Cover Page
Cover Page | 12 Months Ended | |
Dec. 31, 2022 shares | ||
Document Information [Line Items] | ||
Document Type | 40-F | |
Entity Central Index Key | 0001086888 | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | FY | |
Entity Registrant Name | MANULIFE FINANCIAL CORPORATION | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Trading Symbol | MFC | |
Title of 12(b) Security | Common Shares | |
Security Exchange Name | NYSE | |
Entity Address, Country | CA | |
Entity Interactive Data Current | Yes | |
Entity Address, State or Province | ON | |
ICFR Auditor Attestation Flag | true | |
Entity File Number | 1-14942 | |
Entity Incorporation, State or Country Code | Z4 | |
Entity Address, Address Line One | 200 Bloor Street East | |
Entity Address, City or Town | Toronto | |
Entity Address, Postal Zip Code | M4W 1E5 | |
City Area Code | 416 | |
Local Phone Number | 926-3000 | |
Annual Information Form | true | |
Audited Annual Financial Statements | true | |
Document Annual Report | true | |
Document Registration Statement | false | |
Auditor Name | Ernst & Young LLP | |
Auditor Firm ID | 1263 | |
Auditor Location | Toronto, Ontario, Canada | |
Business Contact [Member] | ||
Document Information [Line Items] | ||
Entity Address, State or Province | MA | |
Contact Personnel Name | James D. Gallagher | |
Entity Address, Address Line One | 200 Berkeley Street | |
Entity Address, City or Town | Boston | |
Entity Address, Postal Zip Code | 02116 | |
City Area Code | 617 | |
Local Phone Number | 663-3000 | |
Common shares [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1,864,897,726 | |
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 | 6,537,903 | |
Class 1 Shares Series 4 [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1,462,097 | |
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 25 [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 10,000,000 | |
Class 1 Shares Series 27 [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 2,000,000 | [1] |
Class 1 Shares Series 28 [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1,200,000 | [2] |
Class 1 Shares Series 29 [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 1,000,000 | [3] |
[1]In connection with the issuance of C$2 billion principal amount of 3.375% Limited Recourse Capital Notes (LRCN) Series 1 (Subordinated Indebtedness) on February 19, 2021, the Registrant issued 2 million Class 1 Series 27 preferred shares (Series 27) at a price of C$1,000 per Series 27 share. The Series 27 shares were issued to the limited recourse trustee of a consolidated trust to be held as trust assets in connection with the LRCN structure.[2]In connection with the issuance of C$1.2 billion principal amount of 4.100% LRCN Series 2 (Subordinated Indebtedness) on November 12, 2021, the Registrant issued 1.2 million Class 1 Series 28 preferred shares (Series 28) at a price of C$1,000 per Series 28 share. The Series 28 shares were issued to the limited recourse trustee of a consolidated trust to be held as trust assets in connection with the LRCN structure.[3]In connection with the issuance of C$1 billion principal amount of 7.117% LRCN Series 3 (Subordinated Indebtedness) on June 16, 2022, the Registrant issued 1 million Class 1 Series 29 preferred shares (Series 29) at a price of C$1,000 per Series 29 share. The Series 29 shares were issued to the limited recourse trustee of a consolidated trust to be held as trust assets in connection with the LRCN structure. |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and short-term securities | $ 19,153 | $ 22,594 |
Debt securities | 203,904 | 224,139 |
Public equities | 23,519 | 28,067 |
Mortgages | 54,638 | 52,014 |
Private placements | 47,057 | 42,842 |
Policy loans | 6,894 | 6,397 |
Loans to Bank clients | 2,781 | 2,506 |
Real estate | 13,272 | 13,233 |
Other invested assets | 42,783 | 35,306 |
Total invested assets (note 4) | 414,001 | 427,098 |
Other assets | ||
Accrued investment income | 2,813 | 2,641 |
Outstanding premiums | 1,448 | 1,294 |
Derivatives (note 5) | 8,588 | 17,503 |
Reinsurance assets (notes 7 and 8) | 47,712 | 44,579 |
Deferred tax assets (note 17) | 5,423 | 5,254 |
Goodwill and intangible assets (note 6) | 10,519 | 9,915 |
Miscellaneous | 9,875 | 9,571 |
Total other assets | 86,378 | 90,757 |
Segregated funds net assets (note 23) | 348,562 | 399,788 |
Total assets | 848,941 | 917,643 |
Liabilities | ||
Insurance contract liabilities (note 7) | 371,405 | 392,275 |
Investment contract liabilities (note 8) | 3,248 | 3,117 |
Deposits from Bank clients | 22,507 | 20,720 |
Derivatives (note 5) | 14,289 | 10,038 |
Deferred tax liabilities (note 17) | 2,774 | 2,769 |
Other liabilities | 17,421 | 18,205 |
Financial liabilities | 431,644 | 447,124 |
Long-term debt (note 10) | 6,234 | 4,882 |
Capital instruments (note 11) | 6,122 | 6,980 |
Segregated funds net liabilities (note 23) | 348,562 | 399,788 |
Total liabilities | 792,562 | 858,774 |
Equity | ||
Contributed surplus | 238 | 262 |
Shareholders' and other equity holders' retained earnings | 27,010 | 23,492 |
Shareholders' accumulated other comprehensive income (loss) ("AOCI"): | ||
Pension and other post-employment plans | (97) | (114) |
Available-for-sale securities | (6,472) | 848 |
Cash flow hedges | 8 | (156) |
Real estate revaluation reserve | 22 | 23 |
Translation of foreign operations | 6,514 | 4,579 |
Total shareholders' and other equity | 56,061 | 58,408 |
Participating policyholders' equity | (1,346) | (1,233) |
Non-controlling interests | 1,664 | 1,694 |
Total equity | 56,379 | 58,869 |
Total liabilities and equity | 848,941 | 917,643 |
Preferred shares and other equity [Member] | ||
Equity | ||
Issued shares (note 12) | 6,660 | 6,381 |
Shareholders' accumulated other comprehensive income (loss) ("AOCI"): | ||
Total equity | 6,660 | 6,381 |
Common shares [Member] | ||
Equity | ||
Issued shares (note 12) | 22,178 | 23,093 |
Shareholders' accumulated other comprehensive income (loss) ("AOCI"): | ||
Total equity | $ 22,178 | $ 23,093 |
Consolidated Statements of Inco
Consolidated Statements of Income - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Premium income | ||
Gross premiums | $ 44,102 | $ 44,344 |
Premiums ceded to reinsurers | (6,249) | (5,279) |
Net premiums | 37,853 | 39,065 |
Investment income (note 4) | ||
Investment income | 15,207 | 15,627 |
Realized and unrealized gains (losses) on assets supporting insurance and investment contract liabilities and on the macro hedge program | (45,077) | (4,003) |
Net investment income (loss) | (29,870) | 11,624 |
Other revenue (note 14) | 9,164 | 11,132 |
Total revenue | 17,147 | 61,821 |
Contract benefits and expenses | ||
Gross claims and benefits (note 7) | 33,320 | 31,110 |
Increase (decrease) in insurance contract liabilities (note 7) | (34,971) | 10,719 |
Increase (decrease) in investment contract liabilities (note 8) | 41 | 44 |
Benefits and expenses ceded to reinsurers | (7,016) | (6,805) |
(Increase) decrease in reinsurance assets (note 7) | (673) | 754 |
Net benefits and claims | (9,299) | 35,822 |
General expenses | 7,782 | 7,828 |
Investment expenses (note 4) | 1,863 | 1,980 |
Commissions | 6,260 | 6,638 |
Interest expense | 1,350 | 1,011 |
Net premium taxes | 444 | 417 |
Total contract benefits and expenses | 8,400 | 53,696 |
Income before income taxes | 8,747 | 8,125 |
Income tax expense (note 17) | (1,565) | (1,213) |
Net income | 7,182 | 6,912 |
Net income (loss) attributed to: | ||
Non-controlling interests | (1) | 255 |
Participating policyholders | (111) | (448) |
Shareholders and other equity holders | 7,294 | 7,105 |
Net income | 7,182 | 6,912 |
Net income attributed to shareholders | 7,294 | 7,105 |
Preferred share dividends and other equity distributions | (260) | (215) |
Common shareholders' net income | $ 7,034 | $ 6,890 |
Earnings per share | ||
Basic earnings per common share (note 12) | $ 3.68 | $ 3.55 |
Diluted earnings per common share (note 12) | 3.68 | 3.54 |
Dividends per common share | $ 1.32 | $ 1.17 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of comprehensive income [abstract] | ||
Net income | $ 7,182 | $ 6,912 |
Foreign exchange gains (losses) on: | ||
Translation of foreign operations | 2,350 | (514) |
Net investment hedges | (415) | 100 |
Available-for-sale financial securities: | ||
Unrealized gains (losses) arising during the year | (7,608) | (980) |
Reclassification of net realized (gains) losses and impairments to net income | 288 | (13) |
Cash flow hedges: | ||
Unrealized gains (losses) arising during the year | 161 | 77 |
Reclassification of realized gains (losses) to net income | 3 | (4) |
Share of other comprehensive income (losses) of associates | (5) | (1) |
Total items that may be subsequently reclassified to net income | (5,226) | (1,335) |
Items that will not be reclassified to net income: | ||
Change in actuarial gains (losses) on pension and other post-employment plans | 17 | 199 |
Real estate revaluation reserve | (1) | (11) |
Total items that will not be reclassified to net income | 16 | 188 |
Other comprehensive income (loss), net of tax | (5,210) | (1,147) |
Total comprehensive income (loss), net of tax | 1,972 | 5,765 |
Total comprehensive income (loss) attributed to: | ||
Non-controlling interests | (4) | 252 |
Participating policyholders | (113) | (449) |
Shareholders and other equity holders | 2,089 | 5,962 |
Income tax expense (recovery) on: | ||
Unrealized gains (losses) on available-for-sale financial securities | (1,254) | (181) |
Reclassification of net realized (gains) losses and impairments to net income on available-for-sale financial securities | 30 | 21 |
Unrealized gains (losses) on cash flow hedges | 55 | 15 |
Reclassification of realized gains (losses) to net income on cash flow hedges | 1 | (1) |
Unrealized foreign exchange gains (losses) on translation of foreign operations | 2 | |
Unrealized foreign exchange gains (losses) on net investment hedges | (29) | 21 |
Share of other comprehensive income (loss) of associates | (1) | |
Change in actuarial gains (losses) on pension and other post-employment plans | 9 | 61 |
Real estate revaluation reserve | 1 | |
Total income tax expense (recovery) | $ (1,186) | $ (64) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - CAD ($) $ in Millions | Total | Preferred shares and other equity [Member] | Common shares [Member] | Shareholders and other equity holders retained earnings [Member] | Contributed Surplus [Member] | Shareholders' accumulated other comprehensive income (loss) ("AOCI") [Member] | Participating Policyholders' Equity [Member] | Non-controlling Interests [Member] |
Balance, beginning of year at Dec. 31, 2020 | $ 3,822 | $ 23,042 | $ 18,887 | $ 261 | $ 6,323 | $ (784) | $ 1,455 | |
Issued (note 12) | 3,200 | |||||||
Redeemed (note 12) | (612) | |||||||
Issuance costs, net of tax | (29) | |||||||
Exercise of stock options and deferred share units | 51 | (8) | ||||||
Stock option expense | 9 | |||||||
Net income attributed to shareholders and other equity holders | 7,105 | |||||||
Preferred share dividends and other equity distributions | (215) | |||||||
Preferred shares redeemed (note 12) | (13) | |||||||
Common share dividends | (2,272) | |||||||
Change in unrealized foreign exchange gains (losses) on net foreign operations | $ (514) | (414) | ||||||
Change in actuarial gains (losses) on pension and other post-employment plans | 199 | 199 | ||||||
Change in unrealized gains (losses) on available-for-sale financial securities | (980) | (989) | ||||||
Change in unrealized gains (losses) on derivative instruments designated as cash flow hedges | 77 | 73 | ||||||
Change in real estate revaluation reserve | (11) | (11) | ||||||
Share of other comprehensive income (losses) of associates | (1) | (1) | ||||||
Net income (loss) attributed to participating policyholders | (448) | (448) | ||||||
Net income attributed to non-controlling interests | 255 | 255 | ||||||
Other comprehensive income (loss) attributed to policyholders and non-controlling interests | (1) | (3) | ||||||
Contributions (distributions and acquisition), net | (13) | |||||||
Balance, end of year at Dec. 31, 2021 | 58,869 | 6,381 | 23,093 | 23,492 | 262 | 5,180 | (1,233) | 1,694 |
Total shareholders' and other equity, end of year | 58,408 | |||||||
Issued (note 12) | 1,000 | |||||||
Redeemed (note 12) | (711) | |||||||
Issuance costs, net of tax | (10) | |||||||
Exercise of stock options and deferred share units | 23 | (4) | ||||||
Stock option expense | 5 | |||||||
Net income attributed to shareholders and other equity holders | 7,294 | |||||||
Common shares repurchased (note 12) | (938) | (946) | ||||||
Preferred share dividends and other equity distributions | (260) | |||||||
Preferred shares redeemed (note 12) | (14) | |||||||
Common share dividends | (2,513) | |||||||
Change in unrealized foreign exchange gains (losses) on net foreign operations | 2,350 | 1,935 | ||||||
Change in actuarial gains (losses) on pension and other post-employment plans | 17 | 17 | ||||||
Change in unrealized gains (losses) on available-for-sale financial securities | (7,608) | (7,315) | ||||||
Change in unrealized gains (losses) on derivative instruments designated as cash flow hedges | 161 | 164 | ||||||
Change in real estate revaluation reserve | (1) | (1) | ||||||
Share of other comprehensive income (losses) of associates | (5) | (5) | ||||||
Net income (loss) attributed to participating policyholders | (111) | (111) | ||||||
Net income attributed to non-controlling interests | (1) | (1) | ||||||
Other comprehensive income (loss) attributed to policyholders and non-controlling interests | (2) | (3) | ||||||
Contributions (distributions and acquisition), net | (26) | |||||||
Acquisition of non-controlling interest | (43) | (25) | ||||||
Balance, end of year at Dec. 31, 2022 | 56,379 | $ 6,660 | $ 22,178 | $ 27,010 | $ 238 | $ (25) | $ (1,346) | $ 1,664 |
Total shareholders' and other equity, end of year | $ 56,061 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Operating activities | ||
Net income | $ 7,182 | $ 6,912 |
Adjustments: | ||
Increase (decrease) in insurance contract liabilities | (33,413) | 10,719 |
Increase (decrease) in investment contract liabilities | 41 | 44 |
(Increase) decrease in reinsurance assets excluding coinsurance transactions (note 7) | 159 | 754 |
Amortization of (premium) discount on invested assets | (32) | 181 |
Other amortization | 538 | 529 |
Net realized and unrealized (gains) losses and impairment on assets | 47,270 | 4,824 |
Gain on U.S. variable annuity reinsurance transaction (pre-tax) (note 7) | (1,070) | |
Gain on derecognition of Joint Venture interest during Manulife TEDA acquisition (pre-tax) (notes 3 & 6) | (95) | |
Deferred income tax expense (recovery) | 731 | (127) |
Stock option expense | 5 | 9 |
Cash provided by operating activities before undernoted items | 21,316 | 23,845 |
Cash decrease due to U.S. variable annuity reinsurance transaction (note 7) | (1,377) | |
Changes in policy related and operating receivables and payables | (2,204) | (690) |
Cash provided by (used in) operating activities | 17,735 | 23,155 |
Investing activities | ||
Purchases and mortgage advances | (111,768) | (120,965) |
Disposals and repayments | 93,407 | 96,728 |
Change in investment broker net receivables and payables | (67) | (186) |
Net cash increase (decrease) from sale (purchase) of subsidiary (notes 3 & 6) | (182) | (19) |
Cash provided by (used in) investing activities | (18,610) | (24,442) |
Financing activities | ||
Issue of long-term debt, net (note 10) | 946 | |
Redemption of long-term debt (note 10) | (1,250) | |
Redemption of capital instruments (note 11) | (1,000) | (818) |
Secured borrowings (note 4(f)) | 437 | 26 |
Change in repurchase agreements and securities sold but not yet purchased | (551) | 186 |
Change in deposits from Bank clients, net | 1,703 | (164) |
Lease payments | (120) | (124) |
Shareholders' dividends and other equity distributions | (2,787) | (2,500) |
Common shares repurchased (note 12) | (1,884) | |
Common shares issued, net (note 12) | 23 | 51 |
Preferred shares and other equity issued, net (note 12) | 990 | 3,171 |
Preferred shares redeemed, net (note 12) | (711) | (612) |
Contributions from (distributions to, acquisition of) non-controlling interests, net | (51) | (13) |
Cash provided by (used in) financing activities | (3,005) | (2,047) |
Cash and short-term securities | ||
Increase (decrease) during the year | (3,880) | (3,334) |
Effect of foreign exchange rate changes on cash and short-term securities | 585 | (319) |
Net cash and short-term securities, January 1 | 21,930 | 25,583 |
Net cash and short-term securities, December 31 | 18,635 | 21,930 |
Cash and short-term securities | ||
Gross cash and short-term securities, beginning of year | 22,594 | 26,167 |
Net payments in transit, included in other liabilities, beginning of year | (664) | (584) |
Net cash and short-term securities, January 1 | 21,930 | 25,583 |
Gross cash and short-term securities, end of year | 19,153 | 22,594 |
Net payments in transit, included in other liabilities, end of year | (518) | (664) |
Net cash and short-term securities, December 31 | 18,635 | 21,930 |
Supplemental disclosures on cash flow information | ||
Interest received | 12,133 | 11,376 |
Interest paid | 1,248 | 981 |
Income taxes paid | $ 1,238 | $ 571 |
Nature of Operations and Signif
Nature of Operations and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Text block [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 Asia and Canada 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 and Risk Factors” in the 2022 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, 2022 were authorized for issue by MFC’s Board of Directors on February 15, 2023. (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 evaluating assumptions used in measuring insurance and investment contract liabilities, assessing assets for impairment, determining pension and other post-employment benefit obligation and expense assumptions, determining income taxes and uncertain tax positions, and estimating fair values 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. The Company’s results and operations have been and may continue to be adversely impacted by COVID-19 The Company has applied appropriate measurement techniques using reasonable judgment and estimates from the perspective of a market participant to reflect current economic conditions. The impact of these techniques has been reflected in these Consolidated Financial Statements. Changes in the inputs used could materially impact the respective carrying values. (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; fair value 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 valuation 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 measurement results according to a three-level hierarchy. The hierarchy prioritizes the inputs used by the Company’s valuation techniques based on their reliability. 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 can 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, credit default swaps and foreign currency forward contracts. Level 3 – Fair value measurements using significant non-market (d) Basis of consolidation MFC consolidates the financial statements of all entities it controls, including certain structured entities. 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 and 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 the Company’s share of variable returns of the entity. In assessing control, significant judgment is applied while considering all relevant facts and circumstances. When assessing decision making power over an entity, the Company considers the extent of its rights relative to the management of the entity, the level of voting rights held over the entity which are potentially or presently exercisable, the existence of any contractual management agreements which may provide the Company with power over the entity’s financial and operating policies, and to the extent of other parties’ ownership in the entity, if any, the possibility for de facto control being present. When assessing variable returns from an entity, the Company considers the significance of direct and indirect financial and non-financial The financial statements of subsidiaries are included in 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 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. A change in control may lead to gains or losses on derecognition of a subsidiary when losing control, or on derecognition of previous interests in a subsidiary when gaining control. The Company’s Consolidated Financial Statements have been prepared using uniform accounting policies for like transactions and events in similar circumstances. Intercompany balances, and revenue and expenses arising from intercompany transactions, have been eliminated in preparing the Consolidated Financial Statements. Non-controlling Non-controlling The equity method of accounting is used to account for entities over which the Company has significant influence or joint control (“associates” or “joint ventures”), whereby the Company records its share of the associate’s or joint venture’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 rights and other relationships with the entity, if any, provide the Company with significant influence or joint control over the entity. Gains and losses on the sale of associates or joint ventures 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 or joint ventures are eliminated to the extent of the Company’s interest in the equity of the associate or joint venture. Investments in associates and joint ventures 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 fair value valuations within the three levels of the fair value hierarchy for invested assets carried at fair value or 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 of cash, current operating accounts, overnight bank and term deposits, and debt securities held for meeting short-term cash commitments. Short-term securities are comprised of investments due to mature within one year of the date of purchase. Short-term securities are carried at fair value. Commercial paper and discount notes are classified as Level 2 for fair value disclosure purposes 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 or amortized cost. 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, prepayment rates and volatility of these inputs. These debt securities are classified as Level 2 for fair value disclosure purposes but can be Level 3 if 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, except for 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. Debt securities which are classified as held-to-maturity Public equities are comprised of common and preferred equities and mutual fund shares and are carried at fair value. Public equities are generally classified as Level 1 for fair value disclosure purposes, 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 a significant amount or for a prolonged period. Significant 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 disclosure 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 with reference to the fair value of collateral security underlying the mortgage, net of expected costs of realization and including 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 liabilities within 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 or 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 amortized cost 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 because 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 subsequent increases in fair value can be attributed to events after 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 7(d). Interest income is recognized on debt securities, mortgages, private placements, policy loans, loans to Bank clients and certain other invested assets 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. The Company records purchases and sales of invested assets on a trade date basis. Loans originated by the Company are recognized on a settlement date basis. Real estate consists of both own use property and investment property. Own use property, held for use for the Company’s operations, 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. Fair value of own use property is determined using the same processes as for investment property, described below. 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 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 or loss 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 infrastructure and timber, as well as in agriculture and oil and gas sectors. Private equity investments are accounted for as associates or joint ventures 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, except for 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 primarily 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 fair value of 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 group of CGUs for impairment testing at the lowest level within the entity where the goodwill is monitored for internal management purposes. The allocation is made to those CGUs or group 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 with the carrying value of a CGU or group of CGUs. 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 remaining deficiency on a pro-rata The recoverable amount of a CGU or group of CGUs 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, certain investment management contracts and certain agricultural water rights. The indefinite useful life assessment for the John Hancock brand name is based on the brand name being protected by indefinitely renewable trademarks in markets where branded products are sold, and for certain investment management contracts based on 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. Certain agricultural water rights are held in perpetuity. 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 an indication that it is not recoverable arises. Intangible assets with finite useful lives include acquired distribution networks, customer relationships, capitalized software, and 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 three (g) Miscellaneous assets Miscellaneous assets include assets held in a rabbi trust with respect to unfunded defined benefit obligations, defined benefit assets, if any, deferred acquisition costs and capital assets. Rabbi trust assets are carried at fair value. Defined benefit assets carrying value is explained in note 1(o). Deferred acquisition costs are carried at cost less accumulated amortization and are amortized over the period 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 (h) Segregated funds The Company manages segregated funds on behalf of policyholders, which are presented as segregated fund net assets with offsetting segregated funds net liabilities to policyholders in the amount of their account balances. Amounts invested by the Company in segregated funds for seed purposes are presented within invested asset categories based on the nature of the underlying investments. 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 include investments in mutual funds, debt securities, equities, cash, short-term investments and other investments. 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 from the investments. 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 and administering the segregated funds is included in other revenue. 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 in the general fund, which are included 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 FVTPL by election. The election reduces accounting mismatches between FVTPL assets supporting these contracts and the related contract liabilities. Investment contract liabilities are derecognized when the contract expires, is discharged or is cancelled. Derivatives embedded within insurance contracts are separately accounted for as derivatives 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 FVTPL. (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 7(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 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 for 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 assets and liabilities 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, associates and joint ventures, 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 liabilities for uncertain tax positions if it is probable that the Company will make a payment on tax positions due to 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 current 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 |
Accounting and Reporting Change
Accounting and Reporting Changes | 12 Months Ended |
Dec. 31, 2022 | |
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Accounting and Reporting Changes | Note 2 Accounting and Reporting Changes (a) Changes in accounting and reporting policy (i) Annual Improvements 2018 – 2020 Cycle Annual Improvements 2018–2020 Cycle was issued in May 2020 and is effective on or after January 1, 2022. The IASB issued four minor amendments to different standards as part of the Annual Improvements process, to be applied prospectively. Adoption of these amendments did not have a significant impact on the Company’s Consolidated Financial Statements. (ii) Amendments to IFRS 3 “Business Combinations” Amendments to IFRS 3 “Business Combinations” were issued in May 2020, and are effective on or after January 1, 2022, with earlier application permitted. The amendments update references within IFRS 3 to the 2018 Conceptual Framework and require that the principles in IAS 37 “Provisions, Contingent Liabilities and Contingent Assets” be used to identify liabilities and contingent assets arising from a business combination. Adoption of these amendments did not have a significant impact on the Company’s Consolidated Financial Statements. (iii) Amendments to IAS 37 “Provisions, Contingent Liabilities and Contingent Assets” Amendments to IAS 37 “Provisions, Contingent Liabilities and Contingent Assets” were issued in May 2020, and are effective on or after January 1, 2022, with earlier application permitted. The amendments address identifying onerous contracts and specify the cost of fulfilling a contract which includes all costs directly related to the contract. These include incremental direct costs and allocations of other costs that relate directly to fulfilling the contract. 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 17 “Insurance Contracts” IFRS 17 “Insurance Contracts” was issued in May 2017 to be effective for years beginning on January 1, 2021. Amendments to IFRS 17 “Insurance Contracts” were issued in June 2020 and include a two-year Narrow-scope amendments to IFRS 17 “Insurance Contracts” were issued in December 2021 and were effective on initial application of IFRS 17 and IFRS 9 “Financial Instruments” which the Company has adopted on January 1, 2023. The amendments reduce accounting mismatches between insurance contract liabilities and financial assets in scope of IFRS 9 within comparative prior periods when initially applying IFRS 17 and IFRS 9. The amendments allow insurers to present comparative information on financial assets as if IFRS 9 were fully applicable during the comparative period. The amendments do not permit application of IFRS 9 hedge accounting principles to the comparative period. The principles underlying IFRS 17 differ from CALM as permitted by IFRS 4. While there are many differences, the following outlines some of the key measurement differences: • Under IFRS 17 new business gains are recorded on the Consolidated Statements of Financial Position (in the Contractual Service Margin (“CSM”) component of the insurance contract liability) and amortized into income as services are provided. New business losses are recorded into income immediately. Under CALM, both new business gains and new business losses were recognized in income immediately. • Under IFRS 17 the Company aggregates insurance contracts that are subject to similar risks and managed together into portfolios. Since new business gains and losses have different accounting treatments, insurance contracts are further aggregated into groups by profitability and issuance period to limit offsetting of new business gains and losses. Such aggregation of contracts into groups is required on initial recognition and not reassessed subsequently. Under CALM, new business gains and new business losses offset each other in income. • Under IFRS 17 the discount rate used to estimate the present value of insurance contract liabilities is based on the characteristics of the liabilities. Under CALM, the rates of returns for current and projected assets supporting insurance contract liabilities were used to value the liabilities. The difference in the discount rate approach also impacts the timing of investment results. Under IFRS 17, the impact of investing activities will emerge into earnings over the life of the assets. Under CALM, the impact of investing activities was capitalized into reserves and therefore earnings in the period they occurred. • Under IFRS 17 the insurance contract liability discount rate is not related to the expected return on Alternative Long-Duration Assets (“ALDA”) and public equity assets, and as a result, the earnings sensitivity of a change in return assumptions for ALDA and public equity assets will be significantly reduced. • Under IFRS 17 the Company has elected the option to record changes in insurance contract liabilities arising from changes in interest rates through other comprehensive income, for substantially all insurance products, and classify debt instruments supporting these insurance contract liabilities as fair value through other comprehensive income (“FVOCI”) under IFRS 9. Under CALM, changes in insurance contract liabilities were recorded in income and supporting debt instruments were classified as FVTPL. • Under IFRS 17 the Company separates specific embedded derivatives and distinct investment components from insurance contracts and accounts for them under IFRS 9. Under IFRS 4 the treatment of embedded derivatives is consistent with IFRS 17, however under IFRS 4 the Company did not separate deposit components as this was not required by the standard. • Under IFRS 17 insurance contracts with different features are measured by one of the three measurement models: General Measurement Model (“GMM”), Premium Allocation Approach (“PAA”) and Variable Fee Approach (“VFA”). Under IFRS 4, insurance contracts were generally valued by one measurement model, although an unearned premium reserve method similar to PAA was allowed and used by Manulife for certain short duration / annually renewable business. In addition, there are significant changes to presentation and disclosure of the financial statements. The following outlines some of the key presentation and disclosure changes: • Consolidated Statements of Financial Position: Under IFRS 17 the Company presents portfolios of insurance and reinsurance contracts issued separately from portfolios of reinsurance contracts held, and portfolios in asset position are further presented separately from portfolios in liability position. Under CALM, contracts were not split and presented by asset and liability position. • Consolidated Statements of Comprehensive Income: Under IFRS 17 the Company separately presents insurance revenue, insurance service expense, insurance finance income or expenses, and income or expenses from reinsurance contracts held. Under CALM the Company reported premium income, gross claims and benefits, changes in insurance contract liabilities, benefits and expenses ceded to reinsurers, and changes in reinsurance assets. IFRS 17 Transition The Company is required to prepare an opening balance sheet as at January 1, 2022, the date of transition to IFRS 17, which forms the starting point for its financial reporting in accordance with IFRS 17. Any differences between the carrying value and the presentation of assets, liabilities and equity determined in accordance with CALM and IFRS 17, as at January 1, 2022 , On the transition date, January 1, 2022, the Company; • Identified, recognized, and measured each group of contracts as if IFRS 17 had always applied, unless it was impracticable (see Full Retrospective Approach and Fair Value Approach below); • Identified, recognized, and measured assets for insurance acquisition cash flows as if IFRS 17 had always applied, unless it was impracticable. However, no recoverability assessment was performed before the transition date; • Derecognized any balances that would not exist had IFRS 17 always applied; • Measured own use real estate properties that were underlying items of insurance contracts with direct participation features at fair value; and • Recognized any resulting net difference in equity. Full Retrospective Approach The Company has adopted IFRS 17 retrospectively unless the full retrospective approach was deemed impracticable. The Company has applied the full retrospective approach to most contracts issued on or after January 1, 2021, except for participating insurance contracts and variable annuity contracts for which the fair value approach was used. Fair Value Approach