Cover
Cover | 12 Months Ended |
Dec. 31, 2022 shares | |
Disclosure of classes of share capital [line items] | |
Document Type | 40-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2022 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 001-15014 |
Entity Registrant Name | Sun Life Financial Inc. |
Entity Incorporation, State or Country Code | Z4 |
Entity Address, Address Line One | 1 York Street, 31st Floor |
Entity Address, City or Town | Toronto |
Entity Address, State or Province | ON |
Entity Address, Country | CA |
Entity Address, Postal Zip Code | M5J 0B6 |
City Area Code | 416 |
Local Phone Number | 979-9966 |
Title of 12(b) Security | Common Shares |
Trading Symbol | SLF |
Security Exchange Name | NYSE |
Annual Information Form | true |
Audited Annual Financial Statements | true |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0001097362 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Common shares | |
Disclosure of classes of share capital [line items] | |
Entity Common Stock, Shares Outstanding | 586,396,908 |
Class A Preferred Shares Series 3 | |
Disclosure of classes of share capital [line items] | |
Entity Common Stock, Shares Outstanding | 10,000,000 |
Class A Preferred Shares Series 4 | |
Disclosure of classes of share capital [line items] | |
Entity Common Stock, Shares Outstanding | 12,000,000 |
Class A Preferred Shares Series 5 | |
Disclosure of classes of share capital [line items] | |
Entity Common Stock, Shares Outstanding | 10,000,000 |
Class A Preferred Shares Series 8R | |
Disclosure of classes of share capital [line items] | |
Entity Common Stock, Shares Outstanding | 6,217,331 |
Class A Preferred Shares Series 9QR | |
Disclosure of classes of share capital [line items] | |
Entity Common Stock, Shares Outstanding | 4,982,669 |
Class A Preferred Shares Series 10R | |
Disclosure of classes of share capital [line items] | |
Entity Common Stock, Shares Outstanding | 6,838,672 |
Class A Preferred Shares Series 11QR | |
Disclosure of classes of share capital [line items] | |
Entity Common Stock, Shares Outstanding | 1,161,328 |
Class A Preferred Shares Series 14 | |
Disclosure of classes of share capital [line items] | |
Entity Common Stock, Shares Outstanding | 1,000,000 |
Business Contact | |
Disclosure of classes of share capital [line items] | |
Entity Address, Address Line One | One Sun Life Executive Park |
Entity Address, City or Town | Wellesley Hills |
Entity Address, State or Province | MA |
Entity Address, Postal Zip Code | 02481 |
City Area Code | 781 |
Local Phone Number | 237-6030 |
Contact Personnel Name | Sun Life Assurance Company of Canada – U.S. Operations Holdings, Inc. |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Firm ID | 1208 |
Auditor Name | Deloitte LLP |
Auditor Location | Toronto, Ontario, Canada |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS $ in Millions | 12 Months Ended | |
Dec. 31, 2022 CAD ($) $ / shares $ / shares | Dec. 31, 2021 CAD ($) $ / shares $ / shares | |
Premiums | ||
Gross | $ 29,160 | $ 25,506 |
Less: Ceded | 2,297 | 2,453 |
Net premiums | 26,863 | 23,053 |
Net investment income (loss): | ||
Interest and other investment income | 6,152 | 6,272 |
Fair value and foreign currency changes on assets and liabilities | (17,759) | (1,785) |
Net gains (losses) on available-for-sale assets | 20 | 146 |
Net investment income (loss) | (11,587) | 4,633 |
Fee income | 8,046 | 8,002 |
Total revenue | 23,322 | 35,688 |
Benefits and expenses | ||
Gross claims and benefits paid | 22,044 | 18,722 |
Increase (decrease) in insurance contract liabilities | (11,107) | 2,437 |
Decrease (increase) in reinsurance assets | (951) | 86 |
Increase (decrease) in investment contract liabilities | (107) | (22) |
Reinsurance expenses (recoveries) | (2,140) | (2,425) |
Net transfer to (from) segregated funds | (1,149) | (351) |
Operating expenses, commissions and premium taxes | 12,364 | 11,817 |
Interest expense | 445 | 327 |
Total benefits and expenses | 19,399 | 30,591 |
Income (loss) before income taxes | 3,923 | 5,097 |
Less: Income tax expense (benefit) | 621 | 727 |
Total net income (loss) | 3,302 | 4,370 |
Less: Net income (loss) attributable to participating policyholders | 116 | 335 |
Net income (loss) attributable to non-controlling interests | 56 | 0 |
Shareholders’ net income (loss) | 3,130 | 4,035 |
Less: Dividends on preferred shares and distributions on other equity instruments | 70 | 101 |
Common shareholders’ net income (loss) | $ 3,060 | $ 3,934 |
Average exchange rates during the reporting periods (in USD per share) | $ / shares | 1.30 | 1.25 |
Earnings (loss) per share | ||
Basic (in CAD per share) | $ / shares | $ 5.22 | $ 6.72 |
Diluted (in CAD per share) | $ / shares | 5.21 | 6.69 |
Dividends per common share (in CAD per share) | $ / shares | $ 2.760 | $ 2.310 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of comprehensive income [abstract] | ||
Total net income (loss) | $ 3,302 | $ 4,370 |
Change in unrealized foreign currency translation gains (losses): | ||
Unrealized gains (losses) | 934 | (202) |
Change in unrealized gains (losses) on available-for-sale assets: | ||
Unrealized gains (losses) | (1,270) | (236) |
Reclassifications to net income (loss) | (20) | (130) |
Change in unrealized gains (losses) on cash flow hedges: | ||
Unrealized gains (losses) | 42 | 25 |
Reclassifications to net income (loss) | (53) | (19) |
Share of other comprehensive income (loss) in joint ventures and associates: | ||
Unrealized gains (losses) | (109) | (14) |
Reclassifications to net income (loss) upon change in ownership interest | 0 | 9 |
Total items that may be reclassified subsequently to income | (476) | (567) |
Items that will not be reclassified subsequently to income: | ||
Remeasurement of defined benefit plans | 168 | (39) |
Revaluation of property, plant and equipment | (2) | 0 |
Total items that will not be reclassified subsequently to income | 166 | (39) |
Total other comprehensive income (loss) | (310) | (606) |
Total comprehensive income (loss) | 2,992 | 3,764 |
Less: Participating policyholders' comprehensive income (loss) | 137 | 332 |
Non-controlling interests’ comprehensive income (loss) | 60 | 0 |
Shareholders’ comprehensive income (loss) | 2,795 | 3,432 |
Items that may be reclassified subsequently to income: | ||
Unrealized foreign currency translation gains (losses) | 4 | 1 |
Unrealized gains (losses) on available-for-sale assets | 304 | 66 |
Reclassifications to net income for available-for-sale assets | 2 | 15 |
Unrealized gains (losses) on cash flow hedges | 6 | (11) |
Reclassifications to net income for cash flow hedges | 0 | 8 |
Total items that may be reclassified subsequently to income | 316 | 79 |
Items that will not be reclassified subsequently to income: | ||
Remeasurement of defined benefit plans | (75) | 9 |
Revaluation of property, plant and equipment | (2) | 0 |
Total items that will not be reclassified subsequently to income | (77) | 9 |
Total income tax benefit (expense) included in other comprehensive income (loss) | $ 239 | $ 88 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION $ in Millions | Dec. 31, 2022 CAD ($) $ / shares | Dec. 31, 2021 CAD ($) $ / shares |
Assets | ||
Cash, cash equivalents and short-term securities | $ 11,219 | $ 12,278 |
Debt securities | 75,902 | 88,727 |
Equity securities | 7,148 | 9,113 |
Mortgages and loans | 56,261 | 51,692 |
Derivative assets | 2,095 | 1,583 |
Other invested assets | 11,215 | 8,759 |
Policy loans | 3,350 | 3,261 |
Investment properties | 10,102 | 9,109 |
Invested assets | 177,292 | 184,522 |
Other assets | 7,810 | 5,434 |
Reinsurance assets | 4,801 | 3,683 |
Deferred tax assets | 2,282 | 1,848 |
Intangible assets | 4,724 | 3,370 |
Goodwill | 8,705 | 6,517 |
Total general fund assets | 205,614 | 205,374 |
Investments for account of segregated fund holders | 125,292 | 139,996 |
Total assets | 330,906 | 345,370 |
Liabilities | ||
Insurance contract liabilities | 140,418 | 147,811 |
Investment contract liabilities | 3,314 | 3,368 |
Derivative liabilities | 2,351 | 1,392 |
Deferred tax liabilities | 630 | 322 |
Other liabilities | 22,648 | 17,783 |
Senior debentures | 200 | 200 |
Subordinated debt | 6,676 | 6,425 |
Total general fund liabilities | 176,237 | 177,301 |
Insurance and investment contracts for account of segregated fund holders | 125,292 | 139,996 |
Total liabilities | 301,529 | 317,297 |
Equity | ||
Issued share capital and contributed surplus | 10,640 | 10,615 |
Shareholders’ retained earnings and accumulated other comprehensive income | 16,810 | 15,699 |
Total shareholders’ equity | 27,450 | 26,314 |
Participating policyholders’ equity | 1,837 | 1,700 |
Non-controlling interests’ equity | 90 | 59 |
Total equity | 29,377 | 28,073 |
Total liabilities and equity | $ 330,906 | $ 345,370 |
Exchange rates at the end of the reporting periods (in USD per share) | $ / shares | 1.35 | 1.26 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - CAD ($) $ in Millions | Total | Common shares | Total shareholders' equity | Issued capital | Issued capital Preferred shares and other equity instruments | Issued capital Common shares | Contributed surplus | Retained earnings | Retained earnings Preferred shares and other equity instruments | Retained earnings Common shares | Accumulated other comprehensive income (loss), net of taxes | Participating policyholders | Non-controlling interests |
Balance, beginning of year at Dec. 31, 2020 | $ 2,257 | $ 8,262 | $ 72 | $ 12,289 | $ 1,589 | $ 1,368 | $ 25 | ||||||
Changes in equity [abstract] | |||||||||||||
Issued during the year | 1,000 | ||||||||||||
Issuance costs, net of tax | 7 | ||||||||||||
Redemption of shares | (1,025) | (20) | |||||||||||
Stock options exercised | $ 43 | 43 | (7) | ||||||||||
Share-based payments | 6 | ||||||||||||
Net income (loss) | $ 4,370 | 4,035 | 335 | 0 | |||||||||
Dividends on shares | $ (101) | $ (1,351) | |||||||||||
Changes attributable to acquisition | (139) | 15 | |||||||||||
Total other comprehensive income (loss) for the year | (606) | $ (603) | (603) | (3) | 0 | ||||||||
Additional contribution | 37 | ||||||||||||
Distribution to non-controlling interests | (18) | ||||||||||||
Balance, end of year at Dec. 31, 2021 | 28,073 | 26,314 | $ 24,075 | 2,239 | 8,305 | 71 | 14,713 | 986 | 1,700 | 59 | |||
Changes in equity [abstract] | |||||||||||||
Issued during the year | 0 | ||||||||||||
Issuance costs, net of tax | 0 | ||||||||||||
Redemption of shares | 0 | 0 | |||||||||||
Stock options exercised | $ 6 | 6 | 0 | ||||||||||
Share-based payments | 19 | ||||||||||||
Net income (loss) | 3,302 | 3,130 | 116 | 56 | |||||||||
Dividends on shares | $ (70) | $ (1,614) | |||||||||||
Changes attributable to acquisition | 0 | 0 | |||||||||||
Total other comprehensive income (loss) for the year | (310) | (335) | (335) | 21 | 4 | ||||||||
Additional contribution | 2 | ||||||||||||
Distribution to non-controlling interests | (31) | ||||||||||||
Balance, end of year at Dec. 31, 2022 | $ 29,377 | $ 27,450 | $ 25,211 | $ 2,239 | $ 8,311 | $ 90 | $ 16,159 | $ 651 | $ 1,837 | $ 90 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 CAD ($) | Dec. 31, 2021 CAD ($) | |||
Cash flows provided by (used in) operating activities | ||||
Income (loss) before income taxes | $ 3,923 | $ 5,097 | ||
Adjustments: | ||||
Interest expense related to financing activities | 279 | 186 | ||
Increase (decrease) in insurance and investment contract liabilities | (11,214) | 2,415 | ||
Decrease (increase) in reinsurance assets | (951) | 86 | ||
Realized and unrealized (gains) losses and foreign currency changes on invested assets | 17,739 | 1,639 | ||
Sales, maturities and repayments of invested assets | 53,535 | 55,189 | ||
Purchases of invested assets | (57,153) | (64,592) | ||
Income taxes received (paid) | (795) | (1,028) | ||
Mortgage securitization | 151 | 95 | ||
Other operating activities | (1,203) | (944) | ||
Net cash provided by (used in) operating activities | 4,311 | (1,857) | ||
Cash flows provided by (used in) investing activities | ||||
Net (purchase) sale of property and equipment | 71 | |||
Net (purchase) sale of property and equipment | (81) | |||
Investment in and transactions with joint ventures and associates | (69) | (29) | ||
Dividends and other proceeds relating to joint ventures and associates | 27 | 382 | ||
Acquisitions, net of cash and cash equivalents | (2,633) | [1] | (412) | [1] |
Other investing activities | (259) | (663) | ||
Net cash provided by (used in) investing activities | (2,863) | (803) | ||
Cash flows provided by (used in) financing activities | ||||
Increase in (repayment of) borrowed funds | (34) | 31 | ||
Issuance of subordinated debt, net of issuance costs | 646 | 1,992 | ||
Increase in (repayment of) borrowing from credit facility | 1,786 | 108 | ||
Redemption of preferred shares and other equity instruments | 0 | (1,025) | ||
Redemption of senior debentures and subordinated debt | (400) | (650) | ||
Issuance of preferred shares and other equity instruments, net | 0 | 987 | ||
Issuance of common shares on exercise of stock options | 6 | 36 | ||
Transactions with non-controlling interests | (25) | 19 | ||
Dividends paid on common and preferred shares | (1,671) | (1,428) | ||
Payment of lease liabilities | (136) | (143) | ||
Interest expense paid | (270) | (187) | ||
Other financing activities | 27 | 0 | ||
Net cash provided by (used in) financing activities | (71) | (260) | ||
Changes due to fluctuations in exchange rates | 302 | (35) | ||
Increase (decrease) in cash and cash equivalents | 1,679 | (2,955) | ||
Net cash and cash equivalents, beginning of year | 7,693 | 10,648 | ||
Net cash and cash equivalents, end of year | 9,372 | 7,693 | ||
Short-term securities, end of year | 1,841 | 4,452 | ||
Net cash, cash equivalents and short-term securities, end of year | 11,213 | 12,145 | ||
Total cash consideration paid | 3,267 | 446 | ||
Cash and cash equivalents acquired | $ 641 | $ 34 | ||
[1]Consists primarily of total cash consideration paid for the acquisition of DentaQuest of $3,267, less cash and cash equivalents acquired of $641 (2021 — total cash consideration paid of $446, less cash and cash equivalents acquired of $34). |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Significant Accounting Policies | 1. Significant Accounting Policies Description of Business Sun Life Financial Inc. ("SLF Inc.") is a publicly traded company domiciled in Canada and is the holding company of Sun Life Assurance Company of Canada ("Sun Life Assurance"). Both companies are incorporated under the Insurance Companies Act (Canada), and are regulated by the Office of the Superintendent of Financial Institutions, Canada ("OSFI"). SLF Inc. and its subsidiaries are collectively referred to as "us", "our", "ours", "we", or "the Company". We are an internationally diversified financial services organization providing savings, retirement and pension products, and life and health insurance to individuals and groups through our operations in Canada, the United States ("U.S."), Asia, and the United Kingdom ("UK"). We also operate mutual fund and investment management businesses, primarily in Canada, the U.S., and Asia. Statement of Compliance We prepared our Consolidated Financial Statements in accordance with International Financial Reporting Standards ("IFRS") as issued and adopted by the International Accounting Standards Board ("IASB"). Our accounting policies have been applied consistently within our Consolidated Financial Statements. Basis of Presentation Our Consolidated Statements of Financial Position are presented in the order of liquidity and each statement of financial position line item includes both current and non-current balances, as applicable. We have defined our reportable business segments and the amounts disclosed for those segments based on our management structure and the manner in which our internal financial reporting is conducted. Transactions between segments are executed and priced on an arm’s-length basis in a manner similar to transactions with third parties. The significant accounting policies used in the preparation of our Consolidated Financial Statements are summarized below and are applied consistently. Estimates, Assumptions and Judgments The application of our accounting policies requires estimates, assumptions and judgments as they relate to matters that are inherently uncertain. We have established procedures to ensure that our accounting policies are applied consistently and that the processes for changing methodologies for determining estimates are controlled and occur in an appropriate and systematic manner. Use of Estimates and Assumptions The preparation of our Consolidated Financial Statements requires us to make estimates and assumptions that affect the application of our policies and the reported amounts of assets, liabilities, revenue and expenses. Key sources of estimation uncertainty include the measurement of insurance contract liabilities and investment contract liabilities, determination of fair value, impairment of financial instruments, determination and impairment of goodwill and intangible assets, determination of provisions and liabilities for pension plans, other post-retirement benefits, income taxes, and the determination of fair value of share-based payments. Actual results may differ from our estimates thereby impacting our Consolidated Financial Statements. Information on our use of estimates and assumptions are discussed in this Note. Judgments In preparation of these Consolidated Financial Statements, we use judgments to select assumptions and determine estimates as described above. We also use judgment when applying accounting policies and when determining the classification of insurance contracts, investment contracts and service contracts; the substance of whether our relationship with a structured entity, subsidiary, joint venture or associate constitutes control, joint control or significant influence; functional currencies; contingencies; acquisitions; deferred income tax assets; and the determination of cash generating unit ("CGU"). COVID-19 Pandemic Considerations In early 2020, the world was impacted by COVID-19, which was declared a global pandemic by the World Health Organization. The overall impact of the COVID-19 pandemic is still uncertain and dependent on the progression of the virus and on actions taken by governments, businesses and individuals, which could vary by country and result in differing outcomes. The application of our accounting policies requires estimates, assumptions and judgments as they relate to matters that are inherently uncertain. We have established procedures to ensure that our accounting policies are applied consistently and that the processes for changing methodologies for determining estimates are controlled and occur in an appropriate and systematic manner. For our insurance contract liabilities, no material COVID-19 specific provisions or adjustments to our long-term assumptions have been made, and we continue to monitor our experience and exposure to the COVID-19 pandemic. Significant estimates and judgments have been made in the following areas and are discussed as noted: Insurance contract and investment contract assumptions and measurement Note 1 Insurance Contract Liabilities and Investment Contract Liabilities Note 10 Insurance Contract Liabilities and Investment Contract Liabilities Determination of fair value Note 1 Basis of Consolidation Note 1 Determination of Fair Value Note 3 Acquisitions and Other Note 5 Total Invested Assets and Related Net Investment Income Impairment of financial instruments Note 1 Financial Assets Excluding Derivative Financial Instruments Note 6 Financial Instrument Risk Management Income taxes Note 1 Income Taxes Note 20 Income Taxes Pension plans Note 1 Pension Plans and Other Post-Retirement Benefits Note 25 Pension Plans and Other Post-Retirement Benefits Goodwill and intangible assets on acquisition and impairment Note 1 Goodwill Note 1 Intangible Assets Note 3 Acquisitions and Other Note 9 Goodwill and Intangible Assets Determination of control for purpose of consolidation Note 1 Basis of Consolidation Note 16 Interests in Other Entities Share-based payments Note 19 Share-Based Payments Basis of Consolidation Our Consolidated Financial Statements include the results of operations and the financial position of subsidiaries, which includes structured entities controlled by us, after intercompany balances and transactions have been eliminated. Subsidiaries are fully consolidated from the date we obtain control, and deconsolidated on the date control ceases. The acquisition method is used to account for the acquisition of a subsidiary from an unrelated party at the date that control is obtained, with the difference between the consideration transferred and the fair value of the subsidiary’s net identifiable assets acquired recorded as goodwill. Judgment is required to determine fair value of the net identifiable assets acquired in a business combination. Interests in controlled entities held by external parties are reported as non-controlling interests ("NCI"). We control an entity when we have power over an entity, exposure to or rights to variable returns from our involvement with an entity, and the ability to affect our returns through our power over an entity. Power exists when we have rights that give us the ability to direct the relevant activities, which are those activities that could significantly affect the entity’s returns. Power can be obtained through voting rights or other contractual arrangements. Judgment is required to determine the relevant activities and which party has power over these activities. When we have power over and variable returns from an entity, including an investment fund that we manage, we also apply significant judgment in determining whether we are acting as a principal or agent. To make this determination, we consider factors such as how much discretion we have regarding the management of the investment fund and the magnitude and extent of variability associated with our interests in the fund. If we determine we are the principal rather than the agent, we would consolidate the assets and liabilities of the fund. Interests held by external parties in investment funds that we consolidate are recorded as third-party interest in consolidated investment funds in Other liabilities. If we lose control of an entity, the assets and liabilities of that entity are derecognized from our Consolidated Statements of Financial Position at the date at which control is lost and any investment retained is remeasured to fair value. A joint venture exists when SLF Inc., or one of its subsidiaries, has joint control of a joint arrangement and has rights to the net assets of the arrangement. Joint control is the contractually agreed sharing of control and exists only when the decisions about the relevant activities require the unanimous consent of the parties sharing control. Associates are entities over which SLF Inc. or its subsidiaries are able to exercise significant influence. Significant influence is the power to participate in the financial and operating policy decisions of an investee but not have control or joint control over those decisions. Significant influence is generally presumed to exist when SLF Inc. or its subsidiaries holds greater than 20% of the voting power of the investee but does not have control or joint control. The equity method is used to account for our interests in joint ventures and associates. A joint operation exists when SLF Inc., or one of its subsidiaries, has joint control of an arrangement that gives it rights to the assets and obligations for the liabilities of the operation, rather than the net assets of the arrangement. For joint operations, we record our share of the assets, liabilities, revenue and expenses of the joint operation. Judgment is required to determine whether contractual arrangements between multiple parties results in control, joint control or significant influence, with consideration of the relevant activities of the entity, voting rights, representation on boards of directors and other decision-making factors. Judgment is also required to determine if a joint arrangement is a joint venture or joint operation, with consideration of our rights and obligations and the structure and legal form of the arrangement. Determination of Fair Value Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value is measured using the assumptions that market participants would use when pricing an asset or liability. We determine fair value by using quoted prices in active markets for identical or similar assets or liabilities. When quoted prices in active markets are not available, fair value is determined using valuation techniques that maximize the use of observable inputs. When observable valuation inputs are not available, significant judgment is required to determine fair value by assessing the valuation techniques and valuation inputs. The use of alternative valuation techniques or valuation inputs may result in a different fair value. A description of the fair value methodologies, assumptions, valuation techniques, and valuation inputs by type of asset is included in Note 5. Foreign Currency Translation Translation of Transactions in Foreign Currencies The financial results of SLF Inc. and its subsidiaries, joint ventures and associates are prepared in the currency in which they conduct their ordinary course of business, which is referred to as functional currency. Transactions occurring in currencies other than the functional currency are translated to the functional currency using the spot exchange rates at the dates of the transactions. Monetary assets and liabilities in foreign currencies are translated to the functional currency at the exchange rate at the statement of financial position date. Non-monetary assets and liabilities in foreign currencies that are held at fair value are translated using the exchange rate at the statement of financial position date, while non-monetary assets and liabilities that are measured at historical cost are translated using the exchange rate at the date of the transaction. The resulting exchange differences from the translation of monetary items and non-monetary items held at fair value, with changes in fair value recorded to income, are recognized in our Consolidated Statements of Operations. For monetary assets classified as available-for-sale ("AFS"), translation differences calculated on amortized cost are recognized in our Consolidated Statements of Operations and other changes in carrying amount are recognized in other comprehensive income ("OCI"). The exchange differences from the translation of non-monetary items classified as AFS are recognized in OCI. Translation to the Presentation Currency In preparing our Consolidated Financial Statements, the financial statements of foreign operations are translated from their respective functional currencies to Canadian dollars, our presentation currency. Assets and liabilities are translated at the closing exchange rate at the statement of financial position date, and income and expenses are translated using the average exchange rates. The accumulated gains or losses arising from translation of functional currencies to the presentation currency, net of the effect of any hedges, are included as a separate component of OCI within equity. Upon disposal of a foreign operation that includes loss of control, significant influence or joint control, the cumulative exchange gain or loss related to that foreign operation is recognized in income. Invested Assets Financial Assets Excluding Derivative Financial Instruments Financial assets include cash, cash equivalents and short-term securities, debt securities, equity securities, mortgages and loans, financial assets included in other invested assets and policy loans. Financial assets are designated as financial assets at fair value through profit or loss ("FVTPL") or AFS assets, or are classified as loans and receivables at initial recognition. The following table summarizes the financial assets included in our Consolidated Statements of Financial Position and the asset classifications applicable to these assets: Cash, cash equivalents and short-term securities FVTPL Debt securities FVTPL and AFS Equity securities FVTPL and AFS Mortgages and loans Loans and receivables Other invested assets FVTPL and AFS Policy loans Loans and receivables Mortgages and loans include mortgages, loans and debt securities not quoted in an active market. Financial assets included in Other invested assets include investments in limited partnerships, segregated funds and mutual funds. Cash equivalents are highly liquid instruments with a term to maturity of three months or less, while short-term securities have a term to maturity exceeding three months but less than one year. Policy loans are fully secured by the policy values on which the loans are made. The accounting for each asset classification is described in the following sections. i) Initial Recognition and Subsequent Measurement Generally, debt securities, equity securities and other invested assets supporting our insurance contract liabilities or investment contract liabilities measured at fair value are designated as FVTPL, while debt securities, equity securities and other invested assets not supporting our insurance contract liabilities or that are supporting investment contract liabilities are measured at amortized cost or designated as AFS. Mortgages and loans and policy loans are classified as loans and receivables. Financial assets are recognized in the Consolidated Statements of Financial Position on their trade dates, which are the dates that we commit to purchase or sell the assets. Originated mortgages and loans are recognized in the Consolidated Statements of Financial Position on their funding dates. Financial Assets at Fair Value Through Profit or Loss Financial assets at FVTPL include financial assets that are held-for-trading ("HFT"), as well as financial assets that have been designated as FVTPL at initial recognition. A financial asset is classified as HFT if it is acquired principally for the purpose of selling in the near term. A financial asset can be designated as FVTPL if it eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise from measuring assets or liabilities or recognizing the gains and losses on them on different bases; or if a group of financial assets, financial liabilities or both, is managed and its performance is evaluated on a fair value basis. Cash equivalents and short-term securities have been classified as HFT. Generally, debt securities, equity securities and other invested assets supporting insurance contract liabilities or investment contract liabilities measured at fair value have been designated as FVTPL. This designation has been made to eliminate or significantly reduce the measurement inconsistency that would arise due to the measurement of the insurance contract or investment contract liabilities, which are based on the carrying value of the assets supporting those liabilities. Because the carrying value of insurance contract liabilities is determined by reference to the assets supporting those liabilities, changes in the insurance contract liabilities generally offset changes in the fair value of debt securities classified as FVTPL, except for changes that are due to impairment. The majority of equity securities and other invested assets classified as FVTPL are held to support products where investment returns are passed through to policyholders and therefore, changes in the fair value of those assets are significantly offset by changes in insurance contract liabilities. Financial assets classified as FVTPL are recorded at fair value in our Consolidated Statements of Financial Position and transaction costs are expensed immediately. Changes in fair value as well as realized gains and losses on sale are recorded in Fair value and foreign currency changes on assets and liabilities in our Consolidated Statements of Operations. Interest income earned and dividends received are recorded in Interest and other investment income in our Consolidated Statements of Operations. Available-for-Sale Financial Assets Financial assets classified as AFS are recorded at fair value in our Consolidated Statements of Financial Position and transaction costs are capitalized on initial recognition. Transaction costs for debt securities are recognized in income using the effective interest method, while transaction costs for equity securities and other invested assets are recognized in income when the asset is derecognized. Changes in fair value are recorded to unrealized gains and losses in OCI. For foreign currency translation, exchange differences calculated on the amortized cost of AFS debt securities are recognized in income and exchange differences calculated on other changes in carrying amount are recognized in OCI. The exchange differences from the translation of AFS equity securities and other invested assets are recognized in OCI. Interest income earned and dividends received are recorded in Interest and other investment income in our Consolidated Statements of Operations. Net impairment losses and realized gains and losses on the sale of assets classified as AFS are reclassified from accumulated OCI to Net gains (losses) on available-for-sale assets in our Consolidated Statements of Operations. Loans and Receivables Loans and receivables are generally carried at amortized cost. Transaction costs for mortgages and loans are capitalized on initial recognition and are recognized in income using the effective interest method. Realized gains and losses on the sale of mortgages and loans, interest income earned, and fee income are recorded in Interest and other investment income in our Consolidated Statements of Operations. Solely Payments of Principal and Interest ("SPPI") Disclosures In September 2016, the IASB issued Amendments to IFRS 4 to allow insurance entities whose predominant activities are to issue contracts within the scope of IFRS 4 Insurance Contracts ("IFRS 4") an optional temporary exemption from applying IFRS 9 Financial Instruments ("IFRS 9") ("deferral approach"). We qualify and have elected to take the deferral approach as our activities are predominantly connected with insurance and we will continue to apply IAS 39 Financial Instruments: Recognition and Measurement ("IAS 39"), the existing financial instrument standard. To enable a comparison to entities applying IFRS 9 we disclose those invested assets that pass the SPPI test, excluding any that are managed and whose performance is evaluated on a fair value basis. Except for Debt securities designated as AFS and Mortgages and loans, our financial assets are managed and their performance is evaluated on a fair value basis. Please refer to Note 5.A.i for the related disclosure as at December 31, 2022 and 2021. Financial assets that pass the SPPI test are assets with contractual terms that give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. ii) Derecognition Financial assets are derecognized when our rights to contractual cash flows expire, when we transfer substantially all our risks and rewards of ownership, or when we no longer retain control. iii) Impairment Financial assets are assessed for impairment on a quarterly basis. Financial assets are impaired and impairment losses are incurred if there is objective evidence of impairment as a result of one or more loss events and that event has an impact on the estimated future cash flows that can be reliably estimated. Objective evidence of impairment generally includes significant financial difficulty of the issuer, including actual or anticipated bankruptcy or defaults and delinquency in payments of interest or principal or disappearance of an active market for that financial asset. Objective evidence of impairment for an investment in an equity instrument or other invested asset also includes, but is not limited to, the financial condition and near-term prospects of the issuer, including information about significant changes with adverse effects that have taken place in the technological, market, economic, or legal environment in which the issuer operates that may indicate that the carrying amount will not be recovered, and a significant or prolonged decline in the fair value of an equity instrument or other invested asset below its cost. Management exercises considerable judgment in assessing for objective evidence of impairment. Due to the inherent risks and uncertainties in our evaluation of assets or groups of assets for objective evidence of impairment, the actual impairment amount and the timing of the recognition of impairment may differ from management assessment. The impairment assessment process is discussed in Note 6. Financial Assets at Fair Value Through Profit or Loss Since financial assets classified as FVTPL are carried at fair value with changes in fair value recorded to income, any reduction in value of the assets due to impairment is already reflected in income. However, the impairment of assets classified as FVTPL generally impacts the change in insurance contract liabilities due to the impact of asset impairment on estimates of future cash flows. Available-for-Sale Financial Assets When there is objective evidence that a financial asset classified as AFS is impaired, the loss in accumulated OCI is reclassified to Net gains (losses) on available-for-sale assets in our Consolidated Statements of Operations. Following impairment loss recognition, a debt security continues to be carried at fair value with changes in fair value recorded in OCI, and it is assessed quarterly for further impairment loss or reversal. Subsequent losses on an impaired equity security or other invested asset, including losses relating to foreign currency changes, are reclassified from OCI to income in subsequent reporting periods until the asset is derecognized. Once an impairment loss on a debt security classified as AFS is recorded to income, any reversal of impairment loss through income occurs only when the recovery in fair value is objectively related to an event occurring after the impairment was recognized. Impairment losses on an equity security or other invested asset classified as AFS are not reversed through income. Loans and Receivables If an impairment loss on an individual mortgage or loan has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate. For collateralized financial assets, the present value of the estimated future cash flows reflects the cash flows that may result from foreclosure less costs to sell, whether or not foreclosure is probable. If no evidence of impairment exists for an individually assessed mortgage or loan, it is included in a group of loans with similar credit risk characteristics and collectively assessed for impairment. When an impairment loss has been incurred, the carrying amount of the asset is reduced through the use of an allowance account, and the amount of the loss is recognized in income. If the impairment loss subsequently decreases and the decrease can be related objectively to an event occurring after the initial impairment charge was recognized, the previous impairment charge is reversed by adjusting the allowance account and the reversal is recognized in income. Interest income is recognized on impaired mortgages and loans using the effective interest rate method and it is based on the estimated future cash flows used to measure the impairment loss. Changes in the allowance account, other than write-offs net of recoveries, are charged against Interest and other investment income in our Consolidated Statements of Operations. Write-offs, net of recoveries, are deducted from the allowance account when there is no realistic prospect of recovery, which is typically not before derecognition of the asset through foreclosure or sale. Collateral Cash received (pledged) as collateral is recognized (derecognized) in our Consolidated Statements of Financial Position with corresponding amounts recognized in Other liabilities (Other assets), respectively. All other types of assets received (pledged) as collateral are not recognized (derecognized) in our Consolidated Statements of Financial Position. Derivative Financial Instruments All derivative financial instruments are recorded at fair value in our Consolidated Statements of Financial Position. Derivatives with a positive fair value are recorded as Derivative assets while derivatives with a negative fair value are recorded as Derivative liabilities. The accounting for the changes in fair value of a derivative instrument depends on whether or not it is designated as a hedging instrument for hedge accounting purposes. Changes in (i) fair value of derivatives that are not designated for hedge accounting purposes, which are defined as derivative investments, and (ii) embedded derivatives that are bifurcated, are recorded in Fair value and foreign currency changes on assets and liabilities in our Consolidated Statements of Operations. Income earned or paid on these derivatives is recorded in Interest and other investment income in our Consolidated Statements of Operations. Hedge accounting is applied to certain derivatives to reduce income statement volatility. When certain qualification criteria are met, hedge accounting recognizes the offsetting effects of hedging instruments and hedged items in income or defers the effective portion of changes in fair value of hedging instruments in OCI until there is a recognition event, such as the occurrence of a forecasted transaction or the disposal of an investment in a foreign operation, or hedge accounting is discontinued. All hedging relationships are documented at inception and hedge effectiveness is assessed at inception and on a quarterly basis to determine whether the hedging instruments are highly effective in offsetting changes attributable to the hedged risk in the fair value or cash flows of the hedged items. Fair Value Hedges Certain interest rate swaps and foreign currency forwards are designated as hedging instruments in fair value hedges of the interest rate or foreign exchange rate risks associated with AFS assets. Changes in fair value of the derivatives are recorded in Interest and other investment income in our Consolidated Statements of Operations. The change in fair value of the AFS assets related to the hedged risk is reclassified from OCI to income. As a result, ineffectiveness, if any, is recognized in income to the extent that changes in fair value of the derivatives and AFS assets do not offset. Interest income earned and paid on the AFS assets and swaps in the fair value hedging relationships are recorded in Interest and other investment income in our Consolidated Statements of Operations. Cash Flow Hedges Certain equity and foreign currency forwards are designated as hedging instruments in cash flow hedges for anticipated payments of awards under certain share-based payment plans and for anticipated foreign currency purchases of foreign operations. Changes in the fair value of derivatives for the effective portion of the hedge are recognized in OCI, while the ineffective portion of the hedge and any items excluded from the hedging relationship, such as the spot-to-forward differential, are recognized in Interest and other investment income in our Consolidated Statements of Operations. A portion of the amount recognized in OCI related to the equity forwards is reclassified to income as a component of Operating expenses as the liabilities for the share-based payment awards are accrued over the vesting period. A portion of the amounts recognized in OCI related to the foreign currency forwards would be reclassified to income upon disposal or impairment of the foreign operations. All amounts recognized in, or reclassified from, OCI are net of related taxes. Embedded Derivatives An embedded derivative is a component of a host contract that modifies the cash flows of the host contract in a manner similar to a derivative, according to a specified interest rate, financial instrument price, foreign exchange rate, underlying index or other variable. We are required to separate embedded derivatives from the host contract, if an embedded derivative has economic and risk characteristics that are not closely related to the host contract, meets the definition of a derivative, and the combined contract is not measured at fair value with changes recognized in income. If an embedded derivative is bifurcated for accounting purposes from the host contract, it will be accounted for as a derivative. For further details on embedded derivatives in insurance contracts, see the Insurance Contract Liabilities accounting policy in this Note. Obligations for Securities Borrowing The obligation for the securities borrowing represents our commitment to deliver securities under short sale program. Under the program, we short sell the securities that we borrowed from a third party. The obligation to return the securities is not recognized in the Consolidated Statements of Financial Position, until they are sold, and the risks and rewards of the ownership have been transferred to us. Upon recognition, they are classified as HFT. The securities borrowings are returnable to the lender upon demand or at our discretion. Investment Properties Investment properties are real estate held to earn rental income, for capital appreciation, or both. Properties held to earn rental income or for capital appreciation that have an insignificant portion that is owner-occupied are classified as investment properties. Properties that do not meet these criteria are classified as property and equipment, included in Other assets as described below. Expenditures related to ongoing maintenance of properties incurred subsequent to acquisition are expensed. Investment properties are initially recognized at cost in our Consolidated Statements of Financial Position. Various costs incurred associated with the acquisition of an investment property are either capitalized or expensed depending on whether or not the acquisition is considered a business combination. Investment properties are subsequently measured at fair value with changes in value recorded to Fair value and foreign currency changes on assets and liabilities in our Consolidated Statements of Operation |
Changes in Accounting Policies
Changes in Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of changes in accounting policies, accounting estimates and errors [Abstract] | |
Changes in Accounting Policies | 2. Changes in Accounting Policies 2.A New and Amended International Financial Reporting Standards Adopted in 2022 We adopted the following amendments on January 1, 2022: In May 2020, the IASB issued Reference to the Conceptual Framework , which includes amendments to IFRS 3 Business Combinations . The amendments update an outdated reference to the Conceptual Framework in IFRS 3 without significantly changing the requirements in the standard. The adoption of this amendment did not have a material impact on our Consolidated Financial Statements. In May 2020, the IASB issued Property, Plant and Equipment - Proceeds before Intended Use , which includes amendments to IAS 16 Property, Plant and Equipment . The amendments prohibit deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. The amendments apply retrospectively to assets ready for use in the comparative period. The adoption of this amendment did not have a material impact on our Consolidated Financial Statements. In May 2020, the IASB issued Onerous Contracts - Cost of Fulfilling a Contract , which includes amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets . The amendments specify that the 'cost of fulfilling' a contract comprises the 'costs that relate directly to the contract'. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract or an allocation of other costs that relate directly to fulfilling contracts. The adoption of this amendment did not have a material impact on our Consolidated Financial Statements. In May 2020, the IASB issued Annual Improvements to IFRS Standards 2018-2020 , which includes minor amendments to three IFRS standards applicable to our Consolidated Financial Statements. These amendments apply prospectively. The adoption of these amendments did not have a material impact on our Consolidated Financial Statements. Interest Rate Benchmark Reform - Phase 2 amendments In August 2020, the IASB issued the Interest Rate Benchmark Reform Phase 2, which includes amendments to IFRS 9, IAS 39, IFRS 7 Financial Instruments: Disclosures ("IFRS 7"), IFRS 4, and IFRS 16 Leases ("IFRS 16"). These amendments address issues that arise from the implementation of the reforms, including the replacement of a benchmark with an alternative one. The adoption of these amendments did not have a material impact on our Consolidated Financial Statements Effective December 31, 2021, the publication of London Inter-Bank Offered Rate ("LIBOR") settings has ceased for all sterling, Japanese yen, Swiss franc, and euro settings as well as for the one-week and two-month USD LIBOR settings. The remaining USD LIBOR settings will cease to be provided or lose their representativeness immediately after June 30, 2023. On May 16, 2022, Refinitiv Benchmark Services (UK) Limited ("RBSL"), the administrator of the Canadian Dollar Offered Rate ("CDOR"), announced that it will permanently cease the publication and calculation of all tenors of CDOR after June 28, 2024. Concurrently, OSFI published their expectation that Federally Regulated Financial Institutions ("FRFI’s") transition all new derivatives and securities to an alternative benchmark rate by June 30, 2023, with no new CDOR exposure after that date, with limited exceptions for risk management requirements. OSFI also expects loans referencing CDOR to transition by June 28, 2024. FRFI’s are also expected to prioritize system and model updates to accommodate the use of the Canadian Overnight Repo Rate Average prior to June 28, 2024. We have created an Interbank Offered Rate ("IBOR") Transition Program (the "Program") to manage the transition from IBOR benchmarks (such as LIBOR and CDOR) to Alternative Reference Rates ("ARRs"). The Program is cross-functional in nature and comprises key stakeholders across our organization and operates with executive oversight. The Program is on track in executing its transition plan, and is mindful of incorporating market developments as they arise. We also actively participate in industry associations and incorporate best practice guidance from these industry associations, as well as regulatory bodies into the transition plan, such as reviewing all existing and new LIBOR contracts for appropriate fallback language. The Program addresses the risk and uncertainty relating to the transition to ARRs, the use of fallback language, and other factors relating to reform that could otherwise adversely affect our operations and cash flows and the value of and return on our investments that are LIBOR or IBOR-based. Our affiliated entities with IBOR exposure related to derivatives have adhered to the International Swaps and Derivatives Association IBOR Fallbacks Protocol facilitating the transition of legacy derivative contracts to ARRs, and all of our GBP LIBOR exposure has been transitioned to Sterling Overnight Index Average. As at December 31, 2022, our exposure to USD LIBOR consists of non-derivative financial assets of $2,750 (December 31, 2021 — $3,849), non-derivative financial liabilities of $77 (December 31, 2021 — $70), and derivative notional of $1,683 (December 31, 2021 — $9,417) that have not yet transitioned to an ARR, excluding financial instruments maturing by June 30, 2023. Our exposure to CDOR consists of non-derivative assets of $396 (June 30, 2022 — $387), non-derivative financial liabilities of $5,892 (June 30, 2022 — $6,286), and derivative notional of $11,725 (June 30, 2022 — $10,748) that have not yet transitioned to an ARR, excluding financial instruments maturing by June 28, 2024. 2.B New and Amended International Financial Reporting Standards to be Adopted in 2023 The following new and amended IFRS were issued by the IASB. We expect to adopt these in 2023: IFRS 17 and IFRS 9 In May 2017, the IASB issued IFRS 17 Insurance Contracts ("IFRS 17"). This standard is to be applied using a retrospective approach, with at least one year of comparative results provided. If retrospective application to a group of insurance contracts is impracticable, a modified retrospective or fair value approach may be used. We have elected to use a fair value approach in instances where retrospective application is impracticable. IFRS 17 replaces IFRS 4 and impacts how we recognize, measure, present, and disclose our insurance contracts in our Consolidated Financial Statements. In July 2014, the IASB issued the final version of IFRS 9 which replaces IAS 39. IFRS 9 includes guidance on the classification and measurement of financial instruments, impairment of financial assets and hedge accounting, and does not require restatement of comparative periods. In June 2020, an amendment was issued to defer the effective date of IFRS 17 to annual periods beginning on or after January 1, 2023. Eligible insurers were also permitted the option of deferring the adoption of IFRS 9 to coincide with the adoption of IFRS 17. We have elected to apply this deferral option, and the effective date of both IFRS 17 and IFRS 9 will be January 1, 2023. In December 2021, the IASB issued an amendment to IFRS 17 to allow for a transition option that permits insurers to present comparative information on financial assets as if IFRS 9 were applicable during the comparative period ("classification overlay"). We have elected to apply the classification overlay to our financial assets and their comparative period results as if IFRS 9 had been effective since January 1, 2022. IFRS 17 establishes principles for the recognition, measurement, presentation, and disclosure of insurance contracts. The key principles of IFRS 17 are as follows: • Insurance contracts are those under which an entity accepts significant insurance risk from another party (the policyholder) by agreeing to compensate the policyholder if a specified uncertain future event (the insured event) adversely affects the policyholder. • Insurance contracts issued and reinsurance contracts held are divided into groups that will be separately recognized and measured. • Groups of insurance contracts are recognized and measured as the total of the following measurement components: a) the present value of future cash flows; b) a risk adjustment for non-financial risk; and c) the contractual service margin ("CSM"), an amount that represents the unearned profit of the group of contracts. These measurement components apply to groups of insurance contracts measured using the general measurement approach ("GMA") and the variable fee approach ("VFA"). The VFA applies to insurance contracts issued with direct participation features, which are substantially investment-related service contracts under which the policyholder is promised an investment return based on underlying items, such as segregated funds and certain participating insurance contracts. For short duration contracts, such as most of our group life and health business, a simplified measurement approach (the premium allocation approach or "PAA") is applied. Under the PAA, insurance contracts are measured based on unearned profits and do not include a CSM. • The profit from a group of insurance contracts is recognized into income over the period that insurance contract services are provided and as our risks related to servicing the contracts diminish over time. • Insurance revenue, insurance services expenses and insurance finance income or expenses are presented separately. • Disclosures are intended to enhance transparency and comparability of results. The measurement of insurance contracts under IFRS 17 differs from the Canadian Asset Liability Method currently applied under IFRS 4. The most significant differences by measurement component are as follows: Present value of future cash flows: • The discount rates used to present value future cash flows under IFRS 17 are based on the characteristics of the insurance contracts. Under IFRS 4, discount rates are based on the portfolio of assets supporting the insurance contract liabilities. • Estimates under IFRS 17 include the prevailing market view of the cost of financial guarantees, which requires a valuation consistent with market option prices. Under IFRS 4, the cost of financial guarantees is based on the amount required to fulfill the obligation. • Expense cash flows under IFRS 17 are limited to those directly attributable to fulfillment of the obligations under insurance contracts. • Future income taxes are excluded from future cash flows under IFRS 17. Risk adjustment: • Measures the compensation required for uncertainty related to non-financial risk, such as mortality, morbidity, surrender and expenses under IFRS 17. • Provisions for uncertainty related to financial risk are included in the present value of future cash flows under IFRS 17. • No amount is provided for asset-liability mismatch risk under IFRS 17. • Under IFRS 4, amounts provided for the risks listed above are reflected in a provision for adverse deviations included in insurance contract liabilities. Contractual service margin: • This is a new component of liabilities and necessitates the "grouping" of insurance contracts, which is not required under IFRS 4. • The CSM represents unearned profits, which is discussed in more detail below. The measurement approach under IFRS 17 and IFRS 4 is similar for insurance contracts measured using the PAA, such as our group life and health contracts. Differences arise mainly in the measurement of the Liability for Incurred Claims, where the discount rate and risk adjustment changes noted above apply. We have highlighted in the following section certain impacts on our financial performance as a result of the differences between IFRS 17 and IFRS 4 described above: • New business gains (unearned profits) are measured differently under IFRS 17, reflecting measurement differences on insurance contracts as discussed above. In addition, new business gains under IFRS 17 are deferred and recorded in the CSM and amortized into income as insurance contract services are provided. Losses on new business are also measured differently, but continue to be recognized in income immediately. Under IFRS 4, new business gains and losses are both recognized in income immediately. • Discount rates used in calculating the present value of insurance contract liabilities are based on the characteristics of the insurance contracts rather than the assets supporting the liabilities. Amongst other differences, this results in changes in the timing of when investment-related income emerges. • Under IFRS 17, changes related to financial risk (e.g. changes in the discount rate) continue to be recognized in income immediately, except for insurance contracts measured using the VFA, where the changes are recorded through the CSM. Assumption changes for non-financial risk, such as mortality, are reflected in the CSM and amortized into income as insurance contract services are provided. Under IFRS 4, assumption changes for both financial and non-financial risk variables are recognized in income immediately. IFRS 9 includes guidance on the classification and measurement of financial instruments, impairment of financial assets, and hedge accounting. The classification of financial assets is based on the cash flow characteristics and the business model within which an asset is managed, and determines how the financial asset is measured. The classification and measurement of financial liabilities remain generally unchanged from IAS 39. IFRS 9 also introduces an impairment model for financial assets not measured at FVTPL. The model requires the recognition of an allowance for 12-month expected losses at the initial recognition of a financial asset, and the recognition of an allowance for lifetime expected losses if certain criteria are met. In addition, IFRS 9 introduces a new model for hedge accounting to better align with risk management activities. Under IFRS 17, we are electing to recognize all insurance finance income or expense in income rather than other comprehensive income. Consequently, to avoid an accounting mismatch, we are electing under IFRS 9 to classify most of our fixed income assets supporting insurance contracts as FVTPL. The adoption of IFRS 17 and IFRS 9 is expected to have a significant impact on our Consolidated Financial Statements, and estimates of the financial impacts are subject to change as we continue to finalize the implications of adopting both standards. The establishment of the CSM and other measurement changes upon transition at January 1, 2022, including the impacts of reflecting IFRS 9 as at the same date, would reduce total equity. Key financial items on our Consolidated Statement of Financial position are expected to be impacted as follows: As at January 1, 2022 IFRS 9 Adjustments (1) IFRS 17 Adjustments Other (2) As at January 1, 2022 subsequent to transition Invested assets $ 181,261 $ 4,007 $ — $ — $ 185,268 Policy loans (3) 3,261 — (3,261) — — Reinsurance contract held assets and Insurance contract assets (4) 3,683 — 4,803 — 8,486 Other assets (3) 157,165 — (1,157) 1,180 157,188 Total Assets $ 345,370 $ 4,007 $ 385 $ 1,180 $ 350,942 Insurance contract liabilities and Reinsurance contract held liabilities (5) 147,811 — 5,301 — 153,112 Investment contract liabilities (6) 3,368 — 6,546 — 9,914 Other liabilities (3) 166,118 — (412) — 165,706 Total liabilities $ 317,297 $ — $ 11,435 $ — $ 328,732 Total equity (7) $ 28,073 $ 4,007 $ (11,050) $ 1,180 $ 22,210 Total liabilities and equity $ 345,370 $ 4,007 $ 385 $ 1,180 $ 350,942 (1) Primarily due to measurement impacts from IFRS 9 classification changes on Mortgages and loans. (2) Due to tax impacts from IFRS 17 and IFRS 9 adoption. (3) Certain balances, such as Policy loans and amounts related to premiums, that were previously presented separately or included in Other assets and Other liabilities, are included in the assets or liabilities for Insurance contracts issued or Reinsurance contracts held balances under IFRS 17. (4) Increase primarily due to IFRS 17 remeasurement impacts and a requirement to present Insurance contract assets and Reinsurance contract held liabilities separately from Insurance contract liabilities and Reinsurance contract held assets. (5) Increase in Insurance contract liabilities and Reinsurance contract held liabilities balances is primarily due to IFRS 17 remeasurement impacts, partially offset by IFRS 17 reclassification impacts. Remeasurement impacts are primarily due to the establishment of CSM of approximately $10 billion, the impact of discount rate changes under IFRS 17, and the release of certain reserves held under IFRS 4. Reclassification impacts are primarily offset in Policy loans and Investment contract liabilities. (6) Certain contracts previously included in Insurance contract liabilities under IFRS 4 are reclassified to Investment contract liabilities under IFRS 17. (7) Consists of a $4.5 billion reduction to Shareholders' equity and a $1.4 billion reduction to Equity in participating account. IAS 12 In May 2021, the IASB issued amendments to IAS 12 Income Taxes ("IAS 12"). The amendments, Deferred Tax related to Assets and Liabilities arising from a Single Transaction, narrow the scope of the recognition exemption in IAS 12 so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The amendment to IAS 12 will be effective for annual reporting periods beginning on or after January 1, 2023, with early application permitted. We do not expect the adoption of these amendments to have a material impact on our Consolidated Financial Statements. IAS 1 In February 2021, the IASB issued amendments to IAS 1 Presentation of Financial Statements ("IAS 1") and IFRS Practice Statement 2 Making Materiality Judgments ("IFRS Practice Statement 2"). The amendments to IAS 1 require companies to disclose their material accounting policy information rather than their significant accounting policies. The amendments to IFRS Practice Statement 2 provide guidance on how to apply the concept of materiality to accounting policy disclosures. The amendment to IAS 1 will be effective for annual reporting periods beginning on or after January 1, 2023, with early application permitted. We do not expect the adoption of these amendments to have a material impact on our Consolidated Financial Statements. IAS 8 In February 2021, the IASB issued amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Error s ("IAS 8"). The amendments clarify how companies should distinguish changes in accounting policies from changes in accounting estimates. The amendment to IAS 8 will be effective for annual reporting periods beginning on or after January 1, 2023, with early application permitted. We do not expect the adoption of these amendments to have a material impact on our Consolidated Financial Statements. 2.C New and Amended International Financial Reporting Standards to be Adopted in 2024 or Later We are currently assessing the impact of the following amendments on our Consolidated Financial Statements: In September 2022, the IASB issued amendments to IFRS 16 Leases ("IFRS 16") to add subsequent measurement requirements for sale and leaseback transactions that satisfy the requirements in IFRS 15 Revenue from Contracts with Customers |
Acquisitions and Other
Acquisitions and Other | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about business combination [abstract] | |
Acquisitions and Other | 3. Acquisitions and Other SLF of Canada UK Limited Disposition On August 4, 2022, we entered into an agreement to sell SLF of Canada UK Limited ("Sun Life UK") for approximately $385 (£248). Sun Life UK manages life and pension policies as well as payout annuities blocks for UK Clients. Sun Life UK is closed to new sales and has operated as a run-off business since 2001. Under the agreement, we will retain our economic interest in the payout annuities business through a reinsurance treaty. As of December 31, 2022, the net carrying value of assets and liabilities classified as held for sale is $403, which is in accordance with applicable measurement requirements. This year, we recognized an impairment charge of $170 pertaining to the goodwill that is not expected to be recovered through the sale. The charge is recorded in Operating expenses, commissions and premium taxes. Any further gains or losses from the disposal, including closing price adjustments, cumulative currency differences and tax adjustments, will be recognized upon the close of the sale. The disposal will be included within our Corporate business segment. The transaction is expected to close in the first half of 2023, subject to regulatory approvals and customary closing conditions. Advisors Asset Management Inc. On September 1, 2022, we entered into an agreement with Advisors Asset Management Inc. ("AAM"), a leading independent U.S. retail distribution firm, to acquire a 51% interest, on a fully diluted basis, for cash consideration of approximately $280 (US$214) with an option to acquire the remaining interest starting in 2028. AAM will become the U.S. retail distribution arm for SLC Management, which is a part of our Asset Management business segment. The transaction is expected to close during the first half of 2023, subject to regulatory approvals and customary closing conditions. DentaQuest On June 1, 2022, we acquired DentaQuest, the second-largest provider of dental benefits in the United States by membership, for approximately $3,267 (US$2,584). Total consideration for the 100% acquisition of DentaQuest was paid with cash of $3,267, and primarily comprised of goodwill and intangibles, including contractual relationships, software, and brand. DentaQuest is reported in the Dental CGU of our U.S. business segment. The acquisition of DentaQuest aligns to our business strategy of being a leader in health and group benefits, with an increasing focus on health. The fair values of the identifiable assets and liabilities acquired were: As at June 1, 2022 Intangible assets $ 1,208 Net assets 255 Deferred tax liabilities $ (226) Total identifiable net assets at fair value 1,237 Goodwill arising on acquisition (1) 2,030 Total consideration $ 3,267 (1) Goodwill primarily reflects expected synergies from the combination of DentaQuest and our existing Dental and Vision business within the U.S. Group Benefits business, as well as the future growth potential of the DentaQuest business. Goodwill is not tax deductible. The fair values of the identifiable assets and liabilities are subject to refinement and may be retroactively adjusted to reflect new information obtained about facts and circumstances that existed at the acquisition date during the measurement period. Pinnacle Care International, Inc. On July 1, 2021, we completed the acquisition of Pinnacle Care International, Inc. ("PinnacleCare"). Total consideration for the 100% acquisition of PinnacleCare was cash of $110, which mainly comprises of goodwill and intangibles. Goodwill of $45, recognized as a part of the acquisition, represents the value of synergies from the integration of PinnacleCare into the U.S. Group Benefits business. Intangible assets of $64, recognized as a part of the acquisition, represent the value of customer relationships acquired with the business. PinnacleCare is a U.S. health-care navigation and medical intelligence service which expands our medical stop-loss business. The acquisition now forms part of our U.S. Group Benefits business. This acquisition will expand our medical stop-loss business by improving the care experience, costs and outcomes for both the employee and employer. Crescent Capital Group LP On January 5, 2021, we purchased 51% of Crescent Capital Group LP ("Crescent"), a U.S.-based global alternative credit investment manager, as well as the ability to acquire the remaining interest in the future. Crescent is reported in the SLC Management business unit within our Asset Management business segment. Consideration included $308 in cash and $6 of contingent consideration to the former owners of Crescent. The acquisition will extend SLC Management's solutions in alternative credit. The fair values of the identifiable assets and liabilities acquired were: As at January 5, 2021 Intangible assets $ 341 Net liabilities (119) Total identifiable net assets at fair value 222 Non-controlling interest (1) (317) Goodwill arising on acquisition 409 Total consideration $ 314 (1) We have elected to measure NCI at fair value for this acquisition. The fair value was determined by calculating the proportionate share of the present value of future cash flows relating to NCI. Significant assumptions inherent in the valuation of NCI include the estimated after-tax cash flows expected to be received and an assessment of the appropriate discount rate. Crescent minority shareholders also have the option to require us to purchase their shares ("put option") in 2026. We have a call option to acquire the remaining outstanding shares held by these minority shareholders commencing in 2026. The fair value of the put option liability was recognized in Other financial liabilities and any excess over the carrying amounts arising from transactions relating to non-controlling shareholders was recorded as a reduction to Retained earnings. Any changes to the carrying value of the financial liability after the acquisition date will be recognized in the Consolidated Statements of Operations. The agreement also includes a contingent payment based on the achievement of certain milestones. At the date of acquisition, the impact to our assets, liabilities and equity is as follows: As at January 5, 2021 Share purchase Put option adjustments Total Cash consideration $ (308) $ — $ (308) Intangible assets 341 — 341 Goodwill (1) 409 — 409 Total assets $ 442 $ — $ 442 Net liabilities $ (119) $ — $ (119) Other financial liabilities – Contingent consideration (6) — (6) Other financial liabilities – Put option — (441) (441) Total liabilities $ (125) $ (441) $ (566) Non-controlling interest (2) $ (317) $ 302 $ (15) Retained earnings — 139 139 Total equity $ (317) $ 441 $ 124 (1) Goodwill of $409 reflects non-contractual customer relationships and is tax deductible. (2) The remaining $15 represents specifically identifiable assets where the risks and rewards accrue to the minority shareholders of Crescent Capital Group, and the related NCI interests are not a party to the put option. Acquisitions and Other On April 5, 2022, we announced a deepening of our existing bancassurance partnership with PT Bank CIMB Niaga Tbk ("CIMB Niaga") in Indonesia. Under the new agreement, which will be effective in January 2025, we will be the provider of insurance solutions to CIMB Niaga customers across all distribution channels for a term of 15 years, further accelerating our long-term strategy of growing our distribution capacity in the region. The agreement also extends our existing relationship with CIMB Niaga by a term of six years up to 2039. An initial payment of $508 was made on June 30, 2022. $18 of the initial payment related to the existing bancassurance partnership was capitalized as an intangible asset. The remaining $490 will initially be recognized as a prepayment and capitalized as an intangible asset once the agreement becomes effective in 2025. Amortization of this intangible asset will begin in 2025. On December 13, 2021, we announced that Canadian Premier Life Insurance Company ("Canadian Premier") has entered into an agreement to acquire our sponsored markets business. Sponsored markets include a variety of association & affinity, and group creditor clients. The transaction is expected to close in early 2023, subject to satisfaction of customary closing conditions, including receipt of regulatory approvals. On February 1, 2021, the second stage of our acquisition of the pension business of FWD Life Insurance Company (Bermuda) Limited ("FWD") was completed for net proceeds of $17. Included in the acquisition were $480 in Invested assets and $480 of Investment contract liabilities. Effective January 1, 2021 we entered into a 15-year exclusive bancassurance partnership with Asia Commercial Joint Stock Bank ("ACB"). The partnership significantly expands our distribution capabilities in Asia. An initial payment of $471 was made in January 2021, based on the contractual terms of the agreement. The initial payment was capitalized as an intangible asset and will be amortized over the life of the contract based on a units-of-production method. |
Segmented Information
Segmented Information | 12 Months Ended |
Dec. 31, 2022 | |
Operating Segments [Abstract] | |
Segmented Information | 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. Asset Management includes the results of our MFS and SLC Management business units. 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. SLC Management collects fee income and incurs 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. For the years ended Canada U.S. Asset Management Asia Corporate Consolidation adjustments Total December 31, 2022 Gross premiums: Annuities $ 3,909 $ 1 $ — $ 26 $ 9 $ — $ 3,945 Life insurance 6,308 1,515 — 3,512 60 — 11,395 Health insurance 6,493 7,298 — 25 4 — 13,820 Total gross premiums 16,710 8,814 — 3,563 73 — 29,160 Less: Ceded premiums 1,589 505 — 189 14 — 2,297 Net investment income (loss) (4,864) (2,306) 28 (3,242) (1,113) (90) (11,587) Fee income 1,610 297 5,729 620 106 (316) 8,046 Total revenue 11,867 6,300 5,757 752 (948) (406) 23,322 Less: Total benefits and expenses 10,344 5,571 4,215 218 (543) (406) 19,399 Income tax expense (benefit) 363 143 345 63 (293) — 621 Total net income (loss) $ 1,160 $ 586 $ 1,197 $ 471 $ (112) $ — $ 3,302 Less: Net income (loss) attributable to participating policyholders 160 — — (44) — — 116 Net income (loss) attributable to non-controlling interests — — 56 — — — 56 Shareholders’ net income (loss) $ 1,000 $ 586 $ 1,141 $ 515 $ (112) $ — $ 3,130 December 31, 2021 Gross premiums: Annuities $ 3,874 $ — $ — $ 29 $ 14 $ — $ 3,917 Life insurance 5,848 1,452 — 3,542 83 — 10,925 Health insurance 5,989 4,624 — 24 27 — 10,664 Total gross premiums 15,711 6,076 — 3,595 124 — 25,506 Less: Ceded premiums 1,533 705 — 201 14 — 2,453 Net investment income (loss) 3,069 546 20 1,060 37 (99) 4,633 Fee income 1,611 81 5,835 642 111 (278) 8,002 Total revenue 18,858 5,998 5,855 5,096 258 (377) 35,688 Less: Total benefits and expenses 16,651 5,375 4,591 3,838 513 (377) 30,591 Income tax expense (benefit) 384 124 372 113 (266) — 727 Total net income (loss) $ 1,823 $ 499 $ 892 $ 1,145 $ 11 $ — $ 4,370 Less: Net income (loss) attributable to participating policyholders 265 — — 70 — — 335 Shareholders’ net income (loss) $ 1,558 $ 499 $ 892 $ 1,075 $ 11 $ — $ 4,035 Assets and liabilities by segment are as follows: Canada U.S. Asset Asia Corporate Consolidation Total As at December 31, 2022 Total general fund assets $ 110,888 $ 37,282 $ 11,702 $ 37,072 $ 9,044 $ (374) $ 205,614 Investments for account of segregated fund holders $ 109,058 $ 421 $ — $ 7,111 $ 8,702 $ — $ 125,292 Total general fund liabilities $ 100,396 $ 30,190 $ 9,474 $ 29,662 $ 6,889 $ (374) $ 176,237 As at December 31, 2021 Total general fund assets $ 110,499 $ 33,391 $ 10,024 $ 37,661 $ 14,187 $ (388) $ 205,374 Investments for account of segregated fund holders $ 121,146 $ 519 $ — $ 7,609 $ 10,722 $ — $ 139,996 Total general fund liabilities $ 100,838 $ 29,553 $ 8,010 $ 30,884 $ 8,404 $ (388) $ 177,301 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, 2022 2021 2022 2021 Revenue: United States $ 5,173 $ 5,299 $ 61 $ 112 United Kingdom 288 289 (1,014) 74 Canada 251 233 9 75 Other countries 45 34 (4) (3) Total revenue $ 5,757 $ 5,855 $ (948) $ 258 The following table shows total assets by country for Asset Management and Corporate: Asset Management Corporate As at December 31, 2022 2021 2022 2021 Total general fund assets: United States $ 9,933 $ 8,203 $ 1,536 $ 2,570 United Kingdom 940 1,064 4,827 6,892 Canada 581 582 2,500 4,533 Other countries 248 175 181 192 Total general fund assets $ 11,702 $ 10,024 $ 9,044 $ 14,187 Investment for account of segregated fund holders: United Kingdom $ — $ — $ 8,702 $ 10,722 Total investment for account of segregated fund holders $ — $ — $ 8,702 $ 10,722 |
Total Invested Assets and Relat
Total Invested Assets and Related Net Investment Income | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Measurement [Abstract] | |
