Sun Life Financial Q3 2026 Earnings Call Transcript

Sun Life Financial (NYSE:SLF) reported third-quarter financial results on Thursday. The transcript from the company’s third-quarter earnings call has been provided below.This transcript is brought to you by Benzinga

Sun Life Financial (NYSE:SLF) reported third-quarter financial results on Thursday. The transcript from the company’s third-quarter earnings call has been provided below.

This transcript is brought to you by Benzinga APIs. For real-time access to our entire catalog, please visit https://www.benzinga.com/apis/ for a consultation.

View the webcast at https://www.gowebcasting.com/events/sunlife/2026/11/05/sun-life-financial-q3-2026-earnings-release-conference-call/play

Summary

Sun Life Financial reported a 9% increase in underlying net income to $1.15 billion, with underlying EPS up 10% to $2.05, driven by strong performance across Canada, Asia, and the U.S.

The company announced strategic partnerships and acquisitions, including the integration of Green Oak and Bell Partners, enhancing its asset management capabilities and growth potential.

Sun Life continues to focus on digital transformation and AI initiatives to improve client services and operational efficiency, while maintaining a strong capital position with a LICAT ratio of 142%.

The U.S. business showed impressive growth in medical stop-loss sales by 62%, although challenges were noted in the disability sector due to elevated claims and severity.

Management remains confident in achieving medium-term objectives, with a return on equity of 19% and a dividend increase approved by the board.

Full Transcript

OPERATOR

Good morning and welcome to the Sun Life Financial Q3 2026 conference call. My name is Gaylene and I will be your conference operator today. All lines have been placed on mute to prevent any background noise and the conference is being recorded. After the presentation, there’ll be an opportunity to ask questions. To join the question queue, you may press Star then one on your telephone keypad. The host of the call is Darko Mihalych, SVP Head of Investor Relations.

Please go ahead, Mr. Mihalych.

Darko Mihalych (SVP Head of Investor Relations)

Thank you and good morning everyone. Welcome to Sun Life Financial’s earnings call for the third quarter of 2026. Our earnings release and the slides for today’s call are available on the Investor Relations section of our website at sunlife.com. We will begin today’s call with opening remarks from Kevin Strain, President and Chief Executive Officer. Following Kevin, Tim Deakin, Executive Vice President and Chief Financial Officer, will present the financial results for the quarter.

After the prepared remarks, we will move to the question and answer portion of the call. Other members of management are also available to answer your questions this morning. Please turn to slide two. I draw your attention to the cautionary language regarding the use of forward-looking statements and non-IFRS financial measures which form part of today’s remarks. As noted in the slides, forward-looking statements may be rendered inaccurate by subsequent events and with that I’ll now turn things over to Kevin.

Kevin Strain (President and Chief Executive Officer)

Thanks, Darko, and welcome to Sun Life and to your new role. And good morning everyone. Turning to Slide 5. We delivered solid third quarter results with double digit underlying EPS growth, a strong ROE and like acquisition and solid insurance growth, Canada, Asia, US Stop Loss and Green Oak were all drivers of growth. We’re executing well on our strategy and that’s showing up in our results with higher underlying earnings across all business groups.

This growth is driven by our diversified business mix which is performing well in an increasingly complex business environment. Underlying net income was $1.15 billion, up from $1.05 billion last year. Underlying EPS was $2.05, up 10% over the prior year and underlying return on equity was 19%. Reported net income was $785 million compared to $1.1 billion a year ago, reflecting market related impacts and acquisition and integration costs as well as some restructuring costs related to the Green Oak platform optimization. Tim will share more on this later.

In asset management, underlying earnings increased 6% year over year. Green Oak delivered strong underlying earnings growth reflecting growing fee earning assets, cost discipline and the contribution from Bell Partners, our new US multifamily residential real estate business. MFS delivered consistent earnings despite elevated outflows, as market growth offset the outflows. US Retail investors continue to favor passive strategies driven by their concentration in the small number of technology stocks driving equity market growth.