The Company has applied the fair value approach to all insurance contracts issued prior to January 1, 2021, as obtaining reasonable and supportable information to apply the full retrospective approach was deemed impracticable. IFRS 17 allows the use of the fair value approach for groups of insurance contracts with direct participation features if the risk mitigation option is applied prospectively from the transition date and the Company used derivatives, reinsurance contracts held or non-derivative Under the fair value approach, the Company has determined the CSM of the GMM and VFA liabilities for remaining coverage at the transition date as the difference between the fair value of the groups of insurance contracts and the fulfilment cash flows measured at that date. In determining the fair value, the Company has applied the requirements of IFRS 13 “Fair Value Measurement”, except for the demand deposit floor requirement. The Company used the income approach to determine the fair value of the insurance contracts at the transition date, in which future cash flows are discounted to a single amount that reflects current market expectations about those future amounts. To determine groups of insurance contracts under the fair value approach the Company has aggregated contracts issued more than one year apart as it did not have reasonable and supportable information to divide groups into those including only contracts issued within one year or less. For the application of the fair value approach, the Company has used reasonable and supportable information available at the transition date in order to: • Identify groups of insurance contracts; • Determine whether an insurance contract meets the definition of an insurance contract with direct participation features; • Identify discretionary cash flows for insurance contracts without direct participation features; and • Determine whether an investment contract meets the definition of an investment contract with discretionary participation features. For insurance contracts where the fair value approach was applied, the discount rate used to determine the fair value of the group of insurance contracts was determined at the transition date. For cash flows of insurance contracts that do not vary based on the returns on underlying items, the Company determines discount rates by adjusting a liquid risk-free yield curve to reflect the differences between the liquidity characteristics of the financial instruments that underlie the rates observed in the market and the liquidity characteristics of the insurance contracts (a bottom-up approach). Other Comprehensive Income at Transition Under IFRS 17 changes in the carrying amount of insurance contracts arising from the effect of and changes in the time value of money and in financial risk are presented as insurance finance income or expense (except for some changes for insurance contracts with direct participation features under certain circumstances). Under IFRS 17 the Company has the option to present all insurance finance income or expense in profit or loss or disaggregated between profit or loss and OCI (the “OCI option”). The Company has elected the OCI option and determined the cumulative OCI balance at transition as follows: • For some GMM and PAA groups of contracts where the fair value approach was applied, the cumulative OCI was set retrospectively only if reasonable and supportable information was available, otherwise it was set to zero at the transition date. • For GMM groups of contracts where the full retrospective approach was applied, the cumulative balance was calculated as if the Company had been applying the OCI option since inception of the contracts. • For VFA contracts, the cumulative OCI at transition was set equal to the difference between the market value and carrying value of the underlying items. Reclassification of Financial Assets for the Comparative Period of IFRS 17 Adoption Under the amendments to IFRS 17 with regard to the “Initial Application of IFRS 17 and IFRS 9 – Comparative Information” (“IFRS 17 amendments”), the Company has elected the option to reclassify financial assets, including those held in respect of activities not connected to contracts within the scope of IFRS 17, on an instrument-by-instrument The following table presents invested assets by type and measurement category as at December 31, 2021, with transitional measurement differences and presentation differences and then invested assets by type and category as at January 1, 2022. December 31, 2021 Impact of IFRS 17 January 1, 2022 IAS 39 Measurement Total carrying Measurement Presentation Total carrying Measurement Cash and short-term securities AFS $ 14,339 $ – $ 2,214 $ 16,553 FVOCI (1) FVTPL 2,214 – (2,214 ) – FVTPL (2) Amortized cost 6,041 – – 6,041 Amortized cost ( 22,594 – – 22,594 Debt securities AFS 33,097 – 184,365 217,462 FVOCI ( 1 FVTPL 189,722 – (184,365 ) 5,357 FVTPL (2) Amortized cost 1,320 – – 1,320 Amortized cost (3) 224,139 – – 224,139 Public equities AFS 2,351 – (2,351 ) – FVTPL 25,716 – 2,351 28,067 FVTPL ( 2 28,067 – – 28,067 Mortgages AFS – 1,897 29,901 31,798 FVOCI ( 1 FVTPL – 37 1,166 1,203 FVTPL (2) Amortized cost 52,014 – (31,067 ) 20,947 Amortized cost ( 52,014 1,934 – 53,948 Private placements AFS – 4,407 42,175 46,582 FVOCI ( 1 FVTPL – 40 667 707 FVTPL (2) Amortized cost 42,842 – (42,842 ) – Amortized cost ( 42,842 4,447 – 47,289 Policy loans Amortized cost 6,397 – (6,397 ) – N/A (4) Loans to Bank clients Amortized cost 2,506 – – 2,506 Amortized cost ( Other invested asset s AFS 89 (4 ) 238 323 FVOCI (1) FVTPL 21,157 (10 ) 617 21,764 FVTPL (2) Amortized cost 855 – (855 ) – Amortized cost 22,101 (14 ) – 22,087 Total in-scope 400,660 6,367 (6,397 ) 400,630 Out-of-scope (5) Other 26,438 1,035 – 27,473 Other (5) Total Invested Assets $ 427,098 $ 7,402 $ (6,397 ) $ 428,103 (1) The reclassification of unrealized gains (losses), net of tax, of $11,868 from retained earnings to accumulated other comprehensive income (AOCI) related to FVOCI classification of debt investments classified as FVTPL under IAS 39. (2) The reclassification of unrealized gains (losses), net of tax, of $268 from AOCI to retained earnings related to FVTPL classification of debt securities classified as FVOCI under IAS 39. (3) The remeasurement of debt securities from amortized cost to FVOCI or FVTPL resulted in an increase in carrying value of $6,367. The impact on AOCI and retained earnings, net of (4) Policy loans were reclassified from invested assets to insurance contract liabilities under IFRS 17 with no remeasurement and no impact to equity. (5) Own use real estate properties which are underlying items for insurance contracts with direct participating features were remeasured to fair value as if they were investment properties, as permitted by IFRS 17. This remeasurement resulted in an increase of carrying value of $1,035. The impact to retained earnings, net of tax, was $915. The Company has elected to apply the impairment requirements of IAS 39 (incurred losses) for the comparative period as provided for under IFRS 17. Accordingly, for assets that were classified as FVTPL under IAS 39, where no impairment was required, but were reclassified to FVOCI or amortized cost under IFRS 9 for the comparative period, the Company did not measure any impairment for the comparative period since IAS 39 impairment was not calculated. (1) Opening balance sheet under IFRS 17 “Insurance Contracts” including classification and measurement changes of financial assets Effects from applying IFRS 17 resulted in a reduction of total equity of IFRS 4 & IAS 39 OPENING IFRS BALANCE SHEET IFRS 17 & IAS 39 January 1, Measurement Differences Transition Contract Measurement Presentation Assets Total invested assets $ 427,098 $ – $ 7,402 $ (6,397 ) $ 428,103 Total other assets 90,757 2,877 5,617 1,078 100,329 Segregated funds net assets 399,788 – – – 399,788 Total assets $ 917,643 $ 2,877 $ 13,019 $ (5,319 ) $ 928,220 Liabilities and Equity Insurance contract liabilities $ 392,275 $ 21,466 (1) $ 10,014 $ (18,134 ) $ 405,621 Segregated funds insurance net liabilities – – – 130,836 130,836 Total insurance contract liabilities 392,275 21,466 10,014 112,702 536,457 Total investment contract liabilities 3,116 – – 275,900 279,016 Other liabilities 63,595 (2,823 ) (784 ) 5,867 65,855 Segregated funds net liabilities 399,788 – – (399,788 ) – Total liabilities 858,774 18,643 9,230 (5,319 ) 881,328 Equity Shareholders’ r 23,492 (13,607 ) (229 ) – 9,656 Shareholders’ accumulated other comprehensive income (loss) Net insurance finance expenses – – (17,117 ) – (17,117 ) Net reinsurance finance income – – 984 – 984 FVOCI investments 848 – 16,916 – 17,764 Other equity items 34,068 – – 34,068 Total shareholders’ equity 58,408 (13,607 ) 554 – 45,355 Participating policyholders’ equity (1,233 ) (1,440 ) (1) 2,774 – 101 Non-controlling 1,694 (719 ) (1) 461 – 1,436 Total equity 58,869 (15,766 ) 3,789 – 46,892 Total liabilities and equity $ 917,643 $ 2,877 $ 13,019 $ (5,319 ) $ 928,220 (1) The post-tax CSM in the participating policyholders’ fund of $1.4 billion is expected to be recognized in shareholder net income over time. In addition, $0.7 billion of post-tax CSM is attributable to non-controlling interests. The following table shows the nature and amount of the measurement adjustments made to the opening balance sheet: Measurement D Description Transition CSM Contractual Service Margin (CSM) is a new liability that represents future unearned profits on insurance contracts written. For this measurement step, the amount recognized as at the transition date, January 1, 2022 , , Contract Measurement Under IFRS 17 other components of insurance contracts, aside from the CSM, are also remeasured. This measurement step includes the following changes: Risk Adjustment (+2.1 billion to equity) (1) non-economic Discount Rates (-1.5 (1) Other Revaluation Changes (+3.1 billion to equity): Participating and Non-Controlling In previous steps all impacts to equity were shown in shareholders’ equity. This step shows the geography of the impacts between shareholders’ equity, participating policyholders’ equity and non-controlling (1) Excluding impacts on variable annuity guarantee contracts The presentation differences are mainly comprised of the following: • Policy loans invested assets • Contract classification • Insurance receivables & payables • Embedded derivatives • Reinsurance funds withheld • Deferred acquisition cost • Segregated fund net liabilities (ii) 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. In conjunction with the amendments to IFRS 17 “Insurance Contracts” issued in June 2020, the IASB amended IFRS 4 “Insurance Contracts” to permit eligible insurers to apply IFRS 9 effective January 1, 2023, alongside IFRS 17. The standard replaced 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 activity 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. When IFRS 9 is first adopted, entities have the option to apply the hedge accounting requirements under IFRS 9 or to continue to apply the hedge accounting requirements under IAS 39. Such option will apply to all hedge accounting relationships. Revisions issued in July 2014 replaced the existing incurred loss model used for measuring the allowance for credit losses with an expected 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. They also addressed the income statement accounting mismatches and short-term volatility issues which have been identified as a result of the insurance contracts project. The Company has adopted IFRS 9 beginning on January 1, 2023, as permitted under the June 2020 amendments to IFRS 4 “Insurance Contracts”. Consistent with IFRS 17 amendments, the adoption of IFRS 9 resulted in certain differences in the classification and measurement of financial assets when compared to their classification and measurement under IAS 39. The most significant changes included billion of debt securities previously classified as FVTPL which are classified as FVOCI (see note 2(b)(i)). The Company has elected to apply the hedge accounting requirements under IFRS 9 to all hedge accounting relationships prospectively. As at January 1, 2023, all existing IAS 39 hedge accounting relationships were assessed and qualify for hedge accounting under IFRS 9. These existing relationships are treated as continuing hedge accounting relationships under IFRS 9 beginning on January 1, 2023; and will be disclosed with comparative information for 2022 under IAS 39. The Company will also be designating new hedge accounting relationships with the objective to reduce accounting mismatches between existing derivatives’ changes in income and financial risk changes in OCI for IFRS 17 insurance liabilities and IFRS 9 financial assets. New hedge accounting relationships are effective prospectively on January 1, 2023; and will not have comparative disclosure in the financial statements for 2022. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2022 | |
Text block [abstract] | |
Acquisitions | Note 3 Acquisitions (a) Manulife TEDA Fund Management In November, 2022 the Company acquired control of Manulife TEDA Fund Management Co., LTD through the purchase of the remaining 51% of shares that it did not already own from its joint venture partner. The transaction furthers the Company’s goals of expanding both its Asian and asset management businesses. The transaction consideration previous joint venture interest with a fair value of |
Invested Assets and Investment
Invested Assets and Investment Income | 12 Months Ended |
Dec. 31, 2022 | |
Text block [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, 2022 FVTPL (1) AFS (2) Other (3) Total carrying (4) Total fair (5) Cash and short-term securities (6) $ 1,933 $ 10,926 $ 6,294 $ 19,153 $ 19,153 Debt securities (3),(7),(8) Canadian government and agency 14,798 6,468 – 21,266 21,266 U.S. government and agency 9,440 14,384 912 24,736 24,494 Other government and agency 22,986 3,487 – 26,473 26,473 Corporate 120,897 7,745 499 129,141 128,972 Mortgage/asset-backed securities 2,152 136 – 2,288 2,288 Public equities (9) 21,989 1,530 – 23,519 23,519 Mortgages – – 54,638 54,638 51,429 Private placements (8) – – 47,057 47,057 41,968 Policy loans – – 6,894 6,894 6,894 Loans to Bank clients – – 2,781 2,781 2,760 Real estate Own use property (10) – – 1,878 1,878 3,033 Investment property – – 11,394 11,394 11,394 Other invested assets Alternative long-duration assets (11) 26,348 79 12,012 38,439 39,225 Various other (12) 131 – 4,213 4,344 4,344 Total invested assets $ 220,674 $ 44,755 $ 148,572 $ 414,001 $ 407,212 As at December 31, 2021 FVTPL (1) AFS (2) Other (3) Total carrying (4) Total fair (5) Cash and short-term securities (6) $ 2,214 $ 14,339 $ 6,041 $ 22,594 $ 22,594 Debt securities (7),(8) Canadian government and agency 18,706 3,964 – 22,670 22,670 U.S. government and agency 12,607 18,792 852 32,251 32,254 Other government and agency 21,888 2,871 – 24,759 24,759 Corporate 133,763 7,332 468 141,563 141,560 Mortgage/asset-backed securities 2,758 138 – 2,896 2,896 Public equities (9) 25,716 2,351 – 28,067 28,067 Mortgages – – 52,014 52,014 54,089 Private placements (8) – – 42,842 42,842 47,276 Policy loans – – 6,397 6,397 6,397 Loans to Bank clients – – 2,506 2,506 2,503 Real estate Own use property (10) – – 1,812 1,812 3,024 Investment property – – 11,421 11,421 11,421 Other invested assets Alternative long-duration assets (11) 21,022 89 10,093 31,204 31,863 Various other (12) 135 – 3,967 4,102 4,102 Total invested assets $ 238,809 $ 49,876 $ 138,413 $ 427,098 $ 435,475 (1) 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, and leveraged leases. Also includes debt securities classified as held-to-maturity (4) Invested assets above include debt securities, mortgages, private placements and approximately $302 (2021 – $323) of other invested assets, which primarily have contractual cash flows that qualify as Solely Payment of Principal and Interest (“SPPI”). Invested assets which do not have SPPI qualifying cash flows as at December 31, 2022 include debt securities, private placements and other invested assets with fair values of $nil, $98 and $507, respectively (2021 – $nil, $181 and $518, respectively). The change in the fair value of these invested assets during the year was $(94) (2021 – $15). (5) The methodologies used in determining fair values of invested assets are described in note 1(c) and note 4(g). (6) Includes short-term securities with maturities of less than one year at acquisition amounting to $4,148 (2021 – $7,314) cash equivalents with maturities of less than 90 days at acquisition amounting to $8,711 (2021 – $9,239) and cash of $6,294 (2021 – $6,041). (7) Debt securities include securities which were acquired with maturities of less than one year and less than 90 days of $1,787 and $870, respectively (2021 – $2,196 and $347, respectively). (8) Floating rate invested assets above which are subject to interest rate benchmark reform, but have not yet transitioned to replacement reference rates, include debt securities benchmarked to CDOR, USD LIBOR and AUD BBSW of $173, $892 and $15 (2021 – $176, $1,002 and $nil respectively), and private placements benchmarked to USD LIBOR, AUD BBSW and NZD BKBM of $1,613, $199 and $43 (2021 – $1,984, $166 and $43, respectively). Exposures indexed to USD LIBOR represent floating rate invested assets with maturity dates beyond June 30, 2023 while exposures to CDOR represent floating rate invested assets with maturity dates beyond June 28, 2024. The interest rate benchmark reform is expected to have an impact on the valuation of invested assets whose value is tied to the affected interest rate benchmarks. The Company has assessed its exposure at the contract level, by benchmark and instrument type. The Company is monitoring market developments with respect to alternative reference rates and the time horizon during which they will evolve. As at December 31, 2022, the interest rate benchmark reform has not resulted in significant changes in the Company’s risk management strategy. (9) Includes $1 (2021 – $5) of public equities that are managed in conjunction with the Company’s ALDA strategy. (10) Includes accumulated depreciation of $411 (2021 – $407). (11) ALDA include investments in private equity of $14,279, infrastructure of $12,761, oil and gas of $2,221, timber and agriculture of $5,979 and various other invested assets of $3,199 (2021 – $11,598, $9,824, $1,950, $5,259 and $2,573, respectively). (12) Includes $3,840 (2021 – $3,457) of leveraged leases. Refer to note 1(e). (b) Equity method accounted invested assets Other invested assets include i n 2022 2021 As at December 31, Carrying % of total Carrying % of total Leveraged leases $ 3,840 37 $ 3,457 40 Timber and agriculture 822 8 808 9 Real estate 1,845 18 1,528 17 Other 3,785 37 3,025 34 Total $ 10,292 100 $ 8,818 100 The Company’s share of profit and dividends from these investments for the year ended December 31, 2022 were $851 and $nil, respectively (2021 – $1,300 and $2). (c) Investment income For the year ended December 31, 2022 FVTPL AFS Other (1) Total Cash and short-term securities Interest income $ 40 $ 272 $ – $ 312 Gains (losses) (2) 26 85 – 111 Debt securities Interest income 6,221 738 66 7,025 Gains (losses) (2) (32,732 ) (549 ) – (33,281 ) Recovery (impairment loss), net (11 ) – – (11 ) Public equities Dividend income 500 45 – 545 Gains (losses) (2) (3,819 ) 201 – (3,618 ) Impairment loss, net – (14 ) – (14 ) Mortgages Interest income – – 1,913 1,913 Gains (losses) (2) – – 57 57 Provision, net – – 1 1 Private placements Interest income – – 2,021 2,021 Gains (losses) (2) – – 335 335 Impairment loss, net – – (4 ) (4 ) Policy loans – – 385 385 Loans to Bank clients Interest income – – 138 138 Provision, net – – (4 ) (4 ) Real estate Rental income, net of depreciation (3) – – 452 452 Gains (losses) (2) – – (478 ) (478 ) Impairment loss, net – – – – Derivatives Interest income, net 494 – (24 ) 470 Gains (losses) (2) (10,628 ) – (9 ) (10,637 ) Other invested assets Interest income – – 26 26 Oil and gas, timber, agriculture and other income – – 2,846 2,846 Gains (losses) (2) 1,172 13 474 1,659 Impairment loss, net – (119 ) – (119 ) Total investment income $ (38,737 ) $ 672 $ 8,195 $ (29,870 ) Investment income Interest income $ 6,755 $ 1,010 $ 4,525 $ 12,290 Dividend, rental and other income 500 45 3,298 3,843 Impairments, provisions and recoveries, net (11 ) (133 ) (7 ) (151 ) Other (794 ) (216 ) 235 (775 ) 6,450 706 8,051 15,207 Realized and unrealized gains (losses) on assets supporting insurance and investment contract liabilities and on the macro hedge program Debt securities (32,599 ) (76 ) – (32,675 ) Public equities (3,626 ) 24 – (3,602 ) Mortgages – – 58 58 Private placements – – 336 336 Real estate – – (471 ) (471 ) Other invested assets 1,572 18 230 1,820 Derivatives, including macro hedge program (10,534 ) – (9 ) (10,543 ) (45,187 ) (34 ) 144 (45,077 ) Total investment income $ (38,737 ) $ 672 $ 8,195 $ (29,870 ) For the year ended December 31, 2021 FVTPL AFS Other (1) Total Cash and short-term securities Interest income $ 12 $ 84 $ – $ 96 Gains (losses) (2) 85 (22 ) – 63 Debt securities Interest income 5,645 576 9 6,230 Gains (losses) (2) (5,600 ) (266 ) – (5,866 ) Impairment loss, net 28 1 – 29 Public equities Dividend income 670 61 – 731 Gains (losses) (2) 3,221 250 – 3,471 Impairment loss, net – (3 ) – (3 ) Mortgages Interest income – – 1,709 1,709 Gains (losses) (2) – – 133 133 Provision, net – – 1 1 Private placements Interest income – – 1,931 1,931 Gains (losses) (2) – – 270 270 Impairment loss, net – – 45 45 Policy loans – – 366 366 Loans to Bank clients Interest income – – 77 77 Provision, net – – (2 ) (2 ) Real estate Rental income, net of depreciation (3) – – 453 453 Gains (losses) (2) – – 677 677 Derivatives Interest income, net 1,085 – (35 ) 1,050 Gains (losses) (2) (5,925 ) – (14 ) (5,939 ) Other invested assets Interest income – – 57 57 Oil and gas, timber, agriculture and other income – – 2,996 2,996 Gains (losses) (2) 2,554 23 527 3,104 Impairment loss, net – – (55 ) (55 ) Total investment income $ 1,775 $ 704 $ 9,145 $ 11,624 Investment income Interest income $ 6,742 $ 661 $ 4,114 $ 11,517 Dividend, rental and other income 670 61 3,449 4,180 Impairments, provisions and recoveries, net 28 (2 ) (11 ) 15 Other (76 ) (66 ) 57 (85 ) 7,364 654 7,609 15,627 Realized and unrealized gains (losses) on assets supporting insurance and investment contract liabilities and on the macro hedge program Debt securities (5,605 ) 20 – (5,585 ) Public equities 3,187 33 – 3,220 Mortgages – – 133 133 Private placements – – 270 270 Real estate – – 696 696 Other invested assets 2,628 (3 ) 451 3,076 Derivatives, including macro hedge program (5,799 ) – (14 ) (5,813 ) (5,589 ) 50 1,536 (4,003 ) Total investment income $ 1,775 $ 704 $ 9,145 $ 11,624 (1) Primarily includes investment income on loans carried at amortized cost, own use real estate properties, investment properties, derivative and hedging instruments in cash flow hedging relationships, equity method accounted investments, oil and gas investments, and leveraged leases. (2) Includes net realized and unrealized gains (losses) for financial instruments at FVTPL, 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. (3) Rental income from investment properties is net of direct operating expenses. (d) Investment expenses The following table presents total investment expenses. For the years ended December 31, 2022 2021 Related to invested assets $ 718 $ 633 Related to segregated, mutual and other funds 1,145 1,347 Total investment expenses $ 1,863 $ 1,980 (e) Investment properties The following table presents the rental income and direct operating expenses of investment properties. For the years ended December 31, 2022 2021 Rental income from investment properties $ 825 $ 837 Direct operating expenses of rental investment properties (458 ) (464 ) Total $ 367 $ 373 (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 is no credit exposure from securitized mortgages under the Canada Mortgage and Housing Corporation (“CMHC”) sponsored CMB securitization program 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. C a Securitized assets and secured borrowing liabilities As at December 31, 2022 Securitized assets Securitization program Securitized Restricted cash and short-term securities Total Secured borrowing (2) HELOC securitization (1) $ 2,880 $ 44 $ 2,924 $ 2,750 CMB securitization 2,318 – 2,318 2,273 Total $ 5,198 $ 44 $ 5,242 $ 5,023 As at December 31, 2021 Securitized assets Securitization program Securitized Restricted cash and short-term securities Total Secured borrowing (2) HELOC securitization (1) $ 2,618 $ 1 $ 2,619 $ 2,500 CMB securitization 2,075 – 2,075 2,098 Total $ 4,693 $ 1 $ 4,694 $ 4,598 (1) Manulife Bank, a subsidiary, securitizes a portion of its HELOC receivables through Platinum Canadian Mortgage Trust II (“PCMT II”). PCMT II funds the purchase of the co-ownership (2) The PCMT II notes payable have floating rates of interest and are secured by the PCMT II assets. Under the terms of the agreements, no principal is expected to be repaid within one year, $1,209 within 1-3 3-5 As at December 31, 2022, the fair value of securitized assets and associated liabilities were $5,167 and $4,865, respectively (2021 – $4,725 and $4,601 ). (g) Fair value measurement The following table presents the fair values of invested assets and segregated funds net assets measured at fair value categorized by the fair value hierarchy. As at December 31, 2022 Total fair value Level 1 Level 2 Level 3 Cash and short-term securities FVTPL $ 1,933 $ – $ 1,933 $ – AFS 10,926 – 10,926 – Other 6,294 6,294 – – Debt securities FVTPL Canadian government and agency 14,798 – 14,798 – U.S. government and agency 9,440 – 9,440 – Other government and agency 22,986 – 22,986 – Corporate 120,897 – 120,865 32 Residential mortgage-backed securities 7 – 7 – Commercial mortgage-backed securities 570 – 570 – Other asset-backed securities 1,575 – 1,549 26 AFS Canadian government and agency 6,468 – 6,468 – U.S. government and agency 14,384 – 14,384 – Other government and agency 3,487 – 3,478 9 Corporate 7,745 – 7,745 – Residential mortgage-backed securities 1 – 1 – Commercial mortgage-backed securities 24 – 24 – Other asset-backed securities 111 – 111 – Public equities FVTPL 21,989 21,918 – 71 AFS 1,530 1,530 – – Real estate – investment property (1) 11,394 – – 11,394 Other invested assets (2) 30,256 26 – 30,230 Segregated funds net assets (3) 348,562 314,436 30,141 3,985 Total $ 635,377 $ 344,204 $ 245,426 $ 45,747 As at December 31, 2021 Total fair value Level 1 Level 2 Level 3 Cash and short-term securities FVTPL $ 2,214 $ – $ 2,214 $ – AFS 14,339 – 14,339 – Other 6,041 6,041 – – Debt securities FVTPL Canadian government and agency 18,706 – 18,706 – U.S. government and agency 12,607 – 12,607 – Other government and agency 21,888 – 21,888 – Corporate 133,763 – 133,723 40 Residential mortgage-backed securities 8 – 8 – Commercial mortgage-backed securities 1,103 – 1,103 – Other asset-backed securities 1,647 – 1,619 28 AFS Canadian government and agency 3,964 – 3,964 – U.S. government and agency 18,792 – 18,792 – Other government and agency 2,871 – 2,871 – Corporate 7,332 – 7,331 1 Residential mortgage-backed securities 1 – 1 – Commercial mortgage-backed securities 79 – 79 – Other asset-backed securities 58 – 58 – Public equities FVTPL 25,716 25,716 – – AFS 2,351 2,349 2 – Real estate – investment property (1) 11,421 – – 11,421 Other invested assets (2) 24,300 257 – 24,043 Segregated funds net assets (3) 399,788 361,447 34,060 4,281 Total $ 708,989 $ 395,810 $ 273,365 $ 39,814 (1) For investment properties, the significant unobservable inputs are capitalization rates (ranging from 2.25% to 9.00% during the year and ranging from 2.25% to 9.00% during 2021), terminal capitalization rates (ranging from 3.25% to 9.50% during the year and ranging from 3.25% to 9.25% during 2021) and discount rates (ranging from 3.30% to 11.00% during the year and ranging from 3.80% to 10.50% during 2021). Holding other factors constant, a higher capitalization, terminal capitalization, and/or discount rate will decrease the fair value of an investment property; while decreases in these rates would have the opposite effect. 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 infrastructure and timber sectors. The significant inputs used in the valuation of the Company’s 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 an infrastructure investment, while an increase in the discount rate would have the opposite effect. Discount rates during the year ranged from 7.15% to 15.6% (2021 – ranged from 7.25% to 20.0%). 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 4.25% to 7.0% (2021 – ranged from 4.5% to 7.0%). 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 in investment properties and timberland properties valued as described above. The following table presents fair value of invested assets not measured at fair value by the fair value hierarchy. As at December 31, 2022 Carrying value Total fair value Level 1 Level 2 Level 3 Mortgages (1) $ 54,638 $ 51,429 $ – $ – $ 51,429 Private placements (2) 47,057 41,968 – 34,110 7,858 Policy loans (3) 6,894 6,894 – 6,894 – Loans to Bank clients (4) 2,781 2,760 – 2,760 – Real estate – own use property (5) 1,878 3,033 – – 3,033 Public Bonds HTM 1,411 1,000 – 1,000 – Other invested assets (6) 12,527 13,313 72 – 13,241 Total invested assets disclosed at fair value $ 127,186 $ 120,397 $ 72 $ 44,764 $ 75,561 As at December 31, 2021 Carrying value Total fair value Level 1 Level 2 Level 3 Mortgages (1) $ 52,014 $ 54,089 $ – $ – $ 54,089 Private placements (2) 42,842 47,276 – 42,110 5,166 Policy loans (3) 6,397 6,397 – 6,397 – Loans to Bank clients (4) 2,506 2,503 – 2,503 – Real estate – own use property (5) 1,812 3,024 – – 3,024 Public Bonds HTM 1,320 1,320 – 1,320 – Other invested assets (6) 11,006 11,665 120 – 11,545 Total invested assets disclosed at fair value $ 117,897 $ 126,274 $ 120 $ 52,330 $ 73,824 (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 investment property in note 1. (6) Primarily include leveraged leases, oil and gas properties (disposed of during 2021) 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, consistent with the date of the determination of fair value. Assets are transferred out of Level 1 when they are no longer transacted with sufficient frequency and volume in an active market. Conversely, assets are transferred from Level 2 to Level 1 when transaction volume and frequency are indicative of an active market. The Company had $nil of assets transferred between Level 1 and Level 2 during the years ended December 31, 2022 ( 2021 – For segregated funds net assets, the Company had $nil transfers from Level 1 to Level 2 for the year ended December 31, 2022 (2021 – $5). The Company had $nil transfers from Level 2 to Level 1 for the year ended December 31, 2022 ( 2021 – Invested assets and segregated funds net assets measured at fair value using significant unobservable inputs (Level 3) The Company classifies fair values of 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, most 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. The gains and losses in the table below includes the changes in fair value due to both observable and unobservable factors. The follo w For the year ended December 31, 2022 Balance, Total (1) Total (2) Purchases Sales Settlements Transfer in (3) Transfer out (3) Currency Balance, Change in Debt securities FVTPL Corporate $ 40 $ (1 ) $ – $ 27 $ – $ (1 ) $ 6 $ (40 ) $ 1 $ 32 $ (1 ) Other securitized assets 28 2 – – – (4 ) – – – 26 2 AFS Other government & agency – – – – – – 10 – (1 ) 9 – Corporate 1 – – – – – – (1 ) – – – Public equities FVTPL – (6 ) – 69 (84 ) – 87 – 5 71 (15 ) AFS – (1 ) 1 – – – – – – – – Investment property 11,421 (443 ) – 312 (237 ) – 15 – 326 11,394 (446 ) Other invested assets 24,043 1,922 7 4,934 (666 ) (1,474 ) 248 – 1,216 30,230 2,046 Total invested assets 35,533 1,473 8 5,342 (987 ) (1,479 ) 366 (41 ) 1,547 41,762 1,586 Derivatives, net 2,101 (5,413 ) (7 ) (109 ) – 775 – (356 ) (163 ) (3,172 ) (3,511 ) Segregated funds net assets 4,281 475 – 246 (1,113 ) (46 ) – (1 ) 143 3,985 79 Total $ 41,915 $ (3,465 ) $ 1 $ 5,479 $ (2,100 ) $ (750 ) $ 366 $ (398 ) $ 1,527 $ 42,575 $ (1,846 ) For the year ended December 31, 2021 Balance, Total (1) Total (2) Purchases Sales Settlements Transfer in (3) Transfer out (3) Currency Balance, Change in Debt securities FVTPL Corporate $ 510 $ 11 $ – $ 11 $ (93 ) $ – $ 11 $ (409 ) $ (1 ) $ 40 $ (8 ) Other securitized assets 45 3 – – (9 ) (39 ) 28 – – 28 (4 ) AFS Corporate 3 1 – – (3 ) – – – – 1 – Public equities FVTPL – – – 62 (62 ) – – – – – – Investment property 10,982 702 – 186 (376 ) – – – (73 ) 11,421 626 Other invested assets 19,049 2,731 2 5,058 (1,131 ) (1,453 ) 5 – (218 ) 24,043 2,569 Total invested assets 30,589 3,448 2 5,317 (1,674 ) (1,492 ) 44 (409 ) (292 ) 35,533 3,183 Derivatives, net 3,443 (897 ) – 14 – (182 ) – (309 ) 32 2,101 (547 ) Segregated funds net assets 4,202 350 – 68 (303 ) (28 ) – – (8 ) 4,281 116 Total $ 38,234 $ 2,901 $ 2 $ 5,399 $ (1,977 ) $ (1,702 ) $ 44 $ (718 ) $ (268 ) $ 41,915 $ 2,752 (1) These amounts are included in net investment income on the Consolidated Statements of Income except for the amount related to segregated funds net assets, where the amount is recorded in changes in segregated funds net assets, refer to notes 1(h) and 23. (2) These amounts are included in AOCI on the Consolidated Statements of Financial Position. (3) The Company uses fair values of the assets at the beginning of the year for assets transferred into and out of Level 3 except for derivatives, where the Company uses fair value at the end of the year and at the beginning of the year, respectively. 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 becoming available for the entire term structure of the debt security. |
Derivative and Hedging Instrume