Total Invested Assets and Related Net Investment Income | 5. Total Invested Assets and Related Net Investment Income 5.A Fair Value of Invested Assets 5.A.i Carrying Value and Fair Value of Financial Assets and Other Financial Liabilities The carrying values and fair values of our financial assets are shown in the following table: As at December 31, 2022 December 31, 2021 Carrying Fair Carrying Fair Assets Cash, cash equivalents and short-term securities $ 11,219 $ 11,219 $ 12,278 $ 12,278 Debt securities - fair value through profit or loss 62,757 62,757 75,998 75,998 Debt securities - available-for-sale (1) 13,145 13,145 12,729 12,729 Equity securities - fair value through profit or loss 6,824 6,824 7,538 7,538 Equity securities - available-for-sale 324 324 1,575 1,575 Mortgages and loans (1) 56,261 51,850 51,692 55,756 Derivative assets 2,095 2,095 1,583 1,583 Other invested assets - fair value through profit or loss (2) 5,542 5,542 4,435 4,435 Other invested assets - available-for-sale (2) 996 996 781 781 Other invested assets - Collateralized Loan Obligations 3,044 2,880 1,865 1,855 Policy loans 3,350 3,350 3,261 3,261 Total financial assets (3) $ 165,557 $ 160,982 $ 173,735 $ 177,789 (1) As at December 31, 2022, the fair value of invested assets that have contractual cash flows that qualify as SPPI include $12,829 of Debt securities - AFS (December 31, 2021 — $12,604), $48,614 of Mortgages and loans supporting insurance contract liabilities (December 31, 2021 — $51,249), and $3,229 of Mortgages and loans not supporting insurance contract liabilities (December 31, 2021 — $4,499). (2) Other invested assets (FVTPL and AFS) include our investments in segregated funds, mutual funds and limited partnerships. (3) Invested assets on our Consolidated Statements of Financial Position of $177,292 (December 31, 2021 — $184,522) includes Total financial assets in this table, Investment properties of $10,102 (December 31, 2021 — $9,109), Other invested assets - non-financial assets of $1,633 (December 31, 2021 — $1,678). Our mortgages and loans are carried at amortized cost. The fair value of mortgages and loans, for disclosure purposes, is determined based on the methodology and assumptions described in Note 5.A.ii. As at December 31, 2022, $44,681 and $7,169 are categorized in Level 2 and Level 3, respectively, of the fair value hierarchy described in this Note (December 31, 2021 — $43,488 and $12,268, respectively). Financial Liabilities Other financial liabilities are carried at amortized cost. The fair value of Other financial liabilities, for disclosure purposes, is determined based on the methodology and assumptions described in Note 5.A.ii. As at December 31, 2022, carrying value of $1,996 and fair value of $1,890 are categorized in Level 3 of the fair value hierarchy described in this Note (December 31, 2021 — $1,810 and $1,865, respectively). Derivative liabilities with a fair value of $2,351 (December 31, 2021 — $1,392) are also included on the Consolidated Statements of Financial Position. Obligations for securities borrowing are carried at a fair value of $73 (December 31, 2021 — $51). Policy loans are carried at their unpaid principal balances. The fair value of policy loans, for disclosure purposes, is approximated by their carrying value, as policy loans are fully secured by policy values on which the loans are made and are categorized in Level 2 of the fair value hierarchy. Collateralized Loan Obligations Crescent, a subsidiary within our Asset Management business segment, issues and manages Collateralized Loan Obligations ("CLO"). Each CLO is a special purpose vehicle that owns a portfolio of investments, consisting primarily of senior secured loans, and issues various tranches of senior and subordinated notes to third parties for the purpose of financing the purchase of those investments. Assets of the special purpose vehicle are included in Other invested assets and the associated liabilities are included in Other liabilities. See Note 12 for the associated liabilities for the CLO. As at December 31, 2022, the carrying value of the assets supporting the CLOs are $3,044 (December 31, 2021 — $1,865), which consists of cash and accounts receivable of $292 (December 31, 2021 — $319) and loans of $2,752 (December 31, 2021 — $1,546). Loans are measured at amortized cost. These underlying loans are mainly below investment grade. Our maximum contractual exposure to loss related to the CLOs is limited to our investment of $159 (December 31, 2021 — $104) in the most subordinated tranche. The interest expense related to the CLOs was $71 for December 31, 2022 (December 31, 2021 — $11). 5.A.ii Fair Value Methodologies and Assumptions The fair value of government and corporate debt securities is determined using quoted prices in active markets for identical or similar securities. When quoted prices in active markets are not available, fair value is determined using market standard valuation methodologies, which include discounted cash flow analysis, consensus pricing from various broker dealers that are typically the market makers, or other similar techniques. The assumptions and valuation inputs in applying these market standard valuation methodologies are determined primarily using observable market inputs, which include, but are not limited to, benchmark yields, reported trades of identical or similar instruments, broker-dealer quotes, issuer spreads, bid prices, and reference data including market research publications. In limited circumstances, non-binding broker quotes are used. The fair value of asset-backed securities is determined using quoted prices in active markets for identical or similar securities, when available, or valuation methodologies and valuation inputs similar to those used for government and corporate debt securities. Additional valuation inputs include structural characteristics of the securities, and the underlying collateral performance, such as prepayment speeds and delinquencies. Expected prepayment speeds are based primarily on those previously experienced in the market at projected future interest rate levels. In instances where there is a lack of sufficient observable market data to value the securities, non-binding broker quotes are used. The fair value of equity securities is determined using quoted prices in active markets for identical securities or similar securities. When quoted prices in active markets are not available, fair value is determined using equity valuation models, which include discounted cash flow analysis and other techniques that involve benchmark comparison. Valuation inputs primarily include projected future operating cash flows and earnings, dividends, market discount rates, and earnings multiples of comparable companies. The fair value of mortgages and loans is determined by discounting the expected future cash flows using a current market interest rate applicable to financial instruments with a similar yield, credit quality, and maturity characteristics. Valuation inputs typically include benchmark yields and risk-adjusted spreads from current lending activities or loan issuances. The risk-adjusted spreads are determined based on the borrower’s credit and liquidity, as well as term and other loan-specific features. Long-term mortgages and loans are generally categorized in Level 3 of the fair value hierarchy. The significant unobservable input is a portion of these risk-adjusted spreads at or beyond the 20-year point for mortgages and at or beyond the 10-year point for loans. The fair value of other financial liabilities is determined by using the discounted cash flow methodology at the incremental borrowing rate or the effective interest rate. Other financial liabilities categorized as Level 3 represent the present value of the estimated price we would pay to acquire any remaining outstanding shares upon exercise of a put option and any mandatory income distributions. The fair value of the liabilities is based on the average earnings before income tax, depreciation and amortization ("EBITDA") for the preceding years before the options’ exercise dates and EBITDA multiples in accordance with the put agreements as well as the expected amount of any mandatory income distributions. A change in EBITDA would impact the fair value of other financial liabilities and our net income (loss). The fair value of derivative financial instruments depends upon derivative types. The fair value of exchange-traded futures and options is determined using quoted prices in active markets, while the fair value of over-the-counter ("OTC") derivatives is determined using pricing models, such as discounted cash flow analysis or other market standard valuation techniques, with primarily observable market inputs. Valuation inputs used to price OTC derivatives may include swap interest rate curves, foreign exchange spot and forward rates, index prices, the value of underlying securities, projected dividends, volatility surfaces, and in limited circumstances, counterparty quotes. The fair value of OTC derivative financial instruments also includes credit valuation adjustments to reflect the credit risk of both the derivative counterparty and ourselves as well as the impact of contractual factors designed to reduce our credit exposure, such as collateral and legal rights of offset under master netting agreements. Inputs into determining the appropriate credit valuation adjustments are typically obtained from publicly available information and include credit default swap spreads when available, credit spreads derived from specific bond yields, or published cumulative default experience data adjusted for current trends when credit default swap spreads are not available. The fair value of other invested assets is determined using quoted prices in active markets for identical securities or similar securities. When quoted prices in active markets are not available, fair value is determined using equity valuation models, which include discounted cash flow analysis and other techniques that involve benchmark comparison. Valuation inputs primarily include projected future operating cash flows and earnings, dividends, market discount rates, and earnings multiples of comparable companies. The fair value of investment properties is generally determined using property valuation models that are based on expected capitalization rates and models that discount expected future net cash flows at current market interest rates reflective of the characteristics, location, and market of each property. Expected future net cash flows include contractual and projected cash flows and forecasted operating expenses, and take into account interest, rental, and occupancy rates derived from market surveys. The estimates of future cash inflows in addition to expected rental income from current leases, include projected income from future leases based on significant assumptions that are consistent with current market conditions. The future rental rates are estimated based on the location, type, and quality of the properties, and take into account market data and projections at the valuation date. The fair values are typically compared to market-based information for reasonability, including recent transactions involving comparable assets. The methodologies and inputs used in these models are in accordance with real estate industry valuation standards. Valuations are prepared externally or internally by professionally accredited real estate appraisers. The fair value of short-term securities is approximated by their carrying amount, adjusted for credit risk where appropriate. The fair value of investments for account of segregated fund holders is determined using quoted prices in active markets or independent valuation information provided by investment managers. The fair value of direct investments within investments for account of segregated fund holders, such as short-term securities and government and corporate debt securities, is determined according to valuation methodologies and inputs described above in the respective asset type sections. We categorize our assets and liabilities carried at fair value, based on the priority of the inputs to the valuation techniques used to measure fair value, into a three-level fair value hierarchy as follows: Level 1: Fair value is based on the unadjusted quoted prices for identical assets or liabilities in an active market. The types of assets and liabilities classified as Level 1 generally include cash and cash equivalents, certain U.S. government and agency securities, exchange-traded equity securities, and certain segregated and mutual fund units held for account of segregated fund holders. Level 2: Fair value is based on quoted prices for similar assets or liabilities traded in active markets, or prices from valuation techniques that use significant observable inputs, or inputs that are derived principally from or corroborated with observable market data through correlation or other means. The types of assets and liabilities classified as Level 2 generally include Canadian federal, provincial and municipal government, other foreign government and corporate debt securities, certain asset-backed securities, OTC derivatives, and certain segregated and mutual fund units held for account of segregated fund holders. Level 3: Fair value is based on valuation techniques that require one or more significant inputs that are not based on observable market inputs. These unobservable inputs reflect our expectations about the assumptions market participants would use in pricing the asset or liability. The types of assets and liabilities classified as Level 3 generally include certain corporate bonds, certain other invested assets and investment properties. Our assets and liabilities that are carried at fair value on a recurring basis by hierarchy level are as follows: As at December 31, 2022 December 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Cash, cash equivalents and short-term securities $ 10,622 $ 597 $ — $ 11,219 $ 10,923 $ 1,355 $ — $ 12,278 Debt securities – fair value through profit or loss 699 61,661 397 62,757 1,503 74,333 162 75,998 Debt securities – available-for-sale 723 12,373 49 13,145 770 11,916 43 12,729 Equity securities – fair value through profit or loss 3,995 2,731 98 6,824 4,429 3,013 96 7,538 Equity securities – available-for-sale 138 113 73 324 1,414 87 74 1,575 Derivative assets 37 2,058 — 2,095 26 1,557 — 1,583 Other invested assets 789 194 5,555 6,538 1,189 377 3,650 5,216 Investment properties — — 10,102 10,102 — — 9,109 9,109 Total invested assets measured at fair value $ 17,003 $ 79,727 $ 16,274 $ 113,004 $ 20,254 $ 92,638 $ 13,134 $ 126,026 Investments for account of segregated fund holders 23,933 100,728 631 125,292 28,637 110,748 611 139,996 Total assets measured at fair value $ 40,936 $ 180,455 $ 16,905 $ 238,296 $ 48,891 $ 203,386 $ 13,745 $ 266,022 Liabilities Investment contract liabilities $ — $ — $ 10 $ 10 $ — $ — $ 9 $ 9 Derivative liabilities 10 2,341 — 2,351 9 1,383 — 1,392 Other liabilities – obligations for securities borrowing — 73 — 73 — 51 — 51 Total liabilities measured at fair value $ 10 $ 2,414 $ 10 $ 2,434 $ 9 $ 1,434 $ 9 $ 1,452 Debt securities - fair value through profit or loss consist of the following: As at December 31, 2022 December 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Canadian federal government $ — $ 3,869 $ 12 $ 3,881 $ — $ 4,783 $ 15 $ 4,798 Canadian provincial and municipal government — 12,638 — 12,638 — 15,930 — 15,930 U.S. government and agency 699 109 — 808 1,503 139 — 1,642 Other foreign government — 3,852 11 3,863 — 4,747 7 4,754 Corporate — 34,747 288 35,035 — 41,914 138 42,052 Asset-backed securities: Commercial mortgage-backed securities — 2,028 56 2,084 — 2,221 2 2,223 Residential mortgage-backed securities — 2,226 — 2,226 — 2,565 — 2,565 Collateralized debt obligations — 538 — 538 — 351 — 351 Other — 1,654 30 1,684 — 1,683 — 1,683 Total $ 699 $ 61,661 $ 397 $ 62,757 $ 1,503 $ 74,333 $ 162 $ 75,998 Debt securities – available-for-sale consist of the following: As at December 31, 2022 December 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Canadian federal government $ — $ 1,730 $ — $ 1,730 $ — $ 2,303 $ — $ 2,303 Canadian provincial and municipal government — 1,027 — 1,027 — 1,149 — 1,149 U.S. government and agency 723 6 — 729 770 1 — 771 Other foreign government — 761 — 761 — 756 1 757 Corporate — 6,234 41 6,275 — 5,473 41 5,514 Asset-backed securities: Commercial mortgage-backed securities — 793 — 793 — 761 1 762 Residential mortgage-backed securities — 819 — 819 — 522 — 522 Collateralized debt obligations — 508 — 508 — 505 — 505 Other — 495 8 503 — 446 — 446 Total $ 723 $ 12,373 $ 49 $ 13,145 $ 770 $ 11,916 $ 43 $ 12,729 During 2022 and 2021, we did not have any significant transfers between Level 1 and Level 2. The following table provides a reconciliation of the beginning and ending balances for assets and liabilities that are categorized in Level 3: For the years ended Debt securities - fair value through profit or loss Debt securities - available-for-sale Equity securities - fair value through profit or loss Equity securities - available-for-sale Other Investment Total Investments Total December 31, 2022 Beginning balance $ 162 $ 43 $ 96 $ 74 $ 3,650 $ 9,109 $ 13,134 $ 611 $ 13,745 Included in net income (1)(2)(3) (31) 1 — 5 322 625 922 (32) 890 Included in OCI (2) — (4) — — 12 — 8 — 8 Purchases 321 75 6 1 1,843 664 2,910 78 2,988 Sales / Payments — (2) (4) (12) (313) (430) (761) (6) (767) Settlements (1) — — — (47) — (48) (1) (49) Transfers (out) of Level 3 (4) (59) (64) — — — — (123) — (123) Foreign currency translation (5) 5 — — 5 88 134 232 (19) 213 Ending balance $ 397 $ 49 $ 98 $ 73 $ 5,555 $ 10,102 $ 16,274 $ 631 $ 16,905 Gains (losses) included in earnings relating to instruments still held at the reporting date (1) $ (31) $ — $ — $ — $ 295 $ 612 $ 876 $ (20) $ 856 December 31, 2021 Beginning balance $ 225 $ 67 $ 181 $ 47 $ 2,645 $ 7,516 $ 10,681 $ 550 $ 11,231 Included in net income (1)(2)(3) (6) — 10 5 392 1,032 1,433 23 1,456 Included in OCI (2) — (1) — 33 13 — 45 — 45 Purchases 29 5 8 15 1,074 764 1,895 65 1,960 Sales / Payments (9) (13) (25) (26) (469) (197) (739) (9) (748) Settlements (15) (3) (5) — — — (23) (1) (24) Transfers (out) of Level 3 (4) (57) (10) (73) — — — (140) — (140) Foreign currency translation (5) (5) (2) — — (5) (6) (18) (17) (35) Ending balance $ 162 $ 43 $ 96 $ 74 $ 3,650 $ 9,109 $ 13,134 $ 611 $ 13,745 Gains (losses) included in earnings relating to instruments still held at the reporting date (1) $ (4) $ — $ 11 $ 5 $ 382 $ 1,038 $ 1,432 $ 27 $ 1,459 (1) Included in Net investment income (loss) for Total invested assets measured at fair value in our Consolidated Statements of Operations. (2) Total gains and losses in net income (loss) and OCI are calculated assuming transfers into or out of Level 3 occur at the beginning of the period. For an asset or liability that transfers into Level 3 during the reporting period, the entire change in fair value for the period is included in the table above. For transfers out of Level 3 during the reporting period, the change in fair value for the period is excluded from the table above. (3) Investment properties included in net income is comprised of fair value changes on investment properties of $667 (2021 — $1,070), net of amortization of leasing commissions and tenant inducements of $42 (2021 — $38). As at December 31, 2022, we have used assumptions that reflect known changes in the property values including changes in expected future cash flows. (4) Transfers out of Level 3 occur when the pricing inputs become more transparent and satisfy the Level 1 or 2 criteria and are primarily the result of observable market data being available at the reporting date, thus removing the requirement to rely on inputs that lack observability. (5) Foreign currency translation relates to the foreign exchange impact of translating Level 3 assets and liabilities of foreign subsidiaries from their functional currencies to Canadian dollars. Unobservable Inputs and Sensitivity for Level 3 Assets Our assets categorized in Level 3 of the fair value hierarchy are primarily Investment properties, Debt securities and Other invested assets. The fair value of Investment properties is determined by using the discounted cash flow methodology as described in Note 5.A.ii. The key unobservable inputs used in the valuation of investment properties as at December 31, 2022 include the following: • Estimated rental value: The estimated rental value is based on contractual rent and other local market lease transactions, net of reimbursable operating expenses. An increase (decrease) in the estimated rental value would result in a higher (lower) fair value. The estimated rental value varies depending on the property types, which include retail, office, and industrial properties. The estimated rental value (in dollars, per square foot, per annum) ranges from $12.00 to $76.00 for retail and office properties and from $3.00 to $21.50 for industrial properties. • Rental growth rate: The rental growth rate is typically estimated based on expected market behaviour, which is influenced by the type of property and geographic region of the property. An increase (decrease) in the rental growth rate would result in a higher (lower) fair value. The rental growth rate (per annum) ranges from 0.00% to 3.00%, however the one- to two-year short-term rent curve is either below or above this range for select properties. • Long-term vacancy rate: The long-term vacancy rate is typically estimated based on expected market behaviour, which is influenced by the type of property and geographic region of the property. An increase (decrease) in the long-term vacancy rate would result in a lower (higher) fair value. The long-term vacancy rate ranges from 2.00% to 10.00%. • Discount rate: The discount rate is derived from market activity across various property types and geographic regions and is a reflection of the expected rate of return to be realized on the investment over the next 10 years. An increase (decrease) in the discount rate would result in a lower (higher) fair value. The discount rate ranges from 5.00% to 9.50%. • Terminal capitalization rate: The terminal capitalization rate is derived from market activity across various property types and geographic regions and is a reflection of the expected rate of return to be realized on the investment over the remainder of its life after the 10-year period. An increase (decrease) in the terminal capitalization rate would result in a lower (higher) fair value. The terminal capitalization rate ranges from 3.63% to 8.00%. Changes in the estimated rental value are positively correlated with changes in the rental growth rate. Changes in the estimated rental value are negatively correlated with changes in the long-term vacancy rate, the discount rate, and the terminal capitalization rate. Our Debt securities categorized in Level 3, which are included in Debt securities - FVTPL and Debt securities - AFS in the Level 3 roll forward table, consist primarily of corporate bonds. The fair value of these corporate bonds is generally determined using broker quotes that cannot be corroborated with observable market transactions. Significant unobservable inputs for these corporate bonds would include issuer spreads, which are comprised of credit, liquidity, and other security-specific features of the bonds. An increase (decrease) in these issuer spreads would result in a lower (higher) fair value. Due to the unobservable nature of these broker quotes, we do not assess whether applying reasonably possible alternative assumptions would have an impact on the fair value of the Level 3 corporate bonds. The majority of our debt securities categorized in Level 3 are FVTPL assets supporting insurance contract liabilities. Changes in the fair value of these assets supporting insurance contract liabilities are largely offset by changes in the corresponding insurance contract liabilities under CALM. As a result, though using reasonably possible alternative assumptions may have an impact on the fair value of the Level 3 debt securities, it would not have a significant impact on our Consolidated Financial Statements. The Other invested assets categorized in Level 3, which are included in Other invested assets - FVTPL and Other invested assets - AFS in the Level 3 roll forward table, consists primarily of limited partnership investments. The fair value of our limited partnership investments is based on net asset value ("NAV") provided by management of the limited partnership investments. Based on the unobservable nature of these NAVs, we do not assess whether applying reasonably possible alternative assumptions would have an impact on the fair value of the Level 3 limited partnership investments. Valuation Process for Level 3 Assets Our assets categorized in Level 3 of the fair value hierarchy are primarily Investment properties, Debt securities and limited partnership investments included in Other invested assets. Our valuation processes for these assets are as follows: The fair value of investment properties are based on the results of appraisals performed annually and reviewed quarterly for material changes. The valuation methodology used to determine the fair value is in accordance with the standards of the Appraisal Institute of Canada, the U.S., and the UK. Investment properties are appraised externally at least once every three years. Investment properties not appraised externally in a given year are reviewed by qualified appraisers. A management committee, including investment professionals, reviews the fair value of investment properties for overall reasonability. The fair value of Debt securities is generally obtained by external pricing services. We obtain an understanding of inputs and valuation methods used by external pricing services. When fair value cannot be obtained from external pricing services, broker quotes, or internal models subject to detailed review and validation processes are used. The fair value of debt securities is subject to price validation and review procedures to ensure overall reasonability. The fair value of limited partnership investments, included in Other invested assets, is based on NAV. The financial statements used in calculating the NAV are generally audited annually. We review the NAV of the limited partnership investments and perform analytical and other procedures to ensure the fair value is reasonable. 5.B Interest and Other Investment Income Interest and other investment income presented in our Consolidated Statements of Operations consist of the following: For the years ended December 31, 2022 2021 Interest income: Cash, cash equivalents and short-term securities $ 166 $ 25 Debt securities - fair value through profit or loss 2,596 2,429 Debt securities - available-for-sale 341 256 Mortgages and loans 2,234 2,117 Derivative investments 115 107 Policy loans 167 160 Total interest income 5,619 5,094 Equity securities - dividends on fair value through profit or loss 236 209 Equity securities - dividends on available-for-sale 8 5 Investment properties rental income (1) 593 543 Investment properties expenses (248) (235) Other income 235 922 Investment expenses and taxes (291) (266) Total interest and other investment income $ 6,152 $ 6,272 (1) Includes operating lease rental income from investment properties. 5.C Fair Value and Foreign Currency Changes on Assets and Liabilities Fair value and foreign currency changes on assets and liabilities presented in our Consolidated Statements of Operations consist of the following: For the years ended December 31, 2022 2021 Fair value change: Cash, cash equivalents and short-term securities $ 4 $ (3) Debt securities (15,959) (3,892) Equity securities (1,125) 825 Derivative investments (2,148) 191 Other invested assets 152 444 Other liabilities - obligations for securities borrowing 15 (2) Total change in fair value through profit or loss assets and liabilities (19,061) (2,437) Fair value changes on investment properties 667 1,070 Foreign exchange gains (losses) (1) 535 (418) Realized gains (losses) on property and equipment (2) 100 — Fair value and foreign currency changes on assets and liabilities $ (17,759) $ (1,785) (1) Primarily arises from the translation of foreign currency denominated AFS monetary assets and mortgage and loans. Any offsetting amounts arising from foreign currency derivatives are included in the fair value change on derivative investments. 5.D Cash, Cash Equivalents and Short-Term Securities Cash, cash equivalents and short-term securities presented in our Consolidated Statements of Financial Position and Net cash, cash equivalents and short-term securities presented in our Consolidated Statements of Cash Flows consist of the following: As at December 31, 2022 2021 Cash $ 3,068 $ 2,297 Cash equivalents 6,310 5,529 Short-term securities 1,841 4,452 Cash, cash equivalents and short-term securities 11,219 12,278 Less: Bank overdraft, recorded in Other liabilities 6 133 Net cash, cash equivalents and short-term securities $ 11,213 $ 12,145 5.E Derivative Financial Instruments and Hedging Activities The fair values of derivative financial instruments by major class of derivatives are as follows: As at December 31, 2022 2021 Fair value Fair value Assets Liabilities Assets Liabilities Interest rate contracts $ 704 $ (1,138) $ 942 $ (366) Foreign exchange contracts 1,300 (1,203) 527 (1,018) Other contracts 91 (10) 114 (8) Total derivatives $ 2,095 $ (2,351) $ 1,583 $ (1,392) The following table presents the fair values of derivative assets and liabilities categorized by type of hedge for accounting purposes and derivative investments: As at December 31, 2022 2021 Total notional amount Fair value Total notional amount Fair value Assets Liabilities Assets Liabilities Derivative investments (1) $ 68,417 $ 2,077 $ (2,330) $ 64,761 $ 1,536 $ (1,390) Fair value hedges 59 — (1) 414 1 (2) Cash flow hedges 1,292 18 (20) 791 46 — Total derivatives $ 69,768 $ 2,095 $ (2,351) $ 65,966 $ 1,583 $ (1,392) (1) Derivative investments are derivatives that have not been designated as hedges for accounting purposes. We did not have any net investment hedges in 2022 or 2021. Hedge ineffectiveness recognized in Interest and other investment income consists of the following: For the years ended December 31, 2022 2021 Gains (losses) on the hedged items attributable to the hedged risk $ (2) $ (6) Gains (losses) on the hedging derivatives 3 8 Net ineffectiveness on fair value hedges $ 1 $ 2 For cash flow hedges, we had hedge ineffectiveness of $1 in 2022 (2021 — $2). We expect to reclassify a gain of $1 (2021 — $7) from accumulated OCI to net income within the next 12 months that relates to cash flow hedges of anticipated award payments under certain share-based payment plans that are expected to occur in 2023, 2024, and 2025 and cash flow hedges which hedge against foreign exchange exposure. The reclassification of accumulated OCI to income relating to these foreign currency forwards occurs upon disposal or impairment of the foreign operation. 5.F Transfers of Financial Assets We enter into transactions, including mortgage securitization, repurchase agreements and securities lending, where we transfer financial assets while retaining the risks and rewards of ownership of the assets. These transferred financial assets are not derecognized and remain on our Consolidated Statements of Financial Position. The carrying value of the transferred assets and the associated liabilities are described in the sections below. We securitize certain insured fixed-rate commercial mortgages through the creation of mortgage-backed securities under the National Housing Act Mortgage-Backed Securities ("NHA MBS") Program sponsored by the Canada Mortgage and Housing Corporation ("CMHC"). The NHA MBS are then sold to Canada Housing Trust, a government-sponsored security trust that issues securities to third-party investors under the Canadian Mortgage Bond ("CMB") program. The securitization of these assets does not qualify for derecognition as we have not transferred substantially all of the risks and rewards of ownership. Specifically, we continue to be exposed to pre-payment and interest rate risk associated with these assets. There are no expected credit losses on the securitized mortgages, as the mortgages were already insured by the CMHC prior to securitization. These assets continue to be recognized as Mortgage |
Financial Instrument Risk Manag
Financial Instrument Risk Management | 12 Months Ended |
Dec. 31, 2022 | |
Financial Instruments [Abstract] | |
Financial Instrument Risk Management | 6. Financial Instrument Risk Management The significant risks related to financial instruments are credit risk, market risk (including equity risk, interest rate and spread risk, and foreign currency risk) and liquidity risk. The following sections describe how we manage these risks. Some of our financial instruments risk management policies and procedures are described in our Annual Management’s Discussion and Analysis ("MD&A") for the year ended December 31, 2022. The shaded text and tables in the Risk Management section of the MD&A represent part of our disclosures on credit, market and liquidity risks and include a description of how we measure our risk and our objectives, policies and methodologies for managing these risks. Therefore, the shaded text and tables in our MD&A are an integral part of these Consolidated Financial Statements. We use derivative instruments to manage market risks related to equity market, interest rate and currency fluctuations and in replication strategies for permissible investments. We do not engage in speculative investment in derivatives. The gap in market sensitivities or exposures between liabilities and supporting assets is monitored and managed within defined tolerance limits, by using derivative instruments, where appropriate. We use models and techniques to measure the effectiveness of our risk management strategies. 6.A Credit Risk Risk Description Credit risk is the possibility of loss from amounts owed by our borrowers or financial counterparties. We are subject to credit risk in connection with issuers of securities held in our investment portfolio, debtors, structured securities, reinsurers, counterparties (including derivative, repurchase agreement and securities lending counterparties), other financial institutions and other entities. Losses may occur when a counterparty fails to make timely payments pursuant to the terms of the underlying contractual arrangement or when the counterparty's credit rating or risk profile otherwise deteriorates. Credit risk can also arise in connection with deterioration in the value of, or ability to realize, any underlying security that may be used as collateral for the debt obligation. Credit risk can occur as a result of broad economic conditions, challenges within specific sectors of the economy, or from issues affecting individual companies. Events that result in defaults, impairments or downgrades of the securities in our investment portfolio would cause the Company to record realized or unrealized losses and may cause an increase in our provisions for asset default, adversely impacting earnings. Credit Risk Management Governance and Control We employ a wide range of credit risk management practices and controls, as outlined below: • Credit risk governance practices are in place, including independent monitoring and review and reporting to senior management and the Risk Committee. • Risk appetite limits have been established for credit risk. • Income and regulatory capital sensitivities are monitored, managed and reported against pre-established risk limits. • Comprehensive Investment and Credit Risk Management Policy, guidelines and practices are in place. • Specific investment diversification requirements are in place, such as defined investment limits for asset class, geography, and industry. • Risk-based credit portfolio, counterparty, and sector exposure limits have been established. • Mandatory use of credit quality ratings for portfolio investments has been established and is reviewed regularly. These internal rating decisions for new fixed income investments and ongoing review of existing rating decisions are independently adjudicated by Corporate Risk Management. • Comprehensive due diligence processes and ongoing credit analyses are conducted. • Regulatory solvency requirements include risk-based capital requirements and are monitored regularly. • Comprehensive compliance monitoring practices and procedures including reporting against pre-established investment limits are in place. • Reinsurance exposures are monitored to ensure that no single reinsurer represents an undue level of credit risk. • Stress-testing techniques, such as Financial Condition Testing ("FCT"), are used to measure the effects of large and sustained adverse credit developments. • Insurance contract liabilities are established in accordance with Canadian actuarial standards of practice. • Internal capital targets are established at an enterprise level to cover all risks and are above minimum regulatory and supervisory levels. Actual capital levels are monitored to ensure they exceed internal targets. 6.A.i Maximum Exposure to Credit Risk Our maximum credit exposure related to financial instruments as at December 31 is the balance as presented in our Consolidated Statements of Financial Position as we believe that these carrying amounts best represent the maximum exposure to credit risk. The credit exposure for debt securities may be increased to the extent that the amounts recovered from default are insufficient to satisfy the actuarial liability cash flows that the assets are intended to support. The positive fair value of derivative assets is used to determine the credit risk exposure if the counterparties were to default. The credit risk exposure is the cost of replacing, at current market rates, all derivative contracts with a positive fair value. Additionally, we have credit exposure to items not on the Consolidated Statements of Financial Position as follows: As at December 31, 2022 2021 Off-balance sheet item: Loan commitments (1) $ 2,217 $ 2,402 (1) Loan commitments include commitments to extend credit under commercial and multi-family residential mortgages and private debt securities not quoted in an active market. Commitments on debt securities contain provisions that allow for withdrawal of the commitment if there is deterioration in the credit quality of the borrower. 6.A.ii Right of Offset and Collateral We invest in financial assets which may be secured by real estate properties, pools of financial assets, third-party financial guarantees, credit insurance, and other arrangements. For OTC derivatives, collateral is collected from and pledged to counterparties to manage credit exposure according to the Credit Support Annex ("CSA"), which forms part of the International Swaps and Derivatives Association's ("ISDA") master agreements. It is common practice to execute a CSA in conjunction with an ISDA master agreement. Under the ISDA master agreements for OTC derivatives, we have a right of offset in the event of default, insolvency, bankruptcy, or other early termination. In the ordinary course of business, bilateral OTC exposures under these agreements are substantially mitigated through associated collateral agreements with a majority of our counterparties. For exchange-traded derivatives subject to derivative clearing agreements with the exchanges and clearinghouses, there is no provision for set-off at default. Initial margin is excluded from the table below as it would become part of a pooled settlement process. For repurchase agreements and reverse repurchase agreements, assets are sold or purchased with a commitment to resell or repurchase at a future date. Additional collateral may be pledged to or collected from counterparties to manage credit exposure according to bilateral repurchase or reverse repurchase agreements. In the event of default by a counterparty, we are entitled to liquidate the assets we hold as collateral to offset against obligations to the same counterparty. In the case of securities lending or borrowing, assets are lent or borrowed with a commitment from or to the counterparty to return at a future date. For securities lending, cash or securities are received as collateral from the counterparty; for securities borrowing, debt securities are pledged as collateral to the counterparty. In the event of default by the counterparty, we are entitled to liquidate the assets we hold as collateral to offset against obligations to the same counterparty. We do not offset financial instruments in our Consolidated Statements of Financial Position, as our rights of offset are conditional. The following tables present the effect of conditional netting and similar arrangements. Similar arrangements include global master repurchase agreements, security lending agreements, and any related rights to financial collateral. As at December 31, 2022 2021 Financial instruments presented in the Consolidated Statements of Financial Position (1) Related amounts not set off in the Consolidated Statements of Financial Position Financial instruments presented in the Consolidated Statements of Financial Position (1) Related amounts not set off in the Consolidated Statements of Financial Position Financial instruments subject to master netting or similar agreements Financial collateral (received) pledged (2) Net amount Financial instruments subject to master netting or similar agreements Financial collateral (received) pledged (2) Net amount Financial assets: Derivative assets (Note 6.A.v) $ 2,095 $ (1,088) $ (923) $ 84 $ 1,583 $ (828) $ (558) $ 197 Reverse repurchase agreements (Note 8) 14 (14) — — — — — — Total financial assets $ 2,109 $ (1,102) $ (923) $ 84 $ 1,583 $ (828) $ (558) $ 197 Financial liabilities: Derivative liabilities $ (2,351) $ 1,088 $ 1,136 $ (127) $ (1,392) $ 828 $ 550 $ (14) Repurchase agreements (Note 5.F.ii) (2,725) 14 2,711 — (2,324) — 2,324 — Cash collateral on securities lent (Note 5.F.iii) (215) — 203 (12) (51) — 48 (3) Obligations for securities borrowing (73) — 73 — (51) — 51 — Total financial liabilities $ (5,364) $ 1,102 $ 4,123 $ (139) $ (3,818) $ 828 $ 2,973 $ (17) (1) Net amounts of the financial instruments presented in our Consolidated Statements of Financial Position are the same as our gross recognized financial instruments, as we do not offset financial instruments in our Consolidated Statements of Financial Position. (2) Financial collateral presented in the table above excludes overcollateralization and, for exchange traded derivatives, initial margin. Total financial collateral, including initial margin and overcollateralization, received on derivative assets was $1,061 (December 31, 2021 — $678), received on reverse repurchase agreements was $14 (December 31, 2021 — $nil), pledged on derivative liabilities was $2,068 (December 31, 2021 — $1,616), and pledged on repurchase agreements was $2,725 (December 31, 2021 — $2,324). 6.A.iii Concentration Risk Concentrations of credit risk arise from exposures to a single debtor, a group of related debtors, or groups of debtors that have similar credit risk characteristics, such as groups of debtors in the same economic or geographic regions or in similar industries. Related issuers may have similar economic characteristics so that their ability to meet contractual obligations may be impacted similarly by changes in the economic or political conditions. We manage this risk by appropriately diversifying our investment portfolio through the use of concentration limits. In particular, we maintain policies which set counterparty exposure limits to manage the credit exposure for investments in any single issuer or to the same underlying credit. Exceptions exist for investments in securities which are issued or guaranteed by the Government of Canada, U.S. or UK and issuers for which the Risk Committee have granted specific approval. Mortgages are collateralized by the related property, and generally do not exceed 75% of the value of the property at the time the original loan is made. Our mortgages and loans are diversified by type and location and, for mortgages, by borrower. Loans provide diversification benefits (name, industry and geography) and often provide stronger covenants and collateral than public debt securities, thereby providing both better credit protection and potentially higher recoveries in the event of default. The following tables provide details of the debt securities, mortgages and loans held by issuer country, geographic location and industry sector, where applicable. The carrying value of debt securities by geographic location is shown in the following table. The geographic location is based on the country of the creditor's parent. As at December 31, 2022 2021 Fair value Available- Total debt Fair value Available- Total debt Canada $ 27,816 $ 4,861 $ 32,677 $ 33,028 $ 5,135 $ 38,163 United States 21,412 5,058 26,470 26,678 4,552 31,230 United Kingdom 2,914 583 3,497 4,196 562 4,758 Other 10,615 2,643 13,258 12,096 2,480 14,576 Total debt securities $ 62,757 $ 13,145 $ 75,902 $ 75,998 $ 12,729 $ 88,727 The carrying value of debt securities by issuer and industry sector is shown in the following table: As at December 31, 2022 2021 Fair value Available- Total debt Fair value Available- Total debt Debt securities issued or guaranteed by: Canadian federal government $ 3,881 $ 1,730 $ 5,611 $ 4,798 $ 2,303 $ 7,101 Canadian provincial and municipal government 12,638 1,027 13,665 15,930 1,149 17,079 U.S. government and agency 808 729 1,537 1,642 771 2,413 Other foreign government 3,863 761 4,624 4,754 757 5,511 Total government issued or guaranteed debt securities 21,190 4,247 25,437 27,124 4,980 32,104 Corporate debt securities by industry sector: Financials 9,377 1,978 11,355 10,258 1,690 11,948 Utilities 5,979 697 6,676 7,414 778 8,192 Industrials 4,762 813 5,575 5,791 805 6,596 Energy 3,069 273 3,342 3,992 287 4,279 Communication services 2,937 392 3,329 3,534 352 3,886 Real estate 1,920 586 2,506 2,334 354 2,688 Health care 1,682 352 2,034 2,081 346 2,427 Consumer staples 1,677 301 1,978 2,047 231 2,278 Consumer discretionary 1,395 441 1,836 1,814 306 2,120 Information technology 1,130 254 1,384 1,426 209 1,635 Materials 1,107 188 1,295 1,361 156 1,517 Total corporate debt securities 35,035 6,275 41,310 42,052 5,514 47,566 Asset-backed securities 6,532 2,623 9,155 6,822 2,235 9,057 Total debt securities $ 62,757 $ 13,145 $ 75,902 $ 75,998 $ 12,729 $ 88,727 The carrying value of mortgages and loans by geographic location and type is shown in the following tables. The geographic location for mortgages is based on location of property, while for corporate loans it is based on the country of the creditor's parent. As at December 31, 2022 Canada United States United Kingdom Other Total Mortgages: Retail $ 1,546 $ 1,455 $ — $ — $ 3,001 Office 1,762 1,522 — — 3,284 Multi-family residential 4,025 1,245 — — 5,270 Industrial and land 1,779 1,104 — — 2,883 Other 780 113 29 — 922 Total mortgages (1) $ 9,892 $ 5,439 $ 29 $ — $ 15,360 Loans $ 13,143 $ 17,238 $ 4,923 $ 5,597 $ 40,901 Total mortgages and loans $ 23,035 $ 22,677 $ 4,952 $ 5,597 $ 56,261 (1) $4,174 of mortgages in Canada are insured by the CMHC. As at December 31, 2021 Canada United States United Kingdom Other Total Mortgages: Retail $ 1,765 $ 1,623 $ — $ — 3,388 Office 1,892 1,639 — — 3,531 Multi-family residential 4,138 1,589 — — 5,727 Industrial and land 1,094 941 — — 2,035 Other 680 115 9 — 804 Total mortgages (1) $ 9,569 $ 5,907 $ 9 $ — $ 15,485 Loans $ 12,885 $ 14,596 $ 4,111 $ 4,615 $ 36,207 Total mortgages and loans $ 22,454 $ 20,503 $ 4,120 $ 4,615 $ 51,692 (1) $4,218 of mortgages in Canada are insured by the CMHC. 6.A.iv Contractual Maturities The contractual maturities of debt securities are shown in the following table. Actual maturities could differ from contractual maturities because of the borrower's right to call or extend or right to prepay obligations, with or without prepayment penalties. As at December 31, 2022 2021 Fair value Available- Total debt Fair value Available- Total debt Due in 1 year or less $ 2,426 $ 1,334 $ 3,760 $ 2,505 $ 1,373 $ 3,878 Due in years 2-5 10,972 5,919 16,891 10,475 4,971 15,446 Due in years 6-10 9,889 2,969 12,858 11,328 3,350 14,678 Due after 10 years 39,470 2,923 42,393 51,690 3,035 54,725 Total debt securities $ 62,757 $ 13,145 $ 75,902 $ 75,998 $ 12,729 $ 88,727 The carrying value of mortgages by scheduled maturity, before allowances for losses, is as follows: As at December 31, 2022 2021 Due in 1 year or less $ 1,350 $ 884 Due in years 2-5 6,312 6,172 Due in years 6-10 5,210 5,979 Due after 10 years 2,568 2,530 Total mortgages $ 15,440 $ 15,565 The carrying value of loans by scheduled maturity, before allowances for losses, is as follows: As at December 31, 2022 2021 Due in 1 year or less $ 2,893 $ 1,772 Due in years 2-5 7,237 7,108 Due in years 6-10 8,726 7,393 Due after 10 years 22,157 19,986 Total loans $ 41,013 $ 36,259 Notional amounts of derivative financial instruments are the basis for calculating payments and are generally not the actual amounts exchanged. The following table provides the notional amounts of derivative instruments outstanding by type of derivative and term to maturity: As at December 31, 2022 2021 Term to maturity Term to maturity Under 1 to 5 Over 5 Total Under 1 to 5 Over 5 Total Over-the-counter contracts: Interest rate contracts: Forward contracts $ 7 $ — $ — $ 7 $ 94 $ 6 $ — $ 100 Swap contracts 1,193 4,089 12,233 17,515 1,273 3,434 13,042 17,749 Options purchased 1,512 2,080 1,253 4,845 878 3,297 1,674 5,849 Options written (1) 135 224 — 359 — 461 — 461 Foreign exchange contracts: Forward contracts 17,243 — — 17,243 10,824 3,097 — 13,921 Swap contracts 806 2,598 18,138 21,542 725 2,654 16,494 19,873 Other contracts: Options purchased 338 — — 338 271 8 — 279 Forward contracts 145 168 — 313 154 163 — 317 Swap contracts 441 — — 441 446 — — 446 Credit derivatives 302 1,058 — 1,360 322 513 — 835 Exchange-traded contracts: Interest rate contracts: Futures contracts 3,005 — — 3,005 3,818 — — 3,818 Equity contracts: Futures contracts 2,481 — — 2,481 2,105 — — 2,105 Options purchased 189 78 — 267 213 — — 213 Options written 52 — — 52 — — — — Total notional amount $ 27,849 $ 10,295 $ 31,624 $ 69,768 $ 21,123 $ 13,633 $ 31,210 $ 65,966 (1) These are covered short derivative positions that may include interest rate options, swaptions, or floors. The following table provides the fair value of derivative instruments outstanding by term to maturity: As at December 31, 2022 2021 Term to maturity Term to maturity Under 1 to 5 Over 5 Total Under 1 to 5 Over 5 Total Derivative assets $ 167 $ 351 $ 1,577 $ 2,095 $ 139 $ 249 $ 1,195 $ 1,583 Derivative liabilities $ (379) $ (196) $ (1,776) $ (2,351) $ (97) $ (184) $ (1,111) $ (1,392) 6.A.v Asset Quality The following sections describe our assessment of the credit quality of our financial assets. We monitor credit quality based on internal risk ratings as well as ratings assigned by external rating agencies where available. Debt Securities by Credit Rating Investment grade debt securities are those rated BBB and above. Our debt security portfolio was 99% investment grade based on carrying value as at December 31, 2022 (December 31, 2021 — 99%). The credit risk ratings were established in accordance with the internal rating process described in the Credit Risk Management Governance and Control section. The following table summarizes our debt securities by credit quality: As at December 31, 2022 2021 Fair value Available- Total debt Fair value Available- Total debt Debt securities by credit rating: AAA $ 10,400 $ 4,862 $ 15,262 $ 12,811 $ 5,294 $ 18,105 AA 9,545 1,765 11,310 11,510 1,502 13,012 A 24,144 3,552 27,696 29,984 3,282 33,266 BBB 17,947 2,721 20,668 20,710 2,484 23,194 BB and lower 721 245 966 983 167 1,150 Total debt securities $ 62,757 $ 13,145 $ 75,902 $ 75,998 $ 12,729 $ 88,727 Mortgages and Loans by Credit Rating The credit quality of mortgages and loans is evaluated internally through regular monitoring of credit-related exposures. We use judgment and experience to determine what factors should be considered when assigning an internal credit rating, which is validated through the use of credit scoring models, to a particular mortgage or corporate loan. The internal credit ratings reflect the credit quality of the borrower as well as the value of any collateral held as security. The following tables summarize our mortgages and loans by credit quality indicator: As at December 31, 2022 2021 Mortgages by credit rating: Insured $ 4,174 $ 4,218 AA 1,769 1,640 A 5,917 4,979 BBB 2,911 3,814 BB and lower 589 822 Impaired — 12 Total mortgages $ 15,360 $ 15,485 As at December 31, 2022 2021 Loans by credit rating: AAA $ 274 $ 192 AA 5,712 4,994 A 16,891 14,231 BBB 15,920 14,632 BB and lower 2,071 2,139 Impaired 33 19 Total loans $ 40,901 $ 36,207 Derivative Financial Instruments by Counterparty Credit Rating Derivative instruments consist of bilateral OTC contracts negotiated directly between counterparties, OTC contracts cleared through central clearing houses or exchange-traded contracts. Since a counterparty failure in an OTC derivative transaction could render it ineffective for hedging purposes, we generally transact our derivative contracts with highly-rated counterparties. In limited circumstances, we enter into transactions with lower-rated counterparties if credit enhancement features are included. We pledge and hold assets as collateral under CSAs for bilateral OTC derivative contracts. The collateral is realized in the event of early termination as defined in the agreements. The assets held and pledged are primarily cash and debt securities issued by the Canadian federal government and U.S. government and agencies. While we are generally permitted to sell or re-pledge the assets held as collateral, we have not sold or re-pledged any assets. Exchange-traded and cleared OTC derivatives require the posting of initial margin, as well as daily cash settlement of variation margin. The terms and conditions related to the use of the collateral are consistent with industry practice. Further details on collateral held and pledged as well as the impact of netting arrangements are included in Note 6.A.ii. The following table shows the OTC derivative financial instruments with a positive fair value split by counterparty credit rating: As at December 31, 2022 2021 Gross positive replacement cost (2) Impact of master netting agreements (3) Net replacement cost (4) Gross positive replacement cost (2) Impact of master netting agreements (3) Net replacement cost (4) Over-the-counter contracts: AA $ 482 $ (254) $ 228 $ 402 $ (219) $ 183 A 1,560 (834) 726 1,080 (598) 482 BBB 15 — 15 74 (11) 63 Total over-the-counter derivatives (1) $ 2,057 $ (1,088) $ 969 $ 1,556 $ (828) $ 728 (1) Exchange-traded derivatives with a positive fair value of $38 in 2022 (2021 — $27) are excluded from the table above, as they are subject to daily margining requirements. Our credit exposure on these derivatives is with the exchanges and clearinghouses. (2) Used to determine the credit risk exposure if the counterparties were to default. The credit risk exposure is the cost of replacing, at current market rates, all contracts with a positive fair value. (3) The credit risk associated with derivative assets subject to master netting arrangements is reduced by derivative liabilities due to the same counterparty in the event of default or early termination. Our overall exposure to credit risk reduced through master netting arrangements may change substantially following the reporting date as the exposure is affected by each transaction subject to the arrangement. (4) Net replacement cost is positive replacement cost less the impact of master netting agreements. Credit Default Swaps by Underlying Financial Instrument Credit Rating Credit default swaps ("CDS") are OTC contracts that transfer credit risk related to an underlying referenced financial instrument from one counterparty to another. The purchaser receives protection against the decline in the value of the referenced financial instrument as a result of specified credit events such as default or bankruptcy. The seller receives a periodic premium in return for payment contingent on a credit event affecting the referenced financial instrument. CDS index contracts are those where the underlying referenced financial instruments are a group of assets. The Company enters into credit derivatives to replicate credit exposure of an underlying reference security and enhance investment returns. The credit risk ratings of the underlying reference securities for single name contracts were established in accordance with the internal rating process described in the Credit Risk Management Governance and Control section. The following table provides a summary of the credit default swap protection sold by credit rating of the underlying reference security: As at December 31, 2022 2021 Notional Fair Notional Fair Single name credit default swap contracts: AA $ 20 $ — $ 38 $ 1 A 587 4 347 4 BBB 706 5 431 9 BB 47 7 19 — Total single name credit default swap contracts $ 1,360 $ 16 $ 835 $ 14 Total credit default swap contracts sold $ 1,360 $ 16 $ 835 $ 14 Reinsurance Assets by Credit Rating The table below presents the distribution of Reinsurance assets by credit rating: As at December 31, 2022 2021 Gross exposure Collateral Net exposure Gross exposure Collateral Net exposure Reinsurance assets by credit rating: AA $ 2,409 $ — $ 2,409 $ 2,170 $ — $ 2,170 A 1,308 30 1,278 928 28 900 BBB 133 118 15 139 117 22 BB 2,046 2,000 46 1,861 1,825 36 B 3 — 3 — — — CCC 237 237 — 197 194 3 Not rated 105 97 8 136 131 5 Total $ 6,241 $ 2,482 $ 3,759 $ 5,431 $ 2,295 $ 3,136 Less: Negative reinsurance assets 1,440 1,748 Total Reinsurance assets $ 4,801 $ 3,683 6.A.vi Impairment of Assets Management assesses debt and equity securities, mortgages and loans, and other invested assets for objective evidence of impairment at each reporting date. We employ a portfolio monitoring process to identify assets or groups of assets that have objective evidence of impairment, having experienced a loss event or events that have an impact on the estimated future cash flows of the asset or group of assets. There are inherent risks and uncertainties in our evaluation of assets or groups of assets for objective evidence of impairment, including both internal and external factors such as general economic conditions, issuers' financial conditions and prospects for economic recovery, market interest rates, unforeseen events which affect one or more issuers or industry sectors, and portfolio management parameters, including asset mix, interest rate risk, portfolio diversification, duration matching, and greater than expected liquidity needs. All of these factors could impact our evaluation of an asset or group of assets for objective evidence of impairment. Management exercises considerable judgment in assessing for objective evidence of impairment and, based on its assessment, classifies specific assets as either performing or into one of the following credit quality lists: "Monitor List" - the timely collection of all contractually specified cash flows is reasonably assured, but changes in issuer-specific facts and circumstances require monitoring. No impairment charge is recorded for unrealized losses on assets related to these debtors. "Watch List" - the timely collection of all contractually specified cash flows is reasonably assured, but changes in issuer-specific facts and circumstances require heightened monitoring. An asset is moved from the Monitor List to the Watch List when changes in issuer-specific facts and circumstances increase the possibility that a security may experience a loss event on an imminent basis. No impairment charge is recorded for unrealized losses on assets related to these debtors. "Impaired List" - the timely collection of all contractually specified cash flows is no longer reasonably assured. For these investments that are classified as AFS or amortized cost, an impairment charge is recorded or the asset is sold and a realized loss is recorded as a charge to income. Impairment charges and realized losses are recorded on assets related to these debtors. Our approach to determining whether there is objective evidence of impairment varies by asset type. However, we have a process to ensure that in all instances where a decision has been made to sell an asset at a loss, the asset is impaired. Debt Securities Objective evidence of impairment on debt securities involves an assessment of the issuer's ability to meet current and future contractual interest and principal payments. In determining whether debt securities have objective evidence of impairment, we employ a screening process. The process identifies securities in an unrealized loss position, with particular attention paid to those securities whose fair value to amortized cost percentages have been less than 80% for an extended period of time. Discrete credit events, such as a ratings downgrade, are also used to identify securities that may have objective evidence of impairment. The securities identified are then evaluated based on issuer-specific facts and circumstances, including an evaluation of the issuer's financial condition and prospects for economic recovery, evidence of difficulty being experienced by the issuer's parent or affiliate, and management's assessment of the outlook for the issuer's industry sector. Management also assesses previously impaired debt securities whose fair value has recovered to determine whether the recovery is objectively related to an event occurring subsequent to the impairment loss that has an impact on the estimated future cash flows of the asset. Asset-backed securities are assessed for objective evidence of impairment. Specifically, we periodically update our best estimate of cash flows over the life of the security. In the event that there is an adverse change in the expected cash flows, the asset is impaired. Estimating future cash flows is a quantitative and qualitative process that incorporates information received from third parties, along with assumptions and judgments about the future performance of the underlying collateral. Losses incurred on the respective mortgage-backed securities portfolios are based on loss models using assumptions about key systematic risks, such as unemployment rates and housing prices, and loan-specific information such as delinquency rates and loan-to-value ratios. Equity Securities and Other Invested Assets Objective evidence of impairment for equity securities and investments in limited partnerships, segregated funds, and mutual funds involves an assessment of the prospect of recovering the cost of our investment. Instruments in an unrealized loss position are reviewed to determine if objective evidence of impairment exists. Objective evidence of impairment for these instruments includes, but is not limited to, the financial condition and near-term prospects of the issuer, including information about significant changes with adverse effects that have taken place in the technological, market, economic, or legal environment in which the issuer operates, and a significant or prolonged decline in the fair value of the instruments below their cost. We apply presumptive impairment tests to determine whether there has been a significant or prolonged decline in the fair value of an instrument below its cost, and unless extenuating circumstances exist, the instrument is considered to be impaired. Mortgages and Loans Objective evidence of impairment on mortgages and loans involves an assessment of the borrower's ability to meet current and future contractual interest and principal payments. In determining whether objective evidence of impairment exists, we consider a number of factors including, but not limited to, the financial condition of the borrower and, for collateral dependent mortgages and loans, the fair value of the collateral. Mortgages and loans causing concern are monitored closely and evaluated for objective evidence of impairment. For these mortgages and loans, we review information that is appropriate to the circumstances, including recent operating developments, strategy review, timelines for remediation, financial position of the borrower and, for collateral-dependent mortgages and loans, the value of security as well as occupancy and cash flow considerations. In addition to specific allowances, circumstances may warrant a collective allowance based on objective evidence of impairment for a group of mortgages and loans. We consider regional economic conditions, developments for various property types, and significant exposure to struggling tenants in determining whether there is objective evidence of impairment for certain collateral dependent mortgages and loans, even though it is not possible to identify specific mortgages and loans that are likely to become impaired |
Insurance Risk Management
Insurance Risk Management | 12 Months Ended |
Dec. 31, 2022 | |
Insurance Contracts [Abstract] | |
Insurance Risk Management | 7. Insurance Risk Management 7.A Insurance Risk Risk Description Insurance risk is the uncertainty of product performance due to actual experience emerging differently than expected in the areas of policyholder behaviour, mortality, morbidity and longevity. In addition, product design and pricing, expense and reinsurance risks impact multiple risk categories, including insurance risk. Insurance Risk Management Governance and Control We employ a wide range of insurance risk management practices and controls, as outlined below: • Insurance risk governance practices are in place, including independent monitoring and review and reporting to senior management and the Risk Committee. • Income and regulatory capital sensitivities are monitored, managed and reported against pre-established risk appetite limits for policyholder behaviour, mortality, morbidity and longevity risks. • Comprehensive Insurance Risk Policy, guidelines and practices are in place. • The global underwriting manual aligns underwriting practices with our corporate risk management standards and ensures a consistent approach in insurance underwriting. • Board-approved maximum retention limits are in place. Amounts issued in excess of these limits are reinsured. • Detailed procedures, including criteria for approval of risks and for claims adjudication are established and monitored for each business segment. • Underwriting and risk selection standards and procedures are established and overseen by the corporate underwriting and claims risk management function. • Diversification and risk pooling is managed by aggregation of exposures across product lines, geography and distribution channels. • We use reinsurance to limit losses, minimize exposure to significant risks and to provide additional capacity for growth. • The Insurance Risk Policy and Investment & Credit Risk Policy establish acceptance criteria and protocols to monitor the level of reinsurance ceded to any single reinsurer or group of reinsurers. • Reinsurance counterparty risk is monitored, including annual reporting of reinsurance exposure to the Risk Committee. • Concentration risk exposure is monitored on group policies in a single location to avoid a catastrophic event occurrence resulting in a significant impact. • Various limits, restrictions and fee structures are introduced into plan designs in order to establish a more homogeneous policy risk profile and limit potential for anti-selection. • Regulatory solvency requirements include risk-based capital requirements and are monitored regularly. • The Product Design and Pricing Policy requires detailed risk assessment and pricing provision for material risks. • Company specific and industry level experience studies and sources of earnings analysis are monitored and factored into valuation, renewal and new business pricing processes. • Stress-testing techniques, such as FCT, are used to measure the effects of large and sustained adverse movements in insurance risk factors. • Insurance contract liabilities are established in accordance with Canadian actuarial standards of practice. • Internal capital targets are established at an enterprise level to cover all risks and are above minimum regulatory and supervisory levels. Actual capital levels are monitored to ensure they exceed internal targets. Our Insurance Risk Policy sets maximum global retention limits and related management standards and practices that are applied to reduce our exposure to large claims. Amounts in excess of the Board-approved maximum retention limits are reinsured. On a single life or joint-first-to-die basis retention limit is $40 in Canada and US $40 outside of Canada. For survivorship life insurance, our maximum global retention limit is $50 in Canada and US $50 outside of Canada. In certain markets and jurisdictions, retention levels below the maximum are applied. Reinsurance is utilized for numerous products in most business segments, and placement is done on an automatic basis for defined insurance portfolios and on a facultative basis for individual risks with certain characteristics. Our reinsurance coverage is well diversified and controls are in place to manage exposure to reinsurance counterparties. Reinsurance exposures are monitored to ensure that no single reinsurer represents an undue level of credit risk. This includes performing periodic due diligence on our reinsurance counterparties as well as internal credit assessments on counterparties with which we have material exposure. While reinsurance arrangements provide for the recovery of claims arising from the liabilities ceded, we retain primary responsibility to the policyholders. Specific insurance risks and our risk management strategies are discussed below in further detail. The sensitivities provided below reflect the impact of any applicable ceded reinsurance arrangements. 7.A.i Policyholder Behaviour Risk Risk Description We can incur losses due to adverse policyholder behaviour relative to the assumptions used in the pricing and valuation of products with regard to lapse of policies or exercise of other embedded policy options. Uncertainty in policyholder behaviour can arise from several sources including unexpected events in the policyholder's life circumstances, the general level of economic activity (whether higher or lower than expected), changes in the financial and capital markets, changes in pricing and availability of current products, the introduction of new products, changes in underwriting technology and standards, as well as changes in our financial strength or reputation. Uncertainty in future cash flows affected by policyholder behaviour can be further exacerbated by irrational behaviour during times of economic turbulence or at key option exercise points in the life of an insurance contract. For individual life insurance products where fewer terminations would be financially adverse to us, shareholders' net income and equity would be decreased by about $270 (2021 — $270) if the termination rate assumption were reduced by 10%. For products where more terminations would be financially adverse to us, shareholders' net income and equity would be decreased by about $235 (2021 — $225) if the termination rate assumption were increased by 10%. These sensitivities reflect the impact of any applicable ceded reinsurance arrangements and the IFRS 4 accounting standards. Adoption of IFRS 17 may result in changes to the magnitude or direction of the reported net income sensitivities. Policyholder Behaviour Risk Management Governance and Control Various types of provisions are built into many of our products to reduce the impact of uncertain policyholder behaviour. These provisions include: • Surrender charges that adjust the payout to the policyholder by taking into account prevailing market conditions. • Limits on the amount that policyholders can surrender or borrow. • Restrictions on the timing of policyholders' ability to exercise certain options. • Restrictions on both the types of funds Clients can select and the frequency with which they can change funds. • Policyholder behaviour risk is also mitigated through reinsurance on some insurance contracts. Internal experience studies are used to monitor, review and update policyholder behaviour assumptions as needed, which could result in updates to policy liabilities. 7.A.ii Mortality and Morbidity Risk Risk Description Mortality and morbidity risk is the risk that future experience could be worse than the assumptions used in the pricing and valuation of products. Mortality and morbidity risk can arise in the normal course of business through random fluctuation in realized experience, through catastrophes, as a result of a pandemic, or in association with other risk factors such as product development and pricing or model risk. Adverse mortality and morbidity experience could also occur through systemic anti-selection, which could arise due to poor plan design, or underwriting process failure or the development of investor-owned and secondary markets for life insurance policies. External factors could adversely affect our life insurance, health insurance, critical illness, disability, long-term care insurance and annuity businesses. Morbidity experience could be unfavourably impacted by external events, such as pandemics, increases in disability claims during economic slowdowns and increases in high medical treatment costs and growth in utilization of specialty drugs. This introduces the potential for adverse financial volatility in our financial results. For life insurance products, a 2% increase in the best estimate assumption would decrease shareholders' net income and equity by about $75 (2021 — $25). This sensitivity reflects the impact of any applicable ceded reinsurance arrangements and the IFRS 4 accounting standards. Adoption of IFRS 17 may result in changes to the magnitude or direction of the reported net income sensitivities. For products where morbidity is a significant assumption, a 5% adverse change in the assumptions would reduce shareholders' net income and equity by about $265 (2021 — $255). This sensitivity reflects the impact of any applicable ceded reinsurance arrangements and the IFRS 4 accounting standards. Adoption of IFRS 17 may result in changes to the magnitude or direction of the reported net income sensitivities. Mortality and Morbidity Risk Management Governance and Control Detailed uniform underwriting procedures have been established to determine the insurability of applicants and to manage exposure to large claims. These underwriting requirements are regularly scrutinized against industry guidelines and oversight is provided through a corporate underwriting and claim management function. We do not have a high degree of concentration risk to single individuals or groups due to our well-diversified geographic and business mix. The largest portion of mortality risk within the Company is in North America. Individual and group insurance policies are underwritten prior to initial issue and renewals, based on risk selection, plan design, and rating techniques. The Insurance Risk Policy approved by the Risk Committee includes limits on the maximum amount of insurance that may be issued under one policy and the maximum amount that may be retained. These limits vary by geographic region and amounts in excess of limits are reinsured to ensure there is no exposure to unreasonable concentration of risk. 7.A.iii Longevity Risk Risk Description Longevity risk is the potential for economic loss, accounting loss or volatility in earnings arising from adverse changes in rates of mortality improvement relative to the assumptions used in the pricing and valuation of products. This risk can manifest itself slowly over time as socioeconomic conditions improve and medical advances continue. It could also manifest itself more quickly, for example, due to medical breakthroughs that significantly extend life expectancy. Longevity risk affects contracts where benefits or costs are based upon the likelihood of survival and higher than expected improvements in policyholder life expectancy could therefore increase the ultimate cost of these benefits (for example, annuities, pensions, pure endowments, reinsurance, segregated funds, and specific types of health contracts). Additionally, our longevity risk exposure is increased for certain annuity products such as guaranteed annuity options by an increase in equity market levels. For annuities products for which lower mortality would be financially adverse to us, a 2% decrease in the mortality assumption would decrease shareholders' net income and equity by about $120 (2021 — $150). These sensitivities reflect the impact of any applicable ceded reinsurance arrangements and the IFRS 4 accounting standards. Adoption of IFRS 17 may result in changes to the magnitude or direction of the reported net income sensitivities. Longevity Risk Management Governance and Control To improve management of longevity risk, we monitor research in the fields that could result in a change in expected mortality improvement. Stress-testing techniques are used to measure and monitor the impact of extreme mortality improvement on the aggregate portfolio of insurance and annuity products as well as our own pension plans. 7.A.iv Product Design and Pricing Risk Risk Description Product design and pricing risk is the risk a product does not perform as expected, causing adverse financial consequences. This risk may arise from deviations in realized experience versus assumptions used in the pricing of products. Risk factors include uncertainty concerning future investment yields, policyholder behaviour, mortality and morbidity experience, sales levels, mix of business, expenses and taxes. Although some of our products permit us to increase premiums or adjust other charges and credits during the life of the policy or contract, the terms of these policies or contracts may not allow for sufficient adjustments to maintain expected profitability. This could have an adverse effect on our profitability and capital position. Product Design and Pricing Governance and Control Our Product Design and Pricing Policy, approved by the Risk Committee, establishes the framework governing our product design and pricing practices and is designed to align our product offerings with our strategic objectives and risk-taking philosophy. Consistent with this policy, product development, design and pricing processes have been implemented throughout the Company. New products follow a stage-gate process with defined management approvals based on the significance of the initiative. Each initiative is subject to a risk assessment process to identify key risks and risk mitigation requirements, and is reviewed by multiple stakeholders. Additional governance and control procedures are listed below: • Pricing models, methods, and assumptions are subject to periodic internal peer reviews. • Experience studies, sources of earnings analysis, and product dashboards are used to monitor actual experience against those assumed in pricing and valuation. • On experience rated, participating, and adjustable products, emerging experience is reflected through changes in policyholder dividend scales as well as other policy adjustment mechanisms such as premium and benefit levels. • Limits and restrictions may be introduced into the design of products to mitigate adverse policyholder behaviour or apply upper thresholds on certain benefits. 7.A.v Expense Risk Risk Description Expense risk is the risk that future expenses are higher than the assumptions used in the pricing and valuation of products. This risk can arise from general economic conditions, unexpected increases in inflation, slower than anticipated growth, or reduction in productivity leading to increases in unit expenses. Expense risk occurs in products where we cannot or will not pass increased costs onto the Client and will manifest itself in the form of a liability increase or a reduction in expected future profits The sensitivity of liabilities for insurance contracts to a 5% increase in unit expenses would result in a decrease in shareholders' net income and equity of about $175 (2021 — $165). These sensitivities reflect the impact of any applicable ceded reinsurance arrangements and the IFRS 4 accounting standards. Adoption of IFRS 17 may result in changes to the magnitude or direction of the reported net income sensitivities. Expenses Risk Management Governance and Control We closely monitor expenses through an annual budgeting process and ongoing monitoring of any expense gaps between unit expenses assumed in pricing and actual expenses. 7.A.vi Reinsurance Risk Risk Description We purchase reinsurance for certain risks underwritten by our various insurance businesses. Reinsurance risk is the risk of financial loss due to adverse developments in reinsurance markets (for example, discontinuance or diminution of reinsurance capacity, or an increase in the cost of reinsurance), insolvency of a reinsurer or inadequate reinsurance coverage. Changes in reinsurance market conditions, including actions taken by reinsurers to increase rates on existing and new coverage and our ability to obtain appropriate reinsurance, may adversely impact the availability or cost of maintaining existing or securing new reinsurance capacity, with adverse impacts on our business strategies, profitability and financial position. There is a possibility of rate increases or renegotiation of some of the legacy reinsurance contracts by a few of our reinsurers, as they continue to review and optimize their business models. In addition, changes to the regulatory treatment of reinsurance arrangements could have an adverse impact on our capital position. Reinsurance Risk Management Governance and Control We have an Insurance Risk Policy and an Investment & Credit Risk Policy approved by the Risk Committee, which set acceptance criteria and processes to monitor the level of reinsurance ceded to any single reinsurer. These policies also set minimum criteria for determining which reinsurance companies qualify as suitable reinsurance counterparties having the capability, expertise, governance practices and financial capacity to assume the risks being considered. Additionally, these policies require that all agreements include provisions to allow action to be taken, such as recapture of ceded risk (at a potential cost to the Company), in the event that the reinsurer loses its legal ability to carry on business through insolvency or regulatory action. Periodic due diligence is performed on the reinsurance counterparties with which we do business and internal credit assessments are performed on reinsurance counterparties with which we have material exposure. Reinsurance counterparty credit exposures are monitored closely and reported annually to the Risk Committee. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2022 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Other Assets | 8. Other Assets As at December 31, 2022 2021 Accounts receivable $ 2,833 $ 1,632 Investment income due and accrued 1,315 1,104 Property and equipment 607 612 Right-of-use assets 753 695 Deferred acquisition costs (1) 158 172 Prepaid expenses 1,089 406 Premium receivable 842 637 Accrued post-retirement benefit assets (Note 25) 98 83 Other 115 93 Total other assets $ 7,810 $ 5,434 (1) Amortization of deferred acquisition cost charged to income during the year amounted to $53 in 2022 (2021 — $23). |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Intangible Assets [Abstract] | |
Goodwill and Intangible Assets | 9. Goodwill and Intangible Assets 9.A Goodwill Changes in the carrying amount of goodwill acquired through business combinations by reportable business segment are as follows: Canada U.S. Asia Asset Corporate Total Balance, January 1, 2021 $ 2,607 $ 1,062 $ 665 $ 1,551 $ 187 $ 6,072 Acquisitions (Note 3) — 53 3 423 — 479 Foreign exchange rate movements — (7) (9) (15) (3) (34) Balance, December 31, 2021 $ 2,607 $ 1,108 $ 659 $ 1,959 $ 184 $ 6,517 Acquisitions (Note 3) — 2,030 — — — 2,030 Impairment (1) — — — — (170) (170) Foreign exchange rate movements — 226 41 75 (14) 328 Balance, December 31, 2022 $ 2,607 $ 3,364 $ 700 $ 2,034 $ — $ 8,705 (1) The sale of Sun Life UK resulted in an impairment charge of $170 for the UK CGU within Corporate. See Note 3 for details. The carrying amounts of goodwill allocated to our CGUs or groups of CGUs are as follows: As at December 31, 2022 2021 Canada $ 2,607 $ 2,607 U.S. (1) Group Benefits 1,132 1,108 Dental 2,232 — Asia 700 659 Asset Management MFS 513 483 SLC Management 1,521 1,476 Corporate UK — 184 Total $ 8,705 $ 6,517 (1) Reflects a change in presentation in our U.S. business segment as two CGU groups effective June 1, 2022. Goodwill acquired in business combinations is allocated to the CGUs or groups of CGUs that are expected to benefit from the synergies of the particular acquisition. Goodwill is assessed for impairment annually or more frequently if events or circumstances occur that may result in the recoverable amount of a CGU falling below its carrying value. The recoverable amount is the higher of fair value less costs of disposal and value in use. We use fair value less costs of disposal as the recoverable amount. We use the best evidence of fair value less costs of disposal as the price obtainable for the sale of a CGU, or group of CGUs. Fair value less costs of disposal is initially assessed by looking at recently completed market comparable transactions. In the absence of such comparables, we use either an appraisal methodology (with market assumptions commonly used in the valuation of insurance companies or asset management companies) or a valuation multiples methodology. The fair value measurements are categorized in Level 3 of the fair value hierarchy. The most recent calculations from 2018 for certain CGUs and groups of CGUs were carried forward and used in the impairment test in the current period as: (i) the recoverable amount for these CGUs and groups of CGUs exceeded the carrying amount by a substantial margin, (ii) the assets and liabilities making up the CGUs and groups of CGUs had not changed significantly, and (iii) the likelihood that the carrying value would exceed the recoverable amount was remote, based on an analysis of events that have occurred and circumstances that have changed. The key drivers impacting the recoverable amount from 2018 are consistent with the key assumptions below. Under the appraisal methodology, fair value is assessed based on best estimates of future income, expenses, level and cost of capital over the lifetime of the policies and, where appropriate, adjusted for items such as transaction costs. The value ascribed to new business is based on sales anticipated in our business plans, sales projections for the valuation period based on reasonable growth assumptions, and anticipated levels of profitability of that new business. In calculating the value of new business, future sales are projected for 10 to 15 years . In some instances, market multiples are used to approximate the explicit projection of new business. The discount rates applied reflect the nature of the environment for that CGU. The discount rates used range from 9.25% to 12.50% (after tax). More established CGUs with a stronger brand and competitive market position use discount rates at the low end of the range and CGUs with a weaker competitive position use discount rates at the high end of the range. The capital levels used are aligned with our business objectives. Under the valuation multiples methodology, fair value is assessed with reference to multiples or ratios of comparable businesses. For life insurers and asset managers, these valuation multiples and ratios may include price-to-earnings or price-to-assets-under-management measures. This assessment takes into consideration a variety of relevant factors and assumptions, including expected growth, risk, and market conditions among others. The price-to-earnings multiples used range from 10.5 to 11.5. The price-to-assets-under-management ratios used range from 1.3% to 2.0%. Judgment is used in estimating the recoverable amounts of CGUs and the use of different assumptions and estimates could result in material adjustments to the valuation of CGUs and the size of any impairment. Any material change in the key assumptions including those for capital, discount rates, the value of new business, and expenses, as well as cash flow projections used in the determination of recoverable amounts, may result in impairment charges, which could be material. In considering the sensitivity of the key assumptions above, management determined that there is no reasonably possible change in any of the above that would result in the recoverable amount of any of the CGUs to be less than its carrying amount. 9.B Intangible Assets Changes in intangible assets are as follows: Finite life Internally Other Indefinite Total Gross carrying amount Balance, January 1, 2021 $ 1,070 $ 1,634 $ 938 $ 3,642 Additions 219 471 — 690 Acquisitions — 271 153 424 Disposals (24) — — (24) Foreign exchange rate movements — (9) (10) (19) Balance, December 31, 2021 $ 1,265 $ 2,367 $ 1,081 $ 4,713 Additions 206 23 — 229 Acquisitions 232 999 — 1,231 Disposals (1) — — (1) Foreign exchange rate movements 59 153 36 248 Balance, December 31, 2022 $ 1,761 $ 3,542 $ 1,117 $ 6,420 Accumulated amortization and impairment losses Balance, January 1, 2021 $ (561) $ (590) $ (14) $ (1,165) Amortization charge for the year (79) (114) — (193) Disposals 24 — — 24 Impairment of intangible assets — — (9) (9) Foreign exchange rate movements 1 (1) — — Balance, December 31, 2021 $ (615) $ (705) $ (23) $ (1,343) Amortization charge for the year (113) (174) — (287) Disposals 1 — — 1 Impairment of intangible assets (16) (2) — (18) Foreign exchange rate movements (22) (25) (2) (49) Balance, December 31, 2022 $ (765) $ (906) $ (25) $ (1,696) Net carrying amount, end of period: As at December 31, 2021 $ 650 $ 1,662 $ 1,058 $ 3,370 As at December 31, 2022 $ 996 $ 2,636 $ 1,092 $ 4,724 The components of the intangible assets are as follows: As at December 31, 2022 2021 Finite life intangible assets: Distribution, sales potential of field force $ 281 $ 295 Client relationships and asset administration contracts 2,355 1,367 Internally generated software 996 650 Total finite life intangible assets 3,632 2,312 Indefinite life intangible assets: Fund management contracts (1) 1,092 1,058 Total indefinite life intangible assets 1,092 1,058 Total intangible assets $ 4,724 $ 3,370 (1) Fund management contracts are attributable to Asset Management, where its competitive position in, and the stability of, its markets support their classification as indefinite life intangible assets. |
Insurance Contract Liabilities
Insurance Contract Liabilities and Investment Contract Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Insurance Contracts [Abstract] | |
