SUN LIFE FINANCIAL

C2 Solutions July 2017

Stop Loss Territory Map

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C2 Centric

WESTMindy Schulz

CENTRALDoug Gosney NORTHEAST

Kevin Olender

SOUTHEASTMichael Techtmann

Mike Hoefler, Stop-Loss VP

Marc Warrington Head of Field Sales (Group & Stop-Loss)

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Sales Representatives for C2C2 Centric

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Brokerage firm Location Sales Rep

Holmes Murphy Kansas City, Iowa and Nebraska Ryan Slattery

Dallas Ryan Nystrom

Phoenix Brady Myers

Denver Zach Smith

Scott Insurance Virginia Chris Emerick

North Carolina Brendan Clark

South Carolina Payton Brady

Kistler-Tiffany Adam Noce

McGohan Braebender Joel Albright

M3 Kevin O'Neil

The Partners Group Brian Partridge

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The power of strength

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We are the largest employee benefits insurer in the U.S., affording us the scale to offer products and services to meet client needs.1

6thWe have the largest PPO dental network in the U.S., helping our clients control costs and giving our members access to the dentists they want all across the country.2

2nd

We are the independent Stop-Loss carrier, providing us with the financial power to manage catastrophic claims risk.3

1#

1. As a result of the acquisition, Sun Life Financial’s U.S. group benefits business is the sixth-largest group benefits carrier (excluding group health care) in the U.S. based on pro forma combined revenue from an internal analysis of publicly available information. The acquiring entity was Sun Life Assurance Company of Canada, a subsidiary of Sun Life Financial Inc.

2. The Ignition Group, L.L.C. data as of March 2017 based on unique dentist count. For more information, please visit www.netminder.com.3. The #1 ranking is based on the National Association of Insurance Commissioners 2015 Accident and Health Policy Experience Report.

C2 Centric

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Business in force

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1. Business in force (“BIF”) of US$3.8 billion as of December 31, 2016. Includes Disability RMS premium under management. 2. Also includes Voluntary Life, Disability, Dental, and Vision.

$0.3B Dental and Vision

$0.2B Disability

RMS

$1.0B Group Life, Disability,

and Absence Management $1.2B

Stop-Loss

$1.1B Voluntary/

Worksite (includes Accident, CI, Cancer, and Gap)2

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US $3.8 billion1

C2 Centric

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Stop-loss business model

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Channels

• Brokers with self-funded clients

• TPAs with self-funded clients

• Regional partner programs

Prospects

• Self-funded employers with 35‒25,000+ employees

• Fully insured employers with 35‒25,000+ employees who are considering self-funding

Key industries

• Manufacturing• Transportation/

commerce• Wholesale/retail• Trade• Finance/

insurance/real estate

• Services• Health/hospitals• Education

Distribution

• Nationwide Sun Life Stop-Loss Specialists

• Access to home office executives

• Consultation with product experts

C2 Centric

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Sun Life Stop-Loss product snapshotC2 Centric

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Key features

• No New Lasers at Renewal option with Renewal Rate Cap

• Mirroring Endorsement (with review and approval)

• Early rate lock (up to 120 days)

• Variety of risk levels and contract periods

Key resources

• Sun Life Nurse Consultants

• SunResources®

specialty-vendors access program

• SunExcel® transplant-vendors access program

• SunEliteSM plan document review service

The Phia Group, LLC, provides SunElite services and is solely responsible for the content of all SunElite reports. A SunElite report varies according to the plan document. Neither Sun Life nor The Phia Group, LLC, can provide legal advice. SLPC 28510

Stop-loss premium history

Business in force

C2 Centric

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$536M$598M

$687M$768M $778M

$840M$915M

$1.03B$1.16B $1.19B

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Sun Life Stop-Loss information as of each year-end.

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Stop-loss premium by employer sizeC2 Centric

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Source: Sun Life internal analysis as of year-end 2016.

14%199 or less

19%200–499

18%500–999

25%1,000–2,999

23%3,000+

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Stop-loss premium by administratorC2 Centric

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7%Aetna 9%

Cigna

24%Blues

15%United

45%Third party

administrator

Source: An internal analysis of Sun Life Stop-Loss data as of year-end 2016.

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Solutions & Specialization

Highlight: cash flow

We adjudicate all claims according to the medical plan document and the stop-loss policy. At the end of the policy period, reimbursement of excess accommodations may be required.

C2 Centric

Electronic funds

transferfor quick access

Monthly Aggregate

Accommodation option

to reduce the financial impact of monthly claim

volatility and improve cash flow

Advance Fundingfor greater cash flow

control

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Accelerated ASO

ReimbursementReimbursements

received in an average

of only 48 hours

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Highlight: mirroring

Underlying medical plan documentprovisions

Medical plan

documentStop-loss

policy

• Eliminates many potential coverage gaps

• Simplifies claims process

Sun Life Stop-Loss Plan Document Analysts review plan documents

C2 Centric

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Mirroring is subject to exclusions.

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C2 Centric

Sun Life Stop-Loss service snapshot

$2.3 billion and countingDid you know? Sun Life has:• processed over 105,000 claims and • provided more than $2.3 billion in reimbursements.

