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Sun Life Financial Inc. 24 June 2008

Company News Alert

Significant decline in common stock price since our last update report

Common BUY Sun Life Financial Inc.’s (Sun Life) common stock price has witnessed a significant decline since our
previous update report, reflecting investor concerns regarding broad-based weakness in the global
Stock financial markets and its impact on insurance stocks, in line with the performance of the Canadian
financial market. However, despite the negative impact of volatility in global equity markets, the
company's global distribution network and efforts to expand its presence in Asian markets are
Ticker: SLF.TO
expected to benefit the company in the future. Although we intend to reduce our target price in our next
Target price: C$59.92 update report, we believe that the recent decline in the common stock has left the stock undervalued
Current price: C$43.00 and thus we believe that it offers an attractive investment opportunity at current levels. Therefore, we
maintain our current BUY rating for the Sun Life common stock.
Price change
(20.9%)
since last report: We will reassess our common stock rating for Sun Life in our next full update report.

NYSE Stock BUY We are likely to revert to a 6-24 month investment horizon for this stock as we no longer anticipate a
significant currency impact on the NYSE stock in the medium term. Although we intend to reduce our
target price in our next update report, we maintain our current BUY rating for the NYSE stock based on
Ticker: SLF the company’s fundamental outlook although we expect a significant negative currency impact on the
NYSE stock over 6-24 months.
Target price: US$55.49
Current price: US$42.41
Price change We will reassess NYSE stock rating for Sun Life in our next full update report.
(21.4%)
since last report:

Supervisor: Somnath Banerjee

Analyst: Silky Jain
Editor: Heloise Capon
Global Research Director:
Satish Betadpur, CFA
Investment horizon - short term actionable trading strategies
This report addresses the needs of strategic investors with a long term investment horizon of 6-12 months. If this
report is provided to you by your broker under the Global Settlement, you may now also access (free of charge) the
short term trading outlook that we publish from time to time for this issuer, looking at the coming 5-30 days for
readers with a shorter trading horizon. These are available online only at www.researchoracle.com.

Next news due:

2Q 08 results, 31 July 2008
In our 3Q 07 update report, dated 07 December 2007, we reiterated the Sun Life common stock
rating a BUY on fundamental grounds with a 6-12 month target price of C$59.92, indicating a
potential upside of 10%. The NYSE stock was downgraded from a BUY to a HOLD with a 6-12 month
target price of US$55.49, indicating a potential upside of 3%.
The Sun Life common stock price has declined 20.9% since our previous update report to close at a
52-week low of C$43.00 on 23 June 2008. We believe that the decline in the common stock price
primarily reflects investor concerns regarding weakness in global financial markets and its impact on
insurance stocks, in line with the performance of the Canadian financial market. In addition, the
company’s 1Q 08 results were below market expectations, and it has significantly high exposure to
monoline insurance and the subprime mortgage market. Concerns that financial sector performance
could experience a major decline as a consequence of the global market turmoil stemming from the
credit crunch have compounded the pressure on the common stock price. We remain concerned about
the company’s subprime and monoline exposure which could negatively impact Sun Life's financial
performance in the near term.

Although we are likely to revise our estimates and target prices downwards when we come to revalue
the stock in our next full update report, our long term outlook for the common stock remains positive.
Furthermore, we believe that the recent decline in the price has created an attractive investment
opportunity. Therefore, we maintain our BUY rating for the common stock at current price levels.

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