Sun Life 2015 Annual Report Download - page 13

Forward-looking Statements
From time to time, the Company makes written or oral forward-looking statements within the meaning of certain securities laws,
including the “safe harbour” provisions of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian
securities legislation. Forward-looking statements contained in this document include (i) statements relating to our growth strategies,
financial objectives, future results of operations, and strategic goals; (ii) statements concerning our medium-term income objective and
our medium-term ROE objective which were established in March 2015 (collectively, our “medium-term financial objectives”);
(iii) statements relating to productivity and expense initiatives, growth initiatives, 2016 Outlook and Priorities, and other business
objectives; (iv) statements that are predictive in nature or that depend upon or refer to future events or conditions; (v) statements
concerning the low interest rate environment; (vi) statements relating to cash flows, anticipated payment obligations, funding
requirements and our ability to meet these obligations; (vii) statements relating to tax provisions; (viii) statements relating to risks and
uncertainties; and (ix) statements that include words such as “aim”, “anticipate”, “assumption”, “believe”, “could”, “estimate”, “expect”,
“goal”, “initiatives”, “intend”, “may”, “objective”, “outlook”, “plan”, “project”, “seek”, “should”, “strategy”, “strive”, “target”, “will” and similar
expressions are forward-looking statements. Forward-looking statements include the information concerning our possible or assumed
future results of operations. These statements represent our current expectations, estimates and projections regarding future events
and are not historical facts. Forward-looking statements are not a guarantee of future performance and involve risks and uncertainties
that are difficult to predict. Future results and shareholder value may differ materially from those expressed in these forward-looking
statements due to, among other factors, the matters set out in this document under the headings Corporate Developments and Actions,
Assumption Changes and Management Actions, Risk Management, Capital Management, and Critical Accounting Policies and
Estimates and in SLF Inc.’s 2015 AIF under the heading Risk Factors, and the factors detailed in SLF Inc.’s other filings with Canadian
and U.S. securities regulators, which are available for review at www.sedar.com and www.sec.gov.
Important risk factors that could cause our assumptions and estimates to be inaccurate and our actual results or events to differ
materially from those expressed in or implied by the forward-looking statements contained in this document, including our medium-term
financial objectives, are set out below. The realization of our forward-looking statements, including our ability to meet our medium-term
financial objectives, essentially depends on our business performance which, in turn, is subject to many risks. Factors that could cause
actual results to differ materially from expectations include, but are not limited to: credit risks – related to issuers of securities held in
our investment portfolio, debtors, structured securities, reinsurers, counterparties, other financial institutions and other entities;
market risks – related to the performance of equity markets; changes or volatility in interest rates or credit spreads or swap spreads;
real estate investments; and fluctuations in foreign currency exchange rates; insurance risks – related to mortality, morbidity, longevity
and policyholder behaviour; product design and pricing; the impact of higher-than-expected future expenses; and the availability, cost
and effectiveness of reinsurance; business and strategic risks – related to global economic and political conditions; changes in
distribution channels or customer behaviour including risks relating to market conduct by intermediaries and agents; changes in the
competitive, legal or regulatory environment, including capital requirements and tax laws; tax matters, including estimates and
judgments used in calculating taxes; the design and implementation of business strategies; the performance of our investments and
investment portfolios managed for clients such as segregated and mutual funds; our international operations, including our joint
ventures; market conditions that affect our capital position or ability to raise capital; downgrades in financial strength or credit ratings;
and the impact of mergers, acquisitions and divestitures; operational risks – related to breaches or failure of information system
security and privacy, including cyber-attacks; our ability to attract and retain employees; the execution and integration of mergers,
acquisitions and divestitures; legal, regulatory compliance and market conduct, including the impact of regulatory inquiries and
investigations; our information technology infrastructure; a failure of information systems and Internet-enabled technology; dependence
on third-party relationships, including outsourcing arrangements; business continuity; model errors; information management; the
environment, environmental laws and regulations and third-party policies; and liquidity risks – the possibility that we will not be able
to fund all cash outflow commitments as they fall due.
The following risk factors are related to our pending acquisition of the U.S. Employee Benefits business of Assurant, Inc. and could
have a material adverse effect on our financial results: (i) ability to complete the transaction as planned, including the separation and
integration of the transferred business; (ii) failure of the parties to obtain necessary consents and approvals required under the
definitive agreement or to otherwise satisfy the conditions to the completion of the transaction in a timely manner, or at all; (iii) our
ability to realize the financial and strategic benefits of the transaction; (iv) failure to effectively or efficiently restructure and reorganize
our U.S. employee benefits business after the transaction has closed; and (v) the impact of the dedication of our resources to the
completion of the transaction and integration of the business and the effect the transaction may have on our continuing operations in
the U.S. These risks all could have an impact on our business relationships (including with future and prospective employees,
customers, distributors and partners) and could have a material adverse effect on our current and future operations, financial conditions
and prospects.
Management’s Discussion and Analysis Sun Life Financial Inc. Annual Report 2015 11