$SUNFF

SUN LIFE FINANCIAL INC

CIK:0001097362|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS $ in Millions	12 Months Ended
CONSOLIDATED STATEMENTS OF OPERATIONS $ in Millions	Dec. 31, 2025 CAD ($) $ / shares $ / shares	Dec. 31, 2024 CAD ($) $ / shares $ / shares
Insurance service result
Insurance revenue	$ 23,982	$ 22,637
Insurance service expenses	(20,414)	(19,631)
Reinsurance contract held net income (expenses)	(94)	85
Net insurance service result	3,474	3,091
Investment result excluding result for account of segregated fund holders:
Net investment income (loss)	8,859	7,415
Insurance finance income (expenses) from insurance contracts issued	(6,787)	(5,139)
Insurance finance income (expenses) from reinsurance contracts held	69	51
Decrease (increase) in investment contract liabilities	(323)	(393)
Net investment result excluding result for account of segregated fund holders	1,818	1,934
Investment result for insurance contracts for account of segregated fund holders:
Investment income (loss) on investments for account of segregated fund holders	1,901	2,316
Insurance finance income (expenses)	(1,901)	(2,316)
Net investment result for insurance contracts for account of segregated fund holders	0	0
Net investment result	1,818	1,934
Fee income	9,059	8,581
Other expenses (income)
Other income	0	(163)
Operating expenses and commissions	9,027	8,766
Interest expenses	526	664
Total other expenses (income)	9,553	9,267
Income (loss) before income taxes	4,798	4,339
Less: Income tax expense (benefit)	1,016	1,040
Total net income (loss)	3,782	3,299
Less: Net income (loss) allocated to the participating account	194	42
Net income (loss) attributable to non-controlling interests	37	128
Shareholders' net income (loss)	3,551	3,129
Less: Dividends on preferred shares and distributions on other equity instruments	79	80
Common shareholders' net income (loss)	$ 3,472	$ 3,049
Average exchange rates during the reporting periods (in USD per share) \| $ / shares	1.40	1.37
Earnings (loss) per share
Basic (in CAD per share) \| $ / shares	$ 6.17	$ 5.27
Diluted (in CAD per share) \| $ / shares	6.15	5.26
Dividends per common share (in CAD per share) \| $ / shares	$ 3.520	$ 3.240

CONSOLIDATED STATEMENTS OF CASH FLOWS - CAD ($)
$ in Millions

12 Months Ended

Dec. 31, 2025

Dec. 31, 2024

Cash flows provided by (used in) operating activities

Income (loss) before income taxes

$ 4,798

$ 4,339

Adjustments:

Interest expense related to financing activities

363

398

(Decrease) increase in investment contract liabilities

323

393

Changes in insurance contract liabilities and assets

3,219

2,133

Changes in reinsurance contract held assets and liabilities

(136)

Realized and unrealized (gains) losses and foreign currency changes on invested assets

(765)

129

Sales, maturities and repayments of invested assets

59,959

52,512

Purchases of invested assets

(71,218)

(61,251)

Income taxes received (paid)

(978)

(1,138)

Mortgage securitization

(423)

(265)

Other operating activities

7,496

5,418

Net cash provided by (used in) operating activities

2,799

2,532

Cash flows provided by (used in) investing activities

Net (purchase) sale of property and equipment

(145)

(143)

Investment in and transactions with joint ventures and associates

(44)

(17)

Dividends and other proceeds related to joint ventures and associates

160

Acquisitions, net of cash and cash equivalents acquired

^[1]

Other investing activities

(211)

(337)

Net cash provided by (used in) investing activities

(320)

(337)

Cash flows provided by (used in) financing activities

Increase in (repayment of) borrowed funds

Issuance of subordinated debt, net of issuance costs

1,991

746

Increase in (repayment of) borrowings from credit facility

(308)

(340)

Redemption of senior debentures and subordinated debt

(750)

Issuance of common shares on exercise of stock options

Transactions with non-controlling interests

(78)

(223)

Common shares purchased for cancellation

(1,707)

(855)

Dividends paid on common and preferred shares

(2,064)

(1,962)

Payment of lease liabilities

(180)

(175)

Interest expense paid

(355)

(389)

Net cash provided by (used in) financing activities

(2,636)

(3,882)

Changes due to fluctuations in exchange rates

(198)

471

Increase (decrease) in cash and cash equivalents

(355)

(1,216)

Net cash and cash equivalents, beginning of year

9,954

11,170

Net cash and cash equivalents, end of year

9,599

9,954

Short-term securities, end of year

5,156

3,744

Net cash, cash equivalents and short-term securities, end of year

$ 14,755

$ 13,698

[1]	Consists of total cash and cash equivalents acquired of $80, less total cash consideration paid of $55, for the year ended December 31, 2025.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION $ in Millions	Dec. 31, 2025 CAD ($) $ / shares	Dec. 31, 2024 CAD ($) $ / shares
Assets
Cash, cash equivalents and short-term securities	$ 14,841	$ 13,873
Debt securities	85,618	81,955
Equity securities	12,250	9,974
Mortgages and loans	59,433	57,619
Derivative assets	1,534	1,971
Other financial invested assets	14,374	13,306
Financial invested assets	188,050	178,698
Investment properties	9,432	9,290
Other non-financial invested assets	1,693	1,829
Invested assets	199,175	189,817
Other assets	7,753	7,021
Reinsurance contract held assets	6,138	6,318
Insurance contract assets	335	355
Deferred tax assets	3,803	3,910
Intangible assets	5,155	5,058
Goodwill	9,530	9,456
Total general fund assets	231,889	221,935
Investments for account of segregated fund holders	166,566	148,786
Total assets	398,455	370,721
Liabilities
Insurance contract liabilities excluding those for account of segregated fund holders	155,910	147,269
Reinsurance contract held liabilities	2,049	1,825
Investment contract liabilities	11,796	11,678
Derivative liabilities	2,065	2,077
Deferred tax liabilities	301	286
Other liabilities	25,905	26,292
Senior debentures	200	200
Subordinated debt	8,171	6,179
Total general fund liabilities	206,397	195,806
Insurance contract liabilities for account of segregated fund holders	20,108	20,097
Investment contract liabilities for account of segregated fund holders	146,458	128,689
Total liabilities	372,963	344,592
Equity
Issued share capital and contributed surplus	10,220	10,526
Shareholders’ retained earnings and accumulated other comprehensive income	14,312	15,031
Total shareholders’ equity	24,532	25,557
Equity in the participating account	696	496
Non-controlling interests’ equity	264	76
Total equity	25,492	26,129
Total liabilities and equity	$ 398,455	$ 370,721
Exchange rates at the end of the reporting periods (in USD per share) \| $ / shares	1.37	1.44