Insurance Contract Liabilities and Investment Contract Liabilities | 10. Insurance Contract Liabilities and Investment Contract Liabilities 10.A Insurance Contract Liabilities 10.A.i Description of Business The company sells a variety of insurance contracts that include all forms of life, health and critical illness insurance sold to individuals and groups, life contingent annuities, accumulation annuities, and segregated fund products with guarantees. 10.A.ii Methods and Assumptions General The liabilities for insurance contracts represent the estimated amounts which, together with estimated future premiums and net investment income, will provide for outstanding claims, estimated future benefits, policyholders' dividends, taxes (other than income taxes), and expenses on in-force insurance contracts. In determining our liabilities for insurance contracts, assumptions must be made about mortality and morbidity rates, lapse and other policyholder behaviour ("policyholder behaviour"), interest rates, equity market performance, asset default, inflation, expenses, and other factors over the life of our products. Most of these assumptions relate to events that are anticipated to occur many years in the future. Assumptions require significant judgment and regular review and, where appropriate, revision. We use best estimate assumptions for expected future experience and apply margins for adverse deviations to provide for uncertainty in the choice of the best estimate assumptions. The amount of insurance contract liabilities related to the application of margins for adverse deviations to best estimate assumptions is called a provision for adverse deviations. Best Estimate Assumptions Best estimate assumptions are intended to be current, neutral estimates of the expected outcome as guided by Canadian actuarial standards of practice. The choice of best estimate assumptions takes into account current circumstances, past experience data (Company and/or industry), the relationship of past to expected future experience, anti-selection, the relationship among assumptions, and other relevant factors. For assumptions on economic matters, the assets supporting the liabilities and the expected policy for asset-liability management are relevant factors. Margins for Adverse Deviations The appropriate level of margin for adverse deviations on an assumption is guided by Canadian actuarial standards of practice. For most assumptions, the standard range of margins for adverse deviations is 5% to 20% of the best estimate assumption, and the actuary chooses from within that range based on a number of considerations related to the uncertainty in the determination of the best estimate assumption. The level of uncertainty, and hence the margin chosen, will vary by assumption and by line of business and other factors. Considerations that would tend to indicate a choice of margin at the high end of the range include: • The statistical credibility of the Company's experience is too low to be the primary source of data for choosing the best estimate assumption • Future experience is difficult to estimate • The cohort of risks lacks homogeneity • Operational risks adversely impact the ability to estimate the best estimate assumption • Past experience may not be representative of future experience and the experience may deteriorate Provisions for adverse deviations in future interest rates are included by testing a number of scenarios of future interest rates, some of which are prescribed by Canadian actuarial standards of practice, and determining the liability based on the range of possible outcomes. A scenario of future interest rates includes, for each forecast period between the statement of financial position date and the last liability cash flow, interest rates for risk-free assets, premiums for asset default, rates of inflation, and an investment strategy consistent with the Company's investment policy. The starting point for all future interest rate scenarios is consistent with the current market environment. If few scenarios are tested, the liability would be at least as great as the largest of the outcomes. If many scenarios are tested, the liability would be within a range defined by the average of the outcomes that are above the 60th percentile of the range of outcomes and the corresponding average for the 80th percentile. Provisions for adverse deviations in future equity returns are included by scenario testing or by applying margins for adverse deviations. In blocks of business where the valuation of liabilities uses scenario testing of future equity returns, the liability would be within a range defined by the average of the outcomes that are above the 60th percentile of the range of outcomes and the corresponding average for the 80th percentile. In blocks of business where the valuation of liabilities does not use scenario testing of future equity returns, the margin for adverse deviations on common share dividends is between 5% and 20%, and the margin for adverse deviations on capital gains would be 20% plus an assumption that those assets reduce in value by 20% to 50% at the time when the reduction is most adverse. A 30% reduction is appropriate for a diversified portfolio of North American common shares and, for other portfolios, the appropriate reduction depends on the volatility of the portfolio relative to a diversified portfolio of North American common shares. In choosing margins, we ensure that, when taken one at a time, each margin is reasonable with respect to the underlying best estimate assumption and the extent of uncertainty present in making that assumption, and also that, in aggregate, the cumulative impact of the margins for adverse deviations is reasonable with respect to the total amount of our insurance contract liabilities. Our margins are generally stable over time and are generally only revised to reflect changes in the level of uncertainty in the best estimate assumptions. Our margins tend to be at the mid-range, with the higher range used where there is greater uncertainty. When considering the aggregate impact of margins, the actuary assesses the consistency of margins for each assumption across each block of business to ensure there is no double counting or omission and to avoid choosing margins that might be mutually exclusive. In particular, the actuary chooses similar margins for blocks of business with similar characteristics, and also chooses margins that are consistent with other assumptions, including assumptions about economic factors. The actuary is guided by Canadian actuarial standards of practice in making these professional judgments about the reasonableness of margins for adverse deviations. The best estimate assumptions and margins for adverse deviations are reviewed at least annually and revisions are made when appropriate. The choice of assumptions underlying the valuation of insurance contract liabilities is subject to external actuarial peer review. Mortality Mortality refers to the rates at which death occurs for defined groups of people. Life insurance mortality assumptions are generally based on the past five to ten years of experience. Our experience is combined with industry experience where our own experience is insufficient to be statistically valid. Assumed mortality rates for life insurance and annuity contracts include assumptions about future mortality improvement based on recent trends in population mortality and our outlook for future trends. Morbidity Morbidity refers to both the rates of accident or sickness and the rates of recovery therefrom. Most of our disability insurance is marketed on a group basis. We offer critical illness policies on an individual basis in Canada and Asia, long-term care on an individual basis in Canada, and medical stop-loss insurance is offered on a group basis in the U.S. In Canada, group morbidity assumptions are based on our five-year average experience, modified to reflect any emerging trend in recovery rates. For long-term care and critical illness insurance, assumptions are developed in collaboration with our reinsurers and are largely based on their experience. In the U.S., our experience is used for both medical stop-loss and disability assumptions, with some consideration of industry experience. Policyholder Behaviour Lapse Policyholders may allow their policies to lapse prior to the end of the contractual coverage period by choosing not to continue to pay premiums or by surrendering their policy for the cash surrender value. Assumptions for lapse experience on life insurance are generally based on our five-year average experience. Lapse rates vary by plan, age at issue, method of premium payment, and policy duration. Premium Payment Patterns For universal life contracts, it is necessary to set assumptions about premium payment patterns. Studies prepared by industry or the actuarial profession are used for products where our experience is insufficient to be statistically valid. Premium payment patterns usually vary by plan, age at issue, method of premium payment, and policy duration. Expense Future policy-related expenses include the costs of premium collection, claims adjudication and processing, actuarial calculations, preparation and mailing of policy statements, and related indirect expenses and overhead. Expense assumptions are mainly based on our recent experience using an internal expense allocation methodology. Inflationary increases assumed in future expenses are consistent with the future interest rates used in scenario testing. Investment Returns Interest Rates We generally maintain distinct asset portfolios for each major line of business. In the valuation of insurance contract liabilities, the future cash flows from insurance contracts and the assets that support them are projected under a number of interest rate scenarios, some of which are prescribed by Canadian actuarial standards of practice. Reinvestments and disinvestments take place according to the specifications of each scenario, and the liability is set based on the range of possible outcomes. Non-Fixed Income Rates of Return We are exposed to equity markets through our segregated fund products (including variable annuities) that provide guarantees linked to underlying fund performance and through insurance products where the insurance contract liabilities are supported by non-fixed income assets. For segregated fund products (including variable annuities), we have implemented hedging programs involving the use of derivative instruments to mitigate a large portion of the equity market risk associated with the guarantees. The cost of these hedging programs is reflected in the liabilities. The equity market risk associated with anticipated future fee income is not hedged. The majority of non-fixed income assets that are designated as FVTPL support our participating and universal life products where investment returns are passed through to policyholders through routine changes in the amount of dividends declared or in the rate of interest credited. In these cases, changes in non-fixed income asset values are largely offset by changes in insurance contract liabilities. Asset Default As required by Canadian actuarial standards of practice, insurance contract liabilities include a provision for possible future default of the assets supporting those liabilities. The amount of the provision for asset default included in the insurance contract liabilities is based on possible reductions in future investment yield that vary by factors such as type of asset, asset credit quality (rating), duration, and country of origin. The asset default assumptions are comprised of a best estimate plus a margin for adverse deviations, and are intended to provide for loss of both principal and income. Best estimate asset default assumptions by asset category and geography are derived from long-term studies of industry experience and the Company's experience. Margins for adverse deviation are chosen from the standard range (of 25% to 100%) as recommended by Canadian actuarial standards of practice based on the amount of uncertainty in the choice of best estimate assumption. The credit quality of an asset is based on external ratings if available (public bonds) and internal ratings if not (mortgages and loans). Any assets without ratings are treated as if they are rated below investment grade. In contrast to asset impairment provisions and changes in FVTPL assets arising from impairments, both of which arise from known credit events, the asset default provision in the insurance contract liabilities covers losses related to possible future (unknown) credit events. Canadian actuarial standards of practice require the asset default provision to be determined taking into account known impairments that are recognized elsewhere on the statement of financial position. The asset default provision included in the insurance contract liabilities is reassessed each reporting period in light of impairments, changes in asset quality ratings, and other events that occurred during the period. 10.A.iii Insurance Contract Liabilities As at December 31, 2022 Canada U.S. Asia Corporate (1) Total Individual participating life $ 27,394 $ 5,060 $ 11,574 $ 634 $ 44,662 Individual non-participating life and health 13,681 12,808 11,397 266 38,152 Group life and health 11,693 5,599 33 (5) 17,320 Individual annuities 8,384 18 6 3,074 11,482 Group annuities 19,716 1 67 — 19,784 Insurance contract liabilities before other policy liabilities 80,868 23,486 23,077 3,969 131,400 Add: Other policy liabilities (2) 3,583 2,487 2,702 246 9,018 Total insurance contract liabilities $ 84,451 $ 25,973 $ 25,779 $ 4,215 $ 140,418 (1) Primarily business from the UK and run-off reinsurance operations. Includes UK business of $563 for Individual participating life, $154 for Individual non-participating life and health, $2,918 for Individual annuities, and $200 for Other policy liabilities. (2) Consists of amounts on deposit, policy benefits payable, provisions for unreported claims, provisions for policyholder dividends, and provisions for experience rating refunds. As at December 31, 2021 Canada U.S. Asia Corporate (1) Total Individual participating life $ 28,205 $ 5,150 $ 12,982 $ 860 $ 47,197 Individual non-participating life and health 15,735 14,196 11,774 329 42,034 Group life and health 11,682 5,580 34 17 17,313 Individual annuities 9,538 16 5 4,729 14,288 Group annuities 18,765 5 69 — 18,839 Insurance contract liabilities before other policy liabilities 83,925 24,947 24,864 5,935 139,671 Add: Other policy liabilities (2) 3,559 1,847 2,523 211 8,140 Total insurance contract liabilities $ 87,484 $ 26,794 $ 27,387 $ 6,146 $ 147,811 (1) Primarily business from the UK and run-off reinsurance operations. Includes UK business of $771 for Individual participating life, $207 for Individual non-participating life and health, $4,546 for Individual annuities, and $164 for Other policy liabilities. (2) Consists of amounts on deposit, policy benefits payable, provisions for unreported claims, provisions for policyholder dividends, and provisions for experience rating refunds. For the years ended December 31, 2022 2021 Insurance Reinsurance Net Insurance Reinsurance Net Balances before Other policy liabilities and assets as at January 1, $ 139,671 $ 2,905 $ 136,766 $ 137,733 $ 3,126 $ 134,607 Change in balances on in-force policies (15,530) (137) (15,393) (1,642) (18) (1,624) Balances arising from new policies 3,473 81 3,392 3,948 74 3,874 Method and assumption changes 950 1,007 (57) 131 (142) 273 Increase (decrease) in Insurance contract liabilities and Reinsurance assets (11,107) 951 (12,058) 2,437 (86) 2,523 Other (1) (2) — (2) — (109) 109 Foreign exchange rate movements 2,838 213 2,625 (499) (26) (473) Balances before Other policy liabilities and assets 131,400 4,069 127,331 139,671 2,905 136,766 Other policy liabilities and assets 9,018 732 8,286 8,140 778 7,362 Total Insurance contract liabilities and Reinsurance assets, December 31 $ 140,418 $ 4,801 $ 135,617 $ 147,811 $ 3,683 $ 144,128 (1) Recapture of reinsurance contracts. 10.A.v Impact of Method and Assumption Changes Impacts of method and assumption changes on Insurance contract liabilities, net of Reinsurance assets, are as follows: For the year ended December 31, 2022 Net increase (decrease) before income taxes Description Mortality / Morbidity $ (96) Updates to reflect mortality/morbidity experience in all jurisdictions. The largest items were favourable mortality impacts in the UK in Corporate and in Group Retirement Services in Canada offset partially by adverse morbidity impacts in Sun Life Health in Canada. Policyholder behaviour 71 Updates to lapse and policyholder behaviour in all jurisdictions. The largest item was an adverse lapse impact in Vietnam in Asia. Expenses 9 Updates to reflect expense experience. Investment returns 13 Updates to various investment-related assumptions. Model enhancements and other (54) Various enhancements and methodology changes. Total impact $ (57) For the year ended December 31, 2021 Net increase (decrease) before income taxes Description Mortality / Morbidity $ (89) Updates to reflect mortality/morbidity experience in all jurisdictions. Policyholder behaviour 219 Updates to policyholder behaviour in all jurisdictions. The largest item was in U.S. In-force Management. Expenses (202) Updates to reflect expense experience and margins in all jurisdictions. The largest item was a reduction in expense margins. Investment returns 416 Updates to various investment-related assumptions across the Company. The largest items were the updates to promulgated Ultimate Reinvestment Rate, promulgated maximum net credit spreads, and a reduction to the best estimate real estate assumption in all jurisdictions. Model enhancements and other (71) Various enhancements and methodology changes across all jurisdictions. Total impact $ 273 10.B.i Description of Business The following are the types of investment contracts in-force: • Term certain payout annuities in Canada • Guaranteed Investment Contracts in Canada • Unit-linked products issued in the UK and Hong Kong • Non-unit-linked pensions contracts issued in the UK and Hong Kong 10.B.ii Methods and Assumptions Investment Contracts with Discretionary Participation Features Investment contracts with DPF are measured using the same approach as insurance contracts. Investment Contracts without Discretionary Participation Features Investment contracts without DPF are measured at FVTPL if by doing so, a potential accounting mismatch is eliminated or significantly reduced or if the contract is managed on a fair value basis. Other investment contracts without DPF are measured at amortized cost. The fair value liability is measured through the use of prospective discounted cash-flow techniques. For unit-linked contracts, the fair value liability is equal to the current unit fund value, plus additional non-unit liability amounts on a fair value basis if required. For non-unit-linked contracts, the fair value liability is equal to the present value of cash flows. Amortized cost is measured at the date of initial recognition as the fair value of consideration received, less the net effect of principal payments such as transaction costs and front-end fees. At each reporting date, the amortized cost liability is measured as the present value of future cash flows discounted at the effective interest rate where the effective interest rate is the rate that equates the discounted cash flows to the liability at the date of initial recognition. 10.B.iii Investment Contract Liabilities As at December 31, 2022 Canada Asia Corporate Total Individual participating life $ — $ — $ 4 $ 4 Individual non-participating life and health — 187 2 189 Individual annuities 2,550 — 35 2,585 Group annuities — 536 — 536 Total investment contract liabilities $ 2,550 $ 723 $ 41 $ 3,314 For the year ended December 31, 2022, Investment contract liabilities of $3,314 are comprised of investment contracts with DPF of $754, investment contracts without DPF measured at amortized cost of $2,550, and investment contracts without DPF measured at fair value of $10. As at December 31, 2021 Canada Asia Corporate Total Individual participating life $ — $ — $ 4 $ 4 Individual non-participating life and health — 235 2 237 Individual annuities 2,487 1 37 2,525 Group annuities — 602 — 602 Total investment contract liabilities $ 2,487 $ 838 $ 43 $ 3,368 For the year ended December 31, 2021, Investment contract liabilities of $3,368 are comprised of investment contracts with DPF of $872, investment contracts without DPF measured at amortized cost of $2,487, and investment contracts without DPF measured at fair value of $9. 10.B.iv Changes in Investment Contract Liabilities Changes in investment contract liabilities without DPF are as follows: For the years ended December 31, 2022 2021 Measured at Measured at Measured at Measured at Balance as at January 1 $ 9 $ 2,487 $ 2 $ 2,690 Deposits — 443 — 303 Interest — 57 — 60 Withdrawals — (444) — (570) Fees — (5) — (7) Change in fair value 1 — 7 — Other — 12 — 10 Foreign exchange rate movements — — — 1 Balance as at December 31 $ 10 $ 2,550 $ 9 $ 2,487 Changes in investment contract liabilities with DPF are as follows: For the years ended December 31, 2022 2021 Balance as at January 1 $ 872 $ 497 Change in liabilities on in-force policies (165) (89) Increase (decrease) in liabilities (165) (89) Acquisitions (Note 3) — 471 Foreign exchange rate movements 47 (7) Balance as at December 31 $ 754 $ 872 10.C Gross Claims and Benefits Paid For the years ended December 31, 2022 2021 Maturities and surrenders $ 3,750 $ 3,205 Annuity payments 2,124 2,017 Death and disability benefits 4,950 4,876 Health benefits 9,588 7,246 Policyholder dividends and interest on claims and deposits 1,632 1,378 Total gross claims and benefits paid $ 22,044 $ 18,722 10.D Total Assets Supporting Liabilities and Equity The following tables show the total assets supporting liabilities for the product lines shown (including insurance contract and investment contract liabilities) and assets supporting equity and other: As at December 31, 2022 Debt Equity Mortgages Investment Other Total Individual participating life $ 23,513 $ 4,836 $ 10,802 $ 6,345 $ 4,885 $ 50,381 Individual non-participating life and health 17,438 1,804 15,029 3,103 11,160 48,534 Group life and health 7,057 24 10,412 117 4,252 21,862 Individual annuities 7,822 34 6,573 — 819 15,248 Group annuities 9,046 100 10,444 109 1,469 21,168 Equity and other 11,026 350 3,001 428 33,616 48,421 Total assets $ 75,902 $ 7,148 $ 56,261 $ 10,102 $ 56,201 $ 205,614 As at December 31, 2021 Debt Equity Mortgages Investment Other Total Individual participating life $ 26,715 $ 5,374 $ 9,559 $ 5,932 $ 4,801 $ 52,381 Individual non-participating life and health 23,716 1,947 13,885 2,614 8,310 50,472 Group life and health 7,598 30 9,556 92 3,677 20,953 Individual annuities 10,314 40 6,435 — 907 17,696 Group annuities 9,612 111 9,198 24 1,305 20,250 Equity and other 10,772 1,611 3,059 447 27,733 43,622 Total assets $ 88,727 $ 9,113 $ 51,692 $ 9,109 $ 46,733 $ 205,374 10.E Changes in Insurance Contract Liabilities, Investment Contract Liabilities, Reinsurance Assets, and Segregated Funds Changes in the balances of our insurance contract liabilities and investment contract liabilities, including the net transfers to (from) segregated funds, as well as changes in our reinsurance assets, consist of the following: For the years ended December 31, 2022 2021 Increase (decrease) in insurance contract liabilities $ (11,107) $ 2,437 Decrease (increase) in reinsurance assets (951) 86 Increase (decrease) in investment contract liabilities (107) (22) Net transfer to (from) segregated funds (1,149) (351) Total changes in insurance contract liabilities, investment contract liabilities, reinsurance assets, and segregated funds $ (13,314) $ 2,150 10.F Role of the Appointed Actuary The Appointed Actuary is appointed by the Board and is responsible for ensuring that the assumptions and methods used in the valuation of policy liabilities and reinsurance recoverables are in accordance with accepted actuarial practice in Canada, applicable legislation, and associated regulations or directives. The Appointed Actuary is required to provide an opinion regarding the appropriateness of the policy liabilities, net of reinsurance recoverables, at the statement dates to meet all policy obligations of the Company. Examination of supporting data for accuracy and completeness and analysis of our assets for their ability to support the amount of policy liabilities, net of reinsurance recoverables, are important elements of the work required to form this opinion. The Appointed Actuary is required each year to investigate the financial condition of the Company and prepare a report for the Board. The 2022 analysis tested our capital adequacy until December 31, 2026, under various adverse economic and business conditions. The Appointed Actuary reviews the calculation of our Life Insurance Capital Adequacy Test ("LICAT") Ratios. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2022 | |
Insurance Contracts [Abstract] | |
Reinsurance | 11. Reinsurance Reinsurance is used primarily to limit exposure to large losses. We have a retention policy that requires that such arrangements be placed with well-established, highly-rated reinsurers. Coverage is well-diversified and controls are in place to manage exposure to reinsurance counterparties. While reinsurance arrangements provide for the recovery of claims arising from the liabilities ceded, we retain primary responsibility to the policyholders. 11.A Reinsurance Assets Reinsurance assets are measured using the amounts and assumptions associated with the underlying insurance contracts and in accordance with the terms of each reinsurance contract. Reinsurance assets are comprised of the following: As at December 31, 2022 Canada U.S. Asia Corporate (1) Total Individual participating life $ 21 $ 18 $ 179 $ — $ 218 Individual non-participating life and health (282) 1,598 38 13 1,367 Group life and health 267 2,212 7 — 2,486 Individual annuities — — — 1 1 Group annuities (3) — — — (3) Reinsurance assets before other policy assets 3 3,828 224 14 4,069 Add: Other policy assets (2) 98 478 117 39 732 Total Reinsurance assets $ 101 $ 4,306 $ 341 $ 53 $ 4,801 (1) Primarily business from the UK and run-off reinsurance operations. Includes UK business of $13 for Individual non-participating life and health, and $1 for Individual annuities. (2) Consists of amounts on deposit, policy benefits payable, provisions for unreported claims, provisions for policyholder dividends, and provisions for experience rating refunds. As at December 31, 2021 Canada U.S. Asia Corporate (1) Total Individual participating life $ — $ 7 $ 214 $ — $ 221 Individual non-participating life and health (547) 838 33 16 340 Group life and health 284 2,018 5 — 2,307 Individual annuities — — — 15 15 Group annuities 22 — — — 22 Reinsurance assets before other policy assets (241) 2,863 252 31 2,905 Add: Other policy assets (2) 95 563 81 39 778 Total Reinsurance assets $ (146) $ 3,426 $ 333 $ 70 $ 3,683 (1) Primarily business from the UK and run-off reinsurance operations. Includes UK business of $16 for Individual non-participating life and health, and $15 for Individual annuities. (2) Consists of amounts on deposit, policy benefits payable, provisions for unreported claims, provisions for policyholder dividends, and provisions for experience rating refunds. There was no impairment of Reinsurance assets in 2022 or 2021. Changes in Reinsurance assets are included in Note 10.A.iv. For the years ended December 31, 2022 2021 Recovered claims and benefits $ 1,961 $ 2,233 Commissions 73 65 Reserve adjustments 22 45 Operating expenses and other 84 82 Total reinsurance (expenses) recoveries $ 2,140 $ 2,425 11.C Reinsurance Gains or Losses We did not enter into reinsurance arrangements that resulted in a gain or loss on inception in 2022 or 2021. |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Other Liabilities | 12. Other Liabilities 12.A Composition of Other Liabilities As at December 31, 2022 2021 Accounts payable $ 2,639 $ 1,866 Bank overdrafts and cash pooling 6 133 Repurchase agreements (Note 5) 2,725 2,324 Accrued expenses and taxes 4,213 4,265 Credit facilities 2,339 441 Borrowed funds (1) 403 432 Accrued post-retirement benefit liability (Note 25) 268 528 Secured borrowings from mortgage securitization (Note 5) 2,158 2,007 Lease liabilities 952 850 Other financial liabilities (Note 5) (2) 1,996 1,810 Obligations for securities borrowing 73 51 Collateralized loan obligation (Note 5) 2,816 1,726 Deferred payments liability 299 330 Other 1,761 1,020 Total other liabilities $ 22,648 $ 17,783 (1) The change in Borrowed funds relates to net cash flow changes of $(34) in 2022 (2021 — $31) and foreign exchange rate movements of $8 in 2022 (2021 — $nil). (2) Comprises financial liabilities related to acquisitions, including put option liabilities and financial liabilities due to NCI. Interest expense related to financial liabilities are $68 in 2022 (2021 — $64). Other financial liabilities include contingent consideration payments and obligations to purchase remaining outstanding shares of certain SLC Management subsidiaries. These amounts are initially measured at fair value. For obligations to purchase remaining outstanding shares, the fair value is based on the expected average EBITDA using multiples in accordance with contractual terms as described in Note 5.A.ii During the year, these amounts were revised to reflect the change in expected cash flows, resulting in an increase in our liability of $96 (2021 — $187), which has been recognized in the Consolidated Statements of Operations. 12.B Borrowed Funds Borrowed funds include the following: As at December 31, Currency of Maturity 2022 2021 Encumbrances on real estate Cdn. dollars Current - 2032 $ 326 $ 323 Encumbrances on real estate U.S. dollars 2023 - 2027 77 109 Total borrowed funds $ 403 $ 432 Interest expense for the borrowed funds was $67 and $22 for 2022 and 2021, respectively. The aggregate maturities of borrowed funds are included in Note 6. |
Senior Debentures and Innovativ
Senior Debentures and Innovative Capital Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Financial Instruments [Abstract] | |
Senior Debentures and Innovative Capital Instruments | 13. Senior Debentures and Innovative Capital Instruments 13.A Senior Debentures (1) The following obligations are included in Senior debentures as at December 31: Interest Earliest par call or Maturity 2022 2021 Sun Life Assurance senior debentures: (2) Issued to Sun Life Capital Trust ("SLCT I") Series B issued June 25, 2002 7.09 % June 30, 2032 (3) 2052 $ 200 $ 200 Fair value $ 215 $ 271 (1) All senior debentures are unsecured. (2) Redemption is subject to regulatory approval. (3) Redeemable in whole or in part on any interest payment date or in whole upon the occurrence of a Regulatory Event or Tax Event, as described in the debenture. Prior to June 30, 2032, the redemption price is the greater of par and a price based on the yield of a corresponding Government of Canada bond plus 0.32%; from June 30, 2032, the redemption price is par. Fair value is determined based on quoted market prices for identical or similar instruments. When quoted market prices are not available, fair value is determined from observable market data by dealers that are typically the market makers. The fair value is categorized in Level 2 of the fair value hierarchy. Interest expense for senior debentures was $14 and $23 for 2022 and 2021, respectively. The senior debentures issued by SLF Inc. are direct senior unsecured obligations and rank equally with other unsecured and unsubordinated indebtedness of SLF Inc. 13.B Innovative Capital Instruments Innovative capital instruments consist of Sun Life ExchangEable Capital Securities ("SLEECS"), which were issued by SLCT I, established as a trust under the laws of Ontario. SLCT I issued Sun Life ExchangEable Capital Securities - Series B ("SLEECS B"), which are units representing an undivided beneficial ownership interest in the assets of that trust. SLEECS B are non-voting except in certain limited circumstances. Holders of the SLEECS B are eligible to receive semi-annual non-cumulative fixed cash distributions. The proceeds of the issuance of the SLEECS B were used by SLCT I to purchase senior debentures of Sun Life Assurance. SLCT I is not consolidated by us. As a result, the innovative capital instruments are not reported on our Consolidated Financial Statements. However, the senior debentures issued by Sun Life Assurance to SLCT I are reported on our Consolidated Financial Statements. The SLEECS B are structured to achieve Tier 1 regulatory capital treatment for SLF Inc. and Sun Life Assurance and, as such, have features of equity capital. No interest payments or distributions will be paid in cash by SLCT I on the SLEECS B if Sun Life Assurance fails to declare regular dividends (i) on its Class B Non-Cumulative Preferred Shares Series A, or (ii) on its public preferred shares, if any are outstanding (each, a "Missed Dividend Event"). If a Missed Dividend Event occurs, the net distributable funds of SLCT I will be distributed to Sun Life Assurance as the holder of Special Trust Securities of that trust. If SLCT I fails to pay in cash the semi-annual interest payments or distributions on the SLEECS B in full for any reason other than a Missed Dividend Event, then, for a specified period of time, Sun Life Assurance will not declare dividends of any kind on any of its public preferred shares, and if no such public preferred shares are outstanding, SLF Inc. will not declare dividends of any kind on any of its preferred shares or common shares. Each SLEECS B unit will be automatically exchanged for 40 non-cumulative perpetual preferred shares of Sun Life Assurance if any one of the following events occurs: (i) proceedings are commenced or an order is made for the winding-up of Sun Life Assurance; (ii) OSFI takes control of Sun Life Assurance or its assets; (iii) Sun Life Assurance’s capital ratios fall below applicable thresholds; or (iv) OSFI directs Sun Life Assurance to increase its capital or provide additional liquidity and Sun Life Assurance either fails to comply with such direction or elects to have the SLEECS B automatically exchanged ("Automatic Exchange Event"). Upon an Automatic Exchange Event, former holders of the SLEECS B will cease to have any claim or entitlement to distributions, interest or principal against SLCT I and will rank as preferred shareholders of Sun Life Assurance in a liquidation of Sun Life Assurance. The table below presents additional significant terms and conditions of the SLEECS: Issuer Issuance date Distribution or interest payment dates Annual yield Redemption date at the issuer’s option Conversion date at the holder’s option Principal amount Sun Life Capital Trust ("SLCT I") (1)(2)(3)(4) SLEECS B June 25, 2002 June 30, December 31 7.093 % June 30, 2007 Any time $ 200 (1) Subject to regulatory approval, SLCT I may (i) redeem any outstanding SLEECS, in whole or in part, on the redemption date specified above or on any distribution date thereafter and (ii) may redeem all, but not part of any class of SLEECS upon occurrence of a Regulatory Event or a Tax Event, prior to the redemption date specified above. (2) The SLEECS B may be redeemed for cash equivalent to (i) the greater of the Early Redemption Price or the Redemption Price if the redemption occurs prior to June 30, 2032 or (ii) the Redemption Price if the redemption occurs on or after June 30, 2032. Redemption Price is equal to one thousand dollars plus the unpaid distributions, other than unpaid distributions resulting from a Missed Dividend Event, to the redemption date. Early Redemption Price for the SLEECS B is the price calculated to provide an annual yield, equal to the yield of a Government of Canada bond issued on the redemption date that has a maturity date of June 30, 2032, plus 32 basis points, plus the unpaid distributions, other than unpaid distributions resulting from a Missed Dividend Event, to the redemption date. (3) The non-cumulative perpetual preferred shares of Sun Life Assurance issued upon an Automatic Exchange Event in respect of the SLEECS B will become convertible, at the option of the holder, into a variable number of common shares of SLF Inc. on distribution dates on or after December 31, 2032. |
Subordinated Debt
Subordinated Debt | 12 Months Ended |
Dec. 31, 2022 | |
Financial Instruments [Abstract] | |
Subordinated Debt | 14. Subordinated Debt The following obligations are included in Subordinated debt as at December 31, and qualify as capital for Canadian regulatory purposes: Interest rate Earliest par call date (1) Maturity 2022 2021 Sun Life Assurance: Issued May 15, 1998 (2) 6.30 % n/a 2028 $ 150 $ 150 Sun Life Financial Inc.: Issued May 29, 2007 (3) 5.40 % May 29, 2037 (4) 2042 398 398 Issued September 19, 2016 (5) 3.05 % September 19, 2023 2028 999 998 Issued November 23, 2017 (6) 2.75 % November 23, 2022 2027 — 400 Issued August 13, 2019 (7) 2.38 % August 13, 2024 2029 749 748 Issued May 8, 2020 (8) 2.58 % May 10, 2027 2032 996 995 Issued October 1, 2020 (9) 2.06 % October 1, 2030 2035 746 746 Issued November 18, 2021 (10) 2.46 % November 18, 2026 2031 498 497 Issued November 18, 2021 (11),(13) 2.80 % November 21, 2028 2033 996 995 Issued November 18, 2021 (12),(13) 3.15 % November 18, 2031 2036 498 498 Issued August 10, 2022 (14) 4.78 % August 10, 2029 2034 646 — Total subordinated debt $ 6,676 $ 6,425 Fair value $ 6,106 $ 6,675 (1) Subject to regulatory approval all obligations are redeemable 5-years after issuance date. From the date noted, the redemption price is par and redemption may only occur on a scheduled interest payment date. (2) 6.30% Debentures, Series 2, due 2028, issued by The Mutual Life Assurance Company of Canada, which subsequently changed its name to Clarica Life Insurance Company ("Clarica") and was amalgamated with Sun Life Assurance. These debentures are redeemable at any time. Prior to May 15, 2028, the redemption price is the greater of par and a price based on the yield of a corresponding Government of Canada bond plus 0.16%. (3) Series 2007-1 Subordinated Unsecured 5.40% Fixed/Floating Debentures due 2042. From May 29, 2037, interest is payable at 1.00% over CDOR. (4) For redemption of the 2007 debentures prior to the date noted, the redemption price is the greater of par and a price based on the yield of a corresponding Government of Canada bond plus 0.25%. (5) Series 2016-2 Subordinated Unsecured 3.05% Fixed/Floating Debentures due 2028. From September 19, 2023, interest is payable at 1.85% over CDOR. Between September 19, 2021 and September 19, 2023, the redemption price is the greater of par and a price based on the yield of a corresponding Government of Canada bond plus 0.52%. (6) Series 2017-1 Subordinated Unsecured 2.75% Fixed/Floating Debentures due 2027. From November 23, 2022, interest is payable at 0.74% over CDOR. On November 23, 2022, SLF Inc. redeemed all of the outstanding $400 principal amount of these debentures in accordance with the redemption terms attached to such debentures. (7) Series 2019-1 Subordinated Unsecured 2.38% Fixed/Floating Debentures due 2029. From August 13, 2024, interest is payable at 0.85% over CDOR. (8) Series 2020-1 Subordinated Unsecured 2.58% Fixed/Floating Debentures due 2032. From May 10, 2027, interest is payable at 1.66% over CDOR. Between May 10, 2025 and May 10, 2027, the redemption price is the greater of par and a price based on the yield of a corresponding Government of Canada bond plus 0.52%. (9) Series 2020-2 Subordinated Unsecured 2.06% Fixed/Floating Debentures due 2035. From October 1, 2030, interest is payable at 1.03% over CDOR. Between October 1, 2025 and October 1, 2030, the redemption price is the greater of par and a price based on the yield of a corresponding Government of Canada bond plus 0.38%. (10) Series 2021-1 Subordinated Unsecured 2.46% Fixed/Floating Debentures due 2031. From November 18, 2026, interest is payable at 0.44% over CDOR. (11) Series 2021-2 Subordinated Unsecured 2.80% Fixed/Floating Debentures due 2033. From November 21, 2028, interest is payable at 0.69% over CDOR. Between November 21, 2026 and November 21, 2028, the redemption price is the greater of par and a price based on the yield of a corresponding Government of Canada bond plus 0.285%. (12) Series 2021-3 Subordinated Unsecured 3.15% Fixed/Floating Debentures due 2036. From November 18, 2031, interest is payable at 0.91% over CDOR. Between November 18, 2026 and November 18, 2031, the redemption price is the greater of par and a price based on the yield of a corresponding Government of Canada bond plus 0.335%. (13) Subject to contractual terms requiring us to redeem the underlying securities, in full, if the closing of the DentaQuest acquisition does not occur. (14) Series 2022-1 Subordinated Unsecured 4.78% Fixed/Floating Debentures due 2034. From August 10, 2029, interest is payable at 1.96% over the Canadian Overnight Repo Rate Average ("CORRA"). Fair value is determined based on quoted market prices for identical or similar instruments. When quoted market prices are not available, fair value is determined from observable market data by dealers that are typically the market makers. The fair value is categorized in Level 2 of the fair value hierarchy. Interest expense on subordinated debt was $198 and $141 for 2022 and 2021, respectively. |
Share Capital
Share Capital | 12 Months Ended |
Dec. 31, 2022 | |
Share Capital, Reserves And Other Equity Interest [Abstract] | |
Share Capital | 15. Share Capital The authorized share capital of SLF Inc. consists of the following: • An unlimited number of common shares without nominal or par value. Each common share is entitled to one vote at meetings of the shareholders of SLF Inc. There are no pre-emptive, redemption, purchase, or conversion rights attached to the common shares. • An unlimited number of Class A and Class B non-voting shares, issuable in series. The Board is authorized before issuing the shares, to fix the number, the consideration per share, the designation of, and the rights and restrictions of the Class A and Class B shares of each series, subject to the special rights and restrictions attached to all the Class A and Class B shares. The Board has authorized 14 series of Class A non-voting preferred shares, 8 of which are outstanding. The common and preferred shares of SLF Inc. qualify as capital for Canadian regulatory purposes. See Note 21. Dividends and Restrictions on the Payment of Dividends Under the Insurance Companies Act (Canada), SLF Inc. and Sun Life Assurance are each prohibited from declaring or paying a dividend on any of its shares if there are reasonable grounds for believing that it is, or by paying the dividend would be, in contravention of: (i) the requirement that it maintains adequate capital and adequate and appropriate forms of liquidity, (ii) any regulations under the Insurance Companies Act (Canada) in relation to capital and liquidity, and (iii) any order by which OSFI directs it to increase its capital or provide additional liquidity. SLF Inc. and Sun Life Assurance have each covenanted that, if a distribution is not paid when due on any outstanding SLEECS issued by SLCT I, then (i) Sun Life Assurance will not pay dividends on its public preferred shares, if any are outstanding, and (ii) if Sun Life Assurance does not have any public preferred shares outstanding, then SLF Inc. will not pay dividends on its preferred shares or common shares, in each case, until the 12th month following the failure to pay the required distribution in full, unless the required distribution is paid to the holders of SLEECS. Public preferred shares means preferred shares issued by Sun Life Assurance which: (a) have been issued to the public (excluding any preferred shares held beneficially by affiliates of Sun Life Assurance); (b) are listed on a recognized stock exchange; and (c) have an aggregate liquidation entitlement of at least $200. As at December 31, 2022, Sun Life Assurance did not have outstanding any shares that qualify as public preferred shares. The terms of SLF Inc.’s outstanding preferred shares provide that for so long as Sun Life Assurance is a subsidiary of SLF Inc., no dividends on such preferred shares are to be declared or paid if Sun Life Assurance’s minimum regulatory capital ratio falls below the applicable threshold. In addition, under the terms of SLF Inc.’s outstanding preferred shares, SLF Inc. cannot pay dividends on its common shares without the approval of the holders of those preferred shares unless all dividends on the preferred shares for the last completed period for which dividends are payable have been declared and paid or set apart for payment. Currently, the above limitations do not restrict the payment of dividends on SLF Inc.’s preferred or common shares. The declaration and payment of dividends on SLF Inc.’s shares are at the sole discretion of the Board of Directors and will be dependent upon our earnings, financial condition and capital requirements. Dividends may be adjusted or eliminated at the discretion of the Board on the basis of these or other considerations. 15.A Common Shares Changes in common shares issued and outstanding for the years ended December 31 were as follows: 2022 2021 Common shares (in millions of shares) Number of Amount Number of Amount Balance, beginning of period 586.0 $ 8,305 585.1 $ 8,262 Stock options exercised (Note 19) 0.4 6 0.9 43 Balance, end of period 586.4 $ 8,311 586.0 $ 8,305 15.B Preferred Shares and Other Equity Instruments There were no changes in preferred shares issued and outstanding for the year ended December 31, 2022. On June 30, 2021, SLF Inc. issued $1,000 principal amount of 3.60% Limited Recourse Capital Notes Series 2021-1 Subordinated Debentures ("Series 2021-1 Notes"), maturing on June 30, 2081. The Series 2021-1 Notes bear interest at a fixed rate of 3.60% payable semi-annually, until June 30, 2026. On June 30, 2026 and every five years thereafter until June 30, 2076, the interest rate on the Series 2021-1 Notes will be reset at an interest rate equal to the five-year Government of Canada yield as defined in the prospectus, plus 2.604%. The net proceeds were used for general corporate purposes, which included investments in subsidiaries, repayment of indebtedness and other strategic investments. In connection with the issuance of the Series 2021-1 Notes, SLF Inc. issued 1 million Class A Non-Cumulative Rate Reset Preferred Shares Series 14 (the "Series 14 Shares") to be held by Computershare Trust Company of Canada as trustee of a newly formed trust (the "Limited Recourse Trust"). The Series 14 Shares are eliminated on SLF Inc.'s Consolidated Statements of Financial Position while being held within the Limited Recourse Trust. In case of non-payment of interest on or principal of the Series 2021-1 Notes when due, the recourse of each noteholder will be limited to that holder's proportionate share of the Limited Recourse Trust's assets, which will consist of Series 14 Shares except in limited circumstances. Holders of Series 14 Shares are entitled to receive non-cumulative preferential cash dividends on a semi-annual basis, as and when declared by the Board of Directors. On September 29, 2021, SLF Inc. redeemed all of the $400 principal amount of Class A Non-Cumulative Preferred Shares Series 1 issued on February 25, 2005 and all of the $325 principal amount of Class A Non-Cumulative Preferred Shares Series 2 issued on July 15, 2005, in accordance with the terms attached to the two series of preferred shares. The redemptions were funded from existing cash and other liquid assets in SLF Inc. On September 30, 2021, 0.5 million of the 6.9 million Class A Non-cumulative Rate Reset Preferred Shares Series 10R (the "Series 10R Shares") were converted into Class A Non-cumulative Floating Rate Preferred Shares 11QR (the "Series 11QR Shares") on a one-for-one basis and 0.4 million of the 1.1 million Series 11QR were converted into Series 10R on a one-for-one basis. As a result, as of September 30, 2021, SLF Inc. has approximately 6.8 million Series 10R Shares and 1.2 million Series 11QR Shares issued and outstanding. On December 31, 2021, SLF Inc. redeemed all of the $300 Class A Non-Cumulative Rate Reset Preferred Shares Series 12R issued on November 10, 2011, in accordance with the terms attached to the series of preferred shares. The redemptions were funded from existing cash and other liquid assets in SLF Inc. Further information on the preferred shares outstanding, as at December 31, 2022, is as follows: Issue date Annual Annual Earliest par call or redemption date (1) Number Face Net amount (2) Class A Preferred shares Series 3 January 13, 2006 4.45 % $ 1.11 Any time 10.0 250 245 Series 4 October 10, 2006 4.45 % $ 1.11 Any time 12.0 300 293 Series 5 February 2, 2007 4.50 % $ 1.13 Any time 10.0 250 245 Series 8R (3) May 25, 2010 1.825 % (3) $ 0.46 June 30, 2025 (4) 6.2 155 152 Series 9QR (5) June 30, 2015 Floating (6) Floating June 30, 2025 (7) 5.0 125 122 Series 10R (3) August 12, 2011 2.967 % (3) $ 0.74 (8) September 30, 2026 (4) 6.8 171 167 Series 11QR (5) September 30, 2016 Floating (6) Floating September 30, 2026 (7) 1.2 29 28 Other Equity Instruments Series 2021-1 (9) June 30, 2021 3.600 % n/a June 30, 2026 1.0 1,000 987 Total preferred shares and other equity instruments 52.2 $ 2,280 $ 2,239 (1) Redemption of all preferred shares and other equity instruments is subject to regulatory approval. (2) Net of after-tax issuance costs. (3) On the earliest redemption date and every five years thereafter, the dividend rate will reset to an annual rate equal to the 5-year Government of Canada bond yield plus a spread specified for each series. The specified spread for Class A shares is: Series 8R - 1.41% and Series 10R - 2.17%. On the earliest redemption date and every five years thereafter, holders will have the right, at their option, to convert their shares into the series that is one number higher than their existing series. (4) Redeemable on the redemption date and every five years thereafter, in whole or in part, at $25.00 per share. (5) On the earliest redemption date and every five years thereafter, holders will have the right, at their option, to convert those shares into the series that is one number lower than their existing series. (6) Holders are entitled to receive quarterly floating rate non-cumulative dividends at an annual rate equal to the then 3-month Government of Canada treasury bill yield plus a spread specified for each series. The specified spread for Class A shares is: Series 9QR - 1.41% and Series 11QR - 2.17%. (7) Redeemable on the redemption date and every five years thereafter, in whole or in part, at $25.00 per share, and on any other date at $25.50 per share. (8) The annual dividend per share in the table above is the amount paid per share in 2022. |
Interests in Other Entities
Interests in Other Entities | 12 Months Ended |
Dec. 31, 2022 | |
Interests In Other Entities [Abstract] | |
Interests in Other Entities | 16. Interests in Other Entities 16.A Subsidiaries Our principal subsidiaries are Sun Life Assurance and Sun Life Global Investments Inc. Sun Life Assurance is our principal operating insurance company and holds our insurance operations in Canada, the U.S., the UK, the Philippines, Hong Kong, Indonesia and Vietnam. These insurance operations are operated directly by Sun Life Assurance or through other subsidiaries. Sun Life Global Investments Inc. is a non-operating holding company that holds our asset management businesses, including MFS and the group of companies under SLC Management. We are required to comply with various regulatory capital and solvency requirements in the jurisdictions in which we operate that may restrict our ability to access or use the assets of the group and to pay dividends. Further details on these restrictions are included in Notes 15 and 21. 16.B Joint Ventures and Associates We have interests in various joint ventures and associates that principally operate in India, Malaysia, China, and the Philippines. We also have interests in joint ventures related to certain real estate investments in Canada. Our interests in these joint ventures and associates range from 24.99% to 50%. The following table summarizes, in aggregate, the financial information of these joint ventures and associates: As at or for the years ended December 31, 2022 2021 Carrying amount of interests in joint ventures and associates $ 1,594 $ 1,652 Our share of: Net income (loss) (5) 122 Other comprehensive income (loss) (109) (14) Total comprehensive income (loss) $ (114) $ 108 On October 12, 2021, our India joint venture, Aditya Birla Sun Life AMC Limited ("ABSLAMC") completed an Initial Public Offering ("IPO"). As a result of the IPO, our ownership interest was reduced by 12.5% and we generated gross proceeds of $430, which included a realized gain of $362 (post-tax $297). After the IPO, we retained ownership of the listed entity of 36.5%. We also reclassified $9 of accumulated OCI to net income as part of this transaction. In 2022, we increased our investment in our joint ventures and associates by $69 (2021 — $29), primarily in Canada. During 2022, we received dividends and other proceeds relating to our joint ventures and associates of $27 (2021 — $382). We also incurred rental expenses of $17 (2021 — $17) related to leases with our joint ventures and associates, with the remaining future rental payments payable to our joint ventures and associates totaling $167 over 10 years. 16.C Joint Operations We invest jointly in investment properties and owner-occupied properties which are co-managed under contractual relationships with the other investors. We share in the revenues and expenses generated by these properties in proportion to our investment. The carrying amount of these jointly controlled assets, which is included in Investment properties and in Other Assets for owner-occupied properties, is $2,228 as at December 31, 2022 (December 31, 2021 — $2,185). The fair value of these jointly controlled assets is $2,306 as at December 31, 2022 (December 31, 2021 — $2,278). 16.D Unconsolidated Structured Entities SLF Inc. and its subsidiaries have interests in various structured entities that are not consolidated by us. A structured entity is an entity that has been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity, such as when any voting rights relate to administrative tasks only and the relevant activities are directed by means of contractual arrangements. We have an interest in a structured entity when we have a contractual or non-contractual involvement that exposes us to variable returns from the performance of the entity. Our interest includes investments held in securities or units issued by these entities and fees earned from management of the assets within these entities. Information on our interests in unconsolidated structured entities is as follows: As at December 31, 2022 2021 Type of structured entity Type of investment held Consolidated Statements Carrying Maximum exposure to loss (1) Carrying Maximum exposure to loss (1) Securitization entities - third-party managed Debt securities Debt securities $ 9,155 $ 9,155 $ 9,057 $ 9,057 Securitization entities - third-party managed Short-term securities Cash, cash equivalents and short-term $ 790 $ 790 $ 1,084 $ 1,084 Investment funds - third-party managed Investment fund units Equity securities $ 5,766 $ 5,766 $ 7,411 $ 7,411 Investment funds - company managed (2) Investment fund units and Limited partnership units Equity securities and Other invested assets $ 3,365 $ 3,365 $ 2,978 $ 2,978 Limited partnerships - third-party managed Limited partnership units Other invested assets $ 2,786 $ 2,786 $ 2,391 $ 2,391 (1) The maximum exposure to loss is the maximum loss that we could record through comprehensive income as a result of our involvement with these entities. (2) Includes investments in funds managed by our joint ventures with a carrying amount of $82 (2021 — $156). 16.D.i Securitization Entities Securitization entities are structured entities that are generally financed primarily through the issuance of debt securities that are backed by a pool of assets, such as mortgages or loans. Third-Party Managed Our investments in third-party managed securitization entities consist of asset-backed securities, such as commercial mortgage-backed securities, residential mortgage-backed securities, collateralized debt obligations ("CDOs"), and commercial paper. These securities are generally large-issue debt securities designed to transform the cash flows from a specific pool of underlying assets into tranches providing various risk exposures for investment purposes. We do not provide financial or other support to these entities other than our original investment and therefore our maximum exposure to loss on these investments is limited to the carrying amount of our investment. We do not have control over these investments since we do not have power to direct the relevant activities of these entities, regardless of the level of our investment. Company Managed We provide collateral management services to various securitization entities, primarily CDOs, from which we earn a fee for our services. The financial support provided to these entities is limited to the carrying amount of our investment in these entities. We provide no guarantees or other contingent support to these entities. We have not consolidated these entities since we do not have significant variability from our interests in these entities and we do not have any investment in these entities. 16.D.ii Investment Funds and Limited Partnerships Investment funds and limited partnerships are investment vehicles that consist of a pool of funds collected from a group of investors for the purpose of investing in assets such as money market instruments, debt securities, equity securities, real estate, and other similar assets. The preceding table includes our investments in all investment funds, including mutual funds, exchange-traded funds, and segregated funds, and our investments in certain limited partnerships. Some of these investment funds and limited partnerships are structured entities. For all investment funds and limited partnerships, our maximum exposure to loss is equivalent to the carrying amount of our investment in the fund or partnership. Investment funds and limited partnerships are generally financed through the issuance of investment fund units or limited partnership units. Third-Party Managed We hold units in investment funds and limited partnerships managed by third-party asset managers. Our investments in fund units and limited partnership units generally give us an undivided interest in the investment performance of a portfolio of underlying assets managed or tracked to a specific investment mandate for investment purposes. We do not have control over investment funds or limited partnerships that are structured entities since we do not have power to direct their relevant activities. Company Managed We hold units in Company managed investment funds and limited partnerships. We generally have power over Company managed investment funds and limited partnerships that are structured entities since we have power to direct the relevant activities of the funds and limited partnerships. However, we have not consolidated these funds and limited partnerships since we do not have significant variability from our interests in these funds and limited partnerships. We earn management fees from the management of these investment funds and limited partnerships that are commensurate with the services provided and are reported in Fee income. Management fees are generally based on the value of the assets under management. Therefore, the fees earned are impacted by the composition of the assets under management and fluctuations in financial markets. The fee income earned is included in Fund management and other asset based fees in Note 17. We also hold units in investment funds and limited partnerships managed by our joint ventures. Our share of the management fees earned is included as part of the Net income (loss) reported in Note 16.B. 16.E Consolidated Structured Entities We control and consolidate structured entities related to the CLOs described in more detail in Note 5.A.i. and investment funds managed by SLC Management and its affiliate managers which invest primarily in investment properties and entities which invest in renewable energy projects. |
Fee Income
Fee Income | 12 Months Ended |
Dec. 31, 2022 | |
Analysis of income and expense [abstract] | |
Fee Income | 17. Fee Income For the years ended December 31, 2022 2021 Fee income from insurance contracts $ 1,169 $ 1,175 Fee income from service contracts: Distribution fees 868 959 Fund management and other asset-based fees 4,922 4,981 Administrative service and other fees 1,087 887 Total fee income $ 8,046 $ 8,002 |
Operating Expenses, Commissions
Operating Expenses, Commissions, and Premium Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Analysis of income and expense [abstract] | |
Operating Expenses, Commissions, and Premium Taxes | 18. Operating Expenses, Commissions, and Premium Taxes For the years ended December 31, 2022 2021 Operating expenses: Employee expenses (1) $ 5,107 $ 5,102 Premises and equipment 216 182 Capital asset depreciation 241 245 Service fees 1,152 1,101 Amortization of intangible assets (Note 9) 287 193 Impairment of intangible assets (Note 9) 18 9 Impairment of goodwill (Note 9) 170 — Other expenses 1,850 1,747 Operating expenses $ 9,041 $ 8,579 Commissions 2,836 2,809 Premium taxes 487 429 Total operating expenses, commissions and premium taxes $ 12,364 $ 11,817 (1) See table below for further details. Employee expenses for the years ended December 31 consist of the following: 2022 2021 Salaries, bonus, employee benefits $ 4,846 $ 4,320 Share-based payments (Note 19) 227 757 Other personnel costs 34 25 Total employee expenses $ 5,107 $ 5,102 |
Share-Based Payments
Share-Based Payments | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangements [Abstract] | |
Share-Based Payments | 19. Share-Based Payments 19.A Stock Option Plans SLF Inc. has granted stock options to eligible employees under the Executive Stock Option Plan. These options are granted at the closing price of the common shares on the Toronto Stock Exchange ("TSX") on the grant date. The options granted under the stock option plans vest over a four-year period. All options have a maximum exercise period of 10 years. The maximum number of common shares that may be issued under the Executive Stock Option Plan is 29,525,000 shares. The activities in the stock option plans for the years ended December 31 are as follows: 2022 2021 Number of stock options (thousands) Weighted average exercise price Number of Weighted average Balance, January 1, 3,042 $ 55.85 3,173 $ 49.65 Granted 709 $ 68.12 769 $ 63.39 Exercised (115) $ 45.94 (900) $ 40.44 Forfeited (47) $ 62.38 — $ — Balance, December 31, 3,589 $ 58.51 3,042 $ 55.85 Exercisable, December 31, 1,785 $ 53.33 1,223 $ 50.22 The average share price at the date of exercise of stock options for the year ended December 31, 2022 was $64.00 (2021 — $64.86). Compensation expense for stock options was $7 for the year ended December 31, 2022 (2021 — $6). The stock options outstanding as at December 31, 2022, by exercise price, are as follows: Range of exercise prices Number of stock options (thousands) Weighted average remaining contractual life (years) Weighted average exercise price $36.98 to $45.00 206 1.96 $ 39.80 $45.01 to $55.00 1,228 4.14 $ 51.21 $55.01 to $65.00 1,257 6.85 $ 62.19 $65.01 to $68.12 898 8.98 $ 67.64 Total stock options 3,589 6.18 $ 58.51 The weighted average fair values of the stock options, calculated using the Black-Scholes option pricing model, granted during the year ended December 31, 2022 was $9.64 (2021 — $8.73). The Black-Scholes option pricing model used the following assumptions to determine the fair value of options granted during the years ending December 31: Weighted average assumptions 2022 2021 Risk-free interest rate 1.8 % 0.9 % Expected volatility 23.7 % 24.9 % Expected dividend yield 4.0 % 4.0 % Expected life of the option (in years) 6.3 6.3 Exercise price $ 68.12 $ 63.39 Expected volatility is based on historical volatility of the common shares, implied volatilities from traded options on the common shares, and other factors. The expected term of options granted is derived based on historical employee exercise behaviour and employee termination experience. The risk-free rate for periods within the expected term of the option is based on the Canadian government bond yield curve in effect at the time of grant. 19.B Employee Share Ownership Plan In Canada, we match eligible employees’ contributions to the Sun Life Financial Employee Stock Plan. Employees may elect to contribute from 1% to 20% of their target annual compensation to the Sun Life Financial Employee Stock Plan. Under this plan the match is provided for employees who have met one year of employment eligibility and is equal to 50% of the employee’s contributions up to 5% of an employee’s annual compensation. The match is further capped by a one thousand five hundred dollar annual maximum. Our contributions vest immediately and are expensed. In the U.S., the Sun Life Financial U.S. Employee Stock Purchase Plan allows eligible employees to buy shares of SLF Inc. at a 10% discount at the end of six-month offering periods. Under this plan, employees who enroll can contribute from 1% to 10% of their base salary. At the end of each period, accumulated employee amounts are used to purchase stock, with the Company financing the 10% discount. The total annual contribution, including the company discount, is limited to U.S. twenty-five thousand dollars based on its fair market value on the offering date. We recorded an expense of $9 for the year ended December 31, 2022 (2021 — $9). 19.C Other Share-Based Payment Plans All other share-based payment plans use notional units that are valued based on the common share price on the TSX. Any fluctuation in the common share price changes the value of the units, which affects our share-based payment compensation expense. Upon redemption of these units, payments are made to the employees with a corresponding reduction in the accrued liability. We use equity swaps and forwards to hedge our exposure to variations in cash flows due to changes in the common share price for all of these plans. Details of these plans are as follows: Senior Executives’ Deferred Share Unit ("DSU") Plan: Under the DSU plan, designated executives may elect to receive all or a portion of their short-term incentive award in the form of DSUs. Each DSU is equivalent in value to one common share and earns dividend equivalents in the form of additional DSUs at the same rate as the dividends on common shares. The designated executives must elect to participate in the plan prior to the beginning of the plan year and this election is irrevocable. Awards generally vest immediately; however, participants are not permitted to redeem the DSUs until after termination, death, or retirement. The value at the time of redemption will be based on the fair value of the common shares immediately before their redemption. Sun Share Unit ("Sun Share") Plan: Under the Sun Share plan, participants are granted units that are equivalent in value to one common share and have a grant price equal to the average of the closing price of a common share on the TSX on the five trading days immediately prior to the date of grant. Participants generally hold units for up to 36 months from the date of grant. The units earn dividend equivalents in the form of additional units at the same rate as the dividends on common shares. Under this plan, some units are performance-based that may vest or become payable if we meet specified threshold performance targets. The plan provides for performance factors to motivate participants to achieve a higher return for shareholders (performance factors are determined through a multiplier that can be as low as zero or as high as two times the number of units that vest). Payments to participants are based on the number of units vested multiplied by the average closing price of a common share on the TSX on the five trading days immediately prior to the vesting date. Additional information for other share-based payment plans: The units outstanding under these plans and the liabilities recognized for these units in our Consolidated Statements of Financial Position are summarized in the following table: Number of units (in thousands) Sun Shares DSUs Total Units outstanding December 31, 2022 4,675 710 5,385 Units outstanding December 31, 2021 4,817 929 5,746 Liability accrued as at December 31, 2022 $ 188 $ 44 $ 232 Liability accrued as at December 31, 2021 $ 314 $ 63 $ 377 Compensation expense and the Income tax expense (benefit) for other share-based payment plans for the years ended December 31 are shown in the following table. Since expenses for the DSUs are accrued as part of incentive compensation in the year awarded, the expenses below do not include these accruals. The expenses presented in the following table include increases in the liabilities for Sun Shares and DSUs due to changes in the fair value of the common shares and the accruals of the Sun Shares liabilities over the vesting period, and exclude any adjustment in expenses due to the impact of hedging. For the years ended December 31, 2022 2021 Compensation expense $ 43 $ 213 Income tax expense (benefit) $ (9) $ (54) 19.D Share-Based Payment Plans of MFS Share-based payment awards within MFS are based on their own shares. Restricted share awards are settled in MFS shares and restricted stock unit awards are settled in cash. Restricted share awards and restricted stock unit awards generally vest over a four-year period and continued employment is generally the only service requirement for these awards. Holders of restricted share awards and restricted stock unit awards are entitled to receive non-forfeitable dividend equivalent payments during the vesting period at the same rate as the dividends on MFS’s shares. Although restricted share awards are settled in shares, all of the MFS share-based awards, including outstanding MFS shares, are accounted for as cash-settled share-based payment awards due to the fact that MFS has a practice of repurchasing its outstanding shares after a specified holding period. The fair value of restricted share awards, restricted stock unit awards, and outstanding MFS shares are estimated using a market consistent share valuation model. The amount of periodic compensation expense recognized is impacted by grants of new awards, vesting, and forfeiture of unvested awards, share repurchases, changes in fair value of awards, and outstanding MFS shares. The total liability accrued attributable to all MFS share-based payment plans as at December 31, 2022 was $1,020 (December 31, 2021 — $1,088) which includes a liability of $811 (December 31, 2021 — $848) for the restricted shares and outstanding MFS shares. Compensation expense and the Income tax expense (benefit) for these awards for the years ended December 31 are shown in the following table: For the years ended December 31, 2022 2021 Compensation expense $ 168 $ 529 Income tax expense (benefit) $ (49) $ (79) |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes [Abstract] | |
Income Taxes | 20. Income Taxes 20.A Deferred Income Taxes The following represents the deferred tax assets and liabilities in the Consolidated Statements of Financial Position: As at December 31, 2022 2021 Deferred tax assets (1) $ 2,282 $ 1,848 Deferred tax liabilities (1) 630 322 Net deferred tax asset $ 1,652 $ 1,526 (1) Our deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred taxes relate to the same taxable entity and the same taxation authority. The movement in net deferred tax assets for the years ended December 31, are as follows: Investments Policy liabilities (1) Deferred Losses Pension Other (2) Total As at December 31, 2021 $ (1,178) $ 1,727 $ 74 $ 853 $ 301 $ (251) $ 1,526 Acquisitions (disposals) through business combinations (3) 1 10 — 32 8 (277) (226) Charged to statement of operations 492 (380) 4 (10) (6) (7) 93 Charged to other comprehensive income 135 85 — 92 (75) — 237 Charged to equity, other than other comprehensive income — — — 15 — — 15 Foreign exchange rate movements and Other 13 (19) 6 4 14 (11) 7 As at December 31, 2022 $ (537) $ 1,423 $ 84 $ 986 $ 242 $ (546) $ 1,652 (1) Consists of Insurance contract liabilities and Investment contract liabilities, net of Reinsurance assets. (2) Includes unused tax credits. (3) Refer to Note 3. Investments Policy liabilities (1) Deferred Losses Pension Other (2) Total As at December 31, 2020 $ (1,240) $ 1,621 $ 82 $ 708 $ 322 $ (242) $ 1,251 Charged to statement of operations 53 48 (9) 125 (14) (7) 196 Charged to other comprehensive income 25 30 — 17 9 4 85 Foreign exchange rate movements and Other (16) 28 1 3 (16) (6) (6) As at December 31, 2021 $ (1,178) $ 1,727 $ 74 $ 853 $ 301 $ (251) $ 1,526 (1) Consists of Insurance contract liabilities and Investment contract liabilities, net of Reinsurance assets. (2) Includes unused tax credits. We have accumulated non-capital tax losses, primarily in Canada, the UK, Indonesia and Vietnam, totaling $4,349 (2021 — $3,758). The benefit of these tax losses has been recognized to the extent that it is probable that the benefit will be realized. In addition, we have net capital losses of $10 (2021 — $7) in the U.S. and $nil in Canada (2021 —$13) for which a deferred tax asset of $2 (2021 — $3) has been recognized. Unused tax losses for which a deferred tax asset has not been recognized amount to $696 as of December 31, 2022 (2021 — $499) primarily in the UK, Indonesia and Vietnam. We also have capital losses of $434 in the UK (2021 — $452) and $275 in Canada (2021 — $178) for which a deferred tax asset of $181 (2021 — $137) has not been recognized. We will realize the benefit of tax losses carried forward in future years through a reduction in current income taxes as and when the losses are utilized. These tax losses are subject to examination by various tax authorities and could be reduced as a result of the adjustments to tax returns. Furthermore, legislative, business or other changes may limit our ability to utilize these losses. Included in the deferred tax asset related to losses available for carry forward are tax benefits that have been recognized on losses incurred in either the current or the preceding year. In determining if it is appropriate to recognize these tax benefits, we rely on projections of future taxable profits, and we also consider tax planning opportunities that will create taxable income in the period in which the unused tax losses can be utilized. The non-capital losses carried forward in Canada expire beginning in 2030 and the capital losses can be carried forward indefinitely. The operating and capital losses in the UK can be carried forward indefinitely. The non-capital losses in Indonesia and Vietnam can be carried forward five years. The capital losses in the U.S. can be carried forward five years. We recognize a deferred tax liability on all temporary differences associated with investments in subsidiaries, branches, joint ventures and associates unless we are able to control the timing of the reversal of these differences and it is probable that these differences will not reverse in the foreseeable future. As at December 31, 2022, temporary differences associated with investments in subsidiaries, branches, joint ventures and associates for which a deferred tax liability has not been recognized amount to $5,711 (2021 — $5,452). 20.B Income Tax Expense (Benefit) 20.B.i In our Consolidated Statements of Operations, Income tax expense (benefit) for the years ended December 31 has the following components: 2022 2021 Current income tax expense (benefit): Current year $ 781 $ 964 Adjustments in respect of prior years, including resolution of tax disputes (67) (41) Total current income tax expense (benefit) 714 923 Deferred income tax expense (benefit): Origination and reversal of temporary differences (67) (204) Adjustments in respect of prior years, including resolution of tax disputes 48 (8) Tax expense (benefit) arising from unrecognized tax losses 18 6 Tax rate and other legislative changes (92) 10 Total deferred income tax expense (benefit) (93) (196) Total income tax expense (benefit) $ 621 $ 727 20.B.ii Income tax benefit (expense) recognized directly in equity for the years ended December 31: 2022 2021 Recognized in other comprehensive income: Current income tax benefit (expense) $ 2 $ 3 Deferred income tax benefit (expense) 237 85 Total recognized in other comprehensive income 239 88 Recognized in equity, other than other comprehensive income: Deferred income tax benefit (expense) 15 — Total income tax benefit (expense) recorded in equity, including tax benefit (expense) recorded in Other comprehensive income $ 254 $ 88 20.B.iii Our effective income tax rate differs from the combined Canadian federal and provincial statutory income tax rate as follows: For the years ended December 31, 2022 2021 % % Total net income (loss) $ 3,302 $ 4,370 Add: Income tax expense (benefit) 621 727 Total net income (loss) before income taxes $ 3,923 $ 5,097 Taxes at the combined Canadian federal and provincial statutory income tax rate $ 1,089 27.8 $ 1,338 26.3 Increase (decrease) in rate resulting from: Higher (lower) effective rates on income subject to taxation in foreign jurisdictions (286) (7.4) (231) (4.5) Tax-exempt investment (income) loss (128) (3.3) (345) (6.8) Adjustments in respect of prior periods, including resolution of tax disputes (19) (0.5) (49) (1.0) Tax (benefit) cost of unrecognized tax losses and tax credits 18 0.5 6 0.1 Tax rate and other legislative changes (92) (2.3) 10 0.2 Other 39 1.0 (2) — Total income tax expense (benefit) and effective income tax rate $ 621 15.8 $ 727 14.3 In the 2022 Canadian Federal Budget, an additional surtax of 1.5% applicable to banks and life insurers’ taxable income in excess of $100 million was introduced ("Canada Tax Rate Change"). This legislation became enacted on December 15, 2022, and applies retroactively to April 7, 2022. As a result, our statutory tax rate has increased from 26.25% to 27.75% (rounded to 26.3% and 27.8%, respectively, in the table above). Statutory income tax rates in other jurisdictions in which we conduct business range from 0% to 25%, which creates a tax rate differential and corresponding tax provision difference compared to the Canadian federal and provincial statutory rate when applied to foreign income not subject to tax in Canada. Generally, earnings arising in tax jurisdictions with statutory rates lower than 27.75% reduce our tax expense and these differences are reported in Higher (lower) effective rates on income subject to taxation in foreign jurisdictions. The benefit reported in 2022 included higher income in jurisdictions with low statutory income tax rates compared to 2021. Tax-exempt investment (income) loss includes tax rate differences related to various types of investment income or losses that are taxed at rates lower than our statutory income tax rate. Examples include, but are not limited to, dividend income, capital gains arising in Canada and changes in market values including those resulting from fluctuations in foreign exchange rates. Adjustments in respect of prior periods, including the resolution of tax disputes, relate mainly to the resolution of Canadian tax matters and the finalization of the prior year’s Canadian, U.S. and U.K. tax filings. Tax (benefit) cost of unrecognized tax losses and tax credits primarily reflects unrecognized losses in Asia and the U.K. In 2021, it mainly reflected unrecognized losses in Asia. Tax rate and other legislative changes includes a benefit relating to the remeasurement of our deferred tax balances of $86 as a result of the Canada Tax Rate Change. In 2021, tax rate and other legislative changes included a remeasurement of our deferred tax balances in the UK due to an enacted corporate tax rate increase from 19% to 25%, which takes effect April 1, 2023. Other primarily reflects the tax impact of the non-deductible goodwill impairment charge relating to the sale of Sun Life UK. Also included in Other are withholding taxes on distributions from our foreign subsidiaries, the benefit relating to investments in joint ventures in Asia, and the reversal of withholding taxes no longer expected to be paid. In 2021, Other primarily reflected withholding taxes on distributions from our foreign subsidiaries, the benefit relating to investments in joint ventures in Asia, and the impact of taxable income attributable to NCI. |
Capital Management
Capital Management | 12 Months Ended |
Dec. 31, 2022 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Capital Management | 21. Capital Management The Board of Directors of SLF Inc. is responsible for the annual review and approval of the Company’s capital plan and capital risk policy. Management oversight of our capital programs and position is provided by the Company’s Executive Risk Committee, the membership of which includes senior management from the finance, actuarial, and risk management functions. We engage in a capital planning process annually in which capital deployment options, fundraising, and dividend recommendations are presented to the Risk Committee of the Board of Directors. Capital reviews are regularly conducted which consider the potential impacts under various business, interest rate, and equity market scenarios. Relevant components of these capital reviews, including dividend recommendations, are presented to the Risk Committee on a quarterly basis. The Board of Directors is responsible for the approval of the dividend recommendations. The capital risk policy is designed to ensure that adequate capital is maintained to provide the flexibility necessary to take advantage of growth opportunities, to support the risks associated with our businesses and to optimize return to our shareholders. This policy is also intended to provide an appropriate level of risk management over capital adequacy risk, which is defined as the risk that capital is not or will not be sufficient to withstand adverse economic conditions, to maintain financial strength or to allow us and our subsidiaries to support ongoing operations and to take advantage of opportunities for expansion. SLF Inc. manages its capital in a manner commensurate with its risk profile and control environment. SLF Inc. is a non-operating insurance company and is subject to the LICAT guideline. As at December 31, 2022, SLF Inc.’s LICAT ratio exceeded the regulatory minimum target as set out by the OSFI. Sun Life Assurance, SLF Inc.’s principal operating life insurance subsidiary in Canada, is also subject to the LICAT guideline. With a LICAT Ratio of 127% as at December 31, 2022, Sun Life Assurance's LICAT Ratio is above OSFI's Supervisory Target Total Ratio of 100% and minimum Total Ratio of 90%. OSFI may intervene and assume control of a Canadian life insurance company if it deems the amount of available capital insufficient. Capital requirements may be adjusted by OSFI in the future, as experience develops or the risk profile of Canadian life insurers changes or to reflect other risks. Sun Life Assurance exceeded levels that would require regulatory or corrective action as at December 31, 2022 and December 31, 2021. The Company’s regulated subsidiaries must comply with the capital adequacy requirements imposed in the jurisdictions in which they operate. In certain jurisdictions, the payment of dividends from our subsidiaries is subject to maintaining capital levels exceeding regulatory targets and/or receiving regulatory approval. We maintained capital levels above minimum local requirements as at December 31, 2022 and December 31, 2021. Our capital base consists mainly of common shareholders’ equity, preferred shareholders’ equity, participating policyholders’ equity, non-controlling interests’ equity and certain other capital securities that qualify as regulatory capital. For regulatory reporting purposes under the LICAT framework, there were further adjustments, including goodwill, non-life investments, and others as prescribed by OSFI, to the total capital figure presented in the table below: As at December 31, 2022 2021 Subordinated debt $ 6,676 $ 6,425 Innovative capital instruments (1) 200 200 Equity: Preferred shares and other equity instruments 2,239 2,239 Common shareholders’ equity (2) 25,211 24,075 Participating policyholders’ equity 1,837 1,700 Non-controlling interests’ equity 90 59 Total capital $ 36,253 $ 34,698 (1) Innovative capital instruments are SLEECS issued by SLCT I (Note 13). SLCT I is not consolidated by us. (2) Common shareholders' equity is equal to Total shareholders' equity less Preferred shares and other equity instruments |
Segregated Funds
Segregated Funds | 12 Months Ended |
Dec. 31, 2022 | |
Separate Accounts Disclosure 1 [Abstract] | |
Segregated Funds | 22. Segregated Funds We have segregated fund products, including variable annuities, unit-linked products and universal life insurance policies, in Canada, the U.S., the UK, and Asia. Under these contracts, the benefit amount is contractually linked to the fair value of the investments in the particular segregated fund. Policyholders can select from a variety of categories of segregated fund investments. Although the underlying assets are registered in our name and the segregated fund contract holder has no direct access to the specific assets, the contractual arrangements are such that the segregated fund policyholder bears the risk and rewards of the funds’ investment performance. Therefore, net realized gains and losses, other net investment income earned, and expenses incurred on the segregated funds are attributable to policyholders and not to us. However, certain contracts include guarantees from us. We are exposed to equity market risk and interest rate risk as a result of these guarantees. Further details on these guarantees and our risk management activities related to these guarantees are included in the Risk Management section of the MD&A. We derive fee income from segregated funds. Market value movements in the investments held for segregated fund holders impact the management fees earned on these funds. The segregated fund types offered, by percentage of total investments for account of segregated fund holders, were within the following ranges as at December 31, 2022 and 2021: Type of fund % Money market 1 to 5 Fixed income 5 to 10 Balanced 40 to 45 Equity 45 to 50 Money market funds include investments that have a term to maturity of less than one year. Fixed income funds are funds that invest primarily in investment grade fixed income securities and where less than 25% can be invested in diversified equities or high-yield bonds. Balanced funds are a combination of fixed income securities with a larger equity component. The fixed income component is greater than 25% of the portfolio. Equity consists primarily of broad-based diversified funds that invest in a well-diversified mix of Canadian, U.S. or global equities. Other funds in this category include low volatility funds, intermediate volatility funds, and high volatility funds. 22.A Investments for Account of Segregated Fund Holders The carrying value of investments held for segregated fund holders are as follows: As at December 31, 2022 2021 Segregated and mutual fund units $ 113,070 $ 125,944 Equity securities 8,251 9,963 Debt securities 2,858 3,410 Cash, cash equivalents and short-term securities 805 778 Investment properties 438 446 Mortgages 17 19 Other assets 130 141 Total assets $ 125,569 $ 140,701 Less: Liabilities arising from investing activities 277 705 Total investments for account of segregated fund holders $ 125,292 $ 139,996 22.B Changes in Insurance Contracts and Investment Contracts for Account of Segregated Fund Holders For the years ended December 31, 2022 2021 Balance as at January 1 $ 139,996 $ 125,921 Additions to segregated funds: Deposits 14,266 13,509 Net transfer (to) from general funds (1,149) (351) Net realized and unrealized gains (losses) (18,669) 9,516 Other investment income 4,959 6,558 Total additions $ (593) $ 29,232 Deductions from segregated funds: Payments to policyholders and their beneficiaries 12,218 12,966 Management fees 1,188 1,276 Taxes and other expenses 392 435 Foreign exchange rate movements 313 480 Total deductions $ 14,111 $ 15,157 Net additions (deductions) (14,704) 14,075 Balance as at December 31 $ 125,292 $ 139,996 |
Commitments, Guarantees and Con
