Sun Life Financial confident after record profits in challenging busin

    Business Editors

    TORONTO--(BUSINESS WIRE)--May 11, 2005--Sun Life Financial (TSX:SLF)(NYSE:SLF) today highlighted its record of creating shareholder value despite adverse market conditions. This success, built on a strong Canadian foundation, disciplined risk management and its commitment to operational excellence, demonstrates the strength of the Company's strategic direction, attendees at the annual meeting were told.

    "The business we're in is a vital one with great prospects," said Donald Stewart, Chief Executive Officer. "It is environmentally friendly, it's sustainable, and with the opening of India and China, the life insurance industry now has access to huge markets which not so long ago were completely closed."

    Diversifying across geographies and product lines continues to be a winning strategy for Sun Life Financial, contributing to record profit of more than $1.7 billion in 2004, and a very encouraging start to 2005. The Company's balance of protection and wealth products, its strategic ownership position in companies aligned with the trend towards market-based products, and its focus on emerging markets in Asia and growth products like health insurance, mean Sun Life Financial is positioned to continue being an industry leader in the future.

    Stewart cited the Company's ownership positions in CI Funds, McLean Budden and MFS Investment Management as examples of strategic alignment generating excellent prospects, as consumers in mature markets shift their preference from traditional guaranteed insurance and annuity policies to market-based products, such as mutual funds, segregated funds and variable life and annuity products. Funds backing market-based products have grown much faster than funds backing guaranteed policies. In the first quarter of 2005, Sun Life Financial's Canadian business generated significant growth, with total premiums, market based deposits and other sales up 19% over the first quarter of 2004.

    CI mutual funds sold through the Clarica sales force were up 38% over the first quarter of last year, providing strong testimony to the power of this excellent professional sales force. McLean Budden ranks among the largest institutional asset managers in Canada, taking in almost $1.5 billion during the quarter. MFS is outpacing competition with strong investment performance as it extends its penetration in the institutional investment market and establishes itself as an international investment management organization.

    Stewart also noted that while long-term interest rates in the 4% range challenge not only the fixed annuity business, but all longer-term financial products including life insurance, disability insurance and pensions, Sun Life Financial's commitment to excellence in risk management mitigates the potential impact of low investment returns. At the same time, Stewart pointed out recent market moves suggest that longer-term interest rates may rise to levels that will have a considerably positive effect on the profitability of life and disability insurance and fixed annuity policies.

    "I have always been an enthusiastic proponent of the critical importance of life and health protection, as well as the increasing need to save for retirement. Sun Life Financial will continue to be a leading provider of these products and services, ensuring the financial security of our customers," Stewart said.

    Sun Life Financial

    Sun Life Financial is a leading international financial services organization providing a diverse range of wealth accumulation and protection products and services to individuals and corporate customers. Tracing its roots back to 1865, Sun Life Financial and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of March 31, 2005, the Sun Life Financial group of companies had total assets under management of $366 billion.

    Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under ticker symbol SLF.

    Sun Life Financial Inc. (TSX:SLF) (NYSE:SLF)

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CONTACT: Media Relations Contact: Sun Life Financial Inc. Susan Jantzi, Manager, Media Relations (519) 888-3160 susan.jantzi@sunlife.com OR Investor Relations Contact: Sun Life Financial Inc. Tom Reid, Vice-President, Investor Relations (416) 204-8163 investor.relations@sunlife.com

KEYWORD: NEW YORK PHILIPPINES INTERNATIONAL CANADA ASIA PACIFIC INDUSTRY KEYWORD: BANKING SOURCE: Sun Life Financial Inc.

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