Our insurance and wealth businesses also delivered solid growth. Canada underlying earnings increased 6% in line with our medium term objective. Strong business growth, particularly across our wealth businesses, helped offset lower insurance experience. Asia continues to perform well. Underlying earnings were up 8% against a strong prior year comparison. Asia growth is broad based across multiple businesses. In the U.S., health and risk solutions continue to perform well while employee benefits experienced elevated incidence and severity, reflecting elevated LTD experience consistent with what was seen across the industry. We delivered strong top-line results in insurance and wealth. And at Green Oak, insurance sales increased 12% driven by continued growth in Asia and strong group benefit sales in Canada and the U.S. In Canada, wealth sales increased 21%. In asset management, Green Oak gross flows were up 8%. This partially offset lower gross sales at MFS. Green Oak also saw positive net flows of $4 billion. Overall, this was a solid quarter reflecting our disciplined execution and our diversified global business model.

Now turning to slide six, let me touch on some areas where we made progress this quarter. In asset management, we launched Green Oak, our new brand for SLC, and began to bring together the businesses under one platform, building a stronger foundation for growth. We also made progress in building scale, announcing our strategic partnership with Wilton Re, where Green Oak will serve as the lead asset manager for a new reinsurance vehicle which is expected to grow to $10 billion U.S. over time.

For Green Oak, that means strategic access to permanent capital and significant long-term growth potential. Innovative partnerships like this are just one of the ways we’re driving performance and fully realizing the value of the broad asset management capabilities we’ve built. Our fundraising capabilities in real estate continue to demonstrate the scale and strength of the platform, ranking in the top five globally for private real estate capital raised over the last five years in the PERE 100.

We completed the acquisition of Bell Partners, an established U.S. multifamily real estate platform with specialized expertise that expands the solutions we can offer institutional clients. Finally, we committed $5 billion over five years to Canadian infrastructure. The commitment includes $1.5 billion for equity investments. This initiative speaks to our role as a source of patient, long-term capital which supports economic growth while delivering attractive long-term returns.

Together, these developments show how we’re leveraging the breadth of Sun Life to scale up, unlock synergies between our capabilities and create new sources of growth across asset management. Turning to insurance and wealth. We introduced our refreshed Sun Life brand and new tagline, Making Life Brighter, reflecting our continued focus on helping clients live healthier lives and achieve lifetime financial security. We are building on strong market positions across Canada, the U.S. and Asia and bringing more capabilities together to serve more client needs. In Asia, individual insurance sales increased 9% to $937 million. Malaysia, India and Indonesia led the growth, and Hong Kong showed continued strength.

In July, we launched Sun Life Private Wealth, bringing together our global insurance, wealth and advisory capabilities to meet the complex needs and rising demand from high net worth clients. In Canada, wealth AUM increased 11% to $284 billion supported by strong rollover activity and mutual fund sales. On the health side, we launched online counseling by Dialogue, bringing mental health care to clients when and where they need it. In the U.S., medical stop-loss sales increased 62% as we continue to have success winning high-quality business across our employee benefits and stop-loss businesses.

We helped Americans get the care they need through initiatives like personalized care navigation and providing specialized second opinions through expert cancer review. These capabilities also benefit employers by improving both health and cost outcomes. Across our markets, we’re combining the scale and reach of our leading businesses, differentiated solutions and create more value. We’re using AI to help us serve clients better while keeping humans at the center. With an AI- and digital-forward mindset, we’re freeing up time by reducing repetitive tasks so our people can spend more time with clients when it matters the most. In the U.S., we’re using machine learning on medical claims data to identify when employees qualify for supplemental health benefits.

We’ve also used AI to accelerate reimbursements of claims. In Indonesia, we enhanced claims automation to increase straight-through processing by 20%. Across the Asia region, we continue to launch new AI tools for advisors, including our latest solution which takes on routine tasks and streamlines client interactions. And in Canada, we’ve received two 2026 Global Insurance Innovation Awards, one for our enhanced mobile app with improved integration of online health capabilities and a second for our digital insurance experience.

These recognitions reflect our progress building a faster, more seamless client experience. Additionally, our continued focus on the digital client experience is delivering results including a 25% increase in group wealth lump-sum contributions and a 30% increase in health solutions. These examples are just a few of the ways we’re making it easier for clients to choose Sun Life and to deepen their relationships with us. Our AI-forward mindset is strengthening the value of our advice and enabling more efficient, scalable growth.

Turning to slide seven, our mix of business has built resilience despite headwinds for active asset management and for U.S. benefits and state. Dental Canada, Asia, Green Oak and our U.S. stop-loss business continue to deliver strong earnings, ROE and growth. MFS’s commitment to build active asset management in the right way is something we support despite the industry dynamics, and MFS continues to deliver solid earnings and cash flow to Sun Life Financial, supporting our buyback program.

