Investor overview presentation
Investor Presentation
Third Quarter 2024
Note: All dollar amounts are expressed in Canadian dollars and references to "dollars" or "$" are to Canadian dollars, unless otherwise stated.
INVESTOR OVERVIEW
A global financial services company
Capital &
Risk
Solutions
21%
31%
3
175+ Years
Of History
Assets Under Administration2,3
6th
Largest Life Insurer
in
Assets Under Management2,3
Base Earnings3,4
21%
|
US |
||
|
27% |
||
|
Capital & Risk |
||
|
Solutions |
||
|
28% |
|
|
|
|
33% |
|
|
Net Earnings from |
|
AA |
40M+ |
|
S&P2,5 |
Customer Relationships2 |
|
Continuing |
|
Operations4 |
13%
US
26%
|
Footnotes 1, 2, 4 and 5: Refer to slide 27. 3. This metric is a non-GAAP financial measure. Refer to "Non-GAAP Financial Measures and Ratios" in the Appendix and in our Q3 2024 MD&A |
3 |
OVERVIEW
A global financial services company with interests in life insurance, health insurance, retirement and investment services, asset
INVESTOR
4
management and reinsurance businesses.
Key Metrics
In C$, unless otherwise noted
|
YTD 2024 |
FY 2023 |
FY 2022 |
|
|
Base EPS1 |
|
|
|
|
Net EPS from continuing operations |
|
|
|
|
Base ROE1 |
17.3% |
16.6% |
15.8% |
|
ROE2 |
15.6% |
12.9% |
17.3% |
|
Dividends paid per share |
|
|
|
|
Book value per share2 |
|
|
|
Corporate Structure5
68.2%
62.5%
Financial Strength Ratings3,
|
As at |
|
|
|
|
|
|
AA |
|
Moody's Investors Service |
Aa3 |
|
Morningstar DBRS |
AA |
|
Fitch Ratings |
AA |
|
|
A+ |
|
LICAT Ratio4 |
134% |
|
Cash at Holding Company |
1.1 |
|
Level ($B) |
|
1. This metric is a non-GAAP financial measure or ratio. Refer to "Non-GAAP Financial Measures and Ratios" in the Appendix and in our Q3 2024 MD&A. Footnotes 2 - 5: Refer to slide 27
INVESTOR OVERVIEW
Diversified, market-leading franchises
|
|
|
|
Capital & Risk Solutions
5
A leader in workplace and wealth management serving 1 in 3 Canadians
Top-3 in group life and health3, and retirement4
Top-3 in individual life4
Multiple, complementary distribution channels
A
Second largest retirement services provider5 in the
Empower Personal Wealth launched to expand retail wealth management focus
- growing position in the broker- sold pension savings market in
Germany
Top-10 global reinsurer9
Leading provider of structured life reinsurance solutions in the
Leading provider of
|
31% |
27% |
21% |
|
of base earnings1,2 |
of base earnings1,2 |
of base earnings1,2 |
Footnotes 1, 3 - 9: Refer to slide 27 2. This metric is a non-GAAP financial measure. Refer to "Non-GAAP Financial Measures and Ratios" in the Appendix and in our Q3 2024 MD&A
21%
of base earnings1,2
INVESTOR OVERVIEW
6
Value drivers
Portfolio strategies that extend across operating segments
Operating Segments1
|
|
|
|
CRS |
|
|
Workplace Solutions |
Group Life & Health |
Empower Defined |
Group Life & Health |
|
|
Broad reach |
Contribution |
|||
|
Group Retirement |
Group Retirement |
|||
|
Wealth & Asset |
Individual Wealth |
Empower Personal |
Individual Wealth & |
|
|
Management |
Management |
Wealth |
Asset Management |
|
|
Significant opportunity |
Asset Management2 |
|||
|
Insurance & Risk |
Insurance & Annuities |
Insurance & Annuities |
Reinsurance |
|
|
Solutions |
||||
|
Deep expertise |
1. Various business units in each operating segment have been aligned with value drivers at the consolidated Lifeco level. Footnote 2: refer to Slide 27.
INVESTOR OVERVIEW
7
Value drivers
Play complementary roles and highlight the benefits of diversification
HigherLower
|
Workplace |
Wealth & Asset |
Insurance & Risk |
|
Solutions |
Management |
Solutions |
Cash generation
Steady, stable returns
"Capital-light"
Organic growth potential
INVESTOR OVERVIEW
Medium-term1 objectives
Supported by our repositioned portfolio with significant organic and extension growth potential
8
8-10%
base EPS2 growth p.a.
- Organic earnings growth from market- leading franchises
- Digital investments drive business extensions and cost optimization
- Harvesting revenue and expense synergies from acquisitions
16-17%
base ROE2
- Diversified businesses drive strong and stable returns
- Wealth and asset management provides capital-light growth
- Leveraged capital management and risk management expertise
45-55%
target dividend payout ratio, base earnings2
- Cash generative business supports a progressive dividend policy in line with expected earnings growth
- Balanced approach between maintaining financial strength and strategic capital deployment
|
Full Year 2023 |
11%3 |
Full Year 2023 |
17%3,4 |
Full Year 2023 |
53% |
|
3Q 2024 |
12%3 |
3Q 2024 |
17%3,4 |
3Q 2024 |
60% |
1. Medium-term defined as the next 3-5 years 2. Base earnings per common share (EPS), base retuon common shareholders' equity (ROE) and target dividend payout ratio (base) are non-GAAP ratios calculated using base earnings, a non-GAAP financial measure. Refer to "Non-GAAP Financial Measures and Ratios" in the Appendix, in our 2023 Annual MD&A and our Q3 2024 MD&A. Footnotes 3 - 4: Refer to slide 27
INVESTOR OVERVIEW
Our ambitions
Building Better Financial Futures
|
|
|
$150+ Million |
|
Managed in ESG-related strategies |
Invested in wind, solar, and hydroelectric |
Delivered by |
|
in 2022 |
renewable energy projects1 |
companies to charitable initiatives |
|
over the past 10 years |
||
|
Advancing Inclusive Growth |
||
9
|
On Track to Meet Goals: |
Commitment to Truth |
|
50% women in management and |
and Reconciliation |
|
25% underrepresented groups in |
|
|
management by 2030 |
Formation of Employee Resource Groups for LGBTQ2+, Black and
Persons of Colour, Indigenous Peoples, Persons with Disabilities, and Women in Leadership
Partnering for a More Sustainable Future
|
Interim operations goal of 40% |
Achieved score of A- (highest |
Official supporter of |
|
reduction in carbon emissions by |
ranked North American insurer) in |
Climate-Related Financial Disclosures |
|
20302 |
2023 CDP survey3 |
(TCFD) |
Footnotes 1-3: Refer to slide 27
Successful Portfolio Repositioning
and Strong Shareholder Returns
| Attention: This is an excerpt of the original content. To continue reading it, access the original document here. |
Attachments
Disclaimer
AM Best Assigns Credit Ratings to Wingsail Insurance Company; Affirms Credit Ratings of Core Members of Spinnaker Insurance Group
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