Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Disclosure of classes of share capital [line items] | |
Document Type | 40-F |
Document Period End Date | Dec. 31, 2018 |
Amendment Flag | false |
Entity Registrant Name | SUN LIFE FINANCIAL INC |
Entity Central Index Key | 1,097,362 |
Entity Current Reporting Status | Yes |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | FY |
Common shares | |
Disclosure of classes of share capital [line items] | |
Entity Common Stock, Shares Outstanding | 598,462,193 |
Class A Preferred Shares Series 1 | |
Disclosure of classes of share capital [line items] | |
Entity Common Stock, Shares Outstanding | 16,000,000 |
Class A Preferred Shares Series 2 | |
Disclosure of classes of share capital [line items] | |
Entity Common Stock, Shares Outstanding | 13,000,000 |
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 | 5,192,686 |
Class A Preferred Shares Series 9QR | |
Disclosure of classes of share capital [line items] | |
Entity Common Stock, Shares Outstanding | 6,007,314 |
Class A Preferred Shares Series 10R | |
Disclosure of classes of share capital [line items] | |
Entity Common Stock, Shares Outstanding | 6,919,928 |
Class A Preferred Shares Series 11QR | |
Disclosure of classes of share capital [line items] | |
Entity Common Stock, Shares Outstanding | 1,080,072 |
Class A Preferred Shares Series 12R | |
Disclosure of classes of share capital [line items] | |
Entity Common Stock, Shares Outstanding | 12,000,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS $ in Millions | 12 Months Ended | |
Dec. 31, 2018CAD ($)$ / $$ / shares | Dec. 31, 2017CAD ($)$ / $$ / shares | |
Premiums | ||
Gross | $ 20,981 | $ 19,838 |
Less: Ceded | 2,339 | 4,557 |
Net premiums | 18,642 | 15,281 |
Net investment income (loss): | ||
Interest and other investment income (Note 5) | 5,641 | 5,413 |
Fair value and foreign currency changes on assets and liabilities (Note 5) | (3,373) | 2,603 |
Net gains (losses) on available-for-sale assets | 121 | 195 |
Net investment income (loss) | 2,389 | 8,211 |
Fee income (Note 17) | 5,966 | 5,842 |
Total revenue | 26,997 | 29,334 |
Benefits and expenses | ||
Gross claims and benefits paid (Note 10) | 15,986 | 15,353 |
Increase (decrease) in insurance contract liabilities (Note 10) | 312 | 5,327 |
Decrease (increase) in reinsurance assets (Note 10) | 97 | 821 |
Increase (decrease) in investment contract liabilities (Note 10) | (31) | 41 |
Reinsurance expenses (recoveries) (Note 11) | (2,021) | (4,373) |
Commissions | 2,339 | 2,403 |
Net transfer to (from) segregated funds (Note 22) | (308) | (119) |
Operating expenses (Note 18) | 6,432 | 6,410 |
Premium taxes | 375 | 379 |
Interest expense | 305 | 303 |
Total benefits and expenses | 23,486 | 26,545 |
Income (loss) before income taxes | 3,511 | 2,789 |
Less: Income tax expense (benefit) (Note 20) | 597 | 302 |
Total net income (loss) | 2,914 | 2,487 |
Less: Net income (loss) attributable to participating policyholders (Note 21) | 298 | 245 |
Shareholders' net income (loss) | 2,616 | 2,242 |
Less: Preferred shareholders' dividends | 94 | 93 |
Common shareholders' net income (loss) | $ 2,522 | $ 2,149 |
Average exchange rates during the reporting periods (in USD per share) | $ / $ | 1.30 | 1.30 |
Earnings (loss) per share | ||
Basic earnings (loss) per share (in CAD per share) | $ / shares | $ 4.16 | $ 3.51 |
Diluted earnings (loss) per share (in CAD per share) | $ / shares | 4.14 | 3.49 |
Dividends per common share (in CAD per share) | $ / shares | $ 1.905 | $ 1.745 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of comprehensive income [abstract] | ||
Total net income (loss) | $ 2,914 | $ 2,487 |
Change in unrealized foreign currency translation gains (losses): | ||
Unrealized gains (losses) | 911 | (737) |
Change in unrealized gains (losses) on available-for-sale assets: | ||
Unrealized gains (losses) | (313) | 247 |
Reclassifications to net income (loss) | (89) | (112) |
Change in unrealized gains (losses) on cash flow hedges: | ||
Unrealized gains (losses) | (10) | 3 |
Reclassifications to net income (loss) | 0 | (8) |
Share of other comprehensive income (loss) in joint ventures and associates: | ||
Unrealized gains (losses) | 7 | (31) |
Total items that may be reclassified subsequently to income | 506 | (638) |
Items that will not be reclassified subsequently to income: | ||
Remeasurement of defined benefit plans | 84 | (69) |
Revaluation surplus on transfer to investment properties (Note 5.A) | 0 | 139 |
Total items that will not be reclassified subsequently to income | 84 | 70 |
Total other comprehensive income (loss) | 590 | (568) |
Total comprehensive income (loss) | 3,504 | 1,919 |
Less: Participating policyholders' comprehensive income (loss) (Note 21) | 303 | 238 |
Shareholders' comprehensive income (loss) | 3,201 | 1,681 |
Items that may be reclassified subsequently to income: | ||
Unrealized foreign currency translation gains / losses | (56) | 0 |
Unrealized gains / losses on available-for-sale assets | 58 | (92) |
Reclassifications to net income for available-for-sale assets | 31 | 39 |
Unrealized gains / losses on cash flow hedges | 4 | (1) |
Reclassifications to net income for cash flow hedges | 0 | 3 |
Total items that may be reclassified subsequently to income | 37 | (51) |
Items that will not be reclassified subsequently to income: | ||
Remeasurement of defined benefit plans | (17) | 22 |
Revaluation surplus on transfer to investment properties (Note 5.A) | 0 | (33) |
Total items that will not be reclassified subsequently to income | (17) | (11) |
Total income tax benefit (expense) included in other comprehensive income (loss) | $ 20 | $ (62) |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION $ in Millions | Dec. 31, 2018CAD ($)$ / $ | Dec. 31, 2017CAD ($)$ / $ |
Assets | ||
Cash, cash equivalents and short-term securities (Note 5) | $ 9,506 | $ 8,890 |
Debt securities (Notes 5 and 6) | 74,443 | 72,619 |
Equity securities (Notes 5 and 6) | 4,634 | 6,020 |
Mortgages and loans (Notes 5 and 6) | 46,822 | 42,805 |
Derivative assets (Notes 5 and 6) | 1,112 | 1,478 |
Other invested assets (Note 5) | 4,830 | 4,154 |
Policy loans (Note 5) | 3,222 | 3,106 |
Investment properties (Note 5) | 7,157 | 7,067 |
Invested assets | 151,726 | 146,139 |
Other assets (Note 8) | 4,498 | 4,408 |
Reinsurance assets (Notes 10 and 11) | 4,141 | 4,028 |
Deferred tax assets (Note 20) | 1,209 | 1,295 |
Intangible assets (Note 9) | 1,779 | 1,667 |
Goodwill (Note 9) | 5,412 | 5,183 |
Total general fund assets | 168,765 | 162,720 |
Investments for account of segregated fund holders (Note 22) | 103,062 | 106,392 |
Total assets | 271,827 | 269,112 |
Liabilities | ||
Insurance contract liabilities (Note 10) | 121,923 | 117,785 |
Investment contract liabilities (Note 10) | 3,164 | 3,082 |
Derivative liabilities (Notes 5 and 6) | 2,295 | 1,756 |
Deferred tax liabilities (Note 20) | 322 | 403 |
Other liabilities (Note 12) | 12,153 | 11,987 |
Senior debentures (Note 13) | 1,299 | 1,299 |
Subordinated debt (Note 14) | 3,039 | 3,437 |
Total general fund liabilities | 144,195 | 139,749 |
Insurance contracts for account of segregated fund holders (Note 22) | 96,663 | 99,121 |
Investment contracts for account of segregated fund holders (Note 22) | 6,399 | 7,271 |
Total liabilities | 247,257 | 246,141 |
Equity | ||
Issued share capital and contributed surplus | 10,749 | 10,911 |
Shareholders' retained earnings and accumulated other comprehensive income | 12,957 | 11,410 |
Total shareholders' equity | 23,706 | 22,321 |
Participating policyholders' equity | 864 | 650 |
Total equity | 24,570 | 22,971 |
Total liabilities and equity | $ 271,827 | $ 269,112 |
Exchange rates at the end of the reporting periods (in USD per share) | $ / $ | 1.36 | 1.26 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - CAD ($) $ in Millions | Total | Common shares (Note 15) | Issued capitalPreferred shares (Note 15) | Issued capitalCommon shares (Note 15) | Contributed surplus | Retained earnings | Retained earningsPreferred shares (Note 15) | Retained earningsCommon shares (Note 15) | Accumulated other comprehensive income (loss), net of taxes (Note 27) | Total shareholders' equity | Participating policyholders |
Equity, beginning of year at Dec. 31, 2016 | $ 2,257 | $ 8,614 | $ 72 | $ 9,360 | $ 1,653 | $ 412 | |||||
Changes in equity [abstract] | |||||||||||
Stock options exercised | $ 18 | 18 | (3) | ||||||||
Common shares purchased for cancellation | (50) | (50) | (125) | ||||||||
Common shares issued as consideration for business acquisition | $ 0 | ||||||||||
Share-based payments | 3 | ||||||||||
Net income (loss) | 2,487 | 2,242 | 245 | ||||||||
Dividends on shares | $ (93) | $ (1,066) | |||||||||
Transfer to (from) within equity | (13) | 13 | |||||||||
Equity, end of year at Dec. 31, 2017 | 22,971 | 20,064 | 2,257 | 8,582 | 72 | 10,305 | 1,105 | $ 22,321 | 650 | ||
Changes in equity [abstract] | |||||||||||
Total other comprehensive income (loss) for the year | (568) | (561) | (561) | (7) | |||||||
Adjustment for change in accounting policy (Note 2) | (44) | ||||||||||
Balance, beginning of year, after change in accounting policy | 10,261 | ||||||||||
Stock options exercised | 16 | 16 | (3) | ||||||||
Common shares purchased for cancellation | (183) | (183) | (458) | ||||||||
Common shares issued as consideration for business acquisition | (4) | (4) | |||||||||
Share-based payments | 4 | ||||||||||
Net income (loss) | 2,914 | 2,616 | 298 | ||||||||
Dividends on shares | $ (94) | $ (1,147) | |||||||||
Transfer to (from) within equity | (89) | ||||||||||
Transfer from participating policyholders' equity (Note 21) | (89) | ||||||||||
Equity, end of year at Dec. 31, 2018 | 24,570 | $ 21,449 | $ 2,257 | $ 8,419 | $ 73 | $ 11,267 | 1,690 | $ 23,706 | 864 | ||
Changes in equity [abstract] | |||||||||||
Total other comprehensive income (loss) for the year | $ 590 | $ 585 | $ 5 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - CAD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Cash flows provided by (used in) operating activities | |||
Income (loss) before income taxes | $ 3,511,000,000 | $ 2,789,000,000 | |
Adjustments: | |||
Interest expense related to financing activities | 247,000,000 | 247,000,000 | |
Increase (decrease) in insurance and investment contract liabilities | 281,000,000 | 5,368,000,000 | |
Decrease (increase) in reinsurance assets | 97,000,000 | 821,000,000 | |
Realized and unrealized (gains) losses and foreign currency changes on invested assets | 3,252,000,000 | (2,798,000,000) | |
Sales, maturities and repayments of invested assets | 62,387,000,000 | 55,973,000,000 | |
Purchases of invested assets | (65,353,000,000) | (60,633,000,000) | |
Income taxes received (paid) | (307,000,000) | (436,000,000) | |
Mortgage securitization (Note 5) | 96,000,000 | 214,000,000 | |
Other operating activities | (377,000,000) | 439,000,000 | |
Net cash provided by (used in) operating activities | 3,834,000,000 | 1,984,000,000 | |
Cash flows provided by (used in) investing activities | |||
Net (purchase) sale of property and equipment | (85,000,000) | (182,000,000) | |
Investment in and transactions with joint ventures and associates (Note 16) | (64,000,000) | (121,000,000) | |
Dividends received from joint ventures and associates (Note 16) | 34,000,000 | 36,000,000 | |
Acquisitions, net of cash and cash equivalents acquired (Note 3)(1) | [1] | 0 | (61,000,000) |
Other investing activities | (165,000,000) | (11,000,000) | |
Net cash provided by (used in) investing activities | (280,000,000) | (339,000,000) | |
Cash flows provided by (used in) financing activities | |||
Increase in (repayment of) borrowed funds | (40,000,000) | (45,000,000) | |
Issuance of subordinated debt, net of issuance costs (Note 14) | 0 | 398,000,000 | |
Redemption of senior debentures and subordinated debt (Notes 13 and 14) | (400,000,000) | (800,000,000) | |
Issuance of common shares on exercise of stock options | 13,000,000 | 15,000,000 | |
Common shares purchased for cancellation (Note 15) | (641,000,000) | (175,000,000) | |
Dividends paid on common and preferred shares | (1,227,000,000) | (1,155,000,000) | |
Interest expense paid | (271,000,000) | (257,000,000) | |
Net cash provided by (used in) financing activities | (2,566,000,000) | (2,019,000,000) | |
Changes due to fluctuations in exchange rates | 250,000,000 | (179,000,000) | |
Increase (decrease) in cash and cash equivalents | 1,238,000,000 | (553,000,000) | |
Net cash and cash equivalents, beginning of year | 5,956,000,000 | 6,509,000,000 | |
Net cash and cash equivalents, end of year | 7,194,000,000 | 5,956,000,000 | |
Short-term securities, end of year | 2,208,000,000 | 2,794,000,000 | |
Net cash, cash equivalents and short-term securities, end of year (Note 5) | $ 9,402,000,000 | 8,750,000,000 | |
Total cash consideration paid | 100 | ||
Cash and cash equivalents acquired | $ 39 | ||
[1] | Consists of total cash consideration paid of $100, less cash and cash equivalents acquired of $39 in 2017. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
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", "the Enterprise", 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 ("U.K."). 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 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 by us. 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"). 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 Note 5 Total Invested Assets and Related Net Investment Income Impairment of financial instruments Note 1 Financial Assets Excluding Derivative Financial Instruments Income taxes Note 1 Income Taxes Pension plans Note 1 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 Note 9 Goodwill and Intangible Assets Determination of control for purpose of consolidation Note 1 Basis of Consolidation 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. 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 hold 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. 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. 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. When the use of a property changes from owner-occupied to investment property, any gain arising on the remeasurement of the property to fair value at the date of transfer is recognized in our Consolidated Statements of Operations to the extent that it reverses a previous impairment loss. Any remaining increase is recognized in OCI. 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 assets, which are measured at amortized cost, include accounts receivable, investment income due and accrued, deferred acquisition costs, and property and equipment. 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. 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 |
Changes in Accounting Policies
Changes in Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies, Changes In Accounting Estimates And Errors [Abstract] | |
Changes in Accounting Policies | 2.A New and Amended International Financial Reporting Standards Adopted in 2018 2.A.i IFRS 15 Revenue from Contracts with Customers In May 2014, the IASB issued IFRS 15 Revenue from Contracts with Customers ("IFRS 15"), which replaces IAS 11 Construction Contracts , IAS 18 Revenue and various interpretations. Amendments to IFRS 15 were issued in September 2015 and April 2016. IFRS 15 establishes principles about the nature, amount, timing, and uncertainty of revenue arising from contracts with customers. IFRS 15 requires entities to recognize revenue to reflect the transfer of goods or services to customers measured at the amounts an entity expects to be entitled to in exchange for those goods or services. Insurance contracts and revenues arising from those contracts, primarily premium revenue, are not within the scope of this standard. Revenues from service contracts and service components of investment contracts (which are treated as service contracts) that are reported in Fee income and primarily arise from our asset management businesses are within the scope of IFRS 15. IFRS 15 also provides guidance related to the costs to obtain and to fulfill a contract. We adopted IFRS 15 on a cumulative retrospective basis and recognized differences on transition to IFRS 15 as at January 1, 2018 in retained earnings. As a result of the adoption of IFRS 15, we derecognized a portion of our deferred acquisition costs (previously recognized in Other assets) and the related deferred tax liability on our Consolidated Statements of Financial Position, which reduced opening retained earnings by $44 on an after-tax basis as at January 1, 2018. Additional disclosure on revenue from contracts with customers is included in Note 17. 2.A.ii Amendments to IFRS 4 (IFRS 9 deferral approach) In September 2016, the IASB issued Amendments to IFRS 4 to allow insurance entities whose predominant activities are to issue contracts within the scope of IFRS 4 an optional temporary exemption from applying IFRS 9 Financial Instruments ("IFRS 9") ("deferral approach"). On January 1, 2018, we qualified for and elected to take the deferral approach as our activities are predominantly connected with insurance in accordance with IFRS standards. Consequently, we will continue to apply IAS 39 Financial Instruments: Recognition and Measurement ("IAS 39"), the existing financial instrument standard. To enable a comparison to entities applying IFRS 9, entities that apply the deferral approach are required to disclose fair value and changes in fair value separately for (i) those financial assets that pass the Solely Payment of Principal and Interest (“SPPI”) test, excluding any financial asset that is managed and whose performance is evaluated on a fair value basis; and (ii) all other financial assets, including financial assets that are managed and their performance is evaluated on a fair value basis. We are also required to disclose credit ratings of financial assets that pass the SPPI test. Financial assets which pass the SPPI test are assets with contractual terms that give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. See Note 5.A.i for disclosure of the carrying value and fair value of our financial assets as at December 31, 2018 and 2017. Except for Debt securities designated as AFS and Mortgages and loans, our financial assets are managed and their performance is evaluated on a fair value basis. The following table includes these disclosures: December 31, 2018 ($ billions) IAS 39 Classification SPPI Non-SPPI Debt securities AFS 12.9 0.1 Mortgages and loans supporting Insurance contract liabilities (1) Amortized cost 43.8 — Mortgages and loans not supporting Insurance contract liabilities Amortized cost 4.4 0.2 (1) Because we use CALM to value our insurance contract liabilities, the impact on net income in our Consolidated Statements of Operations of classifying assets supporting those liabilities as SPPI or non-SPPI is not material. Note 6.A.v discloses the carrying value of Debt securities and Mortgages and loans by credit risk rating. Debt securities designated as AFS with a credit rating below investment grade have a carrying value of $0.1 billion as at December 31, 2018. Mortgages and loans with a credit rating below investment grade have a carrying value of $2.1 billion as at December 31, 2018. 2.A.iii Other New and Amended IFRS The following new and amended IFRS are effective for annual periods beginning on or after January 1, 2018, and did not have a material impact on our Consolidated Financial Statements. In June 2016, the IASB issued Classification and Measurement of Share-based Payment Transactions , which amends IFRS 2 Share-based Payment. The amendments clarify how to account for certain types of share-based payment transactions, such as the effects of vesting and non-vesting conditions on the measurement of cash-settled share-based payments. These amendments are applicable to awards granted on or after that date and to unvested and vested but unexercised awards outstanding at that date. These amendments were applied prospectively. In December 2016, the IASB issued Annual Improvements to IFRSs 2014-2016 Cycle , which includes minor amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards and IAS 28 Investments in Associates and Joint Ventures ("IAS 28"). In December 2016, the IASB issued Transfers of Investment Property (Amendments to IAS 40). The amendments to IAS 40 Investment Property clarify that an entity shall transfer property to, or from, investment property when, and only when, there is evidence of a change in use. In December 2016, the IASB issued IFRIC 22 Foreign Currency Transactions and Advance Consideration ("IFRIC 22"), which was developed by the IFRS Interpretations Committee. IFRIC 22 clarifies that for purposes of determining the exchange rate in transactions which include the receipt or payment of advance consideration in a foreign currency, the date of the transaction is the date of initial recognition of the non-monetary prepayment asset or deferred income liability. 2.B New and Amended International Financial Reporting Standards to be Adopted in 2019 The following new and amended IFRS were issued by the IASB and are expected to be adopted by us in 2019. In January 2016, the IASB issued IFRS 16 Leases ("IFRS 16"), which replaces IAS 17 Leases , and related interpretations. IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. For lessees, IFRS 16 removes the classification of leases as either operating or financing and requires that all leases to be recognized on the statement of financial position, with certain exemptions allowed by this new standard. The accounting for lessors is substantially unchanged. The standard is effective for annual periods beginning on or after January 1, 2019, to be applied retrospectively, or on a modified retrospective basis. We will be adopting IFRS 16 on a modified retrospective basis. At the time of adoption of IFRS 16, we expect to recognize right-of-use assets of approximately $ 800 and lease liabilities of approximately $ 900 on our Consolidated Statements of Financial Position. Together with the derecognition of deferred balances previously recognized under IAS 17, the overall impact to retained earnings is not expected to be material. In June 2017, the IASB issued IFRIC 23 Uncertainty over Income Tax Treatments ("IFRIC 23") , which was developed by the IFRS Interpretations Committee. IFRIC 23 clarifies how to apply the recognition and measurement requirements in IAS 12 Income Taxes ("IAS 12"), when there is uncertainty over income tax treatments, and requires an entity to determine whether tax treatments should be considered collectively or independently. In addition, IFRIC 23 addresses the assumptions an entity should make about the examination of tax treatments by taxation authorities, as well as how an entity should consider changes in facts and circumstances. IFRIC 23 also provides guidance on how to determine taxable profit (tax loss), tax bases, unused tax losses, unused tax credits, and tax rates, based on whether it is probable that a tax authority will accept an uncertain tax treatment used, or proposed to be used, by an entity in its income tax filings. IFRIC 23 is effective for annual periods beginning on or after January 1, 2019 and is to be applied retrospectively, or on a cumulative retrospective basis. We do not expect IFRIC 23 to have a material impact on our Consolidated Financial Statements. In October 2017, the IASB issued narrow-scope amendments to IAS 28. The amendments clarify that long-term interests in an associate or joint venture to which the equity method is not applied should be accounted for following the requirements of IFRS 9. The amendments are effective for annual periods beginning on or after January 1, 2019, and are to be applied retrospectively with certain exceptions. As we will not adopt IFRS 9 until 2021, we will be required to apply IAS 39 to the long-term interests in associates or joint ventures covered by these amendments. We do not expect the adoption of these amendments to have a material impact on our Consolidated Financial Statements. In December 2017, the IASB issued Annual Improvements to IFRSs 2015-2017 Cycle , which includes minor amendments to four IFRS standards. The amendments are effective for annual periods beginning on or after January 1, 2019. We do not expect the adoption of these amendments to have a material impact on our Consolidated Financial Statements. In February 2018, the IASB issued Plan Amendment, Curtailment or Settlement which amends IAS 19 Employee Benefits (“IAS 19”). Under IAS 19, when an amendment, curtailment or settlement of a defined benefit pension plan occurs, the net defined benefit liability or asset is remeasured. The amendments require an entity to use the updated assumptions from this remeasurement to determine current service cost and net interest for reporting periods after the change to the plan. The amendments are applicable to plan amendments, curtailments or settlements occurring on or after January 1, 2019. 2.C New and Amended International Financial Reporting Standards to be Adopted in 2020 or Later The following new and amended standards were issued by the IASB and are expected to be adopted by us in 2020 or later. 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. Financial asset classification is based on the cash flow characteristics and the business model in which an asset is held. The classification determines how a financial instrument is accounted for and measured. IFRS 9 also introduces an impairment model for financial instruments not measured at fair value through profit or loss that requires recognition of expected losses at initial recognition of a financial instrument and the recognition of full lifetime expected losses if certain criteria are met. In addition, a new model for hedge accounting was introduced to achieve better alignment with risk management activities. This standard is effective for annual periods beginning on or after January 1, 2018. In October 2017, the IASB issued narrow-scope amendments to IFRS 9. The amendments clarify the classification of certain prepayable financial assets and the accounting of financial liabilities following modification. The amendments are effective for annual periods beginning on or after January 1, 2019. However, pursuant to the aforementioned amendments to IFRS 4, we elected the deferral approach permitted under IFRS 4 to continue to apply IAS 39. We are currently assessing the impact that IFRS 9, along with these amendments, will have on our Consolidated Financial Statements. In May 2017, the IASB issued IFRS 17, which replaces IFRS 4. IFRS 17 establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts. IFRS 17 requires entities to measure insurance contract liabilities at their current fulfillment values using one of three measurement models, depending on the nature of the contract. IFRS 17 is effective for annual periods beginning on or after January 1, 2021 and is to be applied retrospectively to each group of insurance contracts unless impracticable. If, and only if, it is impracticable to apply IFRS 17 retrospectively for a group of insurance contracts, an entity shall apply IFRS 17 using a modified retrospective approach or a fair value approach. In November 2018, the IASB tentatively decided to defer the effective date of IFRS 17 by one year, to January 1, 2022. IFRS 17 will affect how we account for our insurance contracts and how we report our financial performance in our Consolidated Statements of Operations. We are currently assessing the impact that IFRS 17 will have on our Consolidated Financial Statements. In March 2018, the IASB issued a revised Conceptual Framework for Financial Reporting (“2018 Conceptual Framework”), which replaces the Conceptual Framework for Financial Reporting issued in 2010. The 2018 Conceptual Framework includes revised definitions of an asset and a liability, as well as new guidance on measurement, derecognition, presentation and disclosure. The 2018 Conceptual Framework is effective for annual periods beginning on or after January 1, 2020. We are currently assessing the impact the adoption of this framework will have on our Consolidated Financial Statements. In October 2018, the IASB issued Definition of a Business, which amends IFRS 3 Business Combinations . The amendments clarify the definition of a business to assist entities in determining whether a transaction represents a business combination or an acquisition of assets. The amendments are effective for annual periods beginning on or after January 1, 2020, to be applied prospectively. We will assess the impact the adoption of these amendments will have on the accounting treatment of future transactions. In October 2018, the IASB issued Definition of Material (Amendments to IAS 1 and IAS 8). The amendments clarify the definition of material and provide guidance to improve consistency in its application in IFRS standards. The amendments are effective for annual periods beginning on or after January 1, 2020. We are currently assessing the impact the adoption of these amendments will have on our Consolidated Financial Statements. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations 1 [Abstract] | |
Acquisitions | 3. Acquisitions Pending Acquisition On December 19, 2018, we entered into an agreement with GreenOak Real Estate (“GreenOak”), a global real estate investment firm, to merge GreenOak with the Bentall Kennedy group of companies and to acquire 56% of the combined entity (“Bentall GreenOak”), with the right to approximately 90% of Bentall GreenOak's earnings over 8.5 years and the ability to acquire the remaining interest in the future. The combined entity will be reported in our Sun Life Financial Asset Management (“SLF Asset Management”) business segment. The acquisition of 56% of Bentall GreenOak is expected to close in the first half of 2019, subject to receipt of regulatory approvals and satisfaction of customary closing conditions. Acquisition in Sun Life Financial Asia On October 3, 2017, we completed the first stage of our acquisition of the pension business of FWD Life Insurance Company (Bermuda) Limited ("FWD") for total consideration of approximately $105 , consisting of $92 initial cash consideration and estimated contingent consideration of $13 to be paid if certain future performance targets are achieved. The first stage included the acquisition of the Mandatory Provident Fund business and the commencement of an exclusive 15 -year distribution agreement with FWD that allows Sun Life Hong Kong Limited to distribute its pension products through FWD's agency force in Hong Kong. The fair value of the net identifiable assets acquired in the transaction was $89 , which included intangible assets of $61 and a related deferred tax liability of $10 . The acquired intangible assets consist of client relationships and distribution intangible assets which are subject to amortization on a straight-line basis over their projected economic life of 30 years and 15 years, respectively. We recognized goodwill of $16 as a result of this transaction. The completion of the second and final stage of the transaction involves the purchase of the Occupational Retirement Schemes Ordinance business of FWD, and is expected to close by the end of 2019, subject to the receipt of regulatory approvals and satisfaction of customary closing conditions. These transactions will strengthen our position in the Hong Kong pension market and will be reported in our Sun Life Financial Asia ("SLF Asia") reportable segment. |
Segmented Information
Segmented Information | 12 Months Ended |
Dec. 31, 2018 | |
Operating Segments [Abstract] | |
Segmented Information | We have five reportable segments: SLF Canada, SLF U.S., SLF Asset Management, SLF Asia, and Corporate. These reportable segments operate in the financial services industry and reflect our management structure and internal financial reporting. Corporate includes the results of our U.K. business unit ("SLF U.K.") 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. Effective the first quarter of 2018, a change in the organizational and reporting structure resulted in the International business unit being transferred from the SLF U.S. reportable segment to the SLF Asia reportable segment. Consequently, approximately $10,000 of insurance contract liabilities pertaining to individual non-participating life and health policies transferred from SLF U.S. to SLF Asia, along with the associated assets. The information reported to the Chief Operating Decision Maker now includes the results of the International business unit in the SLF Asia reporting package and the segmental information presented in these Consolidated Financial Statements now includes the results of the International business unit in the SLF Asia reportable segment. In accordance with IFRS 8 Operating Segments , the segmental information for prior reporting periods has been restated to conform with current period presentation. Revenues from our reportable segments are derived principally 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 on 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 SLF U.S. to Corporate. Intersegment fee income is primarily asset management fees paid by SLF Canada and Corporate to SLF Asset Management, and product distribution fees paid by SLF Asset Management to SLF Asia Intersegment transactions are presented in the Consolidation adjustments column in the following tables. Management considers its external clients to be individuals and corporations. We are not reliant on any individual client as none is individually significant to our operations. Results by segment for the years ended December 31, are as follows: SLF Canada SLF U.S. (1) SLF Asset Management SLF Asia (1) Corporate Consolidation adjustments Total 2018 Gross premiums: Annuities $ 3,261 $ — $ — $ 1 $ (79 ) $ — $ 3,183 Life insurance 4,796 1,633 — 2,154 94 — 8,677 Health insurance 5,316 3,767 — 24 14 — 9,121 Total gross premiums 13,373 5,400 — 2,179 29 — 20,981 Less: ceded premiums 1,487 597 — 232 23 — 2,339 Net investment income (loss) 1,942 305 13 76 79 (26 ) 2,389 Fee income 1,240 73 4,111 514 154 (126 ) 5,966 Total revenue 15,068 5,181 4,124 2,537 239 (152 ) 26,997 Less: Total benefits and expenses 13,497 5,183 2,930 1,919 109 (152 ) 23,486 Income tax expense (benefit) 308 (19 ) 284 51 (27 ) — 597 Total net income (loss) $ 1,263 $ 17 $ 910 $ 567 $ 157 $ — $ 2,914 Less: Net income (loss) attributable to participating policyholders 321 (35 ) — 12 — — 298 Shareholders' net income (loss) $ 942 $ 52 $ 910 $ 555 $ 157 $ — $ 2,616 2017 Gross premiums: Annuities $ 2,464 $ — $ — $ — $ 24 $ — $ 2,488 Life insurance 4,493 1,736 — 2,508 94 — 8,831 Health insurance 4,916 3,570 — 19 14 — 8,519 Total gross premiums 11,873 5,306 — 2,527 132 — 19,838 Less: ceded premiums 3,871 436 — 226 24 — 4,557 Net investment income (loss) 4,133 1,864 45 1,722 526 (79 ) 8,211 Fee income 1,132 103 4,037 524 118 (72 ) 5,842 Total revenue 13,267 6,837 4,082 4,547 752 (151 ) 29,334 Less: Total benefits and expenses 11,894 7,369 2,976 3,679 778 (151 ) 26,545 Income tax expense (benefit) 197 (392 ) 453 62 (18 ) — 302 Total net income (loss) $ 1,176 $ (140 ) $ 653 $ 806 $ (8 ) $ — $ 2,487 Less: Net income (loss) attributable to participating policyholders 213 4 — 28 — — 245 Shareholders' net income (loss) $ 963 $ (144 ) $ 653 $ 778 $ (8 ) $ — $ 2,242 (1) Balances in 2017 have been changed to conform with current year presentation as a result of the resegmentation described in this Note. Assets and liabilities by segment are as follows: SLF Canada SLF U.S. (1) SLF Asset Management SLF Asia (1) Corporate Consolidation adjustments Total As at December 31, 2018 Total general fund assets $ 86,697 $ 34,584 $ 4,468 $ 28,855 $ 14,378 $ (217 ) $ 168,765 Investments for account of segregated fund holders $ 85,885 $ 491 $ — $ 6,173 $ 10,513 $ — $ 103,062 Total general fund liabilities $ 78,946 $ 30,671 $ 2,396 $ 23,692 $ 8,707 $ (217 ) $ 144,195 As at December 31, 2017 Total general fund assets $ 84,698 $ 32,259 $ 4,115 $ 27,234 $ 14,605 $ (191 ) $ 162,720 Investments for account of segregated fund holders $ 87,817 $ 488 $ — $ 6,101 $ 11,986 $ — $ 106,392 Total general fund liabilities $ 76,683 $ 28,791 $ 2,346 $ 21,748 $ 10,372 $ (191 ) $ 139,749 (1) Balances in 2017 have been changed to conform with current year presentation as a result of the resegmentation described in this Note. The revenue and assets of our reportable segments differ from geographic segments primarily due to the geographic segmenting of our SLF Asset Management and Corporate segments. The following table shows revenue by country for SLF Asset Management and Corporate: SLF Asset Management Corporate For the years ended December 31, 2018 2017 2018 2017 Revenue: United States $ 3,945 $ 3,961 $ 58 $ 147 United Kingdom — — 142 577 Canada (1) 179 121 38 20 Other countries — — 1 8 Total revenue $ 4,124 $ 4,082 $ 239 $ 752 (1) Consists of the Canadian operations of the Bentall Kennedy group of companies ("Bentall Kennedy") and Sun Life Institutional Investments (Canada) Inc. for SLF Asset Management. The following table shows total assets by country for SLF Asset Management and Corporate: SLF Asset Management Corporate As at December 31, 2018 2017 2018 2017 Total general fund assets: United States $ 4,147 $ 3,750 $ 2,550 $ 1,984 United Kingdom — — 8,274 8,744 Canada (1) 321 365 3,384 3,723 Other countries — — 170 154 Total general fund assets $ 4,468 $ 4,115 $ 14,378 $ 14,605 Investment for account of segregated fund holders: United Kingdom $ — $ — $ 10,513 $ 11,986 Total investment for account of segregated fund holders $ — $ — $ 10,513 $ 11,986 (1) Consists of the Canadian operations of Bentall Kennedy and Sun Life Institutional Investments (Canada) Inc. for SLF Asset Management. |
Total Invested Assets and Relat
Total Invested Assets and Related Net Investment Income | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Measurement [Abstract] | |
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 The carrying values and fair values of our financial assets are shown in the following table: As at December 31, 2018 December 31, 2017 Carrying value Fair value Carrying value Fair value Assets Cash, cash equivalents and short-term securities $ 9,506 $ 9,506 $ 8,890 $ 8,890 Debt securities – fair value through profit or loss 61,402 61,402 59,967 59,967 Debt securities – available-for-sale 13,041 13,041 12,652 12,652 Equity securities – fair value through profit or loss 4,014 4,014 5,078 5,078 Equity securities – available-for-sale 620 620 942 942 Mortgages and loans 46,822 48,434 42,805 45,406 Derivative assets 1,112 1,112 1,478 1,478 Other invested assets – fair value through profit or loss (1) 2,701 2,701 2,211 2,211 Other invested assets – available-for-sale (1) 621 621 562 562 Policy loans 3,222 3,222 3,106 3,106 Total financial assets (2) $ 143,061 $ 144,673 $ 137,691 $ 140,292 (1) Other invested assets (FVTPL and AFS) include our investments in segregated funds, mutual funds, and limited partnerships. (2) Invested assets on our Consolidated Statements of Financial Position of $151,726 ( $146,139 as at December 31, 2017 ) includes Total financial assets in this table, Investment properties of $7,157 ( $7,067 as at December 31, 2017 ), and Other invested assets – non-financial assets of $1,508 ( $1,381 as at December 31, 2017 ). Derivative liabilities with a fair value of $2,295 ( $1,756 as at December 31, 2017 ) are also included on the Consolidated Statements of Financial Position. Our mortgages and loans are generally 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, 2018 , $40,730 and $7,704 are categorized in Level 2 and Level 3, respectively, of the fair value hierarchy described in this Note ( $38,601 and $6,805 as at December 31, 2017 ). 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. 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 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. The methodologies and assumptions for determining the fair values of investment contract liabilities are included in Note 10.B. 5.A.iii Fair Value Hierarchy 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, 2018 December 31, 2017 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Cash, cash equivalents and short-term securities $ 8,926 $ 580 $ — $ 9,506 $ 7,683 $ 1,207 $ — $ 8,890 Debt securities – fair value through profit or loss 1,253 59,776 373 61,402 1,103 58,447 417 59,967 Debt securities – available-for-sale 1,513 11,485 43 13,041 818 11,698 136 12,652 Equity securities – fair value through profit or loss 1,967 1,845 202 4,014 3,379 1,532 167 5,078 Equity securities – available-for-sale 398 186 36 620 710 194 38 942 Derivative assets 27 1,085 — 1,112 27 1,451 — 1,478 Other invested assets 898 183 2,241 3,322 912 140 1,721 2,773 Investment properties — — 7,157 7,157 — — 7,067 7,067 Total invested assets measured at fair value $ 14,982 $ 75,140 $ 10,052 $ 100,174 $ 14,632 $ 74,669 $ 9,546 $ 98,847 Investments for account of segregated fund holders 24,705 76,761 1,596 103,062 27,481 77,757 1,154 106,392 Total assets measured at fair value $ 39,687 $ 151,901 $ 11,648 $ 203,236 $ 42,113 $ 152,426 $ 10,700 $ 205,239 Liabilities Investment contract liabilities $ — $ — $ 3 $ 3 $ — $ — $ 3 $ 3 Derivative liabilities 11 2,284 — 2,295 5 1,751 — 1,756 Total liabilities measured at fair value $ 11 $ 2,284 $ 3 $ 2,298 $ 5 $ 1,751 $ 3 $ 1,759 Debt securities – fair value through profit or loss consist of the following: As at December 31, 2018 December 31, 2017 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Canadian federal government $ — $ 3,815 $ 15 $ 3,830 $ — $ 3,351 $ 15 $ 3,366 Canadian provincial and municipal government — 11,852 14 11,866 — 12,142 16 12,158 U.S. government and agency 1,253 125 2 1,380 1,103 125 3 1,231 Other foreign government — 4,895 34 4,929 — 5,318 43 5,361 Corporate — 34,665 205 34,870 — 33,864 306 34,170 Asset-backed securities: Commercial mortgage-backed securities — 1,464 3 1,467 — 1,459 1 1,460 Residential mortgage-backed securities — 1,961 — 1,961 — 1,625 — 1,625 Collateralized debt obligations — 143 — 143 — 55 — 55 Other — 856 100 956 — 508 33 541 Total debt securities – fair value through profit or loss $ 1,253 $ 59,776 $ 373 $ 61,402 $ 1,103 $ 58,447 $ 417 $ 59,967 Debt securities – available-for-sale consist of the following: As at December 31, 2018 December 31, 2017 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Canadian federal government $ — $ 1,746 $ — $ 1,746 $ — $ 1,832 $ — $ 1,832 Canadian provincial and municipal government — 1,199 — 1,199 — 1,138 — 1,138 U.S. government and agency 1,513 14 — 1,527 818 — — 818 Other foreign government — 716 1 717 — 752 — 752 Corporate — 4,971 42 5,013 — 5,838 56 5,894 Asset-backed securities: Commercial mortgage-backed securities — 766 — 766 — 744 — 744 Residential mortgage-backed securities — 386 — 386 — 398 — 398 Collateralized debt obligations — 804 — 804 — 345 69 414 Other — 883 — 883 — 651 11 662 Total debt securities – available-for-sale $ 1,513 $ 11,485 $ 43 $ 13,041 $ 818 $ 11,698 $ 136 $ 12,652 During 2018 and 2017 , 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 that are categorized in Level 3: For the year 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 invested assets Investment properties Total invested assets measured at fair value Investments for account of segregated fund holders Total assets measured at fair value December 31, 2018 Beginning balance $ 417 $ 136 $ 167 $ 38 $ 1,721 $ 7,067 $ 9,546 $ 1,154 $ 10,700 Included in net income (1)(3)(5) (4 ) — 9 — 69 441 515 29 544 Included in OCI (3) — (5 ) — (8 ) (9 ) — (22 ) — (22 ) Purchases 164 140 19 4 644 621 1,592 430 2,022 Sales (49 ) (6 ) — (1 ) (227 ) (1,113 ) (1,396 ) (31 ) (1,427 ) Settlements (21 ) (4 ) — (1 ) — — (26 ) (1 ) (27 ) Transfers into Level 3 (2) 12 1 — 1 — — 14 4 18 Transfers (out) of Level 3 (2) (159 ) (221 ) — — — — (380 ) (5 ) (385 ) Foreign currency translation (4) 13 2 7 3 43 141 209 16 225 Ending balance $ 373 $ 43 $ 202 $ 36 $ 2,241 $ 7,157 $ 10,052 $ 1,596 $ 11,648 Gains (losses) included in earnings relating to instruments still held at the reporting date (1) $ 5 $ — $ 9 $ — $ 69 $ 331 $ 414 $ 27 $ 441 December 31, 2017 Beginning balance $ 442 $ 191 $ 144 $ 7 $ 1,544 $ 6,592 $ 8,920 $ 865 $ 9,785 Included in net income (1)(3)(5) (3 ) (1 ) 7 — (59 ) 158 102 60 162 Included in OCI (3) — — — — 18 — 18 — 18 Purchases 180 215 34 32 505 448 1,414 302 1,716 Sales (41 ) (2 ) (7 ) — (318 ) (277 ) (645 ) (77 ) (722 ) Settlements (66 ) (5 ) (7 ) — — — (78 ) (1 ) (79 ) Transfers into Level 3 (2)(6) 204 — — — 49 259 512 — 512 Transfers (out) of Level 3 (2) (284 ) (262 ) — — — — (546 ) — (546 ) Foreign currency translation (4) (15 ) — (4 ) (1 ) (18 ) (113 ) (151 ) 5 (146 ) Ending balance $ 417 $ 136 $ 167 $ 38 $ 1,721 $ 7,067 $ 9,546 $ 1,154 $ 10,700 Gains (losses) included in earnings relating to instruments still held at the reporting date (1) $ — $ — $ 8 $ — $ (59 ) $ 147 $ 96 $ 27 $ 123 (1) Included in Net investment income (loss) for Total invested assets measured at fair value in our Consolidated Statements of Operations. (2) Transfers into Level 3 occur when the inputs used to price the assets and liabilities lack observable market data, and as a result, no longer meet the Level 1 or 2 definitions at the reporting date. 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. (3) 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. (4) 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. (5) Investment properties included in net income is comprised of fair value changes on investment properties of $529 ( $211 in 2017) net of amortization of leasing commissions and tenant inducements of $88 ( $53 in 2017). (6) Transfers into Level 3 in Investment properties includes the reclassification of our former head office location in 2017, previously classified as owner-occupied with a fair value of $259 at the time of transfer from Other assets to Investment properties. The reclassification recognized a revaluation surplus of $172 , which was recorded as an increase of $139 of accumulated other comprehensive income, net of taxes of $33 . 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 flows methodology as described in Note 5.A.ii. The key unobservable inputs used in the valuation of investment properties as at December 31, 2018 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 $11.00 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% . • 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 4.00% to 10.25% . • 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 4.25% to 8.75% . 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 are 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 U.K. 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 consist of the following: For the years ended December 31, 2018 2017 Interest income: Cash, cash equivalents and short-term securities $ 131 $ 65 Debt securities – fair value through profit or loss 2,312 2,292 Debt securities – available-for-sale 384 352 Mortgages and loans 2,050 1,928 Derivative investments 45 70 Policy loans 175 165 Total interest income 5,097 4,872 Equity securities – dividends on fair value through profit or loss 160 159 Equity securities – dividends on available-for-sale 14 15 Investment properties rental income (1) 594 623 Investment properties expenses (259 ) (286 ) Other income 242 223 Investment expenses and taxes (207 ) (193 ) Total interest and other investment income $ 5,641 $ 5,413 (1) Comprised of operating lease rental income. 5.C Fair Value and Foreign Currency Changes on Assets and Liabilities Fair value and foreign currency changes on assets and liabilities recorded to net income consist of the following: For the years ended December 31, 2018 2017 Fair value change: Cash, cash equivalents and short-term securities $ 8 $ 1 Debt securities (2,704 ) 1,630 Equity securities (401 ) 441 Derivative investments (1,295 ) 649 Other invested assets 16 59 Total change in fair value through profit or loss assets and liabilities (4,376 ) 2,780 Fair value changes on investment properties 529 211 Foreign exchange gains (losses) (1) 446 (388 ) Realized gains (losses) on property and equipment (2) 28 — Fair value and foreign currency changes on assets and liabilities $ (3,373 ) $ 2,603 (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. (2) In 2018, we sold and leased back a property in Waterloo, Ontario. The transaction qualified as a sale and operating lease and as a result, we recognized a gain of $28 . 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, 2018 2017 Cash $ 2,089 $ 1,504 Cash equivalents 5,209 4,592 Short-term securities 2,208 2,794 Cash, cash equivalents and short-term securities 9,506 8,890 Less: Bank overdraft, recorded in Other liabilities 104 140 Net cash, cash equivalents and short-term securities $ 9,402 $ 8,750 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, 2018 2017 Fair value Fair value Assets Liabilities Assets Liabilities Interest rate contracts $ 922 $ (440 ) $ 1,188 $ (518 ) Foreign exchange contracts 130 (1,820 ) 177 (1,232 ) Other contracts 60 (35 ) 113 (6 ) Total derivatives $ 1,112 $ (2,295 ) $ 1,478 $ (1,756 ) 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, 2018 2017 Fair value Fair value Total notional amount Assets Liabilities Total notional amount Assets Liabilities Derivative investments (1) $ 58,268 $ 1,101 $ (2,134 ) $ 53,299 $ 1,439 $ (1,575 ) Fair value hedges 779 — (153 ) 690 2 (181 ) Cash flow hedges 151 11 (8 ) 132 37 — Total derivatives $ 59,198 $ 1,112 $ (2,295 ) $ 54,121 $ 1,478 $ (1,756 ) (1) Derivative investments are derivatives that have not been designated as hedges for accounting purposes. We did not have any net investment hedges in 2018 or 2017 . Hedge ineffectiveness recognized in Interest and other investment income consists of the following: For the years ended December 31, 2018 2017 Fair value hedging ineffectiveness: Gains (losses) on the hedged items attributable to the hedged risk $ (41 ) $ (22 ) Gains (losses) on the hedging derivatives 40 19 Net ineffectiveness on fair value hedges $ (1 ) $ (3 ) For cash flow hedges, we had hedge ineffectiveness of $ 1 in 2018 ( $3 in 2017). We expect to reclassify a loss of $ 2 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 2019, 2020 and 2021. 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. 5.F.i Mortgage Securitization 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 Mortgages and loans in our Consolidated Statements of Financial Position. Proceeds from securitization transactions are recognized as secured borrowings and included in Other liabilities in our Consolidated Statements of Financial Position. Receipts of principal on the securitized mortgages are deposited into a principal reinvestment account ("PRA") to meet our repayment obligation upon maturity under the CMB program. The assets in the PRA are typically comprised of cash and cash equivalents and certain asset-backed securities. We are exposed to reinvestment risk due to the amortizing nature of the securitized mortgages relative to our repayment obligation for the full principal amount due at maturity. We mitigate this reinvestment risk using interest rate swaps. The carrying value and fair value of the securitized mortgages as at December 31, 2018 are $ 1,328 and $ 1,318 , respectively ( $1,283 and $1,267 as at December 31, 2017 ). The carrying value and fair value of the associated liabilities as at December 31, 2018 are $ 1,453 and $ 1,446 , respectively ( $1,355 and $1,346 as at December 31, 2017 ). The carrying value of asset-backed securities in the PRA as at December 31, 2018 and 2017 are $ 124 and $75 , respectively. There are no cash and cash equivalents in the PRA as at December 31, 2018 and 2017 . The fair value of the secured borrowings from mortgage securitization is based on the methodologies and assumptions for asset-backed securities described in Note 5.A.ii. The fair value of these liabilities is categorized in Level 2 of the fair value hierarchy as at December 31, 2018 and 2017 . 5.F.ii Repurchase Agreements We enter into repurchase agreements for operational funding and liquidity purposes. Repurchase agreements have maturities ranging from 7 to 365 days, averaging 127 days, and bear interest at an average rate of 1.92% as at December 31, 2018 ( 1.25% as at December 31, 2017 ). The carrying values of the transferred assets and the obligations related to their repurchase, which approximate their fair values, are $1,824 as at December 31, 2018 ( $1,976 as at December 31, 2017 ). These liabilities are categorized in Level 2 of the fair value hierarchy. Collateral primarily consists of cash and cash equivalents as well as government guaranteed securitie |
Financial Instrument Risk Manag
Financial Instrument Risk Management | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments [Abstract] | |
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, 2018 . 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 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 & Conduct Review Committee. • Risk appetite limits have been established for credit risk. • I ncome 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 Dynamic Capital Adequacy Testing ("DCAT") , 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, 2018 2017 Off-balance sheet items: Loan commitments (1) $ 2,460 $ 1,740 Guarantees — 12 Total off-balance sheet items $ 2,460 $ 1,752 (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, assets are lent with a commitment from the counterparty to return at a future date. Cash or securities are received as collateral from 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, 2018 2017 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) $ 1,112 $ (768 ) $ (298 ) $ 46 $ 1,478 $ (694 ) $ (662 ) $ 122 Reverse repurchase agreements (Note 8) 17 (17 ) — — — — — — Total financial assets $ 1,129 $ (785 ) $ (298 ) $ 46 $ 1,478 $ (694 ) $ (662 ) $ 122 Financial liabilities Derivative liabilities $ (2,295 ) $ 768 $ 1,132 $ (395 ) $ (1,756 ) $ 694 $ 754 $ (308 ) Repurchase agreements (Note 5.F.ii) (1,824 ) 17 1,807 — (1,976 ) — 1,976 — Total financial liabilities $ (4,119 ) $ 785 $ 2,939 $ (395 ) $ (3,732 ) $ 694 $ 2,730 $ (308 ) (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 excludes overcollateralization and for exchange-traded derivatives, initial margin. Total financial collateral, including initial margin and overcollateralization, received on derivative assets was $470 ( $853 as at December 31, 2017 ), received on reverse repurchase agreements was $17 ($ nil as at December 31, 2017 ), pledged on derivative liabilities was $1,726 ( $1,127 as at December 31, 2017 ), and pledged on repurchase agreements was $1,824 ( $1,976 as at December 31, 2017 ). 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 U.K. and issuers for which the Risk & Conduct Review 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, 2018 2017 Fair value through profit or loss Available-for- sale Total debt securities Fair value through profit or loss Available-for- sale Total debt securities Canada $ 25,091 $ 4,217 $ 29,308 $ 24,132 $ 4,114 $ 28,246 United States 21,329 5,917 27,246 20,758 5,719 26,477 United Kingdom 5,092 565 5,657 5,319 590 5,909 Other 9,890 2,342 12,232 9,758 2,229 11,987 Balance $ 61,402 $ 13,041 $ 74,443 $ 59,967 $ 12,652 $ 72,619 The carrying value of debt securities by issuer and industry sector is shown in the following table: As at December 31, 2018 2017 Fair value through profit or loss Available-for-sale Total debt securities Fair value through profit or loss Available-for-sale Total debt securities Debt securities issued or guaranteed by: Canadian federal government $ 3,830 $ 1,746 $ 5,576 $ 3,366 $ 1,832 $ 5,198 Canadian provincial and municipal government 11,866 1,199 13,065 12,158 1,138 13,296 U.S. government and agency 1,380 1,527 2,907 1,231 818 2,049 Other foreign government 4,929 717 5,646 5,361 752 6,113 Total government issued or guaranteed debt securities 22,005 5,189 27,194 22,116 4,540 26,656 Corporate debt securities by industry sector (1) : Financials 8,390 1,470 9,860 7,856 1,705 9,561 Utilities 6,353 528 6,881 6,756 550 7,306 Industrials 4,053 590 4,643 4,090 707 4,797 Energy 3,628 340 3,968 3,657 455 4,112 Communication services (2) 2,826 481 3,307 2,826 545 3,371 Real estate 2,640 376 3,016 2,213 366 2,579 Health care 1,734 299 2,033 1,256 323 1,579 Consumer staples 1,625 257 1,882 1,920 351 2,271 Consumer discretionary (2) 1,372 209 1,581 1,329 363 1,692 Materials 1,225 256 1,481 1,211 262 1,473 Information technology (2) 1,024 207 1,231 1,056 267 1,323 Total corporate debt securities 34,870 5,013 39,883 34,170 5,894 40,064 Asset-backed securities 4,527 2,839 7,366 3,681 2,218 5,899 Total debt securities $ 61,402 $ 13,041 $ 74,443 $ 59,967 $ 12,652 $ 72,619 (1) Balances in 2017 have been changed to conform with current year presentation. (2) Our grouping of debt securities by sector is based on the Global Industry Classification Standard and S&P Dow Jones Indices. During 2018, certain Consumer discretionary and Information technology debt securities were moved to the Communication services sector. 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, 2018 Canada United States United Kingdom Other Total Mortgages Retail $ 1,921 $ 2,281 $ — $ — $ 4,202 Office 1,811 2,417 — — 4,228 Multi-family residential 3,455 1,920 — — 5,375 Industrial and land 752 1,154 — — 1,906 Other 618 104 — — 722 Total mortgages (1) $ 8,557 $ 7,876 $ — $ — $ 16,433 Loans $ 13,238 $ 11,458 $ 2,547 $ 3,146 $ 30,389 Total mortgages and loans $ 21,795 $ 19,334 $ 2,547 $ 3,146 $ 46,822 (1) $3,537 of mortgages in Canada are insured by the CMHC. As at December 31, 2017 Canada United States United Kingdom Other Total Mortgages Retail $ 2,027 $ 2,264 $ — $ — $ 4,291 Office 1,898 2,363 — — 4,261 Multi-family residential 3,214 1,368 — — 4,582 Industrial and land 670 990 — — 1,660 Other 581 118 — — 699 Total mortgages (1) $ 8,390 $ 7,103 $ — $ — $ 15,493 Loans $ 13,265 $ 9,542 $ 1,678 $ 2,827 $ 27,312 Total mortgages and loans $ 21,655 $ 16,645 $ 1,678 $ 2,827 $ 42,805 (1) $3,171 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, 2018 2017 Fair value through profit or loss Available-for- sale Total debt securities Fair value through profit or loss Available-for- sale Total debt securities Due in 1 year or less $ 2,189 $ 1,175 $ 3,364 $ 1,432 $ 1,053 $ 2,485 Due in years 2-5 9,307 4,865 14,172 7,903 3,465 11,368 Due in years 6-10 10,080 2,580 12,660 10,148 3,177 13,325 Due after 10 years 39,826 4,421 44,247 40,484 4,957 45,441 Total debt securities $ 61,402 $ 13,041 $ 74,443 $ 59,967 $ 12,652 $ 72,619 The carrying value of mortgages by scheduled maturity, before allowances for losses, is as follows: As at December 31, 2018 2017 Due in 1 year or less $ 968 $ 931 Due in years 2-5 5,118 4,829 Due in years 6-10 7,351 6,963 Due after 10 years 3,021 2,792 Total mortgages $ 16,458 $ 15,515 The carrying value of loans by scheduled maturity, before allowances for losses, is as follows: As at December 31, 2018 2017 Due in 1 year or less $ 1,425 $ 1,806 Due in years 2-5 6,968 6,350 Due in years 6-10 5,183 4,968 Due after 10 years 16,863 14,216 Total loans $ 30,439 $ 27,340 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, 2018 2017 Term to maturity Term to maturity Under 1 Year 1 to 5 Years Over 5 Years Total Under 1 Year 1 to 5 Years Over 5 Years Total Over-the-counter contracts: Interest rate contracts: Forward contracts $ — $ — $ — $ — $ 469 $ — $ — $ 469 Swap contracts 1,101 3,506 16,685 21,292 1,348 3,486 16,053 20,887 Options purchased 1,198 2,898 3,737 7,833 1,062 2,266 2,451 5,779 Options written (1) 477 648 225 1,350 — 786 459 1,245 Foreign exchange contracts: Forward contracts 6,529 15 — 6,544 6,305 42 — 6,347 Swap contracts 532 4,451 9,210 14,193 332 4,198 7,214 11,744 Other contracts: Forward contracts 127 158 — 285 109 150 — 259 Swap contracts 112 1 — 113 126 1 — 127 Credit derivatives — 1,329 27 1,356 48 903 170 1,121 Exchange-traded contracts: Interest rate contracts: Futures contracts 3,669 — — 3,669 3,415 — — 3,415 Equity contracts: Futures contracts 2,377 — — 2,377 2,216 — — 2,216 Options purchased 186 — — 186 465 47 — 512 Total notional amount $ 16,308 $ 13,006 $ 29,884 $ 59,198 $ 15,895 $ 11,879 $ 26,347 $ 54,121 (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, 2018 2017 Term to maturity Term to maturity Under 1 Year 1 to 5 Years Over 5 Years Total Under 1 Year 1 to 5 Years Over 5 Years Total Derivative assets $ 100 $ 150 $ 862 $ 1,112 $ 97 $ 226 $ 1,155 $ 1,478 Derivative liabilities $ (240 ) $ (555 ) $ (1,500 ) $ (2,295 ) $ (90 ) $ (347 ) $ (1,319 ) $ (1,756 ) 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, 2018 ( 98% as at December 31, 2017 ). 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, 2018 2017 Fair value through profit or loss Available-for-sale Total debt securities Fair value through profit or loss Available-for-sale Total debt securities Debt securities by credit rating: AAA $ 9,728 $ 5,919 $ 15,647 $ 8,579 $ 4,870 $ 13,449 AA 14,208 2,044 16,252 14,006 1,809 15,815 A 19,089 2,447 21,536 19,603 3,000 22,603 BBB 17,646 2,483 20,129 16,894 2,674 19,568 BB and lower 731 148 879 885 299 1,184 Total debt securities $ 61,402 $ 13,041 $ 74,443 $ 59,967 $ 12,652 $ 72,619 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, 2018 2017 Mortgages by credit rating: Insured $ 3,537 $ 3,171 AAA 3 4 AA 2,209 1,716 A 4,841 4,304 BBB 4,925 5,060 BB and lower 912 1,227 Impaired 6 11 Total mortgages $ 16,433 $ 15,493 As at December 31, 2018 2017 Loans by credit rating: AAA $ 341 $ 400 AA 4,659 3,670 A 11,483 11,626 BBB 12,766 10,745 BB and lower 1,097 810 Impaired 43 61 Total loans $ 30,389 $ 27,312 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, 2018 2017 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 $ 289 $ (252 ) $ 37 $ 113 $ (95 ) $ 18 A 750 (507 ) 243 872 (589 ) 283 BBB 46 (9 ) 37 466 (10 ) 456 Total over-the-counter derivatives (1) $ 1,085 $ (768 ) $ 317 $ 1,451 $ (694 ) $ 757 (1) Exchange-traded derivatives with a positive fair value of $27 in 2018 ( $27 in 2017 ) 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, 2018 2017 Notional amount Fair value Notional amount Fair value Single name CDS contracts AA $ 48 $ 1 $ 67 $ 1 A 611 9 584 15 BBB 674 13 446 9 Total single name CDS contracts $ 1,333 $ 23 $ 1,097 $ 25 CDS index contracts $ 23 $ — $ 24 $ — Total credit default swap contracts $ 1,356 $ 23 $ 1,121 $ 25 Reinsurance Assets by Credit Rating The table below presents the distribution of Reinsurance assets by credit rating: As at December 31, 2018 2017 Gross exposure Collateral Net exposure Gross exposure Collateral Net exposure Reinsurance assets by credit rating: AA $ 1,442 $ 6 $ 1,436 $ 1,241 $ 4 $ 1,237 A 1,760 83 1,677 1,632 99 1,533 BBB 203 132 71 157 116 41 BB 1,677 1,617 60 1,539 1,455 84 B — — — 257 74 183 CCC 252 72 180 — — — Not rated 79 75 4 76 72 4 Total $ 5,413 $ 1,985 $ 3,428 $ 4,902 $ 1,820 $ 3,082 Less: negative reinsurance assets 1,272 874 Total Reinsurance assets $ 4,141 $ 4,028 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 |
Risk Categories
Risk Categories | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments [Abstract] | |
