##### 



(SUN LIFE LETTERHEAD) Sun Life Financial reports
record quarterly earnings of $458 million for Q1 2005
Operating earnings per share grew to $0.77, up 9% over Q1 2004
Operating ROE improved 60 basis points to 12.6% Toronto  April 28, 2005 Sun Life Financial Inc. (NYSE/TSX: SLF) today announced record
operating earnings of $458 million or $0.77 per share for the quarter ended March 31, 2005.
Operating earnings for the quarter increased 8% compared to the first quarter of 2004 and operating
earnings per common share (EPS) were up 9% over the same period. Operating return on common equity
(ROE) grew to 12.6% for the quarter, up from 12.0% for the first quarter of 2004. The financial
results presented in this press release are unaudited. Strength in sales production in the first quarter of 2005 was supported by the US$728 million in
net sales at MFS Investment Management, a turnaround of approximately US$2 billion compared to a
year ago, and by a 45% increase in market-based RRSP product sales in SLF Canada. Donald A. Stewart, Chief Executive Officer, said, Our strategy of diversifying across geographies
and between protection and wealth management products has once again generated strong results.
Notably, the Companys operating ROE improved by 60 basis points over the first quarter of 2004. We continue to write profitable business, as evidenced by the value of new business generated by
our sales. In 2005 Sun Life Financial is placing significant focus on expanding distribution
capacity in all of our operations. Significant additions have been made to the number of
wholesalers in the annuity sales force in the U.S. and the third-party distribution channel in
Canada. In China, we have received initial approval to commence operations in a third city and have
obtained a license to sell group insurance in that country, he said. Financial Highlights:  l

Operating ROE increased 60 basis points to 12.6% from 12.0% in the first quarter of 2004.l

Operating EPS for the quarter increased 9% compared to the first quarter of 2004. Operating EPS would have
been up 13% for the quarter except for the negative impact resulting from the strengthening of the Canadian
dollar against foreign currencies compared to the exchange rates in the first quarter of 2004.l

In the first quarter of 2005, Sun Life Financial Inc. repurchased approximately 4 million common shares at
an average price of $39.48 under its share repurchase program.




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##### 



First Quarter Earnings Business Highlights Corporate Developments  l

On January 4, 2005, Sun Life Financial completed a reorganization under which most of its asset management
businesses in Canada and the United States were transferred to a newly incorporated subsidiary. The
reorganization will allow the Company to optimize its capital structure and will give it increased
flexibility by positioning it to benefit from new capital rules proposed by the Office of the Superintendent
of Financial Institutions in Canada.l

Sun Life Financial Inc. issued $400 million of Class A Non-Cumulative Perpetual Preferred Shares, Series 1
yielding 4.75% annually, providing it with attractive, low cost capital. Sun Life Assurance Company of
Canada announced its intention to redeem its Non-Cumulative Redeemable Class E Preferred Shares, Series 1.l

Sun Life Financial ranked first among insurance companies in the Report on Businessmagazines second annual
Corporate Social Responsibility ranking.l

The Boards of Directors of Sun Life Financial Inc. and Sun Life Assurance Company of Canada announced their
intention to appoint Ronald W. Osborne as non-executive Chairman. Mr. Osbornes appointment is pending his
re-election as a director by shareholders and voting policyholders at the companies upcoming annual
meetings on May 11, 2005.l

Sun Life Financial has appointed Robert W. Mansbridge as Executive Vice-President and Chief Information
Officer, responsible for the Companys shared technology and business services, information technology
architecture and information security. Sun Life Financial Canada (SLF Canada)  l

Group Retirement Services successfully completed the implementation of the Deferred Profit Sharing Plans
(DPSP) for employees of the Canadian operations of the Magna International Inc. group of companies (Magna).
The addition of the DPSP plan makes Sun Life Financial the sole provider of group retirement services to all
of Magnas Canadian employees. Magnas DPSP is one of the largest defined contribution plans to change
providers in Canada.l

Group Retirement Services has introduced the Milestone series of segregated funds, the first lifecycle funds
for employer-sponsored group retirement and savings plans in Canada to feature a guaranteed unit value at
maturity.l

In a survey conducted by Research Dynamics, advisors ranked Group Retirement Services number one in all
categories, including customer service satisfaction, product flexibility, innovation and communication.l

The Individual Insurance & Investments business unit recorded strong RRSP campaign results, with $687 million in
market-based product sales, up 45% over sales in the first quarter of 2004.l

Individual Insurance & Investments introduced Sun Critical Illness Insurance (Sun CII). This new product
targets the affluent and business markets and complements Clarica CII, which has been a market leader since
1997 and addresses the needs of the mid-market.  l