U.S. benefits and Medicare/Medicaid are experiencing significant changes. We are focused on improving the disability experience in U.S. employee benefits through pricing actions and cost measures where appropriate. Depending on ongoing experience, these measures will take hold over a few quarters aligned to the pricing cycles. State, Medicare and Medicaid are seeing some signs of improvement and we’re focusing on states that see the value in partnering with a high-quality, trusted provider.

David and his team are taking the right steps and we have the scale and capabilities to reposition this business for growth over time. As we tackle these challenges, we continue to make meaningful progress against our medium-term objectives. Underlying EPS growth this quarter is in line with our objective of 10%. Our underlying return on equity of 19% is within reach of our 20% target. Our dividend payout ratio of 47% remains within our target 40% to 50% range and our balance sheet and capital fundamentals remain strong. Our LICAT ratio is industry leading. Our strong capital position gives us the flexibility to invest in our businesses while returning capital to shareholders.

On that note, I’m pleased to share that our board has approved a 4 cent increase to our quarterly dividend to $1 per common share. We remain well positioned to continue delivering sustainable, broad-based earnings. I’ll now turn it over to Tim.

Tim Deakin (Executive Vice President and Chief Financial Officer)

Thanks Kevin and good morning everyone. Turning to Slide 9, we delivered solid results in the third quarter with underlying net income of 1.146 billion, up 9% from the prior year. Underlying earnings per share were $2.05 reflecting higher earnings across all four business groups. Reported net income was 785 million. The difference from underlying net income primarily reflects unfavorable market-related impacts, largely from the rise in interest rates and flattening of the yield curve during the quarter, and costs related to bringing the Green Oak businesses together and the completion of the Bell Partners acquisition.

During the quarter, we completed our annual assumption review which led to a one-time reduction in reported earnings of $33 million, primarily from policyholder behavior assumption updates in Asia. This year’s assumption changes also included a $1.2 billion balance sheet reclassification between CSM and risk adjustment for the Canada Power Block. In aggregate, we expect these changes to have a slightly positive impact on go-forward shareholder underlying net income.

Turning to slide 10, Sun Life Asset Management underlying net income increased 6% to $297 million U.S., driven by higher earnings at Green Oak, including the contributions from Bell Partners, and higher fee-related margins driven primarily by expense management actions. While MFS earnings were broadly consistent with the prior year, reported net income reflects ongoing integration and restructuring costs related to bringing our private asset affiliates in Green Oak under one platform, which we expect to continue in 2027, and acquisition and integration costs associated with the closing of the Bell Partners transaction.

At MFS, gross flows were 25.5 billion U.S. and net outflows were 26.9 billion U.S., primarily in U.S. retail equity mutual funds, where returns continue to be impacted by an underweighting to technology stocks and investors’ preference for passive strategies. We expect these conditions to persist in the near term. Last year’s comparative included the highest institutional gross and net flow since 2022 driven by several large mandate wins. While U.S. retail flows remain challenged, the business continues to build momentum in key growth areas including ETFs and fixed income.

ETF net flows of over 650 million U.S. included two new ETF fund launches this quarter, and fixed income net inflows were 300 million U.S. Fundraising at Green Oak was 3.5 billion U.S. in the quarter, led by private credit and real estate following the record close of our largest private credit fund to date in Q2. Gross deployments of 7.1 billion U.S. were up over last year and last quarter, supported by higher activity in real estate across Europe, the U.S. and Asia, while private credit continued to see solid deployment in the U.S. lower mid-market lending.

Turning to slide 11, Canada underlying net income increased 6% to 422 million. Growth was driven by higher fee income in our wealth platform, business growth in Sun Life Health, favorable investment earnings and continued expense discipline. Morbidity experience remained positive but lower in the quarter and within our normal range of expectations. Reported net income was $418 million, reflecting favourable assumption changes and management actions, offset by unfavourable market-related impacts.

