Sun Life 2012 Annual Report Download - page 49

On a local currency basis, sales of individual insurance products by Sun Life Everbright Company Limited were up 17% from 2011, with
strong sales growth across the agency, bancassurance and telemarketing channels.
2013 Outlook and Priorities
The Asia life insurance industry has benefited from macro economic growth, favourable demographics, low penetration rates for
insurance and significant growth of the middle class. These positive factors have been tempered by the impact of tighter regulatory
regimes after the global financial crisis, very low interest rates in Hong Kong and increased competition from new entrants. We expect
a challenging operating environment in 2013, but one with opportunities for prepared and quality players to significantly outperform
their peers.
In order to strengthen our competitive position and grow SLF Asia to be a more significant contributor to overall earnings, we intend to
focus efforts on the following strategic initiatives:
• Continuing to launch innovative and customer-focused products reflecting each market’s specific and evolving needs;
• Enhancing our agency force, both in quantity and quality;
• Further expanding alternative channels such as bancassurance and independent financial advisors, particularly in Indonesia,
Philippines, Vietnam and Hong Kong;
• Further expanding into new markets, such as Vietnam and Malaysia;
• Further developing our asset management businesses; and
• Enhancing risk management and operational efficiency to improve profitability, particularly in India and China, and to support future
growth across the region.
Corporate
Our Corporate segment includes the results of SLF U.K. and Corporate Support operations that consist of the Company’s run-off
reinsurance business as well as investment income, expenses, capital and other items not allocated to Sun Life Financial’s other
business segments. Our run-off reinsurance business is a closed block of reinsurance assumed from other insurers. Coverage includes
individual disability income, long-term care, group long-term disability and personal accident and medical coverage, as well as
guaranteed minimum income and death benefit coverage. Discontinued Operations in Corporate relate to Corporate Support only.
Financial and Business Results
Summary statements of operations
($ millions) 2012 2011
Net premiums 323 301
Net investment income 652 945
Fee income 91 115
Revenue from Continuing Operations 1,066 1,361
Client disbursements and change in insurance contract liabilities 796 1,277
Commissions and other expenses 363 437
Income tax expense (benefit) (140) (241)
Dividends paid to preferred shareholders 120 100
Reported net income (loss) from Continuing Operations (73) (212)
Less: Restructuring and other related costs:
SLF U.K. –(3)
Corporate Support (4) (10)
Operating net income (loss) from Continuing Operations(1) (69) (199)
Operating net income (loss)(1) (62) (170)
(1) Represents a non-IFRS financial measure. See Use of Non-IFRS Financial Measures.
Corporate had a reported loss from Continuing Operations of $73 million in 2012, compared to a reported loss from Continuing
Operations of $212 million in 2011. The operating loss from Continuing Operations was $69 million in 2012, compared to an operating
loss from Continuing Operations of $199 million in 2011. Operating net income (loss) in Corporate excludes restructuring and other
related costs, which are set out in the table above.
In Corporate Support, the reported loss from Continuing Operations was $286 million in 2012, compared to a reported loss of
$365 million in 2011. Restructuring and other related costs were $4 million, compared to $10 million in 2011. The operating loss from
Continuing Operations was $282 million in 2012, compared to an operating loss from Continuing Operations of $355 million in 2011.
The loss from Continuing Operations in 2012 reflected lower expenses and lower losses in our run-off reinsurance business than the
prior year. The loss from Continuing Operations in 2011 included an impairment of AFS securities. Both 2012 and 2011 reflected the
net cost of reinsurance for the insured business in SLF Canada’s GB operations.
Management’s Discussion and Analysis Sun Life Financial Inc. Annual Report 2012 47