Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document Information [Line Items] | |
Document Type | 40-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Trading Symbol | MFC |
Entity Registrant Name | MANULIFE FINANCIAL CORP |
Entity Central Index Key | 1,086,888 |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Common shares [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 1,981,836,232 |
Class A Shares Series 2 [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 14,000,000 |
Class A Shares Series 3 [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 12,000,000 |
Class 1 Shares Series 3 [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 6,335,831 |
Class 1 Shares Series 4 [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 1,664,169 |
Class 1 Shares Series 5 [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 8,000,000 |
Class 1 Shares Series 7 [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 10,000,000 |
Class 1 Shares Series 9 [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 10,000,000 |
Class 1 Shares Series 11 [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 8,000,000 |
Class 1 Shares Series 13 [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 8,000,000 |
Class 1 Shares Series 15 [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 8,000,000 |
Class 1 Shares Series 17 [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 14,000,000 |
Class 1 Shares Series 19 [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 10,000,000 |
Class 1 Shares Series 21 [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 17,000,000 |
Class 1 Shares Series 23 [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 19,000,000 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and short-term securities | CAD 15,965 | CAD 15,151 |
Debt securities | 174,000 | 168,622 |
Public equities | 21,545 | 19,496 |
Mortgages | 44,742 | 44,193 |
Private placements | 32,132 | 29,729 |
Policy loans | 5,808 | 6,041 |
Loans to bank clients | 1,737 | 1,745 |
Real estate | 13,810 | 14,132 |
Other invested assets | 24,483 | 22,760 |
Total invested assets (note 4) | 334,222 | 321,869 |
Other assets | ||
Accrued investment income | 2,182 | 2,260 |
Outstanding premiums | 1,148 | 845 |
Derivatives (note 5) | 15,569 | 23,672 |
Reinsurance assets (note 8) | 30,359 | 34,952 |
Deferred tax assets (note 6) | 4,569 | 4,439 |
Goodwill and intangible assets (note 7) | 9,840 | 10,107 |
Miscellaneous | 7,337 | 7,360 |
Total other assets | 71,004 | 83,635 |
Segregated funds net assets (note 22) | 324,307 | 315,177 |
Total assets | 729,533 | 720,681 |
Liabilities | ||
Insurance contract liabilities (note 8) | 304,605 | 297,505 |
Investment contract liabilities (note 9) | 3,126 | 3,275 |
Deposits from bank clients | 18,131 | 17,919 |
Derivatives (note 5) | 7,822 | 14,151 |
Deferred tax liabilities (note 6) | 1,281 | 1,359 |
Other liabilities | 14,926 | 15,596 |
Financial liabilities | 349,891 | 349,805 |
Long-term debt (note 11) | 4,785 | 5,696 |
Capital instruments (note 12) | 8,387 | 7,180 |
Segregated funds net liabilities (note 22) | 324,307 | 315,177 |
Total liabilities | 687,370 | 677,858 |
Equity | ||
Contributed surplus | 277 | 284 |
Shareholders' retained earnings | 10,083 | 9,759 |
Shareholders' accumulated other comprehensive income (loss): | ||
Pension and other post-employment plans | (364) | (417) |
Available-for-sale securities | 179 | (394) |
Cash flow hedges | (109) | (232) |
Translation of foreign operations and real estate revaluation surplus | 4,381 | 6,390 |
Total shareholders' equity | 41,013 | 41,832 |
Participating policyholders' equity | 221 | 248 |
Non-controlling interests | 929 | 743 |
Total equity | 42,163 | 42,823 |
Total liabilities and equity | 729,533 | 720,681 |
Preferred shares [Member] | ||
Equity | ||
Issued shares (note 13) | 3,577 | 3,577 |
Shareholders' accumulated other comprehensive income (loss): | ||
Total equity | 3,577 | 3,577 |
Common shares [Member] | ||
Equity | ||
Issued shares (note 13) | 22,989 | 22,865 |
Shareholders' accumulated other comprehensive income (loss): | ||
Total equity | CAD 22,989 | CAD 22,865 |
Consolidated Statements of Inco
Consolidated Statements of Income - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Premium income | ||
Gross premiums | CAD 36,361 | CAD 36,659 |
Premiums ceded to reinsurers | (8,151) | (9,027) |
Net premiums | 28,210 | 27,632 |
Investment income (note 4) | ||
Investment income | 13,649 | 13,390 |
Realized and unrealized gains on assets supporting insurance and investment contract liabilities and on the macro hedge program | 5,718 | 1,134 |
Net investment income | 19,367 | 14,524 |
Other revenue | 10,746 | 11,181 |
Total revenue | 58,323 | 53,337 |
Contract benefits and expenses To contract holders and beneficiaries | ||
Gross claims and benefits (note 8) | 24,994 | 25,059 |
Change in insurance contract liabilities | 20,023 | 18,014 |
Change in investment contract liabilities | 173 | |
Benefits and expenses ceded to reinsurers | (8,158) | (8,097) |
Change in reinsurance assets (note 8) | 2,269 | (842) |
Net benefits and claims | 39,301 | 34,134 |
General expenses | 7,233 | 6,995 |
Investment expenses (note 4) | 1,673 | 1,646 |
Commissions | 6,116 | 5,818 |
Interest expense | 1,139 | 1,013 |
Net premium taxes | 360 | 402 |
Total contract benefits and expenses | 55,822 | 50,008 |
Income before income taxes | 2,501 | 3,329 |
Income tax (expense) recovery | (239) | (196) |
Net income | 2,262 | 3,133 |
Net income (loss) attributed to: | ||
Non-controlling interests | 194 | 143 |
Participating policyholders | (36) | 61 |
Shareholders | 2,104 | 2,929 |
Net income | 2,262 | 3,133 |
Net income attributed to shareholders | 2,104 | 2,929 |
Preferred share dividends | (159) | (133) |
Common shareholders' net income | CAD 1,945 | CAD 2,796 |
Earnings per share | ||
Basic earnings per common share (note 13) | CAD 0.98 | CAD 1.42 |
Diluted earnings per common share (note 13) | 0.98 | 1.41 |
Dividends per common share | CAD 0.82 | CAD 0.74 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of comprehensive income [abstract] | ||
Net income | CAD 2,262 | CAD 3,133 |
Foreign exchange gains (losses) on: | ||
Translation of foreign operations | (2,256) | (1,044) |
Net investment hedges | 227 | 2 |
Available-for-sale financial securities: | ||
Unrealized gains (losses) arising during the year | 601 | (218) |
Reclassification of net realized gains and impairments to net income | (32) | (523) |
Cash flow hedges: | ||
Unrealized gains arising during the year | 110 | 21 |
Reclassification of realized losses to net income | 13 | 11 |
Share of other comprehensive income of associates | 1 | |
Total items that may be subsequently reclassified to net income | (1,336) | (1,751) |
Items that will not be reclassified to net income: | ||
Change in pension and other post-employment plans | 53 | 104 |
Real estate revaluation reserve | 30 | |
Total items that will not be reclassified to net income | 83 | 104 |
Other comprehensive loss, net of tax | (1,253) | (1,647) |
Total comprehensive income, net of tax | 1,009 | 1,486 |
Total comprehensive income (loss) attributed to: | ||
Non-controlling interests | 192 | 141 |
Participating policyholders | (27) | 61 |
Shareholders | 844 | 1,284 |
Income tax expense (recovery) on: | ||
Unrealized foreign exchange gains/losses on translation of foreign operations | (1) | 1 |
Unrealized foreign exchange gains/losses on net investment hedges | 48 | 22 |
Unrealized gains/losses on available-for-sale financial securities | 284 | (15) |
Reclassification of realized gains/losses and recoveries/impairments to net income on available-for-sale financial securities | 7 | (183) |
Unrealized gains/losses on cash flow hedges | 49 | 15 |
Reclassification of realized gains/losses to net income on cash flow hedges | 3 | 6 |
Change in pension and other post-employment plans | 37 | 57 |
Real estate revaluation reserve | 9 | |
Total income tax expense (recovery) | CAD 436 | CAD (97) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - CAD CAD in Millions | Total | Preferred shares [Member] | Common shares [Member] | Contributed Surplus [Member] | Shareholders' Retained Earnings [Member] | Shareholders' accumulated other comprehensive income (loss) ("AOCI") [Member] | Participating Policyholders' Equity [Member] | Non-controlling Interests [Member] |
Balance, beginning of year at Dec. 31, 2015 | CAD 2,693 | CAD 22,799 | CAD 277 | CAD 8,398 | CAD 6,992 | CAD 187 | CAD 592 | |
Change in unrealized foreign exchange gains (losses) of net foreign operations | CAD (1,044) | (1,042) | ||||||
Net income attributed to shareholders | 2,929 | 2,929 | ||||||
Net income attributed to non-controlling interests | 143 | 143 | ||||||
Issued (note 13) | 900 | |||||||
Exercise of stock options and deferred share units | (12) | |||||||
Net income (loss) attributed to participating policyholders | 61 | 61 | ||||||
Issued on exercise of stock options | 66 | |||||||
Change in actuarial gains (losses) on pension and other post-employment plans | 104 | 104 | ||||||
Preferred share dividends | (133) | |||||||
Other comprehensive loss attributed to non-controlling interests | (2) | |||||||
Issuance costs, net of tax | (16) | |||||||
Stock option expense | 19 | |||||||
Change in unrealized gains (losses) on available-for-sale financial securities | (218) | (739) | ||||||
Common share dividends | (1,435) | |||||||
Contributions (distributions), net | 10 | |||||||
Change in unrealized gains (losses) on derivative instruments designated as cash flow hedges | 21 | 32 | ||||||
Balance, end of year at Dec. 31, 2016 | 42,823 | 3,577 | 22,865 | 284 | 9,759 | 5,347 | 248 | 743 |
Total shareholders' equity, end of year | 41,832 | |||||||
Change in unrealized foreign exchange gains (losses) of net foreign operations | (2,256) | (2,029) | ||||||
Net income attributed to shareholders | 2,104 | 2,104 | ||||||
Net income attributed to non-controlling interests | 194 | 194 | ||||||
Exercise of stock options and deferred share units | (22) | |||||||
Net income (loss) attributed to participating policyholders | (36) | (36) | ||||||
Issued on exercise of stock options | 124 | |||||||
Change in actuarial gains (losses) on pension and other post-employment plans | 53 | 53 | ||||||
Preferred share dividends | (159) | |||||||
Other comprehensive loss attributed to non-controlling interests | (2) | |||||||
Issuance costs, net of tax | 0 | |||||||
Stock option expense | 15 | |||||||
Other comprehensive income attributed to policyholders | 9 | |||||||
Change in unrealized gains (losses) on available-for-sale financial securities | 601 | 572 | ||||||
Common share dividends | (1,621) | |||||||
Contributions (distributions), net | (6) | |||||||
Change in unrealized gains (losses) on derivative instruments designated as cash flow hedges | 110 | 123 | ||||||
Change in real estate revaluation reserve | 30 | 20 | ||||||
Share of other comprehensive income of associates | 1 | 1 | ||||||
Balance, end of year at Dec. 31, 2017 | 42,163 | CAD 3,577 | CAD 22,989 | CAD 277 | CAD 10,083 | CAD 4,087 | CAD 221 | CAD 929 |
Total shareholders' equity, end of year | CAD 41,013 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities | ||
Net income | CAD 2,262 | CAD 3,133 |
Adjustments: | ||
Increase in insurance contract liabilities | 20,023 | 18,014 |
Increase in investment contract liabilities | 173 | |
(Increase) decrease in reinsurance assets | 2,269 | (842) |
Amortization of (premium) discount on invested assets | 230 | 78 |
Other amortization | 560 | 693 |
Net realized and unrealized (gains) losses and impairment on assets | (7,188) | (2,804) |
Deferred income tax recovery | (331) | (235) |
Stock option expense | 15 | 19 |
Cash provided by (used in) operating activities before undernoted items | 18,013 | 18,056 |
Changes in policy related and operating receivables and payables | (222) | (1,039) |
Cash provided by (used in) operating activities | 17,791 | 17,017 |
Investing activities | ||
Purchases and mortgage advances | (87,224) | (104,059) |
Disposals and repayments | 70,720 | 82,001 |
Change in investment broker net receivables and payables | 227 | (186) |
Net cash decrease from sale and purchase of subsidiaries and businesses | (10) | (495) |
Cash provided by (used in) investing activities | (16,287) | (22,739) |
Financing activities | ||
Decrease in repurchase agreements and securities sold but not yet purchased | (29) | (23) |
Issue of long-term debt, net (note 11) | 3,899 | |
Redemption of long-term debt (note 11) | (607) | (158) |
Issue of capital instruments, net (note 12) | 2,209 | 479 |
Redemption of capital instruments (note 12) | (899) | (949) |
Secured borrowing from securitization transactions | 741 | 847 |
Changes in deposits from Bank clients, net | 261 | (157) |
Shareholders' dividends paid in cash | (1,780) | (1,593) |
Contributions from (distributions to) non-controlling interests, net | (6) | 10 |
Common shares issued, net (note 13) | 124 | 66 |
Preferred shares issued, net (note 13) | 884 | |
Cash provided by (used in) financing activities | 14 | 3,305 |
Cash and short-term securities | ||
Increase (decrease) during the year | 1,518 | (2,417) |
Effect of foreign exchange rate changes on cash and short-term securities | (658) | (347) |
Balance, beginning of year | 14,238 | 17,002 |
Balance, December 31 | 15,098 | 14,238 |
Cash and short-term securities | ||
Gross cash and short-term securities, beginning of year | 15,151 | 17,885 |
Net payments in transit, included in other liabilities, beginning of year | (913) | (883) |
Balance, beginning of year | 14,238 | 17,002 |
Gross cash and short-term securities, end of year | 15,965 | 15,151 |
Net payments in transit, included in other liabilities, end of year | (867) | (913) |
Balance, December 31 | 15,098 | 14,238 |
Supplemental disclosures on cash flow information | ||
Interest received | 10,596 | 10,550 |
Interest paid | 1,118 | 983 |
Income taxes paid | CAD 1,360 | CAD 841 |
Nature of Operations and Signif
Nature of Operations and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Nature of Operations and Significant Accounting Policies | Note 1 Nature of Operations and Significant Accounting Policies (a) Reporting entity Manulife Financial Corporation (“MFC”) is a publicly traded company and the holding company of The Manufacturers Life Insurance Company (“MLI”), a Canadian life insurance company. MFC and its subsidiaries (collectively, “Manulife” or the “Company”) is a leading financial services group with principal operations in Asia, Canada and the United States. Manulife’s international network of employees, agents and distribution partners offers financial protection and wealth management products and services to personal and business clients as well as asset management services to institutional customers. The Company operates as Manulife in Canada and Asia and as John Hancock in the United States. MFC is domiciled in Canada and incorporated under the Insurance Companies Act (Canada) (“ICA”). These Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). These Consolidated Financial Statements should be read in conjunction with “Risk Management” in the 2017 Management’s Discussion and Analysis (“MD&A”) dealing with IFRS 7 “Financial Instruments: Disclosures” as the discussion on market risk and liquidity risk includes certain disclosures that are considered an integral part of these Consolidated Financial Statements. These Consolidated Financial Statements as at and for the year ended December 31, 2017 were authorized for issue by MFC’s Board of Directors on February 7, 2018. (b) Basis of preparation The preparation of Consolidated Financial Statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities as at the date of the Consolidated Financial Statements, and the reported amounts of revenue and expenses during the reporting periods. Actual results may differ from these estimates. The most significant estimation processes relate to assumptions used in measuring insurance and investment contract liabilities, assessing assets for impairment, determining of pension and other post-employment benefit obligation and expense assumptions, determining income taxes and uncertain tax positions and fair valuation of certain invested assets. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the year in which the estimates are revised and in any future years affected. Although some variability is inherent in these estimates, management believes that the amounts recorded are appropriate. The significant accounting policies used and the most significant judgments made by management in applying these accounting policies in the preparation of these Consolidated Financial Statements are summarized below. (c) Fair value measurement Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction (not a forced liquidation or distress sale) between market participants at the measurement date, that is, an exit value. When available, quoted market prices are used to determine fair value. If quoted market prices are not available, fair value is typically based upon alternative valuation techniques such as discounted cash flows, matrix pricing, consensus pricing services and other techniques. Broker quotes are generally used when external public vendor prices are not available. The Company has a process in place that includes a review of price movements relative to the market, a comparison of prices between vendors, and a comparison to internal matrix pricing which uses predominately external observable data. Judgment is applied in adjusting external observable data for items including liquidity and credit factors. The Company categorizes its fair value measurements according to a three-level hierarchy. The hierarchy prioritizes the inputs used by the Company’s valuation techniques. A level is assigned to each fair value measurement based on the lowest level input significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are defined as follows: Level 1 – Fair value measurements that reflect unadjusted, quoted prices in active markets for identical assets and liabilities that the Company has the ability to access at the measurement date reflecting market transactions. Level 2 – Fair value measurements using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in inactive markets, inputs that are observable that are not prices (such as interest rates, credit risks, etc.) and inputs that are derived from or corroborated by observable market data. Most debt securities are classified within Level 2. Also, included in the Level 2 category are derivative instruments that are priced using models with observable market inputs, including interest rate swaps, equity swaps, and foreign currency forward contracts. Level 3 – Fair value measurements using significant non-market long-duration (d) Basis of consolidation MFC consolidates the financial statements of all entities, including certain structured entities that it controls. Subsidiaries are entities controlled by the Company. The Company has control over an entity when the Company has the power to govern the financial and operating policies of the entity, is exposed to variable returns from its activities which are significant in relation to the total variable returns of the entity and the Company is able to use its power over the entity to affect its share of variable returns. In assessing control, significant judgment is applied while considering all relevant facts and circumstances. When assessing decision-making power, the Company considers the extent of its rights relative to the management of an entity, the level of voting rights held in an entity which are potentially or presently exercisable, the existence of any contractual management agreements which may provide the Company with power over an entity’s financial and operating policies and to the extent of other parties’ ownership in an entity, if any, the possibility for de facto control being present. When assessing returns, the Company considers the significance of direct and indirect financial and non-financial The financial statements of subsidiaries are included in the MFC’s consolidated results from the date control is established and are excluded from consolidation from the date control ceases. The initial control assessment is performed at inception of the Company’s involvement with the entity and is reconsidered at a later date if the Company acquires or loses power over key operating and financial policies of the entity; acquires additional interests or disposes of interests in the entity; the contractual arrangements of the entity are amended such that the Company’s proportionate exposure to variable returns changes; or if the Company’s ability to use its power to affect its variable returns from the entity changes. The Company’s Consolidated Financial Statements have been prepared using uniform accounting policies for like transactions and events in similar circumstances. Intercompany balances, and income and expenses arising from intercompany transactions, have been eliminated in preparing the Consolidated Financial Statements. Non-controlling Non-controlling non-controlling The equity method of accounting is used to account for entities over which the Company has significant influence (“associates”), whereby the Company records its share of the associate’s net assets and financial results using uniform accounting policies for similar transactions and events. Significant judgment is used to determine whether voting rights, contractual management and other relationships with the entity, if any, provide the Company with significant influence over the entity. Gains and losses on the sale of associates are included in income when realized, while impairment losses are recognized immediately when there is objective evidence of impairment. Gains and losses on commercial transactions with associates are eliminated to the extent of the Company’s interest in the associate. Investments in associates are included in other invested assets on the Company’s Consolidated Statements of Financial Position. (e) Invested assets Invested assets that are considered financial instruments are classified as fair value through profit or loss (“FVTPL”), loans and receivables, or as available-for-sale non-derivative Valuation methods for the Company’s invested assets are described above. All fair value valuations are performed in accordance with IFRS 13 “Fair Value Measurement”. Disclosure of financial instruments carried at fair value with the three levels of the fair value hierarchy and the disclosure of the fair value for financial instruments not carried at fair value on the Consolidated Statements of Financial Position are presented in note 4. Fair value valuations are performed by the Company and by third-party service providers. When third-party service providers are engaged, the Company performs a variety of procedures to corroborate pricing information. These procedures may include, but are not limited to, inquiry and review of valuation techniques, inputs to the valuation and vendor controls reports. Cash and short-term securities comprise cash, current operating accounts, overnight bank and term deposits, and fixed income securities held for the purpose of meeting short-term cash commitments. Short-term securities are carried at fair value. Short-term securities are comprised of investments due to mature within one year of the date of purchase. Commercial paper and discount notes are classified as Level 2 because these securities are typically not actively traded. Net payments in transit and overdraft bank balances are included in other liabilities. Debt securities are carried at fair value. Debt securities are generally valued by independent pricing vendors using proprietary pricing models incorporating current market inputs for similar instruments with comparable terms and credit quality (matrix pricing). The significant inputs include, but are not limited to, yield curves, credit risks and spreads, measures of volatility and prepayment rates. These debt securities are classified as Level 2, but can be Level 3 if the significant inputs are market unobservable. Realized gains and losses on sale of debt securities and unrealized gains and losses on debt securities designated as FVTPL are recognized in investment income immediately. Unrealized gains and losses on AFS debt securities are recorded in OCI, with the exception of unrealized gains and losses on foreign currency translation which are included in income. Impairment losses on AFS debt securities are recognized in income on an individual security basis when there is objective evidence of impairment. Impairment is considered to have occurred, based on management’s judgment, when it is deemed probable that the Company will not be able to collect all amounts due according to the debt security’s contractual terms. Equities are comprised of common and preferred equities and are carried at fair value. Equities are generally classified as Level 1, as fair values are normally based on quoted market prices. Realized gains and losses on sale of equities and unrealized gains and losses on equities designated as FVTPL are recognized in investment income immediately. Unrealized gains and losses on AFS equities are recorded in OCI. Impairment losses on AFS equities are recognized in income on an individual security basis when there is objective evidence of impairment. Impairment is considered to have occurred when fair value has declined below cost by significant amounts or for prolonged periods of time. Judgment is applied in determining whether the decline is significant or prolonged. Mortgages are carried at amortized cost, and are classified as Level 3 for fair value purposes due to the lack of market observability of certain significant valuation inputs. Realized gains and losses are recorded in investment income immediately. Impairment losses are recorded on mortgages when there is no longer reasonable assurance as to the timely collection of the full amount of principal and interest and are measured based on the discounted value of expected future cash flows at the original effective interest rates inherent in the mortgage. Expected future cash flows of impaired mortgages are typically determined in reference to the fair value of collateral security underlying the mortgage, net of expected costs of realization and any applicable insurance recoveries. Significant judgment is applied in the determination of impairment including the timing and amount of future collections. The Company accounts for insured and uninsured mortgage securitizations as secured financing transactions since the criteria for sale accounting are not met. For these transactions, the Company continues to recognize the mortgages and records a liability in other liabilities for the amounts owed at maturity. Interest income from these mortgages and interest expense on the borrowings are recorded using the effective interest rate method. Private placements, which include corporate loans for which there is no active market, are carried at amortized cost and are generally classified as Level 2 for fair value disclosure purposes, but can be classified as Level 3 if significant inputs are market unobservable. Realized gains and losses are recorded in income immediately. Impairment losses are recorded on private placements when there is no longer assurance as to the timely collection of the full amount of principal and interest. Impairment is measured based on the discounted value of expected future cash flows at the original effective interest rate inherent in the loan. Significant judgment is applied in the determination of impairment including the timing and amount of future collections. Policy loans are carried at an amount equal to their unpaid balances and are classified as Level 2 for fair value disclosure purposes. Policy loans are fully collateralized by the cash surrender value of the underlying policies. Loans to Manulife Bank of Canada (“Manulife Bank” or “Bank”) clients are carried at unpaid principal balances less allowance for credit losses, if any, and are classified as Level 2 for fair value disclosure purposes. A loan to a Bank client is considered impaired when there is objective evidence of impairment as a result of one or more loss events that have occurred after initial recognition, with a negative impact on the estimated future cash flows of the loan. Once established, allowances for impairment of mortgages, private placements and loans to Bank clients are reversed only if the conditions that caused the impairment no longer exist. Reversals of impairment charges on AFS debt securities are only recognized in income to the extent that increases in fair value can be attributed to events subsequent to the impairment loss being recorded. Impairment losses for AFS equity instruments are not reversed through income. On disposition of an impaired asset, any allowance for impairment is released. In addition to impairments and provisions for loan losses (recoveries) reported in investment income, the measurement of insurance contract liabilities via investment return assumptions, includes expected future credit losses on fixed income investments. Refer to note 8(d). Interest income is recognized on debt securities, mortgages, private placements, policy loans and loans to Bank clients as it accrues and is calculated using the effective interest rate method. Premiums, discounts and transaction costs are amortized over the life of the underlying investment using the effective yield method for all debt securities as well as mortgages and private placements measured at amortized cost. The Company records purchases and sales of invested assets on a trade date basis, except for loans originated by the Company, which are recognized on a settlement date basis. Real estate consists of both own use and investment property. Own use property is carried at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is calculated based on the cost of an asset less its residual value and is recognized in income on a straight-line basis over the estimated useful life ranging from 30 to 60 years. Impairment losses are recorded in income to the extent the recoverable amount is less than the carrying amount. Where own use property is included in assets backing insurance contract liabilities, the fair value of the property is used in the valuation of insurance contract liabilities. Own use property is classified as Level 3 for fair value disclosure purposes. An investment property is a property held to earn rental income, for capital appreciation, or both. Investment properties are measured at fair value, with changes in fair value recognized in income. Fair value is determined using external appraisals that are based on the highest and best use of the property. The valuation techniques used include discounted cash flows, the direct capitalization method as well as comparable sales analysis and include both observable and unobservable inputs. Inputs include existing and assumed tenancies, market data from recent comparable transactions, future economic outlook and market risk assumptions, capitalization rates and internal rates of return. Investment properties are classified as Level 3 for fair value disclosure purposes. When a property changes from own use to investment property, any gain arising on the remeasurement of the property to fair value at the date of transfer is recognized in OCI, to the extent that it is not reversing a previous impairment loss. Reversals of impairment losses are recognized in income. Other invested assets include private equity and property investments held in power and infrastructure and timber, as well as in agriculture and oil and gas sectors. Private equity investments are accounted for as associates using the equity method (as described in note 1(d) above) or are classified as FVTPL or AFS and carried at fair value. Investments in oil and gas exploration and evaluation activities are measured on the cost basis using the “successful efforts” method. Timber and agriculture properties are measured at fair value with changes in fair value recognized in income, with the exception of buildings, equipment and bearer plants which are measured at amortized cost. The fair value of other invested assets is determined using a variety of valuation techniques as described in note 4. Other invested assets that are measured or disclosed at fair value are classified as Level 3. Other invested assets also include investments in leveraged leases, which are accounted for using the equity method. The carrying value under the equity method reflects the amortized cost of the lease receivable and related non-recourse (f) Goodwill and intangible assets Goodwill represents the difference between the purchase consideration of an acquired business and the Company’s proportionate share of the net identifiable assets acquired. It is initially recorded at cost and subsequently measured at cost less any accumulated impairment. Goodwill is tested for impairment at least annually and whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable at the cash generating unit (“CGU”) or group of CGUs level. The Company allocates goodwill to CGUs or groups of CGUs for the purpose of impairment testing based on the lowest level within the entity in which the goodwill is monitored for internal management purposes. The allocation is made to those CGUs or groups of CGUs that are expected to benefit from the business combination in which the goodwill arose. Any potential impairment of goodwill is identified by comparing the recoverable amount of a CGU or group of CGUs to its carrying value. Goodwill is reduced by the amount of deficiency, if any. If the deficiency exceeds the carrying amount of goodwill, the carrying values of the remaining assets in the CGU or group of CGUs are subject to being reduced by the excess on a pro-rata The recoverable amount of a CGU is the higher of the estimated fair value less costs to sell or the value-in-use value-in-use, pre-tax Intangible assets with indefinite useful lives include the John Hancock brand name and certain investment management contracts. The indefinite useful life assessment for brand is based on the brand name being protected in markets where branded products are sold by trademarks, which are renewable indefinitely, and for certain investment management contracts due to the ability to renew these contracts indefinitely. In addition, there are no legal, regulatory or contractual provisions that limit the useful lives of these intangible assets. An intangible asset with an indefinite useful life is not amortized but is subject to an annual impairment test which is performed more frequently if there is an indication that it is not recoverable. Intangible assets with finite useful lives include acquired distribution networks, customer relationships, capitalized software, certain investment management contracts and other contractual rights. Distribution networks, customer relationships, and other finite life intangible assets are amortized over their estimated useful lives, six to 68 years, either based on straight-line or in relation to other asset consumption metrics. Software intangible assets are amortized on a straight-line basis over their estimated useful lives of three to five years. Finite life intangible assets are assessed for indicators of impairment at each reporting period. If any indication of impairment exists, these assets are subject to an impairment test. (g) Miscellaneous assets Miscellaneous assets include assets held in a rabbi trust with respect to unfunded defined benefit obligations, defined benefit assets, if any (refer to note 1(o)), deferred acquisition costs and capital assets. Deferred acquisition costs are carried at cost less accumulated amortization. These costs are recognized over the period where redemption fees may be charged or over the period revenue is earned. Capital assets are carried at cost less accumulated amortization computed on a straight-line basis over their estimated useful lives, which vary from two to 10 years. (h) Segregated funds The Company manages a number of segregated funds on behalf of policyholders. The investment returns on these funds are passed directly to policyholders. In some cases, the Company has provided guarantees associated with these funds. Segregated funds net assets are measured at fair value and primarily include investments in mutual funds, debt securities, equities, real estate, short-term investments and cash and cash equivalents. With respect to the consolidation requirement of IFRS, in assessing the Company’s degree of control over the underlying investments, the Company considers the scope of its decision-making rights, the rights held by other parties, its remuneration as an investment manager and its exposure to variability of returns. The Company has determined that it does not have control over the underlying investments as it acts as an agent on behalf of segregated fund policyholders. The methodology applied to determine the fair value of investments held in segregated funds is consistent with that applied to invested assets held by the general fund, as described above in note 1(e). Segregated funds liabilities are measured based on the value of the segregated funds net assets. Investment returns on segregated funds assets belong to policyholders and the Company does not bear the risk associated with these assets outside of guarantees offered on certain variable life and annuity products, for which the underlying investments are held within segregated funds. Accordingly, investment income earned by segregated funds and expenses incurred by segregated funds are offset and are not separately presented in the Consolidated Statements of Income. Fee income earned by the Company for managing the segregated funds is included in other revenue. Refer to note 22. Liabilities related to guarantees associated with certain segregated funds, as a result of certain variable life and annuity contracts, are recorded within the Company’s insurance contract liabilities. The Company holds assets supporting these guarantees which are recognized in invested assets according to their investment type. (i) Insurance and investment contract liabilities Most contracts issued by the Company are considered insurance, investment or service contracts. Contracts under which the Company accepts significant insurance risk from a policyholder are classified as insurance contracts in the Consolidated Financial Statements. A contract is considered to have significant insurance risk if, and only if, an insured event could cause an insurer to make significant additional payments in any scenario, excluding scenarios that lack commercial substance at the inception of the contract. Contracts under which the Company does not accept significant insurance risk are either classified as investment contracts or considered service contracts and are accounted for in accordance with IAS 39 “ ” Once a contract has been classified as an insurance contract it remains an insurance contract even if the insurance risk reduces significantly. Investment contracts can be reclassified as insurance contracts if insurance risk subsequently becomes significant. Insurance contract liabilities, net of reinsurance assets, represent the amount which, together with estimated future premiums and net investment income, will be sufficient to pay estimated future benefits, policyholder dividends and refunds, taxes (other than income taxes) and expenses on policies in-force. Investment contract liabilities include contracts issued to retail and institutional investors that do not contain significant insurance risk. Investment contract liabilities and deposits are measured at amortized cost or at fair value by election. The election reduces accounting mismatches between assets supporting these contracts and the related policy liabilities. Investment contract liabilities are derecognized when the contract expires, is discharged or is cancelled. Derivatives embedded within insurance contracts are separated if they are not considered to be closely related to the host insurance contract and do not meet the definition of an insurance contract. These embedded derivatives are presented separately in other assets or other liabilities and are measured at fair value with changes in fair value recognized in income. (j) Reinsurance assets The Company uses reinsurance in the normal course of business to manage its risk exposure. Insurance ceded to a reinsurer does not relieve the Company from its obligations to policyholders. The Company remains liable to its policyholders for the portion reinsured to the extent that any reinsurer does not meet its obligations for reinsurance ceded to it under a reinsurance agreement. Reinsurance assets represent the benefit derived from reinsurance agreements in-force Gains or losses on reinsurance transactions are recognized in income immediately on the transaction date and are not amortized. Premiums ceded and claims reimbursed are presented on a gross basis on the Consolidated Statements of Income. Reinsurance assets are not offset against the related insurance contract liabilities and are presented separately on the Consolidated Statements of Financial Position. Refer to note 8(a). (k) Other financial instruments accounted for as liabilities The Company issues a variety of other financial instruments classified as liabilities, including notes payable, term notes, senior notes, senior debentures, subordinated notes, surplus notes, subscription receipts and preferred shares. These financial liabilities are measured at amortized cost, with issuance costs deferred and amortized using the effective interest rate method. (l) Income taxes The provision for income taxes is calculated based on income tax laws and income tax rates substantively enacted as at the date of the Consolidated Statements of Financial Position. The income tax provision is comprised of current income taxes and deferred income taxes. Current and deferred income taxes relating to items recognized in OCI and directly in equity are similarly recognized in OCI and directly in equity, respectively. Current income taxes are amounts expected to be payable or recoverable as a result of operations in the current year and any adjustments to taxes payable in respect of previous years. Deferred income taxes are provided for using the liability method and result from temporary differences between the carrying values of assets and liabilities and their respective tax bases. Deferred income taxes are measured at the substantively enacted tax rates that are expected to be applied to temporary differences when they reverse. A deferred tax asset is recognized to the extent that future realization of the tax benefit is probable. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the tax benefit will be realized. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets and they relate to income taxes levied by the same tax authority on the same taxable entity. Deferred tax liabilities are recognized for all taxable temporary differences, except in respect of taxable temporary differences associated with investments in subsidiaries and associates, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. The Company records provisions for uncertain tax positions if it is probable that the Company will make a payment on tax positions as a result of examinations by tax authorities. These provisions are measured at the Company’s best estimate of the amount expected to be paid. Provisions are reversed to income in the period in which management assesses they are no longer required or determined by statute. The Company is subject to income tax laws in various jurisdictions. Tax laws are complex and potentially subject to different interpretations by the taxpayer and the relevant tax authority. The provision for income taxes and deferred income taxes represents management’s interpretation of the relevant tax laws and its estimate of current and future income tax implications of the transactions and events during the year. The Company may be required to change its provision for income taxes or deferred income tax balances when the ultimate deductibility of certain items is successfully challenged by taxing authorities, or if estimates used in determining the amount of deferred tax asset to recognize change significantly, or when receipt of new information indicates the need for adjustment in the amount of deferred income taxes to be recognized. Additionally, future events, such as changes in tax laws, tax regulations, or interpretations of such laws or regulations, could have an impact on the provision for income taxes, deferred tax balances and the effective tax rate. Any such changes could materially affect the amounts reported in the Consolidated Financial Statements in the period these changes occur. (m) Foreign currency translation Items included in the financial statements of each of the Company’s subsidiaries are measured by each subsidiary using the currency of the primary economic environment in which the entity operates (the “functional currency”). Transactions in a foreign currency are translated to the functional currency at the exchange rate prevailing at the date of the transaction. Assets and liabilities denominated in foreign currencies are translated to the functional currency at the exchange rate in effect at the reporting date. Revenue and expenses denominated in foreign currencies are translated at |
Accounting and Reporting Change
Accounting and Reporting Changes | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Accounting and Reporting Changes | Note 2 Accounting and Reporting Changes (a) Changes in accounting policy (I) Annual improvements to IFRS Standards 2014 – 2016 Cycle Effective January 1, 2017, the Company adopted certain amendments issued within the Annual Improvements to IFRS Standards 2014-2016 Cycle, as issued by the IASB in December 2016. There are various minor amendments which are effective in 2017, with other amendments being effective January 1, 2018. The currently effective amendments were applied retrospectively. Adoption of these amendments did not have a significant impact on the Company’s Consolidated Financial Statements. (II) Amendments to IAS 12 “Income Taxes” Effective January 1, 2017, the Company adopted the amendments issued in January 2016 to IAS 12 “Income Taxes”. These amendments were applied retrospectively. The amendments clarify recognition of deferred tax assets relating to unrealized losses on debt instruments measured at fair value. A deductible temporary difference arises when the carrying amount of the debt instrument measured at fair value is less than the cost for tax purposes, irrespective of whether the debt instrument is held for sale or held to maturity. The recognition of the deferred tax asset that arises from this deductible temporary difference is considered in combination with other deferred taxes applying local tax law restrictions where applicable. In addition, when estimating future taxable profits, consideration can be given to recovering more than the asset’s carrying amount where probable. Adoption of these amendments did not have a significant impact on the Company’s Consolidated Financial Statements. (III) Amendments to IAS 7 “Statement of Cash Flows” Effective January 1, 2017, the Company adopted the amendments issued in January 2016 to IAS 7 “Statement of Cash Flows”. These amendments were applied prospectively. These amendments require companies to provide information about changes in their financing liabilities. Adoption of these amendments did not have a significant impact on the Company’s Consolidated Financial Statements. (b) Future accounting and reporting changes (I) IFRS 15 “Revenue from Contracts with Customers” IFRS 15 “Revenue from Contracts with Customers” was issued in May 2014, and replaces IAS 11 “Construction Contracts” IAS 18 “Revenue” and several interpretations. Amendments to IFRS 15 were issued in April 2016. IFRS 15 as amended is effective for annual periods beginning on or after January 1, 2018. The Company will adopt IFRS 15 effective January 1, 2018, using the modified retrospective method with no restatement of comparative information. IFRS 15 clarifies revenue recognition principles, provides a robust framework for recognizing revenue and cash flows arising from contracts with customers and enhances qualitative and quantitative disclosure requirements. IFRS 15 does not apply to insurance contracts, financial instruments and lease contracts. The Company’s service arrangements are generally satisfied over time, with revenue measured and collected from customers within a short term, as services are rendered. Adoption of IFRS 15 is not expected to have a significant impact on the Company’s Consolidated Financial Statements. (II) IFRS Interpretation Committee (“IFRIC”) Interpretation 22 “Foreign Currency Transactions and Advance Consideration” IFRIC 22 “Foreign Currency Transactions and Advance Consideration” was issued in December 2016 and is effective for annual periods beginning on or after January 1, 2018 and may be applied retrospectively or prospectively. IFRIC 22 addresses which foreign exchange rate to use to measure a foreign currency transaction when advance payments are made or received and non-monetary non-monetary (III) Amendments to IFRS 2 “Share-Based Payment” Amendments to IFRS 2 “Share-Based Payment” were issued in June 2016 and are effective for annual periods beginning on or after January 1, 2018, to be applied prospectively. The amendments clarify the effects of vesting and non-vesting (IV) IFRS 9 “Financial Instruments” IFRS 9 “Financial Instruments” was issued in November 2009 and amended in October 2010, November 2013 and July 2014, and is effective for years beginning on or after January 1, 2018, to be applied retrospectively, or on a modified retrospective basis. Additionally, the IASB issued amendments in October 2017 that are effective for annual periods beginning on or after January 1, 2019. The standard is intended to replace IAS 39 “Financial Instruments: Recognition and Measurement”. The project has been divided into three phases: classification and measurement, impairment of financial assets, and hedge accounting. IFRS 9’s current classification and measurement methodology provides that financial assets are measured at either amortized cost or fair value on the basis of the entity’s business model for managing the financial assets and the contractual cash flow characteristics of the financial assets. The classification and measurement for financial liabilities remains generally unchanged; however, for a financial liability designated as at fair value through profit or loss, revisions have been made in the accounting for changes in fair value attributable to changes in the credit risk of that liability. Gains or losses caused by changes in an entity’s own credit risk on such liabilities are no longer recognized in profit or loss but instead are reflected in OCI. Revisions to hedge accounting were issued in November 2013 as part of the overall IFRS 9 project. The amendment introduces a new hedge accounting model, together with corresponding disclosures about risk management activities for those applying hedge accounting. The new model represents a substantial overhaul of hedge accounting that will enable entities to better reflect their risk management activities in their financial statements. Revisions issued in July 2014 replace the existing incurred loss model used for measuring the allowance for credit losses with an expected credit loss model. Changes were also made to the existing classification and measurement model designed primarily to address specific application issues raised by early adopters of the standard. The revision also addresses the income statement accounting mismatches and short-term volatility issues which have been identified as a result of the insurance contracts project. Revisions issued in October 2017 allow financial assets to be measured at amortized cost or fair value through OCI even if the lender is required to pay a reasonable compensation in the event of an early termination of the contract by the borrower (also referred to as prepayment features with negative compensation). The Company expects to defer IFRS 9 until January 1, 2021 as allowed under the amendments to IFRS 4 “Insurance Contracts” outlined below. The Company is assessing the impact of this standard. (V) Amendments to IFRS 4 “Insurance Contracts” Amendments to IFRS 4 “Insurance Contracts” were issued in September 2016, which are effective for annual periods beginning on or after January 1, 2018. The amendments introduce two approaches to address concerns about the differing effective dates of IFRS 9 “Financial Instruments” and IFRS 17 “Insurance Contracts”: the overlay approach and the deferral approach. The overlay approach provides an option for all issuers of insurance contracts to adjust profit or loss for eligible financial assets by removing any additional accounting volatility that may arise from applying IFRS 9 before IFRS 17 is implemented. The deferral approach provides companies whose activities are predominantly related to insurance an optional temporary exemption from applying IFRS 9 until January 1, 2021. The Company qualifies for the exemption and intends to defer IFRS 9 until January 1, 2021. (VI) IFRS 17 “Insurance Contracts” IFRS 17 was issued in May 2017 and is effective for years beginning on January 1, 2021, and to be applied retrospectively. If full retrospective application to a group of contracts is impractical, the modified retrospective or fair value methods may be used. The standard will replace IFRS 4 “Insurance Contracts” and will materially change the recognition and measurement of insurance contracts and the corresponding presentation and disclosures in the Company’s Financial Statements and MD&A. The Company is assessing the implications of this standard and expects that it will have a significant impact on the Company’s Consolidated Financial Statements. In addition, in certain jurisdictions, including Canada, it could have a material effect on tax and regulatory capital positions that are dependent upon IFRS accounting values. For life insurance companies, such as Manulife, that have long-duration products and/or regulatory and tax regimes dependent upon IFRS accounting values, the Company believes that an effective date of January 1, 2021 is aggressive. Therefore, while the Company’s implementation project is well underway, the Company and others in the life insurance industry are encouraging the IASB to defer the effective date. (VII) IFRS 16 “Leases” IFRS 16 “Leases” was issued in January 2016 and is effective for years beginning on or after January 1, 2019, to be applied retrospectively or on a modified retrospective basis. It will replace IAS 17 “Leases” and IFRIC 4 “Determining whether an arrangement contains a lease”. IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract, the customer (“lessee”) and the supplier (“lessor”). The standard brings most leases on-balance on-balance right-of-use (VIII) IFRS Interpretation Committee (“IFRIC”) Interpretation 23 “Uncertainty over Income Tax Treatments” IFRIC 23 “Uncertainty over Income Tax Treatments” was issued in June 2017 and is effective for years beginning on or after January 1, 2019, to be applied retrospectively. IFRIC 23 provides guidance on applying the recognition and measurement requirements in IAS 12 when there is uncertainty over income tax treatments including whether uncertain tax treatments should be considered together or separately based on which approach better predicts resolution of the uncertainty. Adoption of IFRIC 23 is not expected to have a significant impact on the Company’s Consolidated Financial Statements. (IX) Amendments to IAS 28 “Investments in Associates and Joint Ventures” Amendments to IAS 28 “Investments in Associates and Joint Ventures” were issued in October 2017 and are effective for annual periods beginning on or after January 1, 2019, to be applied retrospectively. The amendments clarify that an entity applies IFRS 9 “Financial Instruments” to financial interests in an associate or joint venture to which the equity method is not applied. IAS 39 is being applied to these interests until IFRS 9 is adopted in 2021. Adoption of these amendments is not expected to have a significant impact on the Company’s Consolidated Financial Statements. (X) Annual Improvements 2015 – 2017 Cycle Annual Improvements 2015 – 2017 Cycle was issued in December 2017 and is effective for years beginning on or after January 1, 2019. The IASB issued three minor amendments to different standards as part of the Annual Improvements process, with the amendments to be applied prospectively. Adoption of these amendments is not expected to have significant impact on the Company’s Consolidated Financial Statements. |
Acquisition and Distribution Ag
Acquisition and Distribution Agreements | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Acquisition and Distribution Agreements | Note 3 Acquisition and Distribution Agreements (a) Mandatory Provident Fund business of Standard Chartered On November 1, 2016, the C C C 15-year C (b) Distribution agreement with DBS Bank Ltd (“DBS”) Effective January 1, 2016, the C 15-year C C C |
Invested Assets and Investment
Invested Assets and Investment Income | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Invested Assets and Investment Income | Note 4 Invested Assets and Investment Income (a) Carrying values and fair values of invested assets As at December 31, 2017 FVTPL (1) AFS (2) Other (3) Total carrying Total fair (9) Cash and short-term securities (4) $ 439 $ 11,429 $ 4,097 $ 15,965 $ 15,965 Debt securities (5) Canadian government and agency 17,886 4,892 – 22,778 22,778 U.S. government and agency 12,497 13,472 – 25,969 25,969 Other government and agency 16,838 2,988 – 19,826 19,826 Corporate 96,785 5,366 – 102,151 102,151 Mortgage/asset-backed securities 3,018 258 – 3,276 3,276 Public equities 18,473 3,072 – 21,545 21,545 Mortgages – – 44,742 44,742 46,065 Private placements – – 32,132 32,132 34,581 Policy loans – – 5,808 5,808 5,808 Loans to Bank clients – – 1,737 1,737 1,742 Real estate Own use property (6) – – 1,281 1,281 2,448 Investment property – – 12,529 12,529 12,529 Other invested assets Alternative long-duration assets (7) 12,018 88 8,624 20,730 21,053 Various other (8) 142 – 3,611 3,753 3,752 Total invested assets $ 178,096 $ 41,565 $ 114,561 $ 334,222 $ 339,488 As at December 31, 2016 FVTPL (1) AFS (2) Other (3) Total carrying Total fair (9) Cash and short-term securities (4) $ 269 $ 11,705 $ 3,177 $ 15,151 $ 15,151 Debt securities (5) Canadian government and agency 18,030 6,715 – 24,745 24,745 U.S. government and agency 13,971 13,333 – 27,304 27,304 Other government and agency 18,629 2,312 – 20,941 20,941 Corporate 87,374 5,041 – 92,415 92,415 Mortgage/asset-backed securities 2,886 331 – 3,217 3,217 Public equities 16,531 2,965 – 19,496 19,496 Mortgages – – 44,193 44,193 45,665 Private placements – – 29,729 29,729 31,459 Policy loans – – 6,041 6,041 6,041 Loans to Bank clients – – 1,745 1,745 1,746 Real estate Own use property (6) – – 1,376 1,376 2,524 Investment property – – 12,756 12,756 12,756 Other invested assets Alternative long-duration assets (7) 10,707 96 8,048 18,851 19,193 Various other (8) 164 – 3,745 3,909 3,910 Total invested assets $ 168,561 $ 42,498 $ 110,810 $ 321,869 $ 326,563 (1) The FVTPL classification was elected for securities backing insurance contract liabilities to substantially reduce any accounting mismatch arising from changes in the fair value of these assets and changes in the value of the related insurance contract liabilities. If this election had not been made and instead the available-for-sale (2) Securities that are designated as AFS are not actively traded by the Company but sales do occur as circumstances warrant. Such sales result in a reclassification of any accumulated unrealized gain (loss) in AOCI to net income as a realized gain (loss). (3) Primarily includes assets classified as loans and carried at amortized cost, own use properties, investment properties, equity method accounted investments, oil and gas investments, and leveraged leases. Refer to note 1(e) for further details regarding accounting policy. (4) Includes short-term securities with maturities of less than one year at acquisition amounting to $2,737 (2016 – $3,111), cash equivalents with maturities of less than 90 days at acquisition amounting to $9,131 (2016 – $8,863) and cash of $4,097 (2016 – $3,177). (5) Debt securities include securities which were acquired with maturities of less than one year and less than 90 days of $1,768 and $161, respectively (2016 – $893 and $192, respectively). (6) Includes accumulated depreciation of $389 (2016 – $404). (7) Alternative long-duration assets (“ALDA”) include investments in private equity of $4,959, power and infrastructure of $7,355, oil and gas of $2,813, timber and agriculture of $5,033 and various other invested assets of $570 (2016 – $4,619, $6,679, $2,093, $4,972 and $488, respectively). (8) Includes $3,273 (2016 – $3,369) of leveraged leases. Refer to note 1(e) regarding accounting policy. (9) The methodologies used in determining fair values of invested assets are described in note 1 and note 4(g). (b) Equity method accounted invested assets Other invested assets include investments in associates and joint ventures which are accounted for using the equity method of accounting as follows. 2017 2016 As at December 31, Carrying % of total Carrying % of total Leveraged leases $ 3,273 56 $ 3,369 58 Timber and agriculture 451 8 430 8 Real estate 498 9 419 7 Other 1,535 27 1,562 27 Total $ 5,757 100 $ 5,780 100 The Company’s share of profit and dividends from these investments for the year ended December 31, 2017 were $291 and $14, respectively (2016 – $252 and $17, respectively). (c) Investment income For the year ended December 31, 2017 FVTPL AFS Other (1) Total Yields (2) Cash and short-term securities 0.9% Interest income $ 7 $ 153 $ – $ 160 Gains (losses) (3) 22 (47 ) – (25 ) Debt securities 5.4% Interest income 5,102 577 – 5,679 Gains (losses) (3) 3,690 (205 ) – 3,485 Recovery (impairment loss), net 16 (1 ) – 15 Public equities 16.6% Dividend income 524 79 – 603 Gains (3) 2,372 226 – 2,598 Impairment loss – (14 ) – (14 ) Mortgages 3.9% Interest income – – 1,685 1,685 Gains (3) – – 69 69 Provision, net – – (32 ) (32 ) Private placements 5.3% Interest income – – 1,553 1,553 Gains (3) – – 43 43 Impairment loss, net – – 10 10 Policy loans – – 365 365 6.1% Loans to Bank clients 4.0% Interest income – – 68 68 Real estate 6.2% Rental income, net of depreciation (4) – – 517 517 Gains (3) – – 341 341 Impairment loss – – (4 ) (4 ) Derivatives n/a Interest income, net 809 – 84 893 Gains (losses) (3) (1,029 ) – 84 (945 ) Other invested assets 10.3% Interest income – – 174 174 Oil and gas, timber, agriculture and other income – – 1,690 1,690 Gains (losses) (3) 441 (7 ) 50 484 Impairment loss, net – – (45 ) (45 ) Total investment income $ 11,954 $ 761 $ 6,652 $ 19,367 6.0% Investment income Interest income $ 5,918 $ 730 $ 3,929 $ 10,577 3.3% Dividend, rental and other income 524 79 2,207 2,810 0.9% Impairments, provisions and recoveries, net 16 (15 ) (71 ) (70 ) 0.0% Other 460 (51 ) (77 ) 332 0.1% 6,918 743 5,988 13,649 Realized and unrealized gains (losses) on assets supporting insurance and investment contract liabilities and on macro equity hedges Debt securities 3,694 (8 ) – 3,686 1.1% Public equities 2,200 35 – 2,235 0.7% Mortgages – – 69 69 0.0% Private placements – – 40 40 0.0% Real estate – – 350 350 0.1% Other invested assets 329 (9 ) 121 441 0.1% Derivatives, including macro equity hedging program (1,187 ) – 84 (1,103 ) (0.3% ) 5,036 18 664 5,718 Total investment income $ 11,954 $ 761 $ 6,652 $ 19,367 6.0% For the year ended December 31, 2016 FVTPL AFS Other (1) Total Yields (2) Cash and short-term securities 0.7% Interest income $ 7 $ 117 $ – $ 124 Gains (losses) (3) 18 (18 ) – – Debt securities 4.7% Interest income 5,051 588 – 5,639 Gains (3) 1,658 548 – 2,206 Recovery (impairment loss), net (18 ) – – (18 ) Public equities 10.6% Dividend income 534 58 – 592 Gains (3) 1,008 201 – 1,209 Impairment loss – (48 ) – (48 ) Mortgages 4.1% Interest income – – 1,667 1,667 Gains (losses) (3) – – 81 81 Provision, net – – (7 ) (7 ) Private placements 5.4% Interest income – – 1,494 1,494 Gains (3) – – 17 17 Impairment loss, net – – (50 ) (50 ) Policy loans – – 358 358 6.1% Loans to Bank clients 3.9% Interest income – – 68 68 Real estate 4.9% Rental income, net of depreciation (4) – – 523 523 Gains (3) – – 160 160 Derivatives n/a Interest income, net 1,115 – (33 ) 1,082 Losses (3) (2,597 ) – – (2,597 ) Other invested assets 10.3% Interest income – – 103 103 Oil and gas, timber, agriculture and other income – – 1,162 1,162 Gains (3) 634 1 207 842 Impairment loss, net – – (83 ) (83 ) Total investment income $ 7,410 $ 1,447 $ 5,667 $ 14,524 4.7% Investment income Interest income $ 6,173 $ 703 $ 3,657 $ 10,533 3.4% Dividend, rental and other income 534 58 1,685 2,277 0.7% Impairments and provisions (18 ) (48 ) (140 ) (206 ) (0.1% ) Other (6 ) 707 85 786 0.2% 6,683 1,420 5,287 13,390 Realized and unrealized gains (losses) on assets supporting insurance and investment contract liabilities and on macro equity hedges Debt securities 1,657 5 – 1,662 0.5% Public equities 963 22 – 985 0.3% Mortgages – – 80 80 0.0% Private placements – – 12 12 0.0% Real estate – – 128 128 0.0% Other invested assets 688 – 160 848 0.3% Derivatives, including macro equity hedging program (2,581 ) – – (2,581 ) (0.8% ) 727 27 380 1,134 Total investment income $ 7,410 $ 1,447 $ 5,667 $ 14,524 4.7% (1) Primarily includes loans carried at amortized cost, own use properties, investment properties, derivative and hedging instruments in cash flow hedging relationships, equity method accounted investments, oil and gas investments, and leveraged leases. (2) Yields are based on income and are calculated using the geometric average of the carrying value of assets held during the reporting year. (3) Includes net realized gains (losses) as well as net unrealized gains (losses) for financial instruments at FVTPL, real estate investment properties, and other invested assets measured at fair value. Also includes net realized gains (losses) for financial instruments at AFS and other invested assets carried at amortized cost. (4) Rental income from investment properties is net of direct operating expenses. (d) Investment expenses The following table presents the Company’s total investment expenses. For the years ended December 31, 2017 2016 Related to invested assets $ 625 $ 581 Related to segregated, mutual and other funds 1,048 1,065 Total investment expenses $ 1,673 $ 1,646 (e) Investment properties The following table presents rental income and direct operating expenses of investment properties. For the years ended December 31, 2017 2016 Rental income from investment properties $ 1,120 $ 1,204 Direct operating expenses of investment properties that generated rental income (694 ) (764 ) Total $ 426 $ 440 (f) Mortgage securitization The Company securitizes certain insured and uninsured fixed and variable rate residential mortgages and Home Equity Lines of Credit (“HELOC”) through creation of mortgage-backed securities under the Canadian Mortgage Bond Program (“CMB”), and the HELOC securitization program. Benefits received from the securitization include interest spread between the asset and associated liability. There are no expected credit losses on securitized mortgages under the Canada Mortgage and Housing Corporation (“CMHC”) sponsored CMB and the Platinum Canadian Mortgage Trust (“PCMT”) HELOC securitization programs as they are insured by CMHC and other third-party insurance programs against borrowers’ default. Mortgages securitized in the Platinum Canadian Mortgage Trust II (“PCMT II”) program are uninsured. Cash flows received from the underlying securitized assets/mortgages are used to settle the related secured borrowing liability. For CMB transactions, receipts of principal are deposited into a trust account for settlement of the liability at time of maturity. These transferred assets and related cash flows cannot be transferred or used for other purposes. For the HELOC transactions, investors are entitled to periodic interest payments, and the remaining cash receipts of principal are allocated to the Company (the “Seller”) during the revolving period of the deal and are accumulated for settlement during an accumulation period, or repaid to the investor monthly during a reduction period, based on the terms of the note. The following table presents the carrying amount of securitized assets and secured borrowing liabilities. As at December 31, 2017 Securitized assets Securitization program Securitized Restricted cash and Total Secured borrowing (2) HELOC securitization (1) $ 2,024 $ 8 $ 2,032 $ 2,000 CMB securitization 1,480 – 1,480 1,523 Total $ 3,504 $ 8 $ 3,512 $ 3,523 As at December 31, 2016 Securitized assets Securitization program Securitized Restricted cash and Total Secured borrowing (2) HELOC securitization (1) $ 1,762 $ 8 $ 1,770 $ 1,750 CMB securitization 1,018 – 1,018 1,032 Total $ 2,780 $ 8 $ 2,788 $ 2,782 (1) Manulife Bank, a MFC subsidiary, securitizes a portion of its HELOC receivables through Platinum Canadian Mortgage Trust (“PCMT”), and Platinum Canadian Mortgage Trust II (“PCMT II”). PCMT funds the purchase of the co-ownership co-ownership (2) Secured borrowing liabilities primarily comprise of Series 2011-1 2016-1 Fair value of the securitized assets as at December 31, 2017 was $3,533 (2016 – $2,821) and the fair value of the associated liabilities was $3,503 (2016 – $2,776). (g) Fair value measurement The following table presents fair values and the fair value hierarchy of invested assets and segregated funds net assets measured at fair value in the Consolidated Statements of Financial Position. As at December 31, 2017 Total fair Level 1 Level 2 Level 3 Cash and short-term securities FVTPL $ 439 $ – $ 439 $ – AFS 11,429 – 11,429 – Other 4,097 4,097 – – Debt securities FVTPL Canadian government and agency 17,886 – 17,886 – U.S. government and agency 12,497 – 12,497 – Other government and agency 16,838 – 16,599 239 Corporate 96,785 2 96,073 710 Residential mortgage/asset-backed securities 8 – 7 1 Commercial mortgage/asset-backed securities 1,099 – 1,099 – Other securitized assets 1,911 – 1,886 25 AFS Canadian government and agency 4,892 – 4,892 – U.S. government and agency 13,472 – 13,472 – Other government and agency 2,988 – 2,941 47 Corporate 5,366 – 5,278 88 Residential mortgage/asset-backed securities 37 – 37 – Commercial mortgage/asset-backed securities 138 – 138 – Other securitized assets 83 – 82 1 Public equities FVTPL 18,473 18,470 – 3 AFS 3,072 3,069 3 – Real estate – investment property (1) 12,529 – – 12,529 Other invested assets (2) 16,203 – – 16,203 Segregated funds net assets (3) 324,307 286,490 33,562 4,255 Total $ 564,549 $ 312,128 $ 218,320 $ 34,101 As at December 31, 2016 Total fair Level 1 Level 2 Level 3 Cash and short-term securities FVTPL $ 269 $ – $ 269 $ – AFS 11,705 – 11,705 – Other 3,177 3,177 – – Debt securities FVTPL Canadian government and agency 18,030 – 18,030 – U.S. government and agency 13,971 – 13,971 – Other government and agency 18,629 – 18,357 272 Corporate 87,374 2 86,721 651 Residential mortgage/asset-backed securities 10 – 8 2 Commercial mortgage/asset-backed securities 680 – 674 6 Other securitized assets 2,196 – 2,161 35 AFS Canadian government and agency 6,715 – 6,715 – U.S. government and agency 13,333 – 13,333 – Other government and agency 2,312 – 2,261 51 Corporate 5,041 – 4,967 74 Residential mortgage/asset-backed securities 65 – 64 1 Commercial mortgage/asset-backed securities 123 – 121 2 Other securitized assets 143 – 141 2 Public equities FVTPL 16,531 16,524 – 7 AFS 2,965 2,963 2 – Real estate – investment property (1) 12,756 – – 12,756 Other invested assets (2) 14,849 – – 14,849 Segregated funds net assets (3) 315,177 278,066 32,537 4,574 Total $ 546,051 $ 300,732 $ 212,037 $ 33,282 (1) For investment properties, the significant unobservable inputs are capitalization rates (ranging from 3.50% to 9.00% during the year and ranging from 3.75% to 9.75% during the year 2016) and terminal capitalization rates (ranging from 4.0% to 9.25% during the year and ranging from 4.1% to 10.0% during the year 2016). Holding other factors constant, a lower capitalization or terminal capitalization rate will tend to increase the fair value of an investment property. Changes in fair value based on variations in unobservable inputs generally cannot be extrapolated because the relationship between the directional changes of each input is not usually linear. (2) Other invested assets measured at fair value are held primarily in power and infrastructure and timber sectors. The significant inputs used in the valuation of the Company’s power and infrastructure investments are primarily future distributable cash flows, terminal values and discount rates. Holding other factors constant, an increase to future distributable cash flows or terminal values would tend to increase the fair value of a power and infrastructure investment, while an increase in the discount rate would have the opposite effect. Discount rates during the year ranged from 9.20% to 16.5% (2016 – ranged from 9.63% to 16.0%). Disclosure of distributable cash flow and terminal value ranges are not meaningful given the disparity in estimates by project. The significant inputs used in the valuation of the Company’s investments in timberland are timber prices and discount rates. Holding other factors constant, an increase to timber prices would tend to increase the fair value of a timberland investment, while an increase in the discount rates would have the opposite effect. Discount rates during the year ranged from 5.0% to 7.5% (2016 – ranged from 5.0% to 7.5%). A range of prices for timber is not meaningful as the market price depends on factors such as property location and proximity to markets and export yards. (3) Segregated funds net assets are measured at fair value. The Company’s Level 3 segregated funds assets are predominantly invested in timberland properties valued as described above. For invested assets not measured at fair value in the Consolidated Statements of Financial Position, the following table presents their fair values categorized by the fair value hierarchy. As at December 31, 2017 Carrying Fair value Level 1 Level 2 Level 3 Mortgages (1) $ 44,742 $ 46,065 $ – $ – $ 46,065 Private placements (2) 32,132 34,581 – 28,514 6,067 Policy loans (3) 5,808 5,808 – 5,808 – Loans to Bank clients (4) 1,737 1,742 – 1,742 – Real estate – own use property (5) 1,281 2,448 – – 2,448 Other invested assets (6) 8,280 8,602 88 – 8,514 Total invested assets disclosed at fair value $ 93,980 $ 99,246 $ 88 $ 36,064 $ 63,094 As at December 31, 2016 Carrying Fair value Level 1 Level 2 Level 3 Mortgages (1) $ 44,193 $ 45,665 $ – $ – $ 45,665 Private placements (2) 29,729 31,459 – 26,073 5,386 Policy loans (3) 6,041 6,041 – 6,041 – Loans to Bank clients (4) 1,745 1,746 – 1,746 – Real estate – own use property (5) 1,376 2,524 – – 2,524 Other invested assets (6) 7,911 8,254 54 – 8,200 Total invested assets disclosed at fair value $ 90,995 $ 95,689 $ 54 $ 33,860 $ 61,775 (1) Fair value of commercial mortgages is determined through an internal valuation methodology using both observable and unobservable inputs. Unobservable inputs include credit assumptions and liquidity spread adjustments. Fair value of fixed-rate residential mortgages is determined using the discounted cash flow method. Inputs used for valuation are primarily comprised of prevailing interest rates and prepayment rates, if applicable. Fair value of variable-rate residential mortgages is assumed to be their carrying value. (2) Fair value of private placements is determined through an internal valuation methodology using both observable and unobservable inputs. Unobservable inputs include credit assumptions and liquidity spread adjustments. Private placements are classified within Level 2 unless the liquidity adjustment constitutes a significant price impact, in which case the securities are classified as Level 3. (3) Fair value of policy loans is equal to their unpaid principal balances. (4) Fair value of fixed-rate loans to Bank clients is determined using the discounted cash flow method. Inputs used for valuation are primarily comprised of current interest rates. Fair value of variable-rate loans is assumed to be their carrying value. (5) Fair value of own use real estate and the fair value hierarchy are determined in accordance with the methodologies described for real estate – investment property in note 1. (6) Primarily include leveraged leases, oil and gas properties and equity method accounted other invested assets. Fair value of leveraged leases is disclosed at their carrying values as fair value is not routinely calculated on these investments. Fair value for oil and gas properties is determined using external appraisals based on discounted cash flow methodology. Inputs used in valuation are primarily comprised of forecasted price curves, planned production, as well as capital expenditures, and operating costs. Fair value of equity method accounted other invested assets is determined using a variety of valuation techniques including discounted cash flows and market comparable approaches. Inputs vary based on the specific investment. Transfers between Level 1 and Level 2 The Company records transfers of assets and liabilities between Level 1 and Level 2 at their fair values as at the end of each reporting period. Assets are transferred out of Level 1 when they are no longer transacted with sufficient frequency and volume in an active market. During the year ended December 31, 2017, the Company transferred $nil (2016 – $nil) of assets measured at fair value from Level 1 to Level 2. Conversely, assets are transferred from Level 2 to Level 1 when transaction volume and frequency are indicative of an active market. The Company transferred $nil (2016 – $nil) of assets from Level 2 to Level 1 during the year ended December 31, 2017. For segregated funds net assets, the Company had $nil transfers from Level 1 to Level 2 for the year ended December 31, 2017 (2016 – $8). The Company had $5 transfers from Level 2 to Level 1 for the year ended December 31, 2017 (2016 – $nil). Invested assets and segregated funds net assets measured at fair value using significant unobservable inputs (Level 3) The Company classifies fair values of the invested assets and segregated funds net assets as Level 3 if there are no observable markets for these assets or, in the absence of active markets, the majority of the inputs used to determine fair value are based on the Company’s own assumptions about market participant assumptions. The Company prioritizes the use of market-based inputs over entity-based assumptions in determining Level 3 fair values and, therefore, the gains and losses in the tables below include changes in fair value due to both observable and unobservable factors. The following table presents a roll forward of invested assets and segregated funds net assets measured at fair value using significant unobservable inputs (Level 3) for the years ended December 31, 2017 and 2016. For the year ended Balance, Net (1) Net (2) Purchases Sales (3) Settlements Transfer into Level 3 (4) Transfer out of Level 3 (4) Currency Balance, Change in Debt securities FVTPL Other government & agency $ 272 $ (3 ) $ – $ 26 $ (58 ) $ (6 ) $ – $ – $ 8 $ 239 $ (3 ) Corporate 651 19 – 105 (34 ) (29 ) 24 (21 ) (5 ) 710 10 Residential mortgage/asset-backed securities 2 – – – – – – – (1 ) 1 (1 ) Commercial mortgage/asset-backed securities 6 – – – (5 ) (1 ) – – – – – Other securitized assets 35 (1 ) – – – (7 ) – – (2 ) 25 (1 ) 966 15 – 131 (97 ) (43 ) 24 (21 ) – 975 5 AFS Other government & agency 51 (1 ) (2 ) 14 (15 ) (2 ) 1 – 1 47 – Corporate 74 – 4 22 (10 ) (4 ) – – 2 88 – Residential mortgage/asset-backed securities 1 – (1 ) – – – – – – – – Commercial mortgage/asset-backed securities 2 – – – (1 ) (1 ) – – – – – Other securitized assets 2 – – – – (1 ) – – – 1 – 130 (1 ) 1 36 (26 ) (8 ) 1 – 3 136 – Public equities FVTPL 7 – – – (4 ) – – – – 3 – 7 – – – (4 ) – – – – 3 – Real estate – investment property 12,756 301 – 1,257 (1,267 ) – – – (518 ) 12,529 264 Other invested assets 14,849 395 – 3,022 (435 ) (837 ) – – (791 ) 16,203 244 27,605 696 – 4,279 (1,702 ) (837 ) – – (1,309 ) 28,732 508 Segregated funds net assets 4,574 60 – 261 (248 ) (54 ) – (184 ) (154 ) 4,255 45 Total $ 33,282 $ 770 $ 1 $ 4,707 $ (2,077 ) $ (942 ) $ 25 $ (205 ) $ (1,460 ) $ 34,101 $ 558 For the year ended December 31, 2016 Balance, Net (1) Net (2) Purchases Sales (3) Settlements Transfer into Level 3 (4) Transfer out of Level 3 (4) Currency Balance, Change in Debt securities FVTPL Other government & agency $ 310 $ 3 $ – $ 50 $ (41 ) $ (30 ) $ – $ – $ (20 ) $ 272 $ 1 Corporate 903 (29 ) – 83 (84 ) (134 ) 58 (124 ) (22 ) 651 (4 ) Residential mortgage/asset-backed securities 15 – – – (11 ) (1 ) – – (1 ) 2 1 Commercial mortgage/asset-backed securities 70 – – – (56 ) (4 ) – – (4 ) 6 (3 ) Other securitized assets 48 – – – (1 ) (7 ) – (4 ) (1 ) 35 – 1,346 (26 ) – 133 (193 ) (176 ) 58 (128 ) (48 ) 966 (5 ) AFS Other government & agency 42 – – 18 (6 ) – – – (3 ) 51 – Corporate 90 – (2 ) 29 (32 ) (3 ) – (5 ) (3 ) 74 – Residential mortgage/asset-backed securities 8 (1 ) 1 – (6 ) – – – (1 ) 1 – Commercial mortgage/asset-backed securities 4 – – – – (1 ) – – (1 ) 2 – Other securitized assets 5 – 2 – – (1 ) – (4 ) – 2 – 149 (1 ) 1 47 (44 ) (5 ) – (9 ) (8 ) 130 – Public equities FVTPL – – – 7 – – – – – 7 – – – – 7 – – – – – 7 – Real estate –investment property 13,968 163 – 681 (1,782 ) – – – (274 ) 12,756 197 Other invested assets 12,977 786 9 2,171 (76 ) (685 ) – – (333 ) 14,849 847 26,945 949 9 2,852 (1,858 ) (685 ) – – (607 ) 27,605 1,044 Segregated funds net assets 4,656 92 – 356 (312 ) (19 ) (12 ) (105 ) (82 ) 4,574 93 Total $ 33,096 $ 1,014 $ 10 $ 3,395 $ (2,407 ) $ (885 ) $ 46 $ (242 ) $ (745 ) $ 33,282 $ 1,132 (1) These amounts, except for the amount related to segregated funds net assets, are included in net investment income on the Consolidated Statements of Income. (2) These amounts are included in AOCI on the Consolidated Statements of Financial Position. (3) Sales in 2017 include $619 of U.S. commercial real estate sold to the Hancock US Real Estate Fund, L.P., an associate of the Company which is a structured entity based on partnership voting rights. The Company provides management services to the fund and owns approximately 11.7% of its partnership interests. Also in 2017, sales include US$313 (2016 – $1,011) of U.S. commercial real estate sold to the Manulife US Real Estate Investment Trust in Singapore, an associate of the Company which is a structured entity based on unitholder voting rights. The Company provides management services to the trust and owns approximately 9.5% of its units. (4) For assets transferred into and out of Level 3, the Company uses fair values of the assets at the beginning of the year. Transfers into Level 3 primarily result from securities that were impaired during the year or securities where a lack of observable market data (versus the previous period) resulted in reclassifying assets into Level 3. Transfers from Level 3 primarily result from observable market data now being available for the entire term structure of the debt security. |
Derivative and Hedging Instrume
Derivative and Hedging Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Derivative and Hedging Instruments | Note 5 Derivative and Hedging Instruments Derivatives are financial contracts, the value of which is derived from underlying interest rates, foreign exchange rates, other financial instruments, commodity prices or indices. The Company uses derivatives including swaps, forward and futures agreements, and options to manage current and anticipated exposures to changes in interest rates, foreign exchange rates, commodity prices and equity market prices, and to replicate permissible investments. Swaps are over-the-counter Forward and futures agreements are contractual obligations to buy or sell a financial instrument, foreign currency or other underlying commodity on a predetermined future date at a specified price. Forward contracts are OTC contracts negotiated between counterparties, whereas futures agreements are contracts with standard amounts and settlement dates that are traded on regulated exchanges. Options are contractual agreements whereby the holder has the right, but not the obligation, to buy (call option) or sell (put option) a security, exchange rate, interest rate, or other financial instrument at a predetermined price/rate within a specified time. See variable annuity dynamic hedging strategy in the “Risk Management” section of the Company’s 2017 MD&A for an explanation of the Company’s dynamic hedging strategy for its variable annuity product guarantees. (a) Fair value of derivatives The pricing models used to value OTC derivatives are based on market standard valuation methodologies and the inputs to these models are consistent with what a market participant would use when pricing the instruments. Derivative valuations can be affected by changes in interest rates, currency exchange rates, financial indices, credit spreads, default risk (including the counterparties to the contract), and market volatility. The significant inputs to the pricing models for most OTC derivatives are inputs that are observable or can be corroborated by observable market data and are classified as Level 2. Inputs that are observable generally include interest rates, foreign currency exchange rates and interest rate curves. However, certain OTC derivatives may rely on inputs that are significant to the fair value that are not observable in the market or cannot be derived principally from, or corroborated by, observable market data and these derivatives are classified as Level 3. Inputs that are unobservable generally include broker quotes, volatilities and inputs that are outside of the observable portion of the interest rate curve or other relevant market measures. These unobservable inputs may involve significant management judgment or estimation. Even though unobservable, these inputs are based on assumptions deemed appropriate given the circumstances and consistent with what market participants would use when pricing such instruments. The Company’s use of unobservable inputs is limited and the impact on derivative fair values does not represent a material amount as evidenced by the limited amount of Level 3 derivatives. The credit risk of both the counterparty and the Company are considered in determining the fair value for all OTC derivatives after considering the effects of netting agreements and collateral arrangements. The following table presents the gross notional amount and fair value of derivative contracts by the underlying risk exposure for derivatives in qualifying hedging and derivatives not designated in qualifying hedging relationships. As at December 31, 2017 2016 Notional Fair value Notional Fair value Type of hedge Instrument type Assets Liabilities Assets Liabilities Qualifying hedge accounting relationships Fair value hedges Interest rate swaps $ 548 $ – $ 20 $ 2,158 $ – $ 477 Foreign currency swaps 84 1 4 91 1 3 Cash flow hedges Foreign currency swaps 1,757 20 333 1,285 – 447 Forward contracts 165 – 4 255 – 23 Equity contracts 125 16 1 126 21 1 Total derivatives in qualifying hedge accounting relationships 2,679 37 362 3,915 22 951 Derivatives not designated in qualifying hedge accounting relationships Interest rate swaps 246,270 12,984 6,251 281,188 21,900 10,878 Interest rate futures 11,551 – – 11,616 – – Interest rate options 10,093 312 – 9,390 376 – Foreign currency swaps 16,321 494 1,122 12,226 347 1,645 Currency rate futures 3,157 – – 4,729 – – Forward contracts 20,341 915 65 15,411 340 644 Equity contracts 13,597 813 22 14,989 669 33 Credit default swaps 606 14 – 662 18 – Equity futures 12,158 – – 16,072 – – Total derivatives not designated in qualifying hedge accounting relationships 334,094 15,532 7,460 366,283 23,650 13,200 Total derivatives $ 336,773 $ 15,569 $ 7,822 $ 370,198 $ 23,672 $ 14,151 The following table presents fair value of derivative instruments by remaining term to maturity. Fair values disclosed below do not incorporate the impact of master netting agreements. Refer to note 10. Remaining term to maturity As at December 31, 2017 Less than 1 year 1 to 3 years 3 to 5 years Over 5 years Total Derivative assets $ 605 $ 822 $ 889 $ 13,253 $ 15,569 Derivative liabilities 224 149 168 7,281 7,822 Remaining term to maturity As at December 31, 2016 Less than 1 year 1 to 3 years 3 to 5 years Over 5 years Total Derivative assets $ 467 $ 680 $ 719 $ 21,806 $ 23,672 Derivative liabilities 593 595 511 12,452 14,151 The following table presents gross notional amount by remaining term to maturity, total fair value (including accrued interest), credit risk equivalent and risk-weighted amount by contract type. Remaining term to maturity (notional amounts) Fair value As at December 31, 2017 Under 1 year 1 to 5 years Over 5 years Total Positive Negative Net Credit risk equivalent (1) Risk- weighted amount (2) Interest rate contracts OTC swap contracts $ 7,161 $ 19,141 $ 112,412 $ 138,714 $ 13,379 $ (6,867 ) $ 6,512 $ 6,588 $ 809 Cleared swap contracts 1,615 12,928 93,561 108,104 245 (206 ) 39 – – Forward contracts 6,036 10,614 675 17,325 903 (38 ) 865 285 35 Futures 11,551 – – 11,551 – – – – – Options purchased 816 3,856 5,421 10,093 312 – 312 471 61 Subtotal 27,179 46,539 212,069 285,787 14,839 (7,111 ) 7,728 7,344 905 Foreign exchange Swap contracts 999 4,481 12,682 18,162 510 (1,483 ) (973 ) 1,874 200 Forward contracts 3,046 135 – 3,181 12 (31 ) (19 ) 101 12 Futures 3,157 – – 3,157 – – – – – Credit derivatives 38 568 – 606 14 – 14 – – Equity contracts Swap contracts 2,612 169 – 2,781 60 (14 ) 46 337 35 Futures 12,158 – – 12,158 – – – – – Options purchased 4,693 6,148 100 10,941 769 (10 ) 759 2,606 305 Subtotal including accrued interest 53,882 58,040 224,851 336,773 16,204 (8,649 ) 7,555 12,262 1,457 Less accrued interest – – – – 635 (827 ) (192 ) – – Total $ 53,882 $ 58,040 $ 224,851 $ 336,773 $ 15,569 $ (7,822 ) $ 7,747 $ 12,262 $ 1,457 Remaining term to maturity (notional amounts) Fair value As at December 31, 2016 Under 1 year 1 to 5 years Over 5 years Total Positive Negative Net Credit risk equivalent (1) Risk- weighted amount (2) Interest rate contracts OTC swap contracts $ 13,244 $ 37,395 $ 164,252 $ 214,891 $ 19,327 $ (10,154 ) $ 9,173 $ 10,205 $ 1,493 Cleared swap contracts 717 4,786 62,952 68,455 3,507 (2,117 ) 1,390 – – Interest rate forwards 7,229 6,143 873 14,245 326 (629 ) (303 ) 192 29 Futures 11,616 – – 11,616 – – – – – Options purchased 483 2,927 5,980 9,390 376 – 376 458 70 Subtotal 33,289 51,251 234,057 318,597 23,536 (12,900 ) 10,636 10,855 1,592 Foreign exchange Swap contracts 425 3,917 9,259 13,601 346 (2,120 ) (1,774 ) 1,491 181 Forward contracts 1,257 165 – 1,422 13 (38 ) (25 ) 62 9 Futures 4,729 – – 4,729 – – – – – Credit derivatives 47 615 – 662 18 – 18 – – Equity contracts Swap contracts 3,107 192 – 3,299 64 (35 ) 29 495 54 Futures 16,072 – – 16,072 – – – – – Options purchased 6,007 5,809 – 11,816 626 (2 ) 624 2,735 358 Subtotal including accrued interest 64,933 61,949 243,316 370,198 24,603 (15,095 ) 9,508 15,638 2,194 Less accrued interest – – – – 931 (944 ) (13 ) – – Total $ 64,933 $ 61,949 $ 243,316 $ 370,198 $ 23,672 $ (14,151 ) $ 9,521 $ 15,638 $ 2,194 (1) Credit risk equivalent is the sum of replacement cost and the potential future credit exposure. Replacement cost represents the current cost of replacing all contracts with a positive fair value. The amounts take into consideration legal contracts that permit offsetting of positions. The potential future credit exposure is calculated based on a formula prescribed by OSFI. (2) Risk-weighted amount represents the credit risk equivalent, weighted according to the creditworthiness of the counterparty, as prescribed by OSFI. The total notional amount of $337 billion (2016 – $370 billion) includes $114 billion (2016 – $177 billion) related to derivatives utilized in the Company’s variable annuity guarantee dynamic hedging and macro equity risk hedging programs. Due to the Company’s variable annuity hedging practices, a large number of trades are in offsetting positions, resulting in materially lower net fair value exposure to the Company than what the gross notional amount would suggest. The following table presents fair value of derivative contracts and the fair value hierarchy. As at December 31, 2017 Fair value Level 1 Level 2 Level 3 Derivative assets Interest rate contracts $ 14,199 $ – $ 13,181 $ 1,018 Foreign exchange contracts 527 – 527 – Equity contracts 829 – 768 61 Credit default swaps 14 – 14 – Total derivative assets $ 15,569 $ – $ 14,490 $ 1,079 Derivative liabilities Interest rate contracts $ 6,309 $ – $ 6,012 $ 297 Foreign exchange contracts 1,490 – 1,490 – Equity contracts 23 – 10 13 Total derivative liabilities $ 7,822 $ – $ 7,512 $ 310 As at December 31, 2016 Fair value Level 1 Level 2 Level 3 Derivative assets Interest rate contracts $ 22,602 $ – $ 22,045 $ 557 Foreign exchange contracts 362 – 361 1 Equity contracts 690 – 182 508 Credit default swaps 18 – 18 – Total derivative assets $ 23,672 $ – $ 22,606 $ 1,066 Derivative liabilities Interest rate contracts $ 11,984 $ – $ 11,114 $ 870 Foreign exchange contracts 2,133 – 2,133 – Equity contracts 34 – 1 33 Total derivative liabilities $ 14,151 $ – $ 13,248 $ 903 The following table presents a roll forward for net derivative contracts measured at fair value using significant unobservable inputs (Level 3). For the years ended December 31, 2017 2016 Balance at the beginning of the year $ 163 $ 350 Net realized / unrealized gains (losses) included in: Net income (1) 1,082 47 OCI (2) (9 ) 40 Purchases 22 373 Settlements (103 ) (522 ) Transfers Into Level 3 (3) – – Out of Level 3 (3) (363 ) (116 ) Currency movement (23 ) (9 ) Balance at the end of the year $ 769 $ 163 Change in unrealized gains (losses) on instruments still held $ 832 $ 145 (1) These amounts are included in investment income on the Consolidated Statements of Income. (2) These amounts are included in AOCI on the Consolidated Statements of Financial Position. (3) For derivatives transferred into and out of Level 3, the Company uses the fair value of the items at the end and beginning of the period, respectively. Transfers into Level 3 occur when the inputs used to price the assets and liabilities lack observable market data (versus the previous year). Transfers out of Level 3 occur when the inputs used to price the assets and liabilities become available from observable market data. (b) Hedging relationships The Company uses derivatives for economic hedging purposes. In certain circumstances, these hedges also meet the requirements of hedge accounting. Risk management strategies eligible for hedge accounting are designated as fair value hedges, cash flow hedges or net investment hedges, as described below. Fair value hedges The Company uses interest rate swaps to manage its exposure to changes in the fair value of fixed rate financial instruments due to changes in interest rates. The Company also uses cross currency swaps to manage its exposure to foreign exchange rate fluctuations, interest rate fluctuations, or both. The Company recognizes gains and losses on derivatives and the related hedged items in fair value hedges in investment income. These investment gains (losses) are shown in the following table. For the year ended December 31, 2017 Hedged items in qualifying fair value hedging relationships Gains (losses) Gains (losses) Ineffectiveness Interest rate swaps Fixed rate assets $ 2 $ (3 ) $ (1) Fixed rate liabilities (17 ) 17 – Foreign currency swaps Fixed rate assets (2 ) 4 2 Total $ (17 ) $ 18 $ 1 For the year ended December 31, 2016 Hedged items in qualifying fair value hedging relationships Gains (losses) Gains (losses) Ineffectiveness Interest rate swaps Fixed rate assets $ (52 ) $ 30 $ (22) Fixed rate liabilities (1 ) 1 – Foreign currency swaps Fixed rate assets – 2 2 Total $ (53 ) $ 33 $ (20) Cash flow hedges The Company uses interest rate swaps to hedge the variability in cash flows from variable rate financial instruments and forecasted transactions. The Company also uses cross currency swaps and foreign currency forward contracts to hedge the variability from foreign currency financial instruments and foreign currency expenses. Total return swaps are used to hedge the variability in cash flows associated with certain stock-based compensation awards. Inflation swaps are used to reduce inflation risk generated from inflation-indexed liabilities. The effects of derivatives in cash flow hedging relationships on the Consolidated Statements of Income and the Consolidated Statements of Comprehensive Income are shown in the following table. For the year ended December 31, 2017 Hedged items in qualifying cash flow hedging relationships Gains (losses) Gains (losses) Ineffectiveness income Interest rate swaps Forecasted liabilities $ – $ (17 ) $ – Foreign currency swaps Fixed rate assets 3 (1 ) – Floating rate liabilities 95 50 – Fixed rate liabilities 35 7 – Forward contracts Forecasted expenses 10 (10 ) – Equity contracts Stock-based compensation 20 29 – Total $ 163 $ 58 $ – For the year ended December 31, 2016 Hedged items in qualifying cash flow hedging relationships Gains (losses) Gains (losses) Ineffectiveness Interest rate swaps Forecasted liabilities $ – $ (18 ) $ – Foreign currency swaps Fixed rate assets (4 ) – – Floating rate liabilities 47 23 – Fixed rate liabilities (15 ) (8 ) – Forward contracts Forecasted expenses 7 (14 ) – Equity contracts Stock-based compensation 39 (1 ) – Non-derivative Forecasted expenses – 3 – Total $ 74 $ (15 ) $ – The Company anticipates that net losses of approximately $13 will be reclassified from AOCI to net income within the next 12 months. The maximum time frame for which variable cash flows are hedged is 19 years. Hedges of net investments in foreign operations The Company primarily uses forward currency contracts, cross currency swaps and non-functional The effects of net investment hedging relationships on the Consolidated Statements of Income and the Consolidated Statements of Other Comprehensive Income are shown in the following table. For the year ended December 31, 2017 Gains (losses) Gains (losses) Ineffectiveness Non-functional $ 355 $ – $ – Total $ 355 $ – $ – For the year ended December 31, 2016 Gains (losses) Gains (losses) Ineffectiveness Non-functional $ (25 ) $ – $ – Total $ (25 ) $ – $ – (c) Derivatives not designated in qualifying hedge accounting relationships Derivatives used in portfolios supporting insurance contract liabilities are generally not designated in qualifying hedge accounting relationships because the change in the value of the insurance contract liabilities economically hedged by these derivatives is also recorded through net income. Given the changes in fair value of these derivatives and related hedged risks are recognized in investment income as they occur, they generally offset the change in hedged risk to the extent the hedges are economically effective. Interest rate and cross currency swaps are used in the portfolios supporting insurance contract liabilities to manage duration and currency risks. The effects of derivatives not designated in qualifying hedge accounting relationships on the Consolidated Statements of Income are shown in the following table. For the years ended December 31, 2017 2016 Investment income (loss) Interest rate swaps $ (927 ) $ (141 ) Interest rate futures 372 (26 ) Interest rate options (96 ) (11 ) Foreign currency swaps 529 (14 ) Currency rate futures (92 ) 263 Forward contracts 1,231 (88 ) Equity futures (2,190 ) (2,387 ) Equity contracts 153 (171 ) Credit default swaps (4 ) 1 Total $ (1,024) $ (2,574 ) (d) Embedded derivatives Certain insurance contracts contain features that are classified as embedded derivatives and are measured separately at FVTPL including reinsurance contracts related to guaranteed minimum income benefits and contracts containing certain credit and interest rate features. Certain reinsurance contracts related to guaranteed minimum income benefits contain embedded derivatives requiring separate measurement at FVTPL as the financial component contained in the reinsurance contracts does not contain significant insurance risk. As at December 31, 2017, reinsurance ceded guaranteed minimum income benefits had a fair value of $1,079 (2016 – $1,408) and reinsurance assumed guaranteed minimum income benefits had a fair value of $100 (2016 – $119). Claims recovered under reinsurance ceded contracts offset claims expenses and claims paid on the reinsurance assumed are reported as contract benefits. The Company’s credit and interest rate embedded derivatives promise to pay the returns on a portfolio of assets to the contract holder. These embedded derivatives contain a credit and interest rate risk that is a financial risk embedded in the underlying insurance contract. As at December 31, 2017, these embedded derivatives had a fair value of $123 (2016 – $218). Other financial instruments classified as embedded derivatives but exempt from separate measurement at fair value include variable universal life and variable life products, minimum guaranteed credited rates, no lapse guarantees, guaranteed annuitization options, CPI indexing of benefits, and segregated fund minimum guarantees other than reinsurance ceded/assumed guaranteed minimum income benefits. These embedded derivatives are measured and reported within insurance contract liabilities and are exempt from separate fair value measurement as they contain insurance risk and/or are closely related to the insurance host contract. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Income Taxes | Note 6 Income Taxes (a) Components of the income tax expense (recovery) Income tax expenses (recovery) recognized in the Consolidated Statements of Income: For the years ended December 31, 2017 2016 Current tax Current year $ 608 $ 659 Adjustments to prior year (1) (38 ) (228 ) 570 431 Deferred tax Change related to temporary differences (803 ) (235 ) Impact of U.S. Tax Reform 472 – Income tax expense $ 239 $ 196 (1) Adjustments relating to closure of multiple taxation years Income tax expenses (recovery) recognized in Other Comprehensive Income (“OCI”): For the years ended December 31, 2017 2016 Current income tax expense (recovery) $ 116 $ (72 ) Deferred income tax expense (recovery) 320 (25 ) Income tax expense (recovery) $ 436 $ (97 ) Income tax expenses (recovery) recognized directly in Equity: For the years ended December 31, 2017 2016 Current income tax expense (recovery) $ – $ (2 ) Deferred income tax expense (recovery) (2 ) (2 ) Income tax expense (recovery) $ (2 ) $ (4 ) The effective income tax rate reflected in the Consolidated Statements of Income varies from the Canadian tax rate of 26.75 per cent for the year ended December 31, 2017 (2016 – 26.75 per cent) and the reasons are disclosed below. Reconciliation of income tax expense For the years ended December 31, 2017 2016 Income before income taxes $ 2,501 $ 3,329 Income tax expense at Canadian statutory tax rate $ 669 $ 890 Increase (decrease) in income taxes due to: Tax-exempt (242 ) (229 ) Differences in tax rate on income not subject to tax in Canada (551 ) (366 ) Recovery of unrecognized tax losses of prior years – (10 ) Adjustments to taxes related to prior years (182 ) (206 ) Tax losses and temporary differences not recognized as deferred taxes 14 22 Impact of U.S. Tax Reform 472 – Other differences 59 95 Income tax expense $ 239 $ 196 Impact of U.S. Tax Reform On December 22, 2017, the U.S. government enacted new tax legislation effective January 1, 2018. The legislation makes broad and complex changes to the U.S. tax code and accordingly it will take time to assess and interpret the changes. Based on a preliminary understanding of the new legislation, the Company recorded a provisional charge of $1.8 billion, after-tax, for the estimated impact of U.S. Tax Reform on policyholder liabilities and net deferred tax assets, including the reduction in the U.S. federal corporate income tax rate and the impact of specific life insurance regulations which limits the deductibility of reserves for U.S. federal income tax purposes. This provisional charge may change materially in the future, following a more comprehensive review of the legislation, including changes in interpretations and tax assumptions made in the valuation of policy liabilities as well as implementation of and guidance from the Internal Revenue Service and other bodies, and as a result of any future changes or amendments to that legislation. Refer to note 8(g) for the impact of U.S. Tax Reform on the Company’s insurance contract liabilities. (b) Current tax receivable and payable As at December 31, 2017, the Company has approximately $778 of current tax receivable included in other assets (2016 – $446) and a current tax payable of $178 included in other liabilities (2016 – $387). (c) Deferred tax assets and liabilities The following table presents the Company’s deferred tax assets and liabilities. As at December, 31 2017 2016 Deferred tax assets $ 4,569 $ 4,439 Deferred tax liabilities (1,281 ) (1,359 ) Net deferred tax assets $ 3,288 $ 3,080 The following table presents significant components of the Company’s deferred tax assets and liabilities. As at December 31, 2017 Balance, Recognized Recognized in Recognized Translation Balance, Loss carry forwards $ 942 $ (311 ) $ – $ 3 $ (38 ) $ 596 Actuarial liabilities 9,366 (1,053 ) (17 ) – (418 ) 7,878 Pensions and post-employment benefits 352 (87 ) (54 ) – (3 ) 208 Tax credits 875 (369 ) – – (52 ) 454 Accrued interest 17 (12 ) – (3 ) (1 ) 1 Real estate (1,396 ) 284 (9 ) – 59 (1,062 ) Securities and other investments (6,064 ) 2,172 (239 ) – 324 (3,807 ) Sale of investments (163 ) 58 – – – (105 ) Goodwill and intangible assets (1,059 ) 197 – – 37 (825 ) Other 210 (548 ) (1 ) 2 287 (50 ) Total $ 3,080 $ 331 $ (320) $ 2 $ 195 $ 3,288 As at December 31, 2016 Balance, Recognized Recognized in Recognized Translation Balance, Loss carry forwards $ 1,493 $ (515 ) $ – $ – $ (36 ) $ 942 Actuarial liabilities 9,448 244 (5 ) (116 ) (205 ) 9,366 Pensions and post-employment benefits 329 100 (79 ) – 2 352 Tax credits 750 147 – – (22 ) 875 Accrued interest 121 (100 ) – – (4 ) 17 Real estate (1,812 ) 373 – – 43 (1,396 ) Securities and other investments (6,218 ) (243 ) 113 112 172 (6,064 ) Sale of investments (200 ) 37 – – – (163 ) Goodwill and intangible assets (1,138 ) 58 – – 21 (1,059 ) Other 59 134 (4 ) 6 15 210 Total $ 2,832 $ 235 $ 25 $ 2 $ (14 ) $ 3,080 The total deferred tax assets as at December 31, 2017 of $4,569 (2016 – $4,439) include $4,527 (2016 – $4,403) where the Company has suffered losses in either the current or preceding year and where the recognition is dependent on future taxable profits in the relevant jurisdictions and feasible management actions. As at December 31, 2017, tax loss carryforwards available were approximately $3,164 (2016 – $3,556) of which $2,109 expire between the years 2020 and 2037 while $159 have no expiry date, and capital loss carryforwards available were approximately $8 (2016 – $9) and have no expiry date. A $596 (2016 – $942) tax benefit related to these tax loss carryforwards has been recognized as a deferred tax asset as at December 31, 2017, and a benefit of $171 (2016 – $139) has not been recognized. In addition, the Company has approximately $606 (2016 – $1,039) of tax credit carryforwards which will expire between the years 2030 and 2037 of which a benefit of $152 (2016 – $164) has not been recognized. The total deferred tax liability as at December 31, 2017 was $1,281 (2016 – $1,359). This amount includes the deferred tax liability of consolidated entities. The aggregate amount of taxable temporary differences associated with the Company’s own investments in subsidiaries is not included in the Consolidated Financial Statements and was $11,780 (2016 – $13,102). |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Goodwill and Intangible Assets | Note 7 Goodwill and Intangible Assets (a) Carrying amounts of goodwill and intangible assets As at December 31, 2017 Balance, Additions/ Amortization Effect of changes Balance, Goodwill $ 5,884 $ – $ n/a $ (171 ) $ 5,713 Indefinite life intangible assets Brand 805 – n/a (52 ) 753 Fund management contracts and other (1) 785 – n/a (30 ) 755 1,590 – n/a (82 ) 1,508 Finite life intangible assets (2) Distribution networks 1,093 – 47 (57 ) 989 Customer relationships 969 – 56 (14 ) 899 Software 494 306 121 (18 ) 661 Other 77 – 5 (2 ) 70 2,633 306 229 (91 ) 2,619 Total intangible assets 4,223 306 229 (173 ) 4,127 Total goodwill and intangible assets $ 10,107 $ 306 $ 229 $ (344 ) $ 9,840 As at December 31, 2016 Balance, Additions (3) (4) Amortization Effect of changes Balance, Goodwill $ 5,685 $ 256 $ n/a $ (57 ) $ 5,884 Indefinite life intangible assets Brand 831 – n/a (26 ) 805 Fund management contracts and other (1) 723 76 n/a (14 ) 785 1,554 76 n/a (40 ) 1,590 Finite life intangible assets (2) Distribution networks 726 450 50 (33 ) 1,093 Customer relationships 947 79 53 (4 ) 969 Software 396 229 126 (5 ) 494 Other 76 6 5 – 77 2,145 764 234 (42 ) 2,633 Total intangible assets 3,699 840 234 (82 ) 4,223 Total goodwill and intangible assets $ 9,384 $ 1,096 $ 234 $ (139 ) $ 10,107 (1) For fund management contracts, the significant CGUs to which these were allocated and their associated carrying values were John Hancock Investments and Retirement Plan Services with $367 (2016 – $393) and Canadian Wealth (excluding Manulife Bank of Canada) with $273 (2016 – $273). (2) Gross carrying amount of finite life intangible assets was $1,294 for distribution networks, $1,128 for customer relationships, $1,841 for software and $126 for other (2016 – $1,363, $1,142, $1,581 and $133, respectively). (3) In 2016, acquisitions of Standard Chartered’s MPF business in Hong Kong and Transamerica’s broker-dealer business in the USA led to additions of goodwill of $194 and $59 and intangible assets of $193 and $26, respectively. Commencement of sales through the DBS relationship led to recognition of $536 of distribution networks. (4) In 2016, disposals include impairments of distribution networks for discontinued products of $150 in the U.S. Division. (b) Goodwill impairment testing In the fourth quarter of 2017, the Company completed its annual goodwill impairment testing by determining the recoverable amounts of its businesses using valuation techniques discussed below or based on the most recent detailed similar calculations made in a prior period (refer to notes 1(f) and 7(c)). The Company has determined that there was no impairment of goodwill in 2017 and 2016. The Company allocates goodwill to cash-generating units (“CGU”) or groups of CGUs. Factors considered when identifying the Company’s CGUs include how the Company is organized to interact with customers, how products are presented and sold, and where interdependencies exist. The following tables present the carrying value of goodwill by CGUs. As at December 31, 2017 CGU or Group of CGUs Balance, 2017 Additions/ Effect of Balance, 2017 Asia (excluding Hong Kong and Japan) $ 160 $ – $ (6 ) $ 154 Hong Kong 194 – (14 ) 180 Japan Insurance and Wealth 403 – (12 ) 391 Canadian Individual Life 155 – – 155 Canadian Affinity Markets 83 – – 83 Canadian Wealth (excluding Manulife Bank) 1,085 – – 1,085 Canadian Group Benefits and Group Retirement Solutions 1,773 – – 1,773 International Group Program 90 – (6 ) 84 John Hancock Insurance 428 – (28 ) 400 John Hancock Investments and Retirement Plan Services 1,220 – (99 ) 1,121 Manulife Asset Management and Other 293 – (6 ) 287 Total $ 5,884 $ – $ (171 ) $ 5,713 As at December 31, 2016 CGU or Group of CGUs Balance, 2016 Additions/ Effect of Balance, 2016 Asia (excluding Hong Kong and Japan) $ 166 $ – $ (6 ) $ 160 Hong Kong – 194 – 194 Japan Insurance and Wealth 404 – (1 ) 403 Canadian Individual Life 155 – – 155 Canadian Affinity Markets 83 – – 83 Canadian Wealth (excluding Manulife Bank) 1,085 – – 1,085 Canadian Group Benefits and Group Retirement Solutions 1,773 – – 1,773 International Group Program 93 – (3 ) 90 John Hancock Insurance 378 59 (9 ) 428 John Hancock Investments and Retirement Plan Services 1,254 3 (37 ) 1,220 Manulife Asset Management and Other 294 – (1 ) 293 Total $ 5,685 $ 256 $ (57 ) $ 5,884 The valuation techniques, significant assumptions and sensitivities, where applicable, applied in the goodwill impairment testing are described below. (c) Valuation techniques The recoverable amount of each CGU or group of CGUs was based on value-in-use Under the VIU approach, an embedded appraisal value is determined from a projection of future distributable earnings derived from both the in-force Under the FVLCS approach, the Company determines the fair value of the CGU or group of CGUs using an earnings-based approach which incorporates forecasted earnings, excluding interest and equity market impacts and normalized new business expenses multiplied by an earnings multiple derived from the observable price-to-earnings price-to-earnings (d) Significant assumptions To calculate embedded value, the Company discounted projected earnings from in-force Interest rate assumptions are based on prevailing market rates at the valuation date. Tax rates applied to the projections include the impact of internal reinsurance treaties and amounted to 26.8 per cent, 35 per cent and 28.1 per cent (2016 – 26.8 per cent, 35 per cent and 28.2 per cent) for the Canadian, U.S. and Japan jurisdictions, respectively. Tax assumptions are sensitive to changes in tax laws as well as assumptions about the jurisdictions in which profits are earned. It is possible that actual tax rates could differ from those assumed. Discount rates assumed in determining the value-in-use after-tax pre-tax after-tax pre-tax The key assumptions described above may change as economic and market conditions change, which may lead to impairment charges in the future. Changes in discount rates and cash flow projections used in the determination of embedded values or reductions in market-based earnings multiples may result in impairment charges in the future which could be material. |