Derivative and Hedging Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Text block [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 and Risk Factors” section of the Company’s 2022 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 quoted prices, 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 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 gross notional amount and fair value of derivative instruments by the underlying risk exposure. As at December 31, 2022 2021 Notional Fair value Notional Fair value Type of hedge Instrument type Assets Liabilities Assets Liabilities Derivatives in qualifying hedge accounting relationships Fair value hedges Foreign currency swaps $ 48 $ 5 $ – $ 57 $ 1 $ 1 Cash flow hedges Foreign currency swaps 1,155 40 203 1,251 5 379 Equity contracts 173 3 – 145 10 – Net investment hedges Forward contracts 626 – 28 671 9 – Total derivatives in qualifying hedge accounting relationships 2,002 48 231 2,124 25 380 Derivatives not designated in qualifying hedge accounting relationships Interest rate swaps 268,081 5,751 7,557 300,556 11,832 7,347 Interest rate futures 11,772 – – 11,944 – – Interest rate options 6,090 98 – 10,708 514 – Foreign currency swaps 39,667 2,029 1,579 36,405 790 1,722 Currency rate futures 2,319 – – 3,086 – – Forward contracts 45,124 295 4,697 45,295 2,674 562 Equity contracts 16,930 363 225 18,577 1,667 27 Credit default swaps 159 4 – 44 1 – Equity futures 3,813 – – 11,359 – – Total derivatives not designated in qualifying hedge accounting relationships 393,955 8,540 14,058 437,974 17,478 9,658 Total derivatives $ 395,957 $ 8,588 $ 14,289 $ 440,098 $ 17,503 $ 10,038 The to t de-designation The following table presents the fair values of the derivative instruments by the remaining term to maturity. Fair values disclosed below do not incorporate the impact of master netting agreements (refer to note 9). Remaining term to maturity As at December 31, 2022 Less than 1 year 1 to 3 years 3 to 5 years Over 5 years Total Derivative assets $ 580 $ 556 $ 556 $ 6,896 $ 8,588 Derivative liabilities 2,656 1,956 1,146 8,531 14,289 Remaining term to maturity As at December 31, 2021 Less than 1 year 1 to 3 years 3 to 5 years Over 5 years Total Derivative assets $ 2,500 $ 1,803 $ 1,000 $ 12,200 $ 17,503 Derivative liabilities 294 387 379 8,978 10,038 The foll o Remaining term to maturity (notional amounts) Fair value Capital requirement (2) As at December 31, 2022 Under 1 year 1 to 5 years Over 5 years Total Positive Negative Net Credit amount (1) Interest rate contracts OTC swap contracts $ 8,817 $ 19,253 $ 98,380 $ 126,450 $ 5,992 $ (8,135 ) $ (2,143 ) $ 419 $ 9 Cleared swap contracts 2,494 16,823 122,314 141,631 254 (219 ) 35 – – Forward contracts 14,290 13,926 198 28,414 70 (4,468 ) (4,398 ) 8 – Futures 11,772 – – 11,772 – – – – – Options purchased 1,199 1,069 3,822 6,090 98 – 98 64 4 Subtotal 38,572 51,071 224,714 314,357 6,414 (12,822 ) (6,408 ) 491 13 Foreign exchange Swap contracts 2,026 10,475 28,369 40,870 2,067 (1,846 ) 221 1,166 23 Forward contracts 17,336 – – 17,336 226 (258 ) (32 ) 89 – Futures 2,319 – – 2,319 – – – – – Credit derivatives 15 144 – 159 4 – 4 – – Equity contracts Swap contracts 547 396 – 943 26 (7 ) 19 24 – Futures 3,813 – – 3,813 – – – – – Options purchased 12,634 3,526 – 16,160 335 (218 ) 117 232 2 Subtotal including accrued interest 77,262 65,612 253,083 395,957 9,072 (15,151 ) (6,079 ) 2,002 38 Less accrued interest – – – – 484 (862 ) (378 ) – – Total $ 77,262 $ 65,612 $ 253,083 $ 395,957 $ 8,588 $ (14,289 ) $ (5,701 ) $ 2,002 $ 38 Remaining term to maturity (notional amounts) Fair value Capital requirement (2) As at December 31, 2021 Under 1 year 1 to 5 years Over 5 years Total Positive Negative Net Credit amount (1) Interest rate contracts OTC swap contracts $ 4,554 $ 21,884 $ 90,592 $ 117,030 $ 12,112 $ (7,717 ) $ 4,395 $ 1,582 $ 29 Cleared swap contracts 21,722 27,665 134,139 183,526 441 (453 ) (12 ) – – Forward contracts 14,636 15,791 741 31,168 2,625 (483 ) 2,142 299 5 Futures 11,944 – – 11,944 – – – – – Options purchased 1,406 2,789 6,513 10,708 515 – 515 113 9 Subtotal 54,262 68,129 231,985 354,376 15,693 (8,653 ) 7,040 1,994 43 Foreign exchange Swap contracts 1,941 8,869 26,903 37,713 801 (2,181 ) (1,380 ) 1,302 25 Forward contracts 14,798 – – 14,798 58 (79 ) (21 ) 85 – Futures 3,086 – – 3,086 – – – – – Credit derivatives 11 33 – 44 1 – 1 – – Equity contracts Swap contracts 669 323 – 992 57 (10 ) 47 29 – Futures 11,359 – – 11,359 – – – – – Options purchased 10,974 6,716 40 17,730 1,616 (17 ) 1,599 766 8 Subtotal including accrued interest 97,100 84,070 258,928 440,098 18,226 (10,940 ) 7,286 4,176 76 Less accrued interest – – – – 723 (902 ) (179 ) – – Total $ 97,100 $ 84,070 $ 258,928 $ 440,098 $ 17,503 $ (10,038) $ 7,465 $ 4,176 $ 76 (1) Credit equivalent amount is the sum of replacement cost and the potential future credit exposure less any collateral held. 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) Capital requirement represents the credit equivalent amount, weighted according to the creditworthiness of the counterparty, as prescribed by OSFI. The total notional amount of $396 billion (2021 – $440 billion) includes $77 billion (2021 – $121 billion) related to derivatives utilized in the Company’s variable annuity guarantee dynamic hedging and macro risk hedging programs. During 2022, the Company discontinued the dynamic hedging program for the John Hancock Life Insurance Company (U.S.A.) (“JHUSA”) legacy variable annuities, reinsured with Venerable Holdings, Inc. as disclosed in note 7(k). Due to the Company’s variable annuity hedging practices, many trades are in offsetting positions, resulting in materially lower net fair value exposure to the Company than what the gross notional amount would suggest. Fair value and the fair value hierarchy of derivative instruments As at December 31, 2022 Fair value Level 1 Level 2 Level 3 Derivative assets Interest rate contracts $ 5,919 $ – $ 5,766 $ 153 Foreign exchange contracts 2,299 – 2,298 1 Equity contracts 366 – 361 5 Credit default swaps 4 – 4 – Total derivative assets $ 8,588 $ – $ 8,429 $ 159 Derivative liabilities Interest rate contracts $ 12,025 $ – $ 8,689 $ 3,336 Foreign exchange contracts 2,039 – 2,037 2 Equity contracts 225 – 216 9 Total derivative liabilities $ 14,289 $ – $ 10,942 $ 3,347 As at December 31, 2021 Fair value Level 1 Level 2 Level 3 Derivative assets Interest rate contracts $ 14,971 $ – $ 12,510 $ 2,461 Foreign exchange contracts 854 – 854 – Equity contracts 1,677 – 1,616 61 Credit default swaps 1 – 1 – Total derivative assets $ 17,503 $ – $ 14,981 $ 2,522 Derivative liabilities Interest rate contracts $ 7,829 $ – $ 7,419 $ 410 Foreign exchange contracts 2,182 – 2,181 1 Equity contracts 27 – 17 10 Total derivative liabilities $ 10,038 $ – $ 9,617 $ 421 Level 3 r o (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, 2022 Hedged items in qualifying fair value hedging relationships Gains (losses) Gains (losses) Ineffectiveness Foreign currency swaps Fixed rate assets $ 7 $ (5 ) $ 2 Total $ 7 $ (5 ) $ 2 For the year ended December 31, 2021 Hedged items in qualifying fair value hedging relationships Gains (losses) Gains (losses) Ineffectiveness Foreign currency swaps Fixed rate assets $ 4 $ (2 ) $ 2 Total $ 4 $ (2 ) $ 2 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, 2022 Hedged items in qualifying Gains (losses) Gains (losses) Ineffectiveness Foreign currency swaps Fixed rate assets $ (1 ) $ (1 ) $ – Floating rate liabilities 175 (49 ) – Fixed rate liabilities 34 35 – Equity contracts Stock-based compensation 2 6 – Total $ 210 $ (9) $ – For the year ended December 31, 2021 Hedged items in qualifying Gains (losses) Gains (losses) Ineffectiveness Foreign currency swaps Fixed rate assets $ (1 ) $ (1 ) $ – Floating rate liabilities 89 3 – Fixed rate liabilities (19 ) (21 ) – Equity contracts Stock-based compensation 5 5 – Total $ 74 $ (14 ) $ – The Company anticipates that net losses of approximately $9 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 14 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, 2022 Gains (losses) Gains (losses) Ineffectiveness Non-functional $ (458 ) $ – $ – Forward contracts 14 – – Total $ (444 ) $ – $ – For the year ended December 31, 2021 Gains (losses) Gains (losses) Ineffectiveness Non-functional $ 61 $ – $ – Forward contracts 59 – – Total $ 120 $ – $ – (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 recorded through net income. Since 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. Investment income on derivatives not designated in qualifying hedge accounting relationships For the years ended December 31, 2022 2021 Interest rate swaps $ (3,428 ) $ (1,986 ) Interest rate futures (431 ) (687 ) Interest rate options (258 ) (133 ) Foreign currency swaps 1,171 (166 ) Currency rate futures (103 ) 66 Forward contracts (7,561 ) (1,751 ) Equity futures 794 (2,140 ) Equity contracts (818 ) 871 Credit default swaps – (2 ) Total $ (10,634 ) $ (5,928 ) (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, 2022, reinsurance ceded guaranteed minimum income benefits had a fair value of $585 (2021 – $734) and reinsurance assumed guaranteed minimum income benefits had a fair value of $65 (2021 – $86). 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 credit and interest rate risks that are financial risks embedded in the underlying insurance contract. As at December 31, 2022, these embedded derivatives had a fair value of $395 (2021 – $11). 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. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Text block [abstract] | |
Goodwill and Intangible Assets | Note 6 Goodwill and Intangible Assets (a) Change in the carrying value of goodwill and intangible assets The following table presents the change in carrying value of goodwill and intangible assets. As at December 31, 2022 Balance, Net additions/ (1)(2) Amortization Effect of changes Balance, Goodwill $ 5,651 $ 255 $ n/a $ 108 $ 6,014 Indefinite life intangible assets Brand 761 – n/a 52 813 Fund management contracts and other (3) 788 228 n/a 32 1,048 1,549 228 n/a 84 1,861 Finite life intangible assets (4) Distribution networks 888 6 47 34 881 Customer relationships 687 – 56 12 643 Software 1,091 192 235 20 1,068 Other 49 7 6 2 52 2,715 205 344 68 2,644 Total intangible assets 4,264 433 344 152 4,505 Total goodwill and intangible assets $ 9,915 $ 688 $ 344 $ $ 10,519 As at December 31, 2021 Balance, Net additions/ (5) Amortization Effect of changes Balance, Goodwill $ 5,714 $ (5 ) $ n/a $ (58 ) $ 5,651 Indefinite life intangible assets Brand 764 – n/a (3 ) 761 Fund management contracts and other (3) 796 (3 ) n/a (5 ) 788 1,560 (3 ) n/a (8 ) 1,549 Finite life intangible assets (4) Distribution networks 806 131 44 (5 ) 888 Customer relationships 738 (2 ) 48 (1 ) 687 Software 1,059 198 148 (18 ) 1,091 Other 52 2 6 1 49 2,655 329 246 (23 ) 2,715 Total intangible assets 4,215 326 246 (31 ) 4,264 Total goodwill and intangible assets $ 9,929 $ 321 $ 246 $ (89 ) $ 9,915 (1) In November 2022, the Company acquired control of Manulife TEDA Fund Management Company, LTD. through purchase of the remaining 51% of shares that it did not already own from transaction consideration and previous with a fair value of (2) In January 2022, the Company paid $256 to VietinBank for an extension of the life of the distribution agreement acquired from Aviva Plc in December 2021. (3) Fund management contracts are mostly allocated to Canada WAM and U.S. WAM CGUs with carrying values of $273 (2021 – $273) and $397 (2021 – $371), respectively. (4) Gross carrying amount of finite life intangible assets was $1,517 for distribution networks, $1,146 for customer relationships, $2,736 for software and $136 for other (2021 – (5) In December 2021, the Company purchased the Vietnamese operations of Aviva Plc including rights to an exclusive distribution agreement with VietinBank. (b) Goodwill impairment testing The Company completed its annual goodwill impairment testing in the fourth quarter of 2022 by determining the recoverable amounts of its businesses using valuation techniques discussed below (refer to notes 1(f) and 6(c)). The testing indicated that there was no impairment of goodwill in 2022 (2021 – $nil). The following tables present the carrying value of goodwill by CGU or group of CGUs. As at December 31, 2022 CGU or group of CGUs Balance, Net additions/ Effect of Balance, Asia Asia Insurance (excluding Japan) $ 152 $ – $ 10 $ 162 Japan Insurance 386 – (26 ) 360 Canada Insurance 1,955 – 5 1,960 U.S. Insurance 336 – 24 360 Global Wealth and Asset Management Asia WAM 183 255 12 450 Canada WAM 1,436 – – 1,436 U.S. WAM 1,203 – 83 1,286 Total $ 5,651 $ $ 108 $ 6,014 As at December 31, 2021 CGU or group of CGUs Balance, Net additions/ Effect of Balance, Asia Asia Insurance (excluding Japan) $ 159 $ (5 ) $ (2 ) $ 152 Japan Insurance 433 – (47 ) 386 Canada Insurance 1,955 – – 1,955 U.S. Insurance 338 – (2 ) 336 Global Wealth and Asset Management Asia WAM 185 – (2 ) 183 Canada WAM 1,436 – – 1,436 U.S. WAM 1,208 – (5 ) 1,203 Total $ 5,714 $ (5 ) $ (58 ) $ 5,651 The valuation techniques, significant assumptions and sensitivities, where applicable, applied in the goodwill impairment testing are described below. (c) Valuation techniques When determining if a CGU is impaired, the Company compares its recoverable amount to the allocated capital for that unit, which is aligned with the Company’s internal reporting practices. The recoverable amounts were based on fair value less costs to sell (“FVLCS”) for Asia Insurance (excluding Japan) and Asia WAM. For other CGUs, value-in-use 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 Under the VIU approach, used for CGUs with insurance business, an embedded appraisal value is determined from a projection of future distributable earnings derived from both the in-force non-insurance (d) Significant assumptions To calculate embedded appraisal value, the Company discounted projected earnings from in-force used nine six Interest rate assumptions are based on prevailing market rates at the valuation date. For 2022, tax rates applied to the projections include the impact of internal reinsurance treaties and amounted to 28.0 per cent, 27.5 per cent and 21.0 per cent for the Japan, Canada and U.S. jurisdictions, respectively. For 2021, tax rates applied to the projections include the impact of internal reinsurance treaties and amounted to 28.0 per cent, 26.5 per cent and 21.0 per cent for the Japan, Canada, and U.S. 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 Key assumptions may change as economic and market conditions change, which may lead to impairment charges in the future. Adverse changes in discount rates (including from changes in interest rates) and growth rate assumptions for new business cash flow projections used in the determination of embedded appraisal values or reductions in market-based earnings multiples calculations 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, 2022 | |
Text block [abstract] | |
Insurance Contract Liabilities and Reinsurance Assets | Note 7 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 reinsurance assets. 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, 2022 2021 Insurance contract liabilities $ 352,153 $ 374,890 Benefits payable and provision for unreported claims 5,610 5,251 Policyholder amounts on deposit 13,642 12,134 Gross insurance contract liabilities 371,405 392,275 Reinsurance assets (1) (47,674 ) (44,531 ) Net insurance contract liabilities $ 323,731 $ 347,744 (1) Reinsurance assets of $38 (2021 – $48) are related to investment contract liabilities, refer to note 8(b). 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 the line of business and reporting segment is as follows. Gross insurance contract liabilities Individual insurance Annuities Other (1) Total, net of Total Total, As at December 31, 2022 Participating Non- Asia $ 66,294 $ 34,684 $ 6,221 $ 4,142 $ 111,341 $ 2,727 $ 114,068 Canada 12,637 38,325 13,593 14,095 78,650 1,676 80,326 U.S. 7,867 67,789 11,273 46,849 133,778 43,137 176,915 Corporate and Other – (640 ) 24 578 (38 ) 134 96 Total, net of reinsurance ceded 86,798 140,158 31,111 65,664 323,731 47,674 371,405 Total reinsurance ceded 8,552 22,434 15,793 895 47,674 Total, gross of reinsurance ceded $ 95,350 $ 162,592 $ 46,904 $ 66,559 $ 371,405 Individual insurance Annuities Other (1) Total, net of Total Total, As at December 31, 2021 Participating Non- Asia $ 64,586 $ 36,387 $ 6,869 $ 3,590 $ 111,432 $ 2,749 $ 114,181 Canada 13,518 44,320 16,554 14,981 89,373 430 89,803 U.S. 8,591 71,077 14,007 53,555 147,230 41,150 188,380 Corporate and Other – (676 ) 22 363 (291 ) 202 (89 ) Total, net of reinsurance ceded 86,695 151,108 37,452 72,489 347,744 44,531 392,275 Total reinsurance ceded 8,144 20,767 14,681 939 44,531 Total, gross of reinsurance ceded $ 94,839 $ 171,875 $ 52,133 $ 73,428 $ 392,275 (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 consider 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, 2022, excluding reinsurance assets, was estimated at $317,854 ( 2021 – As at December 31, 2022, the fair value of assets backing capital and other liabilities was estimated at $524,297 (2021 – $571,431). The following table presents the carrying value of assets backing net insurance contract liabilities, other liabilities and capital. Individual insurance Annuities Other (1) Other (2) Capital (3) Total As at December 31, 2022 Participating Non- Assets Debt securities $ 42,279 $ 72,706 $ 15,686 $ 31,998 $ 9,739 $ 31,496 $ 203,904 Public equities 12,253 6,792 336 562 675 2,901 23,519 Mortgages 4,378 14,101 4,350 8,766 22,997 46 54,638 Private placements 6,810 19,498 8,038 10,497 2,003 211 47,057 Real estate 3,346 7,030 913 1,875 (66 ) 174 13,272 Other 17,732 20,031 1,788 11,966 427,369 27,665 506,551 Total $ 86,798 $ 140,158 $ 31,111 $ 65,664 $ 462,717 $ 62,493 $ 848,941 Individual insurance Annuities Other (1) Other (2) Capital (3) Total As at December 31, 2021 Participating Non- Assets Debt securities $ 43,278 $ 82,050 $ 19,575 $ 36,207 $ 10,723 $ 32,306 $ 224,139 Public equities 14,667 8,112 453 374 626 3,835 28,067 Mortgages 3,799 13,295 4,572 8,526 21,802 20 52,014 Private placements 6,005 17,741 7,370 9,775 1,723 228 42,842 Real estate 3,467 6,814 987 1,782 6 177 13,233 Other 15,479 23,096 4,495 15,825 469,014 29,439 557,348 Total $ 86,695 $ 151,108 $ 37,452 $ 72,489 $ 503,894 $ 66,005 $ 917,643 (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 13. (d) Significant insurance contract liability valuation assumptions The determi n 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 2022 experience was unfavourable (2021 – unfavourable) when compared to the Company’s assumptions. Morbidity is also monitored monthly and the overall 2022 experience was favourable (2021 – favourable) when compared to the Company’s assumptions. Nature of factor and assumption methodology Risk management 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 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 2022, the movement in interest rates positively (2021 – negatively) impacted the Company’s net income. This positive impact was primarily due to increase in risk-free interest rates in the U.S., Canada, and Asia. 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 2022, credit loss experience on debt securities and mortgages was favourable (2021 – 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, 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 2022, investment experience related to alternative long-duration assets backing policyholder liabilities was favourable (2021 – favourable) primarily driven by gains in private equities, timber and agriculture properties, partially offset by losses in real estate properties. In 2022, alternative long-duration asset origination exceeded (2021 – did not exceed) valuation requirements. In 2022, for the business that is dynamically hedged, segregated fund guarantee experience on residual, non-dynamically In 2022, investment expense experience was favourable (2021 – unfavourable) when compared to the Company’s assumptions. Nature of factor and assumption methodology Risk management Policy termination and premium persistency 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 premium persistency risk. The Company monitors lapse, surrender and persistency experience. In aggregate, 2022 policyholder termination and premium persistency experience was unfavourable (2021 – 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 2022 were unfavourable (2021 – 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 reviews actuarial methods and assumptions on an annual basis. If changes are made to assumptions (refer to note 7(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 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) Decrease in after-tax net As at December 31, 2022 2021 Policy related assumptions 2% adverse change in future mortality rates (2),(4) Products where an increase in rates increases insurance contract liabilities $ (500 ) $ (500 ) Products where a decrease in rates increases insurance contract liabilities (500 ) (500 ) 5% adverse change in future morbidity rates (incidence and termination) (3),(4),(5) (4,500 ) (5,500 ) 10% adverse change in future policy termination rates (4) (2,200 ) (2,400 ) 5% increase in future expense levels (600 ) (600 ) (1) 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 (2) 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. (3) 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. (4) The impacts of the adverse sensitivities on LTC for morbidity, mortality and lapse do not assume any partial offsets from the Company’s ability to contractually raise premium rates in such events, subject to state regulatory approval. In practice, the Company would plan to file for rate increases equal to the amount of deterioration resulting from the sensitivities. (5) 5% deterioration in incidence rates and 5% deterioration in claim termination rates. Potential impact on net income attributed to shareholders arising from changes to non-economic (1),(2) Decrease in after-tax net As at December 31, 2022 2021 Policy related assumptions 2% adverse change in future mortality rates $ (300 ) $ (300 ) 5% adverse change in future morbidity incidence rates (1,700 ) (2,000 ) 5% adverse change in future morbidity claims termination rates (2,400 ) (3,100 ) 10% adverse change in future policy termination rates (300 ) (400 ) 5% increase in future expense levels (100 ) (100 ) (1) The impacts of the adverse sensitivities on LTC for morbidity, mortality and lapse do not assume any partial offsets from the Company’s ability to contractually raise premium rates in such events, subject to state regulatory approval. In practice, the Company would plan to file for rate increases equal to the amount of deterioration resulting from the sensitivities. (2) The impact of favourable changes to all the sensitivities is relatively symmetrical. (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, 2022 Net actuarial Other (1) Net Reinsurance Gross Balance, January 1 $ 332,272 $ 15,472 $ 347,744 $ 44,531 $ 392,275 New policies (2) 5,365 – 5,365 116 5,481 Normal in-force (2) (39,174 ) 1,216 (37,958 ) (1,042 ) (39,000 ) Changes in methods and assumptions (2) 112 (192 ) (80 ) 349 269 Reinsurance transactions (2) , (2,419 ) – (2,419 ) 950 (1,469 ) Impact of changes in foreign exchange rates 10,439 640 11,079 2,770 13,849 Balance, December 31 $ 306,595 $ 17,136 $ 323,731 $ 47,674 $ 371,405 For the year ended December 31, 2021 Net actuarial Other (1) Net Reinsurance Gross Balance, January 1 $ 325,408 $ 14,377 $ 339,785 $ 45,769 $ 385,554 New policies (4) 5,947 – 5,947 276 6,223 Normal in-force (4) 4,689 1,283 5,972 (1,812 ) 4,160 Changes in methods and assumptions (4) 287 – 287 455 742 Reinsurance transactions – – – – – Impact of changes in foreign exchange rates (4,059 ) (188 ) (4,247 ) (157 ) (4,404 ) Balance, December 31 $ 332,272 $ 15,472 $ 347,744 $ 44,531 $ 392,275 (1) Other insurance contract liabilities are comprised of benefits payable and provisions for unreported claims and policyholder amounts on deposit. (2) In 2022, the $34,971 decrease reported as the change in insurance contract liabilities on the 2022 Consolidated Statements of Income primarily consists of changes due to normal in-force movement, new policies, changes in methods and assumptions, and reinsurance transactions. These four items in the gross insurance contract liabilities were netted off by a decrease of $34,719, of which $35,830 is included in the Consolidated Statements of Income as a decrease in insurance contract liabilities and $1,111 increase is included in gross claims and benefits. The Consolidated Statements of Income change in insurance contract liabilities also includes the change in embedded derivatives associated with insurance contracts, however these embedded derivatives are included in other liabilities on the Consolidated Statements of Financial Position. (3) In 2022, we completed two transactions to reinsure blocks of legacy U.S. variable annuity (“VA”) policies. Under the terms of the transactions, the Company will retain responsibility for the maintenance of the policies with no intended impact to VA policyholders. The transactions were structured as coinsurance for the general fund liabilities and modified coinsurance for the segregated fund liabilities. (4) In 2021, the $10,719 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 actuarial methods and assumptions is performed annually. The review is designed to reduce the Company’s exposure to uncertainty by ensuring assumptions for both asset and liability related risks remain appropriate. This is accomplished by monitoring experience and selecting assumptions which represent a current best estimate view of expected future experience, and margins for adverse deviations 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 changes in the economic environment are likely to result in future changes to the actuarial assumptions, which could materially impact the measurement of insurance contract liabilities. 2022 Review of Actuarial Methods and Assumptions The completion of the 2022 annual review of actuarial methods and assumptions resulted in a decrease in insurance contract liabilities, net of reinsurance, of $80, and a net gain to net income attributed to shareholders of $36 post-tax. Change in insurance contract liabilities, For the year ended December 31, 2022 Total Attributed to (1) Attributed to Change in net (post-tax) Long-term care triennial review $ 19 $ – $ 19 $ (15 ) Mortality and morbidity updates 157 (5 ) 162 (126 ) Lapses and policyholder behaviour updates 317 74 243 (192 ) Investment related updates (210 ) (1 ) (209 ) 157 Other updates (363 ) (145 ) (218 ) 212 Net impact $ (80 ) $ (77 ) $ (3 ) $ 36 (1) The change in insurance contract liabilities, net of reinsurance, attributable to the participating policyholders’ account was primarily driven by an increase in expected long-term interest rates within the valuation models to reflect the higher interest rate environment, partially offset by the lapse assumption update in Canada. Long-term care triennial review U.S. Insurance completed a comprehensive long-term care (“LTC”) experience study. The review included all aspects of claim assumptions, as well as the progress on future premium rate increases. The impact of the LTC review resulted in a net $15 post-tax The experience study showed that claim costs established in the last triennial review remain appropriate in aggregate for the older blocks of business 1 2 3 cost-of-care post-tax Experience continues to support the assumptions of both future morbidity and mortality improvement, resulting in no changes to these assumptions. As of September 30, 2022, the Company has received actual premium increase approvals of $2.5 billion pre-tax pre-tax) 4 . post-tax one-half Other refinements to LTC valuation resulted in a post-tax Mortality and morbidity updates Mortality and morbidity updates resulted in a $126 post-tax Lapses and policyholder behaviour updates Updates to lapses and policyholder behaviour assumptions resulted in a $192 post-tax The Company completed a detailed review of lapse assumptions for Singapore, and increased lapse rates to align with experience on index-linked products, which reduced projected future fee income to be received on these products. The Company also increased lapse rates on Canada’s term insurance products for policies approaching their renewal date, reflecting emerging experience in the Company’s study. Investment-related updates Updates to investment return assumptions resulted in a $157 post-tax Other updates Other updates resulted in a $212 post-tax 1 First generation policies issued prior to 2002. 2 Second generation policies with an average issue date of 2007 and Group policies with an average issue date of 2003. 3 The mortality rate of LTC policyholders who are currently not on claim. 4 Actual experience obtaining premium increases could be materially different than what the Company has assumed, resulting in further increases or decreases in insurance contract liabilities, which could be material. 2021 Review of Actuarial Methods and Assumptions The completion of the 2021 annual review of actuarial methods and assumptions resulted in an increase in insurance contract liabilities of $287, net of reinsurance, and a decrease in net income attributed to shareholders of $41 post-tax. Change in insurance contract liabilities, For the year ended December 31, 2021 Total Attributed to (1) Attributed to Change in net (post-tax) U.S. variable annuity product review $ 51 $ – $ 51 $ (40 ) Mortality and morbidity updates 350 – 350 (257 ) Lapses and policyholder behaviour updates 686 18 668 (534 ) Expense updates (653 ) (25 ) (628 ) 503 Investment related updates (257 ) (2 ) (255 ) 168 Other updates 110 231 (121 ) 119 Net impact $ 287 $ 222 $ 65 $ (41 ) (1) The change in insurance contract liabilities, net of reinsurance, attributable to the participating policyholders’ account was primarily driven by a reduction in the expected long-term interest rates within the valuation models to reflect the low interest rate environment. U.S. variable annuity product review The review of the Company’s variable annuity products in the U.S. resulted in a $40 post-tax The charge was primarily driven by updates to lapse assumptions to reflect emerging experience, partially offset by refinements to the Company’s segregated fund guaranteed minimum withdrawal benefit valuation models. Mortality and morbidity updates Mortality and morbidity updates resulted in a $257 post-tax The charge was driven by updates to older age mortality on certain products in the Company’s U.S. life insurance business, mortality assumption updates in Indonesia to reflect recent experience, as well as from refining assumptions on several reinsurance arrangements in Canada. Lapses and policyholder behaviour updates Updates to lapses and policyholder behaviour assumptions resulted in a $534 post-tax The Company completed a detailed review of lapse assumptions for non-participating post-tax Other updates to lapse and policyholder behaviour assumptions were made across several products in Canada and Japan to reflect recent experience, resulting in a modest post-tax Expense updates Updates to expense assumptions resulted in a $503 post-tax . The Company completed a detailed review of the investment expense assumptions across the Company. This resulted in a $263 post-tax The Company also completed a global expense study, which resulted in a $256 post-tax Investment-related updates Updates to investment return assumptions resulted in a $168 post-tax The primary driver of the gain was an update to the Company’s corporate bond default rates to reflect recent experience; the Company reduced default assumptions for certain credit ratings in Canada, the U.S., and Japan. This was partially offset by a reduction to the Company’s Canadian real estate investment return assumptions. Other updates Other updates resulted in a $119 post-tax This was primarily driven by Japan, whereby investment fees for certain mandates in the general account provided by affiliate investment managers were reviewed and updated to align with broader market levels. (i) Insurance contracts contractual obligations Insurance contracts give rise to obligations fixed by agreement. As at December 31, 2022, 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 years Total Insurance contract liabilities (1) $ 11,498 $ 12,365 $ 18,496 $ 1,012,611 $ 1,054,970 (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 (j) Gross claims and benefits The following table presents a breakdown of gross claims and benefits. For the yea |
Investment Contract Liabilities
Investment Contract Liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Text block [abstract] | |
Investment Contract Liabilities | Note 8 Investment Contract Liabilities Investment contract liabilities are contractual obligations that do not contain significant insurance risk. These contracts are measured either at 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 mainland China. The following table presents the movement in investment contract liabilities measured at fair value. For the years ended December 31, 2022 2021 Balance, January 1 $ 802 $ 932 New policies 93 54 Changes in market conditions (39 ) (38 ) Redemptions, surrenders and maturities (106 ) (138 ) Impact of changes in foreign exchange rates 46 (8 ) Balance, December 31 $ 796 $ 802 (b) Investment contract liabilities measured at amortized cost Investment contract liabilities measured at amortized cost include several fixed annuity products sold in the U.S. and Canada that provide guaranteed income payments for a contractually determined period and are not contingent on survivorship. The following table presents carrying and fair values of investment contract liabilities measured at amortized cost. 2022 2021 As at December 31, Amortized cost, gross of (1) Fair value Amortized cost, gross of (1) Fair value U.S. fixed annuity products $ 1,575 $ 1,547 $ 1,380 $ 1,602 Canadian fixed annuity products 877 956 935 1,016 Investment contract liabilities $ 2,452 $ 2,503 $ 2,315 $ 2,618 (1) As at December 31, 2022, investment contract liabilities with the carrying value and fair value of $38 and $38, respectively (2021 – $48 and $52, respectively), were reinsured by the Company. The net carrying value and fair value of investment contract liabilities were $2,414 and $2,465 (2021 – $2,267 and $2,566), respectively. The changes in investment contract liabilities measured at amortized cost was a result of the following business activities. For the years ended December 31, 2022 2021 Balance, January 1 $ 2,315 $ 2,356 Policy deposits 200 92 Interest 67 71 Withdrawals (236 ) (191 ) Fees (1 ) (1 ) Other – (5 ) Impact of changes in foreign exchange rates 107 (7 ) Balance, December 31 $ 2,452 $ 2,315 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. As at December 31, 2022 and 2021, fair value of all investment contract liabilities was determined using Level 2 valuation techniques. (c) Investment contracts contractual obligations As at December 31, 2022, the Company’s contractual obligations and commitments relating to the 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) $ 300 $ 511 $ 514 $ 3,365 $ 4,690 (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, 2022 | |
