Life s brighter under the sun 2013 PUBLIC ACCOUNTABILITY STATEMENT

Transcription

1 Life s brighter under the sun 2013 PUBLIC ACCOUNTABILITY STATEMENT

2 2013 PUBLIC ACCOUNTABILITY STATEMENT This report, filed as the consolidated Public Accountability Statement required for Sun Life Financial Inc., Sun Life Assurance Company of Canada and Sun Life Insurance (Canada) Limited, contains information regarding our subsidiaries and joint ventures, including Sun Life Financial Trust Inc., and pertains to our most recent fiscal year (January 1, 2013 to December 31, 2013). Unless otherwise noted, all dollar amounts are expressed in Canadian currency. In this document, unless the context requires otherwise, references to we, our, us, the Company, Sun Life, and Sun Life Financial mean Sun Life Financial Inc., its subsidiaries, and in respect of Employees and Advisors, its joint ventures. contents COMMUNITY DEVELOPMENT AND PHILANTHROPIC ACTIVITY EMPLOYEES AND ADVISORS DEBT FINANCING TAXES PAID PRINCIPAL SUBSIDIARIES

3 COMMUNITY DEVELOPMENT AND PHILANTHROPIC ACTIVITY Our success depends on the well-being of the communities we serve, and we believe we play a role in their development and sustainability. Our profile of giving focuses on four key areas: health, with an emphasis on diabetes; arts and culture; education; and social services. In 2013, Sun Life committed $13.4 million to community organizations across Canada, the U.S., Asia and Europe. In Canada, our corporate donations supporting community organizations coast to coast totaled $9.2 million during 2013, and a further $473,000 was allocated to sponsorships of cultural and community initiatives. Here are a few examples of our 2013 donations and sponsorships that align with our priorities. Health DIABETES RESEARCH AND PREVENTION Since our announcement in late 2012 that we would focus our philanthropic support in the area of health on diabetes research, prevention, education and care initiatives, we have committed $10 million towards this cause. Sun Life committed $150,000 to support the Royal Ottawa Foundation for Mental Health and its Healthy Lifestyle Program for patients living with both mental illness and diabetes or metabolic syndrome. The Healthy Lifestyle Program includes an integrated framework for assessment and therapy, and provides patients with the opportunity to meet with a group of professionals and establish a holistic therapeutic relationship with them. Sun Life has committed $500,000, over a two-year period starting in 2013, to support important health-related programs at the University of Regina. In 2013, $250,000 was donated to support two programs: The Lifestyle Management Program for Children with Diabetes, and the Psychology Training Clinic, an alternative setting providing psychological services to residents in and around Regina. In May 2013, Sun Life donated $500,000, part of a total commitment of $1 million, to the CHU Sainte- Justine Foundation, aimed at expanding their CIRCUIT program which promotes healthy lifestyles for young people at risk of developing cardiovascular diseases and Type 2 diabetes. This donation is expected to support over 200,000 families across the province over the next five years. As part of our launch of PVI Sun Life Insurance Company Limited, our new joint venture in Vietnam, we donated $24,440 to the Dung Quat Petrovietnam Hospital. This donation helped buy new screening and testing equipment for diabetic patients in the Quang Ngai province. 1