In Canada’s wealth businesses, assets under management and administration increased 11% to $284 billion as a result of continued strong rollover and individual mutual fund sales combined with strong equity market performance. Total insurance sales were consistent with the prior year, reflecting higher large case sales in Sun Life Health and lower participating life sales in individual insurance as we seek a balanced insurance portfolio. Turning to slide 12, U.S. underlying net income increased 32% to US$141 million, driven by strong medical stop-loss performance reflecting a lower loss ratio compared with the prior year. The January 1, 2026 block is now 30% complete and is performing in line with expectations. In-force management earnings also contributed to growth, supported by favorable mortality and credit experience. In employee benefits, results reflected elevated long-term disability incidence and severity during the quarter, reflecting a broader industry trend.

Disability claims were concentrated in specific industries and medical conditions, which we expect to persist in the near term. We are taking pricing and expense actions that should help moderate loss ratios over time. Dental results improved from the prior year, reflecting stabilized loss ratios and a more favorable mix of direct state contracts. Expense actions are progressing, yet lagged the pace of Medicaid membership declines from terminated contracts and industry trends.

Given these dynamics, we expect U.S. Dental underlying net income to remain muted as we continue repositioning the business. Reported net income was 77 million U.S., reflecting unfavorable market-related impacts, acquisition, integration and restructuring costs, intangible amortization in dental, and unfavorable assumption changes and management actions. Medical stop-loss sales increased 62%, demonstrating our ability to deliver strong growth while maintaining disciplined risk selection in a hardening market.

Growth continues to be supported by our differentiated health and risk solutions and advanced analytics capabilities. Commercial dental sales more than doubled this quarter, reflecting our strategic focus on this higher-margin segment of the dental market. Turning to slide 13, Asia underlying net income increased 8% on a constant currency basis to 227 million despite lower mortality experience gains and lower morbidity. Reported net income was 124 million, reflecting the impacts of assumption changes, management actions and restructuring costs. Asia individual insurance sales increased 9% to $937 million with growth across most markets. In Hong Kong, sales increased 6% across all channels amid an increasingly competitive environment, supported by the expansion of our advisor force to more than 4,100 advisors.

Malaysia, India and Indonesia delivered sales growth of 60%, 33% and 26% respectively, supported by strong bancassurance performance. New business CSM declined year over year, primarily reflecting the competitive environment in Hong Kong. Although margins are lower, they remain healthy and are expected to remain stable going forward. Turning to our capital position on slide 14, we ended the quarter with a LICAT ratio of 142%, down 3 percentage points from the second quarter, primarily reflecting the impact of interest rates. We continue to maintain an industry-leading capital position providing significant flexibility to support our growth priorities. We delivered book value per share growth of 5% to $42.79 and finished the quarter with a financial leverage ratio of 24.1%. Total CSM of $14.1 billion declined 2% from the prior year with the impact of assumption changes and management actions, CSM amortization and markets partially offset by new business CSM.

Turning to slide 15, in the quarter, we returned $780 million to shareholders through common shareholder dividends and share repurchases, delivering a dividend yield of 3.4%. We purchased $246 million of shares under our normal course issuer bid, partially offsetting the impact of the share issuance for the Bell Partners acquisition. In closing, our third quarter results reflect the benefits of our diversified business mix. Our strong balance sheet and capital position give us the flexibility to invest in growth, digital and AI, support our clients and return capital to shareholders.

We’re making consistent progress on our medium-term objectives, finishing the quarter with a return on equity of 19%, delivering 10% underlying EPS growth and operating within the target range for our dividend payout ratio. Looking ahead, we remain laser focused on executing our strategy and delivering continued sustainable long-term value for shareholders. With that, I’ll turn the call over to Darko to begin the Q and A portion of the call.

Darko Mihalych (SVP Head of Investor Relations)

Thank you, Kevin and Tim. To help ensure that all participants have an opportunity to ask questions this morning, please limit yourselves to one or two questions and then re-queue with any additional questions. I will now ask the operator to poll the participants.

OPERATOR

Thank you. We’ll now begin the question-and-answer session. To join the question queue, you may press star then 1 on your telephone keypad. You’ll hear a tone acknowledging your request. If you’re using a speakerphone, please pick up the handset before pressing any keys. To withdraw your question, please press star then 2. One moment please. The first question is from Doug Young with Desjardins Capital. Please go ahead.

Doug Young (Analyst at Desjardins Capital)

Hi. I guess it’s still good morning. Just maybe on the U.S. Medical stop results, you know, obviously encouraging trends. Just wondering if you can kind of maybe parse out how much of the improvement year over year was from pricing actions or morbidity or favorable prior-year development. And if you can tie that into how should we think about the sustainability of this as we look into 2027 and some of the actions that you’re taking.