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Risk Management | Note 9 Risk Management The Company’s policies and procedures for managing risks of financial instruments are disclosed in denoted components of the “Risk Management and Risk Factors” section of the MD&A for the year ended December 31, 2022. These MD&A disclosures are in accordance with IFRS 7 “Financial Instruments: Disclosures” and are 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 9(d) and credit risk associated with reinsurance counterparties is discussed in note 9(i). (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, 2022 2021 Debt securities FVTPL $ 170,273 $ 189,722 AFS 32,220 33,097 Other 1,411 1,320 Mortgages 54,638 52,014 Private placements 47,057 42,842 Policy loans 6,894 6,397 Loans to Bank clients 2,781 2,506 Derivative assets 8,588 17,503 Accrued investment income 2,813 2,641 Reinsurance assets 47,712 44,579 Other financial assets 6,077 6,242 Total $ 380,464 $ 398,863 As at December 31, 2022, 96% (2021 – 97%) of debt securities were investment grade-rated with ratings ranging between AAA to BBB. (ii) Credit quality Credit quality of commercial mortgages and private placements 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. These assets are designated as non-accrual The following table presents the credit quality of commercial mortgages and private placements. As at December 31, 2022 AAA AA A BBB BB B and lower Total Commercial mortgages Retail $ 113 $ 1,526 $ 4,872 $ 2,055 $ 194 $ 2 $ 8,762 Office 102 1,460 5,950 1,471 57 33 9,073 Multi-family residential 500 2,213 3,751 892 11 – 7,367 Industrial 72 929 3,312 407 – – 4,720 Other 180 990 798 764 – – 2,732 Total commercial mortgages 967 7,118 18,683 5,589 262 35 32,654 Agricultural mortgages – – 119 240 – – 359 Private placements 904 6,991 16,534 17,176 1,105 4,347 47,057 Total $ 1,871 $ 14,109 $ 35,336 $ 23,005 $ 1,367 $ 4,382 $ 80,070 As at December 31, 2021 AAA AA A BBB BB B and lower Total Commercial mortgages Retail $ 113 $ 1,340 $ 5,179 $ 1,936 $ 228 $ 2 $ 8,798 Office 56 1,256 6,004 1,291 87 40 8,734 Multi-family residential 557 1,869 3,771 767 32 – 6,996 Industrial 47 376 2,808 328 – – 3,559 Other 212 1,010 787 956 47 – 3,012 Total commercial mortgages 985 5,851 18,549 5,278 394 42 31,099 Agricultural mortgages – – 119 242 – – 361 Private placements 976 5,720 16,147 16,220 1,161 2,618 42,842 Total $ 1,961 $ 11,571 $ 34,815 $ 21,740 $ 1,555 $ 2,660 $ 74,302 Credit quality of residential mortgages and loans to Bank clients 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 credit quality of residential mortgages and loans to Bank clients. 2022 2021 As at December 31, Insured Uninsured Total Insured Uninsured Total Residential mortgages Performing $ 7,015 $ 14,569 $ 21,584 $ 7,264 $ 13,272 $ 20,536 Non-performing (1) 8 33 41 6 12 18 Loans to Bank clients Performing n/a 2,778 2,778 n/a 2,506 2,506 Non-performing (1) n/a 3 3 n/a – – Total $ 7,023 $ 17,383 $ 24,406 $ 7,270 $ 15,790 $ 23,060 (1) Non-performing The carrying value of government-insured mortgages was 13% of the total mortgage portfolio as at December 31, 2022 (2021 – 14%). Most of these insured mortgages are residential loans as classified in the table above. (iii) 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 losses certain declines in the fair value of debt securities designated as FVTPL which it deems represent impairments due to non-recoverability The following table presents the carrying value of financial assets with some or all of their contractual payments past due but which are not impaired and impaired financial assets. Past due but not impaired As at December 31, 2022 Less than 90 days Total Total Debt securities (1),(2) FVTPL $ 2,059 $ 71 $ 2,130 $ 9 AFS 922 – 922 – Private placements (1) 317 152 469 229 Mortgages and loans to Bank clients 103 – 103 74 Other financial assets 36 34 70 1 Total $ 3,437 $ 257 $ 3,694 $ 313 Past due but not impaired As at December 31, 2021 Less than 90 days Total Total Debt securities (1),(2) FVTPL $ 20 $ – $ 20 $ 2 AFS – – – – Private placements (1) 63 – 63 175 Mortgages and loans to Bank clients 61 – 61 51 Other financial assets 261 47 308 – Total $ 405 $ 47 $ 452 $ 228 (1) Payments of $ 12 3,297 nil 20 (2) Payments of $ 4 224 nil nil The following table presents gross carrying value and allowances for loan losses for impaired loans. As at December 31, 2022 Gross Allowances Net carrying Private placements $ 254 $ 25 $ 229 Mortgages and loans to Bank clients 96 22 74 Total $ 350 $ 47 $ 303 As at December 31, 2021 Gross Allowances Net carrying Private placements $ 197 $ 22 $ 175 Mortgages and loans to Bank clients 73 22 51 Total $ 270 $ 44 $ 226 The following table presents movement of allowance for loan losses during the year. 2022 2021 For the years ended December 31, Private Mortgages Total Private Mortgages Total Balance, January 1 $ 22 $ 22 $ 44 $ 79 $ 28 $ 107 Provisions 22 4 26 14 12 26 Recoveries (18 ) (2 ) (20 ) (58 ) (16 ) (74 ) Write-offs (1) (1 ) (2 ) (3 ) (13 ) (2 ) (15 ) Balance, December 31 $ 25 $ 22 $ 47 $ 22 $ 22 $ 44 (1) Includes disposals and impact of changes in foreign exchange rates. (b) Securities lending, repurchase and reverse repurchase transactions The Company en g 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, 2022, the Company had engaged in reverse repurchase transactions of $895 (2021 – $1,490) which are recorded as short-term receivables. In addition, the Company had engaged in repurchase transactions of $895 as at December 31, 2022 (2021 – $536) which are recorded as payables. (c) Credit default swaps The Company replicates exposure to specific issuers by selling credit protection via credit default swaps (“CDS”) to complement its cash debt securities investing. The Company does not write CDS protection more than 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, 2022 Notional (1) Fair value Weighted (in years) (2) Single name CDS (3) A $ 133 $ 4 4 BBB 26 – 1 Total single name CDS $ 159 $ 4 4 Total CDS protection sold $ 159 $ 4 4 As at December 31, 2021 Notional (1) Fair value Weighted (in years) (2) Single name CDS (3) A $ 16 $ – 1 BBB 28 1 2 Total single name CDS $ 44 $ 1 2 Total CDS protection sold $ 44 $ 1 2 (1) Notional amounts represent the maximum future payments the Company would have to pay its CDS counterparties assuming a default of the underlying credit and zero recovery on the underlying issuer obligations. (2) The weighted average maturity of the CDS is weighted based on notional amounts. (3) Ratings 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. The Company held no purchased credit protection as at December 31, 2022 and 2021. (d) Derivatives The Company’s point-in-time A- AA- As at December 31, 2022, the largest single counterparty exposure, without taking into consideration the impact of master netting agreements or the benefit of collateral held, was $1,582 (2021 – $2,132). The net exposure to this counterparty, after taking into consideration master netting agreements and the fair value of collateral held, was $nil (2021 – $nil). As at December 31, 2022, the total maximum credit exposure related to derivatives across all counterparties, without taking into consideration the impact of master netting agreements and the benefit of collateral held, was $9,072 (2021 – $18,226). (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 reverse purchase transaction 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 pledged or received. Related amounts not set off in the As at December 31, 2022 Gross amounts of (1) Amounts subject to Financial (2) Net (3) Net Financial assets Derivative assets $ 9,072 $ (7,170 ) $ (1,687 ) $ 215 $ 215 Securities lending 723 – (723 ) – – Reverse repurchase agreements 895 (779 ) (116 ) – – Total financial assets $ 10,690 $ (7,949 ) $ (2,526 ) $ 215 $ 215 Financial liabilities Derivative liabilities $ (15,151 ) $ 7,170 $ 7,834 $ (147 ) $ (103 ) Repurchase agreements (895 ) 779 116 – – Total financial liabilities $ (16,046 ) $ 7,949 $ 7,950 $ (147 ) $ (103 ) Related amounts not set off in the As at December 31, 2021 Gross amounts of (1) Amounts subject to Financial (2) Net (3) Net Financial assets Derivative assets $ 18,226 $ (8,410 ) $ (9,522 ) $ 294 $ 294 Securities lending 564 – (564 ) – – Reverse repurchase agreements 1,490 (183 ) (1,307 ) – – Total financial assets $ 20,280 $ (8,593 ) $ (11,393 ) $ 294 $ 294 Financial liabilities Derivative liabilities $ (10,940 ) $ 8,410 $ 2,250 $ (280 ) $ (79 ) Repurchase agreements (536 ) 183 353 – – Total financial liabilities $ (11,476 ) $ 8,593 $ 2,603 $ (280 ) $ (79 ) (1) Financial assets and liabilities include accrued interest of $488 and $862, respectively (2021 – $725 and $902, respectively). (2) Financial and cash collateral exclude over-collateralization. As at December 31, 2022, the Company was over-collateralized on OTC derivative assets, OTC derivative liabilities, securities lending and reverse repurchase agreements and repurchase agreements in the amounts of $507, $1,528, $63 and $nil, respectively (2021 – $599, $875, $36 and $2, respectively). As at December 31, 2022, collateral pledged (received) does not include collateral-in-transit (3) Includes derivative contracts entered between the Company and its financing entity which it does not consolidate. The Company does not exchange collateral on derivative contracts entered with this entity. Refer to note 18. The Company also has certain credit linked note assets and variable surplus note liabilities which have unconditional offsetting rights. Under the 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 Consolidated Statements of Financial Position. A credit linked note is a fixed income instrument the term of which, in this case, is linked to a variable surplus note. 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, 2022 Gross amounts of Amounts subject to Net amounts of Credit linked note (1) $ 1,242 $ (1,242 ) $ – Variable surplus note (1,242 ) 1,242 – As at December 31, 2021 Gross amounts of Amounts subject to Net amounts of Credit linked note (1) $ 1,054 $ (1,054 ) $ – Variable surplus note (1,054 ) 1,054 – (1) As at December 31, 2022 and 2021, the Company had no fixed surplus notes outstanding, refer to note 19(g). (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, 2022 2021 Debt securities and private placements rated as investment grade BBB or higher (1) 96% 97% Government debt securities as a per cent of total debt securities 36% 36% Government private placements as a per cent of total private placements 10% 11% Highest exposure to a single non-government $ 1,006 $ 1,167 Largest single issuer as a per cent of the total equity portfolio 2% 2% Income producing commercial office properties (2022 – 41% of real estate, 2021 – 47%) $ 5,486 $ 6,244 Largest concentration of mortgages and real estate (2) $ 18,343 $ 18,253 (1) Investment grade debt securities and private placements include 39% rated A, 17% rated AA and 14% rated AAA (2021 – 39%, 17% and 15%) investments based on external ratings where available. (2) Mortgages and real estate investments are diversified geographically and by property type. The following table presents debt securities and private placements portfolio by sector and industry. 2022 2021 As at December 31, Carrying value % of total Carrying value % of total Government and agency $ 77,236 31 $ 84,244 32 Utilities 46,315 18 48,372 18 Financial 38,808 15 38,905 15 Consumer 31,556 13 32,671 12 Energy 16,314 7 19,637 7 Industrial 23,823 9 24,727 9 Other 16,909 7 18,425 7 Total $ 250,961 100 $ 266,981 100 (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, 2022 Gross Reinsurance Net liabilities U.S. and Canada $ 251,305 $ (45,898 ) $ 205,407 Asia and Other 123,808 (1,814 ) 121,994 Total $ 375,113 $ (47,712 ) $ 327,401 As at December 31, 2021 Gross Reinsurance Net liabilities U.S. and Canada $ 271,090 $ (42,806 ) $ 228,284 Asia and Other 124,398 (1,773 ) 122,625 Total $ 395,488 $ (44,579 ) $ 350,909 (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, 2022, the Company had $47,712 (2021 – $44,579) of reinsurance assets. Of this, 91 per cent (2021 – 94 per cent) were ceded to reinsurers with Standard and Poor’s ratings of A- |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2022 | |
Text block [abstract] | |
Long-Term Debt | Note 10 Long-Term Debt (a) Carrying value of long-term debt instruments As at December 31, Issue date Maturity date Par value 2022 2021 3.050% Senior notes (1),(2) August 27, 2020 August 27, 2060 US$ 1,155 $ 1,559 $ 1,455 5.375% Senior notes (1),(3) March 4, 2016 March 4, 2046 US$ 750 1,004 939 3.703% Senior notes (1),(4) March 16, 2022 March 16, 2032 US$ 750 1,011 – 2.396% Senior notes (1),(5) June 1, 2020 June 1, 2027 US$ 200 270 253 2.484% Senior notes (1),(5) May 19, 2020 May 19, 2027 US$ 500 674 630 3.527% Senior notes (1),(3) December 2, 2016 December 2, 2026 US$ 270 365 342 4.150% Senior notes (1),(3) March 4, 2016 March 4, 2026 US$ 1,000 1,351 1,263 Total $ 6,234 $ 4,882 (1) 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 (2) MFC may redeem the notes in whole, but not in part, on August 27, 2025, and thereafter on every August 27 at a redemption price equal to par, together with accrued and unpaid interest. Issue costs are amortized to the earliest par redemption date. (3) 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, from redemption date to the respective maturity date, plus a specified number of basis points. The specified number of basis points is as follows: 5.375% - 40 20 35 (4) Issued by MFC during the first quarter, interest is payable semi-annually. The Company 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, from redemption date to December 16, 2031, plus 25 bps, together with accrued and unpaid interest. Issue costs are amortized over the term of the debt. (5) 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, from redemption date to two months before the respective maturity date, plus a specified number of basis points. The specified number of basis points is as follows: 2.396% - 30 30 The cash amount of interest paid on long-term debt during the year ended December 31, 2022 was $204 (2021 – $210). (b) Fair value measurement Fair value of long-term debt instruments is determined using the following hierarchy: Level 1 – Fair value is determined using quoted market prices where available. Level 2 – When quoted market prices are not available, fair value is determined with reference to quoted prices of similar debt instruments or estimated using discounted cash flows based on observable market rates. The Company measures long-term debt at amortized cost in the Consolidated Statements of Financial Position. As at December 31, 2022, the fair value of long-term debt was $5,587 (2021 – $5,439). Fair value of long-term debt was determined using Level 2 valuation techniques (2021 – Level 2). (c) Aggregate maturities of long-term debt As at December 31 Less than 1 to 3 3 to 5 Over 5 Total 2022 $ – $ – $ 2,661 $ 3,573 $ 6,234 2021 – – 1,605 3,277 4,882 |
Capital Instruments
Capital Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Text block [abstract] | |
Capital Instruments | Note 11 Capital Instruments (a) Carrying value of capital instruments As at December 31, Issuance date Earliest par Maturity date Par value 2022 2021 JHFC Subordinated notes (1),(2) December 14, 2006 n/a December 15, 2036 $ 650 $ 647 $ 647 2.818% MFC Subordinated debentures (1),(3) May 12, 2020 May 13, 2030 May 13, 2035 $ 1,000 996 995 4.061% MFC Subordinated notes (1),(4),(5) February 24, 2017 February 24, 2027 February 24, 2032 US$ 750 1,013 947 2.237% MFC Subordinated debentures (1),(6) May 12, 2020 May 12, 2025 May 12, 2030 $ 1,000 998 997 3.00% MFC Subordinated notes (1),(7) November 21, 2017 November 21, 2024 November 21, 2029 S$ 500 504 469 3.049% MFC Subordinated debentures (1),(8) August 18, 2017 August 20, 2024 August 20, 2029 $ 750 749 748 3.317% MFC Subordinated debentures (1),(8) May 9, 2018 May 9, 2023 May 9, 2028 $ 600 600 599 3.181% MLI Subordinated debentures (9) November 20, 2015 November 22, 2022 November 22, 2027 $ 1,000 – 999 7.375% JHUSA Surplus notes (10) February 25, 1994 n/a February 15, 2024 US$ 450 615 579 Total $ 6,122 $ 6,980 (1) The Company is monitoring regulatory and market developments globally with respect to the interest rate benchmark reform. As reference interest rates for these capital instruments could potentially be discontinued in the future, the Company will take appropriate actions in due course to accomplish the necessary transitions or replacements. As at December 31, 2022, capital instruments of $647 (2021 – $647) have interest rate referencing CDOR. In addition, capital instruments of $3,343, $1,013, and $504 (2021 – $4,338, $947, and $469, respectively) have interest rate reset in the future referencing CDOR, the USD Mid-Swap (2) 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 of the Company. The notes bear interest at a floating rate equal to the 90-day Bankers’ Acceptance rate plus 0.72%. With regulatory approval, JHFC may redeem the note, in whole or in part, at any time, at par, together with accrued and unpaid interest. Refer to note 18. (3) Issued by MFC, interest is payable semi-annually. After May 13, 2030, the interest rate will reset to equal 3-month CDOR plus 1.82%. With regulatory approval, MFC may redeem the debentures, in whole, or in part, on or after May 13, 2025, at a redemption price together with accrued and unpaid interest. If the redemption date is on or after May 13, 2025, but prior to May 13, 2030, the redemption price shall be the greater of: (i) the Canada yield price as defined in the prospectus; and (ii) par. If the redemption date is on or after May 13, 2030, the redemption price shall be equal to par. (4) On the earliest par redemption date, the interest rate will reset to equal the 5-Year Mid-Swap (5) Designated as a hedge of the Company’s net investment in its U.S. operations which reduces the earnings volatility that would otherwise arise from the re-measurement (6) Issued by MFC, interest is payable semi-annually. After May 12, 2025, the interest rate will reset to equal 3-month CDOR plus 1.49%. With regulatory approval, MFC may redeem the debentures, in whole, or in part, on or after May 12, 2025, at a redemption price equal to par, together with accrued and unpaid interest. (7) On the earliest par redemption date, the interest rate will reset to equal the 5-Year (8) 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 3-month CDOR plus a specified number of basis points. The specified number of basis points is as follows: 3.049% - 105 78 (9) MLI redeemed in full the 3.181% MLI subordinated debentures at par, on November 22, 2022, the earliest par redemption date. (10) 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$5 (2021 – US$9), 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. (b) Fair value measurement Fair value of capital instruments is determined using the following hierarchy: Level 1 – Fair value is determined using quoted market prices where available. Level 2 – When quoted market prices are not available, fair value is determined with reference to quoted prices of similar debt instruments or estimated using discounted cash flows based on observable market rates. The Company measures capital instruments at amortized cost in the Consolidated Statements of Financial Position. As at December 31, 2022, the fair value of capital instruments was $5,737 (2021 – $7,213). Fair value of capital instruments was determined using Level 2 valuation techniques (2021 – Level 2). |
Equity Capital and Earnings Per
Equity Capital and Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Text block [abstract] | |
Equity Capital and Earnings Per Share | Note 12 Equity 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 and other equity instruments The following table presents information about the outstanding preferred shares and other equity instruments as at December 31, 2022 and 2021. As at December 31, 2022 Issue date Annual dividend/ distribution rate (1) Earliest redemption date (2),(3) Number of (in millions) Face amount Net amount (4) 2022 2021 Preferred shares Class A preferred shares Series 2 February 18, 2005 4.65% n/a 14 $ 350 $ 344 $ 344 Series 3 January 3, 2006 4.50% n/a 12 300 294 294 Class 1 preferred shares Series 3 (5),(6) March 11, 2011 2.348% June 19, 2026 7 163 160 160 Series 4 (7) June 20, 2016 floating June 19, 2026 1 37 36 36 Series 7 (8) February 22, 2012 4.312% March 19, 2022 10 250 – 244 Series 9 (5),(6),(9) May 24, 2012 5.978% September 19, 2027 10 250 244 244 Series 11 (5),(6) December 4, 2012 4.731% March 19, 2023 8 200 196 196 Series 13 (5),(6) June 21, 2013 4.414% September 19, 2023 8 200 196 196 Series 15 (5),(6) February 25, 2014 3.786% June 19, 2024 8 200 195 195 Series 17 (5),(6) August 15, 2014 3.80% December 19, 2024 14 350 343 343 Series 19 (5),(6) December 3, 2014 3.675% March 19, 2025 10 250 246 246 Series 23 (8) November 22, 2016 4.85% March 19, 2022 19 475 – 467 Series 25 (5),(6) February 20, 2018 4.70% June 19, 2023 10 250 245 245 Other equity instruments Limited recourse capital notes (10) Series 1 (11) February 19, 2021 3.375% May 19, 2026 n/a 2,000 1,982 1,982 Series 2 (11) November 12, 2021 4.100% February 19, 2027 n/a 1,200 1,189 1,189 Series 3 (11) June 16, 2022 7.117% June 19, 2027 n/a 1,000 990 – Total 131 $ 7,475 $ 6,660 $ 6,381 (1) Holders of Class A and Class 1 preferred shares are entitled to receive non-cumulative Non-deferrable (2) Redemption of all preferred shares is subject to regulatory approval. MFC may redeem each series, in whole or in part, at par, on the earliest redemption date or every five years thereafter, except for Class A Series 2, Class A Series 3 and Class 1 Series 4 preferred shares. Class A Series 2 and Series 3 preferred shares are past their respective earliest redemption date and MFC may redeem these preferred 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 preferred shares, in whole or in part, at any time, at $25.00 per share if redeemed on June 19, 2026 (the earliest redemption date) and on June 19 every five years thereafter, or at $25.50 per share if redeemed on any other date after June 19, 2021, subject to regulatory approval, as noted. (3) Redemption of all LRCN series notes is subject to regulatory approval. MFC may at its option redeem each series in whole or in part, at a redemption price equal to par, together with accrued and unpaid interest. The redemption period for Series 1 is every five years during the period from May 19 to and including June 19, commencing in 2026. The redemption period for Series 2 is every five years during the period from February 19 to and including March 19, commencing in 2027. After the first redemption date, the redemption period for Series 3 is every five years during the period from May 19 to and including June 19, commencing in 2032. (4) Net of after-tax (5) 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 preferred shares is: Series 3 – 1.41%, Series 9 – 2.86%, Series 11 – 2.61%, Series 13 – 2.22%, Series 15 – 2.16%, Series 17 – 2.36%, Series 19 – 2.30% and Series 25 – 2.55%. (6) 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 (7) The floating dividend rate for the Class 1 Series 4 preferred shares equals the three-month Government of Canada Treasury bill yield plus 1.41%. (8) MFC redeemed in full the Class 1 Series 7 and Class 1 Series 23 preferred shares at par, on March 19, 2022, which is the earliest redemption date. (9) MFC did not exercise its right to redeem all or any of the outstanding Class 1 Series 9 preferred shares on September 19, 2022, which is the earliest redemption date. The dividend rate was reset as specified in footnote 5 above to an annual fixed rate of 5.978%, for a five-year period commencing on September 20, 2022. (10) Non-payment of distributions or principal on any LRCN series notes when due will result in a recourse event. The recourse of each noteholder will be limited to their proportionate amount of the Limited Resource Trust’s assets which comprise of Class 1 Series 27 preferred shares for LRCN Series 1 notes, Class 1 Series 28 preferred shares for LRCN Series 2 notes, and Class 1 Series 29 preferred shares for LRCN Series 3 notes. All claims of the holders of LRCN series notes against MFC will be extinguished upon receipt of the corresponding trust assets. The Class 1 Series 27, Class 1 Series 28, and Class 1 Series 29 preferred shares are eliminated on consolidation while being held in the Limited Recourse Trust. (11) The LRCN Series 1 distribute at a fixed rate of 3.375% payable semi-annually, until June 18, 2026; on June 19, 2026 and every five years thereafter until June 19, 2076, the rate will be reset at a rate equal to the five-year Government of Canada yield as defined in the prospectus, plus 2.839%. The LRCN Series 2 distribute at a fixed rate of 4.10% payable semi-annually, until March 18, 2027; on March 19, 2027 and every five years thereafter until March 19, 2077, the rate will be reset at a rate equal to the five-year Government of Canada yield as defined in the prospectus, plus 2.704 (b) Common shares The following table presents changes in common shares issued and outstanding. 2022 2021 For the years ended December 31, Number of shares (in millions) Amount Number of shares (in millions) Amount Balance, January 1 1,943 $ 23,093 1,940 $ 23,042 Repurchased for cancellation (79 ) (938 ) – – Issued on exercise of stock options and deferred share units 1 23 3 51 Total 1,865 $ 22,178 1,943 $ 23,093 Normal Course Issuer Bid On February 1, 2022, the Company announced that the Toronto Stock Exchange (“TSX”) approved a normal course issuer bid (“NCIB”) permitting the purchase for cancellation of up to 97 million common shares. Under this NCIB which commenced on February 3, 2022, and expired on February 2, 2023, MFC purchased for cancellation 85.8 million of its common shares at an average price of $ 23.99 per share for a total cost of $ 2,060 , which represent 4.4 % of its issued and outstanding common shares. During the year ended December 31, 2022, the Company purchased and subsequently cancelled 78.9 million shares for $1,884. Of this, $938 was recorded in common shares and $946 was recorded in retained earnings in the Consolidated Statements of Changes in Equity. On February 15, 2023, the Company announced, subject to the approval of the TSX, its intention to launch an NCIB permitting the purchase for cancellation of up to 55.7 million common shares, representing approximately 3% of its issued and outstanding common shares. Purchases under the NCIB may commence after the TSX has accepted the notice of intention and continue for up to one year, or such earlier date as the Company completes its purchases. (c) Earnings per share The following table presents basic and diluted earnings per common share of the Company. For the years ended December 31, 2022 2021 Basic earnings per common share $ 3.68 $ 3.55 Diluted earnings per common share 3.68 3.54 The following is a reconciliation of the number of shares in the calculation of basic and diluted earnings per share. For the years ended December 31, 2022 2021 Weighted average number of common shares (in millions) 1,910 1,942 Dilutive stock-based awards (1) 3 4 Weighted average number of diluted common shares (in millions) 1,913 1,946 (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 9 million (2021 – nil million) anti-dilutive stock-based awards. (d) Quarterly dividend declaration subsequent to year end On February 15, 2023, the Company’s Board of Directors approved a quarterly dividend of $0.365 per share on the common shares of MFC, payable on or after March 20, 2023 to shareholders of record at the close of business on February 28, 2023. The Board also declared dividends on the following non-cumulative Class A Shares Series 2 – $0.29063 per share Class 1 Shares Series 13 – $0.275875 per share Class A Shares Series 3 – $0.28125 per share Class 1 Shares Series 15 – $0.236625 per share Class 1 Shares Series 3 – $0.14675 per share Class 1 Shares Series 17 – $0.2375 per share Class 1 Shares Series 4 – $0.34089 per share Class 1 Shares Series 19 – $0.229688 per share Class 1 Shares Series 9 – $0.373625 per share Class 1 Shares Series 25 – $0.29375 per share Class 1 Shares Series 11 – $0.295688 per share |
Capital Management
Capital Management | 12 Months Ended |
Dec. 31, 2022 | |
Text block [abstract] | |
Capital Management | Note 13 Capital Management (a) Capital management The Company monitors and manages its consolidated capital in compliance with the Life Insurance Capital Adequacy Test (“LICAT”) guideline, the capital framework issued by the Office of the Superintendent of Financial Institutions (“OSFI”). Under the capital framework, the Company’s consolidated capital resources, including available capital, surplus allowance, and eligible deposits, are measured against the base solvency buffer, which is the risk-based capital requirement determined in accordance with the guideline. The Company’s operating activities are primarily conducted within MLI and its subsidiaries. MLI is also regulated by OSFI and is therefore subject to consolidated risk-based capital requirements using the OSFI LICAT framework. 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 considers 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 the Company’s own risk assessments. The Company monitors against these internal targets and initiates actions appropriate to achieving its business objectives. Consolidated capital, based on accounting standards, is presented in the table below for MFC. For regulatory reporting purposes, under the LICAT framework, the numbers are further adjusted for various additions or deductions to capital as mandated by the guidelines used by OSFI. Consolidated capital As at December 31, 2022 2021 Total equity $ 56,379 $ 58,869 Exclude AOCI gain/(loss) on cash flow hedges 8 (156 ) Total equity excluding AOCI on cash flow hedges 56,371 59,025 Qualifying capital instruments 6,122 6,980 Consolidated capital $ 62,493 $ 66,005 (b) Restrictions on dividends and capital distributions Dividends and capital distributions are restricted under the Insurance Companies Act (“ICA”). These restrictions apply to both MFC 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 MFC 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. |
Revenue from Service Contracts
Revenue from Service Contracts | 12 Months Ended |
Dec. 31, 2022 | |
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Revenue from Service Contracts | Note 14 Revenue from Service Contracts The Company provides investment management services, transaction processing and administrative services and distribution and related services to proprietary and third-party investment funds, retirement plans, group benefit plans, institutional investors and other arrangements. The Company also provides real estate management services to tenants of the Company’s investment properties. The Company’s service contracts generally impose single performance obligations, each consisting of a series of similar related services for each customer. The Company’s performance obligations within service arrangements are generally satisfied over time as the customer simultaneously receives and consumes the benefits of the services rendered, measured using an output method. Fees typically include variable consideration and the related revenue is recognized to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty is subsequently resolved. Asset based fees vary with asset values of accounts under management, subject to market conditions and investor behaviors beyond the Company’s control. Transaction processing and administrative fees vary with activity volume, also beyond the Company’s control. Some fees, including distribution fees, are based on account balances and transaction volumes. Fees related to account balances and transaction volumes are measured daily. Real estate management service fees include fixed portions plus recovery of variable costs of services rendered to tenants. Fees related to services provided are generally recognized as services are rendered, which is when it becomes highly probable that no significant reversal of cumulative revenue recognized will occur. The Company has determined that its service contracts have no significant financing components because fees are collected monthly. The Company has no significant contract assets or contract liabilities. The following tables present revenue from service contracts by service lines and reporting segments as disclosed in note 20. For the year ended December 31, 2022 Asia Canada U.S. Global Corporate Total Investment management and other related fees $ 234 $ 242 $ 445 $ 3,079 $ (250 ) $ 3,750 Transaction processing, administration, and service fees 292 866 13 2,416 (8 ) 3,579 Distribution fees and other 143 43 76 868 (44 ) 1,086 Total included in other revenue 669 1,151 534 6,363 (302 ) 8,415 Revenue from non-service 789 275 (76 ) (13 ) (226 ) 749 Total other revenue $ 1,458 $ 1,426 $ 458 $ 6,350 $ (528 ) $ 9,164 Real estate management services included in net investment income $ 35 $ 136 $ 126 $ – $ 8 $ 305 For the year ended December 31, 2021 Asia Canada U.S. Global Corporate Total Investment management and other related fees $ 217 $ 230 $ 499 $ 3,198 $ (247 ) $ 3,897 Transaction processing, administration, and service fees 287 918 12 2,517 (11 ) 3,723 Distribution fees and other 251 20 65 799 (54 ) 1,081 Total included in other revenue 755 1,168 576 6,514 (312 ) 8,701 Revenue from non-service 941 168 1,248 (1 ) 75 2,431 Total other revenue $ 1,696 $ 1,336 $ 1,824 $ 6,513 $ (237 ) $ 11,132 Real estate management services included in net investment income $ 37 $ 126 $ 128 $ – $ 7 $ 298 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Text block [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 2022 2021 For the years ended December 31, Number of (in millions) Weighted Number of (in millions) Weighted Outstanding, January 1 21 $ 22.09 24 $ 21.74 Granted – – – – Exercised (1 ) 16.15 (3 ) 18.34 Expired – 24.63 – 24.73 Forfeited – 23.96 – 23.96 Outstanding, December 31 20 $ 22.42 21 $ 22.09 Exercisable, December 31 10 $ 20.91 8 $ 18.94 Options outstanding Options exercisable For the year ended December 31, 2022 Number of (in millions) Weighted Weighted average Number of (in millions) Weighted Weighted average $12.64—$20.99 4 $ 17.42 2.91 4 $ 17.42 2.91 $21.00—$24.83 16 $ 23.58 4.94 6 $ 23.08 2.95 Total 20 $ 22.42 4.56 10 $ 20.91 2.93 No stock options were granted in 2022 or 2021. Compensation expense related to stock options was $5 for the year ended December 31, 2022 (2021 – $9). (b) Deferred share units In 2000, the Company granted deferred share units (“DSUs”) on a one-time In addition, for certain employees and pursuant to the Company’s deferred compensation program, the Company grants DSUs under the Restricted Share Units (“RSUs”) 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 2022, the Company granted 30,000 DSUs to certain employees which vest after 36 months (2021 – 34,000). In 2022, 106,000 DSUs (2021 – 26,000) were granted to certain employees who elected to defer receipt of all or part of their annual bonus. These DSUs vested immediately. Under the Stock Plan for Non-Employee The fair value of 252,000 DSUs issued during the year was $24.15 per unit as at December 31, 2022 (2021 – 161,000 at $24.11 per unit). For the years ended December 31, Number of DSUs (in thousands) 2022 2021 Outstanding, January 1 2,079 2,169 Issued 252 161 Reinvested 126 100 Redeemed (75 ) (345 ) Forfeitures and cancellations (9 ) (6 ) Outstanding, December 31 2,373 2,079 Of the DSUs outstanding as at December 31, 2022, 166,000 (2021 – 188,000) entitle the holder to receive common shares, 977,000 (2021 – 840,000) entitle the holder to receive payment in cash and 1,230,000 (2021 – 1,051,000) entitle the holder to receive payment in cash or common shares, at the option of the holder. Compensation expense related to DSUs was $7 for the year ended December 31, 2022 (2021 – $6 ) The carrying and fair value of the DSUs liability as at December 31, 2022 was $53 (2021 – $46) and was included in other liabilities. (c) Restricted share units and performance share units For the year ended December 31, 2022, 8.6 million RSUs (2021 – 6.8 million) and 1.7 million PSUs (2021 – 1.5 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 $24.15 per unit as at December 31, 2022 (2021 – $24.11 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 and PSUs granted in March The carrying and fair value of the RSUs and PSUs liability as at December 31, 2022 was $388 (2021 – $362) and was included in other liabilities. (d) Global share ownership plan The Company’s Global Share Ownership Plan 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 on behalf of participating employees. |
Employee Future Benefits
Employee Future Benefits | 12 Months Ended |
Dec. 31, 2022 | |
