Canadian L&H Insurers: 2Q26 Preview - Pricing In Profitability Increases

Research evidence excerpt

Canadian L&H Insurers: 2Q26 Preview - Pricing In Profitability Increases

for most in the first quarter. . GWO MFC SLF S&P 500 S&P TSX

We continue to believe that wealth will provide top and bottom line growth for the group. Source: FactSet; Jefferies.

Figure 2 - Quarterly Forecast Summary

Reporting vs. Growth

$107.00

17.1% GWOMFCSLF AugustAugustJulyDate2856 AdjJEF $1.37$1.11$1.96 $131.00$70.00 TargetPrice RatingBuyBuyBuy Est.EPS Previous∆0.0%0.0%0.0%0.0%fromEst. Consensus 0.1%2.7%1.2%1.4% 0.5%4.7%4.1%3.1%Q/Q 11.4% 12.8%9.8% Y/Y Multiple19.0x15.5x16.5x17.0x2026Each Name has Specific Storylines that Could Affect Relative . Average

Performance Source: Company reports, FactSet, Jefferies

Each of the Canadian lifecos have specific business lines that will dictate how the market will view

results:

GWO: Empower remains the strategic growth engine, with the recently announced Milliman's•

acquisition providing additional scale.

MFC: With the first quarter results disappointing on a couple of fronts, improved profitability in•

Hong Kong and improving Global Wealth sales levels will likely be a key focus of the market.

SLF: Ongoing growth in the profitability in its U.S. platform and improving sales in asset•

management will be factors that should support and improve Sun's valuation.

Capital Strength Still a Solid Selling Point

The capital positions of the Canadian lifecos remain quite strong, with significant levels of

excess capital relative to the regulatory requirements. Further, cash holdings and leverage remain John Aiken, CFA * | Equity Analyst

supportive as well. That said, with Sun Life recently purchasing the minority interests outstanding +1 (416) 847-7376 | jaiken@jefferies.com