Sun Life 2015 Annual Report Download - page 130

Past Due and Impaired Mortgages and Loans
The distribution of mortgages and loans past due or impaired is shown in the following tables:
Gross carrying value Allowance for losses
As at December 31, 2015 Mortgages Loans Total Mortgages Loans Total
Not past due $ 14,690 $ 24,279 $ 38,969 $ – $ – $ –
Past due:
Past due less than 90 days 73239 –––
Past due 90 days or more ––– –––
Impaired 137 7 144 42 7 49
Total $ 14,834 $ 24,318 $ 39,152 $ 42 $ 7 $ 49
Gross carrying value Allowance for losses
As at December 31, 2014 Mortgages Loans Total Mortgages Loans Total
Not past due $ 13,316 $ 20,248 $ 33,564 $ – $ – $ –
Past due:
Past due less than 90 days 14 – 14 – – –
Past due 90 days or more – – – – – –
Impaired 118 36 154 37 16 53
Total $ 13,448 $ 20,284 $ 33,732 $ 37 $ 16 $ 53
Changes in Allowances for Losses
The changes in the allowances for losses are as follows:
Mortgages Loans Total
Balance, January 1, 2014 $ 47 $ 16 $ 63
Provision for (reversal of) losses (9) – (9)
Write-offs, net of recoveries (6) – (6)
Foreign exchange rate movements 5 – 5
Balance, December 31, 2014 $ 37 $ 16 $ 53
Provision for (reversal of) losses 1 (12) (11)
Write-offs, net of recoveries, and other adjustments (3) 3 –
Foreign exchange rate movements 7–7
Balance, December 31, 2015 $ 42 $ 7 $ 49
6.B Market Risk
Risk Description
We are exposed to financial and capital market risks – the risk that the fair value or future cash flows of an insurance contract or
financial instrument will fluctuate because of changes or volatility in market prices. Market risk includes equity market, interest rate and
spread, real estate and foreign currency risks.
Market Risk Management Governance and Control
We employ a wide range of market risk management practices and controls, as outlined below:
• Market risk governance practices are in place, including independent monitoring and review and reporting to senior management
and the Risk Review Committee.
• Risk appetite limits have been established for equity market, interest rate, real estate and foreign currency risks.
• Income and regulatory capital sensitivities are monitored, managed and reported against pre-established risk limits.
• Comprehensive Asset Liability Management and hedging policies, programs and practices are in place.
• Regulatory solvency requirements include risk-based capital requirements and are monitored regularly.
• Product Design and Pricing Policy requires a detailed risk assessment and pricing provisions for material risks.
• Stress-testing techniques, such as DCAT, are used to measure the effects of large and sustained adverse market movements.
• Insurance contract liabilities are established in accordance with Canadian actuarial standards of practice.
• Internal capital targets are established at an enterprise level to cover all risks and are above regulatory supervisory and minimum
targets. Actual capital levels are monitored to ensure they exceed internal targets.
128 Sun Life Financial Inc. Annual Report 2015 Notes to Consolidated Financial Statements