Risk Categories | Risk Categories The shaded text and tables in the following section of this MD&A represent our disclosure on credit, market and liquidity risks in accordance with IFRS 7 Financial Instruments - Disclosures and includes a discussion on how we measure risk and our objectives, policies and methodologies for managing these risks. The shaded text and tables represent an integral part of our audited annual Consolidated Financial Statements for the year ended December 31, 2018. The shading in this section does not imply that these disclosures are of any greater importance than non-shaded tables and text, and the Risk Management disclosure should be read in its entirety. This information should be considered carefully together with other information in this MD&A and in our 2018 AIF, our 2018 Consolidated Financial Statements and other reports and materials that we file with securities regulators. In this section, segregated funds include segregated fund guarantees, variable annuities and investment products, and includes Run-off reinsurance in our Corporate business segment. We rate fixed income investments primarily through the use of internally developed scorecards which combine an estimated probability of default and loss given default to determine an expected loss and credit risk rating. This rating is expressed using a 22-point scale that is generally consistent with those used by external rating agencies, and is based on detailed examination of the borrower’s, or issuer’s, credit quality and the characteristics of the specific instrument. The probability of default assessment is based on borrower-level or issuer-level analysis, which encompasses an assessment of industry risk, business strategy, competitiveness, strength of management and other financial information. The loss given default assessment is based on instrument-level analysis, which considers the impact of guarantees, covenants, liquidity and other structural features. These scorecards provide input to stochastic value-at-risk models and are used to stress test the portfolio, which provide insight into the distribution and characteristics of credit risk within our portfolios. In accordance with our policies and under normal circumstances, our ratings cannot be higher than the highest rating provided by certain Nationally Recognized Statistical Rating Organizations ("NRSROs"). Certain assets, including those in our sovereign debt and asset-backed securities portfolios, are assigned a rating based on ratings provided by NRSROs using a priority sequence order of Standard & Poor's, Moody's, Fitch and DBRS Limited . Interest Rate and Spread Risk Interest rate and spread risk is the potential for financial loss arising from changes or volatility in interest rates or spreads when asset cash flows and the policy obligations they support are not matched. This may result in the need to either sell assets to meet policy payments and expenses or reinvest excess asset cash flows in unfavourable interest rate or spread environments. The impact of changes or volatility in interest rates or spreads is reflected in the valuation of our financial assets and liabilities for insurance contracts. Our primary exposure to interest rate and spread risk arises from certain general account products and segregated fund contracts which contain investment guarantees in the form of minimum crediting rates, guaranteed premium rates, settlement options and benefit guarantees. If investment returns fall below guaranteed levels, we may be required to increase liabilities or capital in respect of these contracts. The guarantees attached to these products may be applicable to both past premiums collected and future premiums not yet received. Segregated fund contracts provide benefit guarantees that are linked to underlying fund performance and may be triggered upon death, maturity, withdrawal or annuitization. These products are included in our asset-liability management program and the residual interest rate exposure is managed within our risk appetite limits. Declines in interest rates or narrowing spreads can result in compression of the net spread between interest earned on investments and interest credited to policyholders. Declines in interest rates or narrowing spreads may also result in increased asset calls, mortgage prepayments and net reinvestment of positive cash flows at lower yields, and therefore adversely impact our profitability and financial position. Negative interest rates may additionally result in losses on our cash deposits and low or negative returns on our fixed income assets impacting our profitability. In contrast, increases in interest rates or a widening of spreads may have a material impact on the value of fixed income assets, resulting in depressed market values, and may lead to lower LICAT ratios or losses in the event of the liquidation of assets prior to maturity. Significant changes or volatility in interest rates or spreads could have a negative impact on sales of certain insurance and annuity products, and adversely impact the expected pattern of redemptions (surrenders) on existing policies. Increases in interest rates or widening spreads may increase the risk that policyholders will surrender their contracts, potentially forcing us to liquidate assets at a loss and accelerate recognition of certain acquisition expenses. While we have established hedging programs in place and our insurance and annuity products often contain surrender mitigation features, these may not be sufficient to fully offset the adverse impact of the underlying losses. We also have direct exposure to interest rates and spreads from investments supporting other general account liabilities, surplus and employee benefit plans. Lower interest rates or a narrowing of spreads will result in reduced investment income on new fixed income asset purchases. Conversely, higher interest rates or wider spreads will reduce the value of our existing assets. These exposures fall within our risk-taking philosophy and appetite and are therefore generally not hedged. Market Risk Sensitivities We utilize a variety of methods and measures to quantify our market risk exposures. These include duration management, key rate duration techniques, convexity measures, cash flow gap analysis, scenario testing, and sensitivity testing of earnings and regulatory capital ratios versus risk appetite limits. Our net income (1) is affected by the determination of policyholder obligations under our annuity and insurance contracts. These amounts are determined using internal valuation models and are recorded in our Annual Consolidated Financial Statements, primarily as Insurance contract liabilities. The determination of these obligations requires management to make assumptions about the future level of equity market performance, interest rates, credit and swap spreads and other factors over the life of our products. Differences between our actual experience and our best estimate assumptions are reflected in our Annual Consolidated Financial Statements. Refer to Additional Cautionary Language and Key Assumptions Related to Sensitivities in this section for important additional information regarding these estimates. Equity Market Sensitivities As at December 31, 2018 ($ millions, unless otherwise noted) Change in Equity Markets (1) 25% decrease 10% decrease 10% increase 25% increase Potential impact on net income (2)(3) $ (300 ) $ (100 ) $ 100 $ 250 Potential impact on OCI (3) $ (100 ) $ (50 ) $ 50 $ 100 As at December 31, 2017 Change in Equity Markets (1) 25% decrease 10% decrease 10% increase 25% increase Potential impact on net income (2)(3) $ (300 ) $ (100 ) $ 100 $ 300 Potential impact on OCI (3) $ (200 ) $ (50 ) $ 50 $ 200 (1) Represents the respective change across all equity markets as at December 31, 2018 and December 31, 2017. Assumes that actual equity exposures consistently and precisely track the broader equity markets. Since in actual practice equity-related exposures generally differ from broad market indices (due to the impact of active management, basis risk, and other factors), realized sensitivities may differ significantly from those illustrated above. Sensitivities include the impact of re-balancing equity hedges for dynamic hedging programs at 2% intervals (for 10% changes in equity markets) and at 5% intervals (for 25% changes in equity markets). (2) The market risk sensitivities include the estimated mitigation impact of our hedging programs in effect as at December 31, 2018 and December 31, 2017, and include new business added and product changes implemented prior to such dates. (3) Net income and OCI sensitivities have been rounded to the nearest $50 million. The sensitivities exclude the market impacts on the income from our joint ventures and associates, which we account for on an equity basis. ($ millions, unless otherwise noted) As at December 31, 2018 As at December 31, 2017 Change in Interest Rates (1) 50 basis point decrease 50 basis point increase 50 basis point decrease 50 basis point increase Potential impact on net income (2)(3)(4) $ (100 ) $ 50 $ (100 ) $ 50 Potential impact on OCI (3) $ 250 $ (250 ) $ 250 $ (250 ) (1) Interest rate sensitivities assume a parallel shift in assumed interest rates across the entire yield curve as at December 31, 2018 and December 31, 2017 with no change to the Actuarial Standards Board ("ASB") promulgated Ultimate Reinvestment Rate ("URR"). Variations in realized yields based on factors such as different terms to maturity and geographies may result in realized sensitivities being significantly different from those illustrated above. Sensitivities include the impact of re-balancing interest rate hedges for dynamic hedging programs at 10 basis point intervals (for 50 basis point changes in interest rates). (2) The market risk sensitivities include the estimated mitigation impact of our hedging programs in effect as at December 31, 2018 and December 31, 2017, and include new business added and product changes implemented prior to such dates. (3) Net income and OCI sensitivities have been rounded to the nearest $50 million. The sensitivities exclude the market impacts on the income from our joint ventures and associates, which we account for on an equity basis. (4) The majority of interest rate sensitivity, after hedging, is attributed to individual insurance products. We also have interest rate sensitivity, after hedging, from our fixed annuity and segregated funds products. The above sensitivities were determined using a 50 basis point change in interest rates and a 10% change in our equity markets because we believe that these market shocks were reasonably possible as at December 31, 2018. We have also disclosed the impact of a 25% change in equity markets to illustrate that significant changes in equity market levels may result in other than proportionate impacts on our sensitivities. Credit Spread and Swap Spread Sensitivities We have estimated the immediate impact or sensitivity of our net income attributable to certain instantaneous changes in credit and swap spreads. The credit spread sensitivities reflect the impact of changes in credit spreads on our asset and liability valuations (including non-sovereign fixed income assets, provincial governments, corporate bonds, and other fixed income assets). The swap spread sensitivities reflect the impact of changes in swap spreads on swap-based derivative positions and liability valuations. ($ millions, unless otherwise noted) Credit Spread Sensitivities (1) Swap Spread Sensitivities Net income sensitivity (2) 50 basis point decrease 50 basis point increase 20 basis point decrease 20 basis point increase December 31, 2018 $ (75 ) $ 75 $ 25 $ (25 ) December 31, 2017 $ (100 ) $ 100 $ 25 $ (25 ) (1) In most instances, credit spreads are assumed to revert to long-term insurance contract liability assumptions generally over a five-year period. (2) Sensitivities have been rounded to the nearest $25 million. The credit and swap spread sensitivities assume a parallel shift in the indicated spreads across the entire term structure. Variations in realized spread changes based on different terms to maturity, geographies, asset classes and derivative types, underlying interest rate movements, and ratings may result in realized sensitivities being significantly different from those provided above. The credit spread sensitivity estimates exclude any credit spread impact that may arise in connection with asset positions held in segregated funds. Spread sensitivities are provided for the consolidated entity and may not be proportional across all reporting segments. Refer to Additional Cautionary Language and Key Assumptions Related to Sensitivities in this section for important additional information regarding these estimates. Market Risk Management Strategies We have implemented asset-liability management and hedging programs involving regular monitoring and adjustment of market risk exposures using assets, derivative instruments and repurchase agreements to maintain market risk exposures within our risk appetite. The general availability and cost of these hedging instruments may be adversely impacted by a number of factors including changes in interest rates, increased volatility in capital markets, and changes in the general market and regulatory environment within which these hedging programs operate. In particular, regulations for over-the-counter derivatives could impose additional costs and could affect our hedging strategy. In addition, these programs may themselves expose us to other risks. Foreign Currency Risk Foreign currency risk is the result of mismatches in the currency of our assets and liabilities (inclusive of capital), and cash flows. This risk may arise from a variety of sources such as foreign currency transactions and services, foreign currency hedging, investments denominated in foreign currencies, investments in foreign subsidiaries and net income from foreign operations. Changes or volatility in foreign exchange rates could adversely affect our financial condition and results of operations. As an international provider of financial services, we operate in a number of countries, with revenues and expenses denominated in several local currencies. In each country in which we operate, we generally maintain the currency profile of assets to match the currency of aggregate liabilities and required surplus. This approach provides an operational hedge against disruptions in local operations caused by currency fluctuations. Foreign currency derivative contracts such as currency swaps and forwards are used as a risk management tool to manage the currency exposure in accordance with our Asset Liability Management Policy. As at December 31, 2018 and December 31, 2017, the Company did not have a material foreign currency risk exposure on a functional currency basis. Changes in exchange rates can affect our net income and surplus when financial results in functional currencies are translated into Canadian dollars. Net income earned outside of Canada is generally not currency hedged and a weakening in the local currency of our foreign operations relative to the Canadian dollar can have a negative impact on our net income reported in Canadian currency. A strengthening in the local currency of our foreign operations relative to the Canadian dollar would have the opposite effect. Regulatory capital ratios could also be impacted by changes in exchange rates. Additional Cautionary Language and Key Assumptions Related to Sensitivities Our market risk sensitivities are measures of our estimated change in net income and OCI for changes in interest rates and equity market price levels described above, based on interest rates, equity market prices and business mix in place as at the respective calculation dates. These sensitivities are calculated independently for each risk factor, generally assuming that all other risk variables stay constant. The sensitivities do not take into account indirect effects such as potential impacts on goodwill impairment or valuation allowances on deferred tax assets. The sensitivities are provided for the consolidated entity and may not be proportional across all reporting segments. Actual results can differ materially from these estimates for a variety of reasons, including differences in the pattern or distribution of the market shocks, the interaction between these risk factors, model error, or changes in other assumptions such as business mix, effective tax rates, policyholder behaviour, currency exchange rates and other market variables relative to those underlying the calculation of these sensitivities. The extent to which actual results may differ from the indicative ranges will generally increase with larger capital market movements. Our sensitivities as at December 31, 2017 have been included for comparative purposes only. The sensitivities reflect the composition of our assets and liabilities as at December 31, 2018 and December 31, 2017, respectively. Changes in these positions due to new sales or maturities, asset purchases/sales, or other management actions could result in material changes to these reported sensitivities. In particular, these sensitivities reflect the expected impact of hedging activities based on the hedge programs in place as at the December 31 calculation dates. The actual impact of hedging activity can differ materially from that assumed in the determination of these indicative sensitivities due to ongoing hedge re-balancing activities, changes in the scale or scope of hedging activities, changes in the cost or general availability of hedging instruments, basis risk (i.e., the risk that hedges do not exactly replicate the underlying portfolio experience), model risk, and other operational risks in the ongoing management of the hedge programs or the potential failure of hedge counterparties to perform in accordance with expectations. The sensitivities are based on methods and assumptions in effect as at December 31, 2018 and December 31, 2017, as applicable. Changes in the regulatory environment, accounting or actuarial valuation methods, models, or assumptions (including changes to the ASB promulgated URR) after those dates could result in material changes to these reported sensitivities. Changes in interest rates and equity market prices in excess of the ranges illustrated may result in other than proportionate impacts. Our hedging programs may themselves expose us to other risks, including basis risk (i.e., the risk that hedges do not exactly replicate the underlying portfolio experience), volatility risk, derivative counterparty credit risk, and increased levels of liquidity risk, model risk and other operational risks. These factors may adversely impact the net effectiveness, costs, and financial viability of maintaining these hedging programs and therefore adversely impact our profitability and financial position. While our hedging programs are intended to mitigate these effects (e.g., hedge counterparty credit risk is managed by maintaining broad diversification, dealing primarily with highly rated counterparties, and transacting through over-the-counter contracts cleared through central clearing houses, exchange-traded contracts or bilateral over-the-counter contracts negotiated directly between counterparties that include credit support annexes), residual risk, potential reported earnings and capital volatility remain. For the reasons outlined above, our sensitivities should only be viewed as directional estimates of the underlying sensitivities of each factor under these specialized assumptions, and should not be viewed as predictors of our future net income, OCI, and capital. Given the nature of these calculations, we cannot provide assurance that actual impact will be consistent with the estimates provided. The following table summarizes the contractual maturities of our significant financial liabilities and contractual commitments as at December 31, 2018 and December 31, 2017: Financial Liabilities and Contractual Obligations December 31, 2018 ($ millions) Within 1 year 1 year to 3 years 3 years to 5 years Over 5 years Total Insurance and investment contract liabilities (1) $ 11,950 $ 8,388 $ 8,653 $ 264,246 $ 293,237 Senior debentures and unsecured financing (2) 438 556 234 4,880 6,108 Subordinated debt (2) 103 207 207 3,724 4,241 Bond repurchase agreements 1,824 — — — 1,824 Accounts payable and accrued expenses 5,971 — — — 5,971 Secured borrowings from mortgage securitization 182 435 187 817 1,621 Borrowed funds (2) 55 49 45 68 217 Total liabilities $ 20,523 $ 9,635 $ 9,326 $ 273,735 $ 313,219 Contractual commitments (3) Contractual loans, equities and mortgages $ 1,157 $ 1,044 $ 536 $ 1,063 $ 3,800 Operating leases 138 230 182 506 1,056 Total contractual commitments $ 1,295 $ 1,274 $ 718 $ 1,569 $ 4,856 December 31, 2017 ($ millions) Within 1 year 1 year to 3 years 3 years to 5 years Over 5 years Total Insurance and investment contract liabilities (1) $ 10,242 $ 7,552 $ 7,729 $ 242,181 $ 267,704 Senior debentures and unsecured financing (2) 120 516 489 4,393 5,518 Subordinated debt (2) 126 251 251 4,229 4,857 Bond repurchase agreements 1,976 — — — 1,976 Accounts payable and accrued expenses 5,814 — — — 5,814 Secured borrowings from mortgage securitization 81 333 398 701 1,513 Borrowed funds (2) 80 52 49 83 264 Total liabilities $ 18,439 $ 8,704 $ 8,916 $ 251,587 $ 287,646 Contractual commitments (3) Contractual loans, equities and mortgages $ 1,138 $ 820 $ 214 $ 761 $ 2,933 Operating leases 116 207 148 452 923 Total contractual commitments $ 1,254 $ 1,027 $ 362 $ 1,213 $ 3,856 (1) These amounts represent the undiscounted estimated cash flows of insurance and investment contract liabilities on our Consolidated Statements of Financial Position. These cash flows include estimates related to the timing and payment of death and disability claims, policy surrenders, policy maturities, annuity payments, minimum guarantees on segregated fund products, policyholder dividends, amounts on deposit, commissions and premium taxes offset by contractual future premiums and fees on in-force contracts. These estimated cash flows are based on the best estimated assumptions used in the determination of insurance and investment contract liabilities. Due to the use of assumptions, actual cash flows will differ from these estimates. (2) Payments due based on maturity dates and include expected interest payments. Actual redemption of certain securities may occur sooner as some include an option for the issuer to call the security at par at an earlier date. (3) Contractual commitments and operating lease commitments are not reported on our Consolidated Financial Statements. Additional information on these commitments is included in Note 23 of our 2018 Annual Consolidated Financial Statements. Additional information on liquidity risk can be found in Note 6 to our 2018 Annual Consolidated Financial Statements and the Risk Factors section in the AIF. |
Insurance Risk Management
Insurance Risk Management | 12 Months Ended |
Dec. 31, 2018 | |
Insurance Contracts [Abstract] | |
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 & Conduct Review Committee. • Risk appetite limits have been established for policyholder behaviour, mortality and morbidity, and longevity risks. • Income and regulatory capital sensitivities are monitored, managed and reported against pre-established risk limits. • 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 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. • The Insurance Risk Policy and Investment and Credit Risk Management 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 & Conduct Review 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 DCAT, 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. We use reinsurance to limit losses, minimize exposure to significant risks and to provide additional capacity for growth. 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 our retention limit is $25 in Canada and is US $25 outside of Canada. For survivorship life insurance, our maximum global retention limit is $30 in Canada and is US $30 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, net income and equity would be decreased by about $250 ( $240 in 2017 ) if the termination rate assumption were reduced by 10 %. For products where more terminations would be financially adverse to us, net income and equity would be decreased by about $195 ($ 175 in 2017 ) if the termination rate assumption were increased by 10% . These sensitivities reflect the impact of any applicable ceded reinsurance arrangements. 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 monitored to 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, 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. The risk of adverse morbidity experience also increases during economic slowdowns, especially with respect to disability coverages, as well as with 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. External factors including medical advances could adversely affect our life insurance, health insurance, critical illness, disability, long-term care insurance and annuity businesses. For life insurance products for which higher mortality would be financially adverse to the Company, a 2% increase in the best estimate assumption would decrease net income and equity by about $35 ( $55 in 2017 ). This sensitivity reflects the impact of any applicable ceded reinsurance arrangements. For products where morbidity is a significant assumption, a 5% adverse change in the assumptions would reduce net income and equity by about $185 ( $175 in 2017 ) . This sensitivity reflects the impact of any applicable ceded reinsurance arrangements. 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 & Conduct Review 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 (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 net income and equity by about $120 ($ 120 in 2017 ) . These sensitivities reflect the impact of any applicable ceded reinsurance arrangements. 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 & Conduct Review 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, and 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 net income and equity of about $175 ( $160 in 2017 ) . These sensitivities reflect the impact of any applicable ceded reinsurance arrangements. 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 an increased possibility of rate increases or renegotiation of legacy reinsurance contracts by our reinsurers, as the global reinsurance industry continues 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 and Credit Risk Management Policy approved by the Risk & Conduct Review Committee, which set acceptance criteria and processes to monitor the level of reinsurance ceded to any single reinsurer or group of reinsurers. 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 & Conduct Review Committee. New sales of our products can be discontinued or changed to reflect developments in the reinsurance markets. Rates for in-force reinsurance treaties can be either guaranteed or adjustable for the life of the ceded policy. There is generally more than one reinsurer supporting a reinsurance pool to diversify this risk. |
Other Assets
Other Assets | 12 Months Ended |
Dec. 31, 2018 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Other Assets | Other assets consist of the following: As at December 31, 2018 2017 Accounts receivable $ 1,451 $ 1,579 Investment income due and accrued 1,131 1,078 Property and equipment 621 624 Deferred acquisition costs (1) 130 160 Prepaid expenses 309 282 Premium receivable 567 522 Accrued post-retirement benefit assets (Note 25) 184 82 Other 105 81 Total other assets $ 4,498 $ 4,408 (1) Amortization of deferred acquisition cost charged to income during the year amounted to $33 in 2018 ( $53 in 2017 ). |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Intangible Assets [Abstract] | |
Goodwill and Intangible Assets | 9.A Goodwill Changes in the carrying amount of goodwill acquired through business combinations by reportable segment are as follows: SLF Canada SLF U.S. SLF Asia SLF Asset Management Corporate Total Balance, January 1, 2017 $ 2,573 $ 1,112 $ 686 $ 767 $ 179 $ 5,317 Acquisitions (Note 3) — — 16 — — 16 Foreign exchange rate movements — (69 ) (47 ) (38 ) 4 (150 ) Balance, December 31, 2017 $ 2,573 $ 1,043 $ 655 $ 729 $ 183 $ 5,183 Acquisitions 34 7 — — — 41 Foreign exchange rate movements — 88 50 46 4 188 Balance, December 31, 2018 $ 2,607 $ 1,138 $ 705 $ 775 $ 187 $ 5,412 Goodwill was no t impaired in 2018 or 2017 . The carrying amounts of goodwill allocated to our CGUs or groups of CGUs are as follows: As at December 31, 2018 2017 SLF Canada Individual $ 1,100 $ 1,066 Group retirement services 453 453 Group benefits 1,054 1,054 SLF U.S. Employee benefits group 1,138 1,043 SLF Asia 705 655 SLF Asset Management MFS 515 481 Sun Life Investment Management ("SLIM") 260 248 Corporate U.K. 187 183 Total $ 5,412 $ 5,183 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. 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 9.0% to 12.5% (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 0.6% 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 generated software Other Indefinite life Total Gross carrying amount Balance, January 1, 2017 $ 518 $ 1,172 $ 661 $ 2,351 Additions 81 5 — 86 Acquisitions (Note 3) — 61 — 61 Disposals (3 ) — — (3 ) Foreign exchange rate movements (17 ) (36 ) (36 ) (89 ) Balance, December 31, 2017 $ 579 $ 1,202 $ 625 $ 2,406 Additions 118 (1 ) — 117 Acquisitions — 19 3 22 Foreign exchange rate movements 25 46 45 116 Balance, December 31, 2018 $ 722 $ 1,266 $ 673 $ 2,661 Accumulated amortization and impairment losses Balance, January 1, 2017 $ (291 ) $ (353 ) $ (4 ) $ (648 ) Amortization charge for the year (59 ) (53 ) — (112 ) Disposals 3 — — 3 Foreign exchange rate movements 9 9 — 18 Balance, December 31, 2017 $ (338 ) $ (397 ) $ (4 ) $ (739 ) Amortization charge for the year (66 ) (53 ) — (119 ) Foreign exchange rate movements (13 ) (11 ) — (24 ) Balance, December 31, 2018 $ (417 ) $ (461 ) $ (4 ) $ (882 ) Net carrying amount, end of period: As at December 31, 2017 $ 241 $ 805 $ 621 $ 1,667 As at December 31, 2018 $ 305 $ 805 $ 669 $ 1,779 The components of the intangible assets are as follows: As at December 31, 2018 2017 Finite life intangible assets: Distribution, sales potential of field force $ 366 $ 376 Client relationships and asset administration contracts 439 429 Internally generated software 305 241 Total finite life intangible assets 1,110 1,046 Indefinite life intangible assets: Fund management contracts (1) 669 621 Total indefinite life intangible assets 669 621 Total intangible assets $ 1,779 $ 1,667 (1) Fund management contracts are attributable to SLF 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, 2018 | |
Insurance Contracts [Abstract] | |
Insurance Contract Liabilities and Investment Contract Liabilities | 10.A Insurance Contract Liabilities 10.A.i Description of Business The majority of the products sold by the Company are insurance contracts. These contracts 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, 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 high end of the range for expenses and in the mid-range or higher for other assumptions. 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. Lapse and Other 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 Insurance contract liabilities consist of the following: As at December 31, 2018 SLF Canada SLF U.S. SLF Asia Corporate (1) Total Individual participating life $ 21,095 $ 5,785 $ 6,651 $ 1,076 $ 34,607 Individual non-participating life and health 11,435 13,239 12,463 391 37,528 Group life and health 9,591 5,674 32 — 15,297 Individual annuities 9,267 25 (44 ) 5,608 14,856 Group annuities 12,461 6 147 — 12,614 Insurance contract liabilities before other policy liabilities 63,849 24,729 19,249 7,075 114,902 Add: Other policy liabilities (2) 3,049 1,457 2,276 239 7,021 Total insurance contract liabilities $ 66,898 $ 26,186 $ 21,525 $ 7,314 $ 121,923 (1) Primarily business from the U.K. and run-off reinsurance operations. Includes U.K. business of $980 for Individual participating life, $240 for Individual non-participating life and health, $5,214 for Individual annuities, and $170 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, 2017 SLF Canada SLF U.S. (1) SLF Asia (1) Corporate (2) Total Individual participating life $ 20,918 $ 5,582 $ 6,705 $ 1,186 $ 34,391 Individual non-participating life and health 11,161 12,024 11,449 394 35,028 Group life and health 9,131 5,427 33 11 14,602 Individual annuities 9,178 25 (68 ) 6,215 15,350 Group annuities 11,607 7 106 — 11,720 Insurance contract liabilities before other policy liabilities 61,995 23,065 18,225 7,806 111,091 Add: Other policy liabilities (3) 3,088 1,345 2,032 229 6,694 Total insurance contract liabilities $ 65,083 $ 24,410 $ 20,257 $ 8,035 $ 117,785 (1) Balances in 2017 have been changed to conform with current year presentation as a result of the resegmentation described in Note 4. (2) Primarily business from the U.K. and run-off reinsurance operations. Includes U.K. business of $1,089 for Individual participating life, $250 for Individual non-participating life and health, $5,692 for Individual annuities, and $158 for Other policy liabilities. (3) Consists of amounts on deposit, policy benefits payable, provisions for unreported claims, provisions for policyholder dividends, and provisions for experience rating refunds. 10.A.iv Changes in Insurance Contract Liabilities and Reinsurance Assets Changes in Insurance contract liabilities and Reinsurance assets are as follows: For the years ended December 31, 2018 2017 Insurance contract liabilities Reinsurance assets Net Insurance contract liabilities Reinsurance assets Net Balances, before Other policy liabilities and assets as at January 1, $ 111,091 $ 3,503 $ 107,588 $ 108,411 $ 4,541 $ 103,870 Change in balances on in-force policies (3,094 ) (129 ) (2,965 ) 2,757 (779 ) 3,536 Balances arising from new policies 3,780 128 3,652 2,941 156 2,785 Method and assumption changes (374 ) (96 ) (278 ) (371 ) (198 ) (173 ) Increase (decrease) in Insurance contract liabilities and Reinsurance assets 312 (97 ) 409 5,327 (821 ) 6,148 Foreign exchange rate movements 3,499 247 3,252 (2,647 ) (217 ) (2,430 ) Balances before Other policy liabilities and assets 114,902 3,653 111,249 111,091 3,503 107,588 Other policy liabilities and assets 7,021 488 6,533 6,694 525 6,169 Total Insurance contract liabilities and Reinsurance assets, December 31 $ 121,923 $ 4,141 $ 117,782 $ 117,785 $ 4,028 $ 113,757 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, 2018 Net increase (decrease) before income taxes Description Mortality / Morbidity $ (337 ) Updates to reflect mortality/morbidity experience in all jurisdictions. The largest items were favourable mortality in SLF Asia International, SLF Canada Group Retirement Services and SLF U.K. Lapse and other policyholder behaviour 563 Updates to lapse and other policyholder behaviour in all jurisdictions. The largest items, which all had unfavourable impacts, were updated lapse assumptions in SLF U.S. and SLF Asia International. Expenses 6 Updates to reflect expense experience in all jurisdictions including updates to SLF Canada participating life accounts. Investment returns (331 ) Updates to various investment-related assumptions across the Company including updates to SLF Canada participating life accounts. Model enhancements and other (179 ) Various enhancements and methodology changes across all jurisdictions. The largest items were a favourable change to the participating provisions for adverse deviation in SLF Canada and SLF U.S., partially offset by a change in reinsurance provisions in SLF U.S. Total impact of method and assumption changes $ (278 ) For the year ended December 31, 2017 Net increase (decrease) before income taxes Description Mortality / Morbidity $ (286 ) Updates to reflect mortality/morbidity experience in all jurisdictions. The largest items were favourable mortality in SLF U.S. In-force Management and SLF Asia International insurance and favourable mortality improvement in SLF U.K. Lapse and other policyholder behaviour 149 Updates to reflect lapse and other policyholder behaviour experience in all jurisdictions. The largest items were lower lapse rates on lapse supported business in SLF U.S. and updated lapse assumptions in SLF Canada's individual insurance business. Expenses 71 Updates to reflect expense experience in all jurisdictions. The largest items were a refinement to the allocation of expenses in SLF Canada and increased expenses in the closed block of business in SLF Asia International wealth. Investment returns (62 ) Updates to various investment related assumptions across the Company. This included a reduction of the provision for investment risk in SLF Canada and other updated investment related assumptions, offset partially by updates to promulgated ultimate reinvestment rates. Model enhancements and other (45 ) Various enhancements and methodology changes across all jurisdictions. Includes the favourable impact on insurance contract liabilities from the resolution of tax uncertainties in a U.S. subsidiary and updates to the SLF Canada participating individual life business, partially offset by changes due to U.S. tax reform and updates to reflect reinsurance market conditions. Total impact of method and assumption changes $ (173 ) 10.B Investment Contract Liabilities 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 U.K. and Hong Kong • Non-unit-linked pensions contracts issued in the U.K. and Hong Kong 10.B.ii Method and Assumption Changes 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 Investment contract liabilities consist of the following: As at December 31, 2018 SLF Canada SLF Asia Corporate Total Individual participating life $ — $ — $ 6 $ 6 Individual non-participating life and health — 254 3 257 Individual annuities 2,646 — 43 2,689 Group annuities — 212 — 212 Total investment contract liabilities $ 2,646 $ 466 $ 52 $ 3,164 Included in the Investment contract liabilities of $ 3,164 are liabilities of $515 for investment contracts with DPF, $2,646 for investment contracts without DPF measured at amortized cost, and $3 for investment contracts without DPF measured at fair value. As at December 31, 2017 SLF Canada SLF Asia Corporate Total Individual participating life $ — $ — $ 8 $ 8 Individual non-participating life and health — 260 3 263 Individual annuities 2,517 — 48 2,565 Group annuities — 246 — 246 Total investment contract liabilities $ 2,517 $ 506 $ 59 $ 3,082 Included in the Investment contract liabilities of $3,082 are liabilities of $562 for investment contracts with DPF, $2,517 for investment contracts without DPF measured at amortized cost, and $3 for investment contracts without DPF measured at fair value. 10.B.iv Changes in Investment Contract Liabilities Changes in investment contract liabilities without DPF are as follows: For the years ended December 31, 2018 2017 Measured at fair value Measured at amortized cost Measured at fair value Measured at amortized cost Balance as at January 1 $ 3 $ 2,517 $ 3 $ 2,305 Deposits — 483 — 470 Interest — 53 — 47 Withdrawals — (420 ) — (322 ) Fees — (8 ) — (5 ) Other — 21 — 19 Change in assumptions — — — 3 Balance as at December 31 $ 3 $ 2,646 $ 3 $ 2,517 Changes in investment contract liabilities with DPF are as follows: For the years ended December 31, 2018 2017 Balance as at January 1 $ 562 $ 605 Change in liabilities on in-force (84 ) (10 ) Liabilities arising from new policies — 1 Increase (decrease) in liabilities (84 ) (9 ) Foreign exchange rate movements 37 (34 ) Balance as at December 31 $ 515 $ 562 10.C Gross Claims and Benefits Paid Gross claims and benefits paid consist of the following: For the years ended December 31, 2018 2017 Maturities and surrenders $ 2,609 $ 2,389 Annuity payments 1,876 1,849 Death and disability benefits 3,948 3,836 Health benefits 6,421 6,079 Policyholder dividends and interest on claims and deposits 1,132 1,200 Total gross claims and benefits paid $ 15,986 $ 15,353 10.D Total Assets Supporting Liabilities and Equity The following tables show the total assets supporting total liabilities for the product lines shown (including insurance contract and investment contract liabilities) and assets supporting equity and other: As at December 31, 2018 Debt securities Equity securities Mortgages and loans Investment properties Other Total Individual participating life $ 19,624 $ 2,557 $ 7,978 $ 4,736 $ 4,397 $ 39,292 Individual non-participating life and health 18,720 1,303 14,398 1,638 9,058 45,117 Group life and health 6,271 70 9,217 — 2,882 18,440 Individual annuities 11,918 49 5,769 — 959 18,695 Group annuities 6,448 35 6,298 — 822 13,603 Equity and other 11,462 620 3,162 783 17,591 33,618 Total assets $ 74,443 $ 4,634 $ 46,822 $ 7,157 $ 35,709 $ 168,765 As at December 31, 2017 Debt securities Equity securities Mortgages and loans Investment properties Other Total Individual participating life $ 18,855 $ 3,190 $ 7,458 $ 4,645 $ 4,508 $ 38,656 Individual non-participating life and health 18,560 1,720 12,360 1,348 8,702 42,690 Group life and health 6,003 73 8,799 — 2,667 17,542 Individual annuities 12,001 50 5,506 — 1,303 18,860 Group annuities 6,076 45 5,840 — 538 12,499 Equity and other 11,124 942 2,842 1,074 16,491 32,473 Total assets $ 72,619 $ 6,020 $ 42,805 $ 7,067 $ 34,209 $ 162,720 10.E 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 2018 analysis tested our capital adequacy until December 31, 2022, 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, 2018 | |
Insurance Contracts [Abstract] | |
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, 2018 SLF Canada SLF U.S. SLF Asia Corporate (1) Total Individual participating life $ 20 $ 10 $ 180 $ — $ 210 Individual non-participating life and health (205 ) 1,076 36 21 928 Group life and health 358 1,848 2 — 2,208 Individual annuities — — — 186 186 Group annuities 121 — — — 121 Reinsurance assets before other policy assets 294 2,934 218 207 3,653 Add: Other policy assets (2) 80 307 42 59 488 Total Reinsurance assets $ 374 $ 3,241 $ 260 $ 266 $ 4,141 (1) Primarily business from the U.K. and run-off reinsurance operations. Includes U.K. business of $21 for Individual non-participating life and health, and $47 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, 2017 SLF Canada SLF U.S. (1) SLF Asia (1) Corporate (2) Total Individual participating life $ 4 $ (33 ) $ 207 $ — $ 178 Individual non-participating life and health 129 809 73 22 1,033 Group life and health 342 1,626 2 — 1,970 Individual annuities — — — 195 195 Group annuities 127 — — — 127 Reinsurance assets before other policy assets 602 2,402 282 217 3,503 Add: Other policy assets (3) 85 353 32 55 525 Total Reinsurance assets $ 687 $ 2,755 $ 314 $ 272 $ 4,028 (1) Balances in 2017 have been changed to conform with current year presentation as a result of the resegmentation described in Note 4. (2) Primarily business from the U.K. and run-off reinsurance operations. Includes U.K. business of $ 22 for Individual non-participating life and health, and $ 58 for Individual annuities. (3) 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 2018 or 2017 . Changes in Reinsurance assets are included in Note 10.A.iv. 11.B Reinsurance (Expenses) Recoveries Reinsurance (expenses) recoveries are comprised of the following: For the years ended December 31, 2018 2017 Recovered claims and benefits $ 1,839 $ 3,704 Commissions 74 85 Reserve adjustments 25 224 Operating expenses and other 83 360 Reinsurance (expenses) recoveries $ 2,021 $ 4,373 11.C Reinsurance Gains or Losses We did not enter into reinsurance arrangements that resulted in profits on inception in 2018 or 2017 . |
Other Liabilities
Other Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Other Liabilities | 12.A Composition of Other Liabilities Other liabilities consist of the following: As at December 31, 2018 2017 Accounts payable $ 2,045 $ 1,972 Bank overdrafts and cash pooling 104 140 Repurchase agreements (Note 5) 1,824 1,976 Accrued expenses and taxes 3,137 2,927 Borrowed funds (1) 188 227 Senior financing (2) 2,066 1,905 Accrued post-retirement benefit liability (Note 25) 651 710 Secured borrowings from mortgage securitization (Note 5) 1,453 1,355 Other 685 775 Total other liabilities $ 12,153 $ 11,987 (1) The change in Borrowed funds relates to net cash flow changes of $ (40) in 2018 ( $(45) in 2017) and foreign exchange rate movements of $ 1 in 2018 ( $(2) in 2017). (2) The change in Senior financing relates to net cash flow changes of $ nil in 2018 ($ nil in 2017) and foreign exchange rate movements of $161 in 2018 ( $(129) in 2017). 12.B Borrowed Funds Borrowed funds include the following: As at December 31, Currency of borrowing Maturity 2018 2017 Encumbrances on real estate Cdn. dollars Current – 2033 $ 177 $ 206 Encumbrances on real estate U.S. dollars Current – 2020 11 21 Total borrowed funds $ 188 $ 227 Interest expense for the borrowed funds was $10 and $13 for 2018 and 2017 . The aggregate maturities of borrowed funds are included in Note 6. 12.C Senior Financing On November 8, 2007, a structured entity consolidated by us issued a US $1,000 variable principal floating rate certificate (the “Certificate”) to a financial institution (the “Lender”). At the same time, Sun Life Assurance Company of Canada-U.S. Operations Holdings, Inc. (“U.S. Holdings”), a subsidiary of SLF Inc., entered into an agreement with the Lender, pursuant to which U.S. Holdings will bear the ultimate obligation to repay the outstanding principal amount of the Certificate and be obligated to make quarterly interest payments at three-month LIBOR plus a fixed spread. SLF Inc. has fully guaranteed the obligation of U.S. Holdings. The structured entity issued additional certificates after the initial issuance, totaling to US $515 , none of which were issued during 2018 and 2017 . Total collateral posted per the financing agreement was US$ nil as at December 31, 2018 (US$ nil as at December 31, 2017 ). The maximum capacity of this agreement is US $2,500 . The agreement expires on November 8, 2037 and the maturity date may be extended annually for additional one -year periods upon the mutual agreement of the parties, provided such date is not beyond November 8, 2067. The agreement can be cancelled or unwound at the option of U.S. Holdings in whole or in part from time to time, or in whole under certain events. For the year ended December 31, 2018 , we recorded $ 57 of interest expense relating to this obligation ( $36 in 2017 ). The fair value of the obligation is $ 1,879 ( $1,776 in 2017 ). The fair value is determined by discounting the expected future cash flows using a current market interest rate adjusted by SLF Inc.'s credit spread and is categorized in Level 3 of the fair value hierarchy. |
Senior Debentures and Innovativ
Senior Debentures and Innovative Capital Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments [Abstract] | |
Senior Debentures and Innovative Capital Instruments | 13.A Senior Debentures (1) The following obligations are included in Senior debentures as at December 31: Interest rate Earliest par call or redemption date Maturity 2018 2017 SLF Inc. senior debentures Series D issued June 30, 2009 (2) 5.70 % n/a 2019 $ 300 $ 300 Series E issued August 23, 2011 (2) 4.57 % n/a 2021 299 299 Sun Life Assurance senior debentures (3) Issued to Sun Life Capital Trust ("SLCT I") Series B issued June 25, 2002 7.09 % June 30, 2032 (4) 2052 200 200 Issued to Sun Life Capital Trust II ("SLCT II") Series C issued November 20, 2009 (5) 6.06 % December 31, 2019 (6) 2108 500 500 Total senior debentures $ 1,299 $ 1,299 Fair value $ 1,390 $ 1,439 (1) All senior debentures are unsecured. (2) Redeemable in whole or in part at any time prior to maturity at a price equal to the greater of par and a price based on the yield of a corresponding Government of Canada bond plus 0.575% for the Series D debentures and 0.53% for the Series E debentures. (3) Redemption is subject to regulatory approval. (4) 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. (5) On December 31, 2019, and every fifth anniversary thereafter (“Interest Reset Date”), the interest rate will reset to an annual rate equal to the five-year Government of Canada bond yield plus 3.60% . (6) Redeemable in whole or in part. If redemption occurs on an Interest Reset Date, the redemption price is par; otherwise, it is the greater of par and a price based on the yield of a corresponding Government of Canada bond plus (i) 0.65% if redemption occurs prior to December 31, 2019, or (ii) 1.30% if redemption occurs after December 31, 2019. Also redeemable in whole at par at any time upon the occurrence of a Regulatory Event or Tax Event, as described in the debenture. 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 $76 for 2018 and 2017 , 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 and SLCT II (together “SL Capital Trusts”), established as trusts 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. SLCT II issued Sun Life ExchangEable Capital Securities – Series 2009-1 (“SLEECS 2009-1”), which are subordinated unsecured debt obligations. Holders of SLEECS 2009-1 are eligible to receive semi-annual interest payments. The proceeds of the issuances of SLEECS B and SLEECS 2009-1 were used by the SL Capital Trusts to purchase senior debentures of Sun Life Assurance. The SL Capital Trusts are 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 the SL Capital Trusts are reported on our Consolidated Financial Statements. The SLEECS 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 the SL Capital Trusts on the SLEECS 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”). In the case of the SLEECS 2009-1, if a Missed Dividend Event occurs or if an interest payment is not made in cash on the SLEECS 2009-1 for any reason, including at the election of Sun Life Assurance, holders of the SLEECS 2009-1 will be required to invest interest paid on the SLEECS 2009-1 in non-cumulative perpetual preferred shares of Sun Life Assurance. In the case of the SLEECS B, 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 the SL Capital Trusts fail to pay in cash the semi-annual interest payments or distributions on the SLEECS 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 and each one thousand dollars principal amount of SLEECS 2009-1 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 automatically exchanged (“Automatic Exchange Event”). Upon an Automatic Exchange Event, former holders of the SLEECS will cease to have any claim or entitlement to distributions, interest or principal against the issuing SL Capital Trusts and will rank as preferred shareholders of Sun Life Assurance in a liquidation of Sun Life Assurance. According to OSFI guidelines, innovative capital instruments can comprise up to 15% of net Tier 1 capital with an additional 5% eligible for Tier 2B capital. As at December 31, 2018 , for regulatory capital purposes of Sun Life Assurance, $699 ( 2017 – $699 ) represented Tier 1 capital. 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 (1)(2)(3)(4) SLEECS B June 25, 2002 June 30, December 31 7.093 % June 30, 2007 Any time $ 200 Sun Life Capital Trust II (1)(2) SLEECS 2009-1 November 20, 2009 June 30, December 31 5.863 % (5) December 31, 2014 No conversion option 500 Total $ 700 (1) Subject to regulatory approval, the SL Capital Trusts may (i) redeem any outstanding SLEECS, in whole or in part, on the redemption date specified above or on any distribution date thereafter, or in the case of SLCT II, on any 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. The SLEECS 2009-1 may be redeemed for cash equivalent to, on any day that is not an Interest Reset Date, accrued and unpaid interest on the SLEECS 2009-1 plus the greater of par and a price calculated to provide an annual yield equal to the yield of a Government of Canada bond maturing on the next Interest Reset Date plus (i) 0.60% if the redemption date is prior to December 31, 2019 or (ii) 1.20% if the redemption date is any time after December 31, 2019. On an Interest Reset Date, the redemption price is equal to par plus accrued and unpaid interest on the SLEECS 2009-1. (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. (4) Holders of SLEECS B may exchange, at any time, all or part of their SLEECS B units for non-cumulative perpetual preferred shares of Sun Life Assurance at an exchange rate for each SLEECS of 40 non-cumulative perpetual preferred shares of Sun Life Assurance. SLCT I will have the right, at any time before the exchange is completed, to arrange for a substituted purchaser to purchase SLEECS tendered for surrender to SLCT I so long as the holder of the SLEECS so tendered has not withheld consent to the purchase of its SLEECS. Any non-cumulative perpetual preferred shares issued in respect of an exchange by the holders of 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. (5) Holders of SLEECS 2009-1 are eligible to receive semi-annual interest payments at a fixed rate until December 31, 2019. The interest rate on the SLEECS 2009-1 will reset on December 31, 2019 and every fifth anniversary thereafter to equal the five-year Government of Canada bond yield plus 3.40% . |
Subordinated Debt
Subordinated Debt | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments [Abstract] | |
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 or redemption date (1) Maturity 2018 2017 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 January 30, 2008 (5) 5.59 % January 30, 2018 (5) 2023 — 400 Issued March 2, 2012 (6) 4.38 % March 2, 2017 (6) 2022 — — Issued May 13, 2014 (7) 2.77 % May 13, 2019 2024 250 249 Issued September 25, 2015 (8) 2.60 % September 25, 2020 2025 499 498 Issued February 19, 2016 (9) 3.10 % February 19, 2021 2026 349 349 Issued September 19, 2016 (10) 3.05 % September 19, 2023 (4) 2028 995 995 Issued November 23, 2017 (11) 2.75 % November 23, 2022 2027 398 398 Total subordinated debt $ 3,039 $ 3,437 Fair value $ 3,129 $ 3,583 (1) The debentures issued by SLF Inc. in 2007 are redeemable at any time and the debentures issued by SLF Inc. in 2014, 2015, 2016, and 2017 are redeemable on or after the date specified. From the date noted, the redemption price is par and redemption may only occur on a scheduled interest payment date. Redemption of all subordinated debentures is subject to regulatory approval. (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 Canadian dollar offered rate for three-month bankers' acceptances ("CDOR"). (4) For redemption of the 2007 debentures prior to the date noted, and for redemptions of the September 19, 2016 debentures 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 0.25% for the 2007 debentures and 0.52% for the September 19, 2016 debentures. (5) Series 2008-1 Subordinated Unsecured 5.59% Fixed/Floating Debentures due 2023. On January 30, 2018, SLF Inc. redeemed all of the outstanding $400 principal amount of these debentures at a redemption price equal to the principal amount together with accrued and unpaid interest. (6) Series 2012-1 Subordinated Unsecured 4.38% Fixed/Floating Debentures due 2022. On March 2, 2017, SLF Inc. redeemed all of the outstanding $800 principal amount of these debentures at a redemption price equal to the principal amount together with accrued and unpaid interest. (7) Series 2014-1 Subordinated Unsecured 2.77% Fixed/Floating Debentures due 2024. From May 13, 2019, interest is payable at 0.75% over CDOR. (8) Series 2015-1 Subordinated Unsecured 2.60% Fixed/Floating Debentures due 2025. From September 25, 2020, interest is payable at 1.43% over CDOR. (9) Series 2016-1 Subordinated Unsecured 3.10% Fixed/Floating Debentures due 2026. From February 19, 2021, interest is payable at 2.20% over CDOR. (10) Series 2016-2 Subordinated Unsecured 3.05% Fixed/Floating Debentures due 2028. From September 19, 2023, interest is payable at 1.85% over CDOR. (11) Series 2017-1 Subordinated Unsecured 2.75% Fixed/Floating Debentures due 2027. From November 23, 2022, interest is payable at 0.74% over CDOR. 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 $105 and $122 for 2018 and 2017 , respectively. |
Share Capital
Share Capital | 12 Months Ended |
Dec. 31, 2018 | |
Share Capital, Reserves And Other Equity Interest [Abstract] | |
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 13 series of Class A non-voting preferred shares, 10 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 the SL Capital Trusts, 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 (in the case of the SLEECS issued by SLCT I) or 6th month (in the case of SLEECS issued by SLCT II) 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, 2018 , 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 The changes in common shares issued and outstanding for the years ended December 31 were as follows: 2018 2017 Common shares (in millions of shares) Number of shares Amount Number of shares Amount Balance, January 1 610.5 $ 8,582 613.6 $ 8,614 Stock options exercised (Note 19) 0.4 16 0.4 18 Common shares purchased for cancellation (1) (12.5 ) (2) (183 ) (3.5 ) (50 ) Common shares issued as consideration for business acquisition 0.1 4 — — Balance, December 31 598.5 $ 8,419 610.5 $ 8,582 (1) On August 14, 2018 and August 14, 2017, SLF Inc. launched normal course issuer bids to purchase and cancel up to 14 million common shares of SLF Inc. ("commons shares") between August 14, 2018 and August 13, 2019 (the "2018 NCIB") and 11.5 million common shares between August 14, 2017 and August 13, 2018, respectively. Common shares purchased for cancellation are purchased through the facilities of the Toronto Stock Exchange, other Canadian stock exchanges, and/or alternative Canadian trading platforms, at prevailing market rates, or by way of private agreements or share repurchase programs under issuer bid exemption orders issued by securities regulatory authorities at a discount to the prevailing market price. On December 10, 2018, in connection with the 2018 NCIB, SLF Inc. implemented an automatic repurchase plan with its designated broker in order to facilitate purchases of common shares. Under the automatic repurchase plan, SLF Inc.’s designated broker may purchase common shares pursuant to the 2018 NCIB at times when SLF Inc. ordinarily would not be active in the market due to regulatory restrictions or self-imposed blackout periods. In 2018 , SLF Inc. purchased and cancelled approximately 12.5 million common shares at an average price per share of $ 50.83 for a total amount of $ 635 under these programs. An additional 0.1 million common shares were purchased in 2018 and cancelled in 2019 at an average price of $44.91 for a total amount of $6 under the 2018 NCIB. The total amount paid to purchase the shares is allocated to Common shares and Retained earnings in our Consolidated Statements of Changes in Equity. The amount allocated to Common shares is based on the average cost per common share and amounts paid above the average cost are allocated to Retained earnings. (2) 1.1 million shares were purchased pursuant to a third-party share repurchase program under an issuer bid exemption order at a discount to the prevailing market price of the common shares on the Toronto Stock Exchange. 15.B Preferred Shares The were no changes in preferred shares issued and outstanding for the years ended December 31, 2018 and December 31, 2017. Further information on the preferred shares outstanding as at December 31, 2018 , is as follows: Class A Preferred shares (in millions of shares) Issue date Annual dividend rate Annual dividend per share Earliest par call or redemption date (1) Number of shares Face amount Net amount (2) Series 1 February 25, 2005 4.75 % $ 1.19 Any time 16.0 $ 400 $ 394 Series 2 July 15, 2005 4.80 % $ 1.20 Any time 13.0 325 318 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 2.275 % (3) $ 0.57 June 30, 2020 (4) 5.2 130 127 Series 9QR (6) June 30, 2015 Floating (5) Floating June 30, 2020 (7) 6.0 150 147 Series 10R (3) August 12, 2011 2.842 % (3) $ 0.71 (8) September 30, 2021 (4) 6.9 173 169 Series 11QR (6) September 30, 2016 Floating (5) Floating September 30, 2021 (7) 1.1 27 26 Series 12R (3) November 10, 2011 3.806 % (3) $ 0.95 (8) December 31, 2021 (4) 12.0 300 293 Total preferred shares 92.2 $ 2,305 $ 2,257 (1) Redemption of all preferred shares 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% , Series 10R – 2.17% and Class A Non-Cumulative 5-Year Rate Reset Preferred Shares Series 12R ("Series 12R Shares") – 2.73% . 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) 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% . (6) 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. (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 2018. |
Interests in Other Entities
Interests in Other Entities | 12 Months Ended |
Dec. 31, 2018 | |
Interests In Other Entities [Abstract] | |
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 U.K., 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 Massachusetts Financial Services Company and the group of companies under SLIM. 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, 2018 2017 Carrying amount of interests in joint ventures and associates $ 1,500 $ 1,369 Our share of: Net income (loss) 91 67 Other comprehensive income (loss) 7 (31 ) Total comprehensive income (loss) $ 98 $ 36 In 2018, we increased our investment in our joint ventures and associates by $64 ( $121 in 2017), primarily in Asia. During 2018 , we received dividends from our joint ventures and associates of $34 ( $36 in 2017 ). We also incurred rental expenses of $16 ( $9 in 2017) related to leases with our joint ventures and associates, with the remaining future rental payments payable to our joint ventures and associates totaling $228 over 14 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 $ 1,223 as at December 31, 2018 ( $1,205 as at December 31, 2017 ). The fair value of these jointly controlled assets is $ 1,307 as at December 31, 2018 ( $1,293 as at December 31, 2017 ). 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, 2018 2017 Type of structured entity Type of investment held Consolidated Statements of Financial Position line item Carrying amount Maximum exposure to loss (1) Carrying amount Maximum exposure to loss (1) Securitization entities – third-party managed Debt securities Debt securities $ 7,366 $ 7,366 $ 5,899 $ 5,899 Securitization entities – third-party managed Short-term securities Cash, cash equivalents and short-term securities $ 430 $ 430 $ 725 $ 725 Investment funds – third-party managed Investment fund units Equity securities $ 3,439 $ 3,439 $ 4,877 $ 4,877 Investment funds – company managed (2) Investment fund units and Limited partnership units Equity securities and Other invested assets $ 1,705 $ 1,705 $ 1,455 $ 1,455 Limited partnerships – third-party managed Limited partnership units Other invested assets $ 1,557 $ 1,557 $ 1,258 $ 1,258 (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 $ 213 ( $245 in 2017 ). 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 A significant structured entity consolidated by us is the entity that issued the senior financing that is described in more detail in Note 12.C. We also consolidate certain investment funds managed by Sun Life Institutional Investments (Canada) Inc. that invest primarily in mortgages and investment properties. |
Fee Income
Fee Income | 12 Months Ended |
Dec. 31, 2018 | |
Analysis of income and expense [abstract] | |
Fee Income | Fee income for the years ended December 31 consists of the following: 2018 2017 (1) Fee income from insurance contracts $ 968 $ 894 Fee income from service contracts: Distribution fees 829 867 Fund management and other asset-based fees 3,444 3,423 Administrative service and other fees 725 658 Total fee income $ 5,966 $ 5,842 (1) Balances in 2017 have been changed to conform with current year presentation as a result of the adoption of IFRS 15 described in Note 2. Distribution fees and Fund management and other asset-based fees are primarily earned in the SLF Asset Management segment. Administrative service and other fees are primarily earned in the SLF Canada segment. The fee income by reportable segment is presented in Note 4. |