Insurance Contract Liabilities
Insurance Contract Liabilities and Reinsurance Assets | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Insurance Contract Liabilities and Reinsurance Assets | Note 8 Insurance Contract Liabilities and Reinsurance Assets (a) Insurance contract liabilities and reinsurance assets Insurance contract liabilities are reported gross of reinsurance ceded and the ceded liabilities are reported separately as a reinsurance asset. Insurance contract liabilities include actuarial liabilities, benefits payable, provision for unreported claims and policyholder amounts on deposit. The components of gross and net insurance contract liabilities are shown below. As at December 31, 2017 2016 Gross insurance contract liabilities $ 291,767 $ 284,778 Gross benefits payable and provision for unreported claims 3,376 3,309 Gross policyholder amounts on deposit 9,462 9,418 Gross insurance contract liabilities 304,605 297,505 Reinsurance assets (30,359 ) (34,952 ) Net insurance contract liabilities $ 274,246 $ 262,553 Net insurance contract liabilities represent the amount which, together with estimated future premiums and net investment income, will be sufficient to pay estimated future benefits, policyholder dividends and refunds, taxes (other than income taxes) and expenses on policies in-force Net insurance contract liabilities are determined using CALM, as required by the Canadian Institute of Actuaries. The determination of net insurance contract liabilities is based on an explicit projection of cash flows using current assumptions for each material cash flow item. Investment returns are projected using the current asset portfolios and projected reinvestment strategies. Each assumption is based on the best estimate adjusted by a margin for adverse deviation. For fixed income returns, this margin is established by scenario testing a range of prescribed and company-developed scenarios consistent with Canadian Actuarial Standards of Practice. For all other assumptions, this margin is established by directly adjusting the best estimate assumption. Cash flows used in the net insurance contract liabilities valuation adjust the gross policy cash flows to reflect projected cash flows from ceded reinsurance. The cash flow impact of ceded reinsurance varies depending upon the amount of reinsurance, the structure of reinsurance treaties, the expected economic benefit from treaty cash flows and the impact of margins for adverse deviation. Gross insurance contract liabilities are determined by discounting gross policy cash flows using the same discount rate as the net CALM model discount rate. The reinsurance asset is determined by taking the difference between the gross insurance contract liabilities and the net insurance contract liabilities. The reinsurance asset represents the benefit derived from reinsurance arrangements in force at the date of the Consolidated Statements of Financial Position. The period used for the projection of cash flows is the policy lifetime for most individual insurance contracts. For other types of contracts, a shorter projection period may be used, with the contract generally ending at the earlier of the first renewal date on or after the Consolidated Statements of Financial Position date where the Company can exercise discretion in renewing its contractual obligations or terms of those obligations and the renewal or adjustment date that maximizes the insurance contract liabilities. For segregated fund products with guarantees, the projection period is generally set as the period that leads to the largest insurance contract liability. Where the projection period is less than the policy lifetime, insurance contract liabilities may be reduced by an allowance for acquisition expenses expected to be recovered from policy cash flows beyond the projection period used for the liabilities. Such allowances are tested for recoverability using assumptions that are consistent with other components of the actuarial valuation. (b) Composition The composition of insurance contract liabilities and reinsurance assets by line of business and reporting segment is as follows. Gross insurance contract liabilities Individual insurance As at December 31, 2017 Participating Non- participating Annuities Other (1) Total, net of Total Total, Asia division $ 32,737 $ 22,705 $ 4,366 $ 2,435 $ 62,243 $ 911 $ 63,154 Canadian division 11,132 34,091 19,141 11,834 76,198 (676 ) 75,522 U.S. division 8,569 57,599 26,161 43,522 135,851 29,952 165,803 Corporate and Other – (515 ) 48 421 (46 ) 172 126 Total, net of reinsurance ceded 52,438 113,880 49,716 58,212 274,246 $ 30,359 $ 304,605 Total reinsurance ceded 11,492 11,238 6,539 1,090 30,359 Total, gross of reinsurance ceded $ 63,930 $ 125,118 $ 56,255 $ 59,302 $ 304,605 Individual insurance As at December 31, 2016 Participating Non- participating Annuities Other (1) Total, net of Total Total, Asia division $ 29,520 $ 18,799 $ 3,599 $ 2,649 $ 54,567 $ 880 $ 55,447 Canadian division 10,974 31,790 19,620 11,000 73,384 593 73,977 U.S. division 9,419 56,484 28,529 40,760 135,192 33,220 168,412 Corporate and Other – (833 ) 62 181 (590 ) 259 (331 ) Total, net of reinsurance ceded 49,913 106,240 51,810 54,590 262,553 $ 34,952 $ 297,505 Total reinsurance ceded 13,558 12,122 8,159 1,113 34,952 Total, gross of reinsurance ceded $ 63,471 $ 118,362 $ 59,969 $ 55,703 $ 297,505 (1) Other insurance contract liabilities include group insurance and individual and group health including long-term care insurance. Separate sub-accounts in-force sub-accounts (c) Assets backing insurance contract liabilities, other liabilities and capital Assets are segmented and matched to liabilities with similar underlying characteristics by product line and major currency. The Company has established target investment strategies and asset mixes for each asset segment supporting insurance contract liabilities which take into account the risk attributes of the liabilities supported by the assets and expectations of market performance. Liabilities with rate and term guarantees are predominantly backed by fixed-rate instruments on a cash flow matching basis for a targeted duration horizon. Longer duration cash flows on these liabilities as well as on adjustable products such as participating life insurance are backed by a broader range of asset classes, including equity and alternative long-duration investments. The Company’s capital is invested in a range of debt and equity investments, both public and private. Changes in the fair value of assets backing net insurance contract liabilities, that the Company considers to be other than temporary, would have a limited impact on the Company’s net income wherever there is an effective matching of assets and liabilities, as these changes would be substantially offset by corresponding changes in the value of net insurance contract liabilities. The fair value of assets backing net insurance contract liabilities as at December 31, 2017, excluding reinsurance assets, was estimated at $278,521 (2016 – $266,119). The fair value of assets backing capital and other liabilities as at December 31, 2017 was estimated at $456,278 (2016 – $459,256). The carrying value of total assets backing net insurance contract liabilities, other liabilities and capital was as follows. Individual insurance As at December 31, 2017 Participating Non- participating Annuities Other insurance (1) Other (2) Capital (3) Total Assets Debt securities $ 27,946 $ 63,128 $ 26,621 $ 25,211 $ 6,635 $ 24,459 $ 174,000 Public equities 9,264 5,855 171 332 1,029 4,894 21,545 Mortgages 2,017 10,286 7,009 6,891 18,476 63 44,742 Private placements 3,645 12,128 8,059 7,739 367 194 32,132 Real estate 2,963 6,198 1,136 2,516 769 228 13,810 Other 6,603 16,285 6,720 15,523 377,352 20,821 443,304 Total $ 52,438 $ 113,880 $ 49,716 $ 58,212 $ 404,628 $ 50,659 $ 729,533 Individual insurance As at December 31, 2016 Participating Non- participating Annuities Other insurance (1) Other (2) Capital (3) Total Assets Debt securities $ 27,473 $ 56,765 $ 26,331 $ 23,012 $ 9,965 $ 25,076 $ 168,622 Public equities 8,055 5,401 213 351 732 4,744 19,496 Mortgages 2,110 10,008 8,135 5,554 18,311 75 44,193 Private placements 3,277 10,823 7,096 7,070 1,272 191 29,729 Real estate 2,811 6,397 1,480 2,561 613 270 14,132 Other 6,187 16,846 8,555 16,042 377,000 19,879 444,509 Total $ 49,913 $ 106,240 $ 51,810 $ 54,590 $ 407,893 $ 50,235 $ 720,681 (1) Other insurance contract liabilities include group insurance and individual and group health including long-term care insurance. (2) Other liabilities are non-insurance (3) Capital is defined in note 14. (d) Significant insurance contract liability valuation assumptions The determination of insurance contract liabilities involves the use of estimates and assumptions. Insurance contract liabilities have two major components: a best estimate amount and a provision for adverse deviation. Best estimate assumptions Best estimate assumptions are made with respect to mortality and morbidity, investment returns, rates of policy termination, operating expenses and certain taxes. Actual experience is monitored to ensure that assumptions remain appropriate and assumptions are changed as warranted. Assumptions are discussed in more detail in the following table. Nature of factor and assumption methodology Risk management Mortality and morbidity Mortality relates to the occurrence of death. Mortality is a key assumption for life insurance and certain forms of annuities. Mortality assumptions are based on the Company’s internal experience as well as past and emerging industry experience. Assumptions are differentiated by sex, underwriting class, policy type and geographic market. Assumptions are made for future mortality improvements. Morbidity relates to the occurrence of accidents and sickness for insured risks. Morbidity is a key assumption for long-term care insurance, disability insurance, critical illness and other forms of individual and group health benefits. Morbidity assumptions are based on the Company’s internal experience as well as past and emerging industry experience and are established for each type of morbidity risk and geographic market. Assumptions are made for future morbidity improvements. The Company maintains underwriting standards to determine the insurability of applicants. Claim trends are monitored on an ongoing basis. Exposure to large claims is managed by establishing policy retention limits, which vary by market and geographic location. Policies in excess of the limits are reinsured with other companies. Mortality is monitored monthly and the overall 2017 experience was unfavourable (2016 – unfavourable) when compared to the Company’s assumptions. Morbidity is also monitored monthly and the overall 2017 experience was unfavourable (2016 – unfavourable) when compared to the Company’s assumptions. Investment returns The Company segments assets to support liabilities by business segment and geographic market and establishes investment strategies for each liability segment. Projected cash flows from these assets are combined with projected cash flows from future asset purchases/sales to determine expected rates of return on these assets for future years. Investment strategies are based on the target investment policies for each segment and the reinvestment returns are derived from current and projected market rates for fixed income investments and a projected outlook for other alternative long-duration assets. Investment return assumptions include expected future asset credit losses on fixed income investments. Credit losses are projected based on past experience of the Company and industry as well as specific reviews of the current investment portfolio. Investment return assumptions for each asset class and geographic market also incorporate expected investment management expenses that are derived from internal cost studies. The costs are attributed to each asset class to develop unitized assumptions per dollar of asset for each asset class and geographic market. The Company’s policy of closely matching asset cash flows with those of the corresponding liabilities is designed to mitigate the Company’s exposure to future changes in interest rates. The interest rate risk positions in business segments are monitored on an ongoing basis. Under CALM, the reinvestment rate is developed using interest rate scenario testing and reflects the interest rate risk positions. In 2017, the movement in interest rates negatively (2016 –negatively) impacted the Company’s net income. This negative impact was driven by reductions in corporate spreads and increase in swap spreads, partially offset by the impact of risk free interest rate movements on policy liabilities. The exposure to credit losses is managed against policies that limit concentrations by issuer, corporate connections, ratings, sectors and geographic regions. On participating policies and some non-participating In 2017, credit loss experience on debt securities and mortgages was favourable (2016 – favourable) when compared to the Company’s assumptions. Equities, real estate and other alternative long-duration assets are used to support liabilities where investment return experience is passed back to policyholders through dividends or credited investment return adjustments. Equities, real estate, oil and gas and other alternative long-duration assets are also used to support long-dated obligations in the Company’s annuity and pension businesses and for long-dated insurance obligations on contracts where the investment return risk is borne by the Company. In 2017, investment experience on alternative long-duration assets backing policyholder liabilities was unfavourable (2016 – unfavourable) primarily due to losses on real estate, oil and gas properties and timber and agriculture properties, partially offset by gains on private equities. In 2017, alternative long-duration asset origination exceeded (2016 –exceeded) valuation requirements. In 2017, for the business that is dynamically hedged, segregated fund guarantee experience on residual, non-dynamically In 2017, investment expense experience was unfavourable (2016 – favourable) when compared to the Company’s assumptions. Policyholder behaviour Policies are terminated through lapses and surrenders, where lapses represent the termination of policies due to non-payment The Company seeks to design products that minimize financial exposure to lapse, surrender and other policyholder behaviour risk. The Company monitors lapse, surrender and other policyholder behaviour experience. In aggregate, 2017 policyholder behaviour experience was unfavourable (2016 – unfavourable) when compared to the Company’s assumptions used in the computation of actuarial liabilities. Expenses and taxes Operating expense assumptions reflect the projected costs of maintaining and servicing in-force Taxes reflect assumptions for future premium taxes and other non-income The Company prices its products to cover the expected costs of servicing and maintaining them. In addition, the Company monitors expenses monthly, including comparisons of actual expenses to expense levels allowed for in pricing and valuation. Maintenance expenses for 2017 were unfavourable (2016 –unfavourable) when compared to the Company’s assumptions used in the computation of actuarial liabilities. The Company prices its products to cover the expected cost of taxes. Policyholder dividends, experience rating refunds, and other adjustable policy elements The best estimate projections for policyholder dividends and experience rating refunds, and other adjustable elements of policy benefits are determined to be consistent with management’s expectation of how these elements will be managed should experience emerge consistently with the best estimate assumptions used for mortality and morbidity, investment returns, rates of policy termination, operating expenses and taxes. The Company monitors policy experience and adjusts policy benefits and other adjustable elements to reflect this experience. Policyholder dividends are reviewed annually for all businesses under a framework of Board-approved policyholder dividend policies. Foreign currency Foreign currency risk results from a mismatch of the currency of liabilities and the currency of the assets designated to support these obligations. Where a currency mismatch exists, the assumed rate of return on the assets supporting the liabilities is reduced to reflect the potential for adverse movements in foreign exchange rates. The Company generally matches the currency of its assets with the currency of the liabilities they support, with the objective of mitigating the risk of loss arising from movements in currency exchange rates. The Company’s practice is to review actuarial assumptions on an annual basis as part of its review of methods and assumptions. Where changes are made to assumptions (refer to note 8(h)), the full impact is recognized in income immediately. (e) Sensitivity of insurance contract liabilities to changes in non-economic The sensitivity of net income attributed to shareholders to changes in non-economic In practice, experience for each assumption will frequently vary by geographic market and business and assumption updates are made on a business/geographic specific basis. Actual results can differ materially from these estimates for a variety of reasons including the interaction among these factors when more than one changes; changes in actuarial and investment return and future investment activity assumptions; changes in business mix, effective tax rates and other market factors; and the general limitations of internal models. Potential impact on net income attributed to shareholders arising from changes to non-economic (1),(2) As at December 31, Decrease in net income 2017 2016 Policy related assumptions 2% adverse change in future mortality rates (3),(5) Products where an increase in rates increases insurance contract liabilities $ (400 ) $ (400 ) Products where a decrease in rates increases insurance contract liabilities (400 ) (500 ) 5% adverse change in future morbidity rates (4),(5) (3,900 ) (3,700 ) 10% adverse change in future termination rates (5) (2,000 ) (1,900 ) 5% increase in future expense levels (500 ) (500 ) (1) The sensitivities as at December 31, 2017 include the impact of lower U.S. corporate tax rates effective January 1, 2018. (2) The participating policy funds are largely self-supporting and generate no material impact on net income attributed to shareholders as a result of changes in non-economic (3) An increase in mortality rates will generally increase policy liabilities for life insurance contracts whereas a decrease in mortality rates will generally increase policy liabilities for policies with longevity risk such as payout annuities. (4) No amounts related to morbidity risk are included for policies where the policy liability provides only for claims costs expected over a short period, generally less than one year, such as Group Life and Health. (5) The impacts of the sensitivities on long-term care for morbidity, mortality and lapse are assumed to be moderated by partial offsets from the Company’s ability to contractually raise premium rates in such events, subject to state regulatory approval. (f) Provision for adverse deviation assumptions The assumptions made in establishing insurance contract liabilities reflect expected best estimates of future experience. To recognize the uncertainty in these best estimate assumptions, to allow for possible misestimation of and deterioration in experience and to provide a greater degree of assurance that the insurance contract liabilities are adequate to pay future benefits, the Appointed Actuary is required to include a margin in each assumption. Margins are released into future earnings as the policy is released from risk. Margins for interest rate risk are included by testing a number of scenarios of future interest rates. The margin can be established by testing a limited number of scenarios, some of which are prescribed by the Canadian Actuarial Standards of Practice, and determining the liability based on the worst outcome. Alternatively, the margin can be set by testing many scenarios, which are developed according to actuarial guidance. Under this approach the liability would be the average of the outcomes above a percentile in the range prescribed by the Canadian Actuarial Standards of Practice. Specific guidance is also provided for other risks such as market, credit, mortality and morbidity risks. For other risks which are not specifically addressed by the Canadian Institute of Actuaries, a range is provided of five per cent to 20 per cent of the expected experience assumption. The Company uses assumptions within the permissible ranges, with the determination of the level set considering the risk profile of the business. On occasion, in specific circumstances for additional prudence, a margin may exceed the high end of the range, which is permissible under the Canadian Actuarial Standards of Practice. This additional margin would be released if the specific circumstances which led to it being established were to change. Each margin is reviewed annually for continued appropriateness. (g) Change in insurance contract liabilities The change in insurance contract liabilities was a result of the following business activities and changes in actuarial estimates. For the year ended December 31, 2017 Net actuarial Other (1) Net Reinsurance Gross Balance, January 1 $ 251,738 $ 10,815 $ 262,553 $ 34,952 $ 297,505 New policies (2) 3,545 – 3,545 441 3,986 Normal in-force (2) 15,192 930 16,122 (3,097 ) 13,025 Changes in methods and assumptions (2) 305 (28 ) 277 47 324 Impact of U.S. Tax Reform (2),(3) 2,246 – 2,246 – 2,246 Increase due to decision to change the portfolio asset mix supporting legacy businesses (2),(4) 1,340 – 1,340 43 1,383 Impact of changes in foreign exchange rates (11,275 ) (562 ) (11,837 ) (2,027 ) (13,864 ) Balance, December 31 $ 263,091 $ 11,155 $ 274,246 $ 30,359 $ 304,605 For the year ended December 31, 2016 Net actuarial Other (1) Net Reinsurance Gross Balance, January 1 $ 239,812 $ 10,050 $ 249,862 $ 35,426 $ 285,288 New policies (5) 3,617 – 3,617 294 3,911 Normal in-force (5) 12,579 1,094 13,673 (405 ) 13,268 Changes in methods and assumptions (5) 709 (54 ) 655 699 1,354 Impact of changes in foreign exchange rates (4,979 ) (275 ) (5,254 ) (1,062 ) (6,316 ) Balance, December 31 $ 251,738 $ 10,815 $ 262,553 $ 34,952 $ 297,505 (1) Other insurance contract liabilities are comprised of benefits payable and provision for unreported claims and policyholder amounts on deposit. (2) In 2017, the $20,023 increase reported as the change in insurance contract liabilities on the Consolidated Statements of Income primarily consists of changes due to normal in-force (3) The impact of U.S. Tax Reform, which includes the lowering of the U.S. corporate tax rate from 35% to 21% and limits on the tax deductibility of reserves, resulted in a $2,246 pre-tax ($1,774 post-tax) increase in policy liabilities due to the impact of temporary tax timing and permanent tax rate differences on the cash flows available to satisfy policyholder obligations. The $472 deferred tax impact on this increase in policy liabilities, together with the impact of U.S. Tax Reform on the Company’s deferred tax assets and liabilities is included in note 6. (4) The decision to reduce the allocation to ALDA in the portfolio asset mix supporting the Company’s North American legacy businesses resulted in an increase in policy liabilities due to the impact on future expected investment income on assets supporting the policies. (5) In 2016, the $18,014 increase reported as the change in insurance contract liabilities on the Consolidated Statements of Income primarily consists of changes due to normal in-force (h) Actuarial methods and assumptions A comprehensive review of valuation assumptions and methods is performed annually. The review is designed to reduce the Company’s exposure to uncertainty by ensuring assumptions for both asset related and liability related risks remain appropriate. This is accomplished by monitoring experience and updating assumptions which represent a best estimate view of future experience, and margins that are appropriate for the risks assumed. While the assumptions selected represent the Company’s current best estimates and assessment of risk, the ongoing monitoring of experience and the economic environment is likely to result in future changes to the valuation assumptions, which could be material. Annual Review 2017 The quantification of the impact of the 2017 comprehensive review of valuation methods and assumptions is as of July 1, 2017 for all lines of business. The 2017 full year review of actuarial methods and assumptions resulted in an increase in insurance and investment contract liabilities of $277, net of reinsurance, and a decrease in net income attributed to shareholders of $35 post-tax. post-tax For the year ended December 31, 2017 Change in gross Change in insurance (1) Change in net income attributed (post-tax) Mortality and morbidity updates $ (219 ) $ (254 ) $ 299 Lapses and policyholder behaviour 1,057 1,019 (783 ) Other updates ALDA and public equity investment return assumptions 1,403 1,296 (892 ) Corporate spread assumptions (554 ) (515 ) 344 Refinements to liability and tax cash flows (1,273 ) (1,049 ) 696 Other (90 ) (220 ) 301 Net impact $ 324 $ 277 $ (35) (1) The $277 increase in insurance and investment contract liabilities net of reinsurance, included an increase in net liabilities associated with participating insurance business resulting in a charge to net income attributed to participating policyholders of $88. Mortality and morbidity updates Mortality and morbidity updates resulted in a $299 benefit to net income attributed to shareholders. The Company completed a detailed review of the mortality assumptions for its U.S. life insurance business which resulted in a $384 charge to net income attributed to shareholders. Assumptions were increased, particularly at older ages, reflecting both industry and the Company’s own experience. Updates to actuarial standards related to future mortality improvement, and the review of mortality improvement assumptions globally, resulted in a $264 benefit to net income attributed to shareholders primarily in Canada and Asia. The updated actuarial standards include a diversification benefit for the determination of margins for adverse deviation which recognizes the offsetting impact of longevity and mortality risk. The Company completed a detailed review of mortality assumptions for its Canadian retail insurance business which resulted in a $222 benefit to net income attributed to shareholders. Other updates to mortality and morbidity assumptions led to a $197 benefit to net income attributed to shareholders. These updates included a reduction in the margins for adverse deviation applied to morbidity assumptions for certain medical insurance products in Japan. Updates to lapses and policyholder behaviour Updates to lapses and policyholder behaviour assumptions resulted in a $783 charge to net income attributed to shareholders. In Canadian retail insurance, lapse assumptions were reduced for certain universal life products to reflect recent experience, leading to a $315 charge to net income attributed to shareholders. For Canadian segregated fund guaranteed minimum withdrawal benefit lapses, incidence and utilization assumptions were updated to reflect recent experience which led to a $242 charge to net income attributed to shareholders. Other updates to lapse and policyholder behaviour assumptions were made across several product lines including a reduction in lapse assumptions for the Company’s whole life insurance products in Japan, leading to a $226 charge to net income attributed to shareholders. Other updates Other updates resulted in a $449 benefit to net income attributed to shareholders. The Company reviewed its investment return assumptions for ALDA and public equities, which in aggregate led to a reduction in return assumptions and a $892 charge to net income attributed to shareholders. The Company also reviewed future corporate spread assumptions, which led to a $344 benefit to net income attributed to shareholders. Refinements to the projection of the Company’s liability and tax cash flows in the U.S. resulted in a $696 benefit to net income attributed to shareholders. These changes included refinements to the projection of policyholder crediting rates for certain universal life insurance products. Other refinements resulted in a $301 benefit to net income attributed to shareholders. These changes included a review of provisions for reinsurance counterparty credit risk and several other refinements to the projection of both the Company’s asset and liability cash flows. Annual Review 2016 The 2016 full year review of actuarial methods and assumptions resulted in an increase in insurance and investment contract liabilities of $655, net of reinsurance, and a decrease in net income attributed to shareholders of $453 post-tax. For the year ended December 31, 2016 Change in gross Change in insurance Change in net (post-tax) JH Long-Term Care triennial review $ 696 $ 696 $ (452 ) Mortality and morbidity updates (12 ) (53 ) 76 Lapses and policyholder behaviour U.S. Variable Annuities guaranteed minimum withdrawal benefit incidence and utilization (1,024 ) (1,024 ) 665 Other lapses and policyholder behaviour 516 431 (356 ) Economic reinvestment assumptions 459 443 (313 ) Other updates 719 162 (73 ) Net impact $ 1,354 $ 655 $ (453 ) Long-Term Care triennial review U.S. Insurance completed a comprehensive Long-Term Care experience study. This included a review of mortality, morbidity and lapse experience, as well as the reserve for in-force Expected future claims costs increased primarily due to claims periods being longer than expected in policy liabilities, and a reduction in lapse and mortality rates. This increase in expected future claims costs was partially offset by a number of items, including expected future premium increases resulting from this year’s review and a decrease in the margin for adverse deviations related to the rate of inflation embedded in the Company’s benefit utilization assumptions. The review of premium increases assumed in policy liabilities resulted in a benefit to earnings of $1.0 billion; this includes future premium increases that are due to the 2016 review of morbidity, mortality and lapse assumptions, and outstanding amounts from the Company’s 2013 state filings. Premium increases averaging approximately 20 per cent will be sought on the vast majority of the in-force Mortality and morbidity updates Mortality and morbidity assumptions were updated across several business units to reflect recent experience, including updates to morbidity assumptions for certain medical insurance products in Japan, leading to a $76 benefit to net income attributed to shareholders. Updates to lapses and policyholder behaviour U.S. Variable Annuities guaranteed minimum withdrawal benefit incidence and utilization assumptions were updated to reflect recent experience which led to a $665 benefit to net income attributed to shareholders. The Company updated its incidence assumptions to reflect the favourable impact of policyholders taking withdrawals later than expected. This was partially offset by an increase in the Company’s utilization assumptions. In Japan, lapse rates for term life insurance products were increased at certain durations which led to a $228 charge to net income attributed to shareholders. Other updates to lapse and policyholder behavior assumptions were made across several product lines, including term products in Canada, which led to a $128 charge to net income attributed to shareholders. Updates to economic reinvestment assumptions The Company updated economic reinvestment assumptions for risk free rates used in the valuation of policy liabilities which resulted in a $313 charge to net income attributed to shareholders. These updates included a proactive ten basis point reduction in the Company’s ultimate reinvestment rate (“URR”) assumptions and a commensurate change in the calibration criteria for stochastic risk-free rates. These updates reflect the fact that interest rates are lower than they were when the current prescribed URR and calibration criteria for stochastic risk-free rates were promulgated by the Actuarial Standards Board (“ASB”) in 2014. The ASB has indicated that it will update the promulgation periodically, when necessary. The Company expects the promulgation to be updated in 2017 and, if required, it will make |
Investment Contract Liabilities
Investment Contract Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Investment Contract Liabilities | Note 9 Investment Contract Liabilities Investment contract liabilities are contractual obligations that do not contain significant insurance risk. Those contracts are measured at either fair value or at amortized cost. (a) Investment contract liabilities measured at fair value Investment contract liabilities measured at fair value include certain investment savings and pension products sold primarily in Hong Kong and China. The following table presents movement in investment contract liabilities measured at fair value during the year. For the years ended December 31, 2017 2016 Balance, January 1 $ 631 $ 785 New policies 50 53 Changes in market conditions 76 (103 ) Redemptions, surrenders and maturities (72 ) (83 ) Impact of changes in foreign exchange rates (46 ) (21 ) Balance, December 31 $ 639 $ 631 (b) Investment contract liabilities measured at amortized cost Investment contract liabilities measured at amortized cost include several fixed annuity products sold in Canada and U.S. fixed annuity products that provide guaranteed income payments for a contractually determined period of time and are not contingent on survivorship. Investment contract liabilities measured at amortized cost are shown below. The fair value associated with these contracts is also shown for comparative purposes. 2017 2016 As at December 31, Amortized cost Fair value Amortized cost Fair value U.S. fixed annuity products $ 1,282 $ 1,433 $ 1,412 $ 1,516 Canadian fixed annuity products 1,205 1,354 1,232 1,389 Investment contract liabilities $ 2,487 $ 2,787 $ 2,644 $ 2,905 The changes in investment contract liabilities measured at amortized cost was a result of the following business activities. For the years ended December 31, 2017 2016 Balance, January 1 $ 2,644 $ 2,712 Policy deposits 68 112 Interest 100 100 Withdrawals (232 ) (235 ) Fees (1 ) (1 ) Other (1 ) 1 Impact of changes in foreign exchange rates (91 ) (45 ) Balance, December 31 $ 2,487 $ 2,644 Carrying value of fixed annuity products is amortized at a rate that exactly discounts the projected actual cash flows to the net carrying amount of the liability at the date of issue. Fair value of fixed annuity products is determined by projecting cash flows according to the contract terms and discounting the cash flows at current market rates adjusted for the Company’s own credit standing. All investment contracts were categorized in Level 2 of the fair value hierarchy (2016 – Level 2). (c) Investment contracts contractual obligations Investment contracts give rise to obligations fixed by agreement. As at December 31, 2017, the Company’s contractual obligations and commitments relating to investment contracts are as follows. Payments due by period Less than 1 to 3 years 3 to 5 years Over 5 Total Investment contract liabilities (1) $ 283 $ 536 $ 481 $ 3,944 $ 5,244 (1) Due to the nature of the products, the timing of net cash flows may be before contract maturity. Cash flows are undiscounted. |
Risk Management
Risk Management | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Risk Management | Note 10 Risk Management The Company’s policies and procedures for managing risk related to financial instruments are presented in the “Risk Management” section of the Company’s MD&A for the year ended December 31, 2017. Specifically, these disclosures are included in “Market Risk” and “Liquidity Risk” in that section. These disclosures are in accordance with IFRS 7 “Financial Instruments: Disclosures” and therefore, only the shaded text and tables in the “Risk Management” section form an integral part of these Consolidated Financial Statements. (a) Credit risk Credit risk is the risk of loss due to inability or unwillingness of a borrower, or counterparty, to fulfill its payment obligations. Worsening regional and global economic conditions, segment or industry sector challenges, or company specific factors could result in defaults or downgrades and could lead to increased provisions or impairments related to the Company’s general fund invested assets, derivative financial instruments and reinsurance assets and an increase in provisions for future credit impairments that are included in actuarial liabilities. The Company’s exposure to credit risk is managed through risk management policies and procedures which include a defined credit evaluation and adjudication process, delegated credit approval authorities and established exposure limits by borrower, corporate connection, credit rating, industry and geographic region. The Company measures derivative counterparty exposure as net potential credit exposure, which takes into consideration mark-to-market The Company also ensures where warranted, that mortgages, private placements and loans to Bank clients are secured by collateral, the nature of which depends on the credit risk of the counterparty. An allowance for losses on loans is established when a loan becomes impaired. Allowances for loan losses are calculated to reduce the carrying value of the loans to estimated net realizable value. The establishment of such allowances takes into consideration normal historical credit loss levels and future expectations, with an allowance for adverse deviations. In addition, policy liabilities include general provisions for credit losses from future asset impairments. Impairments are identified through regular monitoring of all credit related exposures, considering such information as general market conditions, industry and borrower specific credit events and any other relevant trends or conditions. Allowances for losses on reinsurance contracts are established when a reinsurance counterparty becomes unable or unwilling to fulfill its contractual obligations. The allowance for loss is based on current recoverable amounts and ceded policy liabilities. Credit risk associated with derivative counterparties is discussed in note 10(d) and credit risk associated with reinsurance counterparties is discussed in note 10(i). Credit exposure The following table presents the gross carrying amount of financial instruments subject to credit exposure, without considering any collateral held or other credit enhancements. As at December 31, 2017 2016 Debt securities FVTPL $ 147,024 $ 140,890 AFS 26,976 27,732 Mortgages 44,742 44,193 Private placements 32,132 29,729 Policy loans 5,808 6,041 Loans to Bank clients 1,737 1,745 Derivative assets 15,569 23,672 Accrued investment income 2,182 2,260 Reinsurance assets 30,359 34,952 Other financial assets 5,253 4,844 Total $ 311,782 $ 316,058 Credit quality Credit quality of commercial mortgages and private placements is assessed at least annually by using an internal rating based on regular monitoring of credit-related exposures, considering both qualitative and quantitative factors. A provision is recorded when the internal risk ratings indicate that a loss represents the most likely outcome. The assets are designated as non-accrual The following table presents the credit quality and carrying value of commercial mortgages and private placements. As at December 31, 2017 AAA AA A BBB BB B and lower Total Commercial mortgages Retail $ 110 $ 1,517 $ 4,363 $ 2,050 $ 44 $ 57 $ 8,141 Office 57 1,272 4,635 1,647 70 28 7,709 Multi-family residential 523 1,395 1,805 726 – – 4,449 Industrial 33 386 1,542 477 145 – 2,583 Other 362 331 1,012 973 14 – 2,692 Total commercial mortgages 1,085 4,901 13,357 5,873 273 85 25,574 Agricultural mortgages – 159 – 405 25 – 589 Private placements 1,038 4,246 11,978 13,160 717 993 32,132 Total $ 2,123 $ 9,306 $ 25,335 $ 19,438 $ 1,015 $ 1,078 $ 58,295 As at December 31, 2016 AAA AA A BBB BB B and lower Total Commercial mortgages Retail $ 97 $ 1,620 $ 4,391 $ 2,084 $ – $ 7 $ 8,199 Office 68 1,255 3,972 1,938 55 36 7,324 Multi-family residential 656 1,362 1,944 844 – – 4,806 Industrial 22 360 1,452 831 169 – 2,834 Other 428 261 1,323 493 60 – 2,565 Total commercial mortgages 1,271 4,858 13,082 6,190 284 43 25,728 Agricultural mortgages – 151 61 469 141 – 822 Private placements 1,086 4,466 10,671 11,606 936 964 29,729 Total $ 2,357 $ 9,475 $ 23,814 $ 18,265 $ 1,361 $ 1,007 $ 56,279 Credit quality of residential mortgages and loans to Bank clients is assessed at least annually with the loan being performing or non-performing Full or partial write-offs of loans are recorded when management believes that there is no realistic prospect of full recovery. Write-offs, net of recoveries, are deducted from the allowance for credit losses. All impairments are captured in the allowance for credit losses. The following table presents the carrying value of residential mortgages and loans to Bank clients. 2017 2016 As at December 31, Insured Uninsured Total Insured Uninsured Total Residential mortgages Performing $ 7,256 $ 11,310 $ 18,566 $ 7,574 $ 10,050 $ 17,624 Non-performing (1) 4 9 13 6 13 19 Loans to Bank clients Performing n/a 1,734 1,734 n/a 1,743 1,743 Non-performing (1) n/a 3 3 n/a 2 2 Total $ 7,260 $ 13,056 $ 20,316 $ 7,580 $ 11,808 $ 19,388 (1) Non-performing The carrying value of government-insured mortgages was 17% of the total mortgage portfolio as at December 31, 2017 (2016 –19%). The majority of these insured mortgages are residential loans as classified in the table above. Past due or credit impaired financial assets The Company provides for credit risk by establishing allowances against the carrying value of impaired loans and recognizing impairment losses on AFS debt securities. In addition, the Company reports as impairment certain declines in the fair value of debt securities designated as FVTPL which it deems represent an impairment. The following table presents the carrying value of past due but not impaired and impaired financial assets. Past due but not impaired As at December 31, 2017 Less than 90 days Total Total Debt securities FVTPL $ – $ – $ – $ 45 AFS 104 2 106 1 Private placements 363 – 363 40 Mortgages and loans to Bank clients 76 16 92 86 Other financial assets 46 26 72 1 Total $ 589 $ 44 $ 633 $ 173 Past due but not impaired As at December 31, 2016 Less than 90 days Total Total Debt securities FVTPL $ 90 $ – $ 90 $ 38 AFS 16 9 25 – Private placements 215 64 279 152 Mortgages and loans to Bank clients 50 20 70 33 Other financial assets 57 54 111 8 Total $ 428 $ 147 $ 575 $ 231 The following table summarizes the Company’s loans that are considered impaired. As at December 31, 2017 Gross Allowances Net carrying Private placements $ 79 $ 39 $ 40 Mortgages and loans to Bank clients 132 46 86 Total $ 211 $ 85 $ 126 As at December 31, 2016 Gross Allowances Net Private placements $ 244 $ 92 $ 152 Mortgages and loans to Bank clients 59 26 33 Total $ 303 $ 118 $ 185 Allowance for loan losses 2017 2016 For the years ended December 31, Private Mortgages Total Private Mortgages Total Balance, January 1 $ 92 $ 26 $ 118 $ 72 $ 29 $ 101 Provisions 2 33 35 112 14 126 Recoveries (12 ) (1 ) (13 ) (62 ) (7 ) (69 ) Write-offs (1) (43 ) (12 ) (55 ) (30 ) (10 ) (40 ) Balance, December 31 $ 39 $ 46 $ 85 $ 92 $ 26 $ 118 (1) Includes disposals and impact of changes in foreign exchange rates. (b) Securities lending, repurchase and reverse repurchase transactions The Company engages in securities lending to generate fee income. Collateral exceeding the market value of the loaned securities is retained by the Company until the underlying security has been returned to the Company. The market value of the loaned securities is monitored on a daily basis and additional collateral is obtained or refunded as the market value of the underlying loaned securities fluctuates. As at December 31, 2017, the Company had loaned securities (which are included in invested assets) with a market value of $1,563 (2016 – $1,956). The Company holds collateral with a current market value that exceeds the value of securities lent in all cases. The Company engages in reverse repurchase transactions to generate fee income, to take possession of securities to cover short positions in similar instruments and to meet short-term funding requirements. As at December 31, 2017, the Company had engaged in reverse repurchase transactions of $230 (2016 – $250) which are recorded as short-term receivables. In addition, the Company had engaged in repurchase transactions of $228 as at December 31, 2017 (2016 – $255) which are recorded as payables. (c) Credit default swaps The Company replicates exposure to specific issuers by selling credit protection via credit default swaps (“CDSs”) to complement its cash debt securities investing. The Company does not write CDS protection in excess of its government bond holdings. A CDS is a derivative instrument representing an agreement between two parties to exchange the credit risk of a single specified entity or an index based on the credit risk of a group of entities (all commonly referred to as the “reference entity” or a portfolio of “reference entities”), in return for a periodic premium. CDS contracts typically have a five-year term. The following table presents details of the credit default swap protection sold by type of contract and external agency rating for the underlying reference security. As at December 31, 2017 Notional (2) Fair value Weighted (in years) (3) Single name CDSs (1) Corporate debt AAA $ 13 $ – 1 AA 35 1 2 A 408 10 3 BBB 150 3 2 Total single name CDSs $ 606 $ 14 3 Total CDS protection sold $ 606 $ 14 3 As at December 31, 2016 Notional (2) Fair value Weighted (in years) (3) Single name CDSs (1) Corporate debt AAA $ 13 $ – 2 AA 37 1 3 A 457 13 4 BBB 155 4 3 Total single name CDSs $ 662 $ 18 4 Total CDS protection sold $ 662 $ 18 4 (1) Rating agency designations are based on S&P where available followed by Moody’s, DBRS, and Fitch. If no rating is available from a rating agency, an internally developed rating is used. (2) Notional amounts represent the maximum future payments the Company would have to pay its counterparties assuming a default of the underlying credit and zero recovery on the underlying issuer obligation. (3) The weighted average maturity of the CDS is weighted based on notional amounts. The Company held no purchased credit protection as at December 31, 2017 and 2016. (d) Derivatives The Company’s point-in-time BBB- AA- As at December 31, 2017, the largest single counterparty exposure, without considering the impact of master netting agreements or the benefit of collateral held, was $2,629 (2016 – $3,891). The net exposure to this counterparty, after considering master netting agreements and the fair value of collateral held, was $nil (2016 – $nil). As at December 31, 2017, the total maximum credit exposure related to derivatives across all counterparties, without considering the impact of master netting agreements and the benefit of collateral held, was $16,204 (2016 – $24,603). (e) Offsetting financial assets and financial liabilities Certain derivatives, securities lent and repurchase agreements have conditional offset rights. The Company does not offset these financial instruments in the Consolidated Statements of Financial Position, as the rights of offset are conditional. In the case of derivatives, collateral is collected from and pledged to counterparties and clearing houses to manage credit risk exposure in accordance with Credit Support Annexes to swap agreements and clearing agreements. Under master netting agreements, the Company has a right of offset in the event of default, insolvency, bankruptcy or other early termination. In the case of reverse repurchase and repurchase transactions, additional collateral may be collected from or pledged to counterparties to manage credit exposure according to bilateral reverse repurchase or repurchase agreements. In the event of default by a counterparty, the Company is entitled to liquidate the collateral held to offset against the same counterparty’s obligation. The following table presents the effect of conditional master netting and similar arrangements. Similar arrangements may include global master repurchase agreements, global master securities lending agreements, and any related rights to financial collateral. Related amounts not set off in the As at December 31, 2017 Gross amounts of (1) Amounts subject to Financial and (2) Net amount (3) Net amounts Financial assets Derivative assets $ 16,204 $ (6,714 ) $ (9,395 ) $ 95 $ 95 Securities lending 1,563 – (1,563 ) – – Reverse repurchase agreements 230 (46 ) (184 ) – – Total financial assets $ 17,997 $ (6,760 ) $ (11,142 ) $ 95 $ 95 Financial liabilities Derivative liabilities $ (8,649 ) $ 6,714 $ 1,718 $ (217 ) $ (30 ) Repurchase agreements (228 ) 46 182 – – Total financial liabilities $ (8,877 ) $ 6,760 $ 1,900 $ (217 ) $ (30 ) Related amounts not set off in the As at December 31, 2016 Gross amounts of (1) Amounts subject to Financial and (2) Net amount (3) Net amounts Financial assets Derivative assets $ 24,603 $ (12,031 ) $ (12,382 ) $ 190 $ 189 Securities lending 1,956 – (1,956 ) – – Reverse repurchase agreements 250 – (250 ) – – Total financial assets $ 26,809 $ (12,031 ) $ (14,588 ) $ 190 $ 189 Financial liabilities Derivative liabilities $ (15,095 ) $ 12,031 $ 2,800 $ (264 ) $ (42 ) Repurchase agreements (255 ) – 255 – – Total financial liabilities $ (15,350) $ 12,031 $ 3,055 $ (264 ) $ (42 ) (1) Financial assets and liabilities include accrued interest of $638 and $827, respectively (2016 – $935 and $944, respectively). (2) Financial and cash collateral exclude over-collateralization. As at December 31, 2017, the Company was over-collateralized on OTC derivative assets, OTC derivative liabilities, securities lending and reverse purchase agreements and repurchase agreements in the amounts of $743, $382, $79 and $nil, respectively (2016 – $398, $494, $107 and $1, respectively). As at December 31, 2017, collateral pledged (received) does not include collateral-in-transit (3) Includes derivative contracts entered between the Company and its financing trusts which it does not consolidate. The Company does not exchange collateral on derivative contracts entered with these trusts. Refer to note 17. Certain of the Company’s credit linked note assets and variable surplus note liabilities have unconditional offset rights. Under netting agreements, the Company has rights of offset including in the event of the Company’s default, insolvency, or bankruptcy. These financial instruments are offset in the Company’s Consolidated Statements of Financial Position. A credit linked note is a security that allows the issuer to transfer a specific credit risk to the buyer. A surplus note is a subordinated debt obligation that often qualifies as surplus (the U.S. statutory equivalent of equity) by some U.S. state insurance regulators. Interest payments on surplus notes are made after all other contractual payments are made. The following table presents the effect of unconditional netting. As at December 31, 2017 Gross amounts of Amounts subject to Net amounts of Credit linked note (1) $ 461 $ (461 ) $ – Variable surplus note (461 ) 461 – (1) In 2017, the Company entered into a twenty-year financing facility with a third party, agreeing to issue variable surplus notes in exchange for an equal amount of credit linked notes. These notes are held to support John Hancock Life Insurance Company (USA) (“JHUSA”) excess reserves under U.S. National Association of Insurance Commissioners’ Model Regulation XXX. In certain scenarios, the credit linked note will be drawn upon by the Company which will issue fixed surplus notes equal to the draw payment received. The third party has agreed to fund any such payment under the credit-linked notes in return for a fee. As at December 31, 2017, the Company had no fixed surplus notes outstanding. (f) Risk concentrations The Company defines enterprise-wide investment portfolio level targets and limits to ensure that portfolios are diversified across asset classes and individual investment risks. The Company monitors actual investment positions and risk exposures for concentration risk and reports its findings to the Executive Risk Committee and the Risk Committee of the Board of Directors. As at December 31, 2017 2016 Debt securities and private placements rated as investment grade BBB or higher (1) 98% 97% Government debt securities as a per cent of total debt securities 39% 43% Government private placements as a per cent of total private placements 10% 10% Highest exposure to a single non-government $ 1,044 $ 1,010 Largest single issuer as a per cent of the total equity portfolio 2% 3% Income producing commercial office properties (2017 – 64% of real estate, 2016 – 65%) $ 8,836 $ 9,200 Largest concentration of mortgages and real estate (2) $ 14,779 $ 13,882 (1) Investment grade debt securities and private placements include 42% rated A, 16% rated AA and 17% rated AAA (2016 – 41%, 14% and 21%) investments based on external ratings where available. (2) Mortgages and real estate are diversified geographically and by property type. The following table presents debt securities and private placements portfolio by sector and industry. 2017 2016 As at December 31, Carrying value % of total Carrying value % of total Government and agency $ 71,888 35 $ 76,020 38 Utilities 40,568 20 37,561 19 Financial 27,923 13 25,027 13 Energy 16,428 8 15,775 8 Industrial 14,691 7 13,088 6 Consumer (non-cyclical) 14,009 7 12,440 6 Consumer (cyclical) 5,916 3 4,256 2 Securitized 3,577 2 3,514 2 Telecommunications 3,324 2 3,091 2 Basic materials 3,248 2 3,387 2 Technology 2,475 1 2,231 1 Media and internet 1,136 – 1,175 1 Diversified and miscellaneous 949 – 786 – Total $ 206,132 100 $ 198,351 100 (g) Insurance risk Insurance risk is the risk of loss due to actual experience for mortality and morbidity claims, policyholder behaviour and expenses emerging differently than assumed when a product was designed and priced. A variety of assumptions are made related to these experience factors, for reinsurance costs, and for sales levels when products are designed and priced, as well as in the determination of policy liabilities. Assumptions for future claims are generally based on both Company and industry experience, and assumptions for future policyholder behaviour and expenses are generally based on Company experience. Such assumptions require significant professional judgment, and actual experience may be materially different than the assumptions made by the Company. Claims may be impacted unexpectedly by changes in the prevalence of diseases or illnesses, medical and technology advances, widespread lifestyle changes, natural disasters, large-scale man-made Non-Guaranteed The Company manages insurance risk through global policies, standards and best practices with respect to product design, pricing, underwriting and claim adjudication, and a global underwriting manual. Each business unit establishes underwriting policies and procedures, including criteria for approval of risks and claims adjudication policies and procedures. The current global life retention limit is US$30 for individual policies (US$35 for survivorship life policies) and is shared across businesses. Lower limits are applied in some markets and jurisdictions. The Company aims to further reduce exposure to claims concentrations by applying geographical aggregate retention limits for certain covers. Enterprise-wide, the Company aims to reduce the likelihood of high aggregate claims by operating globally, insuring a wide range of unrelated risk events, and reinsuring some risk. (h) Concentration risk The geographic concentration of the Company’s insurance and investment contract liabilities, including embedded derivatives, is shown below. The disclosure is based on the countries in which the business is written. As at December 31, 2017 Gross liabilities Reinsurance Net liabilities U.S. and Canada $ 237,434 $ (30,225 ) $ 207,209 Asia and Other 70,521 (134 ) 70,387 Total $ 307,955 $ (30,359 ) $ 277,596 As at December 31, 2016 Gross liabilities Reinsurance Net liabilities U.S. and Canada $ 238,796 $ (34,987 ) $ 203,809 Asia and Other 62,322 35 62,357 Total $ 301,118 $ (34,952 ) $ 266,166 (i) Reinsurance risk In the normal course of business, the Company limits the amount of loss on any one policy by reinsuring certain levels of risk with other insurers. In addition, the Company accepts reinsurance from other reinsurers. Reinsurance ceded does not discharge the Company’s liability as the primary insurer. Failure of reinsurers to honour their obligations could result in losses to the Company; consequently, allowances are established for amounts deemed uncollectible. To minimize losses from reinsurer insolvency, the Company monitors the concentration of credit risk both geographically and with any one reinsurer. In addition, the Company selects reinsurers with high credit ratings. As at December 31, 2017, the Company had $30,359 (2016 – $34,952) of reinsurance assets. Of this, 92 per cent (2016 – 92 per cent) were ceded to reinsurers with Standard and Poor’s ratings of A- |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Long-Term Debt | Note 11 Long-Term Debt (a) Carrying value of long-term debt instruments As at December 31, Issue date Maturity date Par value 2017 2016 4.70% Senior notes (1),(3) June 23, 2016 June 23, 2046 US$ 1,000 $ 1,246 $ 1,333 5.375% Senior notes (2),(3) March 4, 2016 March 4, 2046 US$ 750 928 994 3.527% Senior notes (2),(3) December 2, 2016 December 2, 2026 US$ 270 338 361 4.150% Senior notes (2),(3) March 4, 2016 March 4, 2026 US$ 1,000 1,246 1,333 4.90% Senior notes (2),(3) September 17, 2010 September 17, 2020 US$ 500 626 669 7.768% Medium-term notes (4) April 8, 2009 April 8, 2019 $ 600 – 599 5.505% Medium-term notes (5) June 26, 2008 June 26, 2018 $ 400 400 400 Other notes payable (6) n/a n/a n/a 1 7 Total $ 4,785 $ 5,696 (1) MFC may redeem the notes in whole, but not in part, on June 23, 2021 and thereafter on every June 23, at a redemption price equal to par, together with accrued and unpaid interest. (2) MFC may redeem the senior notes in whole or in part, at any time, at a redemption price equal to the greater of par and a price based on the yield of a corresponding U.S. Treasury bond plus a specified number of basis points. The specified number of basis points is as follows: 5.375% – 40 bps, 3.527% – 20 bps, 4.150% – 35 bps, and 4.90% – 35 bps. (3) These U.S. dollar senior notes have been designated as hedges of the Company’s net investment in its U.S. operations which reduces the earnings volatility that would otherwise arise from the re-measurement (4) On October 6, 2017, MFC redeemed, prior to maturity, all of its outstanding 7.768% medium term notes due April 8, 2019. The early redemption premium of $44 before income taxes was recorded as interest expense. (5) MFC may redeem the medium-term notes in whole or in part, at any time, at a redemption price equal to the greater of par and a price based on the yield of a corresponding Government of Canada bond plus 39 basis points. (6) Other notes payable were substantially repaid during the year. The cash amount of interest paid on long-term debt during the year ended December 31, 2017 was $324 (2016 – $191). Issue costs are amortized over the term of the debt. (b) Fair value measurement Fair value of a long-term debt instrument is determined using quoted market prices where available (Level 1). When quoted market prices are not available, fair value is determined with reference to quoted prices of a debt instrument with similar characteristics or estimated using discounted cash flows using observable market rates (Level 2). Long-term debt is measured at amortized cost in the Consolidated Statements of Financial Position. Fair value of long-term debt as at December 31, 2017 was $5,187 (2016 – $6,100). Long-term debt was categorized in Level 2 of the fair value hierarchy (2016 – Level 2). (c) Aggregate maturities of long-term debt As at December 31, 2017 2016 Less than one year $ 401 $ 7 One to two years – 400 Two to three years 626 599 Three to four years – 669 Four to five years – – Greater than five years 3,758 4,021 Total $ 4,785 $ 5,696 |
Capital Instruments
Capital Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Capital Instruments | Note 12 Capital Instruments (a) Carrying value of capital instruments As at December 31, Issuance date Earliest par redemption Maturity date Par value 2017 2016 4.165% MLI Subordinated debentures (1) February 17, 2012 June 1, 2017 June 1, 2022 $ 500 $ – $ 499 3.938% MLI Subordinated debentures (2) September 21, 2012 September 21, 2017 September 21, 2022 $ 400 – 407 2.819% MLI Subordinated debentures (3) February 25, 2013 February 26, 2018 February 26, 2023 $ 200 200 200 2.926% MLI Subordinated debentures (3) November 29, 2013 November 29, 2018 November 29, 2023 $ 250 250 249 2.811% MLI Subordinated debentures (3) February 21, 2014 February 21, 2019 February 21, 2024 $ 500 499 499 7.535% MFCT II Senior debenture notes (4) July 10, 2009 December 31, 2019 December 31, 2108 $ 1,000 1,000 1,000 2.64% MLI Subordinated debentures (3) December 1, 2014 January 15, 2020 January 15, 2025 $ 500 499 499 2.10% MLI Subordinated debentures (3) March 10, 2015 June 1, 2020 June 1, 2025 $ 750 748 747 2.389% MLI Subordinated debentures (3) June 1, 2015 January 5, 2021 January 5, 2026 $ 350 349 349 3.85% MFC Subordinated notes (5) May 25, 2016 May 25, 2021 May 25, 2026 S$ 500 467 461 3.181% MLI Subordinated debentures (3) November 20, 2015 November 22, 2022 November 22, 2027 $ 1,000 996 996 3.049% MFC Subordinated debentures (6) August 18, 2017 August 20, 2024 August 20, 2029 $ 750 746 – 3.00% MFC Subordinated notes (5) November 21, 2017 November 21, 2024 November 21, 2024 S$ 500 467 – 4.061% MFC Subordinated notes (7) February 24, 2017 February 24, 2027 February 24, 2032 US$ 750 935 – 7.375% JHUSA Surplus notes (8) February 25, 1994 n/a February 15, 2024 US$ 450 584 627 JHFC Subordinated notes (9) December 14, 2006 n/a December 15, 2036 $ 650 647 647 Total $ 8,387 $ 7,180 (1) MLI redeemed in full the 4.165% subordinated debentures at par, on June 1, 2017, the earliest par redemption date. (2) MLI redeemed in full the 3.938% subordinated debentures, originally issued by Standard Life Assurance Company of Canada at par, on September 21, 2017, the earliest par redemption date. (3) Interest is fixed for the period up to the earliest par redemption date, thereafter the interest rate will reset to a floating rate equal to the 90-day (4) Issued by MLI to Manulife Financial Capital Trust II (MFCT II), a wholly owned unconsolidated related party to the Company. On the earliest par redemption date and on every fifth anniversary thereafter (each, a “Interest Reset Date”), the rate of interest will reset to equal the yield on 5-year (5) On the earliest par redemption date, the interest rate will reset to equal the 5-year (6) Interest is fixed for the period up to the earliest par redemption date, thereafter, the interest rate will reset to a floating rate equal to the 90-day (7) On the earliest par redemption date, the interest rate will reset to equal the 5-Year Mid-Swap (8) Issued by John Hancock Mutual Life Insurance Company, now John Hancock Life Insurance Company (U.S.A.). Any payment of interest or principal on the surplus notes requires prior approval from the Department of Insurance and Financial Services of the State of Michigan. The carrying value of the surplus notes reflects an unamortized fair value increment of US$23 (2016 – US$26), which arose as a result of the acquisition of John Hancock Financial Services, Inc. The amortization of the fair value adjustment is recorded in interest expense. (9) Issued by Manulife Holdings (Delaware) LLC (“MHDLL”), now John Hancock Financial Corporation (“JHFC”), a wholly owned subsidiary of MFC, to Manulife Finance (Delaware) LLC (“MFLLC”), a subsidiary of Manulife Finance (Delaware) L.P. (“MFLP”). MFLP and its subsidiaries are wholly owned unconsolidated related parties to the Company. The note bears interest at a floating rate equal to the 90-day (b) Fair value measurement Fair value of capital instruments is determined using quoted market prices where available (Level 1). When quoted market prices are not available fair value is determined with reference to quoted prices of a debt instrument with similar characteristics or estimated using discounted cash flows using observable market rates (Level 2). Capital instruments are measured at amortized cost in the Consolidated Statements of Financial Position. As at December 31, 2017, fair value of capital instruments was $8,636 (2016 – $7,417). Capital instruments were categorized in Level 2 of the fair value hierarchy (2016 – Level 2). |
Share Capital and Earnings Per
Share Capital and Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Share Capital and Earnings Per Share | Note 13 Share Capital and Earnings Per Share The authorized capital of MFC consists of: ∎ an unlimited number of common shares without nominal or par value; and ∎ an unlimited number of Class A, Class B and Class 1 preferred shares without nominal or par value, issuable in series. (a) Preferred shares The changes in issued and outstanding preferred shares are as follows. 2017 2016 For the years ended December 31, Number of (in millions) Amount Number of (in millions) Amount Balance, January 1 146 $ 3,577 110 $ 2,693 Issued, Class 1 shares, Series 21 – – 17 425 Converted, Class 1 shares, Series 3 – – (2 ) (42 ) Issued, Class 1 shares, Series 4 – – 2 42 Issued, Class 1 shares, Series 23 – – 19 475 Issuance costs, net of tax – – – (16 ) Balance, December 31 146 $ 3,577 146 $ 3,577 The following table presents additional information on the preferred shares outstanding as at December 31, 2017. As at December 31, 2017 Issue date Annual (1) Earliest redemption (2) Number of (in millions) Face Net (3) Class A preferred shares Series 2 February 18, 2005 4.65% n/a 14 $ 350 $ 344 Series 3 January 3, 2006 4.50% n/a 12 300 294 Class 1 preferred shares Series 3 (4),(5) March 11, 2011 2.178% June 19, 2021 6 158 155 Series 4 June 20, 2016 floating (6) n/a 2 42 41 Series 5 (4),(5) December 6, 2011 3.891% December 19, 2021 8 200 195 Series 7 (4),(5),(7) February 22, 2012 4.312% March 19, 2022 10 250 244 Series 9 (4),(5),(8) May 24, 2012 4.351% September 19, 2022 10 250 244 Series 11 (4),(5) December 4, 2012 4.00% March 19, 2018 8 200 196 Series 13 (4),(5) June 21, 2013 3.80% September 19, 2018 8 200 196 Series 15 (4),(5) February 25, 2014 3.90% June 19, 2019 8 200 195 Series 17 (4),(5) August 15, 2014 3.90% December 19, 2019 14 350 343 Series 19 (4),(5) December 3, 2014 3.80% March 19, 2020 10 250 246 Series 21 (4),(5) February 25, 2016 5.60% June 19, 2021 17 425 417 Series 23 (4),(5) November 22, 2016 4.85% March 19, 2022 19 475 467 Total 146 $ 3,650 $ 3,577 (1) Holders of Class A and Class 1 preferred shares are entitled to receive non-cumulative (2) Redemption of all preferred shares is subject to regulatory approval. With the exception of Class A Series 2, Class A Series 3 and Class 1 Series 4 preferred shares, MFC may redeem each series, in whole or in part, at par, on the earliest redemption date or every five years thereafter. Class A Series 2 and Series 3 preferred shares are past their respective earliest redemption date and MFC may redeem these shares, in whole or in part, at par at any time, subject to regulatory approval, as noted. MFC may redeem the Class 1 Series 4, in whole or in part, at any time, at $25.00 per share if redeemed on June 19, 2021 and on June 19 every five years thereafter, or at $25.50 per share if redeemed on any other date after June 19, 2016, subject to regulatory approval, as noted. (3) Net of after-tax (4) On the earliest redemption date and every five years thereafter, the annual dividend rate will be reset to the five year Government of Canada bond yield plus a yield specified for each series. The specified yield for Class 1 shares is: Series 3 – 1.41%, Series 5 – 2.90%, Series 7 – 3.13%, Series 9 – 2.86%, Series 11 – 2.61%, Series 13 – 2.22%, Series 15 – 2.16%, Series 17 – 2.36%, Series 19 – 2.30%, Series 21 – 4.97% and Series 23 – 3.83%. (5) On the earliest redemption date and every five years thereafter, Class 1 preferred shares are convertible at the option of the holder into a new series that is one number higher than their existing series, and the holders are entitled to non-cumulative (6) The floating dividend rate for the Class 1 Shares Series 4 will equal the three month Government of Canada Treasury bill yield plus 1.41%. (7) MFC did not exercise its right to redeem all or any of the outstanding Class 1 Shares Series 7 on March 19, 2017 (the earliest redemption date). Dividend rate for Class 1 Shares Series 7 was reset as specified in footnote 4 above to an annual fixed rate of 4.312% for a five year period commencing on March 20, 2017. (8) MFC did not exercise its right to redeem all or any of the outstanding Class 1 Shares Series 9 on September 19, 2017 (the earliest redemption date). Dividend rate for Class 1 Shares Series 9 was reset as specified in footnote 4 above to an annual fixed rate of 4.351% for a five year period commencing on September 20, 2017. (b) Common shares The changes in common shares issued and outstanding are as follows. 2017 2016 For the years ended December 31, Number of (in millions) Amount Number of (in millions) Amount Balance, January 1 1,975 $ 22,865 1,972 $ 22,799 Issued on exercise of stock options and deferred share units 7 124 3 66 Total 1,982 $ 22,989 1,975 $ 22,865 (c) Earnings per share The following table presents basic and diluted earnings per common share of the Company. For the years ended December 31, 2017 2016 Basic earnings per common share $ 0.98 $ 1.42 Diluted earnings per common share 0.98 1.41 The following is a reconciliation of the denominator (number of shares) in the calculation of basic and diluted earnings per share. For the years ended December 31, 2017 2016 Weighted average number of common shares (in millions) 1,978 1,973 Dilutive stock-based awards (1) 8 4 Weighted average number of diluted common shares (in millions) 1,986 1,977 (1) The dilutive effect of stock-based awards was calculated using the treasury stock method. This method calculates the number of incremental shares by assuming the outstanding stock-based awards are (i) exercised and (ii) then reduced by the number of shares assumed to be repurchased from the issuance proceeds, using the average market price of MFC common shares for the year. Excluded from the calculation was a weighted average of 2 million (2016 – 14 million) anti-dilutive stock-based awards. (d) Quarterly dividend declaration subsequent to year end On February 7, 2018, the Company’s Board of Directors approved a quarterly dividend of $0.22 per share on the common shares of MFC, payable on or after March 19, 2018 to shareholders of record at the close of business on February 21, 2018. The Board also declared dividends on the following non-cumulative Class A Shares Series 2 – $0.29063 per share Class 1 Shares Series 11 – $0.25 per share Class A Shares Series 3 – $0.28125 per share Class 1 Shares Series 13 – $0.2375 per share Class 1 Shares Series 3 – $0.136125 per share Class 1 Shares Series 15 – $0.24375 per share Class 1 Shares Series 4 – $0.141103 per share Class 1 Shares Series 17 – $0.24375 per share Class 1 Shares Series 5 – $0.243188 per share Class 1 Shares Series 19 – $0.2375 per share Class 1 Shares Series 7 – $0.2695 per share Class 1 Shares Series 21 – $0.35 per share Class 1 Shares Series 9 – $0.271938 per share Class 1 Shares Series 23 – $0.303125 per share |
Capital Management
Capital Management | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Capital Management | Note 14 Capital Management (a) Capital management The Company monitors and manages its consolidated capital in compliance with the Minimum Continuing Capital and Surplus Requirement (“MCCSR”) guideline, issued by the Office of the Superintendent of Financial Institutions (“OSFI”). Under this framework, the Company’s consolidated available capital is measured against a required amount of risk capital determined in accordance with the guideline. The Company’s operating activities are conducted within MLI or its subsidiaries. MLI is regulated by OSFI and is also subject to consolidated risk-based capital requirements using the OSFI MCCSR framework. OSFI will be implementing a revised approach to the regulatory capital framework in Canada in the first quarter of 2018. The Company seeks to manage its capital with the objectives of: ∎ Operating with sufficient capital to be able to honour all commitments to its policyholders and creditors with a high degree of confidence; ∎ Retaining the ongoing confidence of regulators, policyholders, rating agencies, investors and other creditors in order to ensure access to capital markets; and ∎ Optimizing return on capital to meet shareholders’ expectations subject to constraints and considerations of adequate levels of capital established to meet the first two objectives. Capital is managed and monitored in accordance with the Capital Management Policy. The policy is reviewed and approved by the Board of Directors annually and is integrated with the Company’s risk and financial management frameworks. It establishes guidelines regarding the quantity and quality of capital, internal capital mobility, and proactive management of ongoing and future capital requirements. The capital management framework takes into account the requirements of the Company as a whole as well as the needs of each of the Company’s subsidiaries. Internal capital targets are set above the regulatory requirements, and consider a number of factors, including expectations of regulators and rating agencies, results of sensitivity and stress testing and our own risk assessments. The Company monitors against these internal targets and initiates actions appropriate to achieving its business objectives. The following measure of consolidated capital serves as the foundation of the Company’s capital management activities at the MFC level. For regulatory reporting purposes, the numbers are further adjusted for various additions or deductions to capital, as mandated by the OSFI guideline. Consolidated capital As at December 31, 2017 2016 Total equity $ 42,163 $ 42,823 Adjusted for AOCI loss on cash flow hedges (109 ) (232 ) Total equity excluding AOCI on cash flow hedges 42,272 43,055 Qualifying capital instruments 8,387 7,180 Total capital $ 50,659 $ 50,235 (b) Restrictions on dividends and capital distributions Dividends and capital distributions are restricted under the Insurance Company Act (“ICA”). These restrictions apply to both the Company and its primary operating subsidiary MLI. The ICA prohibits the declaration or payment of any dividend on shares of an insurance company if there are reasonable grounds for believing a company does not have adequate capital and adequate and appropriate forms of liquidity or the declaration or the payment of the dividend would cause the company to be in contravention of any regulation made under the ICA respecting the maintenance of adequate capital and adequate and appropriate forms of liquidity, or of any direction made to the company by OSFI. The ICA also requires an insurance company to notify OSFI of the declaration of a dividend at least 15 days prior to the date fixed for its payment. Similarly, the ICA prohibits the purchase for cancellation of any shares issued by an insurance company or the redemption of any redeemable shares or other similar capital transactions, if there are reasonable grounds for believing that the company does not have adequate capital and adequate and appropriate forms of liquidity or the payment would cause the company to be in contravention of any regulation made under the ICA respecting the maintenance of adequate capital and adequate and appropriate forms of liquidity, or any direction made to the company by OSFI. These latter transactions would require the prior approval of OSFI. The ICA requires Canadian insurance companies to maintain adequate levels of capital at all times. Since the Company is a holding company that conducts all of its operations through regulated insurance subsidiaries (or companies owned directly or indirectly by these subsidiaries), its ability to pay future dividends will depend on the receipt of sufficient funds from its regulated insurance subsidiaries. These subsidiaries are also subject to certain regulatory restrictions under laws in Canada, the United States and certain other countries that may limit their ability to pay dividends or make other upstream distributions. The Company and MLI have covenanted for the benefit of holders of the outstanding Trust II Notes – Series I (the “Notes”) that, if interest is not paid in full in cash on the Notes on any interest payment date or if MLI elects that holders of Notes invest interest payable on the Notes on any interest payment date in a new series of Manufacturers Life Class 1 Shares, MLI will not declare or pay cash dividends on any MLI Public Preferred Shares (as defined below), if any are outstanding, and if no MLI Public Preferred Shares are outstanding, MFC will not declare or pay cash dividends on its Preferred Shares and Common Shares, in each case, until the sixth month following such deferral date. “MLI Public Preferred Shares” means, at any time, preferred shares of MLI which at that time: (a) have been issued to the public (excluding any preferred shares of MLI held beneficially by affiliates of MLI); (b) are listed on a recognized stock exchange; and (c) have an aggregate liquidation entitlement of at least $200, however, if at any time, there is more than one class of MLI Public Preferred Shares outstanding, then the most senior class or classes of outstanding MLI Public Preferred Shares shall, for all purposes, be the MLI Public Preferred Shares. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Stock-Based Compensation | Note 15 Stock-Based Compensation (a) Stock options The Company grants stock options under its Executive Stock Option Plan (“ESOP”) to selected individuals. The options provide the holder the right to purchase MFC common shares at an exercise price equal to the higher of the prior day, prior five-day ten-day Options outstanding 2017 2016 For the years ended December 31, Number of options (in millions ) Weighted average exercise price Number of options (in millions ) Weighted average exercise price Outstanding, January 1 30 $ 19.80 30 $ 20.72 Granted 4 24.56 6 17.65 Exercised (7 ) 16.03 (3 ) 15.49 Expired (1 ) 39.47 (2 ) 32.92 Forfeited (1 ) 20.86 (1 ) 21.04 Outstanding, December 31 25 $ 20.45 30 $ 19.80 Exercisable, December 31 12 $ 19.93 18 $ 20.15 Options outstanding Options exercisable For the year ended December 31, 2017 Number of options (in millions ) Weighted average exercise price Weighted average remaining contractual life (in years) Number of options (in millions ) Weighted average exercise price Weighted average remaining contractual life (in years) $11.23 – $20.99 14 $ 17.08 4.91 9 $ 16.78 3.05 $21.00 – $29.99 10 $ 22.77 6.88 2 $ 21.40 3.77 $30.00 – $37.71 1 $ 37.71 0.14 1 $ 37.71 0.14 Total 25 $ 20.45 5.44 12 $ 19.93 2.87 The weighted average fair value of each option granted in 2017 has been estimated at $5.18 (2016 – $3.78) using the Black-Scholes option-pricing model. The pricing model uses the following assumptions for these options: risk-free interest rate of 1.25% (2016 – 1.50%), dividend yield of 3.00% (2016 – 3.00%), expected volatility of 29.5% (2016 – 29.5%) and expected life of 6.7 (2016 – 6.7) years. Expected volatility is estimated by evaluating a number of factors including historical volatility of the share price over multi-year periods. Compensation expense related to stock options was $16 for the year ended December 31, 2017 (2016 – $19). (b) Deferred share units In 2000, the Company granted deferred share units (“DSUs”) to certain employees under the ESOP. These DSUs vested over a three-year period and each DSU entitles the holder to receive one common share on retirement or termination of employment. When dividends are paid on common shares, holders of DSUs are deemed to receive dividends at the same rate, payable in the form of additional DSUs. In 2017, nil DSUs were granted to employees under the ESOP (2016 – nil). The number of DSUs outstanding was 610,000 as at December 31, 2017 (2016 – 633,000). In addition, for certain employees and pursuant to the Company’s deferred compensation program, the Company grants DSUs under the RSU Plan which entitle the holder to receive payment in cash equal to the value of the same number of common shares plus credited dividends on retirement or termination of employment. In 2017, the Company granted 23,000 DSUs to certain employees which vest after 34 months (2016 – 14,000 units which vest after four years). In 2017, nil DSUs (2016 – 27,000) were granted to certain employees who elected to defer receipt of all or part of their annual bonus. These DSUs vested immediately. Also, in 2017, 43,000 DSUs (2016 – 83,000) were granted to certain employees to defer payment of all or part of their Restricted Share Units (“RSUs”) and/or Performance Share Units (“PSUs”). These DSUs also vested immediately. The fair value of 156,000 DSUs issued during the year was $26.22 per unit, as at December 31, 2017 (2016 – 254,000 at $23.91 per unit). Under the Stock Plan for Non-Employee For the years ended December 31, Number of DSUs (in thousands) 2017 2016 Outstanding, January 1 2,682 2,542 Issued 156 254 Reinvested 88 97 Redeemed (279 ) (184 ) Forfeitures and cancellations (2 ) (27 ) Outstanding, December 31 2,645 2,682 Of the DSUs outstanding as at December 31, 2017, 610,000 (2016 – 633,000) entitle the holder to receive common shares, 1,103,000 (2016 – 1,235,000) entitle the holder to receive payment in cash and 932,000 (2016 – 814,000) entitle the holder to receive payment in cash or common shares, at the option of the holder. Compensation expense related to DSUs was $13 for the year ended December 31, 2017 (2016 – $6). The carrying and fair value amount of the DSUs liability as at December 31, 2017 was $53 (2016 – $43) and was included in other liabilities. (c) Restricted share units and performance share units For the year ended December 31, 2017, 5.6 million RSUs (2016 – 7.6 million) and 1.0 million PSUs (2016 – 1.2 million) were granted to certain eligible employees under MFC’s Restricted Share Unit Plan. The fair value of the RSUs and PSUs granted during the year was $26.22 per unit as at December 31, 2017 (2016 – $23.91 per unit). Each RSU and PSU entitles the holder to receive payment equal to the market value of one common share, plus credited dividends, at the time of vesting, subject to any performance conditions. RSUs granted in February 2017 will vest after 34 months and PSUs granted in February 2017 will vest after 36 months from their grant date and the related compensation expense is recognized over these periods, except where the employee is eligible to retire prior to a vesting date, in which case the cost is recognized over the period between the grant date and the date on which the employee is eligible to retire. Compensation expense related to RSUs and PSUs was $125 and $21, respectively, for the year ended December 31, 2017 (2016 – $110 and $9, respectively). The carrying and fair value amount of the RSUs and PSUs liability as at December 31, 2017 was $228 (2016 – $196) and was included in other liabilities. (d) Global share ownership plan The Company’s Global Share Ownership Plan (“GSOP”) allows qualifying employees to apply up to five per cent of their annual base earnings toward the purchase of common shares. The Company matches a percentage of the employee’s eligible contributions up to a maximum amount. The Company’s contributions vest immediately. All contributions are used to purchase common shares in the open market. |
Employee Future Benefits
Employee Future Benefits | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Employee Future Benefits | Note 16 Employee Future Benefits The Company maintains defined contribution and defined benefit pension plans and other post-employment plans for employees and agents including registered (tax qualified) pension plans that are typically funded, as well as supplemental non-registered (non-qualified) (a) Plan characteristics To reduce the financial risk associated with final average pay defined benefit pension plans and retiree welfare plans, the Company has over time closed all these plans to new members and, in the case of pension plans, has replaced them with capital accumulation plans. The latter include defined benefit cash balance plans, 401(k) plans and/or defined contribution plans, depending on the country of employment. The result is that final average pay pension plans account for less than 50 per cent of the Company’s global pension obligations and the number of employees who accrue these pensions declines each year. Prior to the Company’s acquisition of the Canadian-based operations of Standard Life plc, advance provision had been made on Standard Life’s balance sheet for continuing its practice of regularly granting increases in retiree pensions on a non-contractual ad-hoc All pension arrangements are governed by local pension committees or management but significant plan changes require approval from the Company’s Board of Directors. The Company’s funding policy for defined benefit pension plans is to make the minimum annual contributions required by regulations in the countries in which the plans are offered. Assumptions and methods prescribed for regulatory funding purposes typically differ from those used for accounting purposes. The Company’s remaining defined benefit pension and/or retiree welfare plans are in the U.S., Canada, Japan, and Taiwan. There are also disability welfare plans in the U.S. and Canada. The largest defined benefit pension and retiree welfare plans are the primary plans for employees in the U.S. and Canada. These are the material plans that are discussed in the balance of this note. The Company measures its defined benefit obligations and fair value of plan assets for accounting purposes as at December 31 each year. U.S. defined benefit pension and retiree welfare plans The Company operates a qualified cash balance plan that is open to new members, a closed non-qualified Actuarial valuations to determine the Company’s minimum funding contributions for the qualified cash balance plan are required annually. Deficits revealed in the funding valuations must generally be funded over a period of up to seven years. It is expected that there will be no required funding for this plan in 2018. There are no plan assets set aside for the non-qualified The retiree welfare plan subsidizes the cost of life insurance and medical benefits. The majority of those who retired after 1991 receive a fixed-dollar subsidy from the Company based on service. The plan was closed to all employees hired after 2004. While assets have been set aside in a qualified trust to pay future retiree welfare benefits, this funding is optional. Retiree welfare benefits offered under the plan coordinate with the U.S. Medicare program to make optimal use of available federal financial support. The qualified pension and retiree welfare plans are governed by the U.S. Benefits Committee, while the non-qualified Non-Qualified Canadian defined benefit pension and retiree welfare plans The Company’s defined benefit plans in Canada include two registered final average pay pension plans, a non-registered Actuarial valuations to determine the Company’s minimum funding contributions for the registered pension plans are required at least once every three years. Deficits revealed in the funding valuation must generally be funded over a period of not less than ten years. For 2018, the required funding for these plans is expected to be $31. The supplemental non-registered The retiree welfare plan subsidizes the cost of life insurance, medical and dental benefits. These subsidies are a fixed dollar amount for those who retired after April 30, 2013 and will be eliminated for those who retire after 2019. There are no assets set aside for this plan. The registered pension plans are governed by Pension Committees, while the supplemental non-registered (b) Risks In final average pay pension plans and retiree welfare plans, the Company generally bears the material risks which include interest rate, investment, longevity and health care cost inflation risks. In defined contribution plans, these risks are typically borne by the employee. In cash balance plans, the interest rate, investment and longevity risks are partially transferred to the employee. Material sources of risk to the Company for all plans include: ∎ A decline in discount rates that increases the defined benefit obligations by more than the change in value of plan assets; ∎ Lower than expected rates of mortality; and ∎ For retiree welfare plans, higher than expected health care costs. The Company has managed these risks through plan design and eligibility changes that have limited the size and growth of the defined benefit obligations. Investment risks for funded plans are managed through strategies aimed at improving the alignment between movements in the invested assets and movements in the obligations. In the U.S., delegated committee representatives and management review the financial status of the qualified defined benefit pension plan at least monthly, and steps are taken in accordance with an established dynamic investment policy to reduce the risk in the plan as the funded status improves. As at December 31, 2017, the target asset allocation for the plan was 29% return-seeking assets and 71% liability-hedging assets. In Canada, internal committees and management review the financial status of the registered defined benefit pension plans on at least a quarterly basis. As at December 31, 2017, the target asset allocation for the plans was 15% return-seeking assets and 85% liability-hedging assets. (c) Pension and retiree welfare plans Pension plans Retiree welfare plans For the years ended December 31, 2017 2016 2017 2016 Changes in defined benefit obligation: Ending balance prior year $ 4,767 $ 4,823 $ 682 $ 713 Plan mergers (1) – 143 – – Current service cost 48 52 1 1 Past service cost – (57 ) – – Interest cost 182 196 26 28 Plan participants’ contributions 1 1 4 5 Actuarial losses (gains) due to: Experience 15 – (9 ) (2 ) Demographic assumption changes – (94 ) – (16 ) Economic assumption changes 214 116 41 20 Benefits paid (315 ) (314 ) (45 ) (50 ) Impact of changes in foreign exchange rates (206 ) (99 ) (35 ) (17 ) Defined benefit obligation, December 31 $ 4,706 $ 4,767 $ 665 $ 682 Pension plans Retiree welfare plans For the years ended December 31, 2017 2016 2017 2016 Change in plan assets: Fair value of plan assets, ending balance prior year $ 4,277 $ 4,122 $ 603 $ 635 Plan mergers (1) – 129 – – Interest income 164 169 23 25 Employer contributions 85 106 12 – Plan participants’ contributions 1 1 4 5 Benefits paid (315 ) (314 ) (45 ) (50 ) Administration costs (5 ) (7 ) (2 ) (2 ) Actuarial gains (losses) 312 158 30 8 Impact of changes in foreign exchange rates (191 ) (87 ) (38 ) (18 ) Fair value of plan assets, December 31 $ 4,328 $ 4,277 $ 587 $ 603 (1) In Canada, two smaller pension plans were merged into the primary Manulife pension plan in 2016. Amounts shown represent the value of the defined benefit obligations and assets transferred from the smaller plans into the primary Manulife plan. (d) Amounts recognized in the Consolidated Statements of Financial Position Pension plans Retiree welfare plans As at December 31, 2017 2016 2017 2016 Development of net defined benefit liability Defined benefit obligation $ 4,706 $ 4,767 $ 665 $ 682 Fair value of plan assets 4,328 4,277 587 603 Deficit 378 490 78 79 Effect of asset limit (1) – – – – Deficit and net defined benefit liability 378 490 78 79 Deficit is comprised of: Funded or partially funded plans (383 ) (292 ) (72 ) (63 ) Unfunded plans 761 782 150 142 Deficit and net defined benefit liability $ 378 $ 490 $ 78 $ 79 (1) No reconciliation has been provided for the effect of the asset limit since there was no effect in either year. For the funded pension plans, the present value of the economic benefits available in the form of reductions in future contributions to the plans is significantly greater than the surplus that would be expected to develop. (e) Disaggregation of defined benefit obligation U.S. plans Canadian plans Pension plans Retiree welfare plans Pension plans Retiree welfare plans As at December 31, 2017 2016 2017 2016 2017 2016 2017 2016 Active members $ 592 $ 637 $ 34 $ 38 $ 393 $ 403 $ 20 $ 20 Inactive and retired members 2,434 2,528 481 502 1,287 1,199 130 122 Total $ 3,026 $ 3,165 $ 515 $ 540 $ 1,680 $ 1,602 $ 150 $ 142 (f) Fair value measurements The major categories of plan assets and the actual per cent allocation to each category are as follows. U.S. plans (1) Canadian plans (2) Pension plans Retiree welfare plans Pension plans Retiree welfare plans As at December 31, 2017 Fair value % of total Fair value % of total Fair value % of total Fair value % of total Cash and cash equivalents $ 33 1% $ 33 6% $ 5 1% $ – – Equity securities (3) 695 24% 45 8% 212 15% – – Debt securities 1,979 67% 502 85% 1,165 84% – – Other investments (4) 235 8% 7 1% 4 0% – – Total $ 2,942 100% $ 587 100% $ 1,386 100% $ – – U.S. plans (1) Canadian plans (2) Pension plans Retiree welfare plans Pension plans Retiree welfare plans As at December 31, 2016 Fair value % of total Fair value % of total Fair value % of total Fair value % of total Cash and cash equivalents $ 15 1% $ 19 3% $ 21 2% $ – – Equity securities (3) 825 28% 150 25% 460 34% – – Debt securities 1,834 62% 427 71% 809 60% – – Other investments (4) 259 9% 7 1% 54 4% – – Total $ 2,933 100% $ 603 100% $ 1,344 100% $ – – (1) All the U.S. pension and retiree welfare plan assets have daily quoted prices in active markets, except for the private equity, timber and agriculture assets. In the aggregate, the latter assets represent approximately 6% of all U.S. pension and retiree welfare plan assets as at December 31, 2017 (2016 – 6%). (2) All the Canadian pension plan assets have daily quoted prices in active markets, except for the group annuity contract assets that represent approximately 0.3% of all Canadian pension plan assets as at December 31, 2017 (2016 – 3%, including real estate and mortgage assets that were sold in 2017). (3) Equity securities include direct investments in MFC common shares of $1.3 (2016 – $1.1) in the U.S. retiree welfare plan and $nil (2016 – $nil) in Canada. (4) Other U.S. plan assets include investment in private equity, timberland and agriculture, and managed futures in 2017. Other Canadian pension plan assets include investment in the group annuity contract. (g) Net benefit cost recognized in the Consolidated Statements of Income Components of the net benefit cost for the pension plans and retiree welfare plans were as follows. Pension plans Retiree welfare plans For the years ended December 31, 2017 2016 2017 2016 Defined benefit current service cost (1) $ 48 $ 52 $ 1 $ 1 Defined benefit administrative expenses 5 7 2 2 Past service cost – plan amendments (2) – (57 ) – – Service cost 53 2 3 3 Interest on net defined benefit (asset) liability (1) 18 27 3 3 Defined benefit cost 71 29 6 6 Defined contribution cost 75 69 – – Net benefit cost $ 146 $ 98 $ 6 $ 6 (1) Includes service and interest costs for the two plans merged into the primary Manulife plan after August 1, 2016. (2) Past service cost in 2016 includes ($55) reflecting the removal of the advance provision made in prior years for non-contractual, ad-hoc (h) Re-measurement Pension plans Retiree welfare plans For the years ended December 31, 2017 2016 2017 2016 Actuarial gains (losses) on defined benefit obligations: Experience $ (15 ) $ – $ 9 $ 2 Demographic assumption changes – 94 – 16 Economic assumption changes (214 ) (116 ) (41 ) (20 ) Return on plan assets greater (less) than discount rate 312 158 30 8 Total re-measurement $ 83 $ 136 $ (2 ) $ 6 (i) Assumptions The key assumptions used by the Company to determine the defined benefit obligation and net benefit cost for the defined benefit pension plans and retiree welfare plans were as follows. U.S. Plans Canadian Plans Pension plans Retiree welfare plans Pension plans Retiree welfare plans For the years ended December 31, 2017 2016 2017 2016 2017 2016 2017 2016 To determine the defined benefit obligation at end of year (1) : Discount rate 3.6% 4.1% 3.6% 4.1% 3.5% 3.9% 3.6% 4.0% Initial health care cost trend rate (2) n/a n/a 8.5% 8.8% n/a n/a 5.9% 6.0% To determine the defined benefit cost for the year (1) Discount rate 4.1% 4.4% 4.1% 4.3% 3.9% 4.1% 4.0% 4.1% Initial health care cost trend rate (2) n/a n/a 8.8% 9.0% n/a n/a 6.0% 6.1% (1) Inflation and salary increase assumptions are not shown as they do not materially affect obligations and cost. (2) The health care cost trend rate used to measure the U.S. based retiree welfare obligation was 8.5% grading to 5.0% for 2032 and years thereafter (2016 – 8.8% grading to 5.0% for 2032) and to measure the net benefit cost was 8.8% grading to 5.0% for 2032 and years thereafter (2016 – 9.0% grading to 5.0% for 2032). In Canada, the rate used to measure the retiree welfare obligation was 5.9% grading to 4.8% for 2026 and years thereafter (2016 – 6.0% grading to 4.8% for 2026) and to measure the net benefit cost was 6.0% grading to 4.8% for 2026 and years thereafter (2016 – 6.1% grading to 4.8% for 2026). Assumptions regarding future mortality are based on published statistics and mortality tables. The current life expectancies underlying the values of the obligations in the defined benefit pension and retiree welfare plans are as follows. As at December 31, 2017 U.S. Canada Life expectancy (in years) for those currently age 65 Males 22.4 22.8 Females 23.9 24.7 Life expectancy (in years) at age 65 for those currently age 45 Males 24.0 23.8 Females 25.5 25.6 (j) Sensitivity of assumptions on obligation Assumptions used can have a significant effect on the obligations reported for defined benefit pension and retiree welfare plans. The potential impact on the obligations arising from changes in the key assumptions is set out in the following table. The sensitivities assume all other assumptions are held constant. In actuality, inter-relationships with other assumptions may exist. As at December 31, 2017 Pension plans Retiree welfare plans Discount rate: Impact of a 1% increase $ (451 ) $ (67 ) Impact of a 1% decrease 536 82 Health care cost trend rate: Impact of a 1% increase n/a 24 Impact of a 1% decrease n/a (21 ) Mortality rates (1) Impact of a 10% decrease 119 16 (1) If the actuarial estimates of mortality are adjusted in the future to reflect unexpected decreases in mortality, the effect of a 10% decrease in mortality rates at each future age would be an increase in life expectancy at age 65 of 0.9 years for U.S. males and females and 0.8 years for Canadian males and females. (k) Maturity profile The weighted average duration (in years) of the defined benefit obligations is as follows. Pension plans Retiree welfare plans As at December 31, 2017 2016 2017 2016 U.S. plans 9.5 9.2 9.8 9.1 Canadian plans 12.8 12.7 14.2 14.2 (l) Cash flows – contributions Total cash payments for all employee future benefits, comprised of cash contributed by the Company to funded defined benefit pension and retiree welfare plans, cash payments directly to beneficiaries in respect of unfunded pension and retiree welfare plans, and cash contributed to defined contribution pension plans, were as follows. Pension plans Retiree welfare plans For the years ended December 31, 2017 2016 2017 2016 Defined benefit plans $ 85 $ 106 $ 12 $ – Defined contribution plans 75 69 – – Total $ 160 $ 175 $ 12 $ – The Company’s best estimate of expected cash payments for employee future benefits for the year ending December 31, 2018 is $101 for defined benefit pension plans, $77 for defined contribution pension plans and $9 for retiree welfare plans. |
