Sun Life Financial Inc. ("SLF Inc."), its subsidiaries and, where applicable, its joint ventures and associates are collectively referred to as "the Company", "Sun Life", "we", "our", and "us". We manage our operations and report our financial results in five business segments: Canada, United States ("U.S."), Asset Management, Asia, and Corporate. The information in this document is based on the unaudited interim financial results of SLF Inc. for the period ended March 31, 2022 and should be read in conjunction with the interim management's discussion and analysis ("MD&A") and our unaudited interim consolidated financial statements and accompanying notes ("Interim Consolidated Financial Statements") for the period ended March 31, 2022, prepared in accordance with International Financial Reporting Standards ("IFRS"). We report certain financial information using non-IFRS financial measures. For more details, refer to the Non-IFRS Financial Measures section in this document. Additional information relating to SLF Inc. is available on www.sunlife.com under Investors – Financial results and reports, on the SEDAR website at www.sedar.com, and on the U.S. Securities and Exchange Commission's website at www.sec.gov. Reported net income (loss) refers to Common shareholders' net income (loss) determined in accordance with IFRS. Unless otherwise noted, all amounts are in Canadian dollars.

Quarterly results

Profitability

Q1'22

Q1'21

Reported net income - Common shareholders ($ millions)

858

937

Underlying net income ($ millions)⁽¹⁾

843

850

Reported EPS ($)⁽²⁾

1.46

1.59

Underlying EPS ($)⁽¹⁾⁽²⁾

1.44

1.45

Reported return on equity ("ROE")⁽¹⁾

14.3%

16.9%

Underlying ROE⁽¹⁾

14.0%

15.3%

Growth

Q1'22

Q1'21

Insurance sales ($ millions)⁽¹⁾

799

730

Wealth sales and asset management gross flows ($ millions)⁽¹⁾

57,887

65,962

Value of new business ("VNB") ($ millions)⁽¹⁾

258

278

Assets under management ("AUM") ($ billions)⁽¹⁾⁽³⁾

1,352

1,304

Financial Strength

Q1'22

Q1'21

LICAT ratios (at period end)⁽⁴⁾

Sun Life Financial Inc.

143%

141%

Sun Life Assurance⁽⁵⁾

123%

124%

Financial leverage ratio (at period end)⁽¹⁾⁽⁶⁾

25.9%

22.7%

_________________

⁽¹⁾   

Represents a non-IFRS financial measure. For more details, see the Non-IFRS Financial Measures section in this document and in our MD&A for the period
ended March 31, 2022 ("Q1 2022 MD&A").

⁽²⁾   

All earnings per share ("EPS") measures refer to fully diluted EPS, unless otherwise stated.

⁽³⁾   

AUM is comprised of General Funds and Segregated Funds on our Statements of Financial Position, and other third-party assets managed by the Company
("other AUM"). For more details, see the Non-IFRS Financial Measures section in this document and in our Q1 2022 MD&A.

⁽⁴⁾   

For further information on the Life Insurance Capital Adequacy Test ("LICAT"), see section E - Financial Strength in this document. Our LICAT ratios are
calculated in accordance with OSFI-mandated guideline, Life Insurance Capital Adequacy Test.

⁽⁵⁾   

Sun Life Assurance Company of Canada ("Sun Life Assurance") is SLF Inc.'s principal operating life insurance subsidiary.

⁽⁶⁾   

Includes $2.0 billion of proceeds from the subordinated debt offerings completed in November 2021, of which $1.5 billion is subject to contractual terms
requiring us to redeem the underlying securities, in full, if the closing of the DentaQuest Group Inc. ("DentaQuest") acquisition does not occur. These amounts
will not qualify as LICAT capital until the acquisition closes.

($ millions, unless otherwise noted)

Reported net income (loss) -
Common shareholders

Underlying

net income (loss)⁽¹⁾

Insurance

sales⁽¹⁾

Q1'22

Q1'21

change

Q1'22

Q1'21

change

Q1'22

Q1'21

change

Q1'22

Q1'21

Canada

263

405

(35)%

298

285

5%

332

233

42%

4,939

4,435

11%

U.S.

169

211

(20)%

118

171

(31)%

148

154

(4)%

—

—

Asset Management

308

230

34%

326

291

12%

—

—

—

49,427

58,231

(15)%

Asia

161

198

(19)%

152

159

(4)%

319

343

(7)%

3,521

3,296

7%

Corporate

(43)

(107)

nm⁽²⁾

(51)

(56)

nm⁽²⁾

—

—

—

—

—

Total

858

937

(8)%

843

850

(1)%

799

730

9%

57,887

65,962

⁽¹⁾   

Represents a non-IFRS financial measure. See the Non-IFRS Financial Measures section in this document and in the Q1 2022 MD&A.