SLF Canada announced it is expanding its Long-Term Care Insurance (LTCI) distribution channel and investing
in technology to automate the LTCI application, policy issue and administration systems. LTCI sales were
strong in the first quarter, up 33% over the first quarter of 2004. 2Sun Life Financial Inc. / First Quarter 2005




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##### 



First Quarter Earnings Sun Life Financial U.S. (SLF U.S.)  l

As part of its continuing efforts to achieve its strategic objective to grow annuity sales in the U.S., the
Company increased its wholesale sales force to 57 at March 31, 2005, up from 32 at the end of 2004. At April
25, 2005, the sales force stood at 63.l

The Group Life & Health division entered into a partnership with ComPsych Corporation (ComPsych) to provide
a comprehensive employee assistance program to its group disability customers, including a wide range of
work-life services. ComPsych is the worlds largest provider of employee assistance programs.l

The Group Life & Health division introduced a global security solution called SecurAssist®. SecurAssist®
will be offered through an arrangement with Assist America Inc., the largest U.S. provider of global
emergency services through employee benefits. SecurAssist® helps employers prevent and plan for security
threats anywhere in the world. MFS Investment Management (MFS)  l

MFS was recognized for the performance of its funds. In the recent Barrons Fund Families Survey, which
ranks fund firms annually based on their performance, MFS improved to the number 12 ranking overall in 2004
out of 73 firms surveyed during the year.l

MFS continued to produce positive net sales with US$728 million of net inflows for the three-month period
ended March 31, 2005. Sun Life Financial Asia (SLF Asia)  l

Birla Sun Life Insurance Company Limited, the Companys India life insurance joint venture, completed a very
successful fourth year of operation with individual life insurance sales up 74% over the prior year.l

Sun Life Everbright Life Insurance Company Limited, a joint venture with China Everbright Group Limited, was
granted approval by the China Insurance Regulatory Commission to begin preparing operations to sell life
insurance in Hangzhou. Hangzhou has a population of 6.4 million and is the capital of the Zhejiang Province.
Sun Life Financial anticipates that sales in Hangzhou will commence in the third quarter of 2005 .l

Sun Life Everbright has obtained a license to begin selling group insurance in China. Use of Non-GAAP Financial Measures Management evaluates the Companys performance on the basis of financial measures prepared in
accordance with Canadian generally accepted accounting principles (GAAP), including earnings, EPS
and ROE. Management also measures the Companys performance based on certain non-GAAP measures,
including operating earnings, and other financial measures based on operating earnings, including
operating EPS and operating ROE, that exclude certain significant items that are not operational or
ongoing in nature. Management also uses ROE for its business segments to measure their performance.
The ROE for the business segments is based on an allocation of common equity or risk capital to the
business segments using assumptions, judgments and methodologies that are regularly reviewed and
revised by management. 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 3www.sunlife.com




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##### 



First Quarter Earnings 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
Managements Discussion and Analysis (MD&A) and in the Supplementary Financial Information package
that is available in the Investor Relations  Financial Publications section of Sun Life
Financials website, www.sunlife.com. Operating earnings, operating EPS and operating ROE exclude the $59 million charge taken in the
first quarter of 2004 with respect to the settlement in March 2004 of administrative proceedings by
the U.S. Securities and Exchange Commission against MFS. Analysts Conference Call The Companys first quarter 2005 financial results and 2004 embedded value will be reviewed at
a conference call today at 4:00 p.m. EST. To listen to the call via live audio webcast and to view
the presentation slides, please visit our website and double click the Q1 Results link from the
homepage 10 minutes prior to the start of the presentation. A link to our webcast page, where you
can access the webcast will be provided, along with links to related information. The webcast and
presentation will be archived on our website following the event. 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. Note to Editors: All figures shown in Canadian dollars unless otherwise noted. Media Relations Contact:
    
    Investor Relations Contact:Susan Jantzi
    
    Tom ReidManager, Media Relations
    
    Vice-President, Investor RelationsTel: 519-888-3160
    
    Tel: 416-204-8163susan.jantzi@sunlife.com
    
    investor.relations@sunlife.com
 4Sun Life Financial Inc. / First Quarter 2005




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##### 



First Quarter Earnings Earnings and Profitability FINANCIAL SUMMARY  Quarterly ResultsQ1/05
    
    
    Q4/04
    
    
    Q3/04
    
    
    Q2/04
    
    
    Q1/04Revenues ($mm)
    
    
    5,119
    
    
    
    5,269
    
    
    
    5,390
    
    
    
    5,551
    
    
    
    5,538Common Shareholders Net Income ($mm)
    
    
    458
    
    
    
    438
    
    
    
    439
    
    
    
    438
    
    
    
    365Operating Earnings2($mm)
    
    
    458
    
    
    
    438
    
    
    
    439
    
    
    
    438
    
    
    
