Segmented Information

12 Months Ended

Dec. 31, 2020

4. Segmented Information

We have five reportable business segments: Canada, U.S., Asset Management, 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 primarily 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 our business segments to Asset Management. Effective January 1, 2020, SLC Management is collecting fee income and is incurring the operational expenses associated with the management of the general fund assets. Intersegment transactions are eliminated 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(1)			Asia		Corporate			Consolidation adjustments(1)			Total
2020
Gross premiums:
Annuities		$	3,594	$	—		$	—	$	108		$	27		$	—	$	3,729
Life insurance		5,358		1,548			—		4,821			85			—		11,812
Health insurance		6,011		4,583			—		33			22			—		10,649
Total gross premiums		14,963		6,131			—		4,962			134			—		26,190
Less: Ceded premiums		1,530		695			—		212			15			—		2,452
Net investment income (loss)		6,823		2,610			23		2,550			758			(46)		12,718
Fee income		1,376		92			5,014		572			103			(276)		6,881
Total revenue		21,632		8,138			5,037		7,872			980			(322)		43,337
Less:
Total benefits and expenses		20,669		7,825			3,712		7,137			1,029			(322)		40,050
Income tax expense (benefit)		50		56			334		54			1			—		495
Total net income (loss)		$	913	$	257		$	991	$	681		$	(50)		$	—	$	2,792
Less:
Net income (loss) attributable to participating policyholders		196		—			—		87			—			—		283
Net income (loss) attributable to non-controlling interests		—		—			11		—			—			—		11
Shareholders’ net income (loss)		$	717	$	257		$	980	$	594		$	(50)		$	—	$	2,498
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			905			11		13,140
Fee income		1,320		86			4,471		531			118			(275)		6,251
Total revenue		20,389		8,064			4,554		5,804			1,132			(264)		39,679
Less:
Total benefits and expenses		19,317		7,878			3,391		5,172			1,014			(326)		36,446
Income tax expense (benefit)		15		28			262		51			(70)			—		286
Total net income (loss)		$	1,057	$	158		$	901	$	581		$	188		$	62	$	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		188			$	62	$	2,713

(1) Reflects a change in presentation for our Asset Management segment effective January 1, 2020. We have updated the prior period to reflect this change in presentation.

Assets and liabilities by segment are as follows:


	Canada			U.S.		Asset Management			Asia		Corporate			Consolidation adjustments			Total
As at December 31, 2020
Total general fund assets		$	106,318	$	33,790		$	6,957	$	36,414		$	13,897		$	(286)	$	197,090
Investments for account of segregated fund holders		$	107,494	$	541		$	—	$	7,211		$	10,675		$	—	$	125,921
Total general fund liabilities		$	97,728	$	30,354		$	4,898	$	30,004		$	8,530		$	(286)	$	171,228
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

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,	2020		2019			2020		2019
Revenue:
United States(1)	$	4,505	$	4,185		$	169	$	129
United Kingdom	174		32			725		903
Canada(1)	311		326		(2)''	79		93
Other countries	47		11			7		7
Total revenue	$	5,037	$	4,554		$	980	$	1,132

(1) Reflects a change in presentation for our Asset Management segment effective January 1, 2020. We have updated the prior period to reflect this change in presentation.

(2) 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,	2020		2019		2020			2019
Total general fund assets:
United States	$	5,124	$	4,770		$	2,227		$	2,329
United Kingdom	1,037		145			7,766			8,210
Canada	580		534		(1)''	3,716			3,202
Other countries	216		217			188			189
Total general fund assets	$	6,957	$	5,666		$	13,897		$	13,930
Investment for account of segregated fund holders:
United Kingdom	$	—	$	—		$	10,675		$	11,026
Total investment for account of segregated fund holders	$	—	$	—		$	10,675		$	11,026

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