##### 



Sun Life Financial reports
record operating EPS, up 12.3% over Q3 2004
Operating ROE hits 13.1%
 Toronto  October 27, 2005 
   Financial Highlights
 
    
    Operating ROE increased 120 basis points to 13.1% from 11.9%
in the third quarter of 2004, exceeding the Companys goal to
increase its operating ROE by 75 to 100 basis points for the
year.
    
    Operating EPS for the quarter increased 12.3% compared to the
third quarter of 2004. Excluding the negative impact of the
Canadian dollars appreciation against foreign currencies,
operating EPS were up 18% for the quarter. This result
exceeded the Companys 2005 target of 10% constant currency
earnings growth.
    
    In the third quarter of 2005, Sun Life Financial Inc.
repurchased approximately 2 million common shares at an
average price of $43.91 under its share repurchase program.
Year-to-date 11.5 million shares have been repurchased for
$464 million, on track to meet or exceed the stated objective
of $500 million for the year.
    
    Sun Life Financial Inc. issued $325 million of
Non-Cumulative Preferred Shares, Series 2 priced at $25 per
share and paying non-cumulative quarterly dividends of $0.30
per share, yielding 4.8% annually. The offering closed on
July 15, 2005 and provides Sun Life Financial with
attractive, low-cost capital.




---



##### 



Business Highlights
 Corporate Developments
 
    
    Sun Life Financial closed the acquisition of CMG Asia and
CommServe Financial on October 18, 2005. As a result of the
transaction, Sun Life Financial Hong Kong is now among the
top ten life insurance organizations in Hong Kong as measured
by sales, with a proprietary sales force of approximately
1,700 advisors. The transaction is expected to be accretive
to earnings and ROE in 2006.
    
    Consistent with its ongoing focus on building scale in core
strategic markets and exiting those where it does not have a
meaningful presence, Sun Life Financial sold its 31.72%
interest in Cuprum, a Chilean pension manager.
    
    Sun Life Financial has been selected as one of Canadas Top
100 employers out of more than 7,500 employers who were
invited to compete in the annual listing published by
Macleans magazine.
 Sun Life Financial Canada (SLF Canada)
 
    
    Focused efforts on asset retention in Group Retirement
Services continued to produce positive results as retained
assets were $135 million for the quarter and $346 million
year-to-date, a 65% increase over last year.
    
    Group Retirement Services continued to lead the Canadian
market, with 48% of defined contribution pension sales for
the first half of 2005.
    
    Group Benefits strengthened its mandate with Canada Post by
securing the Life Benefits plan for its 64,000 members.
    
    Individual insurance sales in the third quarter were up 20%
over the third quarter of 2004, reflecting productivity gains
in the Clarica Sales Force and continued growth in the
wholesale channel.
 Sun Life Financial U.S. (SLF U.S.)
 
    
    The variable annuity suite of products is being enhanced with
the launch of a new guaranteed living benefit, Secured
ReturnsSM for Life. This new rider includes a
guaranteed withdrawal benefit for life, while maintaining the
innovative feature of Sun Life Financials Secured
ReturnsSM
2 rider  a refund of fees if the
guarantee is not needed.
    
    Group Life & Health showed strong growth, with gross sales up
US$22 million or 51% over third quarter 2004. Business in
force grew 19% since the third quarter of last year.
    
    Individual Life announced the introduction of Sun ValueSM
Single Premium Universal Life Insurance in New York,
featuring simplified underwriting processes. Sun ValueSM is
available to customers through financial institutions in New
York State and will soon be available to bank and credit
union customers in other states.
 MFS Investment Management (MFS)
 
    
    MFS generated positive net flows for the fourth consecutive
quarter, producing US$1.4 billion in net sales during the
third quarter of 2005. Year-to-date net flows were US$5.6
billion, up US$14.6 billion compared to the same period in
2004.




---



##### 




    
    Assets under management (AUM) increased US$7 billion to
US$157.4 billion at the end of September 2005.
    
