Sun Life 2012 Annual Report Download - page 20

Management’s Discussion and Analysis
February 13, 2013
The following defined terms are used in this document.
Abbreviation Description Abbreviation Description
AFS Available-for-sale ISDA International Swaps and Derivatives
Association, Inc.
AIF Annual Information Form MCCSR Minimum Continuing Capital and Surplus
Requirements
ASO Administrative Services Only MD&A Management’s Discussion and Analysis
AUM Assets Under Management MFS MFS Investment Management
BIF Business In-force OCI Other Comprehensive Income
CAL Company Action Level OSFI Office of the Superintendent of Financial
Institutions
CEO Chief Executive Officer OTC Over-the-counter
CFO Chief Financial Officer ROE Return on Equity
CGU Cash Generating Unit SEC United States Securities and Exchange
Commission
DCAT Dynamic Capital Adequacy Testing SLEECS Sun Life ExchangEable Capital Securities
EBG Employee Benefits Group SLF Asia Sun Life Financial Asia
EPS Earnings Per Share SLF Canada Sun Life Financial Canada
FVTPL Fair Value Through Profit and Loss SLF Inc. Sun Life Financial Inc.
GB Group Benefits SLF U.K. SLF’s United Kingdom business unit
GRS Group Retirement Services SLF U.S. Sun Life Financial United States
IASB International Accounting Standards Board SLGI Sun Life Global Investments (Canada) Inc.
IAS International Accounting Standards Sun Life
Assurance
Sun Life Assurance Company of Canada
IFRS International Financial Reporting Standards Sun Life (U.S.) 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, 2012 and amounts are expressed in Canadian dollars. Where information at and for the year ended
December 31, 2012 is not available, information available for the latest period before December 31, 2012 is used. Except where
otherwise noted, financial information is presented in accordance with IFRS 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 our AIF for the year ended December 31, 2012, and other documents filed with securities
regulators in Canada and with the SEC, which may be accessed at www.sedar.com and www.sec.gov, respectively.
On December 17, 2012, we entered into a definitive stock purchase agreement to sell our U.S. annuities business and certain of our
U.S. life insurance businesses (the “U.S. Annuity Business”), including all of the issued and outstanding shares of Sun Life (U.S.). Our
U.S. Annuity Business includes our domestic U.S. variable annuity, fixed annuity and fixed indexed annuity products, corporate and
bank-owned life insurance products and variable life insurance products. The transaction is subject to regulatory approvals and other
closing conditions and is expected to close before the end of the second quarter of 2013.
As a result of this agreement, we have defined our U.S. Annuity Business as “Discontinued Operations”, the remaining operations as
“Continuing Operations”, and the total Discontinued Operations and Continuing Operations as “Combined Operations”. Note that in
accordance with the requirements of IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, income and expenses
associated with the business to be sold have been classified as discontinued operations in our Consolidated Statements of Operations
for all periods presented. Associated assets and liabilities have been classified as held for sale in our Consolidated Statements of
Financial Position prospectively from December 31, 2012 and comparative information has not been adjusted. Unless otherwise
indicated, net income (loss), and other financial information based on net income (loss), reflect the results of our Combined
Operations for all periods presented.
18 Sun Life Financial Inc. Annual Report 2012 Management’s Discussion and Analysis