Sun Life Announces Intended Renewal of Normal Course Issuer Bid

Rhea-AI Summary

Sun Life Financial (TSX: SLF) (NYSE: SLF) has announced plans to renew its normal course issuer bid (NCIB), pending approval from OSFI and TSX. Under the current 2024 NCIB, the company has repurchased 13,018,997 of the authorized 15,000,000 common shares at an average price of $80.79 per share. Once the 2024 NCIB is completed, Sun Life plans to establish a new 2025 NCIB to purchase up to an additional 10,000,000 common shares. The company will seek TSX approval to purchase a total of 25,000,000 shares under the 2025 NCIB, representing approximately 4.1% of outstanding shares as of May 5, 2025. The purchases will be made through various trading platforms in Canada and the US at prevailing market rates.

Positive

• Continuation of share buyback program demonstrates company's commitment to returning capital to shareholders
• Significant buyback size of 25 million shares (4.1% of outstanding shares) indicates strong capital position
• Previous buyback execution shows strong commitment with 13 million shares already repurchased

Negative

• Share repurchases subject to regulatory approvals from OSFI and TSX
• Actual number and timing of purchases not guaranteed

Insights

Financial Analyst

Sun Life plans to repurchase 10 million additional shares after completing its current 15-million-share buyback program, returning capital to shareholders.

Sun Life Financial has announced its intention to renew its share repurchase program, showing continued commitment to returning capital to shareholders. Under its current program (2024 NCIB), the company has already repurchased 13,018,997 shares at a weighted average price of $80.79 per share, representing approximately 87% of the authorized 15 million shares.

The proposed 2025 NCIB would allow for an additional 10 million common shares to be repurchased upon receiving regulatory approvals from OSFI and the TSX. In total, Sun Life is seeking approval to purchase up to 25 million shares (including the 2024 repurchased shares), representing approximately 4.1% of their 564,731,703 outstanding common shares as of May 5, 2025.

For context, a Normal Course Issuer Bid is the Canadian equivalent of a share repurchase program, providing companies with a regulated framework to buy back their own shares. These programs typically benefit remaining shareholders by reducing the number of outstanding shares, which can increase earnings per share and improve return on equity metrics.

The press release indicates flexibility in how Sun Life will execute these purchases, including potential private agreements that could be made at a discount to market prices. Additionally, the company states that repurchased shares will either be canceled or used for equity-settled incentive arrangements, with the former reducing the total share count permanently.

This share repurchase announcement signals that Sun Life considers this capital allocation approach appropriate within its broader capital management strategy. The company's methodical approach to capital return, with the new program intended to start after fully utilizing the current one, demonstrates structured capital planning.

TORONTO, May 8, 2025 /PRNewswire/ - Sun Life Financial Inc. (TSX: SLF) (NYSE: SLF) (the "Company" or "Sun Life") announced today its intention to renew its normal course issuer bid, subject to the approval of the Office of the Superintendent of Financial Institutions ("OSFI") and the Toronto Stock Exchange (the "TSX").

The Company's normal course issuer bid that commenced on August 29, 2024 (the "2024 NCIB") permits the repurchase of up to 15,000,000 common shares, 13,018,997 of which have been repurchased as of May 7, 2025. Once the Company has repurchased all 15,000,000 common shares under the 2024 NCIB (the "2024 Repurchased Shares"), the Company expects to establish a new normal course issuer bid under which the Company will be permitted to purchase up to an additional 10,000,000 of its common shares (the "2025 NCIB"), subject to the receipt of applicable approvals from OSFI and the TSX. The 2025 NCIB will expire on the date that is 12 months after its commencement or such earlier date as the Company may determine. The 2025 NCIB will provide the Company with the flexibility to acquire common shares in order to return capital to shareholders as part of its overall capital management strategy.

Purchases under the 2025 NCIB may be made through the facilities of the TSX, other Canadian stock exchanges, the New York Stock Exchange, and/or alternative trading platforms in Canada and the United States, at prevailing market rates. Subject to regulatory approval, purchases under the 2025 NCIB may also be made by way of private agreements or share repurchase programs under issuer bid exemption orders issued by securities regulatory authorities. Any purchases made under an exemption order issued by a securities regulatory authority will generally be at a discount to the prevailing market price. The actual number of common shares purchased under the 2025 NCIB, and the timing of such purchases (if any), will be determined by the Company. Any common shares purchased by the Company pursuant to the 2025 NCIB will be cancelled or used in connection with certain equity settled incentive arrangements.

