Sun Life 2012 Annual Report Download - page 139
Download and view the complete annual report
Please find page 139 of the 2012 Sun Life annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129 -
130 -
131 -
132 -
133 -
134 -
135 -
136 -
137 -
138 -
139 -
140 -
141 -
142 -
143 -
144 -
145 -
146 -
147 -
148 -
149 -
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
-
173
-
174
-
175
-
176
 |
 |
11.A.v Impact of Changes in Assumptions or Methodology
Impact of Changes in Assumptions or Methodology on Insurance Contract Liabilities net of Reinsurance Assets – 2012
Assumption or methodology
Policy liabilities increase
(decrease) before income taxes Description
Mortality / Morbidity $20 Driven primarily by updates to reflect recent
experience in SLF U.S. and SLF Canada.
Lapse and other policyholder behavior 65 Largely due to a reduction in SLF U.S. variable annuity
lapse assumptions reflecting recent company and
industry experience.
Expense (6) Reflects impact of updates to expenses and the
favourable impact of lower fund management fees.
Investment returns 46 Resulting primarily from updates to our economic
scenario generator, partially offset by an increase in
average long-term credit spreads.
Model enhancements and other (160) Reflects the impact of modeling enhancements and
assumptions relating to our ability to recapture certain
reinsurance treaties in the U.S.
Total impact $ (35)
Impact of Changes in Assumptions or Methodology on Insurance Contract Liabilities net of Reinsurance Assets – 2011
Assumption or methodology
Policy liabilities increase
(decrease) before income taxes Description
Mortality / Morbidity(1) $ 275 Primarily due to updates to reflect new industry
guidance from the CIA related to mortality
improvement.
Lapse and other policyholder behavior 405 Reflects higher lapse rates on term insurance renewals
in SLF Canada, as well as updates for premium
persistency in Individual Insurance in SLF U.S.
Expense 10 Impact of reflecting recent experience studies across
the Company (i.e. higher unit costs).
Investment returns 192 Largely due to updates to a number of investment
assumptions including updates to real estate returns
and the impact of a lower interest rate environment,
partially offset by changes to asset default
assumptions.
Model enhancements and other (207) Modelling enhancements to improve the projection of
future cash flows across a number of our businesses.
Hedging in the liabilities 939 Reflects a change in methodology to provide for the
cost of hedging our existing variable annuity and
segregated fund contracts over their remaining lifetime.
Total impact $ 1,614
(1) Balances have been restated. Refer to Note 2.
11.A.vi Gross Claims and Benefits Paid
Gross claims and benefits paid consist of the following:
For the years ended December 31 2012 2011
Maturities and surrenders $ 2,764 $ 3,052
Annuity payments 1,128 1,091
Death and disability benefits 2,803 2,631
Health benefits 3,663 3,526
Policyholder dividends and interest on claims and deposits 989 852
Total gross claims and benefits paid $ 11,347 $ 11,152
Notes to Consolidated Financial Statements Sun Life Financial Inc. Annual Report 2012 137