(Information based on 2012–2015 data.)

Ready• Inception call for on-

boarding new groups • Sun Life Connect

website to track stop-loss claims

• Mirroring and early rate locks

• Active partnership with brokers, third party administrators, case managers, and administrative-services-only carriers

Set• Dynamic nurse

consultants who provide opportunities—before and after a stop-loss claim—for improved patient outcomes and cost containment

• Dedicated claims analysts who understand how to properly process claims for ASOs and TPAs

Go• Seamless reimbursements• Easy access to funds with

electronic direct deposit, Advance Funding, Monthly Aggregate Accommodation

• Stop-Loss Account Managers who provide direct support to brokers for new quote facilitation, service, and renewal delivery

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C2 Centric

Dynamic stop-loss claims management

Managecatastrophic claims with clinical expertise

Identifyunnecessary expenses

Sun Life Nurse Consultants

Delivering opportunities to improve patient

outcomes and contain costs

Consultwith vendors and specialty networks

Serveas a clinical resource for case managers and administrators

Negotiatewith providers for out-of-network claims

Providea gateway to SunResources®

specialty-vendors access program and SunExcel®transplant-vendors access program

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C2 Centric

Stop-loss claims process timeline

Claim received Claim reimbursement request received from administrator.

Claim process beginsClaim is opened within 24 hours of receipt.

Claim added to claim system Claim is manually or electronically uploaded.

Review completedClaim is assigned pay, pend, or deny status.

Documentation requestedWe ask for any missing required documentation, and if provided, we complete the review. If not provided, we will deny the claim due to lack of required documentation.

Day 1 Day 2‒3 Day 4‒7 Day 8‒12

Decision made in about 7 daysIf all required documentation is present, claim is paid or denied.

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Source: Decisions take an average of 7 business days, based on complete Specific claims as of year-end 2015.

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Insights

Guidance

• The latest

C2 Centric

2017 Sun Life Stop-Loss Research Report

Sun Life Stop-Loss Benchmark Report 2.0

2016 Self-Funded Playbook

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Stop Loss Program

Experience Rated Refund program

When C2 clients have good claims experience they can qualify for an Experience Rated Refund

C2 Centric

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Customized

C2premium

level$400,000

This program is at the client level and they do not need to worry about sharing in another client’s poor experience.

Sun Life has set a customized C2 premium level of $400,000 for C2 clients to be eligible for the ERR Program

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Experience Rated Refund program

• This calculation is done 6 months after the end of the policy period

• C2 client gets 50% of the surplus premium up to a maximum of 10% of paid Specific premium

• C2 clients must renew to be eligible for the ERR payment

• Sun Life and C2 have set a shared sales target for 2017 effective dates

C2 Centric

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When a C2 client exhibits a 70% loss ratio (after netting out commissions) they qualify

70% loss ratio

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SunElite® plan document review service

• Provides custom review by The Phia Group, LLC plan document professionals

• Offers analysis of plan language about cost-containment, federal laws, and discretionary authority

• Gives an employer the opportunity to better understand the plan and consider making changes to strengthen it

C2 Centric

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The Phia Group, LLC, provides SunElite services and is solely responsible for the content of all SunElite reports. A SunElite report varies according to the plan document. Neither Sun Life nor The Phia Group, LLC, can provide legal advice. SLPC 28510

New! Plan Document Review for C2

Exclusive for C2 Partner Firms for new business• 15 Plan Document Reviews for new business cases • Increases as production increases

C2 Centric

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• Unlimited Plan Document Reviews for in-force cases

$5,000,000‒$6,000,000 in new sales

Increase to 20 reviews

$6,000,001‒$7,000,000 in new sales

Increase to 25 reviews

$7,000,001+in new sales

Increase to 30 reviews

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Issued by Sun Life Assurance Company of Canada and Sun Life and Health Insurance Company (U.S.) Group stop-loss insurance policies are underwritten by Sun Life Assurance Company of Canada (Wellesley Hills, MA) in all states, except New York, under Policy Form Series 07-SL REV 7-12. In New York, group stop-loss insurance policies are underwritten by Sun Life and Health Insurance Company (U.S.) (Lansing, MI) under Policy Form Series 07-NYSL REV 7-12. Product offerings may not be available in all states and may vary depending on state laws and regulations. The following services are not insurance and carry a separate charge included with the price of coverage: SunResources®, owned by Sun Life; SunExcel®, owned by Sun Life; and SunEliteSM, owned by Sun Life with services provided by third party The Phia Group, LLC. Sun Life is not responsible or liable for the services or advice provided by any third party vendor. Sun Life reserves the right to discontinue any service at any time. All products, brands, and names are the property of their respective owners.© 2017 Sun Life Assurance Company of Canada, Wellesley Hills, MA 02481. All rights reserved. Sun Life Financial and the globe symbol are registered trademarks of Sun Life Assurance Company of Canada. Visit us at www.sunlife.com/us

One Sun Life Executive ParkWellesley Hills, MA 02481

www.sunlife.com/us

GSLPPT-6874b SLPC 28510 07/17 (exp. 12/17)