An anonymous director reports

SUN LIFE REACHES SETTLEMENT IN PRINCIPLE TO RESOLVE CLASS ACTION

Sun Life Financial Inc. has reached a settlement in principle to resolve a class action relating to individual life insurance policies sold and issued by the Metropolitan Life Insurance Company in the 1980s and 1990s, which Sun Life inherited through historical Canadian acquisitions. This matter does not involve any policies or products sold by Sun Life.

The proposed settlement will resolve this long-standing litigation, providing certainty for all parties. The settlement and notice to class members are subject to court approval. If approved, Sun Life would provide up to $213.5-million settlement value to eligible policyholders, which is expected to result in a charge to the first quarter of 2026 reported net income of approximately $145-million.

These proceedings relate to the interpretation of policy language in these historic MetLife policies. MetLife provided an indemnity relating to these policies. Accordingly, if the settlement is approved by the court, Sun Life will seek full recourse from MetLife pursuant to the indemnity.

These legal proceedings have been previously disclosed in Sun Life's consolidated financial statements, most recently in Note 22G of the company's 2025 annual consolidated financial statements.

About Sun Life Financial Inc.

Sun Life is a leading international financial services organization providing asset management, wealth, insurance and health solutions to individual and institutional clients. Sun Life has operations in a number of markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda. As of Dec. 31, 2025, Sun Life had total assets under management of $1.6-trillion.

We seek Safe Harbor.