Text block [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) non-registered (non-qualified) (a) Plan characteristics The Company’s final average pay defined benefit pension plans and retiree welfare plans are closed to new members. All employees may participate in capital accumulation plans including defined benefit cash balance plans, 401(k) plans and/or defined contribution plans, depending on the country of employment. 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 (China). 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 2023. 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 ten years. For 2023, the required funding for these plans is expected to be $3. The 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 have been 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 by investing significantly in asset classes which are highly correlated with the plans’ liabilities. 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 increase the plan’s allocation to asset classes which are highly correlated with the plan’s liabilities and reduce investment risk as the funded status improves. As at December 31, 2022, the target asset allocation for the plan was 30% return-seeking assets and 70% liability-hedging assets (2021 - 30% and 70%). 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, 2022, the target asset allocation for the plans was 20% return-seeking assets and 80% liability-hedging assets (2021 - 20% and 80%). Certain long-term impacts of the COVID-19 COVID-19, (c) Pension and retiree welfare plans The following tables present the reconciliation of defined benefit obligation and fair value of plan assets for the pension plans and retiree welfare plans. Pension plans Retiree welfare plans For the years ended December 31, 2022 2021 2022 2021 Changes in defined benefit obligation: Opening balance $ 4,560 $ 4,901 $ 584 $ 638 Current service cost 43 44 – – Past service cost - amendment (6 ) – – – Interest cost 127 115 16 15 Plan participants’ contributions – – 3 3 Actuarial losses (gains) due to: Experience 5 3 (13 ) – Demographic assumption changes – 7 – 1 Economic assumption changes (835 ) (194 ) (112 ) (29 ) Benefits paid (299 ) (303 ) (40 ) (42 ) Impact of changes in foreign exchange rates 199 (13 ) 28 (2 ) Defined benefit obligation, December 31 $ 3,794 $ 4,560 $ 466 $ 584 Pension plans Retiree welfare plans For the years ended December 31, 2022 2021 2022 2021 Change in plan assets: Fair value of plan assets, opening balance $ 4,510 $ 4,595 $ 587 $ 606 Interest income 127 109 16 14 Return on plan assets (excluding interest income) (869 ) 70 (91 ) (1 ) Employer contributions 59 61 11 11 Plan participants’ contributions – – 3 3 Benefits paid (299 ) (303 ) (40 ) (42 ) Administration costs (11 ) (9 ) (2 ) (2 ) Impact of changes in foreign exchange rates 205 (13 ) 39 (2 ) Fair value of plan assets, December 31 $ 3,722 $ 4,510 $ 523 $ 587 (d) Amounts recognized in the Consolidated Statements of Financial Position The following table presents the deficit (surplus) and net defined benefit liability (asset) for the pension plans and retiree welfare plans. Pension plans Retiree welfare plans As at December 31, 2022 2021 2022 2021 Development of net defined benefit liability Defined benefit obligation $ 3,794 $ 4,560 $ 466 $ 584 Fair value of plan assets 3,722 4,510 523 587 Deficit (surplus) 72 50 (57 ) (3 ) Effect of asset limit (1) 48 37 – – Deficit (surplus) and net defined benefit liability (asset) 120 87 (57 ) (3 ) Deficit is comprised of: Funded or partially funded plans (441 ) (600 ) (168 ) (154 ) Unfunded plans 561 687 111 151 Deficit (surplus) and net defined benefit liability (asset) $ 120 $ 87 $ (57 ) $ (3 ) (1) The asset limit relates to a registered pension plan in Canada. The surplus in that plan is above the present value of economic benefits that can be derived by the Company through reductions in future contributions. For the other funded pension plans, the present value of the economic benefits available in the form of reductions in future contributions to the plans remains greater than the current surplus. (e) Disaggregation of defined benefit obligation The following table presents components of the defined benefit obligation between active members and inactive and retired members. U.S. plans Canadian plans Pension plans Retiree welfare plans Pension plans Retiree welfare plans As at December 31, 2022 2021 2022 2021 2022 2021 2022 2021 Active members $ 509 $ 537 $ 11 $ 17 $ 125 $ 184 $ – $ – Inactive and retired members 2,006 2,371 344 416 1,154 1,468 111 151 Total $ 2,515 $ 2,908 $ 355 $ 433 $ 1,279 $ 1,652 $ 111 $ 151 (f) Fair value measurements The following tables present major categories of plan assets and the allocation to each category. U.S. plans (1) Canadian plans (2) Pension plans Retiree welfare plans Pension plans Retiree welfare plans As at December 31, 2022 Fair value % of total Fair value % of total Fair value % of total Fair value % of total Cash and cash equivalents $ 35 1% $ 22 4% $ 9 1% $ – – Public equity securities (3) 377 15% 41 8% 233 20% – – Public debt securities 1,509 58% 445 85% 898 79% – – Other investments (4) 660 26% 15 3% 1 0% – – Total $ 2,581 100% $ 523 100% $ 1,141 100% $ – – U.S. plans (1) Canadian plans (2) Pension plans Retiree welfare plans Pension plans Retiree welfare plans As at December 31, 2021 Fair value % of total Fair value % of total Fair value % of total Fair value % of total Cash and cash equivalents $ 90 3% $ 21 4% $ 14 1% $ – – Public equity securities (3) 600 20% 57 10% 322 22% – – Public debt securities 1,863 61% 501 85% 1,144 77% – – Other investments (4) 475 16% 8 1% 2 0% – – Total $ 3,028 100% $ 587 100% $ 1,482 100% $ – – (1) The U.S. pension and retiree welfare plan assets have daily quoted prices in active markets, except for the private debt, infrastructure, private equity, real estate, timber and agriculture assets. In the aggregate, the latter assets represent approximately 15% of all U.S. pension and retiree welfare plan assets as at December 31, 2022 (2021 – 7%). (2) All the Canadian pension plan assets have daily quoted prices in active markets, except for the group annuity contract assets that represent approximately 0.1 0.1 (3) Equity securities include direct investments in MFC common shares of $1.2 (2021 – $1.2) in the U.S. retiree welfare plan and $nil (2021 – $nil) in Canada. (4) Other U.S. plan assets include investment in real estate, private debt, infrastructure, private equity, timberland and agriculture, and managed futures. Other Canadian pension plan assets include investment in the group annuity contract. (g) Net benefit cost recognized in the Consolidated Statements of Income The following table presents components of the net benefit cost for the pension plans and retiree welfare plans. Pension plans Retiree welfare plans For the years ended December 31, 2022 2021 2022 2021 Defined benefit current service cost (1) $ 43 $ 44 $ – $ – Defined benefit administrative expenses 11 9 2 2 Past service cost-plan amendments and curtailments (6 ) – – – Service cost 48 53 2 2 Interest on net defined benefit (asset) liability 2 6 – 1 Defined benefit cost 50 59 2 3 Defined contribution cost 85 90 – – Net benefit cost $ 135 $ 149 $ 2 $ 3 (1) There are no significant current service costs for the retiree welfare plans as they are closed and mostly frozen. The remeasurement gain or loss on these plans is due to the volatility of discount rates and investment returns. (h) Re-measurement The following table presents components of the re-measurement effects recognized in Other Comprehensive Income for the pension plans and retiree welfare plans. Pension plans Retiree welfare plans For the years ended December 31, 2022 2021 2022 2021 Actuarial gains (losses) on defined benefit obligations due to: Experience $ (5 ) $ (3 ) $ 13 $ – Demographic assumption changes – (7 ) – (1 ) Economic assumption changes 835 194 112 29 Return on plan assets (excluding interest income) (869 ) 70 (91 ) (1 ) Change in effect of asset limit (excluding interest) (10 ) (37 ) – – Total re-measurement $ (49 ) $ 217 $ 34 $ 27 (i) Assumptions The following table presents 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. U.S. Plans Canadian Plans Pension plans Retiree welfare plans Pension plans Retiree welfare plans For the years ended December 31, 2022 2021 2022 2021 2022 2021 2022 2021 To determine the defined benefit obligation at end of year (1) Discount rate 5.0% 2.7% 5.0% 2.7% 5.3% 3.1% 5.3% 3.2% Initial health care cost trend rate (2) n/a n/a 7.8% 7.0% n/a n/a 5.3% 5.4% To determine the defined benefit cost for the year (1) Discount rate 2.7% 2.4% 2.7% 2.4% 3.1% 2.5% 3.2% 2.6% Initial health care cost trend rate (2) n/a n/a 7.0% 7.3% n/a n/a 5.4% 5.5% (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 7.8% grading to 4.8% for 2035 and years thereafter (2021 – 7.0% grading to 4.5% for 2032) and to measure the net benefit cost was 7.0% grading to 4.5% for 2032 and years thereafter (2021 – 7.3% grading to 4.5% for 2032). In Canada, the rate used to measure the retiree welfare obligation was 5.3% grading to 4.8% for 2026 and years thereafter (2021 – 5.4% grading to 4.8% for 2026) and to measure the net benefit cost was 5.4% grading to 4.8% for 2026 and years thereafter (2021 – 5.5% grading to 4.8% for 2026). Assumptions regarding future mortality are based on published statistics and mortality tables. The following table presents current life expectancies underlying the values of the obligations in the defined benefit pension and retiree welfare plans. As at December 31, 2022 U.S. Canada Life expectancy (in years) for those currently age 65 Males 22.1 23.9 Females 23.6 25.7 Life expectancy (in years) at age 65 for those currently age 45 Males 23.5 24.8 Females 25.0 26.6 (j) Sensitivity of assumptions on obligations Assumptions used can have a significant effect on the obligations reported for defined benefit pension and retiree welfare plans. The following table sets out the potential impact on the obligations arising from changes in the key assumptions. The sensitivities assume all other assumptions are held constant. In actuality, inter-relationships with other assumptions may exist. As at December 31, 2022 Pension plans Retiree welfare plans Discount rate: Impact of a 1% increase $ (279 ) $ (39 ) Impact of a 1% decrease 322 45 Health care cost trend rate: Impact of a 1% increase n/a 10 Impact of a 1% decrease n/a (9 ) Mortality rates (1) Impact of a 10% decrease 93 8 (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 years for Canadian males, respectively. (k) Maturity profile The following table presents weighted average duration (in years) of the defined benefit obligations. Pension plans Retiree welfare plans As at December 31, 2022 2021 2022 2021 U.S. plans 8.2 9.7 8.2 9.5 Canadian plans 10.6 12.4 11.1 13.3 (l) Cash flows – contributions The following table presents 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. Pension plans Retiree welfare plans For the years ended December 31, 2022 2021 2022 2021 Defined benefit plans $ 59 $ 61 $ 11 $ 11 Defined contribution plans 85 90 – – Total $ 144 $ 151 $ 11 $ 11 The Company’s best estimate of expected cash payments for employee future benefits for the year ending December 31, 2023 is $65 for defined benefit pension plans, $89 for defined contribution pension plans and $13 for retiree welfare plans. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Text block [abstract] | |
Income Taxes | Note 17 Income Taxes (a) Income tax expense The following table presents i For the years ended December 31, 2022 2021 Current tax Current year $ 1,097 $ 1,390 Adjustments related to prior years (263 ) (50 ) Total current tax 834 1,340 Deferred tax Change related to temporary differences 706 (139 ) Adjustments related to prior years 226 12 Effects of change in Canada (201 ) – Total deferred tax 731 (127 ) Income tax expense $ 1,565 $ 1,213 The following table discloses income tax expense (recovery) recognized directly in equity. For the years ended December 31, 2022 2021 Recognized in other comprehensive income Current income tax expense (recovery) $ (323 ) $ (3 ) Deferred income tax expense (recovery) (863 ) (61 ) Total recognized in other comprehensive income $ (1,186 ) $ (64 ) Recognized in equity, other than other comprehensive income Current income tax expense (recovery) $ 5 $ 5 Deferred income tax expense (recovery) (8 ) (15 ) Total income tax recognized directly in equity $ (3 ) $ (10 ) (b) Current tax receivable and payable As at December 31, 2022, the Company had approximately $1,135 of current tax receivable included in other assets (2021 – $660) and a of $195 included in other liabilities (c) Tax reconciliation The effective income tax rate reflected in the Consolidated Statements of Income varies from the Canadian tax rate of 27.50 per cent for the year ended December 31, 2022 (2021 – 26.50 per cent) for the items outlined in the following table. The Canadian tax rate became substantively enacted in December 2022 with an effective date For the years ended December 31, 2022 2021 Income before income taxes $ 8,747 $ 8,125 Income tax expense at Canadian statutory tax rate $ 2,406 $ 2,153 Increase (decrease) in income taxes due to: Tax-exempt (214 (261 ) Differences in tax rate on income not subject to tax in Canada (835 (917 ) Adjustments to taxes related to prior years (37 (38 ) Tax losses and temporary differences not recognized as deferred taxes 86 53 Tax rate change in Canada (201 – Other differences 360 223 Income tax expense $ 1,565 $ 1,213 (d) Deferred tax assets and liabilities The following table presents the Company’s deferred tax assets and liabilities reflected on the Consolidated Statement of Financial Position. As at December, 31 2022 2021 Deferred tax assets $ 5,423 $ 5,254 Deferred tax liabilities (2,774 ) (2,769 ) Net deferred tax assets (liabilities) $ 2,649 $ 2,485 The following table presents movement of deferred tax assets and liabilities. As at December 31, 2022 Balance, Disposals Recognized in Recognized in Other Recognized Translation Balance, Loss carryforwards $ 517 $ – $ 184 $ – $ – $ – $ 701 Actuarial liabilities 8,703 – (5,537 ) – 1 374 3,541 Pensions and post-employment benefits 161 – (1 ) (17 ) – – 143 Tax credits 46 – 63 – – – 109 Accrued interest 1 – – – – – 1 Real estate (1,171 ) – (20 ) (1 ) – (36 (1,228 Securities and other investments (5,139 ) – 4,552 879 (1 ) (250 41 Sale of investments (40 ) – 10 – – – (30 Goodwill and intangible assets (804 ) – (4 ) – – (17 ) (825 Other 211 – 22 2 8 (47 ) 196 Total $ 2,485 $ – $ (731 ) $ 863 $ 8 $ 24 $ 2,649 As at December 31, 2021 Balance, Disposals Recognized Recognized in Other Recognized Translation Balance, Loss carryforwards $ 497 $ (10 ) $ 22 $ – $ – $ 8 $ 517 Actuarial liabilities 9,372 – (666 ) – – (3 ) 8,703 Pensions and post-employment benefits 215 – 7 (61 ) – – 161 Tax credits 34 – 11 1 – – 46 Accrued interest 1 – – – – – 1 Real estate (1,033 ) – (145 ) – – 7 (1,171 ) Securities and other investments (5,950 ) – 643 119 – 49 (5,139 ) Sale of investments (56 ) – 16 – – – (40 ) Goodwill and intangible assets (849 ) – 29 – – 16 (804 ) Other (3 ) 1 210 2 15 (14 ) 211 Total $ 2,228 $ (9 ) $ 127 $ 61 $ 15 $ 63 $ 2,485 The total deferred tax assets as at December 31, 2022 of $5,423 (2021 – $5,254) include $40 (2021 – $942) 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, 2022, tax loss carryforwards available were approximately $3,902 (2021 – $2,689) of which $3,684 expire between the years 2025 and 2042 while $218 have no expiry date, and capital loss carryforwards available were approximately $1 (2021 – $1) and have no expiry date. A $701 (2021 – $517) tax benefit related to these tax loss carryforwards has been recognized as a deferred tax asset as at December 31, 2022, and a benefit of $211 (2021 – $120) has not been recognized. The Company has approximately $273 (2021 – $200) of tax credit carryforwards which will expire between the years 2026 and 2042 of which a benefit of $164 (2021 – $154) has not been recognized. In addition, the Company has not recognized a deferred tax asset of $507 (2021 – $490) on other temporary differences of $1,829 (2021 – $1,867). The total deferred tax liability as at December 31, 2022 was $2,774 (2021 – $2,769). 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 $20,625 (2021 – $24,034). |
Interests in Structured Entitie
Interests in Structured Entities | 12 Months Ended |
Dec. 31, 2022 | |
Investments accounted for using equity method [abstract] | |
Interests in Structured Entities | Note 18 Interests in Structured Entities The Company is involved with both consolidated and unconsolidated structured entities (“SEs”) which are established to generate investment and 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 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, 2022, the Company’s consolidated timber assets relating to HVPH were $1,264 (2021 – $979). The Company does not provide guarantees to other parties against the risk of loss from HVPH. Financing SEs The Company securitizes certain HELOC collateralized by residential property. This activity is facilitated by consolidated entities that are SEs because their operations are limited to issuing and servicing the Company’s funding. 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 investments 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, 2022 2021 2022 2021 Leveraged leases (3) $ 3,840 $ 3,457 $ 3,840 $ 3,457 Timberland companies (4) 816 842 816 842 Real estate companies (5) 465 513 465 513 Total $ 5,121 $ 4,812 $ 5,121 $ 4,812 (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 19. The maximum loss is expected to occur only upon the entity’s bankruptcy/liquidation, or in case 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 Company’s interests in and maximum exposure to loss from significant unconsolidated financing SEs are as follows. Company’s interests (1) As at December 31, 2022 2021 Manulife Finance (Delaware), L.P. (2) $ 691 $ 850 Total $ 691 $ 850 (1) The Company’s interests include amounts borrowed from the SE; the Company’s investment in its equity and subordinated capital; and foreign currency and interest rate swaps with it. (2) This entity is a wholly owned partnership used to facilitate the Company’s financing. Refer to notes 11 and 19. (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. 2022 2021 As at December 31, CMBS RMBS ABS Total Total AAA $ 675 $ 5 $ 1,095 $ 1,775 $ 2,346 AA – 3 6 9 11 A 56 – 534 590 641 BBB – – 232 232 227 BB and below – – 3 3 4 Total company exposure $ 731 $ 8 $ 1,870 $ 2,609 $ 3,229 (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 (“seed”) startup capital of mutual funds as at December 31, 2022 was $1,296 (2021 – $1,361). The Company’s retail mutual fund assets under management as at December 31, 2022 were $258,183 (2021 – $290,863). |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
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Commitments and Contingencies | Note 19 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 in 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. In June 2018, a class action was initiated against John Hancock Life Insurance Company (U.S.A.) (“JHUSA”) and John Hancock Life Insurance Company of New York (“JHNY”) in the U.S. District Court for the Southern District of New York on behalf of owners of approximately 1,500 Performance Universal Life (“ PerfUL In addition to the class action, eleven individual lawsuits opposing the Performance UL COI increases were also filed. Each of the lawsuits, except two, is brought by plaintiffs owning multiple policies and/or by entities managing them for investment purposes. Three of the pending federal cases have now been settled and these involved a combined 46 PerfUL policies. On September 8, 2022, two new individual lawsuits were filed in New York and California federal courts, with respect to the 16 policies owned by Skellig Capital. There are now five lawsuits pending in federal courts in New York and California and three in New York state court. In the aggregate, approximately 135 PerfUL policies are involved in these cases. There are also approximately 140 policies that have been “opted out” of the class settlement, and although no litigation is pending with respect to those policies, future litigation is possible if not probable. Of the remaining non-class/individual non-class/individual pre-trial (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 $14,193 (2021 – $12,233) of outstanding investment commitments as at December 31, 2022, of which $ 1,095 8,071 (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, 2022, letters of credit for which third parties are beneficiary, in the amount of $215 (2021 – $99), 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 financing entity. The following table presents certain condensed consolidated financial information for MFC and MFLP. Condensed Consolidated Statements of Income Information For the year ended December 31, 2022 MFC Other Consolidation Total MFLP Total revenue $ 518 $ 17,732 $ (1,103) $ 17,147 $ 64 Net income (loss) attributed to shareholders 7,294 7,071 (7,071) 7,294 21 For the year ended December 31, 2021 MFC Other Consolidation Total MFLP Total revenue $ 563 $ 62,323 $ (1,065) $ 61,821 $ 41 Net income (loss) attributed to shareholders 7,105 6,842 (6,842) 7,105 3 Condensed Consolidated Statements of Financial Position As at December 31, 2022 MFC Other on a Consolidation Total MFLP Invested assets $ 63 $ 413,938 $ – $ 414,001 $ 21 Total other assets 67,543 90,687 (71,852 ) 86,378 950 Segregated funds net assets – 348,562 – 348,562 – Insurance contract liabilities – 371,405 – 371,405 – Investment contract liabilities – 3,248 – 3,248 – Segregated funds net liabilities – 348,562 – 348,562 – Total other liabilities 11,545 58,246 (444 ) 69,347 712 As at December 31, 2021 MFC Other on a Consolidation Total MFLP Invested assets $ 78 $ 427,020 $ – $ 427,098 $ 3 Total other assets 68,866 94,615 (72,724) 90,757 1,088 Segregated funds net assets – 399,788 – 399,788 – Insurance contract liabilities – 392,275 – 392,275 – Investment contract liabilities – 3,117 – 3,117 – Segregated funds net liabilities – 399,788 – 399,788 – Total other liabilities 10,536 53,962 (904 ) 63,594 852 (ii) 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 24. (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 are as follows. 2022 2021 As at December 31, Debt securities Other Debt securities Other In respect of: Derivatives $ 11,944 $ 23 $ 5,525 $ 23 Secured borrowings – 2,385 – 2,575 Regulatory requirements 320 77 367 78 Repurchase agreements 886 – 535 – Non-registered – 326 – 377 Other – 404 2 414 Total $ 13,150 $ 3,215 $ 6,429 $ 3,467 ( f 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. ( g 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, 2022, the Company had no fixed surplus notes outstanding. |
Segmented Information
Segmented Information | 12 Months Ended |
Dec. 31, 2022 | |
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Segmented Information | Note 20 Segmented Information The Company’s reporting segments are Asia, Canada, U.S., Global WAM and Corporate and Other. Each reporting segment is responsible for managing its operating results, developing products, defining strategies for services and distribution based on the profile and needs of its business and market. The Company’s significant product and service offerings by the reporting segments are mentioned below. Wealth and asset management businesses (Global WAM) Insurance and annuity products (Asia, Canada and U.S.) Corporate and Other Segment run-off Reporting segments The following table presents results by reporting segments. As at and for the year ended December 31, 2022 Asia Canada U.S. Global WAM Corporate Total Revenue Life and health insurance $ 18,690 $ 9,945 $ 6,579 $ – $ 269 $ 35,483 Annuities and pensions 2,786 447 (863 ) – – 2,370 Net premium income 21,476 10,392 5,716 – 269 37,853 Net investment income (loss) (7,972 ) (7,911 ) (13,003 ) (39 ) (945 ) (29,870 ) Other revenue 1,458 1,426 458 6,350 (528 ) 9,164 Total revenue 14,962 3,907 (6,829 ) 6,311 (1,204 ) 17,147 Contract benefits and expenses Life and health insurance 4,976 5,945 (11,868 ) – 431 (516 ) Annuities and pensions 2,667 (8,738 ) (2,753 ) 41 – (8,783 ) Net benefits and claims 7,643 (2,793 ) (14,621 ) 41 431 (9,299 ) Interest expense 234 573 67 7 469 1,350 Other expenses 5,024 3,506 2,847 4,717 255 16,349 Total contract benefits and expenses 12,901 1,286 (11,707 ) 4,765 1,155 8,400 Income (loss) before income taxes 2,061 2,621 4,878 1,546 (2,359 ) 8,747 Income tax recovery (expense) (308 ) (777 ) (886 ) (223 ) 629 (1,565 ) Net income (loss) 1,753 1,844 3,992 1,323 (1,730 ) 7,182 Less net income (loss) attributed to: Non-controlling (4 ) – – 2 1 (1 ) Participating policyholders (467 ) 314 42 – – (111 ) Net income (loss) attributed to shareholders $ 2,224 $ 1,530 $ 3,950 $ 1,321 $ (1,731 ) $ 7,294 Total assets $ 158,036 $ 155,049 $ 267,653 $ 231,154 $ 37,049 $ 848,941 As at and for the year ended December 31, 2021 Asia Canada U.S. Global WAM Corporate Total Revenue Life and health insurance $ 20,428 $ 9,217 $ 6,338 $ – $ 147 $ 36,130 Annuities and pensions 2,558 344 33 – – 2,935 Net premium income 22,986 9,561 6,371 – 147 39,065 Net investment income (loss) 4,889 1,469 5,061 28 177 11,624 Other revenue 1,696 1,336 1,824 6,513 (237 ) 11,132 Total revenue 29,571 12,366 13,256 6,541 87 61,821 Contract benefits and expenses Life and health insurance 18,240 10,276 9,307 – 159 37,982 Annuities and pensions 2,638 (3,371 ) (1,528 ) 101 – (2,160 ) Net benefits and claims 20,878 6,905 7,779 101 159 35,822 Interest expense 232 269 47 1 462 1,011 Other expenses 5,273 3,401 2,947 4,798 444 16,863 Total contract benefits and expenses 26,383 10,575 10,773 4,900 1,065 53,696 Income (loss) before income taxes 3,188 1,791 2,483 1,641 (978 ) 8,125 Income tax recovery (expense) (445 ) (336 ) (385 ) (233 ) 186 (1,213 ) Net income (loss) 2,743 1,455 2,098 1,408 (792 ) 6,912 Less net income (loss) attributed to: Non-controlling 253 – – 2 – 255 Participating policyholders (567 ) 101 18 – – (448 ) Net income (loss) attributed to shareholders $ 3,057 $ 1,354 $ 2,080 $ 1,406 $ (792 ) $ 7,105 Total assets $ 162,970 $ 169,736 $ 290,838 $ 259,363 $ 34,736 $ 917,643 Geographical location The results of the Company’s reporting segments differ from its geographical location primarily due to the allocation of Global WAM and Corporate and Other segments into the geographical location to which its businesses relate. The following table presents results by geographical location. For the year ended December 31, 2022 Asia Canada U.S. Other Total Revenue Life and health insurance $ 18,786 $ 9,615 $ 6,580 $ 502 $ 35,483 Annuities and pensions 2,786 447 (863 ) – 2,370 Net premium income 21,572 10,062 5,717 502 37,853 Net investment income (loss) (8,468 ) (8,435 ) (13,288 ) 321 (29,870 ) Other revenue 2,702 3,246 3,217 (1 ) 9,164 Total revenue $ 15,806 $ 4,873 $ (4,354 ) $ 822 $ 17,147 For the year ended December 31, 2021 Asia Canada U.S. Other Total Revenue Life and health insurance $ 20,515 $ 8,905 $ 6,340 $ 370 $ 36,130 Annuities and pensions 2,558 344 33 – 2,935 Net premium income 23,073 9,249 6,373 370 39,065 Net investment income (loss) 5,313 1,255 4,830 226 11,624 Other revenue 2,818 3,363 4,952 (1 ) 11,132 Total revenue $ 31,204 $ 13,867 $ 16,155 $ 595 $ 61,821 |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2022 | |
Text block [abstract] | |
Related Parties | Note 21 Related Parties The Company enters into transactions with related parties 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, are described in notes 11, 18 and 19. (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, 2022 2021 Short-term employee benefits $ 73 $ 65 Post-employment benefits 6 5 Share-based payments 73 57 Termination benefits – – Other long-term benefits 3 2 Total $ 155 $ 129 |
Subsidiaries
Subsidiaries | 12 Months Ended |
Dec. 31, 2022 | |
Investments accounted for using equity method [abstract] | |
Subsidiaries | Note 22 Subsidiaries The following is a list of Manulife’s directly and indirectly held major operating subsidiaries. As at December 31, 2022 (100% owned unless otherwise noted in brackets beside company name) Equity Address Description The Manufacturers Life Insurance Company $ 65,848 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 $ 21,640 Calgary, Canada Holding company John Hancock Financial Corporation Boston, U.S.A. Holding company The Manufacturers Investment Corporation Boston, U.S.A. Holding company John Hancock Reassurance Company Ltd. Boston, 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.) Boston, U.S.A. U.S. life insurance company licensed in all states, except New York John Hancock Subsidiaries LLC Boston, U.S.A. Holding company John Hancock Financial Network, Inc. Boston, U.S.A. Financial services distribution organization John Hancock Investment Management LLC Boston, U.S.A. Investment advisor John Hancock Investment Management Distributors LLC Boston, U.S.A. Broker-dealer Manulife Investment Management (US) LLC Boston, U.S.A. Investment advisor Manulife Investment Management Timberland and Agriculture Inc. Boston, 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 Variable Trust Advisers LLC Boston, U.S.A. Investment advisor for open-end mutual funds John Hancock Life & Health Insurance Company Boston, U.S.A. U.S. life insurance company licensed in all states John Hancock Distributors LLC Boston, U.S.A. Broker-dealer John Hancock Insurance Agency, Inc. Boston, 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 $ 1,788 Waterloo, Canada Provides integrated banking products and service options not available from an insurance company Manulife Investment Management Holdings (Canada) Inc. $ 1,179 Toronto, Canada Holding company Manulife Investment Management Limited Toronto, Canada Provides investment counseling, portfolio and mutual fund management in Canada First North American Insurance Company $ 7 Toronto, Canada Property and casualty insurance company Manulife Securities Investment Services Inc. $ 80 Oakville, Canada Mutual fund dealer for Canadian operations Manulife Holdings (Bermuda) Limited $ 22,841 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 As at December 31, 2022 (100% owned unless otherwise noted in brackets beside company name) Equity Address Description Manulife (Cambodia) PLC Phnom Penh, Cambodia Life insurance company Manulife Myanmar Life Insurance Company Limited Yangon, Myanmar 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 Investment Fund 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 Investment Management International Holdings Limited Hong Kong, China Holding company Manulife Investment Management (Hong Kong) Limited Hong Kong, China Investment management and advisory company marketing mutual funds Manulife Investment Management (Taiwan) Co., Ltd. Taipei, Taiwan (China) Investment management company Manulife Life Insurance Company (Japan) Tokyo, Japan Life insurance company Manulife Investment Management (Japan) Limited Tokyo, Japan Investment management and advisory company and mutual fund business Manulife Holdings Berhad (61.6%) Kuala Lumpur, Malaysia Holding company Manulife Insurance Berhad (61.6%) Kuala Lumpur, Malaysia Life insurance company Manulife Investment Management (Malaysia) Berhad (61.6%) Kuala Lumpur, Malaysia Asset management company Manulife (Singapore) Pte. Ltd. Singapore Life insurance company Manulife Investment 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 and investment advisor Manulife TEDA Fund Management Co., Ltd Beijing, China Mutual fund company in China Manulife Investment Management (Europe) Limited $ 34 London, England Investment management company for Manulife Financial’s international funds Manulife Assurance Company of Canada $ 64 Toronto, Canada Life insurance company EIS Services (Bermuda) Limited $ 902 Hamilton, Bermuda Investment holding company Berkshire Insurance Services Inc. $ 1,868 Toronto, Canada Investment holding company JH Investments (Delaware) LLC Boston, U.S.A. Investment holding company Manulife Securities Incorporated $ 151 Oakville, Canada Investment dealer Manulife Investment Management (North America) Limited $ 4 Toronto, Canada Investment advisor |
Segregated Funds
Segregated Funds | 12 Months Ended |
Dec. 31, 2022 | |
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Segregated Funds | Note 23 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 and Risk Factors” section of the Company’s 2022 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, 2022 and 2021. Ranges in per cent Type of fund 2022 2021 Money market funds 2% to 3% 2% to 3% Fixed income funds 13% to 14% 14% to 15% Balanced funds 22% to 23% 22% to 23% Equity funds 61% to 62% 60% to 62% 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. Fair value related information of segregated funds is disclosed in note 4(g). Segregated funds net assets As at December 31, 2022 2021 Investments at market value Cash and short-term securities $ 4,280 $ 3,955 Debt securities 15,270 18,651 Equities 15,499 16,844 Mutual funds 308,707 354,882 Other investments 4,293 4,613 Accrued investment income 1,680 2,340 Other assets and liabilities, net (796 ) (1,089 ) Total segregated funds net assets $ 348,933 $ 400,196 Composition of segregated funds net assets Held by policyholders $ 348,562 $ 399,788 Held by the Company 371 408 Total segregated funds net assets $ 348,933 $ 400,196 Changes in segregated funds net assets For the years ended December 31, 2022 2021 Net policyholder cash flows Deposits from policyholders $ 42,427 $ 44,548 Net transfers to general fund (1,267 ) (732 ) Payments to policyholders (46,333 ) (52,182 ) (5,173 ) (8,366 ) Investment related Interest and dividends 21,900 24,092 Net realized and unrealized investment gains (losses) (78,017 ) 21,549 (56,117 ) 45,641 Other Management and administration fees (3,886 ) (4,115 ) Impact of changes in foreign exchange rates 13,913 (773 ) 10,027 (4,888 ) Net additions (deductions) (51,263 ) 32,387 Segregated funds net assets, beginning of year 400,196 367,809 Segregated funds net assets, end of year $ 348,933 $ 400,196 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 included in segregated funds. Accordingly, the Company’s exposure to loss from segregated fund products is limited to the value of these guarantees. These guarantees 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 and SignatureNotes Issued or Assumed by John Hancock Life Insurance Company (U.S.A.) | 12 Months Ended |
Dec. 31, 2022 | |
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Information Provided in Connection with Investments in Deferred Annuity Contracts and SignatureNotes Issued or Assumed by John Hancock Life Insurance Company (U.S.A.) | Note 24 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, some of which 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 has sold 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 13. 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 13. 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 guarantees. 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, 2022 MFC JHUSA Other Consolidation Consolidated Assets Invested assets $ 63 $ 116,463 $ 297,996 $ (521 ) $ 414,001 Investments in unconsolidated subsidiaries 67,209 8,819 22,053 (98,081 ) – Reinsurance assets – 61,511 12,137 (25,936 ) 47,712 Other assets 334 9,456 48,135 (19,259 ) 38,666 Segregated funds net assets – 173,417 177,361 (2,216 ) 348,562 Total assets $ 67,606 $ 369,666 $ 557,682 $ (146,013 ) $ 848,941 Liabilities and equity Insurance contract liabilities $ – $ 156,205 $ 241,830 $ (26,630 ) $ 371,405 Investment contract liabilities – 1,418 1,830 – 3,248 Other liabilities 451 20,159 55,304 (18,923 ) 56,991 Long-term debt 6,234 – – – 6,234 Capital instruments 4,860 614 648 – 6,122 Segregated funds net liabilities – 173,417 177,361 (2,216 ) 348,562 Shareholders’ and other equity holders’ equity 56,061 17,853 80,391 (98,244 ) 56,061 Participating policyholders’ equity – – (1,346 ) – (1,346 ) Non-controlling – – 1,664 – 1,664 Total liabilities and equity $ 67,606 $ 369,666 $ 557,682 $ (146,013 ) $ 848,941 Condensed Consolidated Statement of Financial Position As at December 31, 2021 MFC JHUSA Other Consolidation Consolidated Assets Invested assets $ 78 $ 116,705 $ 310,679 $ (364 ) $ 427,098 Investments in unconsolidated subsidiaries 68,655 9,107 20,788 (98,550 ) – Reinsurance assets – 63,838 11,309 (30,568 ) 44,579 Other assets 211 18,085 49,956 (22,074 ) 46,178 Segregated funds net assets – 204,493 197,220 (1,925 ) 399,788 Total assets $ 68,944 $ 412,228 $ 589,952 $ (153,481 ) $ 917,643 Liabilities and equity Insurance contract liabilities $ – $ 166,535 $ 257,044 $ (31,304 ) $ 392,275 Investment contract liabilities – 1,227 1,890 – 3,117 Other liabilities 899 21,806 50,836 (21,809 ) 51,732 Long-term debt 4,882 – – – 4,882 Capital instruments 4,755 579 1,646 – 6,980 Segregated funds net liabilities – 204,493 197,220 (1,925 ) 399,788 Shareholders’ and other equity holders’ equity 58,408 17,588 80,855 (98,443 ) 58,408 Participating policyholders’ equity – – (1,233 ) – (1,233 ) Non-controlling – – 1,694 – 1,694 Total liabilities and equity $ 68,944 $ 412,228 $ 589,952 $ (153,481 ) $ 917,643 Condensed Consolidated Statement of Income For the year ended December 31, 2022 MFC JHUSA Other Consolidation Consolidated Revenue Gross premiums $ – $ 7,924 $ 37,041 $ (863 ) $ 44,102 Premiums ceded to reinsurers – (2,561 ) (4,662 ) 974 (6,249 ) Net premium income – 5,363 32,379 111 37,853 Net investment income (loss) 554 (9,714 ) (19,446 ) (1,264 ) (29,870 ) Other revenue (36 ) 281 7,871 1,048 9,164 Total revenue 518 (4,070 ) 20,804 (105 ) 17,147 Contract benefits and expenses Net benefits and claims – (8,505 ) (1,572 ) 778 (9,299 ) Commissions, investment and general expenses 42 3,099 13,798 (1,034 ) 15,905 Other expenses 440 264 939 151 1,794 Total contract benefits and expenses 482 (5,142 ) 13,165 (105 ) 8,400 Income (loss) before income taxes 36 1,072 7,639 – 8,747 Income tax (expense) recovery 32 (23 ) (1,574 ) – (1,565 ) Income (loss) after income taxes 68 1,049 6,065 – 7,182 Equity in net income (loss) of unconsolidated subsidiaries 7,226 997 2,046 (10,269 ) – Net income (loss) $ 7,294 $ 2,046 $ 8,111 $ (10,269 ) $ 7,182 Net income (loss) attributed to: Non-controlling $ – $ – $ (1 ) $ – $ (1 ) Participating policyholders – (236 ) 125 – (111 ) Shareholders and other equity holders 7,294 2,282 7,987 (10,269 ) 7,294 $ 7,294 $ 2,046 $ 8,111 $ (10,269 ) $ 7,182 Condensed Consolidated Statement of Income For the year ended December 31, 2021 MFC JHUSA Other Consolidation Consolidated Revenue Gross premiums $ – $ 7,782 $ 37,563 $ (1,001 ) $ 44,344 Premiums ceded to reinsurers – (3,243 ) (3,031 ) 995 (5,279 ) Net premium income – 4,539 34,532 (6 ) 39,065 Net investment income (loss) 530 3,779 8,440 (1,125 ) 11,624 Other revenue 33 2,042 9,605 (548 ) 11,132 Total revenue 563 10,360 52,577 (1,679 ) 61,821 Contract benefits and expenses Net benefits and claims – 6,478 28,467 877 35,822 Commissions, investment and general expenses 12 3,451 14,419 (1,436 ) 16,446 Other expenses 390 212 1,946 (1,120 ) 1,428 Total contract benefits and expenses 402 10,141 44,832 (1,679 ) 53,696 Income (loss) before income taxes 161 219 7,745 – 8,125 Income tax (expense) recovery (28 ) 115 (1,300 ) – (1,213 ) Income (loss) after income taxes 133 334 6,445 – 6,912 Equity in net income (loss) of unconsolidated subsidiaries 6,972 1,218 1,552 (9,742 ) – Net income (loss) $ 7,105 $ 1,552 $ 7,997 $ (9,742 ) $ 6,912 Net income (loss) attributed to: Non-controlling $ – $ – $ 255 $ – $ 255 Participating policyholders – (4 ) (448 ) 4 (448 ) Shareholders 7,105 1,556 8,190 (9,746 ) 7,105 $ 7,105 $ 1,552 $ 7,997 $ (9,742 ) $ 6,912 Consolidated Statement of Cash Flows For the year ended December 31, 2022 MFC (Guarantor) JHUSA (Issuer) Other subsidiaries Consolidation adjustments Consolidated MFC Operating activities Net income (loss) $ 7,294 $ 2,046 $ 8,111 $ (10,269 ) $ 7,182 Adjustments: Equity in net income of unconsolidated subsidiaries (7,226 ) (997 ) (2,046 ) 10,269 – Increase (decrease) in insurance contract liabilities – (20,032 ) (13,381 ) – (33,413 ) Increase (decrease) in investment contract liabilities – 44 (3 ) – 41 (Increase) decrease in reinsurance assets excluding coinsurance transactions – 6,869 (6,710 ) – 159 Amortization of (premium) discount on invested assets – 46 (78 ) – (32 ) Other amortization 9 125 404 – 538 Net realized and unrealized (gains) losses and impairment on assets (36 ) 15,150 32,156 – 47,270 Gain on U.S. variable annuity reinsurance transaction (pre-tax) – (1,026 ) (44 ) – (1,070 ) Gain on derecognition of Joint Venture interest during Manulife TEDA acquisition (pre-tax) – – (95 ) – (95 ) Deferred income tax expense (recovery) (33 ) 294 470 – 731 Stock option expense – (3 ) 8 – 5 Cash provided by (used in) operating activities before undernoted items 8 2,516 18,792 – 21,316 Dividends from unconsolidated subsidiary 6,200 399 734 (7,333 ) – Cash decrease due to U.S. variable annuity reinsurance transaction – (1,263 ) (114 ) – (1,377 ) Changes in policy related and operating receivables and payables 45 2,805 (5,054 ) – (2,204 ) Cash provided by (used in) operating activities 6,253 4,457 14,358 (7,333 ) 17,735 Investing activities Purchases and mortgage advances – (28,798 ) (82,970 ) – (111,768) Disposals and repayments 1 23,505 69,901 – 93,407 Changes in investment broker net receivables and payables – (11 ) (56 ) – (67 ) Net cash increase (decrease) from sale (purchase) of subsidiary – – (182 ) – (182 ) Investment in common shares of subsidiaries (2,479 ) – – 2,479 – Capital contribution to unconsolidated subsidiaries – (1 ) – 1 – Return of capital from unconsolidated subsidiaries – 19 – (19 ) – Notes receivable from parent – – 415 (415 ) – Notes receivable from subsidiaries 46 (7 ) – (39 ) – Cash provided by (used in) investing activities (2,432 ) (5,293 ) (12,892 ) 2,007 (18,610 ) Financing activities Issue of long-term debt, net 946 – – – 946 Redemption of capital instruments – – (1,000 ) – (1,000 ) Secured borrowings – – 437 – 437 Change in repurchase agreements and securities sold but not yet purchased – – (551 ) – (551 ) Changes in deposits