Sun Life 2010 Annual Report Download - page 109

9.C Total assets supporting liabilities and equity
The following tables show the total assets supporting total liabilities for the product lines shown (including actuarial and other policy
liabilities), and assets supporting equity and other:
Bonds Stocks Mortgages
and corporate
loans
Real
estate Other TotalAs at December 31, 2010
Held-for-
trading
Available-
for-sale
Held-for-
trading
Available-
for-sale
Individual participating life $ 15,269 $ – $ 3,033 $ 16 $ 4,076 $ 3,230 $ 4,155 $ 29,779
Individual non-participating life 10,029 420 1,000 20 2,983 353 4,843 19,648
Group life 1,139 – 3 – 995 28 (43) 2,122
Individual annuities 17,398 55 273 – 4,792 9 1,306 23,833
Group annuities 5,630 211 78 4 2,917 161 1,267 10,268
Health insurance 4,787 – 35 – 3,288 117 757 8,984
Equity and other 501 10,066 2 768 460 1,021 13,407 26,225
Total assets $ 54,753 $ 10,752 $ 4,424 $ 808 $ 19,511 $ 4,919 $ 25,692 $ 120,859
Bonds Stocks Mortgages
and corporate
loans
Real
estate Other TotalAs at December 31, 2009
Held-for-
trading
Available-
for-sale
Held-for-
trading
Available-
for-sale
Individual participating life(1) $ 14,062 $ – $ 3,143 $ 13 $ 4,124 $ 3,194 $ 4,204 $ 28,740
Individual non-participating life 8,321 442 840 4 2,730 299 5,522 18,158
Group life 1,125 – 3 – 1,007 23 18 2,176
Individual annuities 17,400 55 246 1 5,061 – 2,978 25,741
Group annuities 6,089 277 82 4 3,073 155 1,799 11,479
Health insurance 4,503 – 17 1 3,122 137 733 8,513
Equity and other(1) 134 8,899 – 612 332 1,069 14,238 25,284
Total assets $ 51,634 $ 9,673 $ 4,331 $ 635 $ 19,449 $ 4,877 $ 29,492 $ 120,091
(1) These balances have been restated. Refer to Note 2.
9.D Changes in actuarial liabilities
Changes in actuarial liabilities during the years ended December 31 are as follows:
2010 2009
Actuarial liabilities, January 1(1) $ 82,730 $ 79,361
Change in liabilities on in-force business(2) 153 2,551
Liabilities arising from new policies 2,664 4,022
Changes in assumptions or methodology(3) 92 1,124
Increase (decrease) in actuarial liabilities 2,909 7,697
Actuarial liabilities before the following: 85,639 87,058
Acquisition (Note 3) –986
Dispositions (Note 3) (569) –
Effect of changes in currency exchange rates (2,314) (5,314)
Actuarial liabilities, December 31 82,756 82,730
Add: Other policy liabilities 1,607 2,028
Actuarial liabilities and other policy liabilities, December 31 $ 84,363 $ 84,758
(1) This balance has been restated. Refer to Note 2.
(2) Due to the enactment of the Canadian tax rules relating to CICA Handbook Section 3855, an increase in actuarial liabilities of $135 was recorded during the first quarter of
2009. Prior to the enactment of these tax rules, actuarial liabilities included an estimated adjustment to account for income taxes as if these tax rules had, at the time, been
enacted.
(3) See tables below for 2010 and 2009 changes:
Changes in assumptions or methodology – 2010:
Assumption or methodology
Policy liabilities
increase (decrease) pre-tax Description
Mortality / morbidity $ (249) Largely due to favourable changes to the
mortality basis in Individual Insurance in
SLF U.S., Reinsurance in Corporate and
mortality/morbidity in our Group
businesses in SLF Canada and SLF U.S.
Lapses and other policyholder behaviour 269 Reflects the impact of higher persistency
as a result of low interest rates in
Individual Insurance in SLF U.S., as well
as higher lapse rates on term insurance
renewals in SLF Canada.
Expense 52 Impact of reflecting recent experience
studies across the Company.
Investment returns 80 Primarily from impact of Company wide
revisions to equity and interest rate return
assumptions.
Other (60) Primarily model refinements to improve
the projection of future cash flows.
Total $92
Notes to the Consolidated Financial Statements Sun Life Financial Inc. Annual Report 2010 105