About Sun Life Financial

Sun Life Financial Inc. (Sun Life or SLF Inc.) operates as an international financial services company. The company provides asset management, wealth, insurance and health solutions to individual and institutional Clients. Sun Life has operations in a number of markets worldwide, including Canada, the United States, the United Kingdom (U.K.), Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China, Australia, Singapore, Vietnam, Malaysia and Bermuda. Strategy The company’s strategy places the Client at the centre of everything it does. The company’s enterprise strategy reflects its priorities and its diversified business mix. The key elements of the company’s strategy are to develop deep client relationships and drive outcomes through signature solutions, digital, and data; think and act more like a digital company; deliver the value from past Mergers & Acquisitions (M&A) in SLC Management, the U.S., and Asia; and consider opportunistic investments to further grow capability and scale. Asset Management The company is a global leader in both public and alternative asset classes through MFS and SLC Management. The company delivers value and drive positive Client impact through its offering of quality investment products: MFS Investment Management (MFS) is a long-standing premier active investment manager offering a comprehensive set of asset management products and services to retail and institutional investors around the world. SLC Management is an institutional investment manager delivering alternative fixed income, private credit, infrastructure and global real estate solutions to institutional investors. In addition, with the acquisition of a majority interest in Advisors Asset Management, Inc. (AAM) and the partnership with Scotia Global Wealth Management, SLC Management will also deliver solutions to the retail High-Net-Worth (HNW) market in North America. Canada The company is a leader in health, wealth, and insurance. The company delivers value and impact to approximately 5.5 million Clients via its group and individual businesses by: Providing a wide range of asset management, wealth, health and protection solutions to retail Clients. Helping Canadians live healthy lives, both as a major provider of group benefits and through a growing focus on innovative products and services that lead to better health outcomes. Remaining a market leader in group retirement services in the workplace, including defined contribution pensions, and defined benefit pension de-risking. U.S.: The company is a leader in health and benefits. The company has deep expertise in the health care market, and help its Clients get the coverage they need while improving health outcomes. The company is a: The largest independent medical stop-loss provider in the U.S., offering protection against large medical claims for employers who self-insure their employee health plans and health care navigation services to help members improve outcomes. The second largest dental benefits provider in the U.S. serving approximately 36 million members through government programs and commercial group dental and vision solutions for employers of all sizes. A top ten group life and disability provider in the U.S., offering a broad portfolio of group insurance products and services, as well as turnkey risk management solutions for health plans and other insurance carriers. Asia: The company is a regional leader focused on fast-growing markets. The company is well-positioned in Asia to achieve its growth aspirations, through its portfolio of distinct businesses in the Philippines, Indonesia, Vietnam, Hong Kong, China, India, Malaysia, and High-Net-Worth, including International and Singapore. The company is a provider of individual life and health insurance that delivers Client value across all of its markets; provider, in select markets, of asset management and group retirement products and services; and among the global leaders in providing life insurance solutions to HNW Clients. Asset Management In 2023, the company completed the acquisition of a majority stake in Advisors Asset Management, Inc. (AAM), a leading independent retail distribution firm in the U.S. AAM provides access to the U.S. retail distribution for SLC Management, and will allow SLC Management to meet the growing demand for alternative assets among U.S. high-net-worth investors. In 2021, the company completed the acquisition of a majority stake in Crescent Capital Group LP (Crescent), a global alternative credit investment manager, forming the alternative credit investing business of SLC Management. Canada On October 3, 2023, the company completed its acquisition of Dialogue Health Technologies Inc. (Dialogue), increasing its ownership interest from 23% to 95%. Dialogue is a Canadian-based health and wellness virtual care platform and telemedicine provider. On February 1, 2023, the company completed the sale of the sponsored markets business from Sun Life Assurance to Canadian Premier Life Insurance Company (re-branded to Securian Canada). U.S. On June 1, 2022, the company completed the acquisition of DentaQuest Group, Inc. (DentaQuest), the second-largest dental benefits provider in the U.S. by membership. On July 1, 2021, the company completed the acquisition of Pinnacle Care International, Inc., a U.S. health-care navigation and medical intelligence provider. Asia On September 14, 2023, the company increased its strategic investment in Bowtie Life Insurance Company Limited, Hong Kong's first virtual insurer. Effective July 1, 2023, the company commenced a 15-year exclusive bancassurance partnership in Hong Kong with Dah Sing Bank (Dah Sing). Under this partnership, Sun Life is the exclusive