11:43 AM EDT, 03/11/2026 (MT Newswires) -- Sun Life Financial ( SLF ) chief financial officer Tim Deacon this week flagged a potential upside to the company's medium-term objectives due to the benefits of AI.

According to Deacon, who spoke at the RBC Global Financial Institutions Conference on Tuesday, the targets were set before Sun Life understood the potential benefits from AI, giving it confidence in its ~10% EPS growth and ~20% ROE targets. As AI benefits were not originally factored in, this could give potential upside to the targets or potential de-risking in wholesale market downturns, Deacon added.

The company also repriced its medical stop-loss renewal business by ~17% into 2026. Sun Life is the largest independent underwriter of stop-loss in the U.S., combining the business with its employee benefits business. Return on equity for the portfolio is also above the lifeco's ~20% target at the consolidated level and the expectation is for the business to perform well in a hardening market in 2026.

Sun Life sees near-term improvements in its dental business from expense reduction activities but says it may take one to two repricing cycles to catch up to claims.

RBC has a sector perform rating and $95 price target on Sun Life.

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