from Bank clients, net – – 1,703 – 1,703 Lease payments – (5 ) (115 ) – (120 ) Shareholders’ dividends and other equity distributions (2,787 ) – – – (2,787 ) Common shares repurchased (1,884 ) – – – (1,884 ) Common shares issued, net 23 – 2,479 (2,479 ) 23 Preferred shares and other equity issued, net 990 – – – 990 Preferred shares redeemed, net (711 ) – – – (711 ) Contributions from (distributions to) non-controlling – – (51 ) – (51 ) Dividends paid to parent – (734 ) (6,599 ) 7,333 – Capital contributions by parent – – 1 (1 ) – Return of capital to parent – – (19 ) 19 – Notes payable to parent – – (39 ) 39 – Notes payable to subsidiaries (415 ) – – 415 – Cash provided by (used in) financing activities (3,838 ) (739 ) (3,754 ) 5,326 (3,005 ) Cash and short-term securities Increase (decrease) during the year (17 ) (1,575 ) (2,288 ) – (3,880 ) Effect of foreign exchange rate changes on cash and short-term securities 2 225 358 – 585 Balance, beginning of year 78 3,565 18,287 – 21,930 Balance, end of year 63 2,215 16,357 – 18,635 Cash and short-term securities Beginning of year Gross cash and short-term securities 78 4,087 18,429 – 22,594 Net payments in transit, included in other liabilities – (522 ) (142 ) – (664 ) Net cash and short-term securities, beginning of year 78 3,565 18,287 – 21,930 End of year Gross cash and short-term securities 63 2,614 16,476 – 19,153 Net payments in transit, included in other liabilities – (399 ) (119 ) – (518 ) Net cash and short-term securities, end of year $ 63 $ 2,215 $ 16,357 $ – $ 18,635 Supplemental disclosures on cash flow information: Interest received $ 512 $ 4,050 $ 8,732 $ (1,161 ) $ 12,133 Interest paid 424 118 1,867 (1,161 ) 1,248 Income taxes paid – 124 1,114 – 1,238 Consolidated Statement of Cash Flows For the year ended December 31, 2021 MFC (Guarantor) JHUSA (Issuer) Other subsidiaries Consolidation adjustments Consolidated MFC Operating activities Net income (loss) $ 7,105 $ 1,552 $ 7,997 $ (9,742 ) $ 6,912 Adjustments: Equity in net income of unconsolidated subsidiaries (6,972 ) (1,218 ) (1,552 ) 9,742 – Increase (decrease) in insurance contract liabilities – (562 ) 11,281 – 10,719 Increase (decrease) in investment contract liabilities – 50 (6 ) – 44 (Increase) decrease in reinsurance assets excluding coinsurance transactions – 1,544 (790 ) – 754 Amortization of (premium) discount on invested assets – 57 124 – 181 Other amortization 16 124 389 – 529 Net realized and unrealized (gains) losses and impairment on assets 62 1,533 3,229 – 4,824 Deferred income tax expense (recovery) 34 190 (351 ) – (127 ) Stock option expense – (2 ) 11 – 9 Cash provided by (used in) operating activities before undernoted items 245 3,268 20,332 – 23,845 Dividends from unconsolidated subsidiary 5,000 489 742 (6,231 ) – Changes in policy related and operating receivables and payables (22 ) 424 (1,092 ) – (690 ) Cash provided by (used in) operating activities 5,223 4,181 19,982 (6,231 ) 23,155 Investing activities Purchases and mortgage advances – (31,746 ) (89,219 ) – (120,965 ) Disposals and repayments – 27,194 69,534 – 96,728 Changes in investment broker net receivables and payables – (202 ) 16 – (186 ) Investment in common shares of subsidiaries (3,700 ) – – 3,700 – Net cash flows from acquisition and disposal of subsidiaries and businesses – – (19 ) – (19 ) Capital contribution to unconsolidated subsidiaries – (1 ) – 1 – Return of capital from unconsolidated subsidiaries – 1 – (1 ) – Notes receivable from parent – – (129 ) 129 – Notes receivable from subsidiaries (13 ) – – 13 – Cash provided by (used in) investing activities (3,713 ) (4,754 ) (19,817 ) 3,842 (24,442 ) Financing activities Redemption of long-term debt (1,250 ) – – – (1,250 ) Redemption of capital instruments (468 ) – (350 ) – (818 ) Secured borrowings – – 26 – 26 Change in repurchase agreements and securities sold but not yet purchased – – 186 – 186 Changes in deposits from Bank clients, net – – (164 ) – (164 ) Lease payments – (7 ) (117 ) – (124 ) Shareholders’ dividends and other equity distributions (2,500 ) – – – (2,500 ) Contributions from (distributions to) non-controlling – – (13 ) – (13 ) Common shares issued, net 51 – 3,700 (3,700 ) 51 Preferred shares and other equity issued, net 3,171 – – – 3,171 Preferred shares redeemed, net (612 ) – – – (612 ) Dividends paid to parent – (742 ) (5,489 ) 6,231 – Capital contributions by parent – – 1 (1 ) – Return of capital to parent – – (1 ) 1 – Notes payable to parent – – 13 (13 ) – Notes payable to subsidiaries 129 – – (129 ) – Cash provided by (used in) financing activities (1,479 ) (749 ) (2,208 ) 2,389 (2,047 ) Cash and short-term securities Increase (decrease) during the year 31 (1,322 ) (2,043 ) – (3,334 ) Effect of foreign exchange rate changes on cash and short-term securities – (20 ) (299 ) – (319 ) Balance, beginning of year 47 4,907 20,629 – 25,583 Balance, end of year 78 3,565 18,287 – 21,930 Cash and short-term securities Beginning of year Gross cash and short-term securities 47 5,213 20,907 – 26,167 Net payments in transit, included in other liabilities – (306 ) (278 ) – (584 ) Net cash and short-term securities, beginning of year 47 4,907 20,629 – 25,583 End of year Gross cash and short-term securities 78 4,087 18,429 – 22,594 Net payments in transit, included in other liabilities – (522 ) (142 ) – (664 ) Net cash and short-term securities, end of year $ 78 $ 3,565 $ 18,287 $ – $ 21,930 Supplemental disclosures on cash flow information: Interest received $ 499 $ 4,112 $ 7,847 $ (1,082 ) $ 11,376 Interest paid 396 73 1,594 (1,082 ) 981 Income taxes paid (refund) – (118 ) 689 – 571 |
Significant Accounting Policies
Significant Accounting Policies in Accordance with IFRS 9 and IFRS 17 | 12 Months Ended |
Dec. 31, 2022 | |
Text Block 1 [Abstract] | |
Significant Accounting Policies in Accordance with IFRS 9 and IFRS 17 | Note 25 Significant accounting policies in accordance with IFRS 9 and IFRS 17 As discussed in note 2 “Accounting and Reporting Changes”, the Company adopted IFRS 9 (“Financial Instruments”) and IFRS 17 (“Insurance Contracts”) as a replacement of IAS 39 and IFRS 4 effective January 1, 2023. The Consolidated Financial Statements starting from January 1, 2023, and any required comparatives, will be prepared in accordance with the new standards. This note outlines the Company’s accounting policies on invested assets, derivatives and hedging instruments that are in accordance with IFRS 9, as well as the accounting policies on insurance contract liabilities and reinsurance contract assets that are in accordance with IFRS 17. Refer to note 2 for adoption impacts of IFRS 9 and IFRS 17. Invested assets Invested assets are recognized initially at fair value plus, in the case of investments not at FVTPL, directly attributable transaction costs. Invested assets that are considered financial instruments are classified as fair value through other comprehensive income (“FVOCI”), fair value through profit or loss (“FVTPL”) or as amortized cost. The Company determines the classification of its financial assets at initial recognition. The classification of invested assets which are financial instruments depends on their contractual terms and the Company’s business model for managing the assets. The Company assesses the contractual terms of the assets to determine whether their contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest (“SPPI”) on the principal amount outstanding. Only debt instruments may have SPPI cash flows. The most significant elements of interest within a lending arrangement are typically the consideration for the time value of money and credit risk. To make the SPPI assessment, the Company applies judgment and considers relevant factors such as prepayment and redemption rights, conversion features, and subordination of the instrument to other instruments of the issuer. Contractual terms that introduce a more than de minimis exposure to risks of not collecting principal or interest would not meet the SPPI test. Debt instruments which qualify as having SPPI cash flows are classified as amortized cost or FVOCI based on the business model under which they are held. If held within a business model whose objective is to hold the assets in order to collect contractual cash flows, they are classified as amortized cost. If held within a business model whose objective is achieved by both collecting contractual cash flows and selling the assets, they are classified as FVOCI. In either case, the company may designate them as FVTPL in order to reduce accounting mismatches with FVTPL liabilities they support. Debt instruments which fail the SPPI test are required to be measured at FVTPL. To identify the business model financial assets are held within, considerations include the business purpose of the portfolio holding them, the risks that are being managed and the business activities which manage the risks, the basis on which performance of the portfolio is being evaluated, and the frequency and significance of sales activity within the portfolio. Realized and unrealized gains and losses on debt instruments classified as FVTPL and realized gains and losses on debt instruments held at amortized cost and FVOCI are recognized in investment income immediately. Unrealized gains and losses on FVOCI debt securities are recorded in OCI, except for unrealized gains and losses on foreign currency translation which are included in income. Investments in equity which are financial instruments are not subject to the SPPI test and are accounted for as FVTPL unless the option to designate them as FVOCI is taken. Valuation methods for the Company’s invested assets are described above in note 1(c). All fair value valuations are performed in accordance with IFRS 13 “Fair Value Measurement”. Disclosure of financial instruments carried at fair value within the three levels of the fair value hierarchy and 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 of cash, current operating accounts, overnight bank and term deposits, and fixed income securities held for 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 or amortized cost. 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, prepayment rates and volatility of these inputs. These debt securities are classified as Level 2 but can be Level 3 if significant inputs are market unobservable. Public equities are comprised of common and preferred equities and are carried at fair value. Public equities are generally classified as Level 1, as fair values are normally based on quoted market prices. Realized and unrealized gains and losses on equities designated as FVTPL are recognized in investment income immediately. Unrealized gains and losses on equity securities designated as FVOCI are recorded in OCI and are never reclassified to investment income. Upon sale of an FVOCI equity security, related AOCI is reclassified to retained earnings. The Company’s risk management policies and procedures related to equities can be found in the denoted components of the “Risk Management and Risk Factors” section of the MD&A. Mortgages are classified as Level 3 for fair value purposes due to the lack of market observability of certain significant valuation inputs. 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 generally classified as Level 2 for fair value disclosure purposes or as Level 3 if significant inputs are market unobservable. Loans to Manulife Bank of Canada (“Manulife Bank” or “Bank”) clients are carried at amortized cost and are classified as Level 2 for fair value disclosure purposes. 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 (“EIR”) 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. The Company records purchases and sales of invested assets on a trade date basis. Loans originated by the Company 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, or at revalued amount which is the fair value as at the most recent revaluation date minus accumulated amortization 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. Own use property is classified as Level 3 for fair value disclosure purposes. Own use real estate properties which are underlying items for insurance contracts with direct participating features are measured at fair value as if they were investment properties, as permitted by IFRS 17. 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 of own use properties and investment properties is determined using the same processes. Fair value for properties is determined using external appraisals that are based on the highest and best use of the property. The valuation techniques 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 or loss 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. When a property changes from investment property to own use, the property’s deemed cost for subsequent accounting is its fair value as at the date of change in use. Other invested assets include private equity investments and property investments held in infrastructure and timber, as well as in agriculture and oil and gas sectors. Private equity investments are accounted for as associates or joint ventures using the equity method (as described in note 1(d) above) or are classified as FVTPL and carried at fair value. Timber and agriculture properties are measured at fair value with changes in fair value recognized in income, except for 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 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 debt using the effective yield method. Expected Credit Loss Impairment The expected credit loss (“ECL”) impairment allowance model applies to invested assets which are debt instruments and measured at FVOCI or amortized cost. ECL allowances are measured under four probability-weighted macroeconomic scenarios, which measure the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive, discounted at the original EIR. This process includes consideration of past events, current market conditions and reasonable supportable information about future economic conditions. Forward-looking macroeconomic variables used within the estimation models represent variables that are the most closely related with credit losses in the relevant portfolio. The estimation and measurement of impairment losses requires significant judgment. These estimates are driven by many elements, changes in which can result in different levels of allowances. Elements include the estimation of the amount and timing of future cash flows, the Company’s criteria for assessing if there has been a significant increase in credit risk (“SICR”), the selection of forward-looking macroeconomic scenarios and their probability weights, the application of expert credit judgment in the development of the models, inputs and, when applicable, overlay adjustments. It is the Company’s process to regularly review its models in the context of actual loss experience and adjust when necessary. The Company has implemented formal policies, procedures, and controls over all significant impairment processes. The Company’s definitions of default and credit-impaired are based on quantitative and qualitative factors. A financial instrument is considered to be in default when significant payments of interest, principal or fees are past due for more than 90 days, unless remedial arrangements with the issuer are in place. A financial instrument may be credit impaired as a result of one or more loss events that occurred after the date of initial recognition of the instrument and the loss event has a negative impact on the estimated future cash flows of the instrument. This includes events that indicate or include: significant financial difficulty of the counterparty; a breach of contract; for economic or contractual reasons relating to the counterparty’s financial difficulty, concessions are granted that would not otherwise be considered; it is becoming probable that the counterparty will enter bankruptcy or other financial reorganization; the disappearance of an active market for that financial asset because of the counterparty’s financial difficulties; or the counterparty is considered to be in default by any of the major rating agencies such as S&P, Moody’s and Fitch. The ECL calculations include the following elements: • Probability of default (“PD”), is an estimate of the likelihood of default over a given time horizon. • Loss given default (“LGD”), is an estimate of the loss arising on a future default. This is based on the difference between the contractual cash flows due and those that the Company expects to receive, including from collateral. It is based on credit default studies performed based on internal credit experience. • Exposure at default (“EAD”), is an estimate of the exposure at a future default date, considering both the period of exposure and the amount of exposure at a given reporting date. The EADs are determined by modelling the range of possible exposure outcomes at various points in time, corresponding to the multiple economic scenarios. The probabilities are then assigned to each economic scenario based on the outcome of the models. The Company measures ECLs using a three-stage approach: • Stage 1 comprises all performing financial instruments that have not experienced an SICR since initial recognition. The determination of SICR varies by product and considers the relative change in the risk of default since origination. 12-month ECLs are recognized for all Stage 1 financial instruments. • 12-month ECLs represent the portion of lifetime ECLs that result from default events possible within 12 months of the reporting date. These expected 12-month default probabilities are applied to a forecast EAD, multiplied by the expected LGD, and discounted by the original EIR. This calculation is made for each of four macroeconomic scenarios. • Stage 2 comprises all performing financial instruments that have experienced an SICR since original recognition or have become 30 days in arrears for principal or interest payments, whichever happens first. When assets move to Stage 2, full lifetime ECLs are recognized, which represent ECLs that result from all possible default events over the remaining lifetime of the financial instrument. The mechanics are consistent with Stage 1, except PDs and LGDs are estimated over the remaining lifetime of the instrument instead of over the coming year. In subsequent reporting periods, if the credit risk of a financial instrument improves such that there is no longer a SICR compared to credit risk at initial recognition, the financial instrument will migrate back to Stage 1 and 12-month ECLs will be recognized; and • Stage 3 comprises financial instruments identified as credit-impaired. Similar to Stage 2 assets, full lifetime ECLs are recognized for Stage 3 financial instruments, but the PD is set at 100%. A Stage 3 ECL is calculated using the unpaid principal balance multiplied by LGD which reflects the difference between the asset’s carrying amount and its discounted expected future cash flows. Interest income is calculated based on the gross carrying amount for both Stage 1 and 2 exposures. Interest income on Stage 3 financial instruments is determined by applying the EIR to the amortized cost of the instrument, which represents the gross carrying amount adjusted for any credit loss allowance. For Stage 1 and Stage 2 exposures, an ECL is generated for each individual exposure; however, the relevant parameters are modelled on a collective basis with all collective parameters captured by the individual security level. The exposures are grouped into smaller homogeneous portfolios, based on a combination of internal and external characteristics, such as origination details, balance history, sector, geographic location, and credit history. Stage 3 ECLs are either individually or collectively assessed, depending on the nature of the instrument and impairment. In assessing whether credit risk has increased significantly, the risk of default occurring is compared over the remaining expected life from the reporting date and as of the date of initial recognition. The assessment varies by product and risk segment. The assessment incorporates internal credit risk ratings and a combination of security-specific and portfolio-level assessments, including the incorporation of forward-looking macroeconomic data. The assessment of SICR considers both absolute and relative thresholds. If contractual payments are more than 30 days past due, the credit risk is automatically deemed to have increased significantly since initial recognition. When estimating ECLs, the four probability-weighted macroeconomic scenarios are considered. Economic forward-looking inputs include stock price indices (“SPI”), unemployment rates (“UEs”), oil prices and the 7-10 year BBB US Corporate Index. Application of each input varies by product. Depending on their usage in the models, macroeconomic inputs are projected at the country, province, or more granular level. Each macroeconomic scenario used includes a projection of all relevant macroeconomic variables for a five-year period, subsequently reverting to long-run averages. In order to achieve an unbiased estimate, economic data used in the models is supplied by an external source. This information is compared to other publicly available forecasts, and the scenarios are assigned a probability weighting based on statistical analysis and management judgment. The inputs and models used for calculating ECLs may not always capture all characteristics of the market at the date of the Consolidated Financial Statements. Changes in the required ECL allowance are recorded in the provision for credit losses in the Consolidated Statements of Income. Invested assets are written off, either partially or in full, against the related allowance for credit losses when there is no realistic prospect of recovery in respect of those amounts. This is considered a (partial) derecognition of the financial asset. In subsequent periods, any recoveries of amounts previously written off are credited to the provision for credit losses. 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 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 which are separate financial instruments are recorded at fair value, and those with unrealized gains reported as derivative assets and those with unrealized losses 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. 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. Hedge accounting is only applied when the Company expects that the risk management objective will be met and the hedging relationship will qualify for hedge accounting requirements both at inception and throughout the hedging period. The assessment of hedge effectiveness is performed at the end of each reporting period prospectively. When it is determined that the risk management objective is no longer met, a hedging relationship is no longer effective, or the hedging instrument or the hedged item ceased to exist, 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 recorded 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 attributable to the hedged risk, which would otherwise not be carried at fair value through profit or loss. Hedge ineffectiveness is recognized in total investment results 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 total investment results over the remaining term of the hedged item unless the hedged item ceased to exist, at which time the balance is recognized immediately in total investment results. 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 total investment results. Gains and losses in accumulated other comprehensive income (“AOCI”) are recognized in income during the same periods that the variability in the hedged cash flows or the hedged forecasted transactions are recognized in income. The reclassifications from AOCI are made to total investment results, except for total return swaps that hedge stock-based compensation awards, which are reclassified to general expenses. Gains and losses on cash flow hedges in AOCI are reclassified immediately to total investment results when the hedged item ceased to exist or the forecasted transaction is no longer expected to occur. When a hedge is discontinued, but the hedged forecasted transaction is expected to occur, the amounts in AOCI are reclassified to total investment results 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, 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 upon disposal of the foreign operation. Insurance contract liabilities and reinsurance contract assets Classification and separation of components 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 pay additional amounts that are significant in any single scenario, excluding scenarios that lack commercial substance. The additional amounts refer to the present value of amounts that exceed those that would be payable if no insured event had occurred. Contracts held by the Company under which it transfers significant insurance risk related to underlying insurance contracts to other parties are classified as reinsurance contracts. Both insurance and reinsurance contracts are accounted for in accordance with IFRS 17 “Insurance Contracts”. 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 IFRS 9 “Financial Instruments” or IFRS 15 “Revenue from Contracts with Customers”, respectively. Insurance contracts are classified as direct participation contracts or contracts without direct participation features based on specific criteria. Insurance contracts with direct participation features are insurance contracts that are substantially investment-related service contracts under which an entity promises an investment return based on underlying items. They are viewed as creating an obligation to pay policyholders an amount that is equal to the fair value of the underlying items, less a variable fee for service. At inception of insurance and reinsurance contracts, the Company analyses whether they contain the following components that should be separated and accounted for under other IFRS standards: derivatives embedded within insurance contracts that are required to be separated (IFRS 9); cash flows relating to distinct investment components (IFRS 9); and promises to transfer distinct goods or distinct non-insurance services (IFRS 15). Investment components of an insurance (or reinsurance held) contract represent cash flows paid (received) in all circumstances regardless of whether an insurance event has occurred or not. Investment components are distinct if they are not interrelated with insurance component cash flows and if they could be issued on a standalone basis. The Company applies IFRS 17 to all remaining components of the insurance and reinsurance contracts. There are three measurement models that insurance contracts can be measured under: the variable fee approach (“VFA”), the general measurement model (“GMM”) and the premium allocation approach (“PAA”). For insurance contracts with direct participation features such as participating life insurance contracts, unit linked type contracts, and variable annuity contracts the Company applies the VFA measurement model. For many group benefits contracts that have a one-year (or shorter) term of coverage, the Company generally applies the PAA measurement model. For the remainder of the Company’s insurance contracts the GMM measurement model is applied. Level of aggregation/unit of account Insurance contracts are aggregated into portfolios of insurance contracts which are managed together and are subject to similar risks. The Company has defined portfolios by considering various factors such as legal entities, measurement model, major product line and type of insurance risk. The portfolios of insurance contracts are further grouped into annual cohorts and by expected profitability at inception into one of three categories: onerous contracts, contracts with no significant risk of becoming onerous and other remaining contracts. Onerous contracts are those contracts that at initial inception, the Company expects to generate net outflow, without considering investment returns or the benefit of any reinsurance held. Initial recognition and subsequent measurement The Company includes in the measurement of a group of insurance contracts all future cash flows within the boundary of the contracts in the group. Cash flows are within the boundary of an insurance contract if they arise from substantive rights and obligations that exist during the reporting period and in which the Company can compel the policyholder to pay the premiums or has a substantive obligation to provide services to the policyholder. A substantive obligation to provide services ends when: • The Company has the practical ability to reassess the risks of the particular policyholder and as a result, can set a price or level of benefits that fully reflects those risks, or • The Company has the practical ability to reassess the risks of the portfolio of insurance contracts that contain the contract and, as a result, can set a price or level of benefits that fully reflects the risk of that portfolio, and the pricing of the premiums up to the date when the risks are reassessed does not take into account the risks that relate to periods after the reassessment date. The Company recognizes groups of insurance contracts that it issues from the earliest of the following: • The beginning of the coverage period of the group of contracts, • The date when the first payment from a policyholder in the group is due or when the first payment is received if there is no due date, and • For a group of onerous contracts, as soon as facts and circumstances indicate that the group is onerous. Insurance contracts measured under the VFA and the GMM measurement model At initial recognition, the Company measures a group of insurance contracts as the total of: (a) fulfilment cash flows, which comprise of estimates of future cash flows, adjusted to reflect the time value of money and financial risks, and a risk adjustment for non-financial risk; and (b) a contractual service margin (“CSM”), which represents the unearned profit the Company will recognize as it provides service under the insurance contracts. For reinsurance contracts, the CSM represents the reinsurance gain or cost at initial recognition. In determining the fulfilment cash flows, the Company uses estimates and assumptions considering a range of scenarios which have commercial substance and give a good representation of possible outcomes. The Company’s CSM is a component of the insurance asset or liability for the group of insurance contracts and results in no income at initial recognition. The unit of account for CSM is on a group of contracts basis consistent with the level of aggregation specified above. If the fulfilment cash flows are allocated to the group of insurance contracts, any previously recognized insurance acquisition cash flows and any cash flows arising from the contracts at the date of initial recognition in total are a net outflow, then the group of contracts is considered to be onerous. A loss from onerous insurance contracts is recognized in profit and loss immediately. The Company establishes the groups at initial recognition and may add contracts to the groups after the end of a reporting period, however, the Company does not reassess the composition of the groups subsequently. In the subsequent periods, the carrying amount of a group of insurance contracts at each reporting date is the sum of the liability for remaining coverage (“LRC”) and the liability for incurred claims (“LIC”). The LRC comprises the fulfilment cash flows that relate to services to be provided in the future and any remaining CSM at that date. The LIC comprises the fulfilment cash flows for incurred claims and expenses that have not yet been paid. The fulfilment cash flows at the reporting dates are measured using the current estimates of expected cash flows and current discount rates. The carrying amount of CSM at end of the reporting period is adjusted to reflect the following changes under the GMM for contracts without direct participation features: (a) effect of new contracts added to the group; (b) interest accreted on the carrying amount of CSM, measured at locked-in rate; (c) effect of any currency exchange differences on the CSM; (d) changes in |
Comparatives
Comparatives | 12 Months Ended |
Dec. 31, 2022 | |
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Comparatives | Note 26 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, 2022 | |