provider of life insurance solutions to Dah Sing's retail banking customers, helping to fulfill their savings and protection needs at different life stages. On April 5, 2022, the company announced a deepening of its bancassurance partnership between PT Sun Life Financial Indonesia (Sun Life Indonesia), a subsidiary of SLF Inc., and PT Bank CIMB Niaga Tbk (CIMB Niaga). The new agreement makes Sun Life Indonesia the provider of insurance solutions to CIMB Niaga customers through all distribution channels for a term of 15 years starting in January 2025 and extends the term of its existing relationship by six years to 2039. Effective January 1, 2021, the company launched an exclusive 15-year bancassurance partnership with Asia Commercial Joint Stock Bank for the exclusive distribution of life insurance products of Sun Life Vietnam Insurance Company Limited (Sun Life Vietnam). UK On April 3, 2023, the company completed the sale of SLF of Canada UK Limited (Sun Life UK) to Phoenix Group Holdings plc (Phoenix Group). Segments Asset Management Asset Management business group consists of MFS and SLC Management. MFS is a premier global asset manager offering a comprehensive selection of financial products and services that deliver superior value, actively managing assets for retail and institutional investors around the world. SLC Management is a global asset manager with capabilities across fixed income and alternative asset classes, including public and private fixed income, real estate equity and debt, and infrastructure equity, and manages assets on behalf of institutional investors and HNW Clients around the world. Canada Canada business segment is a leading provider of protection, health, asset management and wealth solutions, providing products and services that deliver value to approximately 5.5 million Clients. The company is the largest provider of benefits and pensions in the workplace, and offers a wide range of products to individuals via retail channels. The company focuses on helping Canadians achieve lifetime financial security and live healthier lives. U.S. Sun Life U.S. is one of the largest providers of employee and government benefits in the U.S., serving more than 50 million Americans with disability, life, supplemental health, medical stop-loss insurance, dental and vision benefits through employers, industry partners and government programs, such as Medicaid, Medicare Advantage, and the Children's Health Insurance Program (CHIP). Services include absence management, dental care, and healthcare navigation. In addition, the company’s U.S. business manages an in-force block of approximately 225,000 individual life insurance and annuity policies as well as a block of run-off reinsurance. Asia This segment operate in eight Asian markets, delivering value to over 28 million Clients. ASEAN markets provides asset management and wealth, protection and health solutions through a multi-channel distribution approach in the Philippines, Indonesia, and Vietnam. The Hong Kong market offers individual protection and wealth products through agency, broker and bancassurance distribution channels. The company’s Joint Ventures in China, India and Malaysia, provide asset management and wealth, protection and health solutions. High-Net-Worth markets provides individual protection solutions to High-Net-Worth families and individuals, with operations in Singapore and Bermuda. Regional Office represents Asia’s headquarters based in Hong Kong. Corporate Corporate operations pertain to core enterprise oversight activities such as Finance, Risk and Compliance, as well as enterprise enablement capabilities, such as Strategy, Marketing, Sustainability and Philanthropy. Corporate Support is included in the 'Corporate expenses and other' business type. Seasonality Some of the company’s businesses are subject to seasonal factors. In Canada, sales of investment products spike during the first quarter of the year due to a contribution deadline for Registered Retirement Savings Plans. Timing of sales campaigns also influences sales of individual products in Canada and Asia. In the U.S., the sales pattern of the company’s group life and health business largely reflects the renewal timing of employee benefit plans of its corporate Clients, many of which begin on January 1 each year (year ended December 31, 2023). In India, the sales of individual insurance products usually peak in the first quarter of each year due to tax planning by Clients. Regulation of Insurance Operations - Federal Level DentaQuest and certain other U.S. subsidiaries of SLF Inc. administer dental and vision benefits for federal and state health programs that are governed by federal law, including Medicaid and Children’s Health Insurance programs, Medicare Advantage plans, and offerings on federal and state exchanges under the Patient Protection and Affordable Care Act. CMS is the U.S. federal agency that regulates each of these programs. Regulation of Securities Operations The investment management activities of SLF Inc.'s U.S. subsidiaries are subject to federal and state laws and regulations in the jurisdictions where they conduct business. MFS and certain of SLF Inc.'s other U.S. subsidiaries are registered as investment advisers under the Investment Advisers Act of 1940, as amended (the Advisers Act), which imposes various obligations on registered investment advisers, including fiduciary duties, and disclosure, operational, recordkeeping and reporting requirements. Several of SLF Inc.'s U.S. subsidiaries issue or have issued products that are registered with the SEC as investment companies under the Investment Company Act of 1940, as amended (the 1940 Act) and which issue securities that