Sun Life 2012 Annual Report Download - page 38

Quarterly Information
The following table provides a summary of our results from Combined Operations for the eight most recently completed quarters. A
more complete discussion of our historical quarterly results can be found in our interim MD&As.
($ millions, unless otherwise noted) 2012(1) 2011(1)
Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Common shareholders’ net income
(loss)
Operating(2) 453 401 98 727 (221) (642) 425 472
Reported 395 383 90 686 (525) (691) 408 438
Diluted EPS (in dollars)
Operating(2) 0.76 0.68 0.17 1.24 (0.38) (1.11) 0.73 0.82
Reported 0.65 0.64 0.15 1.15 (0.90) (1.19) 0.68 0.73
Basic Reported EPS (in dollars)
Operating(2) 0.76 0.68 0.17 1.24 (0.38) (1.11) 0.74 0.82
Reported 0.66 0.64 0.15 1.17 (0.90) (1.19) 0.71 0.76
ROE
Operating(2) 12.9% 11.7% 2.9% 21.8% (6.5)% (18.1)% 12.0% 13.5%
Reported 11.3% 11.1% 2.6% 20.5% (15.4)% (19.4)% 11.5% 12.5%
Operating net income (loss) by
segment(2)
SLF Canada(2) 149 221 186 239 182 (26) 218 245
SLF U.S.(2) 211 18 (148) 434 (511) (608) 110 180
MFS(2) 85 80 68 69 68 65 70 67
SLF Asia(2) 50 35 15 29 44 26 30 44
Corporate(2) (42) 47 (23) (44) (4) (99) (3) (64)
Total operating net income (loss)(2) 453 401 98 727 (221) (642) 425 472
AUM(2) ($ billions) 533 515 496 494 466 459 474 469
(1) Some periods have been restated. See Accounting Adjustments.
(2) Represents a non-IFRS financial measure. See Use of Non-IFRS Financial Measures.
Third Quarter 2012
Operating net income of $401 million in the third quarter of 2012 reflected the positive impact of improved equity markets, partially
offset by declines in the fixed income reinvestment rates in our insurance contract liabilities that were driven by the continued low
interest rate environment, and negative impact from credit spread movements.
Second Quarter 2012
The operating net income of $98 million in the second quarter of 2012 reflected the impact of weak macro economic conditions, in
particular declining interest rates and equity markets. These losses were partially offset by the favourable impact of investment activity
on insurance contract liabilities due to investment in higher yielding and longer dated debt securities, the positive impact from credit
spread and swap spread movements and net realized gains on sales of AFS securities.
First Quarter 2012
The operating net income of $727 million in the first quarter of 2012 benefited from higher equity markets and increased interest rates,
the favourable impact of assumption changes and management actions and gains from increases in the value of real estate properties.
These gains were partially offset by unfavourable morbidity experience in SLF Canada’s GB business.
Fourth Quarter 2011
The operating loss of $221 million in the fourth quarter of 2011 was impacted significantly by a change related to Hedging in the
Liabilities. This resulted in a one-time charge to net income of $635 million. Partially offsetting the loss was the positive impact of a net
tax benefit related to the reorganization of our U.K. operations and net excess realized gains on AFS securities.
Third Quarter 2011
The operating loss of $642 million in the third quarter of 2011 was driven by increases in our insurance contract liabilities (net of
increases in asset values including hedges) of $684 million after-tax related to steep declines in both equity markets and interest rate
levels, and reflected primarily in the individual life and variable annuity businesses in SLF U.S. Updates to actuarial assumptions, which
generally occur in the third quarter of each year, further reduced net income by $273 million. Updates to actuarial assumptions included
unfavourable impacts related primarily to mortality and policyholder behaviour in SLF Canada and SLF U.S., which were partially offset
by changes related to investment income tax on universal life insurance policies in SLF Canada.
Second Quarter 2011
Operating net income of $425 million for the second quarter of 2011 reflected continued growth in our in-force business, the favourable
impact of investment results on insurance contract liabilities and positive credit experience. Uneven movements across the yield curve
and favourable spread movements more than offset lower yields on government securities, resulting in a net benefit from interest rates
in the second quarter. These net gains were partially offset by investments in growth and service initiatives in our businesses and
unfavourable policyholder experience.
36 Sun Life Financial Inc. Annual Report 2012 Management’s Discussion and Analysis