Page 1

News release Sun Life Reports Third 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 September 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 September 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 . Reported net income ( loss ) refers to Common shareholders ' net income ( loss ) determined in accordance with IFRS . Unless otherwise noted , all amounts are in Canadian dollars . TORONTO , ON - ( November 3 , 2021 ) - Sun Life Financial Inc. ( TSX : SLF ) ( NYSE : SLF ) today announced its results for the third quarter ended September 30 , 2021. Third quarter reported net income was $ 1,019 million and underlying net income ( ¹ ) was $ 902 million . " Sun Life delivered strong third quarter results , " said Kevin Strain , President and CEO for Sun Life . " We continue to see positive momentum , enabled by digital tools and solutions , at a time when several of our markets are impacted by COVID - 19 . Our third quarter results highlight the value of our diversified business mix , supported by strong wealth and asset management results . With a track - record of delivering on our objectives , combined with the ongoing shift to fee - based capital - light businesses , we are pleased to announce an increase in our medium - term financial objective for underlying ROE to 16 % plus . " Sun Life is also continuing to build on its long - term environmental and social commitments when it comes to integrating sustainability within its business strategy and aligning it to Sun Life's Purpose to help Clients achieve lifetime financial security and live healthier lives . ( 1 ) " The role of our business is to serve our Clients , our communities and society . We're doing our part by advancing our commitment to a cleaner , more inclusive and sustainable future with our announced goal to achieve net - zero by 2050 as an asset owner and manager and the appointment of our first Chief Sustainability Officer , Alanna Boyd , " added Strain . Profitability Reported net income ( $ millions ) Underlying net income ( $ millions ) ( ¹ ) 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 ) ( 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. ( 6 ) Sun Life Assurance Financial leverage ratio ( at period end ) ( ¹ ) Quarterly results Q3'21 1,019 902 1.74 1.54 17.6 % 15.6 % EARNINGS NEWS RELEASE Q3'21 628 50,725 290 1,386 Q3'21 143 % 124 % 22.2 % Q3'20 750 842 1.28 1.44 13.5 % 15.1 % Q3'20 681 52,684 261 1,196 Sun Life Q3'20 144 % 127 % 21.5 % Year - to - date 2021 2,856 2,635 4.85 4.50 16.7 % 15.4 % 2021 2,068 171,700 852 1,386 2020 1,660 2,351 2.83 4.02 10.1 % 14.3 % 2020 2,076 169,226 720 1,196 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 September 30 , 2021 ( " Q3 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 Q3 2021 MD & A . ( 6 ) Sun Life Assurance Company of Canada ( " Sun Life Assurance " ) is SLF Inc.'s principal operating life insurance subsidiary . Sun Life Financial Inc. Third Quarter 2021 1