From time to time, when the Company does not possess material non-public information about itself or its securities, it may enter into a pre-defined plan with its broker to allow for the repurchase of common shares of the Company at times when the Company ordinarily would not be active in the market due to its own internal trading blackout periods, insider trading rules or otherwise. Any such plans entered into with the Company's broker will be adopted in accordance with applicable Canadian and U.S. securities laws.

As of May 7, 2025, the Company had purchased on the TSX, other Canadian stock exchanges and/or alternative Canadian trading platforms, 13,018,997 common shares out of the 15,000,000 common shares it was authorized to repurchase under the 2024 NCIB, at a weighted average price paid per common share of approximately $80.79. In accordance with the requirements of the TSX, because the Company is renewing its normal course issuer bid before the 2024 NCIB expires, the total number of common shares that the Company repurchased under the 2024 NCIB will be deducted from the maximum number of common shares that the Company may purchase under the 2025 NCIB. Accordingly, the Company will seek TSX approval to purchase 25,000,000 common shares under the 2025 NCIB, being the aggregate of 10,000,000 common shares and the 2024 Repurchased Shares, representing approximately 4.1% of the 564,731,703 common shares issued and outstanding as at May 5, 2025.

Forward-Looking Statements

From time to time, the Company makes written or oral forward-looking statements within the meaning of certain securities laws, including the "safe harbour" provisions of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. Forward-looking statements contained in this news release include statements (i) relating to the  renewal of the normal course issuer bid (including, but not limited to, statements relating to the repurchase of the 2024 Repurchased Shares, the size of the 2025 NCIB and the entrance by the Company into a pre-defined plan with its broker), (ii) that are predictive in nature or that depend upon or refer to future events or conditions, and (iii) that include words such as "intends", "expects", "will" and similar expressions. The forward-looking statements made in this news release are stated as at May 8, 2025, represent the Company's current expectations, estimates and projections regarding future events and are not historical facts. These statements are not a guarantee of future performance and involve assumptions and risks and uncertainties that are difficult to predict. Some of these assumptions and risks and uncertainties are described further in the Company's management's discussion and analysis for the year ended December 31, 2024 under the heading "Forward-looking Statements", in the risk factors set out in the Company's annual information form for the year ended December 31, 2024 under the heading "Risk Factors", and in the Company's interim management's discussion and analysis for the quarter ended March 31, 2025 under the heading "Risk Management", in the other factors detailed in the Company's annual and interim financial statements and in the Company's other filings with Canadian and U.S. securities regulators, which are available for review at www.sedarplus.ca and www.sec.gov, respectively. Actual results may differ materially from those expressed, implied or forecasted in such forward-looking statements and there is no assurance that OSFI and/or the TSX will approve the 2025 NCIB or that any common shares will be purchased under the 2025 NCIB.

The Company does not undertake any obligation to update or revise its forward-looking statements to reflect events or circumstances after the date of this news release or to reflect the occurrence of unanticipated events, except as required by law.

About Sun Life

Sun Life is a leading international financial services organization providing asset management, wealth, insurance and health solutions to individual and institutional Clients. Sun Life has operations in a number of markets worldwide, including Canada, the U.S., the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda. As of March 31, 2025, Sun Life had total assets under management of $1.55 trillion. For more information, please visit sunlife.com.

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

Note to editors: All figures in Canadian dollars

To contact Sun Life media relations, please email Media.Relations@sunlife.com

To contact Sun Life investor relations, please email Investor_Relations@sunlife.com 

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SOURCE Sun Life Financial Inc.

FAQ

What is the size of Sun Life's (SLF) new share buyback program for 2025?

Sun Life plans to purchase up to 10,000,000 additional common shares under the new 2025 NCIB, with total approval being sought for 25,000,000 shares including the 2024 repurchased shares.

How many shares has Sun Life (SLF) repurchased under its current 2024 buyback program?

Under the 2024 NCIB, Sun Life has repurchased 13,018,997 shares out of the authorized 15,000,000 shares at an average price of $80.79 per share as of May 7, 2025.

What percentage of Sun Life's outstanding shares does the 2025 buyback represent?

The total 25,000,000 shares under the 2025 NCIB represents approximately 4.1% of Sun Life's 564,731,703 common shares outstanding as of May 5, 2025.

What approvals does Sun Life need for its 2025 share buyback program?

Sun Life needs approval from both the Office of the Superintendent of Financial Institutions (OSFI) and the Toronto Stock Exchange (TSX) to proceed with the 2025 NCIB.