Sun Life Financial Reports Fourth Quarter and Full Year 2012 Results

Sun Life Financial Inc.(3) (SLF.TO) (SLF) had operating net income of $453 million in the fourth quarter of 2012, compared to an operating loss of $221 million in the fourth quarter of 2011. Our operating EPS was $0.76 in the fourth quarter of 2012, compared to an operating loss per share of $0.38 in the fourth quarter of 2011. Reported net income was $395 million or $0.65 per share in the fourth quarter of 2012, compared to a reported loss of $525 million or a reported loss per share of $0.90 in the fourth quarter of 2011.

Our financial results in the fourth quarter reflect continued execution against our growth strategy, as well as positive impact from investment activity. Market factors had no material impact in the quarter, as the positive impact of improved equity markets was largely offset by declines in the fixed income reinvestment rates in our insurance contract liabilities, which were driven by the continued low interest rate environment, and unfavourable impact from credit spread and swap spread movements. Operating net income excluding the net impact of market factors(1) was $420 million. The following table sets out our operating net income measures for the fourth quarter of 2012.