    MFS has consolidated multiple offshore retail fund families
into new MFS Meridian Funds registered in Luxembourg, with
over US$6 billion in assets. The new MFS Meridian Funds offer
investors in markets across Europe a comprehensive and
flexible range of investment choices. The Funds are Euro
dollars, pounds sterling and U.S. dollar denominated and
offer both accumulation and income shares.
 Sun Life Financial Asia (SLF Asia)
 
    
    Birla Sun Life Asset Management Company Limited (BSLAMC)
expanded its operations with the acquisition of the Indian
mutual fund business of Alliance Capital Mutual Fund. BSLAMC
now has approximately CDN$3.5 billion under management.
    
    Sun Life Everbright extended its reach by commencing
operations in Zhejiang province with the opening of a third
branch office in the provincial capital city of Hangzhou.
 Use of Non-GAAP Financial Measures
   Analysts Conference Call
  Sun Life Financial




---



##### 



Note to Editors: All figures shown in Canadian dollars unless otherwise noted.
 Media Relations Contact:
    
    Investor Relations Contact:Susan Jantzi
    
    Kevin StrainManager, Media Relations
    
    Vice-President, Investor RelationsTel: 519-888-3160
    
    Tel: 416-204-8163susan.Jantzi@sunlife.com
    
    investor.relations@sunlife.com




---



##### 



Managements Discussion & Analysis
 
 Earnings and Profitability
  FINANCIAL SUMMARY
 Quarterly Results
    
    
    Year to DateQ3/05
    
    Q2/05
    
    Q1/05
    
    Q4/04
    
    Q3/04
    
    
    2005
    
    2004Revenues ($mm)
    
    
    5,530
    
    
    
    6,026
    
    
    
    5,119
    
    
    
    5,269
    
    
    
    5,390
    
    
    
    
    16,675
    
    
    
    16,479Common Shareholders Net Income ($mm)
    
    
    430
    
    
    
    477
    
    
    
    458
    
    
    
    438
    
    
    
    439
    
    
    
    
    1,365
    
    
    
    1,242Operating Earnings1($mm)
    
    
    481
    
    
    
    477
    
    
    
    458
    
    
    
    438
    
    
    
    439
    
    
    
    
    1,416
    
    
    
    1,301Earnings Per
Common Share (EPS) ($)
    
    
    0.74
    
    
    
    0.81
    
    
    
    0.77
    
    
    
    0.74
    
    
    
    0.73
    
    
    
    
    2.32
    
    
    
    2.07Operating EPS1($)
    
    
    0.82
    
    
    
    0.81
    
    
    
    0.77
    
    
    
    0.74
    
    
    
    0.73
    
    
    
    
    2.40
    
    
    
    2.17Fully diluted operating EPS1($)
    
    
    0.82
    
    
    
    0.81
    
    
    
    0.77
    
    
    
    0.73
    
    
    
    0.73
    
    
    
    
    2.40
    
    
    
    2.16Return on Common Equity (ROE) (%)
    
    
    11.7
    
    
    
    13.0
    
    
    
    12.6
    
    
    
    12.1
    
    
    
    11.9
    
    
    
    
    12.6
    
    
    
    11.4Operating ROE1(%)
    
    
    13.1
    
    
    
    13.0
    
    
    
    12.6
    
    
    
    12.1
    
    
    
    11.9
    
    
    
    
    13.0
    
    
    
    11.9Average Common Shares Outstanding (mm)
    
    
    584.2
    
    
    
    587.4
    
    
    
    591.8
    
    
    
    595.2
    
    
    
    598.7
    
    
    
    
    587.8
    
    
    
    599.8S&P 500 Index (daily average)
    
    
    1,223
    
    
    
    1,181
    
    
    
    1,192
    
    
    
    1,162
    
    
    
    1,104
    
    
    
    
    1,199
    
    
    
    1,120S&P 500 Index (close)
    
    
    1,229
    
    
    
    1,191
    
    
    
    1,181
    
    
    
    1,212
    
    
    
    1,115
    
    
    
    
    1,229
    
    
    
    1,115
 2
    
 1
    
    See Use of Non-GAAP
Financial Measures. Operating earnings,
operating EPS and operating ROE exclude the
charge of $51 million related to the sale of
Cuprum taken in the third quarter of 2005 and
the $59 million regulatory charge against MFS
taken in the first quarter of 2004.2
    
    Or together with its subsidiaries and
joint ventures the Company or Sun Life Financial.