⁽²⁾   

Not meaningful.

⁽¹⁾ 

MFS Investment Management ("MFS").

⁽²⁾ 

Refer to section C - Profitability in the Q1 2022 MD&A for more information about experience-related items and the Non-IFRS Financial Measures section in this document for a reconciliation between reported net income and underlying net income.

⁽³⁾ 

Represents a non-IFRS financial measure. For more details, see the Non-IFRS Financial Measures section in this document and in the Q1 2022 MD&A.

________

⁽¹⁾

Represents a non-IFRS financial measure. For more details, see the Non-IFRS Financial Measures section in this document and in the Q1 2022 MD&A.

⁽²⁾

Based on a trailing 12-month basis.

⁽³⁾

Barron's 2021 Fund Family rankings.

⁽⁴⁾

West End of London Property Unit Trust.

⁽⁵⁾

Based on total assets, as at December 31, 2021.

Media Relations Contact:

Investor Relations Contact:

Krista Wilson

Yaniv Bitton

Director, Corporate Communications   

Vice-President, Head of Investor Relations and Capital Markets

Tel: 226-751-2391

Tel: 416-979-6496

krista.wilson@sunlife.com

yaniv.bitton@sunlife.com

Non-IFRS Financial Measures

We report certain financial information using non-IFRS financial measures, as we believe that these measures provide information that is useful to investors in understanding our performance and facilitate a comparison of our quarterly and full year results from period to period. These non-IFRS financial measures do not have any standardized meaning and may not be comparable with similar measures used by other companies. For certain non-IFRS financial measures, there are no directly comparable amounts under IFRS. These non-IFRS financial measures should not be viewed in isolation from or as alternatives to measures of financial performance determined in accordance with IFRS. Additional information concerning non-IFRS financial measures and, if applicable, reconciliations to the closest IFRS measures are available in Q1 2022 MD&A under the heading M - Non-IFRS Financial Measures, in our annual MD&A under the heading L - Non-IFRS Financial Measures and the Supplementary Financial Information packages that are available on www.sunlife.com under Investors – Financial results and reports.

1. Underlying Net Income and Underlying EPS

Underlying net income (loss) and financial measures based on underlying net income (loss), including underlying EPS or underlying loss per share, and underlying ROE, are non-IFRS financial measures. Underlying net income (loss) removes from reported net income (loss) the impacts of the following items in our results under IFRS and when removed assist in explaining our results from period to period:

(a) 

market-related impacts that differ from our best estimate assumptions, which include: (i) impacts of returns in equity markets, net of hedging, for which our best estimate assumptions are approximately 2% per quarter. This also includes the impact of the basis risk inherent in our hedging program, which is the difference between the return on underlying funds of products that provide benefit guarantees and the return on the derivative assets used to hedge those benefit guarantees; (ii) the impacts of changes in interest rates in the reporting period and on the value of derivative instruments used in our hedging programs including changes in credit and swap spreads, and any changes to the assumed fixed income reinvestment rates in determining the actuarial liabilities; and (iii) the impacts of changes in the fair value of investment properties in the reporting period;

(b)

assumption changes and management actions, which include: (i) the impacts of revisions to the methods and assumptions used in determining our liabilities for insurance contracts and investment contracts; and (ii) the impacts on insurance contracts and investment contracts of actions taken by management in the current reporting period, referred to as management actions which include, for example, changes in the prices of in-force products, new or revised reinsurance on in-force business, and material changes to investment policies for assets supporting our liabilities; and

(c)

other adjustments:

(i)

fair value adjustments on MFS' share-based payment awards that are settled with MFS' own shares and accounted for as liabilities and measured at fair value each reporting period until they are vested, exercised and repurchased - this adjustment enhances the comparability of MFS' results with publicly traded asset managers in the United States;

(ii)

acquisition, integration and restructuring costs - this adjustment enhances comparability of our results from period to period, by removing the impacts of costs, including the unwinding of the discount for certain liabilities related to acquisitions, that are not ongoing in nature and are incurred with the intent to generate benefits in future periods;

(iii)

certain hedges in Canada that do not qualify for hedge accounting - this adjustment enhances the comparability of our results from period to period, as it reduces volatility to the extent it will be offset over the duration of the hedges; and

(iv)

other items that are unusual or exceptional in nature.

All factors discussed in this document that impact our underlying net income are also applicable to reported net income. All EPS measures in this document refer to fully diluted EPS, unless otherwise stated. As noted below, underlying EPS excludes the dilutive impacts of convertible instruments.

The following table sets out the post-tax amounts that were excluded from our underlying net income (loss) and underlying EPS and provides a reconciliation to our reported net income (loss) and EPS based on IFRS.

