Leadership in Action: Sun Life’s Helena Pagano and the Human-Centric Path to Financial Resilience

Sun Life Financial’s recent recognition of Helena Pagano, its Executive Vice-President and Chief People and Culture Officer, as a winner of the 2025 Globe and Mail Report on Business Best Executive Award, underscores a critical truth: the most enduring corporate successes are built on people-first strategies. Pagano’s leadership has not only reshaped Sun Life’s culture but also delivered measurable financial and operational benefits, positioning the firm as a standout in an industry increasingly focused on ESG (Environmental, Social, Governance) integration.

The Pagano Effect: From Culture to Capital

Pagano’s initiatives—such as workplace programs for women’s health, menopause support, and inclusivity—have directly contributed to the highest talent retention rates in a decade, according to Sun Life’s recent disclosures. This is no trivial achievement. High retention reduces recruitment and training costs, stabilizes operations, and fosters a culture of innovation. For investors, this translates to a more predictable earnings trajectory.

Consider the numbers:
- Sun Life’s total assets under management (AUM) hit $1.54 trillion as of December 2024, up 10% year-over-year, fueled by net inflows in its asset management division.
- The firm’s LICAT ratio—a key measure of capital adequacy—reached 152%, reflecting robust financial health.
- Strategic moves like its partnership with Indigenous-owned Tribal Wi-Chi-Way-Win Capital Corporation in Canada’s dental sector not only advance social goals but also expand market reach.

These metrics align with Pagano’s “Purpose-driven culture” mantra, which emphasizes how employee engagement drives client trust and long-term growth.

Navigating Challenges with Resilience

Despite these strengths, Sun Life faces headwinds. The $186 million impairment charge in Vietnam (due to regulatory shifts) and U.S. morbidity issues in medical stop-loss programs highlight the risks of global operations. However, these challenges are being managed within a broader framework of diversification and risk mitigation.

For instance, while Q4 2024 reported net income fell 68% year-over-year due to non-recurring charges, underlying net income remained resilient, growing 3% annually. This distinction is critical: one-time costs are not eroding the firm’s core value. Meanwhile, Asia’s individual protection sales surged 12% in Q4 2024, and Canada’s wealth management AUM expanded despite macroeconomic headwinds.

Why Investors Should Take Note

Sun Life’s story is a case study in balancing human capital investments with financial discipline. Pagano’s leadership has amplified the firm’s ESG credentials at a time when institutional investors increasingly prioritize such metrics. Here’s why this matters:
1. ESG-Driven Capital Allocation:
- Sun Life’s alignment with initiatives like the Menopause Works Here Campaign and its Great Place to Work® certifications enhance its appeal to ESG-focused funds.
- A growing body of research shows that firms with strong ESG profiles outperform peers over the long term.

1. Operational Leverage:

2. Reduced turnover lowers costs, while higher employee engagement correlates with better client retention. For instance, Sun Life’s dental subsidiary, DentaQuest, saw growth in underserved markets through partnerships rooted in Pagano’s inclusion strategies.

3. Global Diversification:

4. With operations in 30+ markets, Sun Life mitigates regional risks. Asia’s 22% underlying net income growth in 2024 highlights the payoff of this strategy.

Conclusion: A Leader in Both Culture and Capital

Helena Pagano’s award is more than a personal milestone—it’s a testament to Sun Life’s systemic commitment to human-centric leadership. The data tells a clear story:

• Financial Resilience: AUM growth, LICAT strength, and underlying profitability prove the model works.
• Strategic Agility: Challenges in Vietnam and the U.S. are managed within a broader framework of diversification.
• ESG Integration: Sun Life’s culture-driven initiatives align with investor demand for purpose-driven businesses.

As the company prepares to report Q1 2025 results (due May 8), investors should watch for continued momentum in Asia and Canada, as well as progress in resolving U.S. morbidity issues. With Pagano’s leadership anchoring its culture, Sun Life is positioned to turn these strengths into sustained value creation.

In an era where talent and trust are the new currencies of corporate success, Sun Life’s path offers a blueprint for the future—and investors would be wise to take note.