Commitments, Guarantees and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Commitments, Guarantees and Contingencies | 23. Commitments, Guarantees and Contingencies 23.A Lease Commitments We lease offices and certain equipment. These are operating leases with rents charged to operations in the year to which they relate. Total future rental payments for the remainder of these leases total $1,000 (December 31, 2021 — $950). The future rental payments by year of payment are included in the MD&A as described in Note 6. 23.B Contractual Commitments In the normal course of business, various contractual commitments are outstanding, which are not reflected in our Consolidated Financial Statements. In addition to loan commitments for debt securities and mortgages included in Note 6.A.i, we have equity, investment property, and property and equipment commitments. As at December 31, 2022, we had a total of $5,070 of contractual commitments outstanding (December 31, 2021 — $4,211). The expected maturities of these commitments are included in the MD&A as described in Note 6. 23.C Letters of Credit We issue commercial letters of credit in the normal course of business. As at December 31, 2022, we had credit facilities of $889 available for the issuance of letters of credit (December 31, 2021 — $839), from which a total of $110 in letters of credit were outstanding (December 31, 2021 — $105). 23.D Commission on Release Commissions on Release ("CORe") is a program designed to facilitate the transfer of blocks of business between advisors in order to provide ongoing service and advice to our Clients. We facilitate and administer these transactions including payment and collection streams. Under the CORe program, when an eligible advisor releases Clients they are servicing, we are contractually obligated to pay them the associated CORe value, based on a specified formula as stipulated in the advisor contract. The value of the CORe commitment will vary for blocks of business which have not been released by an active advisor. The occurrence of future events that will trigger an advisor to release their block of business and the value of the related CORe commitment at that future release date is difficult to predict. As a result of uncertainty in the timing of the triggering event, we cannot reliably estimate our commitment under the CORe program. Due to the nature of the program, in the normal course of business, the commitment related to the future payment to advisors on release of a block of business would be expected to be matched or partially matched by a corresponding amount related to the receivable on the assignment of blocks of business to new advisors, resulting in an immaterial impact to earnings and liquidity in any reporting period. 23.E Indemnities and Guarantees In the normal course of our business, we have entered into agreements that include indemnities in favour of third parties, such as confidentiality agreements, engagement letters with advisors and consultants, outsourcing agreements, leasing contracts, trade-mark licensing agreements, underwriting and agency agreements, information technology agreements, distribution agreements, financing agreements, the sale of equity interests, and service agreements. These agreements may require us to compensate the counterparties for damages, losses or costs incurred by the counterparties as a result of breaches in representation, changes in regulations (including tax matters), or as a result of litigation claims or statutory sanctions that may be suffered by the counterparty as a consequence of the transaction. We have also agreed to indemnify our directors and certain of our officers and employees in accordance with our by-laws. These indemnification provisions will vary based upon the nature and terms of the agreements. In many cases, these indemnification provisions do not contain limits on our liability, and the occurrence of contingent events that will trigger payment under these indemnities is difficult to predict. As a result, we cannot estimate our potential liability under these indemnities. We believe that the likelihood of conditions arising that would trigger these indemnities is remote and, historically, we have not made any significant payment under such indemnification provisions. In certain cases, we have recourse against third parties with respect to the aforesaid indemnities, and we also maintain insurance policies that may provide coverage against certain of these claims. In the normal course of our business, we have entered into purchase and sale agreements that include indemnities in favour of third parties. These agreements may require us to compensate the counterparties for damages, losses, or costs incurred by the counterparties as a result of breaches in representation. As at December 31, 2022, we are not aware of any breaches in representations that would result in any payment required under these indemnities that would have a material impact on our Consolidated Financial Statements. Guarantees made by us that can be quantified are included in Note 6.A.i. 23.F Guarantees of Sun Life Assurance Preferred Shares and Subordinated Debentures SLF Inc. has provided a guarantee on the $150 of 6.30% subordinated debentures due 2028 issued by Sun Life Assurance. Claims under this guarantee will rank equally with all other subordinated indebtedness of SLF Inc. SLF Inc. has also provided a subordinated guarantee of preferred shares issued from time to time by Sun Life Assurance, other than such preferred shares which are held by SLF Inc. and its affiliates. Sun Life Assurance has no outstanding preferred shares subject to the guarantee. As a result of these guarantees, Sun Life Assurance is entitled to rely on exemptive relief from most continuous disclosure and the certification requirements of Canadian securities laws. The following tables set forth certain consolidating summary financial information for SLF Inc. and Sun Life Assurance (consolidated): For the years ended SLF Inc.(unconsolidated) Sun Life Other Consolidation SLF Inc. December 31, 2022 Revenue $ 603 $ 12,608 $ 9,618 $ 493 $ 23,322 Shareholders’ net income (loss) $ 3,135 $ 1,825 $ 968 $ (2,798) $ 3,130 December 31, 2021 Revenue $ 320 $ 27,527 $ 9,060 $ (1,219) $ 35,688 Shareholders’ net income (loss) $ 4,035 $ 2,823 $ 1,062 $ (3,885) $ 4,035 Assets and liabilities as at SLF Inc.(unconsolidated) Sun Life Other Consolidation SLF Inc. December 31, 2022 Invested assets $ 31,897 $ 167,638 $ 12,495 $ (34,738) $ 177,292 Total other general fund assets $ 6,594 $ 26,400 $ 22,791 $ (27,463) $ 28,322 Investments for account of segregated fund holders $ — $ 125,242 $ 50 $ — $ 125,292 Insurance contract liabilities $ — $ 140,415 $ 8,530 $ (8,527) $ 140,418 Investment contract liabilities $ — $ 3,314 $ — $ — $ 3,314 Total other general fund liabilities $ 9,916 $ 24,638 $ 17,766 $ (19,815) $ 32,505 December 31, 2021 Invested assets $ 30,984 $ 174,777 $ 13,006 $ (34,245) $ 184,522 Total other general fund assets $ 12,462 $ 24,580 $ 32,525 $ (48,715) $ 20,852 Investments for account of segregated fund holders $ — $ 139,929 $ 67 $ — $ 139,996 Insurance contract liabilities $ — $ 147,989 $ 10,105 $ (10,283) $ 147,811 Investment contract liabilities $ — $ 3,368 $ — $ — $ 3,368 Total other general fund liabilities $ 16,020 $ 24,249 $ 27,702 $ (41,849) $ 26,122 23.G Legal and Regulatory Proceedings We are regularly involved in legal actions, both as a defendant and as a plaintiff. Legal actions naming us as a defendant ordinarily involve our activities as a provider of insurance protection and wealth management products, as an investor and investment advisor, and as an employer. In addition, government and regulatory bodies in Canada, the U.S., the UK, and Asia, including federal, provincial, and state securities and insurance regulators and government authorities, from time to time, make inquiries and require the production of information or conduct examinations or investigations concerning our compliance with insurance, securities, and other laws. Provisions for legal proceedings related to insurance contracts, such as for disability and life insurance claims and the cost of litigation, are included in Insurance contract liabilities in our Consolidated Statements of Financial Position. Other provisions are established outside of the Insurance contract liabilities if, in the opinion of management, it is both probable that a payment will be required and a reliable estimate can be made of the amount of the obligation. Management reviews the status of all proceedings on an ongoing basis and exercises judgment in resolving them in such manner as management believes to be in our best interest. Two class action lawsuits have been filed against Sun Life Assurance in connection with sales practices relating to, and the administration of, individual policies issued by the Metropolitan Life Insurance Company ("MLIC"). These policies were assumed by Clarica when Clarica acquired the bulk of MLIC’s Canadian operations in 1998 and subsequently assumed by Sun Life Assurance as a result of its amalgamation with Clarica. One of the lawsuits ( Fehr et al v Sun Life Assurance Company of Canada ) is issued in Ontario and the other ( Alamwala v Sun Life Assurance Company of Canada ) is in British Columbia. The Fehr action has been certified as a class action and notice has been made to class members. Sun Life Assurance has brought a motion for summary judgment seeking to dismiss all of the claims. The other action ( Alamwala v Sun Life Assurance Company of Canada ) has remained largely dormant since it was commenced in 2011 and has not been certified. We will continue to vigorously defend against the claims in these actions. In connection with the acquisition of the Canadian operations of MLIC, MLIC agreed to indemnify Clarica for certain losses, including those incurred relating to the sales of its policies. Should either of the Fehr or the Alamwala lawsuits result in a loss, Sun Life Assurance will seek recourse against MLIC under that indemnity through arbitration. Management does not believe that the probable conclusion of any current legal or regulatory matter, either individually or in the aggregate, will have a material adverse effect on the Consolidated Statements of Financial Position or the Consolidated Statements of Operations. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party [Abstract] | |
Related Party Transactions | 24. Related Party Transactions SLF Inc. and its subsidiaries, joint ventures and associates transact business worldwide. All transactions between SLF Inc. and its subsidiaries have been eliminated on consolidation. Transactions with joint ventures and associates, which are also related parties, are disclosed in Note 16. Transactions between the Company and related parties are executed and priced on an arm’s-length basis in a manner similar to transactions with third parties. 24.A Transactions with Key Management Personnel, Remuneration and Other Compensation Key management personnel refers to the executive team and Board of Directors of SLF Inc. These individuals have the authority and responsibility for planning, directing, and controlling the activities of the Company. The aggregate compensation to the executive team and directors are as follows: For the years ended December 31, 2022 2021 Executive team Directors Executive team Directors Number of individuals 13 11 14 13 Base salary and annual incentive compensation $ 19 $ — $ 22 $ — Additional short-term benefits and other $ 1 $ — $ 1 $ 1 Share-based long-term incentive compensation $ 32 $ 3 $ 36 $ 2 Value of pension and post-retirement benefits $ 2 $ — $ 6 $ — Severance $ — $ — $ 6 $ — 24.B Other Related Party Transactions We provide investment management services for our pension plans. The services are provided on substantially the same terms as for comparable transactions with third parties. We also hold units of investment funds managed by certain of our joint ventures. The carrying amount of our investment in these funds is included in Note 16.D. |
Pension Plans and Other Post-Re
Pension Plans and Other Post-Retirement Benefits | 12 Months Ended |
Dec. 31, 2022 | |
Employee Benefits [Abstract] | |
Pension Plans and Other Post-Retirement Benefits | 25. Pension Plans and Other Post-Retirement Benefits We sponsor defined benefit pension plans and defined contribution plans for eligible employees. All of our material defined benefit plans worldwide are closed to new entrants with new hires participating in defined contribution plans. Material defined benefit plans are located in Canada, the U.S., and the UK. The defined benefit pension plans offer benefits based on length of service and final average earnings and certain plans offer some indexation of benefits. The specific features of these plans vary in accordance with the employee group and countries in which employees are located. In addition, we maintain supplementary non-contributory defined benefit pension arrangements for eligible employees, which are primarily for benefits which are in excess of local tax limits. As at December 31, 2014, there are no active members in the UK and the U.S. defined benefit plans continuing to accrue future service benefits. On January 1, 2009, the Canadian defined benefit plans were closed to new employees. Canadian employees hired before January 1, 2009 continue to earn future service benefits in the previous plans, which includes both defined benefit and defined contribution components, while new hires since then are eligible to join a defined contribution plan. In addition, one small defined benefit plan in the Philippines remains open to new hires. Our funding policy for defined benefit pension plans is to make at least the minimum annual contributions required by regulations in the countries in which the plans are offered. Our UK defined benefit pension scheme is governed by pension trustees. In other countries in which we operate, the defined benefit pension arrangements are governed by local pension committees. Significant plan changes require the approval of the Board of Directors of the sponsoring subsidiary of SLF Inc. We also established defined contribution plans for eligible employees. Our contributions to these defined contribution pension plans may be subject to certain vesting requirements. Generally, our contributions are a set percentage of employees’ annual income and may be a set percentage of employee contributions, up to specified levels. In addition to our pension plans, in Canada and the U.S., we provide certain post-retirement health care and life insurance benefits to eligible employees and to their dependents upon meeting certain requirements. Eligible retirees may be required to pay a portion of the premiums for these benefits and, in general, deductible amounts and co-insurance percentages apply to benefit payments. These post-retirement benefits are not pre-funded. In Canada, certain post-retirement health care and life insurance benefits are provided for eligible employees who retired before December 31, 2015. Eligible employees in Canada who retire after December 31, 2015 will have access to voluntary retiree-paid health care coverage. In the U.S., certain post-retirement health care and life insurance benefits are provided to eligible retirees. In the U.S., employees who were not age 50 with 10 years of service as of December 31, 2015 only have access to subsidized retiree health care coverage until eligible for Medicare. Eligible existing and future retirees and covered dependents eligible for Medicare receive an annual contribution to a health reimbursement account to be applied against individual coverage and other eligible expenses. 25.A Risks Associated with Employee Defined Benefit Plans With the closure of the material defined benefit pension and retiree benefit plans to new entrants, the volatility associated with future service accruals for active members has been limited and will decline over time. The major risks remaining in relation to past service obligations are increases in liabilities due to a decline in discount rates, greater life expectancy than assumed and adverse asset returns. We have significantly de-risked the investments of our material defined benefit pension plans Company-wide by shifting the pension asset mix away from equities and into more fixed income and liability-matching investments. In 2018 and 2021, the risk in our UK pension plan was reduced through buy-in insurance contracts protecting the majority of pensioner benefits. The target for our material funded defined benefit plans is to minimize volatility in funded status arising from changes in discount rates and exposure to equity markets. 25.B Defined Benefit Pension and Other Post-Retirement Benefit Plans The following tables set forth the status of the defined benefit pension and other post-retirement benefit plans: 2022 2021 Pension Other post-retirement Total Pension Other post-retirement Total Change in defined benefit obligations: Defined benefit obligation, January 1 $ 3,836 $ 252 $ 4,088 $ 4,060 $ 277 $ 4,337 Current service cost 49 7 56 59 7 66 Interest cost 106 8 114 98 7 105 Actuarial losses (gains) (1,027) (51) (1,078) (169) (23) (192) Benefits paid (194) (14) (208) (192) (15) (207) Foreign exchange rate movement (7) 4 (3) (20) (1) (21) Defined benefit obligation, December 31 $ 2,763 $ 206 $ 2,969 $ 3,836 $ 252 $ 4,088 Change in plan assets: Fair value of plan assets, January 1 $ 3,643 $ — $ 3,643 $ 3,909 $ — $ 3,909 Administrative expense (1) — (1) (1) — (1) Interest income on plan assets 101 — 101 92 — 92 Return on plan assets (excluding amounts included in net interest expense) (825) — (825) (234) — (234) Employer contributions 85 14 99 94 15 109 Benefits paid (194) (14) (208) (192) (15) (207) Foreign exchange rate movement (10) — (10) (25) — (25) Fair value of plan assets, December 31 $ 2,799 $ — $ 2,799 $ 3,643 $ — $ 3,643 Amounts recognized on Statement of Financial Position: Fair value of plan assets $ 2,799 $ — $ 2,799 $ 3,643 $ — $ 3,643 Defined benefit (obligation) (2,763) (206) (2,969) (3,836) (252) (4,088) Net recognized (liability) asset, December 31 $ 36 $ (206) $ (170) $ (193) $ (252) $ (445) Components of net benefit expense recognized: Current service cost $ 49 $ 7 $ 56 $ 59 $ 7 $ 66 Administrative expense 1 — 1 1 — 1 Net interest expense (income) 5 8 13 6 7 13 Other long-term employee benefit losses (gains) — (6) (6) — (3) (3) Net benefit expense $ 55 $ 9 $ 64 $ 66 $ 11 $ 77 Remeasurement of net recognized (liability) asset: Return on plan assets (excluding amounts included in net interest expense) $ (825) $ — $ (825) $ (234) $ — $ (234) Actuarial gains (losses) arising from changes in demographic assumptions 18 — 18 2 — 2 Actuarial gains (losses) arising from changes in financial assumptions 1,027 45 1,072 187 13 200 Actuarial gains (losses) arising from experience adjustments (18) — (18) (20) 7 (13) Foreign exchange rate movement (1) (3) (4) (3) — (3) Components of defined benefit costs recognized in Other comprehensive income (loss) $ 201 $ 42 $ 243 $ (68) $ 20 $ (48) 25.C Principal Assumptions for Significant Plans 2022 2021 Canada % UK % U.S. % Canada % UK % U.S. % To determine defined benefit obligation at end of year: Discount rate for pension plans 5.00 4.75 5.55 3.00 1.90 3.00 Rate of compensation increase 2.75 n/a n/a 2.80 n/a n/a Pension increases 0.00-0.05 3.05 n/a 0.00-0.05 3.30 n/a To determine net benefit expense for year: Discount rate for pension plans 3.00 1.90 3.00 2.70 1.30 2.65 Rate of compensation increase 2.80 n/a n/a 2.80 n/a n/a Pension increases 0.00-0.05 3.30 n/a 0.00-0.05 2.95 n/a Health care trend rates: Initial health care trend rate 5.16 n/a 7.00 5.10 n/a 6.50 Ultimate health care trend rate 4.00 n/a 5.00 4.00 n/a 5.00 Year ultimate health care trend rate reached 2040 n/a 2031 2040 n/a 2025 2022 2021 Canada UK U.S. Canada UK U.S. Mortality rates: Life expectancy (in years) for individuals currently at age 65: Male 23 23 22 23 23 22 Female 25 25 23 25 25 23 Life expectancy (in years) at 65 for individuals currently at age 45: Male 24 25 23 24 24 23 Female 26 27 25 26 27 25 Average duration (in years) of pension obligation 13.2 12.9 10.0 16.9 17.4 12.2 Discount Rate, Rate of Compensation Increase and Health Care Cost The major economic assumptions which are used in determining the actuarial present value of the accrued benefit obligations vary by country. The discount rate assumption used for material plans is determined by reference to the market yields, as of December 31, of high-quality corporate bonds that have terms to maturity approximating the terms of the related obligation. In countries where a deep corporate market does not exist, government bonds are used. Compensation and health care trend assumptions are based on expected long-term trend assumptions which may differ from actual results. 25.D Sensitivity of Key Assumptions The following table provides the potential impact of changes in key assumptions on the defined benefit obligation for pension and other post-retirement benefit plans as at December 31, 2022. These sensitivities are hypothetical and should be used with caution. The impact of changes in each key assumption may result in greater than proportional changes in sensitivities. Pension Post-retirement Interest/discount rate sensitivity: (1) 1% decrease $ 391 $ 20 1% increase $ (309) $ (17) Rate of compensation increase assumption: 1% decrease $ (39) n/a 1% increase $ 44 n/a Health care trend rate assumption: 1% decrease n/a $ (10) 1% increase n/a $ 12 Mortality rates: (2) 10% decrease $ 64 $ 3 (1) Represents a parallel shift in interest rates across the entire yield curve, resulting in a change in the discount rate assumption. (2) Represents 10% decrease in mortality rates at each age. 25.E Fair Value of Plan Assets Composition of fair value of plan assets, December 31: 2022 2021 Equity investments 3 % 3 % Fixed income investments 65 % 64 % Real estate investments 11 % 9 % Qualifying insurance contract 15 % 19 % Other 6 % 5 % Total composition of fair value of plan assets 100 % 100 % The fair value of our equity investments in 2022 and 2021 are consistent with Level 1 or Level 2 fair value hierarchy. In 2022, 2% of our fixed income investments (2021 — 4%) are determined based on valuation techniques consistent with Level 1 of the fair value hierarchy. The assets of the defined benefit pension plans are primarily held in trust for plan members, and are managed within the provisions of each plan’s investment policies and procedures. Diversification of the investments is used to limit credit, market, and foreign currency risks. We have significantly de-risked the investments of our material defined benefit pension plans by shifting the pension asset mix away from equities and into more fixed income and liability-matching investments. In 2018 and in 2021, the risk in our UK pension plan was reduced through buy-in insurance contracts, protecting the majority of pensioner benefits. The long-term investment objectives of the defined benefit pension plans are to equal or exceed the rate of growth of the liabilities. Over shorter periods, the objective of the defined benefit pension plan investment strategy is to minimize volatility in the funded status. Liquidity is managed with consideration to the cash flow requirements of the liabilities. 25.F Future Cash Flows The following tables set forth the expected contributions and expected future benefit payments of the defined benefit pension and other post-retirement benefit plans: Pension Post-retirement Total Expected contributions for the next 12 months $ 70 $ 16 $ 86 Expected Future Benefit Payments 2023 2024 2025 2026 2027 2028 to 2032 Pension $ 158 $ 159 $ 167 $ 171 $ 174 $ 911 Post-retirement 16 17 17 18 18 97 Total $ 174 $ 176 $ 184 $ 189 $ 192 $ 1,008 25.G Defined Contribution Plans We expensed $160 in 2022 (2021 — $142) with respect to defined contribution plans. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings per share [abstract] | |
Earnings (Loss) Per Share | 26. Earnings (Loss) Per Share Details of the calculation of the net income (loss) and the weighted average number of shares used in the earnings per share computations are as follows: For the years ended December 31, 2022 2021 Common shareholders' net income (loss) for basic earnings per share $ 3,060 $ 3,934 Add: Increase in income due to convertible instruments (1) 10 10 Common shareholders’ net income (loss) on a diluted basis $ 3,070 $ 3,944 Weighted average number of common shares outstanding for basic earnings per share (in millions) 586 586 Add: Dilutive impact of stock options (2) (in millions) — — Dilutive impact of convertible instruments (1) (in millions) 3 4 Weighted average number of common shares outstanding on a diluted basis (in millions) 589 590 Basic earnings (loss) per share $ 5.22 $ 6.72 Diluted earnings (loss) per share $ 5.21 $ 6.69 (1) The convertible instruments are the SLEECS B issued by SLCT I. (2) Excludes the impact of 1 million stock options for the year ended December 31, 2022 (December 31, 2021 — 1 million) because these stock options were anti-dilutive for the year. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2022 | |
Analysis Of Other Comprehensive Income By Item [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 27. Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss), net of taxes, are as follows: 2022 2021 For the years ended December 31, Balance, beginning of period Other Balance, Balance, beginning of period Other Balance, Items that may be reclassified subsequently to income: Unrealized foreign currency translation gains (losses), net of hedging activities $ 953 $ 934 $ 1,887 $ 1,155 $ (202) $ 953 Unrealized gains (losses) on available-for-sale assets 266 (1,290) (1,024) 632 (366) 266 Unrealized gains (losses) on cash flow hedges (7) (11) (18) (13) 6 (7) Share of other comprehensive income (loss) in joint ventures and associates (47) (109) (156) (42) (5) (47) Items that will not be reclassified subsequently to income: Remeasurement of defined benefit plans (322) 168 (154) (283) (39) (322) Revaluation of property, plant and equipment 145 (2) 143 145 — 145 Total $ 988 $ (310) $ 678 $ 1,594 $ (606) $ 988 Total attributable to: Participating policyholders $ 2 $ 21 $ 23 $ 5 $ (3) $ 2 Non-controlling interest — 4 4 — — — Shareholders 986 (335) 651 1,589 (603) 986 Total $ 988 $ (310) $ 678 $ 1,594 $ (606) $ 988 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Events After Reporting Period [Abstract] | |
Subsequent Events | 28. Subsequent Events On January 20, 2023, we entered into a 15-year exclusive bancassurance partnership with Dah Sing Bank, Limited effective July 1, 2023. The partnership significantly expands our distribution in Asia. An initial payment of approximately $260 will be made on July 1, 2023, based on the contractual terms of the agreement. Effective February 1, 2023, we completed the sale of our sponsored markets business to Canadian Premier. Our sponsored markets business includes a variety of association & affinity, and group creditor clients. On February 1, 2023, we completed the acquisition of AAM. AAM minority shareholders also have the option to require us to purchase their shares in 2028. We have a call option to acquire the remaining interest held by these minority shareholders commencing in 2028. Due to the recent close of this transaction, the purchase accounting has not been completed. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Description of Business | Description of Business Sun Life Financial Inc. ("SLF Inc.") is a publicly traded company domiciled in Canada and is the holding company of Sun Life Assurance Company of Canada ("Sun Life Assurance"). Both companies are incorporated under the Insurance Companies Act (Canada), and are regulated by the Office of the Superintendent of Financial Institutions, Canada ("OSFI"). SLF Inc. and its subsidiaries are collectively referred to as "us", "our", "ours", "we", or "the Company". We are an internationally diversified financial services organization providing savings, retirement and pension products, and life and health insurance to individuals and groups through our operations in Canada, the United States ("U.S."), Asia, and the United Kingdom ("UK"). We also operate mutual fund and investment management businesses, primarily in Canada, the U.S., and Asia. |
Statement of Compliance | Statement of Compliance We prepared our Consolidated Financial Statements in accordance with International Financial Reporting Standards ("IFRS") as issued and adopted by the International Accounting Standards Board ("IASB"). Our accounting policies have been applied consistently within our Consolidated Financial Statements. |
Basis of Presentation | Basis of Presentation Our Consolidated Statements of Financial Position are presented in the order of liquidity and each statement of financial position line item includes both current and non-current balances, as applicable. We have defined our reportable business segments and the amounts disclosed for those segments based on our management structure and the manner in which our internal financial reporting is conducted. Transactions between segments are executed and priced on an arm’s-length basis in a manner similar to transactions with third parties. The significant accounting policies used in the preparation of our Consolidated Financial Statements are summarized below and are applied consistently. |
Estimates, Assumptions and Judgments | Estimates, Assumptions and Judgments The application of our accounting policies requires estimates, assumptions and judgments as they relate to matters that are inherently uncertain. We have established procedures to ensure that our accounting policies are applied consistently and that the processes for changing methodologies for determining estimates are controlled and occur in an appropriate and systematic manner. Use of Estimates and Assumptions The preparation of our Consolidated Financial Statements requires us to make estimates and assumptions that affect the application of our policies and the reported amounts of assets, liabilities, revenue and expenses. Key sources of estimation uncertainty include the measurement of insurance contract liabilities and investment contract liabilities, determination of fair value, impairment of financial instruments, determination and impairment of goodwill and intangible assets, determination of provisions and liabilities for pension plans, other post-retirement benefits, income taxes, and the determination of fair value of share-based payments. Actual results may differ from our estimates thereby impacting our Consolidated Financial Statements. Information on our use of estimates and assumptions are discussed in this Note. Judgments In preparation of these Consolidated Financial Statements, we use judgments to select assumptions and determine estimates as described above. We also use judgment when applying accounting policies and when determining the classification of insurance contracts, investment contracts and service contracts; the substance of whether our relationship with a structured entity, subsidiary, joint venture or associate constitutes control, joint control or significant influence; functional currencies; contingencies; acquisitions; deferred income tax assets; and the determination of cash generating unit ("CGU"). COVID-19 Pandemic Considerations In early 2020, the world was impacted by COVID-19, which was declared a global pandemic by the World Health Organization. The overall impact of the COVID-19 pandemic is still uncertain and dependent on the progression of the virus and on actions taken by governments, businesses and individuals, which could vary by country and result in differing outcomes. The application of our accounting policies requires estimates, assumptions and judgments as they relate to matters that are inherently uncertain. We have established procedures to ensure that our accounting policies are applied consistently and that the processes for changing methodologies for determining estimates are controlled and occur in an appropriate and systematic manner. For our insurance contract liabilities, no material COVID-19 specific provisions or adjustments to our long-term assumptions have been made, and we continue to monitor our experience and exposure to the COVID-19 pandemic. Significant estimates and judgments have been made in the following areas and are discussed as noted: Insurance contract and investment contract assumptions and measurement Note 1 Insurance Contract Liabilities and Investment Contract Liabilities Note 10 Insurance Contract Liabilities and Investment Contract Liabilities Determination of fair value Note 1 Basis of Consolidation Note 1 Determination of Fair Value Note 3 Acquisitions and Other Note 5 Total Invested Assets and Related Net Investment Income Impairment of financial instruments Note 1 Financial Assets Excluding Derivative Financial Instruments Note 6 Financial Instrument Risk Management Income taxes Note 1 Income Taxes Note 20 Income Taxes Pension plans Note 1 Pension Plans and Other Post-Retirement Benefits Note 25 Pension Plans and Other Post-Retirement Benefits Goodwill and intangible assets on acquisition and impairment Note 1 Goodwill Note 1 Intangible Assets Note 3 Acquisitions and Other Note 9 Goodwill and Intangible Assets Determination of control for purpose of consolidation Note 1 Basis of Consolidation Note 16 Interests in Other Entities Share-based payments Note 19 Share-Based Payments |
Basis of Consolidation | Basis of Consolidation Our Consolidated Financial Statements include the results of operations and the financial position of subsidiaries, which includes structured entities controlled by us, after intercompany balances and transactions have been eliminated. Subsidiaries are fully consolidated from the date we obtain control, and deconsolidated on the date control ceases. The acquisition method is used to account for the acquisition of a subsidiary from an unrelated party at the date that control is obtained, with the difference between the consideration transferred and the fair value of the subsidiary’s net identifiable assets acquired recorded as goodwill. Judgment is required to determine fair value of the net identifiable assets acquired in a business combination. Interests in controlled entities held by external parties are reported as non-controlling interests ("NCI"). We control an entity when we have power over an entity, exposure to or rights to variable returns from our involvement with an entity, and the ability to affect our returns through our power over an entity. Power exists when we have rights that give us the ability to direct the relevant activities, which are those activities that could significantly affect the entity’s returns. Power can be obtained through voting rights or other contractual arrangements. Judgment is required to determine the relevant activities and which party has power over these activities. When we have power over and variable returns from an entity, including an investment fund that we manage, we also apply significant judgment in determining whether we are acting as a principal or agent. To make this determination, we consider factors such as how much discretion we have regarding the management of the investment fund and the magnitude and extent of variability associated with our interests in the fund. If we determine we are the principal rather than the agent, we would consolidate the assets and liabilities of the fund. Interests held by external parties in investment funds that we consolidate are recorded as third-party interest in consolidated investment funds in Other liabilities. If we lose control of an entity, the assets and liabilities of that entity are derecognized from our Consolidated Statements of Financial Position at the date at which control is lost and any investment retained is remeasured to fair value. A joint venture exists when SLF Inc., or one of its subsidiaries, has joint control of a joint arrangement and has rights to the net assets of the arrangement. Joint control is the contractually agreed sharing of control and exists only when the decisions about the relevant activities require the unanimous consent of the parties sharing control. Associates are entities over which SLF Inc. or its subsidiaries are able to exercise significant influence. Significant influence is the power to participate in the financial and operating policy decisions of an investee but not have control or joint control over those decisions. Significant influence is generally presumed to exist when SLF Inc. or its subsidiaries holds greater than 20% of the voting power of the investee but does not have control or joint control. The equity method is used to account for our interests in joint ventures and associates. A joint operation exists when SLF Inc., or one of its subsidiaries, has joint control of an arrangement that gives it rights to the assets and obligations for the liabilities of the operation, rather than the net assets of the arrangement. For joint operations, we record our share of the assets, liabilities, revenue and expenses of the joint operation. Judgment is required to determine whether contractual arrangements between multiple parties results in control, joint control or significant influence, with consideration of the relevant activities of the entity, voting rights, representation on boards of directors and other decision-making factors. Judgment is also required to determine if a joint arrangement is a joint venture or joint operation, with consideration of our rights and obligations and the structure and legal form of the arrangement. |
Determination of Fair Value | Determination of Fair Value Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value is measured using the assumptions that market participants would use when pricing an asset or liability. We determine fair value by using quoted prices in active markets for identical or similar assets or liabilities. When quoted prices in active markets are not available, fair value is determined using valuation techniques that maximize the use of observable inputs. When observable valuation inputs are not available, significant judgment is required to determine fair value by assessing the valuation techniques and valuation inputs. The use of alternative valuation techniques or valuation inputs may result in a different fair value. A description of the fair value methodologies, assumptions, valuation techniques, and valuation inputs by type of asset is included in Note 5. |
Foreign Currency Translation | Foreign Currency Translation Translation of Transactions in Foreign Currencies The financial results of SLF Inc. and its subsidiaries, joint ventures and associates are prepared in the currency in which they conduct their ordinary course of business, which is referred to as functional currency. Transactions occurring in currencies other than the functional currency are translated to the functional currency using the spot exchange rates at the dates of the transactions. Monetary assets and liabilities in foreign currencies are translated to the functional currency at the exchange rate at the statement of financial position date. Non-monetary assets and liabilities in foreign currencies that are held at fair value are translated using the exchange rate at the statement of financial position date, while non-monetary assets and liabilities that are measured at historical cost are translated using the exchange rate at the date of the transaction. The resulting exchange differences from the translation of monetary items and non-monetary items held at fair value, with changes in fair value recorded to income, are recognized in our Consolidated Statements of Operations. For monetary assets classified as available-for-sale ("AFS"), translation differences calculated on amortized cost are recognized in our Consolidated Statements of Operations and other changes in carrying amount are recognized in other comprehensive income ("OCI"). The exchange differences from the translation of non-monetary items classified as AFS are recognized in OCI. Translation to the Presentation Currency In preparing our Consolidated Financial Statements, the financial statements of foreign operations are translated from their respective functional currencies to Canadian dollars, our presentation currency. Assets and liabilities are translated at the closing exchange rate at the statement of financial position date, and income and expenses are translated using the average exchange rates. The accumulated gains or losses arising from translation of functional currencies to the presentation currency, net of the effect of any hedges, are included as a separate component of OCI within equity. Upon disposal of a foreign operation that includes loss of control, significant influence or joint control, the cumulative exchange gain or loss related to that foreign operation is recognized in income. |
Financial Assets Excluding Derivative Financial Instruments | Financial Assets Excluding Derivative Financial Instruments Financial assets include cash, cash equivalents and short-term securities, debt securities, equity securities, mortgages and loans, financial assets included in other invested assets and policy loans. Financial assets are designated as financial assets at fair value through profit or loss ("FVTPL") or AFS assets, or are classified as loans and receivables at initial recognition. The following table summarizes the financial assets included in our Consolidated Statements of Financial Position and the asset classifications applicable to these assets: Cash, cash equivalents and short-term securities FVTPL Debt securities FVTPL and AFS Equity securities FVTPL and AFS Mortgages and loans Loans and receivables Other invested assets FVTPL and AFS Policy loans Loans and receivables Mortgages and loans include mortgages, loans and debt securities not quoted in an active market. Financial assets included in Other invested assets include investments in limited partnerships, segregated funds and mutual funds. Cash equivalents are highly liquid instruments with a term to maturity of three months or less, while short-term securities have a term to maturity exceeding three months but less than one year. Policy loans are fully secured by the policy values on which the loans are made. The accounting for each asset classification is described in the following sections. i) Initial Recognition and Subsequent Measurement Generally, debt securities, equity securities and other invested assets supporting our insurance contract liabilities or investment contract liabilities measured at fair value are designated as FVTPL, while debt securities, equity securities and other invested assets not supporting our insurance contract liabilities or that are supporting investment contract liabilities are measured at amortized cost or designated as AFS. Mortgages and loans and policy loans are classified as loans and receivables. Financial assets are recognized in the Consolidated Statements of Financial Position on their trade dates, which are the dates that we commit to purchase or sell the assets. Originated mortgages and loans are recognized in the Consolidated Statements of Financial Position on their funding dates. Financial Assets at Fair Value Through Profit or Loss Financial assets at FVTPL include financial assets that are held-for-trading ("HFT"), as well as financial assets that have been designated as FVTPL at initial recognition. A financial asset is classified as HFT if it is acquired principally for the purpose of selling in the near term. A financial asset can be designated as FVTPL if it eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise from measuring assets or liabilities or recognizing the gains and losses on them on different bases; or if a group of financial assets, financial liabilities or both, is managed and its performance is evaluated on a fair value basis. Cash equivalents and short-term securities have been classified as HFT. Generally, debt securities, equity securities and other invested assets supporting insurance contract liabilities or investment contract liabilities measured at fair value have been designated as FVTPL. This designation has been made to eliminate or significantly reduce the measurement inconsistency that would arise due to the measurement of the insurance contract or investment contract liabilities, which are based on the carrying value of the assets supporting those liabilities. Because the carrying value of insurance contract liabilities is determined by reference to the assets supporting those liabilities, changes in the insurance contract liabilities generally offset changes in the fair value of debt securities classified as FVTPL, except for changes that are due to impairment. The majority of equity securities and other invested assets classified as FVTPL are held to support products where investment returns are passed through to policyholders and therefore, changes in the fair value of those assets are significantly offset by changes in insurance contract liabilities. Financial assets classified as FVTPL are recorded at fair value in our Consolidated Statements of Financial Position and transaction costs are expensed immediately. Changes in fair value as well as realized gains and losses on sale are recorded in Fair value and foreign currency changes on assets and liabilities in our Consolidated Statements of Operations. Interest income earned and dividends received are recorded in Interest and other investment income in our Consolidated Statements of Operations. Available-for-Sale Financial Assets Financial assets classified as AFS are recorded at fair value in our Consolidated Statements of Financial Position and transaction costs are capitalized on initial recognition. Transaction costs for debt securities are recognized in income using the effective interest method, while transaction costs for equity securities and other invested assets are recognized in income when the asset is derecognized. Changes in fair value are recorded to unrealized gains and losses in OCI. For foreign currency translation, exchange differences calculated on the amortized cost of AFS debt securities are recognized in income and exchange differences calculated on other changes in carrying amount are recognized in OCI. The exchange differences from the translation of AFS equity securities and other invested assets are recognized in OCI. Interest income earned and dividends received are recorded in Interest and other investment income in our Consolidated Statements of Operations. Net impairment losses and realized gains and losses on the sale of assets classified as AFS are reclassified from accumulated OCI to Net gains (losses) on available-for-sale assets in our Consolidated Statements of Operations. Loans and Receivables Loans and receivables are generally carried at amortized cost. Transaction costs for mortgages and loans are capitalized on initial recognition and are recognized in income using the effective interest method. Realized gains and losses on the sale of mortgages and loans, interest income earned, and fee income are recorded in Interest and other investment income in our Consolidated Statements of Operations. Solely Payments of Principal and Interest ("SPPI") Disclosures In September 2016, the IASB issued Amendments to IFRS 4 to allow insurance entities whose predominant activities are to issue contracts within the scope of IFRS 4 Insurance Contracts ("IFRS 4") an optional temporary exemption from applying IFRS 9 Financial Instruments ("IFRS 9") ("deferral approach"). We qualify and have elected to take the deferral approach as our activities are predominantly connected with insurance and we will continue to apply IAS 39 Financial Instruments: Recognition and Measurement ("IAS 39"), the existing financial instrument standard. To enable a comparison to entities applying IFRS 9 we disclose those invested assets that pass the SPPI test, excluding any that are managed and whose performance is evaluated on a fair value basis. Except for Debt securities designated as AFS and Mortgages and loans, our financial assets are managed and their performance is evaluated on a fair value basis. Please refer to Note 5.A.i for the related disclosure as at December 31, 2022 and 2021. Financial assets that pass the SPPI test are assets with contractual terms that give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. ii) Derecognition Financial assets are derecognized when our rights to contractual cash flows expire, when we transfer substantially all our risks and rewards of ownership, or when we no longer retain control. iii) Impairment Financial assets are assessed for impairment on a quarterly basis. Financial assets are impaired and impairment losses are incurred if there is objective evidence of impairment as a result of one or more loss events and that event has an impact on the estimated future cash flows that can be reliably estimated. Objective evidence of impairment generally includes significant financial difficulty of the issuer, including actual or anticipated bankruptcy or defaults and delinquency in payments of interest or principal or disappearance of an active market for that financial asset. Objective evidence of impairment for an investment in an equity instrument or other invested asset also includes, but is not limited to, the financial condition and near-term prospects of the issuer, including information about significant changes with adverse effects that have taken place in the technological, market, economic, or legal environment in which the issuer operates that may indicate that the carrying amount will not be recovered, and a significant or prolonged decline in the fair value of an equity instrument or other invested asset below its cost. Management exercises considerable judgment in assessing for objective evidence of impairment. Due to the inherent risks and uncertainties in our evaluation of assets or groups of assets for objective evidence of impairment, the actual impairment amount and the timing of the recognition of impairment may differ from management assessment. The impairment assessment process is discussed in Note 6. Financial Assets at Fair Value Through Profit or Loss Since financial assets classified as FVTPL are carried at fair value with changes in fair value recorded to income, any reduction in value of the assets due to impairment is already reflected in income. However, the impairment of assets classified as FVTPL generally impacts the change in insurance contract liabilities due to the impact of asset impairment on estimates of future cash flows. Available-for-Sale Financial Assets When there is objective evidence that a financial asset classified as AFS is impaired, the loss in accumulated OCI is reclassified to Net gains (losses) on available-for-sale assets in our Consolidated Statements of Operations. Following impairment loss recognition, a debt security continues to be carried at fair value with changes in fair value recorded in OCI, and it is assessed quarterly for further impairment loss or reversal. Subsequent losses on an impaired equity security or other invested asset, including losses relating to foreign currency changes, are reclassified from OCI to income in subsequent reporting periods until the asset is derecognized. Once an impairment loss on a debt security classified as AFS is recorded to income, any reversal of impairment loss through income occurs only when the recovery in fair value is objectively related to an event occurring after the impairment was recognized. Impairment losses on an equity security or other invested asset classified as AFS are not reversed through income. Loans and Receivables If an impairment loss on an individual mortgage or loan has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate. For collateralized financial assets, the present value of the estimated future cash flows reflects the cash flows that may result from foreclosure less costs to sell, whether or not foreclosure is probable. If no evidence of impairment exists for an individually assessed mortgage or loan, it is included in a group of loans with similar credit risk characteristics and collectively assessed for impairment. When an impairment loss has been incurred, the carrying amount of the asset is reduced through the use of an allowance account, and the amount of the loss is recognized in income. If the impairment loss subsequently decreases and the decrease can be related objectively to an event occurring after the initial impairment charge was recognized, the previous impairment charge is reversed by adjusting the allowance account and the reversal is recognized in income. Interest income is recognized on impaired mortgages and loans using the effective interest rate method and it is based on the estimated future cash flows used to measure the impairment loss. Changes in the allowance account, other than write-offs net of recoveries, are charged against Interest and other investment income in our Consolidated Statements of Operations. Write-offs, net of recoveries, are deducted from the allowance account when there is no realistic prospect of recovery, which is typically not before derecognition of the asset through foreclosure or sale. Collateral Cash received (pledged) as collateral is recognized (derecognized) in our Consolidated Statements of Financial Position with corresponding amounts recognized in Other liabilities (Other assets), respectively. All other types of assets received (pledged) as collateral are not recognized (derecognized) in our Consolidated Statements of Financial Position. |
Dervative Financial Instruments | Derivative Financial Instruments All derivative financial instruments are recorded at fair value in our Consolidated Statements of Financial Position. Derivatives with a positive fair value are recorded as Derivative assets while derivatives with a negative fair value are recorded as Derivative liabilities. The accounting for the changes in fair value of a derivative instrument depends on whether or not it is designated as a hedging instrument for hedge accounting purposes. Changes in (i) fair value of derivatives that are not designated for hedge accounting purposes, which are defined as derivative investments, and (ii) embedded derivatives that are bifurcated, are recorded in Fair value and foreign currency changes on assets and liabilities in our Consolidated Statements of Operations. Income earned or paid on these derivatives is recorded in Interest and other investment income in our Consolidated Statements of Operations. Hedge accounting is applied to certain derivatives to reduce income statement volatility. When certain qualification criteria are met, hedge accounting recognizes the offsetting effects of hedging instruments and hedged items in income or defers the effective portion of changes in fair value of hedging instruments in OCI until there is a recognition event, such as the occurrence of a forecasted transaction or the disposal of an investment in a foreign operation, or hedge accounting is discontinued. All hedging relationships are documented at inception and hedge effectiveness is assessed at inception and on a quarterly basis to determine whether the hedging instruments are highly effective in offsetting changes attributable to the hedged risk in the fair value or cash flows of the hedged items. Fair Value Hedges Certain interest rate swaps and foreign currency forwards are designated as hedging instruments in fair value hedges of the interest rate or foreign exchange rate risks associated with AFS assets. Changes in fair value of the derivatives are recorded in Interest and other investment income in our Consolidated Statements of Operations. The change in fair value of the AFS assets related to the hedged risk is reclassified from OCI to income. As a result, ineffectiveness, if any, is recognized in income to the extent that changes in fair value of the derivatives and AFS assets do not offset. Interest income earned and paid on the AFS assets and swaps in the fair value hedging relationships are recorded in Interest and other investment income in our Consolidated Statements of Operations. Cash Flow Hedges Certain equity and foreign currency forwards are designated as hedging instruments in cash flow hedges for anticipated payments of awards under certain share-based payment plans and for anticipated foreign currency purchases of foreign operations. Changes in the fair value of derivatives for the effective portion of the hedge are recognized in OCI, while the ineffective portion of the hedge and any items excluded from the hedging relationship, such as the spot-to-forward differential, are recognized in Interest and other investment income in our Consolidated Statements of Operations. A portion of the amount recognized in OCI related to the equity forwards is reclassified to income as a component of Operating expenses as the liabilities for the share-based payment awards are accrued over the vesting period. A portion of the amounts recognized in OCI related to the foreign currency forwards would be reclassified to income upon disposal or impairment of the foreign operations. All amounts recognized in, or reclassified from, OCI are net of related taxes. Embedded Derivatives An embedded derivative is a component of a host contract that modifies the cash flows of the host contract in a manner similar to a derivative, according to a specified interest rate, financial instrument price, foreign exchange rate, underlying index or other variable. We are required to separate embedded derivatives from the host contract, if an embedded derivative has economic and risk characteristics that are not closely related to the host contract, meets the definition of a derivative, and the combined contract is not measured at fair value with changes recognized in income. If an embedded derivative is bifurcated for accounting purposes from the host contract, it will be accounted for as a derivative. For further details on embedded derivatives in insurance contracts, see the Insurance Contract Liabilities accounting policy in this Note. Obligations for Securities Borrowing The obligation for the securities borrowing represents our commitment to deliver securities under short sale program. Under the program, we short sell the securities that we borrowed from a third party. The obligation to return the securities is not recognized in the Consolidated Statements of |
Investment Properties | Investment Properties Investment properties are real estate held to earn rental income, for capital appreciation, or both. Properties held to earn rental income or for capital appreciation that have an insignificant portion that is owner-occupied are classified as investment properties. Properties that do not meet these criteria are classified as property and equipment, included in Other assets as described below. Expenditures related to ongoing maintenance of properties incurred subsequent to acquisition are expensed. Investment properties are initially recognized at cost in our Consolidated Statements of Financial Position. Various costs incurred associated with the acquisition of an investment property are either capitalized or expensed depending on whether or not the acquisition is considered a business combination. Investment properties are subsequently measured at fair value with changes in value recorded to Fair value and foreign currency changes on assets and liabilities in our Consolidated Statements of Operations. |
Other Invested Assets - Non-Financial Assets | Other Invested Assets - Non-Financial Assets Other invested assets also include non-financial assets such as investments in joint ventures and associates, which are accounted for using the equity method. Investments in joint ventures and associates are initially recorded at cost. The investment in joint ventures and associates is increased by our share of capital contributions and for purchases of additional interests and is reduced by distributions received. In addition, subsequent adjustments to the investment are made for our share of net income or loss and our share of OCI. Our share of net income is recorded in Interest and other investment income in our Consolidated Statements of Operations and our share of OCI is recorded in our Consolidated Statements of Comprehensive Income (Loss). Impairment losses on equity method investments are recognized when events or changes in circumstances indicate that they are impaired. The impairment loss recognized is the difference between the carrying amount and the recoverable amount. |
Other Assets | Other AssetsOther assets, which are measured at amortized cost, include accounts receivable, investment income due and accrued, deferred acquisition costs, property and equipment, and lessee’s right-of-use assets. Deferred acquisition costs arising from service contracts or from service components of investment contracts are amortized over the expected life of the contracts based on the future expected fees. Owner-occupied properties are amortized to their residual value over 25 to 49 years. Furniture, computers, other office equipment, and leasehold improvements are amortized to their residual value over 2 to 20 years. The right-of-use asset is subsequently depreciated on a straight-line basis over the lease term. |
Reinsurance Assets | Reinsurance Assets In the normal course of business, we use reinsurance to limit exposure to large losses. We have a retention policy that requires that such arrangements be placed with well-established, highly-rated reinsurers. Reinsurance assets are measured consistently with the amounts associated with the underlying insurance contracts and in accordance with the terms of each reinsurance contract. Amounts due to or from reinsurers with respect to premiums received or paid claims are included in Other assets and Other liabilities in the Consolidated Statements of Financial Position. Premiums for reinsurance ceded are presented as premiums ceded in the Consolidated Statements of Operations. Reinsurance expenses (recoveries), as presented in our Consolidated Statements of Operations, represent reinsurance expenses and expense recoveries resulting from reinsurance agreements. Reinsurance assets are subject to impairment testing. If impaired, the carrying value is reduced, and an impairment loss is recognized in Reinsurance expenses (recoveries) in our Consolidated Statements of Operations. Impairment occurs when objective evidence exists (as a result of an event) after the initial recognition of the reinsurance asset indicating that not all amounts due under the terms of the contract will be received, and the impairment can be reliably measured. Reinsurance assumed is accounted for as an insurance, investment or service contract depending on the underlying nature of the agreement and if it meets the definition of an insurance, investment or service contract. For the accounting for these types of contracts, see the respective policy section in this Note. |
Leases | Leases At inception of a contract, we assess whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. For leases where we act as the lessee, we recognize a right-of-use asset and a lease liability at the commencement date of the lease. For leases where we act as the lessor, we assess whether the leases should be classified as finance or operating leases. Our leases are classified as operating leases. Operating leases are recognized into income on a straight-line basis. The right-of-use asset is initially measured at cost, which is comprised of the initial amount of the lease liability with certain adjustments, and subsequently depreciated using the straight-line method, with depreciation expense included in Operating expenses in the Consolidated Statements of Operations. The right-of-use asset is depreciated to the earlier of the lease term and its useful life. The right-of-use asset is assessed for impairment under IAS 36 Impairment of Assets . Right-of-use assets are assessed for indicators of impairment at each reporting period. If there is an indication that a right-of-use asset may be impaired, an impairment test is performed by comparing the asset’s carrying amount to its recoverable amount. If an impairment loss has been incurred, the carrying value of the right-of-use asset is reduced with the corresponding amount recognized in income. |
Intangible Assets | Intangible Assets Intangible assets consist of finite life and indefinite life intangible assets. Finite life intangible assets are amortized on a straight-line basis or using a units-of-production method, over the useful economic lives which are varying periods of up to 40 years. Amortization is charged through Operating expenses in the Consolidated Statements of Operation. The useful lives of finite life intangible assets are reviewed annually, and the amortization is adjusted as necessary. Indefinite life intangibles are not amortized, and are assessed for impairment annually or more frequently if events or changes in circumstances indicate that the asset may be impaired. Impairment is assessed by comparing the carrying values of the indefinite life intangible assets to their recoverable amounts. The recoverable amount is the higher of an asset’s fair value less costs to sell and its value in use. If the carrying values of the indefinite life intangibles exceed their recoverable amounts, these assets are considered impaired, and a charge for impairment is recognized in our Consolidated Statements of Operations. The recoverable amount of intangible assets is determined using various valuation models, which require management to make certain judgments and assumptions that could affect the estimates of the recoverable amount. |
Goodwill | Goodwill Goodwill represents the excess of the cost of an acquisition over the fair value of the net identifiable tangible and intangible assets of the acquired businesses. It is carried at original cost less any impairment subsequently incurred. Goodwill is assessed for impairment annually or more frequently if events or circumstances occur that may result in the recoverable amount of a CGU or a group of CGUs falling below its carrying value. A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent of cash inflows from other groups of assets. We exercise significant judgment in determining our CGUs. The factors considered in determining our CGUs include product cash inflows, product distribution, target markets, and how management monitors and evaluates the operations. |
Insurance Contract Liabilities | Insurance Contract Liabilities Insurance contracts are contracts under which we accept significant insurance risk from a policyholder by agreeing to compensate the policyholder if a specified uncertain future event adversely affects the policyholder. The presence of significant insurance risk in individual contracts is assessed by reviewing books of contracts with homogeneous risk features. Judgment is required to determine the classification of a contract as an insurance contract, investment contract or a service contract. As discussed in the Segregated Funds section of this Note, certain insurance contracts under which the policyholder bears the risks associated with the underlying investments are classified as Insurance contracts for account of segregated fund holders in our Consolidated Statements of Financial Position. Insurance contract liabilities, including policy benefits payable and provisions for policyholder dividends, are determined in accordance with Canadian accepted actuarial practice and any requirements of OSFI. As confirmed by guidance provided by the Canadian Institute of Actuaries ("CIA"), the current Canadian Asset Liability Method ("CALM") of valuation of insurance contract liabilities satisfies the IFRS 4 requirements for eligibility for use under IFRS. Under CALM, liabilities are set equal to the statement of financial position value of the assets required to support them. Some insurance contracts contain discretionary participation features ("DPF"), whereby the policyholder has the right to receive potentially significant additional benefits based on the actual investments and other experience on a block of similar contracts. IFRS allows the non-guaranteed, or participating, elements of such contracts to be classified as either a liability or as equity, depending on the nature of our obligation to the policyholder. The contracts issued by us contain constructive obligations to the policyholder with respect to the DPF of the contracts. We have therefore elected to classify these features as a liability, consistent with accounting treatment under CALM, and in accordance with guidance provided by the CIA. Derivatives embedded in insurance contracts are treated as separate derivatives and measured at fair value with changes in fair value recognized in income, except when the embedded derivative itself meets the definition of an insurance contract under IFRS, or when the risks and characteristics are closely related to those of the host contracts or when the derivative is the policyholder’s option to surrender an insurance contract for a fixed amount or an amount based on a fixed amount and an interest rate. The derivatives that have not been separated are accounted for as insurance contract liabilities. Significant judgment is required in determining our liabilities for insurance contracts including the assumptions required for their determination. Application of different assumptions may result in different measurement of the insurance contract liabilities. Actual experience may differ from assumptions, and estimates may change from period to period based on future events or revisions of assumptions. Key assumptions and considerations in choosing assumptions are discussed in Note 10 and sensitivities are discussed in Note 7. |
Investment Contract Liabilities | Investment Contract Liabilities Contracts issued by us that do not transfer significant insurance risk, but do transfer financial risk from the policyholder to us, are financial liabilities and are accounted for as investment contracts. Service components of investment contracts are treated as service contracts. For further details on how service components of investment contracts are treated, see the Service Contracts accounting policy in this Note. Liabilities for investment contracts without DPF are measured at FVTPL or amortized cost. Contracts recorded at FVTPL are measured at fair value at inception and each subsequent reporting period. Contracts recorded at amortized cost are initially recognized at fair value, less transaction costs directly attributable to the issue of the contract. At each subsequent period, the contracts are measured at amortized cost using the effective interest method. Changes in fair value of investment contract liabilities recorded at FVTPL and amortization on contracts recorded at amortized cost are recorded as an Increase (decrease) in investment contract liabilities in our Consolidated Statements of Operations. Deposits collected from and payments made to contract holders are recorded as an increase and decrease in Investment contract liabilities in our Consolidated Statements of Financial Position. These liabilities are derecognized when the obligation of the contract is discharged, cancelled or expired. |
Other Liabilities | Other Liabilities Other liabilities which are measured at amortized cost, include accounts payable, lines of credit, repurchase agreements, accrued expenses and taxes, senior financing, provisions, lessee’s lease liabilities and a deferred payment liability. Liabilities for provisions, other than insurance contract liabilities and investment contract liabilities, are recognized for present legal or constructive obligations as a result of a past event if it is probable that they will result in an outflow of economic resources and the amount can be reliably estimated. The amounts recognized for these provisions are the best estimates of the expenditures required to settle the present obligations or to transfer them to a third party at the statement of financial position date, considering all the inherent risks and uncertainties, as well as the time value of money. These provisions are reviewed as relevant facts and circumstances change. The lease liabilities are initially measured at the present value of lease payments over the term of the lease using a discount rate that is based on our incremental borrowing rate. Subsequently, the lease liabilities are measured at amortized cost using the effective interest method. Other financial liabilities are initially measured at fair value, which is the present value of the expected cash outflow of the obligations, using our incremental borrowing rate. Subsequently, other financial liabilities are measured at amortized cost. If there is a change to the expected timing or amount of cash outflows, the carrying amount will be adjusted to reflect the revised estimates and will be recognized in the Consolidated Statements of Operations. Further details on other financial liabilities, the put option and the deferred payment liability are included in Note 3. Senior Debentures and Subordinated Debt Senior debentures and subordinated debt liabilities are recorded at amortized cost using the effective interest method. Transaction costs are recorded as part of the liability and are recognized in income using the effective interest method. These liabilities are derecognized when the obligation of the contract is discharged, cancelled or expired. |
Service Contracts | Service Contracts Contracts issued by us to customers that do not transfer significant insurance risk and do not transfer financial risk from the customer to us, including contracts for investment management service, are classified as service contracts. Service components of investment contracts are also accounted for as service contracts. Fee income earned from these contracts is described in the Premium and Fee Income Recognition accounting policy section of this Note. Deferred acquisition costs are described under the Other Assets accounting policy section of this Note. Where the cost of meeting the obligations of the contract exceed the economic benefits expected to be received under it, a provision is recognized in Other liabilities. |
Segregated Funds | Segregated Funds Segregated funds are products for which we issue a contract where the benefit amount is directly linked to the fair value of the investments held in the particular segregated fund. Although the underlying assets are registered in our name and the segregated fund contract holder has no direct access to the specific assets, the contractual arrangements are such that the segregated fund policyholder bears the risks and rewards of the fund’s investment performance. In addition, certain contracts include guarantees from us. We derive fee income from segregated funds, which is included in Fee income in our Consolidated Statements of Operations. Policyholder transfers between general funds and segregated funds are included in Net transfer to (from) segregated funds in our Consolidated Statements of Operations. Deposits to segregated funds are reported as increases in segregated funds liabilities and are not reported as revenues in our Consolidated Statements of Operations. Investments for Account of Segregated Fund Holders Investments for account of segregated fund holders are recorded separately from the Total general fund assets in our Consolidated Statements of Financial Position and are carried at fair value. Fair values are determined using quoted market values or, where quoted market values are not available, estimated fair values as determined by us. Insurance and Investment Contracts for Account of Segregated Fund Holders Insurance contracts for account of segregated fund holders are recorded separately from the Total general fund liabilities in our Consolidated Statements of Financial Position. Insurance contracts under which the segregated fund holders bear the risks associated with the underlying investments are classified as Insurance contracts for account of segregated fund holders. The liabilities reported as Insurance contracts for account of segregated fund holders are measured at the aggregate of the policyholder account balances. Changes in the fair value of the invested assets of the segregated funds are recorded in net realized and unrealized gains (losses) within the segregated fund and are not recorded in our Consolidated Statements of Operations. Other assets and liabilities associated with these insurance contracts, such as origination costs and the liabilities associated with guarantees provided by us, are included in general fund liabilities in Insurance contract liabilities in our Consolidated Statements of Financial Position. Investment contracts for account of segregated fund holders are recorded separately from the Total general fund liabilities in our Consolidated Statements of Financial Position. Investment contracts under which the segregated fund holders bear the risks associated with the underlying investments are classified as Investment contracts for account of segregated fund holders. The liabilities reported as Investment contracts for account of segregated fund holders are measured at the aggregate of the policyholder account balances. |
Income Taxes | Income Taxes Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. Deferred income tax is provided using the liability method on temporary differences at the statement of financial position date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Current and deferred income tax relating to items recognized in the current or previous period in OCI or directly in equity is accordingly recognized in OCI or equity and not in our Consolidated Statements of Operations. Interest and penalties payable to taxation authorities are recorded in Interest expense and Operating expenses, respectively, in our Consolidated Statements of Operations. Deferred income tax assets and liabilities are calculated based on income tax rates and laws that are expected to apply when the liability is settled or the asset is realized, which are normally those enacted or considered substantively enacted at our Consolidated Statements of Financial Position dates. Deferred income tax assets are recognized for all deductible temporary differences, carry forward of unused tax credits and unused tax losses to the extent of the probability that future taxable profit will be available against which these assets can be utilized. At each reporting period, we assess all available evidence, both positive and negative, to determine the amount of deferred income tax assets to be recognized. The recognition of deferred income tax assets requires estimates and significant judgment about future events, such as projections of future taxable profits, based on the information available at the reporting date. The determination of the required provision for current and deferred income taxes requires that we interpret tax legislation in the jurisdictions in which we operate. For each reporting period, our income tax provision reflects our best estimate, based on the information available at the reporting date, of tax positions that are under audit or appeal by relevant tax authorities. To the extent that our estimate of tax positions or the timing of realization of deferred income tax assets or liabilities are not as expected, the provision for income taxes may increase or decrease in the future to reflect the actual experience. Deferred income tax is provided on temporary differences arising on investments in subsidiaries, joint ventures and associates, except where we control the timing of the reversal of the temporary difference and it is apparent that the temporary difference will not reverse in the foreseeable future. No deferred income tax asset or liability is recognized in relation to temporary differences that arise from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, did not affect either the accounting profit or taxable profit or loss. Deferred income tax assets and deferred income tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities, the deferred income taxes relate to the same taxable entity and the same taxation authority and we intend either to settle on a net basis, or to realize the asset and settle the liability simultaneously. In determining the impact of taxes, we are required to comply with Canadian accepted actuarial practice and IFRS. CALM requires that all projected cash flows associated with insurance contract liabilities, including income taxes, be included in the determination of insurance contract liabilities. The insurance contract liabilities are therefore determined including all policy-related income tax effects on a discounted basis, and then adjusted for any related deferred income tax assets and liabilities held in accordance with IFRS. The net result of this adjustment is to leave the discounting effect of the deferred income taxes associated with temporary differences on policy-related tax items in the insurance contract liabilities. |
Pension Plans and Other Post-Retirement Benefits | Pension Plans and Other Post-Retirement Benefits For defined benefit plans, the present value of the defined benefit obligation is calculated by independent actuaries using the projected unit credit method, and actuarial assumptions that represent best estimates of future variables that will affect the ultimate cost of these obligations. The discount rate used for our material defined benefit plans is determined with reference to market yields of high-quality corporate bonds that are denominated in the same currency in which the benefits will be paid, and that have terms to maturity approximating the terms of obligations. Plan assets are measured at fair value and are held in separate trustee administered funds or as qualifying insurance contracts. The difference between the fair value of the plan assets and the present value of the defined benefit obligation is recognized on the Consolidated Statements of Financial Position as an asset or liability in Other assets or Other liabilities, respectively. Costs charged to our Consolidated Statements of Operations include current service cost, any past service costs, any gains or losses from curtailments or settlements, and interest on the net defined benefit liability (asset). Remeasurement of the net defined benefit liability (asset), which includes the impact of changes to the actuarial assumption underlying the liability calculations, liability experience gains or losses, the difference between the return on plan assets and the amount included in the interest on the net defined benefit liability (asset), is reflected immediately in OCI. The calculation of the defined benefit expenses and obligations requires judgment as the recognition is dependent on various actuarial assumptions such as discount rates, health care cost trend rates and projected compensation increases. These key assumptions are discussed in Note 25. |
Dividends | Dividends Dividends payable to holders of shares of SLF Inc. are recognized in the period in which they are authorized or approved. Dividends that have been reinvested in additional common shares under the Dividend Reinvestment and Share Purchase Plan ("DRIP") are also reflected as dividends within retained earnings. Where SLF Inc. has issued common shares from treasury under the DRIP, the additional shares have been reflected in common shares. |
Premium and Fee Income Recognition | Premium and Fee Income Recognition Gross premiums for all types of insurance contracts excluding segregated fund contracts are generally recognized as revenue when due. Fee income is generated from insurance contracts and service contracts. Fee income from insurance contracts includes fees from segregated fund contracts, guarantee fees and other fees associated with insurance contracts and is typically recognized as revenue when services are rendered. |
Share-Based Payments | Share-Based Payments Stock options of SLF Inc. granted to employees are accounted for as equity-settled share-based payment transactions. The total compensation expense for stock options is computed based on the fair value of the stock option at the date of grant and the estimated number of options expected to vest at the end of the vesting period. The expense is recognized over the vesting period as compensation expense in Operating expenses in our Consolidated Statements of Operations, with an offset to contributed surplus in our Consolidated Statements of Changes in Equity. When options are exercised, new common shares are issued, contributed surplus is reversed and the common shares issued are credited to common shares in our Consolidated Statements of Changes in Equity. Other share-based payment plans based on the value of SLF Inc.’s common shares are accounted for as cash-settled share-based payment transactions. The total liabilities for these plans are computed based on the estimated number of awards expected to vest at the end of the vesting period. The liabilities are recomputed at the end of each reporting period and are measured at the fair value of the award at that reporting date. The liabilities are accrued and expensed on a straight-line basis over the vesting periods. The liabilities are settled in cash at the end of the vesting period. Share-based payment awards within MFS Investment Management ("MFS"), which are based on their own shares, are accounted for as cash-settled share-based payment awards. The vested and unvested awards, as well as the shares that have been issued under these plans, are recognized as liabilities because MFS has a practice of purchasing the issued shares from employees after a specified holding period. The total liabilities for these plans are computed based on the estimated number of awards expected to vest at the end of the vesting period. The liabilities are accrued over the vesting period and are measured at fair value at each reporting period with the change in fair value recognized as compensation expense in Operating expenses in our Consolidated Statements of Operations. The liabilities are settled in cash when the shares are purchased from the employees. |
Basic and Diluted Earnings Per Share ("EPS") | Basic and Diluted Earnings Per Share ("EPS") Basic EPS is calculated by dividing the common shareholders’ net income by the weighted average number of common shares issued and outstanding. |