    424Earnings Per Common Share (EPS) ($)
    
    
    0.77
    
    
    
    0.74
    
    
    
    0.73
    
    
    
    0.73
    
    
    
    0.61Operating EPS2($)
    
    
    0.77
    
    
    
    0.74
    
    
    
    0.73
    
    
    
    0.73
    
    
    
    0.71Fully diluted operating EPS2($)
    
    
    0.77
    
    
    
    0.73
    
    
    
    0.73
    
    
    
    0.72
    
    
    
    0.70Return on Common Equity (ROE) (%)
    
    
    12.6
    
    
    
    12.1
    
    
    
    11.9
    
    
    
    12.0
    
    
    
    10.3Operating ROE2(%)
    
    
    12.6
    
    
    
    12.1
    
    
    
    11.9
    
    
    
    12.0
    
    
    
    12.0Average Common Shares Outstanding (mm)
    
    
    591.8
    
    
    
    595.2
    
    
    
    598.7
    
    
    
    600.7
    
    
    
    600.0S&P500 Index (daily average)
    
    
    1,192
    
    
    
    1,162
    
    
    
    1,104
    
    
    
    1,123
    
    
    
    1,132S&P500 Index (close)
    
    
    1,181
    
    
    
    1,212
    
    
    
    1,115
    
    
    
    1,141
    
    
    
    1,126
   Certain comparative figures have been restated to conform with the presentation adopted in the first quarter of 2005. Sun Life Financial Inc.1 reported a $34 million increase in operating
earnings2 for the first quarter ended March 31, 2005 compared to the first quarter of
2004. Earnings were up despite a decrease of $13 million, or 3 cents per share, due to the
depreciation of foreign currencies against the Canadian dollar compared to first quarter 2004
exchange rates. As a result of the increase in operating earnings and Sun Life Financial Inc.s share
repurchase program, operating EPS grew from $0.71 per share for the first quarter of 2004 to $0.77
per share for the same period in 2005, a 9% increase, and operating ROE increased 60 basis points,
from 12.0% for the first quarter of 2004 to 12.6% for the first quarter of 2005. Common shareholders net income of $458 million for the first quarter of 2005 was up $93 million
compared to the first quarter of 2004. EPS was $0.77 per share, up $0.16 per share compared to the
first quarter of 2004. As previously disclosed, common shareholders net income in the first
quarter of 2004 included regulatory charges against MFS.   1
    
    Or together with its subsidiaries and
joint ventures the Company or Sun Life Financial.2
    
    See Use of Non-GAAP Financial
Measures. 5www.sunlife.com




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##### 



First Quarter Earnings Performance by Business Group The Company has five reportable segments: SLF Canada, SLF U.S., MFS, SLF Asia, and Corporate.
Effective January 1, 2005, the Company realigned certain of its reportable segments whereby the
Reinsurance business unit, previously reported as part of SLF Canada, and SLF U.K. are reported as
part of Corporate. This change reflects the ongoing evolution of Sun Life Financials businesses
and has no impact on the Companys consolidated results. The discussion in the remainder of this
MD&A is based on the current segmentation reflecting the realignment of reportable segments
described above. Prior period results have been restated on this basis to facilitate comparison.
Where appropriate, information on a reportable segment has been presented both in Canadian dollars
and the segments functional currency to facilitate the analysis of underlying business trends. ROE
for the business segments is a non-GAAP financial measure as outlined under Use of Non-GAAP
Financial Measures. Additional details of the segments and the purpose and use of the segmented
information are outlined in Note 5 to Sun Life Financial Inc.s first quarter 2005 Interim
Consolidated Financial Statements, which are prepared in accordance with Canadian GAAP. SLF Canada Quarterly ResultsQ1/05
    
    
    Q4/04
    
    
    Q3/04
    
    
    Q2/04
    
    
    Q1/04Revenues ($mm)
    
    
    2,146
    
    
    
    2,029
    
    
    
    1,960
    
    
    
    2,032
    
    
    
    2,141Common Shareholders Net Income ($mm)Individual Insurance & Investments
    
    
    168
    
    
    
    126
    
    
    
    121
    
    
    
    139
    
    
    
    125Group Benefits
    
    
    38
    
    
    
    63
    
    
    
    66
    
    
    
    47
    
    
    
    76Group Retirement Services &
Institutional Investments
    
    
    39
    
    
    
    35
    
    
    
    34
    
    
    
    34
    
    
    
    29Total
    
    
    245
    
    
    
    224
    
    
    
    221
    
    
    
    220
    
    
    
    230ROE (%)
    
    
    14.8
    
    
    
    13.7
    
    
    
    13.4
    
    
    
    13.2
    
    
    
