Sun Life 2010 Annual Report Download - page 22

Management’s Discussion and Analysis
February 16, 2011
The following table provides a list of abbreviations frequently used throughout this document.
Abbreviation Description Abbreviation Description
AIF
AFS
AUM
EPS
GAAP
HFT
IFRS
OSFI
Annual Information Form
Available-for-sale
Assets Under Management
Earnings Per Share
Generally Accepted Accounting Principles
Held-for-trading
International Financial Reporting Standards
Office of the Superintendent of Financial
Institutions, Canada
MCCSR
MD&A
OCI
ROE
SEC
Sun Life
Assurance
SLF Inc.
Sun Life
(U.S.)
Minimum Continuing Capital and Surplus
Requirements
Management’s Discussion and Analysis
Other Comprehensive Income
Return on Equity
United States Securities and Exchange
Commission
Sun Life Assurance Company of Canada
Sun Life Financial Inc.
Sun Life Assurance Company of Canada
(U.S.)
In this MD&A, SLF Inc. and its consolidated subsidiaries, significant equity investments and joint ventures are collectively referred to as
“Sun Life Financial”, the “Company”, “we”, “our” or “us”. Unless otherwise indicated, all information in this MD&A is presented as at and
for the year ended December 31, 2010, and amounts are expressed in Canadian dollars. Where information at and for the year ended
December 31, 2010, is not available, information available for the latest period before December 31, 2010, is used. Financial
information, except where otherwise noted, is presented in accordance with Canadian GAAP, and the accounting requirements of
OSFI. Additional information relating to the Company can be found in SLF Inc.’s Consolidated Financial Statements and accompanying
notes (“Consolidated Financial Statements”) and AIF for the year ended December 31, 2010, and other documents filed with securities
regulators in Canada, which may be accessed at www.sedar.com, and with the SEC, which may be accessed at www.sec.gov.
Use of Non-GAAP Financial Measures
We evaluate our performance on the basis of financial measures prepared in accordance with GAAP and certain non-GAAP financial
measures. We believe that these non-GAAP financial measures provide information useful to investors in understanding our
performance and facilitate the comparison of the quarterly and full-year results of our ongoing operations. These non-GAAP financial
measures do not have any standardized meaning and may not be comparable with similar measures used by other companies. They
should not be viewed as an alternative to measures of financial performance determined in accordance with GAAP. Additional
information concerning these non-GAAP financial measures and reconciliations to GAAP measures are included in this MD&A under
the heading “Non-GAAP Financial Measures”.
Forward-looking Information
Certain statements contained or incorporated by reference in this MD&A, including those relating to our strategies and other statements
that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as “expects”,
“anticipates”, “intends”, “plans”, “believes”, “estimates” or similar expressions, are forward-looking information within the meaning of
securities laws. Forward-looking information includes the information concerning possible or assumed future results of operations of
Sun Life Financial including those set out in this MD&A under Enterprise Mission, Vision, Values and Strategy, Business Profile,
Outlook, Financial Objectives, Critical Accounting Policies and Estimates, Changes in Accounting Policies, Financial Performance, SLF
Canada, SLF U.S., MFS Investment Management, SLF Asia, Corporate, Investments, Risk Management and Capital and Liquidity
Management. These statements represent our expectations, estimates and projections regarding future events and are not historical
facts. The forward-looking information contained or incorporated by reference in this MD&A are stated as of the date hereof, are not
guarantees of future performance and involve risks and uncertainties that are difficult to predict. Future results and shareholder value
may differ materially from those expressed in the forward-looking statements contained or incorporated by reference in this MD&A due
to, among other factors, the matters set out under Critical Accounting Policies and Estimates and Risk Management of this MD&A and
the factors detailed in its other filings with Canadian and U.S. securities regulators, including its annual and interim financial statements
and the notes thereto, which are available for review at www.sedar.com and www.sec.gov.
Factors that could cause actual results to differ materially from expectations include, but are not limited to, changes in legislation and
regulations including capital requirements and tax laws; investment losses and defaults and changes to investment valuations; the
performance of equity markets; the cost, effectiveness and availability of risk-mitigating hedging programs; losses relating to real estate
investments; the creditworthiness of guarantors and counterparties to derivatives; changes and volatility in interest rates and credit/
swap spreads; other market risks including movement in credit spreads; risks relating to product design and pricing; market conditions
that adversely affect the Company’s capital position or its ability to raise capital; possible sustained economic downturn; regulatory
investigations and proceedings and private legal proceedings and class actions relating to practices in the mutual fund, insurance,
annuity and financial product distribution industries; risks related to market liquidity; downgrades in financial strength or credit ratings;
the ability to attract and retain employees; risks relating to financial modelling errors; the performance of the Company’s investments
and investment portfolios managed for clients such as segregated and mutual funds; the impact of mergers and acquisitions; insurance
risks including mortality, morbidity, including the occurrence of natural or man-made disasters, pandemic diseases and acts of
terrorism; adverse mortality and morbidity experience; uncertainty in the rate of mortality improvement; risks relating to policyholder
behaviour; the inability to maintain strong distribution channels and risks relating to market conduct by intermediaries and agents; risks
relating to operations in Asia including risks relating to joint ventures; the impact of competition; currency exchange rate fluctuations;
business continuity risks; failure of information systems and Internet-enabled technology; breaches of computer security and privacy;
dependence on third-party relationships including outsourcing arrangements; the impact of adverse results in the closed block of
business; the potential for financial loss related to changes in the environment; the availability, cost and effectiveness of reinsurance;
the ineffectiveness of risk management policies and procedures; the impact of higher-than-expected future expense cash flows; and
the risks relating to the significant estimates and judgment in calculating taxes. The Company does not undertake any obligation to
update or revise its forward-looking information to reflect events or circumstances after the date of this report or to reflect the
occurrence of unanticipated events, except as required by law.
18 Sun Life Financial Inc. Annual Report 2010 Management’s Discussion and Analysis