Interests in Structured Entitie
Interests in Structured Entities | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Interests in Structured Entities | Note 17 Interests in Structured Entities The Company is involved with both consolidated and unconsolidated structured entities (“SEs”) which are established to generate investment returns and/or fee income. The Company is also involved with SEs that are used to facilitate financing for the Company. These entities may have some or all of the following features: control is not readily identified based on voting rights; restricted activities designed to achieve a narrow objective; high amount of leverage; and/or highly structured capital. The Company only discloses its involvement in significant consolidated and unconsolidated SEs. In assessing the significance, the Company considers the nature of its involvement with the SE, including whether it is sponsored by the Company (i.e. initially organized and managed by the Company). Other factors considered include the Company’s investment in the SE as compared to total investments, its returns from the SE as compared to total net investment income, the SE’s size as compared to total funds under management, and its exposure to any other risks from its involvement with the SE. The Company does not provide financial or other support to its SEs, when it does not have a contractual obligation to do so. (a) Consolidated SEs Investment SEs The Company acts as an investment manager of timberlands and timber companies. The Company’s general fund and segregated funds invest in many of these companies. The Company has control over one timberland company which it manages, Hancock Victoria Plantations Holdings PTY Limited (“HVPH”). HVPH is a SE primarily because the Company’s employees exercise voting rights over it on behalf of other investors. As at December 31, 2017, the Company’s consolidated timber assets relating to HVPH were $884 (2016 – $920). The Company does not provide guarantees to other parties against the risk of loss from HVPH. Financing SEs The Company securitizes certain insured and variable rate commercial and residential mortgages and HELOC. This activity is facilitated by consolidated entities that are SEs because their operations are limited to issuing and servicing the Company’s capital. Further information regarding the Company’s mortgage securitization program is included in note 4. (b) Unconsolidated SEs Investment SEs The following table presents the Company’s investment and maximum exposure to loss from significant unconsolidated investment SEs, some of which are sponsored by the Company. The Company does not provide guarantees to other parties against the risk of loss from these SEs. Company’s investment (1) Company’s maximum exposure to loss (2) As at December 31, 2017 2016 2017 2016 Leveraged leases (3) $ 3,273 $ 3,369 $ 3,273 $ 3,369 Timberland companies (4) 736 736 786 749 Real estate companies (5) 361 327 361 327 Total $ 4,370 $ 4,432 $ 4,420 $ 4,445 (1) The Company’s investments in these unconsolidated SEs are included in invested assets and the Company’s returns from them are included in net investment income and AOCI. (2) The Company’s maximum exposure to loss from each SE is limited to amounts invested in each, plus unfunded capital commitments, if any. The Company’s investment commitments are disclosed in note 18. The maximum loss is expected to occur only upon the entity’s bankruptcy/liquidation, or as a result of a natural disaster in the case of the timber companies. (3) These entities are statutory business trusts which use capital provided by the Company and senior debt provided by other parties to finance the acquisition of assets. These assets are leased to third-party lessees under long-term leases. The Company owns equity capital in these business trusts. The Company does not consolidate any of the trusts that are party to the lease arrangements because the Company does not have decision-making power over them. (4) These entities own and operate timberlands. The Company invests in their equity and debt. The Company’s returns include investment income, investment advisory fees, forestry management fees and performance advisory fees. The Company does not control these entities because it either does not have the power to govern their financial and operating policies or does not have significant variable returns from them, or both. (5) These entities, which include the Manulife U.S. REIT, own and manage commercial real estate. The Company invests in their equity. The Company’s returns include investment income, investment management fees, property management fees, acquisition/disposition fees, and leasing fees. The Company does not control these entities because it either does not have the power to govern their financial and operating policies or does not have significant variable returns from them, or both. Financing SEs The following table presents the Company’s interests and maximum exposure to loss from significant unconsolidated financing SEs. Company’s interests (1) As at December 31, 2017 2016 Manulife Finance (Delaware), L.P. (2) $ 835 $ 876 Manulife Financial Capital Trust II (3) 1,000 1,000 Total $ 1,835 $ 1,876 (1) The Company’s interests include amounts borrowed from the SEs and the Company’s investment in their subordinated capital, and foreign currency and interest swaps with them, if any. (2) This entity is a wholly-owned partnership used to facilitate the Company’s financing. Refer to notes 12 and 18. (3) This entity is an open-ended trust that is used to facilitate the Company’s financing. Refer to note 12. (i) Other invested assets The Company has investment relationships with a variety of other entities, which result from its direct investment in their debt and/or equity and which have been assessed for control. These other entities’ investments include, but are not limited to investments in power and infrastructure, oil and gas, private equity, real estate and agriculture, organized as limited partnerships and limited liability companies. Most of these other entities are not sponsored by the Company. The Company’s involvement with these other entities is not individually significant. As such, the Company neither provides summary financial data for these entities nor individually assesses whether they are SEs. The Company’s maximum exposure to losses because of its involvement with these other entities is limited to its investment in them and amounts committed to be invested but not yet funded. The Company records its income from these entities in net investment income and AOCI. The Company does not provide guarantees to other parties against the risk of loss from these other entities. (ii) Interest in securitized assets The Company invests in mortgage/asset-backed securities issued by securitization vehicles sponsored by other parties, including private issuers and government sponsored issuers, to generate investment income. The Company does not own a controlling financial interest in any of the issuers. These securitization vehicles are SEs based on their narrow scope of activities and highly leveraged capital structures. Investments in mortgage/asset-backed securities are reported on the Consolidated Statements of Financial Position as debt securities and private placements, and their fair value and carrying value are disclosed in note 4. The Company’s maximum loss from these investments is limited to amounts invested. Commercial mortgage-backed securities (“CMBS”) are secured by commercial mortgages and residential mortgage-backed securities (“RMBS”) are secured by residential mortgages. Asset-backed securities (“ABS”) may be secured by various underlying assets including credit card receivables, automobile loans and aviation leases. The mortgage/asset-backed securities that the Company invests in primarily originate in North America. The following table presents investments in securitized holdings by the type and asset quality. 2017 2016 As at December 31, CMBS RMBS ABS Total Total AAA $ 1,390 $ 45 $ 1,068 $ 2,503 $ 2,269 AA – – 401 401 393 A 16 – 488 504 592 BBB – – 142 142 221 BB and below 12 – 14 26 38 Total company exposure $ 1,418 $ 45 $ 2,113 $ 3,576 $ 3,513 (iii) Mutual funds The Company sponsors and may invest in a range of public mutual funds with a broad range of investment styles. As sponsor, the Company organizes mutual funds that implement investment strategies on behalf of current and future investors. The Company earns fees which are at market rates for providing advisory and administrative services to these mutual funds. Generally, the Company does not control its sponsored mutual funds because either the Company does not have power to govern their financial and operating policies, or its returns in the form of fees and ownership interests are not significant, or both. Certain mutual funds are SEs because their decision-making rights are not vested in voting equity interests and their investors are provided with redemption rights. The Company’s relationships with these mutual funds are not individually significant. As such, the Company neither provides summary financial data for these mutual funds nor individually assesses whether they are SEs. The Company’s interest in mutual funds is limited to its investment and fees earned, if any. The Company’s investments in mutual funds are recorded as part of its investment in public equities within the Consolidated Statements of Financial Position. For information regarding the Company’s invested assets, refer to note 4. The Company does not provide guarantees to other parties against the risk of loss from these mutual funds. As sponsor, the Company’s investment in startup capital of mutual funds as at December 31, 2017 was $1,918 (2016 – $1,903). The Company’s retail mutual fund assets under management as at December 31, 2017 were $195,472 (2016 – $169,919). |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Commitments and Contingencies | Note 18 Commitments and Contingencies (a) Legal proceedings The Company is regularly involved in legal actions, both as a defendant and as a plaintiff. The legal actions where the Company is a party ordinarily relate to its activities as a provider of insurance protection or wealth management products, reinsurance, or its capacity as an investment adviser, employer, or taxpayer. Other life insurers and asset managers, operating in the jurisdictions in which the Company does business, have been subject to a wide variety of other types of actions, some of which resulted in substantial judgments or settlements against the defendants; it is possible that the Company may become involved in similar actions in the future. In addition, government and regulatory bodies in Canada, the United States, Asia and other jurisdictions where the Company conducts business regularly make inquiries and, from time to time, require the production of information or conduct examinations concerning the Company’s compliance with, among other things, insurance laws, securities laws, and laws governing the activities of broker-dealers. A class action against John Hancock Life Insurance Company (U.S.A.) (“JHUSA”) is pending in the U.S. District Court for the Southern District of New York in which claims are made that JHUSA breached, and continues to breach, the contractual terms of certain universal life policies issued between approximately 1990 and 2006 by including impermissible charges in its cost of insurance (“COI”) calculations. The Company believes that its COI calculations have been, and continue to be, in accordance with the terms of the policies and intends to vigorously defend this action. Briefing on class certification is scheduled to be completed in late April. It is premature to attempt to predict any outcome or range of outcomes for this matter. A similar class action based on the same policy language in dispute in the case pending in New York had been pending in California. The parties have agreed to settle all claims alleged in the California action and are preparing final documents for approval by the supervising court; the financial terms of the settlement are not expected to be material to the Company. (b) Investment commitments In the normal course of business, various investment commitments are outstanding which are not reflected in the Consolidated Financial Statements. There were $8,235 (2016 – $7,505) of outstanding investment commitments as at December 31, 2017, of which $682 (2016 – $268) mature in 30 days, $2,177 (2016 – $2,665) mature in 31 to 365 days and $5,376 (2016 – $4,572) mature after one year. (c) Letters of credit In the normal course of business, third-party relationship banks issue letters of credit on the Company’s behalf. The Company’s businesses utilize letters of credit for which third parties are the beneficiaries, as well as for affiliate reinsurance transactions between its subsidiaries. As at December 31, 2017, letters of credit for which third parties are beneficiary, in the amount of $77 (2016 – $83), were outstanding. (d) Guarantees (i) Guarantees regarding Manulife Finance (Delaware), L.P. (“MFLP”) MFC has guaranteed the payment of amounts on the $650 subordinated debentures due on December 15, 2041 issued by MFLP, a wholly-owned unconsolidated partnership. (ii) Guarantees regarding The Manufacturers Life Insurance Company On January 29, 2007, MFC provided a subordinated guarantee, as amended and restated on January 13, 2017, of Class A Shares and Class B Shares of MLI and any other class of preferred shares that rank in parity with Class A Shares or Class B Shares of MLI. For the following subordinated debentures issued by MLI, MFC has provided a subordinated guarantee on the day of issuance: $200 issued on February 25, 2013; $250 issued on November 29, 2013; $500 issued on February 21, 2014; $500 issued on December 1, 2014; $750 issued on March 10, 2015; $350 issued on June 1, 2015; and $1,000 issued on November 20, 2015. The following table sets forth certain condensed consolidated financial information for MFC and MFLP. Condensed Consolidated Statements of Income Information For the year ended December 31, 2017 MFC MLI (1) Other Consolidating Total MFLP Total revenue $ 182 $ 58,445 $ 270 $ (574) $ 58,323 $ 29 Net income (loss) attributed to shareholders 2,104 2,467 (257 ) (2,210) 2,104 6 For the year ended December 31, 2016 MFC MLI (1) Other Consolidating Total MFLP Total revenue $ 518 $ 53,219 $ 377 $ (777 ) $ 53,337 $ 44 Net income (loss) attributed to shareholders 2,929 2,916 (359 ) (2,557 ) 2,929 (1 ) (1) During 2017, MLI acquired John Hancock Reassurance Company Ltd. (“JHRECO”) from MFC. MLI has restated its historical IFRS financial statements to reflect the combined accounts of MLI and JHRECO on a retroactive basis. Condensed Consolidated Statements of Financial Position As at December 31, 2017 MFC MLI (1) Other Consolidating Total MFLP Invested assets $ 21 $ 334,191 $ 10 $ – $ 334,222 $ 5 Total other assets 48,688 71,180 4 (48,868 ) 71,004 1,033 Segregated funds net assets – 324,307 – – 324,307 – Insurance contract liabilities – 304,605 – – 304,605 – Investment contract liabilities – 3,126 – – 3,126 – Segregated funds net liabilities – 324,307 – – 324,307 – Total other liabilities 7,696 48,145 – (509 ) 55,332 831 As at December 31, 2016 MFC MLI (1) Other Consolidating Total MFLP Invested assets $ 161 $ 321,698 $ 10 $ – $ 321,869 $ 6 Total other assets 48,073 83,607 4 (48,049 ) 83,635 1,085 Segregated funds net assets – 315,177 – – 315,177 – Insurance contract liabilities – 297,505 – – 297,505 – Investment contract liabilities – 3,275 – – 3,275 – Segregated funds net liabilities – 315,177 – – 315,177 – Total other liabilities 6,402 55,808 – (309 ) 61,901 882 (1) During 2017, MLI acquired John Hancock Reassurance Company Ltd. (“JHRECO”) from MFC. MLI has restated its historical IFRS financial statements to reflect the combined accounts of MLI and JHRECO on a retroactive basis. (iii) Guarantees regarding John Hancock Life Insurance Company (U.S.A.) (“JHUSA”) Details of guarantees regarding certain securities issued or to be issued by JHUSA are outlined in note 23. (e) Pledged assets In the normal course of business, the Company pledges its assets in respect of liabilities incurred, strictly for providing collateral to the counterparty. In the event of the Company’s default, the counterparty is entitled to apply the collateral to settle the liability. The pledged assets are returned to the Company if the underlying transaction is terminated or, in the case of derivatives, if there is a decrease in the net exposure due to market value changes. The amounts pledged were as follows. 2017 2016 As at December 31, Debt securities Other Debt securities Other In respect of: Derivatives $ 3,189 $ 44 $ 4,678 $ 99 Regulatory requirements 398 86 409 78 Real estate – 2 – 22 Repurchase agreements 228 – 255 – Non-registered – 412 – 464 Other 3 271 3 174 Total $ 3,818 $ 815 $ 5,345 $ 837 (f) Lease obligations The Company has a number of operating lease obligations, primarily for the use of office space. The aggregate future minimum lease payments under non-cancelable (g) Participating business In some territories where the Company maintains participating accounts, there are regulatory restrictions on the amounts of profit that can be transferred to shareholders. Where applicable, these restrictions generally take the form of a fixed percentage of policyholder dividends. For participating businesses operating as separate “closed blocks”, transfers are governed by the terms of MLI’s and John Hancock Mutual Life Insurance Company’s plans of demutualization. (h) Fixed surplus notes A third party contractually provides standby financing arrangements for the Company’s U.S. operations under which, in certain circumstances, funds may be provided in exchange for the issuance of fixed surplus notes. As at December 31, 2017, the Company had no fixed surplus notes outstanding. |
Segmented Information
Segmented Information | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Segmented Information | Note 19 Segmented Information The Company’s reporting segments are Asia, Canadian, U.S. and Corporate and Other Divisions. Each division manages profit and loss, develops products and services, defines distribution strategies based on the profile and needs of its business and market in which it operates. The significant product and service offerings of each division are as follows: Protection (Asia, Canadian and U.S. Divisions). Wealth and Asset Management (Asia, Canadian and U.S. Divisions). Other Wealth (Asia, Canadian and U.S. Divisions). non-guaranteed, Corporate and Other Segment. run-off Certain allocation methodologies are employed in the preparation of segmented financial information. Indirect expenses are allocated to business segments using allocation formulas applied on a consistent basis, while capital is apportioned to the Company’s business segments using a risk based methodology. The impact of changes in actuarial methods and assumptions (refer to note 8) reported in the Consolidated Statements of Income, is included in the Corporate and Other segment. Effective January 1, 2017, the operations of Manulife Asset Management are being reflected in the respective Divisional results. These operations were reported in the Corporate and Other division for 2016. By segment As at and for the year ended December 31, 2017 Asia Division Canadian U.S. Division Corporate Total Revenue Premium income Life and health insurance $ 13,145 $ 4,322 $ 6,778 $ 110 $ 24,355 Annuities and pensions 2,568 443 844 – 3,855 Net premium income 15,713 4,765 7,622 110 28,210 Net investment income 4,080 4,573 10,649 65 19,367 Other revenue 1,739 3,517 6,166 (676 ) 10,746 Total revenue 21,532 12,855 24,437 (501 ) 58,323 Contract benefits and expenses Life and health insurance 11,961 5,644 16,464 461 34,530 Annuities and pensions 2,051 1,813 907 – 4,771 Net benefits and claims 14,012 7,457 17,371 461 39,301 Interest expense 164 307 37 631 1,139 Other expenses 4,937 4,435 6,050 (40 ) 15,382 Total contract benefits and expenses 19,113 12,199 23,458 1,052 55,822 Income (loss) before income taxes 2,419 656 979 (1,553 ) 2,501 Income tax recovery (expense) (403 ) 95 (1,275 ) 1,344 (239 ) Net income (loss) 2,016 751 (296 ) (209 ) 2,262 Less net income (loss) attributed to: Non-controlling 197 – – (3 ) 194 Participating policyholders (30 ) (6 ) – – (36 ) Net income (loss) attributed to shareholders $ 1,849 $ 757 $ (296 ) $ (206 ) $ 2,104 Total assets $ 105,233 $ 220,755 $ 383,528 $ 20,017 $ 729,533 As at and for the year ended December 31, 2016 Asia Division Canadian U.S. Division Corporate Total Revenue Premium income Life and health insurance $ 12,111 $ 4,366 $ 6,703 $ 88 $ 23,268 Annuities and pensions 3,474 606 284 – 4,364 Net premium income 15,585 4,972 6,987 88 27,632 Net investment income 2,143 4,255 7,980 146 14,524 Other revenue 1,566 3,480 5,591 544 11,181 Total revenue 19,294 12,707 20,558 778 53,337 Contract benefits and expenses Life and health insurance 10,435 5,207 10,829 806 27,277 Annuities and pensions 2,913 1,179 2,765 – 6,857 Net benefits and claims 13,348 6,386 13,594 806 34,134 Interest expense 146 305 45 517 1,013 Other expenses 4,241 4,279 5,619 722 14,861 Total contract benefits and expenses 17,735 10,970 19,258 2,045 50,008 Income (loss) before income taxes 1,559 1,737 1,300 (1,267 ) 3,329 Income tax recovery (expense) (243 ) (250 ) (166 ) 463 (196 ) Net income (loss) 1,316 1,487 1,134 (804 ) 3,133 Less net income (loss) attributed to: Non-controlling 115 – – 28 143 Participating policyholders 60 1 – – 61 Net income (loss) attributed to shareholders $ 1,141 $ 1,486 $ 1,134 $ (832 ) $ 2,929 Total assets $ 92,843 $ 214,820 $ 386,619 $ 26,399 $ 720,681 The results of the Company’s business segments differ from geographic segment primarily due to the allocation of Company’s Corporate and Other division into the geographic segments to which its businesses relate. By geographic location As at and for the year ended December 31, 2017 Asia Canada U.S. Other Total Revenue Premium income Life and health insurance $ 13,215 $ 3,894 $ 6,780 $ 466 $ 24,355 Annuities and pensions 2,568 443 844 – 3,855 Net premium income 15,783 4,337 7,624 466 28,210 Net investment income 4,258 4,642 10,407 60 19,367 Other revenue 1,632 3,187 5,911 16 10,746 Total revenue $ 21,673 $ 12,166 $ 23,942 $ 542 $ 58,323 As at and for the year ended December 31, 2016 Asia Canada U.S. Other Total Revenue Premium income Life and health insurance $ 12,184 $ 3,909 $ 6,705 $ 470 $ 23,268 Annuities and pensions 3,474 606 284 – 4,364 Net premium income 15,658 4,515 6,989 470 27,632 Net investment income 2,368 4,096 7,880 180 14,524 Other revenue 1,608 3,443 6,105 25 11,181 Total revenue $ 19,634 $ 12,054 $ 20,974 $ 675 $ 53,337 |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Related Parties | Note 20 Related Parties Related party transactions were made in the normal course of business and at the terms that would exist in arm’s-length (a) Transactions with certain related parties Transactions with MFLP, a wholly owned unconsolidated partnership, and MFCT, a wholly owned unconsolidated trust, are described in notes 11, 12 and 18. (b) Compensation of key management personnel The Company’s key management personnel are those personnel who have the authority and responsibility for planning, directing and controlling the activities of the Company. Directors (both executive and non-executive) For the years ended December 31, 2017 2016 Short-term employee benefits $ 44 $ 33 Post-employment benefits 3 3 Share-based payments 43 44 Termination benefits 6 4 Other long-term benefits 2 3 Total $ 98 $ 87 |
Subsidiaries
Subsidiaries | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Subsidiaries | Note 21 Subsidiaries The following is a list of Manulife’s directly and indirectly held major operating subsidiaries. As at December 31, 2017 (100% owned unless otherwise noted in brackets beside company name) Address Description The Manufacturers Life Insurance Company Toronto, Canada Leading Canadian-based financial services company that offers a diverse range of financial protection products and wealth management services Manulife Holdings (Alberta) Limited Calgary, Canada Holding company John Hancock Financial Corporation Wilmington, Delaware, U.S.A. Holding company The Manufacturers Investment Corporation Michigan, U.S.A. Holding company John Hancock Reassurance Company Ltd. U.S.A. Michigan, U.S.A. Captive insurance subsidiary that provides life, annuity and long-term care reinsurance to affiliates John Hancock Life Insurance Company (U.S.A.) Michigan, U.S.A. U.S. life insurance company licensed in all states, except New York John Hancock Subsidiaries LLC Wilmington, Delaware, U.S.A. Holding company John Hancock Financial Network, Inc. Boston, Massachusetts, U.S.A. Financial services distribution organization John Hancock Advisers, LLC Boston, Massachusetts, U.S.A. Investment advisor John Hancock Funds, LLC Boston, Massachusetts, U.S.A. Broker-dealer Manulife Asset Management (US) LLC Wilmington, Delaware, U.S.A. Asset management company Hancock Natural Resource Group, Inc. Boston, Massachusetts, U.S.A. Manager of globally diversified timberland and agricultural portfolios John Hancock Life Insurance Company of New York New York, U.S.A. U.S. life insurance company licensed in New York John Hancock Investment Management Services, LLC Boston, Massachusetts, U.S.A. Investment advisor John Hancock Life & Health Insurance Company Boston, Massachusetts, U.S.A. U.S. life insurance company licensed in all states John Hancock Distributors LLC Wilmington, Delaware, U.S.A. Broker-dealer John Hancock Insurance Agency, Inc. Wilmington, Delaware, U.S.A. Insurance agency Manulife Reinsurance Limited Hamilton, Bermuda Provides life and financial reinsurance to affiliates Manulife Reinsurance (Bermuda) Limited Hamilton, Bermuda Provides life and annuity reinsurance to affiliates Manulife Bank of Canada Waterloo, Canada Provides integrated banking products and service options not available from an insurance company Manulife Asset Management Holdings (Canada) Inc. Toronto, Canada Holding company Manulife Asset Management Limited Toronto, Canada Provides investment counseling, portfolio and mutual fund management in Canada First North American Insurance Company Toronto, Canada Property and casualty insurance company NAL Resources Management Limited Calgary, Canada Management company for oil and gas properties Manulife Resources Limited Calgary, Canada Holds oil and gas properties Manulife Property Limited Partnership Toronto, Canada Holds oil and gas royalties Manulife Property Limited Partnership II Toronto, Canada Holds oil and gas royalties and foreign bonds and equities Manulife Western Holdings Limited Partnership Calgary, Canada Holds oil and gas properties Manulife Securities Investment Services Inc. Oakville, Canada Mutual fund dealer for Canadian operations Manulife Holdings (Bermuda) Limited Hamilton, Bermuda Holding company Manufacturers P & C Limited St. Michael, Barbados Provides property and casualty reinsurance Manulife Financial Asia Limited Hong Kong, China Holding company Manulife (Cambodia) PLC Phnom Penh, Cambodia Life insurance company Manufacturers Life Reinsurance Limited St. Michael, Barbados Provides life and annuity reinsurance to affiliates Manulife (Vietnam) Limited Ho Chi Minh City, Vietnam Life insurance company Manulife Asset Management (Vietnam) Company Limited Ho Chi Minh City, Vietnam Fund management company Manulife International Holdings Limited Hong Kong, China Holding company Manulife (International) Limited Hong Kong, China Life insurance company Manulife-Sinochem Life Insurance Co. Ltd. (51%) Shanghai, China Life insurance company Manulife Asset Management International Holdings Limited Hong Kong, China Holding company Manulife Asset Management (Hong Kong) Limited Hong Kong, China Investment management and advisory company marketing mutual funds Manulife Asset Management (Taiwan) Co., Ltd. Taipei, Taiwan Asset management company Manulife Life Insurance Company Tokyo, Japan Life insurance company Manulife Asset Management (Japan) Limited Tokyo, Japan Investment management and advisory company and mutual fund business Manulife Insurance (Thailand) Public Company Limited (92.1%) (1) Bangkok, Thailand Life insurance company Manulife Asset Management (Thailand) Company Limited (95.3%) (1) Bangkok, Thailand Investment management company Manulife Holdings Berhad (59.5%) Kuala Lumpur, Malaysia Holding company Manulife Insurance Berhad (59.5%) Kuala Lumpur, Malaysia Life insurance company Manulife Asset Management Services Berhad (59.5%) Kuala Lumpur, Malaysia Asset management company Manulife (Singapore) Pte. Ltd. Singapore Life insurance company Manulife Asset Management (Singapore) Pte. Ltd. Singapore Asset management company The Manufacturers Life Insurance Co. (Phils.), Inc. Makati City, Philippines Life insurance company Manulife Chinabank Life Assurance Corporation (60%) Makati City, Philippines Life insurance company PT Asuransi Jiwa Manulife Indonesia Jakarta, Indonesia Life insurance company PT Manulife Aset Manajemen Indonesia Jakarta, Indonesia Investment management company marketing mutual funds and discretionary funds Manulife Asset Management (Europe) Limited London, England Investment management company for Manulife Financial’s international funds Manulife Assurance Company of Canada Toronto, Canada Life insurance company EIS Services (Bermuda) Limited Hamilton, Bermuda Investment holding company Berkshire Insurance Services Inc. Toronto, Canada Investment holding company JH Investments (Delaware) LLC Boston, Massachusetts, U.S.A. Investment holding company Manulife Securities Incorporated Oakville, Canada Investment dealer Manulife Asset Management (North America) Limited Toronto, Canada Investment advisor Regional Power Inc. Mississauga, Canada Developer and operator of hydro-electric power projects (1) MFC voting rights percentages are the same as the ownership percentages except for Manulife Insurance (Thailand) Public Company Limited and Manulife Asset Management (Thailand) Company Limited where MFC’s voting rights are 98.1% and 98.9%, respectively. |
Segregated Funds
Segregated Funds | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Segregated Funds | Note 22 Segregated Funds The Company manages a number of segregated funds on behalf of policyholders. Policyholders are provided with the opportunity to invest in different categories of segregated funds that respectively hold a range of underlying investments. The Company retains legal title to the underlying investments; however, returns from these investments belong to the policyholders. Accordingly, the Company does not bear the risk associated with these assets outside of guarantees offered on certain variable life and annuity products. The “Risk Management” section of the Company’s 2017 MD&A provides information regarding the variable annuity and segregated fund guarantees. The composition of net assets by categories of segregated funds was within the following ranges for the years ended December 31, 2017 and 2016. Ranges in per cent Type of fund 2017 2016 Money market funds 2% to 3% 2% to 3% Fixed income funds 14% to 15% 14% to 15% Balanced funds 22% to 29% 22% to 24% Equity funds 55% to 60% 59% to 61% Money market funds consist of investments that have a term to maturity of less than one year. Fixed income funds primarily consist of investments in fixed grade income securities and may contain smaller investments in diversified equities or high-yield bonds. Relative to fixed income funds, balanced funds consist of fixed income securities and a larger equity investment component. The types of equity funds available to policyholders range from low volatility equity funds to aggressive equity funds. Equity funds invest in a varying mix of Canadian, U.S. and global equities. The underlying investments of the segregated funds consist of both individual securities and mutual funds (collectively “net assets”), some of which may be structured entities. The carrying value and change in segregated funds net assets are as follows. Segregated funds net assets As at December 31, 2017 2016 Investments at market value Cash and short-term securities $ 4,756 $ 4,524 Debt securities 15,472 15,651 Equities 12,624 12,458 Mutual funds 288,007 278,966 Other investments 4,514 4,552 Accrued investment income 201 201 Other assets and liabilities, net (766 ) (644 ) Total segregated funds net assets $ 324,808 $ 315,708 Composition of segregated funds net assets Held by policyholders $ 324,307 $ 315,177 Held by the Company 501 531 Total segregated funds net assets $ 324,808 $ 315,708 Fair value related information of segregated funds is disclosed in note 4(g). Changes in segregated funds net assets For the years ended December 31, 2017 2016 Net policyholder cash flow Deposits from policyholders $ 34,776 $ 33,130 Net transfers to general fund (1,734 ) (878 ) Payments to policyholders (45,970 ) (39,731 ) (12,928 ) (7,479 ) Investment related Interest and dividends 16,930 15,736 Net realized and unrealized investment gains 24,384 4,097 41,314 19,833 Other Management and administration fees (4,496 ) (4,386 ) Impact of changes in foreign exchange rates (14,790 ) (6,007 ) (19,286 ) (10,393 ) Net additions 9,100 1,961 Segregated funds net assets, beginning of year 315,708 313,747 Segregated funds net assets, end of year $ 324,808 $ 315,708 Segregated funds assets may be exposed to a variety of financial and other risks. These risks are primarily mitigated by investment guidelines that are actively monitored by professional and experienced portfolio advisors. The Company is not exposed to these risks beyond the liabilities related to the guarantees associated with certain variable life and annuity products. Accordingly, the Company’s exposure to loss from segregated fund products is limited to the value of these guarantees. These guarantee liabilities are recorded within the Company’s insurance contract liabilities. Assets supporting these guarantees are recognized in invested assets according to their investment type. |
Information Provided in Connect
Information Provided in Connection with Investments in Deferred Annuity Contracts andSignatureNotes Issued or Assumed by John Hancock Life Insurance Company (U.S.A.) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Information Provided in Connection with Investments in Deferred Annuity Contracts andSignatureNotes Issued or Assumed by John Hancock Life Insurance Company (U.S.A.) | Note 23 Information Provided in Connection with Investments in Deferred Annuity Contracts and Signature Notes Issued or Assumed by John Hancock Life Insurance Company (U.S.A.) The following condensed consolidated financial information, presented in accordance with IFRS, and the related disclosure have been included in these Consolidated Financial Statements with respect to JHUSA in compliance with Regulation S-X 12h-5 JHUSA maintains a book of deferred annuity contracts that feature a market value adjustment and are registered with the Commission. The deferred annuity contracts may contain variable investment options along with fixed investment period options, or may offer only fixed investment period options. The fixed investment period options enable the participant to invest fixed amounts of money for fixed terms at fixed interest rates, subject to a market value adjustment if the participant desires to terminate a fixed investment period before its maturity date. The annuity contract provides for the market value adjustment to keep the parties whole with respect to the fixed interest bargain for the entire fixed investment period. These fixed investment period options that contain a market value adjustment feature are referred to as “MVAs”. JHUSA may also sell medium-term notes to retail investors under its Signature Effective December 31, 2009, John Hancock Variable Life Insurance Company (the “Variable Company”) and John Hancock Life Insurance Company (the “Life Company”) merged with and into JHUSA. In connection with the mergers, JHUSA assumed the Variable Company’s rights and obligations with respect to the MVAs issued by the Variable Company and the Life Company’s rights and obligations with respect to the Signature MFC fully and unconditionally guaranteed the payment of JHUSA’s obligations under the MVAs and under the Signature Signature Signature Signature MFC’s guarantees of the Guaranteed Securities are unsecured obligations of MFC, and are subordinated in right of payment to the prior payment in full of all other obligations of MFC, except for other guarantees or obligations of MFC which by their terms are designated as ranking equally in right of payment with or subordinate to MFC’s guarantees of the Guaranteed Securities. The laws of the State of New York govern MFC’s guarantees of the Signature Signature MFC is a holding company. MFC’s assets primarily consist of investments in its subsidiaries. MFC’s cash flows primarily consist of dividends and interest payments from its operating subsidiaries, offset by expenses and shareholder dividends and MFC stock repurchases. As a holding company, MFC’s ability to meet its cash requirements, including, but not limited to, paying any amounts due under its guarantees, substantially depends upon dividends from its operating subsidiaries. These subsidiaries are subject to certain regulatory restrictions under laws in Canada, the United States and certain other countries, which may limit their ability to pay dividends or make contributions or loans to MFC. For example, some of MFC’s subsidiaries are subject to restrictions prescribed by the ICA on their ability to declare and pay dividends. The restrictions related to dividends imposed by the ICA are described in note 14. In the United States, insurance laws in Michigan, New York, and Massachusetts, the jurisdictions in which certain of MFC’s U.S. insurance company subsidiaries are domiciled, impose general limitations on the payment of dividends and other upstream distributions or loans by these insurance subsidiaries. These limitations are described in note 14. In Asia, the insurance laws of the jurisdictions in which MFC operates either provide for specific restrictions on the payment of dividends or other distributions or loans by subsidiaries or impose solvency or other financial tests, which could affect the ability of subsidiaries to pay dividends in certain circumstances. There can be no assurance that any current or future regulatory restrictions in Canada, the United States or Asia will not impair MFC’s ability to meet its cash requirements, including, but not limited to, paying any amounts due under its guarantee. The following condensed consolidated financial information, presented in accordance with IFRS, reflects the effects of the mergers and is provided in compliance with Regulation S-X 12h-5 Condensed Consolidated Statement of Financial Position As at December 31, 2017 MFC JHUSA Other Consolidation Consolidated Assets Invested assets $ 21 $ 108,144 $ 226,421 $ (364 ) $ 334,222 Investments in unconsolidated subsidiaries 48,374 6,509 14,999 (69,882 ) – Reinsurance assets – 49,927 8,281 (27,849 ) 30,359 Other assets 314 18,678 40,715 (19,062 ) 40,645 Segregated funds net assets – 176,139 149,812 (1,644 ) 324,307 Total assets $ 48,709 $ 359,397 $ 440,228 $ (118,801 ) $ 729,533 Liabilities and equity Insurance contract liabilities $ – $ 147,155 $ 185,884 $ (28,434 ) $ 304,605 Investment contract liabilities – 1,130 1,998 (2 ) 3,126 Other liabilities 297 19,399 41,394 (18,930 ) 42,160 Long-term debt 4,784 – 1 – 4,785 Capital instruments 2,615 584 5,188 – 8,387 Segregated funds net liabilities – 176,139 149,812 (1,644 ) 324,307 Shareholders’ equity 41,013 14,990 54,801 (69,791 ) 41,013 Participating policyholders’ equity – – 221 – 221 Non-controlling – – 929 – 929 Total liabilities and equity $ 48,709 $ 359,397 $ 440,228 $ (118,801 ) $ 729,533 Condensed Consolidated Statement of Financial Position As at December 31, 2016 MFC JHUSA Other Consolidation Consolidated Assets Invested assets $ 161 $ 109,063 $ 213,043 $ (398 ) $ 321,869 Investments in unconsolidated subsidiaries 47,758 6,457 17,504 (71,719 ) – Reinsurance assets – 51,537 10,069 (26,654 ) 34,952 Other assets 315 28,718 43,931 (24,281 ) 48,683 Segregated funds net assets – 174,917 142,400 (2,140 ) 315,177 Total assets $ 48,234 $ 370,692 $ 426,947 $ (125,192 ) $ 720,681 Liabilities and equity Insurance contract liabilities $ – $ 147,504 $ 177,524 $ (27,523 ) $ 297,505 Investment contract liabilities – 1,251 2,027 (3 ) 3,275 Other liabilities 252 28,892 43,994 (24,113 ) 49,025 Long-term debt 5,689 – 7 – 5,696 Capital instruments 461 627 6,092 – 7,180 Segregated funds net liabilities – 174,917 142,400 (2,140 ) 315,177 Shareholders’ equity 41,832 17,501 53,912 (71,413 ) 41,832 Participating policyholders’ equity – – 248 – 248 Non-controlling – – 743 – 743 Total liabilities and equity $ 48,234 $ 370,692 $ 426,947 $ (125,192 ) $ 720,681 Condensed Consolidated Statement of Income For the year ended December 31, 2017 MFC JHUSA Other Consolidation Consolidated Revenue Net premium income – 11,084 17,130 (4 ) 28,210 Net investment income (loss) 178 7,986 11,947 (744 ) 19,367 Net other revenue 4 2,874 10,912 (3,044 ) 10,746 Total revenue 182 21,944 39,989 (3,792 ) 58,323 Contract benefits and expenses Net benefits and claims – 20,803 19,179 (681 ) 39,301 Commissions, investment and general expenses 11 3,208 13,900 (2,097 ) 15,022 Other expenses 404 194 1,915 (1,014 ) 1,499 Total contract benefits and expenses 415 24,205 34,994 (3,792 ) 55,822 Income (loss) before income taxes (233 ) (2,261 ) 4,995 – 2,501 Income tax (expense) recovery 62 1,134 (1,435 ) – (239 ) Income (loss) after income taxes (171 ) (1,127 ) 3,560 – 2,262 Equity in net income (loss) of unconsolidated subsidiaries 2,275 628 (486 ) (2,417 ) – Net income (loss) $ 2,104 $ (499 ) $ 3,074 $ (2,417 ) $ 2,262 Net income (loss) attributed to: Non-controlling $ – $ – $ 194 $ – $ 194 Participating policyholders – (10 ) (36 ) 10 (36 ) Shareholders 2,104 (489 ) 2,916 (2,427 ) 2,104 $ 2,104 $ (499 ) $ 3,074 $ (2,417 ) $ 2,262 Condensed Consolidated Statement of Income For the year ended December 31, 2016 MFC JHUSA Other Consolidation Consolidated Revenue Net premium income – 5,021 22,611 – 27,632 Net investment income (loss) 475 6,191 9,092 (1,234 ) 14,524 Net other revenue 43 2,569 11,108 (2,539 ) 11,181 Total revenue 518 13,781 42,811 (3,773 ) 53,337 Contract benefits and expenses Net benefits and claims – 10,340 24,748 (954 ) 34,134 Commissions, investment and general expenses 11 3,272 13,016 (1,840 ) 14,459 Other expenses 259 59 2,076 (979 ) 1,415 Total contract benefits and expenses 270 13,671 39,840 (3,773 ) 50,008 Income (loss) before income taxes 248 110 2,971 – 3,329 Income tax (expense) recovery 28 251 (475 ) – (196 ) Income (loss) after income taxes 276 361 2,496 – 3,133 Equity in net income (loss) of unconsolidated subsidiaries 2,653 211 572 (3,436 ) – Net income (loss) $ 2,929 $ 572 $ 3,068 $ (3,436 ) $ 3,133 Net income (loss) attributed to: Non-controlling $ – $ – $ 143 $ – $ 143 Participating policyholders – (48 ) 61 48 61 Shareholders 2,929 620 2,864 (3,484 ) 2,929 $ 2,929 $ 572 $ 3,068 $ (3,436 ) $ 3,133 Consolidated Statement of Cash Flows For the year ended December 31, 2017 MFC (Guarantor) JHUSA (Issuer) Other subsidiaries Consolidation adjustments Consolidated MFC Operating activities Net income (loss) $ 2,104 $ (499 ) $ 3,074 $ (2,417 ) $ 2,262 Adjustments: Equity in net income of unconsolidated subsidiaries (2,275 ) (628 ) 486 2,417 – Increase (decrease) in insurance contract liabilities – 16,877 3,146 – 20,023 Increase (decrease) in investment contract liabilities – 55 118 – 173 (Increase) decrease in reinsurance assets – (1,890 ) 4,159 – 2,269 Amortization of (premium) discount on invested assets – 24 206 – 230 Other amortization 4 123 433 – 560 Net realized and unrealized (gains) losses and impairment on assets (7 ) (2,609 ) (4,572 ) – (7,188 ) Deferred income tax expense (recovery) (59 ) (2,239 ) 1,967 – (331 ) Stock option expense – (4 ) 19 – 15 Cash provided by (used in) operating activities before undernoted items (233 ) 9,210 9,036 – 18,013 Dividends from unconsolidated subsidiary 2,700 125 1,175 (4,000 ) – Changes in policy related and operating receivables and payables (45 ) (4,627 ) 4,450 – (222 ) Cash provided by (used in) operating activities 2,422 4,708 14,661 (4,000 ) 17,791 Investing activities Purchases and mortgage advances – (30,645 ) (56,579 ) – (87,224 ) Disposals and repayments – 26,952 43,768 – 70,720 Changes in investment broker net receivables and payables – 182 45 – 227 Investment in common shares of subsidiaries (2,473 ) – – 2,473 – Net cash decrease from sale and purchase of subsidiaries and businesses – – (10 ) – (10 ) Capital contribution to unconsolidated subsidiaries – (63 ) – 63 – Return of capital from unconsolidated subsidiaries – 11 – (11 ) – Notes receivable from affiliates – – 201 (201 ) – Notes receivable from parent – 368 24 (392 ) – Notes receivable from subsidiaries (16 ) (10 ) – 26 – Cash provided by (used in) investing activities (2,489 ) (3,205 ) (12,551 ) 1,958 (16,287 ) Financing activities Increase (decrease) in repurchase agreements and securities sold but not yet purchased – – (29 ) – (29 ) Redemption of long-term debt (600 ) – (7 ) – (607 ) Issue of capital instruments, net 2,209 – – – 2,209 Redemption of capital instruments – – (899 ) – (899 ) Secured borrowings from securitization transactions – – 741 – 741 Changes in deposits from Bank clients, net – – 261 – 261 Shareholders’ dividends paid in cash (1,780 ) – – – (1,780 ) Dividends paid to parent – (1,175 ) (2,825 ) 4,000 – Contributions from (distributions to) non-controlling – – (6 ) – (6 ) Common shares issued, net 124 – 2,473 (2,473 ) 124 Capital contributions by parent – – 63 (63 ) – Return of capital to parent – – (11 ) 11 – Notes payable to affiliates – (201 ) – 201 – Notes payable to parent – – 26 (26 ) – Notes payable to subsidiaries (24 ) – (368 ) 392 – Cash provided by (used in) financing activities (71 ) (1,376 ) (581 ) 2,042 14 Cash and short-term securities Increase (decrease) during the year (138 ) 127 1,529 – 1,518 Effect of foreign exchange rate changes on cash and short-term securities (2 ) (276 ) (380 ) – (658 ) Balance, beginning of year 161 3,787 10,290 – 14,238 Balance, end of year 21 3,638 11,439 – 15,098 Cash and short-term securities Beginning of year Gross cash and short-term securities 161 4,317 10,673 – 15,151 Net payments in transit, included in other liabilities – (530 ) (383 ) – (913 ) Net cash and short-term securities, beginning of year 161 3,787 10,290 – 14,238 End of year Gross cash and short-term securities 21 4,133 11,811 – 15,965 Net payments in transit, included in other liabilities – (495 ) (372 ) – (867 ) Net cash and short-term securities, end of year $ 21 $ 3,638 $ 11,439 $ – $ 15,098 Supplemental disclosures on cash flow information: Interest received $ 273 $ 4,391 $ 6,504 $ (572 ) $ 10,596 Interest paid 392 96 1,202 (572 ) 1,118 Income taxes paid 99 1,084 177 – 1,360 Consolidated Statement of Cash Flows For the year ended December 31, 2016 MFC (Guarantor) JHUSA (Issuer) Other subsidiaries Consolidation adjustments Consolidated MFC Operating activities Net income (loss) $ 2,929 $ 572 $ 3,068 $ (3,436 ) $ 3,133 Adjustments: Equity in net income of unconsolidated subsidiaries (2,653 ) (211 ) (572 ) 3,436 – Increase (decrease) in insurance contract liabilities – 5,225 12,789 – 18,014 Increase (decrease) in investment contract liabilities – 58 (58 ) – – (Increase) decrease in reinsurance assets – (1,444 ) 602 – (842 ) Amortization of (premium) discount on invested assets – (5 ) 83 – 78 Other amortization 2 284 407 – 693 Net realized and unrealized (gains) losses and impairment on assets (9 ) (917 ) (1,878 ) – (2,804 ) Deferred income tax expense (recovery) 3 391 (629 ) – (235 ) Stock option expense – (1 ) 20 – 19 Cash provided by (used in) operating activities before undernoted items 272 3,952 13,832 – 18,056 Dividends from unconsolidated subsidiary 1,950 111 – (2,061 ) – Changes in policy related and operating receivables and payables 171 (1,291 ) 81 – (1,039 ) Cash provided by (used in) operating activities 2,393 2,772 13,913 (2,061 ) 17,017 Investing activities Purchases and mortgage advances (32 ) (34,656 ) (69,371 ) – (104,059 ) Disposals and repayments – 32,343 49,658 – 82,001 Changes in investment broker net receivables and payables – (35 ) (151 ) – (186 ) Investment in common shares of subsidiaries (5,706 ) – – 5,706 – Net cash decrease from sale and purchase of subsidiaries and businesses – – (495 ) – (495 ) Capital contribution to unconsolidated subsidiaries – (350 ) – 350 – Return of capital from unconsolidated subsidiaries – 1 – (1 ) – Notes receivable from affiliates – – 544 (544 ) – Notes receivable from parent – – 344 (344 ) – Notes receivable from subsidiaries (6 ) (40 ) – 46 – Cash provided by (used in) investing activities (5,744 ) (2,737 ) (19,471 ) 5,213 (22,739 ) Financing activities (Decrease) increase in repurchase agreements and securities sold but not yet purchased – – (23 ) – (23 ) Issue of long-term debt, net 3,899 – – – 3,899 Redemption of long-term debt – – (158 ) – (158 ) Issue of capital instruments, net 479 – – – 479 Redemption of capital instruments – – (949 ) – (949 ) Secured borrowings from securitization transactions – – 847 – 847 Changes in deposits from Bank clients, net – – (157 ) – (157 ) Shareholders’ dividends paid in cash (1,593 ) – – – (1,593 ) Contributions from (distributions to) non-controlling – – 10 – 10 Common shares issued, net 66 – 5,706 (5,706 ) 66 Preferred shares issued, net 884 – – – 884 Dividends paid to parent – – (2,061 ) 2,061 – Capital contributions by parent – – 350 (350 ) – Return of capital to parent – – (1 ) 1 – Notes payable to affiliates – (544 ) – 544 – Notes payable to parent – – 46 (46 ) – Notes payable to subsidiaries (344 ) – – 344 – Cash provided by (used in) financing activities 3,391 (544 ) 3,610 (3,152 ) 3,305 Cash and short-term securities Increase (decrease) during the year 40 (509 ) (1,948 ) – (2,417 ) Effect of foreign exchange rate changes on cash and short-term securities (1 ) (149 ) (197 ) – (347 ) Balance, beginning of year 122 4,445 12,435 – 17,002 Balance, end of year 161 3,787 10,290 – 14,238 Cash and short-term securities Beginning of year Gross cash and short-term securities 122 4,938 12,825 – 17,885 Net payments in transit, included in other liabilities – (493 ) (390 ) – (883 ) Net cash and short-term securities, beginning of year 122 4,445 12,435 – 17,002 End of year Gross cash and short-term securities 161 4,317 10,673 – 15,151 Net payments in transit, included in other liabilities – (530 ) (383 ) – (913 ) Net cash and short-term securities, end of year $ 161 $ 3,787 $ 10,290 $ – $ 14,238 Supplemental disclosures on cash flow information: Interest received $ – $ 4,523 $ 6,795 $ (768 ) $ 10,550 Interest paid 210 144 1,397 (768 ) 983 Income taxes paid 35 68 738 – 841 |
Comparatives
Comparatives | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Comparatives | Note 24 Comparatives Certain comparative amounts have been reclassified to conform to the current year’s presentation. |
IFRS 7 Disclosures
IFRS 7 Disclosures | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
IFRS 7 Disclosures | IFRS 7 Disclosures The shaded text and tables in the following sections of this MD&A represent our disclosure on market and liquidity risk in accordance with IFRS 7, “Financial Instruments – Disclosures,” and include a discussion on how we measure risk and our objectives, policies and methodologies for managing these risks. Therefore, the following shaded text and tables represent an integral part of our audited annual Consolidated Financial Statements for the years ended December 31, 2017 and December 31, 2016. The fact that certain text and tables are considered an integral part of the Consolidated Financial Statements does not imply that the disclosures are of any greater importance than the sections not part of the disclosure. Accordingly, the “Risk Management” disclosure should be read in its entirety. Market Risk Market risk is the risk of loss resulting from market price volatility, interest rate change, credit and swap spread changes, and from adverse foreign currency rate movements. Market price volatility primarily relates to changes in prices of publicly traded equities and alternative long-duration assets. Market Risk Management Strategy Market risk is governed by the Global Asset Liability Committee which oversees the overall market and liquidity risk program. Our overall strategy to manage our market risks incorporates several component strategies, each targeted to manage one or more of the market risks arising from our businesses. At an enterprise level, these strategies are designed to manage our aggregate exposures to market risks against economic capital, regulatory required capital and earnings-at-risk limits. The following table outlines our key market risks and identifies the risk management strategies which contribute to managing these risks. Risk Management Strategy Key Market Risk Publicly Interest Rate Alternative Long-Duration Foreign Product design and pricing X X X X Variable annuity guarantee dynamic hedging X X X Macro equity risk hedging X X Asset liability management X X X X Foreign exchange management X To reduce publicly traded equity performance risk, we primarily use a variable annuity guarantee dynamic hedging strategy which is complemented by a general macro equity risk hedging strategy. Our strategies employed for variable annuity guarantee dynamic hedging and macro equity risk hedging expose the Company to additional risks. See “Risk Factors” below. In general, to seek to reduce interest rate risk, we lengthen the duration of our fixed income investments in our liability and surplus segments by executing interest rate hedges. We seek to limit concentration risk associated with ALDA performance by investing in a diversified basket of assets including public and private equities, commercial real estate, infrastructure, timber, farmland real estate, and oil and gas assets. We further diversify risk by managing investments against established limits, including for industry type and corporate connection, commercial real estate type and geography, and timber and farmland property geography and crop type. Our foreign exchange risk management strategy is designed to hedge the sensitivity of our regulatory capital ratios to movements in foreign exchange rates. Our policy is to generally match the currency of our assets with the currency of the liabilities they support, and similarly, to generally match the currency of the assets in our shareholders’ equity account to the currency of our required capital. Where assets and liabilities are not currency matched, we seek to stabilize our capital ratios through the use of financial instruments such as derivatives. Product Design and Pricing Strategy Our policies, standards, and standards of practice with respect to product design and pricing are designed with the objective of aligning our product offerings with our risk taking philosophy and risk appetite, and in particular, that incremental risk generated from new sales aligns with our strategic risk objectives and risk limits. The specific design features of our product offerings, including level of benefit guarantees, policyholder options, fund offerings and availability restrictions as well as our associated investment strategies, help to mitigate the level of underlying risk. We regularly review and modify key features within our product offerings, including premiums and fee charges with a goal of meeting profit targets and staying within risk limits. Certain of our general fund adjustable benefit products have minimum rate guarantees. The rate guarantees for any particular policy are set at the time the policy is issued and governed by insurance regulation in each jurisdiction where the products are sold. The contractual provisions allow crediting rates to be re-set at pre-established intervals subject to the established minimum crediting rate guarantees. The Company may partially mitigate the interest rate exposure by setting new rates on new business and by adjusting rates on in-force business where permitted. In addition, the Company partially mitigates this interest rate risk through its asset liability management process, product design elements, and crediting rate strategies. New product initiatives, new reinsurance arrangements and material insurance underwriting initiatives must be reviewed and approved by the CRO or key individuals within risk management functions. Hedging Strategies for Variable Annuity and Other Equity Risks The Company’s exposure to movement in public equity market values primarily arises from variable annuity guarantees and to a smaller extent from asset-based fees and general fund public equity holdings. Dynamic hedging is the primary hedging strategy for variable annuity market risks. Dynamic hedging is employed for new variable annuity guarantees business when written or as soon as practical thereafter. We seek to manage public equity risk arising from other sources (not dynamically hedged) through our macro equity risk hedging strategy. We seek to manage interest rate risk arising from variable annuity business not dynamically hedged within our asset liability management strategy. Variable Annuity Dynamic Hedging Strategy The variable annuity dynamic hedging strategy is designed to hedge the sensitivity of variable annuity guarantee policy liabilities and available capital to fund performance (both public equity and bond funds) and interest rate movements. The objective of the variable annuity dynamic hedging strategy is to offset, as closely as possible, the change in the economic value of guarantees with the profit and loss from our hedge asset portfolio. The economic value of guarantees moves in close tandem, but not exactly, with our variable annuity guarantee policy liabilities, as it reflects best estimate liabilities and does not include any liability provisions for adverse deviations. Our current variable annuity guarantee dynamic hedging approach is to short exchange-traded equity index and government bond futures and execute currency futures and lengthening interest rate swaps to hedge sensitivity of policy liabilities to fund performance and interest rate movements arising from variable annuity guarantees. We dynamically rebalance these hedge instruments as market conditions change, in order to maintain the hedged position within established limits. Other derivative instruments (such as equity and interest rate options) are also utilized and we may consider the use of additional hedge instruments opportunistically in the future. Our variable annuity guarantee dynamic hedging strategy is not designed to completely offset the sensitivity of policy liabilities to all risks associated with the guarantees embedded in these products. The profit (loss) on the hedge instruments will not completely offset the underlying losses (gains) related to the guarantee liabilities hedged because: ∎ Policyholder behaviour and mortality experience are not hedged; ∎ Provisions for adverse deviation in the policy liabilities are not hedged; ∎ A portion of interest rate risk is not hedged; ∎ Credit spreads widen and actions are not taken to adjust accordingly; ∎ Fund performance on a small portion of the underlying funds is not hedged due to lack of availability of effective exchange-traded hedge instruments; ∎ Performance of the underlying funds hedged may differ from the performance of the corresponding hedge instruments; ∎ Correlations between interest rates and equity markets could lead to unfavourable material impacts; ∎ Unfavourable hedge rebalancing costs can be incurred during periods of high volatility from equity markets, bond markets and/or interest rates. The impact is magnified when these impacts occur concurrently; and ∎ Not all other risks are hedged. Macro Equity Risk Hedging Strategy The objective of the macro equity risk hedging program is to maintain our overall earnings sensitivity to public equity market movements within our Board approved risk appetite limits. The macro equity risk hedging program is designed to hedge earnings sensitivity due to movements in public equity markets arising from all sources (outside of dynamically hedged exposures). Sources of equity market sensitivity addressed by the macro equity risk hedging program include: ∎ Residual equity and currency exposure from variable annuity guarantees not dynamically hedged; ∎ General fund equity holdings backing non-participating liabilities; ∎ Variable life insurance; ∎ Unhedged provisions for adverse deviation related to variable annuity guarantees dynamically hedged; and ∎ Variable annuity fees not associated with guarantees and fees on segregated funds without guarantees, mutual funds and institutional assets managed. Asset Liability Management Strategy Our asset liability management strategy is designed to help ensure that the market risks embedded in our assets and liabilities held in the Company’s general fund are effectively managed and that risk exposures arising from these assets and liabilities are maintained below targeted levels. The embedded market risks include risks related to the level and movement of interest rates and credit spreads, public equity market performance, ALDA performance and foreign exchange rate movements. General fund product liabilities are segmented into groups with similar characteristics that are supported by specific asset segments. We seek to manage each segment to a target investment strategy appropriate for the premium and benefit pattern, policyholder options and guarantees, and crediting rate strategies of the products they support. Similar strategies are established for assets in the Company’s surplus account. The strategies are set using portfolio analysis techniques intended to optimize returns, subject to considerations related to regulatory and economic capital requirements, and risk tolerances. They are designed to achieve broad diversification across asset classes and individual investment risks while being suitably aligned with the liabilities they support. The strategies encompass asset mix, quality rating, term profile, liquidity, currency and industry concentration targets. Products which feature guaranteed liability cash flows (i.e. where the projected net flows are not materially dependent upon economic scenarios) are managed to a target return investment strategy. The products backed by this asset segment include: ∎ Accumulation annuities (other than annuities with pass-through features), which are primarily short-to-medium-term obligations and offer interest rate guarantees for specified terms on single premiums. Withdrawals may or may not have market value adjustments; ∎ Payout annuities, which have no surrender options and include predictable and very long-dated obligations; and ∎ Insurance products, with recurring premiums extending many years in the future, and which also include a significant component of very long-dated obligations. We seek to manage the assets backing these long-dated benefits to achieve a target return sufficient to support the obligations over their lifetime, subject to established risk tolerances, by investing in a basket of diversified ALDA with the balance invested in fixed income securities. Utilizing ALDA to partially support these products is intended to enhance long-term investment returns and reduce aggregate risk through diversification. The size of the target ALDA portfolio is dependent upon the size and term of each segment’s liability obligations, subject to risk tolerance levels. We seek to manage fixed income assets to a benchmark developed to minimize interest rate risk against the residual liabilities and to achieve target returns/spreads required to preserve long-term interest rate investment assumptions used in liability pricing. For insurance and annuity products where significant pass-through features exist, a total return strategy approach is used, generally combining fixed income and ALDA. ALDA may be included to enhance long-term investment returns and reduce aggregate risk through diversification. Target investment strategies are established using portfolio analysis techniques that seek to optimize long-term investment returns while considering the risks related to embedded product guarantees and policyholder withdrawal options, the impact of regulatory and economic capital requirements and management tolerances with respect to short-term income volatility and long-term tail risk exposure. Shorter-duration liabilities such as fixed deferred annuities generally do not incorporate ALDA in their target asset mixes. In our general fund, we seek to limit concentration risk associated with ALDA performance by investing in a diversified basket of assets including public and private equities, commercial real estate, infrastructure, timber, farmland real estate, and oil and gas assets. We further diversify risk by managing investments against established limits, including for industry type and corporate connection, commercial real estate type and geography, and timber and farmland property geography and crop type. Authority to manage our investment portfolios is delegated to investment professionals who manage to benchmarks derived from the target investment strategies established for each segment, including interest rate risk tolerances. Interest rate risk exposure measures are monitored and communicated to portfolio managers with frequencies ranging from daily to annually, depending on the type of liability. Asset portfolio rebalancing, accomplished using cash investments or derivatives, may occur at frequencies ranging from daily to monthly, depending on our established risk tolerances and the potential for changes in the profile of the assets and liabilities. Our asset liability management strategy incorporates a wide variety of risk measurement, risk mitigation and risk management, and hedging processes. The liabilities and risks to which the Company is exposed, however, cannot be completely matched or hedged due to both limitations on instruments available in investment markets and uncertainty of impact on liability cash flows from policyholder experience/behaviour. As noted above, on December 22, 2017 we announced our decision to reduce the allocation to ALDA in the portfolio asset mix supporting our North American legacy businesses over the next 12-18 months. This decision will reduce our exposure to ALDA returns, excluding the impact of U.S. Tax Reform, and excluding the impact of additional interest rate hedging, generally increases our exposure to changes in interest rates. Foreign Exchange Risk Management Strategy Our foreign exchange risk management strategy is designed to hedge the sensitivity of our regulatory capital ratios to movements in foreign exchange rates. In particular, the objective of the strategy is to offset within acceptable tolerance levels, changes in required capital with changes in available capital that result from currency movements. These changes occur when assets and liabilities related to business conducted in currencies other than Canadian dollars are translated to Canadian dollars at period ending exchange rates. Our policy is to generally match the currency of our assets with the currency of the liabilities they support, and similarly, to generally match the currency of the assets in our shareholders’ equity account to the currency of our required capital. Where assets and liabilities are not currency matched, we would seek to stabilize our capital ratios through the use of forward contracts and currency swaps. Risk exposure limits are measured in terms of potential changes in capital ratios due to foreign exchange rate movements, determined to represent a specified likelihood of occurrence based on internal models. Market Risk Sensitivities and Market Risk Exposure Measures Variable Annuity and Segregated Fund Guarantees Sensitivities and Risk Exposure Measures Guarantees on variable annuity products and segregated funds may include one or more of death, maturity, income and withdrawal guarantees. Variable annuity and segregated fund guarantees are contingent and only payable upon the occurrence of the relevant event, if fund values at that time are below guaranteed values. Depending on future equity market levels, liabilities on current in-force business would be due primarily in the period from 2018 to 2038. We seek to mitigate a portion of the risks embedded in our retained (i.e. net of reinsurance) variable annuity and segregated fund guarantee business through the combination of our dynamic and macro hedging strategies (see “Publicly Traded Equity Performance Risk” below). The table below shows selected information regarding the Company’s variable annuity and segregated fund investment-related guarantees gross and net of reinsurance. Variable annuity and segregated fund guarantees, net of reinsurance As at December 31, 2017 2016 Guarantee Fund value Amount (4),(5) Guarantee Fund value Amount (4),(5) Guaranteed minimum income benefit (1) $ 5,201 $ 4,195 $ 1,074 $ 5,987 $ 4,432 $ 1,570 Guaranteed minimum withdrawal benefit 61,767 56,512 5,943 68,594 59,593 9,135 Guaranteed minimum accumulation benefit 18,162 18,705 11 19,482 19,989 27 Gross living benefits (2) 85,130 79,412 7,028 94,063 84,014 10,732 Gross death benefits (3) 10,743 16,973 1,001 12,200 16,614 1,350 Total gross of reinsurance 95,873 96,385 8,029 106,263 100,628 12,082 Living benefits reinsured 4,522 3,667 911 5,241 3,903 1,349 Death benefits reinsured 3,014 3,040 435 3,429 3,202 564 Total reinsured 7,536 6,707 1,346 8,670 7,105 1,913 Total, net of reinsurance $ 88,337 $ 89,678 $ 6,683 $ 97,593 $ 93,523 $ 10,169 (1) Contracts with guaranteed long-term care benefits are included in this category. (2) Where a policy includes both living and death benefits, the guarantee in excess of the living benefit is included in the death benefit category as outlined in footnote 3. (3) Death benefits include stand-alone guarantees and guarantees in excess of living benefit guarantees where both death and living benefits are provided on a policy. (4) Amount at risk (in-the-money amount) is the excess of guarantee values over fund values on all policies where the guarantee value exceeds the fund value. This amount is not currently payable. For guaranteed minimum death benefit, the amount at risk is defined as the current guaranteed minimum death benefit in excess of the current account balance. For guaranteed minimum income benefit, the amount at risk is defined as the excess of the current annuitization income base over the current account value. For all guarantees, the amount at risk is floored at zero at the single contract level. (5) The amount at risk net of reinsurance at December 31, 2017 was $6,683 million (2016 – $10,169 million) of which: US$3,982 million (2016 – US$6,008 million) was on our U.S. business, $1,342 million (2016 – $1,499 million) was on our Canadian business, US$95 million (2016 – US$206 million) was on our Japan business and US$181 million (2016 – US$244 million) was related to Asia (other than Japan) and our run-off reinsurance business. Investment categories for variable contracts with guarantees Variable contracts with guarantees, including variable annuities and variable life, are invested, at the policyholder’s discretion subject to contract limitations, in various fund types within the segregated fund accounts and other investments. The account balances by investment category are set out below. As at December 31, ($ millions) Investment category 2017 2016 Equity funds $ 47,508 $ 41,805 Balanced funds 47,369 57,571 Bond funds 13,095 11,588 Money market funds 1,905 2,127 Other fixed interest rate investments 1,777 1,807 Total $ 111,654 $ 114,898 Caution Related to Sensitivities In the sections that follow, we provide sensitivities and risk exposure measures for certain risks. These include sensitivities due to specific changes in market prices and interest rate levels projected using internal models as at a specific date, and are measured relative to a starting level reflecting the Company’s assets and liabilities at that date and the actuarial factors, investment activity and investment returns assumed in the determination of policy liabilities. The risk exposures measure the impact of changing one factor at a time and assume that all other factors remain unchanged. Actual results can differ significantly from these estimates for a variety of reasons including the interaction among these factors when more than one changes; changes in actuarial and investment return and future investment activity assumptions; actual experience differing from the assumptions, changes in business mix, effective tax rates and other market factors; and the general limitations of our internal models. For these reasons, the sensitivities should only be viewed as directional estimates of the underlying sensitivities for the respective factors based on the assumptions outlined below. Given the nature of these calculations, we cannot provide assurance that the actual impact on net income attributed to shareholders will be as indicated or on MLI’s MCCSR ratio will be as indicated. As noted above, LICAT replaced the MCCSR regulatory capital framework on January 1, 2018 and we will update the sensitivity measures for the change in capital framework in May 2018. Publicly Traded Equity Performance Risk Sensitivities and Exposure Measures As outlined above, the macro hedging strategy is designed to mitigate public equity risk arising from variable annuity guarantees not dynamically hedged and from other products and fees. In addition, our variable annuity guarantee dynamic hedging strategy is not designed to completely offset the sensitivity of policy liabilities to all risks associated with the guarantees embedded in these products. The table below shows the potential impact on net income attributed to shareholders resulting from an immediate 10%, 20% and 30% change in market values of publicly traded equities followed by a return to the expected level of growth assumed in the valuation of policy liabilities. If market values were to remain flat for an entire year, the potential impact would be roughly equivalent to an immediate decline in market values equal to the expected level of annual growth assumed in the valuation of policy liabilities. Further, if after market values dropped 10%, 20% or 30% they continued to decline, remained flat, or grew more slowly than assumed in the valuation the potential impact on net income attributed to shareholders could be considerably more than shown. Refer to “Sensitivity of Earnings to Changes in Assumptions” for more information on the level of growth assumed and on the net income sensitivity to changes in these long-term assumptions. The potential impact is shown after taking into account the impact of the change in markets on the hedge assets. While we cannot reliably estimate the amount of the change in dynamically hedged variable annuity guarantee liabilities that will not be offset by the profit or loss on the dynamic hedge assets, we make certain assumptions for the purposes of estimating the impact on net income attributed to shareholders. This estimate assumes that the performance of the dynamic hedging program would not completely offset the gain/loss from the dynamically hedged variable annuity guarantee liabilities. It assumes that the hedge assets are based on the actual position at the period end, and that equity hedges in the dynamic program are rebalanced at 5% intervals. In addition, we assume that the macro hedge assets are rebalanced in line with market changes. It is also important to note that these estimates are illustrative, and that the hedging program may underperform these estimates, particularly during periods of high realized volatility and/or periods where both interest rates and equity market movements are unfavourable. The Standards of Practice for the valuation of insurance contract liabilities and guidance published by the CIA constrain the investment return assumptions for public equities and certain ALDA assets based on historical return benchmarks for public equities. The potential impact on net income attributed to shareholders does not take into account possible changes to investment return assumptions resulting from the impact of declines in public equity market values on these historical return benchmarks. Potential immediate impact on net income attributed to shareholders arising from changes to public equity returns (1),(2),(3),(4) As at December 31, 2017 ($ millions) -30% -20% -10% 10% 20% 30% Underlying sensitivity to net income attributed to shareholders (5) Variable annuity guarantees $ (3,940 ) $ (2,260 ) $ (960 ) $ 670 $ 1,110 $ 1,410 Asset based fees (510 ) (340 ) (170 ) 170 340 510 General fund equity investments (6) (930 ) (590 ) (270 ) 270 540 810 Total underlying sensitivity before hedging (5,380 ) (3,190 ) (1,400 ) 1,110 1,990 2,730 Impact of macro and dynamic hedge assets (7) 3,220 1,850 790 (640 ) (1,100 ) (1,410 ) Net potential impact on net income after impact of hedging $ (2,160 ) $ (1,340 ) $ (610 ) $ 470 $ 890 $ 1,320 As at December 31, 2016 ($ millions) -30% -20% -10% 10% 20% 30% Underlying sensitivity to net income attributed to shareholders (5) Variable annuity guarantees $ (4,830 ) $ (2,920 ) $ (1,290 ) $ 1,000 $ 1,690 $ 2,170 Asset based fees (410 ) (280 ) (140 ) 140 280 410 General fund equity investments (6) (910 ) (590 ) (270 ) 240 490 750 Total underlying sensitivity before hedging (6,150 ) (3,790 ) (1,700 ) 1,380 2,460 3,330 Impact of macro and dynamic hedge assets (7) 4,050 2,440 1,060 (910 ) (1,610 ) (2,160 ) Net potential impact on net income attributed to shareholders after impact of hedging $ (2,100 ) $ (1,350 ) $ (640 ) $ 470 $ 850 $ 1,170 (1) See “Caution Related to Sensitivities” above. (2) The sensitivities as at December 31, 2017 include the impact of lower U.S. corporate tax rates effective January 1, 2018. Due to the lower effective tax rate, the after-tax impact of changes to public equity returns increases. (3) The tables above show the potential impact on net income attributed to shareholders resulting from an immediate 10%, 20% and 30% change in market values of publicly traded equities followed by a return to the expected level of growth assumed in the valuation of policy liabilities. (4) Please refer to “Sensitivity of Earnings to Changes in Assumptions” for more information on the level of growth assumed and on the net income sensitivity to changes in these long-term assumptions. (5) Defined as earnings sensitivity to a change in public equity markets including settlements on reinsurance contracts, but before the offset of hedge assets or other risk mitigants. (6) This impact for general fund equities is calculated as at a point-in-time and does not include: (i) any potential impact on public equity weightings; (ii) any gains or losses on AFS public equities held in the Corporate and Other segment; or (iii) any gains or losses on public equity investments held in Manulife Bank. The participating policy funds are largely self-supporting and generate no material impact on net income attributed to shareholders as a result of changes in equity markets. (7) Includes the impact of rebalancing equity hedges in the macro and dynamic hedging program. The impact of dynamic hedge rebalancing represents the impact of rebalancing equity hedges for dynamically hedged variable annuity guarantee best estimate liabilities at 5% intervals, but does not include any impact in respect of other sources of hedge ineffectiveness (e.g. fund tracking, realized volatility and equity, interest rate correlations different from expected among other factors). Changes in equity markets impact our available and required components of the MCCSR ratio. The following table shows the potential impact to MLI’s MCCSR ratio resulting from changes in public equity market values, assuming that the change in the value of the hedge assets does not completely offset the change of the related variable annuity guarantee liabilities. Potential immediate impact on MLI’s MCCSR ratio arising from public equity returns different than the expected return for policy liability valuation (1),(2),(3),(4) Impact on MLI’s MCCSR ratio Percentage points -30% -20% -10% 10% 20% 30% December 31, 2017 (14 ) (8 ) (4 ) 3 11 14 December 31, 2016 (12 ) (8 ) (4 ) 3 14 18 (1) See “Caution Related to Sensitivities” above. In addition, estimates exclude changes to the net actuarial gains/losses with respect to the Company’s pension obligations as a result of changes in equity markets, as the impact on the quoted sensitivities is not considered to be material. (2) The sensitivities as at December 31, 2017 include the impact of lower U.S. corporate tax rates effective January 1, 2018. Due to the lower effective tax rate, the after-tax impact of changes to public equity returns increases. (3) The potential impact is shown assuming that the change in value of the hedge assets does not completely offset the change in the dynamically hedged variable annuity guarantee liabilities. The estimated amount that would not be completely offset relates to our practices of not hedging the provisions for adverse deviation and of rebalancing equity hedges for dynamically hedged variable annuity liabilities at 5% intervals. (4) OSFI rules for segregated fund guarantees reflect full capital impacts of shocks over 20 quarters within a prescribed range. As such, the deterioration in equity markets could lead to further increases in capital requirements after the initial shock. Interest Rate and Spread Risk Sensitivities and Exposure Measures At December 31, 2017, we estimated the sensitivity of our net income attributed to shareholders to a 50 basis point parallel decline in interest rates to be a charge of $200 million, and to a 50 basis point increase in interest rates to be a benefit of $100 million. The table below shows the potential impact on net income attributed to shareholders from a 50 basis point parallel move in interest rates. This includes a change of 50 basis points in current government, swap and corporate rates for all maturities across all markets with no change in credit spreads between government, swap and corporate rates, and with a floor of zero on government rates where government rates are not currently negative, relative to the rates assumed in the valuation of policy liabilities, including embedded derivatives. For variable annuity guarantee liabilities that are dynamically hedged, it is assumed that interest rate hedges are rebalanced at 20 basis point intervals. As the sensitivity to a 50 basis point change in interest rates includes any associated change in the applicable reinvestment scenarios, the impact of changes to interest rates for less than, or more than 50 basis points is unlikely to be linear. Furthermore, our sensitivities are not consistent across all regions in which we operate, and the impact of yield curve changes will vary depending upon the geography where the change occurs. Reinvestment assumptions used in the valuation of policy liabilities tend to amplify the negative effects of a decrease in interest rates, and dampen the positive effects of interest rate increases. This is because the reinvestment assumptions used in the valuation of our insurance liabilities are based on interest rate scenarios and calibration criteria set by the Actuarial Standards Board, while our interest rate hedges are valued using current market interest rates. Therefore, in any particular quarter, changes to the reinvestment assumptions are not fu |
Nature of Operations and Sign32
Nature of Operations and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Market Risk | Market Risk Market risk is the risk of loss resulting from market price volatility, interest rate change, credit and swap spread changes, and from adverse foreign currency rate movements. Market price volatility primarily relates to changes in prices of publicly traded equities and alternative long-duration assets. |
Market Risk Management Strateg | Market Risk Management Strategy Market risk is governed by the Global Asset Liability Committee which oversees the overall market and liquidity risk program. Our overall strategy to manage our market risks incorporates several component strategies, each targeted to manage one or more of the market risks arising from our businesses. At an enterprise level, these strategies are designed to manage our aggregate exposures to market risks against economic capital, regulatory required capital and earnings-at-risk limits. The following table outlines our key market risks and identifies the risk management strategies which contribute to managing these risks. Risk Management Strategy Key Market Risk Publicly Interest Rate Alternative Long-Duration Foreign Product design and pricing X X X X Variable annuity guarantee dynamic hedging X X X Macro equity risk hedging X X Asset liability management X X X X Foreign exchange management X To reduce publicly traded equity performance risk, we primarily use a variable annuity guarantee dynamic hedging strategy which is complemented by a general macro equity risk hedging strategy. Our strategies employed for variable annuity guarantee dynamic hedging and macro equity risk hedging expose the Company to additional risks. See “Risk Factors” below. In general, to seek to reduce interest rate risk, we lengthen the duration of our fixed income investments in our liability and surplus segments by executing interest rate hedges. We seek to limit concentration risk associated with ALDA performance by investing in a diversified basket of assets including public and private equities, commercial real estate, infrastructure, timber, farmland real estate, and oil and gas assets. We further diversify risk by managing investments against established limits, including for industry type and corporate connection, commercial real estate type and geography, and timber and farmland property geography and crop type. Our foreign exchange risk management strategy is designed to hedge the sensitivity of our regulatory capital ratios to movements in foreign exchange rates. Our policy is to generally match the currency of our assets with the currency of the liabilities they support, and similarly, to generally match the currency of the assets in our shareholders’ equity account to the currency of our required capital. Where assets and liabilities are not currency matched, we seek to stabilize our capital ratios through the use of financial instruments such as derivatives. |
Product Design and Pricing Strategy | Product Design and Pricing Strategy Our policies, standards, and standards of practice with respect to product design and pricing are designed with the objective of aligning our product offerings with our risk taking philosophy and risk appetite, and in particular, that incremental risk generated from new sales aligns with our strategic risk objectives and risk limits. The specific design features of our product offerings, including level of benefit guarantees, policyholder options, fund offerings and availability restrictions as well as our associated investment strategies, help to mitigate the level of underlying risk. We regularly review and modify key features within our product offerings, including premiums and fee charges with a goal of meeting profit targets and staying within risk limits. Certain of our general fund adjustable benefit products have minimum rate guarantees. The rate guarantees for any particular policy are set at the time the policy is issued and governed by insurance regulation in each jurisdiction where the products are sold. The contractual provisions allow crediting rates to be re-set at pre-established intervals subject to the established minimum crediting rate guarantees. The Company may partially mitigate the interest rate exposure by setting new rates on new business and by adjusting rates on in-force business where permitted. In addition, the Company partially mitigates this interest rate risk through its asset liability management process, product design elements, and crediting rate strategies. New product initiatives, new reinsurance arrangements and material insurance underwriting initiatives must be reviewed and approved by the CRO or key individuals within risk management functions. |
Hedging Strategies for Variable Annuity and Other Equity Risks | Hedging Strategies for Variable Annuity and Other Equity Risks The Company’s exposure to movement in public equity market values primarily arises from variable annuity guarantees and to a smaller extent from asset-based fees and general fund public equity holdings. Dynamic hedging is the primary hedging strategy for variable annuity market risks. Dynamic hedging is employed for new variable annuity guarantees business when written or as soon as practical thereafter. We seek to manage public equity risk arising from other sources (not dynamically hedged) through our macro equity risk hedging strategy. We seek to manage interest rate risk arising from variable annuity business not dynamically hedged within our asset liability management strategy. |
Variable Annuity Dynamic Hedging Strategy | Variable Annuity Dynamic Hedging Strategy The variable annuity dynamic hedging strategy is designed to hedge the sensitivity of variable annuity guarantee policy liabilities and available capital to fund performance (both public equity and bond funds) and interest rate movements. The objective of the variable annuity dynamic hedging strategy is to offset, as closely as possible, the change in the economic value of guarantees with the profit and loss from our hedge asset portfolio. The economic value of guarantees moves in close tandem, but not exactly, with our variable annuity guarantee policy liabilities, as it reflects best estimate liabilities and does not include any liability provisions for adverse deviations. Our current variable annuity guarantee dynamic hedging approach is to short exchange-traded equity index and government bond futures and execute currency futures and lengthening interest rate swaps to hedge sensitivity of policy liabilities to fund performance and interest rate movements arising from variable annuity guarantees. We dynamically rebalance these hedge instruments as market conditions change, in order to maintain the hedged position within established limits. Other derivative instruments (such as equity and interest rate options) are also utilized and we may consider the use of additional hedge instruments opportunistically in the future. Our variable annuity guarantee dynamic hedging strategy is not designed to completely offset the sensitivity of policy liabilities to all risks associated with the guarantees embedded in these products. The profit (loss) on the hedge instruments will not completely offset the underlying losses (gains) related to the guarantee liabilities hedged because: ∎ Policyholder behaviour and mortality experience are not hedged; ∎ Provisions for adverse deviation in the policy liabilities are not hedged; ∎ A portion of interest rate risk is not hedged; ∎ Credit spreads widen and actions are not taken to adjust accordingly; ∎ Fund performance on a small portion of the underlying funds is not hedged due to lack of availability of effective exchange-traded hedge instruments; ∎ Performance of the underlying funds hedged may differ from the performance of the corresponding hedge instruments; ∎ Correlations between interest rates and equity markets could lead to unfavourable material impacts; ∎ Unfavourable hedge rebalancing costs can be incurred during periods of high volatility from equity markets, bond markets and/or interest rates. The impact is magnified when these impacts occur concurrently; and ∎ Not all other risks are hedged. |
Macro Equity Risk Hedging Strategy | Macro Equity Risk Hedging Strategy The objective of the macro equity risk hedging program is to maintain our overall earnings sensitivity to public equity market movements within our Board approved risk appetite limits. The macro equity risk hedging program is designed to hedge earnings sensitivity due to movements in public equity markets arising from all sources (outside of dynamically hedged exposures). Sources of equity market sensitivity addressed by the macro equity risk hedging program include: ∎ Residual equity and currency exposure from variable annuity guarantees not dynamically hedged; ∎ General fund equity holdings backing non-participating liabilities; ∎ Variable life insurance; ∎ Unhedged provisions for adverse deviation related to variable annuity guarantees dynamically hedged; and ∎ Variable annuity fees not associated with guarantees and fees on segregated funds without guarantees, mutual funds and institutional assets managed. |
Asset Liability Management Strategy | Asset Liability Management Strategy Our asset liability management strategy is designed to help ensure that the market risks embedded in our assets and liabilities held in the Company’s general fund are effectively managed and that risk exposures arising from these assets and liabilities are maintained below targeted levels. The embedded market risks include risks related to the level and movement of interest rates and credit spreads, public equity market performance, ALDA performance and foreign exchange rate movements. General fund product liabilities are segmented into groups with similar characteristics that are supported by specific asset segments. We seek to manage each segment to a target investment strategy appropriate for the premium and benefit pattern, policyholder options and guarantees, and crediting rate strategies of the products they support. Similar strategies are established for assets in the Company’s surplus account. The strategies are set using portfolio analysis techniques intended to optimize returns, subject to considerations related to regulatory and economic capital requirements, and risk tolerances. They are designed to achieve broad diversification across asset classes and individual investment risks while being suitably aligned with the liabilities they support. The strategies encompass asset mix, quality rating, term profile, liquidity, currency and industry concentration targets. |
Foreign Exchange Risk Management Strategy | Foreign Exchange Risk Management Strategy Our foreign exchange risk management strategy is designed to hedge the sensitivity of our regulatory capital ratios to movements in foreign exchange rates. In particular, the objective of the strategy is to offset within acceptable tolerance levels, changes in required capital with changes in available capital that result from currency movements. These changes occur when assets and liabilities related to business conducted in currencies other than Canadian dollars are translated to Canadian dollars at period ending exchange rates. Our policy is to generally match the currency of our assets with the currency of the liabilities they support, and similarly, to generally match the currency of the assets in our shareholders’ equity account to the currency of our required capital. Where assets and liabilities are not currency matched, we would seek to stabilize our capital ratios through the use of forward contracts and currency swaps. Risk exposure limits are measured in terms of potential changes in capital ratios due to foreign exchange rate movements, determined to represent a specified likelihood of occurrence based on internal models. |
Market Risk Sensitivities and Market Risk Exposure Measures | Market Risk Sensitivities and Market Risk Exposure Measures Variable Annuity and Segregated Fund Guarantees Sensitivities and Risk Exposure Measures Guarantees on variable annuity products and segregated funds may include one or more of death, maturity, income and withdrawal guarantees. Variable annuity and segregated fund guarantees are contingent and only payable upon the occurrence of the relevant event, if fund values at that time are below guaranteed values. Depending on future equity market levels, liabilities on current in-force business would be due primarily in the period from 2018 to 2038. We seek to mitigate a portion of the risks embedded in our retained (i.e. net of reinsurance) variable annuity and segregated fund guarantee business through the combination of our dynamic and macro hedging strategies (see “Publicly Traded Equity Performance Risk” below). The table below shows selected information regarding the Company’s variable annuity and segregated fund investment-related guarantees gross and net of reinsurance. Variable annuity and segregated fund guarantees, net of reinsurance As at December 31, 2017 2016 Guarantee Fund value Amount (4),(5) Guarantee Fund value Amount (4),(5) Guaranteed minimum income benefit (1) $ 5,201 $ 4,195 $ 1,074 $ 5,987 $ 4,432 $ 1,570 Guaranteed minimum withdrawal benefit 61,767 56,512 5,943 68,594 59,593 9,135 Guaranteed minimum accumulation benefit 18,162 18,705 11 19,482 19,989 27 Gross living benefits (2) 85,130 79,412 7,028 94,063 84,014 10,732 Gross death benefits (3) 10,743 16,973 1,001 12,200 16,614 1,350 Total gross of reinsurance 95,873 96,385 8,029 106,263 100,628 12,082 Living benefits reinsured 4,522 3,667 911 5,241 3,903 1,349 Death benefits reinsured 3,014 3,040 435 3,429 3,202 564 Total reinsured 7,536 6,707 1,346 8,670 7,105 1,913 Total, net of reinsurance $ 88,337 $ 89,678 $ 6,683 $ 97,593 $ 93,523 $ 10,169 (1) Contracts with guaranteed long-term care benefits are included in this category. (2) Where a policy includes both living and death benefits, the guarantee in excess of the living benefit is included in the death benefit category as outlined in footnote 3. (3) Death benefits include stand-alone guarantees and guarantees in excess of living benefit guarantees where both death and living benefits are provided on a policy. (4) Amount at risk (in-the-money amount) is the excess of guarantee values over fund values on all policies where the guarantee value exceeds the fund value. This amount is not currently payable. For guaranteed minimum death benefit, the amount at risk is defined as the current guaranteed minimum death benefit in excess of the current account balance. For guaranteed minimum income benefit, the amount at risk is defined as the excess of the current annuitization income base over the current account value. For all guarantees, the amount at risk is floored at zero at the single contract level. (5) The amount at risk net of reinsurance at December 31, 2017 was $6,683 million (2016 – $10,169 million) of which: US$3,982 million (2016 – US$6,008 million) was on our U.S. business, $1,342 million (2016 – $1,499 million) was on our Canadian business, US$95 million (2016 – US$206 million) was on our Japan business and US$181 million (2016 – US$244 million) was related to Asia (other than Japan) and our run-off reinsurance business. |
