Sun Life 2012 Annual Report Download - page 19

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MANAGEMENT’S
DISCUSSION
AND ANALYSIS
OVERVIEW 20
Corporate Overview 20
Corporate Developments 21
Outlook 22
Financial Objectives 22
Financial Highlights 23
Non-IFRS Financial Measures 24
Impact of Sale of U.S. Annuity Business 25
Accounting Adjustments 26
FINANCIAL PERFORMANCE 26
2012 Consolidated Results of Operations 26
Fourth Quarter 2012 Performance 32
Quarterly Information 36
BUSINESS SEGMENT RESULTS 37
SLF Canada 37
SLF U.S. 40
MFS Investment Management 43
SLF Asia 45
Corporate 47
Discontinued Operations 49
INVESTMENTS 50
Investment Profile 50
Debt Securities 50
Mortgages and Loans 53
Equities 54
Investment Properties 54
Derivative Financial Instruments and Risk Mitigation 55
Impaired Assets 55
Asset Default Provision 56
RISK MANAGEMENT 56
Risk Management Framework 56
Risk Philosophy and Principles 57
Governance Structure and Accountabilities 58
Risk Management Policies 59
Risk Categories 59
CAPITAL and LIQUIDITY MANAGEMENT 70
Principal Sources and Uses of Funds 70
Liquidity 71
Capital 71
Shareholder Dividends 74
Capital Adequacy 74
Financial Strength Ratings 75
Off-Balance Sheet Arrangements 76
Commitments, Guarantees, Contingencies and Reinsurance Matters 76
ACCOUNTING and CONTROL MATTERS 77
Critical Accounting Policies and Estimates 77
Changes in Accounting Policies 82
Disclosure Controls and Procedures 84
LEGAL and REGULATORY PROCEEDINGS 84
Management’s Discussion and Analysis Sun Life Financial Inc. Annual Report 2012 17