SUN LIFE FINANCIAL INC

Level of Aggregation

The unit of account for the measurement of insurance contracts is a group. Each insurance contract is assigned to a group at initial recognition and remains in that group until the insurance contract is derecognized.

Groups are subdivisions of portfolios. Portfolios are insurance contracts subject to similar risks and managed together and a portfolio is the level at which expenses are attributed and the level at which insurance contracts issued and reinsurance contracts held are presented.

Notes to the Consolidated Financial Statements Sun Life Financial Inc. December 31, 2023 23

We have established portfolios in each reportable business segment, distinguished between:

•Insurance contracts issued and reinsurance contracts held;

•Group insurance contracts and individual insurance contracts;

•Participating insurance contracts and non-participating insurance contracts;

•Adjustable insurance contracts and non-adjustable insurance contracts;

•Traditional life insurance contracts and universal life insurance contracts; and

•Pass-through insurance contracts and discretionary crediting contracts.

Within each portfolio, separate groups are established by:

•Date of issue: To be in the same group, contracts must be issued within the same time period, and the period cannot be longer than one year; and

•Level of profitability: Insurance contracts are separated into groups of contracts that are onerous at initial recognition, contracts that do not have a significant possibility of becoming onerous subsequently, and other contracts. The level of profitability for an insurance contract is based on the CSM at initial recognition of the contract (as described below in Initial Measurement).

We do not establish additional groups beyond the minimum required except for some portfolios of reinsurance contracts held where grouping is established to line up with the grouping of the underlying insurance contracts issued.