Investment categories for variable contracts with guarantees | Investment categories for variable contracts with guarantees Variable contracts with guarantees, including variable annuities and variable life, are invested, at the policyholder’s discretion subject to contract limitations, in various fund types within the segregated fund accounts and other investments. The account balances by investment category are set out below. As at December 31, ($ millions) Investment category 2017 2016 Equity funds $ 47,508 $ 41,805 Balanced funds 47,369 57,571 Bond funds 13,095 11,588 Money market funds 1,905 2,127 Other fixed interest rate investments 1,777 1,807 Total $ 111,654 $ 114,898 |
Caution Related to Sensitivities | Caution Related to Sensitivities In the sections that follow, we provide sensitivities and risk exposure measures for certain risks. These include sensitivities due to specific changes in market prices and interest rate levels projected using internal models as at a specific date, and are measured relative to a starting level reflecting the Company’s assets and liabilities at that date and the actuarial factors, investment activity and investment returns assumed in the determination of policy liabilities. The risk exposures measure the impact of changing one factor at a time and assume that all other factors remain unchanged. Actual results can differ significantly from these estimates for a variety of reasons including the interaction among these factors when more than one changes; changes in actuarial and investment return and future investment activity assumptions; actual experience differing from the assumptions, changes in business mix, effective tax rates and other market factors; and the general limitations of our internal models. For these reasons, the sensitivities should only be viewed as directional estimates of the underlying sensitivities for the respective factors based on the assumptions outlined below. Given the nature of these calculations, we cannot provide assurance that the actual impact on net income attributed to shareholders will be as indicated or on MLI’s MCCSR ratio will be as indicated. As noted above, LICAT replaced the MCCSR regulatory capital framework on January 1, 2018 and we will update the sensitivity measures for the change in capital framework in May 2018. |
Publicly Traded Equity Performance Risk Sensitivities and Exposure Measures | Publicly Traded Equity Performance Risk Sensitivities and Exposure Measures As outlined above, the macro hedging strategy is designed to mitigate public equity risk arising from variable annuity guarantees not dynamically hedged and from other products and fees. In addition, our variable annuity guarantee dynamic hedging strategy is not designed to completely offset the sensitivity of policy liabilities to all risks associated with the guarantees embedded in these products. |
Interest Rate and Spread Risk Sensitivities and Exposure Measures | Interest Rate and Spread Risk Sensitivities and Exposure Measures At December 31, 2017, we estimated the sensitivity of our net income attributed to shareholders to a 50 basis point parallel decline in interest rates to be a charge of $200 million, and to a 50 basis point increase in interest rates to be a benefit of $100 million. The table below shows the potential impact on net income attributed to shareholders from a 50 basis point parallel move in interest rates. This includes a change of 50 basis points in current government, swap and corporate rates for all maturities across all markets with no change in credit spreads between government, swap and corporate rates, and with a floor of zero on government rates where government rates are not currently negative, relative to the rates assumed in the valuation of policy liabilities, including embedded derivatives. For variable annuity guarantee liabilities that are dynamically hedged, it is assumed that interest rate hedges are rebalanced at 20 basis point intervals. As the sensitivity to a 50 basis point change in interest rates includes any associated change in the applicable reinvestment scenarios, the impact of changes to interest rates for less than, or more than 50 basis points is unlikely to be linear. Furthermore, our sensitivities are not consistent across all regions in which we operate, and the impact of yield curve changes will vary depending upon the geography where the change occurs. Reinvestment assumptions used in the valuation of policy liabilities tend to amplify the negative effects of a decrease in interest rates, and dampen the positive effects of interest rate increases. This is because the reinvestment assumptions used in the valuation of our insurance liabilities are based on interest rate scenarios and calibration criteria set by the Actuarial Standards Board, while our interest rate hedges are valued using current market interest rates. Therefore, in any particular quarter, changes to the reinvestment assumptions are not fully aligned to changes in current market interest rates especially when there is a significant change in the shape of the interest rate curve. As a result, the impact from non-parallel movements may be materially different from the estimated impact of parallel movements. For example, if long-term interest rates increase more than short-term interest rates (sometimes referred to as a steepening of the yield curve) in North America, the decrease in the value of our swaps may be greater than the decrease in the value of our insurance liabilities. This could result in a charge to net income attributed to shareholders in the short-term even though the rising and steepening, if sustained, may have a positive long-term economic impact. The potential impact on net income attributed to shareholders does not take into account any future potential changes to our URR assumptions or calibration criteria for stochastic risk-free rates or other potential impacts of lower interest rate levels, for example, increased strain on the sale of new business or lower interest earned on our surplus assets. The impact also does not reflect any unrealized gains or losses on AFS fixed income assets held in our surplus segment. Changes in the market value of these assets may provide a natural economic offset to the interest rate risk arising from our product liabilities. In order for there to also be an accounting offset, the Company would need to realize a portion of the AFS fixed income asset unrealized gains or losses. It is not certain we would crystallize any of the unrealized gains or losses available. As at December 31, 2017, the AFS fixed income assets held in the surplus segment were in a net after-tax unrealized loss position of $223 million. The impact does not reflect any potential effect of changing interest rates to the value of our ALDA assets. Rising interest rates could negatively impact the value of our ALDA assets (see “Critical Accounting and Actuarial Policies – Fair Value of Invested Assets”, below). More information on ALDA can be found under the section “Alternative Long-Duration Asset Performance Risk Sensitivities and Exposure Measures”, below. The following table shows the potential impact on net income attributed to shareholders including the change in the market value of AFS fixed income assets held in our surplus segment, which could be realized through the sale of these assets. Potential impact on net income attributed to shareholders and MLI’s MCCSR ratio of an immediate parallel change in interest rates relative to rates assumed in the valuation of policy liabilities (1),(2),(3),(4),(5) 2017 2016 As at December 31, -50bp +50bp -50bp +50bp Net income attributed to shareholders ($ millions) Excluding change in market value of AFS fixed income assets held in the surplus segment $ (200 ) $ 100 $ – $ – From fair value changes in AFS fixed income assets held in surplus, if realized 1,100 (1,000) 1,000 (900) MLI’s MCCSR ratio (Percentage points) Before impact of change in market value of AFS fixed income assets held in the surplus segment (6) (7 ) 5 (6 ) 5 From fair value changes in AFS fixed income assets held in surplus, if realized 4 (5 ) 1 (4) (1) See “Caution Related to Sensitivities” above. In addition, estimates exclude changes to the net actuarial gains/losses with respect to the Company’s pension obligations as a result of changes in interest rates, as the impact on the quoted sensitivities is not considered to be material. (2) The sensitivities as at December 31, 2017 include the impact of lower U.S. corporate tax rates effective January 1, 2018 and the decision to change the portfolio asset mix supporting our legacy businesses over the next 12-18 months. (3) Includes guaranteed insurance and annuity products, including variable annuity contracts as well as adjustable benefit products where benefits are generally adjusted as interest rates and investment returns change, a portion of which have minimum credited rate guarantees. For adjustable benefit products subject to minimum rate guarantees, the sensitivities are based on the assumption that credited rates will be floored at the minimum. (4) The amount of gain or loss that can be realized on AFS fixed income assets held in the surplus segment will depend on the aggregate amount of unrealized gain or loss. (5) Sensitivities are based on projected asset and liability cash flows and the impact of realizing fair value changes in AFS fixed income is based on the holdings at the end of the period. (6) The impact on MLI’s MCCSR ratio includes both the impact of lower earnings on available capital as well as the increase in required capital that results from a decline in interest rates. The $200 million increase in sensitivity to a 50 basis point decline in interest rates from December 31, 2016 was primarily due to normal rebalancing as part of our interest risk hedging program and our decision to reduce the allocation to ALDA in the portfolio asset mix supporting our North American legacy businesses over the next 12-18 months. Since the decision to change the portfolio asset mix supporting our legacy businesses requires us to complete multiple asset dispositions over the next 12-18 months, we are exposed to the rates at which the proceeds from these dispositions can be reinvested. The following tables show the potential impact on net income attributed to shareholders resulting from a change in corporate spreads and swap spreads over government bond rates for all maturities across all markets with a floor of zero on the total interest rate, relative to the spreads assumed in the valuation of policy liabilities. Potential impact on net income attributed to shareholders arising from changes to corporate spreads and swap spreads (1),(2),(3),(4) As at December 31, 2017 2016 Corporate spreads (5),(6) Increase 50 basis points $ 1,000 $ 700 Decrease 50 basis points (1,000 ) (800 ) Swap spreads Increase 20 basis points $ (400 ) $ (500 ) Decrease 20 basis points 400 500 (1) See “Caution Related to Sensitivities” above. (2) The sensitivities as at December 31, 2017 include the impact of lower U.S. corporate tax rates effective January 1, 2018 and the decision to change the portfolio asset mix of our North American legacy businesses over the next 12-18 months. (3) The impact on net income attributed to shareholders assumes no gains or losses are realized on our AFS fixed income assets held in the surplus segment and excludes the impact of changes in segregated fund bond values due to changes in credit spreads. The participating policy funds are largely self-supporting and generate no material impact on net income attributed to shareholders as a result of changes in corporate and swap spreads. (4) Sensitivities are based on projected asset and liability cash flows. (5) Corporate spreads are assumed to grade to the long-term average over five years. (6) As the sensitivity to a 50 basis point decline in corporate spreads includes the impact of a change in deterministic reinvestment scenarios where applicable, the impact of changes to corporate spreads for less than, or more than, the amounts indicated are unlikely to be linear. The $200 million increase in sensitivity to a 50 basis point decline in corporate spreads from December 31, 2016 was primarily due to our decision to reduce the allocation to ALDA in the portfolio asset mix supporting our North American legacy businesses over the next 12-18 months and the lower U.S. corporate tax rates effective January 1, 2018. Since the decision to change the portfolio asset mix supporting our legacy businesses requires us to complete multiple asset dispositions over the next 12-18 months, we are exposed to the rates at which the proceeds from these dispositions can be reinvested. Swap spreads remain at low levels, and if they were to rise, this could generate material charges to net income attributed to shareholders. |
Alternative Long-Duration Asset Performance Risk Sensitivities and Exposure Measures | Alternative Long-Duration Asset Performance Risk Sensitivities and Exposure Measures The following table shows the potential impact on net income attributed to shareholders resulting from an immediate 10% change in market values of ALDA followed by a return to the expected level of growth assumed in the valuation of policy liabilities. If market values were to remain flat for an entire year, the potential impact would be roughly equivalent to an immediate decline in market values equal to the expected level of annual growth assumed in the valuation of policy liabilities. Further, if after market values dropped 10% they continued to decline, remained flat, or grew more slowly than assumed in the valuation of policy liabilities, the potential impact on net income attributed to shareholders could be considerably more than shown. Refer to “Sensitivity of Earnings to Changes in Assumptions” below, for more information on the level of growth assumed and on the net income sensitivity to changes in these long-term assumptions. ALDA includes commercial real estate, timber and farmland real estate, oil and gas direct holdings, and private equities, some of which relate to oil and gas. |
Liquidity Risk Management Strategy | Liquidity Risk Liquidity risk is the risk of not having access to sufficient funds or liquid assets to meet both expected and unexpected cash and collateral demands. Liquidity Risk Management Strategy Global liquidity management policies and procedures are designed to provide adequate liquidity to cover cash and collateral obligations as they come due, and to sustain and grow operations in both normal and stressed conditions. They reflect legal, regulatory, tax, operational or economic impediments to inter-entity funding. The asset mix of our balance sheet takes into account the need to hold adequate unencumbered and appropriate liquid assets to satisfy the requirements arising under stressed scenarios and to allow our liquidity ratios to remain strong. We manage liquidity centrally and closely monitor the liquidity positions of our principal subsidiaries. We seek to mitigate liquidity risk by diversifying our business across different products, markets, geographical regions and policyholders. We design insurance products to encourage policyholders to maintain their policies in-force, to help generate a diversified and stable flow of recurring premium income. We design the policyholder termination features of our wealth management products and related investment strategies with the goal of mitigating the financial exposure and liquidity risk related to unexpected policyholder terminations. We establish and implement investment strategies intended to match the term profile of the assets to the liabilities they support, taking into account the potential for unexpected policyholder terminations and resulting liquidity needs. Liquid assets represent a large portion of our total assets. We aim to reduce liquidity risk in our deposit funded businesses by diversifying our funding sources and appropriately managing the term structure of our funding. We forecast and monitor daily operating liquidity and cash movements in various individual entities and operations as well as centrally, aiming to ensure liquidity is available and cash is employed optimally. We also maintain centralized cash pools and access to other sources of liquidity and contingent liquidity such as repurchase funding agreements. Our centralized cash pool consists of cash or near-cash, high quality short-term investments that are continually monitored for their credit quality and market liquidity. We have established a variety of contingent funding sources. We maintain a $500 million committed unsecured revolving credit facility with certain Canadian chartered banks available for MFC, and a US$500 million committed unsecured revolving credit facility with certain U.S. banks available for MFC and certain of its subsidiaries. There were no outstanding borrowings under these credit facilities as of December 31, 2017. In addition, JHUSA is a member of the Federal Home Loan Bank of Indianapolis (“FHLBI”), which enables the Company to obtain loans from FHLBI as an alternative source of liquidity that is collateralized by qualifying mortgage loans, mortgage-backed securities and U.S. Treasury and Agency securities. Based on regulatory limitations, as of December 31, 2017, JHUSA had an estimated maximum borrowing capacity of US$4.3 billion under the FHLBI facility, with no amounts outstanding. The following table outlines the maturity of the Company’s significant financial liabilities. Maturity of financial liabilities (1) As at December 31, 2017 ($ millions) Less than 1 to 3 years 3 to 5 years Over Total Long-term debt $ 401 $ 626 $ – $ 3,758 $ 4,785 Capital instruments – – – 8,387 8,387 Derivatives 224 149 168 7,281 7,822 Deposits from Bank clients (2) 15,322 1,373 1,436 – 18,131 Lease obligations 126 172 89 451 838 (1) The amounts shown above are net of the related unamortized deferred issue costs. (2) Carrying value and fair value of deposits from Bank clients as at December 31, 2017 was $18,131 million and $18,149 million, respectively (2016 – $17,919 million and $17,978 million, respectively). Fair value is determined by discounting contractual cash flows, using market interest rates currently offered for deposits with similar terms and conditions. All deposits from Bank clients were categorized in Level 2 of the fair value hierarchy (2016 – Level 2). Through the normal course of business, pledging of assets is required to comply with jurisdictional regulatory and other requirements including collateral pledged to partially mitigate derivative counterparty credit risk, assets pledged to exchanges as initial margin and assets held as collateral for repurchase funding agreements. Total unencumbered assets were $396.8 billion as at December 31, 2017 (2016 – $396.3 billion). Liquidity Risk Exposure Measures We manage liquidity levels of the consolidated group and key subsidiaries against established thresholds. We measure liquidity under both immediate (within one month) and ongoing (within one year) stress scenarios. Our policy is to maintain the ratio of assets to liabilities, both adjusted for their liquidity values, above the pre-established limit. Increased use of derivatives for hedging purposes has necessitated greater emphasis on measurement and management of contingent liquidity risk related to these instruments. The market value of our derivative portfolio is therefore regularly stress tested to assess the potential collateral and cash settlement requirements under various market conditions. Manulife Bank (the “Bank”) has a stand-alone liquidity risk management policy framework. The framework includes stress testing, cash flow modeling, a funding plan and a contingency plan. The Bank has an established securitization infrastructure which enables the Bank to access a range of funding and liquidity sources. The Bank models extreme but plausible stress scenarios that demonstrate that the Bank has a sufficient pool of highly liquid money market securities and holdings of sovereign bonds, near-sovereign bonds and other liquid marketable securities, which when combined with the Bank’s capacity to securitize residential mortgage assets provides sufficient liquidity to meet potential requirements under these stress scenarios. |
Reporting entity | (a) Reporting entity Manulife Financial Corporation (“MFC”) is a publicly traded company and the holding company of The Manufacturers Life Insurance Company (“MLI”), a Canadian life insurance company. MFC and its subsidiaries (collectively, “Manulife” or the “Company”) is a leading financial services group with principal operations in Asia, Canada and the United States. Manulife’s international network of employees, agents and distribution partners offers financial protection and wealth management products and services to personal and business clients as well as asset management services to institutional customers. The Company operates as Manulife in Canada and Asia and as John Hancock in the United States. MFC is domiciled in Canada and incorporated under the Insurance Companies Act (Canada) (“ICA”). These Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). These Consolidated Financial Statements should be read in conjunction with “Risk Management” in the 2017 Management’s Discussion and Analysis (“MD&A”) dealing with IFRS 7 “Financial Instruments: Disclosures” as the discussion on market risk and liquidity risk includes certain disclosures that are considered an integral part of these Consolidated Financial Statements. These Consolidated Financial Statements as at and for the year ended December 31, 2017 were authorized for issue by MFC’s Board of Directors on February 7, 2018. |
Basis of preparation | (b) Basis of preparation The preparation of Consolidated Financial Statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities as at the date of the Consolidated Financial Statements, and the reported amounts of revenue and expenses during the reporting periods. Actual results may differ from these estimates. The most significant estimation processes relate to assumptions used in measuring insurance and investment contract liabilities, assessing assets for impairment, determining of pension and other post-employment benefit obligation and expense assumptions, determining income taxes and uncertain tax positions and fair valuation of certain invested assets. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the year in which the estimates are revised and in any future years affected. Although some variability is inherent in these estimates, management believes that the amounts recorded are appropriate. The significant accounting policies used and the most significant judgments made by management in applying these accounting policies in the preparation of these Consolidated Financial Statements are summarized below. |
Fair value measurement | (c) Fair value measurement Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction (not a forced liquidation or distress sale) between market participants at the measurement date, that is, an exit value. When available, quoted market prices are used to determine fair value. If quoted market prices are not available, fair value is typically based upon alternative valuation techniques such as discounted cash flows, matrix pricing, consensus pricing services and other techniques. Broker quotes are generally used when external public vendor prices are not available. The Company has a process in place that includes a review of price movements relative to the market, a comparison of prices between vendors, and a comparison to internal matrix pricing which uses predominately external observable data. Judgment is applied in adjusting external observable data for items including liquidity and credit factors. The Company categorizes its fair value measurements according to a three-level hierarchy. The hierarchy prioritizes the inputs used by the Company’s valuation techniques. A level is assigned to each fair value measurement based on the lowest level input significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are defined as follows: Level 1 – Fair value measurements that reflect unadjusted, quoted prices in active markets for identical assets and liabilities that the Company has the ability to access at the measurement date reflecting market transactions. Level 2 – Fair value measurements using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in inactive markets, inputs that are observable that are not prices (such as interest rates, credit risks, etc.) and inputs that are derived from or corroborated by observable market data. Most debt securities are classified within Level 2. Also, included in the Level 2 category are derivative instruments that are priced using models with observable market inputs, including interest rate swaps, equity swaps, and foreign currency forward contracts. Level 3 – Fair value measurements using significant non-market long-duration |
Basis of consolidation | (d) Basis of consolidation MFC consolidates the financial statements of all entities, including certain structured entities that it controls. Subsidiaries are entities controlled by the Company. The Company has control over an entity when the Company has the power to govern the financial and operating policies of the entity, is exposed to variable returns from its activities which are significant in relation to the total variable returns of the entity and the Company is able to use its power over the entity to affect its share of variable returns. In assessing control, significant judgment is applied while considering all relevant facts and circumstances. When assessing decision-making power, the Company considers the extent of its rights relative to the management of an entity, the level of voting rights held in an entity which are potentially or presently exercisable, the existence of any contractual management agreements which may provide the Company with power over an entity’s financial and operating policies and to the extent of other parties’ ownership in an entity, if any, the possibility for de facto control being present. When assessing returns, the Company considers the significance of direct and indirect financial and non-financial The financial statements of subsidiaries are included in the MFC’s consolidated results from the date control is established and are excluded from consolidation from the date control ceases. The initial control assessment is performed at inception of the Company’s involvement with the entity and is reconsidered at a later date if the Company acquires or loses power over key operating and financial policies of the entity; acquires additional interests or disposes of interests in the entity; the contractual arrangements of the entity are amended such that the Company’s proportionate exposure to variable returns changes; or if the Company’s ability to use its power to affect its variable returns from the entity changes. The Company’s Consolidated Financial Statements have been prepared using uniform accounting policies for like transactions and events in similar circumstances. Intercompany balances, and income and expenses arising from intercompany transactions, have been eliminated in preparing the Consolidated Financial Statements. Non-controlling Non-controlling non-controlling The equity method of accounting is used to account for entities over which the Company has significant influence (“associates”), whereby the Company records its share of the associate’s net assets and financial results using uniform accounting policies for similar transactions and events. Significant judgment is used to determine whether voting rights, contractual management and other relationships with the entity, if any, provide the Company with significant influence over the entity. Gains and losses on the sale of associates are included in income when realized, while impairment losses are recognized immediately when there is objective evidence of impairment. Gains and losses on commercial transactions with associates are eliminated to the extent of the Company’s interest in the associate. Investments in associates are included in other invested assets on the Company’s Consolidated Statements of Financial Position. |
Invested assets | (e) Invested assets Invested assets that are considered financial instruments are classified as fair value through profit or loss (“FVTPL”), loans and receivables, or as available-for-sale non-derivative Valuation methods for the Company’s invested assets are described above. All fair value valuations are performed in accordance with IFRS 13 “Fair Value Measurement”. Disclosure of financial instruments carried at fair value with the three levels of the fair value hierarchy and the disclosure of the fair value for financial instruments not carried at fair value on the Consolidated Statements of Financial Position are presented in note 4. Fair value valuations are performed by the Company and by third-party service providers. When third-party service providers are engaged, the Company performs a variety of procedures to corroborate pricing information. These procedures may include, but are not limited to, inquiry and review of valuation techniques, inputs to the valuation and vendor controls reports. Cash and short-term securities comprise cash, current operating accounts, overnight bank and term deposits, and fixed income securities held for the purpose of meeting short-term cash commitments. Short-term securities are carried at fair value. Short-term securities are comprised of investments due to mature within one year of the date of purchase. Commercial paper and discount notes are classified as Level 2 because these securities are typically not actively traded. Net payments in transit and overdraft bank balances are included in other liabilities. Debt securities are carried at fair value. Debt securities are generally valued by independent pricing vendors using proprietary pricing models incorporating current market inputs for similar instruments with comparable terms and credit quality (matrix pricing). The significant inputs include, but are not limited to, yield curves, credit risks and spreads, measures of volatility and prepayment rates. These debt securities are classified as Level 2, but can be Level 3 if the significant inputs are market unobservable. Realized gains and losses on sale of debt securities and unrealized gains and losses on debt securities designated as FVTPL are recognized in investment income immediately. Unrealized gains and losses on AFS debt securities are recorded in OCI, with the exception of unrealized gains and losses on foreign currency translation which are included in income. Impairment losses on AFS debt securities are recognized in income on an individual security basis when there is objective evidence of impairment. Impairment is considered to have occurred, based on management’s judgment, when it is deemed probable that the Company will not be able to collect all amounts due according to the debt security’s contractual terms. Equities are comprised of common and preferred equities and are carried at fair value. Equities are generally classified as Level 1, as fair values are normally based on quoted market prices. Realized gains and losses on sale of equities and unrealized gains and losses on equities designated as FVTPL are recognized in investment income immediately. Unrealized gains and losses on AFS equities are recorded in OCI. Impairment losses on AFS equities are recognized in income on an individual security basis when there is objective evidence of impairment. Impairment is considered to have occurred when fair value has declined below cost by significant amounts or for prolonged periods of time. Judgment is applied in determining whether the decline is significant or prolonged. Mortgages are carried at amortized cost, and are classified as Level 3 for fair value purposes due to the lack of market observability of certain significant valuation inputs. Realized gains and losses are recorded in investment income immediately. Impairment losses are recorded on mortgages when there is no longer reasonable assurance as to the timely collection of the full amount of principal and interest and are measured based on the discounted value of expected future cash flows at the original effective interest rates inherent in the mortgage. Expected future cash flows of impaired mortgages are typically determined in reference to the fair value of collateral security underlying the mortgage, net of expected costs of realization and any applicable insurance recoveries. Significant judgment is applied in the determination of impairment including the timing and amount of future collections. The Company accounts for insured and uninsured mortgage securitizations as secured financing transactions since the criteria for sale accounting are not met. For these transactions, the Company continues to recognize the mortgages and records a liability in other liabilities for the amounts owed at maturity. Interest income from these mortgages and interest expense on the borrowings are recorded using the effective interest rate method. Private placements, which include corporate loans for which there is no active market, are carried at amortized cost and are generally classified as Level 2 for fair value disclosure purposes, but can be classified as Level 3 if significant inputs are market unobservable. Realized gains and losses are recorded in income immediately. Impairment losses are recorded on private placements when there is no longer assurance as to the timely collection of the full amount of principal and interest. Impairment is measured based on the discounted value of expected future cash flows at the original effective interest rate inherent in the loan. Significant judgment is applied in the determination of impairment including the timing and amount of future collections. Policy loans are carried at an amount equal to their unpaid balances and are classified as Level 2 for fair value disclosure purposes. Policy loans are fully collateralized by the cash surrender value of the underlying policies. Loans to Manulife Bank of Canada (“Manulife Bank” or “Bank”) clients are carried at unpaid principal balances less allowance for credit losses, if any, and are classified as Level 2 for fair value disclosure purposes. A loan to a Bank client is considered impaired when there is objective evidence of impairment as a result of one or more loss events that have occurred after initial recognition, with a negative impact on the estimated future cash flows of the loan. Once established, allowances for impairment of mortgages, private placements and loans to Bank clients are reversed only if the conditions that caused the impairment no longer exist. Reversals of impairment charges on AFS debt securities are only recognized in income to the extent that increases in fair value can be attributed to events subsequent to the impairment loss being recorded. Impairment losses for AFS equity instruments are not reversed through income. On disposition of an impaired asset, any allowance for impairment is released. In addition to impairments and provisions for loan losses (recoveries) reported in investment income, the measurement of insurance contract liabilities via investment return assumptions, includes expected future credit losses on fixed income investments. Refer to note 8(d). Interest income is recognized on debt securities, mortgages, private placements, policy loans and loans to Bank clients as it accrues and is calculated using the effective interest rate method. Premiums, discounts and transaction costs are amortized over the life of the underlying investment using the effective yield method for all debt securities as well as mortgages and private placements measured at amortized cost. The Company records purchases and sales of invested assets on a trade date basis, except for loans originated by the Company, which are recognized on a settlement date basis. Real estate consists of both own use and investment property. Own use property is carried at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is calculated based on the cost of an asset less its residual value and is recognized in income on a straight-line basis over the estimated useful life ranging from 30 to 60 years. Impairment losses are recorded in income to the extent the recoverable amount is less than the carrying amount. Where own use property is included in assets backing insurance contract liabilities, the fair value of the property is used in the valuation of insurance contract liabilities. Own use property is classified as Level 3 for fair value disclosure purposes. An investment property is a property held to earn rental income, for capital appreciation, or both. Investment properties are measured at fair value, with changes in fair value recognized in income. Fair value is determined using external appraisals that are based on the highest and best use of the property. The valuation techniques used include discounted cash flows, the direct capitalization method as well as comparable sales analysis and include both observable and unobservable inputs. Inputs include existing and assumed tenancies, market data from recent comparable transactions, future economic outlook and market risk assumptions, capitalization rates and internal rates of return. Investment properties are classified as Level 3 for fair value disclosure purposes. When a property changes from own use to investment property, any gain arising on the remeasurement of the property to fair value at the date of transfer is recognized in OCI, to the extent that it is not reversing a previous impairment loss. Reversals of impairment losses are recognized in income. Other invested assets include private equity and property investments held in power and infrastructure and timber, as well as in agriculture and oil and gas sectors. Private equity investments are accounted for as associates using the equity method (as described in note 1(d) above) or are classified as FVTPL or AFS and carried at fair value. Investments in oil and gas exploration and evaluation activities are measured on the cost basis using the “successful efforts” method. Timber and agriculture properties are measured at fair value with changes in fair value recognized in income, with the exception of buildings, equipment and bearer plants which are measured at amortized cost. The fair value of other invested assets is determined using a variety of valuation techniques as described in note 4. Other invested assets that are measured or disclosed at fair value are classified as Level 3. Other invested assets also include investments in leveraged leases, which are accounted for using the equity method. The carrying value under the equity method reflects the amortized cost of the lease receivable and related non-recourse |
Goodwill and intangible assets | (f) Goodwill and intangible assets Goodwill represents the difference between the purchase consideration of an acquired business and the Company’s proportionate share of the net identifiable assets acquired. It is initially recorded at cost and subsequently measured at cost less any accumulated impairment. Goodwill is tested for impairment at least annually and whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable at the cash generating unit (“CGU”) or group of CGUs level. The Company allocates goodwill to CGUs or groups of CGUs for the purpose of impairment testing based on the lowest level within the entity in which the goodwill is monitored for internal management purposes. The allocation is made to those CGUs or groups of CGUs that are expected to benefit from the business combination in which the goodwill arose. Any potential impairment of goodwill is identified by comparing the recoverable amount of a CGU or group of CGUs to its carrying value. Goodwill is reduced by the amount of deficiency, if any. If the deficiency exceeds the carrying amount of goodwill, the carrying values of the remaining assets in the CGU or group of CGUs are subject to being reduced by the excess on a pro-rata The recoverable amount of a CGU is the higher of the estimated fair value less costs to sell or the value-in-use value-in-use, pre-tax Intangible assets with indefinite useful lives include the John Hancock brand name and certain investment management contracts. The indefinite useful life assessment for brand is based on the brand name being protected in markets where branded products are sold by trademarks, which are renewable indefinitely, and for certain investment management contracts due to the ability to renew these contracts indefinitely. In addition, there are no legal, regulatory or contractual provisions that limit the useful lives of these intangible assets. An intangible asset with an indefinite useful life is not amortized but is subject to an annual impairment test which is performed more frequently if there is an indication that it is not recoverable. Intangible assets with finite useful lives include acquired distribution networks, customer relationships, capitalized software, certain investment management contracts and other contractual rights. Distribution networks, customer relationships, and other finite life intangible assets are amortized over their estimated useful lives, six to 68 years, either based on straight-line or in relation to other asset consumption metrics. Software intangible assets are amortized on a straight-line basis over their estimated useful lives of three to five years. Finite life intangible assets are assessed for indicators of impairment at each reporting period. If any indication of impairment exists, these assets are subject to an impairment test. |
Miscellaneous assets | (g) Miscellaneous assets Miscellaneous assets include assets held in a rabbi trust with respect to unfunded defined benefit obligations, defined benefit assets, if any (refer to note 1(o)), deferred acquisition costs and capital assets. Deferred acquisition costs are carried at cost less accumulated amortization. These costs are recognized over the period where redemption fees may be charged or over the period revenue is earned. Capital assets are carried at cost less accumulated amortization computed on a straight-line basis over their estimated useful lives, which vary from two to 10 years. |
Segregated funds | (h) Segregated funds The Company manages a number of segregated funds on behalf of policyholders. The investment returns on these funds are passed directly to policyholders. In some cases, the Company has provided guarantees associated with these funds. Segregated funds net assets are measured at fair value and primarily include investments in mutual funds, debt securities, equities, real estate, short-term investments and cash and cash equivalents. With respect to the consolidation requirement of IFRS, in assessing the Company’s degree of control over the underlying investments, the Company considers the scope of its decision-making rights, the rights held by other parties, its remuneration as an investment manager and its exposure to variability of returns. The Company has determined that it does not have control over the underlying investments as it acts as an agent on behalf of segregated fund policyholders. The methodology applied to determine the fair value of investments held in segregated funds is consistent with that applied to invested assets held by the general fund, as described above in note 1(e). Segregated funds liabilities are measured based on the value of the segregated funds net assets. Investment returns on segregated funds assets belong to policyholders and the Company does not bear the risk associated with these assets outside of guarantees offered on certain variable life and annuity products, for which the underlying investments are held within segregated funds. Accordingly, investment income earned by segregated funds and expenses incurred by segregated funds are offset and are not separately presented in the Consolidated Statements of Income. Fee income earned by the Company for managing the segregated funds is included in other revenue. Refer to note 22. Liabilities related to guarantees associated with certain segregated funds, as a result of certain variable life and annuity contracts, are recorded within the Company’s insurance contract liabilities. The Company holds assets supporting these guarantees which are recognized in invested assets according to their investment type. |
Insurance and investment contract liabilities | (i) Insurance and investment contract liabilities Most contracts issued by the Company are considered insurance, investment or service contracts. Contracts under which the Company accepts significant insurance risk from a policyholder are classified as insurance contracts in the Consolidated Financial Statements. A contract is considered to have significant insurance risk if, and only if, an insured event could cause an insurer to make significant additional payments in any scenario, excluding scenarios that lack commercial substance at the inception of the contract. Contracts under which the Company does not accept significant insurance risk are either classified as investment contracts or considered service contracts and are accounted for in accordance with IAS 39 “ ” Once a contract has been classified as an insurance contract it remains an insurance contract even if the insurance risk reduces significantly. Investment contracts can be reclassified as insurance contracts if insurance risk subsequently becomes significant. Insurance contract liabilities, net of reinsurance assets, represent the amount which, together with estimated future premiums and net investment income, will be sufficient to pay estimated future benefits, policyholder dividends and refunds, taxes (other than income taxes) and expenses on policies in-force. Investment contract liabilities include contracts issued to retail and institutional investors that do not contain significant insurance risk. Investment contract liabilities and deposits are measured at amortized cost or at fair value by election. The election reduces accounting mismatches between assets supporting these contracts and the related policy liabilities. Investment contract liabilities are derecognized when the contract expires, is discharged or is cancelled. Derivatives embedded within insurance contracts are separated if they are not considered to be closely related to the host insurance contract and do not meet the definition of an insurance contract. These embedded derivatives are presented separately in other assets or other liabilities and are measured at fair value with changes in fair value recognized in income. |
Reinsurance assets | (j) Reinsurance assets The Company uses reinsurance in the normal course of business to manage its risk exposure. Insurance ceded to a reinsurer does not relieve the Company from its obligations to policyholders. The Company remains liable to its policyholders for the portion reinsured to the extent that any reinsurer does not meet its obligations for reinsurance ceded to it under a reinsurance agreement. Reinsurance assets represent the benefit derived from reinsurance agreements in-force Gains or losses on reinsurance transactions are recognized in income immediately on the transaction date and are not amortized. Premiums ceded and claims reimbursed are presented on a gross basis on the Consolidated Statements of Income. Reinsurance assets are not offset against the related insurance contract liabilities and are presented separately on the Consolidated Statements of Financial Position. Refer to note 8(a). |
Other financial instruments accounted for as liabilities | (k) Other financial instruments accounted for as liabilities The Company issues a variety of other financial instruments classified as liabilities, including notes payable, term notes, senior notes, senior debentures, subordinated notes, surplus notes, subscription receipts and preferred shares. These financial liabilities are measured at amortized cost, with issuance costs deferred and amortized using the effective interest rate method. |
Income taxes | (l) Income taxes The provision for income taxes is calculated based on income tax laws and income tax rates substantively enacted as at the date of the Consolidated Statements of Financial Position. The income tax provision is comprised of current income taxes and deferred income taxes. Current and deferred income taxes relating to items recognized in OCI and directly in equity are similarly recognized in OCI and directly in equity, respectively. Current income taxes are amounts expected to be payable or recoverable as a result of operations in the current year and any adjustments to taxes payable in respect of previous years. Deferred income taxes are provided for using the liability method and result from temporary differences between the carrying values of assets and liabilities and their respective tax bases. Deferred income taxes are measured at the substantively enacted tax rates that are expected to be applied to temporary differences when they reverse. A deferred tax asset is recognized to the extent that future realization of the tax benefit is probable. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the tax benefit will be realized. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets and they relate to income taxes levied by the same tax authority on the same taxable entity. Deferred tax liabilities are recognized for all taxable temporary differences, except in respect of taxable temporary differences associated with investments in subsidiaries and associates, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. The Company records provisions for uncertain tax positions if it is probable that the Company will make a payment on tax positions as a result of examinations by tax authorities. These provisions are measured at the Company’s best estimate of the amount expected to be paid. Provisions are reversed to income in the period in which management assesses they are no longer required or determined by statute. The Company is subject to income tax laws in various jurisdictions. Tax laws are complex and potentially subject to different interpretations by the taxpayer and the relevant tax authority. The provision for income taxes and deferred income taxes represents management’s interpretation of the relevant tax laws and its estimate of current and future income tax implications of the transactions and events during the year. The Company may be required to change its provision for income taxes or deferred income tax balances when the ultimate deductibility of certain items is successfully challenged by taxing authorities, or if estimates used in determining the amount of deferred tax asset to recognize change significantly, or when receipt of new information indicates the need for adjustment in the amount of deferred income taxes to be recognized. Additionally, future events, such as changes in tax laws, tax regulations, or interpretations of such laws or regulations, could have an impact on the provision for income taxes, deferred tax balances and the effective tax rate. Any such changes could materially affect the amounts reported in the Consolidated Financial Statements in the period these changes occur. |
Foreign currency translation | (m) Foreign currency translation Items included in the financial statements of each of the Company’s subsidiaries are measured by each subsidiary using the currency of the primary economic environment in which the entity operates (the “functional currency”). Transactions in a foreign currency are translated to the functional currency at the exchange rate prevailing at the date of the transaction. Assets and liabilities denominated in foreign currencies are translated to the functional currency at the exchange rate in effect at the reporting date. Revenue and expenses denominated in foreign currencies are translated at the average exchange rate prevailing during the quarter reported. Exchange gains and losses are recognized in income with the exception of translation of net investments in foreign operations and the results of hedging these positions. These foreign exchange gains and losses are recognized in OCI until such time that the foreign operation is disposed of or control or significant influence over it is lost. |
Stock-based compensation | (n) Stock-based compensation The Company provides stock-based compensation to certain employees and directors as described in note 15. Compensation expense of equity instruments is accrued based on the best estimate of the number of instruments expected to vest, with revisions made to that estimate if subsequent information indicates that actual forfeitures are likely to differ from initial estimates, unless forfeitures are due to market-based conditions. Stock options are expensed with a corresponding increase in contributed surplus. Restricted share units and deferred share units are expensed with a corresponding liability accrued based on the market value of MFC’s common shares at the end of each quarter. Performance share units are expensed with a corresponding liability accrued based on specific performance conditions and the market value of MFC’s common shares at the end of each quarter. The change in the value of the awards resulting from changes in the market value of MFC’s common shares or changes in the specific performance conditions and credited dividends is recognized in income, offset by the impact of total return swaps used to manage the variability of the related liability. Stock-based compensation cost is recognized over the applicable vesting period, except if the employee is eligible to retire at the time of grant or will be eligible to retire during the vesting period. Compensation cost, attributable to stock options, restricted share units, and performance share units granted to employees who are eligible to retire on the grant date or who will become eligible to retire during the vesting period, is recognized at the grant date or over the period from the grant date to the date of retirement eligibility, respectively. The Company’s contributions to the Global Share Ownership Plan (“GSOP”) (refer to note 15(d)), are expensed as incurred. Under the GSOP, subject to certain conditions, the Company will match a percentage of an employee’s eligible contributions to certain maximums. All contributions are used by the plan’s trustee to purchase MFC common shares in the open market. |
Employee future benefits | (o) Employee future benefits The Company maintains defined contribution and defined benefit pension plans and other post-employment plans for employees and agents including registered (tax qualified) pension plans that are typically funded as well as supplemental non-registered (non-qualified) The Company’s obligation in respect of defined benefit pension and other post-employment benefits is calculated for each plan as the estimated present value of future benefits that eligible employees have earned in return for their service up to the reporting date using the projected benefit method. The discount rate used is based on the yield, as at the reporting date, of high quality corporate debt securities that have approximately the same term as the obligations and that are denominated in the same currency in which the benefits are expected to be paid. To determine the Company’s net defined benefit asset or liability, the fair value of plan assets is deducted from the defined benefit obligations. When this calculation results in a surplus, the asset that can be recognized is limited to the present value of future economic benefit available in the form of future refunds from the plan or reductions in future contributions to the plan (the asset limit). Defined benefit assets are included in other assets and defined benefit liabilities are included in other liabilities. Changes in the net defined benefit asset or liability due to re-measurement re-measurement The cost of defined benefit pension plans is recognized over the employee’s years of service to retirement while the cost of retiree welfare plans is recognized over the employee’s years of service to their date of full eligibility. The net benefit cost for the year is recorded in income and is calculated as the sum of the service cost in respect of the fiscal year, the net interest income or expense and any applicable administration expenses, plus past service costs or credits resulting from plan amendments or curtailments. The net interest income or expense is determined by applying the discount rate to the net defined benefit asset or liability. The current year cost of disability welfare plans is the year-over-year change in the defined benefit obligation, including any actuarial gains or losses. The cost of defined contribution plans is the contribution provided by the Company and is recorded in income in the periods during which services are rendered by employees. |
Derivative and hedging instruments | (p) Derivative and hedging instruments The Company uses derivative financial instruments (“derivatives”) including swaps, forward and futures agreements, and options to manage current and anticipated exposures to changes in interest rates, foreign exchange rates, commodity prices and equity market prices, and to replicate permissible investments. Derivatives embedded in other financial instruments (“host instruments”) are separately recorded as derivatives when their economic characteristics and risks are not closely related to those of the host instrument, the terms of the embedded derivative are the same as those of a standalone derivative and the host instrument itself is not recorded at FVTPL. Derivatives are recorded at fair value. Derivatives with unrealized gains are reported as derivative assets and derivatives with unrealized losses are reported as derivative liabilities. A determination is made for each derivative as to whether to apply hedge accounting. Where hedge accounting is not applied, changes in the fair value of derivatives are recorded in investment income. Refer to note 4(c). Where the Company has elected to apply hedge accounting, a hedging relationship is designated and documented at inception. Hedge effectiveness is evaluated at inception and throughout the term of the hedge and hedge accounting is only applied when the Company expects that the hedging relationship will be highly effective in achieving offsetting changes in fair value or changes in cash flows attributable to the risk being hedged. The assessment of hedge effectiveness is performed at the end of each reporting period both prospectively and retrospectively. When it is determined that a hedging relationship is no longer effective, or the hedging instrument or the hedged item has been sold or terminated, the Company discontinues hedge accounting prospectively. In such cases, if the derivatives are not sold or terminated, any subsequent changes in fair value of the derivatives are recognized in investment income. For derivatives that are designated as hedging instruments, changes in fair value are recognized according to the nature of the risks being hedged, as discussed below. In a fair value hedging relationship, changes in fair value of the hedging instruments are recorded in investment income, offsetting changes in fair value of the hedged items, which would otherwise not be carried at fair value. Hedge ineffectiveness is recognized in investment income and arises from differences between changes in the fair values of hedging instruments and hedged items. When hedge accounting is discontinued, the carrying value of the hedged item is no longer adjusted and the cumulative fair value adjustments are amortized to investment income over the remaining term of the hedged item unless the hedged item is sold, at which time the balance is recognized immediately in investment income. In a cash flow hedging relationship, the effective portion of the change in the fair value of the hedging instrument is recorded in OCI while the ineffective portion is recognized in investment income. Gains and losses in accumulated other comprehensive income (“AOCI”) are recognized in income during the same periods as the variability in the hedged cash flows or the hedged forecasted transactions are recognized in income. The reclassifications from accumulated other comprehensive income (“AOCI”) are made to investment income, with the exception of total return swaps that hedge restricted share units, which are reclassified to general expenses. Gains and losses on cash flow hedges in AOCI are reclassified immediately to investment income when the hedged item is sold or the forecasted transaction is no longer expected to occur. When a hedge is discontinued, but the hedged forecasted transaction remains highly probable to occur, the amounts in AOCI are reclassified to investment income in the periods during which variability in the cash flows hedged or the hedged forecasted transaction is recognized in income. In a net investment in foreign operations hedging relationship, the gains and losses relating to the effective portion of the hedge are recorded in OCI. Gains and losses in AOCI are recognized in income during the periods when gains or losses on the underlying hedged net investment in foreign operations are recognized in income. |
Premium income and related expenses | (q) Premium income and related expenses Gross premiums for all types of insurance contracts, and contracts with limited mortality or morbidity risk, are generally recognized as revenue when due. Premiums are reported gross of reinsurance ceded (refer to note 8). Revenue on service contracts is recognized as services are rendered. |
Changes in accounting policy | (a) Changes in accounting policy (I) Annual improvements to IFRS Standards 2014 – 2016 Cycle Effective January 1, 2017, the Company adopted certain amendments issued within the Annual Improvements to IFRS Standards 2014-2016 Cycle, as issued by the IASB in December 2016. There are various minor amendments which are effective in 2017, with other amendments being effective January 1, 2018. The currently effective amendments were applied retrospectively. Adoption of these amendments did not have a significant impact on the Company’s Consolidated Financial Statements. (II) Amendments to IAS 12 “Income Taxes” Effective January 1, 2017, the Company adopted the amendments issued in January 2016 to IAS 12 “Income Taxes”. These amendments were applied retrospectively. The amendments clarify recognition of deferred tax assets relating to unrealized losses on debt instruments measured at fair value. A deductible temporary difference arises when the carrying amount of the debt instrument measured at fair value is less than the cost for tax purposes, irrespective of whether the debt instrument is held for sale or held to maturity. The recognition of the deferred tax asset that arises from this deductible temporary difference is considered in combination with other deferred taxes applying local tax law restrictions where applicable. In addition, when estimating future taxable profits, consideration can be given to recovering more than the asset’s carrying amount where probable. Adoption of these amendments did not have a significant impact on the Company’s Consolidated Financial Statements. (III) Amendments to IAS 7 “Statement of Cash Flows” Effective January 1, 2017, the Company adopted the amendments issued in January 2016 to IAS 7 “Statement of Cash Flows”. These amendments were applied prospectively. These amendments require companies to provide information about changes in their financing liabilities. Adoption of these amendments did not have a significant impact on the Company’s Consolidated Financial Statements. |
Future accounting and reporting changes | (b) Future accounting and reporting changes (I) IFRS 15 “Revenue from Contracts with Customers” IFRS 15 “Revenue from Contracts with Customers” was issued in May 2014, and replaces IAS 11 “Construction Contracts” IAS 18 “Revenue” and several interpretations. Amendments to IFRS 15 were issued in April 2016. IFRS 15 as amended is effective for annual periods beginning on or after January 1, 2018. The Company will adopt IFRS 15 effective January 1, 2018, using the modified retrospective method with no restatement of comparative information. IFRS 15 clarifies revenue recognition principles, provides a robust framework for recognizing revenue and cash flows arising from contracts with customers and enhances qualitative and quantitative disclosure requirements. IFRS 15 does not apply to insurance contracts, financial instruments and lease contracts. The Company’s service arrangements are generally satisfied over time, with revenue measured and collected from customers within a short term, as services are rendered. Adoption of IFRS 15 is not expected to have a significant impact on the Company’s Consolidated Financial Statements. (II) IFRS Interpretation Committee (“IFRIC”) Interpretation 22 “Foreign Currency Transactions and Advance Consideration” IFRIC 22 “Foreign Currency Transactions and Advance Consideration” was issued in December 2016 and is effective for annual periods beginning on or after January 1, 2018 and may be applied retrospectively or prospectively. IFRIC 22 addresses which foreign exchange rate to use to measure a foreign currency transaction when advance payments are made or received and non-monetary non-monetary (III) Amendments to IFRS 2 “Share-Based Payment” Amendments to IFRS 2 “Share-Based Payment” were issued in June 2016 and are effective for annual periods beginning on or after January 1, 2018, to be applied prospectively. The amendments clarify the effects of vesting and non-vesting (IV) IFRS 9 “Financial Instruments” IFRS 9 “Financial Instruments” was issued in November 2009 and amended in October 2010, November 2013 and July 2014, and is effective for years beginning on or after January 1, 2018, to be applied retrospectively, or on a modified retrospective basis. Additionally, the IASB issued amendments in October 2017 that are effective for annual periods beginning on or after January 1, 2019. The standard is intended to replace IAS 39 “Financial Instruments: Recognition and Measurement”. The project has been divided into three phases: classification and measurement, impairment of financial assets, and hedge accounting. IFRS 9’s current classification and measurement methodology provides that financial assets are measured at either amortized cost or fair value on the basis of the entity’s business model for managing the financial assets and the contractual cash flow characteristics of the financial assets. The classification and measurement for financial liabilities remains generally unchanged; however, for a financial liability designated as at fair value through profit or loss, revisions have been made in the accounting for changes in fair value attributable to changes in the credit risk of that liability. Gains or losses caused by changes in an entity’s own credit risk on such liabilities are no longer recognized in profit or loss but instead are reflected in OCI. Revisions to hedge accounting were issued in November 2013 as part of the overall IFRS 9 project. The amendment introduces a new hedge accounting model, together with corresponding disclosures about risk management activities for those applying hedge accounting. The new model represents a substantial overhaul of hedge accounting that will enable entities to better reflect their risk management activities in their financial statements. Revisions issued in July 2014 replace the existing incurred loss model used for measuring the allowance for credit losses with an expected credit loss model. Changes were also made to the existing classification and measurement model designed primarily to address specific application issues raised by early adopters of the standard. The revision also addresses the income statement accounting mismatches and short-term volatility issues which have been identified as a result of the insurance contracts project. Revisions issued in October 2017 allow financial assets to be measured at amortized cost or fair value through OCI even if the lender is required to pay a reasonable compensation in the event of an early termination of the contract by the borrower (also referred to as prepayment features with negative compensation). The Company expects to defer IFRS 9 until January 1, 2021 as allowed under the amendments to IFRS 4 “Insurance Contracts” outlined below. The Company is assessing the impact of this standard. (V) Amendments to IFRS 4 “Insurance Contracts” Amendments to IFRS 4 “Insurance Contracts” were issued in September 2016, which are effective for annual periods beginning on or after January 1, 2018. The amendments introduce two approaches to address concerns about the differing effective dates of IFRS 9 “Financial Instruments” and IFRS 17 “Insurance Contracts”: the overlay approach and the deferral approach. The overlay approach provides an option for all issuers of insurance contracts to adjust profit or loss for eligible financial assets by removing any additional accounting volatility that may arise from applying IFRS 9 before IFRS 17 is implemented. The deferral approach provides companies whose activities are predominantly related to insurance an optional temporary exemption from applying IFRS 9 until January 1, 2021. The Company qualifies for the exemption and intends to defer IFRS 9 until January 1, 2021. (VI) IFRS 17 “Insurance Contracts” IFRS 17 was issued in May 2017 and is effective for years beginning on January 1, 2021, and to be applied retrospectively. If full retrospective application to a group of contracts is impractical, the modified retrospective or fair value methods may be used. The standard will replace IFRS 4 “Insurance Contracts” and will materially change the recognition and measurement of insurance contracts and the corresponding presentation and disclosures in the Company’s Financial Statements and MD&A. The Company is assessing the implications of this standard and expects that it will have a significant impact on the Company’s Consolidated Financial Statements. In addition, in certain jurisdictions, including Canada, it could have a material effect on tax and regulatory capital positions that are dependent upon IFRS accounting values. For life insurance companies, such as Manulife, that have long-duration products and/or regulatory and tax regimes dependent upon IFRS accounting values, the Company believes that an effective date of January 1, 2021 is aggressive. Therefore, while the Company’s implementation project is well underway, the Company and others in the life insurance industry are encouraging the IASB to defer the effective date. (VII) IFRS 16 “Leases” IFRS 16 “Leases” was issued in January 2016 and is effective for years beginning on or after January 1, 2019, to be applied retrospectively or on a modified retrospective basis. It will replace IAS 17 “Leases” and IFRIC 4 “Determining whether an arrangement contains a lease”. IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract, the customer (“lessee”) and the supplier (“lessor”). The standard brings most leases on-balance on-balance right-of-use (VIII) IFRS Interpretation Committee (“IFRIC”) Interpretation 23 “Uncertainty over Income Tax Treatments” IFRIC 23 “Uncertainty over Income Tax Treatments” was issued in June 2017 and is effective for years beginning on or after January 1, 2019, to be applied retrospectively. IFRIC 23 provides guidance on applying the recognition and measurement requirements in IAS 12 when there is uncertainty over income tax treatments including whether uncertain tax treatments should be considered together or separately based on which approach better predicts resolution of the uncertainty. Adoption of IFRIC 23 is not expected to have a significant impact on the Company’s Consolidated Financial Statements. (IX) Amendments to IAS 28 “Investments in Associates and Joint Ventures” Amendments to IAS 28 “Investments in Associates and Joint Ventures” were issued in October 2017 and are effective for annual periods beginning on or after January 1, 2019, to be applied retrospectively. The amendments clarify that an entity applies IFRS 9 “Financial Instruments” to financial interests in an associate or joint venture to which the equity method is not applied. IAS 39 is being applied to these interests until IFRS 9 is adopted in 2021. Adoption of these amendments is not expected to have a significant impact on the Company’s Consolidated Financial Statements. (X) Annual Improvements 2015 – 2017 Cycle Annual Improvements 2015 – 2017 Cycle was issued in December 2017 and is effective for years beginning on or after January 1, 2019. The IASB issued three minor amendments to different standards as part of the Annual Improvements process, with the amendments to be applied prospectively. Adoption of these amendments is not expected to have significant impact on the Company’s Consolidated Financial Statements. |
Invested Assets and Investmen33
Invested Assets and Investment Income (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Schedule of Carrying Values and Fair Values of Invested Assets | (a) Carrying values and fair values of invested assets As at December 31, 2017 FVTPL (1) AFS (2) Other (3) Total carrying Total fair (9) Cash and short-term securities (4) $ 439 $ 11,429 $ 4,097 $ 15,965 $ 15,965 Debt securities (5) Canadian government and agency 17,886 4,892 – 22,778 22,778 U.S. government and agency 12,497 13,472 – 25,969 25,969 Other government and agency 16,838 2,988 – 19,826 19,826 Corporate 96,785 5,366 – 102,151 102,151 Mortgage/asset-backed securities 3,018 258 – 3,276 3,276 Public equities 18,473 3,072 – 21,545 21,545 Mortgages – – 44,742 44,742 46,065 Private placements – – 32,132 32,132 34,581 Policy loans – – 5,808 5,808 5,808 Loans to Bank clients – – 1,737 1,737 1,742 Real estate Own use property (6) – – 1,281 1,281 2,448 Investment property – – 12,529 12,529 12,529 Other invested assets Alternative long-duration assets (7) 12,018 88 8,624 20,730 21,053 Various other (8) 142 – 3,611 3,753 3,752 Total invested assets $ 178,096 $ 41,565 $ 114,561 $ 334,222 $ 339,488 As at December 31, 2016 FVTPL (1) AFS (2) Other (3) Total carrying Total fair (9) Cash and short-term securities (4) $ 269 $ 11,705 $ 3,177 $ 15,151 $ 15,151 Debt securities (5) Canadian government and agency 18,030 6,715 – 24,745 24,745 U.S. government and agency 13,971 13,333 – 27,304 27,304 Other government and agency 18,629 2,312 – 20,941 20,941 Corporate 87,374 5,041 – 92,415 92,415 Mortgage/asset-backed securities 2,886 331 – 3,217 3,217 Public equities 16,531 2,965 – 19,496 19,496 Mortgages – – 44,193 44,193 45,665 Private placements – – 29,729 29,729 31,459 Policy loans – – 6,041 6,041 6,041 Loans to Bank clients – – 1,745 1,745 1,746 Real estate Own use property (6) – – 1,376 1,376 2,524 Investment property – – 12,756 12,756 12,756 Other invested assets Alternative long-duration assets (7) 10,707 96 8,048 18,851 19,193 Various other (8) 164 – 3,745 3,909 3,910 Total invested assets $ 168,561 $ 42,498 $ 110,810 $ 321,869 $ 326,563 (1) The FVTPL classification was elected for securities backing insurance contract liabilities to substantially reduce any accounting mismatch arising from changes in the fair value of these assets and changes in the value of the related insurance contract liabilities. If this election had not been made and instead the available-for-sale (2) Securities that are designated as AFS are not actively traded by the Company but sales do occur as circumstances warrant. Such sales result in a reclassification of any accumulated unrealized gain (loss) in AOCI to net income as a realized gain (loss). (3) Primarily includes assets classified as loans and carried at amortized cost, own use properties, investment properties, equity method accounted investments, oil and gas investments, and leveraged leases. Refer to note 1(e) for further details regarding accounting policy. (4) Includes short-term securities with maturities of less than one year at acquisition amounting to $2,737 (2016 – $3,111), cash equivalents with maturities of less than 90 days at acquisition amounting to $9,131 (2016 – $8,863) and cash of $4,097 (2016 – $3,177). (5) Debt securities include securities which were acquired with maturities of less than one year and less than 90 days of $1,768 and $161, respectively (2016 – $893 and $192, respectively). (6) Includes accumulated depreciation of $389 (2016 – $404). (7) Alternative long-duration assets (“ALDA”) include investments in private equity of $4,959, power and infrastructure of $7,355, oil and gas of $2,813, timber and agriculture of $5,033 and various other invested assets of $570 (2016 – $4,619, $6,679, $2,093, $4,972 and $488, respectively). (8) Includes $3,273 (2016 – $3,369) of leveraged leases. Refer to note 1(e) regarding accounting policy. (9) The methodologies used in determining fair values of invested assets are described in note 1 and note 4(g). |
Schedule of Other Invested Assets Include Investments in Associates and Joint Ventures Accounted Using Equity Method | Other invested assets include investments in associates and joint ventures which are accounted for using the equity method of accounting as follows. 2017 2016 As at December 31, Carrying % of total Carrying % of total Leveraged leases $ 3,273 56 $ 3,369 58 Timber and agriculture 451 8 430 8 Real estate 498 9 419 7 Other 1,535 27 1,562 27 Total $ 5,757 100 $ 5,780 100 |
Schedule of Investment Income | (c) Investment income For the year ended December 31, 2017 FVTPL AFS Other (1) Total Yields (2) Cash and short-term securities 0.9% Interest income $ 7 $ 153 $ – $ 160 Gains (losses) (3) 22 (47 ) – (25 ) Debt securities 5.4% Interest income 5,102 577 – 5,679 Gains (losses) (3) 3,690 (205 ) – 3,485 Recovery (impairment loss), net 16 (1 ) – 15 Public equities 16.6% Dividend income 524 79 – 603 Gains (3) 2,372 226 – 2,598 Impairment loss – (14 ) – (14 ) Mortgages 3.9% Interest income – – 1,685 1,685 Gains (3) – – 69 69 Provision, net – – (32 ) (32 ) Private placements 5.3% Interest income – – 1,553 1,553 Gains (3) – – 43 43 Impairment loss, net – – 10 10 Policy loans – – 365 365 6.1% Loans to Bank clients 4.0% Interest income – – 68 68 Real estate 6.2% Rental income, net of depreciation (4) – – 517 517 Gains (3) – – 341 341 Impairment loss – – (4 ) (4 ) Derivatives n/a Interest income, net 809 – 84 893 Gains (losses) (3) (1,029 ) – 84 (945 ) Other invested assets 10.3% Interest income – – 174 174 Oil and gas, timber, agriculture and other income – – 1,690 1,690 Gains (losses) (3) 441 (7 ) 50 484 Impairment loss, net – – (45 ) (45 ) Total investment income $ 11,954 $ 761 $ 6,652 $ 19,367 6.0% Investment income Interest income $ 5,918 $ 730 $ 3,929 $ 10,577 3.3% Dividend, rental and other income 524 79 2,207 2,810 0.9% Impairments, provisions and recoveries, net 16 (15 ) (71 ) (70 ) 0.0% Other 460 (51 ) (77 ) 332 0.1% 6,918 743 5,988 13,649 Realized and unrealized gains (losses) on assets supporting insurance and investment contract liabilities and on macro equity hedges Debt securities 3,694 (8 ) – 3,686 1.1% Public equities 2,200 35 – 2,235 0.7% Mortgages – – 69 69 0.0% Private placements – – 40 40 0.0% Real estate – – 350 350 0.1% Other invested assets 329 (9 ) 121 441 0.1% Derivatives, including macro equity hedging program (1,187 ) – 84 (1,103 ) (0.3% ) 5,036 18 664 5,718 Total investment income $ 11,954 $ 761 $ 6,652 $ 19,367 6.0% For the year ended December 31, 2016 FVTPL AFS Other (1) Total Yields (2) Cash and short-term securities 0.7% Interest income $ 7 $ 117 $ – $ 124 Gains (losses) (3) 18 (18 ) – – Debt securities 4.7% Interest income 5,051 588 – 5,639 Gains (3) 1,658 548 – 2,206 Recovery (impairment loss), net (18 ) – – (18 ) Public equities 10.6% Dividend income 534 58 – 592 Gains (3) 1,008 201 – 1,209 Impairment loss – (48 ) – (48 ) Mortgages 4.1% Interest income – – 1,667 1,667 Gains (losses) (3) – – 81 81 Provision, net – – (7 ) (7 ) Private placements 5.4% Interest income – – 1,494 1,494 Gains (3) – – 17 17 Impairment loss, net – – (50 ) (50 ) Policy loans – – 358 358 6.1% Loans to Bank clients 3.9% Interest income – – 68 68 Real estate 4.9% Rental income, net of depreciation (4) – – 523 523 Gains (3) – – 160 160 Derivatives n/a Interest income, net 1,115 – (33 ) 1,082 Losses (3) (2,597 ) – – (2,597 ) Other invested assets 10.3% Interest income – – 103 103 Oil and gas, timber, agriculture and other income – – 1,162 1,162 Gains (3) 634 1 207 842 Impairment loss, net – – (83 ) (83 ) Total investment income $ 7,410 $ 1,447 $ 5,667 $ 14,524 4.7% Investment income Interest income $ 6,173 $ 703 $ 3,657 $ 10,533 3.4% Dividend, rental and other income 534 58 1,685 2,277 0.7% Impairments and provisions (18 ) (48 ) (140 ) (206 ) (0.1% ) Other (6 ) 707 85 786 0.2% 6,683 1,420 5,287 13,390 Realized and unrealized gains (losses) on assets supporting insurance and investment contract liabilities and on macro equity hedges Debt securities 1,657 5 – 1,662 0.5% Public equities 963 22 – 985 0.3% Mortgages – – 80 80 0.0% Private placements – – 12 12 0.0% Real estate – – 128 128 0.0% Other invested assets 688 – 160 848 0.3% Derivatives, including macro equity hedging program (2,581 ) – – (2,581 ) (0.8% ) 727 27 380 1,134 Total investment income $ 7,410 $ 1,447 $ 5,667 $ 14,524 4.7% (1) Primarily includes loans carried at amortized cost, own use properties, investment properties, derivative and hedging instruments in cash flow hedging relationships, equity method accounted investments, oil and gas investments, and leveraged leases. (2) Yields are based on income and are calculated using the geometric average of the carrying value of assets held during the reporting year. (3) Includes net realized gains (losses) as well as net unrealized gains (losses) for financial instruments at FVTPL, real estate investment properties, and other invested assets measured at fair value. Also includes net realized gains (losses) for financial instruments at AFS and other invested assets carried at amortized cost. (4) Rental income from investment properties is net of direct operating expenses. |
Summary of Total Investment Expenses | The following table presents the Company’s total investment expenses. For the years ended December 31, 2017 2016 Related to invested assets $ 625 $ 581 Related to segregated, mutual and other funds 1,048 1,065 Total investment expenses $ 1,673 $ 1,646 |
Summary of Rental Income and Direct Operating Expenses of Investment Properties | The following table presents rental income and direct operating expenses of investment properties. For the years ended December 31, 2017 2016 Rental income from investment properties $ 1,120 $ 1,204 Direct operating expenses of investment properties that generated rental income (694 ) (764 ) Total $ 426 $ 440 |
Summary of Carrying Amount of Securitized Assets and Secured Borrowing Liabilities | The following table presents the carrying amount of securitized assets and secured borrowing liabilities. As at December 31, 2017 Securitized assets Securitization program Securitized Restricted cash and Total Secured borrowing (2) HELOC securitization (1) $ 2,024 $ 8 $ 2,032 $ 2,000 CMB securitization 1,480 – 1,480 1,523 Total $ 3,504 $ 8 $ 3,512 $ 3,523 As at December 31, 2016 Securitized assets Securitization program Securitized Restricted cash and Total Secured borrowing (2) HELOC securitization (1) $ 1,762 $ 8 $ 1,770 $ 1,750 CMB securitization 1,018 – 1,018 1,032 Total $ 2,780 $ 8 $ 2,788 $ 2,782 (1) Manulife Bank, a MFC subsidiary, securitizes a portion of its HELOC receivables through Platinum Canadian Mortgage Trust (“PCMT”), and Platinum Canadian Mortgage Trust II (“PCMT II”). PCMT funds the purchase of the co-ownership co-ownership (2) Secured borrowing liabilities primarily comprise of Series 2011-1 2016-1 |
Summary of Invested Assets and Segregated Funds Net Assets, Measured at Fair Value | The following table presents fair values and the fair value hierarchy of invested assets and segregated funds net assets measured at fair value in the Consolidated Statements of Financial Position. As at December 31, 2017 Total fair Level 1 Level 2 Level 3 Cash and short-term securities FVTPL $ 439 $ – $ 439 $ – AFS 11,429 – 11,429 – Other 4,097 4,097 – – Debt securities FVTPL Canadian government and agency 17,886 – 17,886 – U.S. government and agency 12,497 – 12,497 – Other government and agency 16,838 – 16,599 239 Corporate 96,785 2 96,073 710 Residential mortgage/asset-backed securities 8 – 7 1 Commercial mortgage/asset-backed securities 1,099 – 1,099 – Other securitized assets 1,911 – 1,886 25 AFS Canadian government and agency 4,892 – 4,892 – U.S. government and agency 13,472 – 13,472 – Other government and agency 2,988 – 2,941 47 Corporate 5,366 – 5,278 88 Residential mortgage/asset-backed securities 37 – 37 – Commercial mortgage/asset-backed securities 138 – 138 – Other securitized assets 83 – 82 1 Public equities FVTPL 18,473 18,470 – 3 AFS 3,072 3,069 3 – Real estate – investment property (1) 12,529 – – 12,529 Other invested assets (2) 16,203 – – 16,203 Segregated funds net assets (3) 324,307 286,490 33,562 4,255 Total $ 564,549 $ 312,128 $ 218,320 $ 34,101 As at December 31, 2016 Total fair Level 1 Level 2 Level 3 Cash and short-term securities FVTPL $ 269 $ – $ 269 $ – AFS 11,705 – 11,705 – Other 3,177 3,177 – – Debt securities FVTPL Canadian government and agency 18,030 – 18,030 – U.S. government and agency 13,971 – 13,971 – Other government and agency 18,629 – 18,357 272 Corporate 87,374 2 86,721 651 Residential mortgage/asset-backed securities 10 – 8 2 Commercial mortgage/asset-backed securities 680 – 674 6 Other securitized assets 2,196 – 2,161 35 AFS Canadian government and agency 6,715 – 6,715 – U.S. government and agency 13,333 – 13,333 – Other government and agency 2,312 – 2,261 51 Corporate 5,041 – 4,967 74 Residential mortgage/asset-backed securities 65 – 64 1 Commercial mortgage/asset-backed securities 123 – 121 2 Other securitized assets 143 – 141 2 Public equities FVTPL 16,531 16,524 – 7 AFS 2,965 2,963 2 – Real estate – investment property (1) 12,756 – – 12,756 Other invested assets (2) 14,849 – – 14,849 Segregated funds net assets (3) 315,177 278,066 32,537 4,574 Total $ 546,051 $ 300,732 $ 212,037 $ 33,282 (1) For investment properties, the significant unobservable inputs are capitalization rates (ranging from 3.50% to 9.00% during the year and ranging from 3.75% to 9.75% during the year 2016) and terminal capitalization rates (ranging from 4.0% to 9.25% during the year and ranging from 4.1% to 10.0% during the year 2016). Holding other factors constant, a lower capitalization or terminal capitalization rate will tend to increase the fair value of an investment property. Changes in fair value based on variations in unobservable inputs generally cannot be extrapolated because the relationship between the directional changes of each input is not usually linear. (2) Other invested assets measured at fair value are held primarily in power and infrastructure and timber sectors. The significant inputs used in the valuation of the Company’s power and infrastructure investments are primarily future distributable cash flows, terminal values and discount rates. Holding other factors constant, an increase to future distributable cash flows or terminal values would tend to increase the fair value of a power and infrastructure investment, while an increase in the discount rate would have the opposite effect. Discount rates during the year ranged from 9.20% to 16.5% (2016 – ranged from 9.63% to 16.0%). Disclosure of distributable cash flow and terminal value ranges are not meaningful given the disparity in estimates by project. The significant inputs used in the valuation of the Company’s investments in timberland are timber prices and discount rates. Holding other factors constant, an increase to timber prices would tend to increase the fair value of a timberland investment, while an increase in the discount rates would have the opposite effect. Discount rates during the year ranged from 5.0% to 7.5% (2016 – ranged from 5.0% to 7.5%). A range of prices for timber is not meaningful as the market price depends on factors such as property location and proximity to markets and export yards. (3) Segregated funds net assets are measured at fair value. The Company’s Level 3 segregated funds assets are predominantly invested in timberland properties valued as described above. |
Summary of Fair Values Categorized by the Fair Value Hierarchy | For invested assets not measured at fair value in the Consolidated Statements of Financial Position, the following table presents their fair values categorized by the fair value hierarchy. As at December 31, 2017 Carrying Fair value Level 1 Level 2 Level 3 Mortgages (1) $ 44,742 $ 46,065 $ – $ – $ 46,065 Private placements (2) 32,132 34,581 – 28,514 6,067 Policy loans (3) 5,808 5,808 – 5,808 – Loans to Bank clients (4) 1,737 1,742 – 1,742 – Real estate – own use property (5) 1,281 2,448 – – 2,448 Other invested assets (6) 8,280 8,602 88 – 8,514 Total invested assets disclosed at fair value $ 93,980 $ 99,246 $ 88 $ 36,064 $ 63,094 As at December 31, 2016 Carrying Fair value Level 1 Level 2 Level 3 Mortgages (1) $ 44,193 $ 45,665 $ – $ – $ 45,665 Private placements (2) 29,729 31,459 – 26,073 5,386 Policy loans (3) 6,041 6,041 – 6,041 – Loans to Bank clients (4) 1,745 1,746 – 1,746 – Real estate – own use property (5) 1,376 2,524 – – 2,524 Other invested assets (6) 7,911 8,254 54 – 8,200 Total invested assets disclosed at fair value $ 90,995 $ 95,689 $ 54 $ 33,860 $ 61,775 (1) Fair value of commercial mortgages is determined through an internal valuation methodology using both observable and unobservable inputs. Unobservable inputs include credit assumptions and liquidity spread adjustments. Fair value of fixed-rate residential mortgages is determined using the discounted cash flow method. Inputs used for valuation are primarily comprised of prevailing interest rates and prepayment rates, if applicable. Fair value of variable-rate residential mortgages is assumed to be their carrying value. (2) Fair value of private placements is determined through an internal valuation methodology using both observable and unobservable inputs. Unobservable inputs include credit assumptions and liquidity spread adjustments. Private placements are classified within Level 2 unless the liquidity adjustment constitutes a significant price impact, in which case the securities are classified as Level 3. (3) Fair value of policy loans is equal to their unpaid principal balances. (4) Fair value of fixed-rate loans to Bank clients is determined using the discounted cash flow method. Inputs used for valuation are primarily comprised of current interest rates. Fair value of variable-rate loans is assumed to be their carrying value. (5) Fair value of own use real estate and the fair value hierarchy are determined in accordance with the methodologies described for real estate – investment property in note 1. (6) Primarily include leveraged leases, oil and gas properties and equity method accounted other invested assets. Fair value of leveraged leases is disclosed at their carrying values as fair value is not routinely calculated on these investments. Fair value for oil and gas properties is determined using external appraisals based on discounted cash flow methodology. Inputs used in valuation are primarily comprised of forecasted price curves, planned production, as well as capital expenditures, and operating costs. Fair value of equity method accounted other invested assets is determined using a variety of valuation techniques including discounted cash flows and market comparable approaches. Inputs vary based on the specific investment. |
Summary of Invested Assets and Segregated Funds Net Assets Measured at Fair Value Using Significant Unobservable Inputs (Level 3) | The following table presents a roll forward of invested assets and segregated funds net assets measured at fair value using significant unobservable inputs (Level 3) for the years ended December 31, 2017 and 2016. For the year ended Balance, Net (1) Net (2) Purchases Sales (3) Settlements Transfer into Level 3 (4) Transfer out of Level 3 (4) Currency Balance, Change in Debt securities FVTPL Other government & agency $ 272 $ (3 ) $ – $ 26 $ (58 ) $ (6 ) $ – $ – $ 8 $ 239 $ (3 ) Corporate 651 19 – 105 (34 ) (29 ) 24 (21 ) (5 ) 710 10 Residential mortgage/asset-backed securities 2 – – – – – – – (1 ) 1 (1 ) Commercial mortgage/asset-backed securities 6 – – – (5 ) (1 ) – – – – – Other securitized assets 35 (1 ) – – – (7 ) – – (2 ) 25 (1 ) 966 15 – 131 (97 ) (43 ) 24 (21 ) – 975 5 AFS Other government & agency 51 (1 ) (2 ) 14 (15 ) (2 ) 1 – 1 47 – Corporate 74 – 4 22 (10 ) (4 ) – – 2 88 – Residential mortgage/asset-backed securities 1 – (1 ) – – – – – – – – Commercial mortgage/asset-backed securities 2 – – – (1 ) (1 ) – – – – – Other securitized assets 2 – – – – (1 ) – – – 1 – 130 (1 ) 1 36 (26 ) (8 ) 1 – 3 136 – Public equities FVTPL 7 – – – (4 ) – – – – 3 – 7 – – – (4 ) – – – – 3 – Real estate – investment property 12,756 301 – 1,257 (1,267 ) – – – (518 ) 12,529 264 Other invested assets 14,849 395 – 3,022 (435 ) (837 ) – – (791 ) 16,203 244 27,605 696 – 4,279 (1,702 ) (837 ) – – (1,309 ) 28,732 508 Segregated funds net assets 4,574 60 – 261 (248 ) (54 ) – (184 ) (154 ) 4,255 45 Total $ 33,282 $ 770 $ 1 $ 4,707 $ (2,077 ) $ (942 ) $ 25 $ (205 ) $ (1,460 ) $ 34,101 $ 558 For the year ended December 31, 2016 Balance, Net (1) Net (2) Purchases Sales (3) Settlements Transfer into Level 3 (4) Transfer out of Level 3 (4) Currency Balance, Change in Debt securities FVTPL Other government & agency $ 310 $ 3 $ – $ 50 $ (41 ) $ (30 ) $ – $ – $ (20 ) $ 272 $ 1 Corporate 903 (29 ) – 83 (84 ) (134 ) 58 (124 ) (22 ) 651 (4 ) Residential mortgage/asset-backed securities 15 – – – (11 ) (1 ) – – (1 ) 2 1 Commercial mortgage/asset-backed securities 70 – – – (56 ) (4 ) – – (4 ) 6 (3 ) Other securitized assets 48 – – – (1 ) (7 ) – (4 ) (1 ) 35 – 1,346 (26 ) – 133 (193 ) (176 ) 58 (128 ) (48 ) 966 (5 ) AFS Other government & agency 42 – – 18 (6 ) – – – (3 ) 51 – Corporate 90 – (2 ) 29 (32 ) (3 ) – (5 ) (3 ) 74 – Residential mortgage/asset-backed securities 8 (1 ) 1 – (6 ) – – – (1 ) 1 – Commercial mortgage/asset-backed securities 4 – – – – (1 ) – – (1 ) 2 – Other securitized assets 5 – 2 – – (1 ) – (4 ) – 2 – 149 (1 ) 1 47 (44 ) (5 ) – (9 ) (8 ) 130 – Public equities FVTPL – – – 7 – – – – – 7 – – – – 7 – – – – – 7 – Real estate –investment property 13,968 163 – 681 (1,782 ) – – – (274 ) 12,756 197 Other invested assets 12,977 786 9 2,171 (76 ) (685 ) – – (333 ) 14,849 847 26,945 949 9 2,852 (1,858 ) (685 ) – – (607 ) 27,605 1,044 Segregated funds net assets 4,656 92 – 356 (312 ) (19 ) (12 ) (105 ) (82 ) 4,574 93 Total $ 33,096 $ 1,014 $ 10 $ 3,395 $ (2,407 ) $ (885 ) $ 46 $ (242 ) $ (745 ) $ 33,282 $ 1,132 (1) These amounts, except for the amount related to segregated funds net assets, are included in net investment income on the Consolidated Statements of Income. (2) These amounts are included in AOCI on the Consolidated Statements of Financial Position. (3) Sales in 2017 include $619 of U.S. commercial real estate sold to the Hancock US Real Estate Fund, L.P., an associate of the Company which is a structured entity based on partnership voting rights. The Company provides management services to the fund and owns approximately 11.7% of its partnership interests. Also in 2017, sales include US$313 (2016 – $1,011) of U.S. commercial real estate sold to the Manulife US Real Estate Investment Trust in Singapore, an associate of the Company which is a structured entity based on unitholder voting rights. The Company provides management services to the trust and owns approximately 9.5% of its units. (4) For assets transferred into and out of Level 3, the Company uses fair values of the assets at the beginning of the year. |
Derivative and Hedging Instru34
Derivative and Hedging Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Gross Notional Amount and Fair Value of Derivative Contracts | The following table presents the gross notional amount and fair value of derivative contracts by the underlying risk exposure for derivatives in qualifying hedging and derivatives not designated in qualifying hedging relationships. As at December 31, 2017 2016 Notional Fair value Notional Fair value Type of hedge Instrument type Assets Liabilities Assets Liabilities Qualifying hedge accounting relationships Fair value hedges Interest rate swaps $ 548 $ – $ 20 $ 2,158 $ – $ 477 Foreign currency swaps 84 1 4 91 1 3 Cash flow hedges Foreign currency swaps 1,757 20 333 1,285 – 447 Forward contracts 165 – 4 255 – 23 Equity contracts 125 16 1 126 21 1 Total derivatives in qualifying hedge accounting relationships 2,679 37 362 3,915 22 951 Derivatives not designated in qualifying hedge accounting relationships Interest rate swaps 246,270 12,984 6,251 281,188 21,900 10,878 Interest rate futures 11,551 – – 11,616 – – Interest rate options 10,093 312 – 9,390 376 – Foreign currency swaps 16,321 494 1,122 12,226 347 1,645 Currency rate futures 3,157 – – 4,729 – – Forward contracts 20,341 915 65 15,411 340 644 Equity contracts 13,597 813 22 14,989 669 33 Credit default swaps 606 14 – 662 18 – Equity futures 12,158 – – 16,072 – – Total derivatives not designated in qualifying hedge accounting relationships 334,094 15,532 7,460 366,283 23,650 13,200 Total derivatives $ 336,773 $ 15,569 $ 7,822 $ 370,198 $ 23,672 $ 14,151 |
Summary of Gross Notional Amount by Remaining Term to Maturity, Total Fair Value (Including Accrued Interest), Credit Risk Equivalent and Risk Weighted Amount by Contract Type | The following table presents fair value of derivative instruments by remaining term to maturity. Fair values disclosed below do not incorporate the impact of master netting agreements. Refer to note 10. Remaining term to maturity As at December 31, 2017 Less than 1 year 1 to 3 years 3 to 5 years Over 5 years Total Derivative assets $ 605 $ 822 $ 889 $ 13,253 $ 15,569 Derivative liabilities 224 149 168 7,281 7,822 Remaining term to maturity As at December 31, 2016 Less than 1 year 1 to 3 years 3 to 5 years Over 5 years Total Derivative assets $ 467 $ 680 $ 719 $ 21,806 $ 23,672 Derivative liabilities 593 595 511 12,452 14,151 The following table presents gross notional amount by remaining term to maturity, total fair value (including accrued interest), credit risk equivalent and risk-weighted amount by contract type. Remaining term to maturity (notional amounts) Fair value As at December 31, 2017 Under 1 year 1 to 5 years Over 5 years Total Positive Negative Net Credit risk equivalent (1) Risk- weighted amount (2) Interest rate contracts OTC swap contracts $ 7,161 $ 19,141 $ 112,412 $ 138,714 $ 13,379 $ (6,867 ) $ 6,512 $ 6,588 $ 809 Cleared swap contracts 1,615 12,928 93,561 108,104 245 (206 ) 39 – – Forward contracts 6,036 10,614 675 17,325 903 (38 ) 865 285 35 Futures 11,551 – – 11,551 – – – – – Options purchased 816 3,856 5,421 10,093 312 – 312 471 61 Subtotal 27,179 46,539 212,069 285,787 14,839 (7,111 ) 7,728 7,344 905 Foreign exchange Swap contracts 999 4,481 12,682 18,162 510 (1,483 ) (973 ) 1,874 200 Forward contracts 3,046 135 – 3,181 12 (31 ) (19 ) 101 12 Futures 3,157 – – 3,157 – – – – – Credit derivatives 38 568 – 606 14 – 14 – – Equity contracts Swap contracts 2,612 169 – 2,781 60 (14 ) 46 337 35 Futures 12,158 – – 12,158 – – – – – Options purchased 4,693 6,148 100 10,941 769 (10 ) 759 2,606 305 Subtotal including accrued interest 53,882 58,040 224,851 336,773 16,204 (8,649 ) 7,555 12,262 1,457 Less accrued interest – – – – 635 (827 ) (192 ) – – Total $ 53,882 $ 58,040 $ 224,851 $ 336,773 $ 15,569 $ (7,822 ) $ 7,747 $ 12,262 $ 1,457 Remaining term to maturity (notional amounts) Fair value As at December 31, 2016 Under 1 year 1 to 5 years Over 5 years Total Positive Negative Net Credit risk equivalent (1) Risk- weighted amount (2) Interest rate contracts OTC swap contracts $ 13,244 $ 37,395 $ 164,252 $ 214,891 $ 19,327 $ (10,154 ) $ 9,173 $ 10,205 $ 1,493 Cleared swap contracts 717 4,786 62,952 68,455 3,507 (2,117 ) 1,390 – – Interest rate forwards 7,229 6,143 873 14,245 326 (629 ) (303 ) 192 29 Futures 11,616 – – 11,616 – – – – – Options purchased 483 2,927 5,980 9,390 376 – 376 458 70 Subtotal 33,289 51,251 234,057 318,597 23,536 (12,900 ) 10,636 10,855 1,592 Foreign exchange Swap contracts 425 3,917 9,259 13,601 346 (2,120 ) (1,774 ) 1,491 181 Forward contracts 1,257 165 – 1,422 13 (38 ) (25 ) 62 9 Futures 4,729 – – 4,729 – – – – – Credit derivatives 47 615 – 662 18 – 18 – – Equity contracts Swap contracts 3,107 192 – 3,299 64 (35 ) 29 495 54 Futures 16,072 – – 16,072 – – – – – Options purchased 6,007 5,809 – 11,816 626 (2 ) 624 2,735 358 Subtotal including accrued interest 64,933 61,949 243,316 370,198 24,603 (15,095 ) 9,508 15,638 2,194 Less accrued interest – – – – 931 (944 ) (13 ) – – Total $ 64,933 $ 61,949 $ 243,316 $ 370,198 $ 23,672 $ (14,151 ) $ 9,521 $ 15,638 $ 2,194 (1) Credit risk equivalent is the sum of replacement cost and the potential future credit exposure. Replacement cost represents the current cost of replacing all contracts with a positive fair value. The amounts take into consideration legal contracts that permit offsetting of positions. The potential future credit exposure is calculated based on a formula prescribed by OSFI. (2) Risk-weighted amount represents the credit risk equivalent, weighted according to the creditworthiness of the counterparty, as prescribed by OSFI. |
Summary of Fair Value of Derivative Contracts | The following table presents fair value of derivative contracts and the fair value hierarchy. As at December 31, 2017 Fair value Level 1 Level 2 Level 3 Derivative assets Interest rate contracts $ 14,199 $ – $ 13,181 $ 1,018 Foreign exchange contracts 527 – 527 – Equity contracts 829 – 768 61 Credit default swaps 14 – 14 – Total derivative assets $ 15,569 $ – $ 14,490 $ 1,079 Derivative liabilities Interest rate contracts $ 6,309 $ – $ 6,012 $ 297 Foreign exchange contracts 1,490 – 1,490 – Equity contracts 23 – 10 13 Total derivative liabilities $ 7,822 $ – $ 7,512 $ 310 As at December 31, 2016 Fair value Level 1 Level 2 Level 3 Derivative assets Interest rate contracts $ 22,602 $ – $ 22,045 $ 557 Foreign exchange contracts 362 – 361 1 Equity contracts 690 – 182 508 Credit default swaps 18 – 18 – Total derivative assets $ 23,672 $ – $ 22,606 $ 1,066 Derivative liabilities Interest rate contracts $ 11,984 $ – $ 11,114 $ 870 Foreign exchange contracts 2,133 – 2,133 – Equity contracts 34 – 1 33 Total derivative liabilities $ 14,151 $ – $ 13,248 $ 903 |
Net Derivative Significant Unobservable Inputs Used in Fair Value Measurement | The following table presents a roll forward for net derivative contracts measured at fair value using significant unobservable inputs (Level 3). For the years ended December 31, 2017 2016 Balance at the beginning of the year $ 163 $ 350 Net realized / unrealized gains (losses) included in: Net income (1) 1,082 47 OCI (2) (9 ) 40 Purchases 22 373 Settlements (103 ) (522 ) Transfers Into Level 3 (3) – – Out of Level 3 (3) (363 ) (116 ) Currency movement (23 ) (9 ) Balance at the end of the year $ 769 $ 163 Change in unrealized gains (losses) on instruments still held $ 832 $ 145 (1) These amounts are included in investment income on the Consolidated Statements of Income. (2) These amounts are included in AOCI on the Consolidated Statements of Financial Position. (3) For derivatives transferred into and out of Level 3, the Company uses the fair value of the items at the end and beginning of the period, respectively. Transfers into Level 3 occur when the inputs used to price the assets and liabilities lack observable market data (versus the previous year). Transfers out of Level 3 occur when the inputs used to price the assets and liabilities become available from observable market data. |
Summary of Recognized Gains Losses on Derivatives and Hedged Items in Fair Value Hedges in Investment Income | The Company recognizes gains and losses on derivatives and the related hedged items in fair value hedges in investment income. These investment gains (losses) are shown in the following table. For the year ended December 31, 2017 Hedged items in qualifying fair value hedging relationships Gains (losses) Gains (losses) Ineffectiveness Interest rate swaps Fixed rate assets $ 2 $ (3 ) $ (1) Fixed rate liabilities (17 ) 17 – Foreign currency swaps Fixed rate assets (2 ) 4 2 Total $ (17 ) $ 18 $ 1 For the year ended December 31, 2016 Hedged items in qualifying fair value hedging relationships Gains (losses) Gains (losses) Ineffectiveness Interest rate swaps Fixed rate assets $ (52 ) $ 30 $ (22) Fixed rate liabilities (1 ) 1 – Foreign currency swaps Fixed rate assets – 2 2 Total $ (53 ) $ 33 $ (20) |