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IFRS 7 Disclosures | Market Risk Market risk is the risk of loss resulting from market price volatility, interest rate change, credit and swap spread changes, and adverse foreign exchange rate movements. Market price volatility primarily relates to changes in prices of publicly traded equities and alternative long-duration assets. The profitability of our insurance and annuity products, as well as the fees we earn in our investment management business, are subject to market risk. IFRS 7 Disclosures Text and tables in this and the following section (“Market Risk Sensitivities and Market Risk Exposure Measures”) include disclosures on market and liquidity risk in accordance with IFRS 7, “Financial Instruments – Disclosures”, and discussions on how we measure risk and our objectives, policies and methodologies for managing them. Disclosures in accordance with IFRS 7 are identified by a vertical line in the left margin of each page. The identified text and tables represent an integral part of our audited annual Consolidated Financial Statements for the years ended December 31, 2022 and December 31, 2021. 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 and Risk Factors” disclosure should be read in its entirety. Market Risk Management Strategy Market risk management strategy 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 limits associated with earnings and capital volatility. 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 Public Interest Rate ALDA Foreign Liquidity Risk Prod design and pricing ✓ ✓ ✓ ✓ ✓ Variable annuity guarantee dynamic hedging ✓ ✓ ✓ ✓ Macro equity risk hedg ✓ ✓ ✓ A sset liability managem ✓ ✓ ✓ ✓ ✓ Foreign exchan manage ✓ ✓ Liquidity risk manag ✓ Public Equity Risk Interest Rate and Spread Risk ALDA Risk Foreign Exchange Risk Liquidity Risk day-to-day Our liquidity risk management framework is 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. Refer to “Liquidity Risk Management Strategy” below for more information. Product Design and Pricing Strategy Our policies, standards, and guidelines 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, ensuring 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 pre-established in-force Hedging Strategies for Variable Annuity and Other Equity Risks The Company’s exposure to movement in public equity market values primarily arises from insurance liabilities related to variable annuity guarantees and general fund public equity investments. 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 unhedged exposures in our insurance liabilities through our macro equity risk hedging strategy. We seek to manage interest rate risk arising from variable annuity business not dynamically hedged through 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 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 variable annuity hedging program uses a variety of exchange-traded and over-the-counter 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 may widen and actions might not be 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 guaranteed, adjustable liabilities and variable universal life; • Unhedged provisions for adverse deviation related to variable annuity guarantees dynamically hedged. 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 within risk limits. The embedded market risks include risks related to the level and movement of interest rates and credit and swap spreads, public equity market performance, ALDA performance and foreign exchange rate movements. General fund product liabilities are categorized into groups with similar characteristics in order to support them with a specific asset strategy. We seek to align the asset strategy for each group to the premium and benefit patterns, policyholder options and guarantees, and crediting rate strategies of the products they support. 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 group include: • Accumulation annuities (other than annuities with pass-through features), which are primarily short-to-medium-term • 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 and the impact of regulatory and economic capital requirements. Fixed income assets are managed to a benchmark developed to minimize interest rate risk against the liability cash flows. Utilizing ALDA and public equity investments provides a suitable match for long-duration liabilities that also enhances long-term investment returns and reduces aggregate risk through diversification. For insurance and annuity products where significant pass-through features exist, a total return strategy approach is used, generally combining fixed income with ALDA plus public equity investments. ALDA and public equity 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 considering management tolerances with respect to short-term income volatility and long-term tail risk exposure. For these pass-through products such as participating insurance and universal life insurance, the investment performance of assets supporting the liabilities will be largely passed through to policyholders as changes in the amounts of dividends declared or rates of interest credited, subject to embedded minimum guarantees. Shorter duration liabilities such as fixed deferred annuities do not incorporate ALDA plus public equity investments into their target asset mixes. Authority to manage our investment portfolios is delegated to investment professionals who manage to benchmarks derived from the target investment strategies established for each group, including interest rate risk tolerances. 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. Foreign Exchange Risk Management Strategy Our policy is to generally match the currency of our assets with the currency of the liabilities they support. Where assets and liabilities are not currency matched, we seek to hedge this exposure where appropriate to stabilize our capital positions and remain within our enterprise foreign exchange risk limits. Risk from small balance sheet mismatches is accepted if managed within set risk limits. Risk exposures 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. 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, 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. As at December 31, 2022, the Company held $241.0 billion in cash and cash equivalents, comprised of cash on deposit, Canadian and U.S. Treasury Bills and high quality short-term investments, and marketable assets comprised of investment grade government and agency bonds, investment grade corporate bonds, investment grade securitized instruments, publicly traded common stocks and preferred shares, compared with $268.4 billion as at December 31, 2021 as noted in the table below. As at December 31, ($ millions, unless otherwise stated) 2022 2021 Cash and cash equivalents $ 19,153 $ 22,594 Marketable assets Government bonds (investment grade) 70,508 77,743 Corporate bonds (investment grade) 126,827 138,479 Securitized — ABS, CMBS, RMBS (investment grade) 2,285 2,892 Public equities 22,223 26,706 Total marketable assets 221,843 245,820 Total cash and cash equivalents and marketable assets ( 1 ) $ 240,996 $ 268,414 (1) Including $13. 3 We have established a variety of contingent liquidity sources. These include, among others, 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 U.S. subsidiaries. There were no outstanding borrowings under these facilities as of December 31, 2022 (2021 – nil). In addition, John Hancock Life Insurance Company (U.S.A.) (“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 collateralizable by qualifying mortgage loans, mortgage-backed securities and U.S. Treasury and Agency securities. As of December 31, 2022, JHUSA had an estimated maximum borrowing capacity of US$3.8 billion (2021 – US$4.4 billion) based on regulatory limitations with an outstanding balance of US$500 million (2021 – US$500 million), under the FHLBI facility. The following table outlines the maturity of the Company’s significant financial liabilities. Maturity of financial liabilities (1) As at December 31, 2022 ($ millions) Less than 1 to 3 3 to 5 Over 5 Total Long-term debt $ – $ – $ 2,661 $ 3,573 $ 6,234 Capital instruments – 615 – 5,507 6,122 Derivatives 2,656 1,956 1,146 8,531 14,289 Deposits from Bank (2) 16,884 3,000 2,623 – 22,507 Lease liabilities 112 154 93 61 420 (1) (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 $477.7 billion as at December 31, 2022 (2021 – $502.4 billion). 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 guarantee values. Depending on future equity market levels, liabilities on current in-force 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, 2022 2021 Guarantee (1) Fund value Net (1),(2),(3) Guarantee (1) Fund value Net (1),(2),(3) Guaranteed minimum income benefit $ 4,357 $ 2,723 $ 1,639 $ 4,419 $ 3,603 $ 918 Guaranteed minimum withdrawal benefit 38,319 34,203 5,734 39,098 41,809 2,233 Guaranteed minimum accumulation benefit 20,035 19,945 221 19,820 20,226 12 Gross living benefits (4) 62,711 56,871 7,594 63,337 65,638 3,163 Gross death benefits (5) 10,465 15,779 2,156 11,105 22,920 618 Total gross of reinsurance 73,176 72,650 9,750 74,442 88,558 3,781 Living benefits reinsured 26,999 23,691 4,860 3,788 3,102 771 Death benefits reinsured 3,923 2,636 1,061 639 547 253 Total reinsured 30,922 26,327 5,921 4,427 3,649 1,024 Total, net of reinsurance (6) $ 42,254 $ 46,323 $ 3,829 $ 70,015 $ 84,909 $ 2,757 (1) (2) (in-the-money (3) run-off (4) (5) (6) 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 2022 2021 Equity funds $ 42,506 $ 52,528 Balanced funds 36,290 43,783 Bond funds 9,336 10,965 Money market funds 1,924 1,844 Other fixed interest rate investments 2,029 1,917 Total $ 92,085 $ 111,037 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 or on MLI’s LICAT ratio will be as indicated. Market movements affect LICAT capital sensitivities both through income and other components of the regulatory capital framework. For example, LICAT is affected by changes to other comprehensive income. Publicly Traded Equity Performance Risk Sensitivities and Exposure Measures As outlined above, we have net exposure to equity risk through asset and liability mismatches; 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 macro hedging strategy is designed to mitigate public equity risk arising from variable annuity guarantees not dynamically hedged and from other unhedged exposures in our insurance liabilities. Changes in public equity prices may impact other items including, but not limited to, asset-based fees earned on assets under management and administration or policyholder account value, and estimated profits and amortization of deferred policy acquisition and other costs. These items are not hedged. 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 dynamic and macro hedging programs 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) As at December 31, 2022 ($ millions) -30% -20% -10% +10% +20% +30% Underlying sensitivity to net income attributed to shareholders (4) Variable annuity guarantees $ (1,100 ) $ (660 ) $ (300 ) $ 240 $ 450 $ 610 General fund equity investments (5) (1,520 ) (1,010 ) (500 ) 420 820 1,220 Total underlying sensitivity before hedging (2,620 ) (1,670 ) (800 ) 660 1,270 1,830 Impact of macro and dynamic hedge assets (6) 850 530 240 (230 ) (420 ) (570 ) Net potential impact on net income attributed to shareholders after impact of hedging (7) $ (1,770 ) $ (1,140 ) $ (560 ) $ 430 $ 850 $ 1,260 As at December 31, 2021 ($ millions) -30% -20% -10% +10% +20% +30% Underlying sensitivity to net income attributed to shareholders (4) Variable annuity guarantees $ (2,560 ) $ (1,480 ) $ (630 ) $ 440 $ 750 $ 960 General fund equity investments (5) (1,430 ) (890 ) (440 ) 450 880 1,320 Total underlying sensitivity before hedging (3,990 ) (2,370 ) (1,070 ) 890 1,630 2,280 Impact of macro and dynamic hedge assets (6) 2,060 1,190 500 (470 ) (820 ) (1,110 ) Net potential impact on net income attributed to shareholders after impact of hedging (7) $ (1,930 ) $ (1,180 ) $ (570 ) $ 420 $ 810 $ 1,170 (1) R elated (2) (3) (4) (5) (6) (7) primarily driven by net from to 4Q22 The following table shows the potential impact to MLI’s LICAT ratio resulting from changes in public equity market values. Potential immediate impact on MLI’s LICAT ratio arising from public equity returns different than the expected returns assumed in the valuation of policy liabilities (1),(2),(3) Impact on MLI’s LICAT ratio Percentage points -30% -20% -10% +10% +20% +30% December 31, 2022 (1 ) (1 ) – – 1 1 December 31, 2021 (1 ) – – – 1 – (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 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. (3) 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, 2022, we estimated the sensitivity of our net income attributed to shareholders to a 50 50 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 (currently zero floor applies to all countries we operate in except Japan), 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 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 ASB. 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 The interest rate and spread risk sensitivities are determined in isolation of each other and therefore do not reflect the combined impact of changes in government rates and credit spreads between government, swap and corporate rates occurring simultaneously. As a result, the impact of the summation of each individual sensitivity may be materially different from the impact of sensitivities to simultaneous changes in interest rate and spread risk. 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. In 2021, the ASB issued a new promulgation with reductions to the URR and updates to the calibration criteria for stochastic risk-free rates. The updated standard included a reduction of 15 basis points in the URR and a corresponding change to stochastic risk-free rate modeling and was effective October 15, 2021. At December 31, 2022, we estimated the sensitivity of our net income attributed to shareholders to a 10 basis point reduction in the URR in all geographies, and a corresponding change to stochastic risk-free modeling, to be a charge of $300 million (post-tax); The potential impact on net income attributable to shareholders does not take into account 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 on net income attributed to shareholders also does not reflect any unrealized gains or losses on AFS fixed income assets held in our Corporate and Other 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 realize any of the unrealized gains or losses available. 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 (see “Critical Actuarial and Accounting 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. Under LICAT, changes in unrealized gains or losses in our AFS bond portfolio resulting from interest rate shocks tend to dominate capital sensitivities. As a result, the reduction in interest rates improves LICAT ratios and vice-versa. The following table shows the potential impact on net income attributed to shareholders as well as the change in the market value of AFS fixed income assets held in our Corporate and Other segment, which could be realized through the sale of these assets. Potential impact on net income attributed to shareholders and MLI’s LICAT ratio of an immediate parallel change in interest rates relative to rates assumed in the valuation of policy liabilities (1),(2),(3),(4) 2022 2021 As at December 31, -50bp +50bp -50bp +50bp Net income attributed to shareholders ($ millions) $ (100) $ 100 $ (200 ) $ nil Changes in other comprehensive income from fair value changes in AFS fixed income assets held in the Corporate 1,500 (1,400 ) 2,100 (1,900 ) MLI’s LICAT ratio (change in percentage points) (5) 3 (2 ) 5 (4 ) (1) (2) (3) (4) (5) The following tables show the potential impact on net income attributed to |
Nature of Operations and Sign_2
Nature of Operations and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Text block [abstract] | |
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 Asia and Canada 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 and Risk Factors” in the 2022 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, 2022 were authorized for issue by MFC’s Board of Directors on February 15, 2023. |
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 evaluating assumptions used in measuring insurance and investment contract liabilities, assessing assets for impairment, determining pension and other post-employment benefit obligation and expense assumptions, determining income taxes and uncertain tax positions, and estimating fair values 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. The Company’s results and operations have been and may continue to be adversely impacted by COVID-19 The Company has applied appropriate measurement techniques using reasonable judgment and estimates from the perspective of a market participant to reflect current economic conditions. The impact of these techniques has been reflected in these Consolidated Financial Statements. Changes in the inputs used could materially impact the respective carrying values. |
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; fair value 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 valuation 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 measurement results according to a three-level hierarchy. The hierarchy prioritizes the inputs used by the Company’s valuation techniques based on their reliability. 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 can 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, credit default swaps and foreign currency forward contracts. Level 3 – Fair value measurements using significant non-market |
Basis of consolidation | (d) Basis of consolidation MFC consolidates the financial statements of all entities it controls, including certain structured entities. 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 and 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 the Company’s share of variable returns of the entity. In assessing control, significant judgment is applied while considering all relevant facts and circumstances. When assessing decision making power over an entity, the Company considers the extent of its rights relative to the management of the entity, the level of voting rights held over the entity which are potentially or presently exercisable, the existence of any contractual management agreements which may provide the Company with power over the entity’s financial and operating policies, and to the extent of other parties’ ownership in the entity, if any, the possibility for de facto control being present. When assessing variable returns from an entity, the Company considers the significance of direct and indirect financial and non-financial The financial statements of subsidiaries are included in 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 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. A change in control may lead to gains or losses on derecognition of a subsidiary when losing control, or on derecognition of previous interests in a subsidiary when gaining control. The Company’s Consolidated Financial Statements have been prepared using uniform accounting policies for like transactions and events in similar circumstances. Intercompany balances, and revenue and expenses arising from intercompany transactions, have been eliminated in preparing the Consolidated Financial Statements. Non-controlling Non-controlling The equity method of accounting is used to account for entities over which the Company has significant influence or joint control (“associates” or “joint ventures”), whereby the Company records its share of the associate’s or joint venture’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 rights and other relationships with the entity, if any, provide the Company with significant influence or joint control over the entity. Gains and losses on the sale of associates or joint ventures 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 or joint ventures are eliminated to the extent of the Company’s interest in the equity of the associate or joint venture. Investments in associates and joint ventures 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 fair value valuations within the three levels of the fair value hierarchy for invested assets carried at fair value or 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 of cash, current operating accounts, overnight bank and term deposits, and debt securities held for meeting short-term cash commitments. Short-term securities are comprised of investments due to mature within one year of the date of purchase. Short-term securities are carried at fair value. Commercial paper and discount notes are classified as Level 2 for fair value disclosure purposes 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 or amortized cost. 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, prepayment rates and volatility of these inputs. These debt securities are classified as Level 2 for fair value disclosure purposes but can be Level 3 if 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, except for 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. Debt securities which are classified as held-to-maturity Public equities are comprised of common and preferred equities and mutual fund shares and are carried at fair value. Public equities are generally classified as Level 1 for fair value disclosure purposes, 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 a significant amount or for a prolonged period. Significant 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 disclosure 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 with reference to the fair value of collateral security underlying the mortgage, net of expected costs of realization and including 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 liabilities within 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 or 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 amortized cost 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 because 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 subsequent increases in fair value can be attributed to events after 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 7(d). Interest income is recognized on debt securities, mortgages, private placements, policy loans, loans to Bank clients and certain other invested assets 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. The Company records purchases and sales of invested assets on a trade date basis. Loans originated by the Company are recognized on a settlement date basis. Real estate consists of both own use property and investment property. Own use property, held for use for the Company’s operations, 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. Fair value of own use property is determined using the same processes as for investment property, described below. 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 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 or loss 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 infrastructure and timber, as well as in agriculture and oil and gas sectors. Private equity investments are accounted for as associates or joint ventures 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, except for 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 primarily 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 fair value of 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 group of CGUs for impairment testing at the lowest level within the entity where the goodwill is monitored for internal management purposes. The allocation is made to those CGUs or group 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 with the carrying value of a CGU or group of CGUs. 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 remaining deficiency on a pro-rata The recoverable amount of a CGU or group of CGUs 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, certain investment management contracts and certain agricultural water rights. The indefinite useful life assessment for the John Hancock brand name is based on the brand name being protected by indefinitely renewable trademarks in markets where branded products are sold, and for certain investment management contracts based on 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. Certain agricultural water rights are held in perpetuity. 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 an indication that it is not recoverable arises. Intangible assets with finite useful lives include acquired distribution networks, customer relationships, capitalized software, and 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 three |
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, deferred acquisition costs and capital assets. Rabbi trust assets are carried at fair value. Defined benefit assets carrying value is explained in note 1(o). Deferred acquisition costs are carried at cost less accumulated amortization and are amortized over the period 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 |
Segregated funds | (h) Segregated funds The Company manages segregated funds on behalf of policyholders, which are presented as segregated fund net assets with offsetting segregated funds net liabilities to policyholders in the amount of their account balances. Amounts invested by the Company in segregated funds for seed purposes are presented within invested asset categories based on the nature of the underlying investments. 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 include investments in mutual funds, debt securities, equities, cash, short-term investments and other investments. 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 from the investments. 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 and administering the segregated funds is included in other revenue. 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 in the general fund, which are included 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 FVTPL by election. The election reduces accounting mismatches between FVTPL assets supporting these contracts and the related contract liabilities. Investment contract liabilities are derecognized when the contract expires, is discharged or is cancelled. Derivatives embedded within insurance contracts are separately accounted for as derivatives 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 FVTPL. |
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 7(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 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 for 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 assets and liabilities 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, associates and joint ventures, 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 liabilities for uncertain tax positions if it is probable that the Company will make a payment on tax positions due to 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 current 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 balances 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, joint ventures and associates are measured by each entity using the currency of the primary economic environment in which the entity operates (the “functional currency”). If their functional currency is other than Canadian dollar, these entities are foreign operations of the Company. 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 except for translation of net investments in foreign operations and the results of hedging these positions, and for non-monetary non-monetary The Consolidated Financial Statements are presented in Canadian dollars. The financial statements of the Company’s foreign operations are translated from their functional currencies to Canadian dollars; assets and liabilities are translated at the exchange rate at the reporting date, and revenue and expenses are translated using the average exchange rates for the period. Foreign exchange gains and losses on these translations are recognized in OCI, subject to reclassification to income upon disposal of a foreign operation. |
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 granted 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 forfeiture 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 liabilities. Stock-based compensation cost is recognized over the applicable vesting period, unless the employee is eligible to retire at the time of grant or will be eligible to retire during the vesting period. Compensation costs 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, are 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 on behalf of participating employees. |
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 benefit 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 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 which are separate financial instruments are recorded at fair value, and those with unrealized gains reported as derivative assets and those with unrealized losses 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. 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 recorded 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 that the variability in the hedged cash flows or the hedged forecasted transactions are recognized in income. The reclassifications from AOCI are made to investment income, except for total return swaps that hedge stock-based compensation awards, 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 is expected 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, 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 upon disposal of the foreign operation. |
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 7). |
Revenue from service contracts | (r) Revenue from service contracts The Company recognizes revenue from service contracts in accordance with IFRS 15. The Company’s service contracts generally impose single performance obligations, each consisting of a series of similar related services for each customer. Revenue is recorded as performance obligations are satisfied over time because the customers simultaneously receive and consume the benefits of the services rendered, measured using an output method. Revenue for variable consideration is recognized to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty is subsequently resolved. Refer to note 14. |
Changes in accounting and reporting policy | (a) Changes in accounting and reporting policy (i) Annual Improvements 2018 – 2020 Cycle Annual Improvements 2018–2020 Cycle was issued in May 2020 and is effective on or after January 1, 2022. The IASB issued four minor amendments to different standards as part of the Annual Improvements process, to be applied prospectively. Adoption of these amendments did not have a significant impact on the Company’s Consolidated Financial Statements. (ii) Amendments to IFRS 3 “Business Combinations” Amendments to IFRS 3 “Business Combinations” were issued in May 2020, and are effective on or after January 1, 2022, with earlier application permitted. The amendments update references within IFRS 3 to the 2018 Conceptual Framework and require that the principles in IAS 37 “Provisions, Contingent Liabilities and Contingent Assets” be used to identify liabilities and contingent assets arising from a business combination. Adoption of these amendments did not have a significant impact on the Company’s Consolidated Financial Statements. (iii) Amendments to IAS 37 “Provisions, Contingent Liabilities and Contingent Assets” Amendments to IAS 37 “Provisions, Contingent Liabilities and Contingent Assets” were issued in May 2020, and are effective on or after January 1, 2022, with earlier application permitted. The amendments address identifying onerous contracts and specify the cost of fulfilling a contract which includes all costs directly related to the contract. These include incremental direct costs and allocations of other costs that relate directly to fulfilling the contract. 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 17 “Insurance Contracts” IFRS 17 “Insurance Contracts” was issued in May 2017 to be effective for years beginning on January 1, 2021. Amendments to IFRS 17 “Insurance Contracts” were issued in June 2020 and include a two-year Narrow-scope amendments to IFRS 17 “Insurance Contracts” were issued in December 2021 and were effective on initial application of IFRS 17 and IFRS 9 “Financial Instruments” which the Company has adopted on January 1, 2023. The amendments reduce accounting mismatches between insurance contract liabilities and financial assets in scope of IFRS 9 within comparative prior periods when initially applying IFRS 17 and IFRS 9. The amendments allow insurers to present comparative information on financial assets as if IFRS 9 were fully applicable during the comparative period. The amendments do not permit application of IFRS 9 hedge accounting principles to the comparative period. The principles underlying IFRS 17 differ from CALM as permitted by IFRS 4. While there are many differences, the following outlines some of the key measurement differences: • Under IFRS 17 new business gains are recorded on the Consolidated Statements of Financial Position (in the Contractual Service Margin (“CSM”) component of the insurance contract liability) and amortized into income as services are provided. New business losses are recorded into income immediately. Under CALM, both new business gains and new business losses were recognized in income immediately. • Under IFRS 17 the Company aggregates insurance contracts that are subject to similar risks and managed together into portfolios. Since new business gains and losses have different accounting treatments, insurance contracts are further aggregated into groups by profitability and issuance period to limit offsetting of new business gains and losses. Such aggregation of contracts into groups is required on initial recognition and not reassessed subsequently. Under CALM, new business gains and new business losses offset each other in income. • Under IFRS 17 the discount rate used to estimate the present value of insurance contract liabilities is based on the characteristics of the liabilities. Under CALM, the rates of returns for current and projected assets supporting insurance contract liabilities were used to value the liabilities. The difference in the discount rate approach also impacts the timing of investment results. Under IFRS 17, the impact of investing activities will emerge into earnings over the life of the assets. Under CALM, the impact of investing activities was capitalized into reserves and therefore earnings in the period they occurred. • Under IFRS 17 the insurance contract liability discount rate is not related to the expected return on Alternative Long-Duration Assets (“ALDA”) and public equity assets, and as a result, the earnings sensitivity of a change in return assumptions for ALDA and public equity assets will be significantly reduced. • Under IFRS 17 the Company has elected the option to record changes in insurance contract liabilities arising from changes in interest rates through other comprehensive income, for substantially all insurance products, and classify debt instruments supporting these insurance contract liabilities as fair value through other comprehensive income (“FVOCI”) under IFRS 9. Under CALM, changes in insurance contract liabilities were recorded in income and supporting debt instruments were classified as FVTPL. • Under IFRS 17 the Company separates specific embedded derivatives and distinct investment components from insurance contracts and accounts for them under IFRS 9. Under IFRS 4 the treatment of embedded derivatives is consistent with IFRS 17, however under IFRS 4 the Company did not separate deposit components as this was not required by the standard. • Under IFRS 17 insurance contracts with different features are measured by one of the three measurement models: General Measurement Model (“GMM”), Premium Allocation Approach (“PAA”) and Variable Fee Approach (“VFA”). Under IFRS 4, insurance contracts were generally valued by one measurement model, although an unearned premium reserve method similar to PAA was allowed and used by Manulife for certain short duration / annually renewable business. In addition, there are significant changes to presentation and disclosure of the financial statements. The following outlines some of the key presentation and disclosure changes: • Consolidated Statements of Financial Position: Under IFRS 17 the Company presents portfolios of insurance and reinsurance contracts issued separately from portfolios of reinsurance contracts held, and portfolios in asset position are further presented separately from portfolios in liability position. Under CALM, contracts were not split and presented by asset and liability position. • Consolidated Statements of Comprehensive Income: Under IFRS 17 the Company separately presents insurance revenue, insurance service expense, insurance finance income or expenses, and income or expenses from reinsurance contracts held. Under CALM the Company reported premium income, gross claims and benefits, changes in insurance contract liabilities, benefits and expenses ceded to reinsurers, and changes in reinsurance assets. IFRS 17 Transition The Company is required to prepare an opening balance sheet as at January 1, 2022, the date of transition to IFRS 17, which forms the starting point for its financial reporting in accordance with IFRS 17. Any differences between the carrying value and the presentation of assets, liabilities and equity determined in accordance with CALM and IFRS 17, as at January 1, 2022 , On the transition date, January 1, 2022, the Company; • Identified, recognized, and measured each group of contracts as if IFRS 17 had always applied, unless it was impracticable (see Full Retrospective Approach and Fair Value Approach below); • Identified, recognized, and measured assets for insurance acquisition cash flows as if IFRS 17 had always applied, unless it was impracticable. However, no recoverability assessment was performed before the transition date; • Derecognized any balances that would not exist had IFRS 17 always applied; • Measured own use real estate properties that were underlying items of insurance contracts with direct participation features at fair value; and • Recognized any resulting net difference in equity. Full Retrospective Approach The Company has adopted IFRS 17 retrospectively unless the full retrospective approach was deemed impracticable. The Company has applied the full retrospective approach to most contracts issued on or after January 1, 2021, except for participating insurance contracts and variable annuity contracts for which the fair value approach was used. Fair Value Approach The Company has applied the fair value approach to all insurance contracts issued prior to January 1, 2021, as obtaining reasonable and supportable information to apply the full retrospective approach was deemed impracticable. IFRS 17 allows the use of the fair value approach for groups of insurance contracts with direct participation features if the risk mitigation option is applied prospectively from the transition date and the Company used derivatives, reinsurance contracts held or non-derivative Under the fair value approach, the Company has determined the CSM of the GMM and VFA liabilities for remaining coverage at the transition date as the difference between the fair value of the groups of insurance contracts and the fulfilment cash flows measured at that date. In determining the fair value, the Company has applied the requirements of IFRS 13 “Fair Value Measurement”, except for the demand deposit floor requirement. The Company used the income approach to determine the fair value of the insurance contracts at the transition date, in which future cash flows are discounted to a single amount that reflects current market expectations about those future amounts. To determine groups of insurance contracts under the fair value approach the Company has aggregated contracts issued more than one year apart as it did not have reasonable and supportable information to divide groups into those including only contracts issued within one year or less. For the application of the fair value approach, the Company has used reasonable and supportable information available at the transition date in order to: • Identify groups of insurance contracts; • Determine whether an insurance contract meets the definition of an insurance contract with direct participation features; • Identify discretionary cash flows for insurance contracts without direct participation features; and • Determine whether an investment contract meets the definition of an investment contract with discretionary participation features. For insurance contracts where the fair value approach was applied, the discount rate used to determine the fair value of the group of insurance contracts was determined at the transition date. For cash flows of insurance contracts that do not vary based on the returns on underlying items, the Company determines discount rates by adjusting a liquid risk-free yield curve to reflect the differences between the liquidity characteristics of the financial instruments that underlie the rates observed in the market and the liquidity characteristics of the insurance contracts (a bottom-up approach). Other Comprehensive Income at Transition Under IFRS 17 changes in the carrying amount of insurance contracts arising from the effect of and changes in the time value of money and in financial risk are presented as insurance finance income or expense (except for some changes for insurance contracts with direct participation features under certain circumstances). Under IFRS 17 the Company has the option to present all insurance finance income