---



##### 



Performance by Business Group
  SLF Canada
  Quarterly Results
    
    
    Year to DateQ3/05
    
    Q2/05
    
    Q1/05
    
    Q4/04
    
    Q3/04
    
    
    2005
    
    2004Revenues ($mm)
    
    
    2,120
    
    
    
    2,104
    
    
    
    2,146
    
    
    
    2,029
    
    
    
    1,960
    
    
    
    
    6,370
    
    
    
    6,133Premiums & Deposits ($mm)
    
    
    3,501
    
    
    
    3,800
    
    
    
    5,412
    
    
    
    3,900
    
    
    
    3,942
    
    
    
    
    12,713
    
    
    
    12,856Common Shareholders Net Income ($mm)Individual Insurance & Investments
    
    
    128
    
    
    
    145
    
    
    
    168
    
    
    
    126
    
    
    
    121
    
    
    
    
    441
    
    
    
    385Group Benefits
    
    
    69
    
    
    
    54
    
    
    
    38
    
    
    
    63
    
    
    
    66
    
    
    
    
    161
    
    
    
    189Group Retirement Services &
Institutional Investments
    
    
    31
    
    
    
    37
    
    
    
    39
    
    
    
    35
    
    
    
    34
    
    
    
    
    107
    
    
    
    97Total
    
    
    228
    
    
    
    236
    
    
    
    245
    
    
    
    224
    
    
    
    221
    
    
    
    
    709
    
    
    
    671ROE (%)
    
    
    13.5
    
    
    
    14.2
    
    
    
    14.8
    
    
    
    13.7
    
    
    
    13.4
    
    
    
    
    14.3
    
    
    
    13.5
   
    
    Individual Insurance & Investments earnings increased 6% over
the third quarter of 2004 due to higher investment income, lower unit
costs and
improved earnings from the investment in CI Financial.
    
    Improved morbidity experience and changes to reinsurance
arrangements contributed to the 5% earnings growth in Group
Benefits over the third quarter of 2004.
    
    The reduction in Group Retirement Services & Institutional
Investments earnings over the third quarter of 2004 was
attributable to more favourable mortality experience in the
third quarter of 2004.




---



##### 



SLF U.S.
  Quarterly Results
    
    
    Year to DateQ3/05
    
    Q2/05
    
    Q1/05
    
    Q4/04
    
    Q3/04
    
    
    2005
    
    2004Revenues (US$mm)
    
    
    2,020
    
    
    
    2,281
    
    
    
    1,539
    
    
    
    1,825
    
    
    
    1,832
    
    
    
    
    5,840
    
    
    
    5,420Revenues (C$mm)
    
    
    2,443
    
    
    
    2,835
    
    
    
    1,889
    
    
    
    2,228
    
    
    
    2,399
    
    
    
    
    7,167
    
    
    
    7,201Common Shareholders Net Income
(US$mm)Annuities
    
    
    78
    
    
    
    72
    
    
    
    34
    
    
    
    45
    
    
    
    44
    
    
    
    
    184
    
    
    
    139Individual Life
    
    
    21
    
    
    
    20
    
    
    
    25
    
    
    
    19
    
    
    
    19
    
    
    
    
    66
    
    
    
    62Group Life & Health
    
    
    10
    
    
    
    15
    
    
    
    6
    
    
    
    12
    
    
    
    7
    
    
    
    
    31
    
    
    
    23Total (US$mm)
    
    
    109
    
    
    
    107
    
    
    
    65
    
    
    
    76
    
    
    
    70
    
    
    
    
    281
    
    
    
    224Total (C$mm)
    
    
    133
    
    
    
