Sun Life 2010 Annual Report Download - page 49

GRS assets under administration of $48 billion in 2010 grew by 10% over 2009, with strong sales results, ongoing member
contributions and continued improvement in equity markets.
2011 Outlook and Priorities
The three largest Canadian insurers, including SLF Canada, account for over 60% of the life, health and annuity segments in Canada
as measured by premiums. Our key differentiators in today’s market include a strong capital position and brand profile, strong
distribution capabilities and economies of scale to support investment in technology, product innovation and client service.
Improvements in equity markets with continued volatility as well as narrower credit spreads and continuing low interest rates
characterized the business environment in 2010. Ongoing financial market volatility, historically low interest rates and continued high
unemployment rates will create a challenging operating environment in 2011.
In 2011, we will continue to focus on improving profitability through product mix, strengthening distribution capabilities and providing
value added products and services to our diverse client base.
In Individual Insurance & Investments, we will increase profitable sales through the Sun Life Financial Advisor Sales Force and
Wholesale distribution partners with a focus on lifetime relationships, holistic advice and product development. We will also focus on
leveraging SLGI, our new mutual fund company, in wealth accumulation and retirement strategies.
Our group businesses will grow profitability by increasing sales, particularly in the small- and medium-sized case markets and by
creating additional revenue opportunities by developing and offering innovative product and service solutions to larger accounts.
Additional sales growth will be achieved by leveraging product and service capabilities and the relationships with individual clients and
group plan members through voluntary benefit offerings and building on the success of the rollover business in both GRS and Group
Benefits.
We will continue to emphasize risk management including re-pricing of products such as Universal Life as a result of the continued
historically low interest rate environment and by actively managing our segregated funds risk profile and our group disability income
business. We will continue to focus on improvements in productivity through disciplined expense management while maintaining a high
level of client satisfaction.
SLF U.S.
Business Profile
SLF U.S. provides wealth accumulation, retirement income and protection solutions to help our customers achieve financial security
through its three business units – Annuities, Individual Insurance and Employee Benefits Group (“EBG”). For individuals at or nearing
retirement, our Annuity products provide customers with the security of not out living their savings. Our Individual Insurance business
offers life insurance solutions for wealth protection, wealth transfer and executive benefits. EBG offers group life, disability, medical
stop-loss and dental insurance solutions for employers and their employees.
Strategy
Our strategy is to deliver sustainable and profitable growth by focusing on markets and customers that value financial strength and
prudent risk management. These markets include baby boomers, small-to-mid size businesses and their employees and affluent
individuals. We continue to grow in our selected markets with customer-centric product solutions, strong distribution relationships,
brand development and focused execution.
Our comprehensive risk management program is central to our strategy. We leverage this core discipline to design solutions that
balance customer and shareholder value while driving sustainable growth.
Building industry-leading distribution capabilities is also central to our strategy. We partner with independent financial advisors and
brokers to deliver our solutions to their clients. We support these financial intermediaries through a team of over 300 sales
professionals located across the United States.
We have aligned our business model to leverage shared services for Information Technology, Operations, Finance, Risk Management,
Marketing, Human Resources and Legal to drive operational efficiency and to develop centers of excellence.
2010 Business Highlights
• In EBG, we reorganized our distribution model to increase specialization and better align with key segments such as the small-to-
mid sized and voluntary markets. EBG reported record sales of US$612 million in 2010
• We continued to launch innovative variable annuity products that help customers reach their retirement goals while improving our
risk profile
• In Individual Insurance, our distribution model was expanded to increase focus on direct-to-producer capabilities to drive growth.
We doubled the number of external life wholesalers and shifted resources to relationship management to increase shelf space
directly with key distribution partners
• In Individual Insurance, we exited the no-lapse guarantee (“NLG”) universal life business to focus on product lines which have
greater potential for sustainable and profitable growth
• SLF U.S. announced the sponsorship of Sun Life Financial Stadium, home of the Miami Dolphins, helping to increase aided
consumer awareness to 18% from 6% in just 5 months. We also implemented the Rising Star Awards program in 7 cities, a
philanthropic initiative in the field of education
• We continued to focus on expense management and improve operational efficiency, while maintaining a high level of customer
satisfaction. Overall expenses were relatively flat from 2009 levels as a result of productivity improvements
Management’s Discussion and Analysis Sun Life Financial Inc. Annual Report 2010 45