or expense in profit or loss or disaggregated between profit or loss and OCI (the “OCI option”). The Company has elected the OCI option and determined the cumulative OCI balance at transition as follows: • For some GMM and PAA groups of contracts where the fair value approach was applied, the cumulative OCI was set retrospectively only if reasonable and supportable information was available, otherwise it was set to zero at the transition date. • For GMM groups of contracts where the full retrospective approach was applied, the cumulative balance was calculated as if the Company had been applying the OCI option since inception of the contracts. • For VFA contracts, the cumulative OCI at transition was set equal to the difference between the market value and carrying value of the underlying items. Reclassification of Financial Assets for the Comparative Period of IFRS 17 Adoption Under the amendments to IFRS 17 with regard to the “Initial Application of IFRS 17 and IFRS 9 – Comparative Information” (“IFRS 17 amendments”), the Company has elected the option to reclassify financial assets, including those held in respect of activities not connected to contracts within the scope of IFRS 17, on an instrument-by-instrument The following table presents invested assets by type and measurement category as at December 31, 2021, with transitional measurement differences and presentation differences and then invested assets by type and category as at January 1, 2022. December 31, 2021 Impact of IFRS 17 January 1, 2022 IAS 39 Measurement Total carrying Measurement Presentation Total carrying Measurement Cash and short-term securities AFS $ 14,339 $ – $ 2,214 $ 16,553 FVOCI (1) FVTPL 2,214 – (2,214 ) – FVTPL (2) Amortized cost 6,041 – – 6,041 Amortized cost ( 22,594 – – 22,594 Debt securities AFS 33,097 – 184,365 217,462 FVOCI ( 1 FVTPL 189,722 – (184,365 ) 5,357 FVTPL (2) Amortized cost 1,320 – – 1,320 Amortized cost (3) 224,139 – – 224,139 Public equities AFS 2,351 – (2,351 ) – FVTPL 25,716 – 2,351 28,067 FVTPL ( 2 28,067 – – 28,067 Mortgages AFS – 1,897 29,901 31,798 FVOCI ( 1 FVTPL – 37 1,166 1,203 FVTPL (2) Amortized cost 52,014 – (31,067 ) 20,947 Amortized cost ( 52,014 1,934 – 53,948 Private placements AFS – 4,407 42,175 46,582 FVOCI ( 1 FVTPL – 40 667 707 FVTPL (2) Amortized cost 42,842 – (42,842 ) – Amortized cost ( 42,842 4,447 – 47,289 Policy loans Amortized cost 6,397 – (6,397 ) – N/A (4) Loans to Bank clients Amortized cost 2,506 – – 2,506 Amortized cost ( Other invested asset s AFS 89 (4 ) 238 323 FVOCI (1) FVTPL 21,157 (10 ) 617 21,764 FVTPL (2) Amortized cost 855 – (855 ) – Amortized cost 22,101 (14 ) – 22,087 Total in-scope 400,660 6,367 (6,397 ) 400,630 Out-of-scope (5) Other 26,438 1,035 – 27,473 Other (5) Total Invested Assets $ 427,098 $ 7,402 $ (6,397 ) $ 428,103 (1) The reclassification of unrealized gains (losses), net of tax, of $11,868 from retained earnings to accumulated other comprehensive income (AOCI) related to FVOCI classification of debt investments classified as FVTPL under IAS 39. (2) The reclassification of unrealized gains (losses), net of tax, of $268 from AOCI to retained earnings related to FVTPL classification of debt securities classified as FVOCI under IAS 39. (3) The remeasurement of debt securities from amortized cost to FVOCI or FVTPL resulted in an increase in carrying value of $6,367. The impact on AOCI and retained earnings, net of (4) Policy loans were reclassified from invested assets to insurance contract liabilities under IFRS 17 with no remeasurement and no impact to equity. (5) Own use real estate properties which are underlying items for insurance contracts with direct participating features were remeasured to fair value as if they were investment properties, as permitted by IFRS 17. This remeasurement resulted in an increase of carrying value of $1,035. The impact to retained earnings, net of tax, was $915. The Company has elected to apply the impairment requirements of IAS 39 (incurred losses) for the comparative period as provided for under IFRS 17. Accordingly, for assets that were classified as FVTPL under IAS 39, where no impairment was required, but were reclassified to FVOCI or amortized cost under IFRS 9 for the comparative period, the Company did not measure any impairment for the comparative period since IAS 39 impairment was not calculated. (1) Opening balance sheet under IFRS 17 “Insurance Contracts” including classification and measurement changes of financial assets Effects from applying IFRS 17 resulted in a reduction of total equity of IFRS 4 & IAS 39 OPENING IFRS BALANCE SHEET IFRS 17 & IAS 39 January 1, Measurement Differences Transition Contract Measurement Presentation Assets Total invested assets $ 427,098 $ – $ 7,402 $ (6,397 ) $ 428,103 Total other assets 90,757 2,877 5,617 1,078 100,329 Segregated funds net assets 399,788 – – – 399,788 Total assets $ 917,643 $ 2,877 $ 13,019 $ (5,319 ) $ 928,220 Liabilities and Equity Insurance contract liabilities $ 392,275 $ 21,466 (1) $ 10,014 $ (18,134 ) $ 405,621 Segregated funds insurance net liabilities – – – 130,836 130,836 Total insurance contract liabilities 392,275 21,466 10,014 112,702 536,457 Total investment contract liabilities 3,116 – – 275,900 279,016 Other liabilities 63,595 (2,823 ) (784 ) 5,867 65,855 Segregated funds net liabilities 399,788 – – (399,788 ) – Total liabilities 858,774 18,643 9,230 (5,319 ) 881,328 Equity Shareholders’ r 23,492 (13,607 ) (229 ) – 9,656 Shareholders’ accumulated other comprehensive income (loss) Net insurance finance expenses – – (17,117 ) – (17,117 ) Net reinsurance finance income – – 984 – 984 FVOCI investments 848 – 16,916 – 17,764 Other equity items 34,068 – – 34,068 Total shareholders’ equity 58,408 (13,607 ) 554 – 45,355 Participating policyholders’ equity (1,233 ) (1,440 ) (1) 2,774 – 101 Non-controlling 1,694 (719 ) (1) 461 – 1,436 Total equity 58,869 (15,766 ) 3,789 – 46,892 Total liabilities and equity $ 917,643 $ 2,877 $ 13,019 $ (5,319 ) $ 928,220 (1) The post-tax CSM in the participating policyholders’ fund of $1.4 billion is expected to be recognized in shareholder net income over time. In addition, $0.7 billion of post-tax CSM is attributable to non-controlling interests. The following table shows the nature and amount of the measurement adjustments made to the opening balance sheet: Measurement D Description Transition CSM Contractual Service Margin (CSM) is a new liability that represents future unearned profits on insurance contracts written. For this measurement step, the amount recognized as at the transition date, January 1, 2022 , , Contract Measurement Under IFRS 17 other components of insurance contracts, aside from the CSM, are also remeasured. This measurement step includes the following changes: Risk Adjustment (+2.1 billion to equity) (1) non-economic Discount Rates (-1.5 (1) Other Revaluation Changes (+3.1 billion to equity): Participating and Non-Controlling In previous steps all impacts to equity were shown in shareholders’ equity. This step shows the geography of the impacts between shareholders’ equity, participating policyholders’ equity and non-controlling (1) Excluding impacts on variable annuity guarantee contracts The presentation differences are mainly comprised of the following: • Policy loans invested assets • Contract classification • Insurance receivables & payables • Embedded derivatives • Reinsurance funds withheld • Deferred acquisition cost • Segregated fund net liabilities (ii) 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. In conjunction with the amendments to IFRS 17 “Insurance Contracts” issued in June 2020, the IASB amended IFRS 4 “Insurance Contracts” to permit eligible insurers to apply IFRS 9 effective January 1, 2023, alongside IFRS 17. The standard replaced 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 activity 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. When IFRS 9 is first adopted, entities have the option to apply the hedge accounting requirements under IFRS 9 or to continue to apply the hedge accounting requirements under IAS 39. Such option will apply to all hedge accounting relationships. Revisions issued in July 2014 replaced the existing incurred loss model used for measuring the allowance for credit losses with an expected 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. They also addressed the income statement accounting mismatches and short-term volatility issues which have been identified as a result of the insurance contracts project. The Company has adopted IFRS 9 beginning on January 1, 2023, as permitted under the June 2020 amendments to IFRS 4 “Insurance Contracts”. Consistent with IFRS 17 amendments, the adoption of IFRS 9 resulted in certain differences in the classification and measurement of financial assets when compared to their classification and measurement under IAS 39. The most significant changes included billion of debt securities previously classified as FVTPL which are classified as FVOCI (see note 2(b)(i)). The Company has elected to apply the hedge accounting requirements under IFRS 9 to all hedge accounting relationships prospectively. As at January 1, 2023, all existing IAS 39 hedge accounting relationships were assessed and qualify for hedge accounting under IFRS 9. These existing relationships are treated as continuing hedge accounting relationships under IFRS 9 beginning on January 1, 2023; and will be disclosed with comparative information for 2022 under IAS 39. The Company will also be designating new hedge accounting relationships with the objective to reduce accounting mismatches between existing derivatives’ changes in income and financial risk changes in OCI for IFRS 17 insurance liabilities and IFRS 9 financial assets. New hedge accounting relationships are effective prospectively on January 1, 2023; and will not have comparative disclosure in the financial statements for 2022. |
Accounting and Reporting Chan_2
Accounting and Reporting Changes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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Schedule of Invested Assets Type Measurement Category And Its Transitional Differences Under IFRS 9 | The following table presents invested assets by type and measurement category as at December 31, 2021, with transitional measurement differences and presentation differences and then invested assets by type and category as at January 1, 2022. December 31, 2021 Impact of IFRS 17 January 1, 2022 IAS 39 Measurement Total carrying Measurement Presentation Total carrying Measurement Cash and short-term securities AFS $ 14,339 $ – $ 2,214 $ 16,553 FVOCI (1) FVTPL 2,214 – (2,214 ) – FVTPL (2) Amortized cost 6,041 – – 6,041 Amortized cost ( 22,594 – – 22,594 Debt securities AFS 33,097 – 184,365 217,462 FVOCI ( 1 FVTPL 189,722 – (184,365 ) 5,357 FVTPL (2) Amortized cost 1,320 – – 1,320 Amortized cost (3) 224,139 – – 224,139 Public equities AFS 2,351 – (2,351 ) – FVTPL 25,716 – 2,351 28,067 FVTPL ( 2 28,067 – – 28,067 Mortgages AFS – 1,897 29,901 31,798 FVOCI ( 1 FVTPL – 37 1,166 1,203 FVTPL (2) Amortized cost 52,014 – (31,067 ) 20,947 Amortized cost ( 52,014 1,934 – 53,948 Private placements AFS – 4,407 42,175 46,582 FVOCI ( 1 FVTPL – 40 667 707 FVTPL (2) Amortized cost 42,842 – (42,842 ) – Amortized cost ( 42,842 4,447 – 47,289 Policy loans Amortized cost 6,397 – (6,397 ) – N/A (4) Loans to Bank clients Amortized cost 2,506 – – 2,506 Amortized cost ( Other invested asset s AFS 89 (4 ) 238 323 FVOCI (1) FVTPL 21,157 (10 ) 617 21,764 FVTPL (2) Amortized cost 855 – (855 ) – Amortized cost 22,101 (14 ) – 22,087 Total in-scope 400,660 6,367 (6,397 ) 400,630 Out-of-scope (5) Other 26,438 1,035 – 27,473 Other (5) Total Invested Assets $ 427,098 $ 7,402 $ (6,397 ) $ 428,103 (1) The reclassification of unrealized gains (losses), net of tax, of $11,868 from retained earnings to accumulated other comprehensive income (AOCI) related to FVOCI classification of debt investments classified as FVTPL under IAS 39. (2) The reclassification of unrealized gains (losses), net of tax, of $268 from AOCI to retained earnings related to FVTPL classification of debt securities classified as FVOCI under IAS 39. (3) The remeasurement of debt securities from amortized cost to FVOCI or FVTPL resulted in an increase in carrying value of $6,367. The impact on AOCI and retained earnings, net of (4) Policy loans were reclassified from invested assets to insurance contract liabilities under IFRS 17 with no remeasurement and no impact to equity. (5) Own use real estate properties which are underlying items for insurance contracts with direct participating features were remeasured to fair value as if they were investment properties, as permitted by IFRS 17. This remeasurement resulted in an increase of carrying value of $1,035. The impact to retained earnings, net of tax, was $915. |
Schedule of Balance Sheet And Related Adjustments As of IFRS 17 | The opening IFRS 17 balance sheet and related adjustments as at January 1, 2022 are presented below: IFRS 4 & IAS 39 OPENING IFRS BALANCE SHEET IFRS 17 & IAS 39 January 1, Measurement Differences Transition Contract Measurement Presentation Assets Total invested assets $ 427,098 $ – $ 7,402 $ (6,397 ) $ 428,103 Total other assets 90,757 2,877 5,617 1,078 100,329 Segregated funds net assets 399,788 – – – 399,788 Total assets $ 917,643 $ 2,877 $ 13,019 $ (5,319 ) $ 928,220 Liabilities and Equity Insurance contract liabilities $ 392,275 $ 21,466 (1) $ 10,014 $ (18,134 ) $ 405,621 Segregated funds insurance net liabilities – – – 130,836 130,836 Total insurance contract liabilities 392,275 21,466 10,014 112,702 536,457 Total investment contract liabilities 3,116 – – 275,900 279,016 Other liabilities 63,595 (2,823 ) (784 ) 5,867 65,855 Segregated funds net liabilities 399,788 – – (399,788 ) – Total liabilities 858,774 18,643 9,230 (5,319 ) 881,328 Equity Shareholders’ r 23,492 (13,607 ) (229 ) – 9,656 Shareholders’ accumulated other comprehensive income (loss) Net insurance finance expenses – – (17,117 ) – (17,117 ) Net reinsurance finance income – – 984 – 984 FVOCI investments 848 – 16,916 – 17,764 Other equity items 34,068 – – 34,068 Total shareholders’ equity 58,408 (13,607 ) 554 – 45,355 Participating policyholders’ equity (1,233 ) (1,440 ) (1) 2,774 – 101 Non-controlling 1,694 (719 ) (1) 461 – 1,436 Total equity 58,869 (15,766 ) 3,789 – 46,892 Total liabilities and equity $ 917,643 $ 2,877 $ 13,019 $ (5,319 ) $ 928,220 (1) The post-tax CSM in the participating policyholders’ fund of $1.4 billion is expected to be recognized in shareholder net income over time. In addition, $0.7 billion of post-tax CSM is attributable to non-controlling interests. |
Invested Assets and Investmen_2
Invested Assets and Investment Income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Text block [abstract] | |
Schedule of Carrying Values and Fair Values of Invested Assets | (a) Carrying values and fair values of invested assets As at December 31, 2022 FVTPL (1) AFS (2) Other (3) Total carrying (4) Total fair (5) Cash and short-term securities (6) $ 1,933 $ 10,926 $ 6,294 $ 19,153 $ 19,153 Debt securities (3),(7),(8) Canadian government and agency 14,798 6,468 – 21,266 21,266 U.S. government and agency 9,440 14,384 912 24,736 24,494 Other government and agency 22,986 3,487 – 26,473 26,473 Corporate 120,897 7,745 499 129,141 128,972 Mortgage/asset-backed securities 2,152 136 – 2,288 2,288 Public equities (9) 21,989 1,530 – 23,519 23,519 Mortgages – – 54,638 54,638 51,429 Private placements (8) – – 47,057 47,057 41,968 Policy loans – – 6,894 6,894 6,894 Loans to Bank clients – – 2,781 2,781 2,760 Real estate Own use property (10) – – 1,878 1,878 3,033 Investment property – – 11,394 11,394 11,394 Other invested assets Alternative long-duration assets (11) 26,348 79 12,012 38,439 39,225 Various other (12) 131 – 4,213 4,344 4,344 Total invested assets $ 220,674 $ 44,755 $ 148,572 $ 414,001 $ 407,212 As at December 31, 2021 FVTPL (1) AFS (2) Other (3) Total carrying (4) Total fair (5) Cash and short-term securities (6) $ 2,214 $ 14,339 $ 6,041 $ 22,594 $ 22,594 Debt securities (7),(8) Canadian government and agency 18,706 3,964 – 22,670 22,670 U.S. government and agency 12,607 18,792 852 32,251 32,254 Other government and agency 21,888 2,871 – 24,759 24,759 Corporate 133,763 7,332 468 141,563 141,560 Mortgage/asset-backed securities 2,758 138 – 2,896 2,896 Public equities (9) 25,716 2,351 – 28,067 28,067 Mortgages – – 52,014 52,014 54,089 Private placements (8) – – 42,842 42,842 47,276 Policy loans – – 6,397 6,397 6,397 Loans to Bank clients – – 2,506 2,506 2,503 Real estate Own use property (10) – – 1,812 1,812 3,024 Investment property – – 11,421 11,421 11,421 Other invested assets Alternative long-duration assets (11) 21,022 89 10,093 31,204 31,863 Various other (12) 135 – 3,967 4,102 4,102 Total invested assets $ 238,809 $ 49,876 $ 138,413 $ 427,098 $ 435,475 |
Schedule of Other Invested Assets Include Investments in Associates and Joint Ventures Accounted Using Equity Method | (b) Equity method accounted invested assets Other invested assets include i n 2022 2021 As at December 31, Carrying % of total Carrying % of total Leveraged leases $ 3,840 37 $ 3,457 40 Timber and agriculture 822 8 808 9 Real estate 1,845 18 1,528 17 Other 3,785 37 3,025 34 Total $ 10,292 100 $ 8,818 100 The Company’s share of profit and dividends from these investments for the year ended December 31, 2022 were $851 and $nil, respectively (2021 – $1,300 and $2). |
Schedule of Investment Income | (c) Investment income For the year ended December 31, 2022 FVTPL AFS Other (1) Total Cash and short-term securities Interest income $ 40 $ 272 $ – $ 312 Gains (losses) (2) 26 85 – 111 Debt securities Interest income 6,221 738 66 7,025 Gains (losses) (2) (32,732 ) (549 ) – (33,281 ) Recovery (impairment loss), net (11 ) – – (11 ) Public equities Dividend income 500 45 – 545 Gains (losses) (2) (3,819 ) 201 – (3,618 ) Impairment loss, net – (14 ) – (14 ) Mortgages Interest income – – 1,913 1,913 Gains (losses) (2) – – 57 57 Provision, net – – 1 1 Private placements Interest income – – 2,021 2,021 Gains (losses) (2) – – 335 335 Impairment loss, net – – (4 ) (4 ) Policy loans – – 385 385 Loans to Bank clients Interest income – – 138 138 Provision, net – – (4 ) (4 ) Real estate Rental income, net of depreciation (3) – – 452 452 Gains (losses) (2) – – (478 ) (478 ) Impairment loss, net – – – – Derivatives Interest income, net 494 – (24 ) 470 Gains (losses) (2) (10,628 ) – (9 ) (10,637 ) Other invested assets Interest income – – 26 26 Oil and gas, timber, agriculture and other income – – 2,846 2,846 Gains (losses) (2) 1,172 13 474 1,659 Impairment loss, net – (119 ) – (119 ) Total investment income $ (38,737 ) $ 672 $ 8,195 $ (29,870 ) Investment income Interest income $ 6,755 $ 1,010 $ 4,525 $ 12,290 Dividend, rental and other income 500 45 3,298 3,843 Impairments, provisions and recoveries, net (11 ) (133 ) (7 ) (151 ) Other (794 ) (216 ) 235 (775 ) 6,450 706 8,051 15,207 Realized and unrealized gains (losses) on assets supporting insurance and investment contract liabilities and on the macro hedge program Debt securities (32,599 ) (76 ) – (32,675 ) Public equities (3,626 ) 24 – (3,602 ) Mortgages – – 58 58 Private placements – – 336 336 Real estate – – (471 ) (471 ) Other invested assets 1,572 18 230 1,820 Derivatives, including macro hedge program (10,534 ) – (9 ) (10,543 ) (45,187 ) (34 ) 144 (45,077 ) Total investment income $ (38,737 ) $ 672 $ 8,195 $ (29,870 ) For the year ended December 31, 2021 FVTPL AFS Other (1) Total Cash and short-term securities Interest income $ 12 $ 84 $ – $ 96 Gains (losses) (2) 85 (22 ) – 63 Debt securities Interest income 5,645 576 9 6,230 Gains (losses) (2) (5,600 ) (266 ) – (5,866 ) Impairment loss, net 28 1 – 29 Public equities Dividend income 670 61 – 731 Gains (losses) (2) 3,221 250 – 3,471 Impairment loss, net – (3 ) – (3 ) Mortgages Interest income – – 1,709 1,709 Gains (losses) (2) – – 133 133 Provision, net – – 1 1 Private placements Interest income – – 1,931 1,931 Gains (losses) (2) – – 270 270 Impairment loss, net – – 45 45 Policy loans – – 366 366 Loans to Bank clients Interest income – – 77 77 Provision, net – – (2 ) (2 ) Real estate Rental income, net of depreciation (3) – – 453 453 Gains (losses) (2) – – 677 677 Derivatives Interest income, net 1,085 – (35 ) 1,050 Gains (losses) (2) (5,925 ) – (14 ) (5,939 ) Other invested assets Interest income – – 57 57 Oil and gas, timber, agriculture and other income – – 2,996 2,996 Gains (losses) (2) 2,554 23 527 3,104 Impairment loss, net – – (55 ) (55 ) Total investment income $ 1,775 $ 704 $ 9,145 $ 11,624 Investment income Interest income $ 6,742 $ 661 $ 4,114 $ 11,517 Dividend, rental and other income 670 61 3,449 4,180 Impairments, provisions and recoveries, net 28 (2 ) (11 ) 15 Other (76 ) (66 ) 57 (85 ) 7,364 654 7,609 15,627 Realized and unrealized gains (losses) on assets supporting insurance and investment contract liabilities and on the macro hedge program Debt securities (5,605 ) 20 – (5,585 ) Public equities 3,187 33 – 3,220 Mortgages – – 133 133 Private placements – – 270 270 Real estate – – 696 696 Other invested assets 2,628 (3 ) 451 3,076 Derivatives, including macro hedge program (5,799 ) – (14 ) (5,813 ) (5,589 ) 50 1,536 (4,003 ) Total investment income $ 1,775 $ 704 $ 9,145 $ 11,624 (1) Primarily includes investment income on loans carried at amortized cost, own use real estate properties, investment properties, derivative and hedging instruments in cash flow hedging relationships, equity method accounted investments, oil and gas investments, and leveraged leases. (2) Includes net realized and unrealized gains (losses) for financial instruments at FVTPL, 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. (3) Rental income from investment properties is net of direct operating expenses. |
Summary of Total Investment Expenses | The following table presents total investment expenses. For the years ended December 31, 2022 2021 Related to invested assets $ 718 $ 633 Related to segregated, mutual and other funds 1,145 1,347 Total investment expenses $ 1,863 $ 1,980 |
Summary of Rental Income and Direct Operating Expenses of Investment Properties | The following table presents the rental income and direct operating expenses of investment properties. For the years ended December 31, 2022 2021 Rental income from investment properties $ 825 $ 837 Direct operating expenses of rental investment properties (458 ) (464 ) Total $ 367 $ 373 |
Summary of Securitized Assets and Secured Borrowing Liabilities | Securitized assets and secured borrowing liabilities As at December 31, 2022 Securitized assets Securitization program Securitized Restricted cash and short-term securities Total Secured borrowing (2) HELOC securitization (1) $ 2,880 $ 44 $ 2,924 $ 2,750 CMB securitization 2,318 – 2,318 2,273 Total $ 5,198 $ 44 $ 5,242 $ 5,023 As at December 31, 2021 Securitized assets Securitization program Securitized Restricted cash and short-term securities Total Secured borrowing (2) HELOC securitization (1) $ 2,618 $ 1 $ 2,619 $ 2,500 CMB securitization 2,075 – 2,075 2,098 Total $ 4,693 $ 1 $ 4,694 $ 4,598 (1) Manulife Bank, a subsidiary, securitizes a portion of its HELOC receivables through Platinum Canadian Mortgage Trust II (“PCMT II”). PCMT II funds the purchase of the co-ownership (2) The PCMT II notes payable have floating rates of interest and are secured by the PCMT II assets. Under the terms of the agreements, no principal is expected to be repaid within one year, $1,209 within 1-3 3-5 |
Summary of Invested Assets and Segregated Funds Net Assets, Measured at Fair Value | The following table presents the fair values of invested assets and segregated funds net assets measured at fair value categorized by the fair value hierarchy. As at December 31, 2022 Total fair value Level 1 Level 2 Level 3 Cash and short-term securities FVTPL $ 1,933 $ – $ 1,933 $ – AFS 10,926 – 10,926 – Other 6,294 6,294 – – Debt securities FVTPL Canadian government and agency 14,798 – 14,798 – U.S. government and agency 9,440 – 9,440 – Other government and agency 22,986 – 22,986 – Corporate 120,897 – 120,865 32 Residential mortgage-backed securities 7 – 7 – Commercial mortgage-backed securities 570 – 570 – Other asset-backed securities 1,575 – 1,549 26 AFS Canadian government and agency 6,468 – 6,468 – U.S. government and agency 14,384 – 14,384 – Other government and agency 3,487 – 3,478 9 Corporate 7,745 – 7,745 – Residential mortgage-backed securities 1 – 1 – Commercial mortgage-backed securities 24 – 24 – Other asset-backed securities 111 – 111 – Public equities FVTPL 21,989 21,918 – 71 AFS 1,530 1,530 – – Real estate – investment property (1) 11,394 – – 11,394 Other invested assets (2) 30,256 26 – 30,230 Segregated funds net assets (3) 348,562 314,436 30,141 3,985 Total $ 635,377 $ 344,204 $ 245,426 $ 45,747 As at December 31, 2021 Total fair value Level 1 Level 2 Level 3 Cash and short-term securities FVTPL $ 2,214 $ – $ 2,214 $ – AFS 14,339 – 14,339 – Other 6,041 6,041 – – Debt securities FVTPL Canadian government and agency 18,706 – 18,706 – U.S. government and agency 12,607 – 12,607 – Other government and agency 21,888 – 21,888 – Corporate 133,763 – 133,723 40 Residential mortgage-backed securities 8 – 8 – Commercial mortgage-backed securities 1,103 – 1,103 – Other asset-backed securities 1,647 – 1,619 28 AFS Canadian government and agency 3,964 – 3,964 – U.S. government and agency 18,792 – 18,792 – Other government and agency 2,871 – 2,871 – Corporate 7,332 – 7,331 1 Residential mortgage-backed securities 1 – 1 – Commercial mortgage-backed securities 79 – 79 – Other asset-backed securities 58 – 58 – Public equities FVTPL 25,716 25,716 – – AFS 2,351 2,349 2 – Real estate – investment property (1) 11,421 – – 11,421 Other invested assets (2) 24,300 257 – 24,043 Segregated funds net assets (3) 399,788 361,447 34,060 4,281 Total $ 708,989 $ 395,810 $ 273,365 $ 39,814 (1) For investment properties, the significant unobservable inputs are capitalization rates (ranging from 2.25% to 9.00% during the year and ranging from 2.25% to 9.00% during 2021), terminal capitalization rates (ranging from 3.25% to 9.50% during the year and ranging from 3.25% to 9.25% during 2021) and discount rates (ranging from 3.30% to 11.00% during the year and ranging from 3.80% to 10.50% during 2021). Holding other factors constant, a higher capitalization, terminal capitalization, and/or discount rate will decrease the fair value of an investment property; while decreases in these rates would have the opposite effect. 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 infrastructure and timber sectors. The significant inputs used in the valuation of the Company’s 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 an infrastructure investment, while an increase in the discount rate would have the opposite effect. Discount rates during the year ranged from 7.15% to 15.6% (2021 – ranged from 7.25% to 20.0%). 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 4.25% to 7.0% (2021 – ranged from 4.5% to 7.0%). 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 in investment properties and timberland properties valued as described above. |
Summary of Fair Values and the Fair Value Hierarchy | The following table presents fair value of invested assets not measured at fair value by the fair value hierarchy. As at December 31, 2022 Carrying value Total fair value Level 1 Level 2 Level 3 Mortgages (1) $ 54,638 $ 51,429 $ – $ – $ 51,429 Private placements (2) 47,057 41,968 – 34,110 7,858 Policy loans (3) 6,894 6,894 – 6,894 – Loans to Bank clients (4) 2,781 2,760 – 2,760 – Real estate – own use property (5) 1,878 3,033 – – 3,033 Public Bonds HTM 1,411 1,000 – 1,000 – Other invested assets (6) 12,527 13,313 72 – 13,241 Total invested assets disclosed at fair value $ 127,186 $ 120,397 $ 72 $ 44,764 $ 75,561 As at December 31, 2021 Carrying value Total fair value Level 1 Level 2 Level 3 Mortgages (1) $ 52,014 $ 54,089 $ – $ – $ 54,089 Private placements (2) 42,842 47,276 – 42,110 5,166 Policy loans (3) 6,397 6,397 – 6,397 – Loans to Bank clients (4) 2,506 2,503 – 2,503 – Real estate – own use property (5) 1,812 3,024 – – 3,024 Public Bonds HTM 1,320 1,320 – 1,320 – Other invested assets (6) 11,006 11,665 120 – 11,545 Total invested assets disclosed at fair value $ 117,897 $ 126,274 $ 120 $ 52,330 $ 73,824 (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 investment property in note 1. (6) Primarily include leveraged leases, oil and gas properties (disposed of during 2021) 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 follo w For the year ended December 31, 2022 Balance, Total (1) Total (2) Purchases Sales Settlements Transfer in (3) Transfer out (3) Currency Balance, Change in Debt securities FVTPL Corporate $ 40 $ (1 ) $ – $ 27 $ – $ (1 ) $ 6 $ (40 ) $ 1 $ 32 $ (1 ) Other securitized assets 28 2 – – – (4 ) – – – 26 2 AFS Other government & agency – – – – – – 10 – (1 ) 9 – Corporate 1 – – – – – – (1 ) – – – Public equities FVTPL – (6 ) – 69 (84 ) – 87 – 5 71 (15 ) AFS – (1 ) 1 – – – – – – – – Investment property 11,421 (443 ) – 312 (237 ) – 15 – 326 11,394 (446 ) Other invested assets 24,043 1,922 7 4,934 (666 ) (1,474 ) 248 – 1,216 30,230 2,046 Total invested assets 35,533 1,473 8 5,342 (987 ) (1,479 ) 366 (41 ) 1,547 41,762 1,586 Derivatives, net 2,101 (5,413 ) (7 ) (109 ) – 775 – (356 ) (163 ) (3,172 ) (3,511 ) Segregated funds net assets 4,281 475 – 246 (1,113 ) (46 ) – (1 ) 143 3,985 79 Total $ 41,915 $ (3,465 ) $ 1 $ 5,479 $ (2,100 ) $ (750 ) $ 366 $ (398 ) $ 1,527 $ 42,575 $ (1,846 ) For the year ended December 31, 2021 Balance, Total (1) Total (2) Purchases Sales Settlements Transfer in (3) Transfer out (3) Currency Balance, Change in Debt securities FVTPL Corporate $ 510 $ 11 $ – $ 11 $ (93 ) $ – $ 11 $ (409 ) $ (1 ) $ 40 $ (8 ) Other securitized assets 45 3 – – (9 ) (39 ) 28 – – 28 (4 ) AFS Corporate 3 1 – – (3 ) – – – – 1 – Public equities FVTPL – – – 62 (62 ) – – – – – – Investment property 10,982 702 – 186 (376 ) – – – (73 ) 11,421 626 Other invested assets 19,049 2,731 2 5,058 (1,131 ) (1,453 ) 5 – (218 ) 24,043 2,569 Total invested assets 30,589 3,448 2 5,317 (1,674 ) (1,492 ) 44 (409 ) (292 ) 35,533 3,183 Derivatives, net 3,443 (897 ) – 14 – (182 ) – (309 ) 32 2,101 (547 ) Segregated funds net assets 4,202 350 – 68 (303 ) (28 ) – – (8 ) 4,281 116 Total $ 38,234 $ 2,901 $ 2 $ 5,399 $ (1,977 ) $ (1,702 ) $ 44 $ (718 ) $ (268 ) $ 41,915 $ 2,752 (1) These amounts are included in net investment income on the Consolidated Statements of Income except for the amount related to segregated funds net assets, where the amount is recorded in changes in segregated funds net assets, refer to notes 1(h) and 23. (2) These amounts are included in AOCI on the Consolidated Statements of Financial Position. (3) The Company uses fair values of the assets at the beginning of the year for assets transferred into and out of Level 3 except for derivatives, where the Company uses fair value at the end of the year and at the beginning of the year, respectively. |
Derivative and Hedging Instru_2
Derivative and Hedging Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Text block [abstract] | |
Summary of Gross Notional Amount and Fair Value of Derivative Instruments | The following table presents gross notional amount and fair value of derivative instruments by the underlying risk exposure. As at December 31, 2022 2021 Notional Fair value Notional Fair value Type of hedge Instrument type Assets Liabilities Assets Liabilities Derivatives in qualifying hedge accounting relationships Fair value hedges Foreign currency swaps $ 48 $ 5 $ – $ 57 $ 1 $ 1 Cash flow hedges Foreign currency swaps 1,155 40 203 1,251 5 379 Equity contracts 173 3 – 145 10 – Net investment hedges Forward contracts 626 – 28 671 9 – Total derivatives in qualifying hedge accounting relationships 2,002 48 231 2,124 25 380 Derivatives not designated in qualifying hedge accounting relationships Interest rate swaps 268,081 5,751 7,557 300,556 11,832 7,347 Interest rate futures 11,772 – – 11,944 – – Interest rate options 6,090 98 – 10,708 514 – Foreign currency swaps 39,667 2,029 1,579 36,405 790 1,722 Currency rate futures 2,319 – – 3,086 – – Forward contracts 45,124 295 4,697 45,295 2,674 562 Equity contracts 16,930 363 225 18,577 1,667 27 Credit default swaps 159 4 – 44 1 – Equity futures 3,813 – – 11,359 – – Total derivatives not designated in qualifying hedge accounting relationships 393,955 8,540 14,058 437,974 17,478 9,658 Total derivatives $ 395,957 $ 8,588 $ 14,289 $ 440,098 $ 17,503 $ 10,038 |
Summary of Gross Notional Amount by Remaining Term to Maturity, Total Fair Values (Including Accrued Interest), Credit Risk Equivalent and Risk Weighted Amount by Contract Type | The following table presents the fair values of the derivative instruments by the remaining term to maturity. Fair values disclosed below do not incorporate the impact of master netting agreements (refer to note 9). Remaining term to maturity As at December 31, 2022 Less than 1 year 1 to 3 years 3 to 5 years Over 5 years Total Derivative assets $ 580 $ 556 $ 556 $ 6,896 $ 8,588 Derivative liabilities 2,656 1,956 1,146 8,531 14,289 Remaining term to maturity As at December 31, 2021 Less than 1 year 1 to 3 years 3 to 5 years Over 5 years Total Derivative assets $ 2,500 $ 1,803 $ 1,000 $ 12,200 $ 17,503 Derivative liabilities 294 387 379 8,978 10,038 The foll o Remaining term to maturity (notional amounts) Fair value Capital requirement (2) As at December 31, 2022 Under 1 year 1 to 5 years Over 5 years Total Positive Negative Net Credit amount (1) Interest rate contracts OTC swap contracts $ 8,817 $ 19,253 $ 98,380 $ 126,450 $ 5,992 $ (8,135 ) $ (2,143 ) $ 419 $ 9 Cleared swap contracts 2,494 16,823 122,314 141,631 254 (219 ) 35 – – Forward contracts 14,290 13,926 198 28,414 70 (4,468 ) (4,398 ) 8 – Futures 11,772 – – 11,772 – – – – – Options purchased 1,199 1,069 3,822 6,090 98 – 98 64 4 Subtotal 38,572 51,071 224,714 314,357 6,414 (12,822 ) (6,408 ) 491 13 Foreign exchange Swap contracts 2,026 10,475 28,369 40,870 2,067 (1,846 ) 221 1,166 23 Forward contracts 17,336 – – 17,336 226 (258 ) (32 ) 89 – Futures 2,319 – – 2,319 – – – – – Credit derivatives 15 144 – 159 4 – 4 – – Equity contracts Swap contracts 547 396 – 943 26 (7 ) 19 24 – Futures 3,813 – – 3,813 – – – – – Options purchased 12,634 3,526 – 16,160 335 (218 ) 117 232 2 Subtotal including accrued interest 77,262 65,612 253,083 395,957 9,072 (15,151 ) (6,079 ) 2,002 38 Less accrued interest – – – – 484 (862 ) (378 ) – – Total $ 77,262 $ 65,612 $ 253,083 $ 395,957 $ 8,588 $ (14,289 ) $ (5,701 ) $ 2,002 $ 38 Remaining term to maturity (notional amounts) Fair value Capital requirement (2) As at December 31, 2021 Under 1 year 1 to 5 years Over 5 years Total Positive Negative Net Credit amount (1) Interest rate contracts OTC swap contracts $ 4,554 $ 21,884 $ 90,592 $ 117,030 $ 12,112 $ (7,717 ) $ 4,395 $ 1,582 $ 29 Cleared swap contracts 21,722 27,665 134,139 183,526 441 (453 ) (12 ) – – Forward contracts 14,636 15,791 741 31,168 2,625 (483 ) 2,142 299 5 Futures 11,944 – – 11,944 – – – – – Options purchased 1,406 2,789 6,513 10,708 515 – 515 113 9 Subtotal 54,262 68,129 231,985 354,376 15,693 (8,653 ) 7,040 1,994 43 Foreign exchange Swap contracts 1,941 8,869 26,903 37,713 801 (2,181 ) (1,380 ) 1,302 25 Forward contracts 14,798 – – 14,798 58 (79 ) (21 ) 85 – Futures 3,086 – – 3,086 – – – – – Credit derivatives 11 33 – 44 1 – 1 – – Equity contracts Swap contracts 669 323 – 992 57 (10 ) 47 29 – Futures 11,359 – – 11,359 – – – – – Options purchased 10,974 6,716 40 17,730 1,616 (17 ) 1,599 766 8 Subtotal including accrued interest 97,100 84,070 258,928 440,098 18,226 (10,940 ) 7,286 4,176 76 Less accrued interest – – – – 723 (902 ) (179 ) – – Total $ 97,100 $ 84,070 $ 258,928 $ 440,098 $ 17,503 $ (10,038) $ 7,465 $ 4,176 $ 76 (1) Credit equivalent amount is the sum of replacement cost and the potential future credit exposure less any collateral held. 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) Capital requirement represents the credit equivalent amount, weighted according to the creditworthiness of the counterparty, as prescribed by OSFI. |
Summary of Fair Value and the Fair Value Hierarchy of Derivative Instruments | Fair value and the fair value hierarchy of derivative instruments As at December 31, 2022 Fair value Level 1 Level 2 Level 3 Derivative assets Interest rate contracts $ 5,919 $ – $ 5,766 $ 153 Foreign exchange contracts 2,299 – 2,298 1 Equity contracts 366 – 361 5 Credit default swaps 4 – 4 – Total derivative assets $ 8,588 $ – $ 8,429 $ 159 Derivative liabilities Interest rate contracts $ 12,025 $ – $ 8,689 $ 3,336 Foreign exchange contracts 2,039 – 2,037 2 Equity contracts 225 – 216 9 Total derivative liabilities $ 14,289 $ – $ 10,942 $ 3,347 As at December 31, 2021 Fair value Level 1 Level 2 Level 3 Derivative assets Interest rate contracts $ 14,971 $ – $ 12,510 $ 2,461 Foreign exchange contracts 854 – 854 – Equity contracts 1,677 – 1,616 61 Credit default swaps 1 – 1 – Total derivative assets $ 17,503 $ – $ 14,981 $ 2,522 Derivative liabilities Interest rate contracts $ 7,829 $ – $ 7,419 $ 410 Foreign