95,961 95,696 43,866 41,815 42,092 45,819 43,866
Total AUMA 15 1,434,741 1,462,803 1,459,318 1,362,427 1,311,184 1,299,530 1,397,527 1,362,427
Select Constant Currency Measures (3)

Underlying net income 16 914 949
Reported net income 17 854 111
Wealth sales & asset management gross flows 18 38,398 42,146
Net wealth sales & asset management net flows 19 (8,840) (8,105)
Assets under management 20 1,358,817 1,269,369
Individual - Protection sales 21 657 444
Group - Health & Protection sales 22 369 499
Underlying earnings per share - diluted 23 1.56 1.62
Reported earnings per share - diluted 24 1.46 0.19
(1)
Certain numbers have been rounded in order to arrive at the number of common shares outstanding at end of period.
(2)
The number of diluted shares outstanding reflect the impact of dilution from the Sun Life ExchangEable Capital Securities (SLEECS) under IFRS. Where the calculation of diluted EPS has resulted in anti-dilution, the dilutive impact of
the SLEECS has been excluded in the number of weighted average number of shares outstanding.
(3)
Represents a non-IFRS financial measure. Refer to the Non-IFRS Financial Measures section on page 1 and the Additional Non-IFRS Financial Measures Glossary in the appendix of this document, or Section N. Non-IFRS Financial
Measures of the Company's Q3 2023 MD&A.
3
For the Year
CONSOLIDATED STATEMENTS OF OPERATIONS For the Quarter Ended Ended
(C$ millions) Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 2022
Insurance service result
Insurance revenue 1 5,333 5,283 5,282 5,305 5,149 4,405 4,043 18,902
Insurance service expenses 2 (4,555) (4,528) (4,564) (4,491) (4,269) (3,941) (3,755) (16,456)
Reinsurance contract held net income (expenses) 3 (66) 20 (30) (63) (289) 116 83 (153)
Net insurance service result 4 712 775 688 751 591 580 371 2,293
Investment result
Investment result excluding result for account of segregated fund holders:
Net investment income (loss) 5 (4,824) 449 4,800 1,168 (2,056) (9,151) (10,541) (20,580)
Insurance finance income (expenses) from insurance contracts issued 6 5,759 (81) (4,371) (640) 2,105 9,951 11,179 22,595
Insurance finance income (expenses) from reinsurance contracts held 7 (144) (38) 63 5 (143) (118) (184) (440)
Decrease (increase) in investment contract liabilities 8 (88) (76) (71) (50) (45) (31) (26) (152)
Net investment result excluding result for account of segregated fund holders 9 703 254 421 483 (139) 651 428 1,423
Investment result for insurance contracts for account of segregated fund holders:
Investment income (loss) on investments for account of segregated fund holders 10 (362) 234 812 1,092 (403) (2,219) (823) (2,353)
Insurance finance income (expenses) 11 362 (234) (812) (1,092) 403 2,219 823 2,353
Net investment result for insurance contracts for account of segregated fund holders 12 — — — — — — — —
Net investment result 13 703 254 421 483 (139) 651 428 1,423
Fee income 14 1,930 1,936 1,901 2,021 1,808 1,779 1,839 7,447
Other expenses (income)
Other income (1) 15 — (67) (102) — — — — —
Operating expenses and commissions 16 2,004 2,023 1,882 1,995 1,911 1,586 1,600 7,092
Interest expenses 17 160 142 135 127 119 101 98 445
Total other expenses (income) 18 2,164 2,098 1,915 2,122 2,030 1,687 1,698 7,537
Income before income taxes 19 1,181 867 1,095 1,133 230 1,323 940 3,626
Less: Income tax expense (benefit) 20 244 127 177 (65) 77 315 219 546
Total net income 21 937 740 918 1,198 153 1,008 721 3,080
Less: Net income (loss) allocated to the participating account 22 37 51 33 (16) 15 55 29 83
Less: Net income (loss) attributable to non-controlling interest (NCI) 23 10 9 59 29 9 9 9 56
Net income - Shareholders 24 890 680 826 1,185 129 944 683 2,941
Less: Preferred shareholders' dividends and distributions on other equity instruments 25 19 20 20 20 18 14 18 70
Reported net income - Common shareholders 26 871 660 806 1,165 111 930 665 2,871
Underlying net income (2) 27 930 920 895 892 949 808 720 3,369
(1)
In Q2 2023, we completed the sale of Sun Life UK and in Q1 2023, we completed the sale of the sponsored markets business. Refer to the Notes page ii, Adjustments - Acquisition, Integration and Restructuring for additional details
and Note 3 of the Consolidated Financial Statements for the period ended June 30, 2023.
(2)
Represents a non-IFRS financial measure. Refer to the Non-IFRS Financial Measures section on page 1 and the Additional Non-IFRS Financial Measures Glossary in the appendix of this document, or Section N. Non-IFRS
Financial Measures of the Company's Q3 2023 MD&A.
4
For the Year
COMMON SHAREHOLDERS' DRIVERS OF EARNINGS - Total Company (1) For the Quarter Ended Ended
Risk adjustment release 1 114 103 95 105 98 95 94 392

Contractual service margin recognized for services provided 2 184 192 199 192 193 175 200 760
Expected earnings on short-term (group) insurance business 3 373 367 378 350 339 270 276 1,235
Expected insurance earnings 4 671 662 672 647 630 540 570 2,387
Impact of new insurance business 5 (12) (12) (12) (31) (22) (16) (22) (91)
Experience gains (losses) 6 81 144 16 105 77 12 (134) 60
Net insurance service result - Underlying 7 740 794 676 721 685 536 414 2,356
Expected investment earnings 8 218 221 217 165 171 159 158 653
Credit experience 9 (8) (4) (10) (15) — 9 (20) (26)
Earnings on surplus 10 155 165 161 118 152 135 86 491
Joint ventures & other 11 51 48 69 48 34 19 18 119
Net investment results - Underlying 12 416 430 437 316 357 322 242 1,237
Asset Management - underlying 13 437 403 377 429 407 388 427 1,651
Other fee income 14 39 47 69 52 90 71 83 296
Expenses - other (2) 15 (486) (483) (444) (407) (365) (309) (332) (1,413)
Income before taxes - Underlying 16 1,146 1,191 1,115 1,111 1,174 1,008 834 4,127
Income tax (expense) or recovery 17 (182) (235) (191) (187) (193) (174) (83) (637)
Dividends, distributions, NCI (3) 18 (34) (36) (29) (32) (32) (26) (31) (121)
Add: Non-underlying net income adjustments (1) (post-tax):
Market-related impacts 20 23 (220) (64) 224 (361) 118 (2) (21)
Assumption changes and management actions (ACMA) 21 35 7 (5) 12 (131) (22) (27) (168)
Other adjustments:
Management's ownership of MFS shares 22 7 (1) 17 27 37 42 9 115
Acquisition, integration and restructuring (4) 23 (89) (20) (4) (86) (312) (73) (21) (492)
Intangible asset amortization 24 (35) (26) (33) (41) (23) (19) (14) (97)
Other (4) 25 — — — 137 (48) 76 — 165
For the Year

For the Quarter Ended Ended
Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 2022
UNDERLYING NET INCOME BY BUSINESS TYPE (1) - Total Company
Wealth & asset management 27 457 419 411 412 419 420 422 1,673
Group - Health & Protection 28 285 360 303 321 281 238 123 963
Individual - Protection 29 297 265 291 231 305 215 249 1,000
Corporate expenses & other 30 (109) (124) (110) (72) (56) (65) (74) (267)
Underlying net income 31 930 920 895 892 949 808 720 3,369
Add: Market-related impacts 32 23 (220) (64) 224 (361) 118 (2) (21)
ACMA 33 35 7 (5) 12 (131) (22) (27) (168)
Other adjustments 34 (117) (47) (20) 37 (346) 26 (26) (309)
EXCHANGE RATES - Average for the period

U.S. Dollar 36 1.34 1.34 1.35 1.36 1.30 1.28 1.27 1.30
(1)
The Drivers of Earnings analysis and Underlying Net Income by Business Type contain non-IFRS financial measures. Refer to the Non-IFRS Financial Measures section on page 1 and the Additional Non-IFRS
Financial Measures Glossary in the appendix of this document, or Section N. Non-IFRS Financial Measures of the Company's Q3 2023 MD&A. Refer to the Basis of Presentation section on page ii of this document
for more information about certain amounts that are presented on a net basis to reflect how management views the business, compared to a gross basis in the Consolidated Financial Statements.
(2)
Expenses - other removes non-underlying Other adjustments, including Management's ownership of MFS shares, Acquisition, integration and restructuring, and Intangible asset amortization. Certain Other
adjustments - other may also be removed from Other expenses.
(3)
Dividends on preferred shares, distributions on other equity instruments, and non-controlling interests ("Dividends, distributions, NCI").
(4)
Refer to the Notes page ii, Adjustments - Acquisition, Integration and Restructuring and Adjustments - other for additional details.
5
COMMON SHAREHOLDERS' DRIVERS OF EARNINGS - Total Company (1) For the Quarter Ended - Q3 2023
($ millions) Canadian dollars U.S. Dollars
Asset Total
Management Canada U.S. Asia Corporate Company MFS U.S.
Risk adjustment release 1 — 51 10 54 (1) 114 — 8

Contractual service margin recognized for services provided 2 — 80 20 84 — 184 — 15
Expected earnings on short-term (group) insurance business 3 — 138 234 1 — 373 — 175
Expected insurance earnings 4 — 269 264 139 (1) 671 — 198
Impact of new insurance business 5 — (10) — (2) — (12) — —
Experience gains (losses) 6 — 74 6 2 (1) 81 — 2
Net insurance service result - Underlying 7 — 333 270 139 (2) 740 — 200
Expected investment earnings 8 — 164 36 18 — 218 — 28
Credit experience 9 — (2) (6) — — (8) — (4)
Earnings on surplus 10 — 46 35 40 34 155 — 28
Joint ventures & other 11 — 2 2 47 — 51 — 1
Net investment results - Underlying 12 — 210 67 105 34 416 — 53
Asset Management - underlying 13 437 — — — — 437 271 —
Other fee income 14 — 36 4 (1) — 39 — 3
Expenses - other (2) 15 — (149) (114) (76) (147) (486) — (86)
Income before taxes - Underlying 16 437 430 227 167 (115) 1,146 271 170
Income tax (expense) or recovery 17 (92) (92) (42) (1) 45 (182) (64) (30)
Dividends, distributions, NCI 18 (15) — — — (19) (34) — —
Underlying net income (1) 19 330 338 185 166 (89) 930 207 140
(1)
Add: Non-underlying net income adjustments (post-tax):
Market-related impacts 20 (3) 10 36 (4) (16) 23 — 30
Assumption changes and management actions (ACMA) 21 — 15 (36) 56 — 35 — (26)
Other adjustments:
Management's ownership of MFS shares 22 7 — — — — 7 5 —
Acquisition, integration and restructuring (3) 23 (58) 5 (31) (5) — (89) — (23)
Intangible asset amortization 24 (8) (3) (22) (2) — (35) — (16)
Other (3) 25 — — — — — — — —
Reported net income - Common shareholders 26 268 365 132 211 (105) 871 212 105
COMMON SHAREHOLDERS' DRIVERS OF EARNINGS - Total Company (1) For the Quarter Ended - Q3 2022
($ millions) Canadian dollars U.S. Dollars
Asset Total
Management Canada U.S. Asia Corporate Company MFS U.S.
Risk adjustment release 27 — 51 8 32 7 98 — 6

Contractual service margin recognized for services provided 28 — 82 28 74 9 193 — 21
Expected earnings on short-term (group) insurance business 29 — 128 206 5 — 339 — 158
Expected insurance earnings 30 — 261 242 111 16 630 — 185
Impact of new insurance business 31 — (16) — (6) — (22) — —
Experience gains (losses) 32 — (17) 70 — 24 77 — 42
Net insurance service result - Underlying 33 — 228 312 105 40 685 — 227
Expected investment earnings 34 — 135 24 19 (7) 171 — 18
Credit experience 35 — (1) 6 (5) — — — 4
Earnings on surplus 36 — 50 30 45 27 152 — 25
Joint ventures & other 37 — — 5 44 (15) 34 — (1)
Net investment results - Underlying 38 — 184 65 103 5 357 — 46
Asset Management - underlying 39 407 — — — — 407 276 —
Other fee income 40 — 53 13 4 20 90 — 8
Expenses - other (2) 41 — (105) (103) (64) (93) (365) — (65)
Income before taxes - Underlying 42 407 360 287 148 (28) 1,174 276 216
Income tax (expense) or recovery 43 (96) (67) (60) 5 25 (193) (64) (43)
Dividends, distributions, NCI 44 (13) — — — (19) (32) — —
Underlying net income (1) 45 298 293 227 153 (22) 949 212 173
Market-related impacts 46 3 (172) (10) (97) (85) (361) — (8)
Assumption changes and management actions (ACMA) 47 — (61) (5) (54) (11) (131) — (3)
Other adjustments:
Management's ownership of MFS shares 48 37 — — — 37 28
Acquisition, integration and restructuring (3) 49 (117) (1) (24) — (170) (312) — (18)
Intangible asset amortization 50 (3) (3) (15) (2) — (23) — (11)
Other (3) 51 — — (48) — — (48) — (37)
Reported net income - Common shareholders 52 218 56 125 — (288) 111 240 96
(1)
The Drivers of Earnings analysis and Underlying Net Income by Business Type contain non-IFRS financial measures. Refer to the Non-IFRS Financial Measures section on page 1 and the Additional Non-IFRS Financial Measures Glossary in the
appendix of this document, or Section N. Non-IFRS Financial Measures of the Company's Q3 2023 MD&A. Refer to the Basis of Presentation section on page ii of this document for more information about certain amounts that are presented on a net basis
to reflect how management views the business, compared to a gross basis in the Consolidated Financial Statements.
(2)
Expenses - other removes non-underlying Other adjustments, including Management's ownership of MFS shares, Acquisition, integration and restructuring, and Intangible asset amortization. Certain Other adjustments - other may also be removed from
Other expenses.
(3)
6
STATEMENTS OF FINANCIAL POSITION At the Quarter Ended As at
(C$ millions) Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 January 1, 2022
Assets
Cash, cash equivalents and short-term securities 1 11,026 10,348 11,012 11,219 11,386 9,437 10,525 12,278
Debt securities 2 68,879 72,469 76,285 75,902 75,526 75,007 81,203 88,727
Equity securities 3 7,080 7,187 7,590 7,148 6,740 6,930 8,289 9,113
Mortgages and loans 4 51,994 52,338 53,303 51,253 51,117 50,616 52,076 55,727
Derivative assets 5 1,878 2,178 1,813 2,095 2,632 1,670 1,451 1,583
Other financial invested assets 6 10,203 9,613 9,482 9,418 8,869 7,448 7,298 7,071
Financial assets 7 151,060 154,133 159,485 157,035 156,270 151,108 160,842 174,499
Investment properties 8 9,952 10,001 10,148 10,102 10,149 9,781 9,431 9,109
Other non-financial invested assets 9 1,752 1,683 1,676 1,652 1,651 1,591 1,594 1,660
Invested assets 10 162,764 165,817 171,309 168,789 168,070 162,480 171,867 185,268
Other assets 11 7,601 7,409 6,829 6,442 6,690 6,457 5,208 4,279
Reinsurance contract held assets 12 5,766 5,998 6,052 6,115 6,271 6,290 6,204 6,612
Insurance contract assets 13 208 214 238 75 141 130 94 162
Deferred tax assets 14 3,421 3,448 3,475 3,466 3,285 3,120 3,077 2,940
Intangible assets 15 5,161 4,886 5,081 4,724 5,150 4,920 3,326 3,370
Goodwill 16 8,937 8,803 8,808 8,705 8,574 8,389 6,464 6,517
Total general fund assets 17 193,858 196,575 201,792 198,316 198,181 191,786 196,240 209,148
Investments for account of segregated fund holders 18 119,988 123,366 131,033 125,292 118,564 120,098 133,496 139,996
Total assets 19 313,846 319,941 332,825 323,608 316,745 311,884 329,736 349,144
Liabilities and equity
Liabilities
Insurance contract liabilities excluding those for account of segregated fund holders 20 124,873 129,103 134,230 131,294 130,660 129,192 136,961 149,412
Reinsurance contract held liabilities 21 1,543 1,612 1,734 1,603 1,820 1,720 1,730 1,994
Investment contract liabilities 22 11,344 11,065 10,967 10,728 10,429 10,227 9,959 9,914
Derivative liabilities 23 2,541 1,628 1,915 2,351 3,186 2,535 1,812 1,392
Deferred tax liabilities 24 305 524 512 468 568 567 232 234
Other liabilities 25 23,108 22,572 22,147 22,109 22,133 19,080 17,291 17,371
Senior debentures - innovative capital instruments 26 200 200 200 200 200 200 200 200
Subordinated debt 27 6,177 6,679 6,677 6,676 7,075 6,427 6,426 6,425
Total general fund liabilities 28 170,091 173,383 178,382 175,429 176,071 169,948 174,611 186,942
Insurance contract liabilities for account of segregated fund holders 29 18,377 19,032 23,622 23,139 22,070 22,057 24,741 26,079
Investment contract liabilities for account of segregated fund holders 30 101,611 104,334 107,411 102,153 96,494 98,041 108,755 113,917
Total liabilities 31 290,079 296,749 309,415 300,721 294,635 290,046 308,107 326,938
Equity
Issued share capital and contributed surplus 32 10,642 10,671 10,664 10,640 10,643 10,647 10,621 10,615
Shareholders' retained earnings and accumulated other comprehensive income 33 12,581 12,029 12,310 11,889 11,132 10,870 10,729 11,342
Total shareholders' equity 34 23,223 22,700 22,974 22,529 21,775 21,517 21,350 21,957
Equity in the participating account 35 397 354 303 268 271 265 217 190
Non-controlling interests' equity 36 147 138 133 90 64 56 62 59
Total equity 37 23,767 23,192 23,410 22,887 22,110 21,838 21,629 22,206
Total liabilities and equity 38 313,846 319,941 332,825 323,608 316,745 311,884 329,736 349,144
EXCHANGE RATES - Period end rates

