Sun Life Financial Announces Plans for Normal Course Issuer Bid Renewal

On May 8, 2025, Sun Life Financial Inc. (TSX: SLF, NYSE: SLF) declared its intention to renew its normal course issuer bid (NCIB). This decision is subject to approval from the Office of the Superintendent of Financial Institutions (OSFI) and the Toronto Stock Exchange (TSX). The current NCIB, initiated on August 29, 2024, authorized the repurchase of up to 15 million common shares, of which 13,018,997 have already been bought back as of May 7, 2025.

Overview of the Current Share Repurchase Strategy

The completion of the share repurchases under the 2024 NCIB will pave the way for a new normal course issuer bid, which will allow Sun Life to acquire an additional 10 million common shares under the 2025 NCIB. This initiative is part of the company's broader effort to manage capital efficiently and return value to shareholders.

The 2025 NCIB is set to last for 12 months from its commencement date unless terminated earlier by the company. This initiative will give Sun Life the flexibility to purchase common shares in various markets, including Canadian stock exchanges, the New York Stock Exchange, and alternative trading platforms, at market rates. Under the 2025 NCIB, shareholders can expect that any shares repurchased will either be canceled or used in incentive arrangements linked to equity.

Regulatory Procedures and Market Dynamics

Purchases made under the new NCIB may also follow private agreements or share repurchase programs, subject to regulatory approvals. Such purchases are typically expected to occur at a discount to prevailing market prices, which could be beneficial for both the company and its shareholders. The precise number and timing of shares repurchased will ultimately depend on market conditions as well as corporate strategy regarding shareholder returns.

To assure compliance with trading regulations, Sun Life noted that it may establish predefined plans with brokers, enabling share repurchases at times when it would not typically be active in the marketplace due to trading blackout periods or insider trading restrictions.

Past Purchases and Future Expectations

As of early May 2025, the company had repurchased 13,018,997 common shares from the total authorized 15 million under its current NCIB, at an average cost of approximately $80.79 per share. Since the company is renewing its normal course issuer bid in advance of the existing NCIB expiry, the total number of shares repurchased thus far will impact the maximum number Sun Life may purchase under the 2025 NCIB. After consulting with the TSX, the company will aim to procure 25 million common shares, taking into account both the previous repurchased shares and the new allocation.

Considerations for Investors

According to the company’s forward-looking statements, these plans hinge on numerous assumptions and potential risks, which may influence the actual outcomes. Factors that could impact the ability to approve and execute the 2025 NCIB include further regulatory reviews and market conditions. Investors should monitor any developments closely, noting that actual future performance could vary significantly from initial projections.

For its part, Sun Life has consistently emphasized transparency in its operations. It continues to provide stakeholders with comprehensive reports and updates regarding strategies in asset management and shareholder relations. The company's reputation as a leading financial services firm stems from its commitment to sound management practices and proactive shareholder engagement.

About Sun Life

Sun Life is an international financial services organization, specializing in asset management, wealth management, insurance, and health solutions. It serves both individual and institutional clients across different global markets, including Canada, the United States, and various locations throughout Asia and Europe. With total assets under management of approximately $1.55 trillion as of March 31, 2025, Sun Life is well-positioned to continue its growth while maintaining a strong capital foundation. For more information, visit sunlife.com.

In conclusion, Sun Life's announcement regarding the renewal of its normal course issuer bid underscores its ongoing commitment to enhancing shareholder value while navigating an ever-evolving financial landscape around capital management. This strategic repurchase initiative reflects the company’s robust capital position and its dedication to shareholder returns.