Summary of Effects of Derivatives in Cash Flow Hedging Relationships | The effects of derivatives in cash flow hedging relationships on the Consolidated Statements of Income and the Consolidated Statements of Comprehensive Income are shown in the following table. For the year ended December 31, 2017 Hedged items in qualifying cash flow hedging relationships Gains (losses) Gains (losses) Ineffectiveness income Interest rate swaps Forecasted liabilities $ – $ (17 ) $ – Foreign currency swaps Fixed rate assets 3 (1 ) – Floating rate liabilities 95 50 – Fixed rate liabilities 35 7 – Forward contracts Forecasted expenses 10 (10 ) – Equity contracts Stock-based compensation 20 29 – Total $ 163 $ 58 $ – For the year ended December 31, 2016 Hedged items in qualifying cash flow hedging relationships Gains (losses) Gains (losses) Ineffectiveness Interest rate swaps Forecasted liabilities $ – $ (18 ) $ – Foreign currency swaps Fixed rate assets (4 ) – – Floating rate liabilities 47 23 – Fixed rate liabilities (15 ) (8 ) – Forward contracts Forecasted expenses 7 (14 ) – Equity contracts Stock-based compensation 39 (1 ) – Non-derivative Forecasted expenses – 3 – Total $ 74 $ (15 ) $ – |
Summary of Effects of Net Investment Hedging Relationships | The effects of net investment hedging relationships on the Consolidated Statements of Income and the Consolidated Statements of Other Comprehensive Income are shown in the following table. For the year ended December 31, 2017 Gains (losses) Gains (losses) Ineffectiveness Non-functional $ 355 $ – $ – Total $ 355 $ – $ – For the year ended December 31, 2016 Gains (losses) Gains (losses) Ineffectiveness Non-functional $ (25 ) $ – $ – Total $ (25 ) $ – $ – |
Summary of Effects of Derivatives Not Designated in Qualifying Hedge Accounting Relationships | The effects of derivatives not designated in qualifying hedge accounting relationships on the Consolidated Statements of Income are shown in the following table. For the years ended December 31, 2017 2016 Investment income (loss) Interest rate swaps $ (927 ) $ (141 ) Interest rate futures 372 (26 ) Interest rate options (96 ) (11 ) Foreign currency swaps 529 (14 ) Currency rate futures (92 ) 263 Forward contracts 1,231 (88 ) Equity futures (2,190 ) (2,387 ) Equity contracts 153 (171 ) Credit default swaps (4 ) 1 Total $ (1,024) $ (2,574 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Components of Income Tax Expense (Recovery) Recognized | Income tax expenses (recovery) recognized in the Consolidated Statements of Income: For the years ended December 31, 2017 2016 Current tax Current year $ 608 $ 659 Adjustments to prior year (1) (38 ) (228 ) 570 431 Deferred tax Change related to temporary differences (803 ) (235 ) Impact of U.S. Tax Reform 472 – Income tax expense $ 239 $ 196 (1) Adjustments relating to closure of multiple taxation years Income tax expenses (recovery) recognized in Other Comprehensive Income (“OCI”): For the years ended December 31, 2017 2016 Current income tax expense (recovery) $ 116 $ (72 ) Deferred income tax expense (recovery) 320 (25 ) Income tax expense (recovery) $ 436 $ (97 ) Income tax expenses (recovery) recognized directly in Equity: For the years ended December 31, 2017 2016 Current income tax expense (recovery) $ – $ (2 ) Deferred income tax expense (recovery) (2 ) (2 ) Income tax expense (recovery) $ (2 ) $ (4 ) |
Summary of Reconciliation of Income Tax Expense | The effective income tax rate reflected in the Consolidated Statements of Income varies from the Canadian tax rate of 26.75 per cent for the year ended December 31, 2017 (2016 – 26.75 per cent) and the reasons are disclosed below. Reconciliation of income tax expense For the years ended December 31, 2017 2016 Income before income taxes $ 2,501 $ 3,329 Income tax expense at Canadian statutory tax rate $ 669 $ 890 Increase (decrease) in income taxes due to: Tax-exempt (242 ) (229 ) Differences in tax rate on income not subject to tax in Canada (551 ) (366 ) Recovery of unrecognized tax losses of prior years – (10 ) Adjustments to taxes related to prior years (182 ) (206 ) Tax losses and temporary differences not recognized as deferred taxes 14 22 Impact of U.S. Tax Reform 472 – Other differences 59 95 Income tax expense $ 239 $ 196 |
Summary of Deferred Tax Assets and Liabilities | The following table presents the Company’s deferred tax assets and liabilities. As at December, 31 2017 2016 Deferred tax assets $ 4,569 $ 4,439 Deferred tax liabilities (1,281 ) (1,359 ) Net deferred tax assets $ 3,288 $ 3,080 |
Components of Deferred Tax Assets and Liabilties | The following table presents significant components of the Company’s deferred tax assets and liabilities. As at December 31, 2017 Balance, Recognized Recognized in Recognized Translation Balance, Loss carry forwards $ 942 $ (311 ) $ – $ 3 $ (38 ) $ 596 Actuarial liabilities 9,366 (1,053 ) (17 ) – (418 ) 7,878 Pensions and post-employment benefits 352 (87 ) (54 ) – (3 ) 208 Tax credits 875 (369 ) – – (52 ) 454 Accrued interest 17 (12 ) – (3 ) (1 ) 1 Real estate (1,396 ) 284 (9 ) – 59 (1,062 ) Securities and other investments (6,064 ) 2,172 (239 ) – 324 (3,807 ) Sale of investments (163 ) 58 – – – (105 ) Goodwill and intangible assets (1,059 ) 197 – – 37 (825 ) Other 210 (548 ) (1 ) 2 287 (50 ) Total $ 3,080 $ 331 $ (320) $ 2 $ 195 $ 3,288 As at December 31, 2016 Balance, Recognized Recognized in Recognized Translation Balance, Loss carry forwards $ 1,493 $ (515 ) $ – $ – $ (36 ) $ 942 Actuarial liabilities 9,448 244 (5 ) (116 ) (205 ) 9,366 Pensions and post-employment benefits 329 100 (79 ) – 2 352 Tax credits 750 147 – – (22 ) 875 Accrued interest 121 (100 ) – – (4 ) 17 Real estate (1,812 ) 373 – – 43 (1,396 ) Securities and other investments (6,218 ) (243 ) 113 112 172 (6,064 ) Sale of investments (200 ) 37 – – – (163 ) Goodwill and intangible assets (1,138 ) 58 – – 21 (1,059 ) Other 59 134 (4 ) 6 15 210 Total $ 2,832 $ 235 $ 25 $ 2 $ (14 ) $ 3,080 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Carrying Amounts of Goodwill and Intangible Assets | (a) Carrying amounts of goodwill and intangible assets As at December 31, 2017 Balance, Additions/ Amortization Effect of changes Balance, Goodwill $ 5,884 $ – $ n/a $ (171 ) $ 5,713 Indefinite life intangible assets Brand 805 – n/a (52 ) 753 Fund management contracts and other (1) 785 – n/a (30 ) 755 1,590 – n/a (82 ) 1,508 Finite life intangible assets (2) Distribution networks 1,093 – 47 (57 ) 989 Customer relationships 969 – 56 (14 ) 899 Software 494 306 121 (18 ) 661 Other 77 – 5 (2 ) 70 2,633 306 229 (91 ) 2,619 Total intangible assets 4,223 306 229 (173 ) 4,127 Total goodwill and intangible assets $ 10,107 $ 306 $ 229 $ (344 ) $ 9,840 As at December 31, 2016 Balance, Additions (3) (4) Amortization Effect of changes Balance, Goodwill $ 5,685 $ 256 $ n/a $ (57 ) $ 5,884 Indefinite life intangible assets Brand 831 – n/a (26 ) 805 Fund management contracts and other (1) 723 76 n/a (14 ) 785 1,554 76 n/a (40 ) 1,590 Finite life intangible assets (2) Distribution networks 726 450 50 (33 ) 1,093 Customer relationships 947 79 53 (4 ) 969 Software 396 229 126 (5 ) 494 Other 76 6 5 – 77 2,145 764 234 (42 ) 2,633 Total intangible assets 3,699 840 234 (82 ) 4,223 Total goodwill and intangible assets $ 9,384 $ 1,096 $ 234 $ (139 ) $ 10,107 (1) For fund management contracts, the significant CGUs to which these were allocated and their associated carrying values were John Hancock Investments and Retirement Plan Services with $367 (2016 – $393) and Canadian Wealth (excluding Manulife Bank of Canada) with $273 (2016 – $273). (2) Gross carrying amount of finite life intangible assets was $1,294 for distribution networks, $1,128 for customer relationships, $1,841 for software and $126 for other (2016 – $1,363, $1,142, $1,581 and $133, respectively). (3) In 2016, acquisitions of Standard Chartered’s MPF business in Hong Kong and Transamerica’s broker-dealer business in the USA led to additions of goodwill of $194 and $59 and intangible assets of $193 and $26, respectively. Commencement of sales through the DBS relationship led to recognition of $536 of distribution networks. (4) In 2016, disposals include impairments of distribution networks for discontinued products of $150 in the U.S. Division. |
Summary of Impairment Testing of Goodwill | sold, and where interdependencies exist. The following tables present the carrying value of goodwill by CGUs. As at December 31, 2017 CGU or Group of CGUs Balance, 2017 Additions/ Effect of Balance, 2017 Asia (excluding Hong Kong and Japan) $ 160 $ – $ (6 ) $ 154 Hong Kong 194 – (14 ) 180 Japan Insurance and Wealth 403 – (12 ) 391 Canadian Individual Life 155 – – 155 Canadian Affinity Markets 83 – – 83 Canadian Wealth (excluding Manulife Bank) 1,085 – – 1,085 Canadian Group Benefits and Group Retirement Solutions 1,773 – – 1,773 International Group Program 90 – (6 ) 84 John Hancock Insurance 428 – (28 ) 400 John Hancock Investments and Retirement Plan Services 1,220 – (99 ) 1,121 Manulife Asset Management and Other 293 – (6 ) 287 Total $ 5,884 $ – $ (171 ) $ 5,713 As at December 31, 2016 CGU or Group of CGUs Balance, 2016 Additions/ Effect of Balance, 2016 Asia (excluding Hong Kong and Japan) $ 166 $ – $ (6 ) $ 160 Hong Kong – 194 – 194 Japan Insurance and Wealth 404 – (1 ) 403 Canadian Individual Life 155 – – 155 Canadian Affinity Markets 83 – – 83 Canadian Wealth (excluding Manulife Bank) 1,085 – – 1,085 Canadian Group Benefits and Group Retirement Solutions 1,773 – – 1,773 International Group Program 93 – (3 ) 90 John Hancock Insurance 378 59 (9 ) 428 John Hancock Investments and Retirement Plan Services 1,254 3 (37 ) 1,220 Manulife Asset Management and Other 294 – (1 ) 293 Total $ 5,685 $ 256 $ (57 ) $ 5,884 |
Insurance Contract Liabilitie37
Insurance Contract Liabilities and Reinsurance Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Insurance Contract Liabilities and Reinsurance Assets | for unreported claims and policyholder amounts on deposit. The components of gross and net insurance contract liabilities are shown below. As at December 31, 2017 2016 Gross insurance contract liabilities $ 291,767 $ 284,778 Gross benefits payable and provision for unreported claims 3,376 3,309 Gross policyholder amounts on deposit 9,462 9,418 Gross insurance contract liabilities 304,605 297,505 Reinsurance assets (30,359 ) (34,952 ) Net insurance contract liabilities $ 274,246 $ 262,553 |
Summary of Composition of Insurance Contract Liabilities and Reinsurance Assets by Line of Business and Reporting Segment | The composition of insurance contract liabilities and reinsurance assets by line of business and reporting segment is as follows. Gross insurance contract liabilities Individual insurance As at December 31, 2017 Participating Non- participating Annuities Other (1) Total, net of Total Total, Asia division $ 32,737 $ 22,705 $ 4,366 $ 2,435 $ 62,243 $ 911 $ 63,154 Canadian division 11,132 34,091 19,141 11,834 76,198 (676 ) 75,522 U.S. division 8,569 57,599 26,161 43,522 135,851 29,952 165,803 Corporate and Other – (515 ) 48 421 (46 ) 172 126 Total, net of reinsurance ceded 52,438 113,880 49,716 58,212 274,246 $ 30,359 $ 304,605 Total reinsurance ceded 11,492 11,238 6,539 1,090 30,359 Total, gross of reinsurance ceded $ 63,930 $ 125,118 $ 56,255 $ 59,302 $ 304,605 Individual insurance As at December 31, 2016 Participating Non- participating Annuities Other (1) Total, net of Total Total, Asia division $ 29,520 $ 18,799 $ 3,599 $ 2,649 $ 54,567 $ 880 $ 55,447 Canadian division 10,974 31,790 19,620 11,000 73,384 593 73,977 U.S. division 9,419 56,484 28,529 40,760 135,192 33,220 168,412 Corporate and Other – (833 ) 62 181 (590 ) 259 (331 ) Total, net of reinsurance ceded 49,913 106,240 51,810 54,590 262,553 $ 34,952 $ 297,505 Total reinsurance ceded 13,558 12,122 8,159 1,113 34,952 Total, gross of reinsurance ceded $ 63,471 $ 118,362 $ 59,969 $ 55,703 $ 297,505 (1) Other insurance contract liabilities include group insurance and individual and group health including long-term care insurance. |
Summary of Carrying Value of Total Assets Backing Net Insurance Contract Liabilities, Other Liabilities and Capital | The carrying value of total assets backing net insurance contract liabilities, other liabilities and capital was as follows. Individual insurance As at December 31, 2017 Participating Non- participating Annuities Other insurance (1) Other (2) Capital (3) Total Assets Debt securities $ 27,946 $ 63,128 $ 26,621 $ 25,211 $ 6,635 $ 24,459 $ 174,000 Public equities 9,264 5,855 171 332 1,029 4,894 21,545 Mortgages 2,017 10,286 7,009 6,891 18,476 63 44,742 Private placements 3,645 12,128 8,059 7,739 367 194 32,132 Real estate 2,963 6,198 1,136 2,516 769 228 13,810 Other 6,603 16,285 6,720 15,523 377,352 20,821 443,304 Total $ 52,438 $ 113,880 $ 49,716 $ 58,212 $ 404,628 $ 50,659 $ 729,533 Individual insurance As at December 31, 2016 Participating Non- participating Annuities Other insurance (1) Other (2) Capital (3) Total Assets Debt securities $ 27,473 $ 56,765 $ 26,331 $ 23,012 $ 9,965 $ 25,076 $ 168,622 Public equities 8,055 5,401 213 351 732 4,744 19,496 Mortgages 2,110 10,008 8,135 5,554 18,311 75 44,193 Private placements 3,277 10,823 7,096 7,070 1,272 191 29,729 Real estate 2,811 6,397 1,480 2,561 613 270 14,132 Other 6,187 16,846 8,555 16,042 377,000 19,879 444,509 Total $ 49,913 $ 106,240 $ 51,810 $ 54,590 $ 407,893 $ 50,235 $ 720,681 (1) Other insurance contract liabilities include group insurance and individual and group health including long-term care insurance. (2) Other liabilities are non-insurance (3) Capital is defined in note 14. |
Summary of Potential Impact on Net Income Attributed to Shareholders Arising From Changes to Non-economic Assumptions | Potential impact on net income attributed to shareholders arising from changes to non-economic (1),(2) As at December 31, Decrease in net income 2017 2016 Policy related assumptions 2% adverse change in future mortality rates (3),(5) Products where an increase in rates increases insurance contract liabilities $ (400 ) $ (400 ) Products where a decrease in rates increases insurance contract liabilities (400 ) (500 ) 5% adverse change in future morbidity rates (4),(5) (3,900 ) (3,700 ) 10% adverse change in future termination rates (5) (2,000 ) (1,900 ) 5% increase in future expense levels (500 ) (500 ) (1) The sensitivities as at December 31, 2017 include the impact of lower U.S. corporate tax rates effective January 1, 2018. (2) The participating policy funds are largely self-supporting and generate no material impact on net income attributed to shareholders as a result of changes in non-economic (3) An increase in mortality rates will generally increase policy liabilities for life insurance contracts whereas a decrease in mortality rates will generally increase policy liabilities for policies with longevity risk such as payout annuities. (4) No amounts related to morbidity risk are included for policies where the policy liability provides only for claims costs expected over a short period, generally less than one year, such as Group Life and Health. (5) The impacts of the sensitivities on long-term care for morbidity, mortality and lapse are assumed to be moderated by partial offsets from the Company’s ability to contractually raise premium rates in such events, subject to state regulatory approval. |
Summary of Actuarial Methods and Assumptions | The 2017 full year review of actuarial methods and assumptions resulted in an increase in insurance and investment contract liabilities of $277, net of reinsurance, and a decrease in net income attributed to shareholders of $35 post-tax. post-tax For the year ended December 31, 2017 Change in gross Change in insurance (1) Change in net income attributed (post-tax) Mortality and morbidity updates $ (219 ) $ (254 ) $ 299 Lapses and policyholder behaviour 1,057 1,019 (783 ) Other updates ALDA and public equity investment return assumptions 1,403 1,296 (892 ) Corporate spread assumptions (554 ) (515 ) 344 Refinements to liability and tax cash flows (1,273 ) (1,049 ) 696 Other (90 ) (220 ) 301 Net impact $ 324 $ 277 $ (35) (1) The $277 increase in insurance and investment contract liabilities net of reinsurance, included an increase in net liabilities associated with participating insurance business resulting in a charge to net income attributed to participating policyholders of $88. The 2016 full year review of actuarial methods and assumptions resulted in an increase in insurance and investment contract liabilities of $655, net of reinsurance, and a decrease in net income attributed to shareholders of $453 post-tax. For the year ended December 31, 2016 Change in gross Change in insurance Change in net (post-tax) JH Long-Term Care triennial review $ 696 $ 696 $ (452 ) Mortality and morbidity updates (12 ) (53 ) 76 Lapses and policyholder behaviour U.S. Variable Annuities guaranteed minimum withdrawal benefit incidence and utilization (1,024 ) (1,024 ) 665 Other lapses and policyholder behaviour 516 431 (356 ) Economic reinvestment assumptions 459 443 (313 ) Other updates 719 162 (73 ) Net impact $ 1,354 $ 655 $ (453 ) |
Summary of Insurance Contract Liabilities, Payments Due by Period | Insurance contracts give rise to obligations fixed by agreement. As at December 31, 2017, the Company’s contractual obligations and commitments relating to insurance contracts are as follows. Payments due by period Less than 1 to 3 years 3 to 5 years Over 5 Total Insurance contract liabilities (1) $ 9,788 $ 11,236 $ 17,153 $ 703,877 $ 742,054 (1) Insurance contract liability 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, commissions and premium taxes offset by contractual future premiums on in-force |
Summary of Gross Claims and Benefits | The following table presents a breakdown of gross claims and benefits. For the years ended December 31, 2017 2016 Death, disability and other claims $ 14,871 $ 13,819 Maturity and surrender benefits 6,302 6,697 Annuity payments 4,470 4,310 Policyholder dividends and experience rating refunds 1,085 1,111 Net transfers from segregated funds (1,734 ) (878 ) Total $ 24,994 $ 25,059 |
Life insurance contracts [Member] | |
Summary of Change in Insurance Contract Liabilities | The change in insurance contract liabilities was a result of the following business activities and changes in actuarial estimates. For the year ended December 31, 2017 Net actuarial Other (1) Net Reinsurance Gross Balance, January 1 $ 251,738 $ 10,815 $ 262,553 $ 34,952 $ 297,505 New policies (2) 3,545 – 3,545 441 3,986 Normal in-force (2) 15,192 930 16,122 (3,097 ) 13,025 Changes in methods and assumptions (2) 305 (28 ) 277 47 324 Impact of U.S. Tax Reform (2),(3) 2,246 – 2,246 – 2,246 Increase due to decision to change the portfolio asset mix supporting legacy businesses (2),(4) 1,340 – 1,340 43 1,383 Impact of changes in foreign exchange rates (11,275 ) (562 ) (11,837 ) (2,027 ) (13,864 ) Balance, December 31 $ 263,091 $ 11,155 $ 274,246 $ 30,359 $ 304,605 For the year ended December 31, 2016 Net actuarial Other (1) Net Reinsurance Gross Balance, January 1 $ 239,812 $ 10,050 $ 249,862 $ 35,426 $ 285,288 New policies (5) 3,617 – 3,617 294 3,911 Normal in-force (5) 12,579 1,094 13,673 (405 ) 13,268 Changes in methods and assumptions (5) 709 (54 ) 655 699 1,354 Impact of changes in foreign exchange rates (4,979 ) (275 ) (5,254 ) (1,062 ) (6,316 ) Balance, December 31 $ 251,738 $ 10,815 $ 262,553 $ 34,952 $ 297,505 (1) Other insurance contract liabilities are comprised of benefits payable and provision for unreported claims and policyholder amounts on deposit. (2) In 2017, the $20,023 increase reported as the change in insurance contract liabilities on the Consolidated Statements of Income primarily consists of changes due to normal in-force (3) The impact of U.S. Tax Reform, which includes the lowering of the U.S. corporate tax rate from 35% to 21% and limits on the tax deductibility of reserves, resulted in a $2,246 pre-tax ($1,774 post-tax) increase in policy liabilities due to the impact of temporary tax timing and permanent tax rate differences on the cash flows available to satisfy policyholder obligations. The $472 deferred tax impact on this increase in policy liabilities, together with the impact of U.S. Tax Reform on the Company’s deferred tax assets and liabilities is included in note 6. (4) The decision to reduce the allocation to ALDA in the portfolio asset mix supporting the Company’s North American legacy businesses resulted in an increase in policy liabilities due to the impact on future expected investment income on assets supporting the policies. (5) In 2016, the $18,014 increase reported as the change in insurance contract liabilities on the Consolidated Statements of Income primarily consists of changes due to normal in-force |
Investment Contract Liabiliti38
Investment Contract Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Movement in Investment Contract Liabilities Measured at Fair Value | The following table presents movement in investment contract liabilities measured at fair value during the year. For the years ended December 31, 2017 2016 Balance, January 1 $ 631 $ 785 New policies 50 53 Changes in market conditions 76 (103 ) Redemptions, surrenders and maturities (72 ) (83 ) Impact of changes in foreign exchange rates (46 ) (21 ) Balance, December 31 $ 639 $ 631 |
Summary of Investment Contract Liabilities Measured at Amortized Cost and Fair Value Associated with these Contracts | Investment contract liabilities measured at amortized cost are shown below. The fair value associated with these contracts is also shown for comparative purposes. 2017 2016 As at December 31, Amortized cost Fair value Amortized cost Fair value U.S. fixed annuity products $ 1,282 $ 1,433 $ 1,412 $ 1,516 Canadian fixed annuity products 1,205 1,354 1,232 1,389 Investment contract liabilities $ 2,487 $ 2,787 $ 2,644 $ 2,905 |
Summary of Changes in Investment Contract Liabilities Measured at Amortized Cost | The changes in investment contract liabilities measured at amortized cost was a result of the following business activities. For the years ended December 31, 2017 2016 Balance, January 1 $ 2,644 $ 2,712 Policy deposits 68 112 Interest 100 100 Withdrawals (232 ) (235 ) Fees (1 ) (1 ) Other (1 ) 1 Impact of changes in foreign exchange rates (91 ) (45 ) Balance, December 31 $ 2,487 $ 2,644 |
Summary of Contractual Obligations and Commitments Relating to Investment Contracts | Investment contracts give rise to obligations fixed by agreement. As at December 31, 2017, the Company’s contractual obligations and commitments relating to investment contracts are as follows. Payments due by period Less than 1 to 3 years 3 to 5 years Over 5 Total Investment contract liabilities (1) $ 283 $ 536 $ 481 $ 3,944 $ 5,244 (1) Due to the nature of the products, the timing of net cash flows may be before contract maturity. Cash flows are undiscounted. |
Risk Management (Tables)
Risk Management (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Gross Carrying Amount of Financial Instruments Subject to Credit Exposure | The following table presents the gross carrying amount of financial instruments subject to credit exposure, without considering any collateral held or other credit enhancements. As at December 31, 2017 2016 Debt securities FVTPL $ 147,024 $ 140,890 AFS 26,976 27,732 Mortgages 44,742 44,193 Private placements 32,132 29,729 Policy loans 5,808 6,041 Loans to Bank clients 1,737 1,745 Derivative assets 15,569 23,672 Accrued investment income 2,182 2,260 Reinsurance assets 30,359 34,952 Other financial assets 5,253 4,844 Total $ 311,782 $ 316,058 |
Summary of Credit Quality and Carrying Value of Commercial Mortgages and Private Placements | The following table presents the credit quality and carrying value of commercial mortgages and private placements. As at December 31, 2017 AAA AA A BBB BB B and lower Total Commercial mortgages Retail $ 110 $ 1,517 $ 4,363 $ 2,050 $ 44 $ 57 $ 8,141 Office 57 1,272 4,635 1,647 70 28 7,709 Multi-family residential 523 1,395 1,805 726 – – 4,449 Industrial 33 386 1,542 477 145 – 2,583 Other 362 331 1,012 973 14 – 2,692 Total commercial mortgages 1,085 4,901 13,357 5,873 273 85 25,574 Agricultural mortgages – 159 – 405 25 – 589 Private placements 1,038 4,246 11,978 13,160 717 993 32,132 Total $ 2,123 $ 9,306 $ 25,335 $ 19,438 $ 1,015 $ 1,078 $ 58,295 As at December 31, 2016 AAA AA A BBB BB B and lower Total Commercial mortgages Retail $ 97 $ 1,620 $ 4,391 $ 2,084 $ – $ 7 $ 8,199 Office 68 1,255 3,972 1,938 55 36 7,324 Multi-family residential 656 1,362 1,944 844 – – 4,806 Industrial 22 360 1,452 831 169 – 2,834 Other 428 261 1,323 493 60 – 2,565 Total commercial mortgages 1,271 4,858 13,082 6,190 284 43 25,728 Agricultural mortgages – 151 61 469 141 – 822 Private placements 1,086 4,466 10,671 11,606 936 964 29,729 Total $ 2,357 $ 9,475 $ 23,814 $ 18,265 $ 1,361 $ 1,007 $ 56,279 |
Summary of Carrying Value of Past Due but Not Impaired and Impaired Financial Assets | The following table presents the carrying value of past due but not impaired and impaired financial assets. Past due but not impaired As at December 31, 2017 Less than 90 days Total Total Debt securities FVTPL $ – $ – $ – $ 45 AFS 104 2 106 1 Private placements 363 – 363 40 Mortgages and loans to Bank clients 76 16 92 86 Other financial assets 46 26 72 1 Total $ 589 $ 44 $ 633 $ 173 Past due but not impaired As at December 31, 2016 Less than 90 days Total Total Debt securities FVTPL $ 90 $ – $ 90 $ 38 AFS 16 9 25 – Private placements 215 64 279 152 Mortgages and loans to Bank clients 50 20 70 33 Other financial assets 57 54 111 8 Total $ 428 $ 147 $ 575 $ 231 |
Summary of Company's Loans That are Considered Impaired | The following table summarizes the Company’s loans that are considered impaired. As at December 31, 2017 Gross Allowances Net carrying Private placements $ 79 $ 39 $ 40 Mortgages and loans to Bank clients 132 46 86 Total $ 211 $ 85 $ 126 As at December 31, 2016 Gross Allowances Net Private placements $ 244 $ 92 $ 152 Mortgages and loans to Bank clients 59 26 33 Total $ 303 $ 118 $ 185 |
Summary of Reconciliation of Allowance for Loan Losses | Allowance for loan losses 2017 2016 For the years ended December 31, Private Mortgages Total Private Mortgages Total Balance, January 1 $ 92 $ 26 $ 118 $ 72 $ 29 $ 101 Provisions 2 33 35 112 14 126 Recoveries (12 ) (1 ) (13 ) (62 ) (7 ) (69 ) Write-offs (1) (43 ) (12 ) (55 ) (30 ) (10 ) (40 ) Balance, December 31 $ 39 $ 46 $ 85 $ 92 $ 26 $ 118 (1) Includes disposals and impact of changes in foreign exchange rates. |
Summary of Credit Default Swap Protection Sold | The following table presents details of the credit default swap protection sold by type of contract and external agency rating for the underlying reference security. As at December 31, 2017 Notional (2) Fair value Weighted (in years) (3) Single name CDSs (1) Corporate debt AAA $ 13 $ – 1 AA 35 1 2 A 408 10 3 BBB 150 3 2 Total single name CDSs $ 606 $ 14 3 Total CDS protection sold $ 606 $ 14 3 As at December 31, 2016 Notional (2) Fair value Weighted (in years) (3) Single name CDSs (1) Corporate debt AAA $ 13 $ – 2 AA 37 1 3 A 457 13 4 BBB 155 4 3 Total single name CDSs $ 662 $ 18 4 Total CDS protection sold $ 662 $ 18 4 (1) Rating agency designations are based on S&P where available followed by Moody’s, DBRS, and Fitch. If no rating is available from a rating agency, an internally developed rating is used. (2) Notional amounts represent the maximum future payments the Company would have to pay its counterparties assuming a default of the underlying credit and zero recovery on the underlying issuer obligation. (3) The weighted average maturity of the CDS is weighted based on notional amounts. |
Summary of Effect of Conditional Master Netting and Similar Arrangements | The following table presents the effect of conditional master netting and similar arrangements. Similar arrangements may include global master repurchase agreements, global master securities lending agreements, and any related rights to financial collateral. Related amounts not set off in the As at December 31, 2017 Gross amounts of (1) Amounts subject to Financial and (2) Net amount (3) Net amounts Financial assets Derivative assets $ 16,204 $ (6,714 ) $ (9,395 ) $ 95 $ 95 Securities lending 1,563 – (1,563 ) – – Reverse repurchase agreements 230 (46 ) (184 ) – – Total financial assets $ 17,997 $ (6,760 ) $ (11,142 ) $ 95 $ 95 Financial liabilities Derivative liabilities $ (8,649 ) $ 6,714 $ 1,718 $ (217 ) $ (30 ) Repurchase agreements (228 ) 46 182 – – Total financial liabilities $ (8,877 ) $ 6,760 $ 1,900 $ (217 ) $ (30 ) Related amounts not set off in the As at December 31, 2016 Gross amounts of (1) Amounts subject to Financial and (2) Net amount (3) Net amounts Financial assets Derivative assets $ 24,603 $ (12,031 ) $ (12,382 ) $ 190 $ 189 Securities lending 1,956 – (1,956 ) – – Reverse repurchase agreements 250 – (250 ) – – Total financial assets $ 26,809 $ (12,031 ) $ (14,588 ) $ 190 $ 189 Financial liabilities Derivative liabilities $ (15,095 ) $ 12,031 $ 2,800 $ (264 ) $ (42 ) Repurchase agreements (255 ) – 255 – – Total financial liabilities $ (15,350) $ 12,031 $ 3,055 $ (264 ) $ (42 ) (1) Financial assets and liabilities include accrued interest of $638 and $827, respectively (2016 – $935 and $944, respectively). (2) Financial and cash collateral exclude over-collateralization. As at December 31, 2017, the Company was over-collateralized on OTC derivative assets, OTC derivative liabilities, securities lending and reverse purchase agreements and repurchase agreements in the amounts of $743, $382, $79 and $nil, respectively (2016 – $398, $494, $107 and $1, respectively). As at December 31, 2017, collateral pledged (received) does not include collateral-in-transit (3) Includes derivative contracts entered between the Company and its financing trusts which it does not consolidate. The Company does not exchange collateral on derivative contracts entered with these trusts. Refer to note 17. |
Summary of the Effect of Unconditional Netting | The following table presents the effect of unconditional netting. As at December 31, 2017 Gross amounts of Amounts subject to Net amounts of Credit linked note (1) $ 461 $ (461 ) $ – Variable surplus note (461 ) 461 – (1) In 2017, the Company entered into a twenty-year financing facility with a third party, agreeing to issue variable surplus notes in exchange for an equal amount of credit linked notes. These notes are held to support John Hancock Life Insurance Company (USA) (“JHUSA”) excess reserves under U.S. National Association of Insurance Commissioners’ Model Regulation XXX. In certain scenarios, the credit linked note will be drawn upon by the Company which will issue fixed surplus notes equal to the draw payment received. The third party has agreed to fund any such payment under the credit-linked notes in return for a fee. As at December 31, 2017, the Company had no fixed surplus notes outstanding. |
Schedule of Distribution of Debt Securities and Private Placements Portfolio by Sector and Industry | The following table presents debt securities and private placements portfolio by sector and industry. 2017 2016 As at December 31, Carrying value % of total Carrying value % of total Government and agency $ 71,888 35 $ 76,020 38 Utilities 40,568 20 37,561 19 Financial 27,923 13 25,027 13 Energy 16,428 8 15,775 8 Industrial 14,691 7 13,088 6 Consumer (non-cyclical) 14,009 7 12,440 6 Consumer (cyclical) 5,916 3 4,256 2 Securitized 3,577 2 3,514 2 Telecommunications 3,324 2 3,091 2 Basic materials 3,248 2 3,387 2 Technology 2,475 1 2,231 1 Media and internet 1,136 – 1,175 1 Diversified and miscellaneous 949 – 786 – Total $ 206,132 100 $ 198,351 100 |
Schedule of Geographic Concentration of Insurance and Investment Contract Liabilities, Including Embedded Derivatives | The geographic concentration of the Company’s insurance and investment contract liabilities, including embedded derivatives, is shown below. The disclosure is based on the countries in which the business is written. As at December 31, 2017 Gross liabilities Reinsurance Net liabilities U.S. and Canada $ 237,434 $ (30,225 ) $ 207,209 Asia and Other 70,521 (134 ) 70,387 Total $ 307,955 $ (30,359 ) $ 277,596 As at December 31, 2016 Gross liabilities Reinsurance Net liabilities U.S. and Canada $ 238,796 $ (34,987 ) $ 203,809 Asia and Other 62,322 35 62,357 Total $ 301,118 $ (34,952 ) $ 266,166 |
Asset classes and individual investment risks [Member] | |
Schedule of Risk Concentrations | As at December 31, 2017 2016 Debt securities and private placements rated as investment grade BBB or higher (1) 98% 97% Government debt securities as a per cent of total debt securities 39% 43% Government private placements as a per cent of total private placements 10% 10% Highest exposure to a single non-government $ 1,044 $ 1,010 Largest single issuer as a per cent of the total equity portfolio 2% 3% Income producing commercial office properties (2017 – 64% of real estate, 2016 – 65%) $ 8,836 $ 9,200 Largest concentration of mortgages and real estate (2) $ 14,779 $ 13,882 (1) Investment grade debt securities and private placements include 42% rated A, 16% rated AA and 17% rated AAA (2016 – 41%, 14% and 21%) investments based on external ratings where available. (2) Mortgages and real estate are diversified geographically and by property type. |
Residential mortgages and loans to bank clients [Member] | |
Summary of Carrying Value of Residential Mortgages and Loans to Bank Clients | The following table presents the carrying value of residential mortgages and loans to Bank clients. 2017 2016 As at December 31, Insured Uninsured Total Insured Uninsured Total Residential mortgages Performing $ 7,256 $ 11,310 $ 18,566 $ 7,574 $ 10,050 $ 17,624 Non-performing (1) 4 9 13 6 13 19 Loans to Bank clients Performing n/a 1,734 1,734 n/a 1,743 1,743 Non-performing (1) n/a 3 3 n/a 2 2 Total $ 7,260 $ 13,056 $ 20,316 $ 7,580 $ 11,808 $ 19,388 (1) Non-performing |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Carrying Value of Long Term Debt Instruments | (a) Carrying value of long-term debt instruments As at December 31, Issue date Maturity date Par value 2017 2016 4.70% Senior notes (1),(3) June 23, 2016 June 23, 2046 US$ 1,000 $ 1,246 $ 1,333 5.375% Senior notes (2),(3) March 4, 2016 March 4, 2046 US$ 750 928 994 3.527% Senior notes (2),(3) December 2, 2016 December 2, 2026 US$ 270 338 361 4.150% Senior notes (2),(3) March 4, 2016 March 4, 2026 US$ 1,000 1,246 1,333 4.90% Senior notes (2),(3) September 17, 2010 September 17, 2020 US$ 500 626 669 7.768% Medium-term notes (4) April 8, 2009 April 8, 2019 $ 600 – 599 5.505% Medium-term notes (5) June 26, 2008 June 26, 2018 $ 400 400 400 Other notes payable (6) n/a n/a n/a 1 7 Total $ 4,785 $ 5,696 (1) MFC may redeem the notes in whole, but not in part, on June 23, 2021 and thereafter on every June 23, at a redemption price equal to par, together with accrued and unpaid interest. (2) MFC may redeem the senior notes in whole or in part, at any time, at a redemption price equal to the greater of par and a price based on the yield of a corresponding U.S. Treasury bond plus a specified number of basis points. The specified number of basis points is as follows: 5.375% – 40 bps, 3.527% – 20 bps, 4.150% – 35 bps, and 4.90% – 35 bps. (3) These U.S. dollar senior notes have been designated as hedges of the Company’s net investment in its U.S. operations which reduces the earnings volatility that would otherwise arise from the re-measurement (4) On October 6, 2017, MFC redeemed, prior to maturity, all of its outstanding 7.768% medium term notes due April 8, 2019. The early redemption premium of $44 before income taxes was recorded as interest expense. (5) MFC may redeem the medium-term notes in whole or in part, at any time, at a redemption price equal to the greater of par and a price based on the yield of a corresponding Government of Canada bond plus 39 basis points. (6) Other notes payable were substantially repaid during the year. |
Aggregate Maturities of Long-term Debt | (c) Aggregate maturities of long-term debt As at December 31, 2017 2016 Less than one year $ 401 $ 7 One to two years – 400 Two to three years 626 599 Three to four years – 669 Four to five years – – Greater than five years 3,758 4,021 Total $ 4,785 $ 5,696 |
Capital Instruments (Tables)
Capital Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Schedule of Carrying Value of Capital Instruments | (a) Carrying value of capital instruments As at December 31, Issuance date Earliest par redemption Maturity date Par value 2017 2016 4.165% MLI Subordinated debentures (1) February 17, 2012 June 1, 2017 June 1, 2022 $ 500 $ – $ 499 3.938% MLI Subordinated debentures (2) September 21, 2012 September 21, 2017 September 21, 2022 $ 400 – 407 2.819% MLI Subordinated debentures (3) February 25, 2013 February 26, 2018 February 26, 2023 $ 200 200 200 2.926% MLI Subordinated debentures (3) November 29, 2013 November 29, 2018 November 29, 2023 $ 250 250 249 2.811% MLI Subordinated debentures (3) February 21, 2014 February 21, 2019 February 21, 2024 $ 500 499 499 7.535% MFCT II Senior debenture notes (4) July 10, 2009 December 31, 2019 December 31, 2108 $ 1,000 1,000 1,000 2.64% MLI Subordinated debentures (3) December 1, 2014 January 15, 2020 January 15, 2025 $ 500 499 499 2.10% MLI Subordinated debentures (3) March 10, 2015 June 1, 2020 June 1, 2025 $ 750 748 747 2.389% MLI Subordinated debentures (3) June 1, 2015 January 5, 2021 January 5, 2026 $ 350 349 349 3.85% MFC Subordinated notes (5) May 25, 2016 May 25, 2021 May 25, 2026 S$ 500 467 461 3.181% MLI Subordinated debentures (3) November 20, 2015 November 22, 2022 November 22, 2027 $ 1,000 996 996 3.049% MFC Subordinated debentures (6) August 18, 2017 August 20, 2024 August 20, 2029 $ 750 746 – 3.00% MFC Subordinated notes (5) November 21, 2017 November 21, 2024 November 21, 2024 S$ 500 467 – 4.061% MFC Subordinated notes (7) February 24, 2017 February 24, 2027 February 24, 2032 US$ 750 935 – 7.375% JHUSA Surplus notes (8) February 25, 1994 n/a February 15, 2024 US$ 450 584 627 JHFC Subordinated notes (9) December 14, 2006 n/a December 15, 2036 $ 650 647 647 Total $ 8,387 $ 7,180 (1) MLI redeemed in full the 4.165% subordinated debentures at par, on June 1, 2017, the earliest par redemption date. (2) MLI redeemed in full the 3.938% subordinated debentures, originally issued by Standard Life Assurance Company of Canada at par, on September 21, 2017, the earliest par redemption date. (3) Interest is fixed for the period up to the earliest par redemption date, thereafter the interest rate will reset to a floating rate equal to the 90-day (4) Issued by MLI to Manulife Financial Capital Trust II (MFCT II), a wholly owned unconsolidated related party to the Company. On the earliest par redemption date and on every fifth anniversary thereafter (each, a “Interest Reset Date”), the rate of interest will reset to equal the yield on 5-year (5) On the earliest par redemption date, the interest rate will reset to equal the 5-year (6) Interest is fixed for the period up to the earliest par redemption date, thereafter, the interest rate will reset to a floating rate equal to the 90-day (7) On the earliest par redemption date, the interest rate will reset to equal the 5-Year Mid-Swap (8) Issued by John Hancock Mutual Life Insurance Company, now John Hancock Life Insurance Company (U.S.A.). Any payment of interest or principal on the surplus notes requires prior approval from the Department of Insurance and Financial Services of the State of Michigan. The carrying value of the surplus notes reflects an unamortized fair value increment of US$23 (2016 – US$26), which arose as a result of the acquisition of John Hancock Financial Services, Inc. The amortization of the fair value adjustment is recorded in interest expense. (9) Issued by Manulife Holdings (Delaware) LLC (“MHDLL”), now John Hancock Financial Corporation (“JHFC”), a wholly owned subsidiary of MFC, to Manulife Finance (Delaware) LLC (“MFLLC”), a subsidiary of Manulife Finance (Delaware) L.P. (“MFLP”). MFLP and its subsidiaries are wholly owned unconsolidated related parties to the Company. The note bears interest at a floating rate equal to the 90-day |
Share Capital and Earnings Pe42
Share Capital and Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Additional Information on Preferred Shares Outstanding | The following table presents additional information on the preferred shares outstanding as at December 31, 2017. As at December 31, 2017 Issue date Annual (1) Earliest redemption (2) Number of (in millions) Face Net (3) Class A preferred shares Series 2 February 18, 2005 4.65% n/a 14 $ 350 $ 344 Series 3 January 3, 2006 4.50% n/a 12 300 294 Class 1 preferred shares Series 3 (4),(5) March 11, 2011 2.178% June 19, 2021 6 158 155 Series 4 June 20, 2016 floating (6) n/a 2 42 41 Series 5 (4),(5) December 6, 2011 3.891% December 19, 2021 8 200 195 Series 7 (4),(5),(7) February 22, 2012 4.312% March 19, 2022 10 250 244 Series 9 (4),(5),(8) May 24, 2012 4.351% September 19, 2022 10 250 244 Series 11 (4),(5) December 4, 2012 4.00% March 19, 2018 8 200 196 Series 13 (4),(5) June 21, 2013 3.80% September 19, 2018 8 200 196 Series 15 (4),(5) February 25, 2014 3.90% June 19, 2019 8 200 195 Series 17 (4),(5) August 15, 2014 3.90% December 19, 2019 14 350 343 Series 19 (4),(5) December 3, 2014 3.80% March 19, 2020 10 250 246 Series 21 (4),(5) February 25, 2016 5.60% June 19, 2021 17 425 417 Series 23 (4),(5) November 22, 2016 4.85% March 19, 2022 19 475 467 Total 146 $ 3,650 $ 3,577 (1) Holders of Class A and Class 1 preferred shares are entitled to receive non-cumulative (2) Redemption of all preferred shares is subject to regulatory approval. With the exception of Class A Series 2, Class A Series 3 and Class 1 Series 4 preferred shares, MFC may redeem each series, in whole or in part, at par, on the earliest redemption date or every five years thereafter. Class A Series 2 and Series 3 preferred shares are past their respective earliest redemption date and MFC may redeem these shares, in whole or in part, at par at any time, subject to regulatory approval, as noted. MFC may redeem the Class 1 Series 4, in whole or in part, at any time, at $25.00 per share if redeemed on June 19, 2021 and on June 19 every five years thereafter, or at $25.50 per share if redeemed on any other date after June 19, 2016, subject to regulatory approval, as noted. (3) Net of after-tax (4) On the earliest redemption date and every five years thereafter, the annual dividend rate will be reset to the five year Government of Canada bond yield plus a yield specified for each series. The specified yield for Class 1 shares is: Series 3 – 1.41%, Series 5 – 2.90%, Series 7 – 3.13%, Series 9 – 2.86%, Series 11 – 2.61%, Series 13 – 2.22%, Series 15 – 2.16%, Series 17 – 2.36%, Series 19 – 2.30%, Series 21 – 4.97% and Series 23 – 3.83%. (5) On the earliest redemption date and every five years thereafter, Class 1 preferred shares are convertible at the option of the holder into a new series that is one number higher than their existing series, and the holders are entitled to non-cumulative (6) The floating dividend rate for the Class 1 Shares Series 4 will equal the three month Government of Canada Treasury bill yield plus 1.41%. (7) MFC did not exercise its right to redeem all or any of the outstanding Class 1 Shares Series 7 on March 19, 2017 (the earliest redemption date). Dividend rate for Class 1 Shares Series 7 was reset as specified in footnote 4 above to an annual fixed rate of 4.312% for a five year period commencing on March 20, 2017. (8) MFC did not exercise its right to redeem all or any of the outstanding Class 1 Shares Series 9 on September 19, 2017 (the earliest redemption date). Dividend rate for Class 1 Shares Series 9 was reset as specified in footnote 4 above to an annual fixed rate of 4.351% for a five year period commencing on September 20, 2017. |
Summary of Basic and Diluted Earnings Per Common Share | The following table presents basic and diluted earnings per common share of the Company. For the years ended December 31, 2017 2016 Basic earnings per common share $ 0.98 $ 1.42 Diluted earnings per common share 0.98 1.41 |
Summary of Reconciliation of Denominator (Number of Shares) in Calculation of Basic and Diluted Earnings Per Share | The following is a reconciliation of the denominator (number of shares) in the calculation of basic and diluted earnings per share. For the years ended December 31, 2017 2016 Weighted average number of common shares (in millions) 1,978 1,973 Dilutive stock-based awards (1) 8 4 Weighted average number of diluted common shares (in millions) 1,986 1,977 (1) The dilutive effect of stock-based awards was calculated using the treasury stock method. This method calculates the number of incremental shares by assuming the outstanding stock-based awards are (i) exercised and (ii) then reduced by the number of shares assumed to be repurchased from the issuance proceeds, using the average market price of MFC common shares for the year. Excluded from the calculation was a weighted average of 2 million (2016 – 14 million) anti-dilutive stock-based awards. |
Summary of Dividends Payable on Non-cumulative Preferred Shares | The Board also declared dividends on the following non-cumulative Class A Shares Series 2 – $0.29063 per share Class 1 Shares Series 11 – $0.25 per share Class A Shares Series 3 – $0.28125 per share Class 1 Shares Series 13 – $0.2375 per share Class 1 Shares Series 3 – $0.136125 per share Class 1 Shares Series 15 – $0.24375 per share Class 1 Shares Series 4 – $0.141103 per share Class 1 Shares Series 17 – $0.24375 per share Class 1 Shares Series 5 – $0.243188 per share Class 1 Shares Series 19 – $0.2375 per share Class 1 Shares Series 7 – $0.2695 per share Class 1 Shares Series 21 – $0.35 per share Class 1 Shares Series 9 – $0.271938 per share Class 1 Shares Series 23 – $0.303125 per share |
Preferred shares [Member] | |
Summary of Changes in Issued and Outstanding Shares | The changes in issued and outstanding preferred shares are as follows. 2017 2016 For the years ended December 31, Number of (in millions) Amount Number of (in millions) Amount Balance, January 1 146 $ 3,577 110 $ 2,693 Issued, Class 1 shares, Series 21 – – 17 425 Converted, Class 1 shares, Series 3 – – (2 ) (42 ) Issued, Class 1 shares, Series 4 – – 2 42 Issued, Class 1 shares, Series 23 – – 19 475 Issuance costs, net of tax – – – (16 ) Balance, December 31 146 $ 3,577 146 $ 3,577 |
Common shares [Member] | |
Summary of Changes in Issued and Outstanding Shares | The changes in common shares issued and outstanding are as follows. 2017 2016 For the years ended December 31, Number of (in millions) Amount Number of (in millions) Amount Balance, January 1 1,975 $ 22,865 1,972 $ 22,799 Issued on exercise of stock options and deferred share units 7 124 3 66 Total 1,982 $ 22,989 1,975 $ 22,865 |
Capital Management (Tables)
Capital Management (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Schedule of Consolidated Capital | Consolidated capital As at December 31, 2017 2016 Total equity $ 42,163 $ 42,823 Adjusted for AOCI loss on cash flow hedges (109 ) (232 ) Total equity excluding AOCI on cash flow hedges 42,272 43,055 Qualifying capital instruments 8,387 7,180 Total capital $ 50,659 $ 50,235 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Schedule of Options Outstanding | Options outstanding 2017 2016 For the years ended December 31, Number of options (in millions ) Weighted average exercise price Number of options (in millions ) Weighted average exercise price Outstanding, January 1 30 $ 19.80 30 $ 20.72 Granted 4 24.56 6 17.65 Exercised (7 ) 16.03 (3 ) 15.49 Expired (1 ) 39.47 (2 ) 32.92 Forfeited (1 ) 20.86 (1 ) 21.04 Outstanding, December 31 25 $ 20.45 30 $ 19.80 Exercisable, December 31 12 $ 19.93 18 $ 20.15 |
Schedule of Range of Exercise Prices of Outstanding Share Options | Options outstanding Options exercisable For the year ended December 31, 2017 Number of options (in millions ) Weighted average exercise price Weighted average remaining contractual life (in years) Number of options (in millions ) Weighted average exercise price Weighted average remaining contractual life (in years) $11.23 – $20.99 14 $ 17.08 4.91 9 $ 16.78 3.05 $21.00 – $29.99 10 $ 22.77 6.88 2 $ 21.40 3.77 $30.00 – $37.71 1 $ 37.71 0.14 1 $ 37.71 0.14 Total 25 $ 20.45 5.44 12 $ 19.93 2.87 |
Schedule of Deferred Share Units | For the years ended December 31, Number of DSUs (in thousands) 2017 2016 Outstanding, January 1 2,682 2,542 Issued 156 254 Reinvested 88 97 Redeemed (279 ) (184 ) Forfeitures and cancellations (2 ) (27 ) Outstanding, December 31 2,645 2,682 |
Employee Future Benefits (Table
Employee Future Benefits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Pension and Retiree Welfare Plans | (c) Pension and retiree welfare plans Pension plans Retiree welfare plans For the years ended December 31, 2017 2016 2017 2016 Changes in defined benefit obligation: Ending balance prior year $ 4,767 $ 4,823 $ 682 $ 713 Plan mergers (1) – 143 – – Current service cost 48 52 1 1 Past service cost – (57 ) – – Interest cost 182 196 26 28 Plan participants’ contributions 1 1 4 5 Actuarial losses (gains) due to: Experience 15 – (9 ) (2 ) Demographic assumption changes – (94 ) – (16 ) Economic assumption changes 214 116 41 20 Benefits paid (315 ) (314 ) (45 ) (50 ) Impact of changes in foreign exchange rates (206 ) (99 ) (35 ) (17 ) Defined benefit obligation, December 31 $ 4,706 $ 4,767 $ 665 $ 682 Pension plans Retiree welfare plans For the years ended December 31, 2017 2016 2017 2016 Change in plan assets: Fair value of plan assets, ending balance prior year $ 4,277 $ 4,122 $ 603 $ 635 Plan mergers (1) – 129 – – Interest income 164 169 23 25 Employer contributions 85 106 12 – Plan participants’ contributions 1 1 4 5 Benefits paid (315 ) (314 ) (45 ) (50 ) Administration costs (5 ) (7 ) (2 ) (2 ) Actuarial gains (losses) 312 158 30 8 Impact of changes in foreign exchange rates (191 ) (87 ) (38 ) (18 ) Fair value of plan assets, December 31 $ 4,328 $ 4,277 $ 587 $ 603 (1) In Canada, two smaller pension plans were merged into the primary Manulife pension plan in 2016. Amounts shown represent the value of the defined benefit obligations and assets transferred from the smaller plans into the primary Manulife plan. |
Summary of Amounts Recognized in Consolidated Statements of Financial Position | (d) Amounts recognized in the Consolidated Statements of Financial Position Pension plans Retiree welfare plans As at December 31, 2017 2016 2017 2016 Development of net defined benefit liability Defined benefit obligation $ 4,706 $ 4,767 $ 665 $ 682 Fair value of plan assets 4,328 4,277 587 603 Deficit 378 490 78 79 Effect of asset limit (1) – – – – Deficit and net defined benefit liability 378 490 78 79 Deficit is comprised of: Funded or partially funded plans (383 ) (292 ) (72 ) (63 ) Unfunded plans 761 782 150 142 Deficit and net defined benefit liability $ 378 $ 490 $ 78 $ 79 (1) No reconciliation has been provided for the effect of the asset limit since there was no effect in either year. For the funded pension plans, the present value of the economic benefits available in the form of reductions in future contributions to the plans is significantly greater than the surplus that would be expected to develop. |
Summary of Disaggregation of Defined Benefit Obligation | (e) Disaggregation of defined benefit obligation U.S. plans Canadian plans Pension plans Retiree welfare plans Pension plans Retiree welfare plans As at December 31, 2017 2016 2017 2016 2017 2016 2017 2016 Active members $ 592 $ 637 $ 34 $ 38 $ 393 $ 403 $ 20 $ 20 Inactive and retired members 2,434 2,528 481 502 1,287 1,199 130 122 Total $ 3,026 $ 3,165 $ 515 $ 540 $ 1,680 $ 1,602 $ 150 $ 142 |
Summary of Major Categories of Plan Assets and Actual Per Cent Allocation to Each Category | (f) Fair value measurements The major categories of plan assets and the actual per cent allocation to each category are as follows. U.S. plans (1) Canadian plans (2) Pension plans Retiree welfare plans Pension plans Retiree welfare plans As at December 31, 2017 Fair value % of total Fair value % of total Fair value % of total Fair value % of total Cash and cash equivalents $ 33 1% $ 33 6% $ 5 1% $ – – Equity securities (3) 695 24% 45 8% 212 15% – – Debt securities 1,979 67% 502 85% 1,165 84% – – Other investments (4) 235 8% 7 1% 4 0% – – Total $ 2,942 100% $ 587 100% $ 1,386 100% $ – – U.S. plans (1) Canadian plans (2) Pension plans Retiree welfare plans Pension plans Retiree welfare plans As at December 31, 2016 Fair value % of total Fair value % of total Fair value % of total Fair value % of total Cash and cash equivalents $ 15 1% $ 19 3% $ 21 2% $ – – Equity securities (3) 825 28% 150 25% 460 34% – – Debt securities 1,834 62% 427 71% 809 60% – – Other investments (4) 259 9% 7 1% 54 4% – – Total $ 2,933 100% $ 603 100% $ 1,344 100% $ – – (1) All the U.S. pension and retiree welfare plan assets have daily quoted prices in active markets, except for the private equity, timber and agriculture assets. In the aggregate, the latter assets represent approximately 6% of all U.S. pension and retiree welfare plan assets as at December 31, 2017 (2016 – 6%). (2) All the Canadian pension plan assets have daily quoted prices in active markets, except for the group annuity contract assets that represent approximately 0.3% of all Canadian pension plan assets as at December 31, 2017 (2016 – 3%, including real estate and mortgage assets that were sold in 2017). (3) Equity securities include direct investments in MFC common shares of $1.3 (2016 – $1.1) in the U.S. retiree welfare plan and $nil (2016 – $nil) in Canada. (4) Other U.S. plan assets include investment in private equity, timberland and agriculture, and managed futures in 2017. Other Canadian pension plan assets include investment in the group annuity contract. |
Summary of Components of Net Benefit Cost for Pension Plans and Retiree Welfare Plans | (g) Net benefit cost recognized in the Consolidated Statements of Income Components of the net benefit cost for the pension plans and retiree welfare plans were as follows. Pension plans Retiree welfare plans For the years ended December 31, 2017 2016 2017 2016 Defined benefit current service cost (1) $ 48 $ 52 $ 1 $ 1 Defined benefit administrative expenses 5 7 2 2 Past service cost – plan amendments (2) – (57 ) – – Service cost 53 2 3 3 Interest on net defined benefit (asset) liability (1) 18 27 3 3 Defined benefit cost 71 29 6 6 Defined contribution cost 75 69 – – Net benefit cost $ 146 $ 98 $ 6 $ 6 (1) Includes service and interest costs for the two plans merged into the primary Manulife plan after August 1, 2016. (2) Past service cost in 2016 includes ($55) reflecting the removal of the advance provision made in prior years for non-contractual, ad-hoc |
Summary of Re-measurement Effects Recognized in Other Comprehensive Income | (h) Re-measurement Pension plans Retiree welfare plans For the years ended December 31, 2017 2016 2017 2016 Actuarial gains (losses) on defined benefit obligations: Experience $ (15 ) $ – $ 9 $ 2 Demographic assumption changes – 94 – 16 Economic assumption changes (214 ) (116 ) (41 ) (20 ) Return on plan assets greater (less) than discount rate 312 158 30 8 Total re-measurement $ 83 $ 136 $ (2 ) $ 6 |
Summary of Key Assumptions Used by to Determine Defined Benefit Obligation and Net Benefit Cost for Defined Benefit Pension Plans and Retiree Welfare Plans | (i) Assumptions The key assumptions used by the Company to determine the defined benefit obligation and net benefit cost for the defined benefit pension plans and retiree welfare plans were as follows. U.S. Plans Canadian Plans Pension plans Retiree welfare plans Pension plans Retiree welfare plans For the years ended December 31, 2017 2016 2017 2016 2017 2016 2017 2016 To determine the defined benefit obligation at end of year (1) : Discount rate 3.6% 4.1% 3.6% 4.1% 3.5% 3.9% 3.6% 4.0% Initial health care cost trend rate (2) n/a n/a 8.5% 8.8% n/a n/a 5.9% 6.0% To determine the defined benefit cost for the year (1) Discount rate 4.1% 4.4% 4.1% 4.3% 3.9% 4.1% 4.0% 4.1% Initial health care cost trend rate (2) n/a n/a 8.8% 9.0% n/a n/a 6.0% 6.1% (1) Inflation and salary increase assumptions are not shown as they do not materially affect obligations and cost. (2) The health care cost trend rate used to measure the U.S. based retiree welfare obligation was 8.5% grading to 5.0% for 2032 and years thereafter (2016 – 8.8% grading to 5.0% for 2032) and to measure the net benefit cost was 8.8% grading to 5.0% for 2032 and years thereafter (2016 – 9.0% grading to 5.0% for 2032). In Canada, the rate used to measure the retiree welfare obligation was 5.9% grading to 4.8% for 2026 and years thereafter (2016 – 6.0% grading to 4.8% for 2026) and to measure the net benefit cost was 6.0% grading to 4.8% for 2026 and years thereafter (2016 – 6.1% grading to 4.8% for 2026). |
Summary of Life Expectancies Underlying Values of Obligations in Defined Benefit Pension and Retiree Welfare Plans | Assumptions regarding future mortality are based on published statistics and mortality tables. The current life expectancies underlying the values of the obligations in the defined benefit pension and retiree welfare plans are as follows. As at December 31, 2017 U.S. Canada Life expectancy (in years) for those currently age 65 Males 22.4 22.8 Females 23.9 24.7 Life expectancy (in years) at age 65 for those currently age 45 Males 24.0 23.8 Females 25.5 25.6 |
Summary of Potential Impact on Obligations Arising From Changes in Key Assumptions | (j) Sensitivity of assumptions on obligation Assumptions used can have a significant effect on the obligations reported for defined benefit pension and retiree welfare plans. The potential impact on the obligations arising from changes in the key assumptions is set out in the following table. The sensitivities assume all other assumptions are held constant. In actuality, inter-relationships with other assumptions may exist. As at December 31, 2017 Pension plans Retiree welfare plans Discount rate: Impact of a 1% increase $ (451 ) $ (67 ) Impact of a 1% decrease 536 82 Health care cost trend rate: Impact of a 1% increase n/a 24 Impact of a 1% decrease n/a (21 ) Mortality rates (1) Impact of a 10% decrease 119 16 (1) If the actuarial estimates of mortality are adjusted in the future to reflect unexpected decreases in mortality, the effect of a 10% decrease in mortality rates at each future age would be an increase in life expectancy at age 65 of 0.9 years for U.S. males and females and 0.8 years for Canadian males and females. |
Summary of Weighted Average Duration of the Defined Benefit Obligations | (k) Maturity profile The weighted average duration (in years) of the defined benefit obligations is as follows. Pension plans Retiree welfare plans As at December 31, 2017 2016 2017 2016 U.S. plans 9.5 9.2 9.8 9.1 Canadian plans 12.8 12.7 14.2 14.2 |
Summary of Cash Payments | (l) Cash flows – contributions Total cash payments for all employee future benefits, comprised of cash contributed by the Company to funded defined benefit pension and retiree welfare plans, cash payments directly to beneficiaries in respect of unfunded pension and retiree welfare plans, and cash contributed to defined contribution pension plans, were as follows. Pension plans Retiree welfare plans For the years ended December 31, 2017 2016 2017 2016 Defined benefit plans $ 85 $ 106 $ 12 $ – Defined contribution plans 75 69 – – Total $ 160 $ 175 $ 12 $ – |
Interests in Structured Entit46
Interests in Structured Entities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Schedule Investment and Maximum Exposure to Loss Related to Significant Unconsolidated Structured Entities | The following table presents the Company’s investment and maximum exposure to loss from significant unconsolidated investment SEs, some of which are sponsored by the Company. The Company does not provide guarantees to other parties against the risk of loss from these SEs. Company’s investment (1) Company’s maximum exposure to loss (2) As at December 31, 2017 2016 2017 2016 Leveraged leases (3) $ 3,273 $ 3,369 $ 3,273 $ 3,369 Timberland companies (4) 736 736 786 749 Real estate companies (5) 361 327 361 327 Total $ 4,370 $ 4,432 $ 4,420 $ 4,445 (1) The Company’s investments in these unconsolidated SEs are included in invested assets and the Company’s returns from them are included in net investment income and AOCI. (2) The Company’s maximum exposure to loss from each SE is limited to amounts invested in each, plus unfunded capital commitments, if any. The Company’s investment commitments are disclosed in note 18. The maximum loss is expected to occur only upon the entity’s bankruptcy/liquidation, or as a result of a natural disaster in the case of the timber companies. (3) These entities are statutory business trusts which use capital provided by the Company and senior debt provided by other parties to finance the acquisition of assets. These assets are leased to third-party lessees under long-term leases. The Company owns equity capital in these business trusts. The Company does not consolidate any of the trusts that are party to the lease arrangements because the Company does not have decision-making power over them. (4) These entities own and operate timberlands. The Company invests in their equity and debt. The Company’s returns include investment income, investment advisory fees, forestry management fees and performance advisory fees. The Company does not control these entities because it either does not have the power to govern their financial and operating policies or does not have significant variable returns from them, or both. (5) These entities, which include the Manulife U.S. REIT, own and manage commercial real estate. The Company invests in their equity. The Company’s returns include investment income, investment management fees, property management fees, acquisition/disposition fees, and leasing fees. The Company does not control these entities because it either does not have the power to govern their financial and operating policies or does not have significant variable returns from them, or both. |
Schedule of Interests and Maximum Exposure to Loss From Significant Unconsolidated Financing Structured Entities | The following table presents the Company’s interests and maximum exposure to loss from significant unconsolidated financing SEs. Company’s interests (1) As at December 31, 2017 2016 Manulife Finance (Delaware), L.P. (2) $ 835 $ 876 Manulife Financial Capital Trust II (3) 1,000 1,000 Total $ 1,835 $ 1,876 (1) The Company’s interests include amounts borrowed from the SEs and the Company’s investment in their subordinated capital, and foreign currency and interest swaps with them, if any. (2) This entity is a wholly-owned partnership used to facilitate the Company’s financing. Refer to notes 12 and 18. (3) This entity is an open-ended trust that is used to facilitate the Company’s financing. Refer to note 12. |
Schedule of Securitized Holdings by Type and Asset Quality | The following table presents investments in securitized holdings by the type and asset quality. 2017 2016 As at December 31, CMBS RMBS ABS Total Total AAA $ 1,390 $ 45 $ 1,068 $ 2,503 $ 2,269 AA – – 401 401 393 A 16 – 488 504 592 BBB – – 142 142 221 BB and below 12 – 14 26 38 Total company exposure $ 1,418 $ 45 $ 2,113 $ 3,576 $ 3,513 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Condensed Consolidated Statements of Income Information for MFC and MFLP | Condensed Consolidated Statements of Income Information For the year ended December 31, 2017 MFC MLI (1) Other Consolidating Total MFLP Total revenue $ 182 $ 58,445 $ 270 $ (574) $ 58,323 $ 29 Net income (loss) attributed to shareholders 2,104 2,467 (257 ) (2,210) 2,104 6 For the year ended December 31, 2016 MFC MLI (1) Other Consolidating Total MFLP Total revenue $ 518 $ 53,219 $ 377 $ (777 ) $ 53,337 $ 44 Net income (loss) attributed to shareholders 2,929 2,916 (359 ) (2,557 ) 2,929 (1 ) (1) During 2017, MLI acquired John Hancock Reassurance Company Ltd. (“JHRECO”) from MFC. MLI has restated its historical IFRS financial statements to reflect the combined accounts of MLI and JHRECO on a retroactive basis. |
Summary of Condensed Consolidated Statements of Financial Position for MFC and MFLP | Condensed Consolidated Statements of Financial Position As at December 31, 2017 MFC MLI (1) Other Consolidating Total MFLP Invested assets $ 21 $ 334,191 $ 10 $ – $ 334,222 $ 5 Total other assets 48,688 71,180 4 (48,868 ) 71,004 1,033 Segregated funds net assets – 324,307 – – 324,307 – Insurance contract liabilities – 304,605 – – 304,605 – Investment contract liabilities – 3,126 – – 3,126 – Segregated funds net liabilities – 324,307 – – 324,307 – Total other liabilities 7,696 48,145 – (509 ) 55,332 831 As at December 31, 2016 MFC MLI (1) Other Consolidating Total MFLP Invested assets $ 161 $ 321,698 $ 10 $ – $ 321,869 $ 6 Total other assets 48,073 83,607 4 (48,049 ) 83,635 1,085 Segregated funds net assets – 315,177 – – 315,177 – Insurance contract liabilities – 297,505 – – 297,505 – Investment contract liabilities – 3,275 – – 3,275 – Segregated funds net liabilities – 315,177 – – 315,177 – Total other liabilities 6,402 55,808 – (309 ) 61,901 882 (1) During 2017, MLI acquired John Hancock Reassurance Company Ltd. (“JHRECO”) from MFC. MLI has restated its historical IFRS financial statements to reflect the combined accounts of MLI and JHRECO on a retroactive basis. |
Schedule of Pledged Assets | The amounts pledged were as follows. 2017 2016 As at December 31, Debt securities Other Debt securities Other In respect of: Derivatives $ 3,189 $ 44 $ 4,678 $ 99 Regulatory requirements 398 86 409 78 Real estate – 2 – 22 Repurchase agreements 228 – 255 – Non-registered – 412 – 464 Other 3 271 3 174 Total $ 3,818 $ 815 $ 5,345 $ 837 |
Segmented Information (Tables)
Segmented Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Results by Segments | Effective January 1, 2017, the operations of Manulife Asset Management are being reflected in the respective Divisional results. These operations were reported in the Corporate and Other division for 2016. By segment As at and for the year ended December 31, 2017 Asia Division Canadian U.S. Division Corporate Total Revenue Premium income Life and health insurance $ 13,145 $ 4,322 $ 6,778 $ 110 $ 24,355 Annuities and pensions 2,568 443 844 – 3,855 Net premium income 15,713 4,765 7,622 110 28,210 Net investment income 4,080 4,573 10,649 65 19,367 Other revenue 1,739 3,517 6,166 (676 ) 10,746 Total revenue 21,532 12,855 24,437 (501 ) 58,323 Contract benefits and expenses Life and health insurance 11,961 5,644 16,464 461 34,530 Annuities and pensions 2,051 1,813 907 – 4,771 Net benefits and claims 14,012 7,457 17,371 461 39,301 Interest expense 164 307 37 631 1,139 Other expenses 4,937 4,435 6,050 (40 ) 15,382 Total contract benefits and expenses 19,113 12,199 23,458 1,052 55,822 Income (loss) before income taxes 2,419 656 979 (1,553 ) 2,501 Income tax recovery (expense) (403 ) 95 (1,275 ) 1,344 (239 ) Net income (loss) 2,016 751 (296 ) (209 ) 2,262 Less net income (loss) attributed to: Non-controlling 197 – – (3 ) 194 Participating policyholders (30 ) (6 ) – – (36 ) Net income (loss) attributed to shareholders $ 1,849 $ 757 $ (296 ) $ (206 ) $ 2,104 Total assets $ 105,233 $ 220,755 $ 383,528 $ 20,017 $ 729,533 As at and for the year ended December 31, 2016 Asia Division Canadian U.S. Division Corporate Total Revenue Premium income Life and health insurance $ 12,111 $ 4,366 $ 6,703 $ 88 $ 23,268 Annuities and pensions 3,474 606 284 – 4,364 Net premium income 15,585 4,972 6,987 88 27,632 Net investment income 2,143 4,255 7,980 146 14,524 Other revenue 1,566 3,480 5,591 544 11,181 Total revenue 19,294 12,707 20,558 778 53,337 Contract benefits and expenses Life and health insurance 10,435 5,207 10,829 806 27,277 Annuities and pensions 2,913 1,179 2,765 – 6,857 Net benefits and claims 13,348 6,386 13,594 806 34,134 Interest expense 146 305 45 517 1,013 Other expenses 4,241 4,279 5,619 722 14,861 Total contract benefits and expenses 17,735 10,970 19,258 2,045 50,008 Income (loss) before income taxes 1,559 1,737 1,300 (1,267 ) 3,329 Income tax recovery (expense) (243 ) (250 ) (166 ) 463 (196 ) Net income (loss) 1,316 1,487 1,134 (804 ) 3,133 Less net income (loss) attributed to: Non-controlling 115 – – 28 143 Participating policyholders 60 1 – – 61 Net income (loss) attributed to shareholders $ 1,141 $ 1,486 $ 1,134 $ (832 ) $ 2,929 Total assets $ 92,843 $ 214,820 $ 386,619 $ 26,399 $ 720,681 |
Summary of Results by Geographic Location | The results of the Company’s business segments differ from geographic segment primarily due to the allocation of Company’s Corporate and Other division into the geographic segments to which its businesses relate. By geographic location As at and for the year ended December 31, 2017 Asia Canada U.S. Other Total Revenue Premium income Life and health insurance $ 13,215 $ 3,894 $ 6,780 $ 466 $ 24,355 Annuities and pensions 2,568 443 844 – 3,855 Net premium income 15,783 4,337 7,624 466 28,210 Net investment income 4,258 4,642 10,407 60 19,367 Other revenue 1,632 3,187 5,911 16 10,746 Total revenue $ 21,673 $ 12,166 $ 23,942 $ 542 $ 58,323 As at and for the year ended December 31, 2016 Asia Canada U.S. Other Total Revenue Premium income Life and health insurance $ 12,184 $ 3,909 $ 6,705 $ 470 $ 23,268 Annuities and pensions 3,474 606 284 – 4,364 Net premium income 15,658 4,515 6,989 470 27,632 Net investment income 2,368 4,096 7,880 180 14,524 Other revenue 1,608 3,443 6,105 25 11,181 Total revenue $ 19,634 $ 12,054 $ 20,974 $ 675 $ 53,337 |
Related Parties (Tables)
Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Compensation of Key Management Personnel | Acordingly, the summary of compensation of key management personnel is as follows. For the years ended December 31, 2017 2016 Short-term employee benefits $ 44 $ 33 Post-employment benefits 3 3 Share-based payments 43 44 Termination benefits 6 4 Other long-term benefits 2 3 Total $ 98 $ 87 |
Subsidiaries (Tables)
Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Directly and Indirectly Held Major Operating Subsidiaries | The following is a list of Manulife’s directly and indirectly held major operating subsidiaries. As at December 31, 2017 (100% owned unless otherwise noted in brackets beside company name) Address Description The Manufacturers Life Insurance Company Toronto, Canada Leading Canadian-based financial services company that offers a diverse range of financial protection products and wealth management services Manulife Holdings (Alberta) Limited Calgary, Canada Holding company John Hancock Financial Corporation Wilmington, Delaware, U.S.A. Holding company The Manufacturers Investment Corporation Michigan, U.S.A. Holding company John Hancock Reassurance Company Ltd. U.S.A. Michigan, U.S.A. Captive insurance subsidiary that provides life, annuity and long-term care reinsurance to affiliates John Hancock Life Insurance Company (U.S.A.) Michigan, U.S.A. U.S. life insurance company licensed in all states, except New York John Hancock Subsidiaries LLC Wilmington, Delaware, U.S.A. Holding company John Hancock Financial Network, Inc. Boston, Massachusetts, U.S.A. Financial services distribution organization John Hancock Advisers, LLC Boston, Massachusetts, U.S.A. Investment advisor John Hancock Funds, LLC Boston, Massachusetts, U.S.A. Broker-dealer Manulife Asset Management (US) LLC Wilmington, Delaware, U.S.A. Asset management company Hancock Natural Resource Group, Inc. Boston, Massachusetts, U.S.A. Manager of globally diversified timberland and agricultural portfolios John Hancock Life Insurance Company of New York New York, U.S.A. U.S. life insurance company licensed in New York John Hancock Investment Management Services, LLC Boston, Massachusetts, U.S.A. Investment advisor John Hancock Life & Health Insurance Company Boston, Massachusetts, U.S.A. U.S. life insurance company licensed in all states John Hancock Distributors LLC Wilmington, Delaware, U.S.A. Broker-dealer John Hancock Insurance Agency, Inc. Wilmington, Delaware, U.S.A. Insurance agency Manulife Reinsurance Limited Hamilton, Bermuda Provides life and financial reinsurance to affiliates Manulife Reinsurance (Bermuda) Limited Hamilton, Bermuda Provides life and annuity reinsurance to affiliates Manulife Bank of Canada Waterloo, Canada Provides integrated banking products and service options not available from an insurance company Manulife Asset Management Holdings (Canada) Inc. Toronto, Canada Holding company Manulife Asset Management Limited Toronto, Canada Provides investment counseling, portfolio and mutual fund management in Canada First North American Insurance Company Toronto, Canada Property and casualty insurance company NAL Resources Management Limited Calgary, Canada Management company for oil and gas properties Manulife Resources Limited Calgary, Canada Holds oil and gas properties Manulife Property Limited Partnership Toronto, Canada Holds oil and gas royalties Manulife Property Limited Partnership II Toronto, Canada Holds oil and gas royalties and foreign bonds and equities Manulife Western Holdings Limited Partnership Calgary, Canada Holds oil and gas properties Manulife Securities Investment Services Inc. Oakville, Canada Mutual fund dealer for Canadian operations Manulife Holdings (Bermuda) Limited Hamilton, Bermuda Holding company Manufacturers P & C Limited St. Michael, Barbados Provides property and casualty reinsurance Manulife Financial Asia Limited Hong Kong, China Holding company Manulife (Cambodia) PLC Phnom Penh, Cambodia Life insurance company Manufacturers Life Reinsurance Limited St. Michael, Barbados Provides life and annuity reinsurance to affiliates Manulife (Vietnam) Limited Ho Chi Minh City, Vietnam Life insurance company Manulife Asset Management (Vietnam) Company Limited Ho Chi Minh City, Vietnam Fund management company Manulife International Holdings Limited Hong Kong, China Holding company Manulife (International) Limited Hong Kong, China Life insurance company Manulife-Sinochem Life Insurance Co. Ltd. (51%) Shanghai, China Life insurance company Manulife Asset Management International Holdings Limited Hong Kong, China Holding company Manulife Asset Management (Hong Kong) Limited Hong Kong, China Investment management and advisory company marketing mutual funds Manulife Asset Management (Taiwan) Co., Ltd. Taipei, Taiwan Asset management company Manulife Life Insurance Company Tokyo, Japan Life insurance company Manulife Asset Management (Japan) Limited Tokyo, Japan Investment management and advisory company and mutual fund business Manulife Insurance (Thailand) Public Company Limited (92.1%) (1) Bangkok, Thailand Life insurance company Manulife Asset Management (Thailand) Company Limited (95.3%) (1) Bangkok, Thailand Investment management company Manulife Holdings Berhad (59.5%) Kuala Lumpur, Malaysia Holding company Manulife Insurance Berhad (59.5%) Kuala Lumpur, Malaysia Life insurance company Manulife Asset Management Services Berhad (59.5%) Kuala Lumpur, Malaysia Asset management company Manulife (Singapore) Pte. Ltd. Singapore Life insurance company Manulife Asset Management (Singapore) Pte. Ltd. Singapore Asset management company The Manufacturers Life Insurance Co. (Phils.), Inc. Makati City, Philippines Life insurance company Manulife Chinabank Life Assurance Corporation (60%) Makati City, Philippines Life insurance company PT Asuransi Jiwa Manulife Indonesia Jakarta, Indonesia Life insurance company PT Manulife Aset Manajemen Indonesia Jakarta, Indonesia Investment management company marketing mutual funds and discretionary funds Manulife Asset Management (Europe) Limited London, England Investment management company for Manulife Financial’s international funds Manulife Assurance Company of Canada Toronto, Canada Life insurance company EIS Services (Bermuda) Limited Hamilton, Bermuda Investment holding company Berkshire Insurance Services Inc. Toronto, Canada Investment holding company JH Investments (Delaware) LLC Boston, Massachusetts, U.S.A. Investment holding company Manulife Securities Incorporated Oakville, Canada Investment dealer Manulife Asset Management (North America) Limited Toronto, Canada Investment advisor Regional Power Inc. Mississauga, Canada Developer and operator of hydro-electric power projects (1) MFC voting rights percentages are the same as the ownership percentages except for Manulife Insurance (Thailand) Public Company Limited and Manulife Asset Management (Thailand) Company Limited where MFC’s voting rights are 98.1% and 98.9%, respectively. |
Segregated Funds (Tables)
Segregated Funds (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Composition of Net Assets by Categories of Segregated Funds | The composition of net assets by categories of segregated funds was within the following ranges for the years ended December 31, 2017 and 2016. Ranges in per cent Type of fund 2017 2016 Money market funds 2% to 3% 2% to 3% Fixed income funds 14% to 15% 14% to 15% Balanced funds 22% to 29% 22% to 24% Equity funds 55% to 60% 59% to 61% |
Summary of Composition of Segregated Funds Net Assets | The carrying value and change in segregated funds net assets are as follows. Segregated funds net assets As at December 31, 2017 2016 Investments at market value Cash and short-term securities $ 4,756 $ 4,524 Debt securities 15,472 15,651 Equities 12,624 12,458 Mutual funds 288,007 278,966 Other investments 4,514 4,552 Accrued investment income 201 201 Other assets and liabilities, net (766 ) (644 ) Total segregated funds net assets $ 324,808 $ 315,708 Composition of segregated funds net assets Held by policyholders $ 324,307 $ 315,177 Held by the Company 501 531 Total segregated funds net assets $ 324,808 $ 315,708 |
Summary of Changes in Segregated Funds Net Assets | Changes in segregated funds net assets For the years ended December 31, 2017 2016 Net policyholder cash flow Deposits from policyholders $ 34,776 $ 33,130 Net transfers to general fund (1,734 ) (878 ) Payments to policyholders (45,970 ) (39,731 ) (12,928 ) (7,479 ) Investment related Interest and dividends 16,930 15,736 Net realized and unrealized investment gains 24,384 4,097 41,314 19,833 Other Management and administration fees (4,496 ) (4,386 ) Impact of changes in foreign exchange rates (14,790 ) (6,007 ) (19,286 ) (10,393 ) Net additions 9,100 1,961 Segregated funds net assets, beginning of year 315,708 313,747 Segregated funds net assets, end of year $ 324,808 $ 315,708 |
Information Provided in Conne52
Information Provided in Connection with Investments in Deferred Annuity Contracts andSignatureNotes Issued or Assumed by John Hancock Life Insurance Company (U.S.A.) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Condensed Consolidated Statement of Financial Position | Condensed Consolidated Statement of Financial Position As at December 31, 2017 MFC JHUSA Other Consolidation Consolidated Assets Invested assets $ 21 $ 108,144 $ 226,421 $ (364 ) $ 334,222 Investments in unconsolidated subsidiaries 48,374 6,509 14,999 (69,882 ) – Reinsurance assets – 49,927 8,281 (27,849 ) 30,359 Other assets 314 18,678 40,715 (19,062 ) 40,645 Segregated funds net assets – 176,139 149,812 (1,644 ) 324,307 Total assets $ 48,709 $ 359,397 $ 440,228 $ (118,801 ) $ 729,533 Liabilities and equity Insurance contract liabilities $ – $ 147,155 $ 185,884 $ (28,434 ) $ 304,605 Investment contract liabilities – 1,130 1,998 (2 ) 3,126 Other liabilities 297 19,399 41,394 (18,930 ) 42,160 Long-term debt 4,784 – 1 – 4,785 Capital instruments 2,615 584 5,188 – 8,387 Segregated funds net liabilities – 176,139 149,812 (1,644 ) 324,307 Shareholders’ equity 41,013 14,990 54,801 (69,791 ) 41,013 Participating policyholders’ equity – – 221 – 221 Non-controlling – – 929 – 929 Total liabilities and equity $ 48,709 $ 359,397 $ 440,228 $ (118,801 ) $ 729,533 Condensed Consolidated Statement of Financial Position As at December 31, 2016 MFC JHUSA Other Consolidation Consolidated Assets Invested assets $ 161 $ 109,063 $ 213,043 $ (398 ) $ 321,869 Investments in unconsolidated subsidiaries 47,758 6,457 17,504 (71,719 ) – Reinsurance assets – 51,537 10,069 (26,654 ) 34,952 Other assets 315 28,718 43,931 (24,281 ) 48,683 Segregated funds net assets – 174,917 142,400 (2,140 ) 315,177 Total assets $ 48,234 $ 370,692 $ 426,947 $ (125,192 ) $ 720,681 Liabilities and equity Insurance contract liabilities $ – $ 147,504 $ 177,524 $ (27,523 ) $ 297,505 Investment contract liabilities – 1,251 2,027 (3 ) 3,275 Other liabilities 252 28,892 43,994 (24,113 ) 49,025 Long-term debt 5,689 – 7 – 5,696 Capital instruments 461 627 6,092 – 7,180 Segregated funds net liabilities – 174,917 142,400 (2,140 ) 315,177 Shareholders’ equity 41,832 17,501 53,912 (71,413 ) 41,832 Participating policyholders’ equity – – 248 – 248 Non-controlling – – 743 – 743 Total liabilities and equity $ 48,234 $ 370,692 $ 426,947 $ (125,192 ) $ 720,681 |
Condensed Consolidated Statement of Income | Condensed Consolidated Statement of Income For the year ended December 31, 2017 MFC JHUSA Other Consolidation Consolidated Revenue Net premium income – 11,084 17,130 (4 ) 28,210 Net investment income (loss) 178 7,986 11,947 (744 ) 19,367 Net other revenue 4 2,874 10,912 (3,044 ) 10,746 Total revenue 182 21,944 39,989 (3,792 ) 58,323 Contract benefits and expenses Net benefits and claims – 20,803 19,179 (681 ) 39,301 Commissions, investment and general expenses 11 3,208 13,900 (2,097 ) 15,022 Other expenses 404 194 1,915 (1,014 ) 1,499 Total contract benefits and expenses 415 24,205 34,994 (3,792 ) 55,822 Income (loss) before income taxes (233 ) (2,261 ) 4,995 – 2,501 Income tax (expense) recovery 62 1,134 (1,435 ) – (239 ) Income (loss) after income taxes (171 ) (1,127 ) 3,560 – 2,262 Equity in net income (loss) of unconsolidated subsidiaries 2,275 628 (486 ) (2,417 ) – Net income (loss) $ 2,104 $ (499 ) $ 3,074 $ (2,417 ) $ 2,262 Net income (loss) attributed to: Non-controlling $ – $ – $ 194 $ – $ 194 Participating policyholders – (10 ) (36 ) 10 (36 ) Shareholders 2,104 (489 ) 2,916 (2,427 ) 2,104 $ 2,104 $ (499 ) $ 3,074 $ (2,417 ) $ 2,262 Condensed Consolidated Statement of Income For the year ended December 31, 2016 MFC JHUSA Other Consolidation Consolidated Revenue Net premium income – 5,021 22,611 – 27,632 Net investment income (loss) 475 6,191 9,092 (1,234 ) 14,524 Net other revenue 43 2,569 11,108 (2,539 ) 11,181 Total revenue 518 13,781 42,811 (3,773 ) 53,337 Contract benefits and expenses Net benefits and claims – 10,340 24,748 (954 ) 34,134 Commissions, investment and general expenses 11 3,272 13,016 (1,840 ) 14,459 Other expenses 259 59 2,076 (979 ) 1,415 Total contract benefits and expenses 270 13,671 39,840 (3,773 ) 50,008 Income (loss) before income taxes 248 110 2,971 – 3,329 Income tax (expense) recovery 28 251 (475 ) – (196 ) Income (loss) after income taxes 276 361 2,496 – 3,133 Equity in net income (loss) of unconsolidated subsidiaries 2,653 211 572 (3,436 ) – Net income (loss) $ 2,929 $ 572 $ 3,068 $ (3,436 ) $ 3,133 Net income (loss) attributed to: Non-controlling $ – $ – $ 143 $ – $ 143 Participating policyholders – (48 ) 61 48 61 Shareholders 2,929 620 2,864 (3,484 ) 2,929 $ 2,929 $ 572 $ 3,068 $ (3,436 ) $ 3,133 |
Consolidated Statement of Cash Flows | Consolidated Statement of Cash Flows For the year ended December 31, 2017 MFC (Guarantor) JHUSA (Issuer) Other subsidiaries Consolidation adjustments Consolidated MFC Operating activities Net income (loss) $ 2,104 $ (499 ) $ 3,074 $ (2,417 ) $ 2,262 Adjustments: Equity in net income of unconsolidated subsidiaries (2,275 ) (628 ) 486 2,417 – Increase (decrease) in insurance contract liabilities – 16,877 3,146 – 20,023 Increase (decrease) in investment contract liabilities – 55 118 – 173 (Increase) decrease in reinsurance assets – (1,890 ) 4,159 – 2,269 Amortization of (premium) discount on invested assets – 24 206 – 230 Other amortization 4 123 433 – 560 Net realized and unrealized (gains) losses and impairment on assets (7 ) (2,609 ) (4,572 ) – (7,188 ) Deferred income tax expense (recovery) (59 ) (2,239 ) 1,967 – (331 ) Stock option expense – (4 ) 19 – 15 Cash provided by (used in) operating activities before undernoted items (233 ) 9,210 9,036 – 18,013 Dividends from unconsolidated subsidiary 2,700 125 1,175 (4,000 ) – Changes in policy related and operating receivables and payables (45 ) (4,627 ) 4,450 – (222 ) Cash provided by (used in) operating activities 2,422 4,708 14,661 (4,000 ) 17,791 Investing activities Purchases and mortgage advances – (30,645 ) (56,579 ) – (87,224 ) Disposals and repayments – 26,952 43,768 – 70,720 Changes in investment broker net receivables and payables – 182 45 – 227 Investment in common shares of subsidiaries (2,473 ) – – 2,473 – Net cash decrease from sale and purchase of subsidiaries and businesses – – (10 ) – (10 ) Capital contribution to unconsolidated subsidiaries – (63 ) – 63 – Return of capital from unconsolidated subsidiaries – 11 – (11 ) – Notes receivable from affiliates – – 201 (201 ) – Notes receivable from parent – 368 24 (392 ) – Notes receivable from subsidiaries (16 ) (10 ) – 26 – Cash provided by (used in) investing activities (2,489 ) (3,205 ) (12,551 ) 1,958 (16,287 ) Financing activities Increase (decrease) in repurchase agreements and securities sold but not yet purchased – – (29 ) – (29 ) Redemption of long-term debt (600 ) – (7 ) – (607 ) Issue of capital instruments, net 2,209 – – – 2,209 Redemption of capital instruments – – (899 ) – (899 ) Secured borrowings from securitization transactions – – 741 – 741 Changes in deposits from Bank clients, net – – 261 – 261 Shareholders’ dividends paid in cash (1,780 ) – – – (1,780 ) Dividends paid to parent – (1,175 ) (2,825 ) 4,000 – Contributions from (distributions to) non-controlling – – (6 ) – (6 ) Common shares issued, net 124 – 2,473 (2,473 ) 124 Capital contributions by parent – – 63 (63 ) – Return of capital to parent – – (11 ) 11 – Notes payable to affiliates – (201 ) – 201 – Notes payable to parent – – 26 (26 ) – Notes payable to subsidiaries (24 ) – (368 ) 392 – Cash provided by (used in) financing activities (71 ) (1,376 ) (581 ) 2,042 14 Cash and short-term securities Increase (decrease) during the year (138 ) 127 1,529 – 1,518 Effect of foreign exchange rate changes on cash and short-term securities (2 ) (276 ) (380 ) – (658 ) Balance, beginning of year 161 3,787 10,290 – 14,238 Balance, end of year 21 3,638 11,439 – 15,098 Cash and short-term securities Beginning of year Gross cash and short-term securities 161 4,317 10,673 – 15,151 Net payments in transit, included in other liabilities – (530 ) (383 ) – (913 ) Net cash and short-term securities, beginning of year 161 3,787 10,290 – 14,238 End of year Gross cash and short-term securities 21 4,133 11,811 – 15,965 Net payments in transit, included in other liabilities – (495 ) (372 ) – (867 ) Net cash and short-term securities, end of year $ 21 $ 3,638 $ 11,439 $ – $ 15,098 Supplemental disclosures on cash flow information: Interest received $ 273 $ 4,391 $ 6,504 $ (572 ) $ 10,596 Interest paid 392 96 1,202 (572 ) 1,118 Income taxes paid 99 1,084 177 – 1,360 Consolidated Statement of Cash Flows For the year ended December 31, 2016 MFC (Guarantor) JHUSA (Issuer) Other subsidiaries Consolidation adjustments Consolidated MFC Operating activities Net income (loss) $ 2,929 $ 572 $ 3,068 $ (3,436 ) $ 3,133 Adjustments: Equity in net income of unconsolidated subsidiaries (2,653 ) (211 ) (572 ) 3,436 – Increase (decrease) in insurance contract liabilities – 5,225 12,789 – 18,014 Increase (decrease) in investment contract liabilities – 58 (58 ) – – (Increase) decrease in reinsurance assets – (1,444 ) 602 – (842 ) Amortization of (premium) discount on invested assets – (5 ) 83 – 78 Other amortization 2 284 407 – 693 Net realized and unrealized (gains) losses and impairment on assets (9 ) (917 ) (1,878 ) – (2,804 ) Deferred income tax expense (recovery) 3 391 (629 ) – (235 ) Stock option expense – (1 ) 20 – 19 Cash provided by (used in) operating activities before undernoted items 272 3,952 13,832 – 18,056 Dividends from unconsolidated subsidiary 1,950 111 – (2,061 ) – Changes in policy related and operating receivables and payables 171 (1,291 ) 81 – (1,039 ) Cash provided by (used in) operating activities 2,393 2,772 13,913 (2,061 ) 17,017 Investing activities Purchases and mortgage advances (32 ) (34,656 ) (69,371 ) – (104,059 ) Disposals and repayments – 32,343 49,658 – 82,001 Changes in investment broker net receivables and payables – (35 ) (151 ) – (186 ) Investment in common shares of subsidiaries (5,706 ) – – 5,706 – Net cash decrease from sale and purchase of subsidiaries and businesses – – (495 ) – (495 ) Capital contribution to unconsolidated subsidiaries – (350 ) – 350 – Return of capital from unconsolidated subsidiaries – 1 – (1 ) – Notes receivable from affiliates – – 544 (544 ) – Notes receivable from parent – – 344 (344 ) – Notes receivable from subsidiaries (6 ) (40 ) – 46 – Cash provided by (used in) investing activities (5,744 ) (2,737 ) (19,471 ) 5,213 (22,739 ) Financing activities (Decrease) increase in repurchase agreements and securities sold but not yet purchased – – (23 ) – (23 ) Issue of long-term debt, net 3,899 – – – 3,899 Redemption of long-term debt – – (158 ) – (158 ) Issue of capital instruments, net 479 – – – 479 Redemption of capital instruments – – (949 ) – (949 ) Secured borrowings from securitization transactions – – 847 – 847 Changes in deposits from Bank clients, net – – (157 ) – (157 ) Shareholders’ dividends paid in cash (1,593 ) – – – (1,593 ) Contributions from (distributions to) non-controlling – – 10 – 10 Common shares issued, net 66 – 5,706 (5,706 ) 66 Preferred shares issued, net 884 – – – 884 Dividends paid to parent – – (2,061 ) 2,061 – Capital contributions by parent – – 350 (350 ) – Return of capital to parent – – (1 ) 1 – Notes payable to affiliates – (544 ) – 544 – Notes payable to parent – – 46 (46 ) – Notes payable to subsidiaries (344 ) – – 344 – Cash provided by (used in) financing activities 3,391 (544 ) 3,610 (3,152 ) 3,305 Cash and short-term securities Increase (decrease) during the year 40 (509 ) (1,948 ) – (2,417 ) Effect of foreign exchange rate changes on cash and short-term securities (1 ) (149 ) (197 ) – (347 ) Balance, beginning of year 122 4,445 12,435 – 17,002 Balance, end of year 161 3,787 10,290 – 14,238 Cash and short-term securities Beginning of year Gross cash and short-term securities 122 4,938 12,825 – 17,885 Net payments in transit, included in other liabilities – (493 ) (390 ) – (883 ) Net cash and short-term securities, beginning of year 122 4,445 12,435 – 17,002 End of year Gross cash and short-term securities 161 4,317 10,673 – 15,151 Net payments in transit, included in other liabilities – (530 ) (383 ) – (913 ) Net cash and short-term securities, end of year $ 161 $ 3,787 $ 10,290 $ – $ 14,238 Supplemental disclosures on cash flow information: Interest received $ – $ 4,523 $ 6,795 $ (768 ) $ 10,550 Interest paid 210 144 1,397 (768 ) 983 Income taxes paid 35 68 738 – 841 |
IFRS 7 Disclosures (Tables)
IFRS 7 Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Risk Management Strategies | The following table outlines our key market risks and identifies the risk management strategies which contribute to managing these risks. Risk Management Strategy Key Market Risk Publicly Interest Rate Alternative Long-Duration Foreign Product design and pricing X X X X Variable annuity guarantee dynamic hedging X X X Macro equity risk hedging X X Asset liability management X X X X Foreign exchange management X |
Summary of Variable Annuity and Segregated Fund Guarantees, Net of Reinsurance | The table below shows selected information regarding the Company’s variable annuity and segregated fund investment-related guarantees gross and net of reinsurance. Variable annuity and segregated fund guarantees, net of reinsurance As at December 31, 2017 2016 Guarantee Fund value Amount (4),(5) Guarantee Fund value Amount (4),(5) Guaranteed minimum income benefit (1) $ 5,201 $ 4,195 $ 1,074 $ 5,987 $ 4,432 $ 1,570 Guaranteed minimum withdrawal benefit 61,767 56,512 5,943 68,594 59,593 9,135 Guaranteed minimum accumulation benefit 18,162 18,705 11 19,482 19,989 27 Gross living benefits (2) 85,130 79,412 7,028 94,063 84,014 10,732 Gross death benefits (3) 10,743 16,973 1,001 12,200 16,614 1,350 Total gross of reinsurance 95,873 96,385 8,029 106,263 100,628 12,082 Living benefits reinsured 4,522 3,667 911 5,241 3,903 1,349 Death benefits reinsured 3,014 3,040 435 3,429 3,202 564 Total reinsured 7,536 6,707 1,346 8,670 7,105 1,913 Total, net of reinsurance $ 88,337 $ 89,678 $ 6,683 $ 97,593 $ 93,523 $ 10,169 (1) Contracts with guaranteed long-term care benefits are included in this category. (2) Where a policy includes both living and death benefits, the guarantee in excess of the living benefit is included in the death benefit category as outlined in footnote 3. (3) Death benefits include stand-alone guarantees and guarantees in excess of living benefit guarantees where both death and living benefits are provided on a policy. (4) Amount at risk (in-the-money amount) is the excess of guarantee values over fund values on all policies where the guarantee value exceeds the fund value. This amount is not currently payable. For guaranteed minimum death benefit, the amount at risk is defined as the current guaranteed minimum death benefit in excess of the current account balance. For guaranteed minimum income benefit, the amount at risk is defined as the excess of the current annuitization income base over the current account value. For all guarantees, the amount at risk is floored at zero at the single contract level. (5) The amount at risk net of reinsurance at December 31, 2017 was $6,683 million (2016 – $10,169 million) of which: US$3,982 million (2016 – US$6,008 million) was on our U.S. business, $1,342 million (2016 – $1,499 million) was on our Canadian business, US$95 million (2016 – US$206 million) was on our Japan business and US$181 million (2016 – US$244 million) was related to Asia (other than Japan) and our run-off reinsurance business. |
Summary of Investment Categories for Variable Contracts with Guarantees | Variable contracts with guarantees, including variable annuities and variable life, are invested, at the policyholder’s discretion subject to contract limitations, in various fund types within the segregated fund accounts and other investments. The account balances by investment category are set out below. As at December 31, ($ millions) Investment category 2017 2016 Equity funds $ 47,508 $ 41,805 Balanced funds 47,369 57,571 Bond funds 13,095 11,588 Money market funds 1,905 2,127 Other fixed interest rate investments 1,777 1,807 Total $ 111,654 $ 114,898 |
Schedule of Potential Immediate Impact on Net Income Attributed to Shareholders Arising from Changes to Public Equity Returns | Potential immediate impact on net income attributed to shareholders arising from changes to public equity returns (1),(2),(3),(4) As at December 31, 2017 ($ millions) -30% -20% -10% 10% 20% 30% Underlying sensitivity to net income attributed to shareholders (5) Variable annuity guarantees $ (3,940 ) $ (2,260 ) $ (960 ) $ 670 $ 1,110 $ 1,410 Asset based fees (510 ) (340 ) (170 ) 170 340 510 General fund equity investments (6) (930 ) (590 ) (270 ) 270 540 810 Total underlying sensitivity before hedging (5,380 ) (3,190 ) (1,400 ) 1,110 1,990 2,730 Impact of macro and dynamic hedge assets (7) 3,220 1,850 790 (640 ) (1,100 ) (1,410 ) Net potential impact on net income after impact of hedging $ (2,160 ) $ (1,340 ) $ (610 ) $ 470 $ 890 $ 1,320 As at December 31, 2016 ($ millions) -30% -20% -10% 10% 20% 30% Underlying sensitivity to net income attributed to shareholders (5) Variable annuity guarantees $ (4,830 ) $ (2,920 ) $ (1,290 ) $ 1,000 $ 1,690 $ 2,170 Asset based fees (410 ) (280 ) (140 ) 140 280 410 General fund equity investments (6) (910 ) (590 ) (270 ) 240 490 750 Total underlying sensitivity before hedging (6,150 ) (3,790 ) (1,700 ) 1,380 2,460 3,330 Impact of macro and dynamic hedge assets (7) 4,050 2,440 1,060 (910 ) (1,610 ) (2,160 ) Net potential impact on net income attributed to shareholders after impact of hedging $ (2,100 ) $ (1,350 ) $ (640 ) $ 470 $ 850 $ 1,170 (1) See “Caution Related to Sensitivities” above. (2) The sensitivities as at December 31, 2017 include the impact of lower U.S. corporate tax rates effective January 1, 2018. Due to the lower effective tax rate, the after-tax impact of changes to public equity returns increases. (3) The tables above show the potential impact on net income attributed to shareholders resulting from an immediate 10%, 20% and 30% change in market values of publicly traded equities followed by a return to the expected level of growth assumed in the valuation of policy liabilities. (4) Please refer to “Sensitivity of Earnings to Changes in Assumptions” for more information on the level of growth assumed and on the net income sensitivity to changes in these long-term assumptions. (5) Defined as earnings sensitivity to a change in public equity markets including settlements on reinsurance contracts, but before the offset of hedge assets or other risk mitigants. (6) This impact for general fund equities is calculated as at a point-in-time and does not include: (i) any potential impact on public equity weightings; (ii) any gains or losses on AFS public equities held in the Corporate and Other segment; or (iii) any gains or losses on public equity investments held in Manulife Bank. The participating policy funds are largely self-supporting and generate no material impact on net income attributed to shareholders as a result of changes in equity markets. (7) Includes the impact of rebalancing equity hedges in the macro and dynamic hedging program. The impact of dynamic hedge rebalancing represents the impact of rebalancing equity hedges for dynamically hedged variable annuity guarantee best estimate liabilities at 5% intervals, but does not include any impact in respect of other sources of hedge ineffectiveness (e.g. fund tracking, realized volatility and equity, interest rate correlations different from expected among other factors). |
Schedule of Potential Immediate Impact on MLI's MCCSR Ratio Arising from Public Equity Returns | Potential immediate impact on MLI’s MCCSR ratio arising from public equity returns different than the expected return for policy liability valuation (1),(2),(3),(4) Impact on MLI’s MCCSR ratio Percentage points -30% -20% -10% 10% 20% 30% December 31, 2017 (14 ) (8 ) (4 ) 3 11 14 December 31, 2016 (12 ) (8 ) (4 ) 3 14 18 (1) See “Caution Related to Sensitivities” above. In addition, estimates exclude changes to the net actuarial gains/losses with respect to the Company’s pension obligations as a result of changes in equity markets, as the impact on the quoted sensitivities is not considered to be material. (2) The sensitivities as at December 31, 2017 include the impact of lower U.S. corporate tax rates effective January 1, 2018. Due to the lower effective tax rate, the after-tax impact of changes to public equity returns increases. (3) The potential impact is shown assuming that the change in value of the hedge assets does not completely offset the change in the dynamically hedged variable annuity guarantee liabilities. The estimated amount that would not be completely offset relates to our practices of not hedging the provisions for adverse deviation and of rebalancing equity hedges for dynamically hedged variable annuity liabilities at 5% intervals. (4) OSFI rules for segregated fund guarantees reflect full capital impacts of shocks over 20 quarters within a prescribed range. As such, the deterioration in equity markets could lead to further increases in capital requirements after the initial shock. |
Summary of Potential impact on net income attributed to shareholders and MLI's MCCSR ratio of an immediate parallel change in interest rates relative to rates assumed in the valuation of policy liabilities | Potential impact on net income attributed to shareholders and MLI’s MCCSR ratio of an immediate parallel change in interest rates relative to rates assumed in the valuation of policy liabilities (1),(2),(3),(4),(5) 2017 2016 As at December 31, -50bp +50bp -50bp +50bp Net income attributed to shareholders ($ millions) Excluding change in market value of AFS fixed income assets held in the surplus segment $ (200 ) $ 100 $ – $ – From fair value changes in AFS fixed income assets held in surplus, if realized 1,100 (1,000) 1,000 (900) MLI’s MCCSR ratio (Percentage points) Before impact of change in market value of AFS fixed income assets held in the surplus segment (6) (7 ) 5 (6 ) 5 From fair value changes in AFS fixed income assets held in surplus, if realized 4 (5 ) 1 (4) (1) See “Caution Related to Sensitivities” above. In addition, estimates exclude changes to the net actuarial gains/losses with respect to the Company’s pension obligations as a result of changes in interest rates, as the impact on the quoted sensitivities is not considered to be material. (2) The sensitivities as at December 31, 2017 include the impact of lower U.S. corporate tax rates effective January 1, 2018 and the decision to change the portfolio asset mix supporting our legacy businesses over the next 12-18 months. (3) Includes guaranteed insurance and annuity products, including variable annuity contracts as well as adjustable benefit products where benefits are generally adjusted as interest rates and investment returns change, a portion of which have minimum credited rate guarantees. For adjustable benefit products subject to minimum rate guarantees, the sensitivities are based on the assumption that credited rates will be floored at the minimum. (4) The amount of gain or loss that can be realized on AFS fixed income assets held in the surplus segment will depend on the aggregate amount of unrealized gain or loss. (5) Sensitivities are based on projected asset and liability cash flows and the impact of realizing fair value changes in AFS fixed income is based on the holdings at the end of the period. (6) The impact on MLI’s MCCSR ratio includes both the impact of lower earnings on available capital as well as the increase in required capital that results from a decline in interest rates. |
Schedule of Currency Changes Relative to Key Operating Currencies Potential mpact on Core Earnings | Potential impact on core earnings (1),(2),(3) 2017 2016 As at December 31, ($ millions) +10% -10% +10% -10% 10% change in the Canadian dollar relative to the U.S. dollar and the Hong Kong dollar $ (280) $ 280 $ (230 ) $ 230 10% change in the Canadian dollar relative to the Japanese yen (60) 60 (50 ) 50 (1) This item is a non-GAAP measure. See “Performance and Non-GAAP Measures” below. (2) See “Caution Related to Sensitivities” above. (3) The sensitivities as at December 31, 2017 include the impact of lower U.S. corporate tax rates effective January 1, 2018. |
Schedule of Maturity of Financial Liabilities | The following table outlines the maturity of the Company’s significant financial liabilities. Maturity of financial liabilities (1) As at December 31, 2017 ($ millions) Less than 1 to 3 years 3 to 5 years Over Total Long-term debt $ 401 $ 626 $ – $ 3,758 $ 4,785 Capital instruments – – – 8,387 8,387 Derivatives 224 149 168 7,281 7,822 Deposits from Bank clients (2) 15,322 1,373 1,436 – 18,131 Lease obligations 126 172 89 451 838 (1) The amounts shown above are net of the related unamortized deferred issue costs. (2) Carrying value and fair value of deposits from Bank clients as at December 31, 2017 was $18,131 million and $18,149 million, respectively (2016 – $17,919 million and $17,978 million, respectively). Fair value is determined by discounting contractual cash flows, using market interest rates currently offered for deposits with similar terms and conditions. All deposits from Bank clients were categorized in Level 2 of the fair value hierarchy (2016 – Level 2). |
Alternative Long-Duration Asset Performance Risk [Member] | |
Summary of Potential Impact on Net Income Attributed to Shareholders Arising from Changes to Spreads | Potential impact on net income attributed to shareholders arising from changes in ALDA returns (1),(2),(3),(4),(5),(6),(7) As at December 31, ($ millions) 2017 2016 -10% 10% -10% 10% Real estate, agriculture and timber assets $ (1,300 ) $ 1,300 $ (1,300 ) $ 1,200 Private equities and other ALDA (1,500 ) 1,400 (1,200 ) 1,200 Alternative long-duration assets $ (2,800 ) $ 2,700 $ (2,500 ) $ 2,400 (1) See “Caution Related to Sensitivities” above. (2) The sensitivities as at December 31, 2017 include the impact of lower U.S. corporate tax rates effective January 1, 2018. (3) This impact is calculated as at a point-in-time impact and does not include: (i) any potential impact on ALDA weightings or (ii) any gains or losses on ALDA held in the Corporate and Other segment. (4) The participating policy funds are largely self-supporting and generate no material impact on net income attributed to shareholders as a result of changes in ALDA returns. For some classes of ALDA, where there is not an appropriate long-term benchmark available, the return assumptions used in valuation are not permitted by the Standards of Practice and CIA guidance to result in a lower reserve than an assumption based on a historical return benchmark for public equities in the same jurisdiction. (5) Net income impact does not consider any impact of the market correction on assumed future return assumptions. (6) Please refer to “Sensitivity of Earnings to Changes in Assumptions” below, for more information on the level of growth assumed and on the net income sensitivity to changes in these long-term assumptions. (7) The sensitivities as at December 31, 2017 do not include the impact of the decision to change the portfolio asset mix supporting our North American legacy business as no changes to the portfolio had been made as of that date. The reduction in the allocation to ALDA in the portfolio asset mix will be reflected in the sensitivity as it occurs over the next 12-18 months. |