    132
    
    
    
    81
    
    
    
    93
    
    
    
    92
    
    
    
    
    346
    
    
    
    298ROE (%)
    
    
    13.6
    
    
    
    13.8
    
    
    
    8.6
    
    
    
    10.5
    
    
    
    9.9
    
    
    
    
    12.1
    
    
    
    10.4
   
    
    Annuities earnings increased US$34 million compared to the third
quarter of 2004 and US$45 million year-to-date as a result of
improved fixed annuity spreads and increased earnings from equity
market movement. Improvements in fixed annuity spreads were the
result of interest rate management, improved investment income and
strong credit performance.
    
    Group Life & Health earnings increased $3 million compared to the
third quarter of 2004 due to improved mortality. Year-to-date
earnings increased $8 million over 2004 primarily as a result of
improved persistency and claims experience.
 MFS Investment Management
  Quarterly Results
    
    
    Year to DateQ3/05
    
    Q2/05
    
    Q1/05
    
    Q4/04
    
    Q3/04
    
    
    2005
    
    2004Revenues (US$mm)
    
    
    342
    
    
    
    332
    
    
    
    332
    
    
    
    330
    
    
    
    316
    
    
    
    
    1,006
    
    
    
    976Revenues (C$mm)
    
    
    412
    
    
    
    413
    
    
    
    407
    
    
    
    402
    
    
    
    414
    
    
    
    
    1,232
    
    
    
    1,298Common Shareholders Net
Income/(Loss) (US$mm)
    
    
    38
    
    
    
    34
    
    
    
    37
    
    
    
    36
    
    
    
    32
    
    
    
    
    109
    
    
    
    52Operating Earnings (US$mm)
    
    
    38
    
    
    
    34
    
    
    
    37
    
    
    
    36
    
    
    
    32
    
    
    
    
    109
    
    
    
    97Common Shareholders Net
Income/(Loss) (C$mm)
    
    
    46
    
    
    
    42
    
    
    
    46
    
    
    
    44
    
    
    
    42
    
    
    
    
    134
    
    
    
    70Operating Earnings (C$mm)
    
    
    46
    
    
    
    42
    
    
    
    46
    
    
    
    44
    
    
    
    42
    
    
    
    
    134
    
    
    
    129Average Net Assets (US$B)
    
    
    155
    
    
    
    147
    
    
    
    145
    
    
    
    140
    
    
    
    132
    
    
    
    
    149
    
    
    
    138Assets Under Management (US$B)
    
    
    157
    
    
    
    150
    
    
    
    145
    
    
    
    146
    
    
    
    134
    
    
    
    
    157
    
    
    
    134Net Sales/(Redemptions) (US$B)
    
    
    1.4
    
    
    
    3.5
    
    
    
    0.7
    
    
    
    0.1
    
    
    
    (2.5
    )
    
    
    
    5.6
    
    
    
    (9.0
    )Market Movement (US$B)
    
    
    6.3
    
    
    
    1.8
    
    
    
    (2.4
    )
    
    
    12.1
    
    
    
    (0.9
    )
    
    
    
    5.7
    
    
    
    2.7S&P 500 Index (daily average)
    
    
    1,223
    
    
    
    1,181
    
    
    
    1,192
    
    
    
    1,162
    
    
    
    1,104
    
    
    
    
    1,199
    
    
    
    1,120




---



##### 



SLF Asia
  Quarterly Results
    
    
    Year to DateQ3/05
    
    Q2/05
    
    Q1/05
    
    Q4/04
    
    Q3/04
    
    
    2005
    
    2004Revenues ($mm)
    
    
    178
    
    
    
    205
    
    
    
    214
    
    
    
    239
    
    
    
    189
    
    
    
    
    597
    
    
    
    529Common
Shareholders Net
Income ($mm)
    
    
    10
    
    
    
    19
    
    
    
    6
    
    
    
    18
    
    
    
    10
    
    
    
    
    35
    
    
    
    27ROE (%)
    
    
    9.8
    
    
    
    17.6
    
    
    