U.S. Dollar 39 1.36 1.32 1.35 1.35 1.38 1.29 1.25 1.26
7
At and For the
STATEMENTS OF TOTAL SHAREHOLDERS' EQUITY At and For the Quarter Ended Year Ended
Preferred shares and other equity instruments 1 2,239 2,239 2,239 2,239 2,239 2,239 2,239 2,239
Common shares
Balance, beginning of period 2 8,338 8,331 8,311 8,308 8,306 8,306 8,305 8,305
Stock options exercised 3 11 7 20 3 2 — 1 6
Common shares purchased for cancellation 4 (40) — — — — — — —
Balance, end of period 5 8,309 8,338 8,331 8,311 8,308 8,306 8,306 8,311
Contributed surplus
Balance, beginning of period 6 94 94 90 96 102 76 71 71
Share-based payments 7 2 1 6 (6) (6) 26 5 19
Stock options exercised 8 (2) (1) (2) — — — — —
Balance, end of period 9 94 94 94 90 96 102 76 90
Retained earnings
Balance, beginning of period 10 11,582 11,400 11,729 10,986 11,275 10,750 14,713 14,713
Adjustment for changes in accounting policies (1) 11 — — (553) — — — (4,241) (4,241)
Balance, beginning of period, after change in accounting policy 12 11,582 11,400 11,176 10,986 11,275 10,750 10,472 10,472
Net Income (loss) (2) 13 890 680 826 1,185 129 944 683 2,941
Dividends on common shares 14 (441) (439) (424) (422) (400) (405) (387) (1,614)
Dividends on preferred shares and distributions on other equity instruments(2) 15 (19) (20) (20) (20) (18) (14) (18) (70)
Common shares purchased for cancellation 16 (146) — — — — — — —
Transfer from accumulated other comprehensive income (loss) 17 — (37) — — — — — —
Change attributable to acquisition 18 — (2) (158) — — — — —
Balance, end of period 19 11,866 11,582 11,400 11,729 10,986 11,275 10,750 11,729
Accumulated other comprehensive income (loss), net of taxes
Balance, beginning of period 20 447 910 160 146 (405) (21) 986 986
Adjustment for changes in accounting policies (1) 21 — — 553 — — — (116) (116)
Balance, beginning of period, after change in accounting policy 22 447 910 713 146 (405) (21) 870 870
Other comprehensive income (loss) for the period (1)(3):
Unrealized foreign currency translation gains/(losses), net of hedging activities 23 273 (324) 2 (94) 805 190 (223) 678
Unrealized gains (losses) on FVOCI assets 24 (45) (146) 228 66 (302) (553) (694) (1,483)
Unrealized gains (losses) on cash flow hedges 25 (7) 27 (6) (1) 2 (10) (2) (11)
Share of other comprehensive income (loss) in joint ventures and associates 26 19 (29) 1 (31) 36 (26) (39) (60)
Items that will not be reclassified subsequently to income 27 28 (28) (28) 74 10 15 67 166
Balance at the end of the period 28 268 (500) 197 14 551 (384) (891) (710)
Transfer to retained earnings (4) 29 — 37 — — — — — —
Composition of shareholders' accumulated OCI balance:
Unrealized foreign currency translation gains (losses), net of hedging activities 30 1,639 1,366 1,690 1,629 1,723 918 728 1,629
Unrealized gains (losses) on FVOCI assets 31 (802) (757) (611) (1,333) (1,399) (1,097) (544) (1,333)
Unrealized gains (losses) on cash flow hedges 32 (4) 3 (24) (18) (17) (19) (9) (18)
Share of other comprehensive income (loss) in joint ventures and associates 33 (116) (135) (106) (107) (76) (112) (86) (107)
Items that will not be reclassified subsequently to income 34 (2) (30) (39) (11) (85) (95) (110) (11)
Balance, end of period 35 715 447 910 160 146 (405) (21) 160
Total Shareholders' equity, end of period 36 23,223 22,700 22,974 22,529 21,775 21,517 21,350 22,529
(1)
For additional details on the adjustment of changes related to IFRS 17 and IFRS 9, refer to the Consolidated Statements of Changes in Equity and Note 2. Changes in Accounting Policies of the Company's Q1 2023
Consolidated Financial Statements and Notes.
(2)
Common shareholders' net income ("reported net income") is equal to Total shareholder net income (loss) less Dividends on preferred shares and distributions on other equity instruments.
(3)
The Q4 2022 Accumulated OCI balance plus the Other comprehensive income (loss) for Q1 2023 do not sum to the Q1 2023 Accumulated OCI balance due to the Adjustment for changes in accounting policies as we
adopted IFRS 9 effective January 1, 2023, which resulted in classification and measurement changes of financial instruments.
(4)
During the second quarter of 2023, the Company transferred cumulative remeasurement losses of $37 from Accumulated other comprehensive income (loss) to Retained earnings as a result of the termination and complete
settlement of the defined benefit pension plan upon the sale of Sun Life UK.
8
LICAT RATIO - SUN LIFE FINANCIAL INC. (1) At the Quarter Ended
(C$ millions) Q3 2023 Q2 2023 Q1 2023
CAPITAL RESOURCES
Tier 1 capital
Adjusted retained earnings and contributed surplus (includes contractual service margin) 1 23,410 22,861 22,553
Adjusted accumulated other comprehensive income 2 718 424 910
Common & preferred shares and other equity instruments 3 10,548 10,577 10,571
Innovative instruments 4 200 200 200
Other 5 — — —
Less:
Goodwill 6 4,670 4,622 4,664
Tier 1 deductions 7 13,940 13,374 14,051
Net Tier 1 capital 8 16,266 16,066 15,519
Tier 2 capital
Preferred shares and subordinated debt 9 6,147 6,649 6,677
Other Tier 2 10 3,813 3,699 3,983
Less:
Tier 2 deductions 11 — — —
Net Tier 2 capital 12 9,960 10,348 10,660
Surplus allowance and eligible deposits 13 5,573 6,034 5,692
Total capital resources 14 31,799 32,448 31,871
CAPITAL REQUIREMENTS
Credit risk 15 3,972 4,039 4,099
Market risk 16 4,422 4,335 4,249
Insurance risk 17 10,528 10,860 10,526
Total non-participating product risk (before other credits and diversification) 18 18,922 19,234 18,874
Total participating product risk including par credits (before other credits and diversification) 19 4,903 4,892 4,971
Less:
Credits and diversification benefits 20 4,956 4,957 5,036
Total non-participating and participating product risk 21 18,869 19,169 18,809
Segregated fund guarantee risk 22 721 694 712
Operational risk 23 2,104 2,090 2,059
Base solvency buffer 24 21,694 21,953 21,580
LICAT ratio 25 147% 148% 148%

LICAT core ratio 26 93% 92% 90%
IFRS 17/9 IFRS 4 & IAS 39 (2)
For the
For the Quarter Ended Year Ended
Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 2022
CAPITAL (2)
Subordinated debt 27 6,177 6,679 6,677 6,676 7,075 6,427 6,426 6,676
Innovative capital instruments (3) 28 200 200 200 200 200 200 200 200
Equity:
Preferred shareholders' equity and other equity instruments 29 2,239 2,239 2,239 2,239 2,239 2,239 2,239 2,239
Common shareholders' equity 30 20,984 20,461 20,735 25,211 24,718 23,825 23,659 25,211
Equity in the participating account 31 397 354 303 1,837 1,764 1,713 1,704 1,837
Non-controlling interests' equity 32 147 138 133 90 64 56 62 90
Contractual service margin 33 11,452 11,258 11,243 — — — — —
Total capital 34 41,596 41,329 41,530 36,253 36,060 34,460 34,290 36,253
(1)
OSFI's 2023 LICAT Guideline, effective January 1, 2023, specifies that available capital for LICAT purposes includes the Contractual Service Margin. Prior period restatement and resubmissions are not mandated.
(2)
Effective January 1, 2023, the definition of Capital was updated to include the Contractual Service Margin balance. Capital has not been restated for periods in 2022 and earlier as IFRS 17 and IFRS 9 were not the accounting standards in
effect and therefore, were not applicable to our capital management practices at the time.
(3)
Innovative capital instruments, which represent SLEECS issued by Sun Life Capital Trust, are presented net of associated transaction costs. SLEEC securities qualify as capital for Canadian Regulatory purposes.
9
At and For
the Year
CONTRACTUAL SERVICE MARGIN (CSM) MOVEMENT ANALYSIS (1) At and For the Quarter Ended Ended
CSM at beginning of period 1 11,258 11,243 10,865 10,350 9,904 9,881 9,797 9,797
Impact of new insurance business 2 370 270 232 253 177 189 143 762
Expected movements from asset returns & locked-in rates 3 152 131 125 118 91 75 78 362
Insurance experience gains/losses 4 (28) 21 93 14 (27) 28 74 89
CSM recognized for services provided 5 (212) (220) (223) (223) (206) (217) (215) (861)
Organic CSM movement 6 282 202 227 162 35 75 80 352
Impact of markets & other 7 (158) (80) 87 206 (122) (95) 48 37
Impact of change in assumptions 8 (43) 284 46 160 252 2 17 431
Currency impact 9 113 (129) 18 (13) 281 41 (61) 248
Disposition (2) 10 — (262) — — — — — —
Total CSM movement 11 194 15 378 515 446 23 84 1,068
CSM at end of period 12 11,452 11,258 11,243 10,865 10,350 9,904 9,881 10,865
(1)
Certain measures in the CSM Movement Analysis are non-IFRS financial measures. Refer to the Non-IFRS Financial Measures section on page 1 and the Additional Non-IFRS Financial Measures Glossary in the
appendix of this document, or Section N. Non-IFRS Financial Measures of the Company's Q3 2023 MD&A for more information. Refer to the Basis of Presentation section on page ii of this document for more information
about certain amounts that are presented on a net basis to reflect how management views the business, compared to a gross basis in the Consolidated Financial Statements.
(2)
In Q2 2023, we completed the sale of Sun Life UK, and after the sale, the remaining UK payout annuities business was moved from the Corporate business segment to the U.S. business segment and combined with
U.S. In-force Management. Refer to the Notes page ii, Adjustments - Acquisition, Integration and Restructuring for additional details.
10
ASSET MANAGEMENT
At and For the
(C$ millions) At and For the Quarter Ended Year Ended
FINANCIAL SUMMARY ON AN UNDERLYING BASIS (1) Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 2022
Revenue
Net investment result 1 41 54 29 48 11 12 4 75
Fee income 2 1,335 1,312 1,289 1,255 1,264 1,308 1,391 5,218
Total revenue 3 1,376 1,366 1,318 1,303 1,275 1,320 1,395 5,293
Expenses 4 939 963 941 874 868 932 968 3,642
Income before income taxes 5 437 403 377 429 407 388 427 1,651
Less: Income tax expense (benefit) 6 92 91 86 92 96 81 93 362
Less: Non-Controlling Interest (NCI) 7 15 16 9 13 13 12 13 51
Market-related impacts 9 (3) (31) (7) (8) 3 (17) — (22)
Other adjustments:
Management's ownership of MFS shares 10 7 (1) 17 27 37 42 9 115
Acquisition, integration and restructuring 11 (58) (11) (33) (26) (117) (18) (15) (176)
Other 13 — — — 7 — — — 7
Reported net income - Common shareholders 14 268 248 254 321 218 298 311 1,148
Underlying net income (1)

MFS 15 277 252 254 276 273 250 281 1,080
SLC Management 16 53 44 28 48 25 45 40 158
Total 17 330 296 282 324 298 295 321 1,238
Reported net income (loss) - Common shareholders

MFS 18 284 251 271 303 310 292 290 1,195
SLC Management 19 (16) (3) (17) 18 (92) 6 21 (47)
Total 20 268 248 254 321 218 298 311 1,148
Gross flows (1) 21 34,266 37,651 40,829 37,380 36,434 49,640 49,427 172,881
Net flows (1) 22 (9,109) (3,320) (2,513) (12,624) (7,682) 279 (1,958) (21,985)
ASSETS UNDER MANAGEMENT AND ADMINISTRATION (AUMA) (1)

MFS (2) 23 754,757 779,771 770,734 742,317 703,362 711,690 796,096 742,317
SLC Management (3) 24 219,473 218,077 217,827 209,647 208,244 193,562 184,736 209,647
Total assets under management 25 974,230 997,848 988,561 951,964 911,606 905,252 980,832 951,964
Assets under administration 26 48,389 49,854 50,131 — — — — —
Total AUMA 27 1,022,619 1,047,702 1,038,692 951,964 911,606 905,252 980,832 951,964
(1)
Financial Measures of the Company's Q3 2023 MD&A. Further, certain measures of this Financial Summary on an Underlying Basis are non-IFRS financial measures; refer to the Asset Management Reported Net Income
Reconciliation section in the appendix of this document for additional details.
(2)
Includes retail and institutional assets. Retail consists of domestic and international retail funds as well as other retail and trust accounts. Institutional consists of institutional accounts, pension business and insurance
products.
(3)
Represents institutional assets. Excludes assets managed on behalf of the Insurance businesses and General Fund.
11
MFS
At and For the

(US$ millions, unless otherwise noted) At and For the Quarter Ended Year Ended
(1)
BUSINESS UNIT FINANCIAL SUMMARY - UNDERLYING BASIS Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 2022
Revenue
Net investment result 1 19 22 18 21 6 (6) (7) 14
Fee income 2 771 760 749 736 760 794 868 3,158
Total revenue 3 790 782 767 757 766 788 861 3,172
Expenses 4 519 534 519 498 490 533 574 2,095
Underlying net income (1) 7 207 187 188 202 212 197 221 832
Management's ownership of MFS shares 8 5 — 12 21 28 31 7 87
Reported net income - Common shareholders 9 212 187 200 223 240 228 228 919
RETAIL - CHANGES IN ASSETS UNDER MANAGEMENT (AUM) (1)

Opening AUM 10 393,740 380,741 367,276 343,706 371,234 428,085 465,384 465,384
Inflows 11 16,829 19,429 20,048 19,059 16,624 21,697 25,992 83,372
Outflows 12 (20,549) (21,087) (21,895) (27,328) (22,212) (28,432) (28,970) (106,942)
Market movement 13 (14,446) 14,657 15,312 31,839 (21,940) (50,116) (34,321) (74,538)
Closing AUM 14 375,574 393,740 380,741 367,276 343,706 371,234 428,085 367,276
INSTITUTIONAL - CHANGES IN AUM (1)

Opening AUM 15 195,389 189,539 180,600 165,018 181,664 208,843 227,377 227,377
Inflows 16 4,260 5,350 5,477 3,955 4,986 10,015 6,113 25,069
Outflows 17 (9,838) (7,670) (7,885) (7,577) (9,696) (8,743) (8,579) (34,595)
Market movement 18 (9,476) 8,170 11,347 19,204 (11,936) (28,451) (16,068) (37,251)
Closing AUM 19 180,335 195,389 189,539 180,600 165,018 181,664 208,843 180,600
SUPPLEMENTAL INFORMATION (1)

Total assets under management 20 555,909 589,129 570,280 547,876 508,724 552,898 636,928 547,876
Average net assets 21 581,608 577,107 566,269 540,507 560,929 592,064 647,107 584,793
Total gross flows 22 21,089 24,779 25,525 23,014 21,610 31,712 32,105 108,441
Total net flows 23 (9,298) (3,978) (4,255) (11,891) (10,298) (5,463) (5,444) (33,096)
Retail net flows (2) 24 (3,720) (1,658) (1,847) (8,269) (5,588) (6,735) (2,978) (23,570)
Institutional net flows (2) 25 (5,578) (2,320) (2,408) (3,622) (4,710) 1,272 (2,466) (9,526)
Pre-tax net operating margin (1) 26 41% 37% 37% 40% 41% 36% 39% 39%
Pre-tax gross operating margin (1) 27 36% 33% 33% 35% 36% 32% 34% 34%
(1)
Represents a non-IFRS financial measure. Refer to the Non-IFRS Financial Measures section on page 1 and the Additional Non-IFRS Financial Measures Glossary in the appendix of this document, or Section N. Non-
IFRS Financial Measures of the Company's Q3 2023 MD&A. Further, revenues and expenses have been adjusted to remove NCI, and Expenses on an underlying basis exclude Management's ownership of MFS shares;
refer to the Asset Management Reported Net Income Reconciliation section in the appendix of this document for additional details.
(2)
Retail consists of domestic and international retail funds as well as other retail and trust accounts. Institutional consists of institutional accounts, pension business and insurance products.
12
SLC MANAGEMENT
For the Year

(C$ millions, unless otherwise noted) For the Quarter Ended Ended
BUSINESS UNIT FINANCIAL SUMMARY Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 2022

Reported net income (loss) - Common shareholders 2 (16) (3) (17) 18 (92) 6 21 (47)
SUPPLEMENTARY INCOME STATEMENT (2)

Fee-related revenue
Management fees 3 252 248 244 234 218 209 201 862
Distribution fees 4 22 23 15 — — — — —
Property management, transaction, advisory and other fees 5 25 21 24 32 25 33 25 115
Total fee-related revenue 6 299 292 283 266 243 242 226 977
Fee-related expenses
Compensation - fee-related 7 163 164 163 141 130 138 128 537
Other operating expenses 8 68 66 52 52 55 52 44 203
Total fee-related expenses 9 231 230 215 193 185 190 172 740
Total fee-related earnings 10 68 62 68 73 58 52 54 237
Investment income (loss) and performance fees 11 16 24 5 20 3 20 13 56
Interest and other 12 (20) (19) (32) (21) (15) (8) (6) (50)
Operating income 13 64 67 41 72 46 64 61 243
Placement fees - other 14 7 4 1 4 4 — — 8
Income (loss) before income taxes 15 71 71 42 76 50 64 61 251
Less: Non-controlling interest 17 15 16 9 13 13 12 13 51
Market-related impacts 19 (3) (31) (7) (8) 3 (17) — (22)
Other (2) 22 — — — 7 — — — 7
Reported net income - Common shareholders 23 (16) (3) (17) 18 (92) 6 21 (47)
Pre-tax fee-related earnings margin (1)(3) 24 24% 24% 24% 24% 24% 23% 23% 24%
Pre-tax net operating margin (1)(3) 25 20% 20% 21% 23% 22% 24% 24% 23%
(1)
Non-IFRS Financial Measures of the Company's Q3 2023 MD&A. Further, certain measures of this Supplementary Income Statement are non-IFRS financial measures; refer to the SLC Management Reported Net
Income Reconciliation section in the appendix of this document for additional details.
(2)
(3)
This ratio is based on the last twelve months. IFRS 9 was adopted on January 1, 2023, as such Q3 2022 to Q1 2022 margins are under an IAS 39 basis.
13
SLC MANAGEMENT CONTINUED
At and For the

Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 2022
AUM (1) 1 219,473 218,077 217,827 209,647 208,244 193,562 184,736 209,647
CHANGES IN AUM (1)

Opening AUM 2 218,077 217,827 209,647 208,244 193,562 184,736 183,925 183,925
Inflows 3 5,977 4,371 6,322 6,136 8,248 9,176 8,757 32,317
Outflows 4 (2,614) (2,348) (3,083) (2,616) (2,499) (1,926) (3,818) (10,859)
Realizations and distributions (2) 5 (1,554) (1,665) (1,496) (1,088) (1,035) (1,574) (859) (4,556)
Market movement and other (3) 6 (413) (108) 6,437 (1,029) 9,968 3,150 (3,269) 8,820
Closing AUM 7 219,473 218,077 217,827 209,647 208,244 193,562 184,736 209,647
CHANGES IN FEE-EARNING AUM (1)

Opening fee-earning AUM 8 171,056 171,659 164,438 162,886 150,062 146,053 147,941 147,941
Inflows 9 6,157 4,210 5,044 7,899 10,158 6,758 8,168 32,983
Outflows 10 (2,079) (2,192) (2,500) (2,103) (1,320) (1,774) (2,616) (7,813)
Realizations and distributions (2) 11 (2,126) (1,631) (1,215) (2,009) (1,775) (1,901) (1,176) (6,861)
Market movement and other (3) 12 (402) (990) 5,892 (2,235) 5,761 926 (6,264) (1,812)
Closing fee-earning AUM 13 172,606 171,056 171,659 164,438 162,886 150,062 146,053 164,438
SUPPLEMENTAL INFORMATION (1)

Capital raising 14 3,221 2,107 2,295 3,001 3,796 5,697 5,674 18,168
Deployment 15 4,751 4,724 5,962 6,863 9,490 6,961 6,888 30,202
AUM not yet earning fees 16 21,497 21,205 20,829 21,028 21,595 20,783 18,281 21,028
Assets under administration 17 48,389 49,854 50,131 — — — — —
(1)
Non-IFRS Financial Measures of the Company's Q3 2023 MD&A.
(2)
Realizations represent proceeds from the disposition or other monetization of assets, with capital returned to investors or held in non-fee earning cash to be deployed in the regular course of a product life cycle.
Distributions include regular course income from an investment product, including dividends, where payments are initiated by SLC Management.
(3)
Market movement and other consists of realized and unrealized gains (losses) on portfolio investments, the impact of foreign exchange rate fluctuations, working capital changes within investment products and the
transfer in of acquired assets.
14
CANADA
At and For the