    13.7
   Certain comparative figures have been restated to conform with the presentation adopted in the second
quarter of 2004 and first quarter of 2005. In the first quarter of 2005, SLF Canadas earnings increased 7% over the first quarter of
2004 primarily due to favourable annuity mortality experience, the benefits of reduced unit
expenses, increased fee income and favourable credit experience, partially offset by lower Group
Benefits results. Premiums and deposits for the first quarter of 2005 were $5.4 billion, up 19%
over the first quarter of 2004. Earnings increased 9% over the fourth quarter of 2004 for the reasons mentioned above as well as
increased earnings from the investment in CI Funds Management Inc. (CI Funds). ROE of 14.8% for the
quarter increased 110 basis points over both the first and fourth quarters of 2004.  l

Individual Insurance & Investments earnings increased 34% over the first quarter of 2004
due to favourable annuity mortality and credit experience in individual wealth and the
benefits of reduced unit expenses in individual life insurance. Earnings increased 33% over
the fourth quarter of 2004 and included increased earnings from the investment in CI Funds in
addition to the above-mentioned items. 6Sun Life Financial Inc. / First Quarter 2005




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##### 



First Quarter Earnings  l

First quarter 2005 earnings for Group Benefits were lower than in the first and fourth quarters
of 2004. The earnings in the first quarter of 2004 reflected exceptional mortality experience
which did not recur in the first quarter of 2005. In comparison with the fourth quarter of
2004, earnings in the first quarter of 2005 were negatively affected by seasonal factors in
health and morbidity experience. First quarter 2005 results were also affected by additional
investments to further enhance customer service.l

Group Retirement Services & Institutional Investments earnings increased 34% over the first
quarter of 2004 partially due to improvements in fee income and favourable credit experience.
Assets under management for Group Retirement Services & Institutional Investments, including
McLean Budden Limited, continued to increase as a result of strong sales in the first quarter
of 2005 and higher equity market levels. SLF U.S. Quarterly ResultsQ1/05
    
    
    Q4/04
    
    
    Q3/04
    
    
    Q2/04
    
    
    Q1/04Revenues (US$mm)
    
    
    1,539
    
    
    
    1,825
    
    
    
    1,832
    
    
    
    1,807
    
    
    
    1,781Revenues (C$mm)
    
    
    1,889
    
    
    
    2,228
    
    
    
    2,399
    
    
    
    2,453
    
    
    
    2,349Common Shareholders Net Income (US$mm)Annuities
    
    
    34
    
    
    
    45
    
    
    
    44
    
    
    
    33
    
    
    
    62Individual Life
    
    
    25
    
    
    
    19
    
    
    
    19
    
    
    
    33
    
    
    
    10Group Life & Health
    
    
    6
    
    
    
    12
    
    
    
    7
    
    
    
    14
    
    
    
    2Total (US$mm)
    
    
    65
    
    
    
    76
    
    
    
    70
    
    
    
    80
    
    
    
    74Total (C$mm)
    
    
    81
    
    
    
    93
    
    
    
    92
    
    
    
    109
    
    
    
    97ROE (%)
    
    
    8.6
    
    
    
    10.5
    
    
    
    9.9
    
    
    
    11.2
    
    
    
    10.0
   Certain comparative figures have been restated to conform with the presentation adopted in the second quarter of 2004. The appreciation of the Canadian dollar against the U.S. dollar reduced earnings in SLF U.S.
by CDN$6 million in the first quarter of 2005 compared to the first quarter of 2004. First quarter 2005 earnings of US$65 million were 12% lower than in the first quarter of 2004. The
first quarter of 2004 benefited from rising equity markets and an adjustment of prior year tax
accruals. However, the decline in equity markets in the first quarter of 2005 necessitated a
reserve increase of US$22 million. The decrease in first quarter 2005 earnings relative to the fourth quarter of 2004 also reflected
the impact of a decline in closing equity markets and adverse mortality partially offset by
improved credit experience. In addition, positive claims experience in the Group Life & Health
division benefited the fourth quarter of 2004.  l

Annuities earnings decreased US$28 million compared to the first quarter of 2004 primarily
as a result of declining equity markets during the first quarter of 2005 compared to rising
equity markets in the first quarter of 2004 and an adjustment of prior year tax accruals in 2004. The lower value of equity
markets at March 31, 2005 compared to December 31, 2004 contributed significantly to the decline
in earnings from the fourth quarter of 2004. 7www.sunlife.com




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First Quarter Earnings  l

Individual Life earnings were US$15 million higher in the first quarter of 2005 compared to the
first quarter of 2004 primarily due to the offshore universal life business. Earnings in the
first quarter of 2004 were adversely affected by the impact of the low interest environment on
universal life products prior to the implementation of a hedging program in the second quarter
of 2004. Earnings in the first quarter of 2005 were adversely affected by unfavourable mortality
experience and earnings strain resulting from strong sales of corporate-owned life insurance.l

