Sun Life 2015 Annual Report Download - page 25

Premiums and Deposits
Premiums and deposits were $137.2 billion in 2015, compared to $122.5 billion in 2014, primarily attributable to $15.1 billion favourable
currency impact from the weakening Canadian dollar. Adjusted premiums and deposits of $126.8 billion in 2015 decreased $0.2 billion
compared to 2014. The decrease was largely driven by lower fund sales in MFS and decreased net premium revenue in SLF U.S.,
partially offset by fund sales in SLIM, increased net premium revenue and fund sales in SLF Canada and SLF Asia, and higher
segregated fund deposits in GRS in SLF Canada.
($ millions) 2015 2014 2013
Premiums and Deposits
Net premium revenue 10,395 9,996 9,639
Segregated fund deposits 12,047 9,249 8,470
Mutual fund sales(1) 76,551 66,619 65,030
Managed fund sales(1) 31,079 29,868 39,965
ASO premium and deposit equivalents(1) 7,078 6,748 5,973
Total premiums and deposits(1) 137,150 122,480 129,077
Adjusted premiums and deposits(1)(2) 126,753 127,045 141,345
(1) Represents a non-IFRS financial measure. See Non-IFRS Financial Measures.
(2) Represents a non-IFRS financial measure that adjusts premiums and deposits for the impact of Constant Currency Adjustment and Reinsurance in SLF Canada’s GB
Operations Adjustment as described in Non-IFRS Financial Measures.
Net life, health and annuity premiums were $10.4 billion in 2015, up $0.4 billion from 2014. The weakening of the Canadian dollar
relative to average exchange rates in 2014 increased net premiums by $710 million.
Segregated fund deposits were $12.0 billion in 2015, compared to $9.2 billion in 2014. The change was largely attributable to increase
in GRS in SLF Canada, and favourable currency impact from the weakening Canadian dollar, partially offset by decrease in SLF Asia.
Sales of mutual funds and managed funds were $107.6 billion in 2015, compared to $96.5 billion in 2014, mainly driven by favourable
currency impact from the weakening Canadian dollar and higher fund sales in SLIM, SLF Canada and SLF Asia, partially offset by
lower fund sales in MFS.
Sales
In SLF Canada, life and health sales consist of sales of individual insurance and group benefits products; wealth sales consist of sales
of individual wealth products and sales in GRS. In SLF U.S., life and health sales consist of sales by Group Benefits and individual life
sales by International; wealth sales consist of investment product sales in International(1). In SLF Asia, life and health sales consist of
the individual and group life and health sales from subsidiaries, joint ventures and associates based on our proportionate equity
interest in the Philippines, Hong Kong, Indonesia, India, China, Malaysia, and Vietnam(2); wealth sales consist of Hong Kong wealth
sales, Philippines mutual fund sales, wealth sales from the India and China insurance companies, and Birla Sun Life Asset
Management Company’s equity and fixed income mutual fund sales based on our proportionate equity interest. SLF Asset
Management sales consist of gross sales (inflows) for retail and institutional clients.
($ millions) 2015 2014 2013
Life and health sales(1)
SLF Canada 836 843 670
SLF U.S. 801 774 812
SLF Asia 535 451 398
Total life and health sales 2,172 2,068 1,880
Wealth sales(1)
SLF Canada(2) 14,621 13,791 8,805
SLF U.S. 569 935 1,014
SLF Asia 7,070 5,648 5,851
Total wealth sales excluding SLF Asset Management 22,260 20,374 15,670
SLF Asset Management sales(1) 100,523 91,112 98,811
Total wealth sales 122,783 111,486 114,481
Large case longevity insurance sale(1)(3) - SLF Canada 5,260 ——
(1) Represents a non-IFRS financial measure. See Non-IFRS Financial Measures.
(2) In 2014, SLF Canada wealth sales included sales from SLIM Inc. of $25 million.
(3) Represents the transfer of longevity risk of BCE Inc.’s Bell Canada pension plan.
Total Company life and health sales were $2,172 million in 2015, compared to $2,068 million in 2014.
• SLF Canada life and health sales were $836 million in 2015, compared to $843 million in 2014, primarily due to lower sales in GB,
partially offset by increased sales in Individual Insurance & Wealth.
• SLF U.S. life and health sales were $801 million in 2015, up $27 million from 2014, driven by favourable currency impact of $109
million from the weakening Canadian dollar.
(1) The International wealth business was closed to new sales in December 2015.
(2) We increased our ownership stake in PVI Sun Life in Vietnam from 49% to 75% on January 7, 2016.
Management’s Discussion and Analysis Sun Life Financial Inc. Annual Report 2015 23