Sun Life Financial Inc. (NYSE:SLF) Q1 2024 Earnings Call Transcript

Randy Brown: Yeah. Hi, Nigel, it’s Randy. I’ll address. I think what you’re getting at here is credit. I think Kevin Morrissey covered in a sense. Overall credit experience — overall was positive for the quarter. The actual experience being less than what’s assumed and the assumption — what views in the assumption for liabilities. We did, however, see three impairments that I would say are not systemic, but rather specific liquidity issues that all three began during COVID and then just manifested over time. So having literally thousands of credit, not unexpected to have a couple to hit issues at any given time. Net migrations were flat. ECL was lower than in prior quarters. So you did see lumpiness by business group, but we manage on a global basis and globally, the diversified portfolio is performing as expected.

Nigel D’Souza: Okay. That’s helpful. Thank you.

Operator: We have a follow-up question from Meny Grauman with Scotiabank. Your line is open.

Meny Grauman: Hi, thanks for taking the follow-up. Just wanted to follow-up on Mario’s question. Just ask — is there any reason to believe that you won’t be able to hit an 18% ROE for the remainder of the year? It sounds like dental redemptions are too small to push you off track on that. But just wanted to get your thoughts on that connecting it to the ROE.

Kevin Strain: Well, our ROE is 18% it’s a — sorry, there’s feedback there, is a medium-term objective, and we still feel confident that we’ll deliver on that. The — I think I addressed the earnings, and you can figure out the ROE from the earnings sort of comments. As we said earlier, we think DentaQuest will have a more difficult year and we’ll grow more slowly, but the other pieces were sort of more negative volatility that we would normally see and were specific to the quarter.

Meny Grauman: Thanks, Kevin.

Operator: We have no further questions at this time. And I will turn the back over to Mr. Garg.

David Garg: Thank you, operator. This concludes today’s call. A replay of the call will be available on the Investor Relations section of our website. Thank you, everybody, and have a great day.

Operator: This brings to an end today’s conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.