Corporate and swap spreads [Member] | |
Summary of Potential Impact on Net Income Attributed to Shareholders Arising from Changes to Spreads | The following tables show the potential impact on net income attributed to shareholders resulting from a change in corporate spreads and swap spreads over government bond rates for all maturities across all markets with a floor of zero on the total interest rate, relative to the spreads assumed in the valuation of policy liabilities. Potential impact on net income attributed to shareholders arising from changes to corporate spreads and swap spreads (1),(2),(3),(4) As at December 31, 2017 2016 Corporate spreads (5),(6) Increase 50 basis points $ 1,000 $ 700 Decrease 50 basis points (1,000 ) (800 ) Swap spreads Increase 20 basis points $ (400 ) $ (500 ) Decrease 20 basis points 400 500 (1) See “Caution Related to Sensitivities” above. (2) The sensitivities as at December 31, 2017 include the impact of lower U.S. corporate tax rates effective January 1, 2018 and the decision to change the portfolio asset mix of our North American legacy businesses over the next 12-18 months. (3) The impact on net income attributed to shareholders assumes no gains or losses are realized on our AFS fixed income assets held in the surplus segment and excludes the impact of changes in segregated fund bond values due to changes in credit spreads. The participating policy funds are largely self-supporting and generate no material impact on net income attributed to shareholders as a result of changes in corporate and swap spreads. (4) Sensitivities are based on projected asset and liability cash flows. (5) Corporate spreads are assumed to grade to the long-term average over five years. (6) As the sensitivity to a 50 basis point decline in corporate spreads includes the impact of a change in deterministic reinvestment scenarios where applicable, the impact of changes to corporate spreads for less than, or more than, the amounts indicated are unlikely to be linear. |
Nature of Operations and Sign54
Nature of Operations and Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Bottom of range [Member] | |
Disclosure of changes in accounting estimates [Line Items] | |
Estimated useful life of property | 30 years |
Finite -Lived intangible assets, useful life | 6 years |
Capital asset, useful life | 2 years |
Bottom of range [Member] | Software [Member] | |
Disclosure of changes in accounting estimates [Line Items] | |
Finite -Lived intangible assets, useful life | 3 years |
Top of range [Member] | |
Disclosure of changes in accounting estimates [Line Items] | |
Estimated useful life of property | 60 years |
Finite -Lived intangible assets, useful life | 68 years |
Capital asset, useful life | 10 years |
Top of range [Member] | Software [Member] | |
Disclosure of changes in accounting estimates [Line Items] | |
Finite -Lived intangible assets, useful life | 5 years |
Acquisition and Distribution 55
Acquisition and Distribution Agreements - Additional Information (Detail) - CAD CAD in Millions | Nov. 01, 2016 | Jan. 01, 2016 |
Standard Chartered's Mandatory Provident Fund and Occupational Retirement Schemes Ordinance [Member] | ||
Disclosure of detailed information about business combination [Line Items] | ||
Consideration paid in cash | CAD 392 | |
Distribution partnership agreement term | 15 years | |
DBS Bank Ltd [Member] | Distribution networks [Member] | ||
Disclosure of detailed information about business combination [Line Items] | ||
Intangible assets recognized | CAD 536 | |
Regional distribution agreement term | 15 years |
Invested Assets and Investmen56
Invested Assets and Investment Income - Schedule of Carrying Values and Fair Values of Invested Assets (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of fair value measurement of assets [Line Items] | |||
Cash and short-term securities | CAD 15,965 | CAD 15,151 | CAD 17,885 |
Debt securities | 174,000 | 168,622 | |
Public equities | 21,545 | 19,496 | |
Mortgages | 44,742 | 44,193 | |
Private placements | 32,132 | 29,729 | |
Policy loans | 5,808 | 6,041 | |
Loans to bank clients | 1,737 | 1,745 | |
Real estate | 13,810 | 14,132 | |
Other invested assets | 24,483 | 22,760 | |
Total invested assets | 334,222 | 321,869 | |
FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Cash and short-term securities | 439 | 269 | |
Public equities | 18,473 | 16,531 | |
Total invested assets | 178,096 | 168,561 | |
AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Cash and short-term securities | 11,429 | 11,705 | |
Public equities | 3,072 | 2,965 | |
Total invested assets | 41,565 | 42,498 | |
Other invested assets [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Cash and short-term securities | 4,097 | 3,177 | |
Mortgages | 44,742 | 44,193 | |
Private placements | 32,132 | 29,729 | |
Policy loans | 5,808 | 6,041 | |
Loans to bank clients | 1,737 | 1,745 | |
Total invested assets | 114,561 | 110,810 | |
Fair value [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Cash and short-term securities | 15,965 | 15,151 | |
Public equities | 21,545 | 19,496 | |
Mortgages | 46,065 | 45,665 | |
Private placements | 34,581 | 31,459 | |
Policy loans | 5,808 | 6,041 | |
Loans to bank clients | 1,742 | 1,746 | |
Total invested assets | 339,488 | 326,563 | |
Canadian government and agency [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 22,778 | 24,745 | |
Canadian government and agency [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 17,886 | 18,030 | |
Canadian government and agency [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 4,892 | 6,715 | |
Canadian government and agency [Member] | Fair value [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 22,778 | 24,745 | |
U.S. government and agency [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 25,969 | 27,304 | |
U.S. government and agency [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 12,497 | 13,971 | |
U.S. government and agency [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 13,472 | 13,333 | |
U.S. government and agency [Member] | Fair value [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 25,969 | 27,304 | |
Other government and agency [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 19,826 | 20,941 | |
Other government and agency [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 16,838 | 18,629 | |
Other government and agency [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 2,988 | 2,312 | |
Other government and agency [Member] | Fair value [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 19,826 | 20,941 | |
Corporate [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 102,151 | 92,415 | |
Corporate [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 96,785 | 87,374 | |
Corporate [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 5,366 | 5,041 | |
Corporate [Member] | Fair value [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 102,151 | 92,415 | |
Mortgage/asset-backed securities [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 3,276 | 3,217 | |
Mortgage/asset-backed securities [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 3,018 | 2,886 | |
Mortgage/asset-backed securities [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 258 | 331 | |
Mortgage/asset-backed securities [Member] | Fair value [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 3,276 | 3,217 | |
Real estate own use property [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Real estate | 1,281 | 1,376 | |
Real estate own use property [Member] | Other invested assets [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Real estate | 1,281 | 1,376 | |
Real estate own use property [Member] | Fair value [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Real estate | 2,448 | 2,524 | |
Investment property [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Real estate | 12,529 | 12,756 | |
Investment property [Member] | Other invested assets [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Real estate | 12,529 | 12,756 | |
Investment property [Member] | Fair value [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Real estate | 12,529 | 12,756 | |
Alternative long-duration assets [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Other invested assets | 20,730 | 18,851 | |
Alternative long-duration assets [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Other invested assets | 12,018 | 10,707 | |
Alternative long-duration assets [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Other invested assets | 88 | 96 | |
Alternative long-duration assets [Member] | Other invested assets [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Other invested assets | 8,624 | 8,048 | |
Alternative long-duration assets [Member] | Fair value [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Other invested assets | 21,053 | 19,193 | |
Various other [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Other invested assets | 3,753 | 3,909 | |
Various other [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Other invested assets | 142 | 164 | |
Various other [Member] | Other invested assets [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Other invested assets | 3,611 | 3,745 | |
Various other [Member] | Fair value [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Other invested assets | CAD 3,752 | CAD 3,910 |
Invested Assets and Investmen57
Invested Assets and Investment Income - Schedule of Carrying Values and Fair Values of Invested Assets (Parenthetical) (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of fair value measurement of assets [Line Items] | ||
Debt securities | CAD 174,000 | CAD 168,622 |
Less than 1 year [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Debt securities | 1,768 | 893 |
Less than 90 days [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Debt securities | 161 | 192 |
Cash and short-term securities [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Short-term securities with maturities of less than one year | 2,737 | 3,111 |
Cash equivalents | 9,131 | 8,863 |
Cash | 4,097 | 3,177 |
Other [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Other invested assets leveraged leases | 3,273 | 3,369 |
Accumulated depreciation and amortisation [Member] | Real estate own use property [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Accumulated depreciation of own use property | 389 | 404 |
Private equity [Member] | Alternative long-duration assets [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Total carrying value | 4,959 | 4,619 |
Power and infrastructure [Member] | Alternative long-duration assets [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Total carrying value | 7,355 | 6,679 |
Oil and gas [Member] | Alternative long-duration assets [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Total carrying value | 2,813 | 2,093 |
Timber and agriculture [Member] | Alternative long-duration assets [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Total carrying value | 5,033 | 4,972 |
Other invested assets [Member] | Alternative long-duration assets [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Total carrying value | CAD 570 | CAD 488 |
Invested Assets and Investmen58
Invested Assets and Investment Income - Schedule of Other Invested Assets Include Investments in Associates and Joint Ventures Accounted Using Equity Method (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Investments in associates carrying value | CAD 5,757 | CAD 5,780 |
Percentage of investments in associates carrying value | 100.00% | 100.00% |
Leveraged leases [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Investments in associates carrying value | CAD 3,273 | CAD 3,369 |
Percentage of investments in associates carrying value | 56.00% | 58.00% |
Timber and agriculture [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Investments in associates carrying value | CAD 451 | CAD 430 |
Percentage of investments in associates carrying value | 8.00% | 8.00% |
Real estate [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Investments in associates carrying value | CAD 498 | CAD 419 |
Percentage of investments in associates carrying value | 9.00% | 7.00% |
Other [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Investments in associates carrying value | CAD 1,535 | CAD 1,562 |
Percentage of investments in associates carrying value | 27.00% | 27.00% |
Invested Assets and Investmen59
Invested Assets and Investment Income - Additional Information (Detail) - CAD | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of fair value measurement of assets [Line Items] | ||
Fair value of securitized assets | CAD 729,533,000,000 | CAD 720,681,000,000 |
Fair value of securitized liabilities | 687,370,000,000 | 677,858,000,000 |
Transfers out of Level 1 into Level 2 of fair value hierarchy, assets held at end of reporting period | 0 | 0 |
Transfers out of Level 2 into Level 1 of fair value hierarchy, assets held at end of reporting period | 0 | 0 |
Segregated funds [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Transfers out of Level 1 into Level 2 of fair value hierarchy, assets held at end of reporting period | 0 | 8,000,000 |
Transfers out of Level 2 into Level 1 of fair value hierarchy, assets held at end of reporting period | 5,000,000 | 0 |
Other invested assets [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Profit (loss) from associates and joint ventures | 291,000,000 | 252,000,000 |
Dividends received from associates and joint ventures | 14,000,000 | 17,000,000 |
Securitized assets [Member] | Fair value [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Fair value of securitized assets | 3,533,000,000 | 2,821,000,000 |
Fair value of securitized liabilities | CAD 3,503,000,000 | CAD 2,776,000,000 |
Invested Assets and Investmen60
Invested Assets and Investment Income - Schedule of Investment Income (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Investment Income [line items] | ||
Rental income, net of depreciation | CAD 1,120 | CAD 1,204 |
Yields | 6.00% | 4.70% |
Net investment income | CAD 19,367 | CAD 14,524 |
Investment income | CAD 13,649 | CAD 13,390 |
Debt securities [Member] | ||
Disclosure of Investment Income [line items] | ||
Yields | 5.40% | 4.70% |
Interest income | CAD 5,679 | CAD 5,639 |
Gains (losses) | 3,485 | 2,206 |
Impairment loss | CAD 15 | CAD (18) |
Cash and short-term securities [Member] | ||
Disclosure of Investment Income [line items] | ||
Yields | 0.90% | 0.70% |
Interest income | CAD 160 | CAD 124 |
Gains (losses) | (25) | |
Public equities [Member] | ||
Disclosure of Investment Income [line items] | ||
Dividend income | CAD 603 | CAD 592 |
Yields | 16.60% | 10.60% |
Gains (losses) | CAD 2,598 | CAD 1,209 |
Impairment loss | CAD (14) | CAD (48) |
Mortgages [Member] | ||
Disclosure of Investment Income [line items] | ||
Yields | 3.90% | 4.10% |
Interest income | CAD 1,685 | CAD 1,667 |
Gains (losses) | 69 | 81 |
Provision, net | CAD (32) | CAD (7) |
Private placements [Member] | ||
Disclosure of Investment Income [line items] | ||
Yields | 5.30% | 5.40% |
Interest income | CAD 1,553 | CAD 1,494 |
Gains (losses) | 43 | 17 |
Impairment loss | CAD 10 | CAD (50) |
Policy loans [Member] | ||
Disclosure of Investment Income [line items] | ||
Yields | 6.10% | 6.10% |
Net investment income | CAD 365 | CAD 358 |
Loans to Bank clients [Member] | ||
Disclosure of Investment Income [line items] | ||
Yields | 4.00% | 3.90% |
Interest income | CAD 68 | CAD 68 |
Real estate [Member] | ||
Disclosure of Investment Income [line items] | ||
Rental income, net of depreciation | CAD 517 | CAD 523 |
Yields | 6.20% | 4.90% |
Gains (losses) | CAD 341 | CAD 160 |
Impairment loss | (4) | |
Derivatives [Member] | ||
Disclosure of Investment Income [line items] | ||
Interest income | 893 | 1,082 |
Gains (losses) | CAD (945) | CAD (2,597) |
Other invested assets [Member] | ||
Disclosure of Investment Income [line items] | ||
Yields | 10.30% | 10.30% |
Interest income | CAD 174 | CAD 103 |
Oil and gas, timber, agriculture and other income | 1,690 | 1,162 |
Gains (losses) | 484 | 842 |
Impairment loss | CAD (45) | CAD (83) |
Interest income [Member] | ||
Disclosure of Investment Income [line items] | ||
Yields | 3.30% | 3.40% |
Investment income | CAD 10,577 | CAD 10,533 |
Dividend, rental and other income [Member] | ||
Disclosure of Investment Income [line items] | ||
Yields | 0.90% | 0.70% |
Investment income | CAD 2,810 | CAD 2,277 |
Impairments, provisions and recoveries, net [Member] | ||
Disclosure of Investment Income [line items] | ||
Yields | 0.00% | (0.10%) |
Investment income | CAD (70) | CAD (206) |
Other [Member] | ||
Disclosure of Investment Income [line items] | ||
Yields | 0.10% | 0.20% |
Investment income | CAD 332 | CAD 786 |
Insurance and investment contract liabilities and macro equity hedges [Member] | ||
Disclosure of Investment Income [line items] | ||
Realized and unrealized gains (losses) on assets | CAD 5,718 | CAD 1,134 |
Insurance and investment contract liabilities and macro equity hedges [Member] | Debt securities [Member] | ||
Disclosure of Investment Income [line items] | ||
Yields | 1.10% | 0.50% |
Realized and unrealized gains (losses) on assets | CAD 3,686 | CAD 1,662 |
Insurance and investment contract liabilities and macro equity hedges [Member] | Public equities [Member] | ||
Disclosure of Investment Income [line items] | ||
Yields | 0.70% | 0.30% |
Realized and unrealized gains (losses) on assets | CAD 2,235 | CAD 985 |
Insurance and investment contract liabilities and macro equity hedges [Member] | Mortgages [Member] | ||
Disclosure of Investment Income [line items] | ||
Yields | 0.00% | 0.00% |
Realized and unrealized gains (losses) on assets | CAD 69 | CAD 80 |
Insurance and investment contract liabilities and macro equity hedges [Member] | Private placements [Member] | ||
Disclosure of Investment Income [line items] | ||
Yields | 0.00% | 0.00% |
Realized and unrealized gains (losses) on assets | CAD 40 | CAD 12 |
Insurance and investment contract liabilities and macro equity hedges [Member] | Real estate [Member] | ||
Disclosure of Investment Income [line items] | ||
Yields | 0.10% | 0.00% |
Realized and unrealized gains (losses) on assets | CAD 350 | CAD 128 |
Insurance and investment contract liabilities and macro equity hedges [Member] | Other invested assets [Member] | ||
Disclosure of Investment Income [line items] | ||
Yields | 0.10% | 0.30% |
Realized and unrealized gains (losses) on assets | CAD 441 | CAD 848 |
Insurance and investment contract liabilities and macro equity hedges [Member] | Derivatives, including macro equity hedging program [Member] | ||
Disclosure of Investment Income [line items] | ||
Yields | (0.30%) | (0.80%) |
Realized and unrealized gains (losses) on assets | CAD (1,103) | CAD (2,581) |
FVTPL [Member] | ||
Disclosure of Investment Income [line items] | ||
Net investment income | 11,954 | 7,410 |
Investment income | 6,918 | 6,683 |
FVTPL [Member] | Debt securities [Member] | ||
Disclosure of Investment Income [line items] | ||
Interest income | 5,102 | 5,051 |
Gains (losses) | 3,690 | 1,658 |
Impairment loss | 16 | (18) |
FVTPL [Member] | Cash and short-term securities [Member] | ||
Disclosure of Investment Income [line items] | ||
Interest income | 7 | 7 |
Gains (losses) | 22 | 18 |
FVTPL [Member] | Public equities [Member] | ||
Disclosure of Investment Income [line items] | ||
Dividend income | 524 | 534 |
Gains (losses) | 2,372 | 1,008 |
FVTPL [Member] | Derivatives [Member] | ||
Disclosure of Investment Income [line items] | ||
Interest income | 809 | 1,115 |
Gains (losses) | (1,029) | (2,597) |
FVTPL [Member] | Other invested assets [Member] | ||
Disclosure of Investment Income [line items] | ||
Gains (losses) | 441 | 634 |
FVTPL [Member] | Interest income [Member] | ||
Disclosure of Investment Income [line items] | ||
Investment income | 5,918 | 6,173 |
FVTPL [Member] | Dividend, rental and other income [Member] | ||
Disclosure of Investment Income [line items] | ||
Investment income | 524 | 534 |
FVTPL [Member] | Impairments, provisions and recoveries, net [Member] | ||
Disclosure of Investment Income [line items] | ||
Investment income | 16 | (18) |
FVTPL [Member] | Other [Member] | ||
Disclosure of Investment Income [line items] | ||
Investment income | 460 | (6) |
FVTPL [Member] | Insurance and investment contract liabilities and macro equity hedges [Member] | ||
Disclosure of Investment Income [line items] | ||
Realized and unrealized gains (losses) on assets | 5,036 | 727 |
FVTPL [Member] | Insurance and investment contract liabilities and macro equity hedges [Member] | Debt securities [Member] | ||
Disclosure of Investment Income [line items] | ||
Realized and unrealized gains (losses) on assets | 3,694 | 1,657 |
FVTPL [Member] | Insurance and investment contract liabilities and macro equity hedges [Member] | Public equities [Member] | ||
Disclosure of Investment Income [line items] | ||
Realized and unrealized gains (losses) on assets | 2,200 | 963 |
FVTPL [Member] | Insurance and investment contract liabilities and macro equity hedges [Member] | Other invested assets [Member] | ||
Disclosure of Investment Income [line items] | ||
Realized and unrealized gains (losses) on assets | 329 | 688 |
FVTPL [Member] | Insurance and investment contract liabilities and macro equity hedges [Member] | Derivatives, including macro equity hedging program [Member] | ||
Disclosure of Investment Income [line items] | ||
Realized and unrealized gains (losses) on assets | (1,187) | (2,581) |
AFS [Member] | ||
Disclosure of Investment Income [line items] | ||
Net investment income | 761 | 1,447 |
Investment income | 743 | 1,420 |
AFS [Member] | Debt securities [Member] | ||
Disclosure of Investment Income [line items] | ||
Interest income | 577 | 588 |
Gains (losses) | (205) | 548 |
Impairment loss | (1) | |
AFS [Member] | Cash and short-term securities [Member] | ||
Disclosure of Investment Income [line items] | ||
Interest income | 153 | 117 |
Gains (losses) | (47) | (18) |
AFS [Member] | Public equities [Member] | ||
Disclosure of Investment Income [line items] | ||
Dividend income | 79 | 58 |
Gains (losses) | 226 | 201 |
Impairment loss | (14) | (48) |
AFS [Member] | Other invested assets [Member] | ||
Disclosure of Investment Income [line items] | ||
Gains (losses) | (7) | 1 |
AFS [Member] | Interest income [Member] | ||
Disclosure of Investment Income [line items] | ||
Investment income | 730 | 703 |
AFS [Member] | Dividend, rental and other income [Member] | ||
Disclosure of Investment Income [line items] | ||
Investment income | 79 | 58 |
AFS [Member] | Impairments, provisions and recoveries, net [Member] | ||
Disclosure of Investment Income [line items] | ||
Investment income | (15) | (48) |
AFS [Member] | Other [Member] | ||
Disclosure of Investment Income [line items] | ||
Investment income | (51) | 707 |
AFS [Member] | Insurance and investment contract liabilities and macro equity hedges [Member] | ||
Disclosure of Investment Income [line items] | ||
Realized and unrealized gains (losses) on assets | 18 | 27 |
AFS [Member] | Insurance and investment contract liabilities and macro equity hedges [Member] | Debt securities [Member] | ||
Disclosure of Investment Income [line items] | ||
Realized and unrealized gains (losses) on assets | (8) | 5 |
AFS [Member] | Insurance and investment contract liabilities and macro equity hedges [Member] | Public equities [Member] | ||
Disclosure of Investment Income [line items] | ||
Realized and unrealized gains (losses) on assets | 35 | 22 |
AFS [Member] | Insurance and investment contract liabilities and macro equity hedges [Member] | Other invested assets [Member] | ||
Disclosure of Investment Income [line items] | ||
Realized and unrealized gains (losses) on assets | (9) | |
Other [Member] | ||
Disclosure of Investment Income [line items] | ||
Net investment income | 6,652 | 5,667 |
Investment income | 5,988 | 5,287 |
Other [Member] | Mortgages [Member] | ||
Disclosure of Investment Income [line items] | ||
Interest income | 1,685 | 1,667 |
Gains (losses) | 69 | 81 |
Provision, net | (32) | (7) |
Other [Member] | Private placements [Member] | ||
Disclosure of Investment Income [line items] | ||
Interest income | 1,553 | 1,494 |
Gains (losses) | 43 | 17 |
Impairment loss | 10 | (50) |
Other [Member] | Policy loans [Member] | ||
Disclosure of Investment Income [line items] | ||
Net investment income | 365 | 358 |
Other [Member] | Loans to Bank clients [Member] | ||
Disclosure of Investment Income [line items] | ||
Interest income | 68 | 68 |
Other [Member] | Real estate [Member] | ||
Disclosure of Investment Income [line items] | ||
Rental income, net of depreciation | 517 | 523 |
Gains (losses) | 341 | 160 |
Impairment loss | (4) | |
Other [Member] | Derivatives [Member] | ||
Disclosure of Investment Income [line items] | ||
Interest income | 84 | (33) |
Gains (losses) | 84 | |
Other [Member] | Other invested assets [Member] | ||
Disclosure of Investment Income [line items] | ||
Interest income | 174 | 103 |
Oil and gas, timber, agriculture and other income | 1,690 | 1,162 |
Gains (losses) | 50 | 207 |
Impairment loss | (45) | (83) |
Other [Member] | Interest income [Member] | ||
Disclosure of Investment Income [line items] | ||
Investment income | 3,929 | 3,657 |
Other [Member] | Dividend, rental and other income [Member] | ||
Disclosure of Investment Income [line items] | ||
Investment income | 2,207 | 1,685 |
Other [Member] | Impairments, provisions and recoveries, net [Member] | ||
Disclosure of Investment Income [line items] | ||
Investment income | (71) | (140) |
Other [Member] | Other [Member] | ||
Disclosure of Investment Income [line items] | ||
Investment income | (77) | 85 |
Other [Member] | Insurance and investment contract liabilities and macro equity hedges [Member] | ||
Disclosure of Investment Income [line items] | ||
Realized and unrealized gains (losses) on assets | 664 | 380 |
Other [Member] | Insurance and investment contract liabilities and macro equity hedges [Member] | Mortgages [Member] | ||
Disclosure of Investment Income [line items] | ||
Realized and unrealized gains (losses) on assets | 69 | 80 |
Other [Member] | Insurance and investment contract liabilities and macro equity hedges [Member] | Private placements [Member] | ||
Disclosure of Investment Income [line items] | ||
Realized and unrealized gains (losses) on assets | 40 | 12 |
Other [Member] | Insurance and investment contract liabilities and macro equity hedges [Member] | Real estate [Member] | ||
Disclosure of Investment Income [line items] | ||
Realized and unrealized gains (losses) on assets | 350 | 128 |
Other [Member] | Insurance and investment contract liabilities and macro equity hedges [Member] | Other invested assets [Member] | ||
Disclosure of Investment Income [line items] | ||
Realized and unrealized gains (losses) on assets | 121 | CAD 160 |
Other [Member] | Insurance and investment contract liabilities and macro equity hedges [Member] | Derivatives, including macro equity hedging program [Member] | ||
Disclosure of Investment Income [line items] | ||
Realized and unrealized gains (losses) on assets | CAD 84 |
Invested Assets and Investmen61
Invested Assets and Investment Income - Summary of Total Investment Expenses (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Investment Expenses [Line Items] | ||
Total investment expenses | CAD 1,673 | CAD 1,646 |
Related to invested assets [Member] | ||
Investment Expenses [Line Items] | ||
Total investment expenses | 625 | 581 |
Related to segregated, mutual and other funds [Member] | ||
Investment Expenses [Line Items] | ||
Total investment expenses | CAD 1,048 | CAD 1,065 |
Invested Assets and Investmen62
Invested Assets and Investment Income - Summary of Rental Income of Investment Properties (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about investment property [abstract] | ||
Rental income from investment properties | CAD 1,120 | CAD 1,204 |
Direct operating expenses of investment properties that generated rental income | (694) | (764) |
Total | CAD 426 | CAD 440 |
Invested Assets and Investmen63
Invested Assets and Investment Income - Summary of Carrying Amount of Securitized Assets and Secured Borrowing Liabilities (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of securitized assets, mortgages and associated liabilities [Line Items] | ||
Securitised Assets | CAD 3,512 | CAD 2,788 |
Secured borrowing liabilities | 3,523 | 2,782 |
HELOC securitization [Member] | ||
Disclosure of securitized assets, mortgages and associated liabilities [Line Items] | ||
Securitised Assets | 2,032 | 1,770 |
CMB securitization [Member] | ||
Disclosure of securitized assets, mortgages and associated liabilities [Line Items] | ||
Securitised Assets | 1,480 | 1,018 |
Securitized mortgages [Member] | ||
Disclosure of securitized assets, mortgages and associated liabilities [Line Items] | ||
Securitised Assets | 3,504 | 2,780 |
Securitized mortgages [Member] | HELOC securitization [Member] | ||
Disclosure of securitized assets, mortgages and associated liabilities [Line Items] | ||
Securitised Assets | 2,024 | 1,762 |
Securitized mortgages [Member] | CMB securitization [Member] | ||
Disclosure of securitized assets, mortgages and associated liabilities [Line Items] | ||
Securitised Assets | 1,480 | 1,018 |
Restricted cash and short-term securities [Member] | ||
Disclosure of securitized assets, mortgages and associated liabilities [Line Items] | ||
Securitised Assets | 8 | 8 |
Restricted cash and short-term securities [Member] | HELOC securitization [Member] | ||
Disclosure of securitized assets, mortgages and associated liabilities [Line Items] | ||
Securitised Assets | 8 | 8 |
HELOC securitization [Member] | ||
Disclosure of securitized assets, mortgages and associated liabilities [Line Items] | ||
Secured borrowing liabilities | 2,000 | 1,750 |
CMB securitization [Member] | ||
Disclosure of securitized assets, mortgages and associated liabilities [Line Items] | ||
Secured borrowing liabilities | CAD 1,523 | CAD 1,032 |
Invested Assets and Investmen64
Invested Assets and Investment Income - Summary of Invested Assets and Segregated Funds Net Assets, Measured at Fair Value (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of fair value measurement of assets [Line Items] | |||
Public equities | CAD 21,545 | CAD 19,496 | |
Debt securities | 174,000 | 168,622 | |
Real estate | 13,810 | 14,132 | |
Other invested assets | 24,483 | 22,760 | |
Segregated funds net assets | 324,307 | 315,177 | |
Total assets | 729,533 | 720,681 | |
FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Cash and short-term securities | 439 | 269 | |
Public equities | 18,473 | 16,531 | |
AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Cash and short-term securities | 11,429 | 11,705 | |
Public equities | 3,072 | 2,965 | |
Other cash and short-term securities [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Cash and short-term securities | 4,097 | 3,177 | |
Real estate [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Real estate | 12,529 | 12,756 | |
Other invested assets [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Other invested assets | 16,203 | 14,849 | |
Canadian government and agency [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 22,778 | 24,745 | |
Canadian government and agency [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 17,886 | 18,030 | |
Canadian government and agency [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 4,892 | 6,715 | |
U.S. government and agency [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 12,497 | 13,971 | |
U.S. government and agency [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 13,472 | 13,333 | |
Other government and agency [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 19,826 | 20,941 | |
Other government and agency [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 16,838 | 18,629 | |
Other government and agency [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 2,988 | 2,312 | |
Corporate [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 96,785 | 87,374 | |
Corporate [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 5,366 | 5,041 | |
Residential mortgage asset-backed securities [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 8 | 10 | |
Residential mortgage asset-backed securities [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 37 | 65 | |
Commercial mortgage asset-backed securities [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 1,099 | 680 | |
Commercial mortgage asset-backed securities [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 138 | 123 | |
Other securitized assets [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 1,911 | 2,196 | |
Other securitized assets [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 83 | 143 | |
Financial assets at fair value, class [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Total assets | 564,549 | 546,051 | |
Level 1 [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Segregated funds net assets | 286,490 | 278,066 | |
Level 1 [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Public equities | 18,470 | 16,524 | |
Level 1 [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Public equities | 3,069 | 2,963 | |
Level 1 [Member] | Other cash and short-term securities [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Cash and short-term securities | 4,097 | 3,177 | |
Level 1 [Member] | Corporate [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 2 | 2 | |
Level 1 [Member] | Financial assets at fair value, class [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Total assets | 312,128 | 300,732 | |
Level 2 [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Segregated funds net assets | 33,562 | 32,537 | |
Level 2 [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Cash and short-term securities | 439 | 269 | |
Level 2 [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Cash and short-term securities | 11,429 | 11,705 | |
Public equities | 3 | 2 | |
Level 2 [Member] | Canadian government and agency [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 17,886 | 18,030 | |
Level 2 [Member] | Canadian government and agency [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 4,892 | 6,715 | |
Level 2 [Member] | U.S. government and agency [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 12,497 | 13,971 | |
Level 2 [Member] | U.S. government and agency [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 13,472 | 13,333 | |
Level 2 [Member] | Other government and agency [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 16,599 | 18,357 | |
Level 2 [Member] | Other government and agency [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 2,941 | 2,261 | |
Level 2 [Member] | Corporate [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 96,073 | 86,721 | |
Level 2 [Member] | Corporate [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 5,278 | 4,967 | |
Level 2 [Member] | Residential mortgage asset-backed securities [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 7 | 8 | |
Level 2 [Member] | Residential mortgage asset-backed securities [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 37 | 64 | |
Level 2 [Member] | Commercial mortgage asset-backed securities [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 1,099 | 674 | |
Level 2 [Member] | Commercial mortgage asset-backed securities [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 138 | 121 | |
Level 2 [Member] | Other securitized assets [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 1,886 | 2,161 | |
Level 2 [Member] | Other securitized assets [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 82 | 141 | |
Level 2 [Member] | Financial assets at fair value, class [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Total assets | 218,320 | 212,037 | |
Level 3 [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Segregated funds net assets | 4,255 | 4,574 | |
Total assets | 34,101 | 33,282 | CAD 33,096 |
Level 3 [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Public equities | 3 | 7 | |
Level 3 [Member] | Real estate [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Real estate | 12,529 | 12,756 | |
Level 3 [Member] | Other invested assets [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Other invested assets | 16,203 | 14,849 | |
Total assets | 16,203 | 14,849 | CAD 12,977 |
Level 3 [Member] | Other government and agency [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 239 | 272 | |
Level 3 [Member] | Other government and agency [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 47 | 51 | |
Level 3 [Member] | Corporate [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 710 | 651 | |
Level 3 [Member] | Corporate [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 88 | 74 | |
Level 3 [Member] | Residential mortgage asset-backed securities [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 1 | 2 | |
Level 3 [Member] | Residential mortgage asset-backed securities [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 1 | ||
Level 3 [Member] | Commercial mortgage asset-backed securities [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 6 | ||
Level 3 [Member] | Commercial mortgage asset-backed securities [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 2 | ||
Level 3 [Member] | Other securitized assets [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 25 | 35 | |
Level 3 [Member] | Other securitized assets [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 1 | 2 | |
Level 3 [Member] | Financial assets at fair value, class [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Total assets | CAD 34,101 | CAD 33,282 |
Invested Assets and Investmen65
Invested Assets and Investment Income - Summary of Invested Assets and Segregated Funds Net Assets, Measured at Fair Value (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Bottom of range [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Investment properties capitalization rates | 3.50% | 3.75% |
Investment properties terminal capitalization rates | 4.00% | 4.10% |
Top of range [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Investment properties capitalization rates | 9.00% | 9.75% |
Investment properties terminal capitalization rates | 9.25% | 10.00% |
Power and infrastructure [Member] | Bottom of range [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Other invested assets fair value discount rate | 9.20% | 9.63% |
Power and infrastructure [Member] | Top of range [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Other invested assets fair value discount rate | 16.50% | 16.00% |
Timberland Investment [Member] | Bottom of range [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Other invested assets fair value discount rate | 5.00% | 5.00% |
Timberland Investment [Member] | Top of range [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Other invested assets fair value discount rate | 7.50% | 7.50% |
Invested Assets and Investmen66
Invested Assets and Investment Income - Summary of Fair Values Categorized by the Fair Value Hierarchy (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Carrying value [Member] | ||
Disclosure of financial assets [Line Items] | ||
Carrying value | CAD 93,980 | CAD 90,995 |
Carrying value [Member] | Mortgages [Member] | ||
Disclosure of financial assets [Line Items] | ||
Carrying value | 44,742 | 44,193 |
Carrying value [Member] | Private placements [Member] | ||
Disclosure of financial assets [Line Items] | ||
Carrying value | 32,132 | 29,729 |
Carrying value [Member] | Policy loans [Member] | ||
Disclosure of financial assets [Line Items] | ||
Carrying value | 5,808 | 6,041 |
Carrying value [Member] | Loans to Bank clients [Member] | ||
Disclosure of financial assets [Line Items] | ||
Carrying value | 1,737 | 1,745 |
Carrying value [Member] | Real estate own use property [Member] | ||
Disclosure of financial assets [Line Items] | ||
Carrying value | 1,281 | 1,376 |
Carrying value [Member] | Other invested assets [Member] | ||
Disclosure of financial assets [Line Items] | ||
Carrying value | 8,280 | 7,911 |
Fair value [Member] | ||
Disclosure of financial assets [Line Items] | ||
Total fair value | 99,246 | 95,689 |
Fair value [Member] | Mortgages [Member] | ||
Disclosure of financial assets [Line Items] | ||
Total fair value | 46,065 | 45,665 |
Fair value [Member] | Private placements [Member] | ||
Disclosure of financial assets [Line Items] | ||
Total fair value | 34,581 | 31,459 |
Fair value [Member] | Policy loans [Member] | ||
Disclosure of financial assets [Line Items] | ||
Total fair value | 5,808 | 6,041 |
Fair value [Member] | Loans to Bank clients [Member] | ||
Disclosure of financial assets [Line Items] | ||
Total fair value | 1,742 | 1,746 |
Fair value [Member] | Real estate own use property [Member] | ||
Disclosure of financial assets [Line Items] | ||
Total fair value | 2,448 | 2,524 |
Fair value [Member] | Other invested assets [Member] | ||
Disclosure of financial assets [Line Items] | ||
Total fair value | 8,602 | 8,254 |
Level 1 [Member] | ||
Disclosure of financial assets [Line Items] | ||
Total fair value | 88 | 54 |
Level 1 [Member] | Other invested assets [Member] | ||
Disclosure of financial assets [Line Items] | ||
Total fair value | 88 | 54 |
Level 2 [Member] | ||
Disclosure of financial assets [Line Items] | ||
Total fair value | 36,064 | 33,860 |
Level 2 [Member] | Private placements [Member] | ||
Disclosure of financial assets [Line Items] | ||
Total fair value | 28,514 | 26,073 |
Level 2 [Member] | Policy loans [Member] | ||
Disclosure of financial assets [Line Items] | ||
Total fair value | 5,808 | 6,041 |
Level 2 [Member] | Loans to Bank clients [Member] | ||
Disclosure of financial assets [Line Items] | ||
Total fair value | 1,742 | 1,746 |
Level 3 [Member] | ||
Disclosure of financial assets [Line Items] | ||
Total fair value | 63,094 | 61,775 |
Level 3 [Member] | Mortgages [Member] | ||
Disclosure of financial assets [Line Items] | ||
Total fair value | 46,065 | 45,665 |
Level 3 [Member] | Private placements [Member] | ||
Disclosure of financial assets [Line Items] | ||
Total fair value | 6,067 | 5,386 |
Level 3 [Member] | Real estate own use property [Member] | ||
Disclosure of financial assets [Line Items] | ||
Total fair value | 2,448 | 2,524 |
Level 3 [Member] | Other invested assets [Member] | ||
Disclosure of financial assets [Line Items] | ||
Total fair value | CAD 8,514 | CAD 8,200 |
Invested Assets and Investmen67
Invested Assets and Investment Income - Summary of Invested Assets and Segregated Funds Net Assets Measured at Fair Value Using Significant Unobservable Inputs (Level 3) (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of fair value measurement of assets [Line Items] | ||
Asset Beginning of period | CAD 720,681 | |
Asset at end of period | 729,533 | CAD 720,681 |
Debt securities [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Asset Beginning of period | 168,622 | |
Asset at end of period | 174,000 | 168,622 |
Public equities [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Asset Beginning of period | 19,496 | |
Asset at end of period | 21,545 | 19,496 |
Level 3 [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Asset Beginning of period | 33,282 | 33,096 |
Net realized/unrealized gains (losses) included in net income | 770 | 1,014 |
Net realized/unrealized gains (losses) included in net AOCI | 1 | 10 |
Purchases | 4,707 | 3,395 |
Sales | (2,077) | (2,407) |
Settlements | (942) | (885) |
Transfer into Level 3 | 25 | 46 |
Transfer out of Level 3 | (205) | (242) |
Currency Movement | (1,460) | (745) |
Asset at end of period | 34,101 | 33,282 |
Change in unrealized gains (losses) on assets still held | 558 | 1,132 |
Level 3 [Member] | Other invested assets [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Asset Beginning of period | 14,849 | 12,977 |
Net realized/unrealized gains (losses) included in net income | 395 | 786 |
Net realized/unrealized gains (losses) included in net AOCI | 9 | |
Purchases | 3,022 | 2,171 |
Sales | (435) | (76) |
Settlements | (837) | (685) |
Currency Movement | (791) | (333) |
Asset at end of period | 16,203 | 14,849 |
Change in unrealized gains (losses) on assets still held | 244 | 847 |
Level 3 [Member] | Public equities [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Asset Beginning of period | 7 | |
Purchases | 7 | |
Sales | (4) | |
Asset at end of period | 3 | 7 |
Level 3 [Member] | Real estate and other [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Asset Beginning of period | 27,605 | 26,945 |
Net realized/unrealized gains (losses) included in net income | 696 | 949 |
Net realized/unrealized gains (losses) included in net AOCI | 9 | |
Purchases | 4,279 | 2,852 |
Sales | (1,702) | (1,858) |
Settlements | (837) | (685) |
Currency Movement | (1,309) | (607) |
Asset at end of period | 28,732 | 27,605 |
Change in unrealized gains (losses) on assets still held | 508 | 1,044 |
Level 3 [Member] | Segregated funds net assets [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Asset Beginning of period | 4,574 | 4,656 |
Net realized/unrealized gains (losses) included in net income | 60 | 92 |
Purchases | 261 | 356 |
Sales | (248) | (312) |
Settlements | (54) | (19) |
Transfer into Level 3 | (12) | |
Transfer out of Level 3 | (184) | (105) |
Currency Movement | (154) | (82) |
Asset at end of period | 4,255 | 4,574 |
Change in unrealized gains (losses) on assets still held | 45 | 93 |
Level 3 [Member] | FVTPL [Member] | Debt securities [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Asset Beginning of period | 966 | 1,346 |
Net realized/unrealized gains (losses) included in net income | 15 | (26) |
Purchases | 131 | 133 |
Sales | (97) | (193) |
Settlements | (43) | (176) |
Transfer into Level 3 | 24 | 58 |
Transfer out of Level 3 | (21) | (128) |
Currency Movement | (48) | |
Asset at end of period | 975 | 966 |
Change in unrealized gains (losses) on assets still held | 5 | (5) |
Level 3 [Member] | FVTPL [Member] | Public equities [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Asset Beginning of period | 7 | |
Purchases | 7 | |
Sales | (4) | |
Asset at end of period | 3 | 7 |
Level 3 [Member] | FVTPL [Member] | Other government and agency [Member] | Debt securities [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Asset Beginning of period | 272 | 310 |
Net realized/unrealized gains (losses) included in net income | (3) | 3 |
Purchases | 26 | 50 |
Sales | (58) | (41) |
Settlements | (6) | (30) |
Currency Movement | 8 | (20) |
Asset at end of period | 239 | 272 |
Change in unrealized gains (losses) on assets still held | (3) | 1 |
Level 3 [Member] | FVTPL [Member] | Corporate [Member] | Debt securities [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Asset Beginning of period | 651 | 903 |
Net realized/unrealized gains (losses) included in net income | 19 | (29) |
Purchases | 105 | 83 |
Sales | (34) | (84) |
Settlements | (29) | (134) |
Transfer into Level 3 | 24 | 58 |
Transfer out of Level 3 | (21) | (124) |
Currency Movement | (5) | (22) |
Asset at end of period | 710 | 651 |
Change in unrealized gains (losses) on assets still held | 10 | (4) |
Level 3 [Member] | FVTPL [Member] | Residential mortgage asset-backed securities [Member] | Debt securities [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Asset Beginning of period | 2 | 15 |
Sales | (11) | |
Settlements | (1) | |
Currency Movement | (1) | (1) |
Asset at end of period | 1 | 2 |
Change in unrealized gains (losses) on assets still held | (1) | 1 |
Level 3 [Member] | FVTPL [Member] | Commercial mortgage asset-backed securities [Member] | Debt securities [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Asset Beginning of period | 6 | 70 |
Sales | (5) | (56) |
Settlements | (1) | (4) |
Currency Movement | (4) | |
Asset at end of period | 6 | |
Change in unrealized gains (losses) on assets still held | (3) | |
Level 3 [Member] | FVTPL [Member] | Other securitized assets [Member] | Debt securities [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Asset Beginning of period | 35 | 48 |
Net realized/unrealized gains (losses) included in net income | (1) | |
Sales | (1) | |
Settlements | (7) | (7) |
Transfer out of Level 3 | (4) | |
Currency Movement | (2) | (1) |
Asset at end of period | 25 | 35 |
Change in unrealized gains (losses) on assets still held | (1) | |
Level 3 [Member] | AFS [Member] | Debt securities [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Asset Beginning of period | 130 | 149 |
Net realized/unrealized gains (losses) included in net income | (1) | (1) |
Net realized/unrealized gains (losses) included in net AOCI | 1 | 1 |
Purchases | 36 | 47 |
Sales | (26) | (44) |
Settlements | (8) | (5) |
Transfer into Level 3 | 1 | |
Transfer out of Level 3 | (9) | |
Currency Movement | 3 | (8) |
Asset at end of period | 136 | 130 |
Level 3 [Member] | AFS [Member] | Other government and agency [Member] | Debt securities [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Asset Beginning of period | 51 | 42 |
Net realized/unrealized gains (losses) included in net income | (1) | |
Net realized/unrealized gains (losses) included in net AOCI | (2) | |
Purchases | 14 | 18 |
Sales | (15) | (6) |
Settlements | (2) | |
Transfer into Level 3 | 1 | |
Currency Movement | 1 | (3) |
Asset at end of period | 47 | 51 |
Level 3 [Member] | AFS [Member] | Corporate [Member] | Debt securities [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Asset Beginning of period | 74 | 90 |
Net realized/unrealized gains (losses) included in net AOCI | 4 | (2) |
Purchases | 22 | 29 |
Sales | (10) | (32) |
Settlements | (4) | (3) |
Transfer out of Level 3 | (5) | |
Currency Movement | 2 | (3) |
Asset at end of period | 88 | 74 |
Level 3 [Member] | AFS [Member] | Residential mortgage asset-backed securities [Member] | Debt securities [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Asset Beginning of period | 1 | 8 |
Net realized/unrealized gains (losses) included in net income | (1) | |
Net realized/unrealized gains (losses) included in net AOCI | (1) | 1 |
Sales | (6) | |
Currency Movement | (1) | |
Asset at end of period | 1 | |
Level 3 [Member] | AFS [Member] | Commercial mortgage asset-backed securities [Member] | Debt securities [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Asset Beginning of period | 2 | 4 |
Sales | (1) | |
Settlements | (1) | (1) |
Currency Movement | (1) | |
Asset at end of period | 2 | |
Level 3 [Member] | AFS [Member] | Other securitized assets [Member] | Debt securities [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Asset Beginning of period | 2 | 5 |
Net realized/unrealized gains (losses) included in net AOCI | 2 | |
Settlements | (1) | (1) |
Transfer out of Level 3 | (4) | |
Asset at end of period | 1 | 2 |
Level 3 [Member] | Real estate [Member] | Investment property [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Asset Beginning of period | 12,756 | 13,968 |
Net realized/unrealized gains (losses) included in net income | 301 | 163 |
Purchases | 1,257 | 681 |
Sales | (1,267) | (1,782) |
Currency Movement | (518) | (274) |
Asset at end of period | 12,529 | 12,756 |
Change in unrealized gains (losses) on assets still held | CAD 264 | CAD 197 |
Invested Assets and Investmen68
Invested Assets and Investment Income - Summary of Invested Assets and Segregated Funds Net Assets Measured at Fair Value Using Significant Unobservable Inputs (Level 3) (Parenthetical) (Detail) - U.S. Real Estate Investment Trust [Member] - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of fair value measurement of assets [Line Items] | ||
Percentage of unitholder voting rights | 9.50% | |
Hancock US Real Estate Trust Fund, L.P. [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Percentage of ownership of partnership interests | 11.70% | |
U.S. Commercial Real Estate [Member] | Hancock US Real Estate Trust Fund, L.P. [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Gain on sale of investments | CAD 619 | |
U.S. Commercial Real Estate [Member] | Singapore [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Gain on sale of investments | CAD 313 | CAD 1,011 |
Derivative and Hedging Instru69
Derivative and Hedging Instruments - Summary of Gross Notional Amount and Fair Value of Derivative Contracts (Detail) - CAD | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about hedges [Line Items] | ||
Notional amount | CAD 336,773,000,000 | CAD 370,198,000,000 |
Fair value, assets | 15,569,000,000 | 23,672,000,000 |
Fair value, liabilities | 7,822,000,000 | 14,151,000,000 |
Designated [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Notional amount | 2,679,000,000 | 3,915,000,000 |
Designated [Member] | Fair value hedges [Member] | Interest rate swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Notional amount | 548,000,000 | 2,158,000,000 |
Designated [Member] | Fair value hedges [Member] | Foreign currency swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Notional amount | 84,000,000 | 91,000,000 |
Designated [Member] | Cash flow hedges [Member] | Foreign currency swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Notional amount | 1,757,000,000 | 1,285,000,000 |
Designated [Member] | Cash flow hedges [Member] | Forward contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Notional amount | 165,000,000 | 255,000,000 |
Designated [Member] | Cash flow hedges [Member] | Equity contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Notional amount | 125,000,000 | 126,000,000 |
Non designated [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Notional amount | 334,094,000,000 | 366,283,000,000 |
Non designated [Member] | Interest rate swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Notional amount | 246,270,000,000 | 281,188,000,000 |
Non designated [Member] | Foreign currency swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Notional amount | 16,321,000,000 | 12,226,000,000 |
Non designated [Member] | Forward contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Notional amount | 20,341,000,000 | 15,411,000,000 |
Non designated [Member] | Equity contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Notional amount | 13,597,000,000 | 14,989,000,000 |
Non designated [Member] | Interest rate futures [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Notional amount | 11,551,000,000 | 11,616,000,000 |
Non designated [Member] | Interest rate options [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Notional amount | 10,093,000,000 | 9,390,000,000 |
Non designated [Member] | Currency rate futures [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Notional amount | 3,157,000,000 | 4,729,000,000 |
Non designated [Member] | Credit default swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Notional amount | 606,000,000 | 662,000,000 |
Non designated [Member] | Equity futures [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Notional amount | 12,158,000,000 | 16,072,000,000 |
Fair value [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Fair value, assets | 15,569,000,000 | 23,672,000,000 |
Fair value, liabilities | 7,822,000,000 | 14,151,000,000 |
Fair value [Member] | Interest rate swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Fair value, assets | 14,199,000,000 | 22,602,000,000 |
Fair value, liabilities | 6,309,000,000 | 11,984,000,000 |
Fair value [Member] | Equity contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Fair value, assets | 829,000,000 | 690,000,000 |
Fair value, liabilities | 23,000,000 | 34,000,000 |
Fair value [Member] | Credit default swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Fair value, assets | 14,000,000 | 18,000,000 |
Fair value [Member] | Designated [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Fair value, assets | 37,000,000 | 22,000,000 |
Fair value, liabilities | 362,000,000 | 951,000,000 |
Fair value [Member] | Designated [Member] | Fair value hedges [Member] | Interest rate swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Fair value, liabilities | 20,000,000 | 477,000,000 |
Fair value [Member] | Designated [Member] | Fair value hedges [Member] | Foreign currency swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Fair value, assets | 1,000,000 | 1,000,000 |
Fair value, liabilities | 4,000,000 | 3,000,000 |
Fair value [Member] | Designated [Member] | Cash flow hedges [Member] | Foreign currency swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Fair value, assets | 20,000,000 | |
Fair value, liabilities | 333,000,000 | 447,000,000 |
Fair value [Member] | Designated [Member] | Cash flow hedges [Member] | Forward contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Fair value, liabilities | 4,000,000 | 23,000,000 |
Fair value [Member] | Designated [Member] | Cash flow hedges [Member] | Equity contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Fair value, assets | 16,000,000 | 21,000,000 |
Fair value, liabilities | 1,000,000 | 1,000,000 |
Fair value [Member] | Non designated [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Fair value, assets | 15,532,000,000 | 23,650,000,000 |
Fair value, liabilities | 7,460,000,000 | 13,200,000,000 |
Fair value [Member] | Non designated [Member] | Interest rate swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Fair value, assets | 12,984,000,000 | 21,900,000,000 |
Fair value, liabilities | 6,251,000,000 | 10,878,000,000 |
Fair value [Member] | Non designated [Member] | Foreign currency swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Fair value, assets | 494,000,000 | 347,000,000 |
Fair value, liabilities | 1,122,000,000 | 1,645,000,000 |
Fair value [Member] | Non designated [Member] | Forward contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Fair value, assets | 915,000,000 | 340,000,000 |
Fair value, liabilities | 65,000,000 | 644,000,000 |
Fair value [Member] | Non designated [Member] | Equity contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Fair value, assets | 813,000,000 | 669,000,000 |
Fair value, liabilities | 22,000,000 | 33,000,000 |
Fair value [Member] | Non designated [Member] | Interest rate options [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Fair value, assets | 312,000,000 | 376,000,000 |
Fair value [Member] | Non designated [Member] | Credit default swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Fair value, assets | CAD 14,000,000 | CAD 18,000,000 |
Derivative and Hedging Instru70
Derivative and Hedging Instruments - Summary of Fair Value of Derivative Instruments by Remaining Term to Maturity (Detail) - CAD | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about hedges [Line Items] | ||
Derivative assets | CAD 15,569,000,000 | CAD 23,672,000,000 |
Derivative liabilities | 7,822,000,000 | 14,151,000,000 |
Remaining term to maturity (notional amounts) | 336,773,000,000 | 370,198,000,000 |
Credit risk equivalent | 12,262,000,000 | 15,638,000,000 |
Risk- weighted amount | 1,457,000,000 | 2,194,000,000 |
Fair value [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative assets | 15,569,000,000 | 23,672,000,000 |
Derivative liabilities | 7,822,000,000 | 14,151,000,000 |
Fair value, net | 7,747,000,000 | 9,521,000,000 |
Interest rate swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 285,787,000,000 | 318,597,000,000 |
Credit risk equivalent | 7,344,000,000 | 10,855,000,000 |
Risk- weighted amount | 905,000,000 | 1,592,000,000 |
Interest rate swaps [Member] | OTC swap contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 138,714,000,000 | 214,891,000,000 |
Credit risk equivalent | 6,588,000,000 | 10,205,000,000 |
Risk- weighted amount | 809,000,000 | 1,493,000,000 |
Interest rate swaps [Member] | Cleared swap contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 108,104,000,000 | 68,455,000,000 |
Interest rate swaps [Member] | Forward contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 17,325,000,000 | 14,245,000,000 |
Credit risk equivalent | 285,000,000 | 192,000,000 |
Risk- weighted amount | 35,000,000 | 29,000,000 |
Interest rate swaps [Member] | Futures [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 11,551,000,000 | 11,616,000,000 |
Interest rate swaps [Member] | Options purchased [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 10,093,000,000 | 9,390,000,000 |
Credit risk equivalent | 471,000,000 | 458,000,000 |
Risk- weighted amount | 61,000,000 | 70,000,000 |
Interest rate swaps [Member] | Fair value [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative assets | 14,839,000,000 | 23,536,000,000 |
Derivative liabilities | 7,111,000,000 | 12,900,000,000 |
Fair value, net | 7,728,000,000 | 10,636,000,000 |
Interest rate swaps [Member] | Fair value [Member] | OTC swap contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative assets | 13,379,000,000 | 19,327,000,000 |
Derivative liabilities | 6,867,000,000 | 10,154,000,000 |
Fair value, net | 6,512,000,000 | 9,173,000,000 |
Interest rate swaps [Member] | Fair value [Member] | Cleared swap contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative assets | 245,000,000 | 3,507,000,000 |
Derivative liabilities | 206,000,000 | 2,117,000,000 |
Fair value, net | 39,000,000 | 1,390,000,000 |
Interest rate swaps [Member] | Fair value [Member] | Forward contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative assets | 903,000,000 | 326,000,000 |
Derivative liabilities | 38,000,000 | 629,000,000 |
Fair value, net | 865,000,000 | (303,000,000) |
Interest rate swaps [Member] | Fair value [Member] | Options purchased [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative assets | 312,000,000 | 376,000,000 |
Fair value, net | 312,000,000 | 376,000,000 |
Foreign exchange [Member] | Forward contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 3,181,000,000 | 1,422,000,000 |
Credit risk equivalent | 101,000,000 | 62,000,000 |
Risk- weighted amount | 12,000,000 | 9,000,000 |
Foreign exchange [Member] | Futures [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 3,157,000,000 | 4,729,000,000 |
Foreign exchange [Member] | Swap contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 18,162,000,000 | 13,601,000,000 |
Credit risk equivalent | 1,874,000,000 | 1,491,000,000 |
Risk- weighted amount | 200,000,000 | 181,000,000 |
Foreign exchange [Member] | Fair value [Member] | Forward contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative assets | 12,000,000 | 13,000,000 |
Derivative liabilities | 31,000,000 | 38,000,000 |
Fair value, net | (19,000,000) | (25,000,000) |
Foreign exchange [Member] | Fair value [Member] | Swap contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative assets | 510,000,000 | 346,000,000 |
Derivative liabilities | 1,483,000,000 | 2,120,000,000 |
Fair value, net | (973,000,000) | (1,774,000,000) |
Credit derivatives [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 606,000,000 | 662,000,000 |
Credit derivatives [Member] | Fair value [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative assets | 14,000,000 | 18,000,000 |
Fair value, net | 14,000,000 | 18,000,000 |
Equity contracts [Member] | Futures [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 12,158,000,000 | 16,072,000,000 |
Equity contracts [Member] | Options purchased [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 10,941,000,000 | 11,816,000,000 |
Credit risk equivalent | 2,606,000,000 | 2,735,000,000 |
Risk- weighted amount | 305,000,000 | 358,000,000 |
Equity contracts [Member] | Swap contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 2,781,000,000 | 3,299,000,000 |
Credit risk equivalent | 337,000,000 | 495,000,000 |
Risk- weighted amount | 35,000,000 | 54,000,000 |
Equity contracts [Member] | Fair value [Member] | Options purchased [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative assets | 769,000,000 | 626,000,000 |
Derivative liabilities | 10,000,000 | 2,000,000 |
Fair value, net | 759,000,000 | 624,000,000 |
Equity contracts [Member] | Fair value [Member] | Swap contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative assets | 60,000,000 | 64,000,000 |
Derivative liabilities | 14,000,000 | 35,000,000 |
Fair value, net | 46,000,000 | 29,000,000 |
Financial Instruments [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 336,773,000,000 | 370,198,000,000 |
Credit risk equivalent | 12,262,000,000 | 15,638,000,000 |
Risk- weighted amount | 1,457,000,000 | 2,194,000,000 |
Financial Instruments [Member] | Fair value [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative assets | 16,204,000,000 | 24,603,000,000 |
Derivative liabilities | 8,649,000,000 | 15,095,000,000 |
Fair value, net | 7,555,000,000 | 9,508,000,000 |
Accrued interest [Member] | Fair value [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative assets | 635,000,000 | 931,000,000 |
Derivative liabilities | 827,000,000 | 944,000,000 |
Fair value, net | (192,000,000) | (13,000,000) |
Less than 1 year [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative assets | 605,000,000 | 467,000,000 |
Derivative liabilities | 224,000,000 | 593,000,000 |
Remaining term to maturity (notional amounts) | 53,882,000,000 | 64,933,000,000 |
Less than 1 year [Member] | Interest rate swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 27,179,000,000 | 33,289,000,000 |
Less than 1 year [Member] | Interest rate swaps [Member] | OTC swap contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 7,161,000,000 | 13,244,000,000 |
Less than 1 year [Member] | Interest rate swaps [Member] | Cleared swap contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 1,615,000,000 | 717,000,000 |
Less than 1 year [Member] | Interest rate swaps [Member] | Forward contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 6,036,000,000 | 7,229,000,000 |
Less than 1 year [Member] | Interest rate swaps [Member] | Futures [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 11,551,000,000 | 11,616,000,000 |
Less than 1 year [Member] | Interest rate swaps [Member] | Options purchased [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 816,000,000 | 483,000,000 |
Less than 1 year [Member] | Foreign exchange [Member] | Forward contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 3,046,000,000 | 1,257,000,000 |
Less than 1 year [Member] | Foreign exchange [Member] | Futures [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 3,157,000,000 | 4,729,000,000 |
Less than 1 year [Member] | Foreign exchange [Member] | Swap contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 999,000,000 | 425,000,000 |
Less than 1 year [Member] | Credit derivatives [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 38,000,000 | 47,000,000 |
Less than 1 year [Member] | Equity contracts [Member] | Futures [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 12,158,000,000 | 16,072,000,000 |
Less than 1 year [Member] | Equity contracts [Member] | Options purchased [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 4,693,000,000 | 6,007,000,000 |
Less than 1 year [Member] | Equity contracts [Member] | Swap contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 2,612,000,000 | 3,107,000,000 |
Less than 1 year [Member] | Financial Instruments [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 53,882,000,000 | 64,933,000,000 |
1 to 3 years [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative assets | 822,000,000 | 680,000,000 |
Derivative liabilities | 149,000,000 | 595,000,000 |
3 to 5 years [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative assets | 889,000,000 | 719,000,000 |
Derivative liabilities | 168,000,000 | 511,000,000 |
1 to 5 years [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 58,040,000,000 | 61,949,000,000 |
1 to 5 years [Member] | Interest rate swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 46,539,000,000 | 51,251,000,000 |
1 to 5 years [Member] | Interest rate swaps [Member] | OTC swap contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 19,141,000,000 | 37,395,000,000 |
1 to 5 years [Member] | Interest rate swaps [Member] | Cleared swap contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 12,928,000,000 | 4,786,000,000 |
1 to 5 years [Member] | Interest rate swaps [Member] | Forward contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 10,614,000,000 | 6,143,000,000 |
1 to 5 years [Member] | Interest rate swaps [Member] | Options purchased [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 3,856,000,000 | 2,927,000,000 |
1 to 5 years [Member] | Foreign exchange [Member] | Forward contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 135,000,000 | 165,000,000 |
1 to 5 years [Member] | Foreign exchange [Member] | Swap contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 4,481,000,000 | 3,917,000,000 |
1 to 5 years [Member] | Credit derivatives [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 568,000,000 | 615,000,000 |
1 to 5 years [Member] | Equity contracts [Member] | Options purchased [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 6,148,000,000 | 5,809,000,000 |
1 to 5 years [Member] | Equity contracts [Member] | Swap contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 169,000,000 | 192,000,000 |
1 to 5 years [Member] | Financial Instruments [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 58,040,000,000 | 61,949,000,000 |
Over 5 years [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative assets | 13,253,000,000 | 21,806,000,000 |
Derivative liabilities | 7,281,000,000 | 12,452,000,000 |
Remaining term to maturity (notional amounts) | 224,851,000,000 | 243,316,000,000 |
Over 5 years [Member] | Interest rate swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 212,069,000,000 | 234,057,000,000 |
Over 5 years [Member] | Interest rate swaps [Member] | OTC swap contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 112,412,000,000 | 164,252,000,000 |
Over 5 years [Member] | Interest rate swaps [Member] | Cleared swap contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 93,561,000,000 | 62,952,000,000 |
Over 5 years [Member] | Interest rate swaps [Member] | Forward contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 675,000,000 | 873,000,000 |
Over 5 years [Member] | Interest rate swaps [Member] | Options purchased [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 5,421,000,000 | 5,980,000,000 |
Over 5 years [Member] | Foreign exchange [Member] | Swap contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 12,682,000,000 | 9,259,000,000 |
Over 5 years [Member] | Equity contracts [Member] | Options purchased [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 100,000,000 | |
Over 5 years [Member] | Financial Instruments [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | CAD 224,851,000,000 | CAD 243,316,000,000 |
Derivative and Hedging Instru71
Derivative and Hedging Instruments - Additional Information (Detail) - CAD | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about hedges [Line Items] | ||
Notional amount | CAD 336,773,000,000 | CAD 370,198,000,000 |
Fair value of reinsurance ceded guaranteed minimum income benefits | 1,079,000,000 | 1,408,000,000 |
Fair value of reinsurance assumed guaranteed minimum income benefits | 100,000,000 | 119,000,000 |
Fair value of credit and interest rate embedded derivatives | 123,000,000 | 218,000,000 |
Shareholders' accumulated other comprehensive income (loss) ("AOCI") [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Net loss that will be reclassified from AOCI to net income within next 12 months | CAD 13,000,000 | |
Maximum time frame for which variable cash flows are hedged | 19 years | |
Variable annuity guarantee dynamic hedging and macro equity risk hedging programs [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Notional amount | CAD 114,000,000,000 | CAD 177,000,000,000 |
Derivative and Hedging Instru72
Derivative and Hedging Instruments - Summary of Fair Value of Derivative Contracts (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about hedges [Line Items] | ||
Total derivative assets | CAD 15,569 | CAD 23,672 |
Total derivative liabilities | 7,822 | 14,151 |
Fair value [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Total derivative assets | 15,569 | 23,672 |
Total derivative liabilities | 7,822 | 14,151 |
Interest rate swaps [Member] | Fair value [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Total derivative assets | 14,199 | 22,602 |
Total derivative liabilities | 6,309 | 11,984 |
Foreign Exchange Contract [Member] | Fair value [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Total derivative assets | 527 | 362 |
Total derivative liabilities | 1,490 | 2,133 |
Equity contracts [Member] | Fair value [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Total derivative assets | 829 | 690 |
Total derivative liabilities | 23 | 34 |
Credit default swaps [Member] | Fair value [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Total derivative assets | 14 | 18 |
Level 2 [Member] | Fair value [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Total derivative assets | 14,490 | 22,606 |
Total derivative liabilities | 7,512 | 13,248 |
Level 2 [Member] | Interest rate swaps [Member] | Fair value [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Total derivative assets | 13,181 | 22,045 |
Total derivative liabilities | 6,012 | 11,114 |
Level 2 [Member] | Foreign Exchange Contract [Member] | Fair value [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Total derivative assets | 527 | 361 |
Total derivative liabilities | 1,490 | 2,133 |
Level 2 [Member] | Equity contracts [Member] | Fair value [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Total derivative assets | 768 | 182 |
Total derivative liabilities | 10 | 1 |
Level 2 [Member] | Credit default swaps [Member] | Fair value [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Total derivative assets | 14 | 18 |
Level 3 [Member] | Fair value [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Total derivative assets | 1,079 | 1,066 |
Total derivative liabilities | 310 | 903 |
Level 3 [Member] | Interest rate swaps [Member] | Fair value [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Total derivative assets | 1,018 | 557 |
Total derivative liabilities | 297 | 870 |
Level 3 [Member] | Foreign Exchange Contract [Member] | Fair value [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Total derivative assets | 1 | |
Level 3 [Member] | Equity contracts [Member] | Fair value [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Total derivative assets | 61 | 508 |
Total derivative liabilities | CAD 13 | CAD 33 |
Derivative and Hedging Instru73
Derivative and Hedging Instruments - Net Derivative Significant Unobservable Inputs Used in Fair Value Measurement (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Roll forwards for net derivative contracts measured at fair value using significant unobservable inputs abstract | ||
Balance at the beginning of the year | CAD 163 | CAD 350 |
Net income | 1,082 | 47 |
OCI | (9) | 40 |
Purchases | 22 | 373 |
Settlements | (103) | (522) |
Into Level 3 | 0 | 0 |
Out of Level 3 | (363) | (116) |
Currency movement | (23) | (9) |
Balance at the end of the year | 769 | 163 |
Change in unrealized gains (losses) on instruments still held | CAD 832 | CAD 145 |
Derivative and Hedging Instru74
Derivative and Hedging Instruments - Summary of Recognized Gains Losses on Derivatives and Hedged Items in Fair Value Hedges in Investment Income (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about hedges [Line Items] | ||
Gains (losses) recognized on derivatives | CAD 832 | CAD 145 |
Fair value hedges [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Gains (losses) recognized on derivatives | (17) | (53) |
Gains (losses) recognized for hedged items | 18 | 33 |
Ineffectiveness recognized in investment income | 1 | (20) |
Fair value hedges [Member] | Interest rate swaps [Member] | Fixed rate assets [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Gains (losses) recognized on derivatives | 2 | (52) |
Gains (losses) recognized for hedged items | (3) | 30 |
Ineffectiveness recognized in investment income | (1) | (22) |
Fair value hedges [Member] | Interest rate swaps [Member] | Fixed rate liabilities [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Gains (losses) recognized on derivatives | (17) | (1) |
Gains (losses) recognized for hedged items | 17 | 1 |
Fair value hedges [Member] | Foreign currency swaps [Member] | Fixed rate assets [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Gains (losses) recognized on derivatives | (2) | |
Gains (losses) recognized for hedged items | 4 | 2 |
Ineffectiveness recognized in investment income | CAD 2 | CAD 2 |
Derivative and Hedging Instru75
Derivative and Hedging Instruments - Summary of Effects of Derivatives in Cash Flow Hedging Relationships (Detail) - Cash flow hedges [Member] - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about hedges [Line Items] | ||
Gains (losses) deferred in AOCI on derivatives | CAD 163 | CAD 74 |
Gains (losses) reclassified from AOCI into investment income | 58 | (15) |
Ineffectiveness recognized in investment income | 0 | 0 |
Interest rate swaps [Member] | Forecasted liabilities [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Gains (losses) reclassified from AOCI into investment income | (17) | (18) |
Ineffectiveness recognized in investment income | 0 | 0 |
Foreign currency swaps [Member] | Fixed rate assets [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Gains (losses) deferred in AOCI on derivatives | 3 | (4) |
Gains (losses) reclassified from AOCI into investment income | (1) | |
Ineffectiveness recognized in investment income | 0 | 0 |
Foreign currency swaps [Member] | Floating rate liabilities [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Gains (losses) deferred in AOCI on derivatives | 95 | 47 |
Gains (losses) reclassified from AOCI into investment income | 50 | 23 |
Ineffectiveness recognized in investment income | 0 | 0 |
Foreign currency swaps [Member] | Fixed rate liabilities [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Gains (losses) deferred in AOCI on derivatives | 35 | (15) |
Gains (losses) reclassified from AOCI into investment income | 7 | (8) |
Ineffectiveness recognized in investment income | 0 | 0 |
Forward contracts [Member] | Forecasted expenses [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Gains (losses) deferred in AOCI on derivatives | 10 | 7 |
Gains (losses) reclassified from AOCI into investment income | (10) | (14) |
Ineffectiveness recognized in investment income | 0 | 0 |
Equity contracts [Member] | Stock-based compensation [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Gains (losses) deferred in AOCI on derivatives | 20 | 39 |
Gains (losses) reclassified from AOCI into investment income | 29 | (1) |
Ineffectiveness recognized in investment income | CAD 0 | 0 |
Non-derivative financial instrument [Member] | Forecasted expenses [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Gains (losses) reclassified from AOCI into investment income | 3 | |
Ineffectiveness recognized in investment income | CAD 0 |
Derivative and Hedging Instru76
Derivative and Hedging Instruments - Summary of Effects of Net Investment Hedging Relationships (Detail) - Hedges of net investment in foreign operations [Member] - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about hedges [Line Items] | ||
Gains (losses) deferred in AOCI on derivatives | CAD 355 | CAD (25) |
Gains (losses) reclassified from AOCI into investment income | 0 | 0 |
Ineffectiveness recognized in investment income | 0 | 0 |
Non-functional currency denominated debt [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Gains (losses) deferred in AOCI on derivatives | 355 | (25) |
Gains (losses) reclassified from AOCI into investment income | 0 | 0 |
Ineffectiveness recognized in investment income | CAD 0 | CAD 0 |
Derivative and Hedging Instru77
Derivative and Hedging Instruments - Summary of Effects of Derivatives Not Designated in Qualifying Hedge Accounting Relationships (Detail) - Non designated [Member] - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about hedges [Line Items] | ||
Derivative investment income (loss) | CAD (1,024) | CAD (2,574) |
Interest rate swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative investment income (loss) | (927) | (141) |
Interest rate futures [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative investment income (loss) | 372 | (26) |
Interest rate options [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative investment income (loss) | (96) | (11) |
Foreign currency swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative investment income (loss) | 529 | (14) |
Currency rate futures [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative investment income (loss) | (92) | 263 |
Forward contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative investment income (loss) | 1,231 | (88) |
Equity futures [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative investment income (loss) | (2,190) | (2,387) |
Equity contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative investment income (loss) | 153 | (171) |
Credit default swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative investment income (loss) | CAD (4) | CAD 1 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Recovery) Recognized in Consolidated Statements of Income (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Current tax | ||
Current year | CAD 608 | CAD 659 |
Adjustments to prior year | (38) | (228) |
Current tax | 570 | 431 |
Deferred tax | ||
Change related to temporary differences | (803) | (235) |
Impact of U.S. Tax Reform | 472 | |
Income tax expense | CAD 239 | CAD 196 |
Income Taxes - Components of 79
Income Taxes - Components of Income Tax Expense (Recovery) Recognized in Other Comprehensive Income ("OCI") (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Major components of tax expense (income) [abstract] | ||
Current income tax expense (recovery) | CAD 116 | CAD (72) |
Deferred income tax expense (recovery) | 320 | (25) |
Total income tax expense (recovery) | CAD 436 | CAD (97) |
Income Taxes - Components of 80
Income Taxes - Components of Income Tax Expense (Recovery) Recognized in Equity (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Major components of tax expense (income) [abstract] | ||
Current income tax expense (recovery) | CAD (2) | |
Deferred income tax expense (recovery) | CAD (2) | (2) |
Income tax expense (recovery) | CAD (2) | CAD (4) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - CAD CAD in Millions | Dec. 22, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Major components of tax expense (income) [abstract] | |||
Effective income tax rate | 26.75% | 26.75% | |
Provisional charge for the estimated impact of U.S. Tax Reform, after-tax | CAD 1,800 | ||
Current tax receivable | CAD 778 | CAD 446 | |
Current tax payable | 178 | 387 | |
Deferred tax assets | 4,569 | 4,439 | |
Deferred tax assets - recognition dependent on future taxable profits | 4,527 | 4,403 | |
Operating tax loss carry forward | 3,164 | 3,556 | |
Operating tax loss carry forward expired in future | 2,109 | ||
Operating tax loss carry forward without expiration date | 159 | ||
Capital tax loss carry forward | 8 | 9 | |
Tax benefit on loss carry forwards for which deferred tax asset recognized | 596 | 942 | |
Tax benefit of loss carry forwards for which no deferred tax asset recognized | 171 | 139 | |
Tax credit carry forwards which expire in future | 606 | 1,039 | |
Tax credit carryforwards of which benefit not recognized | CAD 152 | 164 | |
Tax credit/Loss carryforwards expiration period | Between the years 2020 and 2037 | ||
Deferred tax liability | CAD 1,281 | 1,359 | |
Aggregate amount of taxable temporary differences associated with the Company's own investments in subsidiaries, not included in financial statements | CAD 11,780 | CAD 13,102 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of Income Tax Expense (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of accounting profit multiplied by applicable tax rates [abstract] | ||
Income before income taxes | CAD 2,501 | CAD 3,329 |
Income tax expense at Canadian statutory tax rate | 669 | 890 |
Increase (decrease) in income taxes due to: | ||
Tax-exempt investment income | (242) | (229) |
Differences in tax rate on income not subject to tax in Canada | (551) | (366) |
Recovery of unrecognized tax losses of prior years | (10) | |
Adjustments to taxes related to prior years | (182) | (206) |
Tax losses and temporary differences not recognized as deferred taxes | 14 | 22 |
Impact of U.S. Tax Reform | 472 | |
Other differences | 59 | 95 |
Income tax expense | CAD 239 | CAD 196 |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Tax Assets and Liabilities (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets and liabilities [abstract] | |||
Deferred tax assets | CAD 4,569 | CAD 4,439 | |
Deferred tax liabilities | (1,281) | (1,359) | |
Net deferred tax assets | CAD 3,288 | CAD 3,080 | CAD 2,832 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of changes in deferred tax liability (asset) [Line Items] | ||
Beginning balance | CAD 3,080 | CAD 2,832 |
Recognized in Income Statement | 331 | 235 |
Recognized in Other Comprehensive Income | (320) | 25 |
Recognized in Equity | 2 | 2 |
Translation and Other | 195 | (14) |
Ending balance | 3,288 | 3,080 |
Loss carry forwards [Member] | ||
Reconciliation of changes in deferred tax liability (asset) [Line Items] | ||
Beginning balance | 942 | 1,493 |
Recognized in Income Statement | (311) | (515) |
Recognized in Equity | 3 | |
Translation and Other | (38) | (36) |
Ending balance | 596 | 942 |
Actuarial liabilities [Member] | ||
Reconciliation of changes in deferred tax liability (asset) [Line Items] | ||
Beginning balance | 9,366 | 9,448 |
Recognized in Income Statement | (1,053) | 244 |
Recognized in Other Comprehensive Income | (17) | (5) |
Recognized in Equity | (116) | |
Translation and Other | (418) | (205) |
Ending balance | 7,878 | 9,366 |
Pensions and post-employment benefits [Member] | ||
Reconciliation of changes in deferred tax liability (asset) [Line Items] | ||
Beginning balance | 352 | 329 |
Recognized in Income Statement | (87) | 100 |
Recognized in Other Comprehensive Income | (54) | (79) |
Translation and Other | (3) | 2 |
Ending balance | 208 | 352 |
Tax credits [Member] | ||
Reconciliation of changes in deferred tax liability (asset) [Line Items] | ||
Beginning balance | 875 | 750 |
Recognized in Income Statement | (369) | 147 |
Translation and Other | (52) | (22) |
Ending balance | 454 | 875 |
Accrued interest [Member] | ||
Reconciliation of changes in deferred tax liability (asset) [Line Items] | ||
Beginning balance | 17 | 121 |
Recognized in Income Statement | (12) | (100) |
Recognized in Equity | (3) | |
Translation and Other | (1) | (4) |
Ending balance | 1 | 17 |
Real estate [Member] | ||
Reconciliation of changes in deferred tax liability (asset) [Line Items] | ||
Beginning balance | (1,396) | (1,812) |
Recognized in Income Statement | 284 | 373 |
Recognized in Other Comprehensive Income | (9) | |
Translation and Other | 59 | 43 |
Ending balance | (1,062) | (1,396) |
Securities and other investments [Member] | ||
Reconciliation of changes in deferred tax liability (asset) [Line Items] | ||
Beginning balance | (6,064) | (6,218) |
Recognized in Income Statement | 2,172 | (243) |
Recognized in Other Comprehensive Income | (239) | 113 |
Recognized in Equity | 112 | |
Translation and Other | 324 | 172 |
Ending balance | (3,807) | (6,064) |
Sale of investments [Member] | ||
Reconciliation of changes in deferred tax liability (asset) [Line Items] | ||
Beginning balance | (163) | (200) |
Recognized in Income Statement | 58 | 37 |
Ending balance | (105) | (163) |
Goodwill and intangible assets [Member] | ||
Reconciliation of changes in deferred tax liability (asset) [Line Items] | ||
Beginning balance | (1,059) | (1,138) |
Recognized in Income Statement | 197 | 58 |
Translation and Other | 37 | 21 |
Ending balance | (825) | (1,059) |
Other [Member] | ||
Reconciliation of changes in deferred tax liability (asset) [Line Items] | ||
Beginning balance | 210 | 59 |
Recognized in Income Statement | (548) | 134 |
Recognized in Other Comprehensive Income | (1) | (4) |
Recognized in Equity | 2 | 6 |
Translation and Other | 287 | 15 |
Ending balance | CAD (50) | CAD 210 |
Goodwill and Intangible Asset85
Goodwill and Intangible Assets - Summary of Carrying Amounts of Goodwill and Intangible Assets (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Goodwill Beginning balance | CAD 5,884 | CAD 5,685 |
Total intangible assets Beginning balance | 4,223 | 3,699 |
Goodwill Additions/ disposals | 256 | |
Total intangible assets Additions/ Disposals | 306 | 840 |
Effect of changes in foreign exchange rates | (171) | (57) |
Goodwill Ending balance | 5,713 | 5,884 |
Total goodwill and intangible assets Beginning balance | 10,107 | 9,384 |
Total goodwill and intangible assets Additions/ Disposals | 306 | 1,096 |
Amortization expense | 229 | 234 |
Effect of changes in foreign exchange rates | (344) | (139) |
Effect of changes in foreign exchange rates - Total intangible assets | (173) | (82) |
Total goodwill and intangible assets Ending balance | 9,840 | 10,107 |
Total intangible assets Ending balance | 4,127 | 4,223 |
Distribution networks [Member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Total intangible assets Beginning balance | 1,093 | 726 |
Total intangible assets Additions/ Disposals | 450 | |
Amortization expense | 47 | 50 |
Effect of changes in foreign exchange rates - Total intangible assets | (57) | (33) |
Total intangible assets Ending balance | 989 | 1,093 |
Customer relationships [Member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Total intangible assets Beginning balance | 969 | 947 |
Total intangible assets Additions/ Disposals | 79 | |
Amortization expense | 56 | 53 |
Effect of changes in foreign exchange rates - Total intangible assets | (14) | (4) |
Total intangible assets Ending balance | 899 | 969 |
Software [Member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Total intangible assets Beginning balance | 494 | 396 |
Total intangible assets Additions/ Disposals | 306 | 229 |
Amortization expense | 121 | 126 |
Effect of changes in foreign exchange rates - Total intangible assets | (18) | (5) |
Total intangible assets Ending balance | 661 | 494 |
Other [Member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Total intangible assets Beginning balance | 77 | 76 |
Total intangible assets Additions/ Disposals | 6 | |
Amortization expense | 5 | 5 |
Effect of changes in foreign exchange rates - Total intangible assets | (2) | |
Total intangible assets Ending balance | 70 | 77 |
Finite life intangible assets [Member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Total intangible assets Beginning balance | 2,633 | 2,145 |
Total intangible assets Additions/ Disposals | 306 | 764 |
Amortization expense | 229 | 234 |
Effect of changes in foreign exchange rates - Total intangible assets | (91) | (42) |
Total intangible assets Ending balance | 2,619 | 2,633 |
Brand [Member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Total intangible assets Beginning balance | 805 | 831 |
Effect of changes in foreign exchange rates - Total intangible assets | (52) | (26) |
Total intangible assets Ending balance | 753 | 805 |
Fund management contracts and other [Member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Total intangible assets Beginning balance | 785 | 723 |
Total intangible assets Additions/ Disposals | 76 | |
Effect of changes in foreign exchange rates - Total intangible assets | (30) | (14) |
Total intangible assets Ending balance | 755 | 785 |
Indefinite life intangible assets [Member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Total intangible assets Beginning balance | 1,590 | 1,554 |
Total intangible assets Additions/ Disposals | 76 | |
Effect of changes in foreign exchange rates - Total intangible assets | (82) | (40) |
Total intangible assets Ending balance | CAD 1,508 | CAD 1,590 |
Goodwill and Intangible Asset86
Goodwill and Intangible Assets - Summary of Carrying Amounts of Goodwill and Intangible Assets (Parenthetical) (Detail) - CAD CAD in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | |||
Intangible assets ending balance | CAD 4,127 | CAD 4,223 | CAD 3,699 |
Additions of goodwill | 256 | ||
Additions of intangible assets | 306 | 840 | |
John Hancock Investments and Retirement Plan Services [Member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | |||
Additions of goodwill | 3 | ||
Fund management contracts and other [Member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | |||
Intangible assets ending balance | 755 | 785 | 723 |
Additions of intangible assets | 76 | ||
Fund management contracts and other [Member] | John Hancock Investments and Retirement Plan Services [Member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | |||
Intangible assets ending balance | 367 | 393 | |
Fund management contracts and other [Member] | Canadian Wealth (excluding Manulife Bank of Canada) [Member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | |||
Intangible assets ending balance | 273 | 273 | |
Distribution networks [Member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | |||
Intangible assets ending balance | 989 | 1,093 | 726 |
Additions of intangible assets | 450 | ||
Distribution networks [Member] | U.S [Member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | |||
Impairments of intangible assets | 150 | ||
Customer relationships [Member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | |||
Intangible assets ending balance | 899 | 969 | 947 |
Additions of intangible assets | 79 | ||
Software [Member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | |||
Intangible assets ending balance | 661 | 494 | 396 |
Additions of intangible assets | 306 | 229 | |
Other [Member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | |||
Intangible assets ending balance | 70 | 77 | CAD 76 |
Additions of intangible assets | 6 | ||
Standard Chartered's MPF [Member] | Distribution networks [Member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | |||
Additions of goodwill | 194 | ||
Additions of intangible assets | 193 | ||
Transamerica's broker - dealer business [Member] | Distribution networks [Member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | |||
Additions of goodwill | 59 | ||
Additions of intangible assets | 26 | ||
DBS Bank Ltd [Member] | Distribution networks [Member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | |||
Network intangible recognized | 536 | ||
Gross Carrying Value [Member] | Distribution networks [Member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | |||
Gross carrying amount of finite life intangible assets | 1,294 | 1,363 | |
Gross Carrying Value [Member] | Customer relationships [Member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | |||
Gross carrying amount of finite life intangible assets | 1,128 | 1,142 | |
Gross Carrying Value [Member] | Software [Member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | |||
Gross carrying amount of finite life intangible assets | 1,841 | 1,581 | |
Gross Carrying Value [Member] | Other [Member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | |||
Gross carrying amount of finite life intangible assets | CAD 126 | CAD 133 |
Goodwill and Intangible Asset87
Goodwill and Intangible Assets - Summary of Impairment Testing of Goodwill (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of reconciliation of changes in goodwill [Line items] | ||
Goodwill Beginning balance | CAD 5,884 | CAD 5,685 |
Goodwill Additions/ disposals | 256 | |
Effect of changes in foreign exchange rates | (171) | (57) |
Goodwill Ending balance | 5,713 | 5,884 |
Asia excluding Hong Kong and Japan [Member] | ||
Disclosure of reconciliation of changes in goodwill [Line items] | ||
Goodwill Beginning balance | 160 | 166 |
Effect of changes in foreign exchange rates | (6) | (6) |
Goodwill Ending balance | 154 | 160 |
Hong Kong [Member] | ||
Disclosure of reconciliation of changes in goodwill [Line items] | ||
Goodwill Beginning balance | 194 | |
Goodwill Additions/ disposals | 194 | |
Effect of changes in foreign exchange rates | (14) | |
Goodwill Ending balance | 180 | 194 |
Japan Insurance and Wealth [Member] | ||
Disclosure of reconciliation of changes in goodwill [Line items] | ||
Goodwill Beginning balance | 403 | 404 |
Effect of changes in foreign exchange rates | (12) | (1) |
Goodwill Ending balance | 391 | 403 |
Canadian Individual Life [Member] | ||
Disclosure of reconciliation of changes in goodwill [Line items] | ||
Goodwill Beginning balance | 155 | 155 |
Goodwill Ending balance | 155 | 155 |
Canadian Affinity Markets [Member] | ||
Disclosure of reconciliation of changes in goodwill [Line items] | ||
Goodwill Beginning balance | 83 | 83 |
Goodwill Ending balance | 83 | 83 |
Canadian Wealth (excluding Manulife Bank of Canada) [Member] | ||
Disclosure of reconciliation of changes in goodwill [Line items] | ||
Goodwill Beginning balance | 1,085 | 1,085 |
Goodwill Ending balance | 1,085 | 1,085 |
Canadian Group Benefits and Group Retirement Solutions [Member] | ||
Disclosure of reconciliation of changes in goodwill [Line items] | ||
Goodwill Beginning balance | 1,773 | 1,773 |
Goodwill Ending balance | 1,773 | 1,773 |
International Group Program [Member] | ||
Disclosure of reconciliation of changes in goodwill [Line items] | ||
Goodwill Beginning balance | 90 | 93 |
Effect of changes in foreign exchange rates | (6) | (3) |
Goodwill Ending balance | 84 | 90 |
John Hancock Insurance [Member] | ||
Disclosure of reconciliation of changes in goodwill [Line items] | ||
Goodwill Beginning balance | 428 | 378 |
Goodwill Additions/ disposals | 59 | |
Effect of changes in foreign exchange rates | (28) | (9) |
Goodwill Ending balance | 400 | 428 |
John Hancock Investments and Retirement Plan Services [Member] | ||
Disclosure of reconciliation of changes in goodwill [Line items] | ||
Goodwill Beginning balance | 1,220 | 1,254 |
Goodwill Additions/ disposals | 3 | |
Effect of changes in foreign exchange rates | (99) | (37) |
Goodwill Ending balance | 1,121 | 1,220 |
Manulife Asset Management and Other [Member] | ||
Disclosure of reconciliation of changes in goodwill [Line items] | ||
Goodwill Beginning balance | 293 | 294 |
Effect of changes in foreign exchange rates | (6) | (1) |
Goodwill Ending balance | CAD 287 | CAD 293 |
Goodwill and Intangible Asset88
Goodwill and Intangible Assets - Additional Information (Detail) - Multiple | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Canada [Member] | ||
Disclosure of detailed information about intangible assets [Line Items] | ||
Tax rate applied to cash flow projections | 26.80% | 26.80% |
U.S [Member] | ||
Disclosure of detailed information about intangible assets [Line Items] | ||
Tax rate applied to cash flow projections | 35.00% | 35.00% |
Japan [Member] | ||
Disclosure of detailed information about intangible assets [Line Items] | ||
Tax rate applied to cash flow projections | 28.10% | 28.20% |
Bottom of range [Member] | ||
Disclosure of detailed information about intangible assets [Line Items] | ||
Price-to-earnings multiples | 10.6 | 10.3 |
Growth rate used to extrapolate cash flow projections | (5.00%) | (5.00%) |
After-tax discount rate applied to cash flow projections | 9.00% | 9.00% |
Pre-tax discount rate applied to cash flow projections | 11.00% | 11.00% |
Top of range [Member] | ||
Disclosure of detailed information about intangible assets [Line Items] | ||
Price-to-earnings multiples | 14.8 | 13.8 |
Growth rate used to extrapolate cash flow projections | 15.00% | 15.00% |
After-tax discount rate applied to cash flow projections | 14.00% | 14.00% |
Pre-tax discount rate applied to cash flow projections | 15.00% | 15.00% |
Insurance Contract Liabilitie89
Insurance Contract Liabilities and Reinsurance Assets - Summary of Components of Gross and Net Insurance Contract Liabilities (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of insurance contract liabilities and reinsurance assets [abstract] | |||
Gross insurance contract liabilities | CAD 291,767 | CAD 284,778 | |
Gross benefits payable and provision for unreported claims | 3,376 | 3,309 | |
Gross policyholder amounts on deposit | 9,462 | 9,418 | |
Gross insurance contract liabilities | 304,605 | 297,505 | CAD 285,288 |
Reinsurance assets | (30,359) | (34,952) | |
Net insurance contract liabilities | CAD 274,246 | CAD 262,553 |
Insurance Contract Liabilitie90
Insurance Contract Liabilities and Reinsurance Assets - Summary of Composition of Insurance Contract Liabilities and Reinsurance Assets by Line of Business and Reporting Segment (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Net insurance contract liabilities | CAD 274,246 | CAD 262,553 | |
Total reinsurance ceded | (30,359) | (34,952) | |
Total, gross of reinsurance ceded | 304,605 | 297,505 | CAD 285,288 |
Other insurance contract liabilities [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Total, gross of reinsurance ceded | 11,155 | 10,815 | CAD 10,050 |
Gross insurance contract liabilities [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Net insurance contract liabilities | 274,246 | 262,553 | |
Total reinsurance ceded | 30,359 | 34,952 | |
Total, gross of reinsurance ceded | 304,605 | 297,505 | |
Gross insurance contract liabilities [Member] | Corporate and other [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Net insurance contract liabilities | (46) | (590) | |
Total reinsurance ceded | 172 | 259 | |
Total, gross of reinsurance ceded | 126 | (331) | |
Gross insurance contract liabilities [Member] | Asia [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Net insurance contract liabilities | 62,243 | 54,567 | |
Total reinsurance ceded | 911 | 880 | |
Total, gross of reinsurance ceded | 63,154 | 55,447 | |
Gross insurance contract liabilities [Member] | Canada [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Net insurance contract liabilities | 76,198 | 73,384 | |
Total reinsurance ceded | (676) | 593 | |
Total, gross of reinsurance ceded | 75,522 | 73,977 | |
Gross insurance contract liabilities [Member] | U.S [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Net insurance contract liabilities | 135,851 | 135,192 | |
Total reinsurance ceded | 29,952 | 33,220 | |
Total, gross of reinsurance ceded | 165,803 | 168,412 | |
Gross insurance contract liabilities [Member] | Individual insurance participating [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Net insurance contract liabilities | 52,438 | 49,913 | |
Total reinsurance ceded | 11,492 | 13,558 | |
Total, gross of reinsurance ceded | 63,930 | 63,471 | |
Gross insurance contract liabilities [Member] | Individual insurance participating [Member] | Asia [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Net insurance contract liabilities | 32,737 | 29,520 | |
Gross insurance contract liabilities [Member] | Individual insurance participating [Member] | Canada [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Net insurance contract liabilities | 11,132 | 10,974 | |
Gross insurance contract liabilities [Member] | Individual insurance participating [Member] | U.S [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Net insurance contract liabilities | 8,569 | 9,419 | |
Gross insurance contract liabilities [Member] | Individual insurance non-participating [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Net insurance contract liabilities | 113,880 | 106,240 | |
Total reinsurance ceded | 11,238 | 12,122 | |
Total, gross of reinsurance ceded | 125,118 | 118,362 | |
Gross insurance contract liabilities [Member] | Individual insurance non-participating [Member] | Corporate and other [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Net insurance contract liabilities | (515) | (833) | |
Gross insurance contract liabilities [Member] | Individual insurance non-participating [Member] | Asia [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Net insurance contract liabilities | 22,705 | 18,799 | |
Gross insurance contract liabilities [Member] | Individual insurance non-participating [Member] | Canada [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Net insurance contract liabilities | 34,091 | 31,790 | |
