Sun Life 2015 Annual Report Download - page 15

Leader in U.S. group benefits and International high net worth solutions
• On September 9, 2015, we entered into an agreement to acquire Assurant, Inc.’s U.S. Employee Benefits business (“Assurant EB”).
The acquisition will increase scale in our life and disability business, add a leading dental business with the second largest dental
provider network in the U.S., and accelerate the development of our worksite voluntary business. The acquisition also includes
Disability Reinsurance Management Services, a business that provides turnkey disability management capabilities to third-party
carriers. The transaction is expected to close by the end of the first quarter of 2016, subject to regulatory approvals and customary
closing conditions.
• In U.S. Group Benefits, the expense, claims management and pricing actions initiated in 2014 and continued throughout 2015
improved the profitability of our U.S. life and disability business. Our U.S. medical stop-loss business continued to generate strong,
profitable growth in 2015, reflecting increased sales and business in-force, and strong margins. Stop-loss results benefited from our
strong leadership position, enhanced underwriting tools and expanded distribution.
• We continued to invest in our U.S. Group Benefits business in 2015, adding new capabilities to serve larger customers,
complementing our strength in the small and middle market segments. We also increased our presence on private exchanges, and
now participate on nine exchanges.
• In International, we re-focused the business on the life insurance segment, where there is greater opportunity to achieve growth and
profitability and where we will continue to deliver a strong value proposition to our customers that aligns strategically to our core
competencies. At the same time, the International wealth business was closed to new sales in December 2015.
Growing Asia through distribution excellence in higher growth markets
• We are strengthening our presence in Asia through agreements to increase our joint venture ownership in PVI Sun Life Insurance
Company Limited (“PVI Sun Life”) in Vietnam, which was completed on January 7, 2016, and Birla Sun Life Insurance Company
Limited (“BSLI”) in India, which is expected to close by the end of the first quarter of 2016, to 75% and 49%, respectively.
• We celebrated 120 years of business as a leading life insurance company in the Philippines. According to figures released by the
country’s Insurance Commission, our Philippines operation has the leadership position among all life insurers in the Philippines
based on premium income(1).
• In SLF Asia, sales from both individual insurance and wealth have increased compared to 2014.
In targeting these four pillars of growth, we are focused on products that have superior growth characteristics, strong product
economics and lower capital requirements in order to reduce net income volatility and improve our return on equity. The maintenance
of a balanced and diversified portfolio of businesses remains fundamental to our strategy.
Values
The following values guide us in achieving our strategy:
• Integrity – We are committed to the highest standards of business ethics and good governance.
• Engagement – We value our diverse, talented workforce and encourage, support and reward them for contributing to the full extent
of their potential.
• Customer Focus – We provide sound financial solutions for our customers and always work with their interests in mind.
• Excellence – We pursue operational excellence through our dedicated people, our quality products and services and our value-
based risk management.
• Value – We deliver value to the customers and shareholders we serve and to the communities in which we operate.
• Innovation – We listen to our customers to provide them with a better experience through innovative products and exceptional
service.
Recognition
• For the seventh consecutive year, SLF Inc. has been named among the 2015 Global 100 Most Sustainable Corporations in the
World (the “Global 100”), announced during the World Economic Forum in Davos, Switzerland. We are one of nine Canadian
companies across all sectors, and the top-ranked North American insurance company to make the Global 100.
• Sun Life Financial was one of twelve Canadian companies selected for the new Standard & Poor’s Long Term Value Creation
Global Index. The new index, launched in January 2016, is comprised of approximately 250 stocks that have the potential to create
long-term value based on sustainability criteria and financial quality.
•The Globe and Mail’s Board Games ranked Sun Life Financial #1 with a score of 99 out of a possible 100 points in the 2015 annual
rating of governance practices of Canadian Boards of Directors compiled by the Report on Business.
Corporate Developments and Actions
The following developments and actions occurred since January 1, 2015.
SLF Asset Management
On April 2, 2015, we completed the acquisition of Ryan Labs, a New York-based asset manager specializing in liability-driven investing.
On July 31, 2015, we completed the acquisition of Prime Advisors, a U.S.-based investment management firm specializing in
customized fixed income portfolios primarily for U.S. insurance companies.
On September 1, 2015, we completed the acquisition of Bentall Kennedy, a real estate investment manager operating in Canada and
the U.S.
(1) Based on figures released in 2015 by the Insurance Commission in the Philippines based on premium income in 2014.
Management’s Discussion and Analysis Sun Life Financial Inc. Annual Report 2015 13