Sun Life 2015 Annual Report Download - page 160

23.B Changes in Insurance Contracts and Investment Contracts for Account of
Segregated Fund Holders
Changes in insurance contracts and investment contracts for account of segregated fund holders are as follows:
Insurance contracts Investment contracts
For the years ended December 31, 2015 2014 2015 2014
Balance as at January 1 $ 76,736 $ 69,088 $ 7,202 $ 7,053
Additions to segregated funds:
Deposits 11,926 9,120 121 129
Net transfer (to) from general funds (43) (30) ––
Net realized and unrealized gains (losses) (827) 4,081 37 130
Other investment income 3,911 3,330 201 195
Total additions $ 14,967 $ 16,501 $ 359 $ 454
Deductions from segregated funds:
Payments to policyholders and their beneficiaries 8,477 8,437 673 459
Management fees 801 738 79 85
Taxes and other expenses 171 149 10 11
Foreign exchange rate movements (1,416) (471) (971) (250)
Total deductions $ 8,033 $ 8,853 $ (209) $ 305
Net additions (deductions) $ 6,934 $ 7,648 $ 568 $ 149
Balance as at December 31 $ 83,670 $ 76,736 $ 7,770 $ 7,202
24. Commitments, Guarantees and Contingencies
24.A Lease Commitments
We lease offices and certain equipment. These are operating leases with rents charged to operations in the year to which they relate.
Total future rental payments for the remainder of these leases total $922. The future rental payments by year of payment are included
in Note 6.
24.B Contractual Commitments
In the normal course of business, various contractual commitments are outstanding, which are not reflected in our Consolidated
Financial Statements. In addition to loan commitments for debt securities and mortgages included in Note 6.A.i, we have equity,
investment property, and property and equipment commitments. As at December 31, 2015, we had a total of $1,873 of contractual
commitments outstanding. The expected maturities of these commitments are included in Note 6.
24.C Letters of Credit
We issue commercial letters of credit in the normal course of business. As at December 31, 2015, we had credit facilities of $882
available for the issuance of letters of credit ($785 as at December 31, 2014), from which a total of $213 in letters of credit were
outstanding ($199 as at December 31, 2014).
24.D Indemnities and Guarantees
In the normal course of our business, we have entered into agreements that include indemnities in favour of third parties, such as
confidentiality agreements, engagement letters with advisors and consultants, outsourcing agreements, leasing contracts, trade-mark
licensing agreements, underwriting and agency agreements, information technology agreements, distribution agreements, financing
agreements, the sale of equity interests, and service agreements. These agreements may require us to compensate the counterparties
for damages, losses or costs incurred by the counterparties as a result of breaches in representation, changes in regulations (including
tax matters), or as a result of litigation claims or statutory sanctions that may be suffered by the counterparty as a consequence of the
transaction. We have also agreed to indemnify our directors and certain of our officers and employees in accordance with our by-laws.
These indemnification provisions will vary based upon the nature and terms of the agreements. In many cases, these indemnification
provisions do not contain limits on our liability, and the occurrence of contingent events that will trigger payment under these
indemnities is difficult to predict. As a result, we cannot estimate our potential liability under these indemnities. We believe that the
likelihood of conditions arising that would trigger these indemnities is remote and, historically, we have not made any significant
payment under such indemnification provisions. In certain cases, we have recourse against third parties with respect to the aforesaid
indemnities, and we also maintain insurance policies that may provide coverage against certain of these claims.
In the normal course of our business, we have entered into purchase and sale agreements that include indemnities in favour of third
parties. These agreements may require us to compensate the counterparties for damages, losses, or costs incurred by the
counterparties as a result of breaches in representation. As at December 31, 2015, we are not aware of any breaches in
representations that would result in any payment required under these indemnities that would have a material impact on our
Consolidated Financial Statements.
Guarantees made by us that can be quantified are included in Note 6.A.i.
158 Sun Life Financial Inc. Annual Report 2015 Notes to Consolidated Financial Statements