are registered under the Securities Act of 1933, as amended (the 1933 Act). Certain of SLF Inc.'s U.S. subsidiaries provide investment management services to affiliated funds, which similarly are registered as investment companies under the 1940 Act and which issue securities that are registered under the 1933 Act. Certain of SLF Inc.'s U.S. subsidiaries are registered as broker-dealers under the 1934 Act and are subject, for example, to the SEC's net capital rules, and are members of, and subject to regulation by FINRA. Certain other U.S. subsidiaries of SLF Inc. are registered as transfer agents under the 1934 Act. Other U.S. Regulatory Matters The USA PATRIOT Act of 2001 The USA PATRIOT Act of 2001 (the PATRIOT Act) seeks to promote cooperation among financial institutions, regulators and law enforcement agencies in identifying parties that may be involved in terrorism, money laundering or other illegal activities. Regulations applicable to the insurance industry require insurance companies issuing covered products to implement anti-money laundering programs and file suspicious activity reports with the U.S. Treasury Department. SLF Inc.'s U.S. subsidiaries that issue covered products and its U.S. broker-dealer subsidiaries have implemented anti-money laundering control programs to comply with the PATRIOT Act regulations and with the Office of Foreign Assets Control requirements with respect to anti-terrorist financing. The Philippines The company’s operations in the Philippines, established in 1895, distribute a diverse range of life insurance, asset management and investment products and solutions largely through its career agency sales force and bancassurance channel, an asset management company and an investment management & trust company. The company offers individual and group life and health insurance products to individuals and businesses through its wholly-owned subsidiary, Sun Life of Canada (Philippines), Inc. (Sun Life Philippines), and its joint venture with the Yuchengco Group, Sun Life Grepa Financial, Inc. (Sun Life Grepa), in which it has a 49% ownership stake. In addition, the company offers mutual funds and pre-need products respectively through Sun Life Philippines’ wholly-owned subsidiaries, Sun Life Asset Management Company, Inc. (SLAMCI) and Sun Life Financial Plans Inc. (SLFPI). Trust and investment management solutions are provided through Sun Life Investment Management and Trust Corporation (SLIMTC). Sun Life Philippines and Sun Life Grepa are life insurance companies incorporated in the Philippines and regulated by the Insurance Commission. Sun Life Philippines offers individual and group life and health insurance products through its agency sales force, brokers and fintech partners. Sun Life Grepa offers its individual and group life insurance products through an agency sales force and through bancassurance distribution arrangements. The Insurance Commission supervises and regulates the operations of life, non-life, and pre-need companies. Life insurance companies in the Philippines are required at all times to maintain the minimum net worth requirements prescribed by regulations. Current minimum net worth requirements are 1.3 billion Philippine Pesos. In addition, life insurance companies must maintain a minimum RBC ratio of 100% as prescribed in the Risk-Based Capital Framework. SLAMCI is a mutual fund manager and distributor regulated by the Securities and Exchange Commission. SLFPI offers pension and education plans in the Philippines, and is regulated by the Insurance Commission. SLIMTC is regulated by the Bangko Sentral ng Pilipinas and is licensed to provide trust and investment management services. It was established to provide multi-strategy local and global portfolio management services and deliver superior risk-adjusted returns for both individual and institutional investors in the Philippines. Indonesia In Indonesia, the company offers individual life and health insurance, as well as creditor life insurance through its wholly-owned subsidiary, PT Sun Life Financial Indonesia. PT Sun Life Financial Indonesia is licensed to carry on life insurance business in Indonesia and can distribute life insurance products in Indonesia. PT Sun Life Financial Indonesia can additionally manufacture and distribute sharia products in Indonesia through its sharia business. The Indonesian Financial Services Authorities (Otoritas Jasa Keuangan) (OJK) is the regulator responsible for supervising and regulating the financial service industries in Indonesia, including the insurance industry. The Indonesia Life Insurance Association (AAJI) continues to act as a conduit between life insurers and the Ministry of Finance and the OJK in terms of the development of new regulations and guidelines in relation to the life insurance sector. Life insurance sales forces (i.e. agents) are licensed by the AAJI. The Indonesia Sharia Insurance Association acts in the similar capacity as AAJI in relation to the sharia insurance business. The implementation of anti-money laundering controls in the insurance industry is also monitored by the Indonesian Financial Transaction Reports and Analysis Center, in addition to it being under the general supervision of the OJK. Vietnam In Vietnam, the company offers a diverse range of insurance, savings, investment and pension products through its wholly owned subsidiary Sun Life Vietnam Insurance Company Limited. Insurance operations in Vietnam are mainly regulated by the MOF, which sets the standards on all insurance business matters, including product approvals, limits on commission rates payable on insurance products, actuarial liability valuation, and solvency requirements. Sun Life Vietnam’s