Financial Issues on the CEO Agenda Donald A. Stewart Chief Executive Officer Sun Life Financial

1. Financial Issues on the CEO AgendaDonald A. StewartChief Executive OfficerSun Life Financial IIS 45th Annual Seminar Amman, Jordan 8 June 2009

2. Impact on Products Agenda • Strategic Risk Management • Regulation & Capital

3. Agenda • Strategic Risk Management

4. Board responsibility Risk Committee Chief Risk Officer Risk management strategy approved by Board Executive compensation alignment Dedicated Board experience Risk Management Governance Source: CEIOPS Consultation Paper No. 33 (and others)

5. Evolution of Risk Management High Strategic Return Optimization Risk Management Level of strategic alignment Risk Measurement Loss Minimization Compliance Low Risk/return Optimization Value Maximization Balance Sheet Protection Loss Control Risk Management Objective Source: Adapted with permission from MoW 2007

6. Operational Insurance Economic • Mortality • Morbidity • Longevity • Policyholder behaviour • People • Processes • Technology • Reputational • Regulatory & Compliance • Catastrophe • Concentration • Interest Rates • Credit • Equity • Liquidity • Currency Strategic Risk Management Today Origin

7. Example of Insurance Risk A Distribution, Not an Average 4.00 3.50 3.00 2.50 2.00 1.50 1.00 Deaths per 1,000 Time Expected Mortality Experience Actual Mortality Experience

8. Economic RiskEquity Market Volatility S&P 500

9. Economic RiskExample of Income Sensitivity

10. Elements of Managing Model Risk Financial Models Policy Economic Capital Documentation: Model and Assumption Validation Standards Internal audits Independent external reviews Sarbanes - Oxley (SOX) controls Stochastic modeling oversight Models are an aid to judgement, not a substitute

11. Agenda • Strategic Risk Management • Regulation & Capital

12. Oversight of Sun Life Home regulator Office of the Superintendant of Financial Institutions (OSFI) U.S. Securities and Exchange Commission registrant NYSE listed since 2000 Current financial reporting is via Canadian GAAP Canada moving to International Financial Reporting Standards in 2011 Mandatory for Sun Life U.S. GAAP reconciliation Six U.S. domestic regulators Michigan, Delaware, New York, Rhode Island, Connecticut, Texas Internal Revenue Service Rating Agencies

13. SLF Regulators Outside North America United Kingdom Financial Services Authority (FSA) India Insurance Regulatory & Development Authority (IRDA) China Chinese Insurance Regulatory Commission (CIRC) Hong Kong Office of the Commissioner of Insurance Philippines Insurance Supervisory Authority Insurance Commission Bermuda Bermuda Monetary Authority (BMA)

14. International Financial Reporting Standards Project Plan Timeline for Canada Jan.1, 2010 Restate Opening Balance Sheet 2009 2010 Analysis of IFRS Accounting Policy Decisions, and the associated business and system process changes Build 2010 IFRS accounting numbers for 2011 comparatives Jan.1, 2011 Adopt IFRS 2011 Jan.1, 2013 Phase I Issue Interim & Annual Financial Statements under IFRS with 2010 IFRS comparatives Phase II Accounting for Insurance Contracts under IFRS

15. OSFI Semi annual IFRS Progress report Ontario Securities Commission Quarterly MD&A IFRS reportings IFRSInterim Reporting Requirements

16. Insurance Contracts (IFRS 4) Phase I Continue to use local GAAP for valuation of insurance liabilities (with some exceptions) Requires classification of contracts by type Phase II Develop a global approach to valuation of insurance liabilities Discussion Paper issued in 2007 Exposure draft is scheduled for late 2009 Implementation date of final standard has not been determined

17. Solvency II Timeline 2008 2009 2007 2010 2011 - 2010 2006 2005 Level 1 Directive Development (Commission) Directive Adoption (Council & Parliament) Level 2 & 3 finalized (EC & CEIOPS) Implementation (Member States) CEIOPS* work on Pillar 1 CEIOPS work on Implementing Measures and Supervisory Guidance CEIOPS advice on Proportionality & Groups CEIOPS work on Pillars II and III QIS 1 QIS 2 QIS 3 QIS 4 QIS 5 Model Calibration Source: Comite European des Assurances *CEIOPS (the Committee of European Insurance and Occupational Pension Scheme Supervisors)

18. Solvency II3 Pillar Framework Pillar 3 Pillar 1 Pillar 2 Market Discipline Quantitative Requirements Risk Governance • Internal risk • management & • control • Risk Appetite • Supervisory • oversight • Strategic risk • Group risk • Liquidity risk • Disclosure • Transparency • Supervisory • reporting • Public • disclosure • SFC Report • Regulatory Capital • Requirements • Minimum • Target • Qualifying • Market, Credit, Insurance & Operational risks

19. Economic Capital ExampleEquity and Interest Rate Risk Distribution of Events Economic Regulatory

20. Impact on Products Agenda • Strategic Enterprise Risk Management • Regulation & Capital

21. U.S. Variable Annuities (VA’s) Originally issued as tax favoured products with a guaranteed death benefit Have migrated to withdrawal benefits with a minimum floor (GMWB) Major industry losses in 2008 and Q1 2009