Group Life & Health earnings increased US$4 million in the first quarter of 2005 compared
to the first quarter of 2004 primarily due to adjustments in the first quarter of 2004.
Unfavourable Group Life mortality in the first quarter of 2005 was a major driver of the
decline in earnings as compared to the fourth quarter of 2004. Sun Life Financial Inc. and its U.S. subsidiaries are cooperating with the SEC and other regulators
in their continuing investigations and examinations with respect to various issues, including
market timing related issues, directed brokerage and revenue sharing arrangements with
distributors, and recordkeeping requirements. No regulatory proceedings have been commenced as a
result of these investigations and examinations, but Sun Life Financial Inc. and certain of its
U.S. subsidiaries are engaged in discussions with the SEC that may lead to settled administrative
actions involving those subsidiaries and a provision for the estimated losses for such matters has
been made in the Corporate segment. While it is not possible to predict the final resolution of
these discussions, management expects that the ultimate liability with respect to such matters will
not be material to the consolidated financial condition of the Company. MFS Investment Management Quarterly ResultsQ1/05
    
    
    Q4/04
    
    
    Q3/04
    
    
    Q2/04
    
    
    Q1/04Revenues (US$mm)
    
    
    332
    
    
    
    330
    
    
    
    316
    
    
    
    319
    
    
    
    341Revenues (C$mm)
    
    
    407
    
    
    
    402
    
    
    
    414
    
    
    
    434
    
    
    
    450Common Shareholders Net Income/(Loss) (US$mm)
    
    
    37
    
    
    
    36
    
    
    
    32
    
    
    
    30
    
    
    
    (10
    )Operating Earnings (US$mm)
    
    
    37
    
    
    
    36
    
    
    
    32
    
    
    
    30
    
    
    
    35Common Shareholders Net Income/(Loss) (C$mm)
    
    
    46
    
    
    
    44
    
    
    
    42
    
    
    
    41
    
    
    
    (13
    )Operating Earnings (C$mm)
    
    
    46
    
    
    
    44
    
    
    
    42
    
    
    
    41
    
    
    
    46Average Net Assets (US$B)
    
    
    145
    
    
    
    140
    
    
    
    132
    
    
    
    138
    
    
    
    144Assets Under Management (US$B)
    
    
    145
    
    
    
    146
    
    
    
    134
    
    
    
    137
    
    
    
    142Net New Sales/(Redemptions) (US$B)
    
    
    0.7
    
    
    
    0.1
    
    
    
    (2.5
    )
    
    
    (5.3
    )
    
    
    (1.2
    )Market Movement (US$B)
    
    
    (2.4
    )
    
    
    12.1
    
    
    
    (0.9
    )
    
    
    0.5
    
    
    
    3.1S&P500 Index (daily average)
    
    
    1,192
    
    
    
    1,162
    
    
    
    1,104
    
    
    
    1,123
    
    
    
    1,132
 MFS contributed net income of CDN$46 million for the first quarter of 2005. The appreciation
of the Canadian dollar against the U.S. dollar reduced earnings for MFS by CDN$3 million in the
first quarter of 2005 compared to the first quarter of 2004. 8Sun Life Financial Inc. / First Quarter 2005




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##### 



First Quarter Earnings Net new sales at MFS improved to US$728 million in the first quarter of 2005 compared to net new
sales of US$139 million in the previous quarter and redemptions of US$1.2 billion during the first
quarter a year ago. Strong positive net flows from institutional clients more than offset outflows
of assets in retail mutual funds and annuities. Assets under management declined 1% to US$145
billion due to negative market activity in the first quarter. MFSs contribution to Sun Life Financials earnings in the first quarter of 2005 was US$37 million,
up US$2 million from the first quarter of 2004. As previously disclosed, a number of lawsuits have been commenced in the United States against Sun
Life Financial Inc., MFS, various MFS Funds and certain of their directors, officers and fund
trustees relating to the matters that led to the settlements between MFS and federal and state
regulators in 2004. Additional information concerning these actions is provided in Sun Life
Financial Inc.s annual MD&A and annual and interim financial statements. These actions are at an
early stage and Sun Life Financial Inc. cannot predict their outcome at this time. SLF Asia Quarterly ResultsQ1/05
    
    
    Q4/04
    
    
    Q3/04
    
    
    Q2/04
    
    
    Q1/04Revenues ($mm)
    
    
    214
    
    
    
    239
    
    
    
    189
    
    
    
    182
    
    
    
    158Common Shareholders Net Income ($mm)
    
    
    6
    
    
    
    18
    
    
    
    10
    
    
    
    10
    
    
    
    7ROE (%)
    