Gross insurance contract liabilities [Member] | Individual insurance non-participating [Member] | U.S [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Net insurance contract liabilities | 57,599 | 56,484 | |
Gross insurance contract liabilities [Member] | Annuities and pensions [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Net insurance contract liabilities | 49,716 | 51,810 | |
Total reinsurance ceded | 6,539 | 8,159 | |
Total, gross of reinsurance ceded | 56,255 | 59,969 | |
Gross insurance contract liabilities [Member] | Annuities and pensions [Member] | Corporate and other [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Net insurance contract liabilities | 48 | 62 | |
Gross insurance contract liabilities [Member] | Annuities and pensions [Member] | Asia [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Net insurance contract liabilities | 4,366 | 3,599 | |
Gross insurance contract liabilities [Member] | Annuities and pensions [Member] | Canada [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Net insurance contract liabilities | 19,141 | 19,620 | |
Gross insurance contract liabilities [Member] | Annuities and pensions [Member] | U.S [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Net insurance contract liabilities | 26,161 | 28,529 | |
Gross insurance contract liabilities [Member] | Other insurance contract liabilities [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Net insurance contract liabilities | 58,212 | 54,590 | |
Total reinsurance ceded | 1,090 | 1,113 | |
Total, gross of reinsurance ceded | 59,302 | 55,703 | |
Gross insurance contract liabilities [Member] | Other insurance contract liabilities [Member] | Corporate and other [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Net insurance contract liabilities | 421 | 181 | |
Gross insurance contract liabilities [Member] | Other insurance contract liabilities [Member] | Asia [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Net insurance contract liabilities | 2,435 | 2,649 | |
Gross insurance contract liabilities [Member] | Other insurance contract liabilities [Member] | Canada [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Net insurance contract liabilities | 11,834 | 11,000 | |
Gross insurance contract liabilities [Member] | Other insurance contract liabilities [Member] | U.S [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Net insurance contract liabilities | CAD 43,522 | CAD 40,760 |
Insurance Contract Liabilitie91
Insurance Contract Liabilities and Reinsurance Assets - Additional Information (Detail) - CAD CAD in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Fair value of assets backing net insurance contract liabilities excluding reinsurance assets | CAD 278,521 | CAD 278,521 | CAD 266,119 |
Fair value of assets backing capital and other liabilities | 456,278 | 456,278 | 459,256 |
Change in net insurance and investment contract liabilities | 277 | 655 | |
Change in net income attributed to shareholders | CAD 2,800 | ||
Change in net income attributed to shareholders (post-tax) | (35) | (453) | |
ALDA and Public Equity Investment Return Assumptions [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Change in net insurance and investment contract liabilities | 1,296 | ||
Change in net income attributed to shareholders (post-tax) | (892) | ||
Corporate Spread Assumptions [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Change in net insurance and investment contract liabilities | (515) | ||
Change in net income attributed to shareholders (post-tax) | 344 | ||
Refinements To Liability and Tax Cash Flows [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Change in net insurance and investment contract liabilities | (1,049) | ||
Change in net income attributed to shareholders (post-tax) | 696 | ||
U.S. variable annuities guaranteed minimum withdrawal benefit incidence and utilization [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Change in net income attributed to shareholders (post-tax) | 665 | ||
Canada [Member] | U.S. variable annuities guaranteed minimum withdrawal benefit incidence and utilization [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Change in net income attributed to shareholders (post-tax) | 128 | ||
Japan [Member] | U.S. variable annuities guaranteed minimum withdrawal benefit incidence and utilization [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Change in net income attributed to shareholders (post-tax) | 228 | ||
Mortality and morbidity updates [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Change in net insurance and investment contract liabilities | (254) | (53) | |
Change in net income attributed to shareholders (post-tax) | 299 | 76 | |
Mortality and morbidity updates [Member] | U.S [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Change in net income attributed to shareholders (post-tax) | 384 | ||
Mortality and morbidity updates [Member] | Canada [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Change in net income attributed to shareholders (post-tax) | 264 | ||
Mortality and morbidity updates [Member] | Canada [Member] | Retail Insurance Business [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Change in net income attributed to shareholders (post-tax) | 222 | ||
Mortality and morbidity updates [Member] | Asia [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Change in net income attributed to shareholders (post-tax) | 264 | ||
Mortality and morbidity updates [Member] | Japan [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Change in net income attributed to shareholders (post-tax) | 197 | 76 | |
Lapses and policyholder behavior [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Change in net insurance and investment contract liabilities | 1,019 | ||
Change in net income attributed to shareholders (post-tax) | (783) | ||
Lapses and policyholder behavior [Member] | Canada [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Change in net income attributed to shareholders (post-tax) | 315 | ||
Lapses and policyholder behavior [Member] | Canada [Member] | Segregated funds [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Change in net income attributed to shareholders (post-tax) | 242 | ||
Lapses and policyholder behavior [Member] | Japan [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Change in net income attributed to shareholders (post-tax) | 226 | ||
Other updates [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Change in net insurance and investment contract liabilities | (220) | 162 | |
Change in net income attributed to shareholders (post-tax) | 301 | (73) | |
Other updates [Member] | ALDA and Public Equity Investment Return Assumptions [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Change in net income attributed to shareholders (post-tax) | 892 | ||
Other updates [Member] | Corporate Spread Assumptions [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Change in net income attributed to shareholders (post-tax) | 344 | ||
Other updates [Member] | U.S [Member] | Refinements To Liability and Tax Cash Flows [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Change in net income attributed to shareholders (post-tax) | CAD 696 | ||
JH Long Term Care triennial review [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Change in net insurance and investment contract liabilities | 696 | ||
Change in net income attributed to shareholders (post-tax) | (452) | ||
Contract liabilities benefits | CAD 1,000 | ||
Percentage of premium increase due to changes in actuarial assumptions | 20.00% | ||
Economic reinvestment assumptions [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Change in net insurance and investment contract liabilities | CAD 443 | ||
Change in net income attributed to shareholders (post-tax) | (313) | ||
Bottom of range [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Percentage provision for adverse deviation assumptions not specifically provided | 5.00% | 5.00% | |
Top of range [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Percentage provision for adverse deviation assumptions not specifically provided | 20.00% | 20.00% | |
MLI and John Hancock Life Insurance Company [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Assets and insurance contract liabilities related to closed blocks participating policies | CAD 28,135 | CAD 28,135 | CAD 29,108 |
Insurance Contract Liabilitie92
Insurance Contract Liabilities and Reinsurance Assets - Summary of Carrying Value of Total Assets Backing Net Insurance Contract Liabilities, Other Liabilities and Capital (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | CAD 729,533 | CAD 720,681 |
Mortgages [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 44,742 | 44,193 |
Private placements [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 32,132 | 29,729 |
Real estate [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 13,810 | 14,132 |
Debt securities [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 174,000 | 168,622 |
Public equities [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 21,545 | 19,496 |
Other [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 443,304 | 444,509 |
Individual insurance participating [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 52,438 | 49,913 |
Individual insurance participating [Member] | Mortgages [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 2,017 | 2,110 |
Individual insurance participating [Member] | Private placements [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 3,645 | 3,277 |
Individual insurance participating [Member] | Real estate [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 2,963 | 2,811 |
Individual insurance participating [Member] | Debt securities [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 27,946 | 27,473 |
Individual insurance participating [Member] | Public equities [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 9,264 | 8,055 |
Individual insurance participating [Member] | Other [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 6,603 | 6,187 |
Individual insurance non-participating [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 113,880 | 106,240 |
Individual insurance non-participating [Member] | Mortgages [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 10,286 | 10,008 |
Individual insurance non-participating [Member] | Private placements [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 12,128 | 10,823 |
Individual insurance non-participating [Member] | Real estate [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 6,198 | 6,397 |
Individual insurance non-participating [Member] | Debt securities [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 63,128 | 56,765 |
Individual insurance non-participating [Member] | Public equities [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 5,855 | 5,401 |
Individual insurance non-participating [Member] | Other [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 16,285 | 16,846 |
Annuities and pensions [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 49,716 | 51,810 |
Annuities and pensions [Member] | Mortgages [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 7,009 | 8,135 |
Annuities and pensions [Member] | Private placements [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 8,059 | 7,096 |
Annuities and pensions [Member] | Real estate [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 1,136 | 1,480 |
Annuities and pensions [Member] | Debt securities [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 26,621 | 26,331 |
Annuities and pensions [Member] | Public equities [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 171 | 213 |
Annuities and pensions [Member] | Other [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 6,720 | 8,555 |
Other insurance contract liabilities [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 58,212 | 54,590 |
Other insurance contract liabilities [Member] | Mortgages [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 6,891 | 5,554 |
Other insurance contract liabilities [Member] | Private placements [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 7,739 | 7,070 |
Other insurance contract liabilities [Member] | Real estate [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 2,516 | 2,561 |
Other insurance contract liabilities [Member] | Debt securities [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 25,211 | 23,012 |
Other insurance contract liabilities [Member] | Public equities [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 332 | 351 |
Other insurance contract liabilities [Member] | Other [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 15,523 | 16,042 |
Other liabilities [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 404,628 | 407,893 |
Other liabilities [Member] | Mortgages [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 18,476 | 18,311 |
Other liabilities [Member] | Private placements [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 367 | 1,272 |
Other liabilities [Member] | Real estate [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 769 | 613 |
Other liabilities [Member] | Debt securities [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 6,635 | 9,965 |
Other liabilities [Member] | Public equities [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 1,029 | 732 |
Other liabilities [Member] | Other [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 377,352 | 377,000 |
Capital [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 50,659 | 50,235 |
Capital [Member] | Mortgages [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 63 | 75 |
Capital [Member] | Private placements [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 194 | 191 |
Capital [Member] | Real estate [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 228 | 270 |
Capital [Member] | Debt securities [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 24,459 | 25,076 |
Capital [Member] | Public equities [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 4,894 | 4,744 |
Capital [Member] | Other [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | CAD 20,821 | CAD 19,879 |
Insurance Contract Liabilitie93
Insurance Contract Liabilities and Reinsurance Assets - Summary of Potential Impact on Net Income Attributed to Shareholders Arising From Changes to Non-economic Assumptions (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
2% Adverse change in future mortality rates [Member] | Products where an increase in rates increases insurance contract liabilities [Member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | ||
Decrease in net income attributable to shareholders | CAD (400) | CAD (400) |
2% Adverse change in future mortality rates [Member] | Products where a decrease in rates increases insurance contract liabilities [Member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | ||
Decrease in net income attributable to shareholders | (400) | (500) |
5% Adverse change in future morbidity rates [Member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | ||
Decrease in net income attributable to shareholders | (3,900) | (3,700) |
10% Adverse change in future termination rates [Member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | ||
Decrease in net income attributable to shareholders | (2,000) | (1,900) |
5% increase in future expense levels [Member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | ||
Decrease in net income attributable to shareholders | CAD (500) | CAD (500) |
Insurance Contract Liabilitie94
Insurance Contract Liabilities and Reinsurance Assets - Summary of Change in Insurance Contract Liabilities (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of changes in insurance contract liabilities [Line Items] | ||
Beginning balance | CAD 297,505 | CAD 285,288 |
New policies | 3,986 | 3,911 |
Normal in-forcemovement | 13,025 | 13,268 |
Changes in methods and assumptions | 324 | 1,354 |
Impact of U.S. Tax Reform | 2,246 | |
Increase due to decision to change the portfolio asset mix supporting legacy business | 1,383 | |
Impact of changes in foreign exchange rates | (13,864) | (6,316) |
Ending balance | 304,605 | 297,505 |
Net actuarial liabilities [Member] | ||
Disclosure of changes in insurance contract liabilities [Line Items] | ||
Beginning balance | 251,738 | 239,812 |
New policies | 3,545 | 3,617 |
Normal in-forcemovement | 15,192 | 12,579 |
Changes in methods and assumptions | 305 | 709 |
Impact of U.S. Tax Reform | 2,246 | |
Increase due to decision to change the portfolio asset mix supporting legacy business | 1,340 | |
Impact of changes in foreign exchange rates | (11,275) | (4,979) |
Ending balance | 263,091 | 251,738 |
Other insurance contract liabilities [Member] | ||
Disclosure of changes in insurance contract liabilities [Line Items] | ||
Beginning balance | 10,815 | 10,050 |
Normal in-forcemovement | 930 | 1,094 |
Changes in methods and assumptions | (28) | (54) |
Impact of changes in foreign exchange rates | (562) | (275) |
Ending balance | 11,155 | 10,815 |
Net insurance contract liabilities [Member] | ||
Disclosure of changes in insurance contract liabilities [Line Items] | ||
Beginning balance | 262,553 | 249,862 |
New policies | 3,545 | 3,617 |
Normal in-forcemovement | 16,122 | 13,673 |
Changes in methods and assumptions | 277 | 655 |
Impact of U.S. Tax Reform | 2,246 | |
Increase due to decision to change the portfolio asset mix supporting legacy business | 1,340 | |
Impact of changes in foreign exchange rates | (11,837) | (5,254) |
Ending balance | 274,246 | 262,553 |
Reinsurance assets [Member] | ||
Disclosure of changes in insurance contract liabilities [Line Items] | ||
Beginning balance | 34,952 | 35,426 |
New policies | 441 | 294 |
Normal in-forcemovement | (3,097) | (405) |
Changes in methods and assumptions | 47 | 699 |
Increase due to decision to change the portfolio asset mix supporting legacy business | 43 | |
Impact of changes in foreign exchange rates | (2,027) | (1,062) |
Ending balance | CAD 30,359 | CAD 34,952 |
Insurance Contract Liabilitie95
Insurance Contract Liabilities and Reinsurance Assets - Summary of Change in Insurance Contract Liabilities (Parenthetical) (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of changes in liabilities under insurance contracts and reinsurance contracts issued [abstract] | ||
Change in gross insurance contract liabilities | CAD 20,964 | CAD 18,533 |
Change in insurance contract liabilities | 20,023 | 18,014 |
Increase in insurance contract liabilities | 20,212 | 17,529 |
Contract liabilities in gross claims and benefits | CAD 752 | CAD 1,004 |
Corporate tax rate | 21.00% | 35.00% |
Impact of U.S. Tax Reform | CAD (2,246) | |
Impact of U.S. Tax Reform, post-tax | 1,774 | |
Impact of U.S. Tax Reform, deferred tax impact | CAD 472 |
Insurance Contract Liabilitie96
Insurance Contract Liabilities and Reinsurance Assets - Summary of Actuarial Methods and Assumptions (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | ||
Change in gross insurance and investment contract liabilities | CAD 324 | CAD 1,354 |
Change in insurance and investment contract liabilities net of reinsurance | 277 | 655 |
Change in net income attributed to shareholders (post-tax) | (35) | (453) |
ALDA and Public Equity Investment Return Assumptions [Member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | ||
Change in gross insurance and investment contract liabilities | 1,403 | |
Change in insurance and investment contract liabilities net of reinsurance | 1,296 | |
Change in net income attributed to shareholders (post-tax) | (892) | |
Corporate Spread Assumptions [Member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | ||
Change in gross insurance and investment contract liabilities | (554) | |
Change in insurance and investment contract liabilities net of reinsurance | (515) | |
Change in net income attributed to shareholders (post-tax) | 344 | |
Refinements To Liability and Tax Cash Flows [Member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | ||
Change in gross insurance and investment contract liabilities | (1,273) | |
Change in insurance and investment contract liabilities net of reinsurance | (1,049) | |
Change in net income attributed to shareholders (post-tax) | 696 | |
Mortality and morbidity updates [Member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | ||
Change in gross insurance and investment contract liabilities | (219) | (12) |
Change in insurance and investment contract liabilities net of reinsurance | (254) | (53) |
Change in net income attributed to shareholders (post-tax) | 299 | 76 |
Lapses and policyholder behavior [Member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | ||
Change in gross insurance and investment contract liabilities | 1,057 | |
Change in insurance and investment contract liabilities net of reinsurance | 1,019 | |
Change in net income attributed to shareholders (post-tax) | (783) | |
Other updates [Member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | ||
Change in gross insurance and investment contract liabilities | (90) | 719 |
Change in insurance and investment contract liabilities net of reinsurance | (220) | 162 |
Change in net income attributed to shareholders (post-tax) | 301 | (73) |
Other updates [Member] | ALDA and Public Equity Investment Return Assumptions [Member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | ||
Change in net income attributed to shareholders (post-tax) | 892 | |
Other updates [Member] | Corporate Spread Assumptions [Member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | ||
Change in net income attributed to shareholders (post-tax) | CAD 344 | |
JH Long Term Care triennial review [Member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | ||
Change in gross insurance and investment contract liabilities | 696 | |
Change in insurance and investment contract liabilities net of reinsurance | 696 | |
Change in net income attributed to shareholders (post-tax) | (452) | |
U.S. variable annuities guaranteed minimum withdrawal benefit incidence and utilization [Member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | ||
Change in gross insurance and investment contract liabilities | (1,024) | |
Change in insurance and investment contract liabilities net of reinsurance | (1,024) | |
Change in net income attributed to shareholders (post-tax) | 665 | |
Other lapses and policyholder behaviour [Member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | ||
Change in gross insurance and investment contract liabilities | 516 | |
Change in insurance and investment contract liabilities net of reinsurance | 431 | |
Change in net income attributed to shareholders (post-tax) | (356) | |
Economic reinvestment assumptions [Member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | ||
Change in gross insurance and investment contract liabilities | 459 | |
Change in insurance and investment contract liabilities net of reinsurance | 443 | |
Change in net income attributed to shareholders (post-tax) | CAD (313) |
Insurance Contract Liabilitie97
Insurance Contract Liabilities and Reinsurance Assets - Summary of Actuarial Methods and Assumptions (Parenthetical) (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of sensitivity analysis for actuarial assumptions [abstract] | ||
Change in net insurance and investment contract liabilities | CAD 277 | CAD 655 |
Net income attributed to participating policyholders | CAD 88 |
Insurance Contract Liabilitie98
Insurance Contract Liabilities and Reinsurance Assets - Summary of Insurance Contract Liabilities, Payments Due by Period (Detail) CAD in Millions | Dec. 31, 2017CAD |
Disclosure of types of insurance contracts [Line Items] | |
Insurance contract liabilities | CAD 742,054 |
Less than 1 year [Member] | |
Disclosure of types of insurance contracts [Line Items] | |
Insurance contract liabilities | 9,788 |
1 to 3 years [Member] | |
Disclosure of types of insurance contracts [Line Items] | |
Insurance contract liabilities | 11,236 |
3 to 5 years [Member] | |
Disclosure of types of insurance contracts [Line Items] | |
Insurance contract liabilities | 17,153 |
Over 5 years [Member] | |
Disclosure of types of insurance contracts [Line Items] | |
Insurance contract liabilities | CAD 703,877 |
Insurance Contract Liabilitie99
Insurance Contract Liabilities and Reinsurance Assets - Summary of Gross Claims and Benefits (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of net, gross and reinsurer's share for amounts arising from insurance contracts [Line Items] | ||
Gross claims and benefits | CAD 24,994 | CAD 25,059 |
Death, disability and other claims [Member] | ||
Disclosure of net, gross and reinsurer's share for amounts arising from insurance contracts [Line Items] | ||
Gross claims and benefits | 14,871 | 13,819 |
Maturity and surrender benefits [Member] | ||
Disclosure of net, gross and reinsurer's share for amounts arising from insurance contracts [Line Items] | ||
Gross claims and benefits | 6,302 | 6,697 |
Annuity payments [Member] | ||
Disclosure of net, gross and reinsurer's share for amounts arising from insurance contracts [Line Items] | ||
Gross claims and benefits | 4,470 | 4,310 |
Policyholder dividends and experience rating refunds [Member] | ||
Disclosure of net, gross and reinsurer's share for amounts arising from insurance contracts [Line Items] | ||
Gross claims and benefits | 1,085 | 1,111 |
Net transfers from segregated funds [Member] | ||
Disclosure of net, gross and reinsurer's share for amounts arising from insurance contracts [Line Items] | ||
Gross claims and benefits | CAD (1,734) | CAD (878) |
Investment Contract Liabilit100
Investment Contract Liabilities - Summary of Movement in Investment Contract Liabilities Measured at Fair Value (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Investment Contract Liabilities [Line Items] | ||
Beginning balance | CAD 3,275 | |
Ending balance | 3,126 | CAD 3,275 |
Fair value [Member] | ||
Disclosure of Investment Contract Liabilities [Line Items] | ||
Beginning balance | 631 | 785 |
New policies | 50 | 53 |
Changes in market conditions | 76 | (103) |
Redemptions, surrenders and maturities | (72) | (83) |
Impact of changes in foreign exchange rates | (46) | (21) |
Ending balance | CAD 639 | CAD 631 |
Investment Contract Liabilit101
Investment Contract Liabilities - Summary of Investment Contract Liabilities Measured at Amortized Cost and Fair Value Associated with Contracts (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of Investment Contract Liabilities [Line Items] | |||
Investment contract liabilities | CAD 3,126 | CAD 3,275 | |
Amortized cost [Member] | |||
Disclosure of Investment Contract Liabilities [Line Items] | |||
Investment contract liabilities | 2,487 | 2,644 | CAD 2,712 |
Amortized cost [Member] | U.S. fixed annuity products [Member] | |||
Disclosure of Investment Contract Liabilities [Line Items] | |||
Investment contract liabilities | 1,282 | 1,412 | |
Amortized cost [Member] | Canadian fixed annuity products [Member] | |||
Disclosure of Investment Contract Liabilities [Line Items] | |||
Investment contract liabilities | 1,205 | 1,232 | |
Fair value [Member] | |||
Disclosure of Investment Contract Liabilities [Line Items] | |||
Investment contract liabilities | 2,787 | 2,905 | |
Fair value [Member] | U.S. fixed annuity products [Member] | |||
Disclosure of Investment Contract Liabilities [Line Items] | |||
Investment contract liabilities | 1,433 | 1,516 | |
Fair value [Member] | Canadian fixed annuity products [Member] | |||
Disclosure of Investment Contract Liabilities [Line Items] | |||
Investment contract liabilities | CAD 1,354 | CAD 1,389 |
Investment Contract Liabilit102
Investment Contract Liabilities - Summary of Changes in Investment Contract Liabilities Measured at Amortized Cost (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Investment Contract Liabilities [Line Items] | ||
Beginning balance | CAD 3,275 | |
Ending balance | 3,126 | CAD 3,275 |
Amortized cost [Member] | ||
Disclosure of Investment Contract Liabilities [Line Items] | ||
Beginning balance | 2,644 | 2,712 |
Policy deposits | 68 | 112 |
Interest | 100 | 100 |
Withdrawals | (232) | (235) |
Fees | (1) | (1) |
Other | (1) | 1 |
Impact of changes in foreign exchange rates | (91) | (45) |
Ending balance | CAD 2,487 | CAD 2,644 |
Investment Contract Liabilit103
Investment Contract Liabilities - Summary of Contractual Obligations and Commitments Relating to Investment Contracts (Detail) CAD in Millions | Dec. 31, 2017CAD |
Disclosure of Investment Contract Liabilities [Line Items] | |
Contractual obligations and commitments | CAD 5,244 |
Less than 1 year [Member] | |
Disclosure of Investment Contract Liabilities [Line Items] | |
Contractual obligations and commitments | 283 |
1 to 3 years [Member] | |
Disclosure of Investment Contract Liabilities [Line Items] | |
Contractual obligations and commitments | 536 |
3 to 5 years [Member] | |
Disclosure of Investment Contract Liabilities [Line Items] | |
Contractual obligations and commitments | 481 |
Over 5 years [Member] | |
Disclosure of Investment Contract Liabilities [Line Items] | |
Contractual obligations and commitments | CAD 3,944 |
Risk Management - Summary of Gr
Risk Management - Summary of Gross Carrying Amount of Financial Instruments Subject to Credit Exposure (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of external credit grades [Line Items] | ||
Credit exposure | CAD 311,782 | CAD 316,058 |
Mortgages [Member] | ||
Disclosure of external credit grades [Line Items] | ||
Credit exposure | 44,742 | 44,193 |
Private placements [Member] | ||
Disclosure of external credit grades [Line Items] | ||
Credit exposure | 32,132 | 29,729 |
Policy loans [Member] | ||
Disclosure of external credit grades [Line Items] | ||
Credit exposure | 5,808 | 6,041 |
Loans to Bank clients [Member] | ||
Disclosure of external credit grades [Line Items] | ||
Credit exposure | 1,737 | 1,745 |
Derivative Assets [Member] | ||
Disclosure of external credit grades [Line Items] | ||
Credit exposure | 15,569 | 23,672 |
Accrued investment income [Member] | ||
Disclosure of external credit grades [Line Items] | ||
Credit exposure | 2,182 | 2,260 |
Reinsurance assets [Member] | ||
Disclosure of external credit grades [Line Items] | ||
Credit exposure | 30,359 | 34,952 |
Other financial assets [Member] | ||
Disclosure of external credit grades [Line Items] | ||
Credit exposure | 5,253 | 4,844 |
FVTPL [Member] | ||
Disclosure of external credit grades [Line Items] | ||
Credit exposure | 147,024 | 140,890 |
AFS [Member] | ||
Disclosure of external credit grades [Line Items] | ||
Credit exposure | CAD 26,976 | CAD 27,732 |
Risk Management - Summary of Cr
Risk Management - Summary of Credit Quality and Carrying Value of Commercial Mortgages and Private Placements (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Commercial mortgages [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | CAD 25,574 | CAD 25,728 |
Commercial mortgages [Member] | Retail [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 8,141 | 8,199 |
Commercial mortgages [Member] | Office [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 7,709 | 7,324 |
Commercial mortgages [Member] | Multi-family residential [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 4,449 | 4,806 |
Commercial mortgages [Member] | Industrial [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 2,583 | 2,834 |
Commercial mortgages [Member] | Other [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 2,692 | 2,565 |
Agricultural mortgages [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 589 | 822 |
Private placements [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 32,132 | 29,729 |
Commercial mortgages and private placements [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 58,295 | 56,279 |
AAA [Member] | Commercial mortgages [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 1,085 | 1,271 |
AAA [Member] | Commercial mortgages [Member] | Retail [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 110 | 97 |
AAA [Member] | Commercial mortgages [Member] | Office [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 57 | 68 |
AAA [Member] | Commercial mortgages [Member] | Multi-family residential [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 523 | 656 |
AAA [Member] | Commercial mortgages [Member] | Industrial [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 33 | 22 |
AAA [Member] | Commercial mortgages [Member] | Other [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 362 | 428 |
AAA [Member] | Private placements [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 1,038 | 1,086 |
AAA [Member] | Commercial mortgages and private placements [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 2,123 | 2,357 |
AA [Member] | Commercial mortgages [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 4,901 | 4,858 |
AA [Member] | Commercial mortgages [Member] | Retail [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 1,517 | 1,620 |
AA [Member] | Commercial mortgages [Member] | Office [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 1,272 | 1,255 |
AA [Member] | Commercial mortgages [Member] | Multi-family residential [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 1,395 | 1,362 |
AA [Member] | Commercial mortgages [Member] | Industrial [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 386 | 360 |
AA [Member] | Commercial mortgages [Member] | Other [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 331 | 261 |
AA [Member] | Agricultural mortgages [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 159 | 151 |
AA [Member] | Private placements [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 4,246 | 4,466 |
AA [Member] | Commercial mortgages and private placements [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 9,306 | 9,475 |
A [Member] | Commercial mortgages [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 13,357 | 13,082 |
A [Member] | Commercial mortgages [Member] | Retail [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 4,363 | 4,391 |
A [Member] | Commercial mortgages [Member] | Office [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 4,635 | 3,972 |
A [Member] | Commercial mortgages [Member] | Multi-family residential [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 1,805 | 1,944 |
A [Member] | Commercial mortgages [Member] | Industrial [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 1,542 | 1,452 |
A [Member] | Commercial mortgages [Member] | Other [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 1,012 | 1,323 |
A [Member] | Agricultural mortgages [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 61 | |
A [Member] | Private placements [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 11,978 | 10,671 |
A [Member] | Commercial mortgages and private placements [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 25,335 | 23,814 |
BBB [Member] | Commercial mortgages [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 5,873 | 6,190 |
BBB [Member] | Commercial mortgages [Member] | Retail [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 2,050 | 2,084 |
BBB [Member] | Commercial mortgages [Member] | Office [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 1,647 | 1,938 |
BBB [Member] | Commercial mortgages [Member] | Multi-family residential [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 726 | 844 |
BBB [Member] | Commercial mortgages [Member] | Industrial [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 477 | 831 |
BBB [Member] | Commercial mortgages [Member] | Other [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 973 | 493 |
BBB [Member] | Agricultural mortgages [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 405 | 469 |
BBB [Member] | Private placements [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 13,160 | 11,606 |
BBB [Member] | Commercial mortgages and private placements [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 19,438 | 18,265 |
BB [Member] | Commercial mortgages [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 273 | 284 |
BB [Member] | Commercial mortgages [Member] | Retail [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 44 | |
BB [Member] | Commercial mortgages [Member] | Office [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 70 | 55 |
BB [Member] | Commercial mortgages [Member] | Industrial [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 145 | 169 |
BB [Member] | Commercial mortgages [Member] | Other [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 14 | 60 |
BB [Member] | Agricultural mortgages [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 25 | 141 |
BB [Member] | Private placements [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 717 | 936 |
BB [Member] | Commercial mortgages and private placements [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 1,015 | 1,361 |
B and lower [Member] | Commercial mortgages [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 85 | 43 |
B and lower [Member] | Commercial mortgages [Member] | Retail [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 57 | 7 |
B and lower [Member] | Commercial mortgages [Member] | Office [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 28 | 36 |
B and lower [Member] | Private placements [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 993 | 964 |
B and lower [Member] | Commercial mortgages and private placements [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | CAD 1,078 | CAD 1,007 |
Risk Management - Summary of Ca
Risk Management - Summary of Carrying Value of Residential Mortgages and Loans to Bank Clients (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of Credit Quality [Line Items] | ||
Carrying value of residential mortgages and loans to bank clients | CAD 20,316 | CAD 19,388 |
Residential mortgages [Member] | Performing [Member] | ||
Disclosure of Credit Quality [Line Items] | ||
Carrying value of residential mortgages and loans to bank clients | 18,566 | 17,624 |
Residential mortgages [Member] | Non-performing [Member] | ||
Disclosure of Credit Quality [Line Items] | ||
Carrying value of residential mortgages and loans to bank clients | 13 | 19 |
Loans to Bank clients [Member] | Performing [Member] | ||
Disclosure of Credit Quality [Line Items] | ||
Carrying value of residential mortgages and loans to bank clients | 1,734 | 1,743 |
Loans to Bank clients [Member] | Non-performing [Member] | ||
Disclosure of Credit Quality [Line Items] | ||
Carrying value of residential mortgages and loans to bank clients | 3 | 2 |
Insured [Member] | ||
Disclosure of Credit Quality [Line Items] | ||
Carrying value of residential mortgages and loans to bank clients | 7,260 | 7,580 |
Insured [Member] | Residential mortgages [Member] | Performing [Member] | ||
Disclosure of Credit Quality [Line Items] | ||
Carrying value of residential mortgages and loans to bank clients | 7,256 | 7,574 |
Insured [Member] | Residential mortgages [Member] | Non-performing [Member] | ||
Disclosure of Credit Quality [Line Items] | ||
Carrying value of residential mortgages and loans to bank clients | 4 | 6 |
Uninsured [Member] | ||
Disclosure of Credit Quality [Line Items] | ||
Carrying value of residential mortgages and loans to bank clients | 13,056 | 11,808 |
Uninsured [Member] | Residential mortgages [Member] | Performing [Member] | ||
Disclosure of Credit Quality [Line Items] | ||
Carrying value of residential mortgages and loans to bank clients | 11,310 | 10,050 |
Uninsured [Member] | Residential mortgages [Member] | Non-performing [Member] | ||
Disclosure of Credit Quality [Line Items] | ||
Carrying value of residential mortgages and loans to bank clients | 9 | 13 |
Uninsured [Member] | Loans to Bank clients [Member] | Performing [Member] | ||
Disclosure of Credit Quality [Line Items] | ||
Carrying value of residential mortgages and loans to bank clients | 1,734 | 1,743 |
Uninsured [Member] | Loans to Bank clients [Member] | Non-performing [Member] | ||
Disclosure of Credit Quality [Line Items] | ||
Carrying value of residential mortgages and loans to bank clients | CAD 3 | CAD 2 |
Risk Management - Additional In
Risk Management - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2017CAD | Dec. 31, 2017USD ($) | Dec. 31, 2016CAD | |
Disclosure of Risk Management [Line Items] | |||
Percentage of total mortgage portfolio | 17.00% | 17.00% | 19.00% |
Loaned securities included in invested assets | CAD 17,997,000,000 | CAD 26,809,000,000 | |
Reverse repurchase transactions recorded as short-term receivables | 230,000,000 | 250,000,000 | |
Repurchase transactions recorded as payables | CAD 228,000,000 | 255,000,000 | |
Term of credit default swaps | 5 years | 5 years | |
Credit protection purchased | CAD 0 | 0 | |
Mitigated exposure to credit risk | 10,138,000,000 | 12,781,000,000 | |
Largest single counterparty exposure without master netting agreements or the benefit of collateral held | 6,760,000,000 | 12,031,000,000 | |
Largest single counterparty exposure with master netting agreements or the benefit of collateral held | 95,000,000 | 190,000,000 | |
Maximum credit exposure related to derivatives | 16,204,000,000 | 24,603,000,000 | |
Reinsurance assets | CAD 30,359,000,000 | CAD 34,952,000,000 | |
Percentage ceded to reinsurers | 92.00% | 92.00% | |
Exposure to credit risk | CAD 13,855,000,000 | CAD 16,600,000,000 | |
Net exposure after offsetting agreements and benefit of fair value of collateral held | 16,504,000,000 | 18,352,000,000 | |
Bottom of range [Member] | |||
Disclosure of Risk Management [Line Items] | |||
Global retention limit | $ | $ 30 | ||
Top of range [Member] | |||
Disclosure of Risk Management [Line Items] | |||
Global retention limit | $ | $ 35 | ||
Derivatives [Member] | |||
Disclosure of Risk Management [Line Items] | |||
Largest single counterparty exposure without master netting agreements or the benefit of collateral held | 2,629,000,000 | 3,891,000,000 | |
Largest single counterparty exposure with master netting agreements or the benefit of collateral held | CAD 0 | CAD 0 | |
AA Credit Grades or Higher [Member] | |||
Disclosure of Risk Management [Line Items] | |||
Derivative exposure with counterparties, percentage | 20.00% | 20.00% | 22.00% |
Securities lending [Member] | |||
Disclosure of Risk Management [Line Items] | |||
Loaned securities included in invested assets | CAD 1,563,000,000 | CAD 1,956,000,000 |
Risk Management - Summary of108
Risk Management - Summary of Carrying Value of Past Due but not Impaired and Impaired Financial Assets (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Financial assets past due but not impaired [Member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Carrying value or impaired value, financial assets | CAD 633 | CAD 575 |
Financial assets past due but not impaired [Member] | Private placements [Member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Carrying value or impaired value, financial assets | 363 | 279 |
Financial assets past due but not impaired [Member] | Mortgages and loans to Bank clients [Member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Carrying value or impaired value, financial assets | 92 | 70 |
Financial assets past due but not impaired [Member] | Other financial assets [Member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Carrying value or impaired value, financial assets | 72 | 111 |
Impaired [Member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Carrying value or impaired value, financial assets | 173 | 231 |
Impaired [Member] | Private placements [Member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Carrying value or impaired value, financial assets | 40 | 152 |
Impaired [Member] | Mortgages and loans to Bank clients [Member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Carrying value or impaired value, financial assets | 86 | 33 |
Impaired [Member] | Other financial assets [Member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Carrying value or impaired value, financial assets | 1 | 8 |
FVTPL [Member] | Financial assets past due but not impaired [Member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Carrying value or impaired value, financial assets | 90 | |
FVTPL [Member] | Impaired [Member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Carrying value or impaired value, financial assets | 45 | 38 |
AFS [Member] | Financial assets past due but not impaired [Member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Carrying value or impaired value, financial assets | 106 | 25 |
AFS [Member] | Impaired [Member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Carrying value or impaired value, financial assets | 1 | |
Less than 90 days [Member] | Financial assets past due but not impaired [Member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Carrying value or impaired value, financial assets | 589 | 428 |
Less than 90 days [Member] | Financial assets past due but not impaired [Member] | Private placements [Member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Carrying value or impaired value, financial assets | 363 | 215 |
Less than 90 days [Member] | Financial assets past due but not impaired [Member] | Mortgages and loans to Bank clients [Member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Carrying value or impaired value, financial assets | 76 | 50 |
Less than 90 days [Member] | Financial assets past due but not impaired [Member] | Other financial assets [Member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Carrying value or impaired value, financial assets | 46 | 57 |
Less than 90 days [Member] | FVTPL [Member] | Financial assets past due but not impaired [Member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Carrying value or impaired value, financial assets | 90 | |
Less than 90 days [Member] | AFS [Member] | Financial assets past due but not impaired [Member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Carrying value or impaired value, financial assets | 104 | 16 |
90 days and greater [Member] | Financial assets past due but not impaired [Member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Carrying value or impaired value, financial assets | 44 | 147 |
90 days and greater [Member] | Financial assets past due but not impaired [Member] | Private placements [Member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Carrying value or impaired value, financial assets | 64 | |
90 days and greater [Member] | Financial assets past due but not impaired [Member] | Mortgages and loans to Bank clients [Member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Carrying value or impaired value, financial assets | 16 | 20 |
90 days and greater [Member] | Financial assets past due but not impaired [Member] | Other financial assets [Member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Carrying value or impaired value, financial assets | 26 | 54 |
90 days and greater [Member] | AFS [Member] | Financial assets past due but not impaired [Member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Carrying value or impaired value, financial assets | CAD 2 | CAD 9 |
Risk Management - Summary of Co
Risk Management - Summary of Company's Loans Considered Impaired (Detail) - Financial assets impaired loan [Member] - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Net carrying value | CAD 126 | CAD 185 |
Private placements [Member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Net carrying value | 40 | 152 |
Mortgages and loans to Bank clients [Member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Net carrying value | 86 | 33 |
Gross Carrying Value [Member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Net carrying value | 211 | 303 |
Gross Carrying Value [Member] | Private placements [Member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Net carrying value | 79 | 244 |
Gross Carrying Value [Member] | Mortgages and loans to Bank clients [Member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Net carrying value | 132 | 59 |
Allowances for losses [Member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Net carrying value | 85 | 118 |
Allowances for losses [Member] | Private placements [Member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Net carrying value | 39 | 92 |
Allowances for losses [Member] | Mortgages and loans to Bank clients [Member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Net carrying value | CAD 46 | CAD 26 |
Risk Management - Summary of Re
Risk Management - Summary of Reconciliation of Allowance for Loan Losses (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of credit risk exposure [Line Items] | ||
Beginning balance | CAD 118 | CAD 101 |
Provisions | 35 | 126 |
Recoveries | (13) | (69) |
Write-offs | (55) | (40) |
Ending balance | 85 | 118 |
Private placements [Member] | ||
Disclosure of credit risk exposure [Line Items] | ||
Beginning balance | 92 | 72 |
Provisions | 2 | 112 |
Recoveries | (12) | (62) |
Write-offs | (43) | (30) |
Ending balance | 39 | 92 |
Mortgages and loans to Bank clients [Member] | ||
Disclosure of credit risk exposure [Line Items] | ||
Beginning balance | 26 | 29 |
Provisions | 33 | 14 |
Recoveries | (1) | (7) |
Write-offs | (12) | (10) |
Ending balance | CAD 46 | CAD 26 |
Risk Management - Summary of111
Risk Management - Summary of Credit Default Swap Protection Sold (Detail) - CAD | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of information about credit exposures designated as measured at fair value through profit or loss [Line Items] | ||
Notional amount | CAD 336,773,000,000 | CAD 370,198,000,000 |
Credit default swaps [Member] | ||
Disclosure of information about credit exposures designated as measured at fair value through profit or loss [Line Items] | ||
Notional amount | 606,000,000 | 662,000,000 |
Fair value | CAD 14,000,000 | CAD 18,000,000 |
Weighted average maturity (in years) | 3 years | 4 years |
Credit default swaps [Member] | AAA [Member] | ||
Disclosure of information about credit exposures designated as measured at fair value through profit or loss [Line Items] | ||
Notional amount | CAD 13,000,000 | CAD 13,000,000 |
Weighted average maturity (in years) | 1 year | 2 years |
Credit default swaps [Member] | AA [Member] | ||
Disclosure of information about credit exposures designated as measured at fair value through profit or loss [Line Items] | ||
Notional amount | CAD 35,000,000 | CAD 37,000,000 |
Fair value | CAD 1,000,000 | CAD 1,000,000 |
Weighted average maturity (in years) | 2 years | 3 years |
Credit default swaps [Member] | A [Member] | ||
Disclosure of information about credit exposures designated as measured at fair value through profit or loss [Line Items] | ||
Notional amount | CAD 408,000,000 | CAD 457,000,000 |
Fair value | CAD 10,000,000 | CAD 13,000,000 |
Weighted average maturity (in years) | 3 years | 4 years |
Credit default swaps [Member] | BBB [Member] | ||
Disclosure of information about credit exposures designated as measured at fair value through profit or loss [Line Items] | ||
Notional amount | CAD 150,000,000 | CAD 155,000,000 |
Fair value | CAD 3,000,000 | CAD 4,000,000 |
Weighted average maturity (in years) | 2 years | 3 years |
Credit default swaps [Member] | Single name CDSs [Member] | ||
Disclosure of information about credit exposures designated as measured at fair value through profit or loss [Line Items] | ||
Notional amount | CAD 606,000,000 | CAD 662,000,000 |
Fair value | CAD 14,000,000 | CAD 18,000,000 |
Weighted average maturity (in years) | 3 years | 4 years |
Risk Management - Summary of Ef
Risk Management - Summary of Effect of Conditional Master Netting and Similar Arrangements (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of offsetting of financial liabilities [Line Items] | ||
Gross amounts of financial instruments presented in the Consolidated Statements of Financial Position | CAD 17,997 | CAD 26,809 |
Amounts subject to an enforceable master netting arrangement or similar agreements | (6,760) | (12,031) |
Financial and cash collateral pledged (received) | (11,142) | (14,588) |
Net amount including financing trusts | 95 | 190 |
Net amounts excluding financing trusts | 95 | 189 |
Gross amounts of financial instruments presented in the Consolidated Statements of Financial Position | (8,877) | (15,350) |
Amounts subject to an enforceable master netting arrangement or similar agreements | 6,760 | 12,031 |
Financial and cash collateral pledged (received) | 1,900 | 3,055 |
Net amount including financing trusts | (217) | (264) |
Net amounts excluding financing trusts | (30) | (42) |
Derivative Assets [Member] | ||
Disclosure of offsetting of financial liabilities [Line Items] | ||
Gross amounts of financial instruments presented in the Consolidated Statements of Financial Position | 16,204 | 24,603 |
Amounts subject to an enforceable master netting arrangement or similar agreements | (6,714) | (12,031) |
Financial and cash collateral pledged (received) | (9,395) | (12,382) |
Net amount including financing trusts | 95 | 190 |
Net amounts excluding financing trusts | 95 | 189 |
Securities lending [Member] | ||
Disclosure of offsetting of financial liabilities [Line Items] | ||
Gross amounts of financial instruments presented in the Consolidated Statements of Financial Position | 1,563 | 1,956 |
Financial and cash collateral pledged (received) | (1,563) | (1,956) |
Reverse repurchase agreements [Member] | ||
Disclosure of offsetting of financial liabilities [Line Items] | ||
Gross amounts of financial instruments presented in the Consolidated Statements of Financial Position | 230 | 250 |
Amounts subject to an enforceable master netting arrangement or similar agreements | (46) | |
Financial and cash collateral pledged (received) | (184) | (250) |
Derivative Liabilities [Member] | ||
Disclosure of offsetting of financial liabilities [Line Items] | ||
Gross amounts of financial instruments presented in the Consolidated Statements of Financial Position | (8,649) | (15,095) |
Amounts subject to an enforceable master netting arrangement or similar agreements | 6,714 | 12,031 |
Financial and cash collateral pledged (received) | 1,718 | 2,800 |
Net amount including financing trusts | (217) | (264) |
Net amounts excluding financing trusts | (30) | (42) |
Repurchase agreements [Member] | ||
Disclosure of offsetting of financial liabilities [Line Items] | ||
Gross amounts of financial instruments presented in the Consolidated Statements of Financial Position | (228) | (255) |
Amounts subject to an enforceable master netting arrangement or similar agreements | 46 | |
Financial and cash collateral pledged (received) | CAD 182 | CAD 255 |
Risk Management - Summary of113
Risk Management - Summary of Effect of Conditional Master Netting and Similar Arrangements (Parenthetical) (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of offsetting of financial assets [abstract] | ||
Accrued interest receivable | CAD 638 | CAD 935 |
Accrued interest payable | 827 | 944 |
Over-collateralized on OTC derivative assets | 743 | 398 |
Over-collateralized on OTC derivative liabilities | 382 | 494 |
Over-collateralized on securities lending and reverse purchase agreements | 79 | 107 |
Over-collateralized on repurchase agreements | CAD 0 | CAD 1 |
Risk Management - Summary of th
Risk Management - Summary of the Effect of Unconditional Netting (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of offsetting of financial liabilities [Line Items] | ||
Gross amounts of financial instruments | CAD 8,877 | CAD 15,350 |
Credit Linked Note [Member] | ||
Disclosure of offsetting of financial liabilities [Line Items] | ||
Gross amounts of financial instruments | 461 | |
Amounts subject to an enforceable netting arrangement | (461) | |
Net amounts of financial instruments presented in the Consolidated Statements of Financial Position | 0 | |
Variable Funding Surplus Note [Member] | ||
Disclosure of offsetting of financial liabilities [Line Items] | ||
Gross amounts of financial instruments | (461) | |
Amounts subject to an enforceable netting arrangement | 461 | |
Net amounts of financial instruments presented in the Consolidated Statements of Financial Position | CAD 0 |
Risk Management - Schedule of R
Risk Management - Schedule of Risk Concentrations (Detail) - Asset classes and individual investment risks [Member] - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Debt securities and private placements rated as investment grade BBB or higher | 98.00% | 97.00% |
Government debt securities as a per cent of total debt securities | 39.00% | 43.00% |
Government private placements as a per cent of total private placements | 10.00% | 10.00% |
Highest exposure to a single non-government debt security and private placement issuer | CAD 1,044 | CAD 1,010 |
Largest single issuer as a per cent of the total equity portfolio | 2.00% | 3.00% |
Income producing commercial office properties (2017 - 64% of real estate, 2016 - 65%) | CAD 8,836 | CAD 9,200 |
Largest concentration of mortgages and real estate(2) - Ontario Canada (2017 - 25%, 2016 - 24%) | CAD 14,779 | CAD 13,882 |
Risk Management - Schedule o116
Risk Management - Schedule of Risk Concentrations (Parenthetical) (Detail) | Dec. 31, 2017 | Dec. 31, 2016 |
Asset classes and individual investment risks [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Income producing commercial office properties, percentage | 64.00% | 65.00% |
Ontario Canada [Member] | Asset classes and individual investment risks [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Largest concentration of mortgages and real estate, percentage | 25.00% | 24.00% |
A [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Investment grade debt securities and private placements rate | 42.00% | 41.00% |
AA [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Investment grade debt securities and private placements rate | 16.00% | 14.00% |
AAA [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Investment grade debt securities and private placements rate | 17.00% | 21.00% |
Risk Management - Schedule of D
Risk Management - Schedule of Distribution of Debt Securities and Private Placements Portfolio by Sector and Industry (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of Distribution of Debt Securities and Private Placement Portfolio by Sector and Industry [Line Items] | ||
Carrying value | CAD 206,132 | CAD 198,351 |
% of total | 100.00% | 100.00% |
Government and agency [Member] | ||
Disclosure of Distribution of Debt Securities and Private Placement Portfolio by Sector and Industry [Line Items] | ||
Carrying value | CAD 71,888 | CAD 76,020 |
% of total | 35.00% | 38.00% |
Utilities [Member] | ||
Disclosure of Distribution of Debt Securities and Private Placement Portfolio by Sector and Industry [Line Items] | ||
Carrying value | CAD 40,568 | CAD 37,561 |
% of total | 20.00% | 19.00% |
Financial [Member] | ||
Disclosure of Distribution of Debt Securities and Private Placement Portfolio by Sector and Industry [Line Items] | ||
Carrying value | CAD 27,923 | CAD 25,027 |
% of total | 13.00% | 13.00% |
Energy [Member] | ||
Disclosure of Distribution of Debt Securities and Private Placement Portfolio by Sector and Industry [Line Items] | ||
Carrying value | CAD 16,428 | CAD 15,775 |
% of total | 8.00% | 8.00% |
Industrial [Member] | ||
Disclosure of Distribution of Debt Securities and Private Placement Portfolio by Sector and Industry [Line Items] | ||
Carrying value | CAD 14,691 | CAD 13,088 |
% of total | 7.00% | 6.00% |
Consumer (non-cyclical) [Member] | ||
Disclosure of Distribution of Debt Securities and Private Placement Portfolio by Sector and Industry [Line Items] | ||
Carrying value | CAD 14,009 | CAD 12,440 |
% of total | 7.00% | 6.00% |
Consumer (cyclical) [Member] | ||
Disclosure of Distribution of Debt Securities and Private Placement Portfolio by Sector and Industry [Line Items] | ||
Carrying value | CAD 5,916 | CAD 4,256 |
% of total | 3.00% | 2.00% |
Securitized [Member] | ||
Disclosure of Distribution of Debt Securities and Private Placement Portfolio by Sector and Industry [Line Items] | ||
Carrying value | CAD 3,577 | CAD 3,514 |
% of total | 2.00% | 2.00% |
Telecommunications [Member] | ||
Disclosure of Distribution of Debt Securities and Private Placement Portfolio by Sector and Industry [Line Items] | ||
Carrying value | CAD 3,324 | CAD 3,091 |
% of total | 2.00% | 2.00% |
Basic materials [Member] | ||
Disclosure of Distribution of Debt Securities and Private Placement Portfolio by Sector and Industry [Line Items] | ||
Carrying value | CAD 3,248 | CAD 3,387 |
% of total | 2.00% | 2.00% |
Technology [Member] | ||
Disclosure of Distribution of Debt Securities and Private Placement Portfolio by Sector and Industry [Line Items] | ||
Carrying value | CAD 2,475 | CAD 2,231 |
% of total | 1.00% | 1.00% |
Media and internet [Member] | ||
Disclosure of Distribution of Debt Securities and Private Placement Portfolio by Sector and Industry [Line Items] | ||
Carrying value | CAD 1,136 | CAD 1,175 |
% of total | 1.00% | |
Diversified and miscellaneous [Member] | ||
Disclosure of Distribution of Debt Securities and Private Placement Portfolio by Sector and Industry [Line Items] | ||
Carrying value | CAD 949 | CAD 786 |
Risk Management - Schedule of G
Risk Management - Schedule of Geographic Concentration of Insurance and Investment Contract Liabilities, Including Embedded Derivatives (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of Concentration Risk [Line items] | ||
Concentration risk of liabilities | CAD 277,596 | CAD 266,166 |
US and Canada [Member] | ||
Disclosure of Concentration Risk [Line items] | ||
Concentration risk of liabilities | 207,209 | 203,809 |
Asia and Other [Member] | ||
Disclosure of Concentration Risk [Line items] | ||
Concentration risk of liabilities | 70,387 | 62,357 |
Gross insurance contract liabilities [Member] | ||
Disclosure of Concentration Risk [Line items] | ||
Concentration risk of liabilities | 307,955 | 301,118 |
Gross insurance contract liabilities [Member] | US and Canada [Member] | ||
Disclosure of Concentration Risk [Line items] | ||
Concentration risk of liabilities | 237,434 | 238,796 |
Gross insurance contract liabilities [Member] | Asia and Other [Member] | ||
Disclosure of Concentration Risk [Line items] | ||
Concentration risk of liabilities | 70,521 | 62,322 |
Reinsurance assets [Member] | ||
Disclosure of Concentration Risk [Line items] | ||
Concentration risk of liabilities | (30,359) | (34,952) |
Reinsurance assets [Member] | US and Canada [Member] | ||
Disclosure of Concentration Risk [Line items] | ||
Concentration risk of liabilities | (30,225) | (34,987) |
Reinsurance assets [Member] | Asia and Other [Member] | ||
Disclosure of Concentration Risk [Line items] | ||
Concentration risk of liabilities | CAD (134) | CAD 35 |
Long-Term Debt - Carrying Value
Long-Term Debt - Carrying Value of Long Term Debt Instruments (Detail) CAD in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017CAD | Dec. 31, 2017USD ($) | Dec. 31, 2016CAD | |
Disclosure of detailed information about borrowings [Line Items] | |||
Long-term debt | CAD 4,785 | CAD 5,696 | |
4.70% Senior notes [Member] | |||
Disclosure of detailed information about borrowings [Line Items] | |||
Issue date | Jun. 23, 2016 | ||
Maturity date | Jun. 23, 2046 | ||
Par value | $ | $ 1,000 | ||
Long-term debt | CAD 1,246 | 1,333 | |
5.375% Senior notes [Member] | |||
Disclosure of detailed information about borrowings [Line Items] | |||
Issue date | Mar. 4, 2016 | ||
Maturity date | Mar. 4, 2046 | ||
Par value | $ | 750 | ||
Long-term debt | CAD 928 | 994 | |
3.527% Senior notes [Member] | |||
Disclosure of detailed information about borrowings [Line Items] | |||
Issue date | Dec. 2, 2016 | ||
Maturity date | Dec. 2, 2026 | ||
Par value | $ | 270 | ||
Long-term debt | CAD 338 | 361 | |
4.150% Senior notes [Member] | |||
Disclosure of detailed information about borrowings [Line Items] | |||
Issue date | Mar. 4, 2016 | ||
Maturity date | Mar. 4, 2026 | ||
Par value | $ | 1,000 | ||
Long-term debt | CAD 1,246 | 1,333 | |
4.90% Senior notes [Member] | |||
Disclosure of detailed information about borrowings [Line Items] | |||
Issue date | Sep. 17, 2010 | ||
Maturity date | Sep. 17, 2020 | ||
Par value | $ | 500 | ||
Long-term debt | CAD 626 | 669 | |
7.768% Medium term notes [Member] | |||
Disclosure of detailed information about borrowings [Line Items] | |||
Issue date | Apr. 8, 2009 | ||
Maturity date | Apr. 8, 2019 | ||
Par value | $ | 600 | ||
Long-term debt | 599 | ||
5.505% Medium term notes [member] | |||
Disclosure of detailed information about borrowings [Line Items] | |||
Issue date | Jun. 26, 2008 | ||
Maturity date | Jun. 26, 2018 | ||
Par value | $ | $ 400 | ||
Long-term debt | CAD 400 | 400 | |
Other notes payable [Member] | |||
Disclosure of detailed information about borrowings [Line Items] | |||
Long-term debt | CAD 1 | CAD 7 |
Long-Term Debt - Carrying Va120
Long-Term Debt - Carrying Value of Long Term Debt Instruments (Parenthetical) (Detail) - CAD CAD in Millions | Oct. 06, 2017 | Dec. 31, 2017 |
5.375% Senior notes [Member] | ||
Disclosure of detailed information about borrowings [Line Items] | ||
Number of basis points | 0.40% | |
3.527% Senior notes [Member] | ||
Disclosure of detailed information about borrowings [Line Items] | ||
Number of basis points | 0.20% | |
4.150% Senior notes [Member] | ||
Disclosure of detailed information about borrowings [Line Items] | ||
Number of basis points | 0.35% | |
4.90% Senior notes [Member] | ||
Disclosure of detailed information about borrowings [Line Items] | ||
Number of basis points | 0.35% | |
7.768% Medium term notes [Member] | ||
Disclosure of detailed information about borrowings [Line Items] | ||
Early redemption premium before income taxes | CAD 44 | |
Medium Term Notes 1 [Member] | ||
Disclosure of detailed information about borrowings [Line Items] | ||
Number of basis points | 0.39% |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about borrowings [Line Items] | ||
Interest paid on long-term debt | CAD 324 | CAD 191 |
Level 2 [Member] | ||
Disclosure of detailed information about borrowings [Line Items] | ||
Fair value of long-term debt | CAD 5,187 | CAD 6,100 |
Long-Term Debt - Aggregate Matu
Long-Term Debt - Aggregate Maturities of Long-term Debt (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about borrowings [Line Items] | ||
Long-term debt | CAD 4,785 | CAD 5,696 |
Less than 1 year [Member] | ||
Disclosure of detailed information about borrowings [Line Items] | ||
Long-term debt | 401 | 7 |
One to two years [Member] | ||
Disclosure of detailed information about borrowings [Line Items] | ||
Long-term debt | 400 | |
Two to three years [Member] | ||
Disclosure of detailed information about borrowings [Line Items] | ||
Long-term debt | 626 | 599 |
Three to four years [Member] | ||
Disclosure of detailed information about borrowings [Line Items] | ||
Long-term debt | 669 | |
Over 5 years [Member] | ||
Disclosure of detailed information about borrowings [Line Items] | ||
Long-term debt | CAD 3,758 | CAD 4,021 |
Capital Instruments - Schedule
Capital Instruments - Schedule of Carrying Value of Capital Instruments (Detail) | 12 Months Ended | |||
Dec. 31, 2017CAD | Dec. 31, 2017USD ($) | Dec. 31, 2017SGD | Dec. 31, 2016CAD | |
Carrying value of capital instruments [line items] | ||||
Par value | CAD 336,773,000,000 | CAD 370,198,000,000 | ||
Total | CAD 8,387,000,000 | 7,180,000,000 | ||
4.165% MLI Subordinated debentures [Member] | ||||
Carrying value of capital instruments [line items] | ||||
Capital instruments interest rate | 4.165% | 4.165% | 4.165% | |
Issuance date | Feb. 17, 2012 | |||
Earliest par redemption date | Jun. 1, 2017 | |||
Maturity date | Jun. 1, 2022 | |||
Par value | CAD 500 | |||
Total | 499,000,000 | |||
3.938% MLI Subordinated debentures [Member] | ||||
Carrying value of capital instruments [line items] | ||||
Capital instruments interest rate | 3.938% | 3.938% | 3.938% | |
Issuance date | Sep. 21, 2012 | |||
Earliest par redemption date | Sep. 21, 2017 | |||
Maturity date | Sep. 21, 2022 | |||
Par value | CAD 400 | |||
Total | 407,000,000 | |||
2.819% MLI Subordinated debentures [Member] | ||||
Carrying value of capital instruments [line items] | ||||
Capital instruments interest rate | 2.819% | 2.819% | 2.819% | |
Issuance date | Feb. 25, 2013 | |||
Earliest par redemption date | Feb. 26, 2018 | |||
Maturity date | Feb. 26, 2023 | |||
Par value | CAD 200 | |||
Total | CAD 200,000,000 | 200,000,000 | ||
2.926% MLI Subordinated debentures [Member] | ||||
Carrying value of capital instruments [line items] | ||||
Capital instruments interest rate | 2.926% | 2.926% | 2.926% | |
Issuance date | Nov. 29, 2013 | |||
Earliest par redemption date | Nov. 29, 2018 | |||
Maturity date | Nov. 29, 2023 | |||
Par value | CAD 250 | |||
Total | CAD 250,000,000 | 249,000,000 | ||
2.811% MLI Subordinated debentures [Member] | ||||
Carrying value of capital instruments [line items] | ||||
Capital instruments interest rate | 2.811% | 2.811% | 2.811% | |
Issuance date | Feb. 21, 2014 | |||
Earliest par redemption date | Feb. 21, 2019 | |||
Maturity date | Feb. 21, 2024 | |||
Par value | CAD 500 | |||
Total | CAD 499,000,000 | 499,000,000 | ||
7.535% MFCT II Senior debenture notes [Member] | ||||
Carrying value of capital instruments [line items] | ||||
Capital instruments interest rate | 7.535% | 7.535% | 7.535% | |
Issuance date | Jul. 10, 2009 | |||
Earliest par redemption date | Dec. 31, 2019 | |||
Maturity date | Dec. 31, 2108 | |||
Par value | CAD 1,000 | |||
Total | CAD 1,000,000,000 | 1,000,000,000 | ||
2.64% MLI Subordinated debentures [Member] | ||||
Carrying value of capital instruments [line items] | ||||
Capital instruments interest rate | 2.64% | 2.64% | 2.64% | |
Issuance date | Dec. 1, 2014 | |||
Earliest par redemption date | Jan. 15, 2020 | |||
Maturity date | Jan. 15, 2025 | |||
Par value | CAD 500 | |||
Total | CAD 499,000,000 | 499,000,000 | ||
2.10% MLI Subordinated debentures [Member] | ||||
Carrying value of capital instruments [line items] | ||||
Capital instruments interest rate | 2.10% | 2.10% | 2.10% | |
Issuance date | Mar. 10, 2015 | |||
Earliest par redemption date | Jun. 1, 2020 | |||
Maturity date | Jun. 1, 2025 | |||
Par value | CAD 750 | |||
Total | CAD 748,000,000 | 747,000,000 | ||
2.389% MLI Subordinated debentures [Member] | ||||
Carrying value of capital instruments [line items] | ||||
Capital instruments interest rate | 2.389% | 2.389% | 2.389% | |
Issuance date | Jun. 1, 2015 | |||
Earliest par redemption date | Jan. 5, 2021 | |||
Maturity date | Jan. 5, 2026 | |||
Par value | CAD 350 | |||
Total | CAD 349,000,000 | 349,000,000 | ||
3.85% MFC Subordinated notes [Member] | ||||
Carrying value of capital instruments [line items] | ||||
Capital instruments interest rate | 3.85% | 3.85% | 3.85% | |
Issuance date | May 25, 2016 | |||
Earliest par redemption date | May 25, 2021 | |||
Maturity date | May 25, 2026 | |||
Par value | SGD | SGD 500 | |||
Total | CAD 467,000,000 | 461,000,000 | ||
3.181% MLI Subordinated debentures [Member] | ||||
Carrying value of capital instruments [line items] | ||||
Capital instruments interest rate | 3.181% | 3.181% | 3.181% | |
Issuance date | Nov. 20, 2015 | |||
Earliest par redemption date | Nov. 22, 2022 | |||
Maturity date | Nov. 22, 2027 | |||
Par value | CAD 1,000 | |||
Total | CAD 996,000,000 | 996,000,000 | ||
3.049% MFC Subordinated debentures [Member] | ||||
Carrying value of capital instruments [line items] | ||||
Capital instruments interest rate | 3.049% | 3.049% | 3.049% | |
Issuance date | Aug. 18, 2017 | |||
Earliest par redemption date | Aug. 20, 2024 | |||
Maturity date | Aug. 20, 2029 | |||
Par value | CAD 750 | |||
Total | CAD 746,000,000 | |||
3.00% MFC Subordinated notes [Member] | ||||
Carrying value of capital instruments [line items] | ||||
Capital instruments interest rate | 3.00% | 3.00% | 3.00% | |
Issuance date | Nov. 21, 2017 | |||
Earliest par redemption date | Nov. 21, 2024 | |||
Maturity date | Nov. 21, 2024 | |||
Par value | SGD | SGD 500 | |||
Total | CAD 467,000,000 | |||
4.061% MFC Subordinated notes [Member] | ||||
Carrying value of capital instruments [line items] | ||||
Capital instruments interest rate | 4.061% | 4.061% | 4.061% | |
Issuance date | Feb. 24, 2017 | |||
Earliest par redemption date | Feb. 24, 2027 | |||
Maturity date | Feb. 24, 2032 | |||
Par value | $ | $ 750 | |||
Total | CAD 935,000,000 | |||
7.375% JHUSA Surplus notes [Member] | ||||
Carrying value of capital instruments [line items] | ||||
Capital instruments interest rate | 7.375% | 7.375% | 7.375% | |
Issuance date | Feb. 25, 1994 | |||
Maturity date | Feb. 15, 2024 | |||
Par value | $ | $ 450 | |||
Total | CAD 584,000,000 | 627,000,000 | ||
JHFC subordinated notes [member] | ||||
Carrying value of capital instruments [line items] | ||||
Issuance date | Dec. 14, 2006 | |||
Maturity date | Dec. 15, 2036 | |||
Par value | CAD 650 | |||
Total | CAD 647,000,000 | CAD 647,000,000 |
Capital Instruments - Schedu124
Capital Instruments - Schedule of Carrying Value of Capital Instruments (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Carrying value of capital instruments [line items] | ||
Interest rate, basis | 5-year Singapore Dollar Swap Rate plus a specified number of basis points | |
Interest rate reset period | 5 years | |
3.85% MFC Subordinated notes [Member] | ||
Carrying value of capital instruments [line items] | ||
Floating interest rate, adjustment to basis | 1.97% | |
3.049% MFC Subordinated debentures [Member] | ||
Carrying value of capital instruments [line items] | ||
Interest rate, basis | 90-day Bankers' Acceptance rate plus 105 basis points. | |
Floating interest rate, adjustment to basis | 1.05% | |
3.00% MFC Subordinated notes [Member] | ||
Carrying value of capital instruments [line items] | ||
Floating interest rate, adjustment to basis | 0.832% | |
4.061% MFC Subordinated notes [Member] | ||
Carrying value of capital instruments [line items] | ||
Interest rate, basis | 5-Year US Dollar Mid-Swap Rate plus 1.647 | |
Floating interest rate, adjustment to basis | 1.647% | |
Interest rate reset period | 5 years | |
JHFC subordinated notes [member] | ||
Carrying value of capital instruments [line items] | ||
Interest rate, basis | 90-day Bankers’ Acceptance rate plus 0.72% | |
Floating interest rate, adjustment to basis | 0.72% | |
Manufacturers life insurance company [Member] | 2.819% MLI Subordinated debentures [Member] | ||
Carrying value of capital instruments [line items] | ||
Interest rate, basis | 90-day Bankers’ Acceptance rate plus a specified number of basis points and is payable quarterly | |
Floating interest rate, adjustment to basis | 0.95% | |
Manufacturers life insurance company [Member] | 2.926% MLI Subordinated debentures [Member] | ||
Carrying value of capital instruments [line items] | ||
Floating interest rate, adjustment to basis | 0.85% | |
Manufacturers life insurance company [Member] | 2.811% MLI Subordinated debentures [Member] | ||
Carrying value of capital instruments [line items] | ||
Floating interest rate, adjustment to basis | 0.80% | |
Manufacturers life insurance company [Member] | 2.64% MLI Subordinated debentures [Member] | ||
Carrying value of capital instruments [line items] | ||
Floating interest rate, adjustment to basis | 0.73% | |
Manufacturers life insurance company [Member] | 2.10% MLI Subordinated debentures [Member] | ||
Carrying value of capital instruments [line items] | ||
Floating interest rate, adjustment to basis | 0.72% | |
Manufacturers life insurance company [Member] | 2.389% MLI Subordinated debentures [Member] | ||
Carrying value of capital instruments [line items] | ||
Floating interest rate, adjustment to basis | 0.83% | |
Manufacturers life insurance company [Member] | 3.181% MLI Subordinated debentures [Member] | ||
Carrying value of capital instruments [line items] | ||
Floating interest rate, adjustment to basis | 1.57% | |
Manufacturers life insurance company [Member] | Government of Canada bonds [Member] | ||
Carrying value of capital instruments [line items] | ||
Debt instrument, maturity period | 5 years | 5 years |
Floating interest rate, adjustment to basis | 5.20% | 5.20% |
Manufacturers life insurance company [Member] | Government of Canada bonds [Member] | Prior to December 31, 2019 [Member] | ||
Carrying value of capital instruments [line items] | ||
Bond redemption variable interest rate | 1.0325% | 1.0325% |
Manufacturers life insurance company [Member] | Government of Canada bonds [Member] | After December 31, 2019 [Member] | ||
Carrying value of capital instruments [line items] | ||
Bond redemption variable interest rate | 2.065% | 2.065% |
John Hancock Financial Corporation [Member] | 7.375% JHUSA Surplus notes [Member] | ||
Carrying value of capital instruments [line items] | ||
Unamortized fair value increment | $ 23 | $ 26 |
Capital Instruments - Additiona
Capital Instruments - Additional Information (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Level 2 [Member] | ||
Fair value of capital instruments [Line Items] | ||
Capital instruments | CAD 8,636 | CAD 7,417 |
Share Capital and Earnings P126
Share Capital and Earnings Per Share - Summary of Changes in Issued and Outstanding Shares - Preferred Shares (Detail) - CAD shares in Millions, CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of classes of share capital [Line Items] | ||
Balance, beginning of year | CAD 42,823 | |
Balance, end of year | 42,163 | CAD 42,823 |
Preferred shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Balance, beginning of year | 3,577 | 2,693 |
Issued, amount | 900 | |
Issuance costs, net of tax | 0 | (16) |
Balance, end of year | CAD 3,577 | CAD 3,577 |
Balance, beginning of year | 146 | 110 |
Balance, end of year | 146 | 146 |
Class 1, Series 21 Preferred shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Issued, amount | CAD 0 | CAD 425 |
Number of shares, issued | 0 | 17 |
Balance, end of year | 17 | |
Class 1, Series 3 Preferred shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Converted, amount | CAD 0 | CAD (42) |
Number of shares, converted | 0 | (2) |
Balance, end of year | 6 | |
Class 1, Series 4 Preferred shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Issued, amount | CAD 0 | CAD 42 |
Number of shares, issued | 0 | 2 |
Balance, end of year | 2 | |
Class 1, Series 23 Preferred shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Issued, amount | CAD 0 | CAD 475 |
Number of shares, issued | 0 | 19 |
Balance, end of year | 19 |
Share Capital and Earnings P127
Share Capital and Earnings Per Share - Summary of Further Information on Preferred Shares Outstanding (Detail) - CAD shares in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of classes of share capital [Line Items] | ||
Face amount | CAD 336,773,000,000 | CAD 370,198,000,000 |
Class 1, Series 4 Preferred shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Issue date | Jun. 20, 2016 | |
Number of shares | 2 | |
Face amount | CAD 42,000,000 | |
Net amount | CAD 41,000,000 | |
Class 1, Series 3 Preferred shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Issue date | Mar. 11, 2011 | |
Annual dividend rate | 2.178% | |
Earliest redemption date | Jun. 19, 2021 | |
Number of shares | 6 | |
Face amount | CAD 158,000,000 | |
Net amount | CAD 155,000,000 | |
Class 1, Series 5 Preferred shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Issue date | Dec. 6, 2011 | |
Annual dividend rate | 3.891% | |
Earliest redemption date | Dec. 19, 2021 | |
Number of shares | 8 | |
Face amount | CAD 200,000,000 | |
Net amount | CAD 195,000,000 | |
Class 1, Series 7 Preferred shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Issue date | Feb. 22, 2012 | |
Annual dividend rate | 4.312% | |
Earliest redemption date | Mar. 19, 2022 | |
Number of shares | 10 | |
Face amount | CAD 250,000,000 | |
Net amount | CAD 244,000,000 | |
Class 1, Series 9 Preferred shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Issue date | May 24, 2012 | |
Annual dividend rate | 4.351% | |
Earliest redemption date | Sep. 19, 2022 | |
Number of shares | 10 | |
Face amount | CAD 250,000,000 | |
Net amount | CAD 244,000,000 | |
Class 1, Series 11 Preferred shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Issue date | Dec. 4, 2012 | |
Annual dividend rate | 4.00% | |
Earliest redemption date | Mar. 19, 2018 | |
Number of shares | 8 | |
Face amount | CAD 200,000,000 | |
Net amount | CAD 196,000,000 | |
Class 1, Series 13 Preferred shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Issue date | Jun. 21, 2013 | |
Annual dividend rate | 3.80% | |
Earliest redemption date | Sep. 19, 2018 | |
Number of shares | 8 | |
Face amount | CAD 200,000,000 | |
Net amount | CAD 196,000,000 | |
Class 1, Series 15 Preferred shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Issue date | Feb. 25, 2014 | |
Annual dividend rate | 3.90% | |
Earliest redemption date | Jun. 19, 2019 | |
Number of shares | 8 | |
Face amount | CAD 200,000,000 | |
Net amount | CAD 195,000,000 | |
Class 1, Series 17 Preferred shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Issue date | Aug. 15, 2014 | |
Annual dividend rate | 3.90% | |
Earliest redemption date | Dec. 19, 2019 | |
Number of shares | 14 | |
Face amount | CAD 350,000,000 | |
Net amount | CAD 343,000,000 | |
Class 1, Series 19 Preferred shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Issue date | Dec. 3, 2014 | |
Annual dividend rate | 3.80% | |
Earliest redemption date | Mar. 19, 2020 | |
Number of shares | 10 | |
Face amount | CAD 250,000,000 | |
Net amount | CAD 246,000,000 | |
Class 1, Series 21 Preferred shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Issue date | Feb. 25, 2016 | |
Annual dividend rate | 5.60% | |
Earliest redemption date | Jun. 19, 2021 | |
Number of shares | 17 | |
Face amount | CAD 425,000,000 | |
Net amount | CAD 417,000,000 | |
Class 1, Series 23 Preferred shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Issue date | Nov. 22, 2016 | |
Annual dividend rate | 4.85% | |
Earliest redemption date | Mar. 19, 2022 | |
Number of shares | 19 | |
Face amount | CAD 475,000,000 | |
Net amount | CAD 467,000,000 | |
Class A, Series 2 Preferred shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Issue date | Feb. 18, 2005 | |
Annual dividend rate | 4.65% | |
Number of shares | 14 | |
Face amount | CAD 350,000,000 | |
Net amount | CAD 344,000,000 | |
Class A, Series 3 Preferred shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Issue date | Jan. 3, 2006 | |
Annual dividend rate | 4.50% | |
Number of shares | 12 | |
Face amount | CAD 300,000,000 | |
Net amount | CAD 294,000,000 | |
Preferred shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Number of shares | 146 | |
Face amount | CAD 3,650,000,000 | |
Net amount | CAD 3,577,000,000 |
Share Capital and Earnings P128
Share Capital and Earnings Per Share - Summary of Further Information on Preferred Shares Outstanding (Parenthetical) (Detail) - CAD / shares | Sep. 19, 2017 | Mar. 19, 2017 | Dec. 31, 2017 |
Class 1, Series 4 Preferred shares [Member] | |||
Disclosure of classes of share capital [Line Items] | |||
Annual dividend rate | Floating | ||
Class 1, Series 4 Preferred shares [Member] | Major ordinary share transactions [Member] | |||
Disclosure of classes of share capital [Line Items] | |||
Basis spread on dividend rate | 1.41% | ||
Floating dividend rate, description | Three month Government of Canada Treasury bill yield plus 1.41%. | ||
Class 1, Series 4 Preferred shares [Member] | If redeemed on June 19, 2021 [Member] | |||
Disclosure of classes of share capital [Line Items] | |||
Price per share | CAD 25 | ||
Class 1, Series 4 Preferred shares [Member] | If redeemed after June 19, 2021 [Member] | |||
Disclosure of classes of share capital [Line Items] | |||
Price per share | CAD 25.50 | ||
Class 1, Series 3 Preferred shares [Member] | |||
Disclosure of classes of share capital [Line Items] | |||
Specified yield percentage | 1.41% | ||
Class 1, Series 5 Preferred shares [Member] | |||
Disclosure of classes of share capital [Line Items] | |||
Specified yield percentage | 2.90% | ||
Class 1, Series 7 Preferred shares [Member] | |||
Disclosure of classes of share capital [Line Items] | |||
Specified yield percentage | 3.13% | ||
Annual dividend rate | 4.312% | ||
Class 1, Series 9 Preferred shares [Member] | |||
Disclosure of classes of share capital [Line Items] | |||
Specified yield percentage | 2.86% | ||
Annual dividend rate | 4.351% | ||
Class 1, Series 11 Preferred shares [Member] | |||
Disclosure of classes of share capital [Line Items] | |||
Specified yield percentage | 2.61% | ||
Class 1, Series 13 Preferred shares [Member] | |||
Disclosure of classes of share capital [Line Items] | |||
Specified yield percentage | 2.22% | ||
Class 1, Series 15 Preferred shares [Member] | |||
Disclosure of classes of share capital [Line Items] | |||
Specified yield percentage | 2.16% | ||
Class 1, Series 17 Preferred shares [Member] | |||
Disclosure of classes of share capital [Line Items] | |||
Specified yield percentage | 2.36% | ||
Class 1, Series 19 Preferred shares [Member] | |||
Disclosure of classes of share capital [Line Items] | |||
Specified yield percentage | 2.30% | ||
Class 1, Series 21 Preferred shares [Member] | |||
Disclosure of classes of share capital [Line Items] | |||
Specified yield percentage | 4.97% | ||
Class 1, Series 23 Preferred shares [Member] | |||
Disclosure of classes of share capital [Line Items] | |||
Specified yield percentage | 3.83% |
Share Capital and Earnings P129
Share Capital and Earnings Per Share - Summary of Changes in Issued and Outstanding Shares - Common Shares (Detail) - CAD shares in Millions, CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of classes of share capital [Line Items] | ||
Balance, beginning of year | CAD 42,823 | |
Balance, end of year | CAD 42,163 | CAD 42,823 |
Common shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Balance, beginning of year | 1,975 | 1,972 |
Issued on exercise of stock options and deferred share units | 7 | 3 |
Balance, end of year | 1,982 | 1,975 |
Balance, beginning of year | CAD 22,865 | CAD 22,799 |
Issued on exercise of stock options and deferred share units | 124 | 66 |
Balance, end of year | CAD 22,989 | CAD 22,865 |
Share Capital and Earnings P130
Share Capital and Earnings Per Share - Summary of Basic and Diluted Earnings Per Common Share (Detail) - CAD / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings per share [abstract] | ||
Basic earnings per common share | CAD 0.98 | CAD 1.42 |
Diluted earnings per common share | CAD 0.98 | CAD 1.41 |
Share Capital and Earnings P131
Share Capital and Earnings Per Share - Summary of Reconciliation of Denominator (Number of Shares) in Calculation of Basic and Diluted Earnings Per Share (Detail) - shares shares in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings per share [abstract] | ||
Weighted average number of common shares (in millions) | 1,978 | 1,973 |
Dilutive stock-based awards(in millions) | 8 | 4 |
Weighted average number of diluted common shares (in millions) | 1,986 | 1,977 |
Share Capital and Earnings P132
Share Capital and Earnings Per Share - Summary of Reconciliation of Denominator (Number of Shares) in Calculation of Basic and Diluted Earnings Per Share (Parenthetical) (Detail) - shares shares in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share based payments arrangements [Member] | ||
Earnings per share [Line Items] | ||
Anti-dilutive stock-based awards excluded from the calculation of EPS | 2 | 14 |
Share Capital and Earnings P133
Share Capital and Earnings Per share - Additional Information (Detail) | Feb. 07, 2018CAD / shares |
Common shares [Member] | Major ordinary share transactions [Member] | |
Disclosure of Dividends [Line Items] | |
Dividend declared but not paid | CAD 0.22 |
Share Capital and Earnings P134
Share Capital and Earnings Per share - Schedule of Dividends Payable on Non-cumulative Preferred Shares (Detail) - Major ordinary share transactions [Member] | Feb. 21, 2017CAD / shares |
Class 1, Series 11 Preferred shares [Member] | |
Disclosure of Dividends [Line Items] | |
Dividend declared but not paid | CAD 0.250000 |
Class 1, Series 13 Preferred shares [Member] | |
Disclosure of Dividends [Line Items] | |
Dividend declared but not paid | 0.237500 |
Class 1, Series 15 Preferred shares [Member] | |
Disclosure of Dividends [Line Items] | |
Dividend declared but not paid | 0.243750 |
Class 1, Series 17 Preferred shares [Member] | |
Disclosure of Dividends [Line Items] | |
Dividend declared but not paid | 0.243750 |
Class 1, Series 19 Preferred shares [Member] | |
Disclosure of Dividends [Line Items] | |
Dividend declared but not paid | 0.237500 |
Class 1, Series 21 Preferred shares [Member] | |
Disclosure of Dividends [Line Items] | |
Dividend declared but not paid | 0.350000 |
Class 1, Series 23 Preferred shares [Member] | |
Disclosure of Dividends [Line Items] | |
Dividend declared but not paid | 0.303125 |
Class A, Series 2 Preferred shares [Member] | |
Disclosure of Dividends [Line Items] | |
Dividend declared but not paid | 0.290630 |
Class A, Series 3 Preferred shares [Member] | |
Disclosure of Dividends [Line Items] | |
Dividend declared but not paid | 0.281250 |
Class 1, Series 3 Preferred shares [Member] | |
Disclosure of Dividends [Line Items] | |
Dividend declared but not paid | 0.136125 |
Class 1, Series 4 Preferred shares [Member] | |
Disclosure of Dividends [Line Items] | |
Dividend declared but not paid | 0.141103 |
Class 1, Series 5 Preferred shares [Member] | |
Disclosure of Dividends [Line Items] | |
Dividend declared but not paid | 0.243188 |
Class 1, Series 7 Preferred shares [Member] | |
Disclosure of Dividends [Line Items] | |
Dividend declared but not paid | 0.269500 |
Class 1, Series 9 Preferred shares [Member] | |
Disclosure of Dividends [Line Items] | |
Dividend declared but not paid | CAD 0.271938 |
Capital Management - Schedule o
Capital Management - Schedule of Consolidated Capital (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of classes of share capital [abstract] | ||
Total equity | CAD 42,163 | CAD 42,823 |
Adjusted for AOCI loss on cash flow hedges | (109) | (232) |
Total equity excluding AOCI on cash flow hedges | 42,272 | 43,055 |
Qualifying capital instruments | 8,387 | 7,180 |
Total capital | CAD 50,659 | CAD 50,235 |
Capital Management - Additional
Capital Management - Additional Information (Detail) | Dec. 31, 2017CAD |
Bottom of range [Member] | |
Disclosure of classes of share capital [Line Items] | |
Aggregate liquidation entitlement | CAD 200,000,000 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2017 | Dec. 31, 2017CADEquityOptionsCAD / sharesshares | Dec. 31, 2016CADEquityOptionsCAD / shares | Dec. 31, 2015Equity | |
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||
Compensation expense | CAD 16,000,000 | CAD 19,000,000 | ||
Black scholes option pricing model [Member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||
Weighted average fair value of options granted | CAD 5.18 | CAD 3.78 | ||
Risk-free interest rate | 1.25% | 1.50% | ||
Dividend yield | 3.00% | 3.00% | ||
Expected volatility | 29.50% | 29.50% | ||
Expected life | 6 years 8 months 12 days | 6 years 8 months 12 days | ||
Executive Stock Option Plan [Member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||
Description of share-based payment arrangement | The options provide the holder the right to purchase MFC common shares at an exercise price equal to the higher of the prior day, prior five-day or prior ten-day average closing market price of the shares on the Toronto Stock Exchange on the date the options are granted. | |||
Shares reserved for future issuance | shares | 73,600,000 | |||
Executive Stock Option Plan [Member] | Top of range [Member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||
Option vesting period | 4 years | |||
Option expiration period | 10 years | |||
Deferred Share Units under ESOP [member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||
Vesting period | 3 years | |||
Number of common shares to be received on retirement or termination | shares | 1 | |||
Fair value of equity issued | 0 | 0 | ||
Number of shares outstanding | 610,000 | 633,000 | ||
Deferred Share Units [Member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||
Compensation expense | CAD 13,000,000 | CAD 6,000,000 | ||
Number of equity granted | 23,000 | 14,000 | ||
Number of other equity instruments entitle holder to receive payment in cash | Options | 1,103,000 | 1,235,000 | ||
Number of other equity entitle holder to receive payment in cash or common shares | Options | 932,000 | 814,000 | ||
Amount of the liability relating to equity | CAD 53,000,000 | CAD 43,000,000 | ||
Deferred Share Units [Member] | Defer receipt of all or part of annual bonus [member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||
Number of equity granted | 0 | 27,000 | ||
Deferred Share Units [Member] | Defer payment of all or part of RSUs or PSUs [member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||
Number of equity granted | 43,000 | 83,000 | ||
Deferred Share Units [Member] | Board of Director [Member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||
Fair value of equity issued | Equity | 156,000 | 254,000 | ||
Number of shares outstanding | Equity | 2,645,000 | 2,682,000 | 2,542,000 | |
Fair value of equity granted | CAD / shares | CAD 26.22 | CAD 23.91 | ||
Deferred Share Units [Member] | Bottom of range [Member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||
Vesting period | 34 months | 4 years | ||
Board of Director [Member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||
Shares reserved for future issuance | shares | 1,000,000 | |||
Restricted share units (RSUs) [member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||
Compensation expense | CAD 125,000,000 | CAD 110,000,000 | ||
Vesting period | 34 months | |||
Number of equity granted | 5,600,000 | 7,600,000 | ||
Fair value of equity granted | CAD / shares | CAD 26.22 | CAD 23.91 | ||
Vesting date | Dec. 15, 2019 | |||
Performance share units (PSUs) [member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||
Compensation expense | CAD 21,000,000 | CAD 9,000,000 | ||
Vesting period | 36 months | |||
Number of equity granted | 1,000,000 | 1,200,000 | ||
Fair value of equity granted | CAD / shares | CAD 26.22 | CAD 23.91 | ||
Vesting date | Feb. 28, 2020 | |||
Restricted share units and performance share units [Member] | ||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | ||||
Amount of the liability relating to equity | CAD 228,000,000 | CAD 196,000,000 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Options Outstanding (Detail) shares in Millions, pure in Millions | 12 Months Ended | |
Dec. 31, 2017CADshares | Dec. 31, 2016CADshares | |
Disclosure of terms and conditions of share-based payment arrangement [abstract] | ||
Number of options, Beginning balance | 30 | 30 |
Number of options, Granted | 4 | 6 |
Number of options, Exercised | (7) | (3) |
Number of options' Expired | (1) | (2) |
Number of options' Forfeited | (1) | (1) |
Number of options, Ending balance | shares | 25 | 30 |
Number of options, Exercisable, Ending balance | 12 | 18 |
Weighted average exercise price, Beginning balance | CAD 19.80 | CAD 20.72 |
Weighted average exercise price, Granted | 24.56 | 17.65 |
Weighted average exercise price, Exercised | 16.03 | 15.49 |
Weighted average exercise price, Expired | 39.47 | 32.92 |
Weighted average exercise price, Forfeited | 20.86 | 21.04 |
Weighted average exercise price, Ending balance | 20.45 | 19.80 |
Weighted average exercise price, Exercisable, Ending balance | CAD 19.93 | CAD 20.15 |
Stock-Based Compensation - S139
Stock-Based Compensation - Schedule of Range of Exercise Prices of Outstanding Share Options (Detail) | 12 Months Ended | ||
Dec. 31, 2017CAD | Dec. 31, 2016CAD | Dec. 31, 2015CAD | |
Disclosure of range of exercise prices of outstanding share options [Line Items] | |||
Number of options, Options outstanding | 25,000,000 | 30,000,000 | 30,000,000 |
Weighted average exercise price, Options outstanding | CAD 20.45 | CAD 19.80 | CAD 20.72 |
Weighted average remaining contractual life (in years) | 5.44 | ||
Number of options, Options exercisable | 12,000,000 | 18,000,000 | |
Weighted average exercise price, Options exercisable | CAD 19.93 | CAD 20.15 | |
Weighted average remaining contractual life (in years), Options exercisable | 2.87 | ||
$11.23 - $20.99 [Member] | |||
Disclosure of range of exercise prices of outstanding share options [Line Items] | |||
Number of options, Options outstanding | 14,000,000 | ||
Weighted average exercise price, Options outstanding | CAD 17.08 | ||
Weighted average remaining contractual life (in years) | 4.91 | ||
Number of options, Options exercisable | 9,000,000 | ||
Weighted average exercise price, Options exercisable | CAD 16.78 | ||
Weighted average remaining contractual life (in years), Options exercisable | 3.05 | ||
$21.00 - $29.99 [Member] | |||
Disclosure of range of exercise prices of outstanding share options [Line Items] | |||
Number of options, Options outstanding | 10,000,000 | ||
Weighted average exercise price, Options outstanding | CAD 22.77 | ||
Weighted average remaining contractual life (in years) | 6.88 | ||
Number of options, Options exercisable | 2,000,000 | ||
Weighted average exercise price, Options exercisable | CAD 21.40 | ||
Weighted average remaining contractual life (in years), Options exercisable | 3.77 | ||
$30.00 - $37.71 [Member] | |||
Disclosure of range of exercise prices of outstanding share options [Line Items] | |||
Number of options, Options outstanding | 1,000,000 | ||
Weighted average exercise price, Options outstanding | CAD 37.71 | ||
Weighted average remaining contractual life (in years) | 0.14 | ||
Number of options, Options exercisable | 1,000,000 | ||
Weighted average exercise price, Options exercisable | CAD 37.71 | ||
Weighted average remaining contractual life (in years), Options exercisable | 0.14 |
Stock-Based Compensation - S140
Stock-Based Compensation - Schedule of Other Equity Instruments (Detail) - Deferred Share Units [Member] - Board of Director [Member] - Equity | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of range of exercise prices of outstanding share options [Line Items] | ||
Beginning balance | 2,682,000 | 2,542,000 |
Issued | 156,000 | 254,000 |
Reinvested | 88,000 | 97,000 |
Redeemed | (279,000) | (184,000) |
Forfeitures and cancellations | (2,000) | (27,000) |
Ending balance | 2,645,000 | 2,682,000 |
Employee Future Benefits - Addi
Employee Future Benefits - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017CAD | |
Disclosure of defined benefit plans [Line Items] | |
Percentage of final average pay pension plans to global pension obligations | 50.00% |
Plan assets set aside for non-qualified cash balance plan | CAD 0 |
Assets set aside for plan | 0 |
Canadian plans [Member] | |
Disclosure of defined benefit plans [Line Items] | |
Estimate of expected cash payments for employee future benefits for the year ending December 31, 2018 | CAD 31,000,000 |
Return-seeking assets [Member] | |
Disclosure of defined benefit plans [Line Items] | |
Target asset allocation for plan | 29.00% |
Return-seeking assets [Member] | Canada [Member] | |
Disclosure of defined benefit plans [Line Items] | |
Target asset allocation for plan | 15.00% |
Liability-hedging assets [Member] | |
Disclosure of defined benefit plans [Line Items] | |
Target asset allocation for plan | 71.00% |
Liability-hedging assets [Member] | Canada [Member] | |
Disclosure of defined benefit plans [Line Items] | |
Target asset allocation for plan | 85.00% |
Defined Benefit Plans Provision [Member] | Standard Life Plc [Member] | |
Disclosure of defined benefit plans [Line Items] | |
Past service cost amendments | CAD (55,000,000) |
Defined Benefit Pension Plans [Member] | |
Disclosure of defined benefit plans [Line Items] | |
Estimate of expected cash payments for employee future benefits for the year ending December 31, 2018 | 101,000,000 |
Defined contribution pension plans [Member] | |
Disclosure of defined benefit plans [Line Items] | |
Estimate of expected cash payments for employee future benefits for the year ending December 31, 2018 | 77,000,000 |
Retiree welfare plans [Member] | |
Disclosure of defined benefit plans [Line Items] | |
Estimate of expected cash payments for employee future benefits for the year ending December 31, 2018 | CAD 9,000,000 |
Employee Future Benefits - Summ
Employee Future Benefits - Summary of Pension and Retiree Welfare Plans (Detail) - CAD | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Actuarial losses (gains) due to: | ||
Ending balance | CAD 0 | |
Pension plans [Member] | ||
Disclosure of net defined benefit liability (asset) [Line Items] | ||
Beginning balance | 490,000,000 | |
Actuarial losses (gains) due to: | ||
Experience | 15,000,000 | |
Demographic assumption changes | CAD (94,000,000) | |
Economic assumption changes | 214,000,000 | 116,000,000 |
Ending balance | 378,000,000 | 490,000,000 |
Actuarial gains (losses) | (312,000,000) | (158,000,000) |
Pension plans [Member] | Present value of defined benefit obligation [Member] | ||
Disclosure of net defined benefit liability (asset) [Line Items] | ||
Beginning balance | 4,767,000,000 | 4,823,000,000 |
Plan mergers | 143,000,000 | |
Current service cost | 48,000,000 | 52,000,000 |
Past service cost | (57,000,000) | |
Interest cost | 182,000,000 | 196,000,000 |
Plan participants' contributions | 1,000,000 | 1,000,000 |
Actuarial losses (gains) due to: | ||
Experience | 15,000,000 | |
Demographic assumption changes | (94,000,000) | |
Economic assumption changes | 214,000,000 | 116,000,000 |
Benefits paid | (315,000,000) | (314,000,000) |
Impact of changes in foreign exchange rates | (206,000,000) | (99,000,000) |
Ending balance | 4,706,000,000 | 4,767,000,000 |
Pension plans [Member] | Plan assets [Member] | ||
Disclosure of net defined benefit liability (asset) [Line Items] | ||
Beginning balance | 4,277,000,000 | 4,122,000,000 |
Plan mergers | 129,000,000 | |
Interest cost | 164,000,000 | 169,000,000 |
Plan participants' contributions | 1,000,000 | 1,000,000 |
Actuarial losses (gains) due to: | ||
Benefits paid | (315,000,000) | (314,000,000) |
Impact of changes in foreign exchange rates | (191,000,000) | (87,000,000) |
Ending balance | 4,328,000,000 | 4,277,000,000 |
Employer contributions | 85,000,000 | 106,000,000 |
Administration costs | (5,000,000) | (7,000,000) |
Actuarial gains (losses) | 312,000,000 | 158,000,000 |
Retiree welfare plans [Member] | ||
Disclosure of net defined benefit liability (asset) [Line Items] | ||
Beginning balance | 79,000,000 | |
Actuarial losses (gains) due to: | ||
Experience | (9,000,000) | (2,000,000) |
Demographic assumption changes | (16,000,000) | |
Economic assumption changes | 41,000,000 | 20,000,000 |
Ending balance | 78,000,000 | 79,000,000 |
Actuarial gains (losses) | (30,000,000) | (8,000,000) |
Retiree welfare plans [Member] | Present value of defined benefit obligation [Member] | ||
Disclosure of net defined benefit liability (asset) [Line Items] | ||
Beginning balance | 682,000,000 | 713,000,000 |
Current service cost | 1,000,000 | 1,000,000 |
Interest cost | 26,000,000 | 28,000,000 |
Plan participants' contributions | 4,000,000 | 5,000,000 |
Actuarial losses (gains) due to: | ||
Experience | (9,000,000) | (2,000,000) |
Demographic assumption changes | (16,000,000) | |
Economic assumption changes | 41,000,000 | 20,000,000 |
Benefits paid | (45,000,000) | (50,000,000) |
Impact of changes in foreign exchange rates | (35,000,000) | (17,000,000) |
Ending balance | 665,000,000 | 682,000,000 |
Retiree welfare plans [Member] | Plan assets [Member] | ||
Disclosure of net defined benefit liability (asset) [Line Items] | ||
Beginning balance | 603,000,000 | 635,000,000 |
Interest cost | 23,000,000 | 25,000,000 |
Plan participants' contributions | 4,000,000 | 5,000,000 |
Actuarial losses (gains) due to: | ||
Benefits paid | (45,000,000) | (50,000,000) |
Impact of changes in foreign exchange rates | (38,000,000) | (18,000,000) |
Ending balance | 587,000,000 | 603,000,000 |
Employer contributions | 12,000,000 | |
Administration costs | (2,000,000) | (2,000,000) |
Actuarial gains (losses) | CAD 30,000,000 | CAD 8,000,000 |
Employee Future Benefits - S143
Employee Future Benefits - Summary of Amounts Recognized in Consolidated Statements of Financial Position (Detail) - CAD | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of defined benefit plans [Line Items] | ||
Deficit and net defined benefit liability | CAD 0 | |
Pension plans [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Defined benefit obligation | 4,706,000,000 | CAD 4,767,000,000 |
Fair value of plan assets | 4,328,000,000 | 4,277,000,000 |
Deficit | 378,000,000 | 490,000,000 |
Effect of asset limit | 0 | 0 |
Deficit and net defined benefit liability | 378,000,000 | 490,000,000 |
Pension plans [Member] | Funded [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Deficit and net defined benefit liability | (383,000,000) | (292,000,000) |
Pension plans [Member] | Unfunded [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Deficit and net defined benefit liability | 761,000,000 | 782,000,000 |