Reconciliations of Select Net Income Measures

Quarterly results

($ millions, unless otherwise noted)

Q1'22

Q1'21

Reported net income - Common shareholders

858

937

     Market-related impacts

          Equity market impacts

               Impacts from equity market changes

(24)

67

               Basis risk impacts

22

5

          Equity market impacts

(2)

72

          Interest rate impacts⁽¹⁾

               Impacts of interest rate changes

(57)

161

               Impacts of credit spread movements

40

(8)

               Impacts of swap spread movements

(13)

(12)

          Interest rate impacts

(30)

141

          Impacts of changes in the fair value of investment properties

70

(4)

     Less: Market-related impacts

38

209

     Less: Assumption changes and management actions

1

(4)

          Other adjustments

               Fair value adjustments on MFS' share-based payment awards

(3)

(44)

               Acquisition, integration and restructuring⁽²⁾⁽³⁾

(21)

(74)

     Less: Total of other adjustments

(24)

(118)

Underlying net income

843

850

Reported EPS (diluted) ($)

1.46

1.59

     Less: Market-related impacts ($)

0.06

0.37

          Assumption changes and management actions ($)

—

(0.01)

          Fair value adjustments on MFS' share-based payment awards ($)

—

(0.08)

          Acquisition, integration and restructuring ($)

(0.04)

(0.13)

          Impact of convertible securities on diluted EPS ($)

—

(0.01)

Underlying EPS (diluted) ($)

1.44

1.45

⁽¹⁾    Our exposure to interest rates varies by product type, line of business, and geography. Given the long-term nature of our business, we have a higher degree of sensitivity in respect of interest rates at long durations.

⁽²⁾    Amounts relate to acquisition costs for our SLC affiliates, BentallGreenOak, InfraRed Capital Partners and Crescent Capital Group LP, which include the unwinding of the
       discount for Other financial liabilities of $16 million in Q1'22 (Q1'21 - $14 million).

⁽³⁾    The restructuring charge of $57 million in Q1'21 related to our strategy for our workspace and redefining the role of the office.

The following table shows the pre-tax amount of underlying net income adjustments:

Quarterly results

($ millions, unless otherwise noted)

Q1'22

Q1'21

Reported net income - Common shareholders (after-tax)

858

937

Underlying net income adjustments (pre-tax):

     Less:  Market-related impacts

193

380

          Assumption changes and management actions

1

(6)

          Other adjustments⁽¹⁾

(26)

(144)

          Total underlying net income adjustments (pre-tax)

168

230

     Less: Taxes related to underlying net income adjustments⁽¹⁾

(153)

(143)

Underlying net income (after-tax)

843

850

⁽¹⁾     Effective January 1, 2022, there was a change in presentation for the fair value adjustments on MFS' share-based payment awards. We have updated prior periods to reflect this
        change in presentation. The post-tax basis presentation was not affected.

Taxes related to underlying net income adjustments may vary from the expected effective tax rate range reflecting the mix of business based on the Company's international
operations.

2. Additional Non-IFRS Financial Measures

Management also uses the following non-IFRS financial measures:

Assets under management. AUM is a non-IFRS financial measure that indicates the size of our company's asset management, wealth, and insurance assets. There is no
standardized financial measure under IFRS. In addition to the most directly comparable IFRS measures, which are the balance of General funds and Segregated funds on our
Statements of Financial Position, AUM also includes Other AUM.

Other AUM is composed of retail, institutional and other-third party assets, as well as general fund and segregated fund assets managed by our joint ventures. In Canada, other
AUM includes Client assets in retail mutual fund products of Sun Life Global Investments. In Asia, other AUM includes Client assets in Hong Kong managed fund products,
International wealth products, Philippines mutual and managed fund products, Aditya Birla Sun Life AMC Limited equity and fixed income mutual fund products, Sun Life Everbright
Asset Management products and our joint ventures' general fund and segregated fund assets based on our proportionate equity interest. In Asset Management, other AUM
includes Client assets for retail and institutional Clients, as well as capital raising, such as uncalled commitments and fund leverage in SLC Management. There is no directly
comparable IFRS financial measure.

Effective January 1, 2022, certain components of Other AUM were renamed to "Retail" and "Institutional and managed funds" to align with market naming conventions. Previously,
these components were referred to as Mutual funds and Managed funds, respectively, in our interim and annual MD&A. While labeling changes have modified certain terminology,
the composition of these components has not been affected.

Quarterly results

($ millions)

Q1'21

General fund assets

196,685

190,072

Segregated funds

133,496

127,341

Other AUM

1,021,972

986,833

Total assets under management

1,352,153

1,304,246

Assumption changes and management actions. In this document the impacts of ACMA on shareholders' net income (after-tax) is included in reported net income and is excluded
from underlying net income, as described in section C - Profitability in the Q1 2022 MD&A.