products are generally distributed through a career agency sales force, including individual agency, corporate agency and bank partner, for individual Clients and through a corporate agency for corporate Clients. Sun Life Vietnam has an option to contract with eligible insurance auxiliary service providers to support Sun Life Vietnam in selling Sun Life Vietnam's products to Clients. The insurance auxiliary services include insurance consultation, insurance risk assessment, insurance calculation, insurance loss assessment and insurance claim assistance. India Aditya Birla Sun Life Insurance Company Limited (ABSLI) is the company’s life insurance joint venture with the Aditya Birla Group in India in which it has a 49% stake. ABSLI provides a full range of individual and group insurance, savings and retirement products through a multi-channel distribution network, including an agency sales force, bancassurance distribution, brokers and worksite marketing. Aditya Birla Sun Life Pension Management Limited (ABSLPML) is a wholly owned subsidiary of ABSLI. ABSLPML’s business offers pension solutions and acts as Pension Fund Manager under the National Pension Scheme Trust of the National Pension System (NPS) to manage pension funds in the private sector according to the provisions of the NPS, the schemes, and the guidelines issued by the Pension Fund Regulatory and Development Authority. The company, along with Aditya Birla Capital Limited, are the promoters of Aditya Birla Sun Life AMC Limited (ABSLAMC), an asset management company in India in which it has a 36.49% stake. The equity shares of ABSLAMC are listed on the National Stock Exchange of India Limited and BSE Limited. ABSLAMC is primarily the investment manager of Aditya Birla Sun Life Mutual Fund, a registered trust under the Indian Trusts Act, 1882. ABSLAMC also operates multiple businesses including Portfolio Management Services, Real Estate, Investments and Alternative Investment Funds. ABSLAMC has also set up wholly owned subsidiaries in Singapore, Dubai and Mauritius. China Sun Life Everbright Life Insurance Company Limited is a domestically-invested life insurance company in China, in which the company has a 24.99% ownership stake. It operates a multi-distribution model that combines a direct career agency, brokerage, group insurance and bancassurance alliances to sell individual life and health insurance and savings products. Sun Life Everbright Life Insurance Company Limited has a 99% ownership stake in Sun Life Everbright Asset Management Co., Ltd, which carries on business in China as an insurance asset management company. The insurance industry in China is regulated by the newly created National Administration for Financial Regulation (NAFR), which replaces the former China Banking and Insurance Regulatory Commission (CBIRC). Hong Kong The company’s operations in the Hong Kong Special Administrative Region offer a full range of products to address insurance and savings needs. The company offers individual life and health insurance, mandatory provident funds (the government-legislated pension system) and pension administration to individuals and businesses through a career sales agency force and independent financial advisors. Sun Life Hong Kong Limited (SLHK) is authorized by the Hong Kong Insurance Authority (IA) under the Insurance Ordinance to carry on certain classes of long-term business in or from Hong Kong. On June 26, 2017, the IA took over from the previous governmental regulator, the Office of the Commissioner of Insurance, the functions of overseeing the authorization and regulation of insurance companies in Hong Kong. The offer of the company’s investment linked insurance products, pooled retirement funds, approved pool investment funds, mandatory provident fund schemes and occupational retirement schemes are also regulated by one or more of the financial services regulators, including the IA, the Hong Kong Securities and Futures Commission and/or the Mandatory Provident Fund Schemes Authority. Malaysia The company’s operations in Malaysia offer individual and group insurance and takaful products through Sun Life Malaysia Assurance Berhad (SLMA) and Sun Life Malaysia Takaful Berhad (SLMT), respectively, its joint ventures with Renggis Ventures Sdn. Bhd. (a subsidiary of Khazanah Nasional Berhad), in which it has a 49% ownership stake in each company. SLMA has an exclusive bancassurance agreement with CIMB Bank Berhad to distribute insurance products through its network across Malaysia, while SLMT has an exclusive bancatakaful agreement with CIMB Islamic Bank Berhad to distribute takaful products through its network across Malaysia. The companies have expanded their distribution channel to include other bancassurance and bancatakaful partners, agency distribution, direct marketing, government and corporate business, telemarketing, online and telco-assurance. The central bank of Malaysia, Bank Negara Malaysia (BNM), regulates entities carrying on the insurance and takaful business in Malaysia. Singapore Sun Life Assurance Company of Canada Singapore Branch carries on a life insurance business in Singapore. It is licensed as a Direct Insurer (Life) with the Monetary Authority of Singapore (MAS) pursuant to the Insurance Act 1966, to serve a defined market segment subject to certain conditions, including its policies having a minimum policy size. Bermuda Sun Life Assurance and certain SLF Inc. subsidiaries carry on insurance and investment business in or from Bermuda and are regulated as insurance or investment companies, as the case may be, in that jurisdiction. History Sun Life Financial Inc. was founded in 1871. The company was incorporated under the Insurance Act in 1999.