Retiree welfare plans [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Defined benefit obligation | 665,000,000 | 682,000,000 |
Fair value of plan assets | 587,000,000 | 603,000,000 |
Deficit | 78,000,000 | 79,000,000 |
Effect of asset limit | 0 | 0 |
Deficit and net defined benefit liability | 78,000,000 | 79,000,000 |
Retiree welfare plans [Member] | Funded [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Deficit and net defined benefit liability | (72,000,000) | (63,000,000) |
Retiree welfare plans [Member] | Unfunded [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Deficit and net defined benefit liability | CAD 150,000,000 | CAD 142,000,000 |
Employee Future Benefits - S144
Employee Future Benefits - Summary of Disaggregation of Defined Benefit Obligation (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Pension plans [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Disaggregation of defined benefit obligation | CAD 4,706 | CAD 4,767 |
Retiree welfare plans [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Disaggregation of defined benefit obligation | 665 | 682 |
U.S. plans [Member] | Pension plans [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Disaggregation of defined benefit obligation | 3,026 | 3,165 |
U.S. plans [Member] | Pension plans [Member] | Active [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Disaggregation of defined benefit obligation | 592 | 637 |
U.S. plans [Member] | Pension plans [Member] | Inactive and retired members [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Disaggregation of defined benefit obligation | 2,434 | 2,528 |
U.S. plans [Member] | Retiree welfare plans [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Disaggregation of defined benefit obligation | 515 | 540 |
U.S. plans [Member] | Retiree welfare plans [Member] | Active [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Disaggregation of defined benefit obligation | 34 | 38 |
U.S. plans [Member] | Retiree welfare plans [Member] | Inactive and retired members [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Disaggregation of defined benefit obligation | 481 | 502 |
Canadian plans [Member] | Pension plans [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Disaggregation of defined benefit obligation | 1,680 | 1,602 |
Canadian plans [Member] | Pension plans [Member] | Active [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Disaggregation of defined benefit obligation | 393 | 403 |
Canadian plans [Member] | Pension plans [Member] | Inactive and retired members [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Disaggregation of defined benefit obligation | 1,287 | 1,199 |
Canadian plans [Member] | Retiree welfare plans [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Disaggregation of defined benefit obligation | 150 | 142 |
Canadian plans [Member] | Retiree welfare plans [Member] | Active [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Disaggregation of defined benefit obligation | 20 | 20 |
Canadian plans [Member] | Retiree welfare plans [Member] | Inactive and retired members [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Disaggregation of defined benefit obligation | CAD 130 | CAD 122 |
Employee Future Benefits - S145
Employee Future Benefits - Summary of Major Categories of Plan Assets and Actual Per Cent Allocation to Each Category (Detail) - CAD | Dec. 31, 2017 | Dec. 31, 2016 |
Pension plans [Member] | ||
Disclosure of fair value of plan assets [Line Items] | ||
Total | CAD 4,328,000,000 | CAD 4,277,000,000 |
Retiree welfare plans [Member] | ||
Disclosure of fair value of plan assets [Line Items] | ||
Total | 587,000,000 | 603,000,000 |
U.S. plans [Member] | ||
Disclosure of fair value of plan assets [Line Items] | ||
Equity securities | 1,300,000 | 1,100,000 |
U.S. plans [Member] | Pension plans [Member] | Fair value measurements [Member] | ||
Disclosure of fair value of plan assets [Line Items] | ||
Total | CAD 2,942,000,000 | CAD 2,933,000,000 |
Percentage of fair value measurements | 100.00% | 100.00% |
U.S. plans [Member] | Pension plans [Member] | Fair value measurements [Member] | Debt securities [Member] | ||
Disclosure of fair value of plan assets [Line Items] | ||
Debt securities | CAD 1,979,000,000 | CAD 1,834,000,000 |
Percentage of fair value measurements | 67.00% | 62.00% |
U.S. plans [Member] | Pension plans [Member] | Fair value measurements [Member] | Cash and cash equivalents [Member] | ||
Disclosure of fair value of plan assets [Line Items] | ||
Cash and cash equivalents | CAD 33,000,000 | CAD 15,000,000 |
Percentage of fair value measurements | 1.00% | 1.00% |
U.S. plans [Member] | Pension plans [Member] | Fair value measurements [Member] | Equity securities [Member] | ||
Disclosure of fair value of plan assets [Line Items] | ||
Equity securities | CAD 695,000,000 | CAD 825,000,000 |
Percentage of fair value measurements | 24.00% | 28.00% |
U.S. plans [Member] | Pension plans [Member] | Fair value measurements [Member] | Other investments [member] | ||
Disclosure of fair value of plan assets [Line Items] | ||
Other investments | CAD 235,000,000 | CAD 259,000,000 |
Percentage of fair value measurements | 8.00% | 9.00% |
U.S. plans [Member] | Retiree welfare plans [Member] | Fair value measurements [Member] | ||
Disclosure of fair value of plan assets [Line Items] | ||
Total | CAD 587,000,000 | CAD 603,000,000 |
Percentage of fair value measurements | 100.00% | 100.00% |
U.S. plans [Member] | Retiree welfare plans [Member] | Fair value measurements [Member] | Debt securities [Member] | ||
Disclosure of fair value of plan assets [Line Items] | ||
Debt securities | CAD 502,000,000 | CAD 427,000,000 |
Percentage of fair value measurements | 85.00% | 71.00% |
U.S. plans [Member] | Retiree welfare plans [Member] | Fair value measurements [Member] | Cash and cash equivalents [Member] | ||
Disclosure of fair value of plan assets [Line Items] | ||
Cash and cash equivalents | CAD 33,000,000 | CAD 19,000,000 |
Percentage of fair value measurements | 6.00% | 3.00% |
U.S. plans [Member] | Retiree welfare plans [Member] | Fair value measurements [Member] | Equity securities [Member] | ||
Disclosure of fair value of plan assets [Line Items] | ||
Equity securities | CAD 45,000,000 | CAD 150,000,000 |
Percentage of fair value measurements | 8.00% | 25.00% |
U.S. plans [Member] | Retiree welfare plans [Member] | Fair value measurements [Member] | Other investments [member] | ||
Disclosure of fair value of plan assets [Line Items] | ||
Other investments | CAD 7,000,000 | CAD 7,000,000 |
Percentage of fair value measurements | 1.00% | 1.00% |
Canadian plans [Member] | ||
Disclosure of fair value of plan assets [Line Items] | ||
Equity securities | CAD 0 | CAD 0 |
Canadian plans [Member] | Pension plans [Member] | Fair value measurements [Member] | ||
Disclosure of fair value of plan assets [Line Items] | ||
Total | CAD 1,386,000,000 | CAD 1,344,000,000 |
Percentage of fair value measurements | 100.00% | 100.00% |
Canadian plans [Member] | Pension plans [Member] | Fair value measurements [Member] | Debt securities [Member] | ||
Disclosure of fair value of plan assets [Line Items] | ||
Debt securities | CAD 1,165,000,000 | CAD 809,000,000 |
Percentage of fair value measurements | 84.00% | 60.00% |
Canadian plans [Member] | Pension plans [Member] | Fair value measurements [Member] | Cash and cash equivalents [Member] | ||
Disclosure of fair value of plan assets [Line Items] | ||
Cash and cash equivalents | CAD 5,000,000 | CAD 21,000,000 |
Percentage of fair value measurements | 1.00% | 2.00% |
Canadian plans [Member] | Pension plans [Member] | Fair value measurements [Member] | Equity securities [Member] | ||
Disclosure of fair value of plan assets [Line Items] | ||
Equity securities | CAD 212,000,000 | CAD 460,000,000 |
Percentage of fair value measurements | 15.00% | 34.00% |
Canadian plans [Member] | Pension plans [Member] | Fair value measurements [Member] | Other investments [member] | ||
Disclosure of fair value of plan assets [Line Items] | ||
Other investments | CAD 4,000,000 | CAD 54,000,000 |
Percentage of fair value measurements | 0.00% | 4.00% |
Employee Future Benefits - S146
Employee Future Benefits - Summary of Major Categories of Plan Assets and Actual Per Cent Allocation to Each Category (Parenthetical) (Detail) - CAD | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
U.S. plans [Member] | ||
Disclosure of fair value of plan assets [Line Items] | ||
Percentage of plan assets | 6.00% | 6.00% |
Equity securities | CAD 1,300,000 | CAD 1,100,000 |
Canadian plans [Member] | ||
Disclosure of fair value of plan assets [Line Items] | ||
Percentage of plan assets | 0.30% | 3.00% |
Equity securities | CAD 0 | CAD 0 |
Employee Future Benefits - S147
Employee Future Benefits - Summary of Components of Net Benefit Cost for Pension Plans and Retiree Welfare Plans (Detail) - Net Benefit Cost Recognized in the Consolidated Statements of Income [Member] - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Pension plans [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Defined benefit current service cost | CAD 48 | CAD 52 |
Defined benefit administrative expenses | 5 | 7 |
Past service cost - plan amendments | (57) | |
Service cost | 53 | 2 |
Interest on net defined benefit (asset) liability | 18 | 27 |
Defined benefit cost | 71 | 29 |
Defined contribution cost | 75 | 69 |
Net benefit cost | 146 | 98 |
Retiree welfare plans [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Defined benefit current service cost | 1 | 1 |
Defined benefit administrative expenses | 2 | 2 |
Service cost | 3 | 3 |
Interest on net defined benefit (asset) liability | 3 | 3 |
Defined benefit cost | 6 | 6 |
Net benefit cost | CAD 6 | CAD 6 |
Employee Future Benefits - S148
Employee Future Benefits - Summary of Components of Net Benefit Cost for Pension Plans and Retiree Welfare Plans (Parenthetical) (Detail) CAD in Millions | 12 Months Ended |
Dec. 31, 2017CAD | |
Standard Life Plc [Member] | Defined Benefit Plans Provision [Member] | |
Disclosure of defined benefit plans [Line Items] | |
Past service cost amendments | CAD (55) |
Employee Future Benefits - S149
Employee Future Benefits - Summary of Re-measurement Effects Recognized in Other Comprehensive Income (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Pension plans [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Experience | CAD (15) | |
Demographic assumption changes | CAD 94 | |
Economic assumption changes | (214) | (116) |
Return on plan assets greater (less) than discount rate | 312 | 158 |
Total re-measurement effects | 83 | 136 |
Retiree welfare plans [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Experience | 9 | 2 |
Demographic assumption changes | 16 | |
Economic assumption changes | (41) | (20) |
Return on plan assets greater (less) than discount rate | 30 | 8 |
Total re-measurement effects | CAD (2) | CAD 6 |
Employee Future Benefits - S150
Employee Future Benefits - Summary of Key Assumptions Used by to Determine Defined Benefit Obligation and Net Benefit Cost for Defined Benefit Pension Plans and Retiree Welfare Plans (Detail) | Dec. 31, 2017 | Dec. 31, 2016 |
U.S. plans [Member] | Pension plans [Member] | Defined benefit obligation [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Discount rate | 3.60% | 4.10% |
U.S. plans [Member] | Pension plans [Member] | Defined benefit cost [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Discount rate | 4.10% | 4.40% |
U.S. plans [Member] | Retiree welfare plans [Member] | Defined benefit obligation [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Discount rate | 3.60% | 4.10% |
Initial health care cost trend rate | 8.50% | 8.80% |
U.S. plans [Member] | Retiree welfare plans [Member] | Defined benefit cost [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Discount rate | 4.10% | 4.30% |
Initial health care cost trend rate | 8.80% | 9.00% |
Canadian plans [Member] | Pension plans [Member] | Defined benefit obligation [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Discount rate | 3.50% | 3.90% |
Canadian plans [Member] | Pension plans [Member] | Defined benefit cost [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Discount rate | 3.90% | 4.10% |
Canadian plans [Member] | Retiree welfare plans [Member] | Defined benefit obligation [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Discount rate | 3.60% | 4.00% |
Initial health care cost trend rate | 5.90% | 6.00% |
Canadian plans [Member] | Retiree welfare plans [Member] | Defined benefit cost [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Discount rate | 4.00% | 4.10% |
Initial health care cost trend rate | 6.00% | 6.10% |
Employee Future Benefits - S151
Employee Future Benefits - Summary of Key Assumptions Used by to Determine Defined Benefit Obligation and Net Benefit Cost for Defined Benefit Pension Plans and Retiree Welfare Plans (Parenthetical) (Detail) | Dec. 31, 2017 | Dec. 31, 2016 |
Defined benefit cost [Member] | 2032 [Member] | Top of range [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Health care cost trend rate | 8.80% | 9.00% |
Defined benefit cost [Member] | 2032 [Member] | Bottom of range [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Health care cost trend rate | 5.00% | 5.00% |
Defined benefit cost [Member] | Canadian plans [Member] | 2026 [Member] | Top of range [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Health care cost trend rate | 6.00% | 6.10% |
Defined benefit cost [Member] | Canadian plans [Member] | 2026 [Member] | Bottom of range [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Health care cost trend rate | 4.80% | 4.80% |
Retiree welfare plans [Member] | 2032 [Member] | Top of range [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Health care cost trend rate | 8.50% | 8.80% |
Retiree welfare plans [Member] | 2032 [Member] | Bottom of range [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Health care cost trend rate | 5.00% | 5.00% |
Retiree welfare plans [Member] | Canadian plans [Member] | 2026 [Member] | Top of range [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Health care cost trend rate | 5.90% | 6.00% |
Retiree welfare plans [Member] | Canadian plans [Member] | 2026 [Member] | Bottom of range [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Health care cost trend rate | 4.80% | 4.80% |
Employee Future Benefits - S152
Employee Future Benefits - Summary of Life Expectancies Underlying Values of Obligations in Defined Benefit Pension and Retiree Welfare Plans (Detail) | Dec. 31, 2017yr |
U.S [Member] | Life expectancy (in years) for those currently age 65 [Member] | Male [Member] | |
Disclosure of defined benefit plans [Line Items] | |
Life expectancy (in years) | 22.4 |
U.S [Member] | Life expectancy (in years) for those currently age 65 [Member] | Female [Member] | |
Disclosure of defined benefit plans [Line Items] | |
Life expectancy (in years) | 23.9 |
U.S [Member] | Life expectancy (in years) at age 65 for those currently age 45 [Member] | Male [Member] | |
Disclosure of defined benefit plans [Line Items] | |
Life expectancy (in years) | 24 |
U.S [Member] | Life expectancy (in years) at age 65 for those currently age 45 [Member] | Female [Member] | |
Disclosure of defined benefit plans [Line Items] | |
Life expectancy (in years) | 25.5 |
Canada [Member] | Life expectancy (in years) for those currently age 65 [Member] | Male [Member] | |
Disclosure of defined benefit plans [Line Items] | |
Life expectancy (in years) | 22.8 |
Canada [Member] | Life expectancy (in years) for those currently age 65 [Member] | Female [Member] | |
Disclosure of defined benefit plans [Line Items] | |
Life expectancy (in years) | 24.7 |
Canada [Member] | Life expectancy (in years) at age 65 for those currently age 45 [Member] | Male [Member] | |
Disclosure of defined benefit plans [Line Items] | |
Life expectancy (in years) | 23.8 |
Canada [Member] | Life expectancy (in years) at age 65 for those currently age 45 [Member] | Female [Member] | |
Disclosure of defined benefit plans [Line Items] | |
Life expectancy (in years) | 25.6 |
Employee Future Benefits - S153
Employee Future Benefits - Summary of Potential Impact on Obligations Arising From Changes in Key Assumptions (Detail) CAD in Millions | Dec. 31, 2017CAD |
Actuarial assumption of discount rates [Member] | Pension plans [Member] | |
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | |
Impact of increase in actuarial assumption | CAD (451) |
Impact of decrease in actuarial assumption | 536 |
Actuarial assumption of discount rates [Member] | Retiree welfare plans [Member] | |
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | |
Impact of increase in actuarial assumption | (67) |
Impact of decrease in actuarial assumption | 82 |
Actuarial assumption of medical cost trend rates [Member] | Retiree welfare plans [Member] | |
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | |
Impact of increase in actuarial assumption | 24 |
Impact of decrease in actuarial assumption | (21) |
Actuarial assumption of decrease in inflation rates [Member] | Pension plans [Member] | |
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | |
Impact of decrease in actuarial assumption | 119 |
Actuarial assumption of decrease in inflation rates [Member] | Retiree welfare plans [Member] | |
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | |
Impact of decrease in actuarial assumption | CAD 16 |
Employee Future Benefits - S154
Employee Future Benefits - Summary of Potential Impact on Obligations Arising From Changes in Key Assumptions (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
U.S [Member] | |
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | |
Decrease in mortality rates | 10.00% |
Canada [Member] | |
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | |
Decrease in mortality rates | 10.00% |
Male [Member] | U.S [Member] | |
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | |
Increase in life expectancy due to decrease in mortality rate | 10 months 25 days |
Male [Member] | Canada [Member] | |
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | |
Increase in life expectancy due to decrease in mortality rate | 9 months 18 days |
Female [Member] | U.S [Member] | |
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | |
Increase in life expectancy due to decrease in mortality rate | 10 months 25 days |
Female [Member] | Canada [Member] | |
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | |
Increase in life expectancy due to decrease in mortality rate | 9 months 18 days |
Pension plans [Member] | Actuarial assumption of discount rates [Member] | |
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | |
Percentage of reasonably possible increase in actuarial assumption | 1.00% |
Percentage of reasonably possible decrease in actuarial assumption | 1.00% |
Pension plans [Member] | Actuarial assumption of medical cost trend rates [Member] | |
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | |
Percentage of reasonably possible increase in actuarial assumption | 1.00% |
Percentage of reasonably possible decrease in actuarial assumption | 1.00% |
Retiree welfare plans [Member] | Actuarial assumption of discount rates [Member] | |
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | |
Percentage of reasonably possible increase in actuarial assumption | 1.00% |
Percentage of reasonably possible decrease in actuarial assumption | 1.00% |
Retiree welfare plans [Member] | Actuarial assumption of medical cost trend rates [Member] | |
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | |
Percentage of reasonably possible increase in actuarial assumption | 1.00% |
Percentage of reasonably possible decrease in actuarial assumption | 1.00% |
Employee Future Benefits - S155
Employee Future Benefits - Summary of Weighted Average Duration of the Defined Benefit Obligations (Detail) - yr | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Pension plans [Member] | U.S. plans [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Weighted average duration (in years) of the defined benefit obligations | 9.5 | 9.2 |
Pension plans [Member] | Canadian plans [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Weighted average duration (in years) of the defined benefit obligations | 12.8 | 12.7 |
Retiree welfare plans [Member] | U.S. plans [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Weighted average duration (in years) of the defined benefit obligations | 9.8 | 9.1 |
Retiree welfare plans [Member] | Canadian plans [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Weighted average duration (in years) of the defined benefit obligations | 14.2 | 14.2 |
Employee Future Benefits - S156
Employee Future Benefits - Summary of Cash Payments (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Pension plans [Member] | ||
Disclosure of net defined benefit liability (asset) [Line Items] | ||
Cash payment for future benefit plans | CAD 160 | CAD 175 |
Pension plans [Member] | Defined benefit plans [Member] | ||
Disclosure of net defined benefit liability (asset) [Line Items] | ||
Cash payment for future benefit plans | 85 | 106 |
Pension plans [Member] | Defined contribution plans [Member] | ||
Disclosure of net defined benefit liability (asset) [Line Items] | ||
Cash payment for future benefit plans | 75 | CAD 69 |
Retiree welfare plans [Member] | ||
Disclosure of net defined benefit liability (asset) [Line Items] | ||
Cash payment for future benefit plans | 12 | |
Retiree welfare plans [Member] | Defined benefit plans [Member] | ||
Disclosure of net defined benefit liability (asset) [Line Items] | ||
Cash payment for future benefit plans | CAD 12 |
Interests in Structured Enti157
Interests in Structured Entities - Additional Information (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of unconsolidated structured entities [Line Items] | |||
Investment in startup capital of mutual funds | CAD 1,918 | CAD 1,903 | |
Retail mutual fund assets under management | 195,472 | CAD 169,919 | |
Hancock Victoria Plantations Holdings PTY Limited [Member] | |||
Disclosure of unconsolidated structured entities [Line Items] | |||
Consolidated timber assets | CAD 884 | CAD 920 |
Interests in Structured Enti158
Interests in Structured Entities - Schedule Investment and Maximum Exposure to Loss Related to Significant Unconsolidated Structured Entities (Detail) - Unconsolidated structured entities [Member] - Investment SEs [Member] - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of unconsolidated structured entities [Line Items] | ||
Company's investment | CAD 4,370 | CAD 4,432 |
Company's maximum exposure to loss | 4,420 | 4,445 |
Leveraged leases [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Company's investment | 3,273 | 3,369 |
Company's maximum exposure to loss | 3,273 | 3,369 |
Timberland companies [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Company's investment | 736 | 736 |
Company's maximum exposure to loss | 786 | 749 |
Real estate companies [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Company's investment | 361 | 327 |
Company's maximum exposure to loss | CAD 361 | CAD 327 |
Interests in Structured Enti159
Interests in Structured Entities - Schedule of Interests and Maximum Exposure to Loss From Significant Unconsolidated Financing Structured Entities (Detail) - Unconsolidated structured entities [Member] - Financing SEs [Member] - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of unconsolidated structured entities [Line Items] | ||
Company's interests | CAD 1,835 | CAD 1,876 |
Manulife Finance (Delaware), L.P.[Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Company's interests | 835 | 876 |
Manulife Financial Capital Trust II [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Company's interests | CAD 1,000 | CAD 1,000 |
Interests in Structured Enti160
Interests in Structured Entities - Schedule of Securitized Holdings by the Type and Asset Quality (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of unconsolidated structured entities [Line Items] | ||
Securitized holdings | CAD 3,576 | CAD 3,513 |
AAA [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Securitized holdings | 2,503 | 2,269 |
AA [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Securitized holdings | 401 | 393 |
A [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Securitized holdings | 504 | 592 |
BBB [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Securitized holdings | 142 | 221 |
BB and below [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Securitized holdings | 26 | CAD 38 |
CMBS [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Securitized holdings | 1,418 | |
CMBS [Member] | AAA [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Securitized holdings | 1,390 | |
CMBS [Member] | A [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Securitized holdings | 16 | |
CMBS [Member] | BB and below [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Securitized holdings | 12 | |
RMBS [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Securitized holdings | 45 | |
RMBS [Member] | AAA [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Securitized holdings | 45 | |
ABS [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Securitized holdings | 2,113 | |
ABS [Member] | AAA [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Securitized holdings | 1,068 | |
ABS [Member] | AA [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Securitized holdings | 401 | |
ABS [Member] | A [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Securitized holdings | 488 | |
ABS [Member] | BBB [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Securitized holdings | 142 | |
ABS [Member] | BB and below [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Securitized holdings | CAD 14 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - CAD | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 20, 2015 | Jun. 01, 2015 | Mar. 10, 2015 | Dec. 01, 2014 | Feb. 21, 2014 | Nov. 29, 2013 | Feb. 25, 2013 |
Disclosure of commitments and contingencies [Line Items] | |||||||||
Investment commitments outstanding | CAD 8,235,000,000 | CAD 7,505,000,000 | |||||||
Letters of credit outstanding | 77,000,000 | 83,000,000 | |||||||
Aggregate future minimum lease payments | 838,000,000 | 966,000,000 | |||||||
Debt outstanding | 4,785,000,000 | 5,696,000,000 | |||||||
Variable Surplus Note [Member] | |||||||||
Disclosure of commitments and contingencies [Line Items] | |||||||||
Debt outstanding | 0 | 0 | |||||||
The Manufacturers Life Insurance Company [Member] | |||||||||
Disclosure of commitments and contingencies [Line Items] | |||||||||
Subordinate guaranteed issued | CAD 1,000,000,000 | CAD 350,000,000 | CAD 750,000,000 | CAD 500,000,000 | CAD 500,000,000 | CAD 250,000,000 | CAD 200,000,000 | ||
The Manufacturers Life Insurance Company [Member] | Subordinated debentures due on December 15, 2041 [Member] | |||||||||
Disclosure of commitments and contingencies [Line Items] | |||||||||
Guaranteed payment of amounts on subordinated debenture | 650,000,000 | ||||||||
Mature in 30 Days [Member] | |||||||||
Disclosure of commitments and contingencies [Line Items] | |||||||||
Investment commitments outstanding | 682,000,000 | 268,000,000 | |||||||
Less than 1 year [Member] | |||||||||
Disclosure of commitments and contingencies [Line Items] | |||||||||
Investment commitments outstanding | 2,177,000,000 | 2,665,000,000 | |||||||
Aggregate future minimum lease payments | 126,000,000 | ||||||||
Debt outstanding | 401,000,000 | 7,000,000 | |||||||
Mature after One year [Member] | |||||||||
Disclosure of commitments and contingencies [Line Items] | |||||||||
Investment commitments outstanding | CAD 5,376,000,000 | CAD 4,572,000,000 |
Commitments and Contingencie162
Commitments and Contingencies - Summary of Condensed Consolidated Statements of Income Information for MFC and MFLP (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Consolidated Statements of Income Information [Line Items] | ||
Total revenue | CAD 58,323 | CAD 53,337 |
Net income (loss) attributed to shareholders | 2,104 | 2,929 |
MFC [Member] | ||
Condensed Consolidated Statements of Income Information [Line Items] | ||
Total revenue | 182 | 518 |
Net income (loss) attributed to shareholders | 2,104 | 2,929 |
MLI consolidated [Member] | ||
Condensed Consolidated Statements of Income Information [Line Items] | ||
Total revenue | 58,445 | 53,219 |
Net income (loss) attributed to shareholders | 2,467 | 2,916 |
Other subsidiaries of MFC on a combined basis [Member] | ||
Condensed Consolidated Statements of Income Information [Line Items] | ||
Total revenue | 270 | 377 |
Net income (loss) attributed to shareholders | (257) | (359) |
Consolidating adjustments [Member] | ||
Condensed Consolidated Statements of Income Information [Line Items] | ||
Total revenue | (574) | (777) |
Net income (loss) attributed to shareholders | (2,210) | (2,557) |
Manulife Finance (Delaware), L.P.[Member] | ||
Condensed Consolidated Statements of Income Information [Line Items] | ||
Total revenue | 29 | 44 |
Net income (loss) attributed to shareholders | CAD 6 | CAD (1) |
Commitments and Contingencie163
Commitments and Contingencies - Summary of Condensed Consolidated Statements of Financial Position for MFC and MFLP (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Condensed Consolidated Statements of Financial Position [Line Items] | |||
Invested assets | CAD 334,222 | CAD 321,869 | |
Total other assets | 71,004 | 83,635 | |
Segregated funds net assets | 324,307 | 315,177 | |
Insurance contract liabilities | 304,605 | 297,505 | CAD 285,288 |
Investment contract liabilities | 3,126 | 3,275 | |
Segregated funds net liabilities | 324,307 | 315,177 | |
Total other liabilities | 55,332 | 61,901 | |
MFC [Member] | |||
Condensed Consolidated Statements of Financial Position [Line Items] | |||
Invested assets | 21 | 161 | |
Total other assets | 48,688 | 48,073 | |
Total other liabilities | 7,696 | 6,402 | |
MLI consolidated [Member] | |||
Condensed Consolidated Statements of Financial Position [Line Items] | |||
Invested assets | 334,191 | 321,698 | |
Total other assets | 71,180 | 83,607 | |
Segregated funds net assets | 324,307 | 315,177 | |
Insurance contract liabilities | 304,605 | 297,505 | |
Investment contract liabilities | 3,126 | 3,275 | |
Segregated funds net liabilities | 324,307 | 315,177 | |
Total other liabilities | 48,145 | 55,808 | |
Other subsidiaries of MFC on a combined basis [Member] | |||
Condensed Consolidated Statements of Financial Position [Line Items] | |||
Invested assets | 10 | 10 | |
Total other assets | 4 | 4 | |
Consolidating adjustments [Member] | |||
Condensed Consolidated Statements of Financial Position [Line Items] | |||
Total other assets | (48,868) | (48,049) | |
Total other liabilities | (509) | (309) | |
Manulife Finance (Delaware), L.P.[Member] | |||
Condensed Consolidated Statements of Financial Position [Line Items] | |||
Invested assets | 5 | 6 | |
Total other assets | 1,033 | 1,085 | |
Total other liabilities | CAD 831 | CAD 882 |
Commitments and Contingencie164
Commitments and Contingencies - Schedule of Pledged Assets (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Debt securities [Member] | ||
Disclosure Of Pledged Assets [Line Items] | ||
Pledged amount | CAD 3,818 | CAD 5,345 |
Debt securities [Member] | Derivatives [Member] | ||
Disclosure Of Pledged Assets [Line Items] | ||
Pledged amount | 3,189 | 4,678 |
Debt securities [Member] | Regulatory requirements [Member] | ||
Disclosure Of Pledged Assets [Line Items] | ||
Pledged amount | 398 | 409 |
Debt securities [Member] | Repurchase agreements [Member] | ||
Disclosure Of Pledged Assets [Line Items] | ||
Pledged amount | 228 | 255 |
Debt securities [Member] | Other [Member] | ||
Disclosure Of Pledged Assets [Line Items] | ||
Pledged amount | 3 | 3 |
Other [Member] | ||
Disclosure Of Pledged Assets [Line Items] | ||
Pledged amount | 815 | 837 |
Other [Member] | Derivatives [Member] | ||
Disclosure Of Pledged Assets [Line Items] | ||
Pledged amount | 44 | 99 |
Other [Member] | Regulatory requirements [Member] | ||
Disclosure Of Pledged Assets [Line Items] | ||
Pledged amount | 86 | 78 |
Other [Member] | Real estate [Member] | ||
Disclosure Of Pledged Assets [Line Items] | ||
Pledged amount | 2 | 22 |
Other [Member] | Non-registered retirement plans in trust [Member] | ||
Disclosure Of Pledged Assets [Line Items] | ||
Pledged amount | 412 | 464 |
Other [Member] | Other [Member] | ||
Disclosure Of Pledged Assets [Line Items] | ||
Pledged amount | CAD 271 | CAD 174 |
Segmented Information - Summary
Segmented Information - Summary of Results by Segments (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of operating segments [line items] | ||
Net premium income | CAD 28,210 | CAD 27,632 |
Net investment income | 19,367 | 14,524 |
Other revenue | 10,746 | 11,181 |
Total revenue | 58,323 | 53,337 |
Net benefits and claims | 39,301 | 34,134 |
Interest expense | 1,139 | 1,013 |
Other expenses | 15,382 | 14,861 |
Total contract benefits and expenses | 55,822 | 50,008 |
Income (loss) before income taxes | 2,501 | 3,329 |
Income tax recovery (expense) | (239) | (196) |
Net income (loss) | 2,262 | 3,133 |
Non-controlling interests | 194 | 143 |
Participating policyholders | (36) | 61 |
Net income (loss) attributed to shareholders | 2,104 | 2,929 |
Total assets | 729,533 | 720,681 |
Life and health insurance [Member] | ||
Disclosure of operating segments [line items] | ||
Net premium income | 24,355 | 23,268 |
Net benefits and claims | 34,530 | 27,277 |
Annuities and pensions [Member] | ||
Disclosure of operating segments [line items] | ||
Net premium income | 3,855 | 4,364 |
Net benefits and claims | 4,771 | 6,857 |
Operating segments [Member] | Asia Division [Member] | ||
Disclosure of operating segments [line items] | ||
Net premium income | 15,713 | 15,585 |
Net investment income | 4,080 | 2,143 |
Other revenue | 1,739 | 1,566 |
Total revenue | 21,532 | 19,294 |
Net benefits and claims | 14,012 | 13,348 |
Interest expense | 164 | 146 |
Other expenses | 4,937 | 4,241 |
Total contract benefits and expenses | 19,113 | 17,735 |
Income (loss) before income taxes | 2,419 | 1,559 |
Income tax recovery (expense) | (403) | (243) |
Net income (loss) | 2,016 | 1,316 |
Non-controlling interests | 197 | 115 |
Participating policyholders | (30) | 60 |
Net income (loss) attributed to shareholders | 1,849 | 1,141 |
Total assets | 105,233 | 92,843 |
Operating segments [Member] | Asia Division [Member] | Life and health insurance [Member] | ||
Disclosure of operating segments [line items] | ||
Net premium income | 13,145 | 12,111 |
Net benefits and claims | 11,961 | 10,435 |
Operating segments [Member] | Asia Division [Member] | Annuities and pensions [Member] | ||
Disclosure of operating segments [line items] | ||
Net premium income | 2,568 | 3,474 |
Net benefits and claims | 2,051 | 2,913 |
Operating segments [Member] | Canadian Division [Member] | ||
Disclosure of operating segments [line items] | ||
Net premium income | 4,765 | 4,972 |
Net investment income | 4,573 | 4,255 |
Other revenue | 3,517 | 3,480 |
Total revenue | 12,855 | 12,707 |
Net benefits and claims | 7,457 | 6,386 |
Interest expense | 307 | 305 |
Other expenses | 4,435 | 4,279 |
Total contract benefits and expenses | 12,199 | 10,970 |
Income (loss) before income taxes | 656 | 1,737 |
Income tax recovery (expense) | 95 | (250) |
Net income (loss) | 751 | 1,487 |
Participating policyholders | (6) | 1 |
Net income (loss) attributed to shareholders | 757 | 1,486 |
Total assets | 220,755 | 214,820 |
Operating segments [Member] | Canadian Division [Member] | Life and health insurance [Member] | ||
Disclosure of operating segments [line items] | ||
Net premium income | 4,322 | 4,366 |
Net benefits and claims | 5,644 | 5,207 |
Operating segments [Member] | Canadian Division [Member] | Annuities and pensions [Member] | ||
Disclosure of operating segments [line items] | ||
Net premium income | 443 | 606 |
Net benefits and claims | 1,813 | 1,179 |
Operating segments [Member] | US Division [Member] | ||
Disclosure of operating segments [line items] | ||
Net premium income | 7,622 | 6,987 |
Net investment income | 10,649 | 7,980 |
Other revenue | 6,166 | 5,591 |
Total revenue | 24,437 | 20,558 |
Net benefits and claims | 17,371 | 13,594 |
Interest expense | 37 | 45 |
Other expenses | 6,050 | 5,619 |
Total contract benefits and expenses | 23,458 | 19,258 |
Income (loss) before income taxes | 979 | 1,300 |
Income tax recovery (expense) | (1,275) | (166) |
Net income (loss) | (296) | 1,134 |
Net income (loss) attributed to shareholders | (296) | 1,134 |
Total assets | 383,528 | 386,619 |
Operating segments [Member] | US Division [Member] | Life and health insurance [Member] | ||
Disclosure of operating segments [line items] | ||
Net premium income | 6,778 | 6,703 |
Net benefits and claims | 16,464 | 10,829 |
Operating segments [Member] | US Division [Member] | Annuities and pensions [Member] | ||
Disclosure of operating segments [line items] | ||
Net premium income | 844 | 284 |
Net benefits and claims | 907 | 2,765 |
Corporate and other [Member] | ||
Disclosure of operating segments [line items] | ||
Net premium income | 110 | 88 |
Net investment income | 65 | 146 |
Other revenue | (676) | 544 |
Total revenue | (501) | 778 |
Net benefits and claims | 461 | 806 |
Interest expense | 631 | 517 |
Other expenses | (40) | 722 |
Total contract benefits and expenses | 1,052 | 2,045 |
Income (loss) before income taxes | (1,553) | (1,267) |
Income tax recovery (expense) | 1,344 | 463 |
Net income (loss) | (209) | (804) |
Non-controlling interests | (3) | 28 |
Net income (loss) attributed to shareholders | (206) | (832) |
Total assets | 20,017 | 26,399 |
Corporate and other [Member] | Life and health insurance [Member] | ||
Disclosure of operating segments [line items] | ||
Net premium income | 110 | 88 |
Net benefits and claims | CAD 461 | CAD 806 |
Segmented Information - Summ166
Segmented Information - Summary of Results by Geographic Location (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of geographical areas [line items] | ||
Net premium income | CAD 28,210 | CAD 27,632 |
Net investment income | 19,367 | 14,524 |
Other revenue | 10,746 | 11,181 |
Total revenue | 58,323 | 53,337 |
Life and health insurance [Member] | ||
Disclosure of geographical areas [line items] | ||
Net premium income | 24,355 | 23,268 |
Annuities and pensions [Member] | ||
Disclosure of geographical areas [line items] | ||
Net premium income | 3,855 | 4,364 |
Asia [Member] | ||
Disclosure of geographical areas [line items] | ||
Net premium income | 15,783 | 15,658 |
Net investment income | 4,258 | 2,368 |
Other revenue | 1,632 | 1,608 |
Total revenue | 21,673 | 19,634 |
Asia [Member] | Life and health insurance [Member] | ||
Disclosure of geographical areas [line items] | ||
Net premium income | 13,215 | 12,184 |
Asia [Member] | Annuities and pensions [Member] | ||
Disclosure of geographical areas [line items] | ||
Net premium income | 2,568 | 3,474 |
Canada [Member] | ||
Disclosure of geographical areas [line items] | ||
Net premium income | 4,337 | 4,515 |
Net investment income | 4,642 | 4,096 |
Other revenue | 3,187 | 3,443 |
Total revenue | 12,166 | 12,054 |
Canada [Member] | Life and health insurance [Member] | ||
Disclosure of geographical areas [line items] | ||
Net premium income | 3,894 | 3,909 |
Canada [Member] | Annuities and pensions [Member] | ||
Disclosure of geographical areas [line items] | ||
Net premium income | 443 | 606 |
U.S [Member] | ||
Disclosure of geographical areas [line items] | ||
Net premium income | 7,624 | 6,989 |
Net investment income | 10,407 | 7,880 |
Other revenue | 5,911 | 6,105 |
Total revenue | 23,942 | 20,974 |
U.S [Member] | Life and health insurance [Member] | ||
Disclosure of geographical areas [line items] | ||
Net premium income | 6,780 | 6,705 |
U.S [Member] | Annuities and pensions [Member] | ||
Disclosure of geographical areas [line items] | ||
Net premium income | 844 | 284 |
Other [Member] | ||
Disclosure of geographical areas [line items] | ||
Net premium income | 466 | 470 |
Net investment income | 60 | 180 |
Other revenue | 16 | 25 |
Total revenue | 542 | 675 |
Other [Member] | Life and health insurance [Member] | ||
Disclosure of geographical areas [line items] | ||
Net premium income | CAD 466 | CAD 470 |
Related Parties - Summary of Co
Related Parties - Summary of Compensation of Key Management Personnel (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Compensation Of Key Management Personnel [abstract] | ||
Short-term employee benefits | CAD 44 | CAD 33 |
Post-employment benefits | 3 | 3 |
Share-based payments | 43 | 44 |
Termination benefits | 6 | 4 |
Other long-term benefits | 2 | 3 |
Total | CAD 98 | CAD 87 |
Subsidiaries - Summary of Direc
Subsidiaries - Summary of Directly and Indirectly Held Major Operating Subsidiaries (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
The Manufacturers Life Insurance Company [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | The Manufacturers Life Insurance Company |
Address | Toronto, Canada |
Description | Leading Canadian-based financial services company that offers a diverse range of financial protection products and wealth management services |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
Manulife Holdings (Alberta) Limited [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Holdings (Alberta) Limited |
Address | Calgary, Canada |
Description | Holding company |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
John Hancock Financial Corporation [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | John Hancock Financial Corporation |
Address | Wilmington, Delaware, U.S.A. |
Description | Holding company |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
The Manufacturers Investment Corporation [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | The Manufacturers Investment Corporation |
Address | Michigan, U.S.A. |
Description | Holding company |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
John Hancock Reassurance Company Ltd. [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | John Hancock Reassurance Company Ltd. U.S.A. |
Address | Michigan, U.S.A. |
Description | Captive insurance subsidiary that provides life, annuity and long-term care reinsurance to affiliates |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
John Hancock Life Insurance Company (U.S.A.) [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | John Hancock Life Insurance Company (U.S.A.) |
Address | Michigan, U.S.A. |
Description | U.S. life insurance company licensed in all states, except New York |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
John Hancock Subsidiaries LLC [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | John Hancock Subsidiaries LLC |
Address | Wilmington, Delaware, U.S.A. |
Description | Holding company |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
John Hancock Financial Network, Inc. [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | John Hancock Financial Network, Inc. |
Address | Boston, Massachusetts, U.S.A. |
Description | Financial services distribution organization |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
John Hancock Advisers, LLC [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | John Hancock Advisers, LLC |
Address | Boston, Massachusetts, U.S.A. |
Description | Investment advisor |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
John Hancock Funds LLC [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | John Hancock Funds, LLC |
Address | Boston, Massachusetts, U.S.A. |
Description | Broker-dealer |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
Manulife Asset Management (US) LLC [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Asset Management (US) LLC |
Address | Wilmington, Delaware, U.S.A. |
Description | Asset management company |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
Hancock Natural Resource Group, Inc. [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Hancock Natural Resource Group, Inc. |
Address | Boston, Massachusetts, U.S.A. |
Description | Manager of globally diversified timberland and agricultural portfolios |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
John Hancock Life Insurance Company of New York [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | John Hancock Life Insurance Company of New York |
Address | New York, U.S.A. |
Description | U.S. life insurance company licensed in New York |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
John Hancock Investment Management Services, LLC [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | John Hancock Investment Management Services, LLC |
Address | Boston, Massachusetts, U.S.A. |
Description | Investment advisor |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
John Hancock Life & Health Insurance Company [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | John Hancock Life & Health Insurance Company |
Address | Boston, Massachusetts, U.S.A. |
Description | U.S. life insurance company licensed in all states |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
John Hancock Distributors, LLC [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | John Hancock Distributors LLC |
Address | Wilmington, Delaware, U.S.A. |
Description | Broker-dealer |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
John Hancock Insurance Agency, Inc. [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | John Hancock Insurance Agency, Inc. |
Address | Wilmington, Delaware, U.S.A. |
Description | Insurance agency |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
Manulife Reinsurance Limited [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Reinsurance Limited |
Address | Hamilton, Bermuda |
Description | Provides life and financial reinsurance to affiliates |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
Manulife Reinsurance (Bermuda) Limited [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Reinsurance (Bermuda) Limited |
Address | Hamilton, Bermuda |
Description | Provides life and annuity reinsurance to affiliates |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
Manulife Bank of Canada [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Bank of Canada |
Address | Waterloo, Canada |
Description | Provides integrated banking products and service options not available from an insurance company |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
Manulife Asset Management Holdings (Canada) Inc. [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Asset Management Holdings (Canada) Inc. |
Address | Toronto, Canada |
Description | Holding company |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
Manulife Asset Management Limited [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Asset Management Limited |
Address | Toronto, Canada |
Description | Provides investment counseling, portfolio and mutual fund management in Canada |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
First North American Insurance Company [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | First North American Insurance Company |
Address | Toronto, Canada |
Description | Property and casualty insurance company |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
NAL Resources Management Limited [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | NAL Resources Management Limited |
Address | Calgary, Canada |
Description | Management company for oil and gas properties |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
Manulife Resources Limited [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Resources Limited |
Address | Calgary, Canada |
Description | Holds oil and gas properties |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
Manulife Property Limited Partnership [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Property Limited Partnership |
Address | Toronto, Canada |
Description | Holds oil and gas royalties |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
Manulife Property Limited Partnership II [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Property Limited Partnership II |
Address | Toronto, Canada |
Description | Holds oil and gas royalties and foreign bonds and equities |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
Manulife Western Holdings Limited Partnership [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Western Holdings Limited Partnership |
Address | Calgary, Canada |
Description | Holds oil and gas properties |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
Manulife Securities Investment Services Inc. [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Securities Investment Services Inc. |
Address | Oakville, Canada |
Description | Mutual fund dealer for Canadian operations |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
Manulife Holdings (Bermuda) Limited [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Holdings (Bermuda) Limited |
Address | Hamilton, Bermuda |
Description | Holding company |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
Manufacturers P & C Limited [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manufacturers P & C Limited |
Address | St. Michael, Barbados |
Description | Provides property and casualty reinsurance |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
Manulife Financial Asia Limited [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Financial Asia Limited |
Address | Hong Kong, China |
Description | Holding company |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
Manulife (Cambodia) PLC [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife (Cambodia) PLC |
Address | Phnom Penh, Cambodia |
Description | Life insurance company |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
Manufacturers Life Reinsurance Limited [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manufacturers Life Reinsurance Limited |
Address | St. Michael, Barbados |
Description | Provides life and annuity reinsurance to affiliates |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
Manulife (Vietnam) Limited [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife (Vietnam) Limited |
Address | Ho Chi Minh City, Vietnam |
Description | Life insurance company |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
Manulife Asset Management (Vietnam) Company Limited [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Asset Management (Vietnam) pany Limited |
Address | Ho Chi Minh City, Vietnam |
Description | Fund management company |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
Manulife International Holdings Limited [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife International Holdings Limited |
Address | Hong Kong, China |
Description | Holding company |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
Manulife (International) Limited [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife (International) Limited |
Address | Hong Kong, China |
Description | Life insurance company |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
Manulife-Sinochem Life Insurance Co. Ltd. [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife-Sinochem Life Insurance Co. Ltd. (51%) |
Address | Shanghai, China |
Description | Life insurance company |
Percentage of ownership interest in subsidiary | 51.00% |
Percentage of voting rights held in subsidiary | 51.00% |
Manulife Asset Management International Holdings Limited [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Asset Management International Holdings Limited |
Address | Hong Kong, China |
Description | Holding company |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
Manulife Asset Management (Hong Kong) Limited [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Asset Management (Hong Kong) Limited |
Address | Hong Kong, China |
Description | Investment management and advisory company marketing mutual funds |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
Manulife Asset Management (Taiwan) Co., Ltd. [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Asset Management (Taiwan) Co.,Ltd. |
Address | Taipei, Taiwan |
Description | Asset management company |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
Manulife Life Insurance Company [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Life Insurance Company |
Address | Tokyo, Japan |
Description | Life insurance company |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
Manulife Asset Management (Japan) Limited [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Asset Management (Japan) ited |
Address | Tokyo, Japan |
Description | Investment management and advisory company and mutual fund business |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
Manulife Insurance (Thailand) Public Company Limited [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Insurance (Thailand) Public pany Limited (92.1%)(1) |
Address | Bangkok, Thailand |
Description | Life insurance company |
Percentage of ownership interest in subsidiary | 92.10% |
Percentage of voting rights held in subsidiary | 98.10% |
Manulife Asset Management (Thailand) Company Limited [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Asset Management (Thailand) pany Limited (95.3%)(1) |
Address | Bangkok, Thailand |
Description | Investment management company |
Percentage of ownership interest in subsidiary | 95.30% |
Percentage of voting rights held in subsidiary | 98.90% |
Manulife Holdings Berhad [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Holdings Berhad (59.5%) |
Address | Kuala Lumpur, Malaysia |
Description | Holding company |
Percentage of ownership interest in subsidiary | 59.50% |
Percentage of voting rights held in subsidiary | 59.50% |
Manulife Insurance Berhad [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Insurance Berhad (59.5%) |
Address | Kuala Lumpur, Malaysia |
Description | Life insurance company |
Percentage of ownership interest in subsidiary | 59.50% |
Percentage of voting rights held in subsidiary | 59.50% |
Manulife Asset Management Services Berhad [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Asset Management Services had (59.5%) |
Address | Kuala Lumpur, Malaysia |
Description | Asset management company |
Percentage of ownership interest in subsidiary | 59.50% |
Percentage of voting rights held in subsidiary | 59.50% |
Manulife (Singapore) Pte. Ltd. [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife (Singapore) Pte. Ltd. |
Address | Singapore |
Description | Life insurance company |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
Manulife Asset Management (Singapore) Pte. Ltd. [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Asset Management (Singapore) Pte. Ltd. |
Address | Singapore |
Description | Asset management company |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
The Manufacturers Life Insurance Co. (Phils.) Inc. [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | The Manufacturers Life Insurance Co. (Phils.), Inc. |
Address | Makati City, Philippines |
Description | Life insurance company |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
Manulife Chinabank Life Assurance Corporation [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Chinabank Life Assurance Corporation (60%) |
Address | Makati City, Philippines |
Description | Life insurance company |
Percentage of ownership interest in subsidiary | 60.00% |
Percentage of voting rights held in subsidiary | 60.00% |
PT Asuransi Jiwa Manulife Indonesia [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | PT Asuransi Jiwa Manulife Indonesia |
Address | Jakarta, Indonesia |
Description | Life insurance company |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
PT Manulife Aset Manajemen Indonesia [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | PT Manulife Aset Manajemen Indonesia |
Address | Jakarta, Indonesia |
Description | Investment management company marketing mutual funds and discretionary funds |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
Manulife Asset Management (Europe) Limited [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Asset Management (Europe) Limited |
Address | London, England |
Description | Investment management company for Manulife Financial's international funds |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
Manulife Assurance Company of Canada [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Assurance Company of Canada |
Address | Toronto, Canada |
Description | Life insurance company |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
EIS Services Bermuda Limited [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | EIS Services (Bermuda) Limited |
Address | Hamilton, Bermuda |
Description | Investment holding company |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
Berkshire Insurance Services Inc [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Berkshire Insurance Services Inc. |
Address | Toronto, Canada |
Description | Investment holding company |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
JH Investments (Delaware) LLC [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | JH Investments (Delaware) LLC |
Address | Boston, Massachusetts, U.S.A. |
Description | Investment holding company |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
Manulife Securities Incorporated [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Securities Incorporated |
Address | Oakville, Canada |
Description | Investment dealer |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
Manulife Asset Management (North America) Limited [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Asset Management (North rica) Limited |
Address | Toronto, Canada |
Description | Investment advisor |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
Regional Power Inc. [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Regional Power Inc. |
Address | Mississauga, Canada |
Description | Developer and operator of hydro-electric power projects |
Percentage of ownership interest in subsidiary | 100.00% |
Percentage of voting rights held in subsidiary | 100.00% |
Segregated Funds - Summary of C
Segregated Funds - Summary of Composition of Net Assets by Categories of Segregated Funds (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Bottom of range [Member] | Money market funds [Member] | ||
Disclosure of composition of net assets by categories of segregated funds [line items] | ||
Type of fund | 2.00% | 2.00% |
Bottom of range [Member] | Fixed income funds [Member] | ||
Disclosure of composition of net assets by categories of segregated funds [line items] | ||
Type of fund | 14.00% | 14.00% |
Bottom of range [Member] | Balanced funds [Member] | ||
Disclosure of composition of net assets by categories of segregated funds [line items] | ||
Type of fund | 22.00% | 22.00% |
Bottom of range [Member] | Equity funds [Member] | ||
Disclosure of composition of net assets by categories of segregated funds [line items] | ||
Type of fund | 55.00% | 59.00% |
Top of range [Member] | Money market funds [Member] | ||
Disclosure of composition of net assets by categories of segregated funds [line items] | ||
Type of fund | 3.00% | 3.00% |
Top of range [Member] | Fixed income funds [Member] | ||
Disclosure of composition of net assets by categories of segregated funds [line items] | ||
Type of fund | 15.00% | 15.00% |
Top of range [Member] | Balanced funds [Member] | ||
Disclosure of composition of net assets by categories of segregated funds [line items] | ||
Type of fund | 29.00% | 24.00% |
Top of range [Member] | Equity funds [Member] | ||
Disclosure of composition of net assets by categories of segregated funds [line items] | ||
Type of fund | 60.00% | 61.00% |
Segregated Funds - Summary o170
Segregated Funds - Summary of Composition of Segregated Funds Net Assets (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of Composition Of Segregated Fund [line items] | |||
Total segregated funds net assets | CAD 324,808 | CAD 315,708 | CAD 313,747 |
Composition of segregated funds net assets | |||
Held by policyholders | 324,307 | 315,177 | |
Held by the Company | 501 | 531 | |
Cash and short-term securities [Member] | |||
Disclosure of Composition Of Segregated Fund [line items] | |||
Total segregated funds net assets | 4,756 | 4,524 | |
Debt securities [Member] | |||
Disclosure of Composition Of Segregated Fund [line items] | |||
Total segregated funds net assets | 15,472 | 15,651 | |
Equity [Member] | |||
Disclosure of Composition Of Segregated Fund [line items] | |||
Total segregated funds net assets | 12,624 | 12,458 | |
Mutual funds [Member] | |||
Disclosure of Composition Of Segregated Fund [line items] | |||
Total segregated funds net assets | 288,007 | 278,966 | |
Other investments [Member] | |||
Disclosure of Composition Of Segregated Fund [line items] | |||
Total segregated funds net assets | 4,514 | 4,552 | |
Accrued investment income [Member] | |||
Disclosure of Composition Of Segregated Fund [line items] | |||
Total segregated funds net assets | 201 | 201 | |
Other assets and liabilities, net [Member] | |||
Disclosure of Composition Of Segregated Fund [line items] | |||
Total segregated funds net assets | CAD (766) | CAD (644) |
Segregated Funds - Summary o171
Segregated Funds - Summary of Changes in Segregated Funds Net Assets (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Net policyholder cash flow | ||
Deposits from policyholders | CAD 34,776 | CAD 33,130 |
Net transfers to general fund | (1,734) | (878) |
Payments to policyholders | (45,970) | (39,731) |
Net policyholder cash flow | (12,928) | (7,479) |
Investment related | ||
Interest and dividends | 16,930 | 15,736 |
Net realized and unrealized investment gains | 24,384 | 4,097 |
Investment related | 41,314 | 19,833 |
Other | ||
Management and administration fees | (4,496) | (4,386) |
Impact of changes in foreign exchange rates | (14,790) | (6,007) |
Other | (19,286) | (10,393) |
Net additions | 9,100 | 1,961 |
Segregated funds net assets, beginning of year | 315,708 | 313,747 |
Segregated funds net assets, end of year | CAD 324,808 | CAD 315,708 |
Information Provided in Conn172
Information Provided in Connection with Investments in Deferred Annuity Contracts and SignatureNotes Issued or Assumed by John Hancock Life Insurance Company (U.S.A.) - Summary of Condensed Consolidated Statement of Financial Position (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | |||
Invested assets | CAD 334,222 | CAD 321,869 | |
Reinsurance assets | 30,359 | 34,952 | |
Other assets | 40,645 | 48,683 | |
Segregated funds net assets | 324,307 | 315,177 | |
Total assets | 729,533 | 720,681 | |
Liabilities and Equity | |||
Insurance contract liabilities | 304,605 | 297,505 | CAD 285,288 |
Investment contract liabilities | 3,126 | 3,275 | |
Other liabilities | 42,160 | 49,025 | |
Long-term debt | 4,785 | 5,696 | |
Capital instruments | 8,387 | 7,180 | |
Segregated funds net liabilities | 324,307 | 315,177 | |
Shareholders' equity | 41,013 | 41,832 | |
Participating policyholders' equity | 221 | 248 | |
Non-controlling interests | 929 | 743 | |
Total liabilities and equity | 729,533 | 720,681 | |
MFC (Guarantor) [Member] | |||
Assets | |||
Invested assets | 21 | 161 | |
Investments in unconsolidated subsidiaries | 48,374 | 47,758 | |
Other assets | 314 | 315 | |
Total assets | 48,709 | 48,234 | |
Liabilities and Equity | |||
Other liabilities | 297 | 252 | |
Long-term debt | 4,784 | 5,689 | |
Capital instruments | 2,615 | 461 | |
Shareholders' equity | 41,013 | 41,832 | |
Total liabilities and equity | 48,709 | 48,234 | |
JHUSA (Issuer) [Member] | |||
Assets | |||
Invested assets | 108,144 | 109,063 | |
Investments in unconsolidated subsidiaries | 6,509 | 6,457 | |
Reinsurance assets | 49,927 | 51,537 | |
Other assets | 18,678 | 28,718 | |
Segregated funds net assets | 176,139 | 174,917 | |
Total assets | 359,397 | 370,692 | |
Liabilities and Equity | |||
Insurance contract liabilities | 147,155 | 147,504 | |
Investment contract liabilities | 1,130 | 1,251 | |
Other liabilities | 19,399 | 28,892 | |
Capital instruments | 584 | 627 | |
Segregated funds net liabilities | 176,139 | 174,917 | |
Shareholders' equity | 14,990 | 17,501 | |
Total liabilities and equity | 359,397 | 370,692 | |
Other subsidiaries | |||
Assets | |||
Invested assets | 226,421 | 213,043 | |
Investments in unconsolidated subsidiaries | 14,999 | 17,504 | |
Reinsurance assets | 8,281 | 10,069 | |
Other assets | 40,715 | 43,931 | |
Segregated funds net assets | 149,812 | 142,400 | |
Total assets | 440,228 | 426,947 | |
Liabilities and Equity | |||
Insurance contract liabilities | 185,884 | 177,524 | |
Investment contract liabilities | 1,998 | 2,027 | |
Other liabilities | 41,394 | 43,994 | |
Long-term debt | 1 | 7 | |
Capital instruments | 5,188 | 6,092 | |
Segregated funds net liabilities | 149,812 | 142,400 | |
Shareholders' equity | 54,801 | 53,912 | |
Participating policyholders' equity | 221 | 248 | |
Non-controlling interests | 929 | 743 | |
Total liabilities and equity | 440,228 | 426,947 | |
Consolidation adjustments [Member] | |||
Assets | |||
Invested assets | (364) | (398) | |
Investments in unconsolidated subsidiaries | (69,882) | (71,719) | |
Reinsurance assets | (27,849) | (26,654) | |
Other assets | (19,062) | (24,281) | |
Segregated funds net assets | (1,644) | (2,140) | |
Total assets | (118,801) | (125,192) | |
Liabilities and Equity | |||
Insurance contract liabilities | (28,434) | (27,523) | |
Investment contract liabilities | (2) | (3) | |
Other liabilities | (18,930) | (24,113) | |
Segregated funds net liabilities | (1,644) | (2,140) | |
Shareholders' equity | (69,791) | (71,413) | |
Total liabilities and equity | CAD (118,801) | CAD (125,192) |
Information Provided in Conn173
Information Provided in Connection with Investments in Deferred Annuity Contracts and SignatureNotes Issued or Assumed by John Hancock Life Insurance Company (U.S.A.) - Summary of Condensed Consolidated Statement of Income (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue | ||
Net premium income | CAD 28,210 | CAD 27,632 |
Net investment income (loss) | 19,367 | 14,524 |
Net other revenue | 10,746 | 11,181 |
Total revenue | 58,323 | 53,337 |
Contract benefits and expenses | ||
Net benefits and claims | 39,301 | 34,134 |
Commissions, investment and general expenses | 15,022 | 14,459 |
Other expenses | 1,499 | 1,415 |
Total contract benefits and expenses | 55,822 | 50,008 |
Income (loss) before income taxes | 2,501 | 3,329 |
Income tax (expense) recovery | (239) | (196) |
Income (loss) after income taxes | 2,262 | 3,133 |
Net income | 2,262 | 3,133 |
Net income (loss) attributed to: | ||
Non-controlling interests | 194 | 143 |
Participating policyholders | (36) | 61 |
Shareholders | 2,104 | 2,929 |
Net income | 2,262 | 3,133 |
MFC (Guarantor) [Member] | ||
Revenue | ||
Net investment income (loss) | 178 | 475 |
Net other revenue | 4 | 43 |
Total revenue | 182 | 518 |
Contract benefits and expenses | ||
Commissions, investment and general expenses | 11 | 11 |
Other expenses | 404 | 259 |
Total contract benefits and expenses | 415 | 270 |
Income (loss) before income taxes | (233) | 248 |
Income tax (expense) recovery | 62 | 28 |
Income (loss) after income taxes | (171) | 276 |
Equity in net income (loss) of unconsolidated subsidiaries | 2,275 | 2,653 |
Net income | 2,104 | 2,929 |
Net income (loss) attributed to: | ||
Shareholders | 2,104 | 2,929 |
Net income | 2,104 | 2,929 |
JHUSA (Issuer) [Member] | ||
Revenue | ||
Net premium income | 11,084 | 5,021 |
Net investment income (loss) | 7,986 | 6,191 |
Net other revenue | 2,874 | 2,569 |
Total revenue | 21,944 | 13,781 |
Contract benefits and expenses | ||
Net benefits and claims | 20,803 | 10,340 |
Commissions, investment and general expenses | 3,208 | 3,272 |
Other expenses | 194 | 59 |
Total contract benefits and expenses | 24,205 | 13,671 |
Income (loss) before income taxes | (2,261) | 110 |
Income tax (expense) recovery | 1,134 | 251 |
Income (loss) after income taxes | (1,127) | 361 |
Equity in net income (loss) of unconsolidated subsidiaries | 628 | 211 |
Net income | (499) | 572 |
Net income (loss) attributed to: | ||
Participating policyholders | (10) | (48) |
Shareholders | (489) | 620 |
Net income | (499) | 572 |
Other subsidiaries | ||
Revenue | ||
Net premium income | 17,130 | 22,611 |
Net investment income (loss) | 11,947 | 9,092 |
Net other revenue | 10,912 | 11,108 |
Total revenue | 39,989 | 42,811 |
Contract benefits and expenses | ||
Net benefits and claims | 19,179 | 24,748 |
Commissions, investment and general expenses | 13,900 | 13,016 |
Other expenses | 1,915 | 2,076 |
Total contract benefits and expenses | 34,994 | 39,840 |
Income (loss) before income taxes | 4,995 | 2,971 |
Income tax (expense) recovery | (1,435) | (475) |
Income (loss) after income taxes | 3,560 | 2,496 |
Equity in net income (loss) of unconsolidated subsidiaries | (486) | 572 |
Net income | 3,074 | 3,068 |
Net income (loss) attributed to: | ||
Non-controlling interests | 194 | 143 |
Participating policyholders | (36) | 61 |
Shareholders | 2,916 | 2,864 |
Net income | 3,074 | 3,068 |
Consolidation adjustments [Member] | ||
Revenue | ||
Net premium income | (4) | |
Net investment income (loss) | (744) | (1,234) |
Net other revenue | (3,044) | (2,539) |
Total revenue | (3,792) | (3,773) |
Contract benefits and expenses | ||
Net benefits and claims | (681) | (954) |
Commissions, investment and general expenses | (2,097) | (1,840) |
Other expenses | (1,014) | (979) |
Total contract benefits and expenses | (3,792) | (3,773) |
Equity in net income (loss) of unconsolidated subsidiaries | (2,417) | (3,436) |
Net income | (2,417) | (3,436) |
Net income (loss) attributed to: | ||
Participating policyholders | 10 | 48 |
Shareholders | (2,427) | (3,484) |
Net income | CAD (2,417) | CAD (3,436) |
Information Provided in Conn174
Information Provided in Connection with Investments in Deferred Annuity Contracts and SignatureNotes Issued or Assumed by John Hancock Life Insurance Company (U.S.A.) - Consolidated Statement of Cash Flows (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities | ||
Net income (loss) | CAD 2,262 | CAD 3,133 |
Adjustments: | ||
Increase (decrease) in insurance contract liabilities | 20,023 | 18,014 |
Increase (decrease) in investment contract liabilities | 173 | |
(Increase) decrease in reinsurance assets | 2,269 | (842) |
Amortization of (premium) discount on invested assets | 230 | 78 |
Other amortization | 560 | 693 |
Net realized and unrealized (gains) losses and impairment on assets | (7,188) | (2,804) |
Deferred income tax expense (recovery) | (331) | (235) |
Stock option expense | 15 | 19 |
Cash provided by (used in) operating activities before undernoted items | 18,013 | 18,056 |
Changes in policy related and operating receivables and payables | (222) | (1,039) |
Cash provided by (used in) operating activities | 17,791 | 17,017 |
Investing activities | ||
Purchases and mortgage advances | (87,224) | (104,059) |
Disposals and repayments | 70,720 | 82,001 |
Changes in investment broker net receivables and payables | 227 | (186) |
Net cash decrease from sale and purchase of subsidiaries and businesses | (10) | (495) |
Cash provided by (used in) investing activities | (16,287) | (22,739) |
Financing activities | ||
(Decrease) increase in repurchase agreements and securities sold but not yet purchased | (29) | (23) |
Issue of long-term debt, net | 3,899 | |
Redemption of long-term debt | (607) | (158) |
Issue of capital instruments, net | 2,209 | 479 |
Redemption of capital instruments | (899) | (949) |
Secured borrowings from securitization transactions | 741 | 847 |
Changes in deposits from Bank clients, net | 261 | (157) |
Shareholders' dividends paid in cash | (1,780) | (1,593) |
Contributions from (distributions to) non-controlling interests, net | (6) | 10 |
Common shares issued, net | 124 | 66 |
Preferred shares issued, net | 884 | |
Cash provided by (used in) financing activities | 14 | 3,305 |
Increase (decrease) during the year | 1,518 | (2,417) |
Effect of foreign exchange rate changes on cash and short-term securities | (658) | (347) |
Balance, beginning of year | 14,238 | 17,002 |
Balance, December 31 | 15,098 | 14,238 |
Cash and short-term securities | ||
Gross cash and short-term securities, beginning of year | 15,151 | 17,885 |
Net payments in transit, included in other liabilities, beginning of year | (913) | (883) |
Balance, beginning of year | 14,238 | 17,002 |
Gross cash and short-term securities, end of year | 15,965 | 15,151 |
Net payments in transit, included in other liabilities, end of year | (867) | (913) |
Balance, December 31 | 15,098 | 14,238 |
Supplemental disclosures on cash flow information: | ||
Interest received | 10,596 | 10,550 |
Interest paid | 1,118 | 983 |
Income taxes paid | 1,360 | 841 |
MFC (Guarantor) [Member] | ||
Operating activities | ||
Net income (loss) | 2,104 | 2,929 |
Adjustments: | ||
Equity in net income of unconsolidated subsidiaries | (2,275) | (2,653) |
Other amortization | 4 | 2 |
Net realized and unrealized (gains) losses and impairment on assets | (7) | (9) |
Deferred income tax expense (recovery) | (59) | 3 |
Cash provided by (used in) operating activities before undernoted items | (233) | 272 |
Dividends from unconsolidated subsidiary | 2,700 | 1,950 |
Changes in policy related and operating receivables and payables | (45) | 171 |
Cash provided by (used in) operating activities | 2,422 | 2,393 |
Investing activities | ||
Purchases and mortgage advances | (32) | |
Investment in common shares of subsidiaries | (2,473) | (5,706) |
Notes receivable from subsidiaries | (16) | (6) |
Cash provided by (used in) investing activities | (2,489) | (5,744) |
Financing activities | ||
Issue of long-term debt, net | 3,899 | |
Redemption of long-term debt | (600) | |
Issue of capital instruments, net | 2,209 | 479 |
Shareholders' dividends paid in cash | (1,780) | (1,593) |
Common shares issued, net | 124 | 66 |
Preferred shares issued, net | 884 | |
Notes payable to subsidiaries | (24) | (344) |
Cash provided by (used in) financing activities | (71) | 3,391 |
Increase (decrease) during the year | (138) | 40 |
Effect of foreign exchange rate changes on cash and short-term securities | (2) | (1) |
Balance, beginning of year | 161 | 122 |
Balance, December 31 | 21 | 161 |
Cash and short-term securities | ||
Gross cash and short-term securities, beginning of year | 161 | 122 |
Balance, beginning of year | 161 | 122 |
Gross cash and short-term securities, end of year | 21 | 161 |
Balance, December 31 | 21 | 161 |
Supplemental disclosures on cash flow information: | ||
Interest received | 273 | |
Interest paid | 392 | 210 |
Income taxes paid | 99 | 35 |
JHUSA (Issuer) [Member] | ||
Operating activities | ||
Net income (loss) | (499) | 572 |
Adjustments: | ||
Equity in net income of unconsolidated subsidiaries | (628) | (211) |
Increase (decrease) in insurance contract liabilities | 16,877 | 5,225 |
Increase (decrease) in investment contract liabilities | 55 | 58 |
(Increase) decrease in reinsurance assets | (1,890) | (1,444) |
Amortization of (premium) discount on invested assets | 24 | (5) |
Other amortization | 123 | 284 |
Net realized and unrealized (gains) losses and impairment on assets | (2,609) | (917) |
Deferred income tax expense (recovery) | (2,239) | 391 |
Stock option expense | (4) | (1) |
Cash provided by (used in) operating activities before undernoted items | 9,210 | 3,952 |
Dividends from unconsolidated subsidiary | 125 | 111 |
Changes in policy related and operating receivables and payables | (4,627) | (1,291) |
Cash provided by (used in) operating activities | 4,708 | 2,772 |
Investing activities | ||
Purchases and mortgage advances | (30,645) | (34,656) |
Disposals and repayments | 26,952 | 32,343 |
Changes in investment broker net receivables and payables | 182 | (35) |
Capital contribution to unconsolidated subsidiaries | (63) | (350) |
Return of capital from unconsolidated subsidiaries | 11 | 1 |
Notes receivable from parent | 368 | |
Notes receivable from subsidiaries | (10) | (40) |
Cash provided by (used in) investing activities | (3,205) | (2,737) |
Financing activities | ||
Dividends paid to parent | (1,175) | |
Notes payable to affiliates | (201) | (544) |
Cash provided by (used in) financing activities | (1,376) | (544) |
Increase (decrease) during the year | 127 | (509) |
Effect of foreign exchange rate changes on cash and short-term securities | (276) | (149) |
Balance, beginning of year | 3,787 | 4,445 |
Balance, December 31 | 3,638 | 3,787 |
Cash and short-term securities | ||
Gross cash and short-term securities, beginning of year | 4,317 | 4,938 |
Net payments in transit, included in other liabilities, beginning of year | (530) | (493) |
Balance, beginning of year | 3,787 | 4,445 |
Gross cash and short-term securities, end of year | 4,133 | 4,317 |
Net payments in transit, included in other liabilities, end of year | (495) | (530) |
Balance, December 31 | 3,638 | 3,787 |
Supplemental disclosures on cash flow information: | ||
Interest received | 4,391 | 4,523 |
Interest paid | 96 | 144 |
Income taxes paid | 1,084 | 68 |
Other subsidiaries | ||
Operating activities | ||
Net income (loss) | 3,074 | 3,068 |
Adjustments: | ||
Equity in net income of unconsolidated subsidiaries | 486 | (572) |
Increase (decrease) in insurance contract liabilities | 3,146 | 12,789 |
Increase (decrease) in investment contract liabilities | 118 | (58) |
(Increase) decrease in reinsurance assets | 4,159 | 602 |
Amortization of (premium) discount on invested assets | 206 | 83 |
Other amortization | 433 | 407 |
Net realized and unrealized (gains) losses and impairment on assets | (4,572) | (1,878) |
Deferred income tax expense (recovery) | 1,967 | (629) |
Stock option expense | 19 | 20 |
Cash provided by (used in) operating activities before undernoted items | 9,036 | 13,832 |
Dividends from unconsolidated subsidiary | 1,175 | |
Changes in policy related and operating receivables and payables | 4,450 | 81 |
Cash provided by (used in) operating activities | 14,661 | 13,913 |
Investing activities | ||
Purchases and mortgage advances | (56,579) | (69,371) |
Disposals and repayments | 43,768 | 49,658 |
Changes in investment broker net receivables and payables | 45 | (151) |
Net cash decrease from sale and purchase of subsidiaries and businesses | (10) | (495) |
Notes receivable from affiliates | 201 | 544 |
Notes receivable from parent | 24 | 344 |
Cash provided by (used in) investing activities | (12,551) | (19,471) |
Financing activities | ||
(Decrease) increase in repurchase agreements and securities sold but not yet purchased | (29) | (23) |
Redemption of long-term debt | (7) | (158) |
Redemption of capital instruments | (899) | (949) |
Secured borrowings from securitization transactions | 741 | 847 |
Changes in deposits from Bank clients, net | 261 | (157) |
Contributions from (distributions to) non-controlling interests, net | (6) | 10 |
Common shares issued, net | 2,473 | 5,706 |
Dividends paid to parent | (2,825) | (2,061) |
Capital contributions by parent | 63 | 350 |
Return of capital to parent | (11) | (1) |
Notes payable to parent | 26 | 46 |
Notes payable to subsidiaries | (368) | |
Cash provided by (used in) financing activities | (581) | 3,610 |
Increase (decrease) during the year | 1,529 | (1,948) |
Effect of foreign exchange rate changes on cash and short-term securities | (380) | (197) |
Balance, beginning of year | 10,290 | 12,435 |
Balance, December 31 | 11,439 | 10,290 |
Cash and short-term securities | ||
Gross cash and short-term securities, beginning of year | 10,673 | 12,825 |
Net payments in transit, included in other liabilities, beginning of year | (383) | (390) |
Balance, beginning of year | 10,290 | 12,435 |
Gross cash and short-term securities, end of year | 11,811 | 10,673 |
Net payments in transit, included in other liabilities, end of year | (372) | (383) |
Balance, December 31 | 11,439 | 10,290 |
Supplemental disclosures on cash flow information: | ||
Interest received | 6,504 | 6,795 |
Interest paid | 1,202 | 1,397 |
Income taxes paid | 177 | 738 |
Consolidation adjustments [Member] | ||
Operating activities | ||
Net income (loss) | (2,417) | (3,436) |
Adjustments: | ||
Equity in net income of unconsolidated subsidiaries | 2,417 | 3,436 |
Dividends from unconsolidated subsidiary | (4,000) | (2,061) |
Cash provided by (used in) operating activities | (4,000) | (2,061) |
Investing activities | ||
Investment in common shares of subsidiaries | 2,473 | 5,706 |
Capital contribution to unconsolidated subsidiaries | 63 | 350 |
Return of capital from unconsolidated subsidiaries | (11) | (1) |
Notes receivable from affiliates | (201) | (544) |
Notes receivable from parent | (392) | (344) |
Notes receivable from subsidiaries | 26 | 46 |
Cash provided by (used in) investing activities | 1,958 | 5,213 |
Financing activities | ||
Common shares issued, net | (2,473) | (5,706) |
Dividends paid to parent | 4,000 | 2,061 |
Capital contributions by parent | (63) | (350) |
Return of capital to parent | 11 | 1 |
Notes payable to affiliates | 201 | 544 |
Notes payable to parent | (26) | (46) |
Notes payable to subsidiaries | 392 | 344 |
Cash provided by (used in) financing activities | 2,042 | (3,152) |
Supplemental disclosures on cash flow information: | ||
Interest received | (572) | (768) |
Interest paid | CAD (572) | CAD (768) |
IFRS 7 Disclosures - Summary of
IFRS 7 Disclosures - Summary of Risk Management Strategies (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Publicly Traded Equity Performance Risk [Member] | |
Disclosure of risk management strategy [Line Items] | |
Product design and pricing | Yes |
Variable annuity guarantee dynamic hedging | Yes |
Macro equity risk hedging | Yes |
Asset liability management | Yes |
Foreign exchange management | No |
Interest Rate and Spread Risk [Member] | |
Disclosure of risk management strategy [Line Items] | |
Product design and pricing | Yes |
Variable annuity guarantee dynamic hedging | Yes |
Macro equity risk hedging | No |
Asset liability management | Yes |
Foreign exchange management | No |
Alternative Long-Duration Asset Performance Risk [Member] | |
Disclosure of risk management strategy [Line Items] | |
Product design and pricing | Yes |
Variable annuity guarantee dynamic hedging | No |
Macro equity risk hedging | No |
Asset liability management | Yes |
Foreign exchange management | No |
Foreign Exchange Risk [Member] | |
Disclosure of risk management strategy [Line Items] | |
Product design and pricing | Yes |
Variable annuity guarantee dynamic hedging | Yes |
Macro equity risk hedging | Yes |
Asset liability management | Yes |
Foreign exchange management | Yes |
IFRS 7 Disclosures - Additional
IFRS 7 Disclosures - Additional Information (Detail) CAD in Millions | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2016CAD | Dec. 31, 2017CAD | Dec. 31, 2017USD ($) | |
Financial Instruments - Disclosures under IFRS 7 [Line Items] | ||||
Liabilities on current in-force business due period | 2018 to 2038 | |||
Dynamically hedged variable annuity guarantee best estimate liabilities, rebalancing percentage intervals | 5.00% | |||
Sensitivity of net income attributed to shareholders | 0.50% | |||
Variable annuity guarantee liabilities, rebalanced basis point intervals | 0.20% | |||
Net after-tax unrealized loss position of AFS fixed income assets | CAD | CAD 223 | |||
Total unencumbered assets | CAD | CAD 396,300 | 396,800 | ||
50 basis point decrease in interest | ||||
Financial Instruments - Disclosures under IFRS 7 [Line Items] | ||||
Sensitivity of our net income attributed to shareholders due to change in interest rate | $ (200,000,000) | |||
50 basis point increase in interest | ||||
Financial Instruments - Disclosures under IFRS 7 [Line Items] | ||||
Sensitivity of our net income attributed to shareholders due to change in interest rate | 100,000,000 | |||
50 basis point decrease in corporate spreads [Member] | ||||
Financial Instruments - Disclosures under IFRS 7 [Line Items] | ||||
Increase in sensitivity due to decision to reduce the allocation to ALDA in the portfolio asset | 200,000,000 | |||
-10% [Member] | ||||
Financial Instruments - Disclosures under IFRS 7 [Line Items] | ||||
Potential impact on net income attributed to shareholders arising from lower U.S. corporate income tax rate | $ 300,000,000 | |||
Unsecured revolving credit facility [Member] | Canadian chartered banks [Member] | ||||
Financial Instruments - Disclosures under IFRS 7 [Line Items] | ||||
Estimated maximum borrowing capacity | CAD | CAD 500 | |||
Unsecured revolving credit facility [Member] | U.S.banks [Member] | ||||
Financial Instruments - Disclosures under IFRS 7 [Line Items] | ||||
Estimated maximum borrowing capacity | $ 500,000,000 | |||
Amounts outstanding | 0 | |||
FHLBI facility [Member] | ||||
Financial Instruments - Disclosures under IFRS 7 [Line Items] | ||||
Estimated maximum borrowing capacity | 4,300,000,000 | |||
Amounts outstanding | $ 0 | |||
10% [Member] | ||||
Financial Instruments - Disclosures under IFRS 7 [Line Items] | ||||
Percentage of expected changes in market values of publicly traded equities | 10.00% | 10.00% | ||
20% [Member] | ||||
Financial Instruments - Disclosures under IFRS 7 [Line Items] | ||||
Percentage of expected changes in market values of publicly traded equities | 20.00% | 20.00% | ||
30% [Member] | ||||
Financial Instruments - Disclosures under IFRS 7 [Line Items] | ||||
Percentage of expected changes in market values of publicly traded equities | 30.00% | 30.00% |
IFRS 7 Disclosures - Variable A
IFRS 7 Disclosures - Variable Annuity and Segregated Fund Guarantees, Net of Reinsurance (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Variable Annuity And Segregated Fund Guarantees Net Of Reinsurance [Line Items] | ||
Total gross of reinsurance, Guarantee value | CAD 95,873 | CAD 106,263 |
Total reinsured, Guarantee value | 7,536 | 8,670 |
Total, net of reinsurance, Guarantee value | 88,337 | 97,593 |
Total gross of reinsurance, Fund value | 96,385 | 100,628 |
Total reinsured, Fund value | 6,707 | 7,105 |
Total, net of reinsurance, Fund value | 89,678 | 93,523 |
Total gross of reinsurance, Amount at risk | 8,029 | 12,082 |
Total reinsured, Amount at risk | 1,346 | 1,913 |
Total, net of reinsurance, Amount at risk | 6,683 | 10,169 |
Amount at risk net of reinsurance | 6,683 | 10,169 |
Guaranteed minimum income benefit [Member] | ||
Variable Annuity And Segregated Fund Guarantees Net Of Reinsurance [Line Items] | ||
Total gross of reinsurance, Guarantee value | 5,201 | 5,987 |
Total gross of reinsurance, Fund value | 4,195 | 4,432 |
Total gross of reinsurance, Amount at risk | 1,074 | 1,570 |
Guaranteed minimum withdrawal benefit [Member] | ||
Variable Annuity And Segregated Fund Guarantees Net Of Reinsurance [Line Items] | ||
Total gross of reinsurance, Guarantee value | 61,767 | 68,594 |
Total gross of reinsurance, Fund value | 56,512 | 59,593 |
Total gross of reinsurance, Amount at risk | 5,943 | 9,135 |
Guaranteed Minimum Accumulation Benefit 1 [Member] | ||
Variable Annuity And Segregated Fund Guarantees Net Of Reinsurance [Line Items] | ||
Total gross of reinsurance, Guarantee value | 18,162 | 19,482 |
Total gross of reinsurance, Fund value | 18,705 | 19,989 |
Total gross of reinsurance, Amount at risk | 11 | 27 |
Living benefits [Member] | ||
Variable Annuity And Segregated Fund Guarantees Net Of Reinsurance [Line Items] | ||
Total gross of reinsurance, Guarantee value | 85,130 | 94,063 |
Total reinsured, Guarantee value | 4,522 | 5,241 |
Total gross of reinsurance, Fund value | 79,412 | 84,014 |
Total reinsured, Fund value | 3,667 | 3,903 |
Total gross of reinsurance, Amount at risk | 7,028 | 10,732 |
Total reinsured, Amount at risk | 911 | 1,349 |
Death benefits [Member] | ||
Variable Annuity And Segregated Fund Guarantees Net Of Reinsurance [Line Items] | ||
Total gross of reinsurance, Guarantee value | 10,743 | 12,200 |
Total reinsured, Guarantee value | 3,014 | 3,429 |
Total gross of reinsurance, Fund value | 16,973 | 16,614 |
Total reinsured, Fund value | 3,040 | 3,202 |
Total gross of reinsurance, Amount at risk | 1,001 | 1,350 |
Total reinsured, Amount at risk | CAD 435 | CAD 564 |
IFRS 7 Disclosures - Variabl178
IFRS 7 Disclosures - Variable Annuity and Segregated Fund Guarantees, Net of Reinsurance (Parenthetical) (Detail) CAD in Millions, $ in Millions | Dec. 31, 2017CAD | Dec. 31, 2017USD ($) | Dec. 31, 2016CAD | Dec. 31, 2016USD ($) |
Variable Annuity And Segregated Fund Guarantees Net Of Reinsurance [Line Items] | ||||
Amount at risk net of reinsurance | CAD | CAD 6,683 | CAD 10,169 | ||
U.S [Member] | ||||
Variable Annuity And Segregated Fund Guarantees Net Of Reinsurance [Line Items] | ||||
Amount at risk net of reinsurance | $ 3,982 | $ 6,008 | ||
Canada [Member] | ||||
Variable Annuity And Segregated Fund Guarantees Net Of Reinsurance [Line Items] | ||||
Amount at risk net of reinsurance | CAD | CAD 1,342 | CAD 1,499 | ||
Japan [Member] | ||||
Variable Annuity And Segregated Fund Guarantees Net Of Reinsurance [Line Items] | ||||
Amount at risk net of reinsurance | 95 | 206 | ||
Asia [Member] | ||||
Variable Annuity And Segregated Fund Guarantees Net Of Reinsurance [Line Items] | ||||
Amount at risk net of reinsurance | $ 181 | $ 244 |
IFRS 7 Disclosures - Summary179
IFRS 7 Disclosures - Summary of Account Balances by Investment Category (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Investment Categories For Variable Contracts With Guarantees [Line Items] | ||
Investments for variable contracts with guarantees | CAD 111,654 | CAD 114,898 |
Equity funds [Member] | ||
Investment Categories For Variable Contracts With Guarantees [Line Items] | ||
Investments for variable contracts with guarantees | 47,508 | 41,805 |
Balanced funds [Member] | ||
Investment Categories For Variable Contracts With Guarantees [Line Items] | ||
Investments for variable contracts with guarantees | 47,369 | 57,571 |
Bond funds [Member] | ||
Investment Categories For Variable Contracts With Guarantees [Line Items] | ||
Investments for variable contracts with guarantees | 13,095 | 11,588 |
Money market funds [Member] | ||
Investment Categories For Variable Contracts With Guarantees [Line Items] | ||
Investments for variable contracts with guarantees | 1,905 | 2,127 |
Other fixed interest rate investments [Member] | ||
Investment Categories For Variable Contracts With Guarantees [Line Items] | ||
Investments for variable contracts with guarantees | CAD 1,777 | CAD 1,807 |
IFRS 7 Disclosures - Schedule o
IFRS 7 Disclosures - Schedule of Potential Immediate Impact on Net Income Attributed to Shareholders Arising from Changes to Public Equity Returns (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
-30% [Member] | ||
Schedule of Potential Immediate Impact on Net Income Attributed to Shareholders by Changes to Public Equity Returns [Line Items] | ||
Variable annuity guarantees | CAD (3,940) | CAD (4,830) |
Asset based fees | (510) | (410) |
General fund equity investments | (930) | (910) |
Total underlying sensitivity before hedging | (5,380) | (6,150) |
Impact of macro and dynamic hedge assets | 3,220 | 4,050 |
Net potential impact on net income attributed to shareholders after impact of hedging | (2,160) | (2,100) |
-20% [Member] | ||
Schedule of Potential Immediate Impact on Net Income Attributed to Shareholders by Changes to Public Equity Returns [Line Items] | ||
Variable annuity guarantees | (2,260) | (2,920) |
Asset based fees | (340) | (280) |
General fund equity investments | (590) | (590) |
Total underlying sensitivity before hedging | (3,190) | (3,790) |
Impact of macro and dynamic hedge assets | 1,850 | 2,440 |
Net potential impact on net income attributed to shareholders after impact of hedging | (1,340) | (1,350) |
-10% [Member] | ||
Schedule of Potential Immediate Impact on Net Income Attributed to Shareholders by Changes to Public Equity Returns [Line Items] | ||
Variable annuity guarantees | (960) | (1,290) |
Asset based fees | (170) | (140) |
General fund equity investments | (270) | (270) |
Total underlying sensitivity before hedging | (1,400) | (1,700) |
Impact of macro and dynamic hedge assets | 790 | 1,060 |
Net potential impact on net income attributed to shareholders after impact of hedging | (610) | (640) |
10% [Member] | ||
Schedule of Potential Immediate Impact on Net Income Attributed to Shareholders by Changes to Public Equity Returns [Line Items] | ||
Variable annuity guarantees | 670 | 1,000 |
Asset based fees | 170 | 140 |
General fund equity investments | 270 | 240 |
Total underlying sensitivity before hedging | 1,110 | 1,380 |
Impact of macro and dynamic hedge assets | (640) | (910) |
Net potential impact on net income attributed to shareholders after impact of hedging | 470 | 470 |
20% [Member] | ||
Schedule of Potential Immediate Impact on Net Income Attributed to Shareholders by Changes to Public Equity Returns [Line Items] | ||
Variable annuity guarantees | 1,110 | 1,690 |
Asset based fees | 340 | 280 |
General fund equity investments | 540 | 490 |
Total underlying sensitivity before hedging | 1,990 | 2,460 |
Impact of macro and dynamic hedge assets | (1,100) | (1,610) |
Net potential impact on net income attributed to shareholders after impact of hedging | 890 | 850 |
30% [Member] | ||
Schedule of Potential Immediate Impact on Net Income Attributed to Shareholders by Changes to Public Equity Returns [Line Items] | ||
Variable annuity guarantees | 1,410 | 2,170 |
Asset based fees | 510 | 410 |
General fund equity investments | 810 | 750 |
Total underlying sensitivity before hedging | 2,730 | 3,330 |
Impact of macro and dynamic hedge assets | (1,410) | (2,160) |
Net potential impact on net income attributed to shareholders after impact of hedging | CAD 1,320 | CAD 1,170 |
IFRS 7 Disclosures - Schedul181
IFRS 7 Disclosures - Schedule of Potential Immediate Impact on Net Income Attributed to Shareholders Arising from Changes to Public Equity Returns (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Potential Immediate Impact on Net Income Attributed to Shareholders by Changes to Public Equity Returns [Line Items] | ||
Interval percentage of which impact of rebalancing equity hedges for dynamically hedged variable annuity guarantee best estimate liabilities | 5.00% | 5.00% |
10% [Member] | ||
Schedule of Potential Immediate Impact on Net Income Attributed to Shareholders by Changes to Public Equity Returns [Line Items] | ||
Percentage of changes in market values of publicly traded equities | 10.00% | 10.00% |
20% [Member] | ||
Schedule of Potential Immediate Impact on Net Income Attributed to Shareholders by Changes to Public Equity Returns [Line Items] | ||
Percentage of changes in market values of publicly traded equities | 20.00% | 20.00% |
30% [Member] | ||
Schedule of Potential Immediate Impact on Net Income Attributed to Shareholders by Changes to Public Equity Returns [Line Items] | ||
Percentage of changes in market values of publicly traded equities | 30.00% | 30.00% |
IFRS 7 Disclosures - Schedul182
IFRS 7 Disclosures - Schedule of Potential Immediate Impact on MLI's MCCSR Ratio Arising from Public Equity Returns Different than Expected Return for Policy Liability Valuation (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
-30% [Member] | ||
Schedule of Potential Immediate Impact on MCCSR by Changes to Public Equity Returns Different than Expected Return for Policy Liability Valuation [Line Items] | ||
Potential Impact to MCCSR Ratio Resulting From Changes in Public Equity Market Values | (14.00%) | (12.00%) |
-20% [Member] | ||
Schedule of Potential Immediate Impact on MCCSR by Changes to Public Equity Returns Different than Expected Return for Policy Liability Valuation [Line Items] | ||
Potential Impact to MCCSR Ratio Resulting From Changes in Public Equity Market Values | (8.00%) | (8.00%) |
-10% [Member] | ||
Schedule of Potential Immediate Impact on MCCSR by Changes to Public Equity Returns Different than Expected Return for Policy Liability Valuation [Line Items] | ||
Potential Impact to MCCSR Ratio Resulting From Changes in Public Equity Market Values | (4.00%) | (4.00%) |
10% [Member] | ||
Schedule of Potential Immediate Impact on MCCSR by Changes to Public Equity Returns Different than Expected Return for Policy Liability Valuation [Line Items] | ||
Potential Impact to MCCSR Ratio Resulting From Changes in Public Equity Market Values | 3.00% | 3.00% |
20% [Member] | ||
Schedule of Potential Immediate Impact on MCCSR by Changes to Public Equity Returns Different than Expected Return for Policy Liability Valuation [Line Items] | ||
Potential Impact to MCCSR Ratio Resulting From Changes in Public Equity Market Values | 11.00% | 14.00% |
30% [Member] | ||
Schedule of Potential Immediate Impact on MCCSR by Changes to Public Equity Returns Different than Expected Return for Policy Liability Valuation [Line Items] | ||
Potential Impact to MCCSR Ratio Resulting From Changes in Public Equity Market Values | 14.00% | 18.00% |
IFRS 7 Disclosures - Schedul183
IFRS 7 Disclosures - Schedule of Potential Immediate Impact on MLI's MCCSR Ratio Arising from Public Equity Returns Different than Expected Return for Policy Liability Valuation (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Potential Immediate Impact on MCCSR by Changes to Public Equity Returns [Abstract] | ||
Interval percentage of which impact of rebalancing equity hedges for dynamically hedged variable annuity guarantee best estimate liabilities | 5.00% | 5.00% |
IFRS 7 Disclosures - Summary184
IFRS 7 Disclosures - Summary of Potential Impact on Net Income Attributed to Shareholders and MLI's MCCSR Ratio of an Immediate Parallel Change in Interest Rates (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
-50bp [Member] | ||
Disclosure of Interest Rate and Spread Risk Sensitivities and Exposure Measures [Line Items] | ||
Excluding change in market value of AFS fixed income assets held in the surplus segment | CAD (200) | |
From fair value changes in AFS fixed income assets held in surplus, if realized | CAD 1,100 | CAD 1,000 |
MLI's MCCSR ratio, before impact of change in market value of AFS fixed income assets held in the surplus segment | (7.00%) | (6.00%) |
MLI's MCCSR ratio, from fair value changes in AFS fixed income assets held in surplus, if realized | 4.00% | 1.00% |
+50bp [Member] | ||
Disclosure of Interest Rate and Spread Risk Sensitivities and Exposure Measures [Line Items] | ||
Excluding change in market value of AFS fixed income assets held in the surplus segment | CAD 100 | |
From fair value changes in AFS fixed income assets held in surplus, if realized | CAD (1,000) | CAD (900) |
MLI's MCCSR ratio, before impact of change in market value of AFS fixed income assets held in the surplus segment | 5.00% | 5.00% |
MLI's MCCSR ratio, from fair value changes in AFS fixed income assets held in surplus, if realized | (5.00%) | (4.00%) |
IFRS 7 Disclosures - Summary185
IFRS 7 Disclosures - Summary of Potential Impact on Net Income Attributed to Shareholders Arising from Changes to Spreads (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
+50bp [Member] | Corporate spreads [Member] | ||
Disclosure of Interest Rate and Spread Risk Sensitivities and Exposure Measures [Line Items] | ||
Potential impact on net income attributed to shareholders arising from changes to spreads | CAD 1,000 | CAD 700 |
-50bp [Member] | Corporate spreads [Member] | ||
Disclosure of Interest Rate and Spread Risk Sensitivities and Exposure Measures [Line Items] | ||
Potential impact on net income attributed to shareholders arising from changes to spreads | (1,000) | (800) |
+20bp [Member] | Swap contracts [Member] | ||
Disclosure of Interest Rate and Spread Risk Sensitivities and Exposure Measures [Line Items] | ||
Potential impact on net income attributed to shareholders arising from changes to spreads | (400) | (500) |
-20bp [Member] | Swap contracts [Member] | ||
Disclosure of Interest Rate and Spread Risk Sensitivities and Exposure Measures [Line Items] | ||
Potential impact on net income attributed to shareholders arising from changes to spreads | 400 | 500 |
-10% [Member] | Alternative Long-Duration Asset Performance Risk [Member] | ||
Disclosure of Interest Rate and Spread Risk Sensitivities and Exposure Measures [Line Items] | ||
Potential impact on net income attributed to shareholders arising from changes to spreads | (2,800) | (2,500) |
-10% [Member] | Alternative Long-Duration Asset Performance Risk [Member] | Real estate, agriculture and timber assets [Member] | ||
Disclosure of Interest Rate and Spread Risk Sensitivities and Exposure Measures [Line Items] | ||
Potential impact on net income attributed to shareholders arising from changes to spreads | (1,300) | (1,300) |
-10% [Member] | Alternative Long-Duration Asset Performance Risk [Member] | Private equities and other ALDA [Member] | ||
Disclosure of Interest Rate and Spread Risk Sensitivities and Exposure Measures [Line Items] | ||
Potential impact on net income attributed to shareholders arising from changes to spreads | (1,500) | (1,200) |
10% [Member] | Alternative Long-Duration Asset Performance Risk [Member] | ||
Disclosure of Interest Rate and Spread Risk Sensitivities and Exposure Measures [Line Items] | ||
Potential impact on net income attributed to shareholders arising from changes to spreads | 2,700 | 2,400 |
10% [Member] | Alternative Long-Duration Asset Performance Risk [Member] | Real estate, agriculture and timber assets [Member] | ||
Disclosure of Interest Rate and Spread Risk Sensitivities and Exposure Measures [Line Items] | ||
Potential impact on net income attributed to shareholders arising from changes to spreads | 1,300 | 1,200 |
10% [Member] | Alternative Long-Duration Asset Performance Risk [Member] | Private equities and other ALDA [Member] | ||
Disclosure of Interest Rate and Spread Risk Sensitivities and Exposure Measures [Line Items] | ||
Potential impact on net income attributed to shareholders arising from changes to spreads | CAD 1,400 | CAD 1,200 |
IFRS 7 Disclosures - Summary186
IFRS 7 Disclosures - Summary of Potential Impact on Net Income Attributed to Shareholders Arising from Changes to Spreads (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Corporate spreads [Member] | ||
Disclosure of Interest Rate and Spread Risk Sensitivities and Exposure Measures [Line Items] | ||
Spreads period assumed to grade to long-term average | 5 years | 5 years |
IFRS 7 Disclosures - Summary187
IFRS 7 Disclosures - Summary of Potential Impact on Core Earnings (Detail) - CAD CAD in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
10% change in the Canadian dollar relative to the U.S. dollar and the Hong Kong dollar [Member] | 10% [Member] | ||
Disclosure of foreign exchange risk [line items] | ||
Potential impact on core earnings | CAD (280) | CAD (230) |
10% change in the Canadian dollar relative to the U.S. dollar and the Hong Kong dollar [Member] | -10% [Member] | ||
Disclosure of foreign exchange risk [line items] | ||
Potential impact on core earnings | 280 | 230 |
10% change in the Canadian dollar relative to the Japanese yen [Member] | 10% [Member] | ||
Disclosure of foreign exchange risk [line items] | ||
Potential impact on core earnings | (60) | (50) |
10% change in the Canadian dollar relative to the Japanese yen [Member] | -10% [Member] | ||
Disclosure of foreign exchange risk [line items] | ||
Potential impact on core earnings | CAD 60 | CAD 50 |
IFRS 7 Disclosures - Schedul188
IFRS 7 Disclosures - Schedule of Maturity of Financial Liabilities (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Of Maturity Analysis For Financial Liabilities [Line Items] | ||
Long-term debt | CAD 4,785 | CAD 5,696 |
Capital instruments | 8,387 | 7,180 |
Derivatives | 7,822 | 14,151 |
Deposits from bank clients | 18,131 | 17,919 |
Lease obligations | 838 | 966 |
Less than 1 year [Member] | ||
Disclosure Of Maturity Analysis For Financial Liabilities [Line Items] | ||
Long-term debt | 401 | 7 |
Derivatives | 224 | 593 |
Deposits from bank clients | 15,322 | |
Lease obligations | 126 | |
1 to 3 years [Member] | ||
Disclosure Of Maturity Analysis For Financial Liabilities [Line Items] | ||
Long-term debt | 626 | |
Derivatives | 149 | 595 |
Deposits from bank clients | 1,373 | |
Lease obligations | 172 | |
3 to 5 years [Member] | ||
Disclosure Of Maturity Analysis For Financial Liabilities [Line Items] | ||
Derivatives | 168 | 511 |
Deposits from bank clients | 1,436 | |
Lease obligations | 89 | |
Over 5 years [Member] | ||
Disclosure Of Maturity Analysis For Financial Liabilities [Line Items] | ||
Long-term debt | 3,758 | 4,021 |
Capital instruments | 8,387 | |
Derivatives | 7,281 | CAD 12,452 |
Lease obligations | CAD 451 |
IFRS 7 Disclosures - Schedul189
IFRS 7 Disclosures - Schedule of Maturity of Financial Liabilities (Parenthetical) (Detail) - CAD CAD in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Of Maturity Analysis For Financial Liabilities [Line Items] | ||
Carrying value of deposits from Bank clients | CAD 18,131 | CAD 17,919 |
Level 2 [Member] | ||
Disclosure Of Maturity Analysis For Financial Liabilities [Line Items] | ||
Fair value of deposits from Bank clients | CAD 18,149 | CAD 17,978 |