David

Hey Doug, good morning, it’s David. Thanks for the question. Yeah, so we’re very pleased with our results overall in Health and Risk Solutions. We continue to benefit from a hardened market and are clearly benefiting from our differentiated capabilities as well. In terms of how you should think about it, our earnings are up actually 45% year over year after adjusting for the Q3.25 reserve change. So certainly our results are in line with our expectations and we feel good about where we sit based on claim development to date, and we’re watching carefully for the rest of the year. But overall we see good opportunities looking forward as we look at the pipeline for Q4 and 1/1 sales. And we’re continuing to benefit, like I said, from our differentiated capabilities and we expect to continue to build on the success we’ve had recently.

Doug Young (Analyst at Desjardins Capital)

And so maybe just to kind of follow up on that. Sorry, was someone else speaking or—I just wanted to follow up on this. Obviously 45% up is quite significant. I’m just trying to understand primarily where that came from. What was the main driver? Was it the pricing, prior development, morbidity—just a little bit more detail on that.

David

Yeah, so it’s really related to our pricing actions coming into the year and how we positioned ourselves for the 1/1 cycle. So if you look at our performance year to date, it really reflects the fact that our claims are in line with where we expected them to be. And so our loss ratio assumption is the same, but most of it is driven by volume and the year-over-year increase that we saw in both sales and persistency as a result of our position in the market.

Doug Young (Analyst at Desjardins Capital)

Okay, I’ll leave it there for that. And then just on dental, I guess two-pronged question. Obviously there’s a political change in the U.S., and prior administration—or not really prior administration—but a lot of the change in Medicaid/Medicare was driven by one side and you have a bit of a change in the political landscape in the U.S. How does that change your outlook for Medicaid/Medicare dental business, if at all? And then as you’re going through and repricing the U.S. dental, Medicaid/Medicare contracts and going through that, how do you think about the further risks of further intangible asset write-downs?

David

Yeah, so let me take the first half of that question. In terms of the outlook at dental, it’s certainly possible that there could be some favorable changes as a result of the recent administration—or the results of the election. I would say it’s a little too early to tell. What I can tell you is what we’re watching obviously is what policies are going to emerge from the administration going forward and from Democrats in particular. But we’ll be watching overall support for government programs and the financing and whether there’ll be any changes there.

We’re also going to pay close attention to eligibility and work requirements and whether or not those will be adjusted at all. And then I think we’re also paying attention to the local politics at the state level. Obviously, we have a broad-based business. We operate in 33 states. There were 36 governor races with a few changes. So a lot of funding priorities are also set at the state level when it comes to how they’ll approach their benefits. But overall, we’re staying focused on serving members in the states and making sure that we’re advocating on behalf of those members for the right level of funding and support for access to dental benefits overall.

And then maybe I’ll turn it to Tim for the second question.

Tim Deakin (Executive Vice President and Chief Financial Officer)

Thanks, Doug. On the intangibles question, there’s two parts to that. There’s goodwill associated with this business and there’s also the customer relationship intangibles. And typically we look at goodwill and intangible impairment testing in the fourth quarter, but where we sit right now, we’re feeling good about the overall business and the repositioning that David spoke about overall, and so that as it relates to goodwill. On the customer relationships, that’s probably more a function of what is the contract mix that we have going forward. As we discussed in the prepared remarks and David’s comments, work continues on repositioning the businesses. We’re looking to exit contracts that are not profitable going forward. And to the extent that any of those have an associated customer relationship intangible, there would be exposure there, but nothing material to report at this time.

Doug Young (Analyst at Desjardins Capital)

Appreciate the color. Thank you.

OPERATOR

The next question is from Alex Scott with Barclays. Please go ahead.

Alex Scott (Analyst at Barclays)

Hey, just wanted to see if you could opine on disability and just give us a little more detail around the types of claims you’re seeing—frequency, severity—what you expect in terms of looking into 4Q and into ’27 on some of those trends, specifically in the U.S.

David

Yeah, sure. Thanks for the question. So as Tim noted in his remarks, we have seen elevated LTD claims in the quarter. We saw them in terms of incidence, but also higher severity of those claims as well. And it was consistent with what we’re seeing being reported from other industry competitors in the market. While the disability loss ratio has been trending up over the last year or so more broadly across the industry, it was more acute this quarter—not just for us but for others.