Changes in Accounting Policies | 2.A New and Amended International Financial Reporting Standards Adopted in 2022 We adopted the following amendments on January 1, 2022: In May 2020, the IASB issued Reference to the Conceptual Framework , which includes amendments to IFRS 3 Business Combinations . The amendments update an outdated reference to the Conceptual Framework in IFRS 3 without significantly changing the requirements in the standard. The adoption of this amendment did not have a material impact on our Consolidated Financial Statements. In May 2020, the IASB issued Property, Plant and Equipment - Proceeds before Intended Use , which includes amendments to IAS 16 Property, Plant and Equipment . The amendments prohibit deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. The amendments apply retrospectively to assets ready for use in the comparative period. The adoption of this amendment did not have a material impact on our Consolidated Financial Statements. In May 2020, the IASB issued Onerous Contracts - Cost of Fulfilling a Contract , which includes amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets . The amendments specify that the 'cost of fulfilling' a contract comprises the 'costs that relate directly to the contract'. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract or an allocation of other costs that relate directly to fulfilling contracts. The adoption of this amendment did not have a material impact on our Consolidated Financial Statements. In May 2020, the IASB issued Annual Improvements to IFRS Standards 2018-2020 , which includes minor amendments to three IFRS standards applicable to our Consolidated Financial Statements. These amendments apply prospectively. The adoption of these amendments did not have a material impact on our Consolidated Financial Statements. Interest Rate Benchmark Reform - Phase 2 amendments In August 2020, the IASB issued the Interest Rate Benchmark Reform Phase 2, which includes amendments to IFRS 9, IAS 39, IFRS 7 Financial Instruments: Disclosures ("IFRS 7"), IFRS 4, and IFRS 16 Leases ("IFRS 16"). These amendments address issues that arise from the implementation of the reforms, including the replacement of a benchmark with an alternative one. The adoption of these amendments did not have a material impact on our Consolidated Financial Statements Effective December 31, 2021, the publication of London Inter-Bank Offered Rate ("LIBOR") settings has ceased for all sterling, Japanese yen, Swiss franc, and euro settings as well as for the one-week and two-month USD LIBOR settings. The remaining USD LIBOR settings will cease to be provided or lose their representativeness immediately after June 30, 2023. On May 16, 2022, Refinitiv Benchmark Services (UK) Limited ("RBSL"), the administrator of the Canadian Dollar Offered Rate ("CDOR"), announced that it will permanently cease the publication and calculation of all tenors of CDOR after June 28, 2024. Concurrently, OSFI published their expectation that Federally Regulated Financial Institutions ("FRFI’s") transition all new derivatives and securities to an alternative benchmark rate by June 30, 2023, with no new CDOR exposure after that date, with limited exceptions for risk management requirements. OSFI also expects loans referencing CDOR to transition by June 28, 2024. FRFI’s are also expected to prioritize system and model updates to accommodate the use of the Canadian Overnight Repo Rate Average prior to June 28, 2024. We have created an Interbank Offered Rate ("IBOR") Transition Program (the "Program") to manage the transition from IBOR benchmarks (such as LIBOR and CDOR) to Alternative Reference Rates ("ARRs"). The Program is cross-functional in nature and comprises key stakeholders across our organization and operates with executive oversight. The Program is on track in executing its transition plan, and is mindful of incorporating market developments as they arise. We also actively participate in industry associations and incorporate best practice guidance from these industry associations, as well as regulatory bodies into the transition plan, such as reviewing all existing and new LIBOR contracts for appropriate fallback language. The Program addresses the risk and uncertainty relating to the transition to ARRs, the use of fallback language, and other factors relating to reform that could otherwise adversely affect our operations and cash flows and the value of and return on our investments that are LIBOR or IBOR-based. Our affiliated entities with IBOR exposure related to derivatives have adhered to the International Swaps and Derivatives Association IBOR Fallbacks Protocol facilitating the transition of legacy derivative contracts to ARRs, and all of our GBP LIBOR exposure has been transitioned to Sterling Overnight Index Average. As at December 31, 2022, our exposure to USD LIBOR consists of non-derivative financial assets of $2,750 (December 31, 2021 — $3,849), non-derivative financial liabilities of $77 (December 31, 2021 — $70), and derivative notional of $1,683 (December 31, 2021 — $9,417) that have not yet transitioned to an ARR, excluding financial instruments maturing by June 30, 2023. Our exposure to CDOR consists of non-derivative assets of $396 (June 30, 2022 — $387), non-derivative financial liabilities of $5,892 (June 30, 2022 — $6,286), and derivative notional of $11,725 (June 30, 2022 — $10,748) that have not yet transitioned to an ARR, excluding financial instruments maturing by June 28, 2024. 2.B New and Amended International Financial Reporting Standards to be Adopted in 2023 The following new and amended IFRS were issued by the IASB. We expect to adopt these in 2023: IFRS 17 and IFRS 9 In May 2017, the IASB issued IFRS 17 Insurance Contracts ("IFRS 17"). This standard is to be applied using a retrospective approach, with at least one year of comparative results provided. If retrospective application to a group of insurance contracts is impracticable, a modified retrospective or fair value approach may be used. We have elected to use a fair value approach in instances where retrospective application is impracticable. IFRS 17 replaces IFRS 4 and impacts how we recognize, measure, present, and disclose our insurance contracts in our Consolidated Financial Statements. In July 2014, the IASB issued the final version of IFRS 9 which replaces IAS 39. IFRS 9 includes guidance on the classification and measurement of financial instruments, impairment of financial assets and hedge accounting, and does not require restatement of comparative periods. In June 2020, an amendment was issued to defer the effective date of IFRS 17 to annual periods beginning on or after January 1, 2023. Eligible insurers were also permitted the option of deferring the adoption of IFRS 9 to coincide with the adoption of IFRS 17. We have elected to apply this deferral option, and the effective date of both IFRS 17 and IFRS 9 will be January 1, 2023. In December 2021, the IASB issued an amendment to IFRS 17 to allow for a transition option that permits insurers to present comparative information on financial assets as if IFRS 9 were applicable during the comparative period ("classification overlay"). We have elected to apply the classification overlay to our financial assets and their comparative period results as if IFRS 9 had been effective since January 1, 2022. IFRS 17 establishes principles for the recognition, measurement, presentation, and disclosure of insurance contracts. The key principles of IFRS 17 are as follows: • Insurance contracts are those under which an entity accepts significant insurance risk from another party (the policyholder) by agreeing to compensate the policyholder if a specified uncertain future event (the insured event) adversely affects the policyholder. • Insurance contracts issued and reinsurance contracts held are divided into groups that will be separately recognized and measured. • Groups of insurance contracts are recognized and measured as the total of the following measurement components: a) the present value of future cash flows; b) a risk adjustment for non-financial risk; and c) the contractual service margin ("CSM"), an amount that represents the unearned profit of the group of contracts. These measurement components apply to groups of insurance contracts measured using the general measurement approach ("GMA") and the variable fee approach ("VFA"). The VFA applies to insurance contracts issued with direct participation features, which are substantially investment-related service contracts under which the policyholder is promised an investment return based on underlying items, such as segregated funds and certain participating insurance contracts. For short duration contracts, such as most of our group life and health business, a simplified measurement approach (the premium allocation approach or "PAA") is applied. Under the PAA, insurance contracts are measured based on unearned profits and do not include a CSM. • The profit from a group of insurance contracts is recognized into income over the period that insurance contract services are provided and as our risks related to servicing the contracts diminish over time. • Insurance revenue, insurance services expenses and insurance finance income or expenses are presented separately. • Disclosures are intended to enhance transparency and comparability of results. The measurement of insurance contracts under IFRS 17 differs from the Canadian Asset Liability Method currently applied under IFRS 4. The most significant differences by measurement component are as follows: Present value of future cash flows: • The discount rates used to present value future cash flows under IFRS 17 are based on the characteristics of the insurance contracts. Under IFRS 4, discount rates are based on the portfolio of assets supporting the insurance contract liabilities. • Estimates under IFRS 17 include the prevailing market view of the cost of financial guarantees, which requires a valuation consistent with market option prices. Under IFRS 4, the cost of financial guarantees is based on the amount required to fulfill the obligation. • Expense cash flows under IFRS 17 are limited to those directly attributable to fulfillment of the obligations under insurance contracts. • Future income taxes are excluded from future cash flows under IFRS 17. Risk adjustment: • Measures the compensation required for uncertainty related to non-financial risk, such as mortality, morbidity, surrender and expenses under IFRS 17. • Provisions for uncertainty related to financial risk are included in the present value of future cash flows under IFRS 17. • No amount is provided for asset-liability mismatch risk under IFRS 17. • Under IFRS 4, amounts provided for the risks listed above are reflected in a provision for adverse deviations included in insurance contract liabilities. Contractual service margin: • This is a new component of liabilities and necessitates the "grouping" of insurance contracts, which is not required under IFRS 4. • The CSM represents unearned profits, which is discussed in more detail below. The measurement approach under IFRS 17 and IFRS 4 is similar for insurance contracts measured using the PAA, such as our group life and health contracts. Differences arise mainly in the measurement of the Liability for Incurred Claims, where the discount rate and risk adjustment changes noted above apply. We have highlighted in the following section certain impacts on our financial performance as a result of the differences between IFRS 17 and IFRS 4 described above: • New business gains (unearned profits) are measured differently under IFRS 17, reflecting measurement differences on insurance contracts as discussed above. In addition, new business gains under IFRS 17 are deferred and recorded in the CSM and amortized into income as insurance contract services are provided. Losses on new business are also measured differently, but continue to be recognized in income immediately. Under IFRS 4, new business gains and losses are both recognized in income immediately. • Discount rates used in calculating the present value of insurance contract liabilities are based on the characteristics of the insurance contracts rather than the assets supporting the liabilities. Amongst other differences, this results in changes in the timing of when investment-related income emerges. • Under IFRS 17, changes related to financial risk (e.g. changes in the discount rate) continue to be recognized in income immediately, except for insurance contracts measured using the VFA, where the changes are recorded through the CSM. Assumption changes for non-financial risk, such as mortality, are reflected in the CSM and amortized into income as insurance contract services are provided. Under IFRS 4, assumption changes for both financial and non-financial risk variables are recognized in income immediately. IFRS 9 includes guidance on the classification and measurement of financial instruments, impairment of financial assets, and hedge accounting. The classification of financial assets is based on the cash flow characteristics and the business model within which an asset is managed, and determines how the financial asset is measured. The classification and measurement of financial liabilities remain generally unchanged from IAS 39. IFRS 9 also introduces an impairment model for financial assets not measured at FVTPL. The model requires the recognition of an allowance for 12-month expected losses at the initial recognition of a financial asset, and the recognition of an allowance for lifetime expected losses if certain criteria are met. In addition, IFRS 9 introduces a new model for hedge accounting to better align with risk management activities. Under IFRS 17, we are electing to recognize all insurance finance income or expense in income rather than other comprehensive income. Consequently, to avoid an accounting mismatch, we are electing under IFRS 9 to classify most of our fixed income assets supporting insurance contracts as FVTPL. The adoption of IFRS 17 and IFRS 9 is expected to have a significant impact on our Consolidated Financial Statements, and estimates of the financial impacts are subject to change as we continue to finalize the implications of adopting both standards. The establishment of the CSM and other measurement changes upon transition at January 1, 2022, including the impacts of reflecting IFRS 9 as at the same date, would reduce total equity. Key financial items on our Consolidated Statement of Financial position are expected to be impacted as follows: As at January 1, 2022 IFRS 9 Adjustments (1) IFRS 17 Adjustments Other (2) As at January 1, 2022 subsequent to transition Invested assets $ 181,261 $ 4,007 $ — $ — $ 185,268 Policy loans (3) 3,261 — (3,261) — — Reinsurance contract held assets and Insurance contract assets (4) 3,683 — 4,803 — 8,486 Other assets (3) 157,165 — (1,157) 1,180 157,188 Total Assets $ 345,370 $ 4,007 $ 385 $ 1,180 $ 350,942 Insurance contract liabilities and Reinsurance contract held liabilities (5) 147,811 — 5,301 — 153,112 Investment contract liabilities (6) 3,368 — 6,546 — 9,914 Other liabilities (3) 166,118 — (412) — 165,706 Total liabilities $ 317,297 $ — $ 11,435 $ — $ 328,732 Total equity (7) $ 28,073 $ 4,007 $ (11,050) $ 1,180 $ 22,210 Total liabilities and equity $ 345,370 $ 4,007 $ 385 $ 1,180 $ 350,942 (1) Primarily due to measurement impacts from IFRS 9 classification changes on Mortgages and loans. (2) Due to tax impacts from IFRS 17 and IFRS 9 adoption. (3) Certain balances, such as Policy loans and amounts related to premiums, that were previously presented separately or included in Other assets and Other liabilities, are included in the assets or liabilities for Insurance contracts issued or Reinsurance contracts held balances under IFRS 17. (4) Increase primarily due to IFRS 17 remeasurement impacts and a requirement to present Insurance contract assets and Reinsurance contract held liabilities separately from Insurance contract liabilities and Reinsurance contract held assets. (5) Increase in Insurance contract liabilities and Reinsurance contract held liabilities balances is primarily due to IFRS 17 remeasurement impacts, partially offset by IFRS 17 reclassification impacts. Remeasurement impacts are primarily due to the establishment of CSM of approximately $10 billion, the impact of discount rate changes under IFRS 17, and the release of certain reserves held under IFRS 4. Reclassification impacts are primarily offset in Policy loans and Investment contract liabilities. (6) Certain contracts previously included in Insurance contract liabilities under IFRS 4 are reclassified to Investment contract liabilities under IFRS 17. (7) Consists of a $4.5 billion reduction to Shareholders' equity and a $1.4 billion reduction to Equity in participating account. IAS 12 In May 2021, the IASB issued amendments to IAS 12 Income Taxes ("IAS 12"). The amendments, Deferred Tax related to Assets and Liabilities arising from a Single Transaction, narrow the scope of the recognition exemption in IAS 12 so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The amendment to IAS 12 will be effective for annual reporting periods beginning on or after January 1, 2023, with early application permitted. We do not expect the adoption of these amendments to have a material impact on our Consolidated Financial Statements. IAS 1 In February 2021, the IASB issued amendments to IAS 1 Presentation of Financial Statements ("IAS 1") and IFRS Practice Statement 2 Making Materiality Judgments ("IFRS Practice Statement 2"). The amendments to IAS 1 require companies to disclose their material accounting policy information rather than their significant accounting policies. The amendments to IFRS Practice Statement 2 provide guidance on how to apply the concept of materiality to accounting policy disclosures. The amendment to IAS 1 will be effective for annual reporting periods beginning on or after January 1, 2023, with early application permitted. We do not expect the adoption of these amendments to have a material impact on our Consolidated Financial Statements. IAS 8 In February 2021, the IASB issued amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Error s ("IAS 8"). The amendments clarify how companies should distinguish changes in accounting policies from changes in accounting estimates. The amendment to IAS 8 will be effective for annual reporting periods beginning on or after January 1, 2023, with early application permitted. We do not expect the adoption of these amendments to have a material impact on our Consolidated Financial Statements. 2.C New and Amended International Financial Reporting Standards to be Adopted in 2024 or Later We are currently assessing the impact of the following amendments on our Consolidated Financial Statements: In September 2022, the IASB issued amendments to IFRS 16 Leases ("IFRS 16") to add subsequent measurement requirements for sale and leaseback transactions that satisfy the requirements in IFRS 15 Revenue from Contracts with Customers |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Schedule of significant estimates and judgments | Significant estimates and judgments have been made in the following areas and are discussed as noted: Insurance contract and investment contract assumptions and measurement Note 1 Insurance Contract Liabilities and Investment Contract Liabilities Note 10 Insurance Contract Liabilities and Investment Contract Liabilities Determination of fair value Note 1 Basis of Consolidation Note 1 Determination of Fair Value Note 3 Acquisitions and Other Note 5 Total Invested Assets and Related Net Investment Income Impairment of financial instruments Note 1 Financial Assets Excluding Derivative Financial Instruments Note 6 Financial Instrument Risk Management Income taxes Note 1 Income Taxes Note 20 Income Taxes Pension plans Note 1 Pension Plans and Other Post-Retirement Benefits Note 25 Pension Plans and Other Post-Retirement Benefits Goodwill and intangible assets on acquisition and impairment Note 1 Goodwill Note 1 Intangible Assets Note 3 Acquisitions and Other Note 9 Goodwill and Intangible Assets Determination of control for purpose of consolidation Note 1 Basis of Consolidation Note 16 Interests in Other Entities Share-based payments Note 19 Share-Based Payments |
Summary of financial assets | The following table summarizes the financial assets included in our Consolidated Statements of Financial Position and the asset classifications applicable to these assets: Cash, cash equivalents and short-term securities FVTPL Debt securities FVTPL and AFS Equity securities FVTPL and AFS Mortgages and loans Loans and receivables Other invested assets FVTPL and AFS Policy loans Loans and receivables The carrying values and fair values of our financial assets are shown in the following table: As at December 31, 2022 December 31, 2021 Carrying Fair Carrying Fair Assets Cash, cash equivalents and short-term securities $ 11,219 $ 11,219 $ 12,278 $ 12,278 Debt securities - fair value through profit or loss 62,757 62,757 75,998 75,998 Debt securities - available-for-sale (1) 13,145 13,145 12,729 12,729 Equity securities - fair value through profit or loss 6,824 6,824 7,538 7,538 Equity securities - available-for-sale 324 324 1,575 1,575 Mortgages and loans (1) 56,261 51,850 51,692 55,756 Derivative assets 2,095 2,095 1,583 1,583 Other invested assets - fair value through profit or loss (2) 5,542 5,542 4,435 4,435 Other invested assets - available-for-sale (2) 996 996 781 781 Other invested assets - Collateralized Loan Obligations 3,044 2,880 1,865 1,855 Policy loans 3,350 3,350 3,261 3,261 Total financial assets (3) $ 165,557 $ 160,982 $ 173,735 $ 177,789 (1) As at December 31, 2022, the fair value of invested assets that have contractual cash flows that qualify as SPPI include $12,829 of Debt securities - AFS (December 31, 2021 — $12,604), $48,614 of Mortgages and loans supporting insurance contract liabilities (December 31, 2021 — $51,249), and $3,229 of Mortgages and loans not supporting insurance contract liabilities (December 31, 2021 — $4,499). (2) Other invested assets (FVTPL and AFS) include our investments in segregated funds, mutual funds and limited partnerships. (3) Invested assets on our Consolidated Statements of Financial Position of $177,292 (December 31, 2021 — $184,522) includes Total financial assets in this table, Investment properties of $10,102 (December 31, 2021 — $9,109), Other invested assets - non-financial assets of $1,633 (December 31, 2021 — $1,678). The following table provides a reconciliation of the beginning and ending balances for assets and liabilities that are categorized in Level 3: For the years ended Debt securities - fair value through profit or loss Debt securities - available-for-sale Equity securities - fair value through profit or loss Equity securities - available-for-sale Other Investment Total Investments Total December 31, 2022 Beginning balance $ 162 $ 43 $ 96 $ 74 $ 3,650 $ 9,109 $ 13,134 $ 611 $ 13,745 Included in net income (1)(2)(3) (31) 1 — 5 322 625 922 (32) 890 Included in OCI (2) — (4) — — 12 — 8 — 8 Purchases 321 75 6 1 1,843 664 2,910 78 2,988 Sales / Payments — (2) (4) (12) (313) (430) (761) (6) (767) Settlements (1) — — — (47) — (48) (1) (49) Transfers (out) of Level 3 (4) (59) (64) — — — — (123) — (123) Foreign currency translation (5) 5 — — 5 88 134 232 (19) 213 Ending balance $ 397 $ 49 $ 98 $ 73 $ 5,555 $ 10,102 $ 16,274 $ 631 $ 16,905 Gains (losses) included in earnings relating to instruments still held at the reporting date (1) $ (31) $ — $ — $ — $ 295 $ 612 $ 876 $ (20) $ 856 December 31, 2021 Beginning balance $ 225 $ 67 $ 181 $ 47 $ 2,645 $ 7,516 $ 10,681 $ 550 $ 11,231 Included in net income (1)(2)(3) (6) — 10 5 392 1,032 1,433 23 1,456 Included in OCI (2) — (1) — 33 13 — 45 — 45 Purchases 29 5 8 15 1,074 764 1,895 65 1,960 Sales / Payments (9) (13) (25) (26) (469) (197) (739) (9) (748) Settlements (15) (3) (5) — — — (23) (1) (24) Transfers (out) of Level 3 (4) (57) (10) (73) — — — (140) — (140) Foreign currency translation (5) (5) (2) — — (5) (6) (18) (17) (35) Ending balance $ 162 $ 43 $ 96 $ 74 $ 3,650 $ 9,109 $ 13,134 $ 611 $ 13,745 Gains (losses) included in earnings relating to instruments still held at the reporting date (1) $ (4) $ — $ 11 $ 5 $ 382 $ 1,038 $ 1,432 $ 27 $ 1,459 (1) Included in Net investment income (loss) for Total invested assets measured at fair value in our Consolidated Statements of Operations. (2) Total gains and losses in net income (loss) and OCI are calculated assuming transfers into or out of Level 3 occur at the beginning of the period. For an asset or liability that transfers into Level 3 during the reporting period, the entire change in fair value for the period is included in the table above. For transfers out of Level 3 during the reporting period, the change in fair value for the period is excluded from the table above. (3) Investment properties included in net income is comprised of fair value changes on investment properties of $667 (2021 — $1,070), net of amortization of leasing commissions and tenant inducements of $42 (2021 — $38). As at December 31, 2022, we have used assumptions that reflect known changes in the property values including changes in expected future cash flows. (4) Transfers out of Level 3 occur when the pricing inputs become more transparent and satisfy the Level 1 or 2 criteria and are primarily the result of observable market data being available at the reporting date, thus removing the requirement to rely on inputs that lack observability. (5) Foreign currency translation relates to the foreign exchange impact of translating Level 3 assets and liabilities of foreign subsidiaries from their functional currencies to Canadian dollars. Cash, cash equivalents and short-term securities presented in our Consolidated Statements of Financial Position and Net cash, cash equivalents and short-term securities presented in our Consolidated Statements of Cash Flows consist of the following: As at December 31, 2022 2021 Cash $ 3,068 $ 2,297 Cash equivalents 6,310 5,529 Short-term securities 1,841 4,452 Cash, cash equivalents and short-term securities 11,219 12,278 Less: Bank overdraft, recorded in Other liabilities 6 133 Net cash, cash equivalents and short-term securities $ 11,213 $ 12,145 The carrying value of debt securities by geographic location is shown in the following table. The geographic location is based on the country of the creditor's parent. As at December 31, 2022 2021 Fair value Available- Total debt Fair value Available- Total debt Canada $ 27,816 $ 4,861 $ 32,677 $ 33,028 $ 5,135 $ 38,163 United States 21,412 5,058 26,470 26,678 4,552 31,230 United Kingdom 2,914 583 3,497 4,196 562 4,758 Other 10,615 2,643 13,258 12,096 2,480 14,576 Total debt securities $ 62,757 $ 13,145 $ 75,902 $ 75,998 $ 12,729 $ 88,727 The carrying value of debt securities by issuer and industry sector is shown in the following table: As at December 31, 2022 2021 Fair value Available- Total debt Fair value Available- Total debt Debt securities issued or guaranteed by: Canadian federal government $ 3,881 $ 1,730 $ 5,611 $ 4,798 $ 2,303 $ 7,101 Canadian provincial and municipal government 12,638 1,027 13,665 15,930 1,149 17,079 U.S. government and agency 808 729 1,537 1,642 771 2,413 Other foreign government 3,863 761 4,624 4,754 757 5,511 Total government issued or guaranteed debt securities 21,190 4,247 25,437 27,124 4,980 32,104 Corporate debt securities by industry sector: Financials 9,377 1,978 11,355 10,258 1,690 11,948 Utilities 5,979 697 6,676 7,414 778 8,192 Industrials 4,762 813 5,575 5,791 805 6,596 Energy 3,069 273 3,342 3,992 287 4,279 Communication services 2,937 392 3,329 3,534 352 3,886 Real estate 1,920 586 2,506 2,334 354 2,688 Health care 1,682 352 2,034 2,081 346 2,427 Consumer staples 1,677 301 1,978 2,047 231 2,278 Consumer discretionary 1,395 441 1,836 1,814 306 2,120 Information technology 1,130 254 1,384 1,426 209 1,635 Materials 1,107 188 1,295 1,361 156 1,517 Total corporate debt securities 35,035 6,275 41,310 42,052 5,514 47,566 Asset-backed securities 6,532 2,623 9,155 6,822 2,235 9,057 Total debt securities $ 62,757 $ 13,145 $ 75,902 $ 75,998 $ 12,729 $ 88,727 The carrying value of mortgages and loans by geographic location and type is shown in the following tables. The geographic location for mortgages is based on location of property, while for corporate loans it is based on the country of the creditor's parent. As at December 31, 2022 Canada United States United Kingdom Other Total Mortgages: Retail $ 1,546 $ 1,455 $ — $ — $ 3,001 Office 1,762 1,522 — — 3,284 Multi-family residential 4,025 1,245 — — 5,270 Industrial and land 1,779 1,104 — — 2,883 Other 780 113 29 — 922 Total mortgages (1) $ 9,892 $ 5,439 $ 29 $ — $ 15,360 Loans $ 13,143 $ 17,238 $ 4,923 $ 5,597 $ 40,901 Total mortgages and loans $ 23,035 $ 22,677 $ 4,952 $ 5,597 $ 56,261 (1) $4,174 of mortgages in Canada are insured by the CMHC. As at December 31, 2021 Canada United States United Kingdom Other Total Mortgages: Retail $ 1,765 $ 1,623 $ — $ — 3,388 Office 1,892 1,639 — — 3,531 Multi-family residential 4,138 1,589 — — 5,727 Industrial and land 1,094 941 — — 2,035 Other 680 115 9 — 804 Total mortgages (1) $ 9,569 $ 5,907 $ 9 $ — $ 15,485 Loans $ 12,885 $ 14,596 $ 4,111 $ 4,615 $ 36,207 Total mortgages and loans $ 22,454 $ 20,503 $ 4,120 $ 4,615 $ 51,692 (1) $4,218 of mortgages in Canada are insured by the CMHC. The contractual maturities of debt securities are shown in the following table. Actual maturities could differ from contractual maturities because of the borrower's right to call or extend or right to prepay obligations, with or without prepayment penalties. As at December 31, 2022 2021 Fair value Available- Total debt Fair value Available- Total debt Due in 1 year or less $ 2,426 $ 1,334 $ 3,760 $ 2,505 $ 1,373 $ 3,878 Due in years 2-5 10,972 5,919 16,891 10,475 4,971 15,446 Due in years 6-10 9,889 2,969 12,858 11,328 3,350 14,678 Due after 10 years 39,470 2,923 42,393 51,690 3,035 54,725 Total debt securities $ 62,757 $ 13,145 $ 75,902 $ 75,998 $ 12,729 $ 88,727 The carrying value of mortgages by scheduled maturity, before allowances for losses, is as follows: As at December 31, 2022 2021 Due in 1 year or less $ 1,350 $ 884 Due in years 2-5 6,312 6,172 Due in years 6-10 5,210 5,979 Due after 10 years 2,568 2,530 Total mortgages $ 15,440 $ 15,565 The carrying value of loans by scheduled maturity, before allowances for losses, is as follows: As at December 31, 2022 2021 Due in 1 year or less $ 2,893 $ 1,772 Due in years 2-5 7,237 7,108 Due in years 6-10 8,726 7,393 Due after 10 years 22,157 19,986 Total loans $ 41,013 $ 36,259 |
Changes in Accounting Policies
Changes in Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of changes in accounting policies, accounting estimates and errors [Abstract] | |
Schedule of Key Financial Items Affected by Change in Accounting Policy | Key financial items on our Consolidated Statement of Financial position are expected to be impacted as follows: As at January 1, 2022 IFRS 9 Adjustments (1) IFRS 17 Adjustments Other (2) As at January 1, 2022 subsequent to transition Invested assets $ 181,261 $ 4,007 $ — $ — $ 185,268 Policy loans (3) 3,261 — (3,261) — — Reinsurance contract held assets and Insurance contract assets (4) 3,683 — 4,803 — 8,486 Other assets (3) 157,165 — (1,157) 1,180 157,188 Total Assets $ 345,370 $ 4,007 $ 385 $ 1,180 $ 350,942 Insurance contract liabilities and Reinsurance contract held liabilities (5) 147,811 — 5,301 — 153,112 Investment contract liabilities (6) 3,368 — 6,546 — 9,914 Other liabilities (3) 166,118 — (412) — 165,706 Total liabilities $ 317,297 $ — $ 11,435 $ — $ 328,732 Total equity (7) $ 28,073 $ 4,007 $ (11,050) $ 1,180 $ 22,210 Total liabilities and equity $ 345,370 $ 4,007 $ 385 $ 1,180 $ 350,942 (1) Primarily due to measurement impacts from IFRS 9 classification changes on Mortgages and loans. (2) Due to tax impacts from IFRS 17 and IFRS 9 adoption. (3) Certain balances, such as Policy loans and amounts related to premiums, that were previously presented separately or included in Other assets and Other liabilities, are included in the assets or liabilities for Insurance contracts issued or Reinsurance contracts held balances under IFRS 17. (4) Increase primarily due to IFRS 17 remeasurement impacts and a requirement to present Insurance contract assets and Reinsurance contract held liabilities separately from Insurance contract liabilities and Reinsurance contract held assets. (5) Increase in Insurance contract liabilities and Reinsurance contract held liabilities balances is primarily due to IFRS 17 remeasurement impacts, partially offset by IFRS 17 reclassification impacts. Remeasurement impacts are primarily due to the establishment of CSM of approximately $10 billion, the impact of discount rate changes under IFRS 17, and the release of certain reserves held under IFRS 4. Reclassification impacts are primarily offset in Policy loans and Investment contract liabilities. (6) Certain contracts previously included in Insurance contract liabilities under IFRS 4 are reclassified to Investment contract liabilities under IFRS 17. (7) Consists of a $4.5 billion reduction to Shareholders' equity and a $1.4 billion reduction to Equity in participating account. |
Acquisitions and Other (Tables)
Acquisitions and Other (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
DentaQuest | |
Disclosure of detailed information about business combination [line items] | |
Fair values of identifiable assets and liabilities acquired | The fair values of the identifiable assets and liabilities acquired were: As at June 1, 2022 Intangible assets $ 1,208 Net assets 255 Deferred tax liabilities $ (226) Total identifiable net assets at fair value 1,237 Goodwill arising on acquisition (1) 2,030 Total consideration $ 3,267 |
Crescent | |
Disclosure of detailed information about business combination [line items] | |
Fair values of identifiable assets and liabilities acquired | The fair values of the identifiable assets and liabilities acquired were: As at January 5, 2021 Intangible assets $ 341 Net liabilities (119) Total identifiable net assets at fair value 222 Non-controlling interest (1) (317) Goodwill arising on acquisition 409 Total consideration $ 314 (1) We have elected to measure NCI at fair value for this acquisition. The fair value was determined by calculating the proportionate share of the present value of future cash flows relating to NCI. Significant assumptions inherent in the valuation of NCI include the estimated after-tax cash flows expected to be received and an assessment of the appropriate discount rate. |
Impact of acquisition on assets, liabilities, and equity | At the date of acquisition, the impact to our assets, liabilities and equity is as follows: As at January 5, 2021 Share purchase Put option adjustments Total Cash consideration $ (308) $ — $ (308) Intangible assets 341 — 341 Goodwill (1) 409 — 409 Total assets $ 442 $ — $ 442 Net liabilities $ (119) $ — $ (119) Other financial liabilities – Contingent consideration (6) — (6) Other financial liabilities – Put option — (441) (441) Total liabilities $ (125) $ (441) $ (566) Non-controlling interest (2) $ (317) $ 302 $ (15) Retained earnings — 139 139 Total equity $ (317) $ 441 $ 124 (1) Goodwill of $409 reflects non-contractual customer relationships and is tax deductible. (2) The remaining $15 represents specifically identifiable assets where the risks and rewards accrue to the minority shareholders of Crescent Capital Group, and the related NCI interests are not a party to the put option. |
Segmented Information (Tables)
Segmented Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Operating Segments [Abstract] | |
Results of operating segments | For the years ended Canada U.S. Asset Management Asia Corporate Consolidation adjustments Total December 31, 2022 Gross premiums: Annuities $ 3,909 $ 1 $ — $ 26 $ 9 $ — $ 3,945 Life insurance 6,308 1,515 — 3,512 60 — 11,395 Health insurance 6,493 7,298 — 25 4 — 13,820 Total gross premiums 16,710 8,814 — 3,563 73 — 29,160 Less: Ceded premiums 1,589 505 — 189 14 — 2,297 Net investment income (loss) (4,864) (2,306) 28 (3,242) (1,113) (90) (11,587) Fee income 1,610 297 5,729 620 106 (316) 8,046 Total revenue 11,867 6,300 5,757 752 (948) (406) 23,322 Less: Total benefits and expenses 10,344 5,571 4,215 218 (543) (406) 19,399 Income tax expense (benefit) 363 143 345 63 (293) — 621 Total net income (loss) $ 1,160 $ 586 $ 1,197 $ 471 $ (112) $ — $ 3,302 Less: Net income (loss) attributable to participating policyholders 160 — — (44) — — 116 Net income (loss) attributable to non-controlling interests — — 56 — — — 56 Shareholders’ net income (loss) $ 1,000 $ 586 $ 1,141 $ 515 $ (112) $ — $ 3,130 December 31, 2021 Gross premiums: Annuities $ 3,874 $ — $ — $ 29 $ 14 $ — $ 3,917 Life insurance 5,848 1,452 — 3,542 83 — 10,925 Health insurance 5,989 4,624 — 24 27 — 10,664 Total gross premiums 15,711 6,076 — 3,595 124 — 25,506 Less: Ceded premiums 1,533 705 — 201 14 — 2,453 Net investment income (loss) 3,069 546 20 1,060 37 (99) 4,633 Fee income 1,611 81 5,835 642 111 (278) 8,002 Total revenue 18,858 5,998 5,855 5,096 258 (377) 35,688 Less: Total benefits and expenses 16,651 5,375 4,591 3,838 513 (377) 30,591 Income tax expense (benefit) 384 124 372 113 (266) — 727 Total net income (loss) $ 1,823 $ 499 $ 892 $ 1,145 $ 11 $ — $ 4,370 Less: Net income (loss) attributable to participating policyholders 265 — — 70 — — 335 Shareholders’ net income (loss) $ 1,558 $ 499 $ 892 $ 1,075 $ 11 $ — $ 4,035 Assets and liabilities by segment are as follows: Canada U.S. Asset Asia Corporate Consolidation Total As at December 31, 2022 Total general fund assets $ 110,888 $ 37,282 $ 11,702 $ 37,072 $ 9,044 $ (374) $ 205,614 Investments for account of segregated fund holders $ 109,058 $ 421 $ — $ 7,111 $ 8,702 $ — $ 125,292 Total general fund liabilities $ 100,396 $ 30,190 $ 9,474 $ 29,662 $ 6,889 $ (374) $ 176,237 As at December 31, 2021 Total general fund assets $ 110,499 $ 33,391 $ 10,024 $ 37,661 $ 14,187 $ (388) $ 205,374 Investments for account of segregated fund holders $ 121,146 $ 519 $ — $ 7,609 $ 10,722 $ — $ 139,996 Total general fund liabilities $ 100,838 $ 29,553 $ 8,010 $ 30,884 $ 8,404 $ (388) $ 177,301 |
Disclosure of geographical areas | The following table shows revenue by country for Asset Management and Corporate: Asset Management Corporate For the years ended December 31, 2022 2021 2022 2021 Revenue: United States $ 5,173 $ 5,299 $ 61 $ 112 United Kingdom 288 289 (1,014) 74 Canada 251 233 9 75 Other countries 45 34 (4) (3) Total revenue $ 5,757 $ 5,855 $ (948) $ 258 The following table shows total assets by country for Asset Management and Corporate: Asset Management Corporate As at December 31, 2022 2021 2022 2021 Total general fund assets: United States $ 9,933 $ 8,203 $ 1,536 $ 2,570 United Kingdom 940 1,064 4,827 6,892 Canada 581 582 2,500 4,533 Other countries 248 175 181 192 Total general fund assets $ 11,702 $ 10,024 $ 9,044 $ 14,187 Investment for account of segregated fund holders: United Kingdom $ — $ — $ 8,702 $ 10,722 Total investment for account of segregated fund holders $ — $ — $ 8,702 $ 10,722 |
Total Invested Assets and Rel_2
Total Invested Assets and Related Net Investment Income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Measurement [Abstract] | |
Summary of financial assets | The following table summarizes the financial assets included in our Consolidated Statements of Financial Position and the asset classifications applicable to these assets: Cash, cash equivalents and short-term securities FVTPL Debt securities FVTPL and AFS Equity securities FVTPL and AFS Mortgages and loans Loans and receivables Other invested assets FVTPL and AFS Policy loans Loans and receivables The carrying values and fair values of our financial assets are shown in the following table: As at December 31, 2022 December 31, 2021 Carrying Fair Carrying Fair Assets Cash, cash equivalents and short-term securities $ 11,219 $ 11,219 $ 12,278 $ 12,278 Debt securities - fair value through profit or loss 62,757 62,757 75,998 75,998 Debt securities - available-for-sale (1) 13,145 13,145 12,729 12,729 Equity securities - fair value through profit or loss 6,824 6,824 7,538 7,538 Equity securities - available-for-sale 324 324 1,575 1,575 Mortgages and loans (1) 56,261 51,850 51,692 55,756 Derivative assets 2,095 2,095 1,583 1,583 Other invested assets - fair value through profit or loss (2) 5,542 5,542 4,435 4,435 Other invested assets - available-for-sale (2) 996 996 781 781 Other invested assets - Collateralized Loan Obligations 3,044 2,880 1,865 1,855 Policy loans 3,350 3,350 3,261 3,261 Total financial assets (3) $ 165,557 $ 160,982 $ 173,735 $ 177,789 (1) As at December 31, 2022, the fair value of invested assets that have contractual cash flows that qualify as SPPI include $12,829 of Debt securities - AFS (December 31, 2021 — $12,604), $48,614 of Mortgages and loans supporting insurance contract liabilities (December 31, 2021 — $51,249), and $3,229 of Mortgages and loans not supporting insurance contract liabilities (December 31, 2021 — $4,499). (2) Other invested assets (FVTPL and AFS) include our investments in segregated funds, mutual funds and limited partnerships. (3) Invested assets on our Consolidated Statements of Financial Position of $177,292 (December 31, 2021 — $184,522) includes Total financial assets in this table, Investment properties of $10,102 (December 31, 2021 — $9,109), Other invested assets - non-financial assets of $1,633 (December 31, 2021 — $1,678). The following table provides a reconciliation of the beginning and ending balances for assets and liabilities that are categorized in Level 3: For the years ended Debt securities - fair value through profit or loss Debt securities - available-for-sale Equity securities - fair value through profit or loss Equity securities - available-for-sale Other Investment Total Investments Total December 31, 2022 Beginning balance $ 162 $ 43 $ 96 $ 74 $ 3,650 $ 9,109 $ 13,134 $ 611 $ 13,745 Included in net income (1)(2)(3) (31) 1 — 5 322 625 922 (32) 890 Included in OCI (2) — (4) — — 12 — 8 — 8 Purchases 321 75 6 1 1,843 664 2,910 78 2,988 Sales / Payments — (2) (4) (12) (313) (430) (761) (6) (767) Settlements (1) — — — (47) — (48) (1) (49) Transfers (out) of Level 3 (4) (59) (64) — — — — (123) — (123) Foreign currency translation (5) 5 — — 5 88 134 232 (19) 213 Ending balance $ 397 $ 49 $ 98 $ 73 $ 5,555 $ 10,102 $ 16,274 $ 631 $ 16,905 Gains (losses) included in earnings relating to instruments still held at the reporting date (1) $ (31) $ — $ — $ — $ 295 $ 612 $ 876 $ (20) $ 856 December 31, 2021 Beginning balance $ 225 $ 67 $ 181 $ 47 $ 2,645 $ 7,516 $ 10,681 $ 550 $ 11,231 Included in net income (1)(2)(3) (6) — 10 5 392 1,032 1,433 23 1,456 Included in OCI (2) — (1) — 33 13 — 45 — 45 Purchases 29 5 8 15 1,074 764 1,895 65 1,960 Sales / Payments (9) (13) (25) (26) (469) (197) (739) (9) (748) Settlements (15) (3) (5) — — — (23) (1) (24) Transfers (out) of Level 3 (4) (57) (10) (73) — — — (140) — (140) Foreign currency translation (5) (5) (2) — — (5) (6) (18) (17) (35) Ending balance $ 162 $ 43 $ 96 $ 74 $ 3,650 $ 9,109 $ 13,134 $ 611 $ 13,745 Gains (losses) included in earnings relating to instruments still held at the reporting date (1) $ (4) $ — $ 11 $ 5 $ 382 $ 1,038 $ 1,432 $ 27 $ 1,459 (1) Included in Net investment income (loss) for Total invested assets measured at fair value in our Consolidated Statements of Operations. (2) Total gains and losses in net income (loss) and OCI are calculated assuming transfers into or out of Level 3 occur at the beginning of the period. For an asset or liability that transfers into Level 3 during the reporting period, the entire change in fair value for the period is included in the table above. For transfers out of Level 3 during the reporting period, the change in fair value for the period is excluded from the table above. (3) Investment properties included in net income is comprised of fair value changes on investment properties of $667 (2021 — $1,070), net of amortization of leasing commissions and tenant inducements of $42 (2021 — $38). As at December 31, 2022, we have used assumptions that reflect known changes in the property values including changes in expected future cash flows. (4) Transfers out of Level 3 occur when the pricing inputs become more transparent and satisfy the Level 1 or 2 criteria and are primarily the result of observable market data being available at the reporting date, thus removing the requirement to rely on inputs that lack observability. (5) Foreign currency translation relates to the foreign exchange impact of translating Level 3 assets and liabilities of foreign subsidiaries from their functional currencies to Canadian dollars. Cash, cash equivalents and short-term securities presented in our Consolidated Statements of Financial Position and Net cash, cash equivalents and short-term securities presented in our Consolidated Statements of Cash Flows consist of the following: As at December 31, 2022 2021 Cash $ 3,068 $ 2,297 Cash equivalents 6,310 5,529 Short-term securities 1,841 4,452 Cash, cash equivalents and short-term securities 11,219 12,278 Less: Bank overdraft, recorded in Other liabilities 6 133 Net cash, cash equivalents and short-term securities $ 11,213 $ 12,145 The carrying value of debt securities by geographic location is shown in the following table. The geographic location is based on the country of the creditor's parent. As at December 31, 2022 2021 Fair value Available- Total debt Fair value Available- Total debt Canada $ 27,816 $ 4,861 $ 32,677 $ 33,028 $ 5,135 $ 38,163 United States 21,412 5,058 26,470 26,678 4,552 31,230 United Kingdom 2,914 583 3,497 4,196 562 4,758 Other 10,615 2,643 13,258 12,096 2,480 14,576 Total debt securities $ 62,757 $ 13,145 $ 75,902 $ 75,998 $ 12,729 $ 88,727 The carrying value of debt securities by issuer and industry sector is shown in the following table: As at December 31, 2022 2021 Fair value Available- Total debt Fair value Available- Total debt Debt securities issued or guaranteed by: Canadian federal government $ 3,881 $ 1,730 $ 5,611 $ 4,798 $ 2,303 $ 7,101 Canadian provincial and municipal government 12,638 1,027 13,665 15,930 1,149 17,079 U.S. government and agency 808 729 1,537 1,642 771 2,413 Other foreign government 3,863 761 4,624 4,754 757 5,511 Total government issued or guaranteed debt securities 21,190 4,247 25,437 27,124 4,980 32,104 Corporate debt securities by industry sector: Financials 9,377 1,978 11,355 10,258 1,690 11,948 Utilities 5,979 697 6,676 7,414 778 8,192 Industrials 4,762 813 5,575 5,791 805 6,596 Energy 3,069 273 3,342 3,992 287 4,279 Communication services 2,937 392 3,329 3,534 352 3,886 Real estate 1,920 586 2,506 2,334 354 2,688 Health care 1,682 352 2,034 2,081 346 2,427 Consumer staples 1,677 301 1,978 2,047 231 2,278 Consumer discretionary 1,395 441 1,836 1,814 306 2,120 Information technology 1,130 254 1,384 1,426 209 1,635 Materials 1,107 188 1,295 1,361 156 1,517 Total corporate debt securities 35,035 6,275 41,310 42,052 5,514 47,566 Asset-backed securities 6,532 2,623 9,155 6,822 2,235 9,057 Total debt securities $ 62,757 $ 13,145 $ 75,902 $ 75,998 $ 12,729 $ 88,727 The carrying value of mortgages and loans by geographic location and type is shown in the following tables. The geographic location for mortgages is based on location of property, while for corporate loans it is based on the country of the creditor's parent. As at December 31, 2022 Canada United States United Kingdom Other Total Mortgages: Retail $ 1,546 $ 1,455 $ — $ — $ 3,001 Office 1,762 1,522 — — 3,284 Multi-family residential 4,025 1,245 — — 5,270 Industrial and land 1,779 1,104 — — 2,883 Other 780 113 29 — 922 Total mortgages (1) $ 9,892 $ 5,439 $ 29 $ — $ 15,360 Loans $ 13,143 $ 17,238 $ 4,923 $ 5,597 $ 40,901 Total mortgages and loans $ 23,035 $ 22,677 $ 4,952 $ 5,597 $ 56,261 (1) $4,174 of mortgages in Canada are insured by the CMHC. As at December 31, 2021 Canada United States United Kingdom Other Total Mortgages: Retail $ 1,765 $ 1,623 $ — $ — 3,388 Office 1,892 1,639 — — 3,531 Multi-family residential 4,138 1,589 — — 5,727 Industrial and land 1,094 941 — — 2,035 Other 680 115 9 — 804 Total mortgages (1) $ 9,569 $ 5,907 $ 9 $ — $ 15,485 Loans $ 12,885 $ 14,596 $ 4,111 $ 4,615 $ 36,207 Total mortgages and loans $ 22,454 $ 20,503 $ 4,120 $ 4,615 $ 51,692 (1) $4,218 of mortgages in Canada are insured by the CMHC. The contractual maturities of debt securities are shown in the following table. Actual maturities could differ from contractual maturities because of the borrower's right to call or extend or right to prepay obligations, with or without prepayment penalties. As at December 31, 2022 2021 Fair value Available- Total debt Fair value Available- Total debt Due in 1 year or less $ 2,426 $ 1,334 $ 3,760 $ 2,505 $ 1,373 $ 3,878 Due in years 2-5 10,972 5,919 16,891 10,475 4,971 15,446 Due in years 6-10 9,889 2,969 12,858 11,328 3,350 14,678 Due after 10 years 39,470 2,923 42,393 51,690 3,035 54,725 Total debt securities $ 62,757 $ 13,145 $ 75,902 $ 75,998 $ 12,729 $ 88,727 The carrying value of mortgages by scheduled maturity, before allowances for losses, is as follows: As at December 31, 2022 2021 Due in 1 year or less $ 1,350 $ 884 Due in years 2-5 6,312 6,172 Due in years 6-10 5,210 5,979 Due after 10 years 2,568 2,530 Total mortgages $ 15,440 $ 15,565 The carrying value of loans by scheduled maturity, before allowances for losses, is as follows: As at December 31, 2022 2021 Due in 1 year or less $ 2,893 $ 1,772 Due in years 2-5 7,237 7,108 Due in years 6-10 8,726 7,393 Due after 10 years 22,157 19,986 Total loans $ 41,013 $ 36,259 |
Schedule of liabilities carried at fair value | Our assets and liabilities that are carried at fair value on a recurring basis by hierarchy level are as follows: As at December 31, 2022 December 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Cash, cash equivalents and short-term securities $ 10,622 $ 597 $ — $ 11,219 $ 10,923 $ 1,355 $ — $ 12,278 Debt securities – fair value through profit or loss 699 61,661 397 62,757 1,503 74,333 162 75,998 Debt securities – available-for-sale 723 12,373 49 13,145 770 11,916 43 12,729 Equity securities – fair value through profit or loss 3,995 2,731 98 6,824 4,429 3,013 96 7,538 Equity securities – available-for-sale 138 113 73 324 1,414 87 74 1,575 Derivative assets 37 2,058 — 2,095 26 1,557 — 1,583 Other invested assets 789 194 5,555 6,538 1,189 377 3,650 5,216 Investment properties — — 10,102 10,102 — — 9,109 9,109 Total invested assets measured at fair value $ 17,003 $ 79,727 $ 16,274 $ 113,004 $ 20,254 $ 92,638 $ 13,134 $ 126,026 Investments for account of segregated fund holders 23,933 100,728 631 125,292 28,637 110,748 611 139,996 Total assets measured at fair value $ 40,936 $ 180,455 $ 16,905 $ 238,296 $ 48,891 $ 203,386 $ 13,745 $ 266,022 Liabilities Investment contract liabilities $ — $ — $ 10 $ 10 $ — $ — $ 9 $ 9 Derivative liabilities 10 2,341 — 2,351 9 1,383 — 1,392 Other liabilities – obligations for securities borrowing — 73 — 73 — 51 — 51 Total liabilities measured at fair value $ 10 $ 2,414 $ 10 $ 2,434 $ 9 $ 1,434 $ 9 $ 1,452 Fair value and foreign currency changes on assets and liabilities presented in our Consolidated Statements of Operations consist of the following: For the years ended December 31, 2022 2021 Fair value change: Cash, cash equivalents and short-term securities $ 4 $ (3) Debt securities (15,959) (3,892) Equity securities (1,125) 825 Derivative investments (2,148) 191 Other invested assets 152 444 Other liabilities - obligations for securities borrowing 15 (2) Total change in fair value through profit or loss assets and liabilities (19,061) (2,437) Fair value changes on investment properties 667 1,070 Foreign exchange gains (losses) (1) 535 (418) Realized gains (losses) on property and equipment (2) 100 — Fair value and foreign currency changes on assets and liabilities $ (17,759) $ (1,785) (1) Primarily arises from the translation of foreign currency denominated AFS monetary assets and mortgage and loans. Any offsetting amounts arising from foreign currency derivatives are included in the fair value change on derivative investments. |
Schedule of assets carried at fair value | Debt securities - fair value through profit or loss consist of the following: As at December 31, 2022 December 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Canadian federal government $ — $ 3,869 $ 12 $ 3,881 $ — $ 4,783 $ 15 $ 4,798 Canadian provincial and municipal government — 12,638 — 12,638 — 15,930 — 15,930 U.S. government and agency 699 109 — 808 1,503 139 — 1,642 Other foreign government — 3,852 11 3,863 — 4,747 7 4,754 Corporate — 34,747 288 35,035 — 41,914 138 42,052 Asset-backed securities: Commercial mortgage-backed securities — 2,028 56 2,084 — 2,221 2 2,223 Residential mortgage-backed securities — 2,226 — 2,226 — 2,565 — 2,565 Collateralized debt obligations — 538 — 538 — 351 — 351 Other — 1,654 30 1,684 — 1,683 — 1,683 Total $ 699 $ 61,661 $ 397 $ 62,757 $ 1,503 $ 74,333 $ 162 $ 75,998 Debt securities – available-for-sale consist of the following: As at December 31, 2022 December 31, 2021 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Canadian federal government $ — $ 1,730 $ — $ 1,730 $ — $ 2,303 $ — $ 2,303 Canadian provincial and municipal government — 1,027 — 1,027 — 1,149 — 1,149 U.S. government and agency 723 6 — 729 770 1 — 771 Other foreign government — 761 — 761 — 756 1 757 Corporate — 6,234 41 6,275 — 5,473 41 5,514 Asset-backed securities: Commercial mortgage-backed securities — 793 — 793 — 761 1 762 Residential mortgage-backed securities — 819 — 819 — 522 — 522 Collateralized debt obligations — 508 — 508 — 505 — 505 Other — 495 8 503 — 446 — 446 Total $ 723 $ 12,373 $ 49 $ 13,145 $ 770 $ 11,916 $ 43 $ 12,729 Fair value and foreign currency changes on assets and liabilities presented in our Consolidated Statements of Operations consist of the following: For the years ended December 31, 2022 2021 Fair value change: Cash, cash equivalents and short-term securities $ 4 $ (3) Debt securities (15,959) (3,892) Equity securities (1,125) 825 Derivative investments (2,148) 191 Other invested assets 152 444 Other liabilities - obligations for securities borrowing 15 (2) Total change in fair value through profit or loss assets and liabilities (19,061) (2,437) Fair value changes on investment properties 667 1,070 Foreign exchange gains (losses) (1) 535 (418) Realized gains (losses) on property and equipment (2) 100 — Fair value and foreign currency changes on assets and liabilities $ (17,759) $ (1,785) (1) Primarily arises from the translation of foreign currency denominated AFS monetary assets and mortgage and loans. Any offsetting amounts arising from foreign currency derivatives are included in the fair value change on derivative investments. |
Schedule of interest and other investment income | Interest and other investment income presented in our Consolidated Statements of Operations consist of the following: For the years ended December 31, 2022 2021 Interest income: Cash, cash equivalents and short-term securities $ 166 $ 25 Debt securities - fair value through profit or loss 2,596 2,429 Debt securities - available-for-sale 341 256 Mortgages and loans 2,234 2,117 Derivative investments 115 107 Policy loans 167 160 Total interest income 5,619 5,094 Equity securities - dividends on fair value through profit or loss 236 209 Equity securities - dividends on available-for-sale 8 5 Investment properties rental income (1) 593 543 Investment properties expenses (248) (235) Other income 235 922 Investment expenses and taxes (291) (266) Total interest and other investment income $ 6,152 $ 6,272 (1) Includes operating lease rental income from investment properties. |
Schedule of fair values of derivative assets and liabilities by type of hedge | The fair values of derivative financial instruments by major class of derivatives are as follows: As at December 31, 2022 2021 Fair value Fair value Assets Liabilities Assets Liabilities Interest rate contracts $ 704 $ (1,138) $ 942 $ (366) Foreign exchange contracts 1,300 (1,203) 527 (1,018) Other contracts 91 (10) 114 (8) Total derivatives $ 2,095 $ (2,351) $ 1,583 $ (1,392) The following table presents the fair values of derivative assets and liabilities categorized by type of hedge for accounting purposes and derivative investments: As at December 31, 2022 2021 Total notional amount Fair value Total notional amount Fair value Assets Liabilities Assets Liabilities Derivative investments (1) $ 68,417 $ 2,077 $ (2,330) $ 64,761 $ 1,536 $ (1,390) Fair value hedges 59 — (1) 414 1 (2) Cash flow hedges 1,292 18 (20) 791 46 — Total derivatives $ 69,768 $ 2,095 $ (2,351) $ 65,966 $ 1,583 $ (1,392) (1) Derivative investments are derivatives that have not been designated as hedges for accounting purposes. |
Schedule of hedge ineffectiveness | Hedge ineffectiveness recognized in Interest and other investment income consists of the following: For the years ended December 31, 2022 2021 Gains (losses) on the hedged items attributable to the hedged risk $ (2) $ (6) Gains (losses) on the hedging derivatives 3 8 Net ineffectiveness on fair value hedges $ 1 $ 2 |
Financial Instrument Risk Man_2
Financial Instrument Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financial Instruments [Abstract] | |
Disclosure of maximum exposure to credit risk | The positive fair value of derivative assets is used to determine the credit risk exposure if the counterparties were to default. The credit risk exposure is the cost of replacing, at current market rates, all derivative contracts with a positive fair value. Additionally, we have credit exposure to items not on the Consolidated Statements of Financial Position as follows: As at December 31, 2022 2021 Off-balance sheet item: Loan commitments (1) $ 2,217 $ 2,402 (1) Loan commitments include commitments to extend credit under commercial and multi-family residential mortgages and private debt securities not quoted in an active market. Commitments on debt securities contain provisions that allow for withdrawal of the commitment if there is deterioration in the credit quality of the borrower. |
Disclosure of right of offset and collateral | We do not offset financial instruments in our Consolidated Statements of Financial Position, as our rights of offset are conditional. The following tables present the effect of conditional netting and similar arrangements. Similar arrangements include global master repurchase agreements, security lending agreements, and any related rights to financial collateral. As at December 31, 2022 2021 Financial instruments presented in the Consolidated Statements of Financial Position (1) Related amounts not set off in the Consolidated Statements of Financial Position Financial instruments presented in the Consolidated Statements of Financial Position (1) Related amounts not set off in the Consolidated Statements of Financial Position Financial instruments subject to master netting or similar agreements Financial collateral (received) pledged (2) Net amount Financial instruments subject to master netting or similar agreements Financial collateral (received) pledged (2) Net amount Financial assets: Derivative assets (Note 6.A.v) $ 2,095 $ (1,088) $ (923) $ 84 $ 1,583 $ (828) $ (558) $ 197 Reverse repurchase agreements (Note 8) 14 (14) — — — — — — Total financial assets $ 2,109 $ (1,102) $ (923) $ 84 $ 1,583 $ (828) $ (558) $ 197 Financial liabilities: Derivative liabilities $ (2,351) $ 1,088 $ 1,136 $ (127) $ (1,392) $ 828 $ 550 $ (14) Repurchase agreements (Note 5.F.ii) (2,725) 14 2,711 — (2,324) — 2,324 — Cash collateral on securities lent (Note 5.F.iii) (215) — 203 (12) (51) — 48 (3) Obligations for securities borrowing (73) — 73 — (51) — 51 — Total financial liabilities $ (5,364) $ 1,102 $ 4,123 $ (139) $ (3,818) $ 828 $ 2,973 $ (17) (1) Net amounts of the financial instruments presented in our Consolidated Statements of Financial Position are the same as our gross recognized financial instruments, as we do not offset financial instruments in our Consolidated Statements of Financial Position. (2) Financial collateral presented in the table above excludes overcollateralization and, for exchange traded derivatives, initial margin. Total financial collateral, including initial margin and overcollateralization, received on derivative assets was $1,061 (December 31, 2021 — $678), received on reverse repurchase agreements was $14 (December 31, 2021 — $nil), pledged on derivative liabilities was $2,068 (December 31, 2021 — $1,616), and pledged on repurchase agreements was $2,725 (December 31, 2021 — $2,324). |
Disclosure of financial assets | The following table summarizes the financial assets included in our Consolidated Statements of Financial Position and the asset classifications applicable to these assets: Cash, cash equivalents and short-term securities FVTPL Debt securities FVTPL and AFS Equity securities FVTPL and AFS Mortgages and loans Loans and receivables Other invested assets FVTPL and AFS Policy loans Loans and receivables The carrying values and fair values of our financial assets are shown in the following table: As at December 31, 2022 December 31, 2021 Carrying Fair Carrying Fair Assets Cash, cash equivalents and short-term securities $ 11,219 $ 11,219 $ 12,278 $ 12,278 Debt securities - fair value through profit or loss 62,757 62,757 75,998 75,998 Debt securities - available-for-sale (1) 13,145 13,145 12,729 12,729 Equity securities - fair value through profit or loss 6,824 6,824 7,538 7,538 Equity securities - available-for-sale 324 324 1,575 1,575 Mortgages and loans (1) 56,261 51,850 51,692 55,756 Derivative assets 2,095 2,095 1,583 1,583 Other invested assets - fair value through profit or loss (2) 5,542 5,542 4,435 4,435 Other invested assets - available-for-sale (2) 996 996 781 781 Other invested assets - Collateralized Loan Obligations 3,044 2,880 1,865 1,855 Policy loans 3,350 3,350 3,261 3,261 Total financial assets (3) $ 165,557 $ 160,982 $ 173,735 $ 177,789 (1) As at December 31, 2022, the fair value of invested assets that have contractual cash flows that qualify as SPPI include $12,829 of Debt securities - AFS (December 31, 2021 — $12,604), $48,614 of Mortgages and loans supporting insurance contract liabilities (December 31, 2021 — $51,249), and $3,229 of Mortgages and loans not supporting insurance contract liabilities (December 31, 2021 — $4,499). (2) Other invested assets (FVTPL and AFS) include our investments in segregated funds, mutual funds and limited partnerships. (3) Invested assets on our Consolidated Statements of Financial Position of $177,292 (December 31, 2021 — $184,522) includes Total financial assets in this table, Investment properties of $10,102 (December 31, 2021 — $9,109), Other invested assets - non-financial assets of $1,633 (December 31, 2021 — $1,678). The following table provides a reconciliation of the beginning and ending balances for assets and liabilities that are categorized in Level 3: For the years ended Debt securities - fair value through profit or loss Debt securities - available-for-sale Equity securities - fair value through profit or loss Equity securities - available-for-sale Other Investment Total Investments Total December 31, 2022 Beginning balance $ 162 $ 43 $ 96 $ 74 $ 3,650 $ 9,109 $ 13,134 $ 611 $ 13,745 Included in net income (1)(2)(3) (31) 1 — 5 322 625 922 (32) 890 Included in OCI (2) — (4) — — 12 — 8 — 8 Purchases 321 75 6 1 1,843 664 2,910 78 2,988 Sales / Payments — (2) (4) (12) (313) (430) (761) (6) (767) Settlements (1) — — — (47) — (48) (1) (49) Transfers (out) of Level 3 (4) (59) (64) — — — — (123) — (123) Foreign currency translation (5) 5 — — 5 88 134 232 (19) 213 Ending balance $ 397 $ 49 $ 98 $ 73 $ 5,555 $ 10,102 $ 16,274 $ 631 $ 16,905 Gains (losses) included in earnings relating to instruments still held at the reporting date (1) $ (31) $ — $ — $ — $ 295 $ 612 $ 876 $ (20) $ 856 December 31, 2021 Beginning balance $ 225 $ 67 $ 181 $ 47 $ 2,645 $ 7,516 $ 10,681 $ 550 $ 11,231 Included in net income (1)(2)(3) (6) — 10 5 392 1,032 1,433 23 1,456 Included in OCI (2) — (1) — 33 13 — 45 — 45 Purchases 29 5 8 15 1,074 764 1,895 65 1,960 Sales / Payments (9) (13) (25) (26) (469) (197) (739) (9) (748) Settlements (15) (3) (5) — — — (23) (1) (24) Transfers (out) of Level 3 (4) (57) (10) (73) — — — (140) — (140) Foreign currency translation (5) (5) (2) — — (5) (6) (18) (17) (35) Ending balance $ 162 $ 43 $ 96 $ 74 $ 3,650 $ 9,109 $ 13,134 $ 611 $ 13,745 Gains (losses) included in earnings relating to instruments still held at the reporting date (1) $ (4) $ — $ 11 $ 5 $ 382 $ 1,038 $ 1,432 $ 27 $ 1,459 (1) Included in Net investment income (loss) for Total invested assets measured at fair value in our Consolidated Statements of Operations. (2) Total gains and losses in net income (loss) and OCI are calculated assuming transfers into or out of Level 3 occur at the beginning of the period. For an asset or liability that transfers into Level 3 during the reporting period, the entire change in fair value for the period is included in the table above. For transfers out of Level 3 during the reporting period, the change in fair value for the period is excluded from the table above. (3) Investment properties included in net income is comprised of fair value changes on investment properties of $667 (2021 — $1,070), net of amortization of leasing commissions and tenant inducements of $42 (2021 — $38). As at December 31, 2022, we have used assumptions that reflect known changes in the property values including changes in expected future cash flows. (4) Transfers out of Level 3 occur when the pricing inputs become more transparent and satisfy the Level 1 or 2 criteria and are primarily the result of observable market data being available at the reporting date, thus removing the requirement to rely on inputs that lack observability. (5) Foreign currency translation relates to the foreign exchange impact of translating Level 3 assets and liabilities of foreign subsidiaries from their functional currencies to Canadian dollars. Cash, cash equivalents and short-term securities presented in our Consolidated Statements of Financial Position and Net cash, cash equivalents and short-term securities presented in our Consolidated Statements of Cash Flows consist of the following: As at December 31, 2022 2021 Cash $ 3,068 $ 2,297 Cash equivalents 6,310 5,529 Short-term securities 1,841 4,452 Cash, cash equivalents and short-term securities 11,219 12,278 Less: Bank overdraft, recorded in Other liabilities 6 133 Net cash, cash equivalents and short-term securities $ 11,213 $ 12,145 The carrying value of debt securities by geographic location is shown in the following table. The geographic location is based on the country of the creditor's parent. As at December 31, 2022 2021 Fair value Available- Total debt Fair value Available- Total debt Canada $ 27,816 $ 4,861 $ 32,677 $ 33,028 $ 5,135 $ 38,163 United States 21,412 5,058 26,470 26,678 4,552 31,230 United Kingdom 2,914 583 3,497 4,196 562 4,758 Other 10,615 2,643 13,258 12,096 2,480 14,576 Total debt securities $ 62,757 $ 13,145 $ 75,902 $ 75,998 $ 12,729 $ 88,727 The carrying value of debt securities by issuer and industry sector is shown in the following table: As at December 31, 2022 2021 Fair value Available- Total debt Fair value Available- Total debt Debt securities issued or guaranteed by: Canadian federal government $ 3,881 $ 1,730 $ 5,611 $ 4,798 $ 2,303 $ 7,101 Canadian provincial and municipal government 12,638 1,027 13,665 15,930 1,149 17,079 U.S. government and agency 808 729 1,537 1,642 771 2,413 Other foreign government 3,863 761 4,624 4,754 757 5,511 Total government issued or guaranteed debt securities 21,190 4,247 25,437 27,124 4,980 32,104 Corporate debt securities by industry sector: Financials 9,377 1,978 11,355 10,258 1,690 11,948 Utilities 5,979 697 6,676 7,414 778 8,192 Industrials 4,762 813 5,575 5,791 805 6,596 Energy 3,069 273 3,342 3,992 287 4,279 Communication services 2,937 392 3,329 3,534 352 3,886 Real estate 1,920 586 2,506 2,334 354 2,688 Health care 1,682 352 2,034 2,081 346 2,427 Consumer staples 1,677 301 1,978 2,047 231 2,278 Consumer discretionary 1,395 441 1,836 1,814 306 2,120 Information technology 1,130 254 1,384 1,426 209 1,635 Materials 1,107 188 1,295 1,361 156 1,517 Total corporate debt securities 35,035 6,275 41,310 42,052 5,514 47,566 Asset-backed securities 6,532 2,623 9,155 6,822 2,235 9,057 Total debt securities $ 62,757 $ 13,145 $ 75,902 $ 75,998 $ 12,729 $ 88,727 The carrying value of mortgages and loans by geographic location and type is shown in the following tables. The geographic location for mortgages is based on location of property, while for corporate loans it is based on the country of the creditor's parent. As at December 31, 2022 Canada United States United Kingdom Other Total Mortgages: Retail $ 1,546 $ 1,455 $ — $ — $ 3,001 Office 1,762 1,522 — — 3,284 Multi-family residential 4,025 1,245 — — 5,270 Industrial and land 1,779 1,104 — — 2,883 Other 780 113 29 — 922 Total mortgages (1) $ 9,892 $ 5,439 $ 29 $ — $ 15,360 Loans $ 13,143 $ 17,238 $ 4,923 $ 5,597 $ 40,901 Total mortgages and loans $ 23,035 $ 22,677 $ 4,952 $ 5,597 $ 56,261 (1) $4,174 of mortgages in Canada are insured by the CMHC. As at December 31, 2021 Canada United States United Kingdom Other Total Mortgages: Retail $ 1,765 $ 1,623 $ — $ — 3,388 Office 1,892 1,639 — — 3,531 Multi-family residential 4,138 1,589 — — 5,727 Industrial and land 1,094 941 — — 2,035 Other 680 115 9 — 804 Total mortgages (1) $ 9,569 $ 5,907 $ 9 $ — $ 15,485 Loans $ 12,885 $ 14,596 $ 4,111 $ 4,615 $ 36,207 Total mortgages and loans $ 22,454 $ 20,503 $ 4,120 $ 4,615 $ 51,692 (1) $4,218 of mortgages in Canada are insured by the CMHC. The contractual maturities of debt securities are shown in the following table. Actual maturities could differ from contractual maturities because of the borrower's right to call or extend or right to prepay obligations, with or without prepayment penalties. As at December 31, 2022 2021 Fair value Available- Total debt Fair value Available- Total debt Due in 1 year or less $ 2,426 $ 1,334 $ 3,760 $ 2,505 $ 1,373 $ 3,878 Due in years 2-5 10,972 5,919 16,891 10,475 4,971 15,446 Due in years 6-10 9,889 2,969 12,858 11,328 3,350 14,678 Due after 10 years 39,470 2,923 42,393 51,690 3,035 54,725 Total debt securities $ 62,757 $ 13,145 $ 75,902 $ 75,998 $ 12,729 $ 88,727 The carrying value of mortgages by scheduled maturity, before allowances for losses, is as follows: As at December 31, 2022 2021 Due in 1 year or less $ 1,350 $ 884 Due in years 2-5 6,312 6,172 Due in years 6-10 5,210 5,979 Due after 10 years 2,568 2,530 Total mortgages $ 15,440 $ 15,565 The carrying value of loans by scheduled maturity, before allowances for losses, is as follows: As at December 31, 2022 2021 Due in 1 year or less $ 2,893 $ 1,772 Due in years 2-5 7,237 7,108 Due in years 6-10 8,726 7,393 Due after 10 years 22,157 19,986 Total loans $ 41,013 $ 36,259 |
Disclosure of notional amounts of derivative instruments by type and maturity | Notional amounts of derivative financial instruments are the basis for calculating payments and are generally not the actual amounts exchanged. The following table provides the notional amounts of derivative instruments outstanding by type of derivative and term to maturity: As at December 31, 2022 2021 Term to maturity Term to maturity Under 1 to 5 Over 5 Total Under 1 to 5 Over 5 Total Over-the-counter contracts: Interest rate contracts: Forward contracts $ 7 $ — $ — $ 7 $ 94 $ 6 $ — $ 100 Swap contracts 1,193 4,089 12,233 17,515 1,273 3,434 13,042 17,749 Options purchased 1,512 2,080 1,253 4,845 878 3,297 1,674 5,849 Options written (1) 135 224 — 359 — 461 — 461 Foreign exchange contracts: Forward contracts 17,243 — — 17,243 10,824 3,097 — 13,921 Swap contracts 806 2,598 18,138 21,542 725 2,654 16,494 19,873 Other contracts: Options purchased 338 — — 338 271 8 — 279 Forward contracts 145 168 — 313 154 163 — 317 Swap contracts 441 — — 441 446 — — 446 Credit derivatives 302 1,058 — 1,360 322 513 — 835 Exchange-traded contracts: Interest rate contracts: Futures contracts 3,005 — — 3,005 3,818 — — 3,818 Equity contracts: Futures contracts 2,481 — — 2,481 2,105 — — 2,105 Options purchased 189 78 — 267 213 — — 213 Options written 52 — — 52 — — — — Total notional amount $ 27,849 $ 10,295 $ 31,624 $ 69,768 $ 21,123 $ 13,633 $ 31,210 $ 65,966 (1) These are covered short derivative positions that may include interest rate options, swaptions, or floors. The following table provides the fair value of derivative instruments outstanding by term to maturity: As at December 31, 2022 2021 Term to maturity Term to maturity Under 1 to 5 Over 5 Total Under 1 to 5 Over 5 Total Derivative assets $ 167 $ 351 $ 1,577 $ 2,095 $ 139 $ 249 $ 1,195 $ 1,583 Derivative liabilities $ (379) $ (196) $ (1,776) $ (2,351) $ (97) $ (184) $ (1,111) $ (1,392) |
Disclosure of debt securities, mortgages, and loans by credit quality | The following table summarizes our debt securities by credit quality: As at December 31, 2022 2021 Fair value Available- Total debt Fair value Available- Total debt Debt securities by credit rating: AAA $ 10,400 $ 4,862 $ 15,262 $ 12,811 $ 5,294 $ 18,105 AA 9,545 1,765 11,310 11,510 1,502 13,012 A 24,144 3,552 27,696 29,984 3,282 33,266 BBB 17,947 2,721 20,668 20,710 2,484 23,194 BB and lower 721 245 966 983 167 1,150 Total debt securities $ 62,757 $ 13,145 $ 75,902 $ 75,998 $ 12,729 $ 88,727 The following tables summarize our mortgages and loans by credit quality indicator: As at December 31, 2022 2021 Mortgages by credit rating: Insured $ 4,174 $ 4,218 AA 1,769 1,640 A 5,917 4,979 BBB 2,911 3,814 BB and lower 589 822 Impaired — 12 Total mortgages $ 15,360 $ 15,485 As at December 31, 2022 2021 Loans by credit rating: AAA $ 274 $ 192 AA 5,712 4,994 A 16,891 14,231 BBB 15,920 14,632 BB and lower 2,071 2,139 Impaired 33 19 Total loans $ 40,901 $ 36,207 The following table shows the OTC derivative financial instruments with a positive fair value split by counterparty credit rating: As at December 31, 2022 2021 Gross positive replacement cost (2) Impact of master netting agreements (3) Net replacement cost (4) Gross positive replacement cost (2) Impact of master netting agreements (3) Net replacement cost (4) Over-the-counter contracts: AA $ 482 $ (254) $ 228 $ 402 $ (219) $ 183 A 1,560 (834) 726 1,080 (598) 482 BBB 15 — 15 74 (11) 63 Total over-the-counter derivatives (1) $ 2,057 $ (1,088) $ 969 $ 1,556 $ (828) $ 728 (1) Exchange-traded derivatives with a positive fair value of $38 in 2022 (2021 — $27) are excluded from the table above, as they are subject to daily margining requirements. Our credit exposure on these derivatives is with the exchanges and clearinghouses. (2) Used to determine the credit risk exposure if the counterparties were to default. The credit risk exposure is the cost of replacing, at current market rates, all contracts with a positive fair value. (3) The credit risk associated with derivative assets subject to master netting arrangements is reduced by derivative liabilities due to the same counterparty in the event of default or early termination. Our overall exposure to credit risk reduced through master netting arrangements may change substantially following the reporting date as the exposure is affected by each transaction subject to the arrangement. (4) Net replacement cost is positive replacement cost less the impact of master netting agreements. The following table provides a summary of the credit default swap protection sold by credit rating of the underlying reference security: As at December 31, 2022 2021 Notional Fair Notional Fair Single name credit default swap contracts: AA $ 20 $ — $ 38 $ 1 A 587 4 347 4 BBB 706 5 431 9 BB 47 7 19 — Total single name credit default swap contracts $ 1,360 $ 16 $ 835 $ 14 Total credit default swap contracts sold $ 1,360 $ 16 $ 835 $ 14 The table below presents the distribution of Reinsurance assets by credit rating: As at December 31, 2022 2021 Gross exposure Collateral Net exposure Gross exposure Collateral Net exposure Reinsurance assets by credit rating: AA $ 2,409 $ — $ 2,409 $ 2,170 $ — $ 2,170 A 1,308 30 1,278 928 28 900 BBB 133 118 15 139 117 22 BB 2,046 2,000 46 1,861 1,825 36 B 3 — 3 — — — CCC 237 237 — 197 194 3 Not rated 105 97 8 136 131 5 Total $ 6,241 $ 2,482 $ 3,759 $ 5,431 $ 2,295 $ 3,136 Less: Negative reinsurance assets 1,440 1,748 Total Reinsurance assets $ 4,801 $ 3,683 |
Disclosure of mortgages and loans past due or impaired | The distribution of mortgages and loans past due or impaired is shown in the following tables: Gross carrying value Allowance for losses As at December 31, 2022 Mortgages Loans Total Mortgages Loans Total Not past due $ 15,360 $ 40,868 $ 56,228 $ — $ — $ — Impaired 80 145 225 80 112 192 Total $ 15,440 $ 41,013 $ 56,453 $ 80 $ 112 $ 192 Gross carrying value Allowance for losses As at December 31, 2021 Mortgages Loans Total Mortgages Loans Total Not past due $ 15,473 $ 36,188 $ 51,661 $ — $ — $ — Impaired 92 71 163 80 52 132 Total $ 15,565 $ 36,259 $ 51,824 $ 80 $ 52 $ 132 |
Disclosure of changes in allowance for losses | The changes in the allowances for losses are as follows: Mortgages Loans Total Balance, January 1, 2021 $ 66 $ 49 $ 115 Provision for (reversal of) losses 15 5 20 Write-offs, net of recoveries, and other adjustments — (2) (2) Foreign exchange rate movements (1) — (1) Balance, December 31, 2021 $ 80 $ 52 $ 132 Provision for (reversal of) losses (2) 57 55 Foreign exchange rate movements 2 3 5 Balance, December 31, 2022 $ 80 $ 112 $ 192 |
Disclosure of equities by issue country | The carrying value of equities by issuer country is shown in the following table: As at December 31, 2022 2021 Fair value Available- Total Fair value Available- Total Canada $ 2,981 $ 57 $ 3,038 $ 3,301 $ 62 $ 3,363 United States 1,732 192 1,924 2,010 1,405 3,415 United Kingdom 150 4 154 186 6 192 Other 1,961 71 2,032 2,041 102 2,143 Total equities $ 6,824 $ 324 $ 7,148 $ 7,538 $ 1,575 $ 9,113 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of other assets | As at December 31, 2022 2021 Accounts receivable $ 2,833 $ 1,632 Investment income due and accrued 1,315 1,104 Property and equipment 607 612 Right-of-use assets 753 695 Deferred acquisition costs (1) 158 172 Prepaid expenses 1,089 406 Premium receivable 842 637 Accrued post-retirement benefit assets (Note 25) 98 83 Other 115 93 Total other assets $ 7,810 $ 5,434 (1) Amortization of deferred acquisition cost charged to income during the year amounted to $53 in 2022 (2021 — $23). |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Intangible Assets [Abstract] | |
Disclosure of reconciliation of changes in goodwill | Changes in the carrying amount of goodwill acquired through business combinations by reportable business segment are as follows: Canada U.S. Asia Asset Corporate Total Balance, January 1, 2021 $ 2,607 $ 1,062 $ 665 $ 1,551 $ 187 $ 6,072 Acquisitions (Note 3) — 53 3 423 — 479 Foreign exchange rate movements — (7) (9) (15) (3) (34) Balance, December 31, 2021 $ 2,607 $ 1,108 $ 659 $ 1,959 $ 184 $ 6,517 Acquisitions (Note 3) — 2,030 — — — 2,030 Impairment (1) — — — — (170) (170) Foreign exchange rate movements — 226 41 75 (14) 328 Balance, December 31, 2022 $ 2,607 $ 3,364 $ 700 $ 2,034 $ — $ 8,705 (1) The sale of Sun Life UK resulted in an impairment charge of $170 for the UK CGU within Corporate. See Note 3 for details. The carrying amounts of goodwill allocated to our CGUs or groups of CGUs are as follows: As at December 31, 2022 2021 Canada $ 2,607 $ 2,607 U.S. (1) Group Benefits 1,132 1,108 Dental 2,232 — Asia 700 659 Asset Management MFS 513 483 SLC Management 1,521 1,476 Corporate UK — 184 Total $ 8,705 $ 6,517 |
Disclosure of reconciliation of changes in and components of intangible assets | Changes in intangible assets are as follows: Finite life Internally Other Indefinite Total Gross carrying amount Balance, January 1, 2021 $ 1,070 $ 1,634 $ 938 $ 3,642 Additions 219 471 — 690 Acquisitions — 271 153 424 Disposals (24) — — (24) Foreign exchange rate movements — (9) (10) (19) Balance, December 31, 2021 $ 1,265 $ 2,367 $ 1,081 $ 4,713 Additions 206 23 — 229 Acquisitions 232 999 — 1,231 Disposals (1) — — (1) Foreign exchange rate movements 59 153 36 248 Balance, December 31, 2022 $ 1,761 $ 3,542 $ 1,117 $ 6,420 Accumulated amortization and impairment losses Balance, January 1, 2021 $ (561) $ (590) $ (14) $ (1,165) Amortization charge for the year (79) (114) — (193) Disposals 24 — — 24 Impairment of intangible assets — — (9) (9) Foreign exchange rate movements 1 (1) — — Balance, December 31, 2021 $ (615) $ (705) $ (23) $ (1,343) Amortization charge for the year (113) (174) — (287) Disposals 1 — — 1 Impairment of intangible assets (16) (2) — (18) Foreign exchange rate movements (22) (25) (2) (49) Balance, December 31, 2022 $ (765) $ (906) $ (25) $ (1,696) Net carrying amount, end of period: As at December 31, 2021 $ 650 $ 1,662 $ 1,058 $ 3,370 As at December 31, 2022 $ 996 $ 2,636 $ 1,092 $ 4,724 The components of the intangible assets are as follows: As at December 31, 2022 2021 Finite life intangible assets: Distribution, sales potential of field force $ 281 $ 295 Client relationships and asset administration contracts 2,355 1,367 Internally generated software 996 650 Total finite life intangible assets 3,632 2,312 Indefinite life intangible assets: Fund management contracts (1) 1,092 1,058 Total indefinite life intangible assets 1,092 1,058 Total intangible assets $ 4,724 $ 3,370 (1) Fund management contracts are attributable to Asset Management, where its competitive position in, and the stability of, its markets support their classification as indefinite life intangible assets. |
Insurance Contract Liabilitie_2
Insurance Contract Liabilities and Investment Contract Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Insurance Contracts [Abstract] | |
Disclosure of insurance contract liabilities | As at December 31, 2022 Canada U.S. Asia Corporate (1) Total Individual participating life $ 27,394 $ 5,060 $ 11,574 $ 634 $ 44,662 Individual non-participating life and health 13,681 12,808 11,397 266 38,152 Group life and health 11,693 5,599 33 (5) 17,320 Individual annuities 8,384 18 6 3,074 11,482 Group annuities 19,716 1 67 — 19,784 Insurance contract liabilities before other policy liabilities 80,868 23,486 23,077 3,969 131,400 Add: Other policy liabilities (2) 3,583 2,487 2,702 246 9,018 Total insurance contract liabilities $ 84,451 $ 25,973 $ 25,779 $ 4,215 $ 140,418 (1) Primarily business from the UK and run-off reinsurance operations. Includes UK business of $563 for Individual participating life, $154 for Individual non-participating life and health, $2,918 for Individual annuities, and $200 for Other policy liabilities. (2) Consists of amounts on deposit, policy benefits payable, provisions for unreported claims, provisions for policyholder dividends, and provisions for experience rating refunds. As at December 31, 2021 Canada U.S. Asia Corporate (1) Total Individual participating life $ 28,205 $ 5,150 $ 12,982 $ 860 $ 47,197 Individual non-participating life and health 15,735 14,196 11,774 329 42,034 Group life and health 11,682 5,580 34 17 17,313 Individual annuities 9,538 16 5 4,729 14,288 Group annuities 18,765 5 69 — 18,839 Insurance contract liabilities before other policy liabilities 83,925 24,947 24,864 5,935 139,671 Add: Other policy liabilities (2) 3,559 1,847 2,523 211 8,140 Total insurance contract liabilities $ 87,484 $ 26,794 $ 27,387 $ 6,146 $ 147,811 (1) Primarily business from the UK and run-off reinsurance operations. Includes UK business of $771 for Individual participating life, $207 for Individual non-participating life and health, $4,546 for Individual annuities, and $164 for Other policy liabilities. (2) Consists of amounts on deposit, policy benefits payable, provisions for unreported claims, provisions for policyholder dividends, and provisions for experience rating refunds. For the years ended December 31, 2022 2021 Insurance Reinsurance Net Insurance Reinsurance Net Balances before Other policy liabilities and assets as at January 1, $ 139,671 $ 2,905 $ 136,766 $ 137,733 $ 3,126 $ 134,607 Change in balances on in-force policies (15,530) (137) (15,393) (1,642) (18) (1,624) Balances arising from new policies 3,473 81 3,392 3,948 74 3,874 Method and assumption changes 950 1,007 (57) 131 (142) 273 Increase (decrease) in Insurance contract liabilities and Reinsurance assets (11,107) 951 (12,058) 2,437 (86) 2,523 Other (1) (2) — (2) — (109) 109 Foreign exchange rate movements 2,838 213 2,625 (499) (26) (473) Balances before Other policy liabilities and assets 131,400 4,069 127,331 139,671 2,905 136,766 Other policy liabilities and assets 9,018 732 8,286 8,140 778 7,362 Total Insurance contract liabilities and Reinsurance assets, December 31 $ 140,418 $ 4,801 $ 135,617 $ 147,811 $ 3,683 $ 144,128 (1) Recapture of reinsurance contracts. The following tables show the total assets supporting liabilities for the product lines shown (including insurance contract and investment contract liabilities) and assets supporting equity and other: As at December 31, 2022 Debt Equity Mortgages Investment Other Total Individual participating life $ 23,513 $ 4,836 $ 10,802 $ 6,345 $ 4,885 $ 50,381 Individual non-participating life and health 17,438 1,804 15,029 3,103 11,160 48,534 Group life and health 7,057 24 10,412 117 4,252 21,862 Individual annuities 7,822 34 6,573 — 819 15,248 Group annuities 9,046 100 10,444 109 1,469 21,168 Equity and other 11,026 350 3,001 428 33,616 48,421 Total assets $ 75,902 $ 7,148 $ 56,261 $ 10,102 $ 56,201 $ 205,614 As at December 31, 2021 Debt Equity Mortgages Investment Other Total Individual participating life $ 26,715 $ 5,374 $ 9,559 $ 5,932 $ 4,801 $ 52,381 Individual non-participating life and health 23,716 1,947 13,885 2,614 8,310 50,472 Group life and health 7,598 30 9,556 92 3,677 20,953 Individual annuities 10,314 40 6,435 — 907 17,696 Group annuities 9,612 111 9,198 24 1,305 20,250 Equity and other 10,772 1,611 3,059 447 27,733 43,622 Total assets $ 88,727 $ 9,113 $ 51,692 $ 9,109 $ 46,733 $ 205,374 Changes in the balances of our insurance contract liabilities and investment contract liabilities, including the net transfers to (from) segregated funds, as well as changes in our reinsurance assets, consist of the following: For the years ended December 31, 2022 2021 Increase (decrease) in insurance contract liabilities $ (11,107) $ 2,437 Decrease (increase) in reinsurance assets (951) 86 Increase (decrease) in investment contract liabilities (107) (22) Net transfer to (from) segregated funds (1,149) (351) Total changes in insurance contract liabilities, investment contract liabilities, reinsurance assets, and segregated funds $ (13,314) $ 2,150 |
Schedule of impacts of method and changes in assumptions on insurance contract liabilities | Impacts of method and assumption changes on Insurance contract liabilities, net of Reinsurance assets, are as follows: For the year ended December 31, 2022 Net increase (decrease) before income taxes Description Mortality / Morbidity $ (96) Updates to reflect mortality/morbidity experience in all jurisdictions. The largest items were favourable mortality impacts in the UK in Corporate and in Group Retirement Services in Canada offset partially by adverse morbidity impacts in Sun Life Health in Canada. Policyholder behaviour 71 Updates to lapse and policyholder behaviour in all jurisdictions. The largest item was an adverse lapse impact in Vietnam in Asia. Expenses 9 Updates to reflect expense experience. Investment returns 13 Updates to various investment-related assumptions. Model enhancements and other (54) Various enhancements and methodology changes. Total impact $ (57) For the year ended December 31, 2021 Net increase (decrease) before income taxes Description Mortality / Morbidity $ (89) Updates to reflect mortality/morbidity experience in all jurisdictions. Policyholder behaviour 219 Updates to policyholder behaviour in all jurisdictions. The largest item was in U.S. In-force Management. Expenses (202) Updates to reflect expense experience and margins in all jurisdictions. The largest item was a reduction in expense margins. Investment returns 416 Updates to various investment-related assumptions across the Company. The largest items were the updates to promulgated Ultimate Reinvestment Rate, promulgated maximum net credit spreads, and a reduction to the best estimate real estate assumption in all jurisdictions. Model enhancements and other (71) Various enhancements and methodology changes across all jurisdictions. Total impact $ 273 |
Schedule of investment contract liabilities | As at December 31, 2022 Canada Asia Corporate Total Individual participating life $ — $ — $ 4 $ 4 Individual non-participating life and health — 187 2 189 Individual annuities 2,550 — 35 2,585 Group annuities — 536 — 536 Total investment contract liabilities $ 2,550 $ 723 $ 41 $ 3,314 For the year ended December 31, 2022, Investment contract liabilities of $3,314 are comprised of investment contracts with DPF of $754, investment contracts without DPF measured at amortized cost of $2,550, and investment contracts without DPF measured at fair value of $10. As at December 31, 2021 Canada Asia Corporate Total Individual participating life $ — $ — $ 4 $ 4 Individual non-participating life and health — 235 2 237 Individual annuities 2,487 1 37 2,525 Group annuities — 602 — 602 Total investment contract liabilities $ 2,487 $ 838 $ 43 $ 3,368 For the year ended December 31, 2021, Investment contract liabilities of $3,368 are comprised of investment contracts with DPF of $872, investment contracts without DPF measured at amortized cost of $2,487, and investment contracts without DPF measured at fair value of $9. |
Schedule of reconciliation of changes in investment contract liabilities | Changes in investment contract liabilities without DPF are as follows: For the years ended December 31, 2022 2021 Measured at Measured at Measured at Measured at Balance as at January 1 $ 9 $ 2,487 $ 2 $ 2,690 Deposits — 443 — 303 Interest — 57 — 60 Withdrawals — (444) — (570) Fees — (5) — (7) Change in fair value 1 — 7 — Other — 12 — 10 Foreign exchange rate movements — — — 1 Balance as at December 31 $ 10 $ 2,550 $ 9 $ 2,487 Changes in investment contract liabilities with DPF are as follows: For the years ended December 31, 2022 2021 Balance as at January 1 $ 872 $ 497 Change in liabilities on in-force policies (165) (89) Increase (decrease) in liabilities (165) (89) Acquisitions (Note 3) — 471 Foreign exchange rate movements 47 (7) Balance as at December 31 $ 754 $ 872 |
Disclosure of claims and benefits paid | For the years ended December 31, 2022 2021 Maturities and surrenders $ 3,750 $ 3,205 Annuity payments 2,124 2,017 Death and disability benefits 4,950 4,876 Health benefits 9,588 7,246 Policyholder dividends and interest on claims and deposits 1,632 1,378 Total gross claims and benefits paid $ 22,044 $ 18,722 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Insurance Contracts [Abstract] | |