Operating Expenses
Operating Expenses | 12 Months Ended |
Dec. 31, 2018 | |
Analysis of income and expense [abstract] | |
Operating Expenses | Operating expenses for the years ended December 31 consist of the following: 2018 2017 Employee expenses (1) $ 3,707 $ 3,672 Premises and equipment 268 263 Capital asset depreciation 107 97 Service fees 870 799 Amortization of intangible assets (Note 9) 119 112 Other expenses (2) 1,361 1,467 Total operating expenses $ 6,432 $ 6,410 (1) See table below for further details. (2) Includes restructuring costs of $60 recorded in 2017 for the Company's plan to enhance business processes and organizational structures and capabilities. Employee expenses for the years ended December 31 consist of the following: 2018 2017 Salaries, bonus, employee benefits $ 3,322 $ 3,155 Share-based payments (Note 19) 346 476 Other personnel costs 39 41 Total employee expenses $ 3,707 $ 3,672 |
Share-Based Payments
Share-Based Payments | 12 Months Ended |
Dec. 31, 2018 | |
Share-Based Payment Arrangements [Abstract] | |
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 for stock options granted after January 1, 2007. 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 numbers of common shares that may be issued under the Executive Stock Option Plan are 29,525,000 shares. The activities in the stock option plans for the years ended December 31 are as follows: 2018 2017 Number of stock options (thousands) Weighted average exercise price Number of stock options (thousands) Weighted average exercise price Balance, January 1, 3,008 $ 33.88 3,397 $ 34.19 Granted 517 $ 53.96 369 $ 48.20 Exercised (399 ) $ 34.57 (437 ) $ 34.70 Forfeited (25 ) $ 43.79 (4 ) $ 47.96 Expired — $ — (317 ) $ 52.54 Balance, December 31, 3,101 $ 37.06 3,008 $ 33.88 Exercisable, December 31, 2,041 $ 30.97 2,071 $ 29.76 The average share price at the date of exercise of stock options for the year ended December 31, 2018 was $53.28 ( $49.98 for 2017 ). Compensation expense for stock options was $3 for the year ended December 31, 2018 ( $3 for 2017 ). The stock options outstanding as at December 31, 2018 , 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 $18.00 to $24.00 624 2.63 $ 21.28 $24.01 to $30.00 350 3.74 $ 27.79 $30.01 to $35.00 308 1.82 $ 31.11 $35.01 to $45.00 949 6.23 $ 39.45 $45.01 to $53.96 870 8.75 $ 51.62 Total stock options 3,101 5.49 $ 37.06 The weighted average fair values of the stock options, calculated using the Black-Scholes option pricing model, granted during the year ended December 31, 2018 was $7.00 ( $9.41 for 2017 ). 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 2018 2017 Risk-free interest rate 2.2 % 1.3 % Expected volatility 21.3 % 31.7 % Expected dividend yield 4 % 4 % Expected life of the option (in years) 6.3 6.3 Exercise price $ 53.96 $ 48.20 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. We recorded an expense of $8 for the year ended December 31, 2018 ( $7 for 2017 ). 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 annual 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. Units 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, 2018 5,967 854 6,821 Units outstanding December 31, 2017 6,507 1,040 7,547 Liability accrued as at December 31, 2018 $ 200 $ 35 $ 235 Liability accrued as at December 31, 2017 $ 250 $ 50 $ 300 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, 2018 2017 Compensation expense $ 87 $ 125 Income tax expense (benefit) $ (21 ) $ (32 ) 19.D Share-Based Payment Plans of MFS Share-based payment awards within MFS are based on their own shares. Restricted share awards and stock option awards are settled in MFS shares and restricted stock unit awards are settled in cash. Restricted share awards, restricted stock unit awards, and stock option 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 and stock option 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 stock option awards is determined using the Black-Scholes option pricing model, while 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, exercise, 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, 2018 was $831 ( $844 as at December 31, 2017 ) which includes a liability of $677 (US $496 ) for the stock options, 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, 2018 2017 Compensation expense $ 248 $ 341 Income tax expense (benefit) $ (49 ) $ (85 ) |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes [Abstract] | |
Income Taxes | 20.A Deferred Income Taxes The following represents the deferred tax assets and liabilities in the Consolidated Statements of Financial Position by source of temporary differences: As at December 31, 2018 2017 Assets (1) Liabilities (1) Assets (1) Liabilities (1) Investments $ (738 ) $ 8 $ (841 ) $ 116 Policy liabilities (2) 1,116 379 1,218 322 Deferred acquisition costs 95 (1 ) 84 7 Losses available for carry forward 600 (48 ) 543 (6 ) Pension and other employee benefits 183 (136 ) 201 (150 ) Other (3) (47 ) 120 90 114 Total $ 1,209 $ 322 $ 1,295 $ 403 Total net deferred tax asset $ 887 $ 892 (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. Negative amounts reported under Assets are deferred tax liabilities included in a net deferred tax asset position; negative amounts under Liabilities are deferred tax assets included in a net deferred tax liability position. (2) Consists of Insurance contract liabilities and Investment contract liabilities net of Reinsurance assets. (3) Includes unused tax credits. The movement in net deferred tax assets for the years ended December 31, are as follows: Investments Policy liabilities (1) Deferred acquisition costs Losses available for carry forward Pension and other employee benefits Other (2) Total As at December 31, 2017 $ (957 ) $ 896 $ 77 $ 549 $ 351 $ (24 ) $ 892 Charged to statement of operations 195 (170 ) 6 107 (26 ) (149 ) (37 ) Charged to other comprehensive income 45 — — (13 ) (17 ) 9 24 Charged to equity, other than other comprehensive income — — 6 — — 3 9 Foreign exchange rate movements (29 ) 11 7 5 11 (6 ) (1 ) As at December 31, 2018 $ (746 ) $ 737 $ 96 $ 648 $ 319 $ (167 ) $ 887 (1) Consists of Insurance contract liabilities and Investment contract liabilities net of Reinsurance assets. (2) Includes unused tax credits. Investments Policy liabilities (1) Deferred acquisition costs Losses available for carry forward Pension and other employee benefits Other (2) Total As at December 31, 2016 $ (1,064 ) $ 517 $ 171 $ 513 $ 410 $ 214 $ 761 Acquisitions (disposals) through business combinations — — — — — (10 ) (10 ) Charged to statement of operations 132 388 (74 ) 43 (66 ) (209 ) 214 Charged to other comprehensive income (73 ) — — (9 ) 22 (4 ) (64 ) Foreign exchange rate movements 48 (9 ) (20 ) 2 (15 ) (15 ) (9 ) As at December 31, 2017 $ (957 ) $ 896 $ 77 $ 549 $ 351 $ (24 ) $ 892 (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 Philippines, and the U.K., totaling $ 3,245 ( $2,662 in 2017 ). The benefit of these tax losses has been recognized to the extent that it is probable that the benefit will be realized. In addition, in the U.S., we have, net capital losses of $3 0 ( $26 in 2017 ) for which a deferred tax asset of $ 6 ( $6 in 2017 ) has been recognized. Unused tax losses for which a deferred tax asset has not been recognized amount to $ 702 as of December 31, 2018 ( $511 in 2017 ) primarily in the Philippines and Indonesia. We also have capital losses of $ 460 in the U.K. ( $449 in 2017 ) and $ 176 in Canada ( $176 in 2017 ) for which a deferred tax asset of $ 102 ( $100 in 2017 ) 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 2028 and the capital losses can be carried forward indefinitely. The operating and capital losses in the U.K. can be carried forward indefinitely. The non-capital losses in the Philippines can be carried forward three years, and the non-capital losses in Indonesia can be carried forward five years. Net capital losses in the U.S. expire beginning in 2021. 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, 2018 , temporary differences associated with investments in subsidiaries, branches, joint ventures and associates for which a deferred tax liability has not been recognized amount to $ 5,723 ( $5,611 in 2017 ). 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: 2018 2017 Current income tax expense (benefit): Current year $ 561 $ 445 Adjustments in respect of prior years, including resolution of tax disputes (1 ) 25 Tax rate and other legislative changes — 46 Total current income tax expense (benefit) 560 516 Deferred income tax expense (benefit): Origination and reversal of temporary differences 42 (151 ) Tax expense (benefit) arising from unrecognized tax losses 4 — Adjustments in respect of prior years, including resolution of tax disputes (9 ) (10 ) Tax rate and other legislative changes — (53 ) Total deferred income tax expense (benefit) 37 (214 ) Total income tax expense (benefit) $ 597 $ 302 20.B.ii Income tax benefit (expense) recognized directly in equity for the years ended December 31: 2018 2017 Recognized in other comprehensive income: Current income tax benefit (expense) $ (4 ) $ 2 Deferred income tax benefit (expense) 24 (64 ) Total recognized in other comprehensive income 20 (62 ) Recognized in equity, other than other comprehensive income: Deferred income tax benefit (expense) 9 — Total income tax benefit (expense) recorded in equity, including tax benefit (expense) recorded in other comprehensive income $ 29 $ (62 ) 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, 2018 2017 % % Total net income (loss) $ 2,914 $ 2,487 Add: Income tax expense (benefit) 597 302 Total net income (loss) before income taxes $ 3,511 $ 2,789 Taxes at the combined Canadian federal and provincial statutory income tax rate $ 939 26.8 $ 746 26.8 Increase (decrease) in rate resulting from: Higher (lower) effective rates on income subject to taxation in foreign jurisdictions (222 ) (6.3 ) (257 ) (9.2 ) Tax exempt investment income (131 ) (3.8 ) (213 ) (7.6 ) Tax (benefit) cost of unrecognized tax losses and tax credits 4 0.1 — — Tax rate and other legislative changes — — (7 ) (0.3 ) Adjustments in respect of prior years, including resolution of tax disputes (10 ) (0.3 ) 15 0.5 Other 17 0.5 18 0.6 Total tax expense (benefit) and effective income tax rate $ 597 17.0 $ 302 10.8 Statutory income tax rates in other jurisdictions in which we conduct business range from 0% to 30% , 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, higher earnings in jurisdictions with higher statutory tax rates result in an increase of our tax expense, while earnings arising in tax jurisdictions with statutory rates lower than 26.75% (rounded to 26.8% in the table above) reduce our tax expense. These differences are reported in higher (lower) effective rates on income subject to taxation in foreign jurisdictions. The benefit reported in 2018 included higher income in jurisdictions with low statutory income tax rates compared to 2017, as well as losses in jurisdictions with high statutory income tax rates. Tax exempt investment income includes tax rate differences related to various types of investment income that is taxed at rates lower than our statutory income tax rate, such as dividend income, capital gains arising in Canada, and various others. Fluctuations in foreign exchange rates, changes in market values of real estate properties and other investments have an impact on the amount of these tax rate differences. Tax (benefit) cost of unrecognized tax losses/tax credits reflects unrecognized losses in Asia that were recognized in 2018. U.S. tax reform legislation was signed into law on December 22, 2017 and took effect on January 1, 2018. The legislation includes a reduction to the corporate tax rate from 35% to 21% for tax years beginning after 2017, and a one-time tax on the deemed repatriation of foreign earnings. Tax rate and other legislative changes in 2017 includes a benefit relating to the revaluation of our deferred tax balances of $53 and a one-time deemed repatriation charge of $46 . Adjustments in respect of prior periods, including the resolution of tax disputes relates primarily to tax audit adjustments and the finalization of tax filings in Canada, Asia and the U.S. in 2018, and in Canada and the U.S. in 2017. Other in 2018 includes a charge of $ 28 ( $26 in 2017) relating to withholding taxes on distributions from our foreign subsidiaries. The charge has been primarily offset by a benefit of $ 16 relating to investments in joint ventures in Asia ( $16 in 2017), which are accounted for using the equity method. |
Capital Management
Capital Management | 12 Months Ended |
Dec. 31, 2018 | |
Corporate Information And Statement Of IFRS Compliance [Abstract] | |
Capital Management | Our capital base is structured to exceed minimum regulatory and internal capital targets and maintain strong credit and financial strength ratings while maintaining a capital efficient structure. We strive to achieve an optimal capital structure by balancing the use of debt and equity financing. Capital is managed both on a consolidated basis under principles that consider all the risks associated with the business as well as at the business group level under the principles appropriate to the jurisdiction in which each operates. We manage the capital for all of our international subsidiaries on a local statutory basis in a manner commensurate with their individual risk profiles. 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 & Conduct Review 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 & Conduct Review 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. Regulated insurance holding companies and non-operating life companies were subject to the Minimum Continuing Capital and Surplus Requirements ("MCCSR") capital rules which had been established by OSFI and which were in force as at December 31, 2017. Effective January 1, 2018, OSFI has replaced MCCSR with LICAT. Results as measured under LICAT are fundamentally different than under MCCSR and are not directly comparable to MCCSR. The LICAT Guideline sets a Supervisory Target Total Ratio of 100% and a minimum Total Ratio of 90%. The Company has established capital targets in excess of the Supervisory Target Total Ratio. SLF Inc.'s consolidated capital position was above its internal target and exceeded levels that would require regulatory or corrective action as at December 31, 2018 and December 31, 2017 . 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, 2018 and December 31, 2017 . At December 31, 2018, our principal operating life insurance subsidiary in Canada, Sun Life Assurance, is also subject to the LICAT Guideline. With a LICAT Ratio of 131% as at December 31, 2018 , Sun Life Assurance's LICAT Ratio is above OSFI's supervisory target ratio of 100% and regulatory minimum ratio of 90%. In the U.S., Sun Life Assurance operates through a branch which is subject to U.S. regulatory supervision and it exceeded the levels under which regulatory action would be required as at December 31, 2018 and December 31, 2017 . In the U.S., we use captive reinsurance arrangements to provide efficient financing of U.S. statutory reserve requirements in excess of those required under IFRS. Under one such arrangement, the funding of these reserve requirements is supported by a guarantee from SLF Inc. Our capital base consists mainly of common shareholders' equity, participating policyholders' equity, preferred shareholders' 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 was prescribed by OSFI, to the total capital figure presented in the table below: As at December 31, 2018 2017 Subordinated debt $ 3,039 $ 3,437 Innovative capital instruments (1) 699 699 Equity: Participating policyholders' equity 864 650 Preferred shareholders' equity 2,257 2,257 Common shareholders' equity 21,449 20,064 Total capital $ 28,308 $ 27,107 (1) Innovative capital instruments are SLEECS issued by the SL Capital Trusts (Note 13). The SL Capital Trusts are not consolidated by us. 21.B Participating Account Seed Capital In the first quarter of 2018, with OSFI's approval, seed capital, together with interest earned since demutualization, was transferred from the participating account to the shareholder account. The transfer of seed capital is recorded on our Consolidated Statements of Changes in Equity as a Transfer from participating policyholders' equity totaling $ 89 , comprised of $ 50 in SLF Canada and $ 39 (US$ 30 ) in SLF U.S. The transfer of interest on seed capital is included as a reduction in Participating policyholders' net income (loss) and an increase in Shareholders' net income (loss) totaling $ 110 , on a pre- and post-tax basis, comprised of $ 75 in SLF Canada and $ 35 (US$ 28 ) in SLF U.S. At the time of demutualization, OSFI required shareholders to transfer seed capital into the participating account to support participating insurance policies sold after demutualization. It was anticipated that over time the seed capital would no longer be needed and that the seed capital and accumulated interest would be returned to the shareholders, subject to OSFI's approval. The transfer has no impact on regulatory capital requirements, and will have no adverse impact on the policy dividends or security of benefits of participating policyholders. |
Segregated Funds
Segregated Funds | 12 Months Ended |
Dec. 31, 2018 | |
Separate Accounts Disclosure 1 [Abstract] | |
Segregated Funds | We have segregated fund products, including variable annuities, unit-linked products and universal life insurance policies, in Canada, the U.S., the U.K., 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, 2018 and 2017 : Type of fund % Money market 1 to 5 Fixed income 10 to 15 Balanced 40 to 45 Equity 40 to 45 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, 2018 2017 Segregated and mutual fund units $ 89,049 $ 91,637 Equity securities 9,771 10,799 Debt securities 3,448 3,517 Cash, cash equivalents and short-term securities 711 457 Investment properties 400 374 Mortgages 23 20 Other assets 156 147 Total assets $ 103,558 $ 106,951 Less: Liabilities arising from investing activities $ 496 $ 559 Total investments for account of segregated fund holders $ 103,062 $ 106,392 22.B Changes in Insurance Contracts and Investment Contracts for Account of Segregated Fund Holders Changes in insurance contracts and investment contracts for account of segregated fund holders are as follows: Insurance contracts Investment contracts For the years ended December 31, 2018 2017 2018 2017 Balance as at January 1 $ 99,121 $ 90,388 $ 7,271 $ 6,779 Additions to segregated funds: Deposits 11,468 10,772 85 86 Net transfer (to) from general funds (308 ) (119 ) — — Net realized and unrealized gains (losses) (7,123 ) 4,141 (658 ) 883 Other investment income 4,576 4,853 178 152 Total additions $ 8,613 $ 19,647 $ (395 ) $ 1,121 Deductions from segregated funds: Payments to policyholders and their beneficiaries 10,224 9,439 614 643 Management fees 1,004 963 57 57 Taxes and other expenses 256 267 — 12 Foreign exchange rate movements (413 ) 245 (194 ) (83 ) Total deductions $ 11,071 $ 10,914 $ 477 $ 629 Net additions (deductions) $ (2,458 ) $ 8,733 $ (872 ) $ 492 Acquisitions $ — $ — $ — $ — Balance as at December 31 $ 96,663 $ 99,121 $ 6,399 $ 7,271 |
Commitments, Guarantees and Con
Commitments, Guarantees and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
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 $1,056 . 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, 2018 , we had a total of $ 3,800 of contractual commitments outstanding. 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, 2018 , we had credit facilities of $ 891 available for the issuance of letters of credit ( $835 as at December 31, 2017 ), from which a total of $ 227 in letters of credit were outstanding ( $203 as at December 31, 2017 ). 23.D 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, 2018 , 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.E 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 the preferred shares issued by Sun Life Assurance from time to time, 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): Results for the years ended SLF Inc. (unconsolidated) Sun Life Assurance (consolidated) Other subsidiaries of SLF Inc. (combined) Consolidation adjustment SLF Inc. (consolidated) December 31, 2018 Revenue $ 361 $ 22,619 $ 4,453 $ (436 ) $ 26,997 Shareholders' net income (loss) $ 2,616 $ 2,036 $ 382 $ (2,418 ) $ 2,616 December 31, 2017 Revenue $ 441 $ 23,421 $ 7,022 $ (1,550 ) $ 29,334 Shareholders' net income (loss) $ 2,242 $ 1,577 $ 427 $ (2,004 ) $ 2,242 Assets and liabilities as at SLF Inc. (unconsolidated) Sun Life Assurance (consolidated) Other subsidiaries of SLF Inc. (combined) Consolidation adjustment SLF Inc. (consolidated) December 31, 2018 Invested assets $ 24,255 $ 143,040 $ 6,991 $ (22,560 ) $ 151,726 Total other general fund assets $ 4,088 $ 21,958 $ 10,389 $ (19,396 ) $ 17,039 Investments for account of segregated fund holders $ — $ 103,014 $ 48 $ — $ 103,062 Insurance contract liabilities $ — $ 122,066 $ 8,534 $ (8,677 ) $ 121,923 Investment contract liabilities $ — $ 3,164 $ — $ — $ 3,164 Total other general fund liabilities $ 4,636 $ 21,801 $ 5,972 $ (13,301 ) $ 19,108 December 31, 2017 Invested assets $ 23,382 $ 138,145 $ 6,531 $ (21,919 ) $ 146,139 Total other general fund assets $ 7,530 $ 21,437 $ 17,152 $ (29,538 ) $ 16,581 Investments for account of segregated fund holders $ — $ 106,341 $ 51 $ — $ 106,392 Insurance contract liabilities $ — $ 118,003 $ 8,234 $ (8,452 ) $ 117,785 Investment contract liabilities $ — $ 3,082 $ — $ — $ 3,082 Total other general fund liabilities $ 8,591 $ 21,558 $ 12,822 $ (24,089 ) $ 18,882 23.F 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 U.K., 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. In the Fehr action, the motions judge dismissed the plaintiff's motion for certification in its entirety by way of a two-part decision released on November 12, 2015 and December 7, 2016. The plaintiffs appealed and, in a decision released on September 5, 2018, the Ontario Court of Appeal overturned part of the lower court’s decision and certified three alleged breach of contract claims related to the policies. Sun Life Assurance has sought leave to appeal this decision to the Supreme Court of Canada. 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 results of operations of the Company. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party [Abstract] | |
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, 2018 2017 Executive team Directors Executive team Directors Number of individuals 12 10 11 10 Base salary and annual incentive compensation $ 18 $ — $ 18 $ — Additional short-term benefits and other $ 3 $ 1 $ 1 $ 1 Share-based long-term incentive compensation $ 24 $ 2 $ 18 $ 2 Value of pension and post-retirement benefits $ 2 $ — $ 3 $ — 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, 2018 | |
Employee Benefits [Abstract] | |
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 U.K. 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 U.K. 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 U.K. 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, the risk in our U.K. pension plan was reduced through a buy-in insurance contract 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: 2018 2017 Pension Other post-retirement Total Pension Other post-retirement Total Change in defined benefit obligations: Defined benefit obligation, January 1 $ 3,661 $ 268 $ 3,929 $ 3,545 $ 262 $ 3,807 Current service cost 54 5 59 47 3 50 Interest cost 118 9 127 122 10 132 Actuarial losses (gains) (253 ) (11 ) (264 ) 209 9 218 Benefits paid (180 ) (15 ) (195 ) (159 ) (11 ) (170 ) Settlement losses (gains) (1) — — — (86 ) — (86 ) Plan amendments (1 ) — (1 ) (2 ) — (2 ) Foreign exchange rate movement 59 6 65 (15 ) (5 ) (20 ) Defined benefit obligation, December 31 $ 3,458 $ 262 $ 3,720 $ 3,661 $ 268 $ 3,929 Change in plan assets: Fair value of plan assets, January 1 $ 3,301 $ — $ 3,301 $ 3,243 $ — $ 3,243 Administrative expense (1 ) — (1 ) — — — Interest income on plan assets 105 — 105 110 — 110 Return on plan assets (excluding amounts included in net interest expense) (156 ) — (156 ) 116 — 116 Employer contributions 127 15 142 80 11 91 Benefits paid (180 ) (15 ) (195 ) (159 ) (11 ) (170 ) Settlement losses (gains) (1) — — — (80 ) — (80 ) Foreign exchange rate movement 57 — 57 (9 ) — (9 ) Fair value of plan assets, December 31 $ 3,253 $ — $ 3,253 $ 3,301 $ — $ 3,301 Amounts recognized on Statement of Financial Position: Fair value of plan assets $ 3,253 $ — $ 3,253 $ 3,301 $ — $ 3,301 Defined benefit (obligation) (3,458 ) (262 ) (3,720 ) (3,661 ) (268 ) (3,929 ) Net recognized (liability) asset, December 31 $ (205 ) $ (262 ) $ (467 ) $ (360 ) $ (268 ) $ (628 ) Components of net benefit expense recognized: Current service cost $ 54 $ 5 $ 59 $ 47 $ 3 $ 50 Administrative expense 1 — 1 — — — Net interest expense (income) 13 9 22 12 10 22 Settlement losses (gains) (1) — — — (6 ) — (6 ) Plan amendments (1 ) — (1 ) (2 ) — (2 ) Other long-term employee benefit losses (gains) — (3 ) (3 ) — 4 4 Net benefit expense $ 67 $ 11 $ 78 $ 51 $ 17 $ 68 Remeasurement of net recognized (liability) asset: Return on plan assets (excluding amounts included in net interest expense) $ (156 ) $ — $ (156 ) $ 116 $ — $ 116 Actuarial gains (losses) arising from changes in demographic assumptions 7 (2 ) 5 2 1 3 Actuarial gains (losses) arising from changes in financial assumptions 241 8 249 (161 ) (11 ) (172 ) Actuarial gains (losses) arising from experience adjustments 5 2 7 (50 ) 5 (45 ) Foreign exchange rate movement (2 ) (2 ) (4 ) 6 1 7 Components of defined benefit costs recognized in Other comprehensive income (loss) $ 95 $ 6 $ 101 $ (87 ) $ (4 ) $ (91 ) (1) In 2017, the Company terminated and completely settled the defined benefit pension plan of a U.S. subsidiary within the SLF Asset Management segment. 25.C Principal Assumptions for Significant Plans 2018 2017 Canada % U.K. % U.S. % Canada % U.K. % U.S. % To determine defined benefit obligation at end of year: Discount rate for pension plans 3.60 2.85 4.40 3.40 2.30 3.70 Rate of compensation increase 3.00 n/a n/a 3.10 n/a n/a Pension increases 0.00-0.15 3.15 n/a 0.00-0.15 3.50 n/a To determine net benefit expense for year: Discount rate for pension plans 3.40 2.30 3.70 3.70 2.55 4.25 Rate of compensation increase 3.10 n/a n/a 3.00 n/a n/a Pension increases 0.00-0.15 3.50 n/a 0.00-0.15 3.55 n/a Health care trend rates: Initial health care trend rate 5.42 n/a 6.50 5.47 n/a 6.50 Ultimate health care trend rate 4.50 n/a 5.00 4.50 n/a 5.00 Year ultimate health care trend rate reached 2030 n/a 2023 2030 n/a 2023 2018 2017 Canada U.K. U.S. Canada U.K. U.S. Mortality rates: Life expectancy (in years) for individuals currently at age 65: Male 23 24 23 22 24 23 Female 25 25 24 25 26 24 Life expectancy (in years) at 65 for individuals currently at age 45: Male 24 25 24 24 26 24 Female 26 28 26 25 29 26 Average duration (in years) of pension obligation 17.3 16.9 12.2 17.1 19.0 13.3 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, 2018 . 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 benefits Interest/discount rate sensitivity (1) : 1% decrease $ 644 $ 33 1% increase $ (500 ) $ (28 ) Rate of compensation increase assumption: 1% decrease $ (75 ) n/a 1% increase $ 78 n/a Health care trend rate assumption: 1% decrease n/a $ (13 ) 1% increase n/a $ 15 Mortality rates (2) : 10% decrease $ 89 $ 6 (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: 2018 2017 Equity investments 3 % 3 % Fixed income investments 76 % 86 % Real estate investments 8 % 7 % Qualifying insurance contract 9 % — Other 4 % 4 % Total composition of fair value of plan assets 100 % 100 % The fair value of our equity investments in 2018 and 2017 are consistent with Level 1 or Level 2 fair value hierarchy. In 2018 , 2% of our fixed income investments ( 2% in 2017 ) 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, the risk in our U.K. pension plan was reduced through a buy-in insurance contract, 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 $ 118 $ 16 $ 134 Expected Future Benefit Payments 2019 2020 2021 2022 2023 2024 to 2028 Pension $ 160 $ 168 $ 175 $ 183 $ 190 $ 1,022 Post-retirement 16 16 16 17 17 92 Total $ 176 $ 184 $ 191 $ 200 $ 207 $ 1,114 25.G Defined Contribution Plans We expensed $120 in 2018 ( $109 for 2017 ) with respect to defined contribution plans. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings per share [abstract] | |
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, 2018 2017 Common shareholders' net income (loss) for basic earnings per share $ 2,522 $ 2,149 Add: increase in income due to convertible instruments (1) 10 10 Common shareholders' net income (loss) on a diluted basis $ 2,532 $ 2,159 Weighted average number of common shares outstanding for basic earnings per share (in millions) 606 613 Add: dilutive impact of stock options (2) (in millions) 1 1 Add: dilutive impact of convertible instruments (1) (in millions) 4 4 Weighted average number of common shares outstanding on a diluted basis (in millions) 611 618 Basic earnings (loss) per share $ 4.16 $ 3.51 Diluted earnings (loss) per share $ 4.14 $ 3.49 (1) The convertible instruments are the SLEECS B issued by Sun Life Capital Trust. (2) Excludes the impact of 1 million stock options for the year ended December 31, 2018 ($ nil for the year ended December 31, 2017) because these stock options were antidilutive for the period. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) and Non-Controlling Interests | 12 Months Ended |
Dec. 31, 2018 | |
Analysis Of Other Comprehensive Income By Item [Abstract] | |
Accumulated Other Comprehensive Income (Loss) and Non-Controlling Interests | Changes in accumulated other comprehensive income (loss), net of taxes, are as follows: 2018 2017 For the years ended December 31, Balance, beginning of period Other comprehensive income (loss) Balance, end of period Balance, beginning of period Other comprehensive income (loss) Other Balance, Items that may be reclassified subsequently to income: Unrealized foreign currency translation gains (losses), net of hedging activities $ 1,012 $ 911 $ 1,923 $ 1,749 $ (737 ) $ — $ 1,012 Unrealized gains (losses) on available-for-sale assets 346 (402 ) (56 ) 211 135 — 346 Unrealized gains (losses) on cash flow hedges (11 ) (10 ) (21 ) (6 ) (5 ) — (11 ) Share of other comprehensive income (loss) in joint ventures and associates (31 ) 7 (24 ) — (31 ) — (31 ) Items that will not be reclassified subsequently to income: Remeasurement of defined benefit plans (347 ) 84 (263 ) (291 ) (69 ) 13 (1 ) (347 ) Revaluation surplus on transfers to investment properties 145 — 145 6 139 — 145 Total $ 1,114 $ 590 $ 1,704 $ 1,669 $ (568 ) $ 13 $ 1,114 Total attributable to: Participating policyholders $ 9 $ 5 $ 14 $ 16 $ (7 ) $ — $ 9 Shareholders 1,105 585 1,690 1,653 (561 ) 13 1,105 Total $ 1,114 $ 590 $ 1,704 $ 1,669 $ (568 ) $ 13 $ 1,114 (1) During 2017, the Company transferred cumulative remeasurement losses of $13 from accumulated other comprehensive income (loss) to retained earnings as a result of the termination and complete settlement of the defined benefit pension plan of a U.S. subsidiary within the SLF Asset Management segment. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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", "the Enterprise", 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 ("U.K."). 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 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 by us. |
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"). 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 Note 5 Total Invested Assets and Related Net Investment Income Impairment of financial instruments Note 1 Financial Assets Excluding Derivative Financial Instruments Income taxes Note 1 Income Taxes Pension plans Note 1 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 Note 9 Goodwill and Intangible Assets Determination of control for purpose of consolidation Note 1 Basis of Consolidation 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. 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 hold 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. 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. |
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. When the use of a property changes from owner-occupied to investment property, any gain arising on the remeasurement of the property to fair value at the date of transfer is recognized in our Consolidated Statements of Operations to the extent that it reverses a previous impairment loss. Any remaining increase is recognized in OCI. |
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 Assets Other assets, which are measured at amortized cost, include accounts receivable, investment income due and accrued, deferred acquisition costs, and property and equipment. 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. |
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. |
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 over varying periods of up to 40 years, and are charged through operating expenses. 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. 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. The goodwill balances are allocated to either individual or groups of CGUs that are expected to benefit from the synergies of the business combination. Goodwill impairment is quantified by comparing a CGU's or a group of CGUs' carrying value to its recoverable amount, which is the higher of fair value less costs of disposal and value in use. Impairment losses are recognized immediately and cannot be reversed in future periods. Significant judgment is involved in estimating the model inputs used to determine the recoverable amount of our CGUs or group of CGUs, including those for discount rates, capital, the value of new business, expenses, cash flow projections, and market multiples, due to the uncertainty and the forward-looking nature of these inputs. The assumptions may differ from the actual experience, and estimates may change from period to period based on future events or revisions of assumptions. These key assumptions are discussed in Note 9. |
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 Insurance Contracts ("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. As discussed in the Segregated Funds section of this Note, certain investment contracts under which the policyholder bears the risks associated with the underlying investments are classified as Investment contracts for account of segregated fund holders in the Consolidated Statements of Financial Position. The accounting for investment contracts that contain DPF is described in the Insurance Contract Liabilities section of this Note. |
Other Liabilities | Other Liabilities Other liabilities, which are measured at amortized cost, include accounts payable, repurchase agreements, accrued expenses and taxes, senior financing and provisions. 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. 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 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 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. Other liabilities associated with these investment contracts, such as onerous contract provisions required for service components, are included in general fund liabilities in Investment contract liabilities in our Consolidated Statements of Financial Position. |
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. Fee income from service contracts represents fees associated with non-insurance contracts with customers, and includes Distribution fees, Fund management and other asset-based fees, and Administrative services and other fees. Distribution fees includes fees earned from the distribution of investment products and other intermediary activities. Fund management and other asset-based fees includes fees earned from investment management services. Administrative services and other fees includes fees earned from contract administration and other management services. Fee income from service contracts is typically recognized as revenue when services are rendered at either a point in time or over time. The majority of fee income from service contracts is comprised of variable consideration which is based on a percentage of assets under management or another variable metric and is recognized as revenue when it is highly probable that a significant reversal in the amount of the revenue recognized will not occur. |
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. Diluted EPS adjusts common shareholders' net income and the weighted average number of common shares for the effects of all dilutive potential common shares under the assumption that convertible instruments are converted and that outstanding options are exercised. Diluted EPS is calculated by dividing the adjusted common shareholders' net income by the adjusted weighted average number of common shares outstanding. For convertible instruments, common shareholders' net income is increased by the after-tax expense on the convertible instrument while the weighted average common shares are increased by the number of common shares that would be issued at conversion. For stock options, it is assumed that the proceeds from the exercise of options whose exercise price is less than the average market price of common shares during the period are used to repurchase common shares at the average market price for the period. The difference between the number of common shares issued for the exercise of the dilutive options and the number of common shares that would have been repurchased at the average market price of the common shares during the period is adjusted to the weighted average number of common shares outstanding. |
Changes In Accounting Policies | 2.A New and Amended International Financial Reporting Standards Adopted in 2018 2.A.i IFRS 15 Revenue from Contracts with Customers In May 2014, the IASB issued IFRS 15 Revenue from Contracts with Customers ("IFRS 15"), which replaces IAS 11 Construction Contracts , IAS 18 Revenue and various interpretations. Amendments to IFRS 15 were issued in September 2015 and April 2016. IFRS 15 establishes principles about the nature, amount, timing, and uncertainty of revenue arising from contracts with customers. IFRS 15 requires entities to recognize revenue to reflect the transfer of goods or services to customers measured at the amounts an entity expects to be entitled to in exchange for those goods or services. Insurance contracts and revenues arising from those contracts, primarily premium revenue, are not within the scope of this standard. Revenues from service contracts and service components of investment contracts (which are treated as service contracts) that are reported in Fee income and primarily arise from our asset management businesses are within the scope of IFRS 15. IFRS 15 also provides guidance related to the costs to obtain and to fulfill a contract. We adopted IFRS 15 on a cumulative retrospective basis and recognized differences on transition to IFRS 15 as at January 1, 2018 in retained earnings. As a result of the adoption of IFRS 15, we derecognized a portion of our deferred acquisition costs (previously recognized in Other assets) and the related deferred tax liability on our Consolidated Statements of Financial Position, which reduced opening retained earnings by $44 on an after-tax basis as at January 1, 2018. Additional disclosure on revenue from contracts with customers is included in Note 17. 2.A.ii Amendments to IFRS 4 (IFRS 9 deferral approach) In September 2016, the IASB issued Amendments to IFRS 4 to allow insurance entities whose predominant activities are to issue contracts within the scope of IFRS 4 an optional temporary exemption from applying IFRS 9 Financial Instruments ("IFRS 9") ("deferral approach"). On January 1, 2018, we qualified for and elected to take the deferral approach as our activities are predominantly connected with insurance in accordance with IFRS standards. Consequently, we will continue to apply IAS 39 Financial Instruments: Recognition and Measurement ("IAS 39"), the existing financial instrument standard. To enable a comparison to entities applying IFRS 9, entities that apply the deferral approach are required to disclose fair value and changes in fair value separately for (i) those financial assets that pass the Solely Payment of Principal and Interest (“SPPI”) test, excluding any financial asset that is managed and whose performance is evaluated on a fair value basis; and (ii) all other financial assets, including financial assets that are managed and their performance is evaluated on a fair value basis. We are also required to disclose credit ratings of financial assets that pass the SPPI test. Financial assets which pass the SPPI test are assets with contractual terms that give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. See Note 5.A.i for disclosure of the carrying value and fair value of our financial assets as at December 31, 2018 and 2017. Except for Debt securities designated as AFS and Mortgages and loans, our financial assets are managed and their performance is evaluated on a fair value basis. The following table includes these disclosures: December 31, 2018 ($ billions) IAS 39 Classification SPPI Non-SPPI Debt securities AFS 12.9 0.1 Mortgages and loans supporting Insurance contract liabilities (1) Amortized cost 43.8 — Mortgages and loans not supporting Insurance contract liabilities Amortized cost 4.4 0.2 (1) Because we use CALM to value our insurance contract liabilities, the impact on net income in our Consolidated Statements of Operations of classifying assets supporting those liabilities as SPPI or non-SPPI is not material. Note 6.A.v discloses the carrying value of Debt securities and Mortgages and loans by credit risk rating. Debt securities designated as AFS with a credit rating below investment grade have a carrying value of $0.1 billion as at December 31, 2018. Mortgages and loans with a credit rating below investment grade have a carrying value of $2.1 billion as at December 31, 2018. 2.A.iii Other New and Amended IFRS The following new and amended IFRS are effective for annual periods beginning on or after January 1, 2018, and did not have a material impact on our Consolidated Financial Statements. In June 2016, the IASB issued Classification and Measurement of Share-based Payment Transactions , which amends IFRS 2 Share-based Payment. The amendments clarify how to account for certain types of share-based payment transactions, such as the effects of vesting and non-vesting conditions on the measurement of cash-settled share-based payments. These amendments are applicable to awards granted on or after that date and to unvested and vested but unexercised awards outstanding at that date. These amendments were applied prospectively. In December 2016, the IASB issued Annual Improvements to IFRSs 2014-2016 Cycle , which includes minor amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards and IAS 28 Investments in Associates and Joint Ventures ("IAS 28"). In December 2016, the IASB issued Transfers of Investment Property (Amendments to IAS 40). The amendments to IAS 40 Investment Property clarify that an entity shall transfer property to, or from, investment property when, and only when, there is evidence of a change in use. In December 2016, the IASB issued IFRIC 22 Foreign Currency Transactions and Advance Consideration ("IFRIC 22"), which was developed by the IFRS Interpretations Committee. IFRIC 22 clarifies that for purposes of determining the exchange rate in transactions which include the receipt or payment of advance consideration in a foreign currency, the date of the transaction is the date of initial recognition of the non-monetary prepayment asset or deferred income liability. 2.B New and Amended International Financial Reporting Standards to be Adopted in 2019 The following new and amended IFRS were issued by the IASB and are expected to be adopted by us in 2019. In January 2016, the IASB issued IFRS 16 Leases ("IFRS 16"), which replaces IAS 17 Leases , and related interpretations. IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. For lessees, IFRS 16 removes the classification of leases as either operating or financing and requires that all leases to be recognized on the statement of financial position, with certain exemptions allowed by this new standard. The accounting for lessors is substantially unchanged. The standard is effective for annual periods beginning on or after January 1, 2019, to be applied retrospectively, or on a modified retrospective basis. We will be adopting IFRS 16 on a modified retrospective basis. At the time of adoption of IFRS 16, we expect to recognize right-of-use assets of approximately $ 800 and lease liabilities of approximately $ 900 on our Consolidated Statements of Financial Position. Together with the derecognition of deferred balances previously recognized under IAS 17, the overall impact to retained earnings is not expected to be material. In June 2017, the IASB issued IFRIC 23 Uncertainty over Income Tax Treatments ("IFRIC 23") , which was developed by the IFRS Interpretations Committee. IFRIC 23 clarifies how to apply the recognition and measurement requirements in IAS 12 Income Taxes ("IAS 12"), when there is uncertainty over income tax treatments, and requires an entity to determine whether tax treatments should be considered collectively or independently. In addition, IFRIC 23 addresses the assumptions an entity should make about the examination of tax treatments by taxation authorities, as well as how an entity should consider changes in facts and circumstances. IFRIC 23 also provides guidance on how to determine taxable profit (tax loss), tax bases, unused tax losses, unused tax credits, and tax rates, based on whether it is probable that a tax authority will accept an uncertain tax treatment used, or proposed to be used, by an entity in its income tax filings. IFRIC 23 is effective for annual periods beginning on or after January 1, 2019 and is to be applied retrospectively, or on a cumulative retrospective basis. We do not expect IFRIC 23 to have a material impact on our Consolidated Financial Statements. In October 2017, the IASB issued narrow-scope amendments to IAS 28. The amendments clarify that long-term interests in an associate or joint venture to which the equity method is not applied should be accounted for following the requirements of IFRS 9. The amendments are effective for annual periods beginning on or after January 1, 2019, and are to be applied retrospectively with certain exceptions. As we will not adopt IFRS 9 until 2021, we will be required to apply IAS 39 to the long-term interests in associates or joint ventures covered by these amendments. We do not expect the adoption of these amendments to have a material impact on our Consolidated Financial Statements. In December 2017, the IASB issued Annual Improvements to IFRSs 2015-2017 Cycle , which includes minor amendments to four IFRS standards. The amendments are effective for annual periods beginning on or after January 1, 2019. We do not expect the adoption of these amendments to have a material impact on our Consolidated Financial Statements. In February 2018, the IASB issued Plan Amendment, Curtailment or Settlement which amends IAS 19 Employee Benefits (“IAS 19”). Under IAS 19, when an amendment, curtailment or settlement of a defined benefit pension plan occurs, the net defined benefit liability or asset is remeasured. The amendments require an entity to use the updated assumptions from this remeasurement to determine current service cost and net interest for reporting periods after the change to the plan. The amendments are applicable to plan amendments, curtailments or settlements occurring on or after January 1, 2019. 2.C New and Amended International Financial Reporting Standards to be Adopted in 2020 or Later The following new and amended standards were issued by the IASB and are expected to be adopted by us in 2020 or later. 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. Financial asset classification is based on the cash flow characteristics and the business model in which an asset is held. The classification determines how a financial instrument is accounted for and measured. IFRS 9 also introduces an impairment model for financial instruments not measured at fair value through profit or loss that requires recognition of expected losses at initial recognition of a financial instrument and the recognition of full lifetime expected losses if certain criteria are met. In addition, a new model for hedge accounting was introduced to achieve better alignment with risk management activities. This standard is effective for annual periods beginning on or after January 1, 2018. In October 2017, the IASB issued narrow-scope amendments to IFRS 9. The amendments clarify the classification of certain prepayable financial assets and the accounting of financial liabilities following modification. The amendments are effective for annual periods beginning on or after January 1, 2019. However, pursuant to the aforementioned amendments to IFRS 4, we elected the deferral approach permitted under IFRS 4 to continue to apply IAS 39. We are currently assessing the impact that IFRS 9, along with these amendments, will have on our Consolidated Financial Statements. In May 2017, the IASB issued IFRS 17, which replaces IFRS 4. IFRS 17 establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts. IFRS 17 requires entities to measure insurance contract liabilities at their current fulfillment values using one of three measurement models, depending on the nature of the contract. IFRS 17 is effective for annual periods beginning on or after January 1, 2021 and is to be applied retrospectively to each group of insurance contracts unless impracticable. If, and only if, it is impracticable to apply IFRS 17 retrospectively for a group of insurance contracts, an entity shall apply IFRS 17 using a modified retrospective approach or a fair value approach. In November 2018, the IASB tentatively decided to defer the effective date of IFRS 17 by one year, to January 1, 2022. IFRS 17 will affect how we account for our insurance contracts and how we report our financial performance in our Consolidated Statements of Operations. We are currently assessing the impact that IFRS 17 will have on our Consolidated Financial Statements. In March 2018, the IASB issued a revised Conceptual Framework for Financial Reporting (“2018 Conceptual Framework”), which replaces the Conceptual Framework for Financial Reporting issued in 2010. The 2018 Conceptual Framework includes revised definitions of an asset and a liability, as well as new guidance on measurement, derecognition, presentation and disclosure. The 2018 Conceptual Framework is effective for annual periods beginning on or after January 1, 2020. We are currently assessing the impact the adoption of this framework will have on our Consolidated Financial Statements. In October 2018, the IASB issued Definition of a Business, which amends IFRS 3 Business Combinations . The amendments clarify the definition of a business to assist entities in determining whether a transaction represents a business combination or an acquisition of assets. The amendments are effective for annual periods beginning on or after January 1, 2020, to be applied prospectively. We will assess the impact the adoption of these amendments will have on the accounting treatment of future transactions. In October 2018, the IASB issued Definition of Material (Amendments to IAS 1 and IAS 8). The amendments clarify the definition of material and provide guidance to improve consistency in its application in IFRS standards. The amendments are effective for annual periods beginning on or after January 1, 2020. We are currently assessing the impact the adoption of these amendments will have on our Consolidated Financial Statements. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 Note 5 Total Invested Assets and Related Net Investment Income Impairment of financial instruments Note 1 Financial Assets Excluding Derivative Financial Instruments Income taxes Note 1 Income Taxes Pension plans Note 1 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 Note 9 Goodwill and Intangible Assets Determination of control for purpose of consolidation Note 1 Basis of Consolidation 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 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, 2018 2017 Cash $ 2,089 $ 1,504 Cash equivalents 5,209 4,592 Short-term securities 2,208 2,794 Cash, cash equivalents and short-term securities 9,506 8,890 Less: Bank overdraft, recorded in Other liabilities 104 140 Net cash, cash equivalents and short-term securities $ 9,402 $ 8,750 The carrying values and fair values of our financial assets are shown in the following table: As at December 31, 2018 December 31, 2017 Carrying value Fair value Carrying value Fair value Assets Cash, cash equivalents and short-term securities $ 9,506 $ 9,506 $ 8,890 $ 8,890 Debt securities – fair value through profit or loss 61,402 61,402 59,967 59,967 Debt securities – available-for-sale 13,041 13,041 12,652 12,652 Equity securities – fair value through profit or loss 4,014 4,014 5,078 5,078 Equity securities – available-for-sale 620 620 942 942 Mortgages and loans 46,822 48,434 42,805 45,406 Derivative assets 1,112 1,112 1,478 1,478 Other invested assets – fair value through profit or loss (1) 2,701 2,701 2,211 2,211 Other invested assets – available-for-sale (1) 621 621 562 562 Policy loans 3,222 3,222 3,106 3,106 Total financial assets (2) $ 143,061 $ 144,673 $ 137,691 $ 140,292 (1) Other invested assets (FVTPL and AFS) include our investments in segregated funds, mutual funds, and limited partnerships. (2) Invested assets on our Consolidated Statements of Financial Position of $151,726 ( $146,139 as at December 31, 2017 ) includes Total financial assets in this table, Investment properties of $7,157 ( $7,067 as at December 31, 2017 ), and Other invested assets – non-financial assets of $1,508 ( $1,381 as at December 31, 2017 ). The following table provides a reconciliation of the beginning and ending balances for assets that are categorized in Level 3: For the year 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 invested assets Investment properties Total invested assets measured at fair value Investments for account of segregated fund holders Total assets measured at fair value December 31, 2018 Beginning balance $ 417 $ 136 $ 167 $ 38 $ 1,721 $ 7,067 $ 9,546 $ 1,154 $ 10,700 Included in net income (1)(3)(5) (4 ) — 9 — 69 441 515 29 544 Included in OCI (3) — (5 ) — (8 ) (9 ) — (22 ) — (22 ) Purchases 164 140 19 4 644 621 1,592 430 2,022 Sales (49 ) (6 ) — (1 ) (227 ) (1,113 ) (1,396 ) (31 ) (1,427 ) Settlements (21 ) (4 ) — (1 ) — — (26 ) (1 ) (27 ) Transfers into Level 3 (2) 12 1 — 1 — — 14 4 18 Transfers (out) of Level 3 (2) (159 ) (221 ) — — — — (380 ) (5 ) (385 ) Foreign currency translation (4) 13 2 7 3 43 141 209 16 225 Ending balance $ 373 $ 43 $ 202 $ 36 $ 2,241 $ 7,157 $ 10,052 $ 1,596 $ 11,648 Gains (losses) included in earnings relating to instruments still held at the reporting date (1) $ 5 $ — $ 9 $ — $ 69 $ 331 $ 414 $ 27 $ 441 December 31, 2017 Beginning balance $ 442 $ 191 $ 144 $ 7 $ 1,544 $ 6,592 $ 8,920 $ 865 $ 9,785 Included in net income (1)(3)(5) (3 ) (1 ) 7 — (59 ) 158 102 60 162 Included in OCI (3) — — — — 18 — 18 — 18 Purchases 180 215 34 32 505 448 1,414 302 1,716 Sales (41 ) (2 ) (7 ) — (318 ) (277 ) (645 ) (77 ) (722 ) Settlements (66 ) (5 ) (7 ) — — — (78 ) (1 ) (79 ) Transfers into Level 3 (2)(6) 204 — — — 49 259 512 — 512 Transfers (out) of Level 3 (2) (284 ) (262 ) — — — — (546 ) — (546 ) Foreign currency translation (4) (15 ) — (4 ) (1 ) (18 ) (113 ) (151 ) 5 (146 ) Ending balance $ 417 $ 136 $ 167 $ 38 $ 1,721 $ 7,067 $ 9,546 $ 1,154 $ 10,700 Gains (losses) included in earnings relating to instruments still held at the reporting date (1) $ — $ — $ 8 $ — $ (59 ) $ 147 $ 96 $ 27 $ 123 (1) Included in Net investment income (loss) for Total invested assets measured at fair value in our Consolidated Statements of Operations. (2) Transfers into Level 3 occur when the inputs used to price the assets and liabilities lack observable market data, and as a result, no longer meet the Level 1 or 2 definitions at the reporting date. 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. (3) 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. (4) 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. (5) Investment properties included in net income is comprised of fair value changes on investment properties of $529 ( $211 in 2017) net of amortization of leasing commissions and tenant inducements of $88 ( $53 in 2017). (6) Transfers into Level 3 in Investment properties includes the reclassification of our former head office location in 2017, previously classified as owner-occupied with a fair value of $259 at the time of transfer from Other assets to Investment properties. The reclassification recognized a revaluation surplus of $172 , which was recorded as an increase of $139 of accumulated other comprehensive income, net of taxes of $33 . 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, 2018 2017 Fair value through profit or loss Available-for- sale Total debt securities Fair value through profit or loss Available-for- sale Total debt securities Canada $ 25,091 $ 4,217 $ 29,308 $ 24,132 $ 4,114 $ 28,246 United States 21,329 5,917 27,246 20,758 5,719 26,477 United Kingdom 5,092 565 5,657 5,319 590 5,909 Other 9,890 2,342 12,232 9,758 2,229 11,987 Balance $ 61,402 $ 13,041 $ 74,443 $ 59,967 $ 12,652 $ 72,619 The carrying value of debt securities by issuer and industry sector is shown in the following table: As at December 31, 2018 2017 Fair value through profit or loss Available-for-sale Total debt securities Fair value through profit or loss Available-for-sale Total debt securities Debt securities issued or guaranteed by: Canadian federal government $ 3,830 $ 1,746 $ 5,576 $ 3,366 $ 1,832 $ 5,198 Canadian provincial and municipal government 11,866 1,199 13,065 12,158 1,138 13,296 U.S. government and agency 1,380 1,527 2,907 1,231 818 2,049 Other foreign government 4,929 717 5,646 5,361 752 6,113 Total government issued or guaranteed debt securities 22,005 5,189 27,194 22,116 4,540 26,656 Corporate debt securities by industry sector (1) : Financials 8,390 1,470 9,860 7,856 1,705 9,561 Utilities 6,353 528 6,881 6,756 550 7,306 Industrials 4,053 590 4,643 4,090 707 4,797 Energy 3,628 340 3,968 3,657 455 4,112 Communication services (2) 2,826 481 3,307 2,826 545 3,371 Real estate 2,640 376 3,016 2,213 366 2,579 Health care 1,734 299 2,033 1,256 323 1,579 Consumer staples 1,625 257 1,882 1,920 351 2,271 Consumer discretionary (2) 1,372 209 1,581 1,329 363 1,692 Materials 1,225 256 1,481 1,211 262 1,473 Information technology (2) 1,024 207 1,231 1,056 267 1,323 Total corporate debt securities 34,870 5,013 39,883 34,170 5,894 40,064 Asset-backed securities 4,527 2,839 7,366 3,681 2,218 5,899 Total debt securities $ 61,402 $ 13,041 $ 74,443 $ 59,967 $ 12,652 $ 72,619 (1) Balances in 2017 have been changed to conform with current year presentation. (2) Our grouping of debt securities by sector is based on the Global Industry Classification Standard and S&P Dow Jones Indices. During 2018, certain Consumer discretionary and Information technology debt securities were moved to the Communication services sector. 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, 2018 2017 Fair value through profit or loss Available-for- sale Total debt securities Fair value through profit or loss Available-for- sale Total debt securities Due in 1 year or less $ 2,189 $ 1,175 $ 3,364 $ 1,432 $ 1,053 $ 2,485 Due in years 2-5 9,307 4,865 14,172 7,903 3,465 11,368 Due in years 6-10 10,080 2,580 12,660 10,148 3,177 13,325 Due after 10 years 39,826 4,421 44,247 40,484 4,957 45,441 Total debt securities $ 61,402 $ 13,041 $ 74,443 $ 59,967 $ 12,652 $ 72,619 The carrying value of mortgages by scheduled maturity, before allowances for losses, is as follows: As at December 31, 2018 2017 Due in 1 year or less $ 968 $ 931 Due in years 2-5 5,118 4,829 Due in years 6-10 7,351 6,963 Due after 10 years 3,021 2,792 Total mortgages $ 16,458 $ 15,515 The carrying value of loans by scheduled maturity, before allowances for losses, is as follows: As at December 31, 2018 2017 Due in 1 year or less $ 1,425 $ 1,806 Due in years 2-5 6,968 6,350 Due in years 6-10 5,183 4,968 Due after 10 years 16,863 14,216 Total loans $ 30,439 $ 27,340 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, 2018 Canada United States United Kingdom Other Total Mortgages Retail $ 1,921 $ 2,281 $ — $ — $ 4,202 Office 1,811 2,417 — — 4,228 Multi-family residential 3,455 1,920 — — 5,375 Industrial and land 752 1,154 — — 1,906 Other 618 104 — — 722 Total mortgages (1) $ 8,557 $ 7,876 $ — $ — $ 16,433 Loans $ 13,238 $ 11,458 $ 2,547 $ 3,146 $ 30,389 Total mortgages and loans $ 21,795 $ 19,334 $ 2,547 $ 3,146 $ 46,822 (1) $3,537 of mortgages in Canada are insured by the CMHC. As at December 31, 2017 Canada United States United Kingdom Other Total Mortgages Retail $ 2,027 $ 2,264 $ — $ — $ 4,291 Office 1,898 2,363 — — 4,261 Multi-family residential 3,214 1,368 — — 4,582 Industrial and land 670 990 — — 1,660 Other 581 118 — — 699 Total mortgages (1) $ 8,390 $ 7,103 $ — $ — $ 15,493 Loans $ 13,265 $ 9,542 $ 1,678 $ 2,827 $ 27,312 Total mortgages and loans $ 21,655 $ 16,645 $ 1,678 $ 2,827 $ 42,805 (1) $3,171 of mortgages in Canada are insured by the CMHC. |
Changes in Accounting Policies
Changes in Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of changes in accounting policies, accounting estimates and errors [Abstract] | |
Disclosure of Amendments to IFRS 4 | December 31, 2018 ($ billions) IAS 39 Classification SPPI Non-SPPI Debt securities AFS 12.9 0.1 Mortgages and loans supporting Insurance contract liabilities (1) Amortized cost 43.8 — Mortgages and loans not supporting Insurance contract liabilities Amortized cost 4.4 0.2 (1) Because we use CALM to value our insurance contract liabilities, the impact on net income in our Consolidated Statements of Operations of classifying assets supporting those liabilities as SPPI or non-SPPI is not material. |
Segmented Information (Tables)
Segmented Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Operating Segments [Abstract] | |