STATEMENTS OF OPERATIONS Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 2022
Reinsurance contract held net income (expenses) 3 (51) (26) (47) (73) (106) (62) (21) (262)
Net insurance service result 4 298 358 265 306 206 263 154 929
Investment result
Net investment income (loss) 5 (3,636) 415 2,870 297 947 (5,558) (6,384) (10,698)
Insurance finance income (expenses) from insurance contracts issued 6 4,082 (318) (2,633) (64) (955) 6,049 6,722 11,752
Insurance finance income (expenses) from reinsurance contracts held 7 30 (1) (14) 22 (10) 45 40 97
Decrease (increase) in investment contract liabilities 8 (86) (74) (71) (53) (42) (34) (31) (160)
Net investment result 9 390 22 152 202 (60) 502 347 991
Fee income 10 349 383 366 349 343 348 355 1,395
Other expenses (income)
Other Income (1) 11 — — (102) — — — — —
Operating expenses and commissions 12 424 439 420 414 358 354 386 1,512
Total expenses (income) 14 477 484 362 463 414 404 432 1,713
Less: Income tax expense (benefit) 16 183 58 76 (61) 3 219 174 335
Less: Net income (loss) allocated to the participating account 17 12 11 16 2 16 14 (6) 26
Return on equity - reported 21 23.9% 13.2% 19.1% 25.9% 3.3% 30.6% 16.6% 19.1%
SUN LIFE HEALTH

Net premiums (2) 22 1,614 1,573 1,605 1,599 1,571 1,554 1,527 6,251
Fee income 23 76 100 93 85 80 77 72 314
(2)
WEALTH, HEALTH AND PROTECTION SALES
Individual - Protection 24 148 154 136 139 119 126 112 496
Group & individual sales 26 267 307 281 246 233 218 332 1,029
Individual - Wealth & asset management 27 1,924 1,821 2,067 1,713 1,546 1,799 2,204 7,262
Group Retirement Services 28 1,471 1,309 1,023 2,386 1,635 1,542 1,804 7,367
Gross wealth sales & asset management gross flows 29 3,395 3,130 3,090 4,099 3,181 3,341 4,008 14,629
Net wealth sales & asset management net flows 30 (114) (355) 76 1,151 46 357 485 2,039
(2)
AUMA
General funds 31 104,960 107,815 108,316 107,407 106,127 102,511 107,057 107,407
Third-party AUM 33 5,347 5,876 6,069 6,136 6,022 6,208 6,955 6,136
Total AUM 34 222,998 229,571 228,810 222,601 215,560 213,143 229,956 222,601
Assets under administration 35 41,613 41,814 41,042 39,292 37,486 37,766 41,417 39,292
Total AUMA 36 264,611 271,385 269,852 261,893 253,046 250,909 271,373 261,893
Wealth AUM (3) 37 154,422 158,541 158,748 152,374 145,478 145,511 159,114 152,374
SLGI Asset Management Inc.

Gross flows (2)
Retail 38 435 462 525 455 408 553 904 2,320
Institutional & other (4) 39 457 457 529 672 461 583 947 2,663
Total gross flows 40 892 919 1,054 1,127 869 1,136 1,851 4,983
Net flows (2) 41 (369) (344) (127) (55) (85) 16 408 284
(2)
Assets under management 42 34,277 35,555 35,464 33,978 32,366 32,821 36,213 33,978
(1)
In Q1 2023, we completed the sale of the sponsored markets business. Refer to the Notes page ii, Adjustments - Acquisition, Integration and Restructuring for additional details and Note 3 of the Consolidated Financial
Statements for the period ended June 30, 2023.
(2)
(3)
Wealth AUM includes General fund assets, Segregated fund assets and Third-party AUM, excluding Third-party mutual funds assets.
(4)
Institutional & other consists primarily of Group Retirement Services Segregated fund deposits.
15
CANADA CONTINUED
For the Year

(C$ millions) For the Quarter Ended Ended
Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 2022
COMMON SHAREHOLDERS' DRIVERS OF EARNINGS (1)
CSM recognized for services provided 2 80 86 90 90 82 78 96 346
Expected earnings on short-term (group) insurance business 3 138 134 132 128 128 114 121 491
Expected insurance earnings 4 269 271 269 272 261 242 266 1,041
Experience gains (losses) 6 74 94 (19) 44 (17) 7 (59) (25)
Net insurance service result - Underlying 7 333 356 240 289 228 240 191 948
Credit experience 9 (2) (6) (13) (18) (1) 9 (23) (33)
Other 11 2 1 1 (2) — 2 (10) (10)
Net investment results - Underlying 12 210 227 242 154 184 182 103 623
Other fee income 13 36 39 39 21 53 50 55 179
Expenses - other (2) 14 (149) (133) (121) (127) (105) (94) (117) (443)
Income before taxes - Underlying 15 430 489 400 337 360 378 232 1,307
Market-related impacts 18 10 (156) (47) 235 (172) 202 65 330
ACMA 19 15 (6) (2) (133) (61) (22) (12) (228)
Other adjustments:
Acquisition, integration and restructuring (3) 20 5 3 65 (1) (1) — — (2)
(3)
Other 22 — — — 90 — — — 90
UNDERLYING NET INCOME BY BUSINESS TYPE (1)

Wealth & asset management 24 116 110 114 72 102 110 80 364
Add: Market-related impacts 28 10 (156) (47) 235 (172) 202 65 330
ACMA 29 15 (6) (2) (133) (61) (22) (12) (228)
Other adjustments 30 2 — 62 86 (4) (3) (3) 76
(1)
The Drivers of Earnings analysis and Underlying Net Income by Business Type contain non-IFRS financial measures. Refer to the Non-IFRS Financial Measures section on page 1 and the Additional Non-IFRS Financial Measures
Glossary in the appendix of this document, or Section N. Non-IFRS Financial Measures of the Company's Q3 2023 MD&A.
(2)
Expenses - other removes the non-underlying Other adjustments, including Acquisition, integration and restructuring, and Intangible asset amortization. Certain Other adjustments - other may also be an adjustment from Other
expenses.
(3)
16
At and
CANADA CONTINUED For the
Year
(1)
CONTRACTUAL SERVICE MARGIN (CSM) MOVEMENT ANALYSIS At and For the Quarter Ended Ended
Insurance experience gains/losses 4 (7) 9 24 12 2 (1) 1 14
Impact of markets & other 7 (103) (103) 50 33 (57) (234) (84) (342)
Impact of change in assumptions 8 1 7 48 104 187 (16) — 275
Total CSM movement 9 1 25 207 240 177 (195) (55) 167
(1)
appendix of this document, or Section N. Non-IFRS Financial Measures of the Company's Q3 2023 MD&A for more information.
17
CANADA CONTINUED
At and For the

Individual Insurance and Wealth 1 116 131 140 110 113 106 85 414
Sun Life Health 2 136 160 95 102 102 112 59 375
Group Retirement Services 3 86 81 81 53 78 81 62 274
Total underlying net income 4 338 372 316 265 293 299 206 1,063
Reported net income (loss) - Common shareholders
Individual Insurance and Wealth 5 190 (14) 93 268 (72) 296 221 713
Sun Life Health 6 106 161 175 95 74 79 (33) 215
Group Retirement Services 7 69 63 61 90 54 101 68 313
Total reported net income 8 365 210 329 453 56 476 256 1,241
WEALTH, HEALTH AND PROTECTION SALES (1)

Individual Insurance and Wealth
Individual - Protection - Sun Life Financial Distribution (SLFD) (2) 9 42 47 36 46 38 45 37 166
Individual - Protection - Third-party 10 106 107 100 93 81 81 75 330
Total individual - protection sales 11 148 154 136 139 119 126 112 496
Individual Wealth - fixed products 12 464 356 397 431 330 258 190 1,209
Individual Wealth - mutual funds 13 1,317 1,306 1,475 1,121 1,073 1,341 1,708 5,243
Individual Wealth - segregated funds 14 143 159 195 161 143 200 306 810
Total Individual Wealth sales 15 1,924 1,821 2,067 1,713 1,546 1,799 2,204 7,262
Wealth manufactured sales (3) 16 947 858 994 912 761 891 1,149 3,713
Other wealth sales 17 977 963 1,073 801 785 908 1,055 3,549
Total Individual Wealth sales 18 1,924 1,821 2,067 1,713 1,546 1,799 2,204 7,262
SLFD - Career Advisor Network 19 2,717 2,700 2,711 2,704 2,687 2,731 2,792 2,704
Sun Life Health sales 20 119 153 145 107 114 92 220 533
Group Retirement Services

Defined Contribution sales 21 206 194 162 486 393 72 877 1,828
Defined Benefits Solutions sales 22 389 309 40 1,017 443 654 5 2,119
Asset consolidation and rollovers 23 876 806 821 883 799 816 922 3,420
Total Group Retirement Services sales 24 1,471 1,309 1,023 2,386 1,635 1,542 1,804 7,367
(1)
AUMA
Individual Insurance and Wealth
General funds 25 66,841 68,618 70,977 70,563 70,079 66,865 70,296 70,563
Third-party AUM 27 5,347 5,876 6,069 6,136 6,022 6,208 6,955 6,136
Total AUM 28 83,354 86,129 88,805 88,252 87,372 84,632 90,272 88,252
Mutual fund dealers' assets 29 28,132 28,298 27,732 26,366 25,426 25,422 27,940 26,366
Total Individual Insurance and Wealth AUMA 30 111,486 114,427 116,537 114,618 112,798 110,054 118,212 114,618
Sun Life Health
General funds 31 16,072 16,768 14,500 14,832 14,918 15,296 15,693 14,832
Group Retirement Services
General funds 32 22,047 22,429 22,839 22,012 21,130 20,350 21,068 22,012
Total AUM 34 123,572 126,674 125,505 119,517 113,270 113,215 123,991 119,517
Total Group Retirement Services AUMA 36 137,053 140,190 138,815 132,443 125,330 125,559 137,468 132,443
(1)
(2)
Individual insurance sales - SLFD include sales from Prospr, a hybrid digital advice solution, and Sun Life Go, a digital channel.
(3)
Wealth manufactured sales represent sales of individual wealth products developed by Sun Life, which include SLGI Asset Management Inc. retail funds, Sun Life Guaranteed Investment Fund segregated funds,
Guaranteed Investment Certificates, and Accumulation and Payout Annuities.
18
U.S. (1)
For the Year

Reinsurance contract held net income (expenses) 3 (8) 52 11 8 (191) 165 109 91
Investment result
Net investment income (loss) 5 (712) (46) 698 157 (1,027) (1,255) (1,715) (3,840)
Insurance finance income (expenses) from insurance contracts issued 6 901 169 (733) 3 1,220 1,589 1,932 4,744
Insurance finance income (expenses) from reinsurance contracts held 7 (174) (34) 84 (9) (138) (169) (222) (538)
Net investment result 8 15 89 49 151 55 165 (5) 366
Fee income 9 111 108 111 125 103 52 27 307
Other expenses
Operating expenses and commissions 10 263 263 253 315 223 174 83 795
Total other expenses 12 292 289 277 338 247 190 93 868
Income before income taxes 13 172 228 215 266 151 207 76 700
Less: Net income (loss) allocated to the participating account 15 6 6 5 10 (4) 15 6 27
NET PREMIUMS (2)

Group Benefits 18 1,602 1,588 1,574 1,497 1,436 1,386 1,351 5,670
Dental 19 994 1,037 1,010 965 900 361 99 2,325
Total 20 2,596 2,625 2,584 2,462 2,336 1,747 1,450 7,995
FEE INCOME
Group Benefits 21 27 25 26 24 21 19 21 85
Dental 22 80 82 83 89 80 31 4 204
Total 23 107 107 109 113 101 50 25 289
SALES (2)
Group Benefits 24 201 238 152 1,071 216 189 135 1,611
Dental 25 38 246 221 150 150 24 13 337
Total 26 239 484 373 1,221 366 213 148 1,948
(1)
Effective Q2 2023, the UK payout annuities business was moved from the Corporate business segment to the U.S. business segment and combined with U.S. In-force Management. In Q3 2023, the Run-off Reinsurance
business was also moved from Corporate to U.S. In-force Management.
(2)
IFRS Financial Measures of the Company's Q3 2023 MD&A.
19
U.S. CONTINUED
For the Year

Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 2022
Expected insurance earnings 4 264 263 270 240 242 170 177 829
Experience gains (losses) 5 6 51 54 84 70 (3) (37) 114
Credit experience 8 (6) 3 1 2 6 — — 8
Other 10 2 2 8 (2) 5 24 10 37
Other fee income 12 4 4 11 24 13 1 — 38
Expenses - other (2) 13 (114) (120) (106) (116) (103) (60) (53) (332)
Income before taxes - Underlying 14 227 274 298 290 287 173 130 880
Market-related impacts 17 36 (15) (17) 18 (10) (1) (42) (35)
ACMA 18 (36) 23 — 57 (5) — 1 53
Other adjustments:
Other (3) 21 — — — (11) (48) 75 — 16

Underlying net income 25 185 215 237 230 227 134 107 698
Add: Market-related impacts 26 36 (15) (17) 18 (10) (1) (42) (35)
ACMA 27 (36) 23 — 57 (5) — 1 53
Other adjustments 28 (53) (48) (52) (103) (87) 16 (10) (184)
(1)
The Drivers of Earnings analysis and Underlying Net Income by Business Type contain non-IFRS financial measures. Refer to the Non-IFRS Financial Measures section on page 1 and the Additional Non-IFRS Financial
Measures Glossary in the appendix of this document, or Section N. Non-IFRS Financial Measures of the Company's Q3 2023 MD&A.
(2)
Expenses - other removes the non-underlying Other adjustments, including Acquisition, integration and restructuring, and Intangible asset amortization. Certain Other adjustments - other may also be an adjustment from
Other expenses.
(3)
20
At and
U.S.CONTINUED For the
Year
Insurance experience gains/losses 3 (10) 23 (10) (4) (19) 19 10 6
Organic CSM movement 5 (34) (3) (32) (28) (41) (6) (14) (89)
Impact of markets & other 6 7 2 (2) 27 17 30 35 109
Impact of change in assumptions 7 (1) 4 — 5 (52) 14 8 (25)
Currency impact 8 29 (25) (3) (23) 82 34 (10) 83
Disposition (2) 9 11 108 — — — — — —
Total CSM movement 10 12 86 (37) (19) 6 72 19 78
(1)
(2)
In Q2 2023, we completed the sale of Sun Life UK, and after the sale, the remaining UK payout annuities business was moved from the Corporate business segment to the U.S. business segment and combined
with U.S. In-force Management. In Q3 2023, the Run-off Reinsurance business was also moved from Corporate to U.S. In-force Management. Refer to the Notes page ii, Adjustments - Acquisition, Integration and
Restructuring for additional details.
21
U.S. (1)
For the Year

(US$ millions) For the Quarter Ended Ended
Reinsurance contract held net income (expenses) 3 (4) 37 11 5 (141) 127 85 76
Investment result
Net investment income (loss) 5 (525) (32) 513 121 (777) (993) (1,353) (3,002)
Insurance finance income (expenses) from insurance contracts issued 6 673 126 (541) 2 922 1,241 1,527 3,692
Insurance finance income (expenses) from reinsurance contracts held 7 (130) (25) 62 (6) (108) (132) (175) (421)
Fee income 9 82 81 82 92 79 41 21 233
Other expenses
Operating expenses and commissions 10 197 196 186 232 158 136 65 591
Less: Net income (loss) allocated to the participating account 15 4 4 4 9 (3) 11 4 21
Return on equity - reported 19 9.2% 11.4% 10.5% 12.7% 8.3% 12.4% 6.8% 10.3%
NET PREMIUMS (2)

Group Benefits 20 1,194 1,183 1,165 1,103 1,100 1,087 1,067 4,357
Dental 21 741 772 747 711 690 283 78 1,762
Total 22 1,935 1,955 1,912 1,814 1,790 1,370 1,145 6,119
FEE INCOME
Group Benefits 23 20 19 19 17 17 15 16 65
Dental 24 60 61 61 65 62 24 3 154
Total 25 80 80 80 82 79 39 19 219
SALES (2)
Group Benefits 26 150 177 112 788 166 149 106 1,209
Dental 27 29 183 163 111 115 19 10 255
Total 28 179 360 275 899 281 168 116 1,464
(1)
Effective Q2 2023, the UK payout annuities business was moved from the Corporate business segment to the U.S. business segment and combined with U.S. In-force Management. In Q3 2023, the Run-off Reinsurance
business was also moved from Corporate to U.S. In-force Management.
(2)
IFRS Financial Measures of the Company's Q3 2023 MD&A.
22
U.S. CONTINUED
For the Year

Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 2022
Experience gains (losses) 5 2 37 41 59 42 2 (32) 71
Credit experience 8 (4) 2 1 1 4 1 — 6
Other 10 1 1 6 6 (1) 7 11 23
Other fee income 12 3 5 7 19 8 1 2 30
Expenses - other (2) 13 (86) (91) (78) (84) (65) (46) (43) (238)
Market-related impacts 17 30 (9) (13) 11 (8) (1) (32) (30)
ACMA 18 (26) 18 — 42 (3) — 1 40
Other adjustments:
(3)
Other 21 — — — (8) (37) 58 — 13

Individual - Protection 24 28 11 22 13 37 (1) 32 81
Add: Market-related impacts 26 30 (9) (13) 11 (8) (1) (32) (30)
ACMA 27 (26) 18 — 42 (3) — 1 40
Other adjustments 28 (39) (36) (38) (75) (66) 12 (8) (137)
(1)
The Drivers of Earnings analysis and Underlying Net Income by Business Type contain non-IFRS financial measures. Refer to the Non-IFRS Financial Measures section on page 1 and the Additional Non-IFRS Financial
Measures Glossary in the appendix of this document, or Section N. Non-IFRS Financial Measures of the Company's Q3 2023 MD&A.
(2)
Expenses - other removes the non-underlying Other adjustments, including Acquisition, integration and restructuring, and Intangible asset amortization. Certain Other adjustments - other may also be an adjustment from
Other expenses.
(3)
23
At and
U.S. CONTINUED For the
Year
(US$ millions) Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 2022
CSM at beginning of period 1 917 835 861 858 916 887 862 862
Insurance experience gains/losses 3 (8) 18 (8) (3) (15) 15 8 5
Organic CSM movement 5 (26) (1) (24) (21) (33) (5) (11) (70)
Impact of markets & other 6 4 2 (2) 20 15 23 30 88
Impact of change in assumptions 7 (1) 3 — 4 (40) 11 6 (19)
Disposition (2) 8 8 78 — — — — — —
Total CSM movement 9 (15) 82 (26) 3 (58) 29 25 (1)
CSM at end of period 10 902 917 835 861 858 916 887 861
(1)
(2)
24
U.S. CONTINUED (1)
At and For the Quarter Ended At and For the