4 CANADIAN BLOOD SERVICES We re proud to be a part of a ground-breaking initiative that may help save the lives of nearly 1,000 Canadians who are waiting for an unrelated stem cell match. Sun Life donated $100,000 to the Canadian Blood Services to support the For All Canadians campaign to build Canada s first national public umbilical cord blood bank, which opened its doors in Ottawa in Arts and Culture MAKING THE ARTS MORE ACCESSIBLE TM At Sun Life, we believe that arts and culture should be celebrated within our communities and made accessible to everyone. Through our award winning Making the Arts More Accessible TM program, we are proud to help Canadians access a wide range of cultural events, performances, concerts and visual attractions that might otherwise have been out of reach. In 2013, Sun Life donated over $1.7 million to various registered charitable arts organizations as part of our Making the Arts More Accessible TM program. STRATFORD SHAKESPEARE FESTIVAL For more than three decades, Sun Life has been proud to play a supporting role in some of the Festival s most acclaimed performances. In 2013, we contributed $276,800, as the 2013 and 2014 Season Opening Production Sponsor, sponsor of the RUSH, TiXX and Lucky $29 discount ticket programs, and the access program for patrons with vision and hearing impairments. SUN LIFE FINANCIAL UPTOWN WATERLOO JAZZ FESTIVAL Sun Life committed a total of $140,000 to the city s Jazz Festival, which included an extension of our commitment as Title Sponsor through to This event is a widely anticipated summer jazz music festival that draws approximately 30,000 people over three days to enjoy free performances. CULTURE DAYS In 2013, we were proud to be Culture Days National Sponsor. This three-day event offered over 7,500 free activities, enjoyed by 1.7 million people across 826 communities. Our contribution of $100,000 demonstrates Sun Life s commitment to supporting initiatives that promote arts and cultural programs that enrich the lives of Canadians. 2

5 MONTRÉAL EN LUMIÈRE For the eleventh year, Sun Life has sponsored Montréal en Lumière, a winter celebration promoting arts and culture within the city. In 2013, we presented Espace Financière Sun Life, where local acrobats, street performers and artists entertained families in downtown Montreal. Education PERIMETER INSTITUTE FOR THEORETICAL PHYSICS As Presenting Sponsor, Sun Life contributed $100,000 towards the Institute s inspiring and popular Public Lecture Series, which offers lectures by some of the most recognized leaders in scientific thinking, free of charge to the public. CANADIAN COUNCIL FOR ABORIGINAL BUSINESS During 2013, Sun Life made a donation of $35,000 to the organization which provides eight scholarships and two bursaries to Aboriginal high school and post-secondary students in need of financial support. CARE FOR THE NATION In Indonesia, Sun Life partnered with CARE for the Nation, an organization that aims to improve the financial literacy of students aged 16 to 18 in local schools. SUN LIFE RISING STAR AWARDS PROGRAM Through our Rising Star Awards Program in the U.S., Sun Life provides grants to non-profit organizations, who in turn nominate high school students who have overcome social and financial challenges and have committed to stay in school. Since the program began in 2010, Sun Life has invested over $4 million in grants and scholarships to 70 students and 63 non-profit organizations. Social Services UNITED WAY As a major supporter of the United Way across Canada, Sun Life encourages employees and advisors in all of our offices to organize local campaigns in their communities, and matches each donation, up to $500. In 2013, employees and advisors raised $977,914 in support of United Way agencies across Canada. In addition, $590,954 was matched by the Company, for a total combined donation of $1,568,868. 3

6 Sun Life s support of other important causes in 2013 CANADIAN RED CROSS Sun Life donated $250,000 to the Canadian Red Cross (CRC), $100,000 of which was designated to the Sun Life Financial International Response Fund established in 2005 to help the CRC respond immediately to international disasters. This fund, held in trust by the CRC, holds money ready for release by Sun Life so that critical needs including medical care, food and shelter can be provided without delay. The fund aided relief efforts following the devastating typhoon Haiyan and the earthquake in the Philippines. In Canada, $100,000 was donated to the CRC to be used towards relief efforts following the floods in Alberta and $50,000 for emergency relief for the Lac-Mégantic, Quebec train disaster. BRIGHTER WORLD CAMPAIGN In the Philippines, Sun Life Financial Philippines Foundation Inc. created the Brighter World Campaign, as a way to strengthen national donations with a focus around education, health and well-being and social improvements. BRIGHTER LIFE COMMUNITY PROGRAMME In the U.K., The Brighter Life Community Programme funds charity and community groups across Hampshire and Gloucestershire, focusing on health, education and arts and cultural projects. In 2013, approximately $122,000 was donated to over 40 organizations in the area, funding various initiatives such as dental healthcare and healthy eating projects, art and dance workshops and providing specialized mobility equipment. For more information on our donations visit > corporate responsibility. 4