    
    5.4
    
    
    
    16.8
    
    
    
    9.3
    
    
    
    9.0
    
    
    
    6.2
   Certain comparative figures have been restated to conform with the presentation adopted in the first quarter of 2005. Revenues in the first quarter of 2005 grew 35% compared to the first quarter of 2004, largely
due to strong single premium life insurance sales during the quarter and increased volume of
in-force business. First quarter 2005 sales were up 19% over 2004. Net income was down $1 million for the first quarter 2005 compared to the first quarter of 2004,
due to lower investment income. Net income was down from the fourth quarter of 2004 which benefited
from the favourable effect of productivity improvement initiatives on actuarial liabilities in the
Philippines. 9www.sunlife.com




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##### 



First Quarter Earnings Corporate Corporate includes the results of SLF U.K., the Reinsurance business unit and Run-off
Reinsurance as well as investment income, expenses, capital and other items not allocated to Sun
Life Financials other business groups. Run-off Reinsurance is included in Other operations. Quarterly ResultsQ1/05
    
    
    Q4/04
    
    
    Q3/04
    
    
    Q2/04
    
    
    Q1/04Revenues ($mm)
    
    
    530
    
    
    
    477
    
    
    
    534
    
    
    
    576
    
    
    
    550Common Shareholders Net Income/(Loss) ($mm)SLF U.K.
    
    
    47
    
    
    
    45
    
    
    
    39
    
    
    
    42
    
    
    
    47Reinsurance
    
    
    14
    
    
    
    26
    
    
    
    21
    
    
    
    10
    
    
    
    15Other
    
    
    19
    
    
    
    (12
    )
    
    
    14
    
    
    
    6
    
    
    
    (18
    )Total
    
    
    80
    
    
    
    59
    
    
    
    74
    
    
    
    58
    
    
    
    44
   Certain comparative figures have been restated to conform with the presentation adopted in the first quarter of 2005. Common shareholders net income in the Corporate segment of $80 million was $36 million higher
than in the first quarter of 2004. Earnings for SLF U.K. and Reinsurance were virtually unchanged
for the first quarter of 2005 compared to the first quarter of 2004 while earnings in Other
increased by $37 million. Earnings in Other benefited by $16 million in the first quarter of 2005
as the result of a favourable resolution of outstanding tax issues. The Company also recorded a $53
million foreign exchange gain on the repatriation of capital from the U.K. which was offset by an
increase in costs related to the write-off of redundant software, a provision for the resolution of
certain regulatory matters in the U.S. and the impact of equity markets on the run-off reinsurance
business. In addition to the previously mentioned variances between the first quarter of 2005 and
the first quarter of 2004, the fourth quarter 2004 results included the impact of favourable
mortality in Reinsurance. Additional Financial Disclosure Revenue Under Canadian GAAP, premium revenue includes annuity premiums, which would not be included as
revenue under U.S. GAAP and would not be included as revenue for similar products sold by other
financial institutions. Revenues were $5.1 billion in the first quarter of 2005 compared to $5.5 billion in the comparable
period a year ago. The decrease of $419 million was primarily due to lower fixed annuity premiums
in the U.S. and an unfavourable impact of $211 million due to the strengthening of the Canadian
dollar against foreign currencies. These decreases were partially offset by higher premiums in SLF
Asia as a result of business growth. Premium revenue was $2.9 billion in the first quarter of 2005, compared to $3.3 billion in the
comparable period of 2004. Excluding the unfavourable impact of $119 million due to the
strengthening of the Canadian dollar against foreign currencies, premium revenue was down 6%. The
decrease was primarily due to lower annuity premiums in the U.S. as a result of particularly strong
2004 sales of equity-indexed annuities, partially offset by higher life insurance premiums in SLF
Asia as a result of business growth. 10Sun Life Financial Inc. / First Quarter 2005




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First Quarter Earnings First quarter 2005 investment income was down $43 million or 3% from the first quarter of 2004,
primarily reflecting fluctuations in equity market and interest rate levels. A foreign exchange
gain in the first quarter of 2005 relating to the repatriation of capital from the U.K. operations
was mostly offset by an unfavourable impact of $50 million due to the strengthening of the Canadian
dollar against foreign currencies. Fee income of $714 million in the first quarter of 2005 was down $62 million from the same period
in the previous year mainly due to a reduction of $43 million from the strengthening of the
Canadian dollar against foreign currencies. Before the impact of currency exchange, MFS first
quarter fee income declined $11 million compared to a year ago, primarily reflecting the full
quarter impact of fee reductions as agreed to in regulatory settlements in early 2004. Assets Under Management Assets Under Management (AUM) were $365.8 billion at March 31, 2005 compared to $359.7 billion at
December 31, 2004, and $369.7 billion at March 31, 2004. The increase of $6.1 billion between
December 31, 2004, and March 31, 2005, was primarily the result of business growth and  (i)

an increase of $3.7 billion due to fluctuation in currency exchange rates; and(ii)

net sales of mutual, managed and segregated funds of $2.5 billion; partly offset by(iii)

a decrease of $2.1 billion from equity market declines. AUM decreased $3.9 billion between March 31, 2004, and March 31, 2005. Continued business growth
and an increase of $17.0 billion from increases in equity markets were more than offset by
reductions of:  (i)