(US$ millions) Year Ended
Group Benefits 1 96 116 128 119 101 87 49 356
Dental 2 16 33 26 41 35 16 2 94
In-force Management 3 28 11 22 13 37 (1) 32 81
Total underlying net income 4 140 160 176 173 173 102 83 531
Reported net income - Common shareholders
Group Benefits 5 121 106 128 119 74 75 34 302
Dental 6 (21) 2 (8) (22) 9 (25) 2 (36)
In-force Management 7 5 25 5 54 13 63 8 138
Total reported net income 8 105 133 125 151 96 113 44 404
NET PREMIUMS (2)

Group Benefits
Employee Benefits 9 555 553 540 494 496 488 477 1,955
Medical Stop-Loss 10 639 630 625 609 604 599 590 2,402
Total Group Benefits net premiums 11 1,194 1,183 1,165 1,103 1,100 1,087 1,067 4,357
Dental
Medicaid/Medicare Advantage (3) 12 632 670 644 612 592 199 — 1,403
Commercial/Other (3) 13 109 102 103 99 98 84 78 359
Total Dental net premiums 14 741 772 747 711 690 283 78 1,762
FEE INCOME
Group Benefits
Employee Benefits 15 13 12 12 11 10 9 8 38
Medical Stop-Loss 16 7 7 7 6 7 6 8 27
Total Group Benefits fee income 17 20 19 19 17 17 15 16 65
Dental
Medicaid/Medicare Advantage (3) 18 37 37 38 39 37 12 — 88
Total Dental fee income 20 60 61 61 65 62 24 3 154
(2)
SALES
Group Benefits
Employee Benefits 21 81 47 70 269 101 54 53 477
Medical Stop-Loss 22 69 130 42 519 65 95 53 732
Total Group Benefits sales 23 150 177 112 788 166 149 106 1,209
Dental
Medicaid/Medicare Advantage (3) 24 4 167 127 64 92 4 — 160
Total Dental sales 26 29 183 163 111 115 19 10 255
AUM (2)
Group Benefits - general funds 27 7,997 8,309 8,247 8,284 8,453 8,513 8,275 8,284
Dental - general funds 28 3,376 3,286 3,259 3,221 3,363 3,396 70 3,221
In-force Management
General funds 29 14,029 15,447 15,453 11,164 11,895 14,315 16,569 11,164
Segregated funds 30 292 313 314 311 312 336 374 311
Third-party AUM 31 13 14 14 15 15 16 16 15
Total In-force Management AUM 32 14,334 15,774 15,781 11,490 12,222 14,667 16,959 11,490
AFTER-TAX PROFIT MARGIN (2)(4)

Group Benefits 33 9.9% 10.2% 9.7% 8.1% 5.9% 4.7% 5.1% 8.1%
(1)
Effective Q2 2023, the UK payout annuities business was moved from the Corporate business segment to the U.S. business segment and combined with U.S. In-force Management. In Q3 2023, the Run-off Reinsurance business
was also moved from Corporate to U.S. In-force Management.
(2)
(3)
Medicaid/Medicare Advantage includes Children’s Health Insurance Program (CHIP) and Commercial/Other includes Affordable Care Act (ACA) exchange programs.
(4)
IFRS 17 and IFRS 9 were adopted on January 1, 2023, as such the margins for Q3 2022 to Q1 2022 reflect Underlying net income on an IFRS 4 and IAS 39 basis.
25
ASIA
At and For the

Insurance revenue 1 312 364 312 405 326 294 298 1,323
Insurance service expenses 2 (224) (238) (238) (306) (226) (200) (261) (993)
Reinsurance contract held net income (expenses) 3 (10) (5) 6 8 8 13 (4) 25
Investment result
Net investment income (loss) 5 (532) 45 1,021 495 (1,384) (1,848) (2,002) (4,739)
Insurance finance income (expenses) from insurance contracts issued 6 776 50 (874) (493) 1,346 1,838 2,122 4,813
Insurance finance income (expenses) from reinsurance contracts held 7 — (4) (6) (9) 5 7 — 3
Decrease (increase) in investment contract liabilities 8 (2) (2) (1) (3) 3 3 5 8
Net investment result 9 242 89 140 (10) (30) — 125 85
Fee income 10 76 74 77 99 71 63 107 340
Other expenses
Operating expense and commissions 11 137 117 110 108 143 106 94 451
Income before income taxes 14 238 152 172 73 (12) 49 154 264
Less: Income tax expense (benefit) 15 8 (4) 26 9 (15) 16 14 24
Less: Net income (loss) allocated to the participating account 16 19 34 12 (28) 3 26 29 30
Reported net income - Common shareholders 17 211 122 134 92 — 7 111 210
Return on equity - reported 20 15.5% 9.0% 9.9% 7.1% —% 0.5% 9.8% 4.3%
(1)
SALES - Proportionate ownership
Total gross wealth sales & asset management gross flows 21 1,663 1,616 2,430 1,790 2,531 3,298 3,521 11,140
Total net wealth sales & asset management net flows 22 101 199 665 (582) (468) 173 353 (524)
Individual - Protection sales 23 521 450 375 359 325 290 297 1,271
Group - Health & Protection sales 24 16 19 25 17 19 15 22 73
Total weighted premium income (1) 25 1,563 1,425 1,351 1,381 1,194 1,122 1,187 4,884
(1)
CSM - Impact of new insurance business 26 238 118 102 122 79 70 51 322
(1)
AUMA
General funds 27 36,600 35,825 36,712 35,798 35,781 34,658 35,274 35,798
Third-party AUM 29 73,543 70,996 68,449 68,270 65,074 63,605 64,604 68,270
Total AUM 30 117,044 113,893 112,442 111,179 107,450 104,956 107,179 111,179
Total AUMA 32 121,642 118,186 116,965 115,753 111,779 109,282 111,581 115,753
Wealth AUM (1) 33 36,072 35,548 35,830 34,965 34,071 34,566 35,975 34,062
SELECT CONSTANT CURRENCY MEASURES (1)

Underlying net income 34 163 153
Reported net income - Common shareholders 35 206 —
Gross wealth sales & asset management gross flows 36 1,642 2,531
Net wealth sales & asset management net flows 37 100 (468)
Individual - Protection sales 38 509 325
Group - Health & protection sales 39 17 19
Total weighted premium income 40 1,539 1,194
(1)
26
ASIA CONTINUED
For the Year

Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 2022
Expected earnings on short-term (group) insurance business 3 1 — 2 (1) 5 4 5 13
Experience gains (losses) 6 2 (5) (17) (24) — — (57) (81)
Credit experience 9 — (1) 2 — (5) 1 4 —
Joint ventures & other 11 47 47 49 26 44 27 37 134
Other fee income 13 (1) 4 11 11 4 (1) 41 55
Expenses - other (2) 14 (76) (57) (55) (49) (64) (51) (46) (210)
Income tax (expense) or recovery 16 (1) (8) (12) 13 5 (11) (11) (4)
Market-related impacts 18 (4) (12) 5 (129) (97) (103) (3) (332)
ACMA 19 56 (10) (6) 71 (54) — (16) 1
Other adjustments:
Acquisition, integration and restructuring (3) 20 (5) (4) (4) — — (6) (1) (7)
Other (3) 22 — — — 17 — — — 17

Wealth & asset management 24 11 13 15 16 19 15 21 71
Regional Office expenses & other 26 (20) (7) (4) 1 (2) (3) (7) (11)
Add: Market-related impacts 28 (4) (12) 5 (129) (97) (103) (3) (332)
ACMA 29 56 (10) (6) 71 (54) — (16) 1
Other adjustments 30 (7) (6) (6) 15 (2) (8) (3) 2
(1)
The Drivers of Earnings analysis and Underlying Net Income by Business Type contain non-IFRS financial measures. Refer to the Non-IFRS Financial Measures section on page 1 and the Additional Non-IFRS
Financial Measures Glossary in the appendix of this document, or Section N. Non-IFRS Financial Measures of the Company's Q3 2023 MD&A.
(2)
Expenses - other removes the non-underlying Other adjustments, including Acquisition, integration and restructuring, and Intangible asset amortization. Certain Other adjustments - other may also be an adjustment
from Other expenses.
(3)
Refer to the Notes page ii, Adjustments - Acquisition, Integration and Restructuring and Adjustments - other for additional details. In Q4 2022, Other includes the unwinding of an internal reinsurance agreement.
27
At and
ASIA CONTINUED (1) For the
Year
Insurance experience gains/losses 4 (10) (12) 68 2 (13) 7 57 53
Impact of markets & other 7 (65) 21 52 151 (75) 89 75 240
Impact of change in assumptions 8 (43) 273 — 38 72 3 9 122
Currency impact 9 83 (110) 15 (12) 202 19 (39) 170
Total CSM movement 10 191 266 214 271 233 145 112 761
(1)
In Asia, CSM relates to individual protection (excluding joint ventures).
(2)
28
ASIA CONTINUED
For the Year


ASEAN 1 46 43 39 57 43 29 42 171
Hong Kong 2 55 39 41 29 40 36 44 149
Joint Ventures 3 41 38 33 35 33 21 33 122
High Net Worth 4 44 37 32 13 39 35 21 108
Regional Office 5 (20) (7) (4) 1 (2) (3) (7) (11)
Total underlying net income 6 166 150 141 135 153 118 133 539
Reported net income - Common shareholders

ASEAN 7 13 45 25 63 10 5 39 117
Hong Kong 8 89 19 50 (9) (26) 34 (29) (30)
Joint Ventures 9 29 28 39 5 26 (28) (7) (4)
High Net Worth 10 95 36 27 37 (10) 3 117 147
Regional Office 11 (15) (6) (7) (4) — (7) (9) (20)
Total reported net income 12 211 122 134 92 — 7 111 210
(1)
Individual - Protection Sales
Philippines 13 68 59 65 82 64 58 54 258
Indonesia 14 14 13 17 22 17 18 18 75
Vietnam 15 26 35 33 48 49 43 37 177
Total ASEAN 17 108 107 115 152 130 119 109 510
Hong Kong 18 240 158 68 69 55 42 42 208
China 19 21 72 31 23 30 34 39 126
India 20 54 48 106 66 55 35 65 221
Malaysia 21 16 22 17 17 22 20 13 72
Total Joint Ventures 22 91 142 154 106 107 89 117 419
High Net Worth 23 82 43 38 32 33 40 29 134
Total individual - protection sales 24 521 450 375 359 325 290 297 1,271
Constant Currency - Individual - Protection Sales (1)

Philippines 25 64 64
Indonesia 26 14 17
Vietnam 27 26 49
Total ASEAN 28 104 130
Hong Kong 29 234 55
China 30 23 30
India 31 52 55
Malaysia 32 16 22
Total Joint Ventures 33 91 107
High Net Worth 34 80 33
Total individual - protection sales 35 509 325
(1)
Represents a non-IFRS financial measure. Refer to the Non-IFRS Financial Measures section on page 1 and the Additional Non-IFRS Financial Measures Glossary in the appendix of this document, or
Section N. Non-IFRS Financial Measures of the Company's Q3 2023 MD&A.
29
CORPORATE (1)
At and For the

Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 2022
STATEMENTS OF OPERATIONS (1)

Insurance revenue 1 (1) (18) 105 112 106 120 126 464
Insurance service expenses 2 (4) (5) (94) (96) (69) (90) (88) (343)
Reinsurance contract held net income (expenses) 3 3 (1) — (6) — — (1) (7)
Net insurance service result 4 (2) (24) 11 10 37 30 37 114
Investment result
Net investment income (loss) 5 2 11 175 181 (591) (487) (443) (1,340)
Insurance finance income (expenses) from insurance contracts issued 6 — 18 (131) (86) 494 475 403 1,286
Insurance finance income (expenses) from reinsurance contracts held 7 — 1 (1) 1 — (1) (2) (2)
Decrease (increase) in investment contract liabilities 8 — — 1 6 (6) — — —
Net investment result 9 2 30 44 102 (103) (13) (42) (56)
Fee income 10 (92) (83) (86) (111) (63) (61) (96) (331)
Other expenses
Other income (1) 11 — (67) — — — — — —
Operating expenses and commissions 12 28 89 62 29 169 (10) 20 208
Interest expenses 13 17 20 16 10 (4) (1) 5 10
Total other expenses 14 45 42 78 39 165 (11) 25 218
Income (loss) before income taxes 15 (137) (119) (109) (38) (294) (33) (126) (491)
Less: Income tax expense (benefit) 16 (51) (44) (50) (155) (24) (47) (75) (301)
Less: Preferred shareholders' dividends and distributions on other equity instruments 17 19 20 20 20 18 14 18 70
Reported net income (loss) - Common shareholders 18 (105) (95) (79) 97 (288) — (69) (260)
Underlying net income (loss) (2) 19 (89) (113) (81) (62) (22) (38) (47) (169)
(2)
AUM
General funds 20 8,109 8,000 12,256 11,584 11,747 11,897 14,900 11,584
Segregated funds 21 — — 8,902 8,702 8,126 8,548 9,784 8,702
Consolidation Adjustments (2) 22 (26,843) (27,838) (32,301) (31,437) (30,099) (29,531) (30,439) (31,437)
Total 23 (18,734) (19,838) (11,143) (11,151) (10,226) (9,086) (5,755) (11,151)

Risk adjustment release 24 (1) 1 5 6 7 8 8 29
CSM recognized for services provided 25 — — 10 11 9 7 8 35
Expected insurance earnings 26 (1) 1 15 17 16 15 16 64
Experience gains (losses) 27 (1) 4 (2) 1 24 8 19 52
Net insurance service result - Underlying 28 (2) 5 13 18 40 23 35 116
Expected investment earnings 29 — — 5 8 (7) (1) 2 2
Credit experience 30 — — — 1 — (1) (1) (1)
Earnings on surplus 31 34 37 12 (1) 27 36 13 75
Other 32 — (2) 11 26 (15) (34) (19) (42)
Net investment result - Underlying 33 34 35 28 34 5 — (5) 34
Other fee income 34 — — 8 (4) 20 21 (13) 24
Expenses - other (3) 35 (147) (173) (162) (115) (93) (104) (116) (428)
Income (loss) before taxes - Underlying 36 (115) (133) (113) (67) (28) (60) (99) (254)
Income tax (expense) or recovery 37 45 40 52 24 25 36 70 155
Dividends, distributions, NCI 38 (19) (20) (20) (19) (19) (14) (18) (70)
(2)
Underlying net income (loss) 39 (89) (113) (81) (62) (22) (38) (47) (169)
Market-related impacts 40 (16) (6) 2 108 (85) 37 (22) 38
ACMA 41 — — 3 17 (11) — — 6
(4)
Acquisition, integration and restructuring 41 — 24 (3) — (170) — — (170)
Other (4) 42 — — — 34 — 1 — 35

Individual - Protection 44 — 4 25 11 32 24 20 87
Corporate expenses & other 45 (89) (117) (106) (73) (54) (62) (67) (256)
Add: Market-related impacts 47 (16) (6) 2 108 (85) 37 (22) 38
ACMA 48 — — 3 17 (11) — — 6
Other adjustments 49 — 24 (3) 34 (170) 1 — (135)
(1)
Corporate is comprised of our Corporate Support operations, which consist of the expenses, debt charges, investment income, capital and other items not allocated to Sun Life's other business segments, as well as the Company's
UK, Run-off Reinsurance and Reinsurance Clearinghouse businesses until Q1 2023. In Q2 2023, we completed the sale of the Sun Life UK, and the remaining UK payout annuities business was moved to the U.S. business segment
and combined with U.S. In-force Management. In Q3 2023, the Run-off Reinsurance business was also moved to U.S. In-force Management. The internal reinsurance agreements were terminated on December 31, 2022. Corporate's
Statements of Operations include consolidation adjustments for net investment income, fee income, operating expenses and commissions, and interest expenses relating to activities that cross business groups.
(2)
(3)
Expenses - other removes the non-underlying Other adjustments, including Acquisition, integration and restructuring. Certain Other adjustments - other may also be an adjustment from Other expenses.
(4)
30
At and
CORPORATE CONTINUED For the
Year
CSM at beginning of period 1 10 372 378 355 325 324 316 316
Expected movements from asset returns & locked-in rates 2 — — 2 1 — — — 1
Insurance experience gains/losses 3 (1) 1 11 4 3 3 6 16
CSM recognized for services provided 4 (2) 1 (10) (12) (8) (11) (8) (39)
Organic CSM movement 5 (3) 2 3 (7) (5) (8) (2) (22)
Impact of markets & other 6 3 — (13) (5) (7) 20 22 30
Impact of change in assumptions 7 — — (2) 13 45 1 — 59
Currency impact 8 1 6 6 22 (3) (12) (12) (5)
Disposition (2) 9 (11) (370) — — — — — —
Total CSM movement 10 (10) (362) (6) 23 30 1 8 62
CSM at end of period 11 — 10 372 378 355 325 324 378
(1)
(2)
31
INVESTMENTS
DEBT & EQUITY SECURITIES As at September 30, 2023 As at June 30, 2023 As at December 31, 2022
Fair Value Fair Value

(C$ millions) through Profit through Other Investment Investment (1) Investment
Total FVTPL FVOCI Total FVTPL FVOCI (1) Total (1)
or Loss Comprehensive Grade Grade Grade
(FVTPL) Income (FVOCI)
DEBT SECURITIES
Debt Securities by Sector
Debt Securities Issued or Guaranteed By:
Canadian Federal Government 1 4,090 779 4,869 100% 4,477 846 5,323 100% 3,696 1,915 5,611 100%
Canadian Provincial and Municipal Government 2 11,770 742 12,512 100% 13,182 842 14,024 100% 12,612 1,053 13,665 100%
U.S. Government and Other U.S. Agency 3 626 546 1,172 100% 705 564 1,269 100% 759 778 1,537 100%
Other Foreign Government 4 3,135 531 3,666 92% 3,130 558 3,688 93% 3,755 869 4,624 95%
Total Government issued or guaranteed debt securities 5 19,621 2,598 22,219 99% 21,494 2,810 24,304 99% 20,822 4,615 25,437 99%
Corporate Debt Securities by Industry Sector:
Financials 6 7,670 2,721 10,391 99% 7,899 2,676 10,575 99% 8,232 3,123 11,355 99%
Utilities 7 5,490 761 6,251 100% 5,865 695 6,560 100% 5,884 792 6,676 99%
Consumer discretionary 8 904 775 1,679 89% 998 745 1,743 90% 1,085 751 1,836 89%
Industrials 9 4,252 1,124 5,376 98% 4,508 1,052 5,560 98% 4,533 1,042 5,575 99%
Consumer staples 10 1,426 297 1,723 99% 1,534 294 1,828 99% 1,634 344 1,978 99%
Communication Services 11 2,443 404 2,847 98% 2,647 365 3,012 98% 2,861 468 3,329 99%
Energy 12 2,554 397 2,951 99% 2,763 356 3,119 99% 2,978 364 3,342 97%
Real Estate 13 1,774 491 2,265 98% 1,811 512 2,323 98% 1,865 641 2,506 97%
Materials 14 879 167 1,046 98% 905 157 1,062 98% 1,077 218 1,295 98%
Health Care 15 1,459 411 1,870 99% 1,582 408 1,990 99% 1,618 416 2,034 99%
Information Technology 16 696 166 862 99% 770 165 935 99% 1,095 289 1,384 99%
Total Corporate debt securities 17 29,547 7,714 37,261 98% 31,282 7,425 38,707 99% 32,862 8,448 41,310 98%
Asset Backed Securities
Government and agency 18 2,272 852 3,124 100% 2,430 808 3,238 100% 2,437 721 3,158 100%
Other 19 3,549 2,726 6,275 99% 3,500 2,720 6,220 99% 3,236 2,761 5,997 99%
Total asset backed securities 20 5,821 3,578 9,399 99% 5,930 3,528 9,458 99% 5,673 3,482 9,155 99%
Total debt securities 21 54,989 13,890 68,879 99% 58,706 13,763 72,469 99% 59,357 16,545 75,902 99%
Debt Securities by Investment Rating
AAA 22 9,199 4,383 13,582 9,834 4,468 14,302 9,440 5,822 15,262
AA 23 8,457 1,312 9,769 9,262 1,420 10,682 9,267 2,043 11,310
A 24 20,919 4,467 25,386 22,881 4,356 27,237 23,050 4,646 27,696
BBB 25 15,896 3,304 19,200 16,232 3,147 19,379 17,007 3,661 20,668
BB and lower 26 518 424 942 497 372 869 593 373 966
Total debt securities 27 54,989 13,890 68,879 58,706 13,763 72,469 59,357 16,545 75,902
EQUITY SECURITIES
Stocks
Canada 28 2,855 — 2,855 2,954 — 2,954 3,038 — 3,038
United States 29 1,989 70 2,059 2,030 68 2,098 1,924 — 1,924
United Kingdom 30 94 — 94 76 — 76 154 — 154
Other 31 2,072 — 2,072 2,059 — 2,059 2,032 — 2,032
Total equity securities 32 7,010 70 7,080 7,119 68 7,187 7,148 — 7,148
(1)
Amounts as at December 31, 2022 have been restated to present comparative information on financial assets as if IFRS 9 were applicable during the comparative period.
32
PROPERTIES, MORTGAGES & LOANS AND DERIVATIVES As at September 30, 2023 As at June 30, 2023 As at December 31, 2022
Owner Owner Owner
Investment Occupied Investment Occupied Investment Occupied
(C$ millions) Property Property Total Property Property Total Property (1) Property (1) Total (1)
PROPERTIES
Canada 1 8,048 54 8,102 8,043 54 8,097 8,041 54 8,095
United States 2 1,904 7 1,911 1,958 7 1,965 2,016 — 2,016
United Kingdom 3 — — — — — — 45 — 45
Other 4 — 23 23 — 23 23 — 24 24
Total properties 5 9,952 84 10,036 10,001 84 10,085 10,102 78 10,180
As at September 30, 2023 As at June 30, 2023 As at December 31, 2022