Note 5.A of the Interim Consolidated Financial Statements for the period ended March 31, 2022 shows the pre-tax impacts of method and assumption changes on shareholders' and
participating policyholders' insurance contract liabilities net of reinsurance assets, excluding changes in other policy liabilities and assets. The view in this document of ACMA is the
impacts on shareholders' reported net income (after-tax). The Consolidated Financial Statements view is a component of the change in total company liabilities.

The following table provides a reconciliation of the differences between the two measures.

Quarterly results

($ millions)

Q1'22

Q1'21

Impacts of method and assumption changes on insurance contract liabilities (pre-tax)

5

(8)

     Less: Participating policyholders⁽¹⁾

4

(4)

Impacts of method and assumption changes excluding participating policyholders (pre-tax)

1

(4)

     Less: Tax

—

(2)

Impacts of method and assumption changes excluding participating policyholders (after-tax)

1

(2)

     Add: Management actions (after-tax)⁽²⁾

—

(2)

          Other (after-tax)⁽³⁾

—

—

Assumption changes and management actions (after-tax)⁽⁴⁾⁽⁵⁾

1

(4)

⁽¹⁾     Adjustment to remove the pre-tax impacts of method and assumption changes on amounts attributed to participating policyholders.

⁽²⁾     Adjustment to include the after-tax impacts of management actions on insurance contract liabilities and investment contract liabilities which include, for example, changes in the prices
        of in-force products, new or revised reinsurance on in-force business, and material changes to investment policies for assets supporting our liabilities. The pre-tax impact of
        management actions to Method and assumption changes on insurance contract liabilities was $nil in Q1'22 (Q1'21 - a decrease of $2 million).

⁽³⁾     Adjustments to include the after-tax impacts of method and assumption changes on investment contracts and other policy liabilities, and the pre-tax impact to Method and assumption
        changes on insurance contract liabilities was $nil in Q1'22 (Q1'21 - $nil).

⁽⁴⁾     Includes the tax impacts of ACMA on insurance contract liabilities and investment contract liabilities, reflecting the tax rates in the jurisdictions in which we do business. 

⁽⁵⁾     ACMA is included in reported net income and is excluded in calculating underlying net income, as described in section C - Profitability in the Q1 2022 MD&A.

Cash and other liquid assets. This measure is comprised of cash, cash equivalents, short-term investments, and publicly traded securities that are held at SLF Inc. (the ultimate parent
company), and its wholly owned holding companies. This measure represents available funds for capital re-deployment to support business growth.

($ millions)

As at March 31, 2022

As at December 31, 2021

Cash, cash equivalents & short-term securities

2,310

2,383

Debt securities⁽¹⁾

1,576

1,421

Equity securities⁽²⁾

834

861

4,720

4,665

⁽¹⁾     Includes publicly traded bonds.

⁽²⁾     Includes ETF Investments.

⁽³⁾     Includes $2.0 billion of proceeds from the subordinated debt offerings completed in November 2021, of which $1.5 billion is subject to contractual terms requiring us to redeem the
        underlying securities, in full, if the closing of the DentaQuest

3. Reconciliations of Select Non-IFRS Financial Measures

Reported Net Income to Underlying Net Income Reconciliation - Pre-tax by Business Group

 Canada

 U.S.

Asset
Management

Asia

Corporate

Total

Reported net income (loss) - Common shareholders

263

169

308

161

(43)

858

     Less:  Market-related impacts (pre-tax)⁽¹⁾

123

60

—

9

1

193

          ACMA (pre-tax)

(11)

11

—

1

—

1

          Other adjustments (pre-tax)⁽¹⁾⁽²⁾

—

(6)

(19)

(1)

—

(26)

          Tax expense (benefit) on above items⁽²⁾

(147)

(14)

1

—

7

(153)

Underlying net income (loss)⁽¹⁾

298

118

326

152

(51)

843

Reported net income (loss) - Common shareholders

405

211

230

198

(107)

937

     Less:  Market-related impacts (pre-tax)⁽¹⁾

288

55

—

36

1

380

          ACMA (pre-tax)

(6)

(5)

—

3

2

(6)

          Other adjustments (pre-tax)⁽¹⁾⁽²⁾

—

—

(66)

—

(78)

(144)

          Tax expense (benefit) on above items⁽²⁾

(162)

(10)

5

—

24

(143)

Underlying net income (loss)⁽¹⁾

285

171

291

159

(56)

850

⁽¹⁾     For a breakdown of this adjustment made to arrive at a non-IFRS financial measure, see the heading Underlying Net Income and Underlying EPS.

⁽²⁾     Effective January 1, 2022, there was a change in presentation for the fair value adjustments on MFS' share-based payment awards. We have updated prior periods to reflect this change
        in presentation. The post-tax basis presentation was not affected.