Schedule of reinsurance assets | Reinsurance assets are measured using the amounts and assumptions associated with the underlying insurance contracts and in accordance with the terms of each reinsurance contract. Reinsurance assets are comprised of the following: As at December 31, 2022 Canada U.S. Asia Corporate (1) Total Individual participating life $ 21 $ 18 $ 179 $ — $ 218 Individual non-participating life and health (282) 1,598 38 13 1,367 Group life and health 267 2,212 7 — 2,486 Individual annuities — — — 1 1 Group annuities (3) — — — (3) Reinsurance assets before other policy assets 3 3,828 224 14 4,069 Add: Other policy assets (2) 98 478 117 39 732 Total Reinsurance assets $ 101 $ 4,306 $ 341 $ 53 $ 4,801 (1) Primarily business from the UK and run-off reinsurance operations. Includes UK business of $13 for Individual non-participating life and health, and $1 for Individual annuities. (2) Consists of amounts on deposit, policy benefits payable, provisions for unreported claims, provisions for policyholder dividends, and provisions for experience rating refunds. As at December 31, 2021 Canada U.S. Asia Corporate (1) Total Individual participating life $ — $ 7 $ 214 $ — $ 221 Individual non-participating life and health (547) 838 33 16 340 Group life and health 284 2,018 5 — 2,307 Individual annuities — — — 15 15 Group annuities 22 — — — 22 Reinsurance assets before other policy assets (241) 2,863 252 31 2,905 Add: Other policy assets (2) 95 563 81 39 778 Total Reinsurance assets $ (146) $ 3,426 $ 333 $ 70 $ 3,683 (1) Primarily business from the UK and run-off reinsurance operations. Includes UK business of $16 for Individual non-participating life and health, and $15 for Individual annuities. (2) Consists of amounts on deposit, policy benefits payable, provisions for unreported claims, provisions for policyholder dividends, and provisions for experience rating refunds. |
Schedule of reinsurance expenses and benefits | For the years ended December 31, 2022 2021 Recovered claims and benefits $ 1,961 $ 2,233 Commissions 73 65 Reserve adjustments 22 45 Operating expenses and other 84 82 Total reinsurance (expenses) recoveries $ 2,140 $ 2,425 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of other liabilities | As at December 31, 2022 2021 Accounts payable $ 2,639 $ 1,866 Bank overdrafts and cash pooling 6 133 Repurchase agreements (Note 5) 2,725 2,324 Accrued expenses and taxes 4,213 4,265 Credit facilities 2,339 441 Borrowed funds (1) 403 432 Accrued post-retirement benefit liability (Note 25) 268 528 Secured borrowings from mortgage securitization (Note 5) 2,158 2,007 Lease liabilities 952 850 Other financial liabilities (Note 5) (2) 1,996 1,810 Obligations for securities borrowing 73 51 Collateralized loan obligation (Note 5) 2,816 1,726 Deferred payments liability 299 330 Other 1,761 1,020 Total other liabilities $ 22,648 $ 17,783 (1) The change in Borrowed funds relates to net cash flow changes of $(34) in 2022 (2021 — $31) and foreign exchange rate movements of $8 in 2022 (2021 — $nil). (2) Comprises financial liabilities related to acquisitions, including put option liabilities and financial liabilities due to NCI. Interest expense related to financial liabilities are $68 in 2022 (2021 — $64). |
Schedule of borrowings | Borrowed funds include the following: As at December 31, Currency of Maturity 2022 2021 Encumbrances on real estate Cdn. dollars Current - 2032 $ 326 $ 323 Encumbrances on real estate U.S. dollars 2023 - 2027 77 109 Total borrowed funds $ 403 $ 432 The following obligations are included in Senior debentures as at December 31: Interest Earliest par call or Maturity 2022 2021 Sun Life Assurance senior debentures: (2) Issued to Sun Life Capital Trust ("SLCT I") Series B issued June 25, 2002 7.09 % June 30, 2032 (3) 2052 $ 200 $ 200 Fair value $ 215 $ 271 (1) All senior debentures are unsecured. (2) Redemption is subject to regulatory approval. (3) Redeemable in whole or in part on any interest payment date or in whole upon the occurrence of a Regulatory Event or Tax Event, as described in the debenture. Prior to June 30, 2032, the redemption price is the greater of par and a price based on the yield of a corresponding Government of Canada bond plus 0.32%; from June 30, 2032, the redemption price is par. The following obligations are included in Subordinated debt as at December 31, and qualify as capital for Canadian regulatory purposes: Interest rate Earliest par call date (1) Maturity 2022 2021 Sun Life Assurance: Issued May 15, 1998 (2) 6.30 % n/a 2028 $ 150 $ 150 Sun Life Financial Inc.: Issued May 29, 2007 (3) 5.40 % May 29, 2037 (4) 2042 398 398 Issued September 19, 2016 (5) 3.05 % September 19, 2023 2028 999 998 Issued November 23, 2017 (6) 2.75 % November 23, 2022 2027 — 400 Issued August 13, 2019 (7) 2.38 % August 13, 2024 2029 749 748 Issued May 8, 2020 (8) 2.58 % May 10, 2027 2032 996 995 Issued October 1, 2020 (9) 2.06 % October 1, 2030 2035 746 746 Issued November 18, 2021 (10) 2.46 % November 18, 2026 2031 498 497 Issued November 18, 2021 (11),(13) 2.80 % November 21, 2028 2033 996 995 Issued November 18, 2021 (12),(13) 3.15 % November 18, 2031 2036 498 498 Issued August 10, 2022 (14) 4.78 % August 10, 2029 2034 646 — Total subordinated debt $ 6,676 $ 6,425 Fair value $ 6,106 $ 6,675 (1) Subject to regulatory approval all obligations are redeemable 5-years after issuance date. From the date noted, the redemption price is par and redemption may only occur on a scheduled interest payment date. (2) 6.30% Debentures, Series 2, due 2028, issued by The Mutual Life Assurance Company of Canada, which subsequently changed its name to Clarica Life Insurance Company ("Clarica") and was amalgamated with Sun Life Assurance. These debentures are redeemable at any time. Prior to May 15, 2028, the redemption price is the greater of par and a price based on the yield of a corresponding Government of Canada bond plus 0.16%. (3) Series 2007-1 Subordinated Unsecured 5.40% Fixed/Floating Debentures due 2042. From May 29, 2037, interest is payable at 1.00% over CDOR. (4) For redemption of the 2007 debentures prior to the date noted, the redemption price is the greater of par and a price based on the yield of a corresponding Government of Canada bond plus 0.25%. (5) Series 2016-2 Subordinated Unsecured 3.05% Fixed/Floating Debentures due 2028. From September 19, 2023, interest is payable at 1.85% over CDOR. Between September 19, 2021 and September 19, 2023, the redemption price is the greater of par and a price based on the yield of a corresponding Government of Canada bond plus 0.52%. (6) Series 2017-1 Subordinated Unsecured 2.75% Fixed/Floating Debentures due 2027. From November 23, 2022, interest is payable at 0.74% over CDOR. On November 23, 2022, SLF Inc. redeemed all of the outstanding $400 principal amount of these debentures in accordance with the redemption terms attached to such debentures. (7) Series 2019-1 Subordinated Unsecured 2.38% Fixed/Floating Debentures due 2029. From August 13, 2024, interest is payable at 0.85% over CDOR. (8) Series 2020-1 Subordinated Unsecured 2.58% Fixed/Floating Debentures due 2032. From May 10, 2027, interest is payable at 1.66% over CDOR. Between May 10, 2025 and May 10, 2027, the redemption price is the greater of par and a price based on the yield of a corresponding Government of Canada bond plus 0.52%. (9) Series 2020-2 Subordinated Unsecured 2.06% Fixed/Floating Debentures due 2035. From October 1, 2030, interest is payable at 1.03% over CDOR. Between October 1, 2025 and October 1, 2030, the redemption price is the greater of par and a price based on the yield of a corresponding Government of Canada bond plus 0.38%. (10) Series 2021-1 Subordinated Unsecured 2.46% Fixed/Floating Debentures due 2031. From November 18, 2026, interest is payable at 0.44% over CDOR. (11) Series 2021-2 Subordinated Unsecured 2.80% Fixed/Floating Debentures due 2033. From November 21, 2028, interest is payable at 0.69% over CDOR. Between November 21, 2026 and November 21, 2028, the redemption price is the greater of par and a price based on the yield of a corresponding Government of Canada bond plus 0.285%. (12) Series 2021-3 Subordinated Unsecured 3.15% Fixed/Floating Debentures due 2036. From November 18, 2031, interest is payable at 0.91% over CDOR. Between November 18, 2026 and November 18, 2031, the redemption price is the greater of par and a price based on the yield of a corresponding Government of Canada bond plus 0.335%. (13) Subject to contractual terms requiring us to redeem the underlying securities, in full, if the closing of the DentaQuest acquisition does not occur. (14) Series 2022-1 Subordinated Unsecured 4.78% Fixed/Floating Debentures due 2034. From August 10, 2029, interest is payable at 1.96% over the Canadian Overnight Repo Rate Average ("CORRA"). |
Senior Debentures and Innovat_2
Senior Debentures and Innovative Capital Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financial Instruments [Abstract] | |
Schedule of borrowings | Borrowed funds include the following: As at December 31, Currency of Maturity 2022 2021 Encumbrances on real estate Cdn. dollars Current - 2032 $ 326 $ 323 Encumbrances on real estate U.S. dollars 2023 - 2027 77 109 Total borrowed funds $ 403 $ 432 The following obligations are included in Senior debentures as at December 31: Interest Earliest par call or Maturity 2022 2021 Sun Life Assurance senior debentures: (2) Issued to Sun Life Capital Trust ("SLCT I") Series B issued June 25, 2002 7.09 % June 30, 2032 (3) 2052 $ 200 $ 200 Fair value $ 215 $ 271 (1) All senior debentures are unsecured. (2) Redemption is subject to regulatory approval. (3) Redeemable in whole or in part on any interest payment date or in whole upon the occurrence of a Regulatory Event or Tax Event, as described in the debenture. Prior to June 30, 2032, the redemption price is the greater of par and a price based on the yield of a corresponding Government of Canada bond plus 0.32%; from June 30, 2032, the redemption price is par. The following obligations are included in Subordinated debt as at December 31, and qualify as capital for Canadian regulatory purposes: Interest rate Earliest par call date (1) Maturity 2022 2021 Sun Life Assurance: Issued May 15, 1998 (2) 6.30 % n/a 2028 $ 150 $ 150 Sun Life Financial Inc.: Issued May 29, 2007 (3) 5.40 % May 29, 2037 (4) 2042 398 398 Issued September 19, 2016 (5) 3.05 % September 19, 2023 2028 999 998 Issued November 23, 2017 (6) 2.75 % November 23, 2022 2027 — 400 Issued August 13, 2019 (7) 2.38 % August 13, 2024 2029 749 748 Issued May 8, 2020 (8) 2.58 % May 10, 2027 2032 996 995 Issued October 1, 2020 (9) 2.06 % October 1, 2030 2035 746 746 Issued November 18, 2021 (10) 2.46 % November 18, 2026 2031 498 497 Issued November 18, 2021 (11),(13) 2.80 % November 21, 2028 2033 996 995 Issued November 18, 2021 (12),(13) 3.15 % November 18, 2031 2036 498 498 Issued August 10, 2022 (14) 4.78 % August 10, 2029 2034 646 — Total subordinated debt $ 6,676 $ 6,425 Fair value $ 6,106 $ 6,675 (1) Subject to regulatory approval all obligations are redeemable 5-years after issuance date. From the date noted, the redemption price is par and redemption may only occur on a scheduled interest payment date. (2) 6.30% Debentures, Series 2, due 2028, issued by The Mutual Life Assurance Company of Canada, which subsequently changed its name to Clarica Life Insurance Company ("Clarica") and was amalgamated with Sun Life Assurance. These debentures are redeemable at any time. Prior to May 15, 2028, the redemption price is the greater of par and a price based on the yield of a corresponding Government of Canada bond plus 0.16%. (3) Series 2007-1 Subordinated Unsecured 5.40% Fixed/Floating Debentures due 2042. From May 29, 2037, interest is payable at 1.00% over CDOR. (4) For redemption of the 2007 debentures prior to the date noted, the redemption price is the greater of par and a price based on the yield of a corresponding Government of Canada bond plus 0.25%. (5) Series 2016-2 Subordinated Unsecured 3.05% Fixed/Floating Debentures due 2028. From September 19, 2023, interest is payable at 1.85% over CDOR. Between September 19, 2021 and September 19, 2023, the redemption price is the greater of par and a price based on the yield of a corresponding Government of Canada bond plus 0.52%. (6) Series 2017-1 Subordinated Unsecured 2.75% Fixed/Floating Debentures due 2027. From November 23, 2022, interest is payable at 0.74% over CDOR. On November 23, 2022, SLF Inc. redeemed all of the outstanding $400 principal amount of these debentures in accordance with the redemption terms attached to such debentures. (7) Series 2019-1 Subordinated Unsecured 2.38% Fixed/Floating Debentures due 2029. From August 13, 2024, interest is payable at 0.85% over CDOR. (8) Series 2020-1 Subordinated Unsecured 2.58% Fixed/Floating Debentures due 2032. From May 10, 2027, interest is payable at 1.66% over CDOR. Between May 10, 2025 and May 10, 2027, the redemption price is the greater of par and a price based on the yield of a corresponding Government of Canada bond plus 0.52%. (9) Series 2020-2 Subordinated Unsecured 2.06% Fixed/Floating Debentures due 2035. From October 1, 2030, interest is payable at 1.03% over CDOR. Between October 1, 2025 and October 1, 2030, the redemption price is the greater of par and a price based on the yield of a corresponding Government of Canada bond plus 0.38%. (10) Series 2021-1 Subordinated Unsecured 2.46% Fixed/Floating Debentures due 2031. From November 18, 2026, interest is payable at 0.44% over CDOR. (11) Series 2021-2 Subordinated Unsecured 2.80% Fixed/Floating Debentures due 2033. From November 21, 2028, interest is payable at 0.69% over CDOR. Between November 21, 2026 and November 21, 2028, the redemption price is the greater of par and a price based on the yield of a corresponding Government of Canada bond plus 0.285%. (12) Series 2021-3 Subordinated Unsecured 3.15% Fixed/Floating Debentures due 2036. From November 18, 2031, interest is payable at 0.91% over CDOR. Between November 18, 2026 and November 18, 2031, the redemption price is the greater of par and a price based on the yield of a corresponding Government of Canada bond plus 0.335%. (13) Subject to contractual terms requiring us to redeem the underlying securities, in full, if the closing of the DentaQuest acquisition does not occur. (14) Series 2022-1 Subordinated Unsecured 4.78% Fixed/Floating Debentures due 2034. From August 10, 2029, interest is payable at 1.96% over the Canadian Overnight Repo Rate Average ("CORRA"). |
Schedule of significant terms and conditions | The table below presents additional significant terms and conditions of the SLEECS: Issuer Issuance date Distribution or interest payment dates Annual yield Redemption date at the issuer’s option Conversion date at the holder’s option Principal amount Sun Life Capital Trust ("SLCT I") (1)(2)(3)(4) SLEECS B June 25, 2002 June 30, December 31 7.093 % June 30, 2007 Any time $ 200 (1) Subject to regulatory approval, SLCT I may (i) redeem any outstanding SLEECS, in whole or in part, on the redemption date specified above or on any distribution date thereafter and (ii) may redeem all, but not part of any class of SLEECS upon occurrence of a Regulatory Event or a Tax Event, prior to the redemption date specified above. (2) The SLEECS B may be redeemed for cash equivalent to (i) the greater of the Early Redemption Price or the Redemption Price if the redemption occurs prior to June 30, 2032 or (ii) the Redemption Price if the redemption occurs on or after June 30, 2032. Redemption Price is equal to one thousand dollars plus the unpaid distributions, other than unpaid distributions resulting from a Missed Dividend Event, to the redemption date. Early Redemption Price for the SLEECS B is the price calculated to provide an annual yield, equal to the yield of a Government of Canada bond issued on the redemption date that has a maturity date of June 30, 2032, plus 32 basis points, plus the unpaid distributions, other than unpaid distributions resulting from a Missed Dividend Event, to the redemption date. (3) The non-cumulative perpetual preferred shares of Sun Life Assurance issued upon an Automatic Exchange Event in respect of the SLEECS B will become convertible, at the option of the holder, into a variable number of common shares of SLF Inc. on distribution dates on or after December 31, 2032. |
Subordinated Debt (Tables)
Subordinated Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financial Instruments [Abstract] | |
Schedule of borrowings | Borrowed funds include the following: As at December 31, Currency of Maturity 2022 2021 Encumbrances on real estate Cdn. dollars Current - 2032 $ 326 $ 323 Encumbrances on real estate U.S. dollars 2023 - 2027 77 109 Total borrowed funds $ 403 $ 432 The following obligations are included in Senior debentures as at December 31: Interest Earliest par call or Maturity 2022 2021 Sun Life Assurance senior debentures: (2) Issued to Sun Life Capital Trust ("SLCT I") Series B issued June 25, 2002 7.09 % June 30, 2032 (3) 2052 $ 200 $ 200 Fair value $ 215 $ 271 (1) All senior debentures are unsecured. (2) Redemption is subject to regulatory approval. (3) Redeemable in whole or in part on any interest payment date or in whole upon the occurrence of a Regulatory Event or Tax Event, as described in the debenture. Prior to June 30, 2032, the redemption price is the greater of par and a price based on the yield of a corresponding Government of Canada bond plus 0.32%; from June 30, 2032, the redemption price is par. The following obligations are included in Subordinated debt as at December 31, and qualify as capital for Canadian regulatory purposes: Interest rate Earliest par call date (1) Maturity 2022 2021 Sun Life Assurance: Issued May 15, 1998 (2) 6.30 % n/a 2028 $ 150 $ 150 Sun Life Financial Inc.: Issued May 29, 2007 (3) 5.40 % May 29, 2037 (4) 2042 398 398 Issued September 19, 2016 (5) 3.05 % September 19, 2023 2028 999 998 Issued November 23, 2017 (6) 2.75 % November 23, 2022 2027 — 400 Issued August 13, 2019 (7) 2.38 % August 13, 2024 2029 749 748 Issued May 8, 2020 (8) 2.58 % May 10, 2027 2032 996 995 Issued October 1, 2020 (9) 2.06 % October 1, 2030 2035 746 746 Issued November 18, 2021 (10) 2.46 % November 18, 2026 2031 498 497 Issued November 18, 2021 (11),(13) 2.80 % November 21, 2028 2033 996 995 Issued November 18, 2021 (12),(13) 3.15 % November 18, 2031 2036 498 498 Issued August 10, 2022 (14) 4.78 % August 10, 2029 2034 646 — Total subordinated debt $ 6,676 $ 6,425 Fair value $ 6,106 $ 6,675 (1) Subject to regulatory approval all obligations are redeemable 5-years after issuance date. From the date noted, the redemption price is par and redemption may only occur on a scheduled interest payment date. (2) 6.30% Debentures, Series 2, due 2028, issued by The Mutual Life Assurance Company of Canada, which subsequently changed its name to Clarica Life Insurance Company ("Clarica") and was amalgamated with Sun Life Assurance. These debentures are redeemable at any time. Prior to May 15, 2028, the redemption price is the greater of par and a price based on the yield of a corresponding Government of Canada bond plus 0.16%. (3) Series 2007-1 Subordinated Unsecured 5.40% Fixed/Floating Debentures due 2042. From May 29, 2037, interest is payable at 1.00% over CDOR. (4) For redemption of the 2007 debentures prior to the date noted, the redemption price is the greater of par and a price based on the yield of a corresponding Government of Canada bond plus 0.25%. (5) Series 2016-2 Subordinated Unsecured 3.05% Fixed/Floating Debentures due 2028. From September 19, 2023, interest is payable at 1.85% over CDOR. Between September 19, 2021 and September 19, 2023, the redemption price is the greater of par and a price based on the yield of a corresponding Government of Canada bond plus 0.52%. (6) Series 2017-1 Subordinated Unsecured 2.75% Fixed/Floating Debentures due 2027. From November 23, 2022, interest is payable at 0.74% over CDOR. On November 23, 2022, SLF Inc. redeemed all of the outstanding $400 principal amount of these debentures in accordance with the redemption terms attached to such debentures. (7) Series 2019-1 Subordinated Unsecured 2.38% Fixed/Floating Debentures due 2029. From August 13, 2024, interest is payable at 0.85% over CDOR. (8) Series 2020-1 Subordinated Unsecured 2.58% Fixed/Floating Debentures due 2032. From May 10, 2027, interest is payable at 1.66% over CDOR. Between May 10, 2025 and May 10, 2027, the redemption price is the greater of par and a price based on the yield of a corresponding Government of Canada bond plus 0.52%. (9) Series 2020-2 Subordinated Unsecured 2.06% Fixed/Floating Debentures due 2035. From October 1, 2030, interest is payable at 1.03% over CDOR. Between October 1, 2025 and October 1, 2030, the redemption price is the greater of par and a price based on the yield of a corresponding Government of Canada bond plus 0.38%. (10) Series 2021-1 Subordinated Unsecured 2.46% Fixed/Floating Debentures due 2031. From November 18, 2026, interest is payable at 0.44% over CDOR. (11) Series 2021-2 Subordinated Unsecured 2.80% Fixed/Floating Debentures due 2033. From November 21, 2028, interest is payable at 0.69% over CDOR. Between November 21, 2026 and November 21, 2028, the redemption price is the greater of par and a price based on the yield of a corresponding Government of Canada bond plus 0.285%. (12) Series 2021-3 Subordinated Unsecured 3.15% Fixed/Floating Debentures due 2036. From November 18, 2031, interest is payable at 0.91% over CDOR. Between November 18, 2026 and November 18, 2031, the redemption price is the greater of par and a price based on the yield of a corresponding Government of Canada bond plus 0.335%. (13) Subject to contractual terms requiring us to redeem the underlying securities, in full, if the closing of the DentaQuest acquisition does not occur. (14) Series 2022-1 Subordinated Unsecured 4.78% Fixed/Floating Debentures due 2034. From August 10, 2029, interest is payable at 1.96% over the Canadian Overnight Repo Rate Average ("CORRA"). |
Share Capital (Tables)
Share Capital (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share Capital, Reserves And Other Equity Interest [Abstract] | |
Disclosure of classes of share capital | Changes in common shares issued and outstanding for the years ended December 31 were as follows: 2022 2021 Common shares (in millions of shares) Number of Amount Number of Amount Balance, beginning of period 586.0 $ 8,305 585.1 $ 8,262 Stock options exercised (Note 19) 0.4 6 0.9 43 Balance, end of period 586.4 $ 8,311 586.0 $ 8,305 Further information on the preferred shares outstanding, as at December 31, 2022, is as follows: Issue date Annual Annual Earliest par call or redemption date (1) Number Face Net amount (2) Class A Preferred shares Series 3 January 13, 2006 4.45 % $ 1.11 Any time 10.0 250 245 Series 4 October 10, 2006 4.45 % $ 1.11 Any time 12.0 300 293 Series 5 February 2, 2007 4.50 % $ 1.13 Any time 10.0 250 245 Series 8R (3) May 25, 2010 1.825 % (3) $ 0.46 June 30, 2025 (4) 6.2 155 152 Series 9QR (5) June 30, 2015 Floating (6) Floating June 30, 2025 (7) 5.0 125 122 Series 10R (3) August 12, 2011 2.967 % (3) $ 0.74 (8) September 30, 2026 (4) 6.8 171 167 Series 11QR (5) September 30, 2016 Floating (6) Floating September 30, 2026 (7) 1.2 29 28 Other Equity Instruments Series 2021-1 (9) June 30, 2021 3.600 % n/a June 30, 2026 1.0 1,000 987 Total preferred shares and other equity instruments 52.2 $ 2,280 $ 2,239 (1) Redemption of all preferred shares and other equity instruments is subject to regulatory approval. (2) Net of after-tax issuance costs. (3) On the earliest redemption date and every five years thereafter, the dividend rate will reset to an annual rate equal to the 5-year Government of Canada bond yield plus a spread specified for each series. The specified spread for Class A shares is: Series 8R - 1.41% and Series 10R - 2.17%. On the earliest redemption date and every five years thereafter, holders will have the right, at their option, to convert their shares into the series that is one number higher than their existing series. (4) Redeemable on the redemption date and every five years thereafter, in whole or in part, at $25.00 per share. (5) On the earliest redemption date and every five years thereafter, holders will have the right, at their option, to convert those shares into the series that is one number lower than their existing series. (6) Holders are entitled to receive quarterly floating rate non-cumulative dividends at an annual rate equal to the then 3-month Government of Canada treasury bill yield plus a spread specified for each series. The specified spread for Class A shares is: Series 9QR - 1.41% and Series 11QR - 2.17%. (7) Redeemable on the redemption date and every five years thereafter, in whole or in part, at $25.00 per share, and on any other date at $25.50 per share. (8) The annual dividend per share in the table above is the amount paid per share in 2022. |
Interests in Other Entities (Ta
Interests in Other Entities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Interests In Other Entities [Abstract] | |
Financial information of associates | The following table summarizes, in aggregate, the financial information of these joint ventures and associates: As at or for the years ended December 31, 2022 2021 Carrying amount of interests in joint ventures and associates $ 1,594 $ 1,652 Our share of: Net income (loss) (5) 122 Other comprehensive income (loss) (109) (14) Total comprehensive income (loss) $ (114) $ 108 |
Financial information of joint ventures | The following table summarizes, in aggregate, the financial information of these joint ventures and associates: As at or for the years ended December 31, 2022 2021 Carrying amount of interests in joint ventures and associates $ 1,594 $ 1,652 Our share of: Net income (loss) (5) 122 Other comprehensive income (loss) (109) (14) Total comprehensive income (loss) $ (114) $ 108 |
Information on interests in unconsolidated structured entities | Information on our interests in unconsolidated structured entities is as follows: As at December 31, 2022 2021 Type of structured entity Type of investment held Consolidated Statements Carrying Maximum exposure to loss (1) Carrying Maximum exposure to loss (1) Securitization entities - third-party managed Debt securities Debt securities $ 9,155 $ 9,155 $ 9,057 $ 9,057 Securitization entities - third-party managed Short-term securities Cash, cash equivalents and short-term $ 790 $ 790 $ 1,084 $ 1,084 Investment funds - third-party managed Investment fund units Equity securities $ 5,766 $ 5,766 $ 7,411 $ 7,411 Investment funds - company managed (2) Investment fund units and Limited partnership units Equity securities and Other invested assets $ 3,365 $ 3,365 $ 2,978 $ 2,978 Limited partnerships - third-party managed Limited partnership units Other invested assets $ 2,786 $ 2,786 $ 2,391 $ 2,391 (1) The maximum exposure to loss is the maximum loss that we could record through comprehensive income as a result of our involvement with these entities. |
Fee Income (Tables)
Fee Income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Analysis of income and expense [abstract] | |
Schedule of fee income | For the years ended December 31, 2022 2021 Fee income from insurance contracts $ 1,169 $ 1,175 Fee income from service contracts: Distribution fees 868 959 Fund management and other asset-based fees 4,922 4,981 Administrative service and other fees 1,087 887 Total fee income $ 8,046 $ 8,002 |
Operating Expenses, Commissio_2
Operating Expenses, Commissions, and Premium Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Analysis of income and expense [abstract] | |
Summary of operating expenses | For the years ended December 31, 2022 2021 Operating expenses: Employee expenses (1) $ 5,107 $ 5,102 Premises and equipment 216 182 Capital asset depreciation 241 245 Service fees 1,152 1,101 Amortization of intangible assets (Note 9) 287 193 Impairment of intangible assets (Note 9) 18 9 Impairment of goodwill (Note 9) 170 — Other expenses 1,850 1,747 Operating expenses $ 9,041 $ 8,579 Commissions 2,836 2,809 Premium taxes 487 429 Total operating expenses, commissions and premium taxes $ 12,364 $ 11,817 (1) See table below for further details. |
Summary of employee expenses | Employee expenses for the years ended December 31 consist of the following: 2022 2021 Salaries, bonus, employee benefits $ 4,846 $ 4,320 Share-based payments (Note 19) 227 757 Other personnel costs 34 25 Total employee expenses $ 5,107 $ 5,102 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangements [Abstract] | |
Schedule of stock options outstanding | The activities in the stock option plans for the years ended December 31 are as follows: 2022 2021 Number of stock options (thousands) Weighted average exercise price Number of Weighted average Balance, January 1, 3,042 $ 55.85 3,173 $ 49.65 Granted 709 $ 68.12 769 $ 63.39 Exercised (115) $ 45.94 (900) $ 40.44 Forfeited (47) $ 62.38 — $ — Balance, December 31, 3,589 $ 58.51 3,042 $ 55.85 Exercisable, December 31, 1,785 $ 53.33 1,223 $ 50.22 |
Schedule of exercise price ranges | The stock options outstanding as at December 31, 2022, by exercise price, are as follows: Range of exercise prices Number of stock options (thousands) Weighted average remaining contractual life (years) Weighted average exercise price $36.98 to $45.00 206 1.96 $ 39.80 $45.01 to $55.00 1,228 4.14 $ 51.21 $55.01 to $65.00 1,257 6.85 $ 62.19 $65.01 to $68.12 898 8.98 $ 67.64 Total stock options 3,589 6.18 $ 58.51 |
Schedule of fair value options granted using Black-Scholes options pricing model | The Black-Scholes option pricing model used the following assumptions to determine the fair value of options granted during the years ending December 31: Weighted average assumptions 2022 2021 Risk-free interest rate 1.8 % 0.9 % Expected volatility 23.7 % 24.9 % Expected dividend yield 4.0 % 4.0 % Expected life of the option (in years) 6.3 6.3 Exercise price $ 68.12 $ 63.39 |
Explanation of effect of share-based payments on entity's financial position | The units outstanding under these plans and the liabilities recognized for these units in our Consolidated Statements of Financial Position are summarized in the following table: Number of units (in thousands) Sun Shares DSUs Total Units outstanding December 31, 2022 4,675 710 5,385 Units outstanding December 31, 2021 4,817 929 5,746 Liability accrued as at December 31, 2022 $ 188 $ 44 $ 232 Liability accrued as at December 31, 2021 $ 314 $ 63 $ 377 |
Schedule of compensation and income tax expense | Compensation expense and the Income tax expense (benefit) for other share-based payment plans for the years ended December 31 are shown in the following table. Since expenses for the DSUs are accrued as part of incentive compensation in the year awarded, the expenses below do not include these accruals. The expenses presented in the following table include increases in the liabilities for Sun Shares and DSUs due to changes in the fair value of the common shares and the accruals of the Sun Shares liabilities over the vesting period, and exclude any adjustment in expenses due to the impact of hedging. For the years ended December 31, 2022 2021 Compensation expense $ 43 $ 213 Income tax expense (benefit) $ (9) $ (54) Compensation expense and the Income tax expense (benefit) for these awards for the years ended December 31 are shown in the following table: For the years ended December 31, 2022 2021 Compensation expense $ 168 $ 529 Income tax expense (benefit) $ (49) $ (79) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes [Abstract] | |
Summary of deferred tax assets and liabilities | The following represents the deferred tax assets and liabilities in the Consolidated Statements of Financial Position: As at December 31, 2022 2021 Deferred tax assets (1) $ 2,282 $ 1,848 Deferred tax liabilities (1) 630 322 Net deferred tax asset $ 1,652 $ 1,526 (1) Our deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred taxes relate to the same taxable entity and the same taxation authority. The movement in net deferred tax assets for the years ended December 31, are as follows: Investments Policy liabilities (1) Deferred Losses Pension Other (2) Total As at December 31, 2021 $ (1,178) $ 1,727 $ 74 $ 853 $ 301 $ (251) $ 1,526 Acquisitions (disposals) through business combinations (3) 1 10 — 32 8 (277) (226) Charged to statement of operations 492 (380) 4 (10) (6) (7) 93 Charged to other comprehensive income 135 85 — 92 (75) — 237 Charged to equity, other than other comprehensive income — — — 15 — — 15 Foreign exchange rate movements and Other 13 (19) 6 4 14 (11) 7 As at December 31, 2022 $ (537) $ 1,423 $ 84 $ 986 $ 242 $ (546) $ 1,652 (1) Consists of Insurance contract liabilities and Investment contract liabilities, net of Reinsurance assets. (2) Includes unused tax credits. (3) Refer to Note 3. Investments Policy liabilities (1) Deferred Losses Pension Other (2) Total As at December 31, 2020 $ (1,240) $ 1,621 $ 82 $ 708 $ 322 $ (242) $ 1,251 Charged to statement of operations 53 48 (9) 125 (14) (7) 196 Charged to other comprehensive income 25 30 — 17 9 4 85 Foreign exchange rate movements and Other (16) 28 1 3 (16) (6) (6) As at December 31, 2021 $ (1,178) $ 1,727 $ 74 $ 853 $ 301 $ (251) $ 1,526 (1) Consists of Insurance contract liabilities and Investment contract liabilities, net of Reinsurance assets. (2) Includes unused tax credits. |
Components of income tax expense (benefit) | In our Consolidated Statements of Operations, Income tax expense (benefit) for the years ended December 31 has the following components: 2022 2021 Current income tax expense (benefit): Current year $ 781 $ 964 Adjustments in respect of prior years, including resolution of tax disputes (67) (41) Total current income tax expense (benefit) 714 923 Deferred income tax expense (benefit): Origination and reversal of temporary differences (67) (204) Adjustments in respect of prior years, including resolution of tax disputes 48 (8) Tax expense (benefit) arising from unrecognized tax losses 18 6 Tax rate and other legislative changes (92) 10 Total deferred income tax expense (benefit) (93) (196) Total income tax expense (benefit) $ 621 $ 727 |
Summary of income tax relating to equity | Income tax benefit (expense) recognized directly in equity for the years ended December 31: 2022 2021 Recognized in other comprehensive income: Current income tax benefit (expense) $ 2 $ 3 Deferred income tax benefit (expense) 237 85 Total recognized in other comprehensive income 239 88 Recognized in equity, other than other comprehensive income: Deferred income tax benefit (expense) 15 — Total income tax benefit (expense) recorded in equity, including tax benefit (expense) recorded in Other comprehensive income $ 254 $ 88 |
Summary of effective income tax rate differences | Our effective income tax rate differs from the combined Canadian federal and provincial statutory income tax rate as follows: For the years ended December 31, 2022 2021 % % Total net income (loss) $ 3,302 $ 4,370 Add: Income tax expense (benefit) 621 727 Total net income (loss) before income taxes $ 3,923 $ 5,097 Taxes at the combined Canadian federal and provincial statutory income tax rate $ 1,089 27.8 $ 1,338 26.3 Increase (decrease) in rate resulting from: Higher (lower) effective rates on income subject to taxation in foreign jurisdictions (286) (7.4) (231) (4.5) Tax-exempt investment (income) loss (128) (3.3) (345) (6.8) Adjustments in respect of prior periods, including resolution of tax disputes (19) (0.5) (49) (1.0) Tax (benefit) cost of unrecognized tax losses and tax credits 18 0.5 6 0.1 Tax rate and other legislative changes (92) (2.3) 10 0.2 Other 39 1.0 (2) — Total income tax expense (benefit) and effective income tax rate $ 621 15.8 $ 727 14.3 |
Capital Management (Tables)
Capital Management (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Schedule of total capital | For regulatory reporting purposes under the LICAT framework, there were further adjustments, including goodwill, non-life investments, and others as prescribed by OSFI, to the total capital figure presented in the table below: As at December 31, 2022 2021 Subordinated debt $ 6,676 $ 6,425 Innovative capital instruments (1) 200 200 Equity: Preferred shares and other equity instruments 2,239 2,239 Common shareholders’ equity (2) 25,211 24,075 Participating policyholders’ equity 1,837 1,700 Non-controlling interests’ equity 90 59 Total capital $ 36,253 $ 34,698 (1) Innovative capital instruments are SLEECS issued by SLCT I (Note 13). SLCT I is not consolidated by us. (2) Common shareholders' equity is equal to Total shareholders' equity less Preferred shares and other equity instruments |
Segregated Funds (Tables)
Segregated Funds (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Separate Accounts Disclosure 1 [Abstract] | |
Summary of segregated fund types by percentage of investments | The segregated fund types offered, by percentage of total investments for account of segregated fund holders, were within the following ranges as at December 31, 2022 and 2021: Type of fund % Money market 1 to 5 Fixed income 5 to 10 Balanced 40 to 45 Equity 45 to 50 |
Summary of carrying calue of Investments held for segregated fund holders | The carrying value of investments held for segregated fund holders are as follows: As at December 31, 2022 2021 Segregated and mutual fund units $ 113,070 $ 125,944 Equity securities 8,251 9,963 Debt securities 2,858 3,410 Cash, cash equivalents and short-term securities 805 778 Investment properties 438 446 Mortgages 17 19 Other assets 130 141 Total assets $ 125,569 $ 140,701 Less: Liabilities arising from investing activities 277 705 Total investments for account of segregated fund holders $ 125,292 $ 139,996 |
Summary of changes in insurance contracts and investment contracts for account of segregated fund holders | For the years ended December 31, 2022 2021 Balance as at January 1 $ 139,996 $ 125,921 Additions to segregated funds: Deposits 14,266 13,509 Net transfer (to) from general funds (1,149) (351) Net realized and unrealized gains (losses) (18,669) 9,516 Other investment income 4,959 6,558 Total additions $ (593) $ 29,232 Deductions from segregated funds: Payments to policyholders and their beneficiaries 12,218 12,966 Management fees 1,188 1,276 Taxes and other expenses 392 435 Foreign exchange rate movements 313 480 Total deductions $ 14,111 $ 15,157 Net additions (deductions) (14,704) 14,075 Balance as at December 31 $ 125,292 $ 139,996 |
Commitments, Guarantees and C_2
Commitments, Guarantees and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Consolidated Summary Financial Information | The following tables set forth certain consolidating summary financial information for SLF Inc. and Sun Life Assurance (consolidated): For the years ended SLF Inc.(unconsolidated) Sun Life Other Consolidation SLF Inc. December 31, 2022 Revenue $ 603 $ 12,608 $ 9,618 $ 493 $ 23,322 Shareholders’ net income (loss) $ 3,135 $ 1,825 $ 968 $ (2,798) $ 3,130 December 31, 2021 Revenue $ 320 $ 27,527 $ 9,060 $ (1,219) $ 35,688 Shareholders’ net income (loss) $ 4,035 $ 2,823 $ 1,062 $ (3,885) $ 4,035 Assets and liabilities as at SLF Inc.(unconsolidated) Sun Life Other Consolidation SLF Inc. December 31, 2022 Invested assets $ 31,897 $ 167,638 $ 12,495 $ (34,738) $ 177,292 Total other general fund assets $ 6,594 $ 26,400 $ 22,791 $ (27,463) $ 28,322 Investments for account of segregated fund holders $ — $ 125,242 $ 50 $ — $ 125,292 Insurance contract liabilities $ — $ 140,415 $ 8,530 $ (8,527) $ 140,418 Investment contract liabilities $ — $ 3,314 $ — $ — $ 3,314 Total other general fund liabilities $ 9,916 $ 24,638 $ 17,766 $ (19,815) $ 32,505 December 31, 2021 Invested assets $ 30,984 $ 174,777 $ 13,006 $ (34,245) $ 184,522 Total other general fund assets $ 12,462 $ 24,580 $ 32,525 $ (48,715) $ 20,852 Investments for account of segregated fund holders $ — $ 139,929 $ 67 $ — $ 139,996 Insurance contract liabilities $ — $ 147,989 $ 10,105 $ (10,283) $ 147,811 Investment contract liabilities $ — $ 3,368 $ — $ — $ 3,368 Total other general fund liabilities $ 16,020 $ 24,249 $ 27,702 $ (41,849) $ 26,122 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party [Abstract] | |
Aggregate Compensation to Executive Team and Directors | The aggregate compensation to the executive team and directors are as follows: For the years ended December 31, 2022 2021 Executive team Directors Executive team Directors Number of individuals 13 11 14 13 Base salary and annual incentive compensation $ 19 $ — $ 22 $ — Additional short-term benefits and other $ 1 $ — $ 1 $ 1 Share-based long-term incentive compensation $ 32 $ 3 $ 36 $ 2 Value of pension and post-retirement benefits $ 2 $ — $ 6 $ — Severance $ — $ — $ 6 $ — |
Pension Plans and Other Post-_2
Pension Plans and Other Post-Retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Employee Benefits [Abstract] | |
Schedule of benefit obligations in excess of fair value of plan assets | The following tables set forth the status of the defined benefit pension and other post-retirement benefit plans: 2022 2021 Pension Other post-retirement Total Pension Other post-retirement Total Change in defined benefit obligations: Defined benefit obligation, January 1 $ 3,836 $ 252 $ 4,088 $ 4,060 $ 277 $ 4,337 Current service cost 49 7 56 59 7 66 Interest cost 106 8 114 98 7 105 Actuarial losses (gains) (1,027) (51) (1,078) (169) (23) (192) Benefits paid (194) (14) (208) (192) (15) (207) Foreign exchange rate movement (7) 4 (3) (20) (1) (21) Defined benefit obligation, December 31 $ 2,763 $ 206 $ 2,969 $ 3,836 $ 252 $ 4,088 Change in plan assets: Fair value of plan assets, January 1 $ 3,643 $ — $ 3,643 $ 3,909 $ — $ 3,909 Administrative expense (1) — (1) (1) — (1) Interest income on plan assets 101 — 101 92 — 92 Return on plan assets (excluding amounts included in net interest expense) (825) — (825) (234) — (234) Employer contributions 85 14 99 94 15 109 Benefits paid (194) (14) (208) (192) (15) (207) Foreign exchange rate movement (10) — (10) (25) — (25) Fair value of plan assets, December 31 $ 2,799 $ — $ 2,799 $ 3,643 $ — $ 3,643 Amounts recognized on Statement of Financial Position: Fair value of plan assets $ 2,799 $ — $ 2,799 $ 3,643 $ — $ 3,643 Defined benefit (obligation) (2,763) (206) (2,969) (3,836) (252) (4,088) Net recognized (liability) asset, December 31 $ 36 $ (206) $ (170) $ (193) $ (252) $ (445) Components of net benefit expense recognized: Current service cost $ 49 $ 7 $ 56 $ 59 $ 7 $ 66 Administrative expense 1 — 1 1 — 1 Net interest expense (income) 5 8 13 6 7 13 Other long-term employee benefit losses (gains) — (6) (6) — (3) (3) Net benefit expense $ 55 $ 9 $ 64 $ 66 $ 11 $ 77 Remeasurement of net recognized (liability) asset: Return on plan assets (excluding amounts included in net interest expense) $ (825) $ — $ (825) $ (234) $ — $ (234) Actuarial gains (losses) arising from changes in demographic assumptions 18 — 18 2 — 2 Actuarial gains (losses) arising from changes in financial assumptions 1,027 45 1,072 187 13 200 Actuarial gains (losses) arising from experience adjustments (18) — (18) (20) 7 (13) Foreign exchange rate movement (1) (3) (4) (3) — (3) Components of defined benefit costs recognized in Other comprehensive income (loss) $ 201 $ 42 $ 243 $ (68) $ 20 $ (48) |
Schedule of assumptions used | 2022 2021 Canada % UK % U.S. % Canada % UK % U.S. % To determine defined benefit obligation at end of year: Discount rate for pension plans 5.00 4.75 5.55 3.00 1.90 3.00 Rate of compensation increase 2.75 n/a n/a 2.80 n/a n/a Pension increases 0.00-0.05 3.05 n/a 0.00-0.05 3.30 n/a To determine net benefit expense for year: Discount rate for pension plans 3.00 1.90 3.00 2.70 1.30 2.65 Rate of compensation increase 2.80 n/a n/a 2.80 n/a n/a Pension increases 0.00-0.05 3.30 n/a 0.00-0.05 2.95 n/a Health care trend rates: Initial health care trend rate 5.16 n/a 7.00 5.10 n/a 6.50 Ultimate health care trend rate 4.00 n/a 5.00 4.00 n/a 5.00 Year ultimate health care trend rate reached 2040 n/a 2031 2040 n/a 2025 2022 2021 Canada UK U.S. Canada UK U.S. Mortality rates: Life expectancy (in years) for individuals currently at age 65: Male 23 23 22 23 23 22 Female 25 25 23 25 25 23 Life expectancy (in years) at 65 for individuals currently at age 45: Male 24 25 23 24 24 23 Female 26 27 25 26 27 25 Average duration (in years) of pension obligation 13.2 12.9 10.0 16.9 17.4 12.2 |
Schedule of effect of percentage-point changes for sensitives | The impact of changes in each key assumption may result in greater than proportional changes in sensitivities. Pension Post-retirement Interest/discount rate sensitivity: (1) 1% decrease $ 391 $ 20 1% increase $ (309) $ (17) Rate of compensation increase assumption: 1% decrease $ (39) n/a 1% increase $ 44 n/a Health care trend rate assumption: 1% decrease n/a $ (10) 1% increase n/a $ 12 Mortality rates: (2) 10% decrease $ 64 $ 3 (1) Represents a parallel shift in interest rates across the entire yield curve, resulting in a change in the discount rate assumption. (2) Represents 10% decrease in mortality rates at each age. |
Schedule of allocation of plan assets | Composition of fair value of plan assets, December 31: 2022 2021 Equity investments 3 % 3 % Fixed income investments 65 % 64 % Real estate investments 11 % 9 % Qualifying insurance contract 15 % 19 % Other 6 % 5 % Total composition of fair value of plan assets 100 % 100 % |
Schedule of expected future benefit contributions and benefit payments | The following tables set forth the expected contributions and expected future benefit payments of the defined benefit pension and other post-retirement benefit plans: Pension Post-retirement Total Expected contributions for the next 12 months $ 70 $ 16 $ 86 Expected Future Benefit Payments 2023 2024 2025 2026 2027 2028 to 2032 Pension $ 158 $ 159 $ 167 $ 171 $ 174 $ 911 Post-retirement 16 17 17 18 18 97 Total $ 174 $ 176 $ 184 $ 189 $ 192 $ 1,008 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings per share [abstract] | |
Schedule of earnings (loss) per share | Details of the calculation of the net income (loss) and the weighted average number of shares used in the earnings per share computations are as follows: For the years ended December 31, 2022 2021 Common shareholders' net income (loss) for basic earnings per share $ 3,060 $ 3,934 Add: Increase in income due to convertible instruments (1) 10 10 Common shareholders’ net income (loss) on a diluted basis $ 3,070 $ 3,944 Weighted average number of common shares outstanding for basic earnings per share (in millions) 586 586 Add: Dilutive impact of stock options (2) (in millions) — — Dilutive impact of convertible instruments (1) (in millions) 3 4 Weighted average number of common shares outstanding on a diluted basis (in millions) 589 590 Basic earnings (loss) per share $ 5.22 $ 6.72 Diluted earnings (loss) per share $ 5.21 $ 6.69 (1) The convertible instruments are the SLEECS B issued by SLCT I. (2) Excludes the impact of 1 million stock options for the year ended December 31, 2022 (December 31, 2021 — 1 million) because these stock options were anti-dilutive for the year. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Analysis Of Other Comprehensive Income By Item [Abstract] | |
Schedule of changes in accumulated other comprehensive income (loss) | Changes in accumulated other comprehensive income (loss), net of taxes, are as follows: 2022 2021 For the years ended December 31, Balance, beginning of period Other Balance, Balance, beginning of period Other Balance, Items that may be reclassified subsequently to income: Unrealized foreign currency translation gains (losses), net of hedging activities $ 953 $ 934 $ 1,887 $ 1,155 $ (202) $ 953 Unrealized gains (losses) on available-for-sale assets 266 (1,290) (1,024) 632 (366) 266 Unrealized gains (losses) on cash flow hedges (7) (11) (18) (13) 6 (7) Share of other comprehensive income (loss) in joint ventures and associates (47) (109) (156) (42) (5) (47) Items that will not be reclassified subsequently to income: Remeasurement of defined benefit plans (322) 168 (154) (283) (39) (322) Revaluation of property, plant and equipment 145 (2) 143 145 — 145 Total $ 988 $ (310) $ 678 $ 1,594 $ (606) $ 988 Total attributable to: Participating policyholders $ 2 $ 21 $ 23 $ 5 $ (3) $ 2 Non-controlling interest — 4 4 — — — Shareholders 986 (335) 651 1,589 (603) 986 Total $ 988 $ (310) $ 678 $ 1,594 $ (606) $ 988 |
Significant Accounting Polici_4
Significant Accounting Policies - Narrative (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Top of range | Finite life intangible assets | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Intangible asset useful life | 40 years |
Owner-occupied properties | Bottom of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property useful life | 25 years |
Owner-occupied properties | Top of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property useful life | 49 years |
Furniture, computers, and other office equipment, and leasehold improvements | Bottom of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property useful life | 2 years |
Furniture, computers, and other office equipment, and leasehold improvements | Top of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property useful life | 20 years |
Changes in Accounting Policie_2
Changes in Accounting Policies - Narrative (Details) - CAD ($) $ in Millions | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Interbank Offered Rate (IBOR) | |||
Disclosure of voluntary change in accounting policy [line items] | |||
Non-derivative financial assets | $ 2,750 | $ 3,849 | |
Non-derivative financial liabilities | 77 | 70 | |
Total notional amount | 1,683 | $ 9,417 | |
Canadian Dollar Offered Rate (CDOR) | |||
Disclosure of voluntary change in accounting policy [line items] | |||
Non-derivative financial assets | 396 | $ 387 | |
Non-derivative financial liabilities | 5,892 | 6,286 | |
Total notional amount | $ 11,725 | $ 10,748 |
Changes in Accounting Policie_3
Changes in Accounting Policies - Key Financial Items Affected (Details) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of voluntary change in accounting policy [line items] | ||
Invested assets | $ 11,215 | $ 8,759 |
Policy loans | 3,350 | 3,261 |
Reinsurance contract held assets and Insurance contract assets | 4,801 | 3,683 |
Other assets | 7,810 | 5,434 |
Total assets | 330,906 | 345,370 |
Insurance contract liabilities and Reinsurance contract held liabilities | 140,418 | 147,811 |
Investment contract liabilities | 3,314 | 3,368 |
Other liabilities | 22,648 | 17,783 |
Total liabilities | 301,529 | 317,297 |
Total equity | 29,377 | 28,073 |
Total liabilities and equity | 330,906 | 345,370 |
Shareholders' equity | (27,450) | (26,314) |
Equity in participating account | $ 1,837 | 1,700 |
As at January 1, 2022 | ||
Disclosure of voluntary change in accounting policy [line items] | ||
Invested assets | 181,261 | |
Policy loans | 3,261 | |
Reinsurance contract held assets and Insurance contract assets | 3,683 | |
Other assets | 157,165 | |
Total assets | 345,370 | |
Insurance contract liabilities and Reinsurance contract held liabilities | 147,811 | |
Investment contract liabilities | 3,368 | |
Other liabilities | 166,118 | |
Total liabilities | 317,297 | |
Total equity | 28,073 | |
Total liabilities and equity | 345,370 | |
IFRS 9 Adjustments | Cumulative Effect, Period of Adoption, Adjustment | ||
Disclosure of voluntary change in accounting policy [line items] | ||
Invested assets | 4,007 | |
Policy loans | 0 | |
Reinsurance contract held assets and Insurance contract assets | 0 | |
Other assets | 0 | |
Total assets | 4,007 | |
Insurance contract liabilities and Reinsurance contract held liabilities | 0 | |
Investment contract liabilities | 0 | |
Other liabilities | 0 | |
Total liabilities | 0 | |
Total equity | 4,007 | |
Total liabilities and equity | 4,007 | |
IFRS 17 Adjustments | ||
Disclosure of voluntary change in accounting policy [line items] | ||
Contractual service margin | 10,000 | |
IFRS 17 Adjustments | Cumulative Effect, Period of Adoption, Adjustment | ||
Disclosure of voluntary change in accounting policy [line items] | ||
Invested assets | 0 | |
Policy loans | (3,261) | |
Reinsurance contract held assets and Insurance contract assets | 4,803 | |
Other assets | (1,157) | |
Total assets | 385 | |
Insurance contract liabilities and Reinsurance contract held liabilities | 5,301 | |
Investment contract liabilities | 6,546 | |
Other liabilities | (412) | |
Total liabilities | 11,435 | |
Total equity | (11,050) | |
Total liabilities and equity | 385 | |
Other | Cumulative Effect, Period of Adoption, Adjustment | ||
Disclosure of voluntary change in accounting policy [line items] | ||
Invested assets | 0 | |
Policy loans | 0 | |
Reinsurance contract held assets and Insurance contract assets | 0 | |
Other assets | 1,180 | |
Total assets | 1,180 | |
Insurance contract liabilities and Reinsurance contract held liabilities | 0 | |
Investment contract liabilities | 0 | |
Other liabilities | 0 | |
Total liabilities | 0 | |
Total equity | 1,180 | |
Total liabilities and equity | 1,180 | |
As at January 1, 2022 subsequent to transition | ||
Disclosure of voluntary change in accounting policy [line items] | ||
Invested assets | 185,268 | |
Policy loans | 0 | |
Reinsurance contract held assets and Insurance contract assets | 8,486 | |
Other assets | 157,188 | |
Total assets | 350,942 | |
Insurance contract liabilities and Reinsurance contract held liabilities | 153,112 | |
Investment contract liabilities | 9,914 | |
Other liabilities | 165,706 | |
Total liabilities | 328,732 | |
Total equity | 22,210 | |
Total liabilities and equity | 350,942 | |
Shareholders' equity | 4,500 | |
Equity in participating account | $ 1,400 |
Acquisitions and Other - SLF of
Acquisitions and Other - SLF of Canada UK Limited Disposition (Details) - 12 months ended Dec. 31, 2022 £ in Millions, $ in Millions | CAD ($) | GBP (£) |
Goodwill | ||
Disclosure of detailed information about business combination [line items] | ||
Impairment | $ 170 | |
Sun Life UK | Disposal groups classified as held for sale | ||
Disclosure of detailed information about business combination [line items] | ||
Amount of agreement to sell | 385 | £ 248 |
Net carrying value of assets and liabilities classified as held for sale | 403 | |
Sun Life UK | Disposal groups classified as held for sale | Goodwill | ||
Disclosure of detailed information about business combination [line items] | ||
Impairment | $ 170 |
Acquisitions and Other - Adviso
Acquisitions and Other - Advisors Asset Management Inc. (Details) - Advisors Asset Management Inc. $ in Millions, $ in Millions | Sep. 01, 2022 CAD ($) | Sep. 01, 2022 USD ($) | Jun. 01, 2022 |
Disclosure of detailed information about business combination [line items] | |||
Percentage of voting shares of certain legal entities acquired | 51% | ||
Consideration transferred | $ 280 | $ 214 |
Acquisitions and Other - DentaQ
Acquisitions and Other - DentaQuest (Details) - DentaQuest $ in Millions, $ in Millions | 7 Months Ended | ||
Dec. 31, 2022 CAD ($) | Jun. 01, 2022 CAD ($) | Jun. 01, 2022 USD ($) | |
Disclosure of detailed information about business combination [line items] | |||
Consideration transferred | $ 3,267 | $ 2,584 | |
Percentage of voting shares of certain legal entities acquired | 100% | 100% | |
Cash transferred | $ 3,267 | ||
Revenue of acquiree since acquisition date | $ 2,061 |
Acquisitions and Other - Summar
Acquisitions and Other - Summary of Fair Value of Net Identifiable Assets Recognized from Acquisition (Details) - CAD ($) $ in Millions | Jun. 01, 2022 | Jan. 05, 2021 |
DentaQuest | ||
Disclosure of detailed information about business combination [line items] | ||
Intangible assets | $ 1,208 | |
Net assets | 255 | |
Deferred tax liabilities | (226) | |
Total identifiable net assets at fair value | 1,237 | |
Goodwill arising on acquisition | 2,030 | |
Total consideration | $ 3,267 | |
Crescent | ||
Disclosure of detailed information about business combination [line items] | ||
Intangible assets | $ 341 | |
Net liabilities | (119) | |
Total identifiable net assets at fair value | 222 | |
Non-controlling interest | (317) | |
Goodwill arising on acquisition | 409 | |
Total consideration | $ 314 |
Acquisitions and Other - Pinnac
Acquisitions and Other - Pinnacle Care International, Inc (Details) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Jul. 01, 2021 |
Disclosure of detailed information about business combination [line items] | |||
Goodwill | $ 8,705 | $ 6,517 | |
Intangible assets | $ 4,724 | $ 3,370 | |
PinnacleCare | |||
Disclosure of detailed information about business combination [line items] | |||
Percentage of voting shares of certain legal entities acquired | 100% | ||
Cash transferred | $ 110 | ||
Goodwill | 45 | ||
Intangible assets | $ 64 |
Acquisitions and Other - Cresce
Acquisitions and Other - Crescent Capital Group LP (Details) - Crescent $ in Millions | Jan. 05, 2021 CAD ($) |
Disclosure of detailed information about business combination [line items] | |
Percentage of voting shares of certain legal entities acquired | 51% |
Cash transferred | $ 308 |
Contingent consideration | $ 6 |
Acquisitions and Other - Impact
Acquisitions and Other - Impact of Acquisition to Assets, Liabilities, and Equity (Details) $ in Millions | Jan. 05, 2021 CAD ($) |
Share purchase | |
Disclosure of detailed information about business combination [line items] | |
Cash consideration | $ (308) |
Intangible assets | 341 |
Goodwill | 409 |
Total assets | 442 |
Net liabilities | (119) |
Total liabilities | (125) |
Non-controlling interest | (317) |
Retained earnings | 0 |
Total equity | (317) |
Put option adjustments | |
Disclosure of detailed information about business combination [line items] | |
Cash consideration | 0 |
Intangible assets | 0 |
Goodwill | 0 |
Total assets | 0 |
Net liabilities | 0 |
Total liabilities | (441) |
Non-controlling interest | 302 |
Retained earnings | 139 |
Total equity | 441 |
Crescent | |
Disclosure of detailed information about business combination [line items] | |
Cash consideration | (308) |
Intangible assets | 341 |
Goodwill | 409 |
Total assets | 442 |
Net liabilities | (119) |
Total liabilities | (566) |
Non-controlling interest | (317) |
Retained earnings | 139 |
Total equity | 124 |
Crescent - Non-controlling interest | |
Disclosure of detailed information about business combination [line items] | |
Non-controlling interest | (15) |
Contingent Consideration Liability | Share purchase | |
Disclosure of detailed information about business combination [line items] | |
Other financial liabilities | (6) |
Contingent Consideration Liability | Put option adjustments | |
Disclosure of detailed information about business combination [line items] | |
Other financial liabilities | 0 |
Contingent Consideration Liability | Crescent | |
Disclosure of detailed information about business combination [line items] | |
Other financial liabilities | (6) |
Put Option Liability | Share purchase | |
Disclosure of detailed information about business combination [line items] | |
Other financial liabilities | 0 |
Put Option Liability | Put option adjustments | |
Disclosure of detailed information about business combination [line items] | |
Other financial liabilities | (441) |
Put Option Liability | Crescent | |
Disclosure of detailed information about business combination [line items] | |
Other financial liabilities | $ (441) |
Acquisitions and Other - Acquis
Acquisitions and Other - Acquisitions and Other (Details) - CAD ($) $ in Millions | Apr. 05, 2022 | Feb. 01, 2021 | Jan. 01, 2021 | Jun. 30, 2025 | Jun. 30, 2022 | Jan. 31, 2021 |
PT Bank CIMB Niaga Tbk | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Bancassurance partnership, term | 15 years | |||||
Bancassurance partnership, extension term | 6 years | |||||
Consideration transferred | $ 508 | |||||
Intangible assets | $ 18 | |||||
PT Bank CIMB Niaga Tbk | Forecast | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Intangible assets | $ 490 | |||||
FWD | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Net proceeds from business acquisition | $ 17 | |||||
Increase in invested assets | 480 | |||||
Increase in contract liabilities | $ 480 | |||||
ACB | ||||||
Disclosure of detailed information about business combination [line items] | ||||||
Bancassurance partnership, term | 15 years | |||||
Consideration transferred | $ 471 |
Segmented Information - Narrati
Segmented Information - Narrative (Details) | Dec. 31, 2022 segment |
Operating Segments [Abstract] | |
Number of operating segments | 5 |
Segmented Information - Operati
Segmented Information - Operating Results by Segment (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of operating segments [line items] | ||
Gross premiums: | $ 29,160 | $ 25,506 |
Less: Ceded premiums | 2,297 | 2,453 |
Net investment income (loss) | (11,587) | 4,633 |
Fee income | 8,046 | 8,002 |
Total revenue | 23,322 | 35,688 |
Total benefits and expenses | 19,399 | 30,591 |
Income tax expense (benefit) | 621 | 727 |
Total net income (loss) | 3,302 | 4,370 |
Net income (loss) attributable to participating policyholders | 116 | 335 |
Net income (loss) attributable to non-controlling interests | 56 | 0 |
Shareholders’ net income (loss) | 3,130 | 4,035 |
Consolidation adjustments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 0 | 0 |
Less: Ceded premiums | 0 | 0 |
Net investment income (loss) | (90) | (99) |
Fee income | (316) | (278) |
Total revenue | (406) | (377) |
Total benefits and expenses | (406) | (377) |
Income tax expense (benefit) | 0 | 0 |
Total net income (loss) | 0 | 0 |
Net income (loss) attributable to participating policyholders | 0 | 0 |
Net income (loss) attributable to non-controlling interests | 0 | |
Shareholders’ net income (loss) | 0 | 0 |
Annuities | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 3,945 | 3,917 |
Annuities | Consolidation adjustments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 0 | 0 |
Life insurance | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 11,395 | 10,925 |
Life insurance | Consolidation adjustments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 0 | 0 |
Health insurance | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 13,820 | 10,664 |
Health insurance | Consolidation adjustments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 0 | 0 |
Canada | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 16,710 | 15,711 |
Less: Ceded premiums | 1,589 | 1,533 |
Net investment income (loss) | (4,864) | 3,069 |
Fee income | 1,610 | 1,611 |
Total revenue | 11,867 | 18,858 |
Total benefits and expenses | 10,344 | 16,651 |
Income tax expense (benefit) | 363 | 384 |
Total net income (loss) | 1,160 | 1,823 |
Net income (loss) attributable to participating policyholders | 160 | 265 |
Net income (loss) attributable to non-controlling interests | 0 | |
Shareholders’ net income (loss) | 1,000 | 1,558 |
Canada | Annuities | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 3,909 | 3,874 |
Canada | Life insurance | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 6,308 | 5,848 |
Canada | Health insurance | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 6,493 | 5,989 |
U.S. | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 8,814 | 6,076 |
Less: Ceded premiums | 505 | 705 |
Net investment income (loss) | (2,306) | 546 |
Fee income | 297 | 81 |
Total revenue | 6,300 | 5,998 |
Total benefits and expenses | 5,571 | 5,375 |
Income tax expense (benefit) | 143 | 124 |
Total net income (loss) | 586 | 499 |
Net income (loss) attributable to participating policyholders | 0 | 0 |
Net income (loss) attributable to non-controlling interests | 0 | |
Shareholders’ net income (loss) | 586 | 499 |
U.S. | Annuities | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 1 | 0 |
U.S. | Life insurance | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 1,515 | 1,452 |
U.S. | Health insurance | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 7,298 | 4,624 |
Asset Management | ||
Disclosure of operating segments [line items] | ||
Total revenue | 5,757 | 5,855 |
Asset Management | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 0 | 0 |
Less: Ceded premiums | 0 | 0 |
Net investment income (loss) | 28 | 20 |
Fee income | 5,729 | 5,835 |
Total revenue | 5,757 | 5,855 |
Total benefits and expenses | 4,215 | 4,591 |
Income tax expense (benefit) | 345 | 372 |
Total net income (loss) | 1,197 | 892 |
Net income (loss) attributable to participating policyholders | 0 | 0 |
Net income (loss) attributable to non-controlling interests | 56 | |
Shareholders’ net income (loss) | 1,141 | 892 |
Asset Management | Annuities | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 0 | 0 |
Asset Management | Life insurance | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 0 | 0 |
Asset Management | Health insurance | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 0 | 0 |
Asia | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 3,563 | 3,595 |
Less: Ceded premiums | 189 | 201 |
Net investment income (loss) | (3,242) | 1,060 |
Fee income | 620 | 642 |
Total revenue | 752 | 5,096 |
Total benefits and expenses | 218 | 3,838 |
Income tax expense (benefit) | 63 | 113 |
Total net income (loss) | 471 | 1,145 |
Net income (loss) attributable to participating policyholders | (44) | 70 |
Net income (loss) attributable to non-controlling interests | 0 | |
Shareholders’ net income (loss) | 515 | 1,075 |
Asia | Annuities | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 26 | 29 |
Asia | Life insurance | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 3,512 | 3,542 |
Asia | Health insurance | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 25 | 24 |
Corporate | ||
Disclosure of operating segments [line items] | ||
Total revenue | (948) | 258 |
Corporate | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 73 | 124 |
Less: Ceded premiums | 14 | 14 |
Net investment income (loss) | (1,113) | 37 |
Fee income | 106 | 111 |
Total revenue | (948) | 258 |
Total benefits and expenses | (543) | 513 |
Income tax expense (benefit) | (293) | (266) |
Total net income (loss) | (112) | 11 |
Net income (loss) attributable to participating policyholders | 0 | 0 |
Net income (loss) attributable to non-controlling interests | 0 | |
Shareholders’ net income (loss) | (112) | 11 |
Corporate | Annuities | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 9 | 14 |
Corporate | Life insurance | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 60 | 83 |
Corporate | Health insurance | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | $ 4 | $ 27 |
Segmented Information - Assets
Segmented Information - Assets and Liabilities by Segment (Details) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of operating segments [line items] | ||
Total general fund assets | $ 205,614 | $ 205,374 |
Investments for account of segregated fund holders | 125,292 | 139,996 |
Total general fund liabilities | 176,237 | 177,301 |
Consolidation adjustments | ||
Disclosure of operating segments [line items] | ||
Total general fund assets | (374) | (388) |
Investments for account of segregated fund holders | 0 | 0 |
Total general fund liabilities | (374) | (388) |
Canada | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Total general fund assets | 110,888 | 110,499 |
Investments for account of segregated fund holders | 109,058 | 121,146 |
Total general fund liabilities | 100,396 | 100,838 |
U.S. | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Total general fund assets | 37,282 | 33,391 |
Investments for account of segregated fund holders | 421 | 519 |
Total general fund liabilities | 30,190 | 29,553 |
Asset Management | ||
Disclosure of operating segments [line items] | ||
Total general fund assets | 11,702 | 10,024 |
Investments for account of segregated fund holders | 0 | 0 |
Asset Management | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Total general fund assets | 11,702 | 10,024 |
Investments for account of segregated fund holders | 0 | 0 |
Total general fund liabilities | 9,474 | 8,010 |
Asia | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Total general fund assets | 37,072 | 37,661 |
Investments for account of segregated fund holders | 7,111 | 7,609 |
Total general fund liabilities | 29,662 | 30,884 |
Corporate | ||
Disclosure of operating segments [line items] | ||
Total general fund assets | 9,044 | 14,187 |
Investments for account of segregated fund holders | 8,702 | 10,722 |
Corporate | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Total general fund assets | 9,044 | 14,187 |
Investments for account of segregated fund holders | 8,702 | 10,722 |
Total general fund liabilities | $ 6,889 | $ 8,404 |
Segmented Information - Segment
Segmented Information - Segment Results by Geographical Area (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of operating segments [line items] | ||
Revenue | $ 23,322 | $ 35,688 |
Asset Management | ||
Disclosure of operating segments [line items] | ||
Revenue | 5,757 | 5,855 |
Asset Management | United States | ||
Disclosure of operating segments [line items] | ||
Revenue | 5,173 | 5,299 |
Asset Management | United Kingdom | ||
Disclosure of operating segments [line items] | ||
Revenue | 288 | 289 |
Asset Management | Canada | ||
Disclosure of operating segments [line items] | ||
Revenue | 251 | 233 |
Asset Management | Other countries | ||
Disclosure of operating segments [line items] | ||
Revenue | 45 | 34 |
Corporate | ||
Disclosure of operating segments [line items] | ||
Revenue | (948) | 258 |
Corporate | United States | ||
Disclosure of operating segments [line items] | ||
Revenue | 61 | 112 |
Corporate | United Kingdom | ||
Disclosure of operating segments [line items] | ||
Revenue | (1,014) | 74 |
Corporate | Canada | ||
Disclosure of operating segments [line items] | ||
Revenue | 9 | 75 |
Corporate | Other countries | ||
Disclosure of operating segments [line items] | ||
Revenue | $ (4) | $ (3) |
Segmented Information - Segme_2
Segmented Information - Segment Assets and Liabilities by Geographical Area (Details) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of operating segments [line items] | ||
Total general fund assets | $ 205,614 | $ 205,374 |
Investments for account of segregated fund holders | 125,292 | 139,996 |
Asset Management | ||
Disclosure of operating segments [line items] | ||
Total general fund assets | 11,702 | 10,024 |
Investments for account of segregated fund holders | 0 | 0 |
Asset Management | United States | ||
Disclosure of operating segments [line items] | ||
Total general fund assets | 9,933 | 8,203 |
Asset Management | United Kingdom | ||
Disclosure of operating segments [line items] | ||
Total general fund assets | 940 | 1,064 |
Investments for account of segregated fund holders | 0 | 0 |
Asset Management | Canada | ||
Disclosure of operating segments [line items] | ||
Total general fund assets | 581 | 582 |
Asset Management | Other countries | ||
Disclosure of operating segments [line items] | ||
Total general fund assets | 248 | 175 |
Corporate | ||
Disclosure of operating segments [line items] | ||
Total general fund assets | 9,044 | 14,187 |
Investments for account of segregated fund holders | 8,702 | 10,722 |
Corporate | United States | ||
Disclosure of operating segments [line items] | ||
Total general fund assets | 1,536 | 2,570 |
Corporate | United Kingdom | ||
Disclosure of operating segments [line items] | ||
Total general fund assets | 4,827 | 6,892 |
Investments for account of segregated fund holders | 8,702 | 10,722 |
Corporate | Canada | ||
Disclosure of operating segments [line items] | ||
Total general fund assets | 2,500 | 4,533 |
Corporate | Other countries | ||
Disclosure of operating segments [line items] | ||
Total general fund assets | $ 181 | $ 192 |
Total Invested Assets and Rel_3
Total Invested Assets and Related Net Investment Income - Carrying Value and Fair Value of Financial Assets and Other Financial Liabilities (Details) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of fair value measurement of assets [line items] | ||
Carrying value | $ 165,557 | $ 173,735 |
Fair value | 160,982 | 177,789 |
Invested assets | 177,292 | 184,522 |
Investment properties | 10,102 | 9,109 |
Other invested assets - non-financial assets | 1,633 | 1,678 |
Cash, cash equivalents and short-term securities | ||
Disclosure of fair value measurement of assets [line items] | ||
Carrying value | 11,219 | 12,278 |
Fair value | 11,219 | 12,278 |
Debt securities | ||
Disclosure of fair value measurement of assets [line items] | ||
Carrying value | 75,902 | 88,727 |
Debt securities | Fair value through profit or loss | ||
Disclosure of fair value measurement of assets [line items] | ||
Carrying value | 62,757 | 75,998 |
Fair value | 62,757 | 75,998 |
Debt securities | Available- for-sale | ||
Disclosure of fair value measurement of assets [line items] | ||
Carrying value | 13,145 | 12,729 |
Fair value | 13,145 | 12,729 |
Equity securities | ||
Disclosure of fair value measurement of assets [line items] | ||
Carrying value | 7,148 | 9,113 |
Equity securities | Fair value through profit or loss | ||
Disclosure of fair value measurement of assets [line items] | ||
Carrying value | 6,824 | 7,538 |
Fair value | 6,824 | 7,538 |
Equity securities | Available- for-sale | ||
Disclosure of fair value measurement of assets [line items] | ||
Carrying value | 324 | 1,575 |
Fair value | 324 | 1,575 |
Mortgages and loans | ||
Disclosure of fair value measurement of assets [line items] | ||
Carrying value | 56,261 | 51,692 |
Fair value | 51,850 | 55,756 |
Derivative assets | ||
Disclosure of fair value measurement of assets [line items] | ||
Carrying value | 2,095 | 1,583 |
Fair value | 2,095 | 1,583 |
Other invested assets | Fair value through profit or loss | ||
Disclosure of fair value measurement of assets [line items] | ||
Carrying value | 5,542 | 4,435 |
Fair value | 5,542 | 4,435 |
Other invested assets | Available- for-sale | ||
Disclosure of fair value measurement of assets [line items] | ||
Carrying value | 996 | 781 |
Fair value | 996 | 781 |
Other invested assets - Collateralized Loan Obligations | ||
Disclosure of fair value measurement of assets [line items] | ||
Carrying value | 3,044 | 1,865 |
Fair value | 2,880 | 1,855 |
Policy loans | ||
Disclosure of fair value measurement of assets [line items] | ||
Carrying value | 3,350 | 3,261 |
Fair value | 3,350 | 3,261 |
SPPI | Debt securities, available-for-sale | ||
Disclosure of fair value measurement of assets [line items] | ||
Carrying value | 12,829 | 12,604 |
SPPI | Mortgages and loans, supporting insurance contract liabilities | ||
Disclosure of fair value measurement of assets [line items] | ||
Carrying value | 48,614 | 51,249 |
SPPI | Mortgages and loans, not supporting insurance contract liabilities | ||
Disclosure of fair value measurement of assets [line items] | ||
Carrying value | $ 3,229 | $ 4,499 |
Total Invested Assets and Rel_4
Total Invested Assets and Related Net Investment Income - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2022 CAD ($) dollarsPerSquareFoot | Dec. 31, 2021 CAD ($) | |
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | ||
Notional amount | $ 165,557,000,000 | $ 173,735,000,000 |
Other financial liabilities | 1,996,000,000 | 1,810,000,000 |
Derivative financial liabilities | 2,351,000,000 | 1,392,000,000 |
Obligations for securities borrowing | 73,000,000 | 51,000,000 |
Assets supporting CLOs | 3,044,000,000 | 1,865,000,000 |
Maximum contractual exposure to credit risk of loans or receivables | 159,000,000 | 104,000,000 |
Interest expense | 445,000,000 | 327,000,000 |
Net ineffectiveness on fair value hedges | 1,000,000 | 2,000,000 |
Fair value | $ 160,982,000,000 | $ 177,789,000,000 |
Repurchase agreement interest rate | 3.90% | 0.35% |
Carrying value of securities lent | $ 2,725,000,000 | $ 2,324,000,000 |
Forecast | ||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | ||
Reclassification expectation from AOCI to net income | 1,000,000 | 7,000,000 |
Cash collateral on securities lent | ||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | ||
Cash collateral | 215,000,000 | 51,000,000 |
Securitized mortgages | ||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | ||
Financial liabilities, at fair value | 2,018,000,000 | 2,043,000,000 |
Financial liabilities | $ 2,158,000,000 | 2,007,000,000 |
Bottom of range | ||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | ||
Repurchase agreement maturity period | 4 days | |
Top of range | ||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | ||
Repurchase agreement maturity period | 365 days | |
Weighted average | ||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | ||
Repurchase agreement maturity period | 110 days | |
Discounted cash flow | Investment property | ||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | ||
Expected return period | 10 years | |
Discounted cash flow | Bottom of range | ||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | ||
Rental growth rate (per annum) | 0% | |
Long-term vacancy rate | 2% | |
Discount rate | 5% | |
Terminal capitalization rate | 3.63% | |
Discounted cash flow | Top of range | ||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | ||
Rental growth rate (per annum) | 3% | |
Long-term vacancy rate | 10% | |
Discount rate | 9.50% | |
Terminal capitalization rate | 8% | |
Discounted cash flow | Retail and office properties | Bottom of range | ||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | ||
Estimated rental value (per square foot, per annum) | dollarsPerSquareFoot | 12 | |
Discounted cash flow | Retail and office properties | Top of range | ||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | ||
Estimated rental value (per square foot, per annum) | dollarsPerSquareFoot | 76 | |
Discounted cash flow | Industrial properties | Bottom of range | ||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | ||
Estimated rental value (per square foot, per annum) | dollarsPerSquareFoot | 3 | |
Discounted cash flow | Industrial properties | Top of range | ||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | ||
Estimated rental value (per square foot, per annum) | dollarsPerSquareFoot | 21.50 | |
Measured at fair value | ||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | ||
Derivative financial liabilities | $ 2,351,000,000 | 1,392,000,000 |
Level 3 | ||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | ||
Financial liabilities, at fair value | 1,890,000,000 | 1,865,000,000 |
Financial assets | Level 3 | ||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | ||
Notional amount | $ 7,169,000,000 | 12,268,000,000 |
Loans | Level 3 | ||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | ||
Risk-adjusted spreads | 10 years | |
Collateralized Loan Obligations | ||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | ||
Interest expense | $ 71,000,000 | 11,000,000 |
Mortgages | Level 3 | ||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | ||
Risk-adjusted spreads | 20 years | |
Securitized mortgages | ||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | ||
Notional amount | $ 1,926,000,000 | 1,856,000,000 |
Fair value | 1,793,000,000 | 1,882,000,000 |
Securities in Principal Reinvestment Account | ||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | ||
Notional amount | 244,000,000 | 164,000,000 |
Cash and cash equivalents in Principal Reinvestment Account | ||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | ||
Notional amount | 0 | 4,000,000 |
Transferred assets | ||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | ||
Fair value | 2,725,000,000 | 2,324,000,000 |
Securities lending | ||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | ||
Carrying value of securities lent | 2,202,000,000 | 2,257,000,000 |
Collateral associated with securities lending | ||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | ||
Carrying value of securities lent | 2,322,000,000 | 2,372,000,000 |
Fair value through profit or loss | Financial assets | Level 2 | ||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | ||
Notional amount | 44,681,000,000 | 43,488,000,000 |
Cash and Accounts Receivable | ||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | ||
Assets supporting CLOs | 292,000,000 | 319,000,000 |
Loans | ||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | ||
Assets supporting CLOs | $ 2,752,000,000 | $ 1,546,000,000 |
Total Invested Assets and Rel_5
Total Invested Assets and Related Net Investment Income - Assets and Liabilities Carried at Fair Value on a Recurring Basis by Hierarchy (Details) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | $ 330,906 | $ 345,370 | |
Liabilities | 301,529 | 317,297 | |
Notional amount | 165,557 | 173,735 | |
Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 238,296 | 266,022 | |
Liabilities | 2,434 | 1,452 | |
Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 40,936 | 48,891 | |
Liabilities | 10 | 9 | |
Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 180,455 | 203,386 | |
Liabilities | 2,414 | 1,434 | |
Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 16,905 | 13,745 | |
Liabilities | 10 | 9 | |
Notional amount | 16,905 | 13,745 | $ 11,231 |
Investment contract liabilities | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Liabilities | 10 | 9 | |
Investment contract liabilities | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Liabilities | 0 | 0 | |
Investment contract liabilities | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Liabilities | 0 | 0 | |
Investment contract liabilities | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Liabilities | 10 | 9 | |
Derivative liabilities | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Liabilities | 2,351 | 1,392 | |
Derivative liabilities | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Liabilities | 10 | 9 | |
Derivative liabilities | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Liabilities | 2,341 | 1,383 | |
Derivative liabilities | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Liabilities | 0 | 0 | |
Other liabilities | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Liabilities | 73 | 51 | |
Other liabilities | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Liabilities | 0 | 0 | |
Other liabilities | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Liabilities | 73 | 51 | |
Other liabilities | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Liabilities | 0 | 0 | |
Canadian federal government | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 5,611 | 7,101 | |
Canadian provincial and municipal government | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 13,665 | 17,079 | |
Corporate | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 41,310 | 47,566 | |
Debt securities | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 75,902 | 88,727 | |
Fair value through profit or loss | Canadian federal government | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 3,881 | 4,798 | |
Fair value through profit or loss | Canadian federal government | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 3,881 | 4,798 | |
Fair value through profit or loss | Canadian federal government | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 0 | 0 | |
Fair value through profit or loss | Canadian federal government | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 3,869 | 4,783 | |
Fair value through profit or loss | Canadian federal government | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 12 | 15 | |
Fair value through profit or loss | Canadian provincial and municipal government | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 12,638 | 15,930 | |
Fair value through profit or loss | Canadian provincial and municipal government | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 12,638 | 15,930 | |
Fair value through profit or loss | Canadian provincial and municipal government | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 0 | 0 | |
Fair value through profit or loss | Canadian provincial and municipal government | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 12,638 | 15,930 | |
Fair value through profit or loss | Canadian provincial and municipal government | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 0 | 0 | |
Fair value through profit or loss | U.S. government and agency | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 808 | 1,642 | |
Fair value through profit or loss | U.S. government and agency | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 699 | 1,503 | |
Fair value through profit or loss | U.S. government and agency | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 109 | 139 | |
Fair value through profit or loss | U.S. government and agency | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 0 | 0 | |
Fair value through profit or loss | Other foreign government | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 3,863 | 4,754 | |
Fair value through profit or loss | Other foreign government | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 0 | 0 | |
Fair value through profit or loss | Other foreign government | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 3,852 | 4,747 | |
Fair value through profit or loss | Other foreign government | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 11 | 7 | |
Fair value through profit or loss | Corporate | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 35,035 | 42,052 | |
Fair value through profit or loss | Corporate | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 35,035 | 42,052 | |
Fair value through profit or loss | Corporate | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 0 | 0 | |
Fair value through profit or loss | Corporate | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 34,747 | 41,914 | |
Fair value through profit or loss | Corporate | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 288 | 138 | |
Fair value through profit or loss | Commercial mortgage-backed securities | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 2,084 | 2,223 | |
Fair value through profit or loss | Commercial mortgage-backed securities | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 0 | 0 | |
Fair value through profit or loss | Commercial mortgage-backed securities | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 2,028 | 2,221 | |
Fair value through profit or loss | Commercial mortgage-backed securities | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 56 | 2 | |
Fair value through profit or loss | Residential mortgage-backed securities | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 2,226 | 2,565 | |
Fair value through profit or loss | Residential mortgage-backed securities | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 0 | 0 | |
Fair value through profit or loss | Residential mortgage-backed securities | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 2,226 | 2,565 | |
Fair value through profit or loss | Residential mortgage-backed securities | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 0 | 0 | |
Fair value through profit or loss | Collateralized debt obligations | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 538 | 351 | |
Fair value through profit or loss | Collateralized debt obligations | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 0 | 0 | |
Fair value through profit or loss | Collateralized debt obligations | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 538 | 351 | |
Fair value through profit or loss | Collateralized debt obligations | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 0 | 0 | |
Fair value through profit or loss | Other | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 1,684 | 1,683 | |