22. Product Profitability for Leading Industry Products 60% weighted-average allocation to equity funds Market-Consistent Value % Company Source: Oliver Wyman analysis (values effective August 28th, 2008)

23. Future Product Development Trends A better balance between customers and shareholders Basic High Lower Cost Basic Features Higher Cost Some More Features Features Profitability Today: Low Cost Rich Features Low Rich Low Price High

24. Future Product Development Trends:60 year promises? Berlin Wall Comes Down Global Economic Crisis First Human Heart Transplant Sputnik Launched Dot-com Bust 1989 2001 2008 1957 1967 1949 1962 1981 1990 2003 People’s Republic of China Cuban Missile Crisis First Space Shuttle Mission Nelson Mandela Freed US Invades Iraq

25. QuestionsandAnswers

26. Forward-Looking Statements Certain statements contained in this document, including those relating to the Company’s strategies and other statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates” or similar expressions, are forward-looking statements within the meaning of securities laws. Forward-looking statements include the information concerning possible or assumed future results of operations of the Company. These statements represent the Company’s expectations, estimates and projections regarding future events and are not historical facts. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Future results and stockholder value of SLF Inc. may differ materially from those expressed in these forward-looking statements due to, among other factors, the matters set out under “Risk Factors” in the Company’s AIF and the factors detailed in its other filings with Canadian and U.S. securities regulators, including its annual and interim MD&A, and annual and interim financial statements, which are available for review at www.sedar.com and www.sec.gov. Factors that could cause actual results to differ materially from expectations include, but are not limited to, investment losses and defaults and changes to investment valuations; the performance of equity markets; interest rate fluctuations; other market risks including movement in credit spreads; possible sustained economic downturn; risks related to market liquidity; market conditions that adversely affect the company’s capital position or its ability to raise capital; downgrades in financial strength or credit ratings; the impact of mergers and acquisitions; the performance of the Company’s investments and investment portfolios managed for clients such as segregated and mutual funds; insurance risks including mortality, morbidity, longevity and policyholder behaviour including the occurrence of natural or man-made disasters, pandemic diseases and acts of terrorism; changes in legislation and regulations including tax laws; regulatory investigations and proceedings and private legal proceedings and class actions relating to practices in the mutual fund, insurance, annuity and financial product distribution industries; risks relating to product design and pricing; the availability, cost and effectiveness of reinsurance; the inability to maintain strong distribution channels and risks relating to market conduct by intermediaries and agents; currency exchange rate fluctuations; the cost, effectiveness and availability of risk-mitigating hedging programs; the creditworthiness of guarantors and counterparties to derivatives; risks relating to operations in Asia including risks relating to joint ventures; the impact of competition; risks relating to financial modelling errors; business continuity risks; failure of information systems and Internet-enabled technology; breaches of computer security and privacy; dependence on third party relationships including outsourcing arrangements; the ability to attract and retain employees; the impact of adverse results in the closed block of business; the ineffectiveness of risk management policies and procedures and the potential for financial loss related to changes in the environment. The Company does not undertake any obligation to update or revise these forward-looking statements to reflect events or circumstances after the date of this report or to reflect the occurrence of unanticipated events, except as required by law. Non-GAAP Measures Management evaluates the Company’s performance on the basis of financial measures prepared in accordance with GAAP, including earnings, fully diluted EPS and ROE. Management also measures the Company’s performance based on certain non-GAAP measures, including operating earnings, and financial measures based on operating earnings, including operating EPS and operating ROE, that exclude certain items that are not operational or ongoing in nature. Management also uses financial performance measures that are prepared on a constant currency basis, which exclude the impact of currency fluctuations. The Company also reviews adjusted revenue which excludes the impact of currency, and fair value changes in held-for-trading assets and derivative instruments from total revenue. Management also monitors MFS's pre-tax operating profit margin ratio, the denominator of which excludes certain investment income and includes certain commission expenses, as a means of measuring the underlying profitability of MFS. Embedded value and value of new business are used to measure overall profitability. Embedded value and value of new business are based on actuarial amounts for which there are no comparable amounts under GAAP. Management believes that these non-GAAP financial measures provide information useful to investors in understanding the Company’s performance and facilitate the comparison of the quarterly and full-year results of the Company’s ongoing operations. These non-GAAP financial measures do not have any standardized meaning and may not be comparable with similar measures used by other companies. They should not be viewed as an alternative to measures of financial performance determined in accordance with GAAP. Additional information concerning these non-GAAP financial measures and reconciliations to GAAP measures are included in Sun Life Financial Inc.’s annual and interim MD&A and the Supplementary Financial Information packages that are available in the Investor Relations – Financial Publications section of Sun Life Financial’s website, www.sunlife.com. Sources of Earnings Sources of earnings presents an analysis of sources of net income, which is not based on GAAP. It is presented in accordance with the requirements of the Office of the Superintendent of Financial Institutions, Canada. Additional information concerning sources of earnings is included in the Company's Annual Report.