

4. Segmented Information

We have five reportable business segments: Canada, U.S., Asset Management, Asia, and Corporate. Prior to 2019, these business segments were referred to as SLF Canada, SLF U.S., SLF Asset Management, SLF Asia, and Corporate.

These business segments operate in the financial services industry and reflect our management structure and internal financial reporting. Corporate includes the results of our UK business unit and our Corporate Support operations, which include run-off reinsurance operations as well as investment income, expenses, capital, and other items not allocated to our other business groups.

Revenues from our business segments are derived principally from life and health insurance, investment management and annuities, and mutual funds. Revenues not attributed to the strategic business units are derived primarily from Corporate investments and earnings on capital. Transactions between segments are executed and priced at an arm’s-length basis in a manner similar to transactions with third parties.

The expenses in each business segment may include costs or services directly incurred or provided on their behalf at the enterprise level. For other costs not directly attributable to one of our business segments, we use a management reporting framework that uses assumptions, judgments, and methodologies for allocating overhead costs, and indirect expenses to our business segments.

Intersegment transactions consist primarily of internal financing agreements which are measured at fair values prevailing when the arrangements are negotiated. Intersegment investment income consists primarily of interest paid by U.S. to Corporate. Intersegment fee income is primarily asset management fees paid by Canada and Corporate to Asset Management, and product distribution fees paid by Asset Management to Asia. Intersegment transactions are presented in the Consolidation adjustments column in the following tables.

Management considers its external Clients to be individuals and corporations. We are not reliant on any individual Client as none is individually significant to our operations.

Results by segment for the years ended December 31, are as follows:



	Canada			U.S.			Asset Management			Asia		Corporate				Consolidation adjustments				Total
2019
Gross premiums:
Annuities		$	3,276	$	1			$	—	$	2		$	23			$	—		$	3,302
Life insurance		5,178		1,605				—		2,597			90				—			9,470
Health insurance		5,629		4,232				—		31			16				—			9,908
Total gross premiums		14,083		5,838				—		2,630			129				—			22,680
Less: Ceded premiums		1,488		662				—		222			20				—			2,392
Net investment income (loss)		6,474		2,802				83		2,865			936				(20		)	13,140
Fee income		1,320		86				4,309		531			149				(144		)	6,251
Total revenue		20,389		8,064				4,392		5,804			1,194				(164		)	39,679
Less:
Total benefits and expenses		19,317		7,878				3,229		5,172			1,014				(164		)	36,446
Income tax expense (benefit)		15		28				262		51			(70		)		—			286
Total net income (loss)		$	1,057	$	158			$	901	$	581		$	250			$	—		$	2,947
Less:
Net income (loss) attributable to participating policyholders		174		(5		)		—		61			—				—			230
Net income (loss) attributable to non-controlling interests		—		—				4		—			—				—			4
Shareholders’ net income (loss)		$	883	$	163			$	897	$	520		$	250			$	—		$	2,713
2018
Gross premiums:
Annuities		$	3,261	$	—			$	—	$	1		$	(79	)		$	—		$	3,183
Life insurance		4,796		1,633				—		2,154			94				—			8,677
Health insurance		5,316		3,767				—		24			14				—			9,121
Total gross premiums		13,373		5,400				—		2,179			29				—			20,981
Less: Ceded premiums		1,487		597				—		232			23				—			2,339
Net investment income (loss)		1,942		305				13		76			79				(26		)	2,389
Fee income		1,240		73				4,111		514			154				(126		)	5,966
Total revenue		15,068		5,181				4,124		2,537			239				(152		)	26,997
Less:
Total benefits and expenses		13,497		5,183				2,930		1,919			109				(152		)	23,486
Income tax expense (benefit)		308		(19		)		284		51			(27		)		—			597
Total net income (loss)		$	1,263	$	17			$	910	$	567		$	157			$	—		$	2,914
Less:
Net income (loss) attributable to participating policyholders		321		(35		)		—		12			—				—			298
Shareholders’ net income (loss)		$	942	$	52			$	910	$	555		$	157			$	—		$	2,616

Assets and liabilities by segment are as follows:



	Canada			U.S.		Asset Management			Asia		Corporate			Consolidation adjustments				Total
As at December 31, 2019
Total general fund assets		$	94,909	$	34,711		$	5,666	$	31,285		$	13,930		$	(272	)	$	180,229
Investments for account of segregated fund holders		$	98,758	$	514		$	—	$	6,675		$	11,026		$	—		$	116,973
Total general fund liabilities		$	86,847	$	31,044		$	4,250	$	25,750		$	8,102		$	(272	)	$	155,721
As at December 31, 2018
Total general fund assets		$	86,697	$	34,584		$	4,468	$	28,855		$	14,378		$	(217	)	$	168,765
Investments for account of segregated fund holders		$	85,885	$	491		$	—	$	6,173		$	10,513		$	—		$	103,062
Total general fund liabilities		$	78,946	$	30,671		$	2,396	$	23,692		$	8,707		$	(217	)	$	144,195

The revenue and assets of our business segments differ from geographic segments primarily due to the geographic segmenting of our Asset Management and Corporate segments.

The following table shows revenue by country for Asset Management and Corporate:



	Asset Management				Corporate
For the years ended December 31,	2019		2018		2019		2018
Revenue:
United States	$	4,139	$	3,945	$	191	$	58
United Kingdom	32		—		903		142
Canada⁽¹⁾	210		179		93		38
Other countries	11		—		7		1
Total revenue	$	4,392	$	4,124	$	1,194	$	239

⁽¹⁾Consists of the Canadian operations of Bentall Kennedy and Sun Life Institutional Investments (Canada) Inc. for Asset Management.

The following table shows total assets by country for Asset Management and Corporate:



	Asset Management					Corporate
As at December 31,	2019		2018		2019			2018
Total general fund assets:
United States	$	4,770	$	4,147		$	2,329		$	2,550
United Kingdom	145		—			8,210			8,274
Canada⁽¹⁾	534		321			3,202			3,384
Other countries	217		—			189			170
Total general fund assets	$	5,666	$	4,468		$	13,930		$	14,378
Investment for account of segregated fund holders:
United Kingdom	$	—	$	—		$	11,026		$	10,513
Total investment for account of segregated fund holders	$	—	$	—		$	11,026		$	10,513

⁽¹⁾ Consists of the Canadian operations of Bentall Kennedy and Sun Life Institutional Investments (Canada) Inc. for Asset Management.