Fair value through profit or loss | Other | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 0 | 0 | |
Fair value through profit or loss | Other | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 1,654 | 1,683 | |
Fair value through profit or loss | Other | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 30 | 0 | |
Fair value through profit or loss | Debt securities | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 62,757 | 75,998 | |
Fair value through profit or loss | Debt securities | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 62,757 | 75,998 | |
Fair value through profit or loss | Debt securities | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 699 | 1,503 | |
Fair value through profit or loss | Debt securities | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 61,661 | 74,333 | |
Fair value through profit or loss | Debt securities | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 397 | 162 | |
Available- for-sale | Canadian federal government | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 1,730 | 2,303 | |
Available- for-sale | Canadian federal government | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 1,730 | 2,303 | |
Available- for-sale | Canadian federal government | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 0 | 0 | |
Available- for-sale | Canadian federal government | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 1,730 | 2,303 | |
Available- for-sale | Canadian federal government | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 0 | 0 | |
Available- for-sale | Canadian provincial and municipal government | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 1,027 | 1,149 | |
Available- for-sale | Canadian provincial and municipal government | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 1,027 | 1,149 | |
Available- for-sale | Canadian provincial and municipal government | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 0 | 0 | |
Available- for-sale | Canadian provincial and municipal government | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 1,027 | 1,149 | |
Available- for-sale | Canadian provincial and municipal government | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 0 | 0 | |
Available- for-sale | U.S. government and agency | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 729 | 771 | |
Available- for-sale | U.S. government and agency | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 723 | 770 | |
Available- for-sale | U.S. government and agency | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 6 | 1 | |
Available- for-sale | U.S. government and agency | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 0 | 0 | |
Available- for-sale | Other foreign government | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 761 | 757 | |
Available- for-sale | Other foreign government | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 0 | 0 | |
Available- for-sale | Other foreign government | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 761 | 756 | |
Available- for-sale | Other foreign government | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 0 | 1 | |
Available- for-sale | Corporate | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 6,275 | 5,514 | |
Available- for-sale | Corporate | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 6,275 | 5,514 | |
Available- for-sale | Corporate | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 0 | 0 | |
Available- for-sale | Corporate | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 6,234 | 5,473 | |
Available- for-sale | Corporate | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 41 | 41 | |
Available- for-sale | Commercial mortgage-backed securities | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 793 | 762 | |
Available- for-sale | Commercial mortgage-backed securities | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 0 | 0 | |
Available- for-sale | Commercial mortgage-backed securities | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 793 | 761 | |
Available- for-sale | Commercial mortgage-backed securities | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 0 | 1 | |
Available- for-sale | Residential mortgage-backed securities | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 819 | 522 | |
Available- for-sale | Residential mortgage-backed securities | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 0 | 0 | |
Available- for-sale | Residential mortgage-backed securities | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 819 | 522 | |
Available- for-sale | Residential mortgage-backed securities | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 0 | 0 | |
Available- for-sale | Collateralized debt obligations | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 508 | 505 | |
Available- for-sale | Collateralized debt obligations | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 0 | 0 | |
Available- for-sale | Collateralized debt obligations | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 508 | 505 | |
Available- for-sale | Collateralized debt obligations | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 0 | 0 | |
Available- for-sale | Other | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 503 | 446 | |
Available- for-sale | Other | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 0 | 0 | |
Available- for-sale | Other | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 495 | 446 | |
Available- for-sale | Other | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 8 | 0 | |
Available- for-sale | Debt securities | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 13,145 | 12,729 | |
Available- for-sale | Debt securities | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 13,145 | 12,729 | |
Available- for-sale | Debt securities | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 723 | 770 | |
Available- for-sale | Debt securities | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 12,373 | 11,916 | |
Available- for-sale | Debt securities | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Notional amount | 49 | 43 | |
Cash, cash equivalents and short-term securities | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 11,219 | 12,278 | |
Cash, cash equivalents and short-term securities | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 10,622 | 10,923 | |
Cash, cash equivalents and short-term securities | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 597 | 1,355 | |
Cash, cash equivalents and short-term securities | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 0 | 0 | |
Debt securities | Fair value through profit or loss | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 62,757 | 75,998 | |
Debt securities | Fair value through profit or loss | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 699 | 1,503 | |
Debt securities | Fair value through profit or loss | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 61,661 | 74,333 | |
Debt securities | Fair value through profit or loss | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 397 | 162 | |
Notional amount | 397 | 162 | 225 |
Debt securities | Available- for-sale | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 13,145 | 12,729 | |
Debt securities | Available- for-sale | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 723 | 770 | |
Debt securities | Available- for-sale | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 12,373 | 11,916 | |
Debt securities | Available- for-sale | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 49 | 43 | |
Notional amount | 49 | 43 | 67 |
Equity securities | Fair value through profit or loss | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 6,824 | 7,538 | |
Equity securities | Fair value through profit or loss | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 3,995 | 4,429 | |
Equity securities | Fair value through profit or loss | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 2,731 | 3,013 | |
Equity securities | Fair value through profit or loss | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 98 | 96 | |
Notional amount | 98 | 96 | 181 |
Equity securities | Available- for-sale | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 324 | 1,575 | |
Equity securities | Available- for-sale | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 138 | 1,414 | |
Equity securities | Available- for-sale | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 113 | 87 | |
Equity securities | Available- for-sale | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 73 | 74 | |
Notional amount | 73 | 74 | 47 |
Derivative assets | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 2,095 | 1,583 | |
Derivative assets | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 37 | 26 | |
Derivative assets | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 2,058 | 1,557 | |
Derivative assets | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 0 | 0 | |
Other invested assets | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 6,538 | 5,216 | |
Other invested assets | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 789 | 1,189 | |
Other invested assets | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 194 | 377 | |
Other invested assets | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 5,555 | 3,650 | |
Notional amount | 5,555 | 3,650 | 2,645 |
Investment properties | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 10,102 | 9,109 | |
Investment properties | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 0 | 0 | |
Investment properties | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 0 | 0 | |
Investment properties | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 10,102 | 9,109 | |
Notional amount | 10,102 | 9,109 | 7,516 |
Total invested assets measured at fair value | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 113,004 | 126,026 | |
Total invested assets measured at fair value | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 17,003 | 20,254 | |
Total invested assets measured at fair value | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 79,727 | 92,638 | |
Total invested assets measured at fair value | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 16,274 | 13,134 | |
Notional amount | 16,274 | 13,134 | 10,681 |
Investments for account of segregated fund holders | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 125,292 | 139,996 | |
Investments for account of segregated fund holders | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 23,933 | 28,637 | |
Investments for account of segregated fund holders | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 100,728 | 110,748 | |
Investments for account of segregated fund holders | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 631 | 611 | |
Notional amount | $ 631 | $ 611 | $ 550 |
Total Invested Assets and Rel_6
Total Invested Assets and Related Net Investment Income - Reconciliation of Assets and Liabilities Categorized in Level 3 (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Changes in fair value measurement, assets [abstract] | ||
Beginning balance | $ 173,735 | |
Ending balance | 165,557 | $ 173,735 |
Gains (losses) included in earnings relating to instruments still held at the reporting date | (17,759) | (1,785) |
Fair value changes on investment properties | 667 | 1,070 |
Recurring fair value measurement | Level 3 | ||
Changes in fair value measurement, assets [abstract] | ||
Beginning balance | 13,745 | 11,231 |
Included in net income | 890 | 1,456 |
Included in OCI | 8 | 45 |
Purchases | 2,988 | 1,960 |
Sales / Payments | (767) | (748) |
Settlements | (49) | (24) |
Transfers (out) of Level 3 | (123) | (140) |
Foreign currency translation | 213 | (35) |
Ending balance | 16,905 | 13,745 |
Gains (losses) included in earnings relating to instruments still held at the reporting date | 856 | 1,459 |
Recurring fair value measurement | Other invested assets | Level 3 | ||
Changes in fair value measurement, assets [abstract] | ||
Beginning balance | 3,650 | 2,645 |
Included in net income | 322 | 392 |
Included in OCI | 12 | 13 |
Purchases | 1,843 | 1,074 |
Sales / Payments | (313) | (469) |
Settlements | (47) | 0 |
Transfers (out) of Level 3 | 0 | 0 |
Foreign currency translation | 88 | (5) |
Ending balance | 5,555 | 3,650 |
Gains (losses) included in earnings relating to instruments still held at the reporting date | 295 | 382 |
Recurring fair value measurement | Investment properties | Level 3 | ||
Changes in fair value measurement, assets [abstract] | ||
Beginning balance | 9,109 | 7,516 |
Included in net income | 625 | 1,032 |
Included in OCI | 0 | 0 |
Purchases | 664 | 764 |
Sales / Payments | (430) | (197) |
Settlements | 0 | 0 |
Transfers (out) of Level 3 | 0 | 0 |
Foreign currency translation | 134 | (6) |
Ending balance | 10,102 | 9,109 |
Gains (losses) included in earnings relating to instruments still held at the reporting date | 612 | 1,038 |
Recurring fair value measurement | Total invested assets measured at fair value | Level 3 | ||
Changes in fair value measurement, assets [abstract] | ||
Beginning balance | 13,134 | 10,681 |
Included in net income | 922 | 1,433 |
Included in OCI | 8 | 45 |
Purchases | 2,910 | 1,895 |
Sales / Payments | (761) | (739) |
Settlements | (48) | (23) |
Transfers (out) of Level 3 | (123) | (140) |
Foreign currency translation | 232 | (18) |
Ending balance | 16,274 | 13,134 |
Gains (losses) included in earnings relating to instruments still held at the reporting date | 876 | 1,432 |
Recurring fair value measurement | Investments for account of segregated fund holders | Level 3 | ||
Changes in fair value measurement, assets [abstract] | ||
Beginning balance | 611 | 550 |
Included in net income | (32) | 23 |
Included in OCI | 0 | 0 |
Purchases | 78 | 65 |
Sales / Payments | (6) | (9) |
Settlements | (1) | (1) |
Transfers (out) of Level 3 | 0 | 0 |
Foreign currency translation | (19) | (17) |
Ending balance | 631 | 611 |
Gains (losses) included in earnings relating to instruments still held at the reporting date | (20) | 27 |
Fair value through profit or loss | Recurring fair value measurement | Debt securities | Level 3 | ||
Changes in fair value measurement, assets [abstract] | ||
Beginning balance | 162 | 225 |
Included in net income | (31) | (6) |
Included in OCI | 0 | 0 |
Purchases | 321 | 29 |
Sales / Payments | 0 | (9) |
Settlements | (1) | (15) |
Transfers (out) of Level 3 | (59) | (57) |
Foreign currency translation | 5 | (5) |
Ending balance | 397 | 162 |
Gains (losses) included in earnings relating to instruments still held at the reporting date | (31) | (4) |
Fair value through profit or loss | Recurring fair value measurement | Equity securities | Level 3 | ||
Changes in fair value measurement, assets [abstract] | ||
Beginning balance | 96 | 181 |
Included in net income | 0 | 10 |
Included in OCI | 0 | 0 |
Purchases | 6 | 8 |
Sales / Payments | (4) | (25) |
Settlements | 0 | (5) |
Transfers (out) of Level 3 | 0 | (73) |
Foreign currency translation | 0 | 0 |
Ending balance | 98 | 96 |
Gains (losses) included in earnings relating to instruments still held at the reporting date | 0 | 11 |
Available- for-sale | Recurring fair value measurement | Debt securities | Level 3 | ||
Changes in fair value measurement, assets [abstract] | ||
Beginning balance | 43 | 67 |
Included in net income | 1 | 0 |
Included in OCI | (4) | (1) |
Purchases | 75 | 5 |
Sales / Payments | (2) | (13) |
Settlements | 0 | (3) |
Transfers (out) of Level 3 | (64) | (10) |
Foreign currency translation | 0 | (2) |
Ending balance | 49 | 43 |
Gains (losses) included in earnings relating to instruments still held at the reporting date | 0 | 0 |
Available- for-sale | Recurring fair value measurement | Equity securities | Level 3 | ||
Changes in fair value measurement, assets [abstract] | ||
Beginning balance | 74 | 47 |
Included in net income | 5 | 5 |
Included in OCI | 0 | 33 |
Purchases | 1 | 15 |
Sales / Payments | (12) | (26) |
Settlements | 0 | 0 |
Transfers (out) of Level 3 | 0 | 0 |
Foreign currency translation | 5 | 0 |
Ending balance | 73 | 74 |
Gains (losses) included in earnings relating to instruments still held at the reporting date | 0 | 5 |
Leasing commissions and tenant inducements | ||
Changes in fair value measurement, assets [abstract] | ||
Fair value changes on investment properties | $ 42 | $ 38 |
Total Invested Assets and Rel_7
Total Invested Assets and Related Net Investment Income - Interest and Other Investment Income (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value Measurement [Abstract] | ||
Cash, cash equivalents and short-term securities | $ 166 | $ 25 |
Debt securities - fair value through profit or loss | 2,596 | 2,429 |
Debt securities - available-for-sale | 341 | 256 |
Mortgages and loans | 2,234 | 2,117 |
Derivative investments | 115 | 107 |
Policy loans | 167 | 160 |
Total interest income | 5,619 | 5,094 |
Equity securities - dividends on fair value through profit or loss | 236 | 209 |
Equity securities - dividends on available-for-sale | 8 | 5 |
Investment properties rental income | 593 | 543 |
Investment properties expenses | (248) | (235) |
Other income | 235 | 922 |
Investment expenses and taxes | (291) | (266) |
Total interest and other investment income | $ 6,152 | $ 6,272 |
Total Invested Assets and Rel_8
Total Invested Assets and Related Net Investment Income - Changes in Asset Fair Value and Currency Change (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of fair value measurement of assets [line items] | ||
Total change in fair value through profit or loss assets and liabilities | $ (19,061) | $ (2,437) |
Fair value changes on investment properties | 667 | 1,070 |
Foreign exchange gains (losses) | 535 | (418) |
Realized gains (losses) on property and equipment | 100 | 0 |
Fair value and foreign currency changes on assets and liabilities | (17,759) | (1,785) |
Wellesley Office | ||
Disclosure of fair value measurement of assets [line items] | ||
Realized gains (losses) on property and equipment | 100 | 0 |
Other liabilities | ||
Disclosure of fair value measurement of assets [line items] | ||
Total change in fair value through profit or loss assets and liabilities | 15 | (2) |
Cash, cash equivalents and short-term securities | ||
Disclosure of fair value measurement of assets [line items] | ||
Total change in fair value through profit or loss assets and liabilities | 4 | (3) |
Debt securities | ||
Disclosure of fair value measurement of assets [line items] | ||
Total change in fair value through profit or loss assets and liabilities | (15,959) | (3,892) |
Equity securities | ||
Disclosure of fair value measurement of assets [line items] | ||
Total change in fair value through profit or loss assets and liabilities | (1,125) | 825 |
Derivative assets | ||
Disclosure of fair value measurement of assets [line items] | ||
Total change in fair value through profit or loss assets and liabilities | (2,148) | 191 |
Other invested assets | ||
Disclosure of fair value measurement of assets [line items] | ||
Total change in fair value through profit or loss assets and liabilities | $ 152 | $ 444 |
Total Invested Assets and Rel_9
Total Invested Assets and Related Net Investment Income - Cash, Cash Equivalents and Short-term Securities (Details) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Measurement [Abstract] | ||
Cash | $ 3,068 | $ 2,297 |
Cash equivalents | 6,310 | 5,529 |
Short-term securities | 1,841 | 4,452 |
Cash, cash equivalents and short-term securities | 11,219 | 12,278 |
Less: Bank overdraft, recorded in Other liabilities | 6 | 133 |
Net cash, cash equivalents and short-term securities | $ 11,213 | $ 12,145 |
Total Invested Assets and Re_10
Total Invested Assets and Related Net Investment Income - Fair Values of Derivative Financial Instruments by Major Class (Details) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of financial assets [line items] | ||
Fair value | $ 160,982 | $ 177,789 |
Interest rate contracts | ||
Disclosure of financial assets [line items] | ||
Liabilities | (1,138) | (366) |
Foreign exchange contracts | ||
Disclosure of financial assets [line items] | ||
Liabilities | (1,203) | (1,018) |
Other contracts | ||
Disclosure of financial assets [line items] | ||
Liabilities | (10) | (8) |
Derivatives | ||
Disclosure of financial assets [line items] | ||
Liabilities | (2,351) | (1,392) |
Interest rate contracts | ||
Disclosure of financial assets [line items] | ||
Fair value | 704 | 942 |
Foreign exchange contracts | ||
Disclosure of financial assets [line items] | ||
Fair value | 1,300 | 527 |
Other contracts | ||
Disclosure of financial assets [line items] | ||
Fair value | 91 | 114 |
Derivatives | ||
Disclosure of financial assets [line items] | ||
Fair value | $ 2,095 | $ 1,583 |
Total Invested Assets and Re_11
Total Invested Assets and Related Net Investment Income - Fair Values of Derivative Financial Instruments by Type of Hedge (Details) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of detailed information about financial instruments [line items] | ||
Fair value | $ 160,982 | $ 177,789 |
Derivative investments | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total notional amount | 68,417 | 64,761 |
Fair value | 2,077 | 1,536 |
Liabilities | (2,330) | (1,390) |
Fair value hedges | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total notional amount | 59 | 414 |
Fair value | 0 | 1 |
Liabilities | (1) | (2) |
Cash flow hedges | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total notional amount | 1,292 | 791 |
Fair value | 18 | 46 |
Liabilities | (20) | 0 |
Derivatives | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total notional amount | 69,768 | 65,966 |
Fair value | 2,095 | 1,583 |
Liabilities | $ (2,351) | $ (1,392) |
Total Invested Assets and Re_12
Total Invested Assets and Related Net Investment Income - Hedge Ineffectiveness (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value Measurement [Abstract] | ||
Gains (losses) on the hedged items attributable to the hedged risk | $ (2) | $ (6) |
Gains (losses) on the hedging derivatives | 3 | 8 |
Net ineffectiveness on fair value hedges | $ 1 | $ 2 |
Financial Instrument Risk Man_3
Financial Instrument Risk Management - Maximum Exposure to Credit Risk (Details) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Credit risk | Loans | ||
Disclosure of credit risk exposure [line items] | ||
Loan commitments | $ 2,217 | $ 2,402 |
Financial Instrument Risk Man_4
Financial Instrument Risk Management - Right of Offset and Collateral (Details) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative liabilities | ||
Disclosure of offsetting of financial liabilities [abstract] | ||
Financial liabilities presented in the Consolidated Statements of Financial Position | $ (2,351) | $ (1,392) |
Financial instruments subject to master netting or similar agreements | 1,088 | 828 |
Financial collateral pledged | 1,136 | 550 |
Net financial liabilities | (127) | (14) |
Financial assets pledged as collateral | 2,068 | 1,616 |
Repurchase agreements | ||
Disclosure of offsetting of financial liabilities [abstract] | ||
Financial liabilities presented in the Consolidated Statements of Financial Position | (2,725) | (2,324) |
Financial instruments subject to master netting or similar agreements | 14 | 0 |
Financial collateral pledged | 2,711 | 2,324 |
Net financial liabilities | 0 | 0 |
Financial assets pledged as collateral | 2,725 | 2,324 |
Cash collateral on securities lent | ||
Disclosure of offsetting of financial liabilities [abstract] | ||
Financial liabilities presented in the Consolidated Statements of Financial Position | (215) | (51) |
Financial instruments subject to master netting or similar agreements | 0 | 0 |
Financial collateral pledged | 203 | 48 |
Net financial liabilities | (12) | (3) |
Obligations for securities borrowing | ||
Disclosure of offsetting of financial liabilities [abstract] | ||
Financial liabilities presented in the Consolidated Statements of Financial Position | (73) | (51) |
Financial instruments subject to master netting or similar agreements | 0 | 0 |
Financial collateral pledged | 73 | 51 |
Net financial liabilities | 0 | 0 |
Derivative assets | ||
Disclosure of offsetting of financial assets [line items] | ||
Financial assets presented in the Consolidated Statements of Financial Position | 2,095 | 1,583 |
Financial instruments subject to master netting or similar agreements | (1,088) | (828) |
Financial collateral received | (923) | (558) |
Net financial assets | 84 | 197 |
Disclosure of offsetting of financial liabilities [abstract] | ||
Financial assets received as collateral | 1,061 | 678 |
Reverse repurchase agreements | ||
Disclosure of offsetting of financial assets [line items] | ||
Financial assets presented in the Consolidated Statements of Financial Position | 14 | 0 |
Financial instruments subject to master netting or similar agreements | (14) | 0 |
Financial collateral received | 0 | 0 |
Net financial assets | 0 | 0 |
Disclosure of offsetting of financial liabilities [abstract] | ||
Financial assets received as collateral | 14 | 0 |
Financial assets | ||
Disclosure of offsetting of financial assets [line items] | ||
Financial assets presented in the Consolidated Statements of Financial Position | 2,109 | 1,583 |
Financial instruments subject to master netting or similar agreements | (1,102) | (828) |
Financial collateral received | (923) | (558) |
Net financial assets | 84 | 197 |
Financial liabilities | ||
Disclosure of offsetting of financial liabilities [abstract] | ||
Financial liabilities presented in the Consolidated Statements of Financial Position | (5,364) | (3,818) |
Financial instruments subject to master netting or similar agreements | 1,102 | 828 |
Financial collateral pledged | 4,123 | 2,973 |
Net financial liabilities | $ (139) | $ (17) |
Financial Instrument Risk Man_5
Financial Instrument Risk Management - Debt Securities by Geographic Location (Details) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of geographical areas [line items] | ||
Carrying value | $ 165,557 | $ 173,735 |
Debt securities | ||
Disclosure of geographical areas [line items] | ||
Carrying value | 75,902 | 88,727 |
Debt securities | Canada | ||
Disclosure of geographical areas [line items] | ||
Carrying value | 32,677 | 38,163 |
Debt securities | United States | ||
Disclosure of geographical areas [line items] | ||
Carrying value | 26,470 | 31,230 |
Debt securities | United Kingdom | ||
Disclosure of geographical areas [line items] | ||
Carrying value | 3,497 | 4,758 |
Debt securities | Other | ||
Disclosure of geographical areas [line items] | ||
Carrying value | 13,258 | 14,576 |
Fair value through profit or loss | Debt securities | ||
Disclosure of geographical areas [line items] | ||
Carrying value | 62,757 | 75,998 |
Fair value through profit or loss | Debt securities | Canada | ||
Disclosure of geographical areas [line items] | ||
Carrying value | 27,816 | 33,028 |
Fair value through profit or loss | Debt securities | United States | ||
Disclosure of geographical areas [line items] | ||
Carrying value | 21,412 | 26,678 |
Fair value through profit or loss | Debt securities | United Kingdom | ||
Disclosure of geographical areas [line items] | ||
Carrying value | 2,914 | 4,196 |
Fair value through profit or loss | Debt securities | Other | ||
Disclosure of geographical areas [line items] | ||
Carrying value | 10,615 | 12,096 |
Available- for-sale | Debt securities | ||
Disclosure of geographical areas [line items] | ||
Carrying value | 13,145 | 12,729 |
Available- for-sale | Debt securities | Canada | ||
Disclosure of geographical areas [line items] | ||
Carrying value | 4,861 | 5,135 |
Available- for-sale | Debt securities | United States | ||
Disclosure of geographical areas [line items] | ||
Carrying value | 5,058 | 4,552 |
Available- for-sale | Debt securities | United Kingdom | ||
Disclosure of geographical areas [line items] | ||
Carrying value | 583 | 562 |
Available- for-sale | Debt securities | Other | ||
Disclosure of geographical areas [line items] | ||
Carrying value | $ 2,643 | $ 2,480 |
Financial Instrument Risk Man_6
Financial Instrument Risk Management - Debt Securities by Issuer and Industry Sector (Details) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of financial assets [line items] | ||
Notional amount | $ 165,557 | $ 173,735 |
Total government issued or guaranteed debt securities | ||
Disclosure of financial assets [line items] | ||
Notional amount | 25,437 | 32,104 |
Total government issued or guaranteed debt securities | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Notional amount | 21,190 | 27,124 |
Total government issued or guaranteed debt securities | Available- for-sale | ||
Disclosure of financial assets [line items] | ||
Notional amount | 4,247 | 4,980 |
Canadian federal government | ||
Disclosure of financial assets [line items] | ||
Notional amount | 5,611 | 7,101 |
Canadian federal government | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Notional amount | 3,881 | 4,798 |
Canadian federal government | Available- for-sale | ||
Disclosure of financial assets [line items] | ||
Notional amount | 1,730 | 2,303 |
Canadian provincial and municipal government | ||
Disclosure of financial assets [line items] | ||
Notional amount | 13,665 | 17,079 |
Canadian provincial and municipal government | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Notional amount | 12,638 | 15,930 |
Canadian provincial and municipal government | Available- for-sale | ||
Disclosure of financial assets [line items] | ||
Notional amount | 1,027 | 1,149 |
U.S. government and agency | ||
Disclosure of financial assets [line items] | ||
Notional amount | 1,537 | 2,413 |
U.S. government and agency | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Notional amount | 808 | 1,642 |
U.S. government and agency | Available- for-sale | ||
Disclosure of financial assets [line items] | ||
Notional amount | 729 | 771 |
Other foreign government | ||
Disclosure of financial assets [line items] | ||
Notional amount | 4,624 | 5,511 |
Other foreign government | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Notional amount | 3,863 | 4,754 |
Other foreign government | Available- for-sale | ||
Disclosure of financial assets [line items] | ||
Notional amount | 761 | 757 |
Corporate debt securities | ||
Disclosure of financial assets [line items] | ||
Notional amount | 41,310 | 47,566 |
Corporate debt securities | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Notional amount | 35,035 | 42,052 |
Corporate debt securities | Available- for-sale | ||
Disclosure of financial assets [line items] | ||
Notional amount | 6,275 | 5,514 |
Asset-backed securities | ||
Disclosure of financial assets [line items] | ||
Notional amount | 9,155 | 9,057 |
Asset-backed securities | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Notional amount | 6,532 | 6,822 |
Asset-backed securities | Available- for-sale | ||
Disclosure of financial assets [line items] | ||
Notional amount | 2,623 | 2,235 |
Debt securities | ||
Disclosure of financial assets [line items] | ||
Notional amount | 75,902 | 88,727 |
Debt securities | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Notional amount | 62,757 | 75,998 |
Debt securities | Available- for-sale | ||
Disclosure of financial assets [line items] | ||
Notional amount | 13,145 | 12,729 |
Financials | Corporate debt securities | ||
Disclosure of financial assets [line items] | ||
Notional amount | 11,355 | 11,948 |
Financials | Corporate debt securities | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Notional amount | 9,377 | 10,258 |
Financials | Corporate debt securities | Available- for-sale | ||
Disclosure of financial assets [line items] | ||
Notional amount | 1,978 | 1,690 |
Utilities | Corporate debt securities | ||
Disclosure of financial assets [line items] | ||
Notional amount | 6,676 | 8,192 |
Utilities | Corporate debt securities | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Notional amount | 5,979 | 7,414 |
Utilities | Corporate debt securities | Available- for-sale | ||
Disclosure of financial assets [line items] | ||
Notional amount | 697 | 778 |
Industrials | Corporate debt securities | ||
Disclosure of financial assets [line items] | ||
Notional amount | 5,575 | 6,596 |
Industrials | Corporate debt securities | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Notional amount | 4,762 | 5,791 |
Industrials | Corporate debt securities | Available- for-sale | ||
Disclosure of financial assets [line items] | ||
Notional amount | 813 | 805 |
Energy | Corporate debt securities | ||
Disclosure of financial assets [line items] | ||
Notional amount | 3,342 | 4,279 |
Energy | Corporate debt securities | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Notional amount | 3,069 | 3,992 |
Energy | Corporate debt securities | Available- for-sale | ||
Disclosure of financial assets [line items] | ||
Notional amount | 273 | 287 |
Communication services | Corporate debt securities | ||
Disclosure of financial assets [line items] | ||
Notional amount | 3,329 | 3,886 |
Communication services | Corporate debt securities | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Notional amount | 2,937 | 3,534 |
Communication services | Corporate debt securities | Available- for-sale | ||
Disclosure of financial assets [line items] | ||
Notional amount | 392 | 352 |
Real estate | Corporate debt securities | ||
Disclosure of financial assets [line items] | ||
Notional amount | 2,506 | 2,688 |
Real estate | Corporate debt securities | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Notional amount | 1,920 | 2,334 |
Real estate | Corporate debt securities | Available- for-sale | ||
Disclosure of financial assets [line items] | ||
Notional amount | 586 | 354 |
Health care | Corporate debt securities | ||
Disclosure of financial assets [line items] | ||
Notional amount | 2,034 | 2,427 |
Health care | Corporate debt securities | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Notional amount | 1,682 | 2,081 |
Health care | Corporate debt securities | Available- for-sale | ||
Disclosure of financial assets [line items] | ||
Notional amount | 352 | 346 |
Consumer staples | Corporate debt securities | ||
Disclosure of financial assets [line items] | ||
Notional amount | 1,978 | 2,278 |
Consumer staples | Corporate debt securities | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Notional amount | 1,677 | 2,047 |
Consumer staples | Corporate debt securities | Available- for-sale | ||
Disclosure of financial assets [line items] | ||
Notional amount | 301 | 231 |
Consumer discretionary | Corporate debt securities | ||
Disclosure of financial assets [line items] | ||
Notional amount | 1,836 | 2,120 |
Consumer discretionary | Corporate debt securities | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Notional amount | 1,395 | 1,814 |
Consumer discretionary | Corporate debt securities | Available- for-sale | ||
Disclosure of financial assets [line items] | ||
Notional amount | 441 | 306 |
Information technology | Corporate debt securities | ||
Disclosure of financial assets [line items] | ||
Notional amount | 1,384 | 1,635 |
Information technology | Corporate debt securities | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Notional amount | 1,130 | 1,426 |
Information technology | Corporate debt securities | Available- for-sale | ||
Disclosure of financial assets [line items] | ||
Notional amount | 254 | 209 |
Materials | Corporate debt securities | ||
Disclosure of financial assets [line items] | ||
Notional amount | 1,295 | 1,517 |
Materials | Corporate debt securities | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Notional amount | 1,107 | 1,361 |
Materials | Corporate debt securities | Available- for-sale | ||
Disclosure of financial assets [line items] | ||
Notional amount | $ 188 | $ 156 |
Financial Instrument Risk Man_7
Financial Instrument Risk Management - Mortgages and Loans by Geographic Location and Type (Details) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | $ 165,557 | $ 173,735 |
Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | 15,360 | 15,485 |
Loans | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | 40,901 | 36,207 |
Total | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | 56,261 | 51,692 |
Retail | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | 3,001 | 3,388 |
Office | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | 3,284 | 3,531 |
Multi-family residential | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | 5,270 | 5,727 |
Industrial and land | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | 2,883 | 2,035 |
Other | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | 922 | 804 |
Canada | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | 9,892 | 9,569 |
Canada | Mortgages | Canada Mortgage And Housing Corporation | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | 4,174 | 4,218 |
Canada | Loans | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | 13,143 | 12,885 |
Canada | Total | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | 23,035 | 22,454 |
Canada | Retail | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | 1,546 | 1,765 |
Canada | Office | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | 1,762 | 1,892 |
Canada | Multi-family residential | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | 4,025 | 4,138 |
Canada | Industrial and land | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | 1,779 | 1,094 |
Canada | Other | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | 780 | 680 |
United States | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | 5,439 | 5,907 |
United States | Loans | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | 17,238 | 14,596 |
United States | Total | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | 22,677 | 20,503 |
United States | Retail | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | 1,455 | 1,623 |
United States | Office | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | 1,522 | 1,639 |
United States | Multi-family residential | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | 1,245 | 1,589 |
United States | Industrial and land | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | 1,104 | 941 |
United States | Other | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | 113 | 115 |
United Kingdom | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | 29 | 9 |
United Kingdom | Loans | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | 4,923 | 4,111 |
United Kingdom | Total | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | 4,952 | 4,120 |
United Kingdom | Retail | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | 0 | 0 |
United Kingdom | Office | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | 0 | 0 |
United Kingdom | Multi-family residential | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | 0 | 0 |
United Kingdom | Industrial and land | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | 0 | 0 |
United Kingdom | Other | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | 29 | 9 |
Other | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | 0 | 0 |
Other | Loans | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | 5,597 | 4,615 |
Other | Total | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | 5,597 | 4,615 |
Other | Retail | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | 0 | 0 |
Other | Office | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | 0 | 0 |
Other | Multi-family residential | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | 0 | 0 |
Other | Industrial and land | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | 0 | 0 |
Other | Other | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Carrying value | $ 0 | $ 0 |
Financial Instrument Risk Man_8
Financial Instrument Risk Management - Contractual and Scheduled Maturities of Debt Securities, Mortgages, and Loans (Details) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Carrying value | $ 165,557 | $ 173,735 |
Debt securities | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Carrying value | 75,902 | 88,727 |
Debt securities | Due in 1 year or less | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Carrying value | 3,760 | 3,878 |
Debt securities | Due in years 2-5 | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Carrying value | 16,891 | 15,446 |
Debt securities | Due in years 6-10 | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Carrying value | 12,858 | 14,678 |
Debt securities | Due after 10 years | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Carrying value | 42,393 | 54,725 |
Mortgages | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Carrying value | 15,360 | 15,485 |
Loans | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Carrying value | 40,901 | 36,207 |
Fair value through profit or loss | Debt securities | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Carrying value | 62,757 | 75,998 |
Fair value through profit or loss | Debt securities | Due in 1 year or less | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Carrying value | 2,426 | 2,505 |
Fair value through profit or loss | Debt securities | Due in years 2-5 | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Carrying value | 10,972 | 10,475 |
Fair value through profit or loss | Debt securities | Due in years 6-10 | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Carrying value | 9,889 | 11,328 |
Fair value through profit or loss | Debt securities | Due after 10 years | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Carrying value | 39,470 | 51,690 |
Available- for-sale | Debt securities | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Carrying value | 13,145 | 12,729 |
Available- for-sale | Debt securities | Due in 1 year or less | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Carrying value | 1,334 | 1,373 |
Available- for-sale | Debt securities | Due in years 2-5 | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Carrying value | 5,919 | 4,971 |
Available- for-sale | Debt securities | Due in years 6-10 | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Carrying value | 2,969 | 3,350 |
Available- for-sale | Debt securities | Due after 10 years | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Carrying value | 2,923 | 3,035 |
Gross carrying amount | Mortgages | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Carrying value | 15,440 | 15,565 |
Gross carrying amount | Mortgages | Due in 1 year or less | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Carrying value | 1,350 | 884 |
Gross carrying amount | Mortgages | Due in years 2-5 | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Carrying value | 6,312 | 6,172 |
Gross carrying amount | Mortgages | Due in years 6-10 | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Carrying value | 5,210 | 5,979 |
Gross carrying amount | Mortgages | Due after 10 years | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Carrying value | 2,568 | 2,530 |
Gross carrying amount | Loans | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Carrying value | 41,013 | 36,259 |
Gross carrying amount | Loans | Due in 1 year or less | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Carrying value | 2,893 | 1,772 |
Gross carrying amount | Loans | Due in years 2-5 | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Carrying value | 7,237 | 7,108 |
Gross carrying amount | Loans | Due in years 6-10 | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Carrying value | 8,726 | 7,393 |
Gross carrying amount | Loans | Due after 10 years | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Carrying value | $ 22,157 | $ 19,986 |
Financial Instrument Risk Man_9
Financial Instrument Risk Management - Notional Amount of Derivative Financial Instruments (Details) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | $ 165,557 | $ 173,735 |
Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 69,768 | 65,966 |
Swap contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 1,360 | 835 |
Over-the-counter interest rate contracts | Forward contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 7 | 100 |
Over-the-counter interest rate contracts | Interest rate swap contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 17,515 | 17,749 |
Over-the-counter interest rate contracts | Options purchased | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 4,845 | 5,849 |
Over-the-counter interest rate contracts | Options written | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 359 | 461 |
Over-the-counter foreign exchange contracts | Forward contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 17,243 | 13,921 |
Over-the-counter foreign exchange contracts | Foreign currency swap contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 21,542 | 19,873 |
Over-the-counter other contracts | Forward contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 313 | 317 |
Over-the-counter other contracts | Swap contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 441 | 446 |
Over-the-counter other contracts | Options purchased | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 338 | 279 |
Over-the-counter other contracts | Credit derivatives | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 1,360 | 835 |
Exchange-traded interest rate contracts | Futures contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 3,005 | 3,818 |
Exchange-traded equity contracts | Options purchased | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 267 | 213 |
Exchange-traded equity contracts | Options written | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 52 | 0 |
Exchange-traded equity contracts | Futures contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 2,481 | 2,105 |
Under 1 Year | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 27,849 | 21,123 |
Under 1 Year | Over-the-counter interest rate contracts | Forward contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 7 | 94 |
Under 1 Year | Over-the-counter interest rate contracts | Interest rate swap contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 1,193 | 1,273 |
Under 1 Year | Over-the-counter interest rate contracts | Options purchased | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 1,512 | 878 |
Under 1 Year | Over-the-counter interest rate contracts | Options written | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 135 | 0 |
Under 1 Year | Over-the-counter foreign exchange contracts | Forward contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 17,243 | 10,824 |
Under 1 Year | Over-the-counter foreign exchange contracts | Foreign currency swap contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 806 | 725 |
Under 1 Year | Over-the-counter other contracts | Forward contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 145 | 154 |
Under 1 Year | Over-the-counter other contracts | Swap contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 441 | 446 |
Under 1 Year | Over-the-counter other contracts | Options purchased | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 338 | 271 |
Under 1 Year | Over-the-counter other contracts | Credit derivatives | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 302 | 322 |
Under 1 Year | Exchange-traded interest rate contracts | Futures contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 3,005 | 3,818 |
Under 1 Year | Exchange-traded equity contracts | Options purchased | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 189 | 213 |
Under 1 Year | Exchange-traded equity contracts | Options written | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 52 | 0 |
Under 1 Year | Exchange-traded equity contracts | Futures contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 2,481 | 2,105 |
1 to 5 Years | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 10,295 | 13,633 |
1 to 5 Years | Over-the-counter interest rate contracts | Forward contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 0 | 6 |
1 to 5 Years | Over-the-counter interest rate contracts | Interest rate swap contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 4,089 | 3,434 |
1 to 5 Years | Over-the-counter interest rate contracts | Options purchased | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 2,080 | 3,297 |
1 to 5 Years | Over-the-counter interest rate contracts | Options written | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 224 | 461 |
1 to 5 Years | Over-the-counter foreign exchange contracts | Forward contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 0 | 3,097 |
1 to 5 Years | Over-the-counter foreign exchange contracts | Foreign currency swap contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 2,598 | 2,654 |
1 to 5 Years | Over-the-counter other contracts | Forward contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 168 | 163 |
1 to 5 Years | Over-the-counter other contracts | Swap contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 0 | 0 |
1 to 5 Years | Over-the-counter other contracts | Options purchased | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 0 | 8 |
1 to 5 Years | Over-the-counter other contracts | Credit derivatives | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 1,058 | 513 |
1 to 5 Years | Exchange-traded interest rate contracts | Futures contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 0 | 0 |
1 to 5 Years | Exchange-traded equity contracts | Options purchased | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 78 | 0 |
1 to 5 Years | Exchange-traded equity contracts | Options written | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 0 | 0 |
1 to 5 Years | Exchange-traded equity contracts | Futures contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 0 | 0 |
Over 5 Years | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 31,624 | 31,210 |
Over 5 Years | Over-the-counter interest rate contracts | Forward contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 0 | 0 |
Over 5 Years | Over-the-counter interest rate contracts | Interest rate swap contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 12,233 | 13,042 |
Over 5 Years | Over-the-counter interest rate contracts | Options purchased | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 1,253 | 1,674 |
Over 5 Years | Over-the-counter interest rate contracts | Options written | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 0 | 0 |
Over 5 Years | Over-the-counter foreign exchange contracts | Forward contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 0 | 0 |
Over 5 Years | Over-the-counter foreign exchange contracts | Foreign currency swap contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 18,138 | 16,494 |
Over 5 Years | Over-the-counter other contracts | Forward contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 0 | 0 |
Over 5 Years | Over-the-counter other contracts | Swap contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 0 | 0 |
Over 5 Years | Over-the-counter other contracts | Options purchased | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 0 | 0 |
Over 5 Years | Over-the-counter other contracts | Credit derivatives | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 0 | 0 |
Over 5 Years | Exchange-traded interest rate contracts | Futures contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 0 | 0 |
Over 5 Years | Exchange-traded equity contracts | Options purchased | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 0 | 0 |
Over 5 Years | Exchange-traded equity contracts | Options written | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 0 | 0 |
Over 5 Years | Exchange-traded equity contracts | Futures contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | $ 0 | $ 0 |
Financial Instrument Risk Ma_10
Financial Instrument Risk Management - Fair Value of Derivative Instruments (Details) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative assets | $ 2,095 | $ 1,583 |
Derivative liabilities | (2,351) | (1,392) |
Measured at fair value | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | (2,351) | (1,392) |
Measured at fair value | Under 1 Year | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | (379) | (97) |
Measured at fair value | 1 to 5 Years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | (196) | (184) |
Measured at fair value | Over 5 Years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | (1,776) | (1,111) |
Measured at fair value | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative assets | 2,095 | 1,583 |
Measured at fair value | Under 1 Year | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative assets | 167 | 139 |
Measured at fair value | 1 to 5 Years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative assets | 351 | 249 |
Measured at fair value | Over 5 Years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative assets | $ 1,577 | $ 1,195 |
Financial Instrument Risk Ma_11
Financial Instrument Risk Management - Narrative (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of financial assets [line items] | ||
Percent of debt security portfolio considered investment grade | 99% | 99% |
Available- for-sale | ||
Disclosure of financial assets [line items] | ||
Impairment loss on available-for-sale assets | $ 8 | $ 11 |
Reversal of impairment | $ 0 | $ 0 |
Financial Instrument Risk Ma_12
Financial Instrument Risk Management - Debt Securities by Credit Rating (Details) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of external credit grades [line items] | ||
Carrying value | $ 165,557 | $ 173,735 |
Credit risk | Gross exposure | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 6,241 | 5,431 |
Credit risk | AA | Gross exposure | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 2,409 | 2,170 |
Credit risk | A | Gross exposure | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 1,308 | 928 |
Credit risk | BBB | Gross exposure | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 133 | 139 |
Credit risk | B | Gross exposure | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 3 | 0 |
Debt securities | Credit risk | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 75,902 | 88,727 |
Debt securities | Credit risk | AAA | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 15,262 | 18,105 |
Debt securities | Credit risk | AA | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 11,310 | 13,012 |
Debt securities | Credit risk | A | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 27,696 | 33,266 |
Debt securities | Credit risk | BBB | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 20,668 | 23,194 |
Debt securities | Credit risk | BB and lower | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 966 | 1,150 |
Fair value through profit or loss | Debt securities | Credit risk | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 62,757 | 75,998 |
Fair value through profit or loss | Debt securities | Credit risk | AAA | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 10,400 | 12,811 |
Fair value through profit or loss | Debt securities | Credit risk | AA | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 9,545 | 11,510 |
Fair value through profit or loss | Debt securities | Credit risk | A | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 24,144 | 29,984 |
Fair value through profit or loss | Debt securities | Credit risk | BBB | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 17,947 | 20,710 |
Fair value through profit or loss | Debt securities | Credit risk | BB and lower | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 721 | 983 |
Available- for-sale | Debt securities | Credit risk | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 13,145 | 12,729 |
Available- for-sale | Debt securities | Credit risk | AAA | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 4,862 | 5,294 |
Available- for-sale | Debt securities | Credit risk | AA | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 1,765 | 1,502 |
Available- for-sale | Debt securities | Credit risk | A | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 3,552 | 3,282 |
Available- for-sale | Debt securities | Credit risk | BBB | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 2,721 | 2,484 |
Available- for-sale | Debt securities | Credit risk | BB and lower | ||
Disclosure of external credit grades [line items] | ||
Carrying value | $ 245 | $ 167 |
Financial Instrument Risk Ma_13
Financial Instrument Risk Management - Mortgages and Loans by Credit Rating (Details) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of external credit grades [line items] | ||
Carrying value | $ 165,557 | $ 173,735 |
Mortgages | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 15,360 | 15,485 |
Mortgages | Credit risk | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 15,360 | 15,485 |
Mortgages | Credit risk | Insured | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 4,174 | 4,218 |
Mortgages | Credit risk | AA | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 1,769 | 1,640 |
Mortgages | Credit risk | A | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 5,917 | 4,979 |
Mortgages | Credit risk | BBB | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 2,911 | 3,814 |
Mortgages | Credit risk | BB and lower | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 589 | 822 |
Mortgages | Credit risk | Impaired | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 0 | 12 |
Loans | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 40,901 | 36,207 |
Loans | Credit risk | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 40,901 | 36,207 |
Loans | Credit risk | AAA | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 274 | 192 |
Loans | Credit risk | AA | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 5,712 | 4,994 |
Loans | Credit risk | A | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 16,891 | 14,231 |
Loans | Credit risk | BBB | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 15,920 | 14,632 |
Loans | Credit risk | BB and lower | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 2,071 | 2,139 |
Loans | Credit risk | Impaired | ||
Disclosure of external credit grades [line items] | ||
Carrying value | $ 33 | $ 19 |
Financial Instrument Risk Ma_14
Financial Instrument Risk Management - Derivative Financial Instruments by Counterparty Credit Rating (Details) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of external credit grades [line items] | ||
Carrying value | $ 165,557 | $ 173,735 |
Derivative assets | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 2,095 | 1,583 |
Derivative assets | Over-the-counter derivative contracts | Credit risk | Gross positive replacement cost | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 2,057 | 1,556 |
Derivative assets | Over-the-counter derivative contracts | Credit risk | Gross positive replacement cost | AA | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 482 | 402 |
Derivative assets | Over-the-counter derivative contracts | Credit risk | Gross positive replacement cost | A | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 1,560 | 1,080 |
Derivative assets | Over-the-counter derivative contracts | Credit risk | Gross positive replacement cost | BBB | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 15 | 74 |
Derivative assets | Over-the-counter derivative contracts | Credit risk | Impact of master netting agreements | ||
Disclosure of external credit grades [line items] | ||
Carrying value | (1,088) | (828) |
Derivative assets | Over-the-counter derivative contracts | Credit risk | Impact of master netting agreements | AA | ||
Disclosure of external credit grades [line items] | ||
Carrying value | (254) | (219) |
Derivative assets | Over-the-counter derivative contracts | Credit risk | Impact of master netting agreements | A | ||
Disclosure of external credit grades [line items] | ||
Carrying value | (834) | (598) |
Derivative assets | Over-the-counter derivative contracts | Credit risk | Impact of master netting agreements | BBB | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 0 | (11) |
Derivative assets | Over-the-counter derivative contracts | Credit risk | Net replacement cost | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 969 | 728 |
Derivative assets | Over-the-counter derivative contracts | Credit risk | Net replacement cost | AA | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 228 | 183 |
Derivative assets | Over-the-counter derivative contracts | Credit risk | Net replacement cost | A | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 726 | 482 |
Derivative assets | Over-the-counter derivative contracts | Credit risk | Net replacement cost | BBB | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 15 | 63 |
Derivative assets | Exchange-traded derivative contracts | ||
Disclosure of external credit grades [line items] | ||
Carrying value | $ 38 | $ 27 |
Financial Instrument Risk Ma_15
Financial Instrument Risk Management - Credit Default Swaps by Underlying Financial Instrument Credit Rating (Details) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of external credit grades [line items] | ||
Notional amount | $ 165,557 | $ 173,735 |
Fair value | 160,982 | 177,789 |
Credit default swap contract | ||
Disclosure of external credit grades [line items] | ||
Notional amount | 1,360 | 835 |
Fair value | 16 | 14 |
Single Name Credit Default Swap Contract | Credit default swap contract | ||
Disclosure of external credit grades [line items] | ||
Notional amount | 1,360 | 835 |
Fair value | 16 | 14 |
Single Name Credit Default Swap Contract | AA | Credit default swap contract | ||
Disclosure of external credit grades [line items] | ||
Notional amount | 20 | 38 |
Fair value | 0 | 1 |
Single Name Credit Default Swap Contract | A | Credit default swap contract | ||
Disclosure of external credit grades [line items] | ||
Notional amount | 587 | 347 |
Fair value | 4 | 4 |
Single Name Credit Default Swap Contract | BBB | Credit default swap contract | ||
Disclosure of external credit grades [line items] | ||
Notional amount | 706 | 431 |
Fair value | 5 | 9 |
Single Name Credit Default Swap Contract | BB | Credit default swap contract | ||
Disclosure of external credit grades [line items] | ||
Notional amount | 47 | 19 |
Fair value | $ 7 | $ 0 |
Financial Instrument Risk Ma_16
Financial Instrument Risk Management - Reinsurance Counterparties Exposure by Credit Rating (Details) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of external credit grades [line items] | ||
Carrying value | $ 165,557 | $ 173,735 |
Total Reinsurance assets | 4,801 | 3,683 |
Credit risk | Gross exposure | ||
Disclosure of external credit grades [line items] | ||
Less: Negative reinsurance assets | 1,440 | 1,748 |
Total Reinsurance assets | 4,801 | 3,683 |
Credit risk | Gross exposure | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 6,241 | 5,431 |
Credit risk | Gross exposure | AA | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 2,409 | 2,170 |
Credit risk | Gross exposure | A | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 1,308 | 928 |
Credit risk | Gross exposure | BBB | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 133 | 139 |
Credit risk | Gross exposure | BB | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 2,046 | 1,861 |
Credit risk | Gross exposure | B | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 3 | 0 |
Credit risk | Gross exposure | CCC | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 237 | 197 |
Credit risk | Gross exposure | Not rated | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 105 | 136 |
Credit risk | Collateral | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 2,482 | 2,295 |
Credit risk | Collateral | AA | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 0 | 0 |
Credit risk | Collateral | A | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 30 | 28 |
Credit risk | Collateral | BBB | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 118 | 117 |
Credit risk | Collateral | BB | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 2,000 | 1,825 |
Credit risk | Collateral | B | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 0 | 0 |
Credit risk | Collateral | CCC | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 237 | 194 |
Credit risk | Collateral | Not rated | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 97 | 131 |
Credit risk | Net exposure | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 3,759 | 3,136 |
Credit risk | Net exposure | AA | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 2,409 | 2,170 |
Credit risk | Net exposure | A | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 1,278 | 900 |
Credit risk | Net exposure | BBB | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 15 | 22 |
Credit risk | Net exposure | BB | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 46 | 36 |
Credit risk | Net exposure | B | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 3 | 0 |
Credit risk | Net exposure | CCC | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Carrying value | 0 | 3 |
Credit risk | Net exposure | Not rated | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Carrying value | $ 8 | $ 5 |
Financial Instrument Risk Ma_17
Financial Instrument Risk Management - Past Due and Impaired Mortgages and Loans (Details) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of financial assets that are either past due or impaired [line items] | ||
Carrying value | $ 165,557 | $ 173,735 |
Mortgages | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Carrying value | 15,360 | 15,485 |
Mortgages | Gross carrying value | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Carrying value | 15,440 | 15,565 |
Mortgages | Allowance for losses | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Carrying value | 80 | 80 |
Mortgages | Not past due | Gross carrying value | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Carrying value | 15,360 | 15,473 |
Mortgages | Not past due | Allowance for losses | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Carrying value | 0 | 0 |
Mortgages | Impaired | Gross carrying value | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Carrying value | 80 | 92 |
Mortgages | Impaired | Allowance for losses | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Carrying value | 80 | 80 |
Loans | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Carrying value | 40,901 | 36,207 |
Loans | Gross carrying value | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Carrying value | 41,013 | 36,259 |
Loans | Allowance for losses | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Carrying value | 112 | 52 |
Loans | Not past due | Gross carrying value | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Carrying value | 40,868 | 36,188 |
Loans | Not past due | Allowance for losses | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Carrying value | 0 | 0 |
Loans | Impaired | Gross carrying value | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Carrying value | 145 | 71 |
Loans | Impaired | Allowance for losses | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Carrying value | 112 | 52 |
Total | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Carrying value | 56,261 | 51,692 |
Total | Gross carrying value | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Carrying value | 56,453 | 51,824 |
Total | Allowance for losses | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Carrying value | 192 | 132 |
Total | Not past due | Gross carrying value | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Carrying value | 56,228 | 51,661 |
Total | Not past due | Allowance for losses | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Carrying value | 0 | 0 |
Total | Impaired | Gross carrying value | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Carrying value | 225 | 163 |
Total | Impaired | Allowance for losses | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Carrying value | $ 192 | $ 132 |
Financial Instrument Risk Ma_18
Financial Instrument Risk Management - Changes in Allowances for Losses (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Total | ||
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | ||
Allowance account for credit losses of financial assets, beginning balance | $ 132 | $ 115 |
Provision for (reversal of) losses | 55 | 20 |
Write-offs, net of recoveries, and other adjustments | (2) | |
Foreign exchange rate movements | 5 | (1) |
Allowance account for credit losses of financial assets, ending balance | 192 | 132 |
Mortgages | ||
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | ||
Allowance account for credit losses of financial assets, beginning balance | 80 | 66 |
Provision for (reversal of) losses | 15 | |
Provision for (reversal of) losses | (2) | |
Write-offs, net of recoveries, and other adjustments | 0 | |
Foreign exchange rate movements | 2 | (1) |
Allowance account for credit losses of financial assets, ending balance | 80 | 80 |
Loans | ||
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | ||
Allowance account for credit losses of financial assets, beginning balance | 52 | 49 |
Provision for (reversal of) losses | 57 | 5 |
Write-offs, net of recoveries, and other adjustments | (2) | |
Foreign exchange rate movements | 3 | 0 |
Allowance account for credit losses of financial assets, ending balance | $ 112 | $ 52 |
Financial Instrument Risk Ma_19
Financial Instrument Risk Management - Equities by Issuer Country (Details) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | $ 165,557 | $ 173,735 |
Other invested assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 7,148 | 9,113 |
Other invested assets | Fair value through profit or loss | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 6,824 | 7,538 |
Other invested assets | Available- for-sale | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 324 | 1,575 |
Canada | Other invested assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 3,038 | 3,363 |
Canada | Other invested assets | Fair value through profit or loss | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 2,981 | 3,301 |
Canada | Other invested assets | Available- for-sale | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 57 | 62 |
United States | Other invested assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 1,924 | 3,415 |
United States | Other invested assets | Fair value through profit or loss | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 1,732 | 2,010 |
United States | Other invested assets | Available- for-sale | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 192 | 1,405 |
United Kingdom | Other invested assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 154 | 192 |
United Kingdom | Other invested assets | Fair value through profit or loss | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 150 | 186 |
United Kingdom | Other invested assets | Available- for-sale | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 4 | 6 |
Other | Other invested assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 2,032 | 2,143 |
Other | Other invested assets | Fair value through profit or loss | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | 1,961 | 2,041 |
Other | Other invested assets | Available- for-sale | ||
Disclosure of detailed information about financial instruments [line items] | ||
Notional amount | $ 71 | $ 102 |
Insurance Risk Management - Nar
Insurance Risk Management - Narrative (Details) $ in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 CAD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CAD ($) | |
Single Life Insurance Contracts In Canada | |||
Disclosure of types of insurance contracts [line items] | |||
Reinsurance retention limit | $ 40 | ||
Single Life Insurance Contracts Outside Of Canada | |||
Disclosure of types of insurance contracts [line items] | |||
Reinsurance retention limit | $ 40 | ||
Survivorship Life Insurance Contracts In Canada | |||
Disclosure of types of insurance contracts [line items] | |||
Reinsurance retention limit | 50 | ||
Survivorship Life Insurance Contracts Outside Of Canada | |||
Disclosure of types of insurance contracts [line items] | |||
Reinsurance retention limit | $ 50 | ||
Policyholder Behaviour Risk | Individual Life Insurance Contracts Where Fewer Terminations Are Financially Adverse | |||
Disclosure of types of insurance contracts [line items] | |||
Increase (decrease) in net income due to change in corresponding risk variable | (270) | $ (270) | |
Increase (decrease) in equity due to change in corresponding risk variable | $ (270) | $ (270) | |
Reasonably possible increase (decrease) in risk variable, percent | (10.00%) | (10.00%) | (10.00%) |
Policyholder Behaviour Risk | Individual Life Insurance Contracts Where More Terminations Are Financially Adverse | |||
Disclosure of types of insurance contracts [line items] | |||
Increase (decrease) in net income due to change in corresponding risk variable | $ (235) | $ (225) | |
Increase (decrease) in equity due to change in corresponding risk variable | $ (235) | $ (225) | |
Reasonably possible increase (decrease) in risk variable, percent | 10% | 10% | 10% |
Mortality Risk | Life Insurance Contracts Where Higher Mortality Is Financially Adverse | |||
Disclosure of types of insurance contracts [line items] | |||
Increase (decrease) in net income due to change in corresponding risk variable | $ (75) | $ (25) | |
Increase (decrease) in equity due to change in corresponding risk variable | $ (75) | $ (25) | |
Reasonably possible increase (decrease) in risk variable, percent | 2% | 2% | 2% |
Morbidity Risk | Life Insurance Contracts Where Morbidity Is Significant Assumption | |||
Disclosure of types of insurance contracts [line items] | |||
Increase (decrease) in net income due to change in corresponding risk variable | $ (265) | $ (255) | |
Increase (decrease) in equity due to change in corresponding risk variable | $ (265) | $ (255) | |
Reasonably possible increase (decrease) in risk variable, percent | 5% | 5% | 5% |
Longevity Risk | Life Insurance Annuities Contracts | |||
Disclosure of types of insurance contracts [line items] | |||
Increase (decrease) in net income due to change in corresponding risk variable | $ (120) | $ (150) | |
Increase (decrease) in equity due to change in corresponding risk variable | $ (120) | $ (150) | |
Reasonably possible increase (decrease) in risk variable, percent | (2.00%) | (2.00%) | (2.00%) |
Expense Risk | Life Insurance Contracts | |||
Disclosure of types of insurance contracts [line items] | |||
Increase (decrease) in net income due to change in corresponding risk variable | $ (175) | $ (165) | |
Increase (decrease) in equity due to change in corresponding risk variable | $ (175) | $ (165) | |
Reasonably possible increase (decrease) in risk variable, percent | 5% | 5% | 5% |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Subclassifications of assets, liabilities and equities [abstract] | ||
Accounts receivable | $ 2,833 | $ 1,632 |
Investment income due and accrued | 1,315 | 1,104 |
Property and equipment | 607 | 612 |
Right-of-use assets | 753 | 695 |
Deferred acquisition costs | 158 | 172 |
Prepaid expenses | 1,089 | 406 |
Premium receivable | 842 | 637 |
Accrued post-retirement benefit assets | 98 | 83 |
Other | 115 | 93 |
Total other assets | 7,810 | 5,434 |
Amortization expense, deferred acquisition costs | $ 53 | $ 23 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill Acquired by Segment (Details) - Goodwill - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | $ 6,517 | $ 6,072 |
Acquisitions | 2,030 | 479 |
Impairment | (170) | |
Foreign exchange rate movements | 328 | (34) |
Ending balance | 8,705 | 6,517 |
Disposal groups classified as held for sale | Sun Life UK | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Impairment | (170) | |
Canada | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | 2,607 | 2,607 |
Acquisitions | 0 | 0 |
Impairment | 0 | |
Foreign exchange rate movements | 0 | 0 |
Ending balance | 2,607 | 2,607 |
U.S. (Employee Benefits) | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | 1,108 | 1,062 |
Acquisitions | 2,030 | 53 |
Impairment | 0 | |
Foreign exchange rate movements | 226 | (7) |
Ending balance | 3,364 | 1,108 |
Asia | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | 659 | 665 |
Acquisitions | 0 | 3 |
Impairment | 0 | |
Foreign exchange rate movements | 41 | (9) |
Ending balance | 700 | 659 |
Asset Management | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | 1,959 | 1,551 |
Acquisitions | 0 | 423 |
Impairment | 0 | |
Foreign exchange rate movements | 75 | (15) |
Ending balance | 2,034 | 1,959 |
Corporate | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Beginning balance | 184 | 187 |
Acquisitions | 0 | 0 |
Impairment | (170) | |
Foreign exchange rate movements | (14) | (3) |
Ending balance | $ 0 | $ 184 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Narrative (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Bottom of range | |
Disclosure of detailed information about intangible assets [line items] | |
CGU discount rate | 9.25% |
Price-to-earnings multiples used for valuation | 0.105 |
Price-to-assets-under-management multiples used for valuation | 1.30% |
Bottom of range | Income approach | |
Disclosure of detailed information about intangible assets [line items] | |
Future sales projection for valuation, in years | 10 years |
Top of range | |
Disclosure of detailed information about intangible assets [line items] | |
CGU discount rate | 12.50% |
Price-to-earnings multiples used for valuation | 0.115 |
Price-to-assets-under-management multiples used for valuation | 2% |
Top of range | Income approach | |
Disclosure of detailed information about intangible assets [line items] | |
Future sales projection for valuation, in years | 15 years |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Goodwill Allocated to CGUs (Details) $ in Millions | Dec. 31, 2022 CAD ($) | Jun. 01, 2022 cashGeneratingUnit | Dec. 31, 2021 CAD ($) | Dec. 31, 2020 CAD ($) |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Number of cash generating units | cashGeneratingUnit | 2 | |||
Goodwill | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Goodwill | $ 8,705 | $ 6,517 | $ 6,072 | |
Canada | Goodwill | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Goodwill | 2,607 | 2,607 | ||
Group Benefits | Goodwill | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Goodwill | 1,132 | 1,108 | ||
Dental | Goodwill | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Goodwill | 2,232 | 0 | ||
Asia | Goodwill | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Goodwill | 700 | 659 | ||
Asset Management, MFS | Goodwill | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Goodwill | 513 | 483 | ||
Asset Management, SLC Management | Goodwill | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Goodwill | 1,521 | 1,476 | ||
Corporate, UK | Goodwill | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||||
Goodwill | $ 0 | $ 184 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Changes in Intangible Assets (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | $ 3,370 | |
Amortization charge for the year | (287) | $ (193) |
Impairment of intangible assets | (18) | (9) |
Intangible assets, ending balance | 4,724 | 3,370 |
Gross carrying amount | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | 4,713 | 3,642 |
Additions | 229 | 690 |
Acquisitions | 1,231 | 424 |
Disposals | (1) | (24) |
Foreign exchange rate movements | 248 | (19) |
Intangible assets, ending balance | 6,420 | 4,713 |
Accumulated amortization and impairment losses | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | (1,343) | (1,165) |
Amortization charge for the year | (287) | (193) |
Disposals | 1 | 24 |
Impairment of intangible assets | (18) | (9) |
Foreign exchange rate movements | (49) | 0 |
Intangible assets, ending balance | (1,696) | (1,343) |
Indefinite life | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | 1,058 | |
Intangible assets, ending balance | 1,092 | 1,058 |
Indefinite life | Gross carrying amount | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | 1,081 | 938 |
Additions | 0 | 0 |
Acquisitions | 0 | 153 |
Disposals | 0 | 0 |
Foreign exchange rate movements | 36 | (10) |
Intangible assets, ending balance | 1,117 | 1,081 |
Indefinite life | Accumulated amortization and impairment losses | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | (23) | (14) |
Amortization charge for the year | 0 | 0 |
Disposals | 0 | 0 |
Impairment of intangible assets | 0 | (9) |
Foreign exchange rate movements | (2) | 0 |
Intangible assets, ending balance | (25) | (23) |
Internally generated software | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | 650 | |
Intangible assets, ending balance | 996 | 650 |
Internally generated software | Gross carrying amount | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | 1,265 | 1,070 |
Additions | 206 | 219 |
Acquisitions | 232 | 0 |
Disposals | (1) | (24) |
Foreign exchange rate movements | 59 | 0 |
Intangible assets, ending balance | 1,761 | 1,265 |
Internally generated software | Accumulated amortization and impairment losses | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | (615) | (561) |
Amortization charge for the year | (113) | (79) |
Disposals | 1 | 24 |
Impairment of intangible assets | (16) | 0 |
Foreign exchange rate movements | (22) | 1 |
Intangible assets, ending balance | (765) | (615) |
Other | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | 1,662 | |
Intangible assets, ending balance | 2,636 | 1,662 |
Other | Gross carrying amount | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | 2,367 | 1,634 |
Additions | 23 | 471 |
Acquisitions | 999 | 271 |
Disposals | 0 | 0 |
Foreign exchange rate movements | 153 | (9) |
Intangible assets, ending balance | 3,542 | 2,367 |
Other | Accumulated amortization and impairment losses | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | (705) | (590) |
Amortization charge for the year | (174) | (114) |
Disposals | 0 | 0 |
Impairment of intangible assets | (2) | 0 |
Foreign exchange rate movements | (25) | (1) |
Intangible assets, ending balance | $ (906) | $ (705) |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Components of Intangible Assets (Details) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets | $ 4,724 | $ 3,370 |
Fund management contracts | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets | 1,092 | 1,058 |
Indefinite life | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets | 1,092 | 1,058 |
Total finite life intangible assets | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets | 3,632 | 2,312 |
Distribution, sales potential of field force | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets | 281 | 295 |
Client relationships and asset administration contracts | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets | 2,355 | 1,367 |
Internally generated software | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets | $ 996 | $ 650 |
Insurance Contract Liabilitie_3
Insurance Contract Liabilities and Investment Contract Liabilities - Insurance Contract and Other Policy Liabilities (Details) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | $ 140,418 | $ 147,811 |
Insurance contract liabilities before other policy liabilities | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 131,400 | 139,671 |
Individual participating life | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 44,662 | 47,197 |
Individual non-participating life and health | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 38,152 | 42,034 |
Group life and health | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 17,320 | 17,313 |
Individual annuities | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 11,482 | 14,288 |
Group annuities | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 19,784 | 18,839 |
Other policy liabilities | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 9,018 | 8,140 |
Canada | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 84,451 | 87,484 |
Canada | Insurance contract liabilities before other policy liabilities | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 80,868 | 83,925 |
Canada | Individual participating life | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 27,394 | 28,205 |
Canada | Individual non-participating life and health | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 13,681 | 15,735 |
Canada | Group life and health | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 11,693 | 11,682 |
Canada | Individual annuities | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 8,384 | 9,538 |
Canada | Group annuities | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 19,716 | 18,765 |
Canada | Other policy liabilities | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 3,583 | 3,559 |
U.S. | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 25,973 | 26,794 |
U.S. | Insurance contract liabilities before other policy liabilities | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 23,486 | 24,947 |
U.S. | Individual participating life | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 5,060 | 5,150 |
U.S. | Individual non-participating life and health | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 12,808 | 14,196 |
U.S. | Group life and health | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 5,599 | 5,580 |
U.S. | Individual annuities | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 18 | 16 |
U.S. | Group annuities | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 1 | 5 |
U.S. | Other policy liabilities | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 2,487 | 1,847 |
Asia | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 25,779 | 27,387 |
Asia | Insurance contract liabilities before other policy liabilities | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 23,077 | 24,864 |
Asia | Individual participating life | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 11,574 | 12,982 |
Asia | Individual non-participating life and health | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 11,397 | 11,774 |
Asia | Group life and health | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 33 | 34 |
Asia | Individual annuities | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 6 | 5 |
Asia | Group annuities | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 67 | 69 |
Asia | Other policy liabilities | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 2,702 | 2,523 |
Corporate | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 4,215 | 6,146 |
Corporate | Insurance contract liabilities before other policy liabilities | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 3,969 | 5,935 |
Corporate | Individual participating life | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 634 | 860 |
Corporate | Individual non-participating life and health | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 266 | 329 |
Corporate | Group life and health | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | (5) | 17 |
Corporate | Individual annuities | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 3,074 | 4,729 |
Corporate | Group annuities | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 0 | 0 |
Corporate | Other policy liabilities | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 246 | 211 |
United Kingdom | Corporate | Individual participating life | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 563 | 771 |
United Kingdom | Corporate | Individual non-participating life and health | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 154 | 207 |
United Kingdom | Corporate | Individual annuities | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | 2,918 | 4,546 |
United Kingdom | Corporate | Other policy liabilities | ||
