Impact of IFRS 17 changes

2 Equity impact at transition is driven by new CSM liability, which qualifies as LICAT capital, and is amortized into future income Impact to shareholders' equity at transition (Illustrative; not to scale) CSM-Impact to shareholders' equity CSM - Portion of IFRS 4 liabilities transferred to CSM under IFRS 17 IFRS 4 shareholders' equity (12/31/2022) ☐ CSM Other liability changes¹ SUN LIFE IFRS 1 7 • MAY 2022 IFRS 17 shareholders' equity (1/1/2023) I • Transfer from shareholders' equity2 of 15-20% to reflect the new measurement/components of IFRS 17 liabilities • Transition CSM accounts for ~2/3 of the impact; amortized back into income overtime 。 CSM qualifies as LICAT capital ³, same as retained earnings Remaining ~1/3 mostly reflects changes to the discount rate, and removal of the market premium for non-fixed income investments o Creates a new source of future profits as non-fixed income market premium is recognized over time At transition, provisions for reinvestment risks and non- attributable expenses are inherently transferred from existing liabilities to CSM liability (no net impact on shareholders' equity) Note: This slide contains forward-looking statements. Refer to "Forward-looking statements" on slide 3 for more information Footnotes 1-3: Refer to slide 32 14

View entire presentation