MORTGAGES & LOANS FVTPL FVOCI Amortized Cost Total FVTPL FVOCI Amortized Cost Total FVTPL (1) FVOCI (1) Amortized Cost (1) Total (1)
Retail 6 2,564 22 — 2,586 2,659 39 — 2,698 2,779 40 — 2,819
Office 7 2,704 41 — 2,745 2,790 41 5 2,836 2,958 51 5 3,014
Multi-family residential 8 2,920 87 1,839 4,846 3,071 84 1,853 5,008 2,915 197 1,902 5,014
Industrial 9 2,765 155 1 2,921 2,758 165 1 2,924 2,482 178 5 2,665
Other 10 927 — 23 950 872 12 29 913 818 62 29 909
Total Mortgages 11 11,880 305 1,863 14,048 12,150 341 1,888 14,379 11,952 528 1,941 14,421
Corporate loans 12 37,946 37,959 36,832

Total mortgages & loans 13 51,994 52,338 51,253
Mortgages by Investment Rating
Insured 14 2,101 48 1,862 4,011 2,214 57 1,882 4,153 1,976 130 1,929 4,035
AAA 15 7 — — 7 7 — — 7 — — — —
AA 16 1,714 119 — 1,833 1,785 131 — 1,916 1,532 131 2 1,665
A 17 5,137 115 1 5,253 5,199 131 2 5,332 5,290 187 6 5,483
BBB 18 2,332 20 — 2,352 2,385 19 4 2,408 2,602 80 4 2,686
BB and lower 19 567 3 — 570 548 3 — 551 538 — — 538
Impaired 20 22 — — 22 12 — — 12 14 — — 14
Total mortgages 21 11,880 305 1,863 14,048 12,150 341 1,888 14,379 11,952 528 1,941 14,421
Loans by Investment Rating
AAA 22 169 — — 169 343 — — 343 285 — — 285
AA 23 5,276 167 53 5,496 5,141 147 35 5,323 4,934 148 19 5,101
A 24 14,240 988 178 15,406 14,202 863 146 15,211 14,304 759 194 15,257
BBB 25 14,414 230 59 14,703 14,662 228 80 14,970 13,952 252 80 14,284
BB and lower 26 1,950 125 36 2,111 1,879 123 36 2,038 1,765 101 6 1,872
Impaired 27 59 2 — 61 62 11 1 74 16 16 1 33
Total corporate loans 28 36,108 1,512 326 37,946 36,289 1,372 298 37,959 35,256 1,276 300 36,832
As at January
1, 2023
Expected Credit Loss (ECL) 29 81 101 75
As at September 30, 2023 As at June 30, 2023 As at December 31, 2022

Total Net Total Net Total Net
Notional Fair Value Notional Fair Value Notional Fair Value
DERIVATIVES Amount Amount Amount Amount Amount (1) Amount (1)
Interest rate contracts 30 24,927 (839) 26,088 (375) 25,731 (434)
Foreign exchange contracts 31 39,930 92 38,135 824 38,785 97
Equity and other contracts 32 4,106 84 4,190 101 5,252 81
Total derivatives 33 68,963 (663) 68,413 550 69,768 (256)
Over the counter 34 64,943 (689) 63,673 516 63,964 (283)

Exchange traded 35 4,020 26 4,740 34 5,804 27
Total 36 68,963 (663) 68,413 550 69,768 (256)
(1)
Amounts as at December 31, 2022 have been restated to present comparative information on financial assets as if IFRS 9 were applicable during the comparative period.
33
EXPENSES
For the
(C$ millions) For the Quarter Ended Year Ended
Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 2022
EXPENSES included in Insurance Service and Other Expenses
Operating expenses 1 1,769 1,789 1,648 1,764 1,648 1,348 1,342 6,102
Commission expense 2 235 234 234 231 263 238 258 990
Interest expense 3 160 142 135 127 119 101 98 445
Total operating expenses, commissions and interest expense included in Other expenses 4 2,164 2,165 2,017 2,122 2,030 1,687 1,698 7,537
Operating expenses incurred in period included in Insurance service expenses (1) 5 511 511 505 501 471 441 398 1,811
(1)
Commissions incurred in period included in Insurance service expenses 6 277 276 291 300 281 281 273 1,135
Total expenses incurred in period included in Insurance service and Other expenses 7 2,952 2,952 2,813 2,923 2,782 2,409 2,369 10,483
OPERATING EXPENSES INCLUDED IN INSURANCE SERVICE AND OTHER EXPENSES BY BUSINESS GROUP
Business Group
Canada 9 482 496 463 473 417 411 428 1,729
U.S. 10 485 474 454 420 393 296 242 1,351
Asia 11 201 194 185 202 205 190 173 770
(2)
Corporate 12 28 89 67 39 6 (2) 33 76
(3)
Sub-total before non-underlying adjustments 13 2,114 2,188 2,026 1,970 1,805 1,720 1,709 7,204
Management's ownership of MFS shares 14 8 15 (3) (14) (22) (27) 4 (59)
Acquisition, integration and restructuring costs 15 109 56 82 101 303 69 7 480
Intangible asset amortization 16 49 41 48 58 33 27 20 138
(4)
Asset Management - Other 17 — — — 150 — — — 150
Total operating expenses incurred in period included in Insurance service and Other expenses 18 2,280 2,300 2,153 2,265 2,119 1,789 1,740 7,913
COMMISSION EXPENSE INCLUDED IN INSURANCE SERVICE AND OTHER EXPENSES BY BUSINESS GROUP
Business Group
Asset Management 19 146 145 145 147 146 153 170 616
Canada 20 177 177 188 196 190 191 200 777
U.S. 21 151 151 151 142 135 132 125 534
Asia 22 38 38 41 48 72 43 37 200
(2)
Corporate 23 — (1) — (2) 1 — (1) (2)
Total commission expense incurred in period included in Insurance service and Other expenses 24 512 510 525 531 544 519 531 2,125
INTEREST EXPENSE
Subordinated debt 25 58 52 52 54 51 47 46 198
Interest on senior unsecured debentures/financing and innovative capital instruments 26 3 4 4 4 4 4 4 16
Other (5) 27 99 86 79 69 64 50 48 231
Total interest expense included in Other Expenses 28 160 142 135 127 119 101 98 445
(1)
Under IFRS 17, certain Operating expenses and Commission expense incurred in the period are included in Insurance service expenses, which are a component of Net insurance service results.
(2)
Corporate includes consolidation adjustments for Operating expenses and Commission expense relating to activities that cross business groups.
(3)
These amounts represent only non-underlying adjustments that pertain to operating expenses incurred in the period, and excludes non-underlying adjustments recognized outside of operating expenses, such as in investment results, the balance sheet, and NCI. For
more information about non-underlying adjustments, refer to the Non-IFRS Financial Measures page 1 of this document and Section N. Non-IFRS Financial Measures of the Company's Q3 2023 MD&A.
(4)
SLC Management carried interest that Sun Life does not participate in economically is presented on a net basis to reflect how management views the business, compared to a gross basis in the Consolidated Financial Statements. Refer to the Basis of Presentation
section on page ii of this document for more information.
(5)
Other primarily represents interest on put option liabilities associated with SLC Management's affiliates and interest on liabilities connected to consolidated special purpose entities, interest on leases, interest on real estate encumbrances and interest on income taxes.
34
FINANCIAL STRENGTH AND CAPITAL ADEQUACY
A.M. Best Moody's Standard & Poor's DBRS

SUN LIFE ASSURANCE COMPANY OF CANADA
FINANCIAL STRENGTH RATINGS A+ Aa3 AA AA
SECURITY RATINGS
Subordinated Debt a+ A2 AA- AA (low)
Sun Life ExchangEable Capital Securities
Series B a A3(hyb) P-1/A+ A (high)
A.M. Best Moody's Standard & Poor's DBRS

SUN LIFE FINANCIAL INC.
SECURITY RATINGS
Subordinated Debt a- not rated A A

(Series 2007-1, 2019-1, 2020-1, 2020-2, 2021-1, 2021-2, 2021-3, 2022-1, and 2023-1)
Class A Preferred Shares bbb+ not rated P-1 (low)/A- Pfd-2 (high)
(Series 3-5, 8R, 9QR, 10R and 11QR)
Limited Recourse Capital Notes

(Series 2021-1) not rated not rated A- A (low)
35
General Information
Asset Management Canada U.S. Asia Corporate
Our Asset Management business group is Our Canada business segment is a leading Our U.S. business segment is one of the We are well-positioned in growing markets in Corporate includes the results of our
comprised of MFS and SLC Management. provider of protection, health, asset largest providers of employee and Asia, with operations in key ASEAN markets, Corporate Support operations. On April 1,
MFS is a premier global asset manager management and wealth solutions, providing government benefits in the U.S., serving Hong Kong, Joint Ventures and High Net 2023, Sun Life UK was sold to Phoenix
offering a comprehensive selection of products and services that deliver value to more than 50 million Americans with Worth (“HNW”) delivering value to over 25 Group Holdings plc and our retained
financial products and services that deliver approximately 5.4 million Clients. We are the disability, life, supplemental health, medical million Clients. These markets account for economic interest in the payout annuities
superior value, actively managing assets for largest provider of benefits and pensions in stop-loss insurance, and dental and vision approximately 65% of Asia’s GDP with high business is part of the U.S. business
retail and institutional investors around the the workplace, and offer a wide range of benefits through employers, industry partners potential for future growth. We are a provider segment. Corporate Support operations
world. SLC Management is a global asset products to individuals via retail channels. and government programs such as Medicaid, of individual life and health insurance that consist of the certain expenses, debt
manager with capabilities across fixed We are focused on helping Canadians Medicare Advantage, and the Children's delivers Client value, a provider in select charges, investment income, capital and
income and alternative asset classes achieve lifetime financial security and live Health Insurance Program ("CHIP"). markets of asset management and group other items, pertaining to monitoring and
including public and private fixed income, healthier lives. Services include absence management, retirement products and services, and among oversight of enterprise activities and
real estate equity and debt, and dental care, and healthcare navigation. In the global leaders in providing life insurance Corporate treasury functions, which are not
infrastructure equity. Canada has three business units - Individual addition, our U.S. business manages an in- solutions to HNW Clients. allocated to business segments.
Insurance & Wealth, Sun Life Health and force block of approximately 85,000
Asset Management has two business units - Group Retirement Services. individual life insurance policies plus 110,000 Asia has five business units - ASEAN, Hong
MFS and SLC Management. individual annuity policies that were originally Kong, Joint Ventures, High Net Worth and
sold in the UK. Our U.S. business also Regional Office.
manages our Run-off reinsurance business,
with coverage that includes guaranteed
minimum income, death benefits and
individual long-term care, as well as personal
accident policies and medical policies which
are 100% retroceded.
U.S. has three business units - Group
Benefits, Dental and In-force Management.
MFS Individual Insurance & Wealth Group Benefits ASEAN Markets Corporate Support
Mutual Funds Individual life and health insurance Group life Philippines
U.S. retail mutual funds Individual savings products Disability insurance Vietnam
MFS Meridian funds Mutual funds Medical stop-loss insurance Indonesia
Investment management services Voluntary benefits
Institutional accounts Sun Life Health Supplemental health products Hong Kong
Pension business Group life and health insurance FullscopeRMS products and services
Insurance products Voluntary benefits products Joint Ventures
Dental China
SLC Management Group Retirement Services Medicaid and Medicare Advantage products India
Private class funds Defined contribution plans and services Malaysia
Customized fixed income portfolios Defined benefit solutions Commercial group products and services
Liability-driven investing strategies Voluntary savings plans Care Delivery services High Net Worth
Investment advisory and property International
management services In-force Management Singapore
Real estate and infrastructure solutions Individual life insurance
Alternative credit solutions Individual annuity Regional Office
Retail distribution services Run-off reinsurance
Underlying net income by Business Types
Sun Life has a diversified mix of businesses and our earnings by business type supports the analysis of our results:
• Wealth & asset management: Sun Life’s wealth & asset management businesses generate fee income and/or spread on investment products.
• Group - Health & Protection: Group businesses provide health and protection benefits to employer and government plan members. The products generally have shorter-term coverage periods, and more frequent repricing. The
revenues are driven by premiums for coverage provided as well as fee-based earnings (i.e., Administrative Services Only plans, and dental fees).
• Individual - Protection: Generally, individual protection businesses have a longer-term profitability profile and are more sensitive to experience trends. The premiums include a margin for providing protection and are invested to
earn a return over the expected amounts required to fulfill insurance liabilities.
The following provides an overview of the business types in Sun Life's business segments/business groups:
Business Segments
Business Types Asset Management Canada US Asia Corporate
Wealth & asset MFS Investment Management Individual Wealt h Individual wea lth &
management SLC Management Group Retirement Services asset management 1
Group - Health & Group Benefits2

Sun Life Health
Protection Dent al
Individual - Protection In divid ual Insurance In - force Ma nagement 3 Individual protection 4
Corporate expenses &

Regional Office Corporate Support
other
1 Includes wealth & asset management businesses in the Philippines. Hong Kong. China and India.
2 Includes Employee Benefits, as well as Hea lth and Risk Solutions (med ical stop- loss)
3 Effective Q2 2023, the UK payout annuities run - off business was moved from the Corporate business segment t o the U.S business segment upon the sale of SLF of Canada UK Lim it ed (Sun Life UK). For additiona l
information, refer to Note 3 of our Interim Consolidated Financial Statements fo r the period ended June 30, 2023 .
4 Includes ind ividual protection businesses in ASEAN, Hong Kong. Joint Ventures and High- Net- Worth. Group businesses in Asia have been included with Individual - Protection
36
NET INCOME RECONCILIATIONS - PRE-TAX and POST-TAX (1)
For the Year

Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 2022
Total Company Pre-Tax Adjustments
Underlying net income (post-tax) 1 930 920 895 892 949 808 720 3,369
Add: Non-underlying net income adjustments (pre-tax):
Market-related impacts (pre-tax) 2 107 (298) (99) 179 (400) 282 172 233
Assumption Changes and Management Actions (ACMA) (pre-tax) 3 41 11 (5) (26) (153) (30) (30) (239)
Management's ownership of MFS shares (pre-tax) 4 12 4 21 31 42 46 13 132
Acquisition, integration and restructuring (pre-tax) (1) 5 (124) (57) 15 (110) (334) (86) (23) (553)
Intangible asset amortization (pre-tax) 6 (44) (36) (46) (55) (31) (26) (19) (131)
Other (pre-tax) (1) 7 — — — (7) (62) 95 — 26
Total non-underlying net income adjustments (pre-tax) 8 (8) (376) (114) 12 (938) 281 113 (532)
Tax (expense) benefit related to non-underlying net income adjustments 9 (51) 116 25 261 100 (159) (168) 34
Reported net income - Common shareholders (post-tax) 10 871 660 806 1,165 111 930 665 2,871
Total Company Post-Tax Adjustments
Market-related impacts (post-tax) 12 23 (220) (64) 224 (361) 118 (2) (21)
ACMA (post-tax) 13 35 7 (5) 12 (131) (22) (27) (168)
Management's ownership of MFS shares (post-tax) 14 7 (1) 17 27 37 42 9 115
Acquisition, integration and restructuring (post-tax) (1) 15 (89) (20) (4) (86) (312) (73) (21) (492)
Intangible asset amortization (post-tax) 16 (35) (26) (33) (41) (23) (19) (14) (97)
Other (post-tax) (1) 17 — — — 137 (48) 76 — 165
Total non-underlying net income adjustments (post-tax) 18 (59) (260) (89) 273 (838) 122 (55) (498)
Reported net income - Common shareholders (post-tax) 19 871 660 806 1,165 111 930 665 2,871
Asset Management Pre-Tax Adjustments
Market-related impacts (pre-tax) 21 (3) (40) (7) (8) 3 (16) — (21)
Management's ownership of MFS shares (pre-tax) 22 12 4 21 31 42 46 13 132
(1)
Acquisition, integration and restructuring (pre-tax) 23 (84) (24) (36) (31) (131) (18) (16) (196)
Other (pre-tax) (1) 25 — — — 7 — — — 7
Total non-underlying net income adjustments (pre-tax) 26 (84) (69) (30) (7) (92) 5 (10) (104)
Tax (expense) benefit related to non-underlying net income adjustments 27 22 21 2 4 12 (2) — 14
Reported net income - Common shareholders (post-tax) 28 268 248 254 321 218 298 311 1,148
Asset Management Post-Tax Adjustments
Market-related impacts (post-tax) 30 (3) (31) (7) (8) 3 (17) — (22)
Management's ownership of MFS shares (post-tax) 31 7 (1) 17 27 37 42 9 115
Other (post-tax) (1) 34 — — — 7 — — — 7
Total non-underlying net income adjustments (post-tax) 35 (62) (48) (28) (3) (80) 3 (10) (90)
MFS Pre-Tax Adjustments
Add: Management's ownership of MFS shares (pre-tax) 38 12 4 21 31 42 46 13 132
Tax (expense) benefit related to non-underlying net income adjustments 39 (5) (5) (4) (4) (5) (4) (4) (17)
MFS Post-Tax Adjustments
Add: Management's ownership of MFS shares (post-tax) 42 7 (1) 17 27 37 42 9 115
SLC Management Pre-Tax Adjustments
Underlying net income (post-tax) 44 53 44 28 48 25 45 40 158
Market-related impacts (pre-tax) 45 (3) (40) (7) (8) 3 (16) — (21)
Acquisition, integration and restructuring (pre-tax) (1) 46 (84) (24) (36) (31) (131) (18) (16) (196)
Other (pre-tax) (1) 48 — — — 7 — — — 7
Total non-underlying net income adjustments (pre-tax) 49 (96) (73) (51) (38) (134) (41) (23) (236)
Tax (expense) benefit related to non-underlying net income adjustments 50 27 26 6 8 17 2 4 31
Reported net income (loss) - Common shareholders (post-tax) 51 (16) (3) (17) 18 (92) 6 21 (47)
SLC Management Post-Tax Adjustments
Market-related impacts (post-tax) 53 (3) (31) (7) (8) 3 (17) — (22)
Other (post-tax) (1) 56 — — — 7 — — — 7
Total non-underlying net income adjustments (post-tax) 57 (69) (47) (45) (30) (117) (39) (19) (205)
Reported net income (loss) - Common shareholders (post-tax) 58 (16) (3) (17) 18 (92) 6 21 (47)
(1)
Underlying net income is a non-IFRS financial measure. Refer to the Non-IFRS Financial Measures section on page 1 of this document and the Notes page ii, Adjustments - Acquisition, Integration and Restructuring and Adjustments -
other for additional details.
37
NET INCOME RECONCILIATIONS - PRE-TAX and POST-TAX CONTINUED (1)
For the Year

Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 2022
Canada Pre-Tax Adjustments
Market-related impacts (pre-tax) 2 94 (212) (92) 250 (206) 360 247 651
ACMA (pre-tax) 3 20 (8) (2) (185) (82) (30) (15) (312)
Acquisition, integration and restructuring (pre-tax) (1) 4 7 3 98 (1) (1) — — (2)
Other (pre-tax) (1) 6 — — — — (1) — — (1)
Total non-underlying net income adjustments (pre-tax) 7 117 (221) — 60 (294) 326 228 320
Tax (expense) benefit related to non-underlying net income adjustments 8 (90) 59 13 128 57 (149) (178) (142)
Canada Post-Tax Adjustments
Market-related impacts (post-tax) 11 10 (156) (47) 235 (172) 202 65 330
ACMA (post-tax) 12 15 (6) (2) (133) (61) (22) (12) (228)
Acquisition, integration and restructuring (post-tax) (1) 13 5 3 65 (1) (1) — — (2)
Other (post-tax) (1) 15 — — — 90 — — — 90
Total non-underlying net income adjustments (post-tax) 16 27 (162) 13 188 (237) 177 50 178
U.S. Pre-Tax Adjustments

Market-related impacts (pre-tax) 19 39 (17) (21) 21 (13) 2 (51) (41)
ACMA (pre-tax) 20 (30) 29 — 71 (6) — 1 66
Other (pre-tax) (1) 23 — — — (14) (61) 94 — 19
Tax (expense) benefit related to non-underlying net income adjustments 25 9 13 23 15 29 (6) 11 49
Reported net income - Common shareholders (post-tax) 26 132 175 168 202 125 149 56 532
U.S. Post-Tax Adjustments
Market-related impacts (post-tax) 28 36 (15) (17) 18 (10) (1) (42) (35)
Assumption changes that flow directly through income (post-tax) 29 (36) 23 — 57 (5) — 1 53
Other (post-tax) (1) 32 — — — (11) (48) 75 — 16
(1)
Underlying net income is a non-IFRS financial measure. Refer to the Non-IFRS Financial Measures section on page 1 of this document and the Notes page ii, Adjustments - Acquisition, Integration and Restructuring and Adjustments - other
for additional details.
38
For the Year
Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 2022
Asia Pre-Tax Adjustments
Market-related impacts (pre-tax) 2 (1) (30) 17 (110) (107) (97) (3) (317)
ACMA (pre-tax) 3 51 (10) (6) 71 (54) — (16) 1
(1)
Acquisition, integration and restructuring (pre-tax) 4 (5) (5) (4) — — (6) (1) (7)
Other (pre-tax) (1) 6 — — — 17 — — — 17
Total non-underlying net income adjustments (pre-tax) 7 43 (47) 5 (24) (163) (105) (22) (314)
Tax (expense) benefit related to non-underlying net income adjustments 8 2 19 (12) (19) 10 (6) — (15)
Reported net income - Common shareholders (post-tax) 9 211 122 134 92 — 7 111 210
Asia Post-Tax Adjustments
Market-related impacts (post-tax) 11 (4) (12) 5 (129) (97) (103) (3) (332)
ACMA (post-tax) 12 56 (10) (6) 71 (54) — (16) 1
Acquisition, integration and restructuring (post-tax) (1) 13 (5) (4) (4) — — (6) (1) (7)
Other (post-tax) (1) 15 — — — 17 — — — 17
Total non-underlying net income adjustments (post-tax) 16 45 (28) (7) (43) (153) (111) (22) (329)
Reported net income - Common shareholders (post-tax) 17 211 122 134 92 — 7 111 210
Corporate Pre-Tax Adjustments
Underlying net income (loss) (post-tax) 18 (89) (113) (81) (62) (22) (38) (47) (169)
Market-related impacts (pre-tax) 19 (22) 1 4 26 (77) 33 (21) (39)
ACMA (pre-tax) 20 — — 3 17 (11) — — 6
Acquisition, integration and restructuring (pre-tax) (1) 21 — 13 (4) — (170) — — (170)
Intangible asset amortization (pre-tax) 22 — — — — — — — —
Other (pre-tax) (1) 23 — — — (17) — 1 — (16)
Total non-underlying net income (loss) adjustments (pre-tax) 24 (22) 14 3 26 (258) 34 (21) (219)
Tax (expense) benefit related to non-underlying net income adjustments 25 6 4 (1) 133 (8) 4 (1) 128
Reported net income (loss) - Common shareholders (post-tax) 26 (105) (95) (79) 97 (288) — (69) (260)
Corporate Post-Tax Adjustments
Underlying net income (loss) (post-tax) 27 (89) (113) (81) (62) (22) (38) (47) (169)
Market-related impacts (post-tax) 28 (16) (6) 2 108 (85) 37 (22) 38
ACMA (post-tax) 29 — — 3 17 (11) — — 6
Acquisition, integration and restructuring (post-tax) (1) 30 — 24 (3) — (170) — — (170)
Intangible asset amortization (post-tax) 31 — — — — — — — —
Other (post-tax) (1) 32 — — — 34 — 1 — 35
Total non-underlying net income (loss) adjustments (post-tax) 33 (16) 18 2 159 (266) 38 (22) (91)
Reported net income (loss) - Common shareholders (post-tax) 34 (105) (95) (79) 97 (288) — (69) (260)
(1)
Underlying net income is a non-IFRS financial measure. Refer to the Non-IFRS Financial Measures section on page 1 of this document and the Notes page ii, Adjustments - Acquisition, Integration and Restructuring and Adjustments -
other for additional details. In Q4 2022, Other amounts reflect the unwinding of an internal reinsurance agreement.
39
For the Year

Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 2022
MFS Pre-Tax Adjustments
Add: Management's ownership of MFS shares (pre-tax) 2 9 3 15 24 32 34 10 100
Tax (expense) benefit related to underlying net income adjustments 3 (4) (3) (3) (3) (4) (3) (3) (13)
MFS Post-Tax Adjustments
Add: Management's ownership of MFS shares (post-tax) 6 5 — 12 21 28 31 7 87
U.S. Pre-Tax Adjustments
Market-related impacts (pre-tax) 9 33 (10) (21) 15 (10) (5) (43) (43)
ACMA (pre-tax) 10 (22) 23 — 53 (5) — 1 49
Other (pre-tax) (1) 13 — — — (10) (47) 74 — 17
Tax (expense) benefit related to non-underlying net income adjustments 15 7 9 21 9 25 1 13 48
U.S. Post-Tax Adjustments
Market-related impacts (post-tax) 18 30 (9) (13) 11 (8) (1) (32) (30)
ACMA (post-tax) 19 (26) 18 — 42 (3) — 1 40
Other (post-tax) (1) 22 — — — (8) (37) 58 — 13
For the Year

For the Quarter Ended Ended
Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 2022
U.S. Group Benefits Underlying Net Income to Reported Net Income
Market-related impacts (pre-tax) 26 (10) (6) 4 (1) (24) (10) (14) (49)
ACMA (pre-tax) 27 47 — — 8 (7) — — 1
Acquisition, integration and restructuring (pre-tax) (1) 28 (1) (1) — (1) — (1) (1) (3)
Total non-underlying net income adjustments (pre-tax) 30 31 (12) (1) 2 (35) (16) (20) (69)
Tax (expense) benefit related to non-underlying net income adjustments 31 (6) 2 1 (2) 8 4 5 15
(1)
Underlying net income is a non-IFRS financial measure. Refer to the Non-IFRS Financial Measures section on page 1 of this document and the Notes page ii, Adjustments - Acquisition, Integration and Restructuring and
Adjustments - other for additional details.
40
MFS RECONCILIATIONS
For the Year

(US$ millions, unless otherwise noted) For the Quarter Ended Ended
Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 2022
MFS Pre-Tax Net Operating Margin Reconciliation
Revenue
IFRS fee income 1 815 804 787 775 801 838 909 3,323
Less: Adjustments
Commissions 2 100 99 99 99 104 110 120 433
Other (1) 3 (13) (14) (13) (13) (13) (16) (11) (53)
Total adjustments 4 87 85 86 86 91 94 109 380
Adjusted revenue 5 728 719 701 689 710 744 800 2,943
Expenses
IFRS expenses 6 553 577 544 514 500 542 606 2,162
Less: Adjustments
Management's ownership of MFS shares (before NCI) (2) 7 6 12 (2) (10) (17) (21) 3 (45)
Compensation-related equity plan adjustments 8 5 1 — (1) — (4) 12 7
Commissions 9 100 99 99 99 104 110 120 433
Other (1) 10 (11) (14) (16) (13) (13) (16) (11) (53)
Total adjustments 11 100 98 81 75 74 69 124 342
IFRS net investment (income) loss 12 (20) (24) (20) (22) (7) 5 6 (18)
Adjusted expenses 13 433 455 443 417 419 478 488 1,802
Pre-tax Net Operating Margin 14 41% 37% 37% 40% 41% 36% 39% 39%
MFS Pre-Tax Gross Operating Margin Reconciliation

IFRS fee income 15 815 804 787 775 801 838 909 3,323
Expenses
IFRS expenses 16 553 577 544 514 500 542 606 2,162
Less: Adjustments
Management's ownership of MFS shares (before NCI) (2) 17 6 12 (2) (10) (17) (21) 3 (45)
Compensation-related equity plan adjustments 18 5 1 — (1) — (4) 12 7
Other (3) 19 2 — (3) — — — — —
Total adjustments 20 13 13 (5) (11) (17) (25) 15 (38)
Subtotal of above 21 540 564 549 525 517 567 591 2,200
IFRS net investment (income) loss 22 (20) (24) (20) (22) (7) 5 6 (18)
Adjusted expenses 23 520 540 529 503 510 572 597 2,182
Pre-tax Gross Operating Margin 24 36% 33% 33% 35% 36% 32% 34% 34%
(1)
Other includes accounting basis differences, such as advisory expenses and product allowances.
(2)
Before the attribution to non-controlling interest. For more information on this adjustment made to arrive at a non-IFRS financial measure, refer to the Non-IFRS Financial Measures page 1 of this document and
Section N. Non-IFRS Financial Measures, 2. Underlying Net Income and Underlying EPS of the Company's Q3 2023 MD&A.
(3)
In Q1 2023, Other includes an impairment charge on goodwill associated with a closed end investment management agreement.
41
ASSET MANAGEMENT - UNDERLYING TO REPORTED NET INCOME RECONCILIATION
For the Year

(C$ millions, unless otherwise noted) For the Quarter Ended Ended
Asset Management Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 2022
Revenue
Net investment result (1)(2) 1 41 54 29 48 11 12 4 75
Fee income (2) 2 1,335 1,312 1,289 1,255 1,264 1,308 1,391 5,218
Total revenue 3 1,376 1,366 1,318 1,303 1,275 1,320 1,395 5,293
Expenses (2)(3) 4 939 963 941 874 868 932 968 3,642
Income tax expense (benefit) 6 92 91 86 92 96 81 93 362
Non-controlling interest (NCI) (2) 7 15 16 9 13 13 12 13 51
Market-related impacts (1) 9 (3) (31) (7) (8) 3 (17) — (22)
Other adjustments:
Management's ownership of MFS shares (3) 10 7 (1) 17 27 37 42 9 115
Other (4) 13 — — — 7 — — — 7
MFS (3)
Revenue
Net investment result 15 25 30 24 28 8 (8) (9) 19
Fee income 16 1,036 1,020 1,006 989 1,021 1,066 1,165 4,241
Total revenue 17 1,061 1,050 1,030 1,017 1,029 1,058 1,156 4,260
Expenses 18 695 718 695 664 672 734 790 2,860
Other adjustments:
Management's ownership of MFS shares (3) 22 7 (1) 17 27 37 42 9 115
SLC Management (2)

Revenue
Net investment result (1) 24 16 24 5 20 3 20 13 56
Fee income 25 299 292 283 266 243 242 226 977
Total revenue 26 315 316 288 286 246 262 239 1,033
Expenses 27 244 245 246 210 196 198 178 782
Non-controlling interest (NCI) 30 15 16 9 13 13 12 13 51
Market-related impacts (1) 32 (3) (31) (7) (8) 3 (17) — (22)
Other adjustments:
Other (4) 35 — — — 7 — — — 7
(1)
Market-related impacts are reported under Investment income or loss under IFRS, and are excluded on an underlying basis. For more information about these adjustment made to arrive at a non-IFRS financial
measure, refer to the Non-IFRS Financial Measures page 1 of this document and Section N. Non-IFRS Financial Measures of the Company's Q3 2023 MD&A.
(2)
For a reconciliation of SLC Management's Supplementary Income Statement, which is on an underlying basis, compared to an IFRS basis, refer to the SLC Management Reported Net Income Reconciliation section
in the appendix of this document.
(3)
MFS' revenues and expenses have been adjusted to remove NCI, and Expenses on an underlying basis exclude Management's ownership of MFS shares.
(4)
42
SLC MANAGEMENT REPORTED NET INCOME RECONCILIATION TO THE SUPPLEMENTARY INCOME STATEMENT
For the Year

Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 2022
STATEMENTS OF OPERATIONS
Revenues
Net investment income (loss) (1) 1 26 (7) 8 6 (11) 5 12 12
Fee Income
Management fees 2 252 248 244 234 218 209 201 862
Distribution fees 3 22 23 15 — — — — —
Property management, transaction, advisory and other fees 4 25 21 24 32 25 33 25 115
Interest and other - fee income 5 55 53 59 49 54 49 50 202
Fee income of consolidated funds (2) 6 7 — (2) 169 1 — — 170
Other - fee income (3) 7 32 30 29 17 12 16 18 63
Total fee income 8 393 375 369 501 310 307 294 1,412
Total revenues 9 419 368 377 507 299 312 306 1,424
Expenses
Compensation - fee-related 10 163 164 163 141 130 138 128 537
Other operating expenses 11 68 66 52 52 55 52 44 203
Interest and other 12 75 72 91 70 69 57 56 252
Acquisition, integration and restructuring (1)(4) 13 84 25 45 24 131 18 17 190
Expenses of consolidated funds (2) 14 4 — (67) 150 1 — — 151
Placement fees - other 15 (7) (4) (1) (4) (4) — — (8)
Other - expenses (1)(3)(4) 14 63 54 53 21 6 27 27 81
Total expenses 15 450 377 336 454 388 292 272 1,406
Income (loss) before income taxes 16 (31) (9) 41 53 (89) 20 34 18
Less: Income tax expense (benefit) 17 (25) (15) (1) 6 (6) 6 4 10
Non-controlling interest 18 7 9 (6) 10 9 8 9 36
Non-controlling interest of consolidated funds (2) 19 3 — 65 19 — — — 19
Less: Total non-controlling interest 20 10 9 59 29 9 8 9 55
(1)
Includes Investment income (loss) and performance fees related to our seed investments and Market-related impacts. Gains or losses of certain non-seed hedges are reported under Investment income or loss under IFRS,
whereas we present these under Acquisition, integration and restructuring in SLC Management's Supplementary Income Statement. For more information about this adjustment made to arrive at a non-IFRS financial measure,
refer to the Non-IFRS Financial Measures page 1 of this document and Section N. Non-IFRS Financial Measures of the Company's Q3 2023 MD&A.
(2)
Crescent carried interest that Sun Life does not participate in economically is presented on a net basis to reflect how management views the business, compared to a gross basis in the Consolidated Financial Statements.
On a net basis, the non-controlling interest portion of the carried interest is netted against both Fee income of consolidated funds and Expenses of consolidated funds. Refer to the Basis of Presentation section on page ii of
this document for more information.
(3)
We have reclassified the income and related expenses for certain property management agreements to Compensation – fee-related to provide more accurate metrics on our fee-related business.
(4)
Non-underlying net income adjustments are shown pre-tax and before non-controlling interests (NCI) in this reconciliation, compared to post-tax and post-NCI in SLC Management's Supplementary Income Statement. Other
- expenses includes Intangible asset amortization and Other non-underlying adjustments.
43
DILUTED EARNINGS PER SHARE RECONCILIATION
At and For the
(C$ millions, unless otherwise noted) At and For the Quarter Ended Year Ended
Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 2022