$17.2 billion from the strengthening of the Canadian dollar against foreign currencies; and(ii)

$6.7 billion of net redemptions of mutual, managed and segregated funds. Changes in the Balance Sheet and Shareholders Equity Total general fund assets were $110.5 billion at March 31, 2005, compared to $111.4 billion a year
earlier. Business growth in SLF Canada, SLF U.S. and SLF Asia was more than offset by a reduction
of $3.9 billion due to the strengthening of the Canadian dollar against foreign currencies. Total general fund assets at March 31, 2005, were $2.7 billion higher than December 31, 2004,
mostly due to business growth and investment activity in SLF Canada and SLF U.S. and an increase of
$618 million from the strengthening of foreign currencies against the Canadian dollar. Actuarial and other policy liabilities of $76.7 billion at March 31, 2005, were $1.3 billion lower
than March 31, 2004. An increase of $1.7 billion primarily due to the growth in the SLF U.S.
operations was more than offset by a reduction of $2.9 billion due to the strengthening of the
Canadian dollar against foreign currencies. Actuarial and other policy liabilities were $627 million higher at March 31, 2005, compared to
December 31, 2004, primarily due to growth in SLF U.S. and a $469 million increase due to the
strengthening of foreign currencies against the Canadian dollar during the quarter. Shareholders equity, including the Companys preferred share capital, was $14.9 billion at March
31, 2005, $606 million higher than December 31, 2004. Shareholders net income, before preferred
share dividends of $2 million, contributed $460 million to equity, while the issuance of preferred
shares added $394 million. The strengthening of foreign currencies against the Canadian dollar
further increased equity by $87 million which was partly offset by the adjustment to the currency
translation account for the foreign currency gain of $53 million, as outlined in Note 10 of the
first quarter interim financial statements. The increase in equity was partly offset by dividend
payments on common shares of $142 million and $140 million for the cost of common shares
repurchased and cancelled, net of new issues for stock options. 11www.sunlife.com




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First Quarter Earnings At March 31, 2005, Sun Life Financial Inc. had 588,974,846 common shares and 16,000,000 preferred
shares outstanding. Sun Life Assurance Company of Canada has announced its intention to redeem its
Non-Cumulative Redeemable Class E Preferred Shares, Series 1. Cash Flows Quarterly Results($mm)
    
    Q1/05
    
    
    Q1/04Cash and cash equivalents, beginning of period
    
    
    3,748
    
    
    
    3,175Cash flows provided by (used in):Operating activities
    
    
    791
    
    
    
    54Financing activities
    
    
    148
    
    
    
    10Investing activities
    
    
    (710
    )
    
    
    138Changes due to fluctuations in exchange rates
    
    
    (16
    )
    
    
    9Increase in cash and cash equivalents
    
    
    213
    
    
    
    211Cash and cash equivalents, end of period
    
    
    3,961
    
    
    
    3,386Short-term securities, end of period
    
    
    1,903
    
    
    
    1,775Total cash, cash equivalents and short-term securities
    
    
    5,864
    
    
    
    5,161
   Certain comparative figures have been restated to conform with the presentation adopted in the first quarter of 2005. Net cash, cash equivalents and short-term securities at the end of the first quarter of 2005
increased $703 million from the first quarter of 2004 primarily due to U.S. individual life
insurance premiums exceeding client disbursements and a reduction in the level of investments in
long-term assets during the past 12 months. The $213 million increase in cash and cash equivalents
during the first quarter of 2005 was comparable to the same period in the prior year. The increase
in cash flow generated from operating activities was partly due to improved net flows of U.S. fixed
annuities in the first quarter of 2005 compared to the first quarter of 2004. The increase in cash
used in investing activities reflected in part the increase in investments relative to the prior
year to support the fixed annuity business. Cash provided by financing activities increased $138
million in the first quarter of 2005 compared to 2004 primarily due to the issuance of $400 million
of Sun Life Financial Inc.s Class A Non-Cumulative Perpetual Preferred Shares, partially offset by
common share dividends of $142 million and common share repurchases of $161 million during the
first quarter of 2005. Accounting Changes Effective January 1, 2005, Sun Life Financial Inc. implemented Canadian Institute of Chartered
Accountants Accounting Guideline 15, which provides guidance for consolidation of variable interest
entities. As a result of implementing this guideline, the legal entities which issued the Sun Life
ExchangEable Securities and Cumulative Capital Securities were deconsolidated from the results of
Sun Life Financial Inc., and the respective debentures were recorded to reflect the Companys
liabilities to the entities which issued these instruments. Additional information on these
accounting changes is detailed in Note 2 to Sun Life Financial Inc.s Q1 2005 Interim Consolidated
Financial Statements. 12Sun Life Financial Inc. / First Quarter 2005




