Sun Life 2015 Annual Report Download - page 45

2015 Business Highlights
• On January 7, 2016, we increased our ownership in our Vietnam joint venture, PVI Sun Life, from 49% to 75%. Vietnam has been
one of the fastest growing economies in Asia in recent years and the life insurance and pensions industry is expected to continue to
experience strong growth.
• In December 2015, we announced an agreement to increase our ownership interest in BSLI from 26% to 49%, which is expected to
close by the end of the first quarter of 2016, subject to regulatory approvals and customary closing conditions. The increased stake
in BSLI aligns with our objective of expanding our presence in markets with strong growth opportunities and will strengthen the
Company’s long-standing partnership with the Aditya Birla Group in India, which is also Sun Life Financial’s partner in Birla Sun Life
Asset Management Company Limited, in which we already have a 49% share.
• We were ranked among the top six insurance companies in the 2015 list of Asia’s Top 1000 Brands from media research firm
Nielsen and marketing authority Campaign Asia-Pacific. Sun Life Financial improved its rank more than any other insurance
company, and achieved an improved rank in all seven markets where the Company has operations.
• We celebrated 120 years of business in the Philippines and maintained our position as the leading life insurance company based on
premium income(1). The company received two awards, the annual “Employer of the Year” award by the People Management
Association of the Philippines based on leadership, business results and contributions to the community and the “Life Insurance
Company of the Year Award” at the 19th Asia Insurance Industry Awards 2015 based on professional standards, knowledge and
understanding of the needs of customers and intermediaries. Individual insurance sales grew by 19% from 2014, measured in local
currency, with agency sales increasing by 16% and agency force growing to more than 7,700 advisors as at the end of 2015.
• In Hong Kong, agency sales grew 4% compared to 2014 and agency headcount reached 1,921 as at the end of 2015. We also
continue to generate strong sales from the pension business, with C$5.8 billion AUM, a growth of 15%, measured in local currency,
compared to 2014 notwithstanding generally weak equity markets. The strong fund performance of our pension business brought us
nine Top Fund Awards 2015 from Bloomberg Businessweek and three Best in Class Awards from the Benchmark Fund of the Year
Awards 2015.
• In Indonesia, sales continue to grow, with agency headcount ending at 9,864 as at the end of 2015 and agency sales up 23%
compared to 2014, measured in local currency. PT Sun Life Financial Indonesia attained the “Best Family Takaful Provider
Indonesia 2015” award at the Global Banking and Finance Review Awards which recognizes innovative banking and investment
strategies, achievements and inspirational changes in the financial sector.
• In Malaysia, individual insurance sales increased by 29% from 2014, measured in local currency, driven by growth in the
bancassurance and telemarketing channels. Sun Life Malaysia won the “Most Transformational Company Award” from its direct
marketing business partner, ReMark International. Amidst all of ReMark’s Global Insurance partners, Sun Life Malaysia was
recognized for the great strides made in direct marketing and innovations in channels and products, resulting in Sun Life Malaysia’s
direct distribution channel being one of the largest in Malaysia.
Financial and Business Results
Summary statements of operations
($ millions) 2015 2014 2013
Net premiums 1,171 804 746
Net investment income 52 832 110
Fee income 306 230 180
Revenue 1,529 1,866 1,036
Client disbursements and change in insurance contract liabilities 524 1,125 409
Commissions and other expenses 646 516 444
Income tax expense (benefit) 48 43 33
Reported net income 311 182 150
Less: Assumption changes and management actions related to the sale of our U.S. Annuity
Business
–– (7)
Operating net income(1) 311 182 157
Less: Market related impacts 19 (12) 27
Less: Assumption changes and management actions 40 20 7
Underlying net income(1) 252 174 123
Operating ROE(1) 9.2 6.8 6.9
Underlying ROE(1) 7.4 6.5 n/a
(1) Represents a non-IFRS financial measure. See Non-IFRS Financial Measures.
Reported net income and operating net income was $311 million in 2015, compared to reported net income and operating net income
of $182 million in 2014. Operating net income in SLF Asia excludes the impact of assumption changes and management actions
related to the sale of our U.S. Annuity Business in 2013, which is set out in the table above. The favourable impact of the weakening
Canadian dollar in 2015 relative to average exchange rates in 2014 increased operating net income by $35 million.
Underlying net income was $252 million, compared to $174 million in 2014. Underlying net income excludes from operating net income
market related impacts and assumption changes and management actions, which are set out in the table above. The favourable effect
of market related impacts in 2015 was primarily driven by interest rate and equity market changes, compared to an unfavourable effect
in 2014 primarily driven by interest rates partially offset by equity market changes.
(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 43