Weighted Average Shares
Weighted average shares - basic 1 586 587 587 586 586 586 586 586
Diluted impact of stock options 2 — — — — — — 1 —
Weighted average shares - diluted underlying 3 586 587 587 586 586 586 587 586
Diluted impact of convertible securities (SLEECS) (1) 4 3 3 3 4 3 3 3 3
Weighted average shares - diluted 5 589 590 590 590 589 589 590 589
Diluted Earnings Per Share (2)
Underlying net income (loss) 6 930 920 895 892 949 808 720 3,369
Add Adjustments:
Market-related impacts 7 23 (220) (64) 224 (361) 118 (2) (21)
ACMA 8 35 7 (5) 12 (131) (22) (27) (168)
Other adjustments:
Impact of management's ownership of MFS shares 9 7 (1) 17 27 37 42 9 115
Impact of acquisition, integration and restructuring (3) 10 (89) (20) (4) (86) (312) (73) (21) (492)
Impact of intangible asset amortization 11 (35) (26) (33) (41) (23) (19) (14) (97)
Impact of other (3) 12 — — — 137 (48) 76 — 165
Reported net income (loss) - Common shareholders 13 871 660 806 1,165 111 930 665 2,871
Add: Increase in income due to convertible securities (4) 14 3 2 3 2 3 2 3 10
Reported net income (loss) - Common shareholders on a diluted basis 15 874 662 809 1,167 114 932 668 2,881
Underlying earnings per share - diluted 16 1.59 1.57 1.52 1.52 1.62 1.38 1.23 5.75
Add Adjustments:
Market-related impacts 17 0.04 (0.38) (0.10) 0.38 (0.62) 0.19 — (0.04)
ACMA 18 0.06 0.01 (0.01) 0.02 (0.22) (0.04) (0.05) (0.29)
Other adjustments:
Impact of management's ownership of MFS shares 19 0.01 — 0.03 0.05 0.06 0.07 0.01 0.20
Impact of acquisition, integration and restructuring 20 (0.16) (0.03) (0.01) (0.15) (0.53) (0.12) (0.03) (0.86)
Impact of intangible asset amortization 21 (0.06) (0.05) (0.06) (0.07) (0.04) (0.03) (0.03) (0.17)
Impact of other 22 — — — 0.23 (0.08) 0.13 — 0.28
Impact of convertible securities on diluted earnings per share 23 — — — — — — — 0.02
Reported earnings per share - diluted 24 1.48 1.12 1.37 1.98 0.19 1.58 1.13 4.89
(1)
Represents the number of common shares treated as outstanding in the calculation of diluted EPS, based on the assumed conversion of the convertible securities. No adjustment is reflected for periods in which the
convertible securities conversion would have caused an anti-dilutive result.
(2)
The convertible securities contain features which enable the holders to convert these securities into preferred shares of Sun Life Assurance Company of Canada. Following this conversion, the Company has the option to
settle the preferred shares with cash prior to the conversion to common shares of Sun Life. Under IFRS, diluted EPS are calculated by adjusting income and the weighted average number of shares for the effects of all dilutive
potential common shares under the assumption that convertible instruments are converted and that outstanding options are exercised.
(3)
Refer to the Notes page ii, Other Adjustments - Acquisition, Integration and Restructuring and Adjustments - other for additional details.
(4)
Represents after-tax interest expense on convertible securities converted into common shares that is added to net income as the convertible securities are assumed to be converted at the beginning of each reporting period
in the calculation of diluted EPS.
44
DOE RECONCILIATION - TOTAL COMPANY
This page details the reconciling items (rows 12 to 21) between the Underlying Drivers of Earnings (rows 1 to 11) to the Adjusted Common Shareholders' View (also referred to as the Reported Drivers of Earnings, rows
23 to 34). This page also further details the reconciling items and adjustments (rows 3 5 to 45) between the Reported Drivers of Earnings (rows 2 3 to 34) and the Reported View - Income Statement (also referred to as
the Statements of Operations in our Consolidated Financial Statements, rows 4 6 to 55).
For the Year

Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 2022
(1)
Underlying View
Net investment result 2 416 430 437 316 357 322 242 1,237
Other fee income 4 39 47 69 52 90 71 83 296
Expenses - other 5 (486) (483) (444) (407) (365) (309) (332) (1,413)
Income before taxes - Underlying 6 1,146 1,191 1,115 1,111 1,174 1,008 834 4,127
Income tax (expense) benefit 7 (182) (235) (191) (187) (193) (174) (83) (637)
Total net income 8 964 956 924 924 981 834 751 3,490
Net income (loss) allocated to NCI 9 (15) (16) (9) (13) (13) (12) (13) (51)
Dividends on preferred shares and distributions on other equity instruments 10 (19) (20) (20) (19) (19) (14) (18) (70)
Non-Underlying Adjustments (1)
Net insurance service result 12 — (29) — (14) (61) — — (75)
Net investment result 13 108 (283) (92) 188 (402) 398 172 356
ACMA (2) 14 41 11 (5) (26) (153) (30) (30) (239)
Asset Management 15 (92) (76) (45) (10) (96) 1 (14) (119)
Other fee income 16 5 4 — — — — — —
Expenses - other 17 (78) (10) 13 (129) (230) (92) (19) (470)
Income before taxes 18 (16) (383) (129) 9 (942) 277 109 (547)
Income tax (expense) benefit 19 (51) 116 25 261 100 (159) (168) 34
Total net income 20 (67) (267) (104) 270 (842) 118 (59) (513)
Net income (loss) allocated to NCI 21 8 7 15 3 4 4 4 15
Net non-underlying adjustments 22 (59) (260) (89) 273 (838) 122 (55) (498)
(1)
Adjusted Common Shareholders' View
ACMA (2) 25 41 11 (5) (26) (153) (30) (30) (239)
Other fee income 27 44 51 69 52 90 71 83 296
Expenses - other 28 (564) (493) (431) (536) (595) (401) (351) (1,883)
Income before taxes 29 1,130 808 986 1,120 232 1,285 943 3,580
Income tax (expense) benefit 30 (233) (119) (166) 74 (93) (333) (251) (603)
Total net income 31 897 689 820 1,194 139 952 692 2,977
Net income (loss) allocated to NCI 32 (7) (9) 6 (10) (9) (8) (9) (36)
Adjusted reported net income - Common shareholders 34 871 660 806 1,165 111 930 665 2,871
(1)
Par and Net Adjustments
Net insurance service result 35 (28) 10 12 44 (33) 44 (43) 12
Net investment result 36 179 107 76 (21) (94) (69) 14 (170)
ACMA (2) 37 (41) (11) 5 26 153 30 30 239
Fee income:
Asset Management 38 (345) (327) (332) (419) (311) (389) (413) (1,532)
Other fee income 39 1,886 1,885 1,832 1,969 1,718 1,708 1,756 7,151
Expenses - other 40 (1,600) (1,605) (1,484) (1,586) (1,435) (1,286) (1,347) (5,654)
Income before taxes 41 51 59 109 13 (2) 38 (3) 46
Income tax (expense) benefit 42 (11) (8) (11) (9) 16 18 32 57
Total net income 43 40 51 98 4 14 56 29 103
Net income (loss) allocated to the participating account and NCI 44 (40) (51) (98) (4) (14) (56) (29) (103)
Adjusted common shareholders' reported net income - Par and Net Adjustments 45 — — — — — — — —
Reported View - Income Statement
Fee income 48 1,930 1,936 1,901 2,021 1,808 1,779 1,839 7,447
Other expenses 49 (2,164) (2,098) (1,915) (2,122) (2,030) (1,687) (1,698) (7,537)
Income before taxes 50 1,181 867 1,095 1,133 230 1,323 940 3,626
Total net income 52 937 740 918 1,198 153 1,008 721 3,080
Net income (loss) allocated to the participating account and NCI 53 (47) (60) (92) (13) (24) (64) (38) (139)
(1)
The Drivers of Earnings analysiscontains non-IFRS financial measures.Refer to the Basis of Presentation section on page ii of this document for more information about certain amounts that are presented on a net basis to reflect how management views the
business, compared to a gross basis in the Consolidated Financial Statements
. Refer to the Non-IFRS Financial Measures section on page 1 and the Additional Non-IFRS Financial Measures Glossary in the appendixof this document, or Section N. Non-IFRS Financial
Measures of the Company'sQ3 2023 MD&A for more information.
(2)
Effective Q3 2023, the impact of ACMA is shown in one-line. Previously, the impact of ACMA was embedded within two lines: Net insurance service result and Net investment result
. We have updated prior periodamounts for this change in presentation.
45
DOE RECONCILIATION - CANADA
This page details the reconciling items (rows 10 to 16) between the Underlying Drivers of Earnings (rows 1 to 9) to the Adjusted Common Shareholders' View (also referred to as the Reported Drivers of
Earnings, rows 18 to 27). This page also further details the reconciling items and adjustments (rows 28 to 37) between the Reported Drivers of Earnings (rows 17 to 25) and the Reported View - Income
Statement (also referred to as the Statements of Operations in our Consolidated Financial Statements, rows 38 to 46).
For the Year

Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 2022
Underlying View (1)
Other fee income 3 36 39 39 21 53 50 55 179
Expenses - other 4 (149) (133) (121) (127) (105) (94) (117) (443)
Income before taxes 5 430 489 400 337 360 378 232 1,307
Total net income 7 338 372 316 265 293 299 206 1,063
Net income (loss) allocated to NCI 8 — — — — — — — —
Net insurance service result 10 — — — — — — — —
Net investment result 11 94 (212) (92) 251 (206) 360 247 652
ACMA (2) 12 20 (8) (2) (185) (82) (30) (15) (312)
Other fee income 13 5 4 — — — — — —
Expenses - other 14 (2) (5) 94 (6) (6) (4) (4) (20)
Income before taxes 15 117 (221) — 60 (294) 326 228 320
Income tax (expense) benefit 16 (90) 59 13 128 57 (149) (178) (142)
Net non-underlying adjustments 17 27 (162) 13 188 (237) 177 50 178
Adjusted Common Shareholders' View (1)
ACMA (2) 20 20 (8) (2) (185) (82) (30) (15) (312)
Other fee income 21 41 43 39 21 53 50 55 179
Expenses - other 22 (151) (138) (27) (133) (111) (98) (121) (463)
Total net income 25 365 210 329 453 56 476 256 1,241
Adjusted reported net income - Common shareholders 27 365 210 329 453 56 476 256 1,241
Par and Net Adjustments (1)
Net insurance service result 28 (35) 2 25 17 (22) 23 (37) (19)
Net investment result 29 86 7 2 (203) (38) (40) (3) (284)
ACMA (2) 30 (20) 8 2 185 82 30 15 312
Other fee income 31 308 340 327 328 290 298 300 1,216
Expenses - other 32 (326) (346) (335) (330) (303) (306) (311) (1,250)
Income before taxes 33 13 11 21 (3) 9 5 (36) (25)
Income tax (expense) benefit 34 (1) — (5) 5 7 9 30 51
Total net income 35 12 11 16 2 16 14 (6) 26
Net income (loss) allocated to the participating account 36 (12) (11) (16) (2) (16) (14) 6 (26)
Fee income 40 349 383 366 349 343 348 355 1,395
Other expenses 41 (477) (484) (362) (463) (414) (404) (432) (1,713)
Total net income 44 377 221 345 455 72 490 250 1,267
Net income (loss) allocated to the participating account 45 (12) (11) (16) (2) (16) (14) 6 (26)
(1)
The Drivers of Earnings analysis contains non-IFRS financial measures. Refer to the Basis of Presentation section on page ii of this document for more information about certain amounts that are presented on a net basis to reflect how
management views the business, compared to a gross basis in the Consolidated Financial Statements. Refer to the Non-IFRS Financial Measures section on page 1 and the Additional Non-IFRS Financial Measures Glossary in the
(2)
Effective Q3 2023, the impact of ACMA is shown in one-line. Previously, the impact of ACMA was embedded within two lines: Net insurance service result and Net investment result. We have updated prior period amounts for this
change in presentation.
46
DOE RECONCILIATION - U.S.
For the Year

Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 2022
Underlying View (1)
Other fee income 3 4 4 11 24 13 1 — 38
Expenses - other 4 (114) (120) (106) (116) (103) (60) (53) (332)
Income before taxes 5 227 274 298 290 287 173 130 880
Total net income 7 185 215 237 230 227 134 107 698
Net insurance service result 10 — — — (14) (61) — — (75)
Net investment result 11 39 (17) (21) 21 (13) 101 (51) 58
ACMA (2) 12 (30) 29 — 71 (6) — 1 66
Expenses - other 13 (71) (65) (71) (121) (51) (80) (12) (264)
Income before taxes 14 (62) (53) (92) (43) (131) 21 (62) (215)
Income tax (expense) benefit 15 9 13 23 15 29 (6) 11 49
Net non-underlying adjustments 16 (53) (40) (69) (28) (102) 15 (51) (166)
ACMA (2) 19 (30) 29 — 71 (6) — 1 66
Other fee income 20 4 4 11 24 13 1 — 38
Expenses - other 21 (185) (185) (177) (237) (154) (140) (65) (596)
Total net income 24 132 175 168 202 125 149 56 532
Adjusted reported net income - Common shareholders 26 132 175 168 202 125 149 56 532
Net insurance service result 27 68 6 8 18 (11) 13 7 27
Net investment result 28 (91) 30 1 72 3 (1) 3 77
ACMA (2) 29 30 (29) — (71) 6 — (1) (66)
Other fee income 30 107 104 100 101 90 51 27 269
Expenses - other 31 (107) (104) (100) (101) (93) (50) (28) (272)
Income before taxes 32 7 7 9 19 (5) 13 8 35
Income tax (expense) benefit 33 (1) (1) (4) (9) 1 2 (2) (8)
Total net income 34 6 6 5 10 (4) 15 6 27
Net income (loss) allocated to the participating account 35 (6) (6) (5) (10) 4 (15) (6) (27)
Fee income 39 111 108 111 125 103 52 27 307
Other expenses 40 (292) (289) (277) (338) (247) (190) (93) (868)
Total net income 43 138 181 173 212 121 164 62 559
Net income (loss) allocated to the participating account 44 (6) (6) (5) (10) 4 (15) (6) (27)
(1)
(2)
Effective Q3 2023, the impact of ACMA is shown in one-line. Previously, the impact of ACMA was embedded within two lines: Net insurance service result and Net investment result. We have updated prior period amounts for this change
in presentation.
47
DOE RECONCILIATION - ASIA
For the Year

Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 2022
Underlying View (1)
Other fee income 3 (1) 4 11 11 4 (1) 41 55
Expenses - other 4 (76) (57) (55) (49) (64) (51) (46) (210)
Income tax (expense) benefit 6 (1) (8) (12) 13 5 (11) (11) (4)
Total net income 7 166 150 141 135 153 118 133 539
Net insurance service result 10 — — — — — — — —
Net investment result 11 (3) (32) 17 (110) (106) (97) (3) (316)
ACMA (2) 12 51 (10) (6) 71 (54) — (16) 1
Other fee income 13 — — — 17 — — — 17
Expenses - other 14 (5) (5) (6) (2) (3) (8) (3) (16)
Income before taxes 15 43 (47) 5 (24) (163) (105) (22) (314)
Income tax (expense) benefit 16 2 19 (12) (19) 10 (6) — (15)
Net non-underlying adjustments 17 45 (28) (7) (43) (153) (111) (22) (329)
Net investment result 19 102 60 115 (40) (3) (22) 98 33
ACMA (2) 20 51 (10) (6) 71 (54) — (16) 1
Other fee income 21 (1) 4 11 28 4 (1) 41 72
Expenses - other 22 (81) (62) (61) (51) (67) (59) (49) (226)
Income tax (expense) benefit 24 1 11 (24) (6) 15 (17) (11) (19)
Total net income 25 211 122 134 92 — 7 111 210
Adjusted reported net income - Common shareholders 27 211 122 134 92 — 7 111 210
Net insurance service result 28 (61) 2 (19) 17 3 1 (15) 6
ACMA (2) 30 (51) 10 6 (71) 54 — 16 (1)
Other fee income 31 77 70 66 71 67 64 66 268
Expenses - other 32 (77) (70) (64) (72) (94) (62) (62) (290)
Income before taxes 33 28 41 14 (25) 3 25 32 35
Income tax (expense) benefit 34 (9) (7) (2) (3) — 1 (3) (5)
Total net income 35 19 34 12 (28) 3 26 29 30
Net income (loss) allocated to the participating account 36 (19) (34) (12) 28 (3) (26) (29) (30)
Net investment result 39 242 89 140 (10) (30) — 125 85
Fee income 40 76 74 77 99 71 63 107 340
Other expenses 41 (158) (132) (125) (123) (161) (121) (111) (516)
Income tax (expense) benefit 43 (8) 4 (26) (9) 15 (16) (14) (24)
Total net income 44 230 156 146 64 3 33 140 240
Net income (loss) allocated to the participating account 45 (19) (34) (12) 28 (3) (26) (29) (30)
(1)
(2)
Effective Q3 2023, the impact of ACMA is shown in one-line. Previously, the impact of ACMA was embedded within two lines: Net insurance service result and Net investment result. We have updated prior period amounts for this
change in presentation.
48
DOE RECONCILIATION - CORPORATE
For the Year

Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 2022
Underlying View (1)
Net insurance service result 1 (2) 5 13 18 40 23 35 116
Net investment result 2 34 35 28 34 5 — (5) 34
Other fee income 3 — — 8 (4) 20 21 (13) 24
Expenses - other 4 (147) (173) (162) (115) (93) (104) (116) (428)
Income (loss) before taxes 5 (115) (133) (113) (67) (28) (60) (99) (254)
Income tax (expense) benefit 6 45 40 52 24 25 36 70 155
Total net income (loss) 7 (70) (93) (61) (43) (3) (24) (29) (99)
Net insurance service result 10 — (29) — — — — — —
Net investment result 11 (22) (22) 4 26 (77) 34 (21) (38)
Other fee income 12 — — — (17) — — — (17)
Expenses - other 13 — 65 (4) — (170) — — (170)
Income (loss) before taxes 14 (22) 14 3 26 (258) 34 (21) (219)
Income tax (expense) benefit 15 6 4 (1) 133 (8) 4 (1) 128
Net non-underlying adjustments 16 (16) 18 2 159 (266) 38 (22) (91)
Net investment result 18 12 13 32 60 (72) 34 (26) (4)
Other fee income 19 — — 8 (21) 20 21 (13) 7
Expenses - other 20 (147) (108) (166) (115) (263) (104) (116) (598)
Total net income 23 (86) (75) (59) 116 (269) 14 (51) (190)
Adjusted reported net income (loss) - Common shareholders 25 (105) (95) (79) 97 (288) — (69) (260)
Net insurance service result 26 — — (2) (8) (3) 7 2 (2)
Net investment result 27 (10) 17 12 42 (31) (47) (16) (52)
Other fee income 28 (92) (83) (94) (90) (83) (82) (83) (338)
Expenses - other 29 102 66 88 76 98 115 91 380
Income (loss) before taxes 30 — — 1 3 (8) (7) (6) (18)
Income tax (expense) benefit 31 — — (1) (2) 7 7 6 18
Total net income (loss) 32 — — — 1 (1) — — —
Dividends on preferred shares and distributions on other equity instruments 33 — — — (1) 1 — — —
Net investment result 36 2 30 44 102 (103) (13) (42) (56)
Fee income 37 (92) (83) (86) (111) (63) (61) (96) (331)
Other expenses 38 (45) (42) (78) (39) (165) 11 (25) (218)
Total net income (loss) 41 (86) (75) (59) 117 (270) 14 (51) (190)
(1)
management views the business, compared to a gross basis in the Consolidated Financial Statements. Refer to the Non-IFRS Financial Measures section on page 1 and the Additional Non-IFRS Financial Measures Glossary in the appendix
of this document, or Section N. Non-IFRS Financial Measures of the Company's Q3 2023 MD&A for more information.
49
Additional Non-IFRS Financial Measures Glossary
In addition to the non-IFRS financial measures described on page 1 of this document (Underlying net income, Underlying Diluted EPS, the Drivers of Earnings analysis,
and the CSM Movement Analysis), Sun Life also uses the following non-IFRS financial measures:
(1) After-tax profit margin for U.S. Group Benefits. This ratio expresses U.S. Group Benefits underlying net income as a percentage of net premiums. It assists in
explaining our results from period to period and measures profitability. This ratio is calculated by dividing underlying net income by net premiums for the trailing four
quarters. There is no directly comparable IFRS measure. Refer to U.S. Group Benefits Reported Net Income to Underlying Net Income section in the appendix of this
document.
(2) Assets under administration (AUA). AUA represents Client assets for which Sun Life provides administrative services. In Canada, AUA includes mutual fund dealers'
assets in Individual Wealth and administrative services assets in Group Retirement Services. In Asia, AUA includes administrative services assets in China and Hong
Kong. In SLC Management, AUA includes assets distributed by SLC Management's affiliate, Advisors Asset Management Inc. There is no standardized financial measure
under IFRS.
(3) Assets under management (AUM). AUM is a non-IFRS financial measure that indicates the size of the Company's assets across asset management, wealth and
insurance. There is no standardized financial measure under IFRS. In addition to the most directly comparable IFRS measures, which are the balance of General funds
and Segregated funds on our Statements of Financial Position, AUM also includes Third-party AUM and Consolidation adjustments.
(4) Assets under management and administration (AUMA) consists of both AUA and AUM, as defined above, and there is no standardized financial measure under IFRS.
(5) AUM not yet earning fees. This measure represents the committed uninvested capital portion of total AUM not currently earning management fees. The amount
depends on the specific terms and conditions of each fund. There is no directly comparable IFRS measure.
(6) Capital raising. This measure consists of increases in SLC Management's commitments from fund raising activities for all real estate, infrastructure and alternative
credit Clients excluding leverage. Investment-grade fixed income capital raising consists of sales made to new Clients. There is no directly comparable IFRS measure.
(7) Constant currency. We remove the impacts of foreign exchange translation from certain IFRS and non-IFRS financial measures to assist in comparing our results from
period to period. The impacts of foreign exchange translation are approximated by using the foreign exchange rates in effect during the comparative period, using the
average or period end foreign exchange rates, as appropriate. Constant currency reconciliation for Reported net income and Reported earnings per share - diluted are as
follows:
Q3 2023 Reported net income at Q3 2022 constant dollar $ 854 million Q3 2023 Reported earnings per share at Q3 2022 constant dollar $ 1.46
Currency impact relative to Q3 2022 exchange rates $ 17 million Currency impact per share relative to Q3 2022 exchange rates $ 0.02
Q3 2023 Reported net income - actual $ 871 million Q3 2023 Reported earnings per share - actual $ 1.48
(8) Deployment. This measure represents the amount of capital that has been invested in the period, including leverage where applicable. Deployment also includes
capital committed in infrastructure deals to be invested in specific assets. There is no directly comparable IFRS measure.
(9) Dividend yield. This measure is calculated as the annualized dividend per share in the quarter over the daily average share price in the quarter. The annual dividend
calculation represents the dividend paid in the year over the daily average share price for the year.
(10) Fee earning AUM (FE AUM). FE AUM consists of assets managed by SLC Management, which are beneficially owned by Clients, on which we earn management
fees for providing investment management, property management or advisory-related services. There is no directly comparable IFRS measure.
(11) Financial Leverage ratio. This ratio is an indicator of the Company's balance sheet strength measured by its proportion of capital qualifying debt in accordance with
OSFI guidelines. This is calculated as the ratio of total debt plus preferred shares and other equity instruments to total capital including the contractual service margin net
of taxes, where debt consists of all capital-qualifying debt securities. Capital-qualifying debt securities consist of subordinated debt and innovative capital instruments. The
CSM is included net of taxes because debts are repaid and serviced from available after-tax funds.
(12) Impacts of foreign exchange translation. To assist in comparing our results from period-to-period, the favourable or unfavourable impacts of foreign exchange
translation are approximated using the foreign exchange rates, in effect during the comparative period, for several IFRS and Non-IFRS financial measures using the
average or period end foreign exchange rates, as appropriate. Items impacting a reporting period, such as Total revenue, Expenses, and Reported net income (loss) in our
Consolidated Statements of Operations, as well as Underlying net income (loss), and Sales, are translated into Canadian dollars using average exchange rates for the
appropriate daily, monthly, or quarterly period. For Assets and Liabilities in our Consolidated Statements of Financial Position, as well as the AUM, and certain components
of the Drivers of Earnings disclosure, period-end rates are used for currency translation purposes.
(13) Net Premiums. This measure provides a better understanding of the growth in the group businesses in Canada and the U.S. Net premiums include gross insurance
and annuity premiums adjusted for unearned premiums, experience-rated refund premiums, premium taxes and associated ceded amounts.
(14) Pre-tax fee-related earnings margin. This ratio is a measure of SLC Management's profitability in relation to funds that earn recurring fee revenues, while excluding
investment income and performance fees. The ratio is calculated by dividing fee-related earnings by fee-related revenues and is based on the last twelve months. There is
no directly comparable IFRS measure.
(15) Pre-tax net operating margin. This ratio is a measure of profitability and there is no directly comparable IFRS measure. For MFS, this ratio is calculated by excluding
management's ownership of MFS shares, compensation-related equity plan adjustments and certain commission expenses that are offsetting. These commission
expenses are excluded in order to neutralize the impact these items have on the pre-tax net operating margin and have no impact on the profitability of MFS. For SLC
Management, the ratio is calculated by dividing the total operating income by fee-related revenue plus investment income (loss) and performance fees, and is based on
the last twelve months.
(16) Pre-tax gross operating margin for MFS. This ratio is a measure of profitability, which excludes management's ownership of MFS shares and compensation-related
equity plan adjustments. There is no directly comparable IFRS measure.
50
Additional Non-IFRS Financial Measures Glossary Continued
(20) Tangible book value per share. This measure is used to assess the value of our businesses, which is calculated as tangible common shareholders’ equity divided by
the number of common shares outstanding at the end of the period. Tangible common shareholders’ equity excludes goodwill and acquired intangible assets and other
adjustments, net of related deferred taxes for the period. Other adjustments include imputed goodwill & intangible assets of $318 million from Asia joint ventures and $(1.3)
billion related to the future purchase of the remaining ownership interest in SLC Management affiliates; as well as $490 million prepayment on Indonesia's bancassurance
that would be capitalized as an intangible asset once the agreement becomes effective in 2025.
(21) Third-party AUM. Third-party AUM is composed of retail, institutional and other third-party assets, which includes general fund and segregated fund assets managed
by our joint ventures. In Asset Management, third-party AUM includes Client assets for retail and institutional Clients, as well as capital raising, such as uncalled
commitments and fund leverage in SLC Management. There is no directly comparable IFRS measure. In Canada, third-party AUM includes Client assets in retail mutual
fund products of SLGI Asset Management Inc. In the U.S., third-party AUM includes third-party investors in a pool of mortgage loans. In Asia, third-party AUM includes
Client assets in Hong Kong managed fund products, International wealth products, the Philippines mutual and managed fund products, Aditya Birla Sun Life Asset
Management Company Limited equity and fixed income mutual fund products, Sun Life Everbright Asset Management products and our joint ventures’ general fund and
segregated fund assets based on our proportionate equity interest.
(22) Total weighted premium income (TWPI). This measure consists of 100% renewal premiums, 100% of first year premiums, and 10% of single premiums. In contrast to
sales, which only includes premiums from new business, TWPI includes renewal premiums, reflecting the strength of the in-force block and providing a better
understanding of both new and existing business. There is no directly comparable IFRS measure.
(23) Underlying dividend payout ratio. This is the ratio of the dividends paid per share to diluted underlying EPS for the period. This ratio is utilized during the medium-term
capital budgeting process to inform our planned capital initiatives. We target an underlying dividend payout ratio of between 40% to 50% based on underlying EPS. For
more information, see Section I - Capital and Liquidity Management of the Company's 2022 Annual MD&A.
The SLC Management Supplemental Income Statement enhances the comparability of SLC Management's results with publicly traded alternative asset managers.
Additional metrics provided are considered non-IFRS financial measures. Fee-related revenue represents all fee income, with the exception of performance fees,
generated from third-party investors. Management fees represent fund management fees from the third-party investors. Distribution fees represent third-party income
earned from Advisors Asset Management Inc.'s distribution business, based on assets under administration. Property management, transaction, advisory and other
fees represent other fee revenues which exclude management fees and performance fees, generated from third-party investors. Fee-related expenses represent all
expenses directly related to generating fee revenue from third-party investors. Compensation - fee-related represents compensation expense directly related to
generating fee revenue from third-party investors, which excludes equity-based compensation. Other operating expenses represent operating expenses other than
compensation that is directly related to generating fee revenue from third-party investors. Fee-related earnings represent profitability of our fee-related portfolios, and is
calculated as Fee-related revenue less Fee-related expenses. Investment income (loss) and performance fees represent total income or loss from our seed
investments, net of the related expenses, Advisors Asset Management's capital markets business, which is based on actively traded assets, and performance fees.
Interest and other represents performance fee compensation, our net interest income or expense and income from managing the General Account assets. Operating
income represents profit realized from our business operations, and is calculated as the sum of Fee-related earnings, Investment income (loss) and performance fees, and
Interest and other. Placement fees - other represent costs incurred for capital raising activities that are not related to the current period.
Reporting Refinements
Beginning in Q3 2023:
1. The Run-off Reinsurance business was moved from the Corporate business segment to the U.S. business segment, combined with U.S. In-force Management.
2. The Other Fee Income line in the DOE for the U.S. business segment has been refined to include Group Benefits and Health & Risk Solutions fee income net of
corresponding expenses in order to align with the presentation of the Dental business in this line. We have updated prior period amounts to reflect this refinement.
3. In the DOE Reconciliations in the appendix of this document, the reported net income impact of ACMA is shown in aggregate for Net insurance service result and Net
investment result in the Reported DOE, to align with the aggregate presentation in the Underlying DOE. We have updated prior period amounts to reflect this refinement.
4. Certain lines on the MFS Reconciliations page have been re-ordered to better align to the accounting basis for publicly traded asset managers in the United States.
Beginning in Q2 2023, the following changes are included in the Supplementary Financial Information:
1.Contractual Service Margin (CSM) Movement Analysis by segment, following the segment level Drivers of Earnings.
2. Drivers of Earnings for each segment on one page, following the total company Drivers of Earnings, current quarter and same quarter prior year.
3.Components for Other comprehensive income (loss) for the period and Composition of shareholders’ accumulated OCI balance in the Statements of Total Shareholders'
Equity.
4.Asset Management (including MFS and SLC Management) profit & loss presented on an underlying to reported basis, providing a consistent presentation with other
segment DOE.
5. Effective Q2 2023 following the sale of Sun Life UK, the UK payout annuities business has moved to the U.S. business segment and is combined with U.S. In-force
Management.
6. Certain 2022 restated results and 2023 interim results in the Drivers of Earnings and CSM Movement Analysis were refined to reflect how management views the
business. As these results are not audited, or have not yet been audited, they may still be subject to change. See the section Basis of Presentation on the Notes page ii of
this document for more information.
Beginning in Q1 2023:
1. Financial leverage ratio - Effective January 1, 2023, the calculation for Financial leverage ratio was updated to include the Contractual Service Margin balance (net of
taxes) in the denominator. This measure has not been restated for periods in 2022 and earlier as IFRS 17 and IFRS 9 were not the accounting standards in effect and
therefore, were not applicable to our capital management practices at the time.
2. LICAT Ratio - The LICAT ratio for Sun Life Financial Inc. is disclosed according to OSFI's 2023 LICAT Guideline, effective January 1, 2023, which specifies that available
capital for LICAT purposes includes the Contractual Service Margin. Prior period restatements and resubmissions are not mandated. Additionally, effective January 1,
2023, total capital was updated to include the CSM balance.
3. Sales and flows - Effective January 1, 2023, wealth sales in Group Retirement Services in Canada has been updated to exclude retained sales to better align with the
methodology for Life Insurance Marketing and Research Association (LIMRA) reporting. We have updated prior period amounts to reflect this change. Also effective
January 1, 2023, insurance sales were renamed to "Group - Health & Protection sales" and "Individual - Protection sales" to better align to the business types by our
business groups. For more information about business types, refer to section A - How we Report Our Results of the Company's Q1 2023 MD&A.
4. Third-Party AUM - Effective January 1, 2023, "third-party AUM" was renamed from "other AUM" in order to be more descriptive of the nature of these assets. Further, the
presentation of "consolidation adjustments" has been updated in the current and prior periods to be shown separately from "third-party AUM", as adjustments apply to all
components of total AUM.
5. Underlying net income - Effective January 1, 2023, we refined the definition of Underlying net income as follows, and have updated prior period comparative figures to
reflect these changes: (i) Market-related impacts were updated to reflect the adoption of IFRS 17 and IFRS 9; (ii) The adjustment for management’s ownership of MFS
shares was updated to better reflect Sun Life’s interest in MFS’ earnings; and (iii) Removal of intangible asset amortization on acquired finite-life intangibles. Additional
detail on these adjustments is provided in the Non-IFRS Financial Measures section on page 1 of this document.
For additional information about changes in accounting policy, refer to Note 2 in our Interim Consolidated Financial Statements for the period ended September 30, 2023
and section L. Changes in Accounting Policy of the Company's Q3 2023 MD&A.
51
UNDERSTANDING THE DRIVERS OF EARNINGS
Drivers of earnings (DOE) Description Characteristics (1)
Stable and predictable period to period and grows with underlying

Release of insurance risk margins into profit business
Risk adjustment release
Risk adjustment release for Group – Health & Protection is presented in
the ‘Expected earnings on short-term (group) insurance business’ line Risk adjustment release is not impacted by quarterly changes in
discount rates
Stable and predictable period to period and grows with underlying

business
Contractual service margin recognized for services Earned profit for the period released from the contractual service Contractual Service Margin (CSM) balance will mostly be impacted by
provided margin new business, insurance experience and market movements for some
contracts
8-10% of CSM balance recognized in shareholder net income annually
Group – Health & Protection profits recognized over a short coverage

Expected earnings on short-term (group) insurance period
Grows with in-force premiums, new sales and underwriting margins
business
Excludes Administrative Services Only (ASO) business, presented in
the ‘Other fee income’ line
Expected insurance earnings
Represents ‘onerous’ new business for the period

An onerous contract does not necessarily mean it is unprofitable
business
Impact of new insurance business We do not expect a significant amount of onerous contracts (2)
Onerous contracts do not account for the following sources of
profitability
• Risk adjustment
• Full benefit of reinsurance
• Asset returns in excess of discount rates
Mortality; Mostly Group and Individual – Protection experience. The

majority of annuity experience (presented in Wealth & asset
management) changes future cash flows that adjust the CSM
Reflects actual vs. expected claims and expense cash flows (not Morbidity; Reflects both Group - Health and Individual – Protection
reserves) for the current period, plus
Experience gains (losses) experience
The impact to future cash flows (reserves) that do not adjust the CSM Lapse and policyholder behaviour; not significant as experience
(e.g., Group – Health & Protection businesses) changes future cash flows that adjust the CSM
Expenses; gain/loss related to maintenance expenses on insurance

contracts
Periodic, experience dependent

ACMA (Non-financial) Impact of change in assumptions that do not adjust the CSM (e.g.,
Group – Health & Protection businesses)
Majority of ACMA are recorded annually in Q3
Total net insurance service result
(1)
May not include all factors that can impact this line.
(2)
Assuming stable macro-economic environment.
52
UNDERSTANDING THE DRIVERS OF EARNINGS CONTINUED
Drivers of earnings (DOE) Description Characteristics (1)
Reflects the spread between the expected investment return on general

account assets and the discount rate (net of margins for credit risk) on
insurance contract liabilities and crediting rate of investment contract
liabilities
Grows with underlying business; may experience modest volatility period
Expected investment earnings The weighted average expected return for non-fixed income assets is to period from changes in interest rates and investment actions
approximately 2% per quarter, including:
• Equity investments (including derivatives) supporting insurance
contracts; and
• Investment properties supporting insurance contracts
Investment experience reflects variance between long-term expected

returns and actual returns in the period
Impact of period to period market fluctuations on assets and liabilities; See market risk sensitivities in the Management's Discussion and Analysis
Market-related impacts expected to largely offset over the long-term for details
Includes net equity and net fixed income impacts, impact of changes in the
fair value of investment properties, and other market-related experience
Impact of ratings changes, and impairments (net of recoveries) on FVTPL

assets
Credit experience Includes changes in expected credit loss provisions on FVOCI assets Impacted by macro-economic environment and business fundamentals
Expected credit is reflected in the ‘Expected investment earnings’ line
Primarily related to updates to economic assumptions for measuring

liabilities (e.g., discount rates and cost of guarantees). Excludes pass
ACMA (Financial) through products where the CSM is sufficient Periodic, experience dependent
Difference between changes in present value of future cash flows at Majority of ACMA are recorded annually in Q3
locked-in and current rates for non-financial ACMA (for non-pass through
products)
Grows with surplus balance

Earnings on surplus Core investment income on surplus assets (i.e. coupons, dividends) and
realized gains/losses Core investment income will be impacted by yield/spread movement over
time
Joint venture earnings from India, Malaysia and China

Joint ventures & other Other includes various smaller investment-related items that may arise Grows with underlying business
from period to period
Total net investment result
Includes pre-tax earnings (net of expenses) for certain wealth businesses

in Canada and Asia as well as Canada & U.S. fee-based businesses (e.g. Level of earnings will trend with assets under management for Wealth and
Other fee income ASO from Group - Health & Protection) and fee income from Open par premiums for ASO
account in Canada
Expenses – other Non-directly attributable contract expenses, corporate expenses, strategic

initiatives and financing charges
Asset management Represents pre-tax earnings (net of expenses) for MFS and SLC Level of earnings will trend with assets under management / fee-earning
Management assets under management
Income tax (expense) or recovery
Dividends, distributions, NCI
Common shareholders’ net income (loss)

(1)
May not include all factors that can impact this line.
53

Pa e q323 Finsupp

Uploaded by

Copyright:

Available Formats

Pa e q323 Finsupp

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Pa e q323 Finsupp

Uploaded by

Copyright:

Available Formats

Financial and Operating Results

Supplementary Financial Information

Sun Life Financial Inc. (unaudited)

Consolidated Financial Statements Expenses

Segmented Results (Business Groups & Associated Business Units) Appendix

Asset Management 11 Net Income Reconciliations 37-40

Note to Readers: Restated Results on Adoption of IFRS 17 and IFRS 9

Constant Currency Measures

Underlying Net Income

Underlying Diluted Earnings per Share (EPS)

Drivers of Earnings (DOE)

Contractual Service Margin (CSM)

Underlying Net Income by Segment (1)

Reported Net Income - Common Shareholders by Segment

Common Share Information (SLF on TSX)

Sales, Gross Flows and Net Flows (1)

Number of Common Shares Outstanding (in millions) (1)

Assets Under Management and Administration (AUMA) (3)

Select Constant Currency Measures (3)

Risk adjustment release 1 114 103 95 105 98 95 94 392

For the Year

EXCHANGE RATES - Average for the period

Risk adjustment release 1 — 51 10 54 (1) 114 — 8

Risk adjustment release 27 — 51 8 32 7 98 — 6

EXCHANGE RATES - Period end rates

LICAT ratio 25 147% 148% 148%

IFRS 17/9 IFRS 4 & IAS 39 (2)

Underlying net income (1)

Reported net income (loss) - Common shareholders

ASSETS UNDER MANAGEMENT AND ADMINISTRATION (AUMA) (1)

At and For the

RETAIL - CHANGES IN ASSETS UNDER MANAGEMENT (AUM) (1)

INSTITUTIONAL - CHANGES IN AUM (1)

SUPPLEMENTAL INFORMATION (1)

For the Year

Underlying net income (1) 1 53 44 28 48 25 45 40 158

SUPPLEMENTARY INCOME STATEMENT (2)

At and For the

CHANGES IN AUM (1)

CHANGES IN FEE-EARNING AUM (1)

SUPPLEMENTAL INFORMATION (1)

At and For the

SUN LIFE HEALTH

SLGI Asset Management Inc.

For the Year

UNDERLYING NET INCOME BY BUSINESS TYPE (1)

At and For the

WEALTH, HEALTH AND PROTECTION SALES (1)

Group Retirement Services

For the Year

NET PREMIUMS (2)

For the Year

UNDERLYING NET INCOME BY BUSINESS TYPE (1)

For the Year

NET PREMIUMS (2)

For the Year

UNDERLYING NET INCOME BY BUSINESS TYPE (1)

At and For the Quarter Ended At and For the

NET PREMIUMS (2)