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First Quarter Earnings Risk Management Sun Life Financial has developed a framework to assist in categorizing, monitoring and managing the
various risks to which it is exposed. The major categories of risk are credit risk, market risk,
insurance risk and operational risk. Operational risk is a broad category which includes legal and
regulatory risks, people risks and systems and processing risks. Through its ongoing risk management procedures, Sun Life Financial reviews the various risk factors
identified in the framework and reports to senior management on a monthly basis and to the Risk
Review Committee of the Board quarterly. Sun Life Financials risk management procedures and risk
factors are described in Sun Life Financial Inc.s annual MD&A and Annual Information Form (AIF).
Interest rate and equity market sensitivities are disclosed in the MD&A, but change as market
levels change, new business is added, or as management actions are taken. Outlook The outlook for growth in the North American economies has moderated in the first quarter of 2005.
The U.S. economy is expected to grow at a healthy rate of 3.0% to 3.5%, with Canada expected to
grow at 2.5% to 3.0%. While core inflationary pressures are still benign, the Federal Reserve Board
in the U.S. and the Bank of Canada are increasingly wary of the prospect for renewed inflation.
This should mean a continuation of the tightening of interest rates by the Federal Reserve Board,
with the Bank of Canada likely to resume tightening prior to the end of 2005. Should the price of
oil resume its upward trajectory, it could significantly dampen economic growth and thereby reduce
core inflationary pressure. This would reduce the economic impetus for further interest rate
tightening. Should interest rates rise at a steady 100 to 200 basis points over the next 18-24
months, the Company would benefit, particularly in the U.S. fixed annuity and universal life
businesses. Conversely, if interest rates were to decline, the Companys exposure would be limited
by actions taken to mitigate the risk of lower interest rates. Regulatory Matters Sun Life Financial Inc. and its subsidiaries in Canada and the United States have received requests
for information from and are cooperating with regulators in their continuing investigations and
examinations with respect to various issues, including market timing and late trading of mutual
funds and variable insurance products, directed brokerage, revenue sharing and other arrangements
with distributors, compensation arrangements and other business practices between insurance
companies and brokers and recordkeeping requirements. No new regulatory proceedings have been
commenced as a result of these investigations and examinations, but Sun Life Financial Inc. and
certain of its U.S. subsidiaries are engaged in discussions with the SEC that may lead to settled
administrative actions involving those subsidiaries and a provision for the estimated losses for
such matters has been made in the Corporate segment. While it is not possible to predict the final
resolution of these discussions, management expects that the ultimate liability with respect to
such matters will not be material to the consolidated financial condition of the Company.
Additional information concerning these and related matters is provided in Sun Life Financial
Inc.s annual MD&A, annual and interim financial statements and AIF. Copies of these documents are
available at www.sedar.com. Forward-Looking Statements Some of the 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, without limitation, the information
concerning possible or assumed future results of operations of the Company. These statements are not historical facts but instead represent only the
Companys expectations, estimates and projections regarding future events. 13www.sunlife.com




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First Quarter Earnings Forward-looking statements are not guarantees of future performance and involve certain risks and
uncertainties that are difficult to predict. The future results and stockholder value of Sun Life
Financial 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 Sun Life Financial Inc.s AIF
and the factors detailed in its other filings with Canadian and U.S. securities regulators,
including its annual MD&A, and annual and interim financial statements which are available for
review at www.sedar.com. Factors that could cause actual results to differ materially from expectations include, but are not
limited to: external factors, including changes in equity market performance, interest rates,
currency exchange rates and government regulations; the amount and composition of assets under
management; the management of product pricing; mortality and morbidity rates; expense management;
the maintenance of spreads between credited rates and investment returns; surrender and lapse
rates; the management of market and credit risks; the management of risks inherent in products with
guaranteed benefit options; and the results of regulatory investigations into the practices of the
mutual fund, insurance, annuity and financial product distribution industries, including private legal proceedings and class actions that have been commenced or
threatened in connection with these practices. The Company does not undertake any obligation to
update or release any revisions to these forward-looking statements to reflect events or
circumstances after the date of this presentation or to reflect the occurrence of unanticipated
events, except as required by law. - 30 - 14Sun Life Financial Inc. / First Quarter 2005