7 Employee contributions We are extremely proud of our employee and advisor volunteers who work hard to make life brighter for others in their communities. In Canada, during 2013, they volunteered thousands of hours to the benefit of charities and organizations, efforts that were echoed by volunteering activities throughout our international operations. In addition, our employees and advisors make personal donations to their favourite charities. MATCHING GIFTS PROGRAM In support of employee giving, the Company s Canadian Matching Gifts Program matches eligible donations to registered charities, up to $500 per employee or advisor. In 2013, our employees made 1,617 donations amounting to $383,222 that supported 539 registered charities. In addition to the employee and advisor donation, $268,222 was matched by the Company, for a total combined donation of $651,444. Our Volunteer Program Sun Life s volunteer program in Canada recognizes the efforts of employees and advisors who volunteer at least 50 hours each year for a registered charity or humanitarian cause. Those who qualify receive a $500 cheque for the charity of their choice. In 2013, our employees and advisors volunteered almost 47,000 hours of their personal time to local charities and organizations. Each year, we also identify a National Volunteer of the Year and three finalists who receive additional cheques totaling $26,000, recognizing their extraordinary efforts to support their charity. In 2013, we were proud to recognize Doug Smith and Jenny Minello as our National Volunteers of the Year. They, along with the Volunteer Finalists, Sarah Loat and John Maisey, have contributed greatly to their communities by donating time and effort to their local charities. 5

8 Volunteer highlights TEAMS FOR HEALTH In keeping with our commitment to health and wellness, Sun Life s Teams for Health program was created to encourage and support employees and advisors who participate in walks, runs, rides or sports activities to raise money for health-related registered charities in Canada. Sun Life pays the registration fee or minimum personal donation required to participate in the event up to a maximum of $100 per person. The program requires only that the team be made up of at least six people and that employees and advisors make up at least 50 per cent of the team. In 2013, 1,100 employees and advisors participated in Teams for Health. PAN-MASS CHALLENGE In 2013, a team, consisting of over 70 cyclists from our Boston - based MFS Investment Management (MFS) business, joined forces to raise over $450,000 for the Dana-Farber Cancer Institute. This contribution will fund the research and doctors committed to finding a cure for cancer. MFS has been involved with the ride for 15 years and has raised almost $8 million for cancer research. MEALS ON WHEELS In Canada, for more than 25 years, Sun Life has participated in the Meals on Wheels Corporate Volunteer Program. Between January and October of 2013, Sun Life employee volunteers delivered meals during the lunch hour, volunteering a total of 200 hours. SUN LIFE SHINING ACTION In Hong Kong, our employees and advisors, along with their families, joined forces to create Sun Life Shining Action, a volunteer group dedicated to supporting local initiatives in their community. In 2013, the group held a food drive to help support the Fresh Fish Traders School, which helps new immigrant families get settled and start a new life in Hong Kong. As a result of the commitment by Sun Life employees and advisors, the school received 20 large cartons full of food and supplies plus over $500 in food coupons. 6

9 EMPLOYEES AND ADVISORS Sun Life Financial employs over 28,000 people around the world. In 2013, the Company paid $2.4 billion in salaries and benefits to employees worldwide. Employees in Canada 1 Around the world 1,2 1 As at December 31, Full-time Part-time Total Alberta British Columbia Manitoba New Brunswick Newfoundland and Labrador Nova Scotia Ontario 5, ,926 Prince Edward Island Quebec 1, ,623 Saskatchewan TOTAL 8, ,240 2 Includes our joint ventures in India, China, the Philippines, Indonesia, Vietnam and Malaysia. Full-time Australia 20 Bermuda 35 China 1,800 Europe 108 Hong Kong 695 India 10,920 Indonesia 450 Ireland 290 Japan 25 Malaysia 425 Philippines 1,430 Singapore 20 South America 15 United Kingdom 132 United States 3,710 Vietnam 200 TOTAL 20,275 7

10 Sun Life Financial and its joint ventures have a worldwide network of more than 127,000 advisors who sell products and services provided by the Company and its joint ventures. This network consists of career sales force and independent advisors and managers, focused on helping customers achieve lifetime financial security. Advisors in Canada and around the world 1,2 Total Canada 3,830 China 1,345 Hong Kong 1,370 India 104,510 Indonesia 7,165 Philippines 6,075 Vietnam 3,460 TOTAL 127,755 1 As at December 31, Includes our joint ventures in India, China, the Philippines, Indonesia, and Vietnam. 8

11 DEBT FINANCING as of December 31, 2013 (authorized amount in thousands of dollars) Sun Life is committed to making debt financing available to businesses across Canada. In 2013, authorized debt financing totaled approximately $3.5 billion. Alberta British Columbia Nova Scotia Ontario Quebec Saskatchewan TOTAL $500,000 - $999,999 $1,000,000- $4,999,999 $5,000,000+ TOTAL Authorized amount* 0 12, , ,945 Number of clients Authorized amount* 0 24, , ,024 Number of clients Authorized amount* , ,037 Number of clients Authorized amount* ,426 1,979,248 2,028,478 Number of clients Authorized amount* 0 1, , ,604 Number of clients Authorized amount* ,554 32,554 Number of clients Authorized amount* ,236 3,420,602 3,507,642 Number of clients * Authorized amount includes all new commitments for NOTE: There were no authorizations for amounts between the following ranges: $0 - $24,999; $25,000 - $99,999; $100,000 - $249,999; or $250,000 - $499,999 in

12 TAXES PAID The taxes we pay in Canada and around the world are another measure of the way Sun Life Financial contributes to the economies and societies in which we live, work and do business. In 2013, in all jurisdictions where the Company operates, tax expenses to governments totaled $816 million. Of this total, $326 million was paid in income taxes, $186 million was paid in premium taxes and $304 million was paid in excise, property and payroll taxes. In Canada, the Company s total tax expenses for 2013 were $505 million. Sun Life Financial Inc. s 2013 Consolidated Tax Expenses (in thousands of dollars) CANADA TYPE OF TAX INCOME TAXES* PREMIUM TAXES TOTAL OTHER TAXES** TOTAL Federal 97, , ,677 Alberta 6,918 14,988 18,147 40,053 British Columbia 9,013 18,104 14,464 41,581 Manitoba 1,783 3, ,597 New Brunswick 1,774 3, ,188 Newfoundland and Labrador 1,300 2, ,834 Northwest Territories Nova Scotia 800 3,187 1,631 5,618 Ontario 33,578 52,860 73, ,847 Prince Edward Island ,547 Quebec 16,243 29,041 21,819 67,103 Saskatchewan 2,253 4, ,492 Yukon TOTAL 171, , , ,950 * Income tax amounts are estimates based on information available for the year ended December 31, ** The category Total other taxes refers to $91 million in property taxes, $48 million in payroll taxes, $26 million in investment income taxes and $36 million in sales and excise taxes. 10

13 PRINCIPAL SUBSIDIARIES Sun Life Financial Inc. as of December 31, 2013 Massachusetts Financial Services Company PT. Sun Life Financial Indonesia Sun Life Assurance Company of Canada Sun Life Assurance Company of Canada (U.K.) Limited Sun Life Financial Trust Inc. Sun Life Global Investments (Canada) Inc. Sun Life Hong Kong Limited Sun Life Insurance (Canada) Limited Sun Life of Canada (Philippines), Inc. 11