Impact of IFRS 17 changes
2
Approximately 2/3 of the transfer from shareholders' equity is
related to establishing the CSM
Recent IFRS 4 new business gains¹ represent only one component of Sun Life's transition CSM
Transition CSM impacts on shareholders' equity (Illustrative;
not to scale)
1
Open blocks with recent new business gains: Gross
gains that would have been recognized under IFRS 4,
but are deferred under IFRS 17
2
Open blocks
Closed
1
2
3
with recent new
blocks of
business gains
business
VUL
products in
Asia
Shareholders'
equity impact
from transition
CSM
3
•
SUN
LIFE
IFRS
1 7
• MAY 2022
Closed blocks of business²: Not observable in recent
pricing gains- this reflects profits that would have
been recognized under IFRS 4, but are deferred
under IFRS 17 on existing in-force policies
VUL products in Asia:
No current pricing gains
Currently, higher expected profit¹ recorded in
early years
Under IFRS 17, profit will be recognized evenly
over product life
Note: This slide contains forward-looking statements. Refer to "Forward-looking statements" on slide 3 for more information
Footnotes 1-2: Refer to slide 32
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