Disclosure of types of insurance contracts [line items] | ||
Insurance contract liabilities | $ 200 | $ 164 |
Insurance Contract Liabilitie_4
Insurance Contract Liabilities and Investment Contract Liabilities - Changes in Insurance Contract Liabilities and Reinsurance Assets (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Insurance contract liabilities | ||
Insurance contract liabilities, beginning balance | $ 147,811 | |
Insurance contract liabilities, change in balances on in-force policies | (15,530) | $ (1,642) |
Insurance contract liabilities, balances arising from new policies | 3,473 | 3,948 |
Insurance contract liabilities, method and assumption changes | 950 | 131 |
Investment contract liabilities, increase (decrease) in Insurance contract liabilities and Reinsurance assets | (11,107) | 2,437 |
Insurance contract liabilities, other changes | (2) | 0 |
Insurance contract liabilities, foreign exchange rate movements | 2,838 | (499) |
Insurance contract liabilities, ending balance | 140,418 | 147,811 |
Reinsurance assets | ||
Reinsurance assets, beginning balance | 3,683 | |
Reinsurance assets, change in balances on in-force policies | (137) | (18) |
Reinsurance assets, change in balances arising from new policies | 81 | 74 |
Reinsurance assets, method and assumption changes | 1,007 | (142) |
Reinsurance assets, increase (decrease) in Insurance contract liabilities and Reinsurance assets | 951 | (86) |
Reinsurance assets, other changes | 0 | (109) |
Reinsurance assets, foreign exchange rate movements | 213 | (26) |
Reinsurance assets, ending balance | 4,801 | 3,683 |
Net | ||
Net insurance contract liabilities and reinsurance assets, beginning balance | 144,128 | |
Net change in balances on in-force policies | (15,393) | (1,624) |
Net balance arising from new policies | 3,392 | 3,874 |
Net method and assumption change | (57) | 273 |
Net increase (decrease) in insurance contract liabilities and reinsurance assets | (12,058) | 2,523 |
Net other | (2) | 109 |
Net foreign exchange rate movement | 2,625 | (473) |
Net insurance contract liabilities and reinsurance assets, ending balance | 135,617 | 144,128 |
Balances before Other policy liabilities and assets | ||
Insurance contract liabilities | ||
Insurance contract liabilities, beginning balance | 139,671 | 137,733 |
Insurance contract liabilities, ending balance | 131,400 | 139,671 |
Reinsurance assets | ||
Reinsurance assets, beginning balance | 2,905 | 3,126 |
Reinsurance assets, ending balance | 4,069 | 2,905 |
Net | ||
Net insurance contract liabilities and reinsurance assets, beginning balance | 136,766 | 134,607 |
Net insurance contract liabilities and reinsurance assets, ending balance | 127,331 | 136,766 |
Other policy liabilities and assets | ||
Insurance contract liabilities | ||
Insurance contract liabilities, beginning balance | 8,140 | |
Insurance contract liabilities, ending balance | 9,018 | 8,140 |
Reinsurance assets | ||
Reinsurance assets, beginning balance | 778 | |
Reinsurance assets, ending balance | 732 | 778 |
Net | ||
Net insurance contract liabilities and reinsurance assets, beginning balance | 7,362 | |
Net insurance contract liabilities and reinsurance assets, ending balance | $ 8,286 | $ 7,362 |
Insurance Contract Liabilitie_5
Insurance Contract Liabilities and Investment Contract Liabilities - Impact of Method and Assumption Changes (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of types of insurance contracts [line items] | ||
Net increase (decrease) before income taxes | $ (57) | $ 273 |
Mortality / Morbidity | ||
Disclosure of types of insurance contracts [line items] | ||
Net increase (decrease) before income taxes | (96) | (89) |
Policyholder behaviour | ||
Disclosure of types of insurance contracts [line items] | ||
Net increase (decrease) before income taxes | 71 | 219 |
Expenses | ||
Disclosure of types of insurance contracts [line items] | ||
Net increase (decrease) before income taxes | 9 | (202) |
Investment returns | ||
Disclosure of types of insurance contracts [line items] | ||
Net increase (decrease) before income taxes | 13 | 416 |
Model enhancements and other | ||
Disclosure of types of insurance contracts [line items] | ||
Net increase (decrease) before income taxes | $ (54) | $ (71) |
Insurance Contract Liabilitie_6
Insurance Contract Liabilities and Investment Contract Liabilities - Investment Contract Liabilities (Details) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities(6) | $ 3,314 | $ 3,368 |
Individual participating life | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities(6) | 4 | 4 |
Individual non-participating life and health | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities(6) | 189 | 237 |
Individual annuities | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities(6) | 2,585 | 2,525 |
Group annuities | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities(6) | 536 | 602 |
Investment contract liabilities with DPF | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities(6) | 754 | 872 |
Investment contract liabilities without DPF | Measured at amortized cost | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities(6) | 2,550 | 2,487 |
Investment contract liabilities without DPF | Measured at fair value | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities(6) | 10 | 9 |
Canada | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities(6) | 2,550 | 2,487 |
Canada | Individual participating life | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities(6) | 0 | 0 |
Canada | Individual non-participating life and health | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities(6) | 0 | 0 |
Canada | Individual annuities | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities(6) | 2,550 | 2,487 |
Canada | Group annuities | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities(6) | 0 | 0 |
Asia | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities(6) | 723 | 838 |
Asia | Individual participating life | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities(6) | 0 | 0 |
Asia | Individual non-participating life and health | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities(6) | 187 | 235 |
Asia | Individual annuities | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities(6) | 0 | 1 |
Asia | Group annuities | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities(6) | 536 | 602 |
Corporate | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities(6) | 41 | 43 |
Corporate | Individual participating life | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities(6) | 4 | 4 |
Corporate | Individual non-participating life and health | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities(6) | 2 | 2 |
Corporate | Individual annuities | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities(6) | 35 | 37 |
Corporate | Group annuities | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities(6) | $ 0 | $ 0 |
Insurance Contract Liabilitie_7
Insurance Contract Liabilities and Investment Contract Liabilities - Change in Investment Contract Liabilities without DPF (Details) - Investment contract liabilities without DPF - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Measured at fair value | ||
Reconciliation Of Changes In Financial Liabilities [Roll Forward] | ||
Beginning balance | $ 9 | $ 2 |
Deposits | 0 | 0 |
Interest | 0 | 0 |
Withdrawals | 0 | 0 |
Fees | 0 | 0 |
Change in fair value | 1 | 7 |
Other | 0 | 0 |
Foreign exchange rate movements | 0 | 0 |
Ending balance | 10 | 9 |
Measured at amortized cost | ||
Reconciliation Of Changes In Financial Liabilities [Roll Forward] | ||
Beginning balance | 2,487 | 2,690 |
Deposits | 443 | 303 |
Interest | 57 | 60 |
Withdrawals | (444) | (570) |
Fees | (5) | (7) |
Change in fair value | 0 | 0 |
Other | 12 | 10 |
Foreign exchange rate movements | 0 | 1 |
Ending balance | $ 2,550 | $ 2,487 |
Insurance Contract Liabilitie_8
Insurance Contract Liabilities and Investment Contract Liabilities - Change in Investment Contract Liabilities with DPF (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation Of Changes In Financial Liabilities [Roll Forward] | ||
Change in liabilities on in-force policies | $ (15,530) | $ (1,642) |
Investment contract liabilities with DPF | ||
Reconciliation Of Changes In Financial Liabilities [Roll Forward] | ||
Beginning balance | 872 | 497 |
Change in liabilities on in-force policies | (165) | (89) |
Increase (decrease) in liabilities | (165) | (89) |
Acquisitions | 0 | 471 |
Foreign exchange rate movements | 47 | (7) |
Ending balance | $ 754 | $ 872 |
Insurance Contract Liabilitie_9
Insurance Contract Liabilities and Investment Contract Liabilities - Gross Claims and Benefits Paid (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Insurance Contracts [Abstract] | ||
Maturities and surrenders | $ 3,750 | $ 3,205 |
Annuity payments | 2,124 | 2,017 |
Death and disability benefits | 4,950 | 4,876 |
Health benefits | 9,588 | 7,246 |
Policyholder dividends and interest on claims and deposits | 1,632 | 1,378 |
Total gross claims and benefits paid | $ 22,044 | $ 18,722 |
Insurance Contract Liabiliti_10
Insurance Contract Liabilities and Investment Contract Liabilities - Total Assets Supporting Total Liabilities And Equity (Details) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | $ 205,614 | $ 205,374 |
Debt securities | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 75,902 | 88,727 |
Equity securities | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 7,148 | 9,113 |
Mortgages and loans | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 56,261 | 51,692 |
Investment properties | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 10,102 | 9,109 |
Other | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 56,201 | 46,733 |
Individual participating life | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 50,381 | 52,381 |
Individual participating life | Debt securities | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 23,513 | 26,715 |
Individual participating life | Equity securities | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 4,836 | 5,374 |
Individual participating life | Mortgages and loans | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 10,802 | 9,559 |
Individual participating life | Investment properties | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 6,345 | 5,932 |
Individual participating life | Other | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 4,885 | 4,801 |
Individual non-participating life and health | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 48,534 | 50,472 |
Individual non-participating life and health | Debt securities | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 17,438 | 23,716 |
Individual non-participating life and health | Equity securities | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 1,804 | 1,947 |
Individual non-participating life and health | Mortgages and loans | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 15,029 | 13,885 |
Individual non-participating life and health | Investment properties | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 3,103 | 2,614 |
Individual non-participating life and health | Other | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 11,160 | 8,310 |
Group life and health | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 21,862 | 20,953 |
Group life and health | Debt securities | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 7,057 | 7,598 |
Group life and health | Equity securities | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 24 | 30 |
Group life and health | Mortgages and loans | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 10,412 | 9,556 |
Group life and health | Investment properties | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 117 | 92 |
Group life and health | Other | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 4,252 | 3,677 |
Individual annuities | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 15,248 | 17,696 |
Individual annuities | Debt securities | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 7,822 | 10,314 |
Individual annuities | Equity securities | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 34 | 40 |
Individual annuities | Mortgages and loans | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 6,573 | 6,435 |
Individual annuities | Investment properties | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 0 | 0 |
Individual annuities | Other | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 819 | 907 |
Group annuities | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 21,168 | 20,250 |
Group annuities | Debt securities | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 9,046 | 9,612 |
Group annuities | Equity securities | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 100 | 111 |
Group annuities | Mortgages and loans | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 10,444 | 9,198 |
Group annuities | Investment properties | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 109 | 24 |
Group annuities | Other | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 1,469 | 1,305 |
Equity and other | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 48,421 | 43,622 |
Equity and other | Debt securities | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 11,026 | 10,772 |
Equity and other | Equity securities | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 350 | 1,611 |
Equity and other | Mortgages and loans | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 3,001 | 3,059 |
Equity and other | Investment properties | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 428 | 447 |
Equity and other | Other | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | $ 33,616 | $ 27,733 |
Insurance Contract Liabiliti_11
Insurance Contract Liabilities and Investment Contract Liabilities - Changes in Insurance Contract Liabilities (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Insurance Contracts [Abstract] | ||
Increase (decrease) in insurance contract liabilities | $ (11,107) | $ 2,437 |
Decrease (increase) in reinsurance assets | (951) | 86 |
Increase (decrease) in investment contract liabilities | (107) | (22) |
Net transfer to (from) segregated funds | (1,149) | (351) |
Total changes in insurance contract liabilities, investment contract liabilities, reinsurance assets, and segregated funds | $ (13,314) | $ 2,150 |
Reinsurance - Schedule of Reins
Reinsurance - Schedule of Reinsurance Assets (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | $ 4,801,000,000 | $ 3,683,000,000 |
Reinsurance assets before other policy assets | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | 4,069,000,000 | 2,905,000,000 |
Individual participating life | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | 218,000,000 | 221,000,000 |
Individual non-participating life and health | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | 1,367,000,000 | 340,000,000 |
Group life and health | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | 2,486,000,000 | 2,307,000,000 |
Individual annuities | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | 1,000,000 | 15,000,000 |
Group annuities | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | 22,000,000 | |
Reinsurance contracts held that are liabilities | (3,000,000) | |
Other policy assets | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | 732,000,000 | 778,000,000 |
Canada | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | 101,000,000 | (146,000,000) |
Canada | Reinsurance assets before other policy assets | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | 3,000,000 | (241,000,000) |
Canada | Individual participating life | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | 21,000,000 | 0 |
Canada | Individual non-participating life and health | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | (282,000,000) | (547,000,000) |
Canada | Group life and health | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | 267,000,000 | 284,000,000 |
Canada | Individual annuities | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | 0 | 0 |
Canada | Group annuities | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | 22,000,000 | |
Reinsurance contracts held that are liabilities | (3,000,000) | |
Canada | Other policy assets | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | 98,000,000 | 95,000,000 |
U.S. | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | 4,306,000,000 | 3,426,000,000 |
U.S. | Reinsurance assets before other policy assets | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | 3,828,000,000 | 2,863,000,000 |
U.S. | Individual participating life | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | 18,000,000 | 7,000,000 |
U.S. | Individual non-participating life and health | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | 1,598,000,000 | 838,000,000 |
U.S. | Group life and health | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | 2,212,000,000 | 2,018,000,000 |
U.S. | Individual annuities | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | 0 | 0 |
U.S. | Group annuities | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | 0 | |
Reinsurance contracts held that are liabilities | 0 | |
U.S. | Other policy assets | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | 478,000,000 | 563,000,000 |
Asia | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | 341,000,000 | 333,000,000 |
Asia | Reinsurance assets before other policy assets | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | 224,000,000 | 252,000,000 |
Asia | Individual participating life | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | 179,000,000 | 214,000,000 |
Asia | Individual non-participating life and health | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | 38,000,000 | 33,000,000 |
Asia | Group life and health | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | 7,000,000 | 5,000,000 |
Asia | Individual annuities | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | 0 | 0 |
Asia | Group annuities | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | 0 | |
Reinsurance contracts held that are liabilities | 0 | |
Asia | Other policy assets | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | 117,000,000 | 81,000,000 |
Corporate | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | 53,000,000 | 70,000,000 |
Corporate | Reinsurance assets before other policy assets | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | 14,000,000 | 31,000,000 |
Corporate | Individual participating life | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | 0 | 0 |
Corporate | Individual non-participating life and health | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | 13,000,000 | 16,000,000 |
Corporate | Group life and health | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | 0 | 0 |
Corporate | Individual annuities | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | 1,000,000 | 15,000,000 |
Corporate | Group annuities | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | 0 | |
Reinsurance contracts held that are liabilities | 0 | |
Corporate | Other policy assets | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | 39,000,000 | 39,000,000 |
United Kingdom | Corporate | Individual non-participating life and health | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | 13,000,000 | 16,000,000 |
United Kingdom | Corporate | Individual annuities | ||
Disclosure of types of insurance contracts [line items] | ||
Reinsurance assets | 1,000,000 | 15,000,000 |
Reinsurance Assets | ||
Disclosure of types of insurance contracts [line items] | ||
Impairment loss | $ 0 | $ 0 |
Reinsurance - Schedule of Rei_2
Reinsurance - Schedule of Reinsurance Expenses and Benefits (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Insurance Contracts [Abstract] | ||
Recovered claims and benefits | $ 1,961 | $ 2,233 |
Commissions | 73 | 65 |
Reserve adjustments | 22 | 45 |
Operating expenses and other | 84 | 82 |
Total reinsurance (expenses) recoveries | $ 2,140 | $ 2,425 |
Other Liabilities - Schedule of
Other Liabilities - Schedule of Other Liabilities (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about borrowings [line items] | ||
Accounts payable | $ 2,639 | $ 1,866 |
Bank overdrafts and cash pooling | 6 | 133 |
Repurchase agreements | 2,725 | 2,324 |
Accrued expenses and taxes | 4,213 | 4,265 |
Credit facilities | 2,339 | 441 |
Borrowed funds | 403 | 432 |
Accrued post-retirement benefit liability | 268 | 528 |
Secured borrowings from mortgage securitization | 2,158 | 2,007 |
Lease liabilities | 952 | 850 |
Other financial liabilities | 1,996 | 1,810 |
Obligations for securities borrowing | 73 | 51 |
Collateralized loan obligation | 2,816 | 1,726 |
Deferred payments liability | 299 | 330 |
Other | 1,761 | 1,020 |
Total other liabilities | 22,648 | 17,783 |
Interest expense | 445 | 327 |
Borrowed funds | ||
Disclosure of detailed information about borrowings [line items] | ||
Net cash flow changes | (34) | 31 |
Foreign exchange rate movements | 8 | 0 |
Other financial liabilities | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest expense | $ 68 | $ 64 |
Other Liabilities - Narrative (
Other Liabilities - Narrative (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of information about consolidated structured entities [line items] | ||
Increase in contingent liability | $ 96 | $ 187 |
Borrowed funds | ||
Disclosure of information about consolidated structured entities [line items] | ||
Interest expense on borrowings | $ 67 | $ 22 |
Other Liabilities - Schedule _2
Other Liabilities - Schedule of Borrowings (Details) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of detailed information about borrowings [line items] | ||
Borrowed funds | $ 403 | $ 432 |
Encumbrances on real estate, Maturing in 2033 | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowed funds | 326 | 323 |
Encumbrances on real estate in US Dollars, Maturing in 2020 | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowed funds | $ 77 | $ 109 |
Senior Debentures and Innovat_3
Senior Debentures and Innovative Capital Instruments - Senior Debentures (Details) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Senior Debentures | ||
Disclosure of detailed information about borrowings [line items] | ||
Fair value of borrowings outstanding | $ 215 | $ 271 |
Sun Life Assurance Series B Senior Debentures Issued June 25, 2002 | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest rate | 7.09% | |
Borrowings outstanding | $ 200 | $ 200 |
Government of Canada Bond Yield | Sun Life Assurance Series B Senior Debentures Issued June 25, 2002 | ||
Disclosure of detailed information about borrowings [line items] | ||
Adjustment to interest rate basis | 0.32% |
Senior Debentures and Innovat_4
Senior Debentures and Innovative Capital Instruments - Narrative (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Senior Debentures | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest expense on subordinated debt | $ 14 | $ 23 |
Sun Life ExchangEable Capital Securities | Non-Cumulative Perpetual Preferred Shares | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, convertible, number of equity instruments (in shares) | 40 |
Senior Debentures and Innovat_5
Senior Debentures and Innovative Capital Instruments - Innovative Capital Instruments (Details) - Sun Life Capital Trust SLEECS B $ in Millions | 12 Months Ended |
Dec. 31, 2022 CAD ($) shares | |
Disclosure of detailed information about borrowings [line items] | |
Principal amount | $ | $ 200 |
Annual yield | |
Disclosure of detailed information about borrowings [line items] | |
Annual yield | 7.093% |
Government of Canada Bond Yield | |
Disclosure of detailed information about borrowings [line items] | |
Adjustment to interest rate basis | 0.32% |
Non-Cumulative Perpetual Preferred Shares | |
Disclosure of detailed information about borrowings [line items] | |
Borrowings, convertible, number of equity instruments (in shares) | shares | 40 |
Subordinated Debt - Obligations
Subordinated Debt - Obligations Included in Subordinated Debt (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Nov. 23, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about borrowings [line items] | |||
Borrowings term | 5 years | ||
Subordinated debt | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings outstanding | $ 6,676 | $ 6,425 | |
Fair value of borrowings outstanding | 6,106 | 6,675 | |
Interest expense on subordinated debt | $ 198 | 141 | |
Subordinated Debt Issued May 15, 1998 | |||
Disclosure of detailed information about borrowings [line items] | |||
Interest rate | 6.30% | ||
Borrowings outstanding | $ 150 | 150 | |
Subordinated Debt Issued May 29, 2007 | |||
Disclosure of detailed information about borrowings [line items] | |||
Interest rate | 5.40% | ||
Borrowings outstanding | $ 398 | 398 | |
Subordinated Debt Issued September 19, 2016 | |||
Disclosure of detailed information about borrowings [line items] | |||
Interest rate | 3.05% | ||
Borrowings outstanding | $ 999 | 998 | |
Subordinated Debt Issued November 23, 2017 | |||
Disclosure of detailed information about borrowings [line items] | |||
Interest rate | 2.75% | ||
Borrowings outstanding | $ 0 | 400 | |
Repayments of subordinated liabilities | $ 400 | ||
Subordinated Debt Issued August 13, 2019 | |||
Disclosure of detailed information about borrowings [line items] | |||
Interest rate | 2.38% | ||
Borrowings outstanding | $ 749 | 748 | |
Subordinated Debt Issued May 8, 2020 | |||
Disclosure of detailed information about borrowings [line items] | |||
Interest rate | 2.58% | ||
Borrowings outstanding | $ 996 | 995 | |
Subordinated Debt Issued October 1, 2020 | |||
Disclosure of detailed information about borrowings [line items] | |||
Interest rate | 2.06% | ||
Borrowings outstanding | $ 746 | 746 | |
Subordinated Debt Issued November 18, 2021, Redemption November 18, 2026 | |||
Disclosure of detailed information about borrowings [line items] | |||
Interest rate | 2.46% | ||
Borrowings outstanding | $ 498 | 497 | |
Subordinated Debt Issued November 18, 2021, Redemption November 21, 2028 | |||
Disclosure of detailed information about borrowings [line items] | |||
Interest rate | 2.80% | ||
Borrowings outstanding | $ 996 | 995 | |
Subordinated Debt Issued November 18, 2021, Redemption November 18, 2031 | |||
Disclosure of detailed information about borrowings [line items] | |||
Interest rate | 3.15% | ||
Borrowings outstanding | $ 498 | 498 | |
Subordinated Debt Issued August 10, 2022 | |||
Disclosure of detailed information about borrowings [line items] | |||
Interest rate | 4.78% | ||
Borrowings outstanding | $ 646 | $ 0 | |
Government of Canada Bond Yield | Subordinated Debt Issued May 15, 1998 | |||
Disclosure of detailed information about borrowings [line items] | |||
Adjustment to interest rate basis | 0.16% | ||
Canadian Dollar Offered Rate (CDOR) | Subordinated Debt Issued May 8, 2020 | |||
Disclosure of detailed information about borrowings [line items] | |||
Adjustment to interest rate basis | 1.66% | ||
Canadian Dollar Offered Rate (CDOR) | Subordinated Debt Issued October 1, 2020 | |||
Disclosure of detailed information about borrowings [line items] | |||
Adjustment to interest rate basis | 1.03% | ||
Canadian Dollar Offered Rate (CDOR) | Subordinated Debt Issued November 18, 2021, Redemption November 21, 2028 | |||
Disclosure of detailed information about borrowings [line items] | |||
Adjustment to interest rate basis | 0.69% | ||
Canadian Dollar Offered Rate (CDOR) | Subordinated Debt Issued November 18, 2021, Redemption November 18, 2031 | |||
Disclosure of detailed information about borrowings [line items] | |||
Adjustment to interest rate basis | 0.91% | ||
Canada Overnight Repo Rate Average (CORRA) | Subordinated Debt Issued August 10, 2022 | |||
Disclosure of detailed information about borrowings [line items] | |||
Adjustment to interest rate basis | 1.96% | ||
After earliest par call or redemption date | Canadian Dollar Offered Rate (CDOR) | Subordinated Debt Issued May 29, 2007 | |||
Disclosure of detailed information about borrowings [line items] | |||
Adjustment to interest rate basis | 1% | ||
After earliest par call or redemption date | Canadian Dollar Offered Rate (CDOR) | Subordinated Debt Issued September 19, 2016 | |||
Disclosure of detailed information about borrowings [line items] | |||
Adjustment to interest rate basis | 1.85% | ||
After earliest par call or redemption date | Canadian Dollar Offered Rate (CDOR) | Subordinated Debt Issued November 23, 2017 | |||
Disclosure of detailed information about borrowings [line items] | |||
Adjustment to interest rate basis | 0.74% | ||
After earliest par call or redemption date | Canadian Dollar Offered Rate (CDOR) | Subordinated Debt Issued August 13, 2019 | |||
Disclosure of detailed information about borrowings [line items] | |||
Adjustment to interest rate basis | 0.85% | ||
After earliest par call or redemption date | Canadian Dollar Offered Rate (CDOR) | Subordinated Debt Issued November 18, 2021, Redemption November 18, 2026 | |||
Disclosure of detailed information about borrowings [line items] | |||
Adjustment to interest rate basis | 0.44% | ||
Before earliest par call or redemption date | Government of Canada Bond Yield | Subordinated Debt Issued May 29, 2007 | |||
Disclosure of detailed information about borrowings [line items] | |||
Adjustment to interest rate basis | 0.25% | ||
Before earliest par call or redemption date | Government of Canada Bond Yield | Subordinated Debt Issued May 8, 2020 | |||
Disclosure of detailed information about borrowings [line items] | |||
Adjustment to interest rate basis | 0.52% | ||
Before earliest par call or redemption date | Government of Canada Bond Yield | Subordinated Debt Issued October 1, 2020 | |||
Disclosure of detailed information about borrowings [line items] | |||
Adjustment to interest rate basis | 0.38% | ||
Before earliest par call or redemption date | Government of Canada Bond Yield | Subordinated Debt Issued November 18, 2021, Redemption November 21, 2028 | |||
Disclosure of detailed information about borrowings [line items] | |||
Adjustment to interest rate basis | 0.285% | ||
Before earliest par call or redemption date | Government of Canada Bond Yield | Subordinated Debt Issued November 18, 2021, Redemption November 18, 2031 | |||
Disclosure of detailed information about borrowings [line items] | |||
Adjustment to interest rate basis | 0.335% |
Share Capital - Narrative (Deta
Share Capital - Narrative (Details) | 12 Months Ended |
Dec. 31, 2022 CAD ($) class_series | |
Disclosure of classes of share capital [line items] | |
Aggregate liquidation entitlement amount | $ | $ 200,000,000 |
Preferred shares | |
Disclosure of classes of share capital [line items] | |
Number of class series | 14 |
Number of class series outstanding | 8 |
Share Capital - Common Shares (
Share Capital - Common Shares (Details) shares in Thousands, $ in Millions | 12 Months Ended | |
Dec. 31, 2022 CAD ($) shares | Dec. 31, 2021 CAD ($) shares | |
Reconciliation of number of shares outstanding [abstract] | ||
Stock options exercised (in shares) | 115 | 900 |
Common shares | ||
Reconciliation of number of shares outstanding [abstract] | ||
Number of shares outstanding, beginning of year (in shares) | 586,000 | 585,100 |
Stock options exercised (in shares) | 400 | 900 |
Number of shares outstanding, end of year (in shares) | 586,400 | 586,000 |
Balance, beginning of year | $ | $ 8,305 | $ 8,262 |
Stock options exercised | $ | 6 | 43 |
Balance, end of year | $ | $ 8,311 | $ 8,305 |
Share Capital - Preferred Share
Share Capital - Preferred Shares and Other Equity Instruments (Details) - CAD ($) shares in Millions | 12 Months Ended | |||||
Dec. 31, 2021 | Sep. 30, 2021 | Sep. 29, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | |
Disclosure of classes of share capital [line items] | ||||||
Senior debentures | $ 200,000,000 | $ 200,000,000 | $ 200,000,000 | |||
Redemption of preferred shares and other equity instruments | $ 0 | $ 1,025,000,000 | ||||
Series 2021-1 | ||||||
Disclosure of classes of share capital [line items] | ||||||
Senior debentures | $ 1,000 | |||||
Interest rate | 3.60% | |||||
Number of shares (in shares) | 1 | |||||
Series 2021-1 | Canadian federal government | ||||||
Disclosure of classes of share capital [line items] | ||||||
Interest rate | 2.604% | |||||
Series 14 | ||||||
Disclosure of classes of share capital [line items] | ||||||
Senior debentures | $ 1,000,000 | |||||
Series 1 | ||||||
Disclosure of classes of share capital [line items] | ||||||
Redemption of preferred shares and other equity instruments | $ 400,000,000 | |||||
Series 2 | ||||||
Disclosure of classes of share capital [line items] | ||||||
Redemption of preferred shares and other equity instruments | $ 325,000,000 | |||||
Series 10R | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of shares converted (in shares) | 0.5 | |||||
Number of shares (in shares) | 6.8 | 6.9 | 6.8 | |||
Series 11QR | ||||||
Disclosure of classes of share capital [line items] | ||||||
Number of shares converted (in shares) | 0.4 | |||||
Number of shares (in shares) | 1.2 | 1.1 | 1.2 | |||
Series 12R | ||||||
Disclosure of classes of share capital [line items] | ||||||
Redemption of preferred shares and other equity instruments | $ 300,000,000 |
Share Capital - Preferred Sha_2
Share Capital - Preferred Shares (Details) - CAD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Sep. 30, 2021 | Sep. 29, 2021 | |
Preferred shares | |||
Disclosure of classes of share capital [line items] | |||
Number of shares (in shares) | 52.2 | ||
Face amount | $ 2,280 | ||
Net amount | $ 2,239 | ||
Series 3 | |||
Disclosure of classes of share capital [line items] | |||
Annual dividend rate | 4.45% | ||
Annual dividend per share (in CAD per share) | $ 1.11 | ||
Number of shares (in shares) | 10 | ||
Face amount | $ 250 | ||
Net amount | $ 245 | ||
Series 4 | |||
Disclosure of classes of share capital [line items] | |||
Annual dividend rate | 4.45% | ||
Annual dividend per share (in CAD per share) | $ 1.11 | ||
Number of shares (in shares) | 12 | ||
Face amount | $ 300 | ||
Net amount | $ 293 | ||
Series 5 | |||
Disclosure of classes of share capital [line items] | |||
Annual dividend rate | 4.50% | ||
Annual dividend per share (in CAD per share) | $ 1.13 | ||
Number of shares (in shares) | 10 | ||
Face amount | $ 250 | ||
Net amount | $ 245 | ||
Series 8R | |||
Disclosure of classes of share capital [line items] | |||
Annual dividend rate | 1.825% | ||
Annual dividend per share (in CAD per share) | $ 0.46 | ||
Number of shares (in shares) | 6.2 | ||
Face amount | $ 155 | ||
Net amount | $ 152 | ||
Annual dividend rate spread | 1.41% | ||
Series 9QR | |||
Disclosure of classes of share capital [line items] | |||
Number of shares (in shares) | 5 | ||
Face amount | $ 125 | ||
Net amount | $ 122 | ||
Annual dividend rate spread | 1.41% | ||
Series 10R | |||
Disclosure of classes of share capital [line items] | |||
Annual dividend rate | 2.967% | ||
Annual dividend per share (in CAD per share) | $ 0.74 | ||
Number of shares (in shares) | 6.8 | 6.8 | 6.9 |
Face amount | $ 171 | ||
Net amount | $ 167 | ||
Annual dividend rate spread | 2.17% | ||
Series 11QR | |||
Disclosure of classes of share capital [line items] | |||
Number of shares (in shares) | 1.2 | 1.2 | 1.1 |
Face amount | $ 29 | ||
Net amount | $ 28 | ||
Annual dividend rate spread | 2.17% | ||
Series 8R and Series 10R | |||
Disclosure of classes of share capital [line items] | |||
Redemption price per share (in CAD per share) | $ 25 | ||
Series 9QR and Series 11QR- on redemption date and every five years thereafter | |||
Disclosure of classes of share capital [line items] | |||
Redemption price per share (in CAD per share) | 25 | ||
Preference Shares, Class A, Series 9QR and Series 11QR - on any other date | |||
Disclosure of classes of share capital [line items] | |||
Redemption price per share (in CAD per share) | $ 25.50 | ||
Series 2021-1 | |||
Disclosure of classes of share capital [line items] | |||
Annual dividend rate | 3.60% | ||
Number of shares (in shares) | 1 | ||
Face amount | $ 1,000 | ||
Net amount | $ 987 | ||
Annual dividend rate spread | 2.604% |
Interests in Other Entities - N
Interests in Other Entities - Narrative (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Oct. 12, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Joint Ventures And Associates [Line Items] | |||
Dividends received from investments accounted for using equity method, classified as investing activities | $ 27 | $ 382 | |
Bottom of range | |||
Disclosure Of Joint Ventures And Associates [Line Items] | |||
Interest in joint ventures and associates | 24.99% | ||
Top of range | |||
Disclosure Of Joint Ventures And Associates [Line Items] | |||
Interest in joint ventures and associates | 50% | ||
ABSLAMC | |||
Disclosure Of Joint Ventures And Associates [Line Items] | |||
Decrease in ownership of joint venture | 12.50% | ||
Proceeds from issuing shares | $ 430 | ||
Before tax gain on sale of stock | 362 | ||
After tax gain on sale of stock | $ 297 | ||
Proportion of ownership interest in joint venture | 36.50% | ||
OCI reclassified | $ 9 | ||
Canadian real estate joint ventures | |||
Disclosure Of Joint Ventures And Associates [Line Items] | |||
Increase in equity method investments | 69 | 29 | |
Joint operations | |||
Disclosure Of Joint Ventures And Associates [Line Items] | |||
Investment properties and other assets | 2,228 | 2,185 | |
Fair value of jointly controlled assets | 2,306 | 2,278 | |
Joint ventures where entity is venturer | |||
Disclosure Of Joint Ventures And Associates [Line Items] | |||
Rental payments | 17 | $ 17 | |
Future rental payments to joint ventures and associates | $ 167 | ||
Rental lease term | 10 years |
Interests in Other Entities - F
Interests in Other Entities - Financial Information of Joint Ventures and Associates (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Interests In Other Entities [Abstract] | ||
Carrying amount of interests in joint ventures and associates | $ 1,594 | $ 1,652 |
Our share of: | ||
Net income (loss) | (5) | 122 |
Other comprehensive income (loss) | (109) | (14) |
Total comprehensive income (loss) | $ (114) | $ 108 |
Interests in Other Entities - I
Interests in Other Entities - Interest in Unconsolidated Structured Entities (Details) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Joint ventures | Investment funds | ||
Disclosure of unconsolidated structured entities [line items] | ||
Carrying amount | $ 82 | $ 156 |
Debt securities | Securitization entities - third-party managed | ||
Disclosure of unconsolidated structured entities [line items] | ||
Carrying amount | 9,155 | 9,057 |
Maximum exposure to loss | 9,155 | 9,057 |
Cash, cash equivalents and short-term securities | Securitization entities - third-party managed | ||
Disclosure of unconsolidated structured entities [line items] | ||
Carrying amount | 790 | 1,084 |
Maximum exposure to loss | 790 | 1,084 |
Equity securities | Investment funds - third-party managed | ||
Disclosure of unconsolidated structured entities [line items] | ||
Carrying amount | 5,766 | 7,411 |
Maximum exposure to loss | 5,766 | 7,411 |
Equity securities and Other invested assets | Investment funds – company managed | ||
Disclosure of unconsolidated structured entities [line items] | ||
Carrying amount | 3,365 | 2,978 |
Maximum exposure to loss | 3,365 | 2,978 |
Other invested assets | Limited partnerships - third-party managed | ||
Disclosure of unconsolidated structured entities [line items] | ||
Carrying amount | 2,786 | 2,391 |
Maximum exposure to loss | $ 2,786 | $ 2,391 |
Fee Income - Schedule of Fee In
Fee Income - Schedule of Fee Income (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Analysis of income and expense [abstract] | ||
Fee income from insurance contracts | $ 1,169 | $ 1,175 |
Distribution fees | 868 | 959 |
Fund management and other asset-based fees | 4,922 | 4,981 |
Administrative service and other fees | 1,087 | 887 |
Total fee income | $ 8,046 | $ 8,002 |
Operating Expenses, Commissio_3
Operating Expenses, Commissions, and Premium Taxes - Schedule of Operating Expenses (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Operating expenses: | ||
Employee expenses | $ 5,107 | $ 5,102 |
Premises and equipment | 216 | 182 |
Capital asset depreciation | 241 | 245 |
Service fees | 1,152 | 1,101 |
Amortization of intangible assets | 287 | 193 |
Impairment of intangible assets | 18 | 9 |
Impairment of goodwill | 170 | 0 |
Other expenses | 1,850 | 1,747 |
Operating expenses | 9,041 | 8,579 |
Commissions | 2,836 | 2,809 |
Premium taxes | 487 | 429 |
Total operating expenses, commissions and premium taxes | 12,364 | 11,817 |
Employee Expenses [Abstract] | ||
Salaries, bonus, employee benefits | 4,846 | 4,320 |
Share-based payments | 227 | 757 |
Other personnel costs | 34 | 25 |
Total employee expenses | $ 5,107 | $ 5,102 |
Share-Based Payments - Narrativ
Share-Based Payments - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2022 CAD ($) shares day $ / shares | Dec. 31, 2021 CAD ($) $ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Average share price at the date of exercise of stock options (in CAD per share) | $ / shares | $ 64 | $ 64.86 |
Compensation expense | $ 227,000,000 | $ 757,000,000 |
Weighted average share price, share options granted (in CAD per share) | $ / shares | $ 9.64 | $ 8.73 |
ESOP offering window period | 6 months | |
Liabilities accrued | $ 232,000,000 | $ 377,000,000 |
Stock Option | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Vesting period | 4 years | |
Maximum exercise period | 10 years | |
Maximum number of common shares that may be issued under the Executive Stock Option Plan (in shares) | shares | 29,525,000 | |
Compensation expense | $ 7,000,000 | 6,000,000 |
Employee Share Ownership Plan | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Compensation expense | $ 9,000,000 | 9,000,000 |
Required service period | 1 year | |
Employee's contribution, percentage match | 50% | |
Annual compensation match maximum, amount | $ 1,500 | |
U.S. Employee Stock Purchase Plan | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Annual compensation match maximum, amount | $ 25,000 | |
Sun Share Plan | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of other equity instruments granted in share-based payment arrangement (shares) | shares | 1 | |
Number of trading days prior to grant date used for unit valuation | day | 5 | |
General unit holding period | 36 months | |
MFS Investment Management Share-Based Awards | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Vesting period | 4 years | |
Compensation expense | $ 168,000,000 | 529,000,000 |
Liabilities accrued | 1,020,000,000 | 1,088,000,000 |
MFS Investment Management Stock Options, Restricted Shares, and Outstanding Shares | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Liabilities accrued | $ 811,000,000 | $ 848,000,000 |
Bottom of range | Employee Share Ownership Plan | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Employee contribution election | 1% | |
Bottom of range | U.S. Employee Stock Purchase Plan | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Employee contribution election | 1% | |
Discount rate | 10% | |
Bottom of range | Sun Share Plan | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Performance factor multiplier | 0 | |
Top of range | Employee Share Ownership Plan | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Employee contribution election | 20% | |
Employee's annual compensation, percentage match | 5% | |
Top of range | U.S. Employee Stock Purchase Plan | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Employee contribution election | 10% | |
Top of range | Sun Share Plan | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Performance factor multiplier | 2 |
Share-Based Payments - Activiti
Share-Based Payments - Activities in Stock Option Plans (Details) shares in Thousands | 12 Months Ended | |
Dec. 31, 2022 shares $ / shares | Dec. 31, 2021 shares $ / shares | |
Number of stock options (thousands) | ||
Beginning balance (in shares) | shares | 3,042 | 3,173 |
Granted (in shares) | shares | 709 | 769 |
Exercised (in shares) | shares | (115) | (900) |
Forfeited (in shares) | shares | (47) | 0 |
Ending balance (in shares) | shares | 3,589 | 3,042 |
Exercisable, December 31 (in shares) | shares | 1,785 | 1,223 |
Weighted average exercise price | ||
Beginning balance (in CAD per share) | $ / shares | $ 55.85 | $ 49.65 |
Granted (in CAD per share) | $ / shares | 68.12 | 63.39 |
Exercised (in CAD per share) | $ / shares | 45.94 | 40.44 |
Forfeited (in CAD per share) | $ / shares | 62.38 | 0 |
Ending balance (in CAD per share) | $ / shares | 58.51 | 55.85 |
Exercisable, December 31 (in CAD per share) | $ / shares | $ 53.33 | $ 50.22 |
Share-Based Payments - Share Ba
Share-Based Payments - Share Based Options by Exercise Price (Details) shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 shares $ / shares | Dec. 31, 2021 shares $ / shares | Dec. 31, 2020 shares $ / shares | |
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of stock options (in shares) | shares | 3,589 | 3,042 | 3,173 |
Weighted average exercise price (in CAD per share) | $ 58.51 | $ 55.85 | $ 49.65 |
$36.98 to $45.00 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of stock options (in shares) | shares | 206 | ||
Weighted average remaining contractual life (years) | 1 year 11 months 15 days | ||
Weighted average exercise price (in CAD per share) | $ 39.80 | ||
$36.98 to $45.00 | Bottom of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of exercise prices (in CAD per share) | 36.98 | ||
$36.98 to $45.00 | Top of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of exercise prices (in CAD per share) | $ 45 | ||
$45.01 to $55.00 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of stock options (in shares) | shares | 1,228 | ||
Weighted average remaining contractual life (years) | 4 years 1 month 20 days | ||
Weighted average exercise price (in CAD per share) | $ 51.21 | ||
$45.01 to $55.00 | Bottom of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of exercise prices (in CAD per share) | 45.01 | ||
$45.01 to $55.00 | Top of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of exercise prices (in CAD per share) | $ 55 | ||
$55.01 to $65.00 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of stock options (in shares) | shares | 1,257 | ||
Weighted average remaining contractual life (years) | 6 years 10 months 6 days | ||
Weighted average exercise price (in CAD per share) | $ 62.19 | ||
$55.01 to $65.00 | Bottom of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of exercise prices (in CAD per share) | 55.01 | ||
$55.01 to $65.00 | Top of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of exercise prices (in CAD per share) | $ 65 | ||
$65.01 to $68.12 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of stock options (in shares) | shares | 898 | ||
Weighted average remaining contractual life (years) | 8 years 11 months 23 days | ||
Weighted average exercise price (in CAD per share) | $ 67.64 | ||
$65.01 to $68.12 | Bottom of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of exercise prices (in CAD per share) | 65.01 | ||
$65.01 to $68.12 | Top of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of exercise prices (in CAD per share) | $ 68.12 | ||
Total stock options | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of stock options (in shares) | shares | 3,589 | ||
Weighted average remaining contractual life (years) | 6 years 2 months 4 days | ||
Weighted average exercise price (in CAD per share) | $ 58.51 |
Share-Based Payments - Weighted
Share-Based Payments - Weighted Average Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2022 year $ / shares | Dec. 31, 2021 year $ / shares | |
Share-Based Payment Arrangements [Abstract] | ||
Risk-free interest rate | 1.80% | 0.90% |
Expected volatility | 23.70% | 24.90% |
Expected dividend yield | 4% | 4% |
Expected life of the option (in years) | year | 6.3 | 6.3 |
Exercise price (in CAD per share) | $ / shares | $ 68.12 | $ 63.39 |
Share-Based Payments - Other Sh
Share-Based Payments - Other Share Based Payment Plan (Details) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 CAD ($) shares | Dec. 31, 2021 CAD ($) shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Units outstanding (in shares) | shares | 5,385 | 5,746 |
Liabilities accrued | $ 232,000 | $ 377,000 |
Compensation expense | 227,000 | 757,000 |
Sun Share Units and Deferred Share Units (DSU) | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Compensation expense | 43,000 | 213,000 |
Income tax expense (benefit) | $ (9,000) | $ (54,000) |
Sun Shares | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Units outstanding (in shares) | shares | 4,675 | 4,817 |
Liabilities accrued | $ 188,000 | $ 314,000 |
DSUs | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Units outstanding (in shares) | shares | 710 | 929 |
Liabilities accrued | $ 44,000 | $ 63,000 |
Share-Based Payments - Share-Ba
Share-Based Payments - Share-Based Payment Plans of MFS (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Compensation expense | $ 227 | $ 757 |
MFS Investment Management Share-Based Awards | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Compensation expense | 168 | 529 |
Income tax expense (benefit) | $ (49) | $ (79) |
Income Taxes - Temporary Differ
Income Taxes - Temporary Differences in Deferred Tax Assets and Liabilities (Details) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Income Taxes [Abstract] | ||
Deferred tax assets | $ 2,282 | $ 1,848 |
Deferred tax liabilities | 630 | 322 |
Net deferred tax asset | $ 1,652 | $ 1,526 |
Income Taxes - Movement in Net
Income Taxes - Movement in Net Deferred Tax Assets (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of changes in deferred tax assets [abstract] | ||
Beginning balance, deferred tax assets | $ 1,526 | $ 1,251 |
Acquisitions (disposals) through business combinations | (226) | |
Charged to statement of operations | 93 | 196 |
Charged to other comprehensive income | 237 | 85 |
Charged to equity, other than other comprehensive income | 15 | |
Foreign exchange rate movements and Other | 7 | (6) |
Ending balance, deferred tax assets | 1,652 | 1,526 |
Investments | ||
Reconciliation of changes in deferred tax assets [abstract] | ||
Beginning balance, deferred tax assets | (1,178) | (1,240) |
Acquisitions (disposals) through business combinations | 1 | |
Charged to statement of operations | 492 | 53 |
Charged to other comprehensive income | 135 | 25 |
Charged to equity, other than other comprehensive income | 0 | |
Foreign exchange rate movements and Other | 13 | (16) |
Ending balance, deferred tax assets | (537) | (1,178) |
Policy liabilities | ||
Reconciliation of changes in deferred tax assets [abstract] | ||
Beginning balance, deferred tax assets | 1,727 | 1,621 |
Acquisitions (disposals) through business combinations | 10 | |
Charged to statement of operations | (380) | 48 |
Charged to other comprehensive income | 85 | 30 |
Charged to equity, other than other comprehensive income | 0 | |
Foreign exchange rate movements and Other | (19) | 28 |
Ending balance, deferred tax assets | 1,423 | 1,727 |
Deferred acquisition costs | ||
Reconciliation of changes in deferred tax assets [abstract] | ||
Beginning balance, deferred tax assets | 74 | 82 |
Acquisitions (disposals) through business combinations | 0 | |
Charged to statement of operations | 4 | (9) |
Charged to other comprehensive income | 0 | 0 |
Charged to equity, other than other comprehensive income | 0 | |
Foreign exchange rate movements and Other | 6 | 1 |
Ending balance, deferred tax assets | 84 | 74 |
Losses available for carry forward | ||
Reconciliation of changes in deferred tax assets [abstract] | ||
Beginning balance, deferred tax assets | 853 | 708 |
Acquisitions (disposals) through business combinations | 32 | |
Charged to statement of operations | (10) | 125 |
Charged to other comprehensive income | 92 | 17 |
Charged to equity, other than other comprehensive income | 15 | |
Foreign exchange rate movements and Other | 4 | 3 |
Ending balance, deferred tax assets | 986 | 853 |
Pension and other employee benefits | ||
Reconciliation of changes in deferred tax assets [abstract] | ||
Beginning balance, deferred tax assets | 301 | 322 |
Acquisitions (disposals) through business combinations | 8 | |
Charged to statement of operations | (6) | (14) |
Charged to other comprehensive income | (75) | 9 |
Charged to equity, other than other comprehensive income | 0 | |
Foreign exchange rate movements and Other | 14 | (16) |
Ending balance, deferred tax assets | 242 | 301 |
Other | ||
Reconciliation of changes in deferred tax assets [abstract] | ||
Beginning balance, deferred tax assets | (251) | (242) |
Acquisitions (disposals) through business combinations | (277) | |
Charged to statement of operations | (7) | (7) |
Charged to other comprehensive income | 0 | 4 |
Charged to equity, other than other comprehensive income | 0 | |
Foreign exchange rate movements and Other | (11) | (6) |
Ending balance, deferred tax assets | $ (546) | $ (251) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | $ 2,282 | $ 1,848 |
Unused tax losses for which a deferred tax asset has not been recognised | 696 | 499 |
Capital tax losses for which no deferred tax asset recognised | 181 | 137 |
Temporary differences associated with investments in subsidiaries, branches, joint ventures and associates for which a deferred tax liability has not been recognised | $ 5,711 | $ 5,452 |
Applicable tax rates | 27.75% | 26.30% |
Benefit related to remeasurement of deferred tax balances | $ 86 | |
Losses available for carry forward | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Accumulated non-capital tax losses | $ 4,349 | $ 3,758 |
Bottom of range | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Applicable tax rates | 0% | |
Top of range | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Applicable tax rates | 25% | |
United States | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Net capital losses | $ 10 | 7 |
United States | Losses available for carry forward | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 2 | 3 |
Canada | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Net capital losses | 0 | 13 |
Capital losses | 275 | 178 |
United Kingdom | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Capital losses | $ 434 | $ 452 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Current income tax expense (benefit): | ||
Current year | $ 781 | $ 964 |
Adjustments in respect of prior years, including resolution of tax disputes | (67) | (41) |
Total current income tax expense (benefit) | 714 | 923 |
Deferred income tax expense (benefit): | ||
Origination and reversal of temporary differences | (67) | (204) |
Adjustments in respect of prior years, including resolution of tax disputes | 48 | (8) |
Tax expense (benefit) arising from unrecognized tax losses | 18 | 6 |
Tax rate and other legislative changes | (92) | 10 |
Total deferred income tax expense (benefit) | (93) | (196) |
Total income tax expense (benefit) | $ 621 | $ 727 |
Income Taxes - Income Tax Benef
Income Taxes - Income Tax Benefit (Expense) Recognized Directly in Equity (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Recognized in other comprehensive income: | ||
Current income tax benefit (expense) | $ 2 | $ 3 |
Deferred income tax benefit (expense) | 237 | 85 |
Total income tax benefit (expense) included in other comprehensive income (loss) | 239 | 88 |
Deferred income tax benefit (expense) | 15 | 0 |
Total income tax benefit (expense) recorded in equity, including tax benefit (expense) recorded in Other comprehensive income | $ 254 | $ 88 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes [Abstract] | ||
Total net income (loss) | $ 3,302 | $ 4,370 |
Income tax expense (benefit) | 621 | 727 |
Total net income (loss) before income taxes | 3,923 | 5,097 |
Reconciliation of accounting profit multiplied by applicable tax rates [abstract] | ||
Taxes at the combined Canadian federal and provincial statutory income tax rate | 1,089 | 1,338 |
Higher (lower) effective rates on income subject to taxation in foreign jurisdictions | (286) | (231) |
Tax-exempt investment (income) loss | (128) | (345) |
Adjustments in respect of prior periods, including resolution of tax disputes | (19) | (49) |
Tax (benefit) cost of unrecognized tax losses and tax credits | 18 | 6 |
Tax rate and other legislative changes | (92) | 10 |
Other | 39 | (2) |
Total income tax expense (benefit) | $ 621 | $ 727 |
Reconciliation of average effective tax rate and applicable tax rate [abstract] | ||
Taxes at the combined Canadian federal and provincial statutory income tax rate | 27.75% | 26.30% |
Higher (lower) effective rates on income subject to taxation in foreign jurisdictions | (7.40%) | (4.50%) |
Tax-exempt investment (income) loss | (3.30%) | (6.80%) |
Adjustments in respect of prior periods, including resolution of tax disputes | (0.50%) | (1.00%) |
Tax (benefit) cost of unrecognized tax losses and tax credits | 0.50% | 0.10% |
Tax rate and other legislative changes | (2.30%) | 0.20% |
Other | 1% | 0% |
Effective income tax rate | 15.80% | 14.30% |
Capital Management - LICAT (Det
Capital Management - LICAT (Details) | Dec. 31, 2022 |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
LICAT Ratio | 127% |
LICAT target ratio | 100% |
LICAT minimum ratio | 90% |
Capital Management - Schedule o
Capital Management - Schedule of Total Capital (Details) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Entity Location [Line Items] | |||
Equity | $ 29,377 | $ 28,073 | |
Total capital | 36,253 | 34,698 | |
Subordinated debt | |||
Entity Location [Line Items] | |||
Borrowings | 6,676 | 6,425 | |
Innovative capital instruments | |||
Entity Location [Line Items] | |||
Borrowings | 200 | 200 | |
Shares | |||
Entity Location [Line Items] | |||
Equity | 25,211 | 24,075 | |
Participating policyholders | |||
Entity Location [Line Items] | |||
Equity | 1,837 | 1,700 | $ 1,368 |
Non-controlling interests’ equity | |||
Entity Location [Line Items] | |||
Equity | 90 | 59 | 25 |
Preferred shares | Shares | |||
Entity Location [Line Items] | |||
Equity | $ 2,239 | $ 2,239 | $ 2,257 |
Segregated Funds - Segregated F
Segregated Funds - Segregated Fund Types (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |
Percent of fixed income funds invested in diversified equities or high-yield bonds | 25% |
Bottom of range | Money market | |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |
Type of funds by percentage of total investments | 1% |
Bottom of range | Fixed income | |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |
Type of funds by percentage of total investments | 5% |
Bottom of range | Balanced | |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |
Type of funds by percentage of total investments | 40% |
Bottom of range | Equity | |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |
Type of funds by percentage of total investments | 45% |
Top of range | Money market | |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |
Type of funds by percentage of total investments | 5% |
Top of range | Fixed income | |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |
Type of funds by percentage of total investments | 10% |
Top of range | Balanced | |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |
Type of funds by percentage of total investments | 45% |
Top of range | Equity | |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |
Type of funds by percentage of total investments | 50% |
Segregated Funds - Investments
Segregated Funds - Investments for Account of Segregated Fund Holders (Details) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Equity securities | $ 7,148 | $ 9,113 |
Debt securities | 75,902 | 88,727 |
Cash, cash equivalents and short-term securities | 11,219 | 12,278 |
Investment properties | 10,102 | 9,109 |
Other assets | 7,810 | 5,434 |
Total assets | 330,906 | 345,370 |
Less: Liabilities arising from investing activities | 301,529 | 317,297 |
Total investments for account of segregated fund holders | 125,292 | 139,996 |
Investments for account of segregated fund holders | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Segregated and mutual fund units | 113,070 | 125,944 |
Equity securities | 8,251 | 9,963 |
Debt securities | 2,858 | 3,410 |
Cash, cash equivalents and short-term securities | 805 | 778 |
Investment properties | 438 | 446 |
Mortgages | 17 | 19 |
Other assets | 130 | 141 |
Total assets | 125,569 | 140,701 |
Investment for account of segregated fund holders, liabilities arising from investing activities | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Less: Liabilities arising from investing activities | $ 277 | $ 705 |
Segregated Funds - Changes in I
Segregated Funds - Changes in Insurance Contracts and Investment Contracts for Account of Segregated Fund Holders (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Insurance Contracts And Investment Contracts For Account Of Segregated Fund Holders [Roll Forward] | ||
Balance as at January 1 | $ 139,996 | |
Deductions from segregated funds: | ||
Balance as at December 31 | 125,292 | $ 139,996 |
Investments and insurance contracts for account of segregated fund holders | ||
Insurance Contracts And Investment Contracts For Account Of Segregated Fund Holders [Roll Forward] | ||
Balance as at January 1 | 139,996 | 125,921 |
Additions to segregated funds: | ||
Deposits | 14,266 | 13,509 |
Net transfer (to) from general funds | (1,149) | (351) |
Net realized and unrealized gains (losses) | (18,669) | 9,516 |
Other investment income | 4,959 | 6,558 |
Total additions | (593) | 29,232 |
Deductions from segregated funds: | ||
Payments to policyholders and their beneficiaries | 12,218 | 12,966 |
Management fees | 1,188 | 1,276 |
Taxes and other expenses | 392 | 435 |
Foreign exchange rate movements | 313 | 480 |
Total deductions | 14,111 | 15,157 |
Net additions (deductions) | (14,704) | 14,075 |
Balance as at December 31 | $ 125,292 | $ 139,996 |
Commitments, Guarantees and C_3
Commitments, Guarantees and Contingencies - Lease Commitments, Contractual Commitments, and Letters of Credit (Details) - CAD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | ||
Total future rental payments for the remainder of the operating leases | $ 1,000,000,000 | $ 950,000,000 |
Contractual commitments outstanding | 5,070,000,000 | 4,211,000,000 |
Maximum borrowing capacity | 889,000,000 | 839,000,000 |
Letters of credit outstanding | $ 110,000,000 | $ 105,000,000 |
Commitments, Guarantees and C_4
Commitments, Guarantees and Contingencies - Consolidating Summary Financial Information (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of operating segments [line items] | ||
Outstanding preferred shares subject to the guarantee (in shares) | 0 | |
Revenue | $ 23,322,000,000 | $ 35,688,000,000 |
Shareholders’ net income (loss) | 3,130,000,000 | 4,035,000,000 |
Invested assets | 177,292,000,000 | 184,522,000,000 |
Total other general fund assets | 28,322,000,000 | 20,852,000,000 |
Investments for account of segregated fund holders | 125,292,000,000 | 139,996,000,000 |
Insurance contract liabilities | 140,418,000,000 | 147,811,000,000 |
Investment contract liabilities | 3,314,000,000 | 3,368,000,000 |
Total other general fund liabilities | 32,505,000,000 | 26,122,000,000 |
Subordinated Debt Issued May 15, 1998 | ||
Disclosure of operating segments [line items] | ||
Principal amount | $ 150,000,000 | |
Interest rate | 6.30% | |
Consolidation Adjustments | ||
Disclosure of operating segments [line items] | ||
Revenue | $ 493,000,000 | (1,219,000,000) |
Shareholders’ net income (loss) | (2,798,000,000) | (3,885,000,000) |
Invested assets | (34,738,000,000) | (34,245,000,000) |
Total other general fund assets | (27,463,000,000) | (48,715,000,000) |
Investments for account of segregated fund holders | 0 | 0 |
Insurance contract liabilities | (8,527,000,000) | (10,283,000,000) |
Investment contract liabilities | 0 | 0 |
Total other general fund liabilities | (19,815,000,000) | (41,849,000,000) |
Parent Company | Reportable Legal Entities | ||
Disclosure of operating segments [line items] | ||
Revenue | 603,000,000 | 320,000,000 |
Shareholders’ net income (loss) | 3,135,000,000 | 4,035,000,000 |
Invested assets | 31,897,000,000 | 30,984,000,000 |
Total other general fund assets | 6,594,000,000 | 12,462,000,000 |
Investments for account of segregated fund holders | 0 | 0 |
Insurance contract liabilities | 0 | 0 |
Investment contract liabilities | 0 | 0 |
Total other general fund liabilities | 9,916,000,000 | 16,020,000,000 |
Subsidiary Issuer | Reportable Legal Entities | Sun Life Assurance (consolidated) | ||
Disclosure of operating segments [line items] | ||
Revenue | 12,608,000,000 | 27,527,000,000 |
Shareholders’ net income (loss) | 1,825,000,000 | 2,823,000,000 |
Invested assets | 167,638,000,000 | 174,777,000,000 |
Total other general fund assets | 26,400,000,000 | 24,580,000,000 |
Investments for account of segregated fund holders | 125,242,000,000 | 139,929,000,000 |
Insurance contract liabilities | 140,415,000,000 | 147,989,000,000 |
Investment contract liabilities | 3,314,000,000 | 3,368,000,000 |
Total other general fund liabilities | 24,638,000,000 | 24,249,000,000 |
Subsidiary Issuer | Reportable Legal Entities | Other subsidiaries of SLF Inc. | ||
Disclosure of operating segments [line items] | ||
Revenue | 9,618,000,000 | 9,060,000,000 |
Shareholders’ net income (loss) | 968,000,000 | 1,062,000,000 |
Invested assets | 12,495,000,000 | 13,006,000,000 |
Total other general fund assets | 22,791,000,000 | 32,525,000,000 |
Investments for account of segregated fund holders | 50,000,000 | 67,000,000 |
Insurance contract liabilities | 8,530,000,000 | 10,105,000,000 |
Investment contract liabilities | 0 | 0 |
Total other general fund liabilities | $ 17,766,000,000 | $ 27,702,000,000 |
Commitments, Guarantees and C_5
Commitments, Guarantees and Contingencies - Legal and Regulatory Proceedings (Details) | Dec. 31, 2022 lawsuit |
Fehr et al v Sun Life and Alamwala v Sun Life | |
Disclosure of contingent liabilities [line items] | |
Number of class action lawsuits filed | 2 |
Related Party Transactions - Ag
Related Party Transactions - Aggregate Compensation to Executive Team and Directors (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 CAD ($) individual | Dec. 31, 2021 CAD ($) individual | |
Executive team | ||
Disclosure of transactions between related parties [line items] | ||
Number of individuals | individual | 13 | 14 |
Base salary and annual incentive compensation | $ 19 | $ 22 |
Additional short-term benefits and other | 1 | 1 |
Share-based long-term incentive compensation | 32 | 36 |
Value of pension and post-retirement benefits | 2 | 6 |
Severance | $ 0 | $ 6 |
Directors | ||
Disclosure of transactions between related parties [line items] | ||
Number of individuals | individual | 11 | 13 |
Base salary and annual incentive compensation | $ 0 | $ 0 |
Additional short-term benefits and other | 0 | 1 |
Share-based long-term incentive compensation | 3 | 2 |
Value of pension and post-retirement benefits | 0 | 0 |
Severance | $ 0 | $ 0 |
Pension Plans and Other Post-_3
Pension Plans and Other Post-Retirement Benefits - Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 CAD ($) plan Year | Dec. 31, 2021 CAD ($) | |
Disclosure of defined benefit plans [line items] | ||
Number of small defined benefit plans in the Philippines open to new members | plan | 1 | |
Age requirement | Year | 50 | |
Requisite service period | 10 years | |
Equity investments | 3% | 3% |
Post-employment benefit expense, defined contribution plans | $ | $ 160 | $ 142 |
Fixed income investments | Level 1 | ||
Disclosure of defined benefit plans [line items] | ||
Equity investments | 2% | 4% |
Pension Plans and Other Post-_4
Pension Plans and Other Post-Retirement Benefits - Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of defined benefit plans [line items] | ||
Net defined benefit liability (asset) - beginning balance | $ 445 | |
Change in defined benefit obligations: | ||
Current service cost | 56 | $ 66 |
Interest income (cost) | (13) | (13) |
Foreign exchange rate movement | (4) | (3) |
Change in plan assets: | ||
Administrative expense | (1) | (1) |
Return on plan assets (excluding amounts included in net interest expense) | (825) | (234) |
Fair value of plan assets | 2,799 | 3,643 |
Defined benefit (obligation) | (2,969) | (4,088) |
Net defined benefit liability (asset) - ending balance | 170 | 445 |
Pension | ||
Disclosure of defined benefit plans [line items] | ||
Net defined benefit liability (asset) - beginning balance | 193 | |
Change in defined benefit obligations: | ||
Current service cost | 49 | 59 |
Interest income (cost) | (5) | (6) |
Foreign exchange rate movement | (1) | (3) |
Change in plan assets: | ||
Administrative expense | (1) | (1) |
Return on plan assets (excluding amounts included in net interest expense) | (825) | (234) |
Fair value of plan assets | 2,799 | 3,643 |
Defined benefit (obligation) | (2,763) | (3,836) |
Net defined benefit liability (asset) - ending balance | (36) | 193 |
Post-retirement benefits | ||
Disclosure of defined benefit plans [line items] | ||
Net defined benefit liability (asset) - beginning balance | 252 | |
Change in defined benefit obligations: | ||
Current service cost | 7 | 7 |
Interest income (cost) | (8) | (7) |
Foreign exchange rate movement | (3) | 0 |
Change in plan assets: | ||
Administrative expense | 0 | 0 |
Return on plan assets (excluding amounts included in net interest expense) | 0 | 0 |
Fair value of plan assets | 0 | 0 |
Defined benefit (obligation) | (206) | (252) |
Net defined benefit liability (asset) - ending balance | 206 | 252 |
Present value of defined benefit obligation | ||
Disclosure of defined benefit plans [line items] | ||
Net defined benefit liability (asset) - beginning balance | 4,088 | 4,337 |
Change in defined benefit obligations: | ||
Current service cost | 56 | 66 |
Interest income (cost) | (114) | (105) |
Actuarial losses (gains) | (1,078) | (192) |
Benefits paid | (208) | (207) |
Foreign exchange rate movement | (3) | (21) |
Change in plan assets: | ||
Net defined benefit liability (asset) - ending balance | 2,969 | 4,088 |
Present value of defined benefit obligation | Pension | ||
Disclosure of defined benefit plans [line items] | ||
Net defined benefit liability (asset) - beginning balance | 3,836 | 4,060 |
Change in defined benefit obligations: | ||
Current service cost | 49 | 59 |
Interest income (cost) | (106) | (98) |
Actuarial losses (gains) | (1,027) | (169) |
Benefits paid | (194) | (192) |
Foreign exchange rate movement | (7) | (20) |
Change in plan assets: | ||
Net defined benefit liability (asset) - ending balance | 2,763 | 3,836 |
Present value of defined benefit obligation | Post-retirement benefits | ||
Disclosure of defined benefit plans [line items] | ||
Net defined benefit liability (asset) - beginning balance | 252 | 277 |
Change in defined benefit obligations: | ||
Current service cost | 7 | 7 |
Interest income (cost) | (8) | (7) |
Actuarial losses (gains) | (51) | (23) |
Benefits paid | (14) | (15) |
Foreign exchange rate movement | 4 | (1) |
Change in plan assets: | ||
Net defined benefit liability (asset) - ending balance | 206 | 252 |
Plan assets | ||
Disclosure of defined benefit plans [line items] | ||
Net defined benefit liability (asset) - beginning balance | (3,643) | (3,909) |
Change in defined benefit obligations: | ||
Interest income (cost) | 101 | 92 |
Benefits paid | (208) | (207) |
Foreign exchange rate movement | (10) | (25) |
Change in plan assets: | ||
Administrative expense | (1) | (1) |
Return on plan assets (excluding amounts included in net interest expense) | (825) | (234) |
Employer contributions | 99 | 109 |
Net defined benefit liability (asset) - ending balance | (2,799) | (3,643) |
Plan assets | Pension | ||
Disclosure of defined benefit plans [line items] | ||
Net defined benefit liability (asset) - beginning balance | (3,643) | (3,909) |
Change in defined benefit obligations: | ||
Interest income (cost) | 101 | 92 |
Benefits paid | (194) | (192) |
Foreign exchange rate movement | (10) | (25) |
Change in plan assets: | ||
Administrative expense | (1) | (1) |
Return on plan assets (excluding amounts included in net interest expense) | (825) | (234) |
Employer contributions | 85 | 94 |
Net defined benefit liability (asset) - ending balance | (2,799) | (3,643) |
Plan assets | Post-retirement benefits | ||
Disclosure of defined benefit plans [line items] | ||
Net defined benefit liability (asset) - beginning balance | 0 | 0 |
Change in defined benefit obligations: | ||
Interest income (cost) | 0 | 0 |
Benefits paid | (14) | (15) |
Foreign exchange rate movement | 0 | 0 |
Change in plan assets: | ||
Administrative expense | 0 | 0 |
Return on plan assets (excluding amounts included in net interest expense) | 0 | 0 |
Employer contributions | 14 | 15 |
Net defined benefit liability (asset) - ending balance | $ 0 | $ 0 |
Pension Plans and Other Post-_5
Pension Plans and Other Post-Retirement Benefits - Schedule of Net Benefit Expense (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of defined benefit plans [line items] | ||
Current service cost | $ 56 | $ 66 |
Administrative expense | 1 | 1 |
Net interest expense (income) | 13 | 13 |
Other long-term employee benefit losses (gains) | (6) | (3) |
Net benefit expense | 64 | 77 |
Pension | ||
Disclosure of defined benefit plans [line items] | ||
Current service cost | 49 | 59 |
Administrative expense | 1 | 1 |
Net interest expense (income) | 5 | 6 |
Other long-term employee benefit losses (gains) | 0 | 0 |
Net benefit expense | 55 | 66 |
Post-retirement benefits | ||
Disclosure of defined benefit plans [line items] | ||
Current service cost | 7 | 7 |
Administrative expense | 0 | 0 |
Net interest expense (income) | 8 | 7 |
Other long-term employee benefit losses (gains) | (6) | (3) |
Net benefit expense | $ 9 | $ 11 |
Pension Plans and Other Post-_6
Pension Plans and Other Post-Retirement Benefits - Schedule of Components of Defined Benefit Costs Recognized In Other Comprehensive Income (Loss) (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of defined benefit plans [line items] | ||
Return on plan assets (excluding amounts included in net interest expense) | $ (825) | $ (234) |
Actuarial gains (losses) arising from changes in demographic assumptions | 18 | 2 |
Actuarial gains (losses) arising from changes in financial assumptions | 1,072 | 200 |
Actuarial gains (losses) arising from experience adjustments | (18) | (13) |
Foreign exchange rate movement | (4) | (3) |
Components of defined benefit costs recognized in Other comprehensive income (loss) | 243 | (48) |
Pension | ||
Disclosure of defined benefit plans [line items] | ||
Return on plan assets (excluding amounts included in net interest expense) | (825) | (234) |
Actuarial gains (losses) arising from changes in demographic assumptions | 18 | 2 |
Actuarial gains (losses) arising from changes in financial assumptions | 1,027 | 187 |
Actuarial gains (losses) arising from experience adjustments | (18) | (20) |
Foreign exchange rate movement | (1) | (3) |
Components of defined benefit costs recognized in Other comprehensive income (loss) | 201 | (68) |
Post-retirement benefits | ||
Disclosure of defined benefit plans [line items] | ||
Return on plan assets (excluding amounts included in net interest expense) | 0 | 0 |
Actuarial gains (losses) arising from changes in demographic assumptions | 0 | 0 |
Actuarial gains (losses) arising from changes in financial assumptions | 45 | 13 |
Actuarial gains (losses) arising from experience adjustments | 0 | 7 |
Foreign exchange rate movement | (3) | 0 |
Components of defined benefit costs recognized in Other comprehensive income (loss) | $ 42 | $ 20 |
Pension Plans and Other Post-_7
Pension Plans and Other Post-Retirement Benefits - Schedule of Actuarial Assumptions (Details) - year | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Canada | ||
To determine defined benefit obligation at end of year: | ||
Discount rate for pension plans | 5% | 3% |
Rate of compensation increase | 2.75% | 2.80% |
To determine net benefit expense for year: | ||
Discount rate for pension plans | 3% | 2.70% |
Rate of compensation increase | 2.80% | 2.80% |
Health care trend rates: | ||
Initial health care trend rate | 5.16% | 5.10% |
Ultimate health care trend rate | 4% | 4% |
Year ultimate health care trend rate reached | 2040 | 2040 |
Mortality rates: | ||
Average duration (in years) of pension obligation | 13 years 2 months 12 days | 16 years 10 months 24 days |
United Kingdom | ||
To determine defined benefit obligation at end of year: | ||
Discount rate for pension plans | 4.75% | 1.90% |
Pension increases | 3.05% | 3.30% |
To determine net benefit expense for year: | ||
Discount rate for pension plans | 1.90% | 1.30% |
Pension increases | 3.30% | 2.95% |
Mortality rates: | ||
Average duration (in years) of pension obligation | 12 years 10 months 24 days | 17 years 4 months 24 days |
United States | ||
To determine defined benefit obligation at end of year: | ||
Discount rate for pension plans | 5.55% | 3% |
To determine net benefit expense for year: | ||
Discount rate for pension plans | 3% | 2.65% |
Health care trend rates: | ||
Initial health care trend rate | 7% | 6.50% |
Ultimate health care trend rate | 5% | 5% |
Year ultimate health care trend rate reached | 2031 | 2025 |
Mortality rates: | ||
Average duration (in years) of pension obligation | 10 years | 12 years 2 months 12 days |
Bottom of range | Canada | ||
To determine defined benefit obligation at end of year: | ||
Pension increases | 0% | 0% |
To determine net benefit expense for year: | ||
Pension increases | 0% | 0% |
Top of range | Canada | ||
To determine defined benefit obligation at end of year: | ||
Pension increases | 0.05% | 0.05% |
To determine net benefit expense for year: | ||
Pension increases | 0.05% | 0.05% |
Male - Individuals currently at age 65 | Canada | ||
Mortality rates: | ||
Life expectancy (in years) for individuals | 23 | 23 |
Male - Individuals currently at age 65 | United Kingdom | ||
Mortality rates: | ||
Life expectancy (in years) for individuals | 23 | 23 |
Male - Individuals currently at age 65 | United States | ||
Mortality rates: | ||
Life expectancy (in years) for individuals | 22 | 22 |
Female - Individuals currently at age 65 | Canada | ||
Mortality rates: | ||
Life expectancy (in years) for individuals | 25 | 25 |
Female - Individuals currently at age 65 | United Kingdom | ||
Mortality rates: | ||
Life expectancy (in years) for individuals | 25 | 25 |
Female - Individuals currently at age 65 | United States | ||
Mortality rates: | ||
Life expectancy (in years) for individuals | 23 | 23 |
Male - At 65 for individuals currently at age 45 | Canada | ||
Mortality rates: | ||
Life expectancy (in years) for individuals | 24 | 24 |
Male - At 65 for individuals currently at age 45 | United Kingdom | ||
Mortality rates: | ||
Life expectancy (in years) for individuals | 25 | 24 |
Male - At 65 for individuals currently at age 45 | United States | ||
Mortality rates: | ||
Life expectancy (in years) for individuals | 23 | 23 |
Female - At 65 for individuals currently at age 45 | Canada | ||
Mortality rates: | ||
Life expectancy (in years) for individuals | 26 | 26 |
Female - At 65 for individuals currently at age 45 | United Kingdom | ||
Mortality rates: | ||
Life expectancy (in years) for individuals | 27 | 27 |
Female - At 65 for individuals currently at age 45 | United States | ||
Mortality rates: | ||
Life expectancy (in years) for individuals | 25 | 25 |
Pension Plans and Other Post-_8
Pension Plans and Other Post-Retirement Benefits - Schedule of Sensitivity Analysis (Details) $ in Millions | Dec. 31, 2022 CAD ($) |
Interest/discount rate sensitivity | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Percentage of reasonably possible decrease in actuarial assumption | 1% |
Percentage of reasonably possible increase in actuarial assumption | 1% |
Rate of compensation increase assumption | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Percentage of reasonably possible decrease in actuarial assumption | 1% |
Percentage of reasonably possible increase in actuarial assumption | 1% |
Health care trend rate assumption | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Percentage of reasonably possible decrease in actuarial assumption | 1% |
Percentage of reasonably possible increase in actuarial assumption | 1% |
Mortality rates | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Percentage of reasonably possible decrease in actuarial assumption | 10% |
Pension | Interest/discount rate sensitivity | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption | $ 391 |
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption | (309) |
Pension | Rate of compensation increase assumption | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption | (39) |
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption | 44 |
Pension | Mortality rates | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption | 64 |
Post-retirement benefits | Interest/discount rate sensitivity | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption | 20 |
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption | (17) |
Post-retirement benefits | Health care trend rate assumption | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption | (10) |
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption | 12 |
Post-retirement benefits | Mortality rates | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Increase (decrease) in defined benefit obligation due to reasonably possible decrease in actuarial assumption | $ 3 |
Pension Plans and Other Post-_9
Pension Plans and Other Post-Retirement Benefits - Schedule of Plan Asset Allocation (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Employee Benefits [Abstract] | ||
Equity investments | 3% | 3% |
Fixed income investments | 65% | 64% |
Real estate investments | 11% | 9% |
Qualifying insurance contract | 15% | 19% |
Other | 6% | 5% |
Total composition of fair value of plan assets | 100% | 100% |
Pension Plans and Other Post_10
Pension Plans and Other Post-Retirement Benefits - Schedule of Expected Contributions (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 CAD ($) | |
Disclosure of defined benefit plans [line items] | |
Expected contributions for the next 12 months | $ 86 |
Pension | |
Disclosure of defined benefit plans [line items] | |
Expected contributions for the next 12 months | 70 |
Post-retirement benefits | |
Disclosure of defined benefit plans [line items] | |
Expected contributions for the next 12 months | $ 16 |
Pension Plans and Other Post_11
Pension Plans and Other Post-Retirement Benefits - Schedule of Expected Future Benefit Payments (Details) $ in Millions | Dec. 31, 2022 CAD ($) |
Disclosure of defined benefit plans [line items] | |
2023 | $ 174 |
2024 | 176 |
2025 | 184 |
2026 | 189 |
2027 | 192 |
2028 to 2032 | 1,008 |
Pension | |
Disclosure of defined benefit plans [line items] | |
2023 | 158 |
2024 | 159 |
2025 | 167 |
2026 | 171 |
2027 | 174 |
2028 to 2032 | 911 |
Post-retirement benefits | |
Disclosure of defined benefit plans [line items] | |
2023 | 16 |
2024 | 17 |
2025 | 17 |
2026 | 18 |
2027 | 18 |
2028 to 2032 | $ 97 |
Earnings (Loss) Per Share - Cal
Earnings (Loss) Per Share - Calculation of Basic and Diluted Earnings Per Share (Details) - CAD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings per share [line items] | ||
Common shareholders' net income (loss) for basic earnings per share | $ 3,060 | $ 3,934 |
Add: Increase in income due to convertible instruments | 10 | 10 |
Common shareholders’ net income (loss) on a diluted basis | $ 3,070 | $ 3,944 |
Weighted average number of common shares outstanding for basic earnings per share (in millions) (in shares) | 586 | 586 |
Add: Dilutive impact of stock options (in millions) (in shares) | 0 | 0 |
Dilutive impact of convertible instruments (in millions) (in shares) | 3 | 4 |
Weighted average number of common shares outstanding on a diluted basis (in shares) | 589 | 590 |
Basic earnings (loss) per share (in CAD per share) | $ 5.22 | $ 6.72 |
Diluted earnings (loss) per share (in CAD per share) | $ 5.21 | $ 6.69 |
Stock Option | ||
Earnings per share [line items] | ||
Stock options excluded from computation of earnings per share (in shares) | 1 | 1 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Summary of Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of analysis of other comprehensive income by item [line items] | ||
Balance, beginning of period | $ 988 | $ 1,594 |
Other comprehensive income (loss) | (310) | (606) |
Balance, end of period | 678 | 988 |
Unrealized foreign currency translation gains (losses), net of hedging activities | ||
Disclosure of analysis of other comprehensive income by item [line items] | ||
Balance, beginning of period | 953 | 1,155 |
Other comprehensive income (loss) | 934 | (202) |
Balance, end of period | 1,887 | 953 |
Unrealized gains (losses) on available-for-sale assets | ||
Disclosure of analysis of other comprehensive income by item [line items] | ||
Balance, beginning of period | 266 | 632 |
Other comprehensive income (loss) | (1,290) | (366) |
Balance, end of period | (1,024) | 266 |
Unrealized gains (losses) on cash flow hedges | ||
Disclosure of analysis of other comprehensive income by item [line items] | ||
Balance, beginning of period | (7) | (13) |
Other comprehensive income (loss) | (11) | 6 |
Balance, end of period | (18) | (7) |
Share of other comprehensive income (loss) in joint ventures and associates | ||
Disclosure of analysis of other comprehensive income by item [line items] | ||
Balance, beginning of period | (47) | (42) |
Other comprehensive income (loss) | (109) | (5) |
Balance, end of period | (156) | (47) |
Remeasurement of defined benefit plans | ||
Disclosure of analysis of other comprehensive income by item [line items] | ||
Balance, beginning of period | (322) | (283) |
Other comprehensive income (loss) | 168 | (39) |
Balance, end of period | (154) | (322) |
Revaluation of property, plant and equipment | ||
Disclosure of analysis of other comprehensive income by item [line items] | ||
Balance, beginning of period | 145 | 145 |
Other comprehensive income (loss) | (2) | 0 |
Balance, end of period | 143 | 145 |
Participating policyholders | ||
Disclosure of analysis of other comprehensive income by item [line items] | ||
Balance, beginning of period | 2 | 5 |
Other comprehensive income (loss) | 21 | (3) |
Balance, end of period | 23 | 2 |
Non-controlling interests’ equity | ||
Disclosure of analysis of other comprehensive income by item [line items] | ||
Balance, beginning of period | 0 | 0 |
Other comprehensive income (loss) | 4 | 0 |
Balance, end of period | 4 | 0 |
Shareholders | ||
Disclosure of analysis of other comprehensive income by item [line items] | ||
Balance, beginning of period | 986 | 1,589 |
Other comprehensive income (loss) | (335) | (603) |
Balance, end of period | $ 651 | $ 986 |
Subsequent Events - Partnership
Subsequent Events - Partnership Agreement (Details) - Partnership Agreement - Bancassurance Partnership $ in Millions | Jan. 20, 2023 CAD ($) |
Disclosure of non-adjusting events after reporting period [line items] | |
Useful life of intangible assets | 15 years |
Initial payment for bancassurance partnership | $ 260 |