|PR Newswire Association LLC|
Our financial results in the fourth quarter reflect continued execution against our growth strategy, as well as positive impact from investment activity. Market factors had no material impact in the quarter, as the positive impact of improved equity markets was largely offset by declines in the fixed income reinvestment rates in our insurance contract liabilities, which were driven by the continued low interest rate environment, and unfavourable impact from credit spread and swap spread movements. Operating net income excluding the net impact of market factors(1) was
|(1)||Operating net income (loss) and financial information based on operating net income (loss), such as operating earnings (loss) per share, operating ROE and operating net income (loss) excluding the net impact of market factors, are not based on International Financial Reporting Standards ("IFRS"). See Use of Non-IFRS Financial Measures. All EPS measures refer to fully diluted EPS, unless otherwise stated.|
|(2)|| MCCSR represents the
|(3)||Together with its subsidiaries and joint ventures, collectively referred to as "the Company", "Sun Life Financial", "we", "our" and "us".|
|($ millions, after-tax)||Q4'12|
|Operating net income (loss)||453|
|Net equity market impact||49|
|Net interest rate impact||(51)|
|Net gains from increases in the fair value of real estate||20|
|Actuarial assumption changes driven by changes in capital market movements||15|
|Operating net income (loss) excluding the net impact of market factors||420|
The Board of Directors of
"Sun Life's fourth quarter results reflect overall solid earnings performance,"
"Operating earnings in 2012 at SLF Canada were up more than 25% from 2011, with strong growth across all business units, reflecting asset growth, greater distribution strength and a more profitable business mix," Connor said. "We remain number one in our group benefits and pension businesses and improved our position in individual insurance sales."
"Our asset management businesses had an outstanding year, capped by a strong fourth quarter," Connor said. "MFS recorded the strongest net inflows in the firm's history, ending the year with assets under management of nearly
"The sale of our domestic U.S. annuity business, announced in the fourth quarter, was a major milestone in our strategy of reducing our risk profile," Connor said. "Our U.S. insurance operations are now focused primarily on growing our employee benefits and voluntary benefits businesses, which recorded significant sales growth on both a quarterly and annual basis, and hit all milestones for expanding distribution and introducing new products."