    5.4
    
    
    
    16.8
    
    
    
    9.3
    
    
    
    
    10.8
    
    
    
    8.2
   Corporate




---



##### 



Quarterly Results
    
    
    Year to DateQ3/05
    
    Q2/05
    
    Q1/05
    
    Q4/04
    
    Q3/04
    
    
    2005
    
    2004Revenues ($mm)
    
    
    454
    
    
    
    538
    
    
    
    530
    
    
    
    477
    
    
    
    534
    
    
    
    
    1,522
    
    
    
    1,660Common
Shareholders Net
Income/(Loss) ($mm)SLF U.K.
    
    
    48
    
    
    
    39
    
    
    
    47
    
    
    
    45
    
    
    
    39
    
    
    
    
    134
    
    
    
    128Reinsurance
    
    
    (6
    )
    
    
    15
    
    
    
    14
    
    
    
    26
    
    
    
    21
    
    
    
    
    23
    
    
    
    46Other
    
    
    (29
    )
    
    
    (6
    )
    
    
    19
    
    
    
    (12
    )
    
    
    14
    
    
    
    
    (16
    )
    
    
    2Total
    
    
    13
    
    
    
    48
    
    
    
    80
    
    
    
    59
    
    
    
    74
    
    
    
    
    141
    
    
    
    176
  
    
    Prior year earnings in SLF U.K. reflected poor mortality
experience in the Group Life block of business, which is now
substantively run off following the sale of the renewal rights on
this business in 2003.
    
    The current quarter results in Reinsurance reflected the impact of
actuarial assumption and methodology changes on in-force business
in addition to poor mortality experience in the quarter.
    
    The loss of $29 million in Corporate Other reflected the net loss
of $51 million on the Cuprum sale and foreign exchange losses
which were partially offset by the resolution of a prior year tax
issue.
  Additional Financial Disclosure
 Revenue




---



##### 



Assets Under Management
  (i)
    
    an increase of $11.2 billion from market movements, and(ii)
    
    net sales of mutual, managed and segregated funds of $1.1 billion.
  (i)
    
    an increase of $32.3 billion from higher capital markets, and(ii)
    
    $8.9 billion of net sales of mutual, managed and segregated funds, partially offset by
a(iii)
    
    $25.6 billion decrease from the strengthening of the Canadian dollar against foreign
currencies.
 Changes in the Balance Sheet and Shareholders Equity




---



##### 



Cash Flows
  Quarterly Results
    
    
    Year to Date($mm)
    
    Q3/05
    
    Q3/04
    
    
    2005
    
    2004Cash and cash equivalents, beginning of period
    
    
    4,343
    
    
    
    3,628
    
    
    
    
    3,748
    
    
    
    3,175Cash flows provided by (used in):Operating activities
    
    
    18
    
    
    
    672
    
    
    
    
    1,918
    
    
    
    2,173Financing activities
    
    
    72
    
    
    
    (225
    )
    
    
    
    (205
    )
    
    
    (505
    )Investing activities
    
    
    (697
    )
    
    
    (808
    )
    
    
    
    (1,689
    )
    
    
    (1,641
    )Changes due to fluctuations in exchange rates
    
    
    (163
    )
    
    
    (83
    )
    
    
    
    (199
    )
    
    
    (18
    )Increase in cash and cash equivalents
    
    
    (770
    )
    
    
    (444
    )
    
    
    
    (175
    )
    
    
    9Cash and cash equivalents, end of period
    
    
    3,573
    
    
    
    3,184
    
    
    
    
    3,573
    
    
    
    3,184Short-term securities, end of period
    
    
    2,709
    
    
    
    2,747
    
    
    
    
    2,709
    
    
    
    2,747Total cash, cash equivalents and short-term
securities
    
    
    6,282
    
    
    
    5,931
    
    
    
    
    6,282
    
    
    
    5,931




---



##### 



Risk Management
   Outlook
  Regulatory and Legal Matters
    Use of Non-GAAP Financial Measures




---



##### 



Forward-Looking Statements