In terms of the types of claims we’re seeing, certainly elevated mental health claims across the board, but it was somewhat broad-based—maybe a little more pronounced in some industries versus others. But we did see it more broad-based, consistent with what we’ve heard from others in the industry as well. In terms of our approach and what we’re going to do about it, really our focus is around, first of all, just helping people return to work and our claims and clinical management to help people get through their disability event and return to work. But also, obviously, pricing. Given the broader dynamic here, we will be continuing our pricing actions and make sure that we’re working to get paid appropriately for the risks that we’re taking. And then, as Tim also noted, there’ll be a little bit of focus, as there always is, on just prudent expense management as well.

So that’s our focus going forward. And our experience is reflecting what we’re hearing from the rest of the industry as well.

Alex Scott (Analyst at Barclays)

Okay, that’s all helpful. And then maybe if you could dig into MFS—and I hear some of the industry-level flow headwinds that have been out there—but is there anything you can tell us about the outlook for flows at MFS specifically and just how that’ll dovetail with the expense management that you seem to be executing on there? I’m just trying to get a better understanding of what to expect out of the trajectory of earnings, just considering it’s sort of closer to 15% to 20% annualized outflow at this point.

Ted

Hi, this is Ted. I’ll take the first part of that question at least. Thank you. The industry dynamics really are the driver of the outflows, so every truly active manager is experiencing the same headwinds that we are in the space. And as was mentioned in the prepared remarks, in this environment, equity indices have become dangerously concentrated, which create a high level of risk for equity investors. And we’re positioned to protect our clients better than the indices and the peers when markets broaden, but in the current environment, indices have become more concentrated.

As that’s happened, we’ve underperformed, along with pretty much all of our active equity peers. We’re concentrated in active equity space. We have a number of strategic initiatives to make sure that we’re growing in a number of other active public spaces. But for the moment, those industry headwinds—led by shifts to passive as passives outperformed active pretty much across the board—are what’s driving the flow experience. And we would expect those trends to persist.

Alex Scott (Analyst at Barclays)

Okay, thank you.

OPERATOR

The next question is from Gabrielle Deschaine with National Bank Financial. Please go ahead.

Gabrielle Deschaine (Analyst at National Bank Financial)

Hi, good morning. My first question is about the Canadian group business. You’re a bit of an outlier there. Sounds like your group disability experience is still positive. I’m wondering if you can explain why that might be relative to the industry and what your outlook is. Is there still a need to reprice given that you’re doing relatively well?

Jessica

Hi, Gabriel, this is Jessica. Yeah, I think last quarter I explained that I think our group business—we’ve been very focused on, one, disciplined pricing, a lot of management actions on both, I think, our operations front, using technology also to help us with that, and invest in our people. We continue to do that. And I think this quarter, you know, there’s fluctuations every quarter, but it still remains within the kind of variation that we see across.

So I think we haven’t seen any kind of out-of-the-ordinary pieces yet.

Gabrielle Deschaine (Analyst at National Bank Financial)

And then in the U.S., a bit of a different story. The 81 million of negative experience or experience losses—how much of that was this group LTD? Then, bigger picture, you talked about some specific industries where you’re seeing these incidence rates. Is this AI fallout? Some industries where job losses, or attrition—whatever you want to call it—is accelerating, so that’s having an impact on the incidence rates. And, if it’s possible, can you quantify the exposure to these industries?

What percentage of your overall book? Thanks.

David

Yeah, Gabriel, it’s David. Thanks for the question. In terms of the morbidity experience, it was predominantly driven by LTD. In both incidence and severity, that was really the driver. In terms of industries, we have a broad book. We certainly saw it show up in health care and manufacturing. But I wouldn’t say at this point that we can point to AI as a specific driver here. What we do know is that the economy and broader concern about jobs typically can lead to a spike like this, although we haven’t seen that for quite some time. I think the industry has had very favorable disability experience for many years now, but that certainly has been disrupted very recently.

So I think we’re just focused on the actions that I mentioned before. And certainly because of the nature of our book, we have a broad base across many industries. It’s not particularly overly concentrated in one segment or in one industry or with one type of occupation.

Gabrielle Deschaine (Analyst at National Bank Financial)

Okay, thank you.

OPERATOR

The next question is from Tom McKinnon with BMO Capital. Please go ahead.