Page 1

News release Sun Life Reports Second Quarter 2021 Results Sun Life Financial Inc. ( " SLF Inc. " ) , its subsidiaries and , where applicable , its joint ventures and associates are collectively referred to as " the Company " , " Sun Life " , " we " , " our " , and " us " . We manage our operations and report our financial results in five business segments : Canada , United States ( " U.S. " ) , Asset Management , Asia , and Corporate . The information in this document is based on the unaudited interim financial results of SLF Inc. for the period ended June 30 , 2021 and should be read in conjunction with the interim management's discussion and analysis ( " MD & A " ) and our unaudited interim consolidated financial statements and accompanying notes ( " Interim Consolidated Financial Statements " ) for the period ended June 30 , 2021 , prepared in accordance with International Financial Reporting Standards ( " IFRS " ) . We report certain financial information using non - IFRS financial measures . For more details , refer to the Non - IFRS Financial Measures section in this document . Additional information relating to SLF Inc. is available on www.sunlife.com under Investors - Financial results and reports , on the SEDAR website at www.sedar.com , and on the U.S. Securities and Exchange Commission's website at www.sec.gov . Unless otherwise noted , all amounts are in Canadian dollars . TORONTO , ON - ( August 4 , 2021 ) - Sun Life Financial Inc. ( TSX : SLF ) ( NYSE : SLF ) today announced its results for the second quarter ended June 30 , 2021. Second quarter reported net income was $ 900 million and underlying net income ( ¹ ) was $ 883 million . " Sun Life delivered a strong second quarter driven by momentum in all four pillars , which reflects our ability to execute on our strategy , the priority Clients are placing on health and financial security and our continued focus on enhancing digital capabilities , " said Kevin Strain , President and incoming CEO of Sun Life . will retire on August 6 Strain added , " On behalf of our employees , advis and partners around the world , I would like to thank Dean Connor , after a successful 15 - year career with Sun Life , including 10 years as CEO . Dean built a strong foundation for the future , including Sun Life's entry into the alternative asset management space and our growth in Asia . He put the Client at the centre of our strategy , which included accelerating digital transformation and innovation across our businesses . Dean's biggest legacy will be the development of our people and culture under his leadership , and we all wish Dean the very best . " ( 1 ) Profitability Reported net income ( $ millions ) Underlying net income ( $ millions ) ( 1¹ ) Reported EPS ( $ ) ( ² ) Underlying EPS ( $ ) ( ¹ ) ( 2 ) Reported return on equity ( " ROE " ) ( ¹ ) Underlying ROE ( ¹ ) Growth Insurance sales ( $ millions ) ( ¹ ) Wealth sales ( $ millions ) ( ¹ ) ( 3 ) Value of new business ( " VNB " ) ( $ millions ) ( ¹ ) ( 4 ) Assets under management ( " AUM " ) ( $ billions ) ( ¹ ) ( 3 ) Financial Strength LICAT ratios ( at period end ) ( 5 ) Sun Life Financial Inc. Sun Life Assurance ( 6 ) Financial leverage ratio ( at period end ) ( ¹ ) Quarterly results Q2¹21 900 883 1.53 1.50 16.3 % 16.0 % EARNINGS NEWS RELEASE Q2'21 710 55,013 284 1,361 Q2'21 147 % 125 % 24.7 % Q2'20 519 739 0.88 1.26 9.4 % 13.4 % Q2'20 619 56,638 206 1,131 Q4'20 147 % 127 % 23.5 % Sun Life Second Quarter 2021 Year - to - date 2021 1,837 1,733 3.12 2.95 16.5 % 15.5 % 2021 1,440 120,975 562 1,361 2020 910 1,509 1.55 2.57 8.3 % 13.7 % Represents a non - IFRS financial measure . See the Non - IFRS Financial Measures section in this document and in our interim MD & A for the period ended June 30 , 2021 ( " Q2 2021 MD & A " ) . ( 2 ) All earnings per share ( " EPS " ) measures refer to fully diluted EPS , unless otherwise stated . ( 3 ) Effective January 1 , 2021 , the methodology for gross flows and outflows was updated for SLC Management . Prior period amounts have not been updated . For more details , see the Non - IFRS Financial Measures section in this document . ( 4 ) Effective January 1 , 2021 , reflects a change in the timing of recognition of U.S. VNB for group policies . We have updated prior period amounts to reflect this change . For more details , see the Non - IFRS Financial Measures section in this document . ( 5 ) For further information on the Life Insurance Capital Adequacy Test ( " LICAT " ) , see section E - Financial Strength in the Q2 2021 MD & A . ( 6 ) Sun Life Assurance Company of Canada ( " Sun Life Assurance " ) is SLF Inc.'s principal operating life insurance subsidiary . 2020 1,395 116,542 459 1,131 Sun Life Financial Inc. 1