Results of operating segments | Assets and liabilities by segment are as follows: SLF Canada SLF U.S. (1) SLF Asset Management SLF Asia (1) Corporate Consolidation adjustments Total As at December 31, 2018 Total general fund assets $ 86,697 $ 34,584 $ 4,468 $ 28,855 $ 14,378 $ (217 ) $ 168,765 Investments for account of segregated fund holders $ 85,885 $ 491 $ — $ 6,173 $ 10,513 $ — $ 103,062 Total general fund liabilities $ 78,946 $ 30,671 $ 2,396 $ 23,692 $ 8,707 $ (217 ) $ 144,195 As at December 31, 2017 Total general fund assets $ 84,698 $ 32,259 $ 4,115 $ 27,234 $ 14,605 $ (191 ) $ 162,720 Investments for account of segregated fund holders $ 87,817 $ 488 $ — $ 6,101 $ 11,986 $ — $ 106,392 Total general fund liabilities $ 76,683 $ 28,791 $ 2,346 $ 21,748 $ 10,372 $ (191 ) $ 139,749 (1) Balances in 2017 have been changed to conform with current year presentation as a result of the resegmentation described in this Note. SLF Canada SLF U.S. (1) SLF Asset Management SLF Asia (1) Corporate Consolidation adjustments Total 2018 Gross premiums: Annuities $ 3,261 $ — $ — $ 1 $ (79 ) $ — $ 3,183 Life insurance 4,796 1,633 — 2,154 94 — 8,677 Health insurance 5,316 3,767 — 24 14 — 9,121 Total gross premiums 13,373 5,400 — 2,179 29 — 20,981 Less: ceded premiums 1,487 597 — 232 23 — 2,339 Net investment income (loss) 1,942 305 13 76 79 (26 ) 2,389 Fee income 1,240 73 4,111 514 154 (126 ) 5,966 Total revenue 15,068 5,181 4,124 2,537 239 (152 ) 26,997 Less: Total benefits and expenses 13,497 5,183 2,930 1,919 109 (152 ) 23,486 Income tax expense (benefit) 308 (19 ) 284 51 (27 ) — 597 Total net income (loss) $ 1,263 $ 17 $ 910 $ 567 $ 157 $ — $ 2,914 Less: Net income (loss) attributable to participating policyholders 321 (35 ) — 12 — — 298 Shareholders' net income (loss) $ 942 $ 52 $ 910 $ 555 $ 157 $ — $ 2,616 2017 Gross premiums: Annuities $ 2,464 $ — $ — $ — $ 24 $ — $ 2,488 Life insurance 4,493 1,736 — 2,508 94 — 8,831 Health insurance 4,916 3,570 — 19 14 — 8,519 Total gross premiums 11,873 5,306 — 2,527 132 — 19,838 Less: ceded premiums 3,871 436 — 226 24 — 4,557 Net investment income (loss) 4,133 1,864 45 1,722 526 (79 ) 8,211 Fee income 1,132 103 4,037 524 118 (72 ) 5,842 Total revenue 13,267 6,837 4,082 4,547 752 (151 ) 29,334 Less: Total benefits and expenses 11,894 7,369 2,976 3,679 778 (151 ) 26,545 Income tax expense (benefit) 197 (392 ) 453 62 (18 ) — 302 Total net income (loss) $ 1,176 $ (140 ) $ 653 $ 806 $ (8 ) $ — $ 2,487 Less: Net income (loss) attributable to participating policyholders 213 4 — 28 — — 245 Shareholders' net income (loss) $ 963 $ (144 ) $ 653 $ 778 $ (8 ) $ — $ 2,242 (1) Balances in 2017 have been changed to conform with current year presentation as a result of the resegmentation described in this Note. |
Disclosure of geographical areas | The following table shows total assets by country for SLF Asset Management and Corporate: SLF Asset Management Corporate As at December 31, 2018 2017 2018 2017 Total general fund assets: United States $ 4,147 $ 3,750 $ 2,550 $ 1,984 United Kingdom — — 8,274 8,744 Canada (1) 321 365 3,384 3,723 Other countries — — 170 154 Total general fund assets $ 4,468 $ 4,115 $ 14,378 $ 14,605 Investment for account of segregated fund holders: United Kingdom $ — $ — $ 10,513 $ 11,986 Total investment for account of segregated fund holders $ — $ — $ 10,513 $ 11,986 (1) Consists of the Canadian operations of Bentall Kennedy and Sun Life Institutional Investments (Canada) Inc. for SLF Asset Management. The following table shows revenue by country for SLF Asset Management and Corporate: SLF Asset Management Corporate For the years ended December 31, 2018 2017 2018 2017 Revenue: United States $ 3,945 $ 3,961 $ 58 $ 147 United Kingdom — — 142 577 Canada (1) 179 121 38 20 Other countries — — 1 8 Total revenue $ 4,124 $ 4,082 $ 239 $ 752 (1) Consists of the Canadian operations of the Bentall Kennedy group of companies ("Bentall Kennedy") and Sun Life Institutional Investments (Canada) Inc. for SLF Asset Management. |
Total Invested Assets and Rel_2
Total Invested Assets and Related Net Investment Income (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Measurement [Abstract] | |
Schedule of assets 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, 2018 December 31, 2017 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Cash, cash equivalents and short-term securities $ 8,926 $ 580 $ — $ 9,506 $ 7,683 $ 1,207 $ — $ 8,890 Debt securities – fair value through profit or loss 1,253 59,776 373 61,402 1,103 58,447 417 59,967 Debt securities – available-for-sale 1,513 11,485 43 13,041 818 11,698 136 12,652 Equity securities – fair value through profit or loss 1,967 1,845 202 4,014 3,379 1,532 167 5,078 Equity securities – available-for-sale 398 186 36 620 710 194 38 942 Derivative assets 27 1,085 — 1,112 27 1,451 — 1,478 Other invested assets 898 183 2,241 3,322 912 140 1,721 2,773 Investment properties — — 7,157 7,157 — — 7,067 7,067 Total invested assets measured at fair value $ 14,982 $ 75,140 $ 10,052 $ 100,174 $ 14,632 $ 74,669 $ 9,546 $ 98,847 Investments for account of segregated fund holders 24,705 76,761 1,596 103,062 27,481 77,757 1,154 106,392 Total assets measured at fair value $ 39,687 $ 151,901 $ 11,648 $ 203,236 $ 42,113 $ 152,426 $ 10,700 $ 205,239 Liabilities Investment contract liabilities $ — $ — $ 3 $ 3 $ — $ — $ 3 $ 3 Derivative liabilities 11 2,284 — 2,295 5 1,751 — 1,756 Total liabilities measured at fair value $ 11 $ 2,284 $ 3 $ 2,298 $ 5 $ 1,751 $ 3 $ 1,759 Debt securities – fair value through profit or loss consist of the following: As at December 31, 2018 December 31, 2017 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Canadian federal government $ — $ 3,815 $ 15 $ 3,830 $ — $ 3,351 $ 15 $ 3,366 Canadian provincial and municipal government — 11,852 14 11,866 — 12,142 16 12,158 U.S. government and agency 1,253 125 2 1,380 1,103 125 3 1,231 Other foreign government — 4,895 34 4,929 — 5,318 43 5,361 Corporate — 34,665 205 34,870 — 33,864 306 34,170 Asset-backed securities: Commercial mortgage-backed securities — 1,464 3 1,467 — 1,459 1 1,460 Residential mortgage-backed securities — 1,961 — 1,961 — 1,625 — 1,625 Collateralized debt obligations — 143 — 143 — 55 — 55 Other — 856 100 956 — 508 33 541 Total debt securities – fair value through profit or loss $ 1,253 $ 59,776 $ 373 $ 61,402 $ 1,103 $ 58,447 $ 417 $ 59,967 Debt securities – available-for-sale consist of the following: As at December 31, 2018 December 31, 2017 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Canadian federal government $ — $ 1,746 $ — $ 1,746 $ — $ 1,832 $ — $ 1,832 Canadian provincial and municipal government — 1,199 — 1,199 — 1,138 — 1,138 U.S. government and agency 1,513 14 — 1,527 818 — — 818 Other foreign government — 716 1 717 — 752 — 752 Corporate — 4,971 42 5,013 — 5,838 56 5,894 Asset-backed securities: Commercial mortgage-backed securities — 766 — 766 — 744 — 744 Residential mortgage-backed securities — 386 — 386 — 398 — 398 Collateralized debt obligations — 804 — 804 — 345 69 414 Other — 883 — 883 — 651 11 662 Total debt securities – available-for-sale $ 1,513 $ 11,485 $ 43 $ 13,041 $ 818 $ 11,698 $ 136 $ 12,652 Fair value and foreign currency changes on assets and liabilities recorded to net income consist of the following: For the years ended December 31, 2018 2017 Fair value change: Cash, cash equivalents and short-term securities $ 8 $ 1 Debt securities (2,704 ) 1,630 Equity securities (401 ) 441 Derivative investments (1,295 ) 649 Other invested assets 16 59 Total change in fair value through profit or loss assets and liabilities (4,376 ) 2,780 Fair value changes on investment properties 529 211 Foreign exchange gains (losses) (1) 446 (388 ) Realized gains (losses) on property and equipment (2) 28 — Fair value and foreign currency changes on assets and liabilities $ (3,373 ) $ 2,603 (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. (2) In 2018, we sold and leased back a property in Waterloo, Ontario. The transaction qualified as a sale and operating lease and as a result, we recognized a gain of $28 . |
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, 2018 December 31, 2017 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Cash, cash equivalents and short-term securities $ 8,926 $ 580 $ — $ 9,506 $ 7,683 $ 1,207 $ — $ 8,890 Debt securities – fair value through profit or loss 1,253 59,776 373 61,402 1,103 58,447 417 59,967 Debt securities – available-for-sale 1,513 11,485 43 13,041 818 11,698 136 12,652 Equity securities – fair value through profit or loss 1,967 1,845 202 4,014 3,379 1,532 167 5,078 Equity securities – available-for-sale 398 186 36 620 710 194 38 942 Derivative assets 27 1,085 — 1,112 27 1,451 — 1,478 Other invested assets 898 183 2,241 3,322 912 140 1,721 2,773 Investment properties — — 7,157 7,157 — — 7,067 7,067 Total invested assets measured at fair value $ 14,982 $ 75,140 $ 10,052 $ 100,174 $ 14,632 $ 74,669 $ 9,546 $ 98,847 Investments for account of segregated fund holders 24,705 76,761 1,596 103,062 27,481 77,757 1,154 106,392 Total assets measured at fair value $ 39,687 $ 151,901 $ 11,648 $ 203,236 $ 42,113 $ 152,426 $ 10,700 $ 205,239 Liabilities Investment contract liabilities $ — $ — $ 3 $ 3 $ — $ — $ 3 $ 3 Derivative liabilities 11 2,284 — 2,295 5 1,751 — 1,756 Total liabilities measured at fair value $ 11 $ 2,284 $ 3 $ 2,298 $ 5 $ 1,751 $ 3 $ 1,759 Fair value and foreign currency changes on assets and liabilities recorded to net income consist of the following: For the years ended December 31, 2018 2017 Fair value change: Cash, cash equivalents and short-term securities $ 8 $ 1 Debt securities (2,704 ) 1,630 Equity securities (401 ) 441 Derivative investments (1,295 ) 649 Other invested assets 16 59 Total change in fair value through profit or loss assets and liabilities (4,376 ) 2,780 Fair value changes on investment properties 529 211 Foreign exchange gains (losses) (1) 446 (388 ) Realized gains (losses) on property and equipment (2) 28 — Fair value and foreign currency changes on assets and liabilities $ (3,373 ) $ 2,603 (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. (2) In 2018, we sold and leased back a property in Waterloo, Ontario. The transaction qualified as a sale and operating lease and as a result, we recognized a gain of $28 . |
Schedule of interest and other investment income | Interest and other investment income consist of the following: For the years ended December 31, 2018 2017 Interest income: Cash, cash equivalents and short-term securities $ 131 $ 65 Debt securities – fair value through profit or loss 2,312 2,292 Debt securities – available-for-sale 384 352 Mortgages and loans 2,050 1,928 Derivative investments 45 70 Policy loans 175 165 Total interest income 5,097 4,872 Equity securities – dividends on fair value through profit or loss 160 159 Equity securities – dividends on available-for-sale 14 15 Investment properties rental income (1) 594 623 Investment properties expenses (259 ) (286 ) Other income 242 223 Investment expenses and taxes (207 ) (193 ) Total interest and other investment income $ 5,641 $ 5,413 (1) Comprised of operating lease rental income. |
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 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, 2018 2017 Cash $ 2,089 $ 1,504 Cash equivalents 5,209 4,592 Short-term securities 2,208 2,794 Cash, cash equivalents and short-term securities 9,506 8,890 Less: Bank overdraft, recorded in Other liabilities 104 140 Net cash, cash equivalents and short-term securities $ 9,402 $ 8,750 The carrying values and fair values of our financial assets are shown in the following table: As at December 31, 2018 December 31, 2017 Carrying value Fair value Carrying value Fair value Assets Cash, cash equivalents and short-term securities $ 9,506 $ 9,506 $ 8,890 $ 8,890 Debt securities – fair value through profit or loss 61,402 61,402 59,967 59,967 Debt securities – available-for-sale 13,041 13,041 12,652 12,652 Equity securities – fair value through profit or loss 4,014 4,014 5,078 5,078 Equity securities – available-for-sale 620 620 942 942 Mortgages and loans 46,822 48,434 42,805 45,406 Derivative assets 1,112 1,112 1,478 1,478 Other invested assets – fair value through profit or loss (1) 2,701 2,701 2,211 2,211 Other invested assets – available-for-sale (1) 621 621 562 562 Policy loans 3,222 3,222 3,106 3,106 Total financial assets (2) $ 143,061 $ 144,673 $ 137,691 $ 140,292 (1) Other invested assets (FVTPL and AFS) include our investments in segregated funds, mutual funds, and limited partnerships. (2) Invested assets on our Consolidated Statements of Financial Position of $151,726 ( $146,139 as at December 31, 2017 ) includes Total financial assets in this table, Investment properties of $7,157 ( $7,067 as at December 31, 2017 ), and Other invested assets – non-financial assets of $1,508 ( $1,381 as at December 31, 2017 ). The following table provides a reconciliation of the beginning and ending balances for assets that are categorized in Level 3: For the year 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 invested assets Investment properties Total invested assets measured at fair value Investments for account of segregated fund holders Total assets measured at fair value December 31, 2018 Beginning balance $ 417 $ 136 $ 167 $ 38 $ 1,721 $ 7,067 $ 9,546 $ 1,154 $ 10,700 Included in net income (1)(3)(5) (4 ) — 9 — 69 441 515 29 544 Included in OCI (3) — (5 ) — (8 ) (9 ) — (22 ) — (22 ) Purchases 164 140 19 4 644 621 1,592 430 2,022 Sales (49 ) (6 ) — (1 ) (227 ) (1,113 ) (1,396 ) (31 ) (1,427 ) Settlements (21 ) (4 ) — (1 ) — — (26 ) (1 ) (27 ) Transfers into Level 3 (2) 12 1 — 1 — — 14 4 18 Transfers (out) of Level 3 (2) (159 ) (221 ) — — — — (380 ) (5 ) (385 ) Foreign currency translation (4) 13 2 7 3 43 141 209 16 225 Ending balance $ 373 $ 43 $ 202 $ 36 $ 2,241 $ 7,157 $ 10,052 $ 1,596 $ 11,648 Gains (losses) included in earnings relating to instruments still held at the reporting date (1) $ 5 $ — $ 9 $ — $ 69 $ 331 $ 414 $ 27 $ 441 December 31, 2017 Beginning balance $ 442 $ 191 $ 144 $ 7 $ 1,544 $ 6,592 $ 8,920 $ 865 $ 9,785 Included in net income (1)(3)(5) (3 ) (1 ) 7 — (59 ) 158 102 60 162 Included in OCI (3) — — — — 18 — 18 — 18 Purchases 180 215 34 32 505 448 1,414 302 1,716 Sales (41 ) (2 ) (7 ) — (318 ) (277 ) (645 ) (77 ) (722 ) Settlements (66 ) (5 ) (7 ) — — — (78 ) (1 ) (79 ) Transfers into Level 3 (2)(6) 204 — — — 49 259 512 — 512 Transfers (out) of Level 3 (2) (284 ) (262 ) — — — — (546 ) — (546 ) Foreign currency translation (4) (15 ) — (4 ) (1 ) (18 ) (113 ) (151 ) 5 (146 ) Ending balance $ 417 $ 136 $ 167 $ 38 $ 1,721 $ 7,067 $ 9,546 $ 1,154 $ 10,700 Gains (losses) included in earnings relating to instruments still held at the reporting date (1) $ — $ — $ 8 $ — $ (59 ) $ 147 $ 96 $ 27 $ 123 (1) Included in Net investment income (loss) for Total invested assets measured at fair value in our Consolidated Statements of Operations. (2) Transfers into Level 3 occur when the inputs used to price the assets and liabilities lack observable market data, and as a result, no longer meet the Level 1 or 2 definitions at the reporting date. 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. (3) 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. (4) 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. (5) Investment properties included in net income is comprised of fair value changes on investment properties of $529 ( $211 in 2017) net of amortization of leasing commissions and tenant inducements of $88 ( $53 in 2017). (6) Transfers into Level 3 in Investment properties includes the reclassification of our former head office location in 2017, previously classified as owner-occupied with a fair value of $259 at the time of transfer from Other assets to Investment properties. The reclassification recognized a revaluation surplus of $172 , which was recorded as an increase of $139 of accumulated other comprehensive income, net of taxes of $33 . 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, 2018 2017 Fair value through profit or loss Available-for- sale Total debt securities Fair value through profit or loss Available-for- sale Total debt securities Canada $ 25,091 $ 4,217 $ 29,308 $ 24,132 $ 4,114 $ 28,246 United States 21,329 5,917 27,246 20,758 5,719 26,477 United Kingdom 5,092 565 5,657 5,319 590 5,909 Other 9,890 2,342 12,232 9,758 2,229 11,987 Balance $ 61,402 $ 13,041 $ 74,443 $ 59,967 $ 12,652 $ 72,619 The carrying value of debt securities by issuer and industry sector is shown in the following table: As at December 31, 2018 2017 Fair value through profit or loss Available-for-sale Total debt securities Fair value through profit or loss Available-for-sale Total debt securities Debt securities issued or guaranteed by: Canadian federal government $ 3,830 $ 1,746 $ 5,576 $ 3,366 $ 1,832 $ 5,198 Canadian provincial and municipal government 11,866 1,199 13,065 12,158 1,138 13,296 U.S. government and agency 1,380 1,527 2,907 1,231 818 2,049 Other foreign government 4,929 717 5,646 5,361 752 6,113 Total government issued or guaranteed debt securities 22,005 5,189 27,194 22,116 4,540 26,656 Corporate debt securities by industry sector (1) : Financials 8,390 1,470 9,860 7,856 1,705 9,561 Utilities 6,353 528 6,881 6,756 550 7,306 Industrials 4,053 590 4,643 4,090 707 4,797 Energy 3,628 340 3,968 3,657 455 4,112 Communication services (2) 2,826 481 3,307 2,826 545 3,371 Real estate 2,640 376 3,016 2,213 366 2,579 Health care 1,734 299 2,033 1,256 323 1,579 Consumer staples 1,625 257 1,882 1,920 351 2,271 Consumer discretionary (2) 1,372 209 1,581 1,329 363 1,692 Materials 1,225 256 1,481 1,211 262 1,473 Information technology (2) 1,024 207 1,231 1,056 267 1,323 Total corporate debt securities 34,870 5,013 39,883 34,170 5,894 40,064 Asset-backed securities 4,527 2,839 7,366 3,681 2,218 5,899 Total debt securities $ 61,402 $ 13,041 $ 74,443 $ 59,967 $ 12,652 $ 72,619 (1) Balances in 2017 have been changed to conform with current year presentation. (2) Our grouping of debt securities by sector is based on the Global Industry Classification Standard and S&P Dow Jones Indices. During 2018, certain Consumer discretionary and Information technology debt securities were moved to the Communication services sector. 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, 2018 2017 Fair value through profit or loss Available-for- sale Total debt securities Fair value through profit or loss Available-for- sale Total debt securities Due in 1 year or less $ 2,189 $ 1,175 $ 3,364 $ 1,432 $ 1,053 $ 2,485 Due in years 2-5 9,307 4,865 14,172 7,903 3,465 11,368 Due in years 6-10 10,080 2,580 12,660 10,148 3,177 13,325 Due after 10 years 39,826 4,421 44,247 40,484 4,957 45,441 Total debt securities $ 61,402 $ 13,041 $ 74,443 $ 59,967 $ 12,652 $ 72,619 The carrying value of mortgages by scheduled maturity, before allowances for losses, is as follows: As at December 31, 2018 2017 Due in 1 year or less $ 968 $ 931 Due in years 2-5 5,118 4,829 Due in years 6-10 7,351 6,963 Due after 10 years 3,021 2,792 Total mortgages $ 16,458 $ 15,515 The carrying value of loans by scheduled maturity, before allowances for losses, is as follows: As at December 31, 2018 2017 Due in 1 year or less $ 1,425 $ 1,806 Due in years 2-5 6,968 6,350 Due in years 6-10 5,183 4,968 Due after 10 years 16,863 14,216 Total loans $ 30,439 $ 27,340 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, 2018 Canada United States United Kingdom Other Total Mortgages Retail $ 1,921 $ 2,281 $ — $ — $ 4,202 Office 1,811 2,417 — — 4,228 Multi-family residential 3,455 1,920 — — 5,375 Industrial and land 752 1,154 — — 1,906 Other 618 104 — — 722 Total mortgages (1) $ 8,557 $ 7,876 $ — $ — $ 16,433 Loans $ 13,238 $ 11,458 $ 2,547 $ 3,146 $ 30,389 Total mortgages and loans $ 21,795 $ 19,334 $ 2,547 $ 3,146 $ 46,822 (1) $3,537 of mortgages in Canada are insured by the CMHC. As at December 31, 2017 Canada United States United Kingdom Other Total Mortgages Retail $ 2,027 $ 2,264 $ — $ — $ 4,291 Office 1,898 2,363 — — 4,261 Multi-family residential 3,214 1,368 — — 4,582 Industrial and land 670 990 — — 1,660 Other 581 118 — — 699 Total mortgages (1) $ 8,390 $ 7,103 $ — $ — $ 15,493 Loans $ 13,265 $ 9,542 $ 1,678 $ 2,827 $ 27,312 Total mortgages and loans $ 21,655 $ 16,645 $ 1,678 $ 2,827 $ 42,805 (1) $3,171 of mortgages in Canada are insured by the CMHC. |
Schedule of fair values of derivative assets and liabilities by type of hedge | 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, 2018 2017 Fair value Fair value Total notional amount Assets Liabilities Total notional amount Assets Liabilities Derivative investments (1) $ 58,268 $ 1,101 $ (2,134 ) $ 53,299 $ 1,439 $ (1,575 ) Fair value hedges 779 — (153 ) 690 2 (181 ) Cash flow hedges 151 11 (8 ) 132 37 — Total derivatives $ 59,198 $ 1,112 $ (2,295 ) $ 54,121 $ 1,478 $ (1,756 ) (1) Derivative investments are derivatives that have not been designated as hedges for accounting purposes. The fair values of derivative financial instruments by major class of derivatives are as follows: As at December 31, 2018 2017 Fair value Fair value Assets Liabilities Assets Liabilities Interest rate contracts $ 922 $ (440 ) $ 1,188 $ (518 ) Foreign exchange contracts 130 (1,820 ) 177 (1,232 ) Other contracts 60 (35 ) 113 (6 ) Total derivatives $ 1,112 $ (2,295 ) $ 1,478 $ (1,756 ) |
Schedule of hedge ineffectiveness | Hedge ineffectiveness recognized in Interest and other investment income consists of the following: For the years ended December 31, 2018 2017 Fair value hedging ineffectiveness: Gains (losses) on the hedged items attributable to the hedged risk $ (41 ) $ (22 ) Gains (losses) on the hedging derivatives 40 19 Net ineffectiveness on fair value hedges $ (1 ) $ (3 ) |
Financial Instrument Risk Man_2
Financial Instrument Risk Management Financial Instrument Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 Off-balance sheet items: Loan commitments (1) $ 2,460 $ 1,740 Guarantees — 12 Total off-balance sheet items $ 2,460 $ 1,752 (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, 2018 2017 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) $ 1,112 $ (768 ) $ (298 ) $ 46 $ 1,478 $ (694 ) $ (662 ) $ 122 Reverse repurchase agreements (Note 8) 17 (17 ) — — — — — — Total financial assets $ 1,129 $ (785 ) $ (298 ) $ 46 $ 1,478 $ (694 ) $ (662 ) $ 122 Financial liabilities Derivative liabilities $ (2,295 ) $ 768 $ 1,132 $ (395 ) $ (1,756 ) $ 694 $ 754 $ (308 ) Repurchase agreements (Note 5.F.ii) (1,824 ) 17 1,807 — (1,976 ) — 1,976 — Total financial liabilities $ (4,119 ) $ 785 $ 2,939 $ (395 ) $ (3,732 ) $ 694 $ 2,730 $ (308 ) (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 excludes overcollateralization and for exchange-traded derivatives, initial margin. Total financial collateral, including initial margin and overcollateralization, received on derivative assets was $470 ( $853 as at December 31, 2017 ), received on reverse repurchase agreements was $17 ($ nil as at December 31, 2017 ), pledged on derivative liabilities was $1,726 ( $1,127 as at December 31, 2017 ), and pledged on repurchase agreements was $1,824 ( $1,976 as at December 31, 2017 ). |
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 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, 2018 2017 Cash $ 2,089 $ 1,504 Cash equivalents 5,209 4,592 Short-term securities 2,208 2,794 Cash, cash equivalents and short-term securities 9,506 8,890 Less: Bank overdraft, recorded in Other liabilities 104 140 Net cash, cash equivalents and short-term securities $ 9,402 $ 8,750 The carrying values and fair values of our financial assets are shown in the following table: As at December 31, 2018 December 31, 2017 Carrying value Fair value Carrying value Fair value Assets Cash, cash equivalents and short-term securities $ 9,506 $ 9,506 $ 8,890 $ 8,890 Debt securities – fair value through profit or loss 61,402 61,402 59,967 59,967 Debt securities – available-for-sale 13,041 13,041 12,652 12,652 Equity securities – fair value through profit or loss 4,014 4,014 5,078 5,078 Equity securities – available-for-sale 620 620 942 942 Mortgages and loans 46,822 48,434 42,805 45,406 Derivative assets 1,112 1,112 1,478 1,478 Other invested assets – fair value through profit or loss (1) 2,701 2,701 2,211 2,211 Other invested assets – available-for-sale (1) 621 621 562 562 Policy loans 3,222 3,222 3,106 3,106 Total financial assets (2) $ 143,061 $ 144,673 $ 137,691 $ 140,292 (1) Other invested assets (FVTPL and AFS) include our investments in segregated funds, mutual funds, and limited partnerships. (2) Invested assets on our Consolidated Statements of Financial Position of $151,726 ( $146,139 as at December 31, 2017 ) includes Total financial assets in this table, Investment properties of $7,157 ( $7,067 as at December 31, 2017 ), and Other invested assets – non-financial assets of $1,508 ( $1,381 as at December 31, 2017 ). The following table provides a reconciliation of the beginning and ending balances for assets that are categorized in Level 3: For the year 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 invested assets Investment properties Total invested assets measured at fair value Investments for account of segregated fund holders Total assets measured at fair value December 31, 2018 Beginning balance $ 417 $ 136 $ 167 $ 38 $ 1,721 $ 7,067 $ 9,546 $ 1,154 $ 10,700 Included in net income (1)(3)(5) (4 ) — 9 — 69 441 515 29 544 Included in OCI (3) — (5 ) — (8 ) (9 ) — (22 ) — (22 ) Purchases 164 140 19 4 644 621 1,592 430 2,022 Sales (49 ) (6 ) — (1 ) (227 ) (1,113 ) (1,396 ) (31 ) (1,427 ) Settlements (21 ) (4 ) — (1 ) — — (26 ) (1 ) (27 ) Transfers into Level 3 (2) 12 1 — 1 — — 14 4 18 Transfers (out) of Level 3 (2) (159 ) (221 ) — — — — (380 ) (5 ) (385 ) Foreign currency translation (4) 13 2 7 3 43 141 209 16 225 Ending balance $ 373 $ 43 $ 202 $ 36 $ 2,241 $ 7,157 $ 10,052 $ 1,596 $ 11,648 Gains (losses) included in earnings relating to instruments still held at the reporting date (1) $ 5 $ — $ 9 $ — $ 69 $ 331 $ 414 $ 27 $ 441 December 31, 2017 Beginning balance $ 442 $ 191 $ 144 $ 7 $ 1,544 $ 6,592 $ 8,920 $ 865 $ 9,785 Included in net income (1)(3)(5) (3 ) (1 ) 7 — (59 ) 158 102 60 162 Included in OCI (3) — — — — 18 — 18 — 18 Purchases 180 215 34 32 505 448 1,414 302 1,716 Sales (41 ) (2 ) (7 ) — (318 ) (277 ) (645 ) (77 ) (722 ) Settlements (66 ) (5 ) (7 ) — — — (78 ) (1 ) (79 ) Transfers into Level 3 (2)(6) 204 — — — 49 259 512 — 512 Transfers (out) of Level 3 (2) (284 ) (262 ) — — — — (546 ) — (546 ) Foreign currency translation (4) (15 ) — (4 ) (1 ) (18 ) (113 ) (151 ) 5 (146 ) Ending balance $ 417 $ 136 $ 167 $ 38 $ 1,721 $ 7,067 $ 9,546 $ 1,154 $ 10,700 Gains (losses) included in earnings relating to instruments still held at the reporting date (1) $ — $ — $ 8 $ — $ (59 ) $ 147 $ 96 $ 27 $ 123 (1) Included in Net investment income (loss) for Total invested assets measured at fair value in our Consolidated Statements of Operations. (2) Transfers into Level 3 occur when the inputs used to price the assets and liabilities lack observable market data, and as a result, no longer meet the Level 1 or 2 definitions at the reporting date. 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. (3) 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. (4) 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. (5) Investment properties included in net income is comprised of fair value changes on investment properties of $529 ( $211 in 2017) net of amortization of leasing commissions and tenant inducements of $88 ( $53 in 2017). (6) Transfers into Level 3 in Investment properties includes the reclassification of our former head office location in 2017, previously classified as owner-occupied with a fair value of $259 at the time of transfer from Other assets to Investment properties. The reclassification recognized a revaluation surplus of $172 , which was recorded as an increase of $139 of accumulated other comprehensive income, net of taxes of $33 . 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, 2018 2017 Fair value through profit or loss Available-for- sale Total debt securities Fair value through profit or loss Available-for- sale Total debt securities Canada $ 25,091 $ 4,217 $ 29,308 $ 24,132 $ 4,114 $ 28,246 United States 21,329 5,917 27,246 20,758 5,719 26,477 United Kingdom 5,092 565 5,657 5,319 590 5,909 Other 9,890 2,342 12,232 9,758 2,229 11,987 Balance $ 61,402 $ 13,041 $ 74,443 $ 59,967 $ 12,652 $ 72,619 The carrying value of debt securities by issuer and industry sector is shown in the following table: As at December 31, 2018 2017 Fair value through profit or loss Available-for-sale Total debt securities Fair value through profit or loss Available-for-sale Total debt securities Debt securities issued or guaranteed by: Canadian federal government $ 3,830 $ 1,746 $ 5,576 $ 3,366 $ 1,832 $ 5,198 Canadian provincial and municipal government 11,866 1,199 13,065 12,158 1,138 13,296 U.S. government and agency 1,380 1,527 2,907 1,231 818 2,049 Other foreign government 4,929 717 5,646 5,361 752 6,113 Total government issued or guaranteed debt securities 22,005 5,189 27,194 22,116 4,540 26,656 Corporate debt securities by industry sector (1) : Financials 8,390 1,470 9,860 7,856 1,705 9,561 Utilities 6,353 528 6,881 6,756 550 7,306 Industrials 4,053 590 4,643 4,090 707 4,797 Energy 3,628 340 3,968 3,657 455 4,112 Communication services (2) 2,826 481 3,307 2,826 545 3,371 Real estate 2,640 376 3,016 2,213 366 2,579 Health care 1,734 299 2,033 1,256 323 1,579 Consumer staples 1,625 257 1,882 1,920 351 2,271 Consumer discretionary (2) 1,372 209 1,581 1,329 363 1,692 Materials 1,225 256 1,481 1,211 262 1,473 Information technology (2) 1,024 207 1,231 1,056 267 1,323 Total corporate debt securities 34,870 5,013 39,883 34,170 5,894 40,064 Asset-backed securities 4,527 2,839 7,366 3,681 2,218 5,899 Total debt securities $ 61,402 $ 13,041 $ 74,443 $ 59,967 $ 12,652 $ 72,619 (1) Balances in 2017 have been changed to conform with current year presentation. (2) Our grouping of debt securities by sector is based on the Global Industry Classification Standard and S&P Dow Jones Indices. During 2018, certain Consumer discretionary and Information technology debt securities were moved to the Communication services sector. 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, 2018 2017 Fair value through profit or loss Available-for- sale Total debt securities Fair value through profit or loss Available-for- sale Total debt securities Due in 1 year or less $ 2,189 $ 1,175 $ 3,364 $ 1,432 $ 1,053 $ 2,485 Due in years 2-5 9,307 4,865 14,172 7,903 3,465 11,368 Due in years 6-10 10,080 2,580 12,660 10,148 3,177 13,325 Due after 10 years 39,826 4,421 44,247 40,484 4,957 45,441 Total debt securities $ 61,402 $ 13,041 $ 74,443 $ 59,967 $ 12,652 $ 72,619 The carrying value of mortgages by scheduled maturity, before allowances for losses, is as follows: As at December 31, 2018 2017 Due in 1 year or less $ 968 $ 931 Due in years 2-5 5,118 4,829 Due in years 6-10 7,351 6,963 Due after 10 years 3,021 2,792 Total mortgages $ 16,458 $ 15,515 The carrying value of loans by scheduled maturity, before allowances for losses, is as follows: As at December 31, 2018 2017 Due in 1 year or less $ 1,425 $ 1,806 Due in years 2-5 6,968 6,350 Due in years 6-10 5,183 4,968 Due after 10 years 16,863 14,216 Total loans $ 30,439 $ 27,340 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, 2018 Canada United States United Kingdom Other Total Mortgages Retail $ 1,921 $ 2,281 $ — $ — $ 4,202 Office 1,811 2,417 — — 4,228 Multi-family residential 3,455 1,920 — — 5,375 Industrial and land 752 1,154 — — 1,906 Other 618 104 — — 722 Total mortgages (1) $ 8,557 $ 7,876 $ — $ — $ 16,433 Loans $ 13,238 $ 11,458 $ 2,547 $ 3,146 $ 30,389 Total mortgages and loans $ 21,795 $ 19,334 $ 2,547 $ 3,146 $ 46,822 (1) $3,537 of mortgages in Canada are insured by the CMHC. As at December 31, 2017 Canada United States United Kingdom Other Total Mortgages Retail $ 2,027 $ 2,264 $ — $ — $ 4,291 Office 1,898 2,363 — — 4,261 Multi-family residential 3,214 1,368 — — 4,582 Industrial and land 670 990 — — 1,660 Other 581 118 — — 699 Total mortgages (1) $ 8,390 $ 7,103 $ — $ — $ 15,493 Loans $ 13,265 $ 9,542 $ 1,678 $ 2,827 $ 27,312 Total mortgages and loans $ 21,655 $ 16,645 $ 1,678 $ 2,827 $ 42,805 (1) $3,171 of mortgages in Canada are insured by the CMHC. |
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, 2018 2017 Term to maturity Term to maturity Under 1 Year 1 to 5 Years Over 5 Years Total Under 1 Year 1 to 5 Years Over 5 Years Total Over-the-counter contracts: Interest rate contracts: Forward contracts $ — $ — $ — $ — $ 469 $ — $ — $ 469 Swap contracts 1,101 3,506 16,685 21,292 1,348 3,486 16,053 20,887 Options purchased 1,198 2,898 3,737 7,833 1,062 2,266 2,451 5,779 Options written (1) 477 648 225 1,350 — 786 459 1,245 Foreign exchange contracts: Forward contracts 6,529 15 — 6,544 6,305 42 — 6,347 Swap contracts 532 4,451 9,210 14,193 332 4,198 7,214 11,744 Other contracts: Forward contracts 127 158 — 285 109 150 — 259 Swap contracts 112 1 — 113 126 1 — 127 Credit derivatives — 1,329 27 1,356 48 903 170 1,121 Exchange-traded contracts: Interest rate contracts: Futures contracts 3,669 — — 3,669 3,415 — — 3,415 Equity contracts: Futures contracts 2,377 — — 2,377 2,216 — — 2,216 Options purchased 186 — — 186 465 47 — 512 Total notional amount $ 16,308 $ 13,006 $ 29,884 $ 59,198 $ 15,895 $ 11,879 $ 26,347 $ 54,121 (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, 2018 2017 Term to maturity Term to maturity Under 1 Year 1 to 5 Years Over 5 Years Total Under 1 Year 1 to 5 Years Over 5 Years Total Derivative assets $ 100 $ 150 $ 862 $ 1,112 $ 97 $ 226 $ 1,155 $ 1,478 Derivative liabilities $ (240 ) $ (555 ) $ (1,500 ) $ (2,295 ) $ (90 ) $ (347 ) $ (1,319 ) $ (1,756 ) |
Disclosure of debt securities, mortgages, and loans by credit quality | The table below presents the distribution of Reinsurance assets by credit rating: As at December 31, 2018 2017 Gross exposure Collateral Net exposure Gross exposure Collateral Net exposure Reinsurance assets by credit rating: AA $ 1,442 $ 6 $ 1,436 $ 1,241 $ 4 $ 1,237 A 1,760 83 1,677 1,632 99 1,533 BBB 203 132 71 157 116 41 BB 1,677 1,617 60 1,539 1,455 84 B — — — 257 74 183 CCC 252 72 180 — — — Not rated 79 75 4 76 72 4 Total $ 5,413 $ 1,985 $ 3,428 $ 4,902 $ 1,820 $ 3,082 Less: negative reinsurance assets 1,272 874 Total Reinsurance assets $ 4,141 $ 4,028 The following tables summarize our mortgages and loans by credit quality indicator: As at December 31, 2018 2017 Mortgages by credit rating: Insured $ 3,537 $ 3,171 AAA 3 4 AA 2,209 1,716 A 4,841 4,304 BBB 4,925 5,060 BB and lower 912 1,227 Impaired 6 11 Total mortgages $ 16,433 $ 15,493 As at December 31, 2018 2017 Loans by credit rating: AAA $ 341 $ 400 AA 4,659 3,670 A 11,483 11,626 BBB 12,766 10,745 BB and lower 1,097 810 Impaired 43 61 Total loans $ 30,389 $ 27,312 The following table shows the OTC derivative financial instruments with a positive fair value split by counterparty credit rating: As at December 31, 2018 2017 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 $ 289 $ (252 ) $ 37 $ 113 $ (95 ) $ 18 A 750 (507 ) 243 872 (589 ) 283 BBB 46 (9 ) 37 466 (10 ) 456 Total over-the-counter derivatives (1) $ 1,085 $ (768 ) $ 317 $ 1,451 $ (694 ) $ 757 (1) Exchange-traded derivatives with a positive fair value of $27 in 2018 ( $27 in 2017 ) 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, 2018 2017 Notional amount Fair value Notional amount Fair value Single name CDS contracts AA $ 48 $ 1 $ 67 $ 1 A 611 9 584 15 BBB 674 13 446 9 Total single name CDS contracts $ 1,333 $ 23 $ 1,097 $ 25 CDS index contracts $ 23 $ — $ 24 $ — Total credit default swap contracts $ 1,356 $ 23 $ 1,121 $ 25 The following table summarizes our debt securities by credit quality: As at December 31, 2018 2017 Fair value through profit or loss Available-for-sale Total debt securities Fair value through profit or loss Available-for-sale Total debt securities Debt securities by credit rating: AAA $ 9,728 $ 5,919 $ 15,647 $ 8,579 $ 4,870 $ 13,449 AA 14,208 2,044 16,252 14,006 1,809 15,815 A 19,089 2,447 21,536 19,603 3,000 22,603 BBB 17,646 2,483 20,129 16,894 2,674 19,568 BB and lower 731 148 879 885 299 1,184 Total debt securities $ 61,402 $ 13,041 $ 74,443 $ 59,967 $ 12,652 $ 72,619 |
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, 2018 Mortgages Loans Total Mortgages Loans Total Not past due $ 16,427 $ 30,332 $ 46,759 $ — $ — $ — Past due: Past due less than 90 days — 14 14 — — — Past due 90 days or more — — — — — — Impaired 31 93 124 25 50 75 Total $ 16,458 $ 30,439 $ 46,897 $ 25 $ 50 $ 75 Gross carrying value Allowance for losses As at December 31, 2017 Mortgages Loans Total Mortgages Loans Total Not past due $ 15,482 $ 27,180 $ 42,662 $ — $ — $ — Past due: Past due less than 90 days — 71 71 — — — Past due 90 days or more — — — — — — Impaired 33 89 122 22 28 50 Total $ 15,515 $ 27,340 $ 42,855 $ 22 $ 28 $ 50 |
Disclosure of changes in allowance for losses | The changes in the allowances for losses are as follows: Mortgages Loans Total Balance, January 1, 2017 $ 23 $ 7 $ 30 Provision for (reversal of) losses — 22 22 Write-offs, net of recoveries, and other adjustments — — — Foreign exchange rate movements (1 ) (1 ) (2 ) Balance, December 31, 2017 $ 22 $ 28 $ 50 Provision for (reversal of) losses 3 19 22 Write-offs, net of recoveries, and other adjustments (2 ) — (2 ) Foreign exchange rate movements 2 3 5 Balance, December 31, 2018 $ 25 $ 50 $ 75 |
Disclosure of equities by issue country | The carrying value of equities by issuer country is shown in the following table: As at December 31, 2018 2017 Fair value through profit or loss Available-for-sale Total equities Fair value through profit or loss Available-for-sale Total equities Canada $ 2,651 $ 15 $ 2,666 $ 3,282 $ 53 $ 3,335 United States 508 388 896 765 671 1,436 United Kingdom 121 5 126 130 5 135 Other 734 212 946 901 213 1,114 Total equities $ 4,014 $ 620 $ 4,634 $ 5,078 $ 942 $ 6,020 |
Risk Categories (Tables)
Risk Categories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments [Abstract] | |
Disclosure of interest rate and market sensitivities | Market Risk Sensitivities We utilize a variety of methods and measures to quantify our market risk exposures. These include duration management, key rate duration techniques, convexity measures, cash flow gap analysis, scenario testing, and sensitivity testing of earnings and regulatory capital ratios versus risk appetite limits. Our net income (1) is affected by the determination of policyholder obligations under our annuity and insurance contracts. These amounts are determined using internal valuation models and are recorded in our Annual Consolidated Financial Statements, primarily as Insurance contract liabilities. The determination of these obligations requires management to make assumptions about the future level of equity market performance, interest rates, credit and swap spreads and other factors over the life of our products. Differences between our actual experience and our best estimate assumptions are reflected in our Annual Consolidated Financial Statements. Refer to Additional Cautionary Language and Key Assumptions Related to Sensitivities in this section for important additional information regarding these estimates. Equity Market Sensitivities As at December 31, 2018 ($ millions, unless otherwise noted) Change in Equity Markets (1) 25% decrease 10% decrease 10% increase 25% increase Potential impact on net income (2)(3) $ (300 ) $ (100 ) $ 100 $ 250 Potential impact on OCI (3) $ (100 ) $ (50 ) $ 50 $ 100 As at December 31, 2017 Change in Equity Markets (1) 25% decrease 10% decrease 10% increase 25% increase Potential impact on net income (2)(3) $ (300 ) $ (100 ) $ 100 $ 300 Potential impact on OCI (3) $ (200 ) $ (50 ) $ 50 $ 200 (1) Represents the respective change across all equity markets as at December 31, 2018 and December 31, 2017. Assumes that actual equity exposures consistently and precisely track the broader equity markets. Since in actual practice equity-related exposures generally differ from broad market indices (due to the impact of active management, basis risk, and other factors), realized sensitivities may differ significantly from those illustrated above. Sensitivities include the impact of re-balancing equity hedges for dynamic hedging programs at 2% intervals (for 10% changes in equity markets) and at 5% intervals (for 25% changes in equity markets). (2) The market risk sensitivities include the estimated mitigation impact of our hedging programs in effect as at December 31, 2018 and December 31, 2017, and include new business added and product changes implemented prior to such dates. (3) Net income and OCI sensitivities have been rounded to the nearest $50 million. The sensitivities exclude the market impacts on the income from our joint ventures and associates, which we account for on an equity basis. ($ millions, unless otherwise noted) As at December 31, 2018 As at December 31, 2017 Change in Interest Rates (1) 50 basis point decrease 50 basis point increase 50 basis point decrease 50 basis point increase Potential impact on net income (2)(3)(4) $ (100 ) $ 50 $ (100 ) $ 50 Potential impact on OCI (3) $ 250 $ (250 ) $ 250 $ (250 ) (1) Interest rate sensitivities assume a parallel shift in assumed interest rates across the entire yield curve as at December 31, 2018 and December 31, 2017 with no change to the Actuarial Standards Board ("ASB") promulgated Ultimate Reinvestment Rate ("URR"). Variations in realized yields based on factors such as different terms to maturity and geographies may result in realized sensitivities being significantly different from those illustrated above. Sensitivities include the impact of re-balancing interest rate hedges for dynamic hedging programs at 10 basis point intervals (for 50 basis point changes in interest rates). (2) The market risk sensitivities include the estimated mitigation impact of our hedging programs in effect as at December 31, 2018 and December 31, 2017, and include new business added and product changes implemented prior to such dates. (3) Net income and OCI sensitivities have been rounded to the nearest $50 million. The sensitivities exclude the market impacts on the income from our joint ventures and associates, which we account for on an equity basis. (4) The majority of interest rate sensitivity, after hedging, is attributed to individual insurance products. We also have interest rate sensitivity, after hedging, from our fixed annuity and segregated funds products. |
Disclosure of credit and swap spread sensitivities | Credit Spread and Swap Spread Sensitivities We have estimated the immediate impact or sensitivity of our net income attributable to certain instantaneous changes in credit and swap spreads. The credit spread sensitivities reflect the impact of changes in credit spreads on our asset and liability valuations (including non-sovereign fixed income assets, provincial governments, corporate bonds, and other fixed income assets). The swap spread sensitivities reflect the impact of changes in swap spreads on swap-based derivative positions and liability valuations. ($ millions, unless otherwise noted) Credit Spread Sensitivities (1) Swap Spread Sensitivities Net income sensitivity (2) 50 basis point decrease 50 basis point increase 20 basis point decrease 20 basis point increase December 31, 2018 $ (75 ) $ 75 $ 25 $ (25 ) December 31, 2017 $ (100 ) $ 100 $ 25 $ (25 ) (1) In most instances, credit spreads are assumed to revert to long-term insurance contract liability assumptions generally over a five-year period. (2) Sensitivities have been rounded to the nearest $25 million. |
Disclosure of financial liabilities and contractual obligations | The following table summarizes the contractual maturities of our significant financial liabilities and contractual commitments as at December 31, 2018 and December 31, 2017: Financial Liabilities and Contractual Obligations December 31, 2018 ($ millions) Within 1 year 1 year to 3 years 3 years to 5 years Over 5 years Total Insurance and investment contract liabilities (1) $ 11,950 $ 8,388 $ 8,653 $ 264,246 $ 293,237 Senior debentures and unsecured financing (2) 438 556 234 4,880 6,108 Subordinated debt (2) 103 207 207 3,724 4,241 Bond repurchase agreements 1,824 — — — 1,824 Accounts payable and accrued expenses 5,971 — — — 5,971 Secured borrowings from mortgage securitization 182 435 187 817 1,621 Borrowed funds (2) 55 49 45 68 217 Total liabilities $ 20,523 $ 9,635 $ 9,326 $ 273,735 $ 313,219 Contractual commitments (3) Contractual loans, equities and mortgages $ 1,157 $ 1,044 $ 536 $ 1,063 $ 3,800 Operating leases 138 230 182 506 1,056 Total contractual commitments $ 1,295 $ 1,274 $ 718 $ 1,569 $ 4,856 December 31, 2017 ($ millions) Within 1 year 1 year to 3 years 3 years to 5 years Over 5 years Total Insurance and investment contract liabilities (1) $ 10,242 $ 7,552 $ 7,729 $ 242,181 $ 267,704 Senior debentures and unsecured financing (2) 120 516 489 4,393 5,518 Subordinated debt (2) 126 251 251 4,229 4,857 Bond repurchase agreements 1,976 — — — 1,976 Accounts payable and accrued expenses 5,814 — — — 5,814 Secured borrowings from mortgage securitization 81 333 398 701 1,513 Borrowed funds (2) 80 52 49 83 264 Total liabilities $ 18,439 $ 8,704 $ 8,916 $ 251,587 $ 287,646 Contractual commitments (3) Contractual loans, equities and mortgages $ 1,138 $ 820 $ 214 $ 761 $ 2,933 Operating leases 116 207 148 452 923 Total contractual commitments $ 1,254 $ 1,027 $ 362 $ 1,213 $ 3,856 (1) These amounts represent the undiscounted estimated cash flows of insurance and investment contract liabilities on our Consolidated Statements of Financial Position. These cash flows include estimates related to the timing and payment of death and disability claims, policy surrenders, policy maturities, annuity payments, minimum guarantees on segregated fund products, policyholder dividends, amounts on deposit, commissions and premium taxes offset by contractual future premiums and fees on in-force contracts. These estimated cash flows are based on the best estimated assumptions used in the determination of insurance and investment contract liabilities. Due to the use of assumptions, actual cash flows will differ from these estimates. (2) Payments due based on maturity dates and include expected interest payments. Actual redemption of certain securities may occur sooner as some include an option for the issuer to call the security at par at an earlier date. (3) Contractual commitments and operating lease commitments are not reported on our Consolidated Financial Statements. Additional information on these commitments is included in Note 23 of our 2018 Annual Consolidated Financial Statements. The following table summarizes the contractual maturities of our significant financial liabilities and contractual commitments as at December 31, 2018 and December 31, 2017: Financial Liabilities and Contractual Obligations December 31, 2018 ($ millions) Within 1 year 1 year to 3 years 3 years to 5 years Over 5 years Total Insurance and investment contract liabilities (1) $ 11,950 $ 8,388 $ 8,653 $ 264,246 $ 293,237 Senior debentures and unsecured financing (2) 438 556 234 4,880 6,108 Subordinated debt (2) 103 207 207 3,724 4,241 Bond repurchase agreements 1,824 — — — 1,824 Accounts payable and accrued expenses 5,971 — — — 5,971 Secured borrowings from mortgage securitization 182 435 187 817 1,621 Borrowed funds (2) 55 49 45 68 217 Total liabilities $ 20,523 $ 9,635 $ 9,326 $ 273,735 $ 313,219 Contractual commitments (3) Contractual loans, equities and mortgages $ 1,157 $ 1,044 $ 536 $ 1,063 $ 3,800 Operating leases 138 230 182 506 1,056 Total contractual commitments $ 1,295 $ 1,274 $ 718 $ 1,569 $ 4,856 December 31, 2017 ($ millions) Within 1 year 1 year to 3 years 3 years to 5 years Over 5 years Total Insurance and investment contract liabilities (1) $ 10,242 $ 7,552 $ 7,729 $ 242,181 $ 267,704 Senior debentures and unsecured financing (2) 120 516 489 4,393 5,518 Subordinated debt (2) 126 251 251 4,229 4,857 Bond repurchase agreements 1,976 — — — 1,976 Accounts payable and accrued expenses 5,814 — — — 5,814 Secured borrowings from mortgage securitization 81 333 398 701 1,513 Borrowed funds (2) 80 52 49 83 264 Total liabilities $ 18,439 $ 8,704 $ 8,916 $ 251,587 $ 287,646 Contractual commitments (3) Contractual loans, equities and mortgages $ 1,138 $ 820 $ 214 $ 761 $ 2,933 Operating leases 116 207 148 452 923 Total contractual commitments $ 1,254 $ 1,027 $ 362 $ 1,213 $ 3,856 (1) These amounts represent the undiscounted estimated cash flows of insurance and investment contract liabilities on our Consolidated Statements of Financial Position. These cash flows include estimates related to the timing and payment of death and disability claims, policy surrenders, policy maturities, annuity payments, minimum guarantees on segregated fund products, policyholder dividends, amounts on deposit, commissions and premium taxes offset by contractual future premiums and fees on in-force contracts. These estimated cash flows are based on the best estimated assumptions used in the determination of insurance and investment contract liabilities. Due to the use of assumptions, actual cash flows will differ from these estimates. (2) Payments due based on maturity dates and include expected interest payments. Actual redemption of certain securities may occur sooner as some include an option for the issuer to call the security at par at an earlier date. (3) Contractual commitments and operating lease commitments are not reported on our Consolidated Financial Statements. Additional information on these commitments is included in Note 23 of our 2018 Annual Consolidated Financial Statements. |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule of Other Assets | Other assets consist of the following: As at December 31, 2018 2017 Accounts receivable $ 1,451 $ 1,579 Investment income due and accrued 1,131 1,078 Property and equipment 621 624 Deferred acquisition costs (1) 130 160 Prepaid expenses 309 282 Premium receivable 567 522 Accrued post-retirement benefit assets (Note 25) 184 82 Other 105 81 Total other assets $ 4,498 $ 4,408 (1) Amortization of deferred acquisition cost charged to income during the year amounted to $33 in 2018 ( $53 in 2017 ). |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Intangible Assets [Abstract] | |
Disclosure of reconciliation of changes in goodwill | The carrying amounts of goodwill allocated to our CGUs or groups of CGUs are as follows: As at December 31, 2018 2017 SLF Canada Individual $ 1,100 $ 1,066 Group retirement services 453 453 Group benefits 1,054 1,054 SLF U.S. Employee benefits group 1,138 1,043 SLF Asia 705 655 SLF Asset Management MFS 515 481 Sun Life Investment Management ("SLIM") 260 248 Corporate U.K. 187 183 Total $ 5,412 $ 5,183 Changes in the carrying amount of goodwill acquired through business combinations by reportable segment are as follows: SLF Canada SLF U.S. SLF Asia SLF Asset Management Corporate Total Balance, January 1, 2017 $ 2,573 $ 1,112 $ 686 $ 767 $ 179 $ 5,317 Acquisitions (Note 3) — — 16 — — 16 Foreign exchange rate movements — (69 ) (47 ) (38 ) 4 (150 ) Balance, December 31, 2017 $ 2,573 $ 1,043 $ 655 $ 729 $ 183 $ 5,183 Acquisitions 34 7 — — — 41 Foreign exchange rate movements — 88 50 46 4 188 Balance, December 31, 2018 $ 2,607 $ 1,138 $ 705 $ 775 $ 187 $ 5,412 |
Disclosure of reconciliation of changes in and components of intangible assets | Changes in intangible assets are as follows: Finite life Internally generated software Other Indefinite life Total Gross carrying amount Balance, January 1, 2017 $ 518 $ 1,172 $ 661 $ 2,351 Additions 81 5 — 86 Acquisitions (Note 3) — 61 — 61 Disposals (3 ) — — (3 ) Foreign exchange rate movements (17 ) (36 ) (36 ) (89 ) Balance, December 31, 2017 $ 579 $ 1,202 $ 625 $ 2,406 Additions 118 (1 ) — 117 Acquisitions — 19 3 22 Foreign exchange rate movements 25 46 45 116 Balance, December 31, 2018 $ 722 $ 1,266 $ 673 $ 2,661 Accumulated amortization and impairment losses Balance, January 1, 2017 $ (291 ) $ (353 ) $ (4 ) $ (648 ) Amortization charge for the year (59 ) (53 ) — (112 ) Disposals 3 — — 3 Foreign exchange rate movements 9 9 — 18 Balance, December 31, 2017 $ (338 ) $ (397 ) $ (4 ) $ (739 ) Amortization charge for the year (66 ) (53 ) — (119 ) Foreign exchange rate movements (13 ) (11 ) — (24 ) Balance, December 31, 2018 $ (417 ) $ (461 ) $ (4 ) $ (882 ) Net carrying amount, end of period: As at December 31, 2017 $ 241 $ 805 $ 621 $ 1,667 As at December 31, 2018 $ 305 $ 805 $ 669 $ 1,779 The components of the intangible assets are as follows: As at December 31, 2018 2017 Finite life intangible assets: Distribution, sales potential of field force $ 366 $ 376 Client relationships and asset administration contracts 439 429 Internally generated software 305 241 Total finite life intangible assets 1,110 1,046 Indefinite life intangible assets: Fund management contracts (1) 669 621 Total indefinite life intangible assets 669 621 Total intangible assets $ 1,779 $ 1,667 (1) Fund management contracts are attributable to SLF 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, 2018 | |
Insurance Contracts [Abstract] | |
Disclosure of insurance contract liabilities | The following tables show the total assets supporting total liabilities for the product lines shown (including insurance contract and investment contract liabilities) and assets supporting equity and other: As at December 31, 2018 Debt securities Equity securities Mortgages and loans Investment properties Other Total Individual participating life $ 19,624 $ 2,557 $ 7,978 $ 4,736 $ 4,397 $ 39,292 Individual non-participating life and health 18,720 1,303 14,398 1,638 9,058 45,117 Group life and health 6,271 70 9,217 — 2,882 18,440 Individual annuities 11,918 49 5,769 — 959 18,695 Group annuities 6,448 35 6,298 — 822 13,603 Equity and other 11,462 620 3,162 783 17,591 33,618 Total assets $ 74,443 $ 4,634 $ 46,822 $ 7,157 $ 35,709 $ 168,765 As at December 31, 2017 Debt securities Equity securities Mortgages and loans Investment properties Other Total Individual participating life $ 18,855 $ 3,190 $ 7,458 $ 4,645 $ 4,508 $ 38,656 Individual non-participating life and health 18,560 1,720 12,360 1,348 8,702 42,690 Group life and health 6,003 73 8,799 — 2,667 17,542 Individual annuities 12,001 50 5,506 — 1,303 18,860 Group annuities 6,076 45 5,840 — 538 12,499 Equity and other 11,124 942 2,842 1,074 16,491 32,473 Total assets $ 72,619 $ 6,020 $ 42,805 $ 7,067 $ 34,209 $ 162,720 Changes in Insurance contract liabilities and Reinsurance assets are as follows: For the years ended December 31, 2018 2017 Insurance contract liabilities Reinsurance assets Net Insurance contract liabilities Reinsurance assets Net Balances, before Other policy liabilities and assets as at January 1, $ 111,091 $ 3,503 $ 107,588 $ 108,411 $ 4,541 $ 103,870 Change in balances on in-force policies (3,094 ) (129 ) (2,965 ) 2,757 (779 ) 3,536 Balances arising from new policies 3,780 128 3,652 2,941 156 2,785 Method and assumption changes (374 ) (96 ) (278 ) (371 ) (198 ) (173 ) Increase (decrease) in Insurance contract liabilities and Reinsurance assets 312 (97 ) 409 5,327 (821 ) 6,148 Foreign exchange rate movements 3,499 247 3,252 (2,647 ) (217 ) (2,430 ) Balances before Other policy liabilities and assets 114,902 3,653 111,249 111,091 3,503 107,588 Other policy liabilities and assets 7,021 488 6,533 6,694 525 6,169 Total Insurance contract liabilities and Reinsurance assets, December 31 $ 121,923 $ 4,141 $ 117,782 $ 117,785 $ 4,028 $ 113,757 Insurance contract liabilities consist of the following: As at December 31, 2018 SLF Canada SLF U.S. SLF Asia Corporate (1) Total Individual participating life $ 21,095 $ 5,785 $ 6,651 $ 1,076 $ 34,607 Individual non-participating life and health 11,435 13,239 12,463 391 37,528 Group life and health 9,591 5,674 32 — 15,297 Individual annuities 9,267 25 (44 ) 5,608 14,856 Group annuities 12,461 6 147 — 12,614 Insurance contract liabilities before other policy liabilities 63,849 24,729 19,249 7,075 114,902 Add: Other policy liabilities (2) 3,049 1,457 2,276 239 7,021 Total insurance contract liabilities $ 66,898 $ 26,186 $ 21,525 $ 7,314 $ 121,923 (1) Primarily business from the U.K. and run-off reinsurance operations. Includes U.K. business of $980 for Individual participating life, $240 for Individual non-participating life and health, $5,214 for Individual annuities, and $170 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, 2017 SLF Canada SLF U.S. (1) SLF Asia (1) Corporate (2) Total Individual participating life $ 20,918 $ 5,582 $ 6,705 $ 1,186 $ 34,391 Individual non-participating life and health 11,161 12,024 11,449 394 35,028 Group life and health 9,131 5,427 33 11 14,602 Individual annuities 9,178 25 (68 ) 6,215 15,350 Group annuities 11,607 7 106 — 11,720 Insurance contract liabilities before other policy liabilities 61,995 23,065 18,225 7,806 111,091 Add: Other policy liabilities (3) 3,088 1,345 2,032 229 6,694 Total insurance contract liabilities $ 65,083 $ 24,410 $ 20,257 $ 8,035 $ 117,785 (1) Balances in 2017 have been changed to conform with current year presentation as a result of the resegmentation described in Note 4. (2) Primarily business from the U.K. and run-off reinsurance operations. Includes U.K. business of $1,089 for Individual participating life, $250 for Individual non-participating life and health, $5,692 for Individual annuities, and $158 for Other policy liabilities. (3) Consists of amounts on deposit, policy benefits payable, provisions for unreported claims, provisions for policyholder dividends, and provisions for experience rating refunds. |
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, 2018 Net increase (decrease) before income taxes Description Mortality / Morbidity $ (337 ) Updates to reflect mortality/morbidity experience in all jurisdictions. The largest items were favourable mortality in SLF Asia International, SLF Canada Group Retirement Services and SLF U.K. Lapse and other policyholder behaviour 563 Updates to lapse and other policyholder behaviour in all jurisdictions. The largest items, which all had unfavourable impacts, were updated lapse assumptions in SLF U.S. and SLF Asia International. Expenses 6 Updates to reflect expense experience in all jurisdictions including updates to SLF Canada participating life accounts. Investment returns (331 ) Updates to various investment-related assumptions across the Company including updates to SLF Canada participating life accounts. Model enhancements and other (179 ) Various enhancements and methodology changes across all jurisdictions. The largest items were a favourable change to the participating provisions for adverse deviation in SLF Canada and SLF U.S., partially offset by a change in reinsurance provisions in SLF U.S. Total impact of method and assumption changes $ (278 ) For the year ended December 31, 2017 Net increase (decrease) before income taxes Description Mortality / Morbidity $ (286 ) Updates to reflect mortality/morbidity experience in all jurisdictions. The largest items were favourable mortality in SLF U.S. In-force Management and SLF Asia International insurance and favourable mortality improvement in SLF U.K. Lapse and other policyholder behaviour 149 Updates to reflect lapse and other policyholder behaviour experience in all jurisdictions. The largest items were lower lapse rates on lapse supported business in SLF U.S. and updated lapse assumptions in SLF Canada's individual insurance business. Expenses 71 Updates to reflect expense experience in all jurisdictions. The largest items were a refinement to the allocation of expenses in SLF Canada and increased expenses in the closed block of business in SLF Asia International wealth. Investment returns (62 ) Updates to various investment related assumptions across the Company. This included a reduction of the provision for investment risk in SLF Canada and other updated investment related assumptions, offset partially by updates to promulgated ultimate reinvestment rates. Model enhancements and other (45 ) Various enhancements and methodology changes across all jurisdictions. Includes the favourable impact on insurance contract liabilities from the resolution of tax uncertainties in a U.S. subsidiary and updates to the SLF Canada participating individual life business, partially offset by changes due to U.S. tax reform and updates to reflect reinsurance market conditions. Total impact of method and assumption changes $ (173 ) |
Schedule of investment contract liabilities | Investment contract liabilities consist of the following: As at December 31, 2018 SLF Canada SLF Asia Corporate Total Individual participating life $ — $ — $ 6 $ 6 Individual non-participating life and health — 254 3 257 Individual annuities 2,646 — 43 2,689 Group annuities — 212 — 212 Total investment contract liabilities $ 2,646 $ 466 $ 52 $ 3,164 Included in the Investment contract liabilities of $ 3,164 are liabilities of $515 for investment contracts with DPF, $2,646 for investment contracts without DPF measured at amortized cost, and $3 for investment contracts without DPF measured at fair value. As at December 31, 2017 SLF Canada SLF Asia Corporate Total Individual participating life $ — $ — $ 8 $ 8 Individual non-participating life and health — 260 3 263 Individual annuities 2,517 — 48 2,565 Group annuities — 246 — 246 Total investment contract liabilities $ 2,517 $ 506 $ 59 $ 3,082 Included in the Investment contract liabilities of $3,082 are liabilities of $562 for investment contracts with DPF, $2,517 for investment contracts without DPF measured at amortized cost, and $3 for investment contracts without DPF measured at fair value. |
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, 2018 2017 Measured at fair value Measured at amortized cost Measured at fair value Measured at amortized cost Balance as at January 1 $ 3 $ 2,517 $ 3 $ 2,305 Deposits — 483 — 470 Interest — 53 — 47 Withdrawals — (420 ) — (322 ) Fees — (8 ) — (5 ) Other — 21 — 19 Change in assumptions — — — 3 Balance as at December 31 $ 3 $ 2,646 $ 3 $ 2,517 Changes in investment contract liabilities with DPF are as follows: For the years ended December 31, 2018 2017 Balance as at January 1 $ 562 $ 605 Change in liabilities on in-force (84 ) (10 ) Liabilities arising from new policies — 1 Increase (decrease) in liabilities (84 ) (9 ) Foreign exchange rate movements 37 (34 ) Balance as at December 31 $ 515 $ 562 |
Disclosure of claims and benefits paid | Gross claims and benefits paid consist of the following: For the years ended December 31, 2018 2017 Maturities and surrenders $ 2,609 $ 2,389 Annuity payments 1,876 1,849 Death and disability benefits 3,948 3,836 Health benefits 6,421 6,079 Policyholder dividends and interest on claims and deposits 1,132 1,200 Total gross claims and benefits paid $ 15,986 $ 15,353 |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 SLF Canada SLF U.S. SLF Asia Corporate (1) Total Individual participating life $ 20 $ 10 $ 180 $ — $ 210 Individual non-participating life and health (205 ) 1,076 36 21 928 Group life and health 358 1,848 2 — 2,208 Individual annuities — — — 186 186 Group annuities 121 — — — 121 Reinsurance assets before other policy assets 294 2,934 218 207 3,653 Add: Other policy assets (2) 80 307 42 59 488 Total Reinsurance assets $ 374 $ 3,241 $ 260 $ 266 $ 4,141 (1) Primarily business from the U.K. and run-off reinsurance operations. Includes U.K. business of $21 for Individual non-participating life and health, and $47 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, 2017 SLF Canada SLF U.S. (1) SLF Asia (1) Corporate (2) Total Individual participating life $ 4 $ (33 ) $ 207 $ — $ 178 Individual non-participating life and health 129 809 73 22 1,033 Group life and health 342 1,626 2 — 1,970 Individual annuities — — — 195 195 Group annuities 127 — — — 127 Reinsurance assets before other policy assets 602 2,402 282 217 3,503 Add: Other policy assets (3) 85 353 32 55 525 Total Reinsurance assets $ 687 $ 2,755 $ 314 $ 272 $ 4,028 (1) Balances in 2017 have been changed to conform with current year presentation as a result of the resegmentation described in Note 4. (2) Primarily business from the U.K. and run-off reinsurance operations. Includes U.K. business of $ 22 for Individual non-participating life and health, and $ 58 for Individual annuities. (3) 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 | Reinsurance (expenses) recoveries are comprised of the following: For the years ended December 31, 2018 2017 Recovered claims and benefits $ 1,839 $ 3,704 Commissions 74 85 Reserve adjustments 25 224 Operating expenses and other 83 360 Reinsurance (expenses) recoveries $ 2,021 $ 4,373 |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Subclassifications of assets, liabilities and equities [abstract] | |
Schedule Of Other Liabilities | Other liabilities consist of the following: As at December 31, 2018 2017 Accounts payable $ 2,045 $ 1,972 Bank overdrafts and cash pooling 104 140 Repurchase agreements (Note 5) 1,824 1,976 Accrued expenses and taxes 3,137 2,927 Borrowed funds (1) 188 227 Senior financing (2) 2,066 1,905 Accrued post-retirement benefit liability (Note 25) 651 710 Secured borrowings from mortgage securitization (Note 5) 1,453 1,355 Other 685 775 Total other liabilities $ 12,153 $ 11,987 (1) The change in Borrowed funds relates to net cash flow changes of $ (40) in 2018 ( $(45) in 2017) and foreign exchange rate movements of $ 1 in 2018 ( $(2) in 2017). (2) The change in Senior financing relates to net cash flow changes of $ nil in 2018 ($ nil in 2017) and foreign exchange rate movements of $161 in 2018 ( $(129) in 2017). |
Schedule of Borrowings | Borrowed funds include the following: As at December 31, Currency of borrowing Maturity 2018 2017 Encumbrances on real estate Cdn. dollars Current – 2033 $ 177 $ 206 Encumbrances on real estate U.S. dollars Current – 2020 11 21 Total borrowed funds $ 188 $ 227 The following obligations are included in Senior debentures as at December 31: Interest rate Earliest par call or redemption date Maturity 2018 2017 SLF Inc. senior debentures Series D issued June 30, 2009 (2) 5.70 % n/a 2019 $ 300 $ 300 Series E issued August 23, 2011 (2) 4.57 % n/a 2021 299 299 Sun Life Assurance senior debentures (3) Issued to Sun Life Capital Trust ("SLCT I") Series B issued June 25, 2002 7.09 % June 30, 2032 (4) 2052 200 200 Issued to Sun Life Capital Trust II ("SLCT II") Series C issued November 20, 2009 (5) 6.06 % December 31, 2019 (6) 2108 500 500 Total senior debentures $ 1,299 $ 1,299 Fair value $ 1,390 $ 1,439 (1) All senior debentures are unsecured. (2) Redeemable in whole or in part at any time prior to maturity at a price equal to the greater of par and a price based on the yield of a corresponding Government of Canada bond plus 0.575% for the Series D debentures and 0.53% for the Series E debentures. (3) Redemption is subject to regulatory approval. (4) 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. (5) On December 31, 2019, and every fifth anniversary thereafter (“Interest Reset Date”), the interest rate will reset to an annual rate equal to the five-year Government of Canada bond yield plus 3.60% . (6) Redeemable in whole or in part. If redemption occurs on an Interest Reset Date, the redemption price is par; otherwise, it is the greater of par and a price based on the yield of a corresponding Government of Canada bond plus (i) 0.65% if redemption occurs prior to December 31, 2019, or (ii) 1.30% if redemption occurs after December 31, 2019. Also redeemable in whole at par at any time upon the occurrence of a Regulatory Event or Tax Event, as described in the debenture. 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 or redemption date (1) Maturity 2018 2017 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 January 30, 2008 (5) 5.59 % January 30, 2018 (5) 2023 — 400 Issued March 2, 2012 (6) 4.38 % March 2, 2017 (6) 2022 — — Issued May 13, 2014 (7) 2.77 % May 13, 2019 2024 250 249 Issued September 25, 2015 (8) 2.60 % September 25, 2020 2025 499 498 Issued February 19, 2016 (9) 3.10 % February 19, 2021 2026 349 349 Issued September 19, 2016 (10) 3.05 % September 19, 2023 (4) 2028 995 995 Issued November 23, 2017 (11) 2.75 % November 23, 2022 2027 398 398 Total subordinated debt $ 3,039 $ 3,437 Fair value $ 3,129 $ 3,583 (1) The debentures issued by SLF Inc. in 2007 are redeemable at any time and the debentures issued by SLF Inc. in 2014, 2015, 2016, and 2017 are redeemable on or after the date specified. From the date noted, the redemption price is par and redemption may only occur on a scheduled interest payment date. Redemption of all subordinated debentures is subject to regulatory approval. (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 Canadian dollar offered rate for three-month bankers' acceptances ("CDOR"). (4) For redemption of the 2007 debentures prior to the date noted, and for redemptions of the September 19, 2016 debentures 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 0.25% for the 2007 debentures and 0.52% for the September 19, 2016 debentures. (5) Series 2008-1 Subordinated Unsecured 5.59% Fixed/Floating Debentures due 2023. On January 30, 2018, SLF Inc. redeemed all of the outstanding $400 principal amount of these debentures at a redemption price equal to the principal amount together with accrued and unpaid interest. (6) Series 2012-1 Subordinated Unsecured 4.38% Fixed/Floating Debentures due 2022. On March 2, 2017, SLF Inc. redeemed all of the outstanding $800 principal amount of these debentures at a redemption price equal to the principal amount together with accrued and unpaid interest. (7) Series 2014-1 Subordinated Unsecured 2.77% Fixed/Floating Debentures due 2024. From May 13, 2019, interest is payable at 0.75% over CDOR. (8) Series 2015-1 Subordinated Unsecured 2.60% Fixed/Floating Debentures due 2025. From September 25, 2020, interest is payable at 1.43% over CDOR. (9) Series 2016-1 Subordinated Unsecured 3.10% Fixed/Floating Debentures due 2026. From February 19, 2021, interest is payable at 2.20% over CDOR. (10) Series 2016-2 Subordinated Unsecured 3.05% Fixed/Floating Debentures due 2028. From September 19, 2023, interest is payable at 1.85% over CDOR. (11) Series 2017-1 Subordinated Unsecured 2.75% Fixed/Floating Debentures due 2027. From November 23, 2022, interest is payable at 0.74% over CDOR. |
Senior Debentures and Innovat_2
Senior Debentures and Innovative Capital Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments [Abstract] | |
Schedule of Borrowings | Borrowed funds include the following: As at December 31, Currency of borrowing Maturity 2018 2017 Encumbrances on real estate Cdn. dollars Current – 2033 $ 177 $ 206 Encumbrances on real estate U.S. dollars Current – 2020 11 21 Total borrowed funds $ 188 $ 227 The following obligations are included in Senior debentures as at December 31: Interest rate Earliest par call or redemption date Maturity 2018 2017 SLF Inc. senior debentures Series D issued June 30, 2009 (2) 5.70 % n/a 2019 $ 300 $ 300 Series E issued August 23, 2011 (2) 4.57 % n/a 2021 299 299 Sun Life Assurance senior debentures (3) Issued to Sun Life Capital Trust ("SLCT I") Series B issued June 25, 2002 7.09 % June 30, 2032 (4) 2052 200 200 Issued to Sun Life Capital Trust II ("SLCT II") Series C issued November 20, 2009 (5) 6.06 % December 31, 2019 (6) 2108 500 500 Total senior debentures $ 1,299 $ 1,299 Fair value $ 1,390 $ 1,439 (1) All senior debentures are unsecured. (2) Redeemable in whole or in part at any time prior to maturity at a price equal to the greater of par and a price based on the yield of a corresponding Government of Canada bond plus 0.575% for the Series D debentures and 0.53% for the Series E debentures. (3) Redemption is subject to regulatory approval. (4) 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. (5) On December 31, 2019, and every fifth anniversary thereafter (“Interest Reset Date”), the interest rate will reset to an annual rate equal to the five-year Government of Canada bond yield plus 3.60% . (6) Redeemable in whole or in part. If redemption occurs on an Interest Reset Date, the redemption price is par; otherwise, it is the greater of par and a price based on the yield of a corresponding Government of Canada bond plus (i) 0.65% if redemption occurs prior to December 31, 2019, or (ii) 1.30% if redemption occurs after December 31, 2019. Also redeemable in whole at par at any time upon the occurrence of a Regulatory Event or Tax Event, as described in the debenture. 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 or redemption date (1) Maturity 2018 2017 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 January 30, 2008 (5) 5.59 % January 30, 2018 (5) 2023 — 400 Issued March 2, 2012 (6) 4.38 % March 2, 2017 (6) 2022 — — Issued May 13, 2014 (7) 2.77 % May 13, 2019 2024 250 249 Issued September 25, 2015 (8) 2.60 % September 25, 2020 2025 499 498 Issued February 19, 2016 (9) 3.10 % February 19, 2021 2026 349 349 Issued September 19, 2016 (10) 3.05 % September 19, 2023 (4) 2028 995 995 Issued November 23, 2017 (11) 2.75 % November 23, 2022 2027 398 398 Total subordinated debt $ 3,039 $ 3,437 Fair value $ 3,129 $ 3,583 (1) The debentures issued by SLF Inc. in 2007 are redeemable at any time and the debentures issued by SLF Inc. in 2014, 2015, 2016, and 2017 are redeemable on or after the date specified. From the date noted, the redemption price is par and redemption may only occur on a scheduled interest payment date. Redemption of all subordinated debentures is subject to regulatory approval. (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 Canadian dollar offered rate for three-month bankers' acceptances ("CDOR"). (4) For redemption of the 2007 debentures prior to the date noted, and for redemptions of the September 19, 2016 debentures 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 0.25% for the 2007 debentures and 0.52% for the September 19, 2016 debentures. (5) Series 2008-1 Subordinated Unsecured 5.59% Fixed/Floating Debentures due 2023. On January 30, 2018, SLF Inc. redeemed all of the outstanding $400 principal amount of these debentures at a redemption price equal to the principal amount together with accrued and unpaid interest. (6) Series 2012-1 Subordinated Unsecured 4.38% Fixed/Floating Debentures due 2022. On March 2, 2017, SLF Inc. redeemed all of the outstanding $800 principal amount of these debentures at a redemption price equal to the principal amount together with accrued and unpaid interest. (7) Series 2014-1 Subordinated Unsecured 2.77% Fixed/Floating Debentures due 2024. From May 13, 2019, interest is payable at 0.75% over CDOR. (8) Series 2015-1 Subordinated Unsecured 2.60% Fixed/Floating Debentures due 2025. From September 25, 2020, interest is payable at 1.43% over CDOR. (9) Series 2016-1 Subordinated Unsecured 3.10% Fixed/Floating Debentures due 2026. From February 19, 2021, interest is payable at 2.20% over CDOR. (10) Series 2016-2 Subordinated Unsecured 3.05% Fixed/Floating Debentures due 2028. From September 19, 2023, interest is payable at 1.85% over CDOR. (11) Series 2017-1 Subordinated Unsecured 2.75% Fixed/Floating Debentures due 2027. From November 23, 2022, interest is payable at 0.74% over CDOR. |
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 (1)(2)(3)(4) SLEECS B June 25, 2002 June 30, December 31 7.093 % June 30, 2007 Any time $ 200 Sun Life Capital Trust II (1)(2) SLEECS 2009-1 November 20, 2009 June 30, December 31 5.863 % (5) December 31, 2014 No conversion option 500 Total $ 700 (1) Subject to regulatory approval, the SL Capital Trusts may (i) redeem any outstanding SLEECS, in whole or in part, on the redemption date specified above or on any distribution date thereafter, or in the case of SLCT II, on any 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. The SLEECS 2009-1 may be redeemed for cash equivalent to, on any day that is not an Interest Reset Date, accrued and unpaid interest on the SLEECS 2009-1 plus the greater of par and a price calculated to provide an annual yield equal to the yield of a Government of Canada bond maturing on the next Interest Reset Date plus (i) 0.60% if the redemption date is prior to December 31, 2019 or (ii) 1.20% if the redemption date is any time after December 31, 2019. On an Interest Reset Date, the redemption price is equal to par plus accrued and unpaid interest on the SLEECS 2009-1. (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. (4) Holders of SLEECS B may exchange, at any time, all or part of their SLEECS B units for non-cumulative perpetual preferred shares of Sun Life Assurance at an exchange rate for each SLEECS of 40 non-cumulative perpetual preferred shares of Sun Life Assurance. SLCT I will have the right, at any time before the exchange is completed, to arrange for a substituted purchaser to purchase SLEECS tendered for surrender to SLCT I so long as the holder of the SLEECS so tendered has not withheld consent to the purchase of its SLEECS. Any non-cumulative perpetual preferred shares issued in respect of an exchange by the holders of 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. (5) Holders of SLEECS 2009-1 are eligible to receive semi-annual interest payments at a fixed rate until December 31, 2019. The interest rate on the SLEECS 2009-1 will reset on December 31, 2019 and every fifth anniversary thereafter to equal the five-year Government of Canada bond yield plus 3.40% . |
(Tables)
(Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments [Abstract] | |
Schedule of Borrowings | Borrowed funds include the following: As at December 31, Currency of borrowing Maturity 2018 2017 Encumbrances on real estate Cdn. dollars Current – 2033 $ 177 $ 206 Encumbrances on real estate U.S. dollars Current – 2020 11 21 Total borrowed funds $ 188 $ 227 The following obligations are included in Senior debentures as at December 31: Interest rate Earliest par call or redemption date Maturity 2018 2017 SLF Inc. senior debentures Series D issued June 30, 2009 (2) 5.70 % n/a 2019 $ 300 $ 300 Series E issued August 23, 2011 (2) 4.57 % n/a 2021 299 299 Sun Life Assurance senior debentures (3) Issued to Sun Life Capital Trust ("SLCT I") Series B issued June 25, 2002 7.09 % June 30, 2032 (4) 2052 200 200 Issued to Sun Life Capital Trust II ("SLCT II") Series C issued November 20, 2009 (5) 6.06 % December 31, 2019 (6) 2108 500 500 Total senior debentures $ 1,299 $ 1,299 Fair value $ 1,390 $ 1,439 (1) All senior debentures are unsecured. (2) Redeemable in whole or in part at any time prior to maturity at a price equal to the greater of par and a price based on the yield of a corresponding Government of Canada bond plus 0.575% for the Series D debentures and 0.53% for the Series E debentures. (3) Redemption is subject to regulatory approval. (4) 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. (5) On December 31, 2019, and every fifth anniversary thereafter (“Interest Reset Date”), the interest rate will reset to an annual rate equal to the five-year Government of Canada bond yield plus 3.60% . (6) Redeemable in whole or in part. If redemption occurs on an Interest Reset Date, the redemption price is par; otherwise, it is the greater of par and a price based on the yield of a corresponding Government of Canada bond plus (i) 0.65% if redemption occurs prior to December 31, 2019, or (ii) 1.30% if redemption occurs after December 31, 2019. Also redeemable in whole at par at any time upon the occurrence of a Regulatory Event or Tax Event, as described in the debenture. 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 or redemption date (1) Maturity 2018 2017 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 January 30, 2008 (5) 5.59 % January 30, 2018 (5) 2023 — 400 Issued March 2, 2012 (6) 4.38 % March 2, 2017 (6) 2022 — — Issued May 13, 2014 (7) 2.77 % May 13, 2019 2024 250 249 Issued September 25, 2015 (8) 2.60 % September 25, 2020 2025 499 498 Issued February 19, 2016 (9) 3.10 % February 19, 2021 2026 349 349 Issued September 19, 2016 (10) 3.05 % September 19, 2023 (4) 2028 995 995 Issued November 23, 2017 (11) 2.75 % November 23, 2022 2027 398 398 Total subordinated debt $ 3,039 $ 3,437 Fair value $ 3,129 $ 3,583 (1) The debentures issued by SLF Inc. in 2007 are redeemable at any time and the debentures issued by SLF Inc. in 2014, 2015, 2016, and 2017 are redeemable on or after the date specified. From the date noted, the redemption price is par and redemption may only occur on a scheduled interest payment date. Redemption of all subordinated debentures is subject to regulatory approval. (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 Canadian dollar offered rate for three-month bankers' acceptances ("CDOR"). (4) For redemption of the 2007 debentures prior to the date noted, and for redemptions of the September 19, 2016 debentures 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 0.25% for the 2007 debentures and 0.52% for the September 19, 2016 debentures. (5) Series 2008-1 Subordinated Unsecured 5.59% Fixed/Floating Debentures due 2023. On January 30, 2018, SLF Inc. redeemed all of the outstanding $400 principal amount of these debentures at a redemption price equal to the principal amount together with accrued and unpaid interest. (6) Series 2012-1 Subordinated Unsecured 4.38% Fixed/Floating Debentures due 2022. On March 2, 2017, SLF Inc. redeemed all of the outstanding $800 principal amount of these debentures at a redemption price equal to the principal amount together with accrued and unpaid interest. (7) Series 2014-1 Subordinated Unsecured 2.77% Fixed/Floating Debentures due 2024. From May 13, 2019, interest is payable at 0.75% over CDOR. (8) Series 2015-1 Subordinated Unsecured 2.60% Fixed/Floating Debentures due 2025. From September 25, 2020, interest is payable at 1.43% over CDOR. (9) Series 2016-1 Subordinated Unsecured 3.10% Fixed/Floating Debentures due 2026. From February 19, 2021, interest is payable at 2.20% over CDOR. (10) Series 2016-2 Subordinated Unsecured 3.05% Fixed/Floating Debentures due 2028. From September 19, 2023, interest is payable at 1.85% over CDOR. (11) Series 2017-1 Subordinated Unsecured 2.75% Fixed/Floating Debentures due 2027. From November 23, 2022, interest is payable at 0.74% over CDOR. |
Share Capital (Tables)
Share Capital (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share Capital, Reserves And Other Equity Interest [Abstract] | |
Disclosure of classes of share capital | The were no changes in preferred shares issued and outstanding for the years ended December 31, 2018 and December 31, 2017. The changes in common shares issued and outstanding for the years ended December 31 were as follows: 2018 2017 Common shares (in millions of shares) Number of shares Amount Number of shares Amount Balance, January 1 610.5 $ 8,582 613.6 $ 8,614 Stock options exercised (Note 19) 0.4 16 0.4 18 Common shares purchased for cancellation (1) (12.5 ) (2) (183 ) (3.5 ) (50 ) Common shares issued as consideration for business acquisition 0.1 4 — — Balance, December 31 598.5 $ 8,419 610.5 $ 8,582 (1) On August 14, 2018 and August 14, 2017, SLF Inc. launched normal course issuer bids to purchase and cancel up to 14 million common shares of SLF Inc. ("commons shares") between August 14, 2018 and August 13, 2019 (the "2018 NCIB") and 11.5 million common shares between August 14, 2017 and August 13, 2018, respectively. Common shares purchased for cancellation are purchased through the facilities of the Toronto Stock Exchange, other Canadian stock exchanges, and/or alternative Canadian trading platforms, at prevailing market rates, or by way of private agreements or share repurchase programs under issuer bid exemption orders issued by securities regulatory authorities at a discount to the prevailing market price. On December 10, 2018, in connection with the 2018 NCIB, SLF Inc. implemented an automatic repurchase plan with its designated broker in order to facilitate purchases of common shares. Under the automatic repurchase plan, SLF Inc.’s designated broker may purchase common shares pursuant to the 2018 NCIB at times when SLF Inc. ordinarily would not be active in the market due to regulatory restrictions or self-imposed blackout periods. In 2018 , SLF Inc. purchased and cancelled approximately 12.5 million common shares at an average price per share of $ 50.83 for a total amount of $ 635 under these programs. An additional 0.1 million common shares were purchased in 2018 and cancelled in 2019 at an average price of $44.91 for a total amount of $6 under the 2018 NCIB. The total amount paid to purchase the shares is allocated to Common shares and Retained earnings in our Consolidated Statements of Changes in Equity. The amount allocated to Common shares is based on the average cost per common share and amounts paid above the average cost are allocated to Retained earnings. (2) 1.1 million shares were purchased pursuant to a third-party share repurchase program under an issuer bid exemption order at a discount to the prevailing market price of the common shares on the Toronto Stock Exchange. Further information on the preferred shares outstanding as at December 31, 2018 , is as follows: Class A Preferred shares (in millions of shares) Issue date Annual dividend rate Annual dividend per share Earliest par call or redemption date (1) Number of shares Face amount Net amount (2) Series 1 February 25, 2005 4.75 % $ 1.19 Any time 16.0 $ 400 $ 394 Series 2 July 15, 2005 4.80 % $ 1.20 Any time 13.0 325 318 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 2.275 % (3) $ 0.57 June 30, 2020 (4) 5.2 130 127 Series 9QR (6) June 30, 2015 Floating (5) Floating June 30, 2020 (7) 6.0 150 147 Series 10R (3) August 12, 2011 2.842 % (3) $ 0.71 (8) September 30, 2021 (4) 6.9 173 169 Series 11QR (6) September 30, 2016 Floating (5) Floating September 30, 2021 (7) 1.1 27 26 Series 12R (3) November 10, 2011 3.806 % (3) $ 0.95 (8) December 31, 2021 (4) 12.0 300 293 Total preferred shares 92.2 $ 2,305 $ 2,257 (1) Redemption of all preferred shares 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% , Series 10R – 2.17% and Class A Non-Cumulative 5-Year Rate Reset Preferred Shares Series 12R ("Series 12R Shares") – 2.73% . 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) 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% . (6) 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. (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 2018. |
Interests in Other Entities (Ta
Interests in Other Entities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 Carrying amount of interests in joint ventures and associates $ 1,500 $ 1,369 Our share of: Net income (loss) 91 67 Other comprehensive income (loss) 7 (31 ) Total comprehensive income (loss) $ 98 $ 36 |
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, 2018 2017 Carrying amount of interests in joint ventures and associates $ 1,500 $ 1,369 Our share of: Net income (loss) 91 67 Other comprehensive income (loss) 7 (31 ) Total comprehensive income (loss) $ 98 $ 36 |
Information on Interests in Unconsolidated Structured Entities | Information on our interests in unconsolidated structured entities is as follows: As at December 31, 2018 2017 Type of structured entity Type of investment held Consolidated Statements of Financial Position line item Carrying amount Maximum exposure to loss (1) Carrying amount Maximum exposure to loss (1) Securitization entities – third-party managed Debt securities Debt securities $ 7,366 $ 7,366 $ 5,899 $ 5,899 Securitization entities – third-party managed Short-term securities Cash, cash equivalents and short-term securities $ 430 $ 430 $ 725 $ 725 Investment funds – third-party managed Investment fund units Equity securities $ 3,439 $ 3,439 $ 4,877 $ 4,877 Investment funds – company managed (2) Investment fund units and Limited partnership units Equity securities and Other invested assets $ 1,705 $ 1,705 $ 1,455 $ 1,455 Limited partnerships – third-party managed Limited partnership units Other invested assets $ 1,557 $ 1,557 $ 1,258 $ 1,258 (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 $ 213 ( $245 in 2017 ). |
Fee Income (Tables)
Fee Income (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Analysis of income and expense [abstract] | |
Schedule of Fee Income | Fee income for the years ended December 31 consists of the following: 2018 2017 (1) Fee income from insurance contracts $ 968 $ 894 Fee income from service contracts: Distribution fees 829 867 Fund management and other asset-based fees 3,444 3,423 Administrative service and other fees 725 658 Total fee income $ 5,966 $ 5,842 (1) Balances in 2017 have been changed to conform with current year presentation as a result of the adoption of IFRS 15 described in Note 2. |
Operating Expenses (Tables)
Operating Expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Analysis of income and expense [abstract] | |
Operating Expenses | Operating expenses for the years ended December 31 consist of the following: 2018 2017 Employee expenses (1) $ 3,707 $ 3,672 Premises and equipment 268 263 Capital asset depreciation 107 97 Service fees 870 799 Amortization of intangible assets (Note 9) 119 112 Other expenses (2) 1,361 1,467 Total operating expenses $ 6,432 $ 6,410 (1) See table below for further details. (2) Includes restructuring costs of $60 recorded in 2017 for the Company's plan to enhance business processes and organizational structures and capabilities. |
Employee Expenses | Employee expenses for the years ended December 31 consist of the following: 2018 2017 Salaries, bonus, employee benefits $ 3,322 $ 3,155 Share-based payments (Note 19) 346 476 Other personnel costs 39 41 Total employee expenses $ 3,707 $ 3,672 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share-Based Payment Arrangements [Abstract] | |
Schedule of Increase in Liabilities | 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, 2018 2017 Compensation expense $ 248 $ 341 Income tax expense (benefit) $ (49 ) $ (85 ) 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, 2018 2017 Compensation expense $ 87 $ 125 Income tax expense (benefit) $ (21 ) $ (32 ) |
Schedule of activity in stock option plans | The activities in the stock option plans for the years ended December 31 are as follows: 2018 2017 Number of stock options (thousands) Weighted average exercise price Number of stock options (thousands) Weighted average exercise price Balance, January 1, 3,008 $ 33.88 3,397 $ 34.19 Granted 517 $ 53.96 369 $ 48.20 Exercised (399 ) $ 34.57 (437 ) $ 34.70 Forfeited (25 ) $ 43.79 (4 ) $ 47.96 Expired — $ — (317 ) $ 52.54 Balance, December 31, 3,101 $ 37.06 3,008 $ 33.88 Exercisable, December 31, 2,041 $ 30.97 2,071 $ 29.76 |
Schedule of stock options outstanding | The stock options outstanding as at December 31, 2018 , 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 $18.00 to $24.00 624 2.63 $ 21.28 $24.01 to $30.00 350 3.74 $ 27.79 $30.01 to $35.00 308 1.82 $ 31.11 $35.01 to $45.00 949 6.23 $ 39.45 $45.01 to $53.96 870 8.75 $ 51.62 Total stock options 3,101 5.49 $ 37.06 |
Disclosure of range of exercise prices of outstanding share options [text block] | The stock options outstanding as at December 31, 2018 , 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 $18.00 to $24.00 624 2.63 $ 21.28 $24.01 to $30.00 350 3.74 $ 27.79 $30.01 to $35.00 308 1.82 $ 31.11 $35.01 to $45.00 949 6.23 $ 39.45 $45.01 to $53.96 870 8.75 $ 51.62 Total stock options 3,101 5.49 $ 37.06 |
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 2018 2017 Risk-free interest rate 2.2 % 1.3 % Expected volatility 21.3 % 31.7 % Expected dividend yield 4 % 4 % Expected life of the option (in years) 6.3 6.3 Exercise price $ 53.96 $ 48.20 |
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, 2018 5,967 854 6,821 Units outstanding December 31, 2017 6,507 1,040 7,547 Liability accrued as at December 31, 2018 $ 200 $ 35 $ 235 Liability accrued as at December 31, 2017 $ 250 $ 50 $ 300 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes [Abstract] | |
Deferred Tax Assets and Liabilities | The following represents the deferred tax assets and liabilities in the Consolidated Statements of Financial Position by source of temporary differences: As at December 31, 2018 2017 Assets (1) Liabilities (1) Assets (1) Liabilities (1) Investments $ (738 ) $ 8 $ (841 ) $ 116 Policy liabilities (2) 1,116 379 1,218 322 Deferred acquisition costs 95 (1 ) 84 7 Losses available for carry forward 600 (48 ) 543 (6 ) Pension and other employee benefits 183 (136 ) 201 (150 ) Other (3) (47 ) 120 90 114 Total $ 1,209 $ 322 $ 1,295 $ 403 Total net deferred tax asset $ 887 $ 892 (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. Negative amounts reported under Assets are deferred tax liabilities included in a net deferred tax asset position; negative amounts under Liabilities are deferred tax assets included in a net deferred tax liability position. (2) Consists of Insurance contract liabilities and Investment contract liabilities net of Reinsurance assets. (3) Includes unused tax credits. The movement in net deferred tax assets for the years ended December 31, are as follows: Investments Policy liabilities (1) Deferred acquisition costs Losses available for carry forward Pension and other employee benefits Other (2) Total As at December 31, 2017 $ (957 ) $ 896 $ 77 $ 549 $ 351 $ (24 ) $ 892 Charged to statement of operations 195 (170 ) 6 107 (26 ) (149 ) (37 ) Charged to other comprehensive income 45 — — (13 ) (17 ) 9 24 Charged to equity, other than other comprehensive income — — 6 — — 3 9 Foreign exchange rate movements (29 ) 11 7 5 11 (6 ) (1 ) As at December 31, 2018 $ (746 ) $ 737 $ 96 $ 648 $ 319 $ (167 ) $ 887 (1) Consists of Insurance contract liabilities and Investment contract liabilities net of Reinsurance assets. (2) Includes unused tax credits. Investments Policy liabilities (1) Deferred acquisition costs Losses available for carry forward Pension and other employee benefits Other (2) Total As at December 31, 2016 $ (1,064 ) $ 517 $ 171 $ 513 $ 410 $ 214 $ 761 Acquisitions (disposals) through business combinations — — — — — (10 ) (10 ) Charged to statement of operations 132 388 (74 ) 43 (66 ) (209 ) 214 Charged to other comprehensive income (73 ) — — (9 ) 22 (4 ) (64 ) Foreign exchange rate movements 48 (9 ) (20 ) 2 (15 ) (15 ) (9 ) As at December 31, 2017 $ (957 ) $ 896 $ 77 $ 549 $ 351 $ (24 ) $ 892 (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: 2018 2017 Current income tax expense (benefit): Current year $ 561 $ 445 Adjustments in respect of prior years, including resolution of tax disputes (1 ) 25 Tax rate and other legislative changes — 46 Total current income tax expense (benefit) 560 516 Deferred income tax expense (benefit): Origination and reversal of temporary differences 42 (151 ) Tax expense (benefit) arising from unrecognized tax losses 4 — Adjustments in respect of prior years, including resolution of tax disputes (9 ) (10 ) Tax rate and other legislative changes — (53 ) Total deferred income tax expense (benefit) 37 (214 ) Total income tax expense (benefit) $ 597 $ 302 |
Disclosure Of Income Tax Relating To Components Of Other Comprehensive Income And Equity | Income tax benefit (expense) recognized directly in equity for the years ended December 31: 2018 2017 Recognized in other comprehensive income: Current income tax benefit (expense) $ (4 ) $ 2 Deferred income tax benefit (expense) 24 (64 ) Total recognized in other comprehensive income 20 (62 ) Recognized in equity, other than other comprehensive income: Deferred income tax benefit (expense) 9 — Total income tax benefit (expense) recorded in equity, including tax benefit (expense) recorded in other comprehensive income $ 29 $ (62 ) |
Schedule Of Effective Income Tax Rate Differences Reconciliation | 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, 2018 2017 % % Total net income (loss) $ 2,914 $ 2,487 Add: Income tax expense (benefit) 597 302 Total net income (loss) before income taxes $ 3,511 $ 2,789 Taxes at the combined Canadian federal and provincial statutory income tax rate $ 939 26.8 $ 746 26.8 Increase (decrease) in rate resulting from: Higher (lower) effective rates on income subject to taxation in foreign jurisdictions (222 ) (6.3 ) (257 ) (9.2 ) Tax exempt investment income (131 ) (3.8 ) (213 ) (7.6 ) Tax (benefit) cost of unrecognized tax losses and tax credits 4 0.1 — — Tax rate and other legislative changes — — (7 ) (0.3 ) Adjustments in respect of prior years, including resolution of tax disputes (10 ) (0.3 ) 15 0.5 Other 17 0.5 18 0.6 Total tax expense (benefit) and effective income tax rate $ 597 17.0 $ 302 10.8 |
Capital Management (Tables)
Capital Management (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 was prescribed by OSFI, to the total capital figure presented in the table below: As at December 31, 2018 2017 Subordinated debt $ 3,039 $ 3,437 Innovative capital instruments (1) 699 699 Equity: Participating policyholders' equity 864 650 Preferred shareholders' equity 2,257 2,257 Common shareholders' equity 21,449 20,064 Total capital $ 28,308 $ 27,107 (1) Innovative capital instruments are SLEECS issued by the SL Capital Trusts (Note 13). The SL Capital Trusts are not consolidated by us. |
Segregated Funds (Tables)
Segregated Funds (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Separate Accounts Disclosure 1 [Abstract] | |
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, 2018 and 2017 : Type of fund % Money market 1 to 5 Fixed income 10 to 15 Balanced 40 to 45 Equity 40 to 45 |
Carrying Value of Investments Held for Segregated Fund Holders | The carrying value of investments held for segregated fund holders are as follows: As at December 31, 2018 2017 Segregated and mutual fund units $ 89,049 $ 91,637 Equity securities 9,771 10,799 Debt securities 3,448 3,517 Cash, cash equivalents and short-term securities 711 457 Investment properties 400 374 Mortgages 23 20 Other assets 156 147 Total assets $ 103,558 $ 106,951 Less: Liabilities arising from investing activities $ 496 $ 559 Total investments for account of segregated fund holders $ 103,062 $ 106,392 |
Changes in Insurance Contracts and Investment Contracts for Account of Segregated Fund Holders | Changes in insurance contracts and investment contracts for account of segregated fund holders are as follows: Insurance contracts Investment contracts For the years ended December 31, 2018 2017 2018 2017 Balance as at January 1 $ 99,121 $ 90,388 $ 7,271 $ 6,779 Additions to segregated funds: Deposits 11,468 10,772 85 86 Net transfer (to) from general funds (308 ) (119 ) — — Net realized and unrealized gains (losses) (7,123 ) 4,141 (658 ) 883 Other investment income 4,576 4,853 178 152 Total additions $ 8,613 $ 19,647 $ (395 ) $ 1,121 Deductions from segregated funds: Payments to policyholders and their beneficiaries 10,224 9,439 614 643 Management fees 1,004 963 57 57 Taxes and other expenses 256 267 — 12 Foreign exchange rate movements (413 ) 245 (194 ) (83 ) Total deductions $ 11,071 $ 10,914 $ 477 $ 629 Net additions (deductions) $ (2,458 ) $ 8,733 $ (872 ) $ 492 Acquisitions $ — $ — $ — $ — Balance as at December 31 $ 96,663 $ 99,121 $ 6,399 $ 7,271 |
Commitments, Guarantees and C_2
Commitments, Guarantees and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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): Results for the years ended SLF Inc. (unconsolidated) Sun Life Assurance (consolidated) Other subsidiaries of SLF Inc. (combined) Consolidation adjustment SLF Inc. (consolidated) December 31, 2018 Revenue $ 361 $ 22,619 $ 4,453 $ (436 ) $ 26,997 Shareholders' net income (loss) $ 2,616 $ 2,036 $ 382 $ (2,418 ) $ 2,616 December 31, 2017 Revenue $ 441 $ 23,421 $ 7,022 $ (1,550 ) $ 29,334 Shareholders' net income (loss) $ 2,242 $ 1,577 $ 427 $ (2,004 ) $ 2,242 Assets and liabilities as at SLF Inc. (unconsolidated) Sun Life Assurance (consolidated) Other subsidiaries of SLF Inc. (combined) Consolidation adjustment SLF Inc. (consolidated) December 31, 2018 Invested assets $ 24,255 $ 143,040 $ 6,991 $ (22,560 ) $ 151,726 Total other general fund assets $ 4,088 $ 21,958 $ 10,389 $ (19,396 ) $ 17,039 Investments for account of segregated fund holders $ — $ 103,014 $ 48 $ — $ 103,062 Insurance contract liabilities $ — $ 122,066 $ 8,534 $ (8,677 ) $ 121,923 Investment contract liabilities $ — $ 3,164 $ — $ — $ 3,164 Total other general fund liabilities $ 4,636 $ 21,801 $ 5,972 $ (13,301 ) $ 19,108 December 31, 2017 Invested assets $ 23,382 $ 138,145 $ 6,531 $ (21,919 ) $ 146,139 Total other general fund assets $ 7,530 $ 21,437 $ 17,152 $ (29,538 ) $ 16,581 Investments for account of segregated fund holders $ — $ 106,341 $ 51 $ — $ 106,392 Insurance contract liabilities $ — $ 118,003 $ 8,234 $ (8,452 ) $ 117,785 Investment contract liabilities $ — $ 3,082 $ — $ — $ 3,082 Total other general fund liabilities $ 8,591 $ 21,558 $ 12,822 $ (24,089 ) $ 18,882 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 Executive team Directors Executive team Directors Number of individuals 12 10 11 10 Base salary and annual incentive compensation $ 18 $ — $ 18 $ — Additional short-term benefits and other $ 3 $ 1 $ 1 $ 1 Share-based long-term incentive compensation $ 24 $ 2 $ 18 $ 2 Value of pension and post-retirement benefits $ 2 $ — $ 3 $ — |
Pension Plans and Other Post-_2
Pension Plans and Other Post-Retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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: 2018 2017 Pension Other post-retirement Total Pension Other post-retirement Total Change in defined benefit obligations: Defined benefit obligation, January 1 $ 3,661 $ 268 $ 3,929 $ 3,545 $ 262 $ 3,807 Current service cost 54 5 59 47 3 50 Interest cost 118 9 127 122 10 132 Actuarial losses (gains) (253 ) (11 ) (264 ) 209 9 218 Benefits paid (180 ) (15 ) (195 ) (159 ) (11 ) (170 ) Settlement losses (gains) (1) — — — (86 ) — (86 ) Plan amendments (1 ) — (1 ) (2 ) — (2 ) Foreign exchange rate movement 59 6 65 (15 ) (5 ) (20 ) Defined benefit obligation, December 31 $ 3,458 $ 262 $ 3,720 $ 3,661 $ 268 $ 3,929 Change in plan assets: Fair value of plan assets, January 1 $ 3,301 $ — $ 3,301 $ 3,243 $ — $ 3,243 Administrative expense (1 ) — (1 ) — — — Interest income on plan assets 105 — 105 110 — 110 Return on plan assets (excluding amounts included in net interest expense) (156 ) — (156 ) 116 — 116 Employer contributions 127 15 142 80 11 91 Benefits paid (180 ) (15 ) (195 ) (159 ) (11 ) (170 ) Settlement losses (gains) (1) — — — (80 ) — (80 ) Foreign exchange rate movement 57 — 57 (9 ) — (9 ) Fair value of plan assets, December 31 $ 3,253 $ — $ 3,253 $ 3,301 $ — $ 3,301 Amounts recognized on Statement of Financial Position: Fair value of plan assets $ 3,253 $ — $ 3,253 $ 3,301 $ — $ 3,301 Defined benefit (obligation) (3,458 ) (262 ) (3,720 ) (3,661 ) (268 ) (3,929 ) Net recognized (liability) asset, December 31 $ (205 ) $ (262 ) $ (467 ) $ (360 ) $ (268 ) $ (628 ) |
Schedule of Net Benefit Expense | Components of net benefit expense recognized: Current service cost $ 54 $ 5 $ 59 $ 47 $ 3 $ 50 Administrative expense 1 — 1 — — — Net interest expense (income) 13 9 22 12 10 22 Settlement losses (gains) (1) — — — (6 ) — (6 ) Plan amendments (1 ) — (1 ) (2 ) — (2 ) Other long-term employee benefit losses (gains) — (3 ) (3 ) — 4 4 Net benefit expense $ 67 $ 11 $ 78 $ 51 $ 17 $ 68 |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Remeasurement of net recognized (liability) asset: Return on plan assets (excluding amounts included in net interest expense) $ (156 ) $ — $ (156 ) $ 116 $ — $ 116 Actuarial gains (losses) arising from changes in demographic assumptions 7 (2 ) 5 2 1 3 Actuarial gains (losses) arising from changes in financial assumptions 241 8 249 (161 ) (11 ) (172 ) Actuarial gains (losses) arising from experience adjustments 5 2 7 (50 ) 5 (45 ) Foreign exchange rate movement (2 ) (2 ) (4 ) 6 1 7 Components of defined benefit costs recognized in Other comprehensive income (loss) $ 95 $ 6 $ 101 $ (87 ) $ (4 ) $ (91 ) (1) In 2017, the Company terminated and completely settled the defined benefit pension plan of a U.S. subsidiary within the SLF Asset Management segment. |
Schedule of Assumptions Used | 2018 2017 Canada % U.K. % U.S. % Canada % U.K. % U.S. % To determine defined benefit obligation at end of year: Discount rate for pension plans 3.60 2.85 4.40 3.40 2.30 3.70 Rate of compensation increase 3.00 n/a n/a 3.10 n/a n/a Pension increases 0.00-0.15 3.15 n/a 0.00-0.15 3.50 n/a To determine net benefit expense for year: Discount rate for pension plans 3.40 2.30 3.70 3.70 2.55 4.25 Rate of compensation increase 3.10 n/a n/a 3.00 n/a n/a Pension increases 0.00-0.15 3.50 n/a 0.00-0.15 3.55 n/a Health care trend rates: Initial health care trend rate 5.42 n/a 6.50 5.47 n/a 6.50 Ultimate health care trend rate 4.50 n/a 5.00 4.50 n/a 5.00 Year ultimate health care trend rate reached 2030 n/a 2023 2030 n/a 2023 2018 2017 Canada U.K. U.S. Canada U.K. U.S. Mortality rates: Life expectancy (in years) for individuals currently at age 65: Male 23 24 23 22 24 23 Female 25 25 24 25 26 24 Life expectancy (in years) at 65 for individuals currently at age 45: Male 24 25 24 24 26 24 Female 26 28 26 25 29 26 Average duration (in years) of pension obligation 17.3 16.9 12.2 17.1 19.0 13.3 |
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 benefits Interest/discount rate sensitivity (1) : 1% decrease $ 644 $ 33 1% increase $ (500 ) $ (28 ) Rate of compensation increase assumption: 1% decrease $ (75 ) n/a 1% increase $ 78 n/a Health care trend rate assumption: 1% decrease n/a $ (13 ) 1% increase n/a $ 15 Mortality rates (2) : 10% decrease $ 89 $ 6 (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: 2018 2017 Equity investments 3 % 3 % Fixed income investments 76 % 86 % Real estate investments 8 % 7 % Qualifying insurance contract 9 % — Other 4 % 4 % Total composition of fair value of plan assets 100 % 100 % |
Schedule of Expected Contributions and Expected Future 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 $ 118 $ 16 $ 134 Expected Future Benefit Payments 2019 2020 2021 2022 2023 2024 to 2028 Pension $ 160 $ 168 $ 175 $ 183 $ 190 $ 1,022 Post-retirement 16 16 16 17 17 92 Total $ 176 $ 184 $ 191 $ 200 $ 207 $ 1,114 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 Common shareholders' net income (loss) for basic earnings per share $ 2,522 $ 2,149 Add: increase in income due to convertible instruments (1) 10 10 Common shareholders' net income (loss) on a diluted basis $ 2,532 $ 2,159 Weighted average number of common shares outstanding for basic earnings per share (in millions) 606 613 Add: dilutive impact of stock options (2) (in millions) 1 1 Add: dilutive impact of convertible instruments (1) (in millions) 4 4 Weighted average number of common shares outstanding on a diluted basis (in millions) 611 618 Basic earnings (loss) per share $ 4.16 $ 3.51 Diluted earnings (loss) per share $ 4.14 $ 3.49 (1) The convertible instruments are the SLEECS B issued by Sun Life Capital Trust. (2) Excludes the impact of 1 million stock options for the year ended December 31, 2018 ($ nil for the year ended December 31, 2017) because these stock options were antidilutive for the period. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) and Non-Controlling Interests (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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: 2018 2017 For the years ended December 31, Balance, beginning of period Other comprehensive income (loss) Balance, end of period Balance, beginning of period Other comprehensive income (loss) Other Balance, Items that may be reclassified subsequently to income: Unrealized foreign currency translation gains (losses), net of hedging activities $ 1,012 $ 911 $ 1,923 $ 1,749 $ (737 ) $ — $ 1,012 Unrealized gains (losses) on available-for-sale assets 346 (402 ) (56 ) 211 135 — 346 Unrealized gains (losses) on cash flow hedges (11 ) (10 ) (21 ) (6 ) (5 ) — (11 ) Share of other comprehensive income (loss) in joint ventures and associates (31 ) 7 (24 ) — (31 ) — (31 ) Items that will not be reclassified subsequently to income: Remeasurement of defined benefit plans (347 ) 84 (263 ) (291 ) (69 ) 13 (1 ) (347 ) Revaluation surplus on transfers to investment properties 145 — 145 6 139 — 145 Total $ 1,114 $ 590 $ 1,704 $ 1,669 $ (568 ) $ 13 $ 1,114 Total attributable to: Participating policyholders $ 9 $ 5 $ 14 $ 16 $ (7 ) $ — $ 9 Shareholders 1,105 585 1,690 1,653 (561 ) 13 1,105 Total $ 1,114 $ 590 $ 1,704 $ 1,669 $ (568 ) $ 13 $ 1,114 (1) During 2017, the Company transferred cumulative remeasurement losses of $13 from accumulated other comprehensive income (loss) to retained earnings as a result of the termination and complete settlement of the defined benefit pension plan of a U.S. subsidiary within the SLF Asset Management segment. |
Significant Accounting Polici_4
Significant Accounting Policies - Narrative (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Intangible asset useful life | 40 years |
Owner-occupied properties | Bottom of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property useful life | 25 years |
Owner-occupied properties | Top of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property useful life | 49 years |
Furniture, computers, and other office equipment, and leasehold improvements | Bottom of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property useful life | 2 years |
Furniture, computers, and other office equipment, and leasehold improvements | Top of range | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Property useful life | 20 years |
Changes in Accounting Policie_2
Changes in Accounting Policies - Amendment to IFRS 4 (Details) - CAD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of initial application of standards or interpretations [line items] | ||
Financial assets | $ 143,061 | $ 137,691 |
SPPI | Debt securities | IFRS 4 | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Financial assets | 12,900 | |
SPPI | Mortgages and loans, not supporting insurance contract liabilities | IFRS 4 | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Financial assets | 4,400 | |
SPPI | Mortgages and loans, supporting insurance contract liabilities | IFRS 4 | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Financial assets | 43,800 | |
Non-SPPI | Debt securities | IFRS 4 | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Financial assets | 100 | |
Non-SPPI | Mortgages and loans, not supporting insurance contract liabilities | IFRS 4 | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Financial assets | 200 | |
Non-SPPI | Mortgages and loans, supporting insurance contract liabilities | IFRS 4 | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Financial assets | 0 | |
Debt securities | Credit risk | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Financial assets | 74,443 | 72,619 |
Debt securities | Available-for-sale | Credit risk | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Financial assets | 13,041 | 12,652 |
Debt securities | Available-for-sale | Credit risk | Below Investment Grade | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Financial assets | 100 | |
Mortgages and loans | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Financial assets | 46,822 | $ 42,805 |
Mortgages and loans | Available-for-sale | Credit risk | Below Investment Grade | ||
Disclosure of initial application of standards or interpretations [line items] | ||
Financial assets | $ 2,100 |
Changes in Accounting Policie_3
Changes in Accounting Policies - Narrative (Details) - CAD ($) $ in Millions | Jan. 01, 2019 | Jan. 01, 2018 |
IFRS 15 | Restatement Adjustment | ||
Disclosure of voluntary change in accounting policy [line items] | ||
Reduction to retained earnings | $ 44 | |
Subsequent Event | Scenario, Forecast | IFRS 16 | ||
Disclosure of voluntary change in accounting policy [line items] | ||
Right-of-use assets | $ 800 | |
Lease liabilities | $ 900 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - CAD ($) $ in Millions | Dec. 19, 2018 | Oct. 03, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about business combination [line items] | ||||
Goodwill | $ 5,412 | $ 5,183 | ||
Intangible asset useful life | 40 years | |||
GreenOak | ||||
Disclosure of detailed information about business combination [line items] | ||||
Business Combination, Rights To Entity Earnings, Term | 8 years 6 months | |||
Company's right to percent of earnings following business combination | 90.00% | |||
Percentage of voting shares of certain legal entities acquired | 56.00% | |||
FWD | ||||
Disclosure of detailed information about business combination [line items] | ||||
Fair value of consideration transferred | $ 105 | |||
Cash transferred | 92 | |||
Liabilities incurred | $ 13 | |||
Distribution agreement term | 15 years | |||
Intangible assets | $ 61 | |||
Goodwill | 16 | |||
Deferred tax liabilities recognised as of acquisition date | 10 | |||
Fair value of net identifiable assets acquired | $ 89 | |||
Client Relationships | FWD | ||||
Disclosure of detailed information about business combination [line items] | ||||
Intangible asset useful life | 30 years | |||
Distribution Intangible Assets | FWD | ||||
Disclosure of detailed information about business combination [line items] | ||||
Intangible asset useful life | 15 years |
Segmented Information - Narrati
Segmented Information - Narrative (Details) $ in Millions | Dec. 31, 2018CAD ($)segment | Mar. 31, 2018CAD ($) | Dec. 31, 2017CAD ($) |
Disclosure of operating segments [line items] | |||
Insurance contract liabilities | $ 121,923 | $ 117,785 | |
Number of operating segments | segment | 5 | ||
SLF U.S. | |||
Disclosure of operating segments [line items] | |||
Insurance contract liabilities | $ 26,186 | 24,410 | |
SLF Asia | |||
Disclosure of operating segments [line items] | |||
Insurance contract liabilities | 21,525 | 20,257 | |
Individual non-participating life and health | |||
Disclosure of operating segments [line items] | |||
Insurance contract liabilities | 37,528 | 35,028 | |
Individual non-participating life and health | SLF U.S. | |||
Disclosure of operating segments [line items] | |||
Insurance contract liabilities | 13,239 | $ (10,000) | 12,024 |
Individual non-participating life and health | SLF Asia | |||
Disclosure of operating segments [line items] | |||
Insurance contract liabilities | $ 12,463 | $ 0 | $ 11,449 |
Segmented Information - Operati
Segmented Information - Operating Results by Segment (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of operating segments [line items] | ||
Gross premiums: | $ 20,981 | $ 19,838 |
Less: ceded premiums | 2,339 | 4,557 |
Interest income on plan assets | 2,389 | 8,211 |
Fee income | 5,966 | 5,842 |
Total revenue | 26,997 | 29,334 |
Total benefits and expenses | 23,486 | 26,545 |
Income tax expense (benefit) | 597 | 302 |
Total net income (loss) | 2,914 | 2,487 |
Less: Net income (loss) attributable to participating policyholders (Note 21) | 298 | 245 |
Shareholders' net income (loss) | 2,616 | 2,242 |
Consolidation adjustments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 0 | 0 |
Less: ceded premiums | 0 | 0 |
Interest income on plan assets | (26) | (79) |
Fee income | (126) | (72) |
Total revenue | (152) | (151) |
Total benefits and expenses | (152) | (151) |
Income tax expense (benefit) | 0 | 0 |
Total net income (loss) | 0 | 0 |
Less: Net income (loss) attributable to participating policyholders (Note 21) | 0 | 0 |
Shareholders' net income (loss) | 0 | 0 |
Annuities | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 3,183 | 2,488 |
Annuities | Consolidation adjustments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 0 | 0 |
Life insurance | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 8,677 | 8,831 |
Life insurance | Consolidation adjustments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 0 | 0 |
Health insurance | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 9,121 | 8,519 |
Health insurance | Consolidation adjustments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 0 | 0 |
SLF Canada | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 13,373 | |
Less: ceded premiums | 1,487 | 3,871 |
Interest income on plan assets | 1,942 | 4,133 |
Fee income | 1,240 | 1,132 |
Total revenue | 15,068 | 13,267 |
Total benefits and expenses | 13,497 | 11,894 |
Income tax expense (benefit) | 308 | 197 |
Total net income (loss) | 1,263 | 1,176 |
Less: Net income (loss) attributable to participating policyholders (Note 21) | 321 | 213 |
Shareholders' net income (loss) | 942 | 963 |
SLF Canada | Annuities | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 3,261 | 2,464 |
SLF Canada | Life insurance | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 4,796 | 4,493 |
SLF Canada | Health insurance | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 5,316 | 4,916 |
SLF U.S.(1) | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 5,400 | 5,306 |
Less: ceded premiums | 597 | 436 |
Interest income on plan assets | 305 | 1,864 |
Fee income | 73 | 103 |
Total revenue | 5,181 | 6,837 |
Total benefits and expenses | 5,183 | 7,369 |
Income tax expense (benefit) | (19) | (392) |
Total net income (loss) | 17 | (140) |
Less: Net income (loss) attributable to participating policyholders (Note 21) | (35) | 4 |
Shareholders' net income (loss) | 52 | (144) |
SLF U.S.(1) | Annuities | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 0 | 0 |
SLF U.S.(1) | Life insurance | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 1,633 | 1,736 |
SLF U.S.(1) | Health insurance | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 3,767 | 3,570 |
SLF Asset Management | ||
Disclosure of operating segments [line items] | ||
Total revenue | 4,124 | 4,082 |
SLF Asset Management | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 0 | 0 |
Less: ceded premiums | 0 | 0 |
Interest income on plan assets | 13 | 45 |
Fee income | 4,111 | 4,037 |
Total revenue | 4,124 | 4,082 |
Total benefits and expenses | 2,930 | 2,976 |
Income tax expense (benefit) | 284 | 453 |
Total net income (loss) | 910 | 653 |
Less: Net income (loss) attributable to participating policyholders (Note 21) | 0 | 0 |
Shareholders' net income (loss) | 910 | 653 |
SLF Asset Management | Annuities | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 0 | 0 |
SLF Asset Management | Life insurance | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 0 | 0 |
SLF Asset Management | Health insurance | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 0 | 0 |
SLF Asia(1) | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 2,179 | 2,527 |
Less: ceded premiums | 232 | 226 |
Interest income on plan assets | 76 | 1,722 |
Fee income | 514 | 524 |
Total revenue | 2,537 | 4,547 |
Total benefits and expenses | 1,919 | 3,679 |
Income tax expense (benefit) | 51 | 62 |
Total net income (loss) | 567 | 806 |
Less: Net income (loss) attributable to participating policyholders (Note 21) | 12 | 28 |
Shareholders' net income (loss) | 555 | 778 |
SLF Asia(1) | Annuities | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 1 | 0 |
SLF Asia(1) | Life insurance | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 2,154 | 2,508 |
SLF Asia(1) | Health insurance | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 24 | 19 |
Corporate | ||
Disclosure of operating segments [line items] | ||
Total revenue | 239 | 752 |
Corporate | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 29 | 132 |
Less: ceded premiums | 23 | 24 |
Interest income on plan assets | 79 | 526 |
Fee income | 154 | 118 |
Total revenue | 239 | 752 |
Total benefits and expenses | 109 | 778 |
Income tax expense (benefit) | (27) | (18) |
Total net income (loss) | 157 | (8) |
Less: Net income (loss) attributable to participating policyholders (Note 21) | 0 | 0 |
Shareholders' net income (loss) | 157 | (8) |
Corporate | Annuities | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | (79) | 24 |
Corporate | Life insurance | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | 94 | 94 |
Corporate | Health insurance | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Gross premiums: | $ 14 | $ 14 |
Segmented Information - Assets
Segmented Information - Assets and Liabilities by Segment (Details) - CAD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of operating segments [line items] | ||
Total general fund assets | $ 168,765 | $ 162,720 |
Investments for account of segregated fund holders | 103,062 | 106,392 |
Total general fund liabilities | 144,195 | 139,749 |
Consolidation adjustments | ||
Disclosure of operating segments [line items] | ||
Total general fund assets | (191) | |
Investments for account of segregated fund holders | 0 | 0 |
Total general fund liabilities | (217) | (191) |
SLF Canada | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Total general fund assets | 86,697 | 84,698 |
Investments for account of segregated fund holders | 85,885 | 87,817 |
Total general fund liabilities | 78,946 | 76,683 |
SLF U.S. | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Total general fund assets | 34,584 | 32,259 |
Investments for account of segregated fund holders | 491 | 488 |
Total general fund liabilities | 30,671 | 28,791 |
SLF Asset Management | ||
Disclosure of operating segments [line items] | ||
Total general fund assets | 4,468 | 4,115 |
Investments for account of segregated fund holders | 0 | 0 |
SLF Asset Management | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Total general fund assets | 4,468 | 4,115 |
Investments for account of segregated fund holders | 0 | 0 |
Total general fund liabilities | 2,396 | 2,346 |
SLF Asia | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Total general fund assets | 28,855 | 27,234 |
Investments for account of segregated fund holders | 6,173 | 6,101 |
Total general fund liabilities | 23,692 | 21,748 |
Corporate | ||
Disclosure of operating segments [line items] | ||
Total general fund assets | 14,378 | 14,605 |
Investments for account of segregated fund holders | 10,513 | 11,986 |
Corporate | Reportable segments | ||
Disclosure of operating segments [line items] | ||
Total general fund assets | 14,378 | 14,605 |
Investments for account of segregated fund holders | 10,513 | 11,986 |
Total general fund liabilities | $ 8,707 | $ 10,372 |
Segmented Information - Segment
Segmented Information - Segment Results by Geographical Area (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of operating segments [line items] | ||
Revenue | $ 26,997 | $ 29,334 |
SLF Asset Management | ||
Disclosure of operating segments [line items] | ||
Revenue | 4,124 | 4,082 |
SLF Asset Management | United States | ||
Disclosure of operating segments [line items] | ||
Revenue | 3,945 | 3,961 |
SLF Asset Management | United Kingdom | ||
Disclosure of operating segments [line items] | ||
Revenue | 0 | 0 |
SLF Asset Management | Canada | ||
Disclosure of operating segments [line items] | ||
Revenue | 179 | 121 |
SLF Asset Management | Other countries | ||
Disclosure of operating segments [line items] | ||
Revenue | 0 | 0 |
Corporate | ||
Disclosure of operating segments [line items] | ||
Revenue | 239 | 752 |
Corporate | United States | ||
Disclosure of operating segments [line items] | ||
Revenue | 58 | 147 |
Corporate | United Kingdom | ||
Disclosure of operating segments [line items] | ||
Revenue | 142 | 577 |
Corporate | Canada | ||
Disclosure of operating segments [line items] | ||
Revenue | 38 | 20 |
Corporate | Other countries | ||
Disclosure of operating segments [line items] | ||
Revenue | $ 1 | $ 8 |
Segmented Information - Segme_2
Segmented Information - Segment Assets and Liabilities by Geographical Area (Details) - CAD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of operating segments [line items] | ||
Total general fund assets | $ 168,765 | $ 162,720 |
Investments for account of segregated fund holders | 103,062 | 106,392 |
SLF Asset Management | ||
Disclosure of operating segments [line items] | ||
Total general fund assets | 4,468 | 4,115 |
Investments for account of segregated fund holders | 0 | 0 |
SLF Asset Management | United States | ||
Disclosure of operating segments [line items] | ||
Total general fund assets | 4,147 | 3,750 |
SLF Asset Management | United Kingdom | ||
Disclosure of operating segments [line items] | ||
Total general fund assets | 0 | 0 |
Investments for account of segregated fund holders | 0 | 0 |
SLF Asset Management | Canada | ||
Disclosure of operating segments [line items] | ||
Total general fund assets | 321 | 365 |
SLF Asset Management | Other countries | ||
Disclosure of operating segments [line items] | ||
Total general fund assets | 0 | 0 |
Corporate | ||
Disclosure of operating segments [line items] | ||
Total general fund assets | 14,378 | 14,605 |
Investments for account of segregated fund holders | 10,513 | 11,986 |
Corporate | United States | ||
Disclosure of operating segments [line items] | ||
Total general fund assets | 2,550 | 1,984 |
Corporate | United Kingdom | ||
Disclosure of operating segments [line items] | ||
Total general fund assets | 8,274 | 8,744 |
Investments for account of segregated fund holders | 10,513 | 11,986 |
Corporate | Canada | ||
Disclosure of operating segments [line items] | ||
Total general fund assets | 3,384 | 3,723 |
Corporate | Other countries | ||
Disclosure of operating segments [line items] | ||
Total general fund assets | $ 170 | $ 154 |
Total Invested Assets and Rel_3
Total Invested Assets and Related Net Investment Income - Carrying Value and Fair Value of Financial Assets (Details) - CAD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of fair value measurement of assets [line items] | ||
Financial assets | $ 143,061 | $ 137,691 |
Financial assets, at fair value | 144,673 | 140,292 |
Invested assets | 151,726 | 146,139 |
Investment properties | 7,157 | 7,067 |
Other invested assets - non-financial assets | 1,508 | 1,381 |
Cash, cash equivalents and short-term securities | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets | 9,506 | 8,890 |
Financial assets, at fair value | 9,506 | 8,890 |
Debt securities | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets | 74,443 | 72,619 |
Debt securities | Fair value through profit or loss | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets | 61,402 | 59,967 |
Financial assets, at fair value | 61,402 | 59,967 |
Debt securities | Available-for-sale | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets | 13,041 | 12,652 |
Financial assets, at fair value | 13,041 | 12,652 |
Equity securities | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets | 4,634 | 6,020 |
Equity securities | Fair value through profit or loss | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets | 4,014 | 5,078 |
Financial assets, at fair value | 4,014 | 5,078 |
Equity securities | Available-for-sale | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets | 620 | 942 |
Financial assets, at fair value | 620 | 942 |
Mortgages and loans | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets | 46,822 | 42,805 |
Financial assets, at fair value | 48,434 | 45,406 |
Derivative assets | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets | 1,112 | 1,478 |
Financial assets, at fair value | 1,112 | 1,478 |
Other invested assets | Fair value through profit or loss | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets | 2,701 | 2,211 |
Financial assets, at fair value | 2,701 | 2,211 |
Other invested assets | Available-for-sale | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets | 621 | 562 |
Financial assets, at fair value | 621 | 562 |
Policy loans | ||
Disclosure of fair value measurement of assets [line items] | ||
Financial assets | 3,222 | 3,106 |
Financial assets, at fair value | $ 3,222 | $ 3,106 |
Total Invested Assets and Rel_4
Total Invested Assets and Related Net Investment Income - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2019CAD ($) | Dec. 31, 2018CAD ($)square_foot$ / square_foot | Dec. 31, 2017CAD ($) | |
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Derivative liabilities | $ 2,295,000,000 | $ 1,756,000,000 | |
Net ineffectiveness on fair value hedges | 1,000,000 | 3,000,000 | |
Financial assets | $ 143,061,000,000 | $ 137,691,000,000 | |
Repurchase agreement interest rate | 1.92% | 1.25% | |
Financial assets, at fair value | $ 144,673,000,000 | $ 140,292,000,000 | |
Carrying value of securities lent | 1,824,000,000 | 1,976,000,000 | |
Mortgages and loans | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 46,822,000,000 | 42,805,000,000 | |
Financial assets, at fair value | 48,434,000,000 | 45,406,000,000 | |
Asset-backed securities | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | $ 7,366,000,000 | 5,899,000,000 | |
Mortgages | Level 3 | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Risk-adjusted spreads | 20 years | ||
Asset-Backed Securities In Principal Reinvestment Account | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | $ 124,000,000 | 75,000,000 | |
Financial assets | Level 3 | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 7,704,000,000 | 6,805,000,000 | |
Securitized mortgages | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 1,328,000,000 | 1,283,000,000 | |
Financial assets, at fair value | 1,318,000,000 | 1,267,000,000 | |
Cash And Cash Equivalents In Principal Reinvestment Account | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 0 | 0 | |
Transferred Assets | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets, at fair value | 1,824,000,000 | 1,976,000,000 | |
Securities lending | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Carrying value of securities lent | 2,217,000,000 | 1,467,000,000 | |
Collateral associated with securities lending | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Carrying value of securities lent | $ 2,338,000,000 | 1,546,000,000 | |
Loans | Level 3 | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Risk-adjusted spreads | 10 years | ||
Bottom of range | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Repurchase agreement maturity period | 7 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 | 127 days | ||
Securitized mortgages | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial liabilities | $ 1,453,000,000 | 1,355,000,000 | |
Financial liabilities, at fair value | 1,446,000,000 | 1,346,000,000 | |
Fair value through profit or loss | Asset-backed securities | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 4,527,000,000 | 3,681,000,000 | |
Fair value through profit or loss | Financial assets | Level 2 | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 40,730,000,000 | 38,601,000,000 | |
Measured at fair value | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Derivative liabilities | $ 2,295,000,000 | $ 1,756,000,000 | |
Discounted cash flow | Bottom of range | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Rental growth rate (per annum) | 0.00% | ||
Long-term vacancy rate | 2.00% | ||
Discount rate | 4.00% | ||
Terminal capitalization rate | 4.25% | ||
Discounted cash flow | Top of range | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Rental growth rate (per annum) | 3.00% | ||
Long-term vacancy rate | 10.00% | ||
Discount rate | 10.30% | ||
Terminal capitalization rate | 8.75% | ||
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) | square_foot | 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) | $ / square_foot | 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) | $ / square_foot | 3,000,000 | ||
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) | $ / square_foot | 11,000,000 | ||
Discounted cash flow | Investment property | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Expected return period | 10 years | ||
Scenario, Forecast | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Reclassification adjustments on cash flow hedges, before tax | $ 2,000,000 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | $ 271,827 | $ 269,112 | |
Less: Liabilities arising from investing activities | 247,257 | 246,141 | |
Financial assets | 143,061 | 137,691 | |
Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 203,236 | 205,239 | |
Less: Liabilities arising from investing activities | 2,298 | 1,759 | |
Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 39,687 | 42,113 | |
Less: Liabilities arising from investing activities | 11 | 5 | |
Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 151,901 | 152,426 | |
Less: Liabilities arising from investing activities | 2,284 | 1,751 | |
Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 11,648 | 10,700 | |
Less: Liabilities arising from investing activities | 3 | 3 | |
Financial assets | 11,648 | 10,700 | $ 9,785 |
Investment contract liabilities | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Less: Liabilities arising from investing activities | 3 | 3 | |
Investment contract liabilities | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Less: Liabilities arising from investing activities | 0 | 0 | |
Investment contract liabilities | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Less: Liabilities arising from investing activities | 0 | 0 | |
Investment contract liabilities | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Less: Liabilities arising from investing activities | 3 | 3 | |
Derivative liabilities | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Less: Liabilities arising from investing activities | 2,295 | 1,756 | |
Derivative liabilities | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Less: Liabilities arising from investing activities | 11 | 5 | |
Derivative liabilities | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Less: Liabilities arising from investing activities | 2,284 | 1,751 | |
Derivative liabilities | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Less: Liabilities arising from investing activities | 0 | 0 | |
Canadian federal government | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 5,576 | 5,198 | |
Debt securities | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 74,443 | 72,619 | |
Canadian provincial and municipal government | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 13,065 | 13,296 | |
Corporate | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 39,883 | 40,064 | |
Fair value through profit or loss | Canadian federal government | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 3,830 | 3,366 | |
Fair value through profit or loss | Canadian federal government | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 3,830 | 3,366 | |
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] | |||
Financial assets | 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] | |||
Financial assets | 3,815 | 3,351 | |
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] | |||
Financial assets | 15 | 15 | |
Fair value through profit or loss | Debt securities | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 61,402 | 59,967 | |
Fair value through profit or loss | Debt securities | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 61,402 | 59,967 | |
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] | |||
Financial assets | 1,253 | 1,103 | |
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] | |||
Financial assets | 59,776 | 58,447 | |
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] | |||
Financial assets | 373 | 417 | |
Fair value through profit or loss | Canadian provincial and municipal government | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 11,866 | 12,158 | |
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] | |||
Financial assets | 11,866 | 12,158 | |
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] | |||
Financial assets | 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] | |||
Financial assets | 11,852 | 12,142 | |
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] | |||
Financial assets | 14 | 16 | |
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] | |||
Financial assets | 1,380 | 1,231 | |
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] | |||
Financial assets | 1,253 | 1,103 | |
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] | |||
Financial assets | 125 | 125 | |
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] | |||
Financial assets | 2 | 3 | |
Fair value through profit or loss | Other foreign government | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 4,929 | 5,361 | |
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] | |||
Financial assets | 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] | |||
Financial assets | 4,895 | 5,318 | |
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] | |||
Financial assets | 34 | 43 | |
Fair value through profit or loss | Corporate | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 34,870 | 34,170 | |
Fair value through profit or loss | Corporate | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 34,870 | 34,170 | |
Fair value through profit or loss | Corporate | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 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] | |||
Financial assets | 34,665 | 33,864 | |
Fair value through profit or loss | Corporate | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 205 | 306 | |
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] | |||
Financial assets | 1,467 | 1,460 | |
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] | |||
Financial assets | 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] | |||
Financial assets | 1,464 | 1,459 | |
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] | |||
Financial assets | 3 | 1 | |
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] | |||
Financial assets | 1,961 | 1,625 | |
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] | |||
Financial assets | 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] | |||
Financial assets | 1,961 | 1,625 | |
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] | |||
Financial assets | 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] | |||
Financial assets | 143 | 55 | |
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] | |||
Financial assets | 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] | |||
Financial assets | 143 | 55 | |
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] | |||
Financial assets | 0 | 0 | |
Fair value through profit or loss | Other | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 956 | 541 | |
Fair value through profit or loss | Other | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 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] | |||
Financial assets | 856 | 508 | |
Fair value through profit or loss | Other | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 100 | 33 | |
Available-for-sale | Canadian federal government | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 1,746 | 1,832 | |
Available-for-sale | Canadian federal government | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 1,746 | 1,832 | |
Available-for-sale | Canadian federal government | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 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] | |||
Financial assets | 1,746 | 1,832 | |
Available-for-sale | Canadian federal government | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 0 | 0 | |
Available-for-sale | Debt securities | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 13,041 | 12,652 | |
Available-for-sale | Debt securities | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 13,041 | 12,652 | |
Available-for-sale | Debt securities | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 1,513 | 818 | |
Available-for-sale | Debt securities | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 11,485 | 11,698 | |
Available-for-sale | Debt securities | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 43 | 136 | |
Available-for-sale | Canadian provincial and municipal government | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 1,199 | 1,138 | |
Available-for-sale | Canadian provincial and municipal government | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 1,199 | 1,138 | |
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] | |||
Financial assets | 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] | |||
Financial assets | 1,199 | 1,138 | |
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] | |||
Financial assets | 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] | |||
Financial assets | 1,527 | 818 | |
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] | |||
Financial assets | 1,513 | 818 | |
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] | |||
Financial assets | 14 | 0 | |
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] | |||
Financial assets | 0 | 0 | |
Available-for-sale | Other foreign government | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 717 | 752 | |
Available-for-sale | Other foreign government | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 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] | |||
Financial assets | 716 | 752 | |
Available-for-sale | Other foreign government | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 1 | 0 | |
Available-for-sale | Corporate | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 5,013 | 5,894 | |
Available-for-sale | Corporate | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 5,013 | 5,894 | |
Available-for-sale | Corporate | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 0 | 0 | |
Available-for-sale | Corporate | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 4,971 | 5,838 | |
Available-for-sale | Corporate | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 42 | 56 | |
Available-for-sale | Commercial mortgage-backed securities | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 766 | 744 | |
Available-for-sale | Commercial mortgage-backed securities | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 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] | |||
Financial assets | 766 | 744 | |
Available-for-sale | Commercial mortgage-backed securities | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 0 | 0 | |
Available-for-sale | Residential mortgage-backed securities | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 386 | 398 | |
Available-for-sale | Residential mortgage-backed securities | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 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] | |||
Financial assets | 386 | 398 | |
Available-for-sale | Residential mortgage-backed securities | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 0 | 0 | |
Available-for-sale | Collateralized debt obligations | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 804 | 414 | |
Available-for-sale | Collateralized debt obligations | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 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] | |||
Financial assets | 804 | 345 | |
Available-for-sale | Collateralized debt obligations | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 0 | 69 | |
Available-for-sale | Other | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 883 | 662 | |
Available-for-sale | Other | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 0 | 0 | |
Available-for-sale | Other | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 883 | 651 | |
Available-for-sale | Other | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Financial assets | 0 | 11 | |
Cash, cash equivalents and short-term securities | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 9,506 | 8,890 | |
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 | 8,926 | 7,683 | |
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 | 580 | 1,207 | |
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 | 61,402 | 59,967 | |
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 | 1,253 | 1,103 | |
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 | 59,776 | 58,447 | |
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 | 373 | 417 | |
Financial assets | 373 | 417 | 442 |
Debt securities | Available-for-sale | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 13,041 | 12,652 | |
Debt securities | Available-for-sale | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 1,513 | 818 | |
Debt securities | Available-for-sale | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 11,485 | 11,698 | |
Debt securities | Available-for-sale | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 43 | 136 | |
Financial assets | 43 | 136 | 191 |
Equity securities | Fair value through profit or loss | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 4,014 | 5,078 | |
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 | 1,967 | 3,379 | |
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 | 1,845 | 1,532 | |
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 | 202 | 167 | |
Financial assets | 202 | 167 | 144 |
Equity securities | Available-for-sale | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 620 | 942 | |
Equity securities | Available-for-sale | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 398 | 710 | |
Equity securities | Available-for-sale | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 186 | 194 | |
Equity securities | Available-for-sale | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 36 | 38 | |
Financial assets | 36 | 38 | 7 |
Derivative assets | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 1,112 | 1,478 | |
Derivative assets | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 27 | 27 | |
Derivative assets | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 1,085 | 1,451 | |
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 | 3,322 | 2,773 | |
Other invested assets | Level 1 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 898 | 912 | |
Other invested assets | Level 2 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 183 | 140 | |
Other invested assets | Level 3 | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 2,241 | 1,721 | |
Financial assets | 2,241 | 1,721 | 1,544 |
Investment properties | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 7,157 | 7,067 | |
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 | 7,157 | 7,067 | |
Financial assets | 7,157 | 7,067 | 6,592 |
Total invested assets measured at fair value | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 100,174 | 98,847 | |
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 | 14,982 | 14,632 | |
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 | 75,140 | 74,669 | |
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 | 10,052 | 9,546 | |
Financial assets | 10,052 | 9,546 | 8,920 |
Investments for account of segregated fund holders | Recurring fair value measurement | |||
Disclosure Of Fair Value Measurement of Assets and Liabilities [Line Items] | |||
Assets | 103,062 | 106,392 | |
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 | 24,705 | 27,481 | |
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 | 76,761 | 77,757 | |
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 | 1,596 | 1,154 | |
Financial assets | $ 1,596 | $ 1,154 | $ 865 |
Total Invested Assets and Rel_6
Total Invested Assets and Related Net Investment Income - Reconciliation of Assets Categorized in Level 3 (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in fair value measurement, assets [abstract] | ||
Beginning balance | $ 137,691 | |
Ending balance | 271,827 | $ 269,112 |
Fair value and foreign currency changes on assets and liabilities | (3,373) | 2,603 |
Fair value changes on investment properties | 529 | 211 |
Revaluation surplus | 172 | |
Increase to accumulated other comprehensive income, net of tax | 0 | 139 |
Income tax relating to changes in revaluation surplus of other comprehensive income | 0 | 33 |
Recurring fair value measurement | ||
Changes in fair value measurement, assets [abstract] | ||
Ending balance | 203,236 | 205,239 |
Recurring fair value measurement | Level 3 | ||
Changes in fair value measurement, assets [abstract] | ||
Beginning balance | 10,700 | 9,785 |
Included in net income | 544 | 162 |
Included in OCI | (22) | 18 |
Purchases | 2,022 | 1,716 |
Sales | (1,427) | (722) |
Settlements | (27) | (79) |
Transfers into Level 3 | 18 | 512 |
Transfers (out) of Level 3 | (385) | (546) |
Foreign currency translation | 225 | (146) |
Ending balance | 11,648 | 10,700 |
Fair value and foreign currency changes on assets and liabilities | 441 | 123 |
Recurring fair value measurement | Other invested assets | ||
Changes in fair value measurement, assets [abstract] | ||
Ending balance | 3,322 | 2,773 |
Recurring fair value measurement | Other invested assets | Level 3 | ||
Changes in fair value measurement, assets [abstract] | ||
Beginning balance | 1,721 | 1,544 |
Included in net income | 69 | (59) |
Included in OCI | (9) | 18 |
Purchases | 644 | 505 |
Sales | (227) | 318 |
Settlements | 0 | 0 |
Transfers into Level 3 | 0 | 49 |
Transfers (out) of Level 3 | 0 | 0 |
Foreign currency translation | 43 | (18) |
Ending balance | 2,241 | 1,721 |
Fair value and foreign currency changes on assets and liabilities | 69 | (59) |
Recurring fair value measurement | Investment properties | ||
Changes in fair value measurement, assets [abstract] | ||
Ending balance | 7,157 | 7,067 |
Recurring fair value measurement | Investment properties | Level 3 | ||
Changes in fair value measurement, assets [abstract] | ||
Beginning balance | 7,067 | 6,592 |
Included in net income | 441 | 158 |
Included in OCI | 0 | 0 |
Purchases | 621 | 448 |
Sales | (1,113) | 277 |
Settlements | 0 | 0 |
Transfers into Level 3 | 0 | 259 |
Transfers (out) of Level 3 | 0 | 0 |
Foreign currency translation | 141 | (113) |
Ending balance | 7,157 | 7,067 |
Fair value and foreign currency changes on assets and liabilities | 331 | 147 |
Recurring fair value measurement | Total invested assets measured at fair value | ||
Changes in fair value measurement, assets [abstract] | ||
Ending balance | 100,174 | 98,847 |
Recurring fair value measurement | Total invested assets measured at fair value | Level 3 | ||
Changes in fair value measurement, assets [abstract] | ||
Beginning balance | 9,546 | 8,920 |
Included in net income | 515 | 102 |
Included in OCI | (22) | 18 |
Purchases | 1,592 | 1,414 |
Sales | (1,396) | (645) |
Settlements | (26) | (78) |
Transfers into Level 3 | 14 | 512 |
Transfers (out) of Level 3 | (380) | (546) |
Foreign currency translation | 209 | (151) |
Ending balance | 10,052 | 9,546 |
Fair value and foreign currency changes on assets and liabilities | 414 | 96 |
Recurring fair value measurement | Investments for account of segregated fund holders | ||
Changes in fair value measurement, assets [abstract] | ||
Ending balance | 103,062 | 106,392 |
Recurring fair value measurement | Investments for account of segregated fund holders | Level 3 | ||
Changes in fair value measurement, assets [abstract] | ||
Beginning balance | 1,154 | 865 |
Included in net income | 29 | 60 |
Included in OCI | 0 | 0 |
Purchases | 430 | 302 |
Sales | (31) | 77 |
Settlements | (1) | 1 |
Transfers into Level 3 | 4 | 0 |
Transfers (out) of Level 3 | (5) | 0 |
Foreign currency translation | 16 | 5 |
Ending balance | 1,596 | 1,154 |
Fair value and foreign currency changes on assets and liabilities | 27 | 27 |
Fair value through profit or loss | Recurring fair value measurement | Debt securities | ||
Changes in fair value measurement, assets [abstract] | ||
Ending balance | 61,402 | 59,967 |
Fair value through profit or loss | Recurring fair value measurement | Debt securities | Level 3 | ||
Changes in fair value measurement, assets [abstract] | ||
Beginning balance | 417 | 442 |
Included in net income | (4) | (3) |
Included in OCI | 0 | 0 |
Purchases | 164 | 180 |
Sales | (49) | 41 |
Settlements | (21) | 66 |
Transfers into Level 3 | 12 | 204 |
Transfers (out) of Level 3 | (159) | 284 |
Foreign currency translation | 13 | (15) |
Ending balance | 373 | 417 |
Fair value and foreign currency changes on assets and liabilities | 5 | 0 |
Fair value through profit or loss | Recurring fair value measurement | Equity securities | ||
Changes in fair value measurement, assets [abstract] | ||
Ending balance | 4,014 | 5,078 |
Fair value through profit or loss | Recurring fair value measurement | Equity securities | Level 3 | ||
Changes in fair value measurement, assets [abstract] | ||
Beginning balance | 167 | 144 |
Included in net income | 9 | 7 |
Included in OCI | 0 | 0 |
Purchases | 19 | 34 |
Sales | 0 | 7 |
Settlements | 0 | 7 |
Transfers into Level 3 | 0 | 0 |
Transfers (out) of Level 3 | 0 | 0 |
Foreign currency translation | 7 | (4) |
Ending balance | 202 | 167 |
Fair value and foreign currency changes on assets and liabilities | 9 | 8 |
Available-for-sale | Recurring fair value measurement | Debt securities | ||
Changes in fair value measurement, assets [abstract] | ||
Ending balance | 13,041 | 12,652 |
Available-for-sale | Recurring fair value measurement | Debt securities | Level 3 | ||
Changes in fair value measurement, assets [abstract] | ||
Beginning balance | 136 | 191 |
Included in net income | 0 | (1) |
Included in OCI | (5) | 0 |
Purchases | 140 | 215 |
Sales | (6) | 2 |
Settlements | (4) | 5 |
Transfers into Level 3 | 1 | 0 |
Transfers (out) of Level 3 | (221) | 262 |
Foreign currency translation | 2 | 0 |
Ending balance | 43 | 136 |
Fair value and foreign currency changes on assets and liabilities | 0 | 0 |
Available-for-sale | Recurring fair value measurement | Equity securities | ||
Changes in fair value measurement, assets [abstract] | ||
Ending balance | 620 | 942 |
Available-for-sale | Recurring fair value measurement | Equity securities | Level 3 | ||
Changes in fair value measurement, assets [abstract] | ||
Beginning balance | 38 | 7 |
Included in net income | 0 | 0 |
Included in OCI | (8) | 0 |
Purchases | 4 | 32 |
Sales | (1) | 0 |
Settlements | (1) | 0 |
Transfers into Level 3 | 1 | 0 |
Transfers (out) of Level 3 | 0 | 0 |
Foreign currency translation | 3 | (1) |
Ending balance | 36 | 38 |
Fair value and foreign currency changes on assets and liabilities | 0 | 0 |
Leasing commissions and tenant inducements | ||
Changes in fair value measurement, assets [abstract] | ||
Fair value changes on investment properties | $ 88 | $ 53 |
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, 2018 | Dec. 31, 2017 | |
Fair Value Measurement [Abstract] | ||
Cash, cash equivalents and short-term securities | $ 131 | $ 65 |
Debt securities – fair value through profit or loss | 2,312 | 2,292 |
Debt securities – available-for-sale | 384 | 352 |
Mortgages and loans | 2,050 | 1,928 |
Derivative investments | 45 | 70 |
Policy loans | 175 | 165 |
Total interest income | 5,097 | 4,872 |
Equity securities – dividends on fair value through profit or loss | 160 | 159 |
Equity securities – dividends on available-for-sale | 14 | 15 |
Investment properties rental income(1) | 594 | 623 |
Investment properties expenses | (259) | (286) |
Other income | 242 | 223 |
Investment expenses and taxes | (207) | (193) |
Net investment income (loss) | $ 5,641 | $ 5,413 |
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, 2018 | Dec. 31, 2017 | |
Disclosure of fair value measurement of assets [line items] | ||
Increase (decrease) in fair value of financial assets designated as measured at fair value through profit or loss, attributable to changes in credit risk of financial assets | $ (4,376) | $ 2,780 |
Fair value changes on investment properties | 529 | 211 |
Foreign exchange gains (losses) | 446 | (388) |
Fair value and foreign currency changes on assets and liabilities | (3,373) | 2,603 |
Gain on sale of operating lease | 28 | |
Cash, cash equivalents and short-term securities | ||
Disclosure of fair value measurement of assets [line items] | ||
Increase (decrease) in fair value of financial assets designated as measured at fair value through profit or loss, attributable to changes in credit risk of financial assets | 8 | 1 |
Debt securities | ||
Disclosure of fair value measurement of assets [line items] | ||
Increase (decrease) in fair value of financial assets designated as measured at fair value through profit or loss, attributable to changes in credit risk of financial assets | (2,704) | 1,630 |
Equity securities | ||
Disclosure of fair value measurement of assets [line items] | ||
Increase (decrease) in fair value of financial assets designated as measured at fair value through profit or loss, attributable to changes in credit risk of financial assets | (401) | 441 |
Derivative assets | ||
Disclosure of fair value measurement of assets [line items] | ||
Increase (decrease) in fair value of financial assets designated as measured at fair value through profit or loss, attributable to changes in credit risk of financial assets | (1,295) | 649 |
Other invested assets | ||
Disclosure of fair value measurement of assets [line items] | ||
Increase (decrease) in fair value of financial assets designated as measured at fair value through profit or loss, attributable to changes in credit risk of financial assets | $ 16 | $ 59 |
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, 2018 | Dec. 31, 2017 |
Fair Value Measurement [Abstract] | ||
Cash | $ 2,089 | $ 1,504 |
Cash equivalents | 5,209 | 4,592 |
Short-term securities | 2,208 | 2,794 |
Cash, cash equivalents and short-term securities | 9,506 | 8,890 |
Less: Bank overdraft, recorded in Other liabilities | 104 | 140 |
Net cash, cash equivalents and short-term securities | $ 9,402 | $ 8,750 |
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, 2018 | Dec. 31, 2017 |
Disclosure of financial assets [line items] | ||
Financial assets, at fair value | $ 144,673 | $ 140,292 |
Interest rate contracts | ||
Disclosure of financial assets [line items] | ||
Financial assets, at fair value | 922 | 1,188 |
Foreign exchange contracts | ||
Disclosure of financial assets [line items] | ||
Financial assets, at fair value | 130 | 177 |
Other contracts | ||
Disclosure of financial assets [line items] | ||
Financial assets, at fair value | 60 | 113 |
Derivatives | ||
Disclosure of financial assets [line items] | ||
Financial liabilities, at fair value | (2,295) | (1,756) |
Interest rate contracts | ||
Disclosure of financial assets [line items] | ||
Financial liabilities, at fair value | (440) | (518) |
Foreign exchange contracts | ||
Disclosure of financial assets [line items] | ||
Financial liabilities, at fair value | (1,820) | (1,232) |
Other contracts | ||
Disclosure of financial assets [line items] | ||
Financial liabilities, at fair value | $ (35) | $ (6) |
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, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, at fair value | $ 144,673 | $ 140,292 |
Notional amount | 700 | |
Derivative investments | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, at fair value | 1,101 | 1,439 |
Financial liabilities, at fair value | (2,134) | (1,575) |
Notional amount | 58,268 | 53,299 |
Fair value hedges | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, at fair value | 0 | 2 |
Financial liabilities, at fair value | (153) | (181) |
Notional amount | 779 | 690 |
Cash flow hedges | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, at fair value | 11 | 37 |
Financial liabilities, at fair value | (8) | 0 |
Notional amount | 151 | 132 |
Derivatives | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets, at fair value | 1,112 | 1,478 |
Financial liabilities, at fair value | (2,295) | (1,756) |
Notional amount | $ 59,198 | $ 54,121 |
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, 2018 | Dec. 31, 2017 | |
Financial Instruments [Abstract] | ||
Gains (losses) on the hedged items attributable to the hedged risk | $ (41) | $ (22) |
Gains (losses) on the hedging derivatives | 40 | 19 |
Net ineffectiveness on fair value hedges | $ (1) | $ (3) |
Financial Instrument Risk Man_3
Financial Instrument Risk Management - Maximum Exposure to Credit Risk (Details) - Credit risk - CAD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of credit risk exposure [line items] | ||
Maximum exposure to credit risk | $ 2,460 | $ 1,752 |
Loans | ||
Disclosure of credit risk exposure [line items] | ||
Maximum exposure to credit risk | 2,460 | 1,740 |
Guarantees | ||
Disclosure of credit risk exposure [line items] | ||
Maximum exposure to credit risk | $ 0 | $ 12 |
Financial Instrument Risk Man_4
Financial Instrument Risk Management - Right of Offset and Collateral (Details) - CAD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of offsetting of financial liabilities [abstract] | ||
Gross financial liabilities presented in the Consolidated Statements of Financial Position | $ (4,119) | $ (3,732) |
Financial instruments subject to enforceable master netting arrangement or similar agreement not set off against financial liabilities | 785 | 694 |
Financial collateral pledged | 2,939 | 2,730 |
Net financial liabilities | (395) | (308) |
Derivative liabilities | ||
Disclosure of offsetting of financial liabilities [abstract] | ||
Gross financial liabilities presented in the Consolidated Statements of Financial Position | (2,295) | (1,756) |
Financial instruments subject to enforceable master netting arrangement or similar agreement not set off against financial liabilities | 768 | 694 |
Financial collateral pledged | 1,132 | 754 |
Net financial liabilities | (395) | (308) |
Financial assets pledged as collateral | 1,726 | 1,127 |
Repurchase agreements | ||
Disclosure of offsetting of financial liabilities [abstract] | ||
Gross financial liabilities presented in the Consolidated Statements of Financial Position | (1,824) | (1,976) |
Financial instruments subject to enforceable master netting arrangement or similar agreement not set off against financial liabilities | 17 | 0 |
Financial collateral pledged | 1,807 | 1,976 |
Net financial liabilities | 0 | 0 |
Financial assets pledged as collateral | 1,824 | 1,976 |
Derivative assets | ||
Disclosure of offsetting of financial assets [line items] | ||
Gross financial assets presented in the Consolidated Statements of Financial Position | 1,112 | 1,478 |
Financial instruments subject to master netting or similar agreements | (768) | (694) |
Financial collateral received | (298) | (662) |
Net financial assets | 46 | 122 |
Disclosure of offsetting of financial liabilities [abstract] | ||
Financial assets received as collateral | 470 | 853 |
Reverse repurchase agreements | ||
Disclosure of offsetting of financial assets [line items] | ||
Gross financial assets presented in the Consolidated Statements of Financial Position | 17 | 0 |
Financial instruments subject to master netting or similar agreements | (17) | 0 |
Financial collateral received | 0 | 0 |
Net financial assets | 0 | 0 |
Disclosure of offsetting of financial liabilities [abstract] | ||
Financial assets received as collateral | 17 | 0 |
Financial assets | ||
Disclosure of offsetting of financial assets [line items] | ||
Gross financial assets presented in the Consolidated Statements of Financial Position | 1,129 | 1,478 |
Financial instruments subject to master netting or similar agreements | (785) | (694) |
Financial collateral received | (298) | (662) |
Net financial assets | $ 46 | $ 122 |
Financial Instrument Risk Man_5
Financial Instrument Risk Management - Debt Securities by Geographic Location (Details) - CAD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of geographical areas [line items] | ||
Financial assets | $ 143,061 | $ 137,691 |
Debt securities | ||
Disclosure of geographical areas [line items] | ||
Financial assets | 74,443 | 72,619 |
Debt securities | Canada | ||
Disclosure of geographical areas [line items] | ||
Financial assets | 29,308 | 28,246 |
Debt securities | United States | ||
Disclosure of geographical areas [line items] | ||
Financial assets | 27,246 | 26,477 |
Debt securities | United Kingdom | ||
Disclosure of geographical areas [line items] | ||
Financial assets | 5,657 | 5,909 |
Debt securities | Other countries | ||
Disclosure of geographical areas [line items] | ||
Financial assets | 12,232 | 11,987 |
Fair value through profit or loss | Debt securities | ||
Disclosure of geographical areas [line items] | ||
Financial assets | 61,402 | 59,967 |
Fair value through profit or loss | Debt securities | Canada | ||
Disclosure of geographical areas [line items] | ||
Financial assets | 25,091 | 24,132 |
Fair value through profit or loss | Debt securities | United States | ||
Disclosure of geographical areas [line items] | ||
Financial assets | 21,329 | 20,758 |
Fair value through profit or loss | Debt securities | United Kingdom | ||
Disclosure of geographical areas [line items] | ||
Financial assets | 5,092 | 5,319 |
Fair value through profit or loss | Debt securities | Other countries | ||
Disclosure of geographical areas [line items] | ||
Financial assets | 9,890 | 9,758 |
Available-for- sale | Debt securities | ||
Disclosure of geographical areas [line items] | ||
Financial assets | 13,041 | 12,652 |
Available-for- sale | Debt securities | Canada | ||
Disclosure of geographical areas [line items] | ||
Financial assets | 4,217 | 4,114 |
Available-for- sale | Debt securities | United States | ||
Disclosure of geographical areas [line items] | ||
Financial assets | 5,917 | 5,719 |
Available-for- sale | Debt securities | United Kingdom | ||
Disclosure of geographical areas [line items] | ||
Financial assets | 565 | 590 |
Available-for- sale | Debt securities | Other countries | ||
Disclosure of geographical areas [line items] | ||
Financial assets | $ 2,342 | $ 2,229 |
Financial Instrument Risk Man_6
Financial Instrument Risk Management - Debt Securities by Issuer and Industry Sector (Details) - CAD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of financial assets [line items] | ||
Financial assets | $ 143,061 | $ 137,691 |
Canadian federal government | ||
Disclosure of financial assets [line items] | ||
Financial assets | 5,576 | 5,198 |
Canadian federal government | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Financial assets | 3,830 | 3,366 |
Canadian federal government | Available-for-sale | ||
Disclosure of financial assets [line items] | ||
Financial assets | 1,746 | 1,832 |
Canadian provincial and municipal government | ||
Disclosure of financial assets [line items] | ||
Financial assets | 13,065 | 13,296 |
Canadian provincial and municipal government | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Financial assets | 11,866 | 12,158 |
Canadian provincial and municipal government | Available-for-sale | ||
Disclosure of financial assets [line items] | ||
Financial assets | 1,199 | 1,138 |
U.S. government and agency | ||
Disclosure of financial assets [line items] | ||
Financial assets | 2,907 | 2,049 |
U.S. government and agency | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Financial assets | 1,380 | 1,231 |
U.S. government and agency | Available-for-sale | ||
Disclosure of financial assets [line items] | ||
Financial assets | 1,527 | 818 |
Other foreign government | ||
Disclosure of financial assets [line items] | ||
Financial assets | 5,646 | 6,113 |
Other foreign government | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Financial assets | 4,929 | 5,361 |
Other foreign government | Available-for-sale | ||
Disclosure of financial assets [line items] | ||
Financial assets | 717 | 752 |
Government issued or guaranteed debt securities | ||
Disclosure of financial assets [line items] | ||
Financial assets | 27,194 | 26,656 |
Government issued or guaranteed debt securities | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Financial assets | 22,005 | 22,116 |
Government issued or guaranteed debt securities | Available-for-sale | ||
Disclosure of financial assets [line items] | ||
Financial assets | 5,189 | 4,540 |
Corporate Debt Securities | ||
Disclosure of financial assets [line items] | ||
Financial assets | 39,883 | 40,064 |
Corporate Debt Securities | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Financial assets | 34,870 | 34,170 |
Corporate Debt Securities | Available-for-sale | ||
Disclosure of financial assets [line items] | ||
Financial assets | 5,013 | 5,894 |
Corporate Debt Securities | Financials | ||
Disclosure of financial assets [line items] | ||
Financial assets | 9,860 | 9,561 |
Corporate Debt Securities | Financials | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Financial assets | 8,390 | 7,856 |
Corporate Debt Securities | Financials | Available-for-sale | ||
Disclosure of financial assets [line items] | ||
Financial assets | 1,470 | 1,705 |
Corporate Debt Securities | Utilities | ||
Disclosure of financial assets [line items] | ||
Financial assets | 6,881 | 7,306 |
Corporate Debt Securities | Utilities | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Financial assets | 6,353 | 6,756 |
Corporate Debt Securities | Utilities | Available-for-sale | ||
Disclosure of financial assets [line items] | ||
Financial assets | 528 | 550 |
Corporate Debt Securities | Industrials | ||
Disclosure of financial assets [line items] | ||
Financial assets | 4,643 | 4,797 |
Corporate Debt Securities | Industrials | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Financial assets | 4,053 | 4,090 |
Corporate Debt Securities | Industrials | Available-for-sale | ||
Disclosure of financial assets [line items] | ||
Financial assets | 590 | 707 |
Corporate Debt Securities | Energy | ||
Disclosure of financial assets [line items] | ||
Financial assets | 3,968 | 4,112 |
Corporate Debt Securities | Energy | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Financial assets | 3,628 | 3,657 |
Corporate Debt Securities | Energy | Available-for-sale | ||
Disclosure of financial assets [line items] | ||
Financial assets | 340 | 455 |
Corporate Debt Securities | Communication services(2) | ||
Disclosure of financial assets [line items] | ||
Financial assets | 3,307 | 3,371 |
Corporate Debt Securities | Communication services(2) | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Financial assets | 2,826 | 2,826 |
Corporate Debt Securities | Communication services(2) | Available-for-sale | ||
Disclosure of financial assets [line items] | ||
Financial assets | 481 | 545 |
Corporate Debt Securities | Real estate | ||
Disclosure of financial assets [line items] | ||
Financial assets | 3,016 | 2,579 |
Corporate Debt Securities | Real estate | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Financial assets | 2,640 | 2,213 |
Corporate Debt Securities | Real estate | Available-for-sale | ||
Disclosure of financial assets [line items] | ||
Financial assets | 376 | 366 |
Corporate Debt Securities | Health care | ||
Disclosure of financial assets [line items] | ||
Financial assets | 2,033 | 1,579 |
Corporate Debt Securities | Health care | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Financial assets | 1,734 | 1,256 |
Corporate Debt Securities | Health care | Available-for-sale | ||
Disclosure of financial assets [line items] | ||
Financial assets | 299 | 323 |
Corporate Debt Securities | Consumer staples | ||
Disclosure of financial assets [line items] | ||
Financial assets | 1,882 | 2,271 |
Corporate Debt Securities | Consumer staples | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Financial assets | 1,625 | 1,920 |
Corporate Debt Securities | Consumer staples | Available-for-sale | ||
Disclosure of financial assets [line items] | ||
Financial assets | 257 | 351 |
Corporate Debt Securities | Consumer discretionary(2) | ||
Disclosure of financial assets [line items] | ||
Financial assets | 1,581 | 1,692 |
Corporate Debt Securities | Consumer discretionary(2) | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Financial assets | 1,372 | 1,329 |
Corporate Debt Securities | Consumer discretionary(2) | Available-for-sale | ||
Disclosure of financial assets [line items] | ||
Financial assets | 209 | 363 |
Corporate Debt Securities | Materials | ||
Disclosure of financial assets [line items] | ||
Financial assets | 1,481 | 1,473 |
Corporate Debt Securities | Materials | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Financial assets | 1,225 | 1,211 |
Corporate Debt Securities | Materials | Available-for-sale | ||
Disclosure of financial assets [line items] | ||
Financial assets | 256 | 262 |
Corporate Debt Securities | Information technology(2) | ||
Disclosure of financial assets [line items] | ||
Financial assets | 1,231 | 1,323 |
Corporate Debt Securities | Information technology(2) | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Financial assets | 1,024 | 1,056 |
Corporate Debt Securities | Information technology(2) | Available-for-sale | ||
Disclosure of financial assets [line items] | ||
Financial assets | 207 | 267 |
Asset-backed securities | ||
Disclosure of financial assets [line items] | ||
Financial assets | 7,366 | 5,899 |
Asset-backed securities | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Financial assets | 4,527 | 3,681 |
Asset-backed securities | Available-for-sale | ||
Disclosure of financial assets [line items] | ||
Financial assets | 2,839 | 2,218 |
Debt securities | ||
Disclosure of financial assets [line items] | ||
Financial assets | 74,443 | 72,619 |
Debt securities | Fair value through profit or loss | ||
Disclosure of financial assets [line items] | ||
Financial assets | 61,402 | 59,967 |
Debt securities | Available-for-sale | ||
Disclosure of financial assets [line items] | ||
Financial assets | $ 13,041 | $ 12,652 |
Financial Instrument Risk Man_7
Financial Instrument Risk Management - Mortgages and Loans by Geographic Location and Type (Details) - CAD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | $ 143,061 | $ 137,691 |
Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 16,433 | 15,493 |
Loans | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 30,389 | 27,312 |
Mortgages and loans | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 46,822 | 42,805 |
Retail | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 4,202 | 4,291 |
Office | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 4,228 | 4,261 |
Multi-family residential | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 5,375 | 4,582 |
Industrial and land | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 1,906 | 1,660 |
Other | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 722 | 699 |
Canada | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 8,557 | 8,390 |
Canada | Mortgages | Canada Mortgage And Housing Corporation | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 3,537 | 3,171 |
Canada | Loans | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 13,238 | 13,265 |
Canada | Mortgages and loans | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 21,795 | 21,655 |
Canada | Retail | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 1,921 | 2,027 |
Canada | Office | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 1,811 | 1,898 |
Canada | Multi-family residential | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 3,455 | 3,214 |
Canada | Industrial and land | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 752 | 670 |
Canada | Other | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 618 | 581 |
United States | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 7,876 | 7,103 |
United States | Loans | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 11,458 | 9,542 |
United States | Mortgages and loans | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 19,334 | 16,645 |
United States | Retail | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 2,281 | 2,264 |
United States | Office | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 2,417 | 2,363 |
United States | Multi-family residential | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 1,920 | 1,368 |
United States | Industrial and land | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 1,154 | 990 |
United States | Other | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 104 | 118 |
United Kingdom | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 0 | 0 |
United Kingdom | Loans | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 2,547 | 1,678 |
United Kingdom | Mortgages and loans | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 2,547 | 1,678 |
United Kingdom | Retail | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 0 | 0 |
United Kingdom | Office | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 0 | 0 |
United Kingdom | Multi-family residential | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 0 | 0 |
United Kingdom | Industrial and land | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 0 | 0 |
United Kingdom | Other | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 0 | 0 |
Other countries | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 0 | 0 |
Other countries | Loans | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 3,146 | 2,827 |
Other countries | Mortgages and loans | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 3,146 | 2,827 |
Other countries | Retail | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 0 | 0 |
Other countries | Office | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 0 | 0 |
Other countries | Multi-family residential | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 0 | 0 |
Other countries | Industrial and land | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 0 | 0 |
Other countries | Other | Mortgages | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | $ 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, 2018 | Dec. 31, 2017 |
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Financial assets | $ 143,061 | $ 137,691 |
Debt securities | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Financial assets | 74,443 | 72,619 |
Debt securities | Due in 1 year or less | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Financial assets | 3,364 | 2,485 |
Debt securities | Due in years 2-5 | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Financial assets | 14,172 | 11,368 |
Debt securities | Due in years 6-10 | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Financial assets | 12,660 | 13,325 |
Debt securities | Due after 10 years | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Financial assets | 44,247 | 45,441 |
Mortgages | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Financial assets | 16,433 | 15,493 |
Loans | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Financial assets | 30,389 | 27,312 |
Fair value through profit or loss | Debt securities | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Financial assets | 61,402 | 59,967 |
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] | ||
Financial assets | 2,189 | 1,432 |
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] | ||
Financial assets | 9,307 | 7,903 |
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] | ||
Financial assets | 10,080 | 10,148 |
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] | ||
Financial assets | 39,826 | 40,484 |
Available-for-sale | Debt securities | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Financial assets | 13,041 | 12,652 |
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] | ||
Financial assets | 1,175 | 1,053 |
Available-for-sale | Debt securities | Due in years 2-5 | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Financial assets | 4,865 | 3,465 |
Available-for-sale | Debt securities | Due in years 6-10 | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Financial assets | 2,580 | 3,177 |
Available-for-sale | Debt securities | Due after 10 years | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Financial assets | 4,421 | 4,957 |
Gross carrying amount | Mortgages | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Financial assets | 16,458 | 15,515 |
Gross carrying amount | Mortgages | Due in 1 year or less | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Financial assets | 968 | 931 |
Gross carrying amount | Mortgages | Due in years 2-5 | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Financial assets | 5,118 | 4,829 |
Gross carrying amount | Mortgages | Due in years 6-10 | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Financial assets | 7,351 | 6,963 |
Gross carrying amount | Mortgages | Due after 10 years | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Financial assets | 3,021 | 2,792 |
Gross carrying amount | Loans | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Financial assets | 30,439 | 27,340 |
Gross carrying amount | Loans | Due in 1 year or less | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Financial assets | 1,425 | 1,806 |
Gross carrying amount | Loans | Due in years 2-5 | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Financial assets | 6,968 | 6,350 |
Gross carrying amount | Loans | Due in years 6-10 | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Financial assets | 5,183 | 4,968 |
Gross carrying amount | Loans | Due after 10 years | ||
Disclosure of maturity analysis for financial assets held for managing liquidity risk [line items] | ||
Financial assets | $ 16,863 | $ 14,216 |
Financial Instrument Risk Man_9
Financial Instrument Risk Management - Notional Amount of Derivative Financial Instruments (Details) - CAD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | $ 143,061 | $ 137,691 |
Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 59,198 | 54,121 |
Swap contracts | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 1,356 | 1,121 |
Over-the-counter interest rate contracts | Forward contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 0 | 469 |
Over-the-counter interest rate contracts | Interest rate swap contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 21,292 | 20,887 |
Over-the-counter interest rate contracts | Options purchased | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 7,833 | 5,779 |
Over-the-counter interest rate contracts | Options written | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 1,350 | 1,245 |
Over-the-counter foreign exchange contracts | Forward contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 6,544 | 6,347 |
Over-the-counter foreign exchange contracts | Foreign currency swap contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 14,193 | 11,744 |
Over-the-counter other contracts | Forward contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 285 | 259 |
Over-the-counter other contracts | Swap contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 113 | 127 |
Over-the-counter other contracts | Credit derivatives | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 1,356 | 1,121 |
Exchange-traded interest rate contracts | Futures contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 3,669 | 3,415 |
Exchange-traded equity contracts | Options purchased | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 186 | 512 |
Exchange-traded equity contracts | Futures contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 2,377 | 2,216 |
Under 1 Year | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 16,308 | 15,895 |
Under 1 Year | Over-the-counter interest rate contracts | Forward contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 0 | 469 |
Under 1 Year | Over-the-counter interest rate contracts | Interest rate swap contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 1,101 | 1,348 |
Under 1 Year | Over-the-counter interest rate contracts | Options purchased | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 1,198 | 1,062 |
Under 1 Year | Over-the-counter interest rate contracts | Options written | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 477 | 0 |
Under 1 Year | Over-the-counter foreign exchange contracts | Forward contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 6,529 | 6,305 |
Under 1 Year | Over-the-counter foreign exchange contracts | Foreign currency swap contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 532 | 332 |
Under 1 Year | Over-the-counter other contracts | Forward contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 127 | 109 |
Under 1 Year | Over-the-counter other contracts | Swap contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 112 | 126 |
Under 1 Year | Over-the-counter other contracts | Credit derivatives | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 0 | 48 |
Under 1 Year | Exchange-traded interest rate contracts | Futures contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 3,669 | 3,415 |
Under 1 Year | Exchange-traded equity contracts | Options purchased | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 186 | 465 |
Under 1 Year | Exchange-traded equity contracts | Futures contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 2,377 | 2,216 |
1 to 5 Years | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 13,006 | 11,879 |
1 to 5 Years | Over-the-counter interest rate contracts | Forward contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 0 | 0 |
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] | ||
Financial assets | 3,506 | 3,486 |
1 to 5 Years | Over-the-counter interest rate contracts | Options purchased | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 2,898 | 2,266 |
1 to 5 Years | Over-the-counter interest rate contracts | Options written | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 648 | 786 |
1 to 5 Years | Over-the-counter foreign exchange contracts | Forward contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 15 | 42 |
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] | ||
Financial assets | 4,451 | 4,198 |
1 to 5 Years | Over-the-counter other contracts | Forward contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 158 | 150 |
1 to 5 Years | Over-the-counter other contracts | Swap contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 1 | 1 |
1 to 5 Years | Over-the-counter other contracts | Credit derivatives | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 1,329 | 903 |
1 to 5 Years | Exchange-traded interest rate contracts | Futures contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 0 | 0 |
1 to 5 Years | Exchange-traded equity contracts | Options purchased | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 0 | 47 |
1 to 5 Years | Exchange-traded equity contracts | Futures contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 0 | 0 |
Over 5 Years | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 29,884 | 26,347 |
Over 5 Years | Over-the-counter interest rate contracts | Forward contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 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] | ||
Financial assets | 16,685 | 16,053 |
Over 5 Years | Over-the-counter interest rate contracts | Options purchased | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 3,737 | 2,451 |
Over 5 Years | Over-the-counter interest rate contracts | Options written | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 225 | 459 |
Over 5 Years | Over-the-counter foreign exchange contracts | Forward contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 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] | ||
Financial assets | 9,210 | 7,214 |
Over 5 Years | Over-the-counter other contracts | Forward contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 0 | 0 |
Over 5 Years | Over-the-counter other contracts | Swap contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 0 | 0 |
Over 5 Years | Over-the-counter other contracts | Credit derivatives | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 27 | 170 |
Over 5 Years | Exchange-traded interest rate contracts | Futures contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 0 | 0 |
Over 5 Years | Exchange-traded equity contracts | Options purchased | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 0 | 0 |
Over 5 Years | Exchange-traded equity contracts | Futures contracts | Derivative assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | $ 0 | $ 0 |
Financial Instrument Risk Ma_10
Financial Instrument Risk Management - Fair Value of Derivative Instruments (Details) - CAD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative assets | $ 1,112 | $ 1,478 |
Derivative liabilities | (2,295) | (1,756) |
Measured at fair value | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | (2,295) | (1,756) |
Measured at fair value | Under 1 Year | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | (240) | (90) |
Measured at fair value | 1 to 5 Years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | (555) | (347) |
Measured at fair value | Over 5 Years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative liabilities | (1,500) | (1,319) |
Measured at fair value | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative assets | 1,112 | 1,478 |
Measured at fair value | Under 1 Year | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative assets | 100 | 97 |
Measured at fair value | 1 to 5 Years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative assets | 150 | 226 |
Measured at fair value | Over 5 Years | ||
Disclosure of maturity analysis for derivative financial liabilities [line items] | ||
Derivative assets | $ 862 | $ 1,155 |
Financial Instrument Risk Ma_11
Financial Instrument Risk Management - Narrative (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of financial assets [line items] | ||
Percent of debt security portfolio considered investment grade | 99.00% | 98.00% |
Available-for-sale | ||
Disclosure of financial assets [line items] | ||
Impairment loss on available-for-sale assets | $ 12,000,000 | $ 7,000,000 |
Debt securities | Available-for-sale | ||
Disclosure of financial assets [line items] | ||
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, 2018 | Dec. 31, 2017 |
Disclosure of external credit grades [line items] | ||
Financial assets | $ 143,061 | $ 137,691 |
Debt securities | Credit risk | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 74,443 | 72,619 |
Debt securities | Credit risk | AAA | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 15,647 | 13,449 |
Debt securities | Credit risk | AA | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 16,252 | 15,815 |
Debt securities | Credit risk | A | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 21,536 | 22,603 |
Debt securities | Credit risk | BBB | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 20,129 | 19,568 |
Debt securities | Credit risk | BB and lower | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 879 | 1,184 |
Fair value through profit or loss | Debt securities | Credit risk | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 61,402 | 59,967 |
Fair value through profit or loss | Debt securities | Credit risk | AAA | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 9,728 | 8,579 |
Fair value through profit or loss | Debt securities | Credit risk | AA | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 14,208 | 14,006 |
Fair value through profit or loss | Debt securities | Credit risk | A | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 19,089 | 19,603 |
Fair value through profit or loss | Debt securities | Credit risk | BBB | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 17,646 | 16,894 |
Fair value through profit or loss | Debt securities | Credit risk | BB and lower | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 731 | 885 |
Available-for-sale | Debt securities | Credit risk | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 13,041 | 12,652 |
Available-for-sale | Debt securities | Credit risk | AAA | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 5,919 | 4,870 |
Available-for-sale | Debt securities | Credit risk | AA | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 2,044 | 1,809 |
Available-for-sale | Debt securities | Credit risk | A | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 2,447 | 3,000 |
Available-for-sale | Debt securities | Credit risk | BBB | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 2,483 | 2,674 |
Available-for-sale | Debt securities | Credit risk | BB and lower | ||
Disclosure of external credit grades [line items] | ||
Financial assets | $ 148 | $ 299 |
Financial Instrument Risk Ma_13
Financial Instrument Risk Management - Mortgages and Loans by Credit Rating (Details) - CAD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of external credit grades [line items] | ||
Financial assets | $ 143,061 | $ 137,691 |
Mortgages | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 16,433 | 15,493 |
Mortgages | Credit risk | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 16,433 | 15,493 |
Mortgages | Credit risk | Insured | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 3,537 | 3,171 |
Mortgages | Credit risk | AAA | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 3 | 4 |
Mortgages | Credit risk | AA | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 2,209 | 1,716 |
Mortgages | Credit risk | A | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 4,841 | 4,304 |
Mortgages | Credit risk | BBB | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 4,925 | 5,060 |
Mortgages | Credit risk | BB and lower | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 912 | 1,227 |
Mortgages | Credit risk | Impaired | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 6 | 11 |
Loans | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 30,389 | 27,312 |
Loans | Credit risk | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 30,389 | 27,312 |
Loans | Credit risk | AAA | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 341 | 400 |
Loans | Credit risk | AA | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 4,659 | 3,670 |
Loans | Credit risk | A | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 11,483 | 11,626 |
Loans | Credit risk | BBB | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 12,766 | 10,745 |
Loans | Credit risk | BB and lower | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 1,097 | 810 |
Loans | Credit risk | Impaired | ||
Disclosure of external credit grades [line items] | ||
Financial assets | $ 43 | $ 61 |
Financial Instrument Risk Ma_14
Financial Instrument Risk Management - Derivative Financial Instruments by Counterparty Credit Rating (Details) - CAD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of external credit grades [line items] | ||
Financial assets | $ 143,061 | $ 137,691 |
Derivative assets | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 1,112 | 1,478 |
Derivative assets | Over-the-counter derivative contracts | Credit risk | Gross positive replacement cost | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 1,085 | 1,451 |
Derivative assets | Over-the-counter derivative contracts | Credit risk | Gross positive replacement cost | AA | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 289 | 113 |
Derivative assets | Over-the-counter derivative contracts | Credit risk | Gross positive replacement cost | A | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 750 | 872 |
Derivative assets | Over-the-counter derivative contracts | Credit risk | Gross positive replacement cost | BBB | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 46 | 466 |
Derivative assets | Over-the-counter derivative contracts | Credit risk | Impact of master netting agreements | ||
Disclosure of external credit grades [line items] | ||
Financial assets | (768) | (694) |
Derivative assets | Over-the-counter derivative contracts | Credit risk | Impact of master netting agreements | AA | ||
Disclosure of external credit grades [line items] | ||
Financial assets | (252) | (95) |
Derivative assets | Over-the-counter derivative contracts | Credit risk | Impact of master netting agreements | A | ||
Disclosure of external credit grades [line items] | ||
Financial assets | (507) | (589) |
Derivative assets | Over-the-counter derivative contracts | Credit risk | Impact of master netting agreements | BBB | ||
Disclosure of external credit grades [line items] | ||
Financial assets | (9) | (10) |
Derivative assets | Over-the-counter derivative contracts | Credit risk | Net replacement cost | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 317 | 757 |
Derivative assets | Over-the-counter derivative contracts | Credit risk | Net replacement cost | AA | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 37 | 18 |
Derivative assets | Over-the-counter derivative contracts | Credit risk | Net replacement cost | A | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 243 | 283 |
Derivative assets | Over-the-counter derivative contracts | Credit risk | Net replacement cost | BBB | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 37 | 456 |
Derivative assets | Exchange-traded derivative contracts | ||
Disclosure of external credit grades [line items] | ||
Financial assets | $ 27 | $ 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, 2018 | Dec. 31, 2017 |
Disclosure of external credit grades [line items] | ||
Financial assets | $ 143,061 | $ 137,691 |
Financial assets, at fair value | 144,673 | 140,292 |
Credit default swap contract | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 1,356 | 1,121 |
Financial assets, at fair value | 23 | 25 |
Single name CDS contracts | Credit default swap contract | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 1,333 | 1,097 |
Financial assets, at fair value | 23 | 25 |
Single name CDS contracts | AA | Credit default swap contract | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 48 | 67 |
Financial assets, at fair value | 1 | 1 |
Single name CDS contracts | A | Credit default swap contract | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 611 | 584 |
Financial assets, at fair value | 9 | 15 |
Single name CDS contracts | BBB | Credit default swap contract | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 674 | 446 |
Financial assets, at fair value | 13 | 9 |
CDS index contracts | Credit default swap contract | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 23 | 24 |
Financial assets, at fair value | $ 0 | $ 0 |
Financial Instrument Risk Ma_16
Financial Instrument Risk Management - Reinsurance Counterparties Exposure by Credit Rating (Details) - CAD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of external credit grades [line items] | ||
Financial assets | $ 143,061 | $ 137,691 |
Total Reinsurance assets | 4,141 | 4,028 |
Credit risk | Gross exposure | ||
Disclosure of external credit grades [line items] | ||
Less: negative reinsurance assets | 1,272 | 874 |
Total Reinsurance assets | 4,141 | 4,028 |
Credit risk | Gross exposure | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 5,413 | 4,902 |
Credit risk | Gross exposure | AA | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 1,442 | 1,241 |
Credit risk | Gross exposure | A | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 1,760 | 1,632 |
Credit risk | Gross exposure | BBB | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 203 | 157 |
Credit risk | Gross exposure | BB | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 1,677 | 1,539 |
Credit risk | Gross exposure | B | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 0 | 257 |
Credit risk | Gross exposure | CCC | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 252 | 0 |
Credit risk | Gross exposure | Not rated | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 79 | 76 |
Credit risk | Collateral | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 1,985 | 1,820 |
Credit risk | Collateral | AA | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 6 | 4 |
Credit risk | Collateral | A | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 83 | 99 |
Credit risk | Collateral | BBB | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 132 | 116 |
Credit risk | Collateral | BB | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 1,617 | 1,455 |
Credit risk | Collateral | B | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 0 | 74 |
Credit risk | Collateral | CCC | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 72 | 0 |
Credit risk | Collateral | Not rated | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 75 | 72 |
Credit risk | Net exposure | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 3,428 | 3,082 |
Credit risk | Net exposure | AA | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 1,436 | 1,237 |
Credit risk | Net exposure | A | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 1,677 | 1,533 |
Credit risk | Net exposure | BBB | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 71 | 41 |
Credit risk | Net exposure | BB | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 60 | 84 |
Credit risk | Net exposure | B | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 0 | 183 |
Credit risk | Net exposure | CCC | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Financial assets | 180 | 0 |
Credit risk | Net exposure | Not rated | Reinsurance Assets | ||
Disclosure of external credit grades [line items] | ||
Financial assets | $ 4 | $ 4 |
Financial Instrument Risk Ma_17
Financial Instrument Risk Management - Past Due and Impaired Mortgages and Loans (Details) - CAD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | $ 143,061 | $ 137,691 |
Mortgages | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 16,433 | 15,493 |
Mortgages | Gross carrying value | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 16,458 | 15,515 |
Mortgages | Allowance for losses | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 25 | 22 |
Mortgages | Not past due | Gross carrying value | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 16,427 | 15,482 |
Mortgages | Not past due | Allowance for losses | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Mortgages | Past due | Gross carrying value | Past due less than 90 days | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Mortgages | Past due | Gross carrying value | Later than three months [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Mortgages | Past due | Allowance for losses | Past due less than 90 days | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Mortgages | Past due | Allowance for losses | Later than three months [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Mortgages | Impaired | Gross carrying value | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 31 | 33 |
Mortgages | Impaired | Allowance for losses | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 25 | 22 |
Loans | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 30,389 | 27,312 |
Loans | Gross carrying value | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 30,439 | 27,340 |
Loans | Allowance for losses | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 50 | 28 |
Loans | Not past due | Gross carrying value | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 30,332 | 27,180 |
Loans | Not past due | Allowance for losses | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Loans | Past due | Gross carrying value | Past due less than 90 days | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 14 | 71 |
Loans | Past due | Gross carrying value | Later than three months [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Loans | Past due | Allowance for losses | Past due less than 90 days | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Loans | Past due | Allowance for losses | Later than three months [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Loans | Impaired | Gross carrying value | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 93 | 89 |
Loans | Impaired | Allowance for losses | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 50 | 28 |
Mortgages and loans | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 46,822 | 42,805 |
Mortgages and loans | Gross carrying value | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 46,897 | 42,855 |
Mortgages and loans | Allowance for losses | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 75 | 50 |
Mortgages and loans | Not past due | Gross carrying value | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 46,759 | 42,662 |
Mortgages and loans | Not past due | Allowance for losses | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Mortgages and loans | Past due | Gross carrying value | Past due less than 90 days | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 14 | 71 |
Mortgages and loans | Past due | Gross carrying value | Later than three months [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Mortgages and loans | Past due | Allowance for losses | Past due less than 90 days | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Mortgages and loans | Past due | Allowance for losses | Later than three months [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 0 | 0 |
Mortgages and loans | Impaired | Gross carrying value | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | 124 | 122 |
Mortgages and loans | Impaired | Allowance for losses | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets | $ 75 | $ 50 |
Financial Instrument Risk Ma_18
Financial Instrument Risk Management - Changes in Allowances for Losses (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Mortgages | ||
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | ||
Allowance account for credit losses of financial assets, beginning balance | $ 22 | $ 23 |
Provision for (reversal of) losses | 3 | 0 |
Write-offs, net of recoveries, and other adjustments | (2) | 0 |
Foreign exchange rate movements | 2 | (1) |
Allowance account for credit losses of financial assets, ending balance | 25 | 22 |
Loans | ||
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | ||
Allowance account for credit losses of financial assets, beginning balance | 28 | 7 |
Provision for (reversal of) losses | 19 | 22 |
Write-offs, net of recoveries, and other adjustments | 0 | 0 |
Foreign exchange rate movements | 3 | (1) |
Allowance account for credit losses of financial assets, ending balance | 50 | 28 |
Mortgages and loans | ||
Reconciliation of changes in allowance account for credit losses of financial assets [abstract] | ||
Allowance account for credit losses of financial assets, beginning balance | 50 | 30 |
Provision for (reversal of) losses | 22 | 22 |
Write-offs, net of recoveries, and other adjustments | (2) | 0 |
Foreign exchange rate movements | 5 | (2) |
Allowance account for credit losses of financial assets, ending balance | $ 75 | $ 50 |
Financial Instrument Risk Ma_19
Financial Instrument Risk Management - Equities by Issuer Country (Details) - CAD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | $ 143,061 | $ 137,691 |
Other invested assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 4,634 | 6,020 |
Other invested assets | Available-for-sale | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 620 | 942 |
Other invested assets | Fair value through profit or loss | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 4,014 | 5,078 |
Canada | Other invested assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 2,666 | 3,335 |
Canada | Other invested assets | Available-for-sale | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 15 | 53 |
Canada | Other invested assets | Fair value through profit or loss | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 2,651 | 3,282 |
United States | Other invested assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 896 | 1,436 |
United States | Other invested assets | Available-for-sale | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 388 | 671 |
United States | Other invested assets | Fair value through profit or loss | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 508 | 765 |
United Kingdom | Other invested assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 126 | 135 |
United Kingdom | Other invested assets | Available-for-sale | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 5 | 5 |
United Kingdom | Other invested assets | Fair value through profit or loss | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 121 | 130 |
Other countries | Other invested assets | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 946 | 1,114 |
Other countries | Other invested assets | Available-for-sale | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | 212 | 213 |
Other countries | Other invested assets | Fair value through profit or loss | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets | $ 734 | $ 901 |
Risk Categories - Interest Rate
Risk Categories - Interest Rate and Equity Market Sensitivities (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Interest rate risk | ||
Disclosure of detailed information about financial instruments [line items] | ||
Reasonably possible 100 basis point change in risk variable | 1.00% | |
Reasonably possible 50 basis point change in risk variable | 0.50% | 0.50% |
Interest Rate Sensitivity, Potential Impact On Net Income [Abstract] | ||
50 basis point decrease | $ (100) | $ (100) |
50 basis point increase | 50 | 50 |
Interest Rate Sensitivity, Potential Impact On Other Comprehensive Income [Abstract] | ||
50 basis point decrease | 250 | 250 |
50 basis point increase | (250) | (250) |
Equity Markets Sensitivity, Potential Impact On Other Comprehensive Income [Abstract] | ||
Level of rounding used in sensitivity analysis | $ 50 | $ 50 |
Equity price risk | ||
Disclosure of detailed information about financial instruments [line items] | ||
Reasonably possible 25% change in risk variable | 25.00% | 25.00% |
Reasonably possible 10% change in risk variable | 10.00% | 10.00% |
Equity Market Sensitivity, Potential Impact On Net Income [Abstract] | ||
25% decrease | $ (300) | $ (300) |
10% decrease | (100) | (100) |
10% increase | 100 | 100 |
25% increase | 250 | 300 |
Equity Markets Sensitivity, Potential Impact On Other Comprehensive Income [Abstract] | ||
25% decrease | (100) | (200) |
10% decrease | (50) | (50) |
10% increase | 50 | 50 |
25% increase | 100 | 200 |
Level of rounding used in sensitivity analysis | $ 50 | $ 50 |
Bottom of range | Interest rate risk | ||
Equity Markets Sensitivity, Potential Impact On Other Comprehensive Income [Abstract] | ||
Interval to determine impact of re-balancing interest rate hedges for dynamic hedging programs | 0.10% | 0.10% |
Bottom of range | Equity price risk | ||
Equity Markets Sensitivity, Potential Impact On Other Comprehensive Income [Abstract] | ||
Interval to determine impact of re-balancing equity hedges for dynamic hedging programs | 2.00% | 2.00% |
Top of range | Equity price risk | ||
Equity Markets Sensitivity, Potential Impact On Other Comprehensive Income [Abstract] | ||
Interval to determine impact of re-balancing equity hedges for dynamic hedging programs | 5.00% | 5.00% |
Equity hedge interval | 25.00% | 25.00% |
Risk Categories - Credit and Sw
Risk Categories - Credit and Swap Spread Sensitivities (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Credit spread sensitivities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Reasonably possible change in risk variable | 50.00% | |
Credit Spread Sensitivities [Abstract] | ||
50 basis point decrease | $ (75) | $ (100) |
50 basis point increase | 75 | 100 |
Swap Spread Sensitivities [Abstract] | ||
Level of rounding used in sensitivity analysis | $ 25 | $ 25 |
Period after which credit spread reverts to long-term insurance contract liability | 5 years | 5 years |
Swap spread sensitivities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Reasonably possible change in risk variable | 20.00% | |
Swap Spread Sensitivities [Abstract] | ||
20 basis point decrease | $ 25 | $ 25 |
20 basis point increase | (25) | (25) |
Level of rounding used in sensitivity analysis | $ 25 | $ 25 |
Risk Categories - Financial Lia
Risk Categories - Financial Liabilities and Contractual Obligations (Details) - CAD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | $ 313,219 | $ 287,646 |
Contractual loans, equities and mortgages | 3,800 | 2,933 |
Operating leases | 1,056 | 923 |
Total contractual commitments | 4,856 | 3,856 |
Under 1 Year | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 20,523 | 18,439 |
Contractual loans, equities and mortgages | 1,157 | 1,138 |
Operating leases | 138 | 116 |
Total contractual commitments | 1,295 | 1,254 |
1 year to 3 years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 9,635 | 8,704 |
Contractual loans, equities and mortgages | 1,044 | 820 |
Operating leases | 230 | 207 |
Total contractual commitments | 1,274 | 1,027 |
3 years to 5 years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 9,326 | 8,916 |
Contractual loans, equities and mortgages | 536 | 214 |
Operating leases | 182 | 148 |
Total contractual commitments | 718 | 362 |
Over 5 years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 273,735 | 251,587 |
Contractual loans, equities and mortgages | 1,063 | 761 |
Operating leases | 506 | 452 |
Total contractual commitments | 1,569 | 1,213 |
Insurance and investment contract liabilities | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 293,237 | 267,704 |
Insurance and investment contract liabilities | Under 1 Year | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 11,950 | 10,242 |
Insurance and investment contract liabilities | 1 year to 3 years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 8,388 | 7,552 |
Insurance and investment contract liabilities | 3 years to 5 years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 8,653 | 7,729 |
Insurance and investment contract liabilities | Over 5 years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 264,246 | 242,181 |
Senior debentures and unsecured financing | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 6,108 | 5,518 |
Senior debentures and unsecured financing | Under 1 Year | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 438 | 120 |
Senior debentures and unsecured financing | 1 year to 3 years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 556 | 516 |
Senior debentures and unsecured financing | 3 years to 5 years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 234 | 489 |
Senior debentures and unsecured financing | Over 5 years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 4,880 | 4,393 |
Subordinated Debt | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 4,241 | 4,857 |
Subordinated Debt | Under 1 Year | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 103 | 126 |
Subordinated Debt | 1 year to 3 years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 207 | 251 |
Subordinated Debt | 3 years to 5 years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 207 | 251 |
Subordinated Debt | Over 5 years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 3,724 | 4,229 |
Bond repurchase agreements | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 1,824 | 1,976 |
Bond repurchase agreements | Under 1 Year | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 1,824 | 1,976 |
Bond repurchase agreements | 1 year to 3 years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 0 | 0 |
Bond repurchase agreements | 3 years to 5 years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 0 | 0 |
Bond repurchase agreements | Over 5 years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 0 | 0 |
Accounts payable and accrued expenses | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 5,971 | 5,814 |
Accounts payable and accrued expenses | Under 1 Year | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 5,971 | 5,814 |
Accounts payable and accrued expenses | 1 year to 3 years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 0 | 0 |
Accounts payable and accrued expenses | 3 years to 5 years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 0 | 0 |
Accounts payable and accrued expenses | Over 5 years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 0 | 0 |
Secured borrowings from mortgage securitization | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 1,621 | 1,513 |
Secured borrowings from mortgage securitization | Under 1 Year | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 182 | 81 |
Secured borrowings from mortgage securitization | 1 year to 3 years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 435 | 333 |
Secured borrowings from mortgage securitization | 3 years to 5 years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 187 | 398 |
Secured borrowings from mortgage securitization | Over 5 years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 817 | 701 |
Borrowed funds | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 217 | 264 |
Borrowed funds | Under 1 Year | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 55 | 80 |
Borrowed funds | 1 year to 3 years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 49 | 52 |
Borrowed funds | 3 years to 5 years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | 45 | 49 |
Borrowed funds | Over 5 years | ||
Disclosure of detailed information about financial instruments [line items] | ||
Non-derivative financial liabilities, undiscounted cash flows | $ 68 | $ 83 |
Insurance Risk Management - Nar
Insurance Risk Management - Narrative (Details) $ in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018CAD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017CAD ($) | |
Single Life Insurance Contracts In Canada | |||
Disclosure of types of insurance contracts [line items] | |||
Reinsurance retention limit | $ 25 | ||
Single Life Insurance Contracts Outside Of Canada | |||
Disclosure of types of insurance contracts [line items] | |||
Reinsurance retention limit | $ 25 | ||
Survivorship Life Insurance Contracts In Canada | |||
Disclosure of types of insurance contracts [line items] | |||
Reinsurance retention limit | $ 30 | ||
Survivorship Life Insurance Contracts Outside Of Canada | |||
Disclosure of types of insurance contracts [line items] | |||
Reinsurance retention limit | $ 30 | ||
Mortality Risk | Life Insurance Contracts Where Higher Mortality Is Financially Adverse | |||
Disclosure of types of insurance contracts [line items] | |||
Reasonably possible increase (decrease) in risk variable, percent | 2.00% | 2.00% | 2.00% |
Increase (decrease) in net income due to change in corresponding risk variable | $ (35) | $ (55) | |
Increase (decrease) in equity due to change in corresponding risk variable | $ (35) | $ (55) | |
Morbidity Risk | Life Insurance Contracts Where Morbidity Is Significant Assumption | |||
Disclosure of types of insurance contracts [line items] | |||
Reasonably possible increase (decrease) in risk variable, percent | 5.00% | 5.00% | 5.00% |
Increase (decrease) in net income due to change in corresponding risk variable | $ (185) | $ (175) | |
Increase (decrease) in equity due to change in corresponding risk variable | $ (185) | $ (175) | |
Longevity Risk | Life Insurance Annuities Contracts | |||
Disclosure of types of insurance contracts [line items] | |||
Reasonably possible increase (decrease) in risk variable, percent | (2.00%) | (2.00%) | (2.00%) |
Increase (decrease) in net income due to change in corresponding risk variable | $ (120) | $ (120) | |
Increase (decrease) in equity due to change in corresponding risk variable | $ (120) | $ (120) | |
Policyholder Behaviour Risk | Individual Life Insurance Contracts Where Fewer Terminations Are Financially Adverse | |||
Disclosure of types of insurance contracts [line items] | |||
Reasonably possible increase (decrease) in risk variable, percent | (10.00%) | (10.00%) | (10.00%) |
Increase (decrease) in net income due to change in corresponding risk variable | $ (250) | $ (240) | |
Increase (decrease) in equity due to change in corresponding risk variable | $ (250) | $ (240) | |
Policyholder Behaviour Risk | Individual Life Insurance Contracts Where More Terminations Are Financially Adverse | |||
Disclosure of types of insurance contracts [line items] | |||
Reasonably possible increase (decrease) in risk variable, percent | 10.00% | 10.00% | 10.00% |
Increase (decrease) in net income due to change in corresponding risk variable | $ (195) | $ (175) | |
Increase (decrease) in equity due to change in corresponding risk variable | $ (195) | $ (175) | |
Expense Risk | Life insurance contracts | |||
Disclosure of types of insurance contracts [line items] | |||
Reasonably possible increase (decrease) in risk variable, percent | 5.00% | 5.00% | 5.00% |
Increase (decrease) in net income due to change in corresponding risk variable | $ (175) | $ (160) | |
Increase (decrease) in equity due to change in corresponding risk variable | $ (175) | $ (160) |
Other Assets - Schedule of Othe
Other Assets - Schedule of Other Assets (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Subclassifications of assets, liabilities and equities [abstract] | ||
Accounts receivable | $ 1,451 | $ 1,579 |
Investment income due and accrued | 1,131 | 1,078 |
Property and equipment | 621 | 624 |
Deferred acquisition costs | 130 | 160 |
Prepaid expenses | 309 | 282 |
Premium receivable | 567 | 522 |
Accrued benefit assets | 184 | 82 |
Other | 105 | 81 |
Other assets | 4,498 | 4,408 |
Amortization expense, deferred acquisition costs | $ 33 | $ 53 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill Acquired by Segment (Details) - Goodwill - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Balance, Beginning | $ 5,183 | $ 5,317 |
Acquisitions | 41 | 16 |
Foreign exchange rate movements | 188 | (150) |
Balance, Ending | 5,412 | 5,183 |
SLF Canada | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Balance, Beginning | 2,573 | 2,573 |
Acquisitions | 34 | 0 |
Foreign exchange rate movements | 0 | 0 |
Balance, Ending | 2,607 | 2,573 |
SLF U.S. | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Balance, Beginning | 1,043 | 1,112 |
Acquisitions | 7 | 0 |
Foreign exchange rate movements | 88 | (69) |
Balance, Ending | 1,138 | 1,043 |
SLF Asia | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Balance, Beginning | 655 | 686 |
Acquisitions | 0 | 16 |
Foreign exchange rate movements | 50 | (47) |
Balance, Ending | 705 | 655 |
SLF Asset Management | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Balance, Beginning | 729 | 767 |
Acquisitions | 0 | 0 |
Foreign exchange rate movements | 46 | (38) |
Balance, Ending | 775 | 729 |
Corporate | ||
Reconciliation of changes in intangible assets and goodwill [abstract] | ||
Balance, Beginning | 183 | 179 |
Acquisitions | 0 | 0 |
Foreign exchange rate movements | 4 | 4 |
Balance, Ending | $ 187 | $ 183 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Goodwill Allocated to CGUs (Details) - CAD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Goodwill impairment | $ 0 | $ 0 | |
Goodwill | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Goodwill | 5,412,000,000 | 5,183,000,000 | $ 5,317,000,000 |
SLF Canada, Individual | Goodwill | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Goodwill | 1,100,000,000 | 1,066,000,000 | |
SLF Canada, Group retirement services | Goodwill | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Goodwill | 453,000,000 | 453,000,000 | |
SLF Canada, Group benefits | Goodwill | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Goodwill | 1,054,000,000 | 1,054,000,000 | |
SLF US, Employee benefits group | Goodwill | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Goodwill | 1,138,000,000 | 1,043,000,000 | |
SLF Asia | Goodwill | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Goodwill | 705,000,000 | 655,000,000 | |
SLF Asset Management, MFS | Goodwill | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Goodwill | 515,000,000 | 481,000,000 | |
SLF Asset Management, SLIM | Goodwill | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Goodwill | 260,000,000 | 248,000,000 | |
Corporate, UK | Goodwill | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Goodwill | $ 187,000,000 | $ 183,000,000 | |
Bottom of range | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Price-to-earnings multiples used for valuation | 10.5 | ||
Price-to-assets-under-management multiples used for valuation | 0.60% | ||
CGU discount rate | 9.00% | ||
Top of range | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Price-to-earnings multiples used for valuation | 11.5 | ||
Price-to-assets-under-management multiples used for valuation | 2.00% | ||
CGU discount rate | 12.50% | ||
Income approach | Bottom of range | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Future sales projection for valuation, in years | 10 years | ||
Income approach | Top of range | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Future sales projection for valuation, in years | 15 years |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Changes in Intangible Assets (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | $ 1,667 | |
Amortization charge for the year | 119 | $ 112 |
Intangible assets, ending balance | 1,779 | 1,667 |
Gross carrying amount | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | 2,406 | 2,351 |
Additions | 117 | 86 |
Acquisitions | 22 | 61 |
Disposals, intangible assets other than goodwill | 3 | |
Foreign exchange rate movements | 116 | (89) |
Intangible assets, ending balance | 2,661 | 2,406 |
Accumulated amortization and impairment losses | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | (739) | (648) |
Disposals, intangible assets other than goodwill | (3) | |
Foreign exchange rate movements | (24) | 18 |
Amortization charge for the year | (119) | (112) |
Intangible assets, ending balance | (882) | (739) |
Indefinite life intangible assets | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | 621 | |
Intangible assets, ending balance | 669 | 621 |
Indefinite life intangible assets | Gross carrying amount | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | 625 | 661 |
Additions | 0 | 0 |
Acquisitions | 3 | 0 |
Disposals, intangible assets other than goodwill | 0 | |
Foreign exchange rate movements | 45 | (36) |
Intangible assets, ending balance | 673 | 625 |
Indefinite life intangible assets | Accumulated amortization and impairment losses | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | (4) | (4) |
Disposals, intangible assets other than goodwill | 0 | |
Foreign exchange rate movements | 0 | 0 |
Amortization charge for the year | 0 | 0 |
Intangible assets, ending balance | (4) | (4) |
Finite life, Internally generated software | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | 241 | |
Intangible assets, ending balance | 305 | 241 |
Finite life, Internally generated software | Gross carrying amount | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | 579 | 518 |
Additions | 118 | 81 |
Acquisitions | 0 | 0 |
Disposals, intangible assets other than goodwill | 3 | |
Foreign exchange rate movements | 25 | (17) |
Intangible assets, ending balance | 722 | 579 |
Finite life, Internally generated software | Accumulated amortization and impairment losses | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | (338) | (291) |
Disposals, intangible assets other than goodwill | (3) | |
Foreign exchange rate movements | (13) | 9 |
Amortization charge for the year | (66) | (59) |
Intangible assets, ending balance | (417) | (338) |
Finite life, Other | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | 805 | |
Intangible assets, ending balance | 805 | 805 |
Finite life, Other | Gross carrying amount | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | 1,202 | 1,172 |
Additions | (1) | 5 |
Acquisitions | 19 | 61 |
Disposals, intangible assets other than goodwill | 0 | |
Foreign exchange rate movements | 46 | (36) |
Intangible assets, ending balance | 1,266 | 1,202 |
Finite life, Other | Accumulated amortization and impairment losses | ||
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Intangible assets, beginning balance | (397) | (353) |
Disposals, intangible assets other than goodwill | 0 | |
Foreign exchange rate movements | (11) | 9 |
Amortization charge for the year | (53) | (53) |
Intangible assets, ending balance | $ (461) | $ (397) |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Components of Intangible Assets (Details) - CAD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets | $ 1,779 | $ 1,667 |
Fund management contracts | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets | 669 | 621 |
Indefinite life intangible assets | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets | 669 | 621 |
Distribution, sales potential of field force | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets | 366 | 376 |
Client relationships and asset administration contracts | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets | 439 | 429 |
Internally generated software | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets | 305 | 241 |
Total finite life intangible assets | ||
Disclosure of detailed information about intangible assets [line items] | ||
Intangible assets | $ 1,110 | $ 1,046 |
Insurance Contract Liabilitie_3
Insurance Contract Liabilities and Investment Contract Liabilities - Insurance Contract and Other Policy Liabilities (Details) - CAD ($) $ in Millions | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | $ 121,923 | $ 117,785 | |
Individual participating life | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 34,607 | 34,391 | |
Individual non-participating life and health | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 37,528 | 35,028 | |
Group life and health | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 15,297 | 14,602 | |
Individual annuities | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 14,856 | 15,350 | |
Group annuities | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 12,614 | 11,720 | |
Insurance contract liabilities before other policy liabilities | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 114,902 | 111,091 | |
Policy liabilities | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 7,021 | 6,694 | |
SLF Canada | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 66,898 | 65,083 | |
SLF Canada | Individual participating life | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 21,095 | 20,918 | |
SLF Canada | Individual non-participating life and health | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 11,435 | 11,161 | |
SLF Canada | Group life and health | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 9,591 | 9,131 | |
SLF Canada | Individual annuities | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 9,267 | 9,178 | |
SLF Canada | Group annuities | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 12,461 | 11,607 | |
SLF Canada | Insurance contract liabilities before other policy liabilities | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 63,849 | 61,995 | |
SLF Canada | Policy liabilities | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 3,049 | 3,088 | |
SLF U.S. | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 26,186 | 24,410 | |
SLF U.S. | Individual participating life | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 5,785 | 5,582 | |
SLF U.S. | Individual non-participating life and health | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 13,239 | $ (10,000) | 12,024 |
SLF U.S. | Group life and health | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 5,674 | 5,427 | |
SLF U.S. | Individual annuities | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 25 | 25 | |
SLF U.S. | Group annuities | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 6 | 7 | |
SLF U.S. | Insurance contract liabilities before other policy liabilities | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 24,729 | 23,065 | |
SLF U.S. | Policy liabilities | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 1,457 | 1,345 | |
SLF Asia | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 21,525 | 20,257 | |
SLF Asia | Individual participating life | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 6,651 | 6,705 | |
SLF Asia | Individual non-participating life and health | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 12,463 | $ 0 | 11,449 |
SLF Asia | Group life and health | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 32 | 33 | |
SLF Asia | Individual annuities | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | (44) | (68) | |
SLF Asia | Group annuities | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 147 | 106 | |
SLF Asia | Insurance contract liabilities before other policy liabilities | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 19,249 | 18,225 | |
SLF Asia | Policy liabilities | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 2,276 | 2,032 | |
Corporate | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 7,314 | 8,035 | |
Corporate | Individual participating life | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 1,076 | 1,186 | |
Corporate | Individual non-participating life and health | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 391 | 394 | |
Corporate | Group life and health | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 0 | 11 | |
Corporate | Individual annuities | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 5,608 | 6,215 | |
Corporate | Group annuities | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 0 | 0 | |
Corporate | Insurance contract liabilities before other policy liabilities | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 7,075 | 7,806 | |
Corporate | Policy liabilities | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 239 | 229 | |
United Kingdom | Corporate | Individual participating life | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 980 | 1,089 | |
United Kingdom | Corporate | Individual non-participating life and health | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 240 | 250 | |
United Kingdom | Corporate | Individual annuities | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | 5,214 | 5,692 | |
United Kingdom | Corporate | Policy liabilities | |||
Disclosure of types of insurance contracts [line items] | |||
Insurance contract liabilities | $ 170 | $ 158 |
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, 2018 | Dec. 31, 2017 | |
Insurance contract liabilities | ||
Insurance contract liabilities, beginning balance | $ 117,785 | |
Insurance contract liabilities, change in balances on in-force policies | (3,094) | $ 2,757 |
Insurance contract liabilities, balances arising from new policies | 3,780 | 2,941 |
Insurance contract liabilities, method and assumption changes | (374) | (371) |
Insurance contract liabilities, increase (decrease) in Insurance contract liabilities and Reinsurance assets | 312 | 5,327 |
Insurance contract liabilities, foreign exchange rate movements | 3,499 | (2,647) |
Insurance contract liabilities, ending balance | 121,923 | 117,785 |
Reinsurance assets | ||
Reinsurance assets, beginning balance | 4,028 | |
Reinsurance assets, change in balances on in-force policies | (129) | (779) |
Reinsurance assets, change in balances arising from new policies | 128 | 156 |
Reinsurance assets, method and assumption changes | (96) | (198) |
Reinsurance assets, increase (decrease) in Insurance contract liabilities and Reinsurance assets | (97) | (821) |
Reinsurance assets, foreign exchange rate movements | 247 | (217) |
Reinsurance assets, ending balance | 4,141 | 4,028 |
Net Changes In Insurance Contract Liabilities And Reinsurance Assets [Abstract] | ||
Net insurance contract liabilities and reinsurance assets, beginning balance | 113,757 | |
Net change in balances on in-force policies | (2,965) | 3,536 |
Net balance arising from new policies | 3,652 | 2,785 |
Net method and assumption change | (278) | (173) |
Net increase (decrease) in Insurance contract liabilities and Reinsurance assets | 409 | 6,148 |
Net foreign exchange rate movement | 3,252 | (2,430) |
Net insurance contract liabilities and reinsurance assets, ending balance | 117,782 | 113,757 |
Balances before Other policy liabilities and assets | ||
Insurance contract liabilities | ||
Insurance contract liabilities, beginning balance | 111,091 | 108,411 |
Insurance contract liabilities, ending balance | 114,902 | 111,091 |
Reinsurance assets | ||
Reinsurance assets, beginning balance | 3,503 | 4,541 |
Reinsurance assets, ending balance | 3,653 | 3,503 |
Net Changes In Insurance Contract Liabilities And Reinsurance Assets [Abstract] | ||
Net insurance contract liabilities and reinsurance assets, beginning balance | 107,588 | 103,870 |
Net insurance contract liabilities and reinsurance assets, ending balance | 111,249 | 107,588 |
Other policy liabilities and assets | ||
Insurance contract liabilities | ||
Insurance contract liabilities, beginning balance | 6,694 | |
Insurance contract liabilities, ending balance | 7,021 | 6,694 |
Reinsurance assets | ||
Reinsurance assets, beginning balance | 525 | |
Reinsurance assets, ending balance | 488 | 525 |
Net Changes In Insurance Contract Liabilities And Reinsurance Assets [Abstract] | ||
Net insurance contract liabilities and reinsurance assets, beginning balance | 6,169 | |
Net insurance contract liabilities and reinsurance assets, ending balance | $ 6,533 | $ 6,169 |
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, 2018 | Dec. 31, 2017 | |
Disclosure of types of insurance contracts [line items] | ||
Net increase (decrease) before income taxes | $ (278) | $ (173) |
Mortality / Morbidity | ||
Disclosure of types of insurance contracts [line items] | ||
Net increase (decrease) before income taxes | (337) | (286) |
Lapse and other policyholder behaviour | ||
Disclosure of types of insurance contracts [line items] | ||
Net increase (decrease) before income taxes | 563 | 149 |
Expenses | ||
Disclosure of types of insurance contracts [line items] | ||
Net increase (decrease) before income taxes | 6 | 71 |
Investment returns | ||
Disclosure of types of insurance contracts [line items] | ||
Net increase (decrease) before income taxes | (331) | (62) |
Model enhancements and other | ||
Disclosure of types of insurance contracts [line items] | ||
Net increase (decrease) before income taxes | $ (179) | $ (45) |
Insurance Contract Liabilitie_6
Insurance Contract Liabilities and Investment Contract Liabilities - Investment Contract Liabilities (Details) - CAD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities (Note 10) | $ 3,164 | $ 3,082 |
Individual participating life | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities (Note 10) | 6 | 8 |
Individual non-participating life and health | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities (Note 10) | 257 | 263 |
Individual annuities | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities (Note 10) | 2,689 | 2,565 |
Group annuities | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities (Note 10) | 212 | 246 |
Investment contract liabilities with DPF | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities (Note 10) | 515 | 562 |
Investment contract liabilities without DPF | Measured at amortized cost | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities (Note 10) | 2,646 | 2,517 |
Investment contract liabilities without DPF | Measured at fair value | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities (Note 10) | 3 | 3 |
SLF Canada | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities (Note 10) | 2,646 | 2,517 |
SLF Canada | Individual participating life | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities (Note 10) | 0 | 0 |
SLF Canada | Individual non-participating life and health | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities (Note 10) | 0 | 0 |
SLF Canada | Individual annuities | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities (Note 10) | 2,646 | 2,517 |
SLF Canada | Group annuities | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities (Note 10) | 0 | 0 |
SLF Asia | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities (Note 10) | 466 | 506 |
SLF Asia | Individual participating life | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities (Note 10) | 0 | 0 |
SLF Asia | Individual non-participating life and health | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities (Note 10) | 254 | 260 |
SLF Asia | Individual annuities | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities (Note 10) | 0 | 0 |
SLF Asia | Group annuities | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities (Note 10) | 212 | 246 |
Corporate | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities (Note 10) | 52 | 59 |
Corporate | Individual participating life | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities (Note 10) | 6 | 8 |
Corporate | Individual non-participating life and health | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities (Note 10) | 3 | 3 |
Corporate | Individual annuities | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities (Note 10) | 43 | 48 |
Corporate | Group annuities | ||
Disclosure of financial liabilities [line items] | ||
Investment contract liabilities (Note 10) | $ 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, 2018 | Dec. 31, 2017 | |
Measured at fair value | ||
Reconciliation Of Changes In Financial Liabilities [Roll Forward] | ||
Investment contract liabilities, beginning balance | $ 3 | $ 3 |
Deposits | 0 | 0 |
Interest | 0 | 0 |
Withdrawals | 0 | 0 |
Fees | 0 | 0 |
Other | 0 | 0 |
Change in assumptions | 0 | 0 |
Investment contract liabilities, ending balance | 3 | 3 |
Measured at amortized cost | ||
Reconciliation Of Changes In Financial Liabilities [Roll Forward] | ||
Investment contract liabilities, beginning balance | 2,517 | 2,305 |
Deposits | 483 | 470 |
Interest | 53 | 47 |
Withdrawals | (420) | (322) |
Fees | (8) | (5) |
Other | 21 | 19 |
Change in assumptions | 0 | 3 |
Investment contract liabilities, ending balance | $ 2,646 | $ 2,517 |
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, 2018 | Dec. 31, 2017 | |
Reconciliation Of Changes In Financial Liabilities [Roll Forward] | ||
Investment contract liabilities, change in balances on in-force policies | $ (3,094) | $ 2,757 |
Investment contract liabilities, increase (decrease) in Insurance contract liabilities and Reinsurance assets | 312 | 5,327 |
Investment contract liabilities with DPF | ||
Reconciliation Of Changes In Financial Liabilities [Roll Forward] | ||
Investment contract liabilities, beginning balance | 562 | 605 |
Investment contract liabilities, change in balances on in-force policies | (84) | (10) |
Investment contract liabilities, balances arising from new policies | 0 | 1 |
Investment contract liabilities, increase (decrease) in Insurance contract liabilities and Reinsurance assets | (84) | (9) |
Investment contract liabilities, foreign exchange rate movements | 37 | (34) |
Investment contract liabilities, ending balance | $ 515 | $ 562 |
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, 2018 | Dec. 31, 2017 | |
Insurance Contracts [Abstract] | ||
Maturities and surrenders | $ 2,609 | $ 2,389 |
Annuity payments | 1,876 | 1,849 |
Death and disability benefits | 3,948 | 3,836 |
Health benefits | 6,421 | 6,079 |
Policyholder dividends and interest on claims and deposits | 1,132 | 1,200 |
Gross claims and benefits paid | $ 15,986 | $ 15,353 |
Insurance Contract Liabiliti_10
Insurance Contract Liabilities and Investment Contract Liabilities - Total Assets Supporting Total Liabilities And Equity (Details) - CAD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | $ 168,765 | $ 162,720 |
Debt securities | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 74,443 | 72,619 |
Equity securities | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 4,634 | 6,020 |
Mortgages and loans | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 46,822 | 42,805 |
Investment properties | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 7,157 | 7,067 |
Other | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 35,709 | 34,209 |
Individual participating life | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 39,292 | 38,656 |
Individual participating life | Debt securities | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 19,624 | 18,855 |
Individual participating life | Equity securities | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 2,557 | 3,190 |
Individual participating life | Mortgages and loans | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 7,978 | 7,458 |
Individual participating life | Investment properties | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 4,736 | 4,645 |
Individual participating life | Other | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 4,397 | 4,508 |
Individual non-participating life and health | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 45,117 | 42,690 |
Individual non-participating life and health | Debt securities | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 18,720 | 18,560 |
Individual non-participating life and health | Equity securities | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 1,303 | 1,720 |
Individual non-participating life and health | Mortgages and loans | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 14,398 | 12,360 |
Individual non-participating life and health | Investment properties | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 1,638 | 1,348 |
Individual non-participating life and health | Other | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 9,058 | 8,702 |
Group life and health | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 18,440 | 17,542 |
Group life and health | Debt securities | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 6,271 | 6,003 |
Group life and health | Equity securities | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 70 | 73 |
Group life and health | Mortgages and loans | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 9,217 | 8,799 |
Group life and health | Investment properties | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 0 | 0 |
Group life and health | Other | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 2,882 | 2,667 |
Individual annuities | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 18,695 | 18,860 |
Individual annuities | Debt securities | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 11,918 | 12,001 |
Individual annuities | Equity securities | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 49 | 50 |
Individual annuities | Mortgages and loans | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 5,769 | 5,506 |
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 | 959 | 1,303 |
Group annuities | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 13,603 | 12,499 |
Group annuities | Debt securities | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 6,448 | 6,076 |
Group annuities | Equity securities | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 35 | 45 |
Group annuities | Mortgages and loans | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 6,298 | 5,840 |
Group annuities | Investment properties | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 0 | 0 |
Group annuities | Other | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 822 | 538 |
Equity and other | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 33,618 | 32,473 |
Equity and other | Debt securities | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 11,462 | 11,124 |
Equity and other | Equity securities | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 620 | 942 |
Equity and other | Mortgages and loans | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 3,162 | 2,842 |
Equity and other | Investment properties | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | 783 | 1,074 |
Equity and other | Other | ||
Disclosure of types of insurance contracts [line items] | ||
Total general fund assets | $ 17,591 | $ 16,491 |
Reinsurance - Schedule of Reins
Reinsurance - Schedule of Reinsurance Assets (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | $ 4,141,000,000 | $ 4,028,000,000 |
Reinsurance assets before other policy assets | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | 3,653,000,000 | 3,503,000,000 |
Individual participating life | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | 210,000,000 | 178,000,000 |
Individual non-participating life and health | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | 928,000,000 | 1,033,000,000 |
Group life and health | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | 2,208,000,000 | 1,970,000,000 |
Individual annuities | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | 186,000,000 | 195,000,000 |
Group annuities | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | 121,000,000 | 127,000,000 |
Other policy liabilities and assets | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | 488,000,000 | 525,000,000 |
SLF Canada | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | 374,000,000 | 687,000,000 |
SLF Canada | Reinsurance assets before other policy assets | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | 294,000,000 | 602,000,000 |
SLF Canada | Individual participating life | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | 20,000,000 | 4,000,000 |
SLF Canada | Individual non-participating life and health | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | (205,000,000) | 129,000,000 |
SLF Canada | Group life and health | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | 358,000,000 | 342,000,000 |
SLF Canada | Individual annuities | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | 0 | 0 |
SLF Canada | Group annuities | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | 121,000,000 | 127,000,000 |
SLF Canada | Other policy liabilities and assets | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | 80,000,000 | 85,000,000 |
SLF U.S. | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | 3,241,000,000 | 2,755,000,000 |
SLF U.S. | Reinsurance assets before other policy assets | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | 2,934,000,000 | 2,402,000,000 |
SLF U.S. | Individual participating life | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | 10,000,000 | (33,000,000) |
SLF U.S. | Individual non-participating life and health | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | 1,076,000,000 | 809,000,000 |
SLF U.S. | Group life and health | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | 1,848,000,000 | 1,626,000,000 |
SLF U.S. | Individual annuities | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | 0 | 0 |
SLF U.S. | Group annuities | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | 0 | 0 |
SLF U.S. | Other policy liabilities and assets | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | 307,000,000 | 353,000,000 |
SLF Asia | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | 260,000,000 | 314,000,000 |
SLF Asia | Reinsurance assets before other policy assets | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | 218,000,000 | 282,000,000 |
SLF Asia | Individual participating life | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | 180,000,000 | 207,000,000 |
SLF Asia | Individual non-participating life and health | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | 36,000,000 | 73,000,000 |
SLF Asia | Group life and health | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | 2,000,000 | 2,000,000 |
SLF Asia | Individual annuities | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | 0 | 0 |
SLF Asia | Group annuities | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | 0 | 0 |
SLF Asia | Other policy liabilities and assets | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | 42,000,000 | 32,000,000 |
Corporate | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | 266,000,000 | 272,000,000 |
Corporate | Reinsurance assets before other policy assets | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | 207,000,000 | 217,000,000 |
Corporate | Individual participating life | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | 0 | 0 |
Corporate | Individual non-participating life and health | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | 21,000,000 | 22,000,000 |
Corporate | Group life and health | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | 0 | 0 |
Corporate | Individual annuities | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | 186,000,000 | 195,000,000 |
Corporate | Group annuities | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | 0 | 0 |
Corporate | Other policy liabilities and assets | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | 59,000,000 | 55,000,000 |
United Kingdom | Corporate | Individual non-participating life and health | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | 21,000,000 | 22,000,000 |
United Kingdom | Corporate | Individual annuities | ||
Disclosure of types of insurance contracts [line items] | ||
Total Reinsurance assets | 47,000,000 | 58,000,000 |
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, 2018 | Dec. 31, 2017 | |
Insurance Contracts [Abstract] | ||
Recovered claims and benefits | $ 1,839 | $ 3,704 |
Commissions | 74 | 85 |
Reserve adjustments | 25 | 224 |
Operating expenses and other | (83) | (360) |
Reinsurance (expenses) recoveries | $ 2,021 | $ 4,373 |
Other Liabilities - Schedule of
Other Liabilities - Schedule of Other Liabilities (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about borrowings [line items] | ||
Accounts payable | $ 2,045,000,000 | $ 1,972,000,000 |
Bank overdrafts and cash pooling | 104,000,000 | 140,000,000 |
Repurchase agreements | 1,824,000,000 | 1,976,000,000 |
Accrued expenses and taxes | 3,137,000,000 | 2,927,000,000 |
Borrowed funds(1) | 188,000,000 | 227,000,000 |
Senior financing(2) | 2,066,000,000 | 1,905,000,000 |
Accrued benefit liability | 651,000,000 | 710,000,000 |
Secured borrowings from mortgage securitization | 1,453,000,000 | 1,355,000,000 |
Other | 685,000,000 | 775,000,000 |
Total other liabilities | 12,153,000,000 | 11,987,000,000 |
Borrowed Funds | ||
Disclosure of detailed information about borrowings [line items] | ||
Foreign exchange rate movements | 1,000,000 | (2,000,000) |
Net cash flow changes | (40,000,000) | (45,000,000) |
Variable Principal Floating Rate Certificate | ||
Disclosure of detailed information about borrowings [line items] | ||
Foreign exchange rate movements | 161,000,000 | (129,000,000) |
Net cash flow changes | $ 0 | $ 0 |
Other Liabilities - Schedule _2
Other Liabilities - Schedule of Borrowings (Details) - CAD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about borrowings [line items] | ||
Borrowed funds | $ 188 | $ 227 |
Encumbrances on real estate, Maturing in 2033 | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowed funds | 177 | 206 |
Encumbrances on real estate in US Dollars, Maturing in 2020 | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowed funds | $ 11 | $ 21 |
Other Liabilities - Narrative (
Other Liabilities - Narrative (Details) | Nov. 08, 2007USD ($) | Dec. 31, 2018CAD ($) | Dec. 31, 2017CAD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Disclosure of information about consolidated structured entities [line items] | ||||||
Maximum borrowing capacity | $ 891,000,000 | $ 835,000,000 | ||||
Interest expense | 305,000,000 | 303,000,000 | ||||
Borrowed Funds | ||||||
Disclosure of information about consolidated structured entities [line items] | ||||||
Interest expense on borrowings | 10,000,000 | 13,000,000 | ||||
Variable Principal Floating Rate Certificate | ||||||
Disclosure of information about consolidated structured entities [line items] | ||||||
Interest expense | 57,000,000 | 36,000,000 | ||||
Financial liabilities, at fair value | $ 1,879,000,000 | $ 1,776,000,000 | ||||
Variable Principal Floating Rate Certificate | Consolidated structured entities | ||||||
Disclosure of information about consolidated structured entities [line items] | ||||||
Proceeds from borrowings | $ 1,000,000,000 | $ 515,000,000 | ||||
Maximum borrowing capacity | $ 2,500,000,000 | |||||
Borrowings term | 1 year | |||||
Collateral posted per financing agreement | $ 0 | $ 0 |
Senior Debentures and Innovat_3
Senior Debentures and Innovative Capital Instruments - Senior Debentures (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about borrowings [line items] | ||
Principal amount | $ 700 | |
SLF Inc. Series D Senior Debentures Issued June 30, 2009 | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest rate | 5.70% | |
Borrowings outstanding | $ 300 | $ 300 |
SLF Inc. Series E Senior Debentures Issued August 23, 2011 | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest rate | 4.57% | |
Borrowings outstanding | $ 299 | 299 |
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 |
Sun Life Assurance Series C Senior Debentures Issued November 20, 2009 | ||
Disclosure of detailed information about borrowings [line items] | ||
Interest rate | 6.06% | |
Borrowings outstanding | $ 500 | 500 |
Senior Debentures | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings outstanding | 1,299 | 1,299 |
Fair value of borrowings outstanding | 1,390 | 1,439 |
Interest expense on debt instruments issued | $ 76 | $ 76 |
Government of Canada Bond Yield | SLF Inc. Series D Senior Debentures Issued June 30, 2009 | ||
Disclosure of detailed information about borrowings [line items] | ||
Adjustment to interest rate basis | 0.575% | |
Government of Canada Bond Yield | SLF Inc. Series E Senior Debentures Issued August 23, 2011 | ||
Disclosure of detailed information about borrowings [line items] | ||
Adjustment to interest rate basis | 0.53% | |
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% | |
Five-year Government of Canada Bond Yield | Sun Life Assurance Series C Senior Debentures Issued November 20, 2009 | ||
Disclosure of detailed information about borrowings [line items] | ||
Adjustment to interest rate basis | 3.60% | |
Borrowings adjusted to interest rate basis, reset term | 5 years | |
Borrowings, Redemption Period One | Government of Canada Bond Yield | SLF Inc. Series D Senior Debentures Issued June 30, 2009 | ||
Disclosure of detailed information about borrowings [line items] | ||
Adjustment to interest rate basis | 0.65% | |
Borrowings, Redemption Period Two | Government of Canada Bond Yield | SLF Inc. Series D Senior Debentures Issued June 30, 2009 | ||
Disclosure of detailed information about borrowings [line items] | ||
Adjustment to interest rate basis | 1.30% |
Senior Debentures and Innovat_4
Senior Debentures and Innovative Capital Instruments - Innovative Capital Instruments (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of detailed information about borrowings [line items] | ||
Principal amount | $ 700 | |
Sun Life ExchangEable Capital Securities | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | 699 | $ 699 |
Sun Life Capital Trust SLEECS B | ||
Disclosure of detailed information about borrowings [line items] | ||
Principal amount | 200 | |
Sun Life Capital Trust II SEECS 2009-1 | ||
Disclosure of detailed information about borrowings [line items] | ||
Principal amount | $ 500 | |
Annual Yield | Sun Life Capital Trust SLEECS B | ||
Disclosure of detailed information about borrowings [line items] | ||
Annual yield | 7.093% | |
Annual Yield | Sun Life Capital Trust II SEECS 2009-1 | ||
Disclosure of detailed information about borrowings [line items] | ||
Annual yield | 5.863% | |
Government of Canada Bond Yield | Sun Life Capital Trust II SEECS 2009-1 | ||
Disclosure of detailed information about borrowings [line items] | ||
Adjustment to interest rate basis | 0.32% | |
Five-year Government of Canada Bond Yield | Sun Life Capital Trust II SEECS 2009-1 | ||
Disclosure of detailed information about borrowings [line items] | ||
Adjustment to interest rate basis | 3.40% | |
Tier 1 Capital | Sun Life ExchangEable Capital Securities | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings | $ 699 | $ 699 |
Non-Cumulative Perpetual Preferred Shares | Sun Life ExchangEable Capital Securities | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, convertible, number of equity instruments (in shares) | 40 | |
Non-Cumulative Perpetual Preferred Shares | Sun Life Capital Trust SLEECS B | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings, convertible, number of equity instruments (in shares) | 40 | |
Borrowings, Redemption Period One | Government of Canada Bond Yield | Sun Life Capital Trust II SEECS 2009-1 | ||
Disclosure of detailed information about borrowings [line items] | ||
Adjustment to interest rate basis | 0.60% | |
Borrowings, Redemption Period Two | Government of Canada Bond Yield | Sun Life Capital Trust II SEECS 2009-1 | ||
Disclosure of detailed information about borrowings [line items] | ||
Adjustment to interest rate basis | 1.20% |
Subordinated Debt - Obligations
Subordinated Debt - Obligations Included in Subordinated Debt (Details) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Mar. 02, 2017 | |
Sun Life Assurance 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 January 30, 2008 | |||
Disclosure of detailed information about borrowings [line items] | |||
Interest rate | 5.59% | ||
Borrowings outstanding | $ 0 | 400 | |
Subordinated Debt Issued March 2, 2012 | |||
Disclosure of detailed information about borrowings [line items] | |||
Interest rate | 4.38% | ||
Borrowings outstanding | $ 0 | 0 | $ 800 |
Subordinated Debt Issued May 13, 2014 | |||
Disclosure of detailed information about borrowings [line items] | |||
Interest rate | 2.77% | ||
Borrowings outstanding | $ 250 | 249 | |
Subordinated Debt Issued September 25, 2015 | |||
Disclosure of detailed information about borrowings [line items] | |||
Interest rate | 2.60% | ||
Borrowings outstanding | $ 499 | 498 | |
Subordinated Debt Issued February 19, 2016 | |||
Disclosure of detailed information about borrowings [line items] | |||
Interest rate | 3.10% | ||
Borrowings outstanding | $ 349 | 349 | |
Subordinated Debt Issued September 19, 2016 | |||
Disclosure of detailed information about borrowings [line items] | |||
Interest rate | 3.05% | ||
Borrowings outstanding | $ 995 | 995 | |
Subordinated Debt Issued November 23, 2017 | |||
Disclosure of detailed information about borrowings [line items] | |||
Interest rate | 2.75% | ||
Borrowings outstanding | $ 398 | 398 | |
Subordinated Debt | |||
Disclosure of detailed information about borrowings [line items] | |||
Borrowings outstanding | 3,039 | 3,437 | |
Fair value of borrowings outstanding | 3,129 | 3,583 | |
Interest expense on subordinated debt | $ 105 | $ 122 | |
Government of Canada Bond Yield | Sun Life Assurance Subordinated Debt Issued May 15, 1998 | |||
Disclosure of detailed information about borrowings [line items] | |||
Adjustment to interest rate basis | 0.16% | ||
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 | 1.00% | ||
After earliest par call or redemption date | Canadian Dollar Offered Rate (CDOR) | Subordinated Debt Issued May 13, 2014 | |||
Disclosure of detailed information about borrowings [line items] | |||
Adjustment to interest rate basis | 0.75% | ||
After earliest par call or redemption date | Canadian Dollar Offered Rate (CDOR) | Subordinated Debt Issued September 25, 2015 | |||
Disclosure of detailed information about borrowings [line items] | |||
Adjustment to interest rate basis | 1.43% | ||
After earliest par call or redemption date | Canadian Dollar Offered Rate (CDOR) | Subordinated Debt Issued February 19, 2016 | |||
Disclosure of detailed information about borrowings [line items] | |||
Adjustment to interest rate basis | 2.20% | ||
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% | ||
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 September 19, 2016 | |||
Disclosure of detailed information about borrowings [line items] | |||
Adjustment to interest rate basis | 0.52% |
Share Capital - Narrative (Deta
Share Capital - Narrative (Details) | 12 Months Ended |
Dec. 31, 2018CAD ($)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 | 13 |
Number of class series outstanding | 10 |
Share Capital - Common Shares I
Share Capital - Common Shares Issued and Outstanding (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018CAD ($)shares$ / shares | Dec. 31, 2017CAD ($)shares | Aug. 14, 2018shares | Aug. 14, 2017shares | |
Reconciliation of number of shares outstanding [abstract] | ||||
Stock options exercised (in shares) | 399,000 | 437,000 | ||
Common shares issued as consideration for business acquisition (in shares) | 100,000 | 0 | ||
Common shares issued as consideration for business acquisition | $ | $ 4 | $ 0 | ||
Payments to acquire or redeem entity's shares | $ | $ 641 | $ 175 | ||
Common shares | ||||
Reconciliation of number of shares outstanding [abstract] | ||||
Number of shares outstanding, beginning of year (in shares) | 610,500,000 | 613,600,000 | ||
Stock options exercised (in shares) | 400,000 | 400,000 | ||
Common shares purchased for cancellation (in shares) | 12,500,000 | (3,500,000) | ||
Number of shares outstanding, end of year (in shares) | 598,500,000 | 610,500,000 | ||
Balance, beginning of year | $ | $ 8,582 | $ 8,614 | ||
Stock options exercised | $ | 16 | 18 | ||
Common shares purchased for cancellation | $ | (183) | (50) | ||
Balance, end of year | $ | $ 8,419 | $ 8,582 | ||
Number of shares authorized for purchase and cancellation (in shares) | 14,000,000 | 11,500,000 | ||
Purchase and cancellation of treasury shares (cad per share) | $ / shares | $ 50.83 | |||
Payments to acquire or redeem entity's shares | $ | $ 635 | |||
2018 NCIB | Common shares | ||||
Reconciliation of number of shares outstanding [abstract] | ||||
Common shares purchased for cancellation (in shares) | 100,000 | |||
Purchase and cancellation of treasury shares (cad per share) | $ / shares | $ 44.91 | |||
Payments to acquire or redeem entity's shares | $ | $ 0 | |||
Third-Party Share Repurchase Program | Common shares | ||||
Reconciliation of number of shares outstanding [abstract] | ||||
Common shares purchased for cancellation (in shares) | 1,100,000 |
Share Capital - Preferred Share
Share Capital - Preferred Shares (Details) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended |
Dec. 31, 2018CAD ($)$ / sharesshares | |
Preferred shares | |
Disclosure of classes of share capital [line items] | |
Number of shares | shares | 92.2 |
Face amount | $ 2,305 |
Issued capital | $ 2,257 |
Series 1 | |
Disclosure of classes of share capital [line items] | |
Annual dividend rate | 4.75% |
Annual dividend per share | $ / shares | $ 1.19 |
Number of shares | shares | 16 |
Face amount | $ 400 |
Issued capital | $ 394 |
Series 2 | |
Disclosure of classes of share capital [line items] | |
Annual dividend rate | 4.80% |
Annual dividend per share | $ / shares | $ 1.20 |
Number of shares | shares | 13 |
Face amount | $ 325 |
Issued capital | $ 318 |
Series 3 | |
Disclosure of classes of share capital [line items] | |
Annual dividend rate | 4.45% |
Annual dividend per share | $ / shares | $ 1.11 |
Number of shares | shares | 10 |
Face amount | $ 250 |
Issued capital | $ 245 |
Series 4 | |
Disclosure of classes of share capital [line items] | |
Annual dividend rate | 4.45% |
Annual dividend per share | $ / shares | $ 1.11 |
Number of shares | shares | 12 |
Face amount | $ 300 |
Issued capital | $ 293 |
Series 5 | |
Disclosure of classes of share capital [line items] | |
Annual dividend rate | 4.50% |
Annual dividend per share | $ / shares | $ 1.13 |
Number of shares | shares | 10 |
Face amount | $ 250 |
Issued capital | $ 245 |
Series 8R | |
Disclosure of classes of share capital [line items] | |
Annual dividend rate | 2.275% |
Annual dividend per share | $ / shares | $ 0.57 |
Number of shares | shares | 5.2 |
Face amount | $ 130 |
Issued capital | $ 127 |
Annual dividend rate spread | 1.41% |
Series 9QR | |
Disclosure of classes of share capital [line items] | |
Number of shares | shares | 6 |
Face amount | $ 150 |
Issued capital | $ 147 |
Annual dividend rate spread | 1.41% |
Series 10R | |
Disclosure of classes of share capital [line items] | |
Annual dividend rate | 2.842% |
Annual dividend per share | $ / shares | $ 0.71 |
Number of shares | shares | 6.9 |
Face amount | $ 173 |
Issued capital | $ 169 |
Annual dividend rate spread | 2.17% |
Series 11QR | |
Disclosure of classes of share capital [line items] | |
Number of shares | shares | 1.1 |
Face amount | $ 27 |
Issued capital | $ 26 |
Annual dividend rate spread | 2.17% |
Series 12R | |
Disclosure of classes of share capital [line items] | |
Annual dividend rate | 3.806% |
Annual dividend per share | $ / shares | $ 0.95 |
Number of shares | shares | 12 |
Face amount | $ 300 |
Issued capital | $ 293 |
Annual dividend rate spread | 2.73% |
Series 8R, Series 10R and Series 12R | |
Disclosure of classes of share capital [line items] | |
Redemption price per share (in CAD per share) | $ / shares | $ 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) | $ / shares | 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) | $ / shares | $ 25.50 |
Interests in Other Entities - N
Interests in Other Entities - Narrative (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Joint Ventures And Associates [Line Items] | ||
Dividends received from joint ventures and associates (Note 16) | $ 34 | $ 36 |
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 | 50.00% | |
Canadian real estate joint ventures | ||
Disclosure Of Joint Ventures And Associates [Line Items] | ||
Increase in equity method investments | $ 64 | 121 |
Joint operations | ||
Disclosure Of Joint Ventures And Associates [Line Items] | ||
Investment properties and other assets | 1,223 | 1,205 |
Fair value of jointly controlled assets | 1,307 | 1,293 |
Joint ventures where entity is venturer | ||
Disclosure Of Joint Ventures And Associates [Line Items] | ||
Rental payments | 16 | $ 9 |
Future rental payments to joint ventures and associates | $ 0 | |
Rental lease term | 14 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, 2018 | Dec. 31, 2017 | |
Interests In Other Entities [Abstract] | ||
Carrying amount of interests in joint ventures and associates | $ 1,500 | $ 1,369 |
Our share of: | ||
Net income (loss) | 91 | 67 |
Other comprehensive income (loss) | 7 | (31) |
Total comprehensive income (loss) | $ 98 | $ 36 |
Interests in Other Entities - I
Interests in Other Entities - Interest in Unconsolidated Structured Entities (Details) - CAD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Joint ventures | Investment funds | ||
Disclosure of unconsolidated structured entities [line items] | ||
Carrying amount | $ 213 | $ 245 |
Debt securities | Securitization entities – third-party managed | ||
Disclosure of unconsolidated structured entities [line items] | ||
Carrying amount | 5,899 | |
Maximum exposure to loss | 7,366 | 5,899 |
Cash, cash equivalents and short-term securities | Securitization entities – third-party managed | ||
Disclosure of unconsolidated structured entities [line items] | ||
Carrying amount | 430 | 725 |
Maximum exposure to loss | 430 | 725 |
Equity securities | Investment funds – third-party managed | ||
Disclosure of unconsolidated structured entities [line items] | ||
Carrying amount | 3,439 | 4,877 |
Maximum exposure to loss | 3,439 | 4,877 |
Equity securities and Other invested assets | Investment funds – company managed | ||
Disclosure of unconsolidated structured entities [line items] | ||
Carrying amount | 1,705 | 1,455 |
Maximum exposure to loss | 1,705 | 1,455 |
Other invested assets | Limited partnerships – third-party managed | ||
Disclosure of unconsolidated structured entities [line items] | ||
Carrying amount | 1,258 | |
Maximum exposure to loss | $ 1,557 | $ 1,258 |
Fee Income - Schedule of Fee In
Fee Income - Schedule of Fee Income (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Analysis of income and expense [abstract] | ||
Fee income from insurance contracts | $ 968 | $ 894 |
Distribution fees | 829 | 867 |
Fund management and other asset-based fees | 3,444 | 3,423 |
Administrative service and other fees | 725 | 658 |
Total fee income | $ 5,966 | $ 5,842 |
Operating Expenses - Schedule o
Operating Expenses - Schedule of Operating Expenses (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Expense [Abstract] | ||
Employee expenses | $ 3,707 | $ 3,672 |
Premises and equipment | 268 | 263 |
Capital asset depreciation | 107 | 97 |
Service fees | 870 | 799 |
Amortization charge for the year | 119 | 112 |
Other expenses | 1,361 | 1,467 |
Total operating expenses | 6,432 | 6,410 |
Restructuring costs | 60 | |
Employee Expenses [Abstract] | ||
Salaries, bonus, employee benefits | 3,322 | 3,155 |
Share-based payments (Note 19) | 346 | 476 |
Other personnel costs | 39 | 41 |
Total employee expenses | $ 3,707 | $ 3,672 |
Share-Based Payments - Narrativ
Share-Based Payments - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2018CAD ($)shares$ / shares | Dec. 31, 2017CAD ($)$ / 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) | $ 53.28 | $ 49.98 |
Compensation expense | $ 346,000,000 | $ 476,000,000 |
Weighted average share price, share options granted (in CAD per share) | $ / shares | $ 7,000,000 | $ 9.41 |
Liabilities accrued | $ 300,000 | $ 235,000 |
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 | shares | 29,525,000 | |
Compensation expense | $ 0 | 3,000,000 |
Employee Share Ownership Plan | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Compensation expense | $ 8,000,000 | 7,000,000 |
Required service period | 1 year | |
Employee's contribution, percentage match | 50.00% | |
Annual compensation match maximum, amount | $ 1,500 | |
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 | 1 | |
Number of trading days prior to grant date used for unit valuation | 5 days | |
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 | |
Liabilities accrued | $ 0 | 844,000,000 |
MFS Investment Management Stock Options, Restricted Shares, and Outstanding Shares | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Liabilities accrued | $ 0 | $ 0 |
Top of range | Employee Share Ownership Plan | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Employee contribution election | 20.00% | |
Employee's annual compensation, percentage match | 5.00% | |
Top of range | Sun Share Plan | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Performance factor multiplier | 2 | |
Bottom of range | Employee Share Ownership Plan | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Employee contribution election | 1.00% | |
Bottom of range | Sun Share Plan | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Performance factor multiplier | 0 |
Share-Based Payments - Activiti
Share-Based Payments - Activities in Stock Option Plans (Details) shares in Thousands | 12 Months Ended | |
Dec. 31, 2018CAD ($)shares | Dec. 31, 2017CAD ($)shares | |
Number of stock options (thousands) | ||
Beginning balance (in shares) | shares | 3,008 | 3,397 |
Granted (in shares) | shares | 517 | 369 |
Exercised (in shares) | shares | (399) | (437) |
Forfeited (in shares) | shares | (25) | (4) |
Expired (in shares) | shares | 0 | (317) |
Ending balance (in shares) | shares | 3,101 | 3,008 |
Weighted average exercise price | ||
Weighted average exercise price, beginning balance (in CAD per share) | $ | $ 33.88 | $ 34.19 |
Weighted average exercise price, granted (in CAD per share) | $ | 53.96 | 48.20 |
Weighted average exercise price, exercised (in CAD per share) | $ | 34.57 | 34.70 |
Weighted average exercise price, forfeited (in CAD per share) | $ | 43.79 | 47.96 |
Weighted average exercise price, expired (in CAD per share) | $ | 0 | 52.54 |
Weighted average exercise price, ending balance, (in CAD per share) | $ | $ 37.06 | $ 33.88 |
Exercisable, December 31 (in shares) | shares | 2,041 | 2,071 |
Weighted average exercise price, exercisable (in CAD per share) | $ | $ 30.97 | $ 29.76 |
Share-Based Payments - Share Ba
Share-Based Payments - Share Based Options by Exercise Price (Details) shares in Thousands | Dec. 31, 2018CAD ($)sharesyear | Dec. 31, 2017CAD ($)shares | Dec. 31, 2016CAD ($)shares |
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of stock options (thousands) | shares | 3,101 | 3,008 | 3,397 |
Weighted average remaining contractual life (years) | year | 5.49 | ||
Weighted average exercise price (in CAD per share) | $ 37.06 | $ 33.88 | $ 34.19 |
$18.00 to $24.00 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of stock options (thousands) | shares | 624 | ||
Weighted average remaining contractual life (years) | year | 2.63 | ||
Weighted average exercise price (in CAD per share) | $ 21.28 | ||
$18.00 to $24.00 | Bottom of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of exercise prices (in CAD per share) | 18 | ||
$18.00 to $24.00 | Top of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of exercise prices (in CAD per share) | $ 24 | ||
$24.01 to $30.00 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of stock options (thousands) | shares | 350 | ||
Weighted average remaining contractual life (years) | year | 3.74 | ||
Weighted average exercise price (in CAD per share) | $ 27.79 | ||
$24.01 to $30.00 | Bottom of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of exercise prices (in CAD per share) | 24.01 | ||
$24.01 to $30.00 | Top of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of exercise prices (in CAD per share) | $ 30 | ||
$30.01 to $35.00 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of stock options (thousands) | shares | 308 | ||
Weighted average remaining contractual life (years) | year | 1.82 | ||
Weighted average exercise price (in CAD per share) | $ 31.11 | ||
$30.01 to $35.00 | Bottom of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of exercise prices (in CAD per share) | 30.01 | ||
$30.01 to $35.00 | Top of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of exercise prices (in CAD per share) | $ 35 | ||
$35.01 to $45.00 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of stock options (thousands) | shares | 949 | ||
Weighted average remaining contractual life (years) | year | 6.23 | ||
Weighted average exercise price (in CAD per share) | $ 39.45 | ||
$35.01 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) | 35.01 | ||
$35.01 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 $53.96 | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Number of stock options (thousands) | shares | 870 | ||
Weighted average remaining contractual life (years) | year | 8.75 | ||
Weighted average exercise price (in CAD per share) | $ 51.62 | ||
$45.01 to $53.96 | 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 $53.96 | Top of range | |||
Disclosure of range of exercise prices of outstanding share options [line items] | |||
Range of exercise prices (in CAD per share) | $ 53.96 |
Share-Based Payments - Weighted
Share-Based Payments - Weighted Average Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2018CAD ($)year | Dec. 31, 2017CAD ($)year | |
Share-Based Payment Arrangements [Abstract] | ||
Risk-free interest rate | 2.20% | 1.30% |
Expected volatility | 21.30% | 31.70% |
Expected dividend yield | 4.00% | 4.00% |
Expected life of the option (in years) | year | 6.3 | 6.3 |
Exercise price (in CAD per share) | $ | $ 53.96 | $ 48.20 |
Share-Based Payments - Other Sh
Share-Based Payments - Other Share Based Payment Plan (Details) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018CAD ($)shares | Dec. 31, 2017CAD ($)shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Units outstanding (in shares) | shares | 7,547 | 6,821 |
Liabilities accrued | $ 300 | $ 235 |
Compensation expense | 346,000 | 476,000 |
Sun Share Units and Deferred Share Units (DSU) | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Income tax expense (benefit) | $ (21,000) | $ (32,000) |
Sun Shares | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Units outstanding (in shares) | shares | 6,507 | 5,967 |
Liabilities accrued | $ 250 | $ 200 |
DSUs | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Units outstanding (in shares) | shares | 1,040 | 854 |
Liabilities accrued | $ 50 | $ 35 |
Share-Based Payments - Share-Ba
Share-Based Payments - Share-Based Payment Plans of MFS (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Compensation expense | $ 346 | $ 476 |
MFS Investment Management Share-Based Awards | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Income tax expense (benefit) | $ (49) | $ (85) |
Income Taxes - Temporary Differ
Income Taxes - Temporary Differences in Deferred Tax Assets and Liabilities (Details) - CAD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | $ 1,209 | $ 1,295 |
Liabilities | 322 | 403 |
Total net deferred tax asset | 887 | 892 |
Investments | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | (738) | (841) |
Liabilities | 8 | 116 |
Policy liabilities | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 1,116 | 1,218 |
Liabilities | 379 | 322 |
Deferred acquisition costs | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 95 | 84 |
Liabilities | (1) | 7 |
Losses available for carry forward | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 600 | 543 |
Liabilities | (48) | (6) |
Pension and other employee benefits | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | 183 | 201 |
Liabilities | (136) | (150) |
Other | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | (47) | 90 |
Liabilities | $ 120 | $ 114 |
Income Taxes - Movement in Net
Income Taxes - Movement in Net Deferred Tax Assets (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of changes in deferred tax assets [abstract] | ||
Beginning balance, deferred tax assets | $ 892 | $ 761 |
Acquisitions (disposals) through business combinations | (10) | |
Charged to statement of operations | (37) | 214 |
Charged to other comprehensive income | 24 | (64) |
Charged to equity, other than other comprehensive income | 9 | |
Foreign exchange rate movements | (1) | (9) |
Ending balance, deferred tax assets | 887 | 892 |
Investments | ||
Reconciliation of changes in deferred tax assets [abstract] | ||
Beginning balance, deferred tax assets | (957) | (1,064) |
Acquisitions (disposals) through business combinations | 0 | |
Charged to statement of operations | 195 | 132 |
Charged to other comprehensive income | 45 | (73) |
Charged to equity, other than other comprehensive income | 0 | |
Foreign exchange rate movements | (29) | 48 |
Ending balance, deferred tax assets | (746) | (957) |
Policy liabilities | ||
Reconciliation of changes in deferred tax assets [abstract] | ||
Beginning balance, deferred tax assets | 896 | 517 |
Acquisitions (disposals) through business combinations | 0 | |
Charged to statement of operations | (170) | 388 |
Charged to other comprehensive income | 0 | 0 |
Charged to equity, other than other comprehensive income | 0 | |
Foreign exchange rate movements | 11 | (9) |
Ending balance, deferred tax assets | 737 | 896 |
Deferred acquisition costs | ||
Reconciliation of changes in deferred tax assets [abstract] | ||
Beginning balance, deferred tax assets | 77 | 171 |
Acquisitions (disposals) through business combinations | 0 | |
Charged to statement of operations | 6 | (74) |
Charged to other comprehensive income | 0 | 0 |
Charged to equity, other than other comprehensive income | 6 | |
Foreign exchange rate movements | 7 | (20) |
Ending balance, deferred tax assets | 96 | 77 |
Losses available for carry forward | ||
Reconciliation of changes in deferred tax assets [abstract] | ||
Beginning balance, deferred tax assets | 549 | 513 |
Acquisitions (disposals) through business combinations | 0 | |
Charged to statement of operations | 107 | 43 |
Charged to other comprehensive income | (13) | (9) |
Charged to equity, other than other comprehensive income | 0 | |
Foreign exchange rate movements | 5 | 2 |
Ending balance, deferred tax assets | 648 | 549 |
Pension and other employee benefits | ||
Reconciliation of changes in deferred tax assets [abstract] | ||
Beginning balance, deferred tax assets | 351 | 410 |
Acquisitions (disposals) through business combinations | 0 | |
Charged to statement of operations | (26) | (66) |
Charged to other comprehensive income | (17) | 22 |
Charged to equity, other than other comprehensive income | 0 | |
Foreign exchange rate movements | 11 | (15) |
Ending balance, deferred tax assets | 319 | 351 |
Other | ||
Reconciliation of changes in deferred tax assets [abstract] | ||
Beginning balance, deferred tax assets | (24) | 214 |
Acquisitions (disposals) through business combinations | (10) | |
Charged to statement of operations | (149) | (209) |
Charged to other comprehensive income | 9 | (4) |
Charged to equity, other than other comprehensive income | 3 | |
Foreign exchange rate movements | (6) | (15) |
Ending balance, deferred tax assets | $ (167) | $ (24) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | $ 1,209 | $ 1,295 |
Unused tax losses for which a deferred tax asset has not been recognised | 702 | 511 |
Capital tax losses for which no deferred tax asset recognised | 102 | 100 |
Temporary differences associated with investments in subsidiaries, branches, joint ventures and associates for which a deferred tax liability has not been recognised | $ 5,723 | $ 5,611 |
Applicable tax rate | 26.75% | 26.80% |
Provisional tax benefit relating to revaluation of deferred tax balances | $ 53 | |
One-time deemed repatriation charge | 46 | |
Withholding taxes on distributions from foreign subsidiaries | $ 28 | 26 |
Bottom of range | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Applicable tax rate | 0.00% | |
Top of range | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Applicable tax rate | 30.00% | |
United States | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Capital losses | $ 0 | 26 |
United Kingdom | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Capital losses | 460 | 449 |
Canada | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Capital losses | 176 | 176 |
Asia | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Benefit related to investments in joint ventures | 16 | 16 |
Unused tax losses | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Accumulated non-capital tax losses | 3,245 | 2,662 |
Deferred tax assets | 600 | 543 |
Unused tax losses | United States | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Deferred tax assets | $ 6 | $ 6 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Current income tax expense (benefit): | ||
Current year | $ 561 | $ 445 |
Adjustments in respect of prior years, including resolution of tax disputes | (1) | 25 |
Tax rate and other legislative changes | 0 | 46 |
Total current income tax expense (benefit) | 560 | 516 |
Deferred income tax expense (benefit): | ||
Origination and reversal of temporary differences | 42 | (151) |
Tax expense (benefit) arising from unrecognized tax losses | 4 | 0 |
Adjustments in respect of prior years, including resolution of tax disputes | (9) | (10) |
Tax rate and other legislative changes | 0 | (53) |
Total deferred income tax expense (benefit) | 37 | (214) |
Total income tax expense (benefit) | $ 597 | $ 302 |
Income Taxes - Income Tax Benef
Income Taxes - Income Tax Benefit (Expense) Recognized Directly in Equity (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income tax benefit (expense): | ||
Current income tax benefit (expense) | $ (4) | $ 2 |
Deferred income tax benefit (expense) | 24 | (64) |
Total income tax benefit (expense) included in other comprehensive income (loss) | 20 | (62) |
Deferred income tax benefit (expense) | 9 | 0 |
Total income tax benefit (expense) recorded in equity, including tax benefit (expense) recorded in other comprehensive income | $ 29 | $ (62) |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Abstract] | ||
Total net income (loss) | $ 2,914 | $ 2,487 |
Income tax expense (benefit) | 597 | 302 |
Total net income (loss) before income taxes | 3,511 | 2,789 |
Reconciliation of accounting profit multiplied by applicable tax rates [abstract] | ||
Taxes at the combined Canadian federal and provincial statutory income tax rate | 939 | 746 |
Higher (lower) effective rates on income subject to taxation in foreign jurisdictions | (222) | (257) |
Tax exempt investment income | (131) | (213) |
Tax (benefit) cost of unrecognized tax losses and tax credits | 4 | 0 |
Tax rate and other legislative changes | 0 | (7) |
Adjustments in respect of prior years, including resolution of tax disputes | (10) | 15 |
Other | 17 | 18 |
Total income tax expense (benefit) | $ 597 | $ 302 |
Reconciliation of average effective tax rate and applicable tax rate [abstract] | ||
Taxes at the combined Canadian federal and provincial statutory income tax rate | 26.75% | 26.80% |
Higher (lower) effective rates on income subject to taxation in foreign jurisdictions | (6.30%) | (9.20%) |
Tax exempt investment income | (3.80%) | (7.60%) |
Tax (benefit) cost of unrecognized tax losses and tax credits | 0.10% | (0.00%) |
Tax rate and other legislative changes | 0.00% | (0.30%) |
Adjustments in respect of prior years, including resolution of tax disputes | (0.30%) | 0.50% |
Other | 0.50% | 0.60% |
Effective Income tax rate | 17.00% | 10.80% |
Capital Management - Schedule o
Capital Management - Schedule of Total Capital (Details) - CAD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Entity Location [Line Items] | |||
Equity | $ 24,570 | $ 22,971 | |
Capital | $ 28,308 | 27,107 | |
Sun Life Assurance | |||
Entity Location [Line Items] | |||
Life Insurance Capital Adequacy Test Ratio, Actual | 131.00% | ||
Subordinated Debt | |||
Entity Location [Line Items] | |||
Borrowings | $ 3,039 | 3,437 | |
Sun Life ExchangEable Capital Securities | |||
Entity Location [Line Items] | |||
Borrowings | 699 | 699 | |
Participating policyholders | |||
Entity Location [Line Items] | |||
Equity | 864 | 650 | $ 412 |
Preferred shares | Shares | |||
Entity Location [Line Items] | |||
Equity | 2,257 | 2,257 | 2,257 |
Common shares | |||
Entity Location [Line Items] | |||
Equity | 21,449 | 20,064 | |
Common shares | Shares | |||
Entity Location [Line Items] | |||
Equity | $ 8,419 | $ 8,582 | $ 8,614 |
Capital Management - Participat
Capital Management - Participating Account Seed Capital (Details) $ in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018CAD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2018CAD ($) | |
Shareholders | |||
Entity Location [Line Items] | |||
Increase (decrease) in net income (loss) through transfers of interest on seed capital | $ 110 | ||
Retained earnings | |||
Entity Location [Line Items] | |||
Increase (decrease) through transfer from participating policyholders' equity | 89 | $ 89 | |
Participating policyholders | |||
Entity Location [Line Items] | |||
Increase (decrease) in net income (loss) through transfers of interest on seed capital | (110) | ||
SLF Canada | Shareholders | |||
Entity Location [Line Items] | |||
Increase (decrease) in net income (loss) through transfers of interest on seed capital | 75 | ||
SLF Canada | Retained earnings | |||
Entity Location [Line Items] | |||
Increase (decrease) through transfer from participating policyholders' equity | 50 | ||
SLF Canada | Participating policyholders | |||
Entity Location [Line Items] | |||
Increase (decrease) in net income (loss) through transfers of interest on seed capital | (75) | ||
SLF U.S. | Shareholders | |||
Entity Location [Line Items] | |||
Increase (decrease) in net income (loss) through transfers of interest on seed capital | 35 | $ 28 | |
SLF U.S. | Retained earnings | |||
Entity Location [Line Items] | |||
Increase (decrease) through transfer from participating policyholders' equity | 39 | 30 | |
SLF U.S. | Participating policyholders | |||
Entity Location [Line Items] | |||
Increase (decrease) in net income (loss) through transfers of interest on seed capital | $ (35) | $ (28) |
Segregated Funds - Segregated F
Segregated Funds - Segregated Fund Types (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
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 | 25.00% | |
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 | 1.00% | 1.00% |
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 | 10.00% | 10.00% |
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 | 40.00% | 40.00% |
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 | 40.00% | 40.00% |
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 | 5.00% | 5.00% |
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 | 15.00% | 15.00% |
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 | 45.00% | 45.00% |
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 | 45.00% | 45.00% |
Segregated Funds - Investments
Segregated Funds - Investments for Account of Segregated Fund Holders (Details) - CAD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Equity securities | $ 4,634 | $ 6,020 |
Debt securities | 74,443 | 72,619 |
Cash, cash equivalents and short-term securities | 9,506 | 8,890 |
Investment properties | 7,157 | 7,067 |
Other assets | 4,498 | 4,408 |
Total assets | 271,827 | 269,112 |
Less: Liabilities arising from investing activities | 247,257 | 246,141 |
Total investments for account of segregated fund holders | 103,062 | 106,392 |
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 | 89,049 | 91,637 |
Equity securities | 9,771 | 10,799 |
Debt securities | 3,448 | 3,517 |
Cash, cash equivalents and short-term securities | 711 | 457 |
Investment properties | 400 | 374 |
Mortgages | 23 | 20 |
Other assets | 156 | 147 |
Total assets | 103,558 | 106,951 |
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 | $ 496 | $ 559 |
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, 2018 | Dec. 31, 2017 | |
Insurance Contracts And Investment Contracts For Account Of Segregated Fund Holders [Roll Forward] | ||
Balance as at January 1 | $ 106,392 | |
Deductions from segregated funds: | ||
Net additions (deductions) | 281 | $ 5,368 |
Balance as at December 31 | 103,062 | 106,392 |
Insurance contracts | ||
Insurance Contracts And Investment Contracts For Account Of Segregated Fund Holders [Roll Forward] | ||
Balance as at January 1 | 99,121 | 90,388 |
Additions to segregated funds: | ||
Deposits | 11,468 | 10,772 |
Net transfer (to) from general funds | (308) | (119) |
Net realized and unrealized gains (losses) | (7,123) | 4,141 |
Other investment income | 4,576 | 4,853 |
Total additions | 8,613 | 19,647 |
Deductions from segregated funds: | ||
Payments to policyholders and their beneficiaries | 10,224 | 9,439 |
Management fees | 1,004 | 963 |
Taxes and other expenses | 256 | 267 |
Foreign exchange rate movements | (413) | 245 |
Total deductions | 11,071 | 10,914 |
Net additions (deductions) | (2,458) | 8,733 |
Acquisitions | 0 | 0 |
Balance as at December 31 | 96,663 | 99,121 |
Investment contracts | ||
Insurance Contracts And Investment Contracts For Account Of Segregated Fund Holders [Roll Forward] | ||
Balance as at January 1 | 7,271 | 6,779 |
Additions to segregated funds: | ||
Deposits | 85 | 86 |
Net transfer (to) from general funds | 0 | 0 |
Net realized and unrealized gains (losses) | (658) | 883 |
Other investment income | 178 | 152 |
Total additions | (395) | 1,121 |
Deductions from segregated funds: | ||
Payments to policyholders and their beneficiaries | 614 | 643 |
Management fees | 57 | 57 |
Taxes and other expenses | 0 | 12 |
Foreign exchange rate movements | (194) | (83) |
Total deductions | 477 | 629 |
Net additions (deductions) | (872) | 492 |
Acquisitions | 0 | 0 |
Balance as at December 31 | $ 6,399 | $ 7,271 |
Commitments, Guarantees and C_3
Commitments, Guarantees and Contingencies - Lease Commitments, Contractual Commitments, and Letters of Credit (Details) - CAD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | ||
Total future rental payments for the remainder of the operating leases | $ 1,056,000,000 | $ 923,000,000 |
Contractual commitments outstanding | 3,800,000,000 | 2,933,000,000 |
Maximum borrowing capacity | 891,000,000 | 835,000,000 |
Letters of credit outstanding | $ 227,000,000 | $ 203,000,000 |
Commitments, Guarantees and C_4
Commitments, Guarantees and Contingencies - Consolidating Summary Financial Information (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of operating segments [line items] | ||
Principal amount | $ 700,000,000 | |
Outstanding preferred shares subject to the guarantee (in shares) | 0 | |
Revenue | $ 26,997,000,000 | $ 29,334,000,000 |
Shareholders' net income (loss) | 2,616,000,000 | 2,242,000,000 |
Invested assets | 151,726,000,000 | 146,139,000,000 |
Total other general fund assets | 17,039,000,000 | 16,581,000,000 |
Investments for account of segregated fund holders | 103,062,000,000 | 106,392,000,000 |
Insurance contract liabilities | 121,923,000,000 | 117,785,000,000 |
Investment contract liabilities | 3,164,000,000 | 3,082,000,000 |
Total other general fund liabilities | 19,108,000,000 | 18,882,000,000 |
Sun Life Assurance Subordinated Debt Issued May 15, 1998 | ||
Disclosure of operating segments [line items] | ||
Principal amount | $ 150,000,000 | |
Interest rate | 6.30% | |
Reportable legal entities | Parent Company | ||
Disclosure of operating segments [line items] | ||
Revenue | $ 361,000,000 | 441,000,000 |
Shareholders' net income (loss) | 2,616,000,000 | 2,242,000,000 |
Invested assets | 24,255,000,000 | 23,382,000,000 |
Total other general fund assets | 4,088,000,000 | 7,530,000,000 |
Investments for account of segregated fund holders | 0 | 0 |
Insurance contract liabilities | 0 | 0 |
Investment contract liabilities | 0 | 0 |
Total other general fund liabilities | 4,636,000,000 | 8,591,000,000 |
Consolidation adjustment | ||
Disclosure of operating segments [line items] | ||
Revenue | (436,000,000) | (1,550,000,000) |
Shareholders' net income (loss) | (2,418,000,000) | (2,004,000,000) |
Invested assets | (22,560,000,000) | (21,919,000,000) |
Total other general fund assets | (19,396,000,000) | (29,538,000,000) |
Investments for account of segregated fund holders | 0 | 0 |
Insurance contract liabilities | (8,677,000,000) | (8,452,000,000) |
Investment contract liabilities | 0 | 0 |
Total other general fund liabilities | (13,301,000,000) | (24,089,000,000) |
Sun Life Assurance (consolidated) | Reportable legal entities | Subsidiary Issuer | ||
Disclosure of operating segments [line items] | ||
Revenue | 22,619,000,000 | 23,421,000,000 |
Shareholders' net income (loss) | 2,036,000,000 | 1,577,000,000 |
Invested assets | 143,040,000,000 | 138,145,000,000 |
Total other general fund assets | 21,958,000,000 | 21,437,000,000 |
Investments for account of segregated fund holders | 103,014,000,000 | 106,341,000,000 |
Insurance contract liabilities | 122,066,000,000 | 118,003,000,000 |
Investment contract liabilities | 3,164,000,000 | 3,082,000,000 |
Total other general fund liabilities | 21,801,000,000 | 21,558,000,000 |
Other subsidiaries of SLF Inc. (combined) | Reportable legal entities | Subsidiary Issuer | ||
Disclosure of operating segments [line items] | ||
Revenue | 4,453,000,000 | 7,022,000,000 |
Shareholders' net income (loss) | 382,000,000 | 427,000,000 |
Invested assets | 6,991,000,000 | 6,531,000,000 |
Total other general fund assets | 10,389,000,000 | 17,152,000,000 |
Investments for account of segregated fund holders | 48,000,000 | 51,000,000 |
Insurance contract liabilities | 8,534,000,000 | 8,234,000,000 |
Investment contract liabilities | 0 | 0 |
Total other general fund liabilities | $ 5,972,000,000 | $ 12,822,000,000 |
Commitments, Guarantees and C_5
Commitments, Guarantees and Contingencies - Legal and Regulatory Proceedings (Details) | 12 Months Ended |
Dec. 31, 2018claim | |
Pending Litigation | |
Entity Information [Line Items] | |
Number of putative class action lawsuits | 2 |
Related Party Transactions - Ag
Related Party Transactions - Aggregate Compensation to Executive Team and Directors (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2018CAD ($)individual | Dec. 31, 2017CAD ($)individual | |
Executive team | ||
Disclosure of transactions between related parties [line items] | ||
Number of individuals | individual | 12 | 11 |
Base salary and annual incentive compensation | $ 18 | $ 18 |
Additional short-term benefits and other | 3 | 1 |
Share-based long-term incentive compensation | 24 | 18 |
Value of pension and post-retirement benefits | $ 2 | $ 3 |
Directors | ||
Disclosure of transactions between related parties [line items] | ||
Number of individuals | individual | 10 | 10 |
Base salary and annual incentive compensation | $ 0 | $ 0 |
Additional short-term benefits and other | 1 | 1 |
Share-based long-term incentive compensation | 2 | 2 |
Value of pension and post-retirement benefits | $ 0 | $ 0 |
Pension Plans and Other Post-_3
Pension Plans and Other Post-Retirement Benefits - Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2018CAD ($)Year | Dec. 31, 2017CAD ($) | |
Disclosure of defined benefit plans [line items] | ||
Age requirement | Year | 50 | |
Requisite service period | 10 years | |
Equity investments | 3.00% | 3.00% |
Post-employment benefit expense, defined contribution plans | $ | $ 120 | $ 109 |
Fixed income investments | Level 1 | ||
Disclosure of defined benefit plans [line items] | ||
Equity investments | 2.00% | 2.00% |
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, 2018 | Dec. 31, 2017 | |
Disclosure of defined benefit plans [line items] | ||
Net defined benefit liability (asset) - beginning balance | $ 628 | |
Change in defined benefit obligations: | ||
Current service cost | 59 | $ 50 |
Interest income (cost) | (22) | (22) |
Settlement losses (gains) | 0 | (6) |
Plan amendments | (1) | (2) |
Foreign exchange rate movement | (4) | 7 |
Change in plan assets: | ||
Administrative expense | (1) | 0 |
Return on plan assets (excluding amounts included in net interest expense) | (156) | 116 |
Fair value of plan assets | 3,253 | 3,301 |
Defined benefit (obligation) | (3,720) | (3,929) |
Net defined benefit liability (asset) - ending balance | 467 | 628 |
Pension | ||
Disclosure of defined benefit plans [line items] | ||
Net defined benefit liability (asset) - beginning balance | 360 | |
Change in defined benefit obligations: | ||
Current service cost | 54 | 47 |
Interest income (cost) | (13) | (12) |
Settlement losses (gains) | 0 | (6) |
Plan amendments | (1) | (2) |
Foreign exchange rate movement | (2) | 6 |
Change in plan assets: | ||
Administrative expense | (1) | 0 |
Return on plan assets (excluding amounts included in net interest expense) | (156) | 116 |
Fair value of plan assets | 3,253 | 3,301 |
Defined benefit (obligation) | (3,458) | (3,661) |
Net defined benefit liability (asset) - ending balance | 205 | 360 |
Other post-retirement | ||
Disclosure of defined benefit plans [line items] | ||
Net defined benefit liability (asset) - beginning balance | 268 | |
Change in defined benefit obligations: | ||
Current service cost | 5 | 3 |
Interest income (cost) | (9) | (10) |
Settlement losses (gains) | 0 | 0 |
Plan amendments | 0 | 0 |
Foreign exchange rate movement | (2) | 1 |
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) | (262) | (268) |
Net defined benefit liability (asset) - ending balance | 262 | 268 |
Present value of defined benefit obligation | ||
Disclosure of defined benefit plans [line items] | ||
Net defined benefit liability (asset) - beginning balance | 3,929 | 3,807 |
Change in defined benefit obligations: | ||
Current service cost | 59 | 50 |
Interest income (cost) | (127) | (132) |
Actuarial losses (gains) | (264) | 218 |
Benefits paid | (195) | (170) |
Settlement losses (gains) | 0 | (86) |
Plan amendments | (1) | (2) |
Foreign exchange rate movement | 65 | (20) |
Change in plan assets: | ||
Net defined benefit liability (asset) - ending balance | 3,720 | 3,929 |
Present value of defined benefit obligation | Pension | ||
Disclosure of defined benefit plans [line items] | ||
Net defined benefit liability (asset) - beginning balance | 3,661 | 3,545 |
Change in defined benefit obligations: | ||
Current service cost | 54 | 47 |
Interest income (cost) | (118) | (122) |
Actuarial losses (gains) | (253) | 209 |
Benefits paid | (180) | (159) |
Settlement losses (gains) | 0 | (86) |
Plan amendments | (1) | (2) |
Foreign exchange rate movement | 59 | (15) |
Change in plan assets: | ||
Net defined benefit liability (asset) - ending balance | 3,458 | 3,661 |
Present value of defined benefit obligation | Other post-retirement | ||
Disclosure of defined benefit plans [line items] | ||
Net defined benefit liability (asset) - beginning balance | 268 | 262 |
Change in defined benefit obligations: | ||
Current service cost | 5 | 3 |
Interest income (cost) | (9) | (10) |
Actuarial losses (gains) | (11) | 9 |
Benefits paid | (15) | (11) |
Settlement losses (gains) | 0 | 0 |
Plan amendments | 0 | 0 |
Foreign exchange rate movement | 6 | (5) |
Change in plan assets: | ||
Net defined benefit liability (asset) - ending balance | 262 | 268 |
Plan assets | ||
Disclosure of defined benefit plans [line items] | ||
Net defined benefit liability (asset) - beginning balance | (3,301) | (3,243) |
Change in defined benefit obligations: | ||
Interest income (cost) | 105 | 110 |
Benefits paid | (195) | (170) |
Settlement losses (gains) | 0 | (80) |
Foreign exchange rate movement | 57 | (9) |
Change in plan assets: | ||
Administrative expense | (1) | 0 |
Return on plan assets (excluding amounts included in net interest expense) | (156) | 116 |
Employer contributions | 142 | 91 |
Net defined benefit liability (asset) - ending balance | (3,253) | (3,301) |
Plan assets | Pension | ||
Disclosure of defined benefit plans [line items] | ||
Net defined benefit liability (asset) - beginning balance | (3,301) | (3,243) |
Change in defined benefit obligations: | ||
Interest income (cost) | 105 | 110 |
Benefits paid | (180) | (159) |
Settlement losses (gains) | 0 | (80) |
Foreign exchange rate movement | 57 | (9) |
Change in plan assets: | ||
Administrative expense | (1) | 0 |
Return on plan assets (excluding amounts included in net interest expense) | (156) | 116 |
Employer contributions | 127 | 80 |
Net defined benefit liability (asset) - ending balance | (3,253) | (3,301) |
Plan assets | Other post-retirement | ||
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 | (15) | (11) |
Settlement losses (gains) | 0 | 0 |
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 | 15 | 11 |
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, 2018 | Dec. 31, 2017 | |
Disclosure of defined benefit plans [line items] | ||
Current service cost | $ 59 | $ 50 |
Net interest expense (income) | 22 | 22 |
Settlement losses (gains)(1) | 0 | (6) |
Plan amendments | (1) | (2) |
Other long-term employee benefit losses (gains) | (3) | 4 |
Net benefit expense | 78 | 68 |
Pension | ||
Disclosure of defined benefit plans [line items] | ||
Current service cost | 54 | 47 |
Net interest expense (income) | 13 | 12 |
Settlement losses (gains)(1) | 0 | (6) |
Plan amendments | (1) | (2) |
Other long-term employee benefit losses (gains) | 0 | 0 |
Net benefit expense | 67 | 51 |
Other post-retirement | ||
Disclosure of defined benefit plans [line items] | ||
Current service cost | 5 | 3 |
Net interest expense (income) | 9 | 10 |
Settlement losses (gains)(1) | 0 | 0 |
Plan amendments | 0 | 0 |
Other long-term employee benefit losses (gains) | (3) | 4 |
Net benefit expense | $ 11 | $ 17 |
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, 2018 | Dec. 31, 2017 | |
Disclosure of defined benefit plans [line items] | ||
Return on plan assets (excluding amounts included in net interest expense) | $ (156) | $ 116 |
Actuarial gains (losses) arising from changes in demographic assumptions | 5 | 3 |
Actuarial gains (losses) arising from changes in financial assumptions | 249 | (172) |
Actuarial gains (losses) arising from experience adjustments | 7 | (45) |
Foreign exchange rate movement | (4) | 7 |
Components of defined benefit costs recognized in Other comprehensive income (loss) | 101 | (91) |
Pension | ||
Disclosure of defined benefit plans [line items] | ||
Return on plan assets (excluding amounts included in net interest expense) | (156) | 116 |
Actuarial gains (losses) arising from changes in demographic assumptions | 7 | 2 |
Actuarial gains (losses) arising from changes in financial assumptions | 241 | (161) |
Actuarial gains (losses) arising from experience adjustments | 5 | (50) |
Foreign exchange rate movement | (2) | 6 |
Components of defined benefit costs recognized in Other comprehensive income (loss) | 95 | (87) |
Other post-retirement | ||
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 | (2) | 1 |
Actuarial gains (losses) arising from changes in financial assumptions | 8 | (11) |
Actuarial gains (losses) arising from experience adjustments | 2 | 5 |
Foreign exchange rate movement | (2) | 1 |
Components of defined benefit costs recognized in Other comprehensive income (loss) | $ 6 | $ (4) |
Pension Plans and Other Post-_7
Pension Plans and Other Post-Retirement Benefits - Schedule of Actuarial Assumptions (Details) - year | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Canada | Domestic defined benefit plans | ||
To determine defined benefit obligation at end of year: | ||
Discount rate for pension plans | 360.00% | 3.40% |
Rate of compensation increase | 300.00% | 3.10% |
To determine net benefit expense for year: | ||
Discount rate for pension plans | 340.00% | 3.70% |
Rate of compensation increase | 310.00% | 3.00% |
Health care trend rates: | ||
Initial health care trend rate | 542.00% | 5.47% |
Ultimate health care trend rate | 450.00% | 4.50% |
Year ultimate health care trend rate reached | 2,030 | 2,030 |
Mortality rates: | ||
Average duration (in years) of pension obligation | 17.3 | 17.1 |
United Kingdom | Foreign defined benefit plans | ||
To determine defined benefit obligation at end of year: | ||
Discount rate for pension plans | 285.00% | 2.30% |
Pension increases | 315.00% | 3.50% |
To determine net benefit expense for year: | ||
Discount rate for pension plans | 230.00% | 2.55% |
Pension increases | 350.00% | 3.55% |
Mortality rates: | ||
Average duration (in years) of pension obligation | 16.9 | 19 |
United States | Foreign defined benefit plans | ||
To determine defined benefit obligation at end of year: | ||
Discount rate for pension plans | 440.00% | 3.70% |
To determine net benefit expense for year: | ||
Discount rate for pension plans | 370.00% | 4.25% |
Health care trend rates: | ||
Initial health care trend rate | 650.00% | 6.50% |
Ultimate health care trend rate | 500.00% | 5.00% |
Year ultimate health care trend rate reached | 2,023 | 2,023 |
Mortality rates: | ||
Average duration (in years) of pension obligation | 12.2 | 13.3 |
Bottom of range | Canada | Domestic defined benefit plans | ||
To determine defined benefit obligation at end of year: | ||
Pension increases | 0.00% | 0.00% |
To determine net benefit expense for year: | ||
Pension increases | 0.00% | 0.00% |
Top of range | Canada | Domestic defined benefit plans | ||
To determine defined benefit obligation at end of year: | ||
Pension increases | 0.15% | 0.15% |
To determine net benefit expense for year: | ||
Pension increases | 0.15% | 0.15% |
Male - Individuals currently at age 65 | Canada | Domestic defined benefit plans | ||
Mortality rates: | ||
Life expectancy (in years) for individuals | 23 | 22 |
Male - Individuals currently at age 65 | United Kingdom | Foreign defined benefit plans | ||
Mortality rates: | ||
Life expectancy (in years) for individuals | 24 | 24 |
Male - Individuals currently at age 65 | United States | Foreign defined benefit plans | ||
Mortality rates: | ||
Life expectancy (in years) for individuals | 23 | 23 |
Female - Individuals currently at age 65 | Canada | Domestic defined benefit plans | ||
Mortality rates: | ||
Life expectancy (in years) for individuals | 25 | 25 |
Female - Individuals currently at age 65 | United Kingdom | Foreign defined benefit plans | ||
Mortality rates: | ||
Life expectancy (in years) for individuals | 25 | 26 |
Female - Individuals currently at age 65 | United States | Foreign defined benefit plans | ||
Mortality rates: | ||
Life expectancy (in years) for individuals | 24 | 24 |
Male - At 65 for individuals currently at age 45 | Canada | Domestic defined benefit plans | ||
Mortality rates: | ||
Life expectancy (in years) for individuals | 24 | 24 |
Male - At 65 for individuals currently at age 45 | United Kingdom | Foreign defined benefit plans | ||
Mortality rates: | ||
Life expectancy (in years) for individuals | 25 | 26 |
Male - At 65 for individuals currently at age 45 | United States | Foreign defined benefit plans | ||
Mortality rates: | ||
Life expectancy (in years) for individuals | 24 | 24 |
Female - At 65 for individuals currently at age 45 | Canada | Domestic defined benefit plans | ||
Mortality rates: | ||
Life expectancy (in years) for individuals | 26 | 25 |
Female - At 65 for individuals currently at age 45 | United Kingdom | Foreign defined benefit plans | ||
Mortality rates: | ||
Life expectancy (in years) for individuals | 28 | 29 |
Female - At 65 for individuals currently at age 45 | United States | Foreign defined benefit plans | ||
Mortality rates: | ||
Life expectancy (in years) for individuals | 26 | 26 |
Pension Plans and Other Post-_8
Pension Plans and Other Post-Retirement Benefits - Schedule of Sensitivity Analysis (Details) $ in Millions | Dec. 31, 2018CAD ($) |
Interest/discount rate sensitivity | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Percentage of reasonably possible decrease in actuarial assumption | 1.00% |
Percentage of reasonably possible increase in actuarial assumption | 1.00% |
Rate of compensation increase assumption | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Percentage of reasonably possible decrease in actuarial assumption | 1.00% |
Percentage of reasonably possible increase in actuarial assumption | 1.00% |
Health care trend rate assumption | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Percentage of reasonably possible decrease in actuarial assumption | 1.00% |
Percentage of reasonably possible increase in actuarial assumption | 1.00% |
Mortality rates | |
Disclosure of sensitivity analysis for actuarial assumptions [line items] | |
Percentage of reasonably possible decrease in actuarial assumption | 10.00% |
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 | $ 644 |
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption | (500) |
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 | (75) |
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption | 78 |
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 | 89 |
Other post-retirement | 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 | 33 |
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption | (28) |
Other post-retirement | 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 | (13) |
Increase (decrease) in defined benefit obligation due to reasonably possible increase in actuarial assumption | 15 |
Other post-retirement | 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 | $ 6 |
Pension Plans and Other Post-_9
Pension Plans and Other Post-Retirement Benefits - Schedule of Plan Asset Allocation (Details) | Dec. 31, 2018 | Dec. 31, 2017 |
Employee Benefits [Abstract] | ||
Equity investments | 3.00% | 3.00% |
Fixed income investments | 76.00% | 86.00% |
Real estate investments | 8.00% | 7.00% |
Qualifying insurance contract | 9.00% | 0.00% |
Other | 4.00% | 4.00% |
Total composition of fair value of plan assets | 100.00% | 100.00% |
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, 2018CAD ($) | |
Disclosure of defined benefit plans [line items] | |
Expected contributions for the next 12 months | $ 134 |
Pension | |
Disclosure of defined benefit plans [line items] | |
Expected contributions for the next 12 months | 118 |
Other post-retirement | |
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, 2018CAD ($) |
Disclosure of defined benefit plans [line items] | |
2,019 | $ 176 |
2,020 | 184 |
2,021 | 191 |
2,022 | 200 |
2,023 | 207 |
2024 to 2028 | 1,114 |
Pension | |
Disclosure of defined benefit plans [line items] | |
2,019 | 160 |
2,020 | 168 |
2,021 | 175 |
2,022 | 183 |
2,023 | 190 |
2024 to 2028 | 1,022 |
Other post-retirement | |
Disclosure of defined benefit plans [line items] | |
2,019 | 16 |
2,020 | 16 |
2,021 | 16 |
2,022 | 17 |
2,023 | 17 |
2024 to 2028 | $ 92 |
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, 2018 | Dec. 31, 2017 | |
Earnings per share [line items] | ||
Common shareholders' net income (loss) for basic earnings per share | $ 2,522 | $ 2,149 |
Add: Increase in income due to convertible instruments | 10 | 10 |
Common shareholders' net income (loss) on a diluted basis | $ 2,532 | $ 2,159 |
Weighted average number of common shares outstanding for basic earnings per share (in shares) | 606 | 613 |
Dilutive impact of stock options (in shares) | 1 | 1 |
Dilutive impact of convertible instruments (in shares) | 4 | 4 |
Weighted average number of common shares outstanding on a diluted basis (in shares) | 611 | 618 |
Basic earnings (loss) per share (in CAD per share) | $ 4.16 | $ 3.51 |
Diluted earnings (loss) per share (in CAD per share) | $ 4.14 | $ 3.49 |
Stock Option | ||
Earnings per share [line items] | ||
Stock options excluded from computation of earnings per share (in shares) | 1 | 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) and Non-Controlling Interests - Summary of Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of analysis of other comprehensive income by item [line items] | ||
Accumulated other comprehensive income, beginning balance | $ 1,114 | $ 1,669 |
Other comprehensive income (loss) | 590 | (568) |
Other | 13 | |
Accumulated other comprehensive income, ending balance | 1,704 | 1,114 |
Unrealized foreign currency translation gains (losses), net of hedging activities | ||
Disclosure of analysis of other comprehensive income by item [line items] | ||
Accumulated other comprehensive income, beginning balance | 1,012 | 1,749 |
Other comprehensive income (loss) | 911 | (737) |
Accumulated other comprehensive income, ending balance | 1,923 | 1,012 |
Unrealized gains (losses) on available-for-sale assets | ||
Disclosure of analysis of other comprehensive income by item [line items] | ||
Accumulated other comprehensive income, beginning balance | 346 | 211 |
Other comprehensive income (loss) | (402) | 135 |
Accumulated other comprehensive income, ending balance | (56) | 346 |
Unrealized gains (losses) on cash flow hedges | ||
Disclosure of analysis of other comprehensive income by item [line items] | ||
Accumulated other comprehensive income, beginning balance | (11) | (6) |
Other comprehensive income (loss) | (10) | (5) |
Accumulated other comprehensive income, ending balance | (21) | (11) |
Share of other comprehensive income (loss) in joint ventures and associates | ||
Disclosure of analysis of other comprehensive income by item [line items] | ||
Accumulated other comprehensive income, beginning balance | (31) | 0 |
Other comprehensive income (loss) | 7 | (31) |
Accumulated other comprehensive income, ending balance | (24) | (31) |
Remeasurement of defined benefit plans | ||
Disclosure of analysis of other comprehensive income by item [line items] | ||
Accumulated other comprehensive income, beginning balance | (347) | (291) |
Other comprehensive income (loss) | 84 | (69) |
Other | 13 | |
Accumulated other comprehensive income, ending balance | (263) | (347) |
Revaluation surplus on transfers to investment properties | ||
Disclosure of analysis of other comprehensive income by item [line items] | ||
Accumulated other comprehensive income, beginning balance | 145 | 6 |
Other comprehensive income (loss) | 0 | 139 |
Accumulated other comprehensive income, ending balance | 145 | 145 |
Participating policyholders | ||
Disclosure of analysis of other comprehensive income by item [line items] | ||
Accumulated other comprehensive income, beginning balance | 9 | 16 |
Other comprehensive income (loss) | 5 | (7) |
Other | 0 | |
Accumulated other comprehensive income, ending balance | 14 | 9 |
Transfer to retained earnings (from accumulated other comprehensive income) | (89) | |
Shareholders | ||
Disclosure of analysis of other comprehensive income by item [line items] | ||
Accumulated other comprehensive income, beginning balance | 1,105 | 1,653 |
Other comprehensive income (loss) | (561) | |
Other | 13 | |
Accumulated other comprehensive income, ending balance | 1,105 | |
Retained earnings | ||
Disclosure of analysis of other comprehensive income by item [line items] | ||
Transfer to retained earnings (from accumulated other comprehensive income) | (13) | |
Accumulated other comprehensive income (loss), net of taxes | ||
Disclosure of analysis of other comprehensive income by item [line items] | ||
Other comprehensive income (loss) | $ 585 | (561) |
Transfer to retained earnings (from accumulated other comprehensive income) | $ 13 |