CONSOLIDATED STATEMENTS OF OPERATIONS

CONSOLIDATED STATEMENTS OF OPERATIONS For the years ended December 31, (in millions of Canadian dollars except for per share amounts) 2015 2014 Revenue Premiums Gross $ 16,824 $ 15,499 Less: Ceded 6,429 5,503 Net premiums 10,395 9,996 Net investment income (loss): Interest and other investment income (Note 5) 5,288 4,941 Fair value and foreign currency changes on assets and liabilities (Note 5) (1,961) 6,172 Net gains (losses) on available-for-sale assets 228 202 Net investment income (loss) 3,555 11,315 Fee income (Note 18) 5,324 4,453 Total revenue 19,274 25,764 Benefits and expenses Gross claims and benefits paid (Note 11) 14,086 12,816 Increase (decrease) in insurance contract liabilities (Note 11) 1,261 8,920 Decrease (increase) in reinsurance assets (Note 11) (505) 13 Increase (decrease) in investment contract liabilities (Note 11) (29) 70 Reinsurance expenses (recoveries) (Note 12) (6,146) (5,411) Commissions 2,100 1,889 Net transfer to (from) segregated funds (Note 23) (43) (30) Operating expenses (Note 19) 5,037 4,537 Premium taxes 292 251 Interest expense 322 336 Total benefits and expenses 16,375 23,391 Income (loss) before income taxes 2,899 2,373 Less: Income tax expense (benefit) (Note 21) 599 491 Total net income (loss) 2,300 1,882 Less: Net income (loss) attributable to participating policyholders 15 9 Shareholders net income (loss) 2,285 1,873 Less: Preferred shareholders dividends 100 111 Common shareholders net income (loss) $ 2,185 $ 1,762 Average exchange rates during the reporting periods: U.S. dollars 1.28 1.10 U.K. pounds 1.95 1.82 Earnings (loss) per share (Note 27) Basic earnings (loss) per share $ 3.57 $ 2.88 Diluted earnings (loss) per share $ 3.55 $ 2.86 Dividends per common share $ 1.51 $ 1.44 Consolidated Financial Statements Sun Life Financial Inc. Annual Report 2015 91

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Total net income (loss) $ 2,300 $ 1,882 Other comprehensive income (loss), net of taxes: Items that may be reclassified subsequently to income: Change in unrealized foreign currency translation gains (losses): Unrealized gains (losses) before net investment hedges 1,689 681 Unrealized gains (losses) on net investment hedges (32) (13) Change in unrealized gains (losses) on available-for-sale assets: Unrealized gains (losses) (174) 367 Reclassifications to net income (loss) (124) (148) Change in unrealized gains (losses) on cash flow hedges: Unrealized gains (losses) 3 14 Reclassifications to net income (loss) (6) (21) Total items that may be reclassified subsequently to income 1,356 880 Items that will not be reclassified subsequently to income: Remeasurement of defined benefit plans (49) (137) Total items that will not be reclassified subsequently to income (49) (137) Total other comprehensive income (loss) 1,307 743 Total comprehensive income (loss) 3,607 2,625 Less: Participating policyholders comprehensive income (loss) 27 14 Shareholders comprehensive income (loss) $ 3,580 $ 2,611 INCOME TAXES INCLUDED IN OTHER COMPREHENSIVE INCOME (LOSS) Income tax benefit (expense): Items that may be reclassified subsequently to income: Unrealized foreign currency translation gains / losses, including net investment hedges $ (18) $ 2 Unrealized gains / losses on available-for-sale assets 61 (99) Reclassifications to net income for available-for-sale assets 54 36 Unrealized gains / losses on cash flow hedges (1) (5) Reclassifications to net income for cash flow hedges 2 7 Total items that may be reclassified subsequently to income 98 (59) Items that will not be reclassified subsequently to income: Remeasurement of defined benefit plans 12 63 Total items that will not be reclassified subsequently to income 12 63 Total income tax benefit (expense) included in other comprehensive income (loss) $ 110 $ 4 92 Sun Life Financial Inc. Annual Report 2015 Consolidated Financial Statements

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION As at December 31, (in millions of Canadian dollars) 2015 2014 Assets Cash, cash equivalents and short-term securities (Note 5) $ 8,983 $ 6,818 Debt securities (Notes 5 and 6) 69,896 66,214 Equity securities (Notes 5 and 6) 5,313 5,223 Mortgages and loans (Notes 5 and 6) 39,103 33,679 Derivative assets (Notes 5 and 6) 1,866 1,839 Other invested assets (Note 5) 3,111 2,375 Policy loans (Note 5) 3,151 2,895 Investment properties (Note 5) 6,540 6,108 Invested assets 137,963 125,151 Other assets (Note 8) 3,931 3,429 Reinsurance assets (Notes 11 and 12) 5,386 4,042 Deferred tax assets (Note 21) 1,372 1,230 Property and equipment (Note 9) 636 555 Intangible assets (Note 10) 1,479 895 Goodwill (Note 10) 4,646 4,117 Total general fund assets 155,413 139,419 Investments for account of segregated fund holders (Note 23) 91,440 83,938 Total assets $ 246,853 $ 223,357 Liabilities and equity Liabilities Insurance contract liabilities (Note 11) $ 110,227 $ 101,228 Investment contract liabilities (Note 11) 2,913 2,819 Derivative liabilities (Notes 5 and 6) 3,378 1,603 Deferred tax liabilities (Note 21) 405 155 Other liabilities (Note 13) 12,332 9,725 Senior debentures (Note 14) 2,248 2,849 Subordinated debt (Note 15) 2,492 2,168 Total general fund liabilities 133,995 120,547 Insurance contracts for account of segregated fund holders (Note 23) 83,670 76,736 Investment contracts for account of segregated fund holders (Note 23) 7,770 7,202 Total liabilities $ 225,435 $ 204,485 Equity Issued share capital and contributed surplus $ 10,900 $ 10,805 Retained earnings and accumulated other comprehensive income 10,518 8,067 Total equity $ 21,418 $ 18,872 Total liabilities and equity $ 246,853 $ 223,357 Exchange rates at the end of the reporting periods: U.S. dollars 1.38 1.16 U.K. pounds 2.04 1.81 Approved on behalf of the Board of Directors on February 10, 2016. Dean A. Connor President and Chief Executive Officer William D. Anderson Director Consolidated Financial Statements Sun Life Financial Inc. Annual Report 2015 93

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Shareholders: Preferred shares (Note 16) Balance, beginning of year $ 2,257 $ 2,503 Redemption of preferred shares (246) Balance, end of year 2,257 2,257 Common shares (Note 16) Balance, beginning of year 8,465 8,304 Stock options exercised 54 83 Common shares purchased for cancellation (74) (13) Issued under dividend reinvestment and share purchase plan 88 91 Issued as consideration for business acquisition (Note 3) 34 Balance, end of year 8,567 8,465 Contributed surplus Balance, beginning of year 83 95 Share-based payments 3 4 Stock options exercised (10) (16) Balance, end of year 76 83 Retained earnings Balance, beginning of year 6,762 5,899 Net income (loss) 2,285 1,873 Redemption of preferred shares (Note 16) (4) Dividends on common shares (918) (869) Dividends on preferred shares (100) (111) Common shares purchased for cancellation (Note 16) (138) (26) Balance, end of year 7,891 6,762 Accumulated other comprehensive income (loss), net of taxes Unrealized gains (losses) on available-for-sale assets 548 329 Unrealized cumulative translation differences, net of hedging activities 773 110 Unrealized gains (losses) on transfers to investment properties 6 6 Unrealized gains (losses) on derivatives designated as cash flow hedges 6 13 Cumulative changes in liabilities for defined benefit plans (169) (32) Balance, beginning of year 1,164 426 Total other comprehensive income (loss) for the year 1,295 738 Balance, end of year 2,459 1,164 Total shareholders equity, end of year $ 21,250 $ 18,731 Participating policyholders: Retained earnings Balance, beginning of year $ 135 $ 126 Net income (loss) 15 9 Balance, end of year 150 135 Accumulated other comprehensive income (loss), net of taxes Unrealized cumulative translation differences, net of hedging activities 6 1 Balance, beginning of year 6 1 Total other comprehensive income (loss) for the year 12 5 Balance, end of year 18 6 Total participating policyholders equity, end of year $ 168 $ 141 Total equity $ 21,418 $ 18,872 94 Sun Life Financial Inc. Annual Report 2015 Consolidated Financial Statements

CONSOLIDATED STATEMENTS OF CASH FLOWS Cash flows provided by (used in) operating activities Income (loss) before income taxes $ 2,899 $ 2,373 Add: Interest expense related to financing activities 297 313 Operating items not affecting cash: Increase (decrease) in insurance and investment contract liabilities 1,232 9,358 (Increase) decrease in reinsurance assets (595) (101) Unrealized (gains) losses on invested assets 3,833 (4,597) Other non-cash items (1,652) (443) Operating cash items: Deferred acquisition costs (60) (54) Realized (gains) losses on assets (812) (1,178) Sales, maturities and repayments of invested assets 46,306 64,305 Purchases of invested assets (46,661) (68,454) Change in policy loans (62) (13) Income taxes received (paid) (453) (230) Mortgage securitization (Note 5) 364 248 Other cash items (175) 277 Net cash provided by (used in) operating activities 4,461 1,804 Cash flows provided by (used in) investing activities Net (purchase) sale of property and equipment (106) 63 Investment in and transactions with joint ventures and associates (Note 17) (3) (87) Dividends received from joint ventures and associates (Note 17) 32 5 Cash received on sale of discontinued operation 72 Acquisitions, net of cash and cash equivalents acquired (Note 3) (578) (1) Other investing activities (68) (66) Net cash provided by (used in) investing activities (723) (13) Cash flows provided by (used in) financing activities Increase in (repayment of) borrowed funds 589 (260) Issuance of subordinated debt, net of issuance costs (Note 15) 497 249 Redemption of senior debentures and subordinated debt (Notes 14 and 15) (806) (500) Redemption of preferred shares (Note 16) (250) Issuance of common shares on exercise of stock options 44 67 Common shares purchased for cancellation (Note 16) (212) (39) Dividends paid on common and preferred shares (921) (886) Interest expense paid (297) (321) Net cash provided by (used in) financing activities (1,106) (1,940) Changes due to fluctuations in exchange rates 516 189 Increase (decrease) in cash and cash equivalents 3,148 40 Net cash and cash equivalents, beginning of year 3,364 3,324 Net cash and cash equivalents, end of year 6,512 3,364 Short-term securities, end of year 2,305 3,450 Net cash and cash equivalents and short-term securities, end of year (Note 5) $ 8,817 $ 6,814 (1) Consists of total cash consideration paid of $638, less cash and cash equivalents acquired of $60. Consolidated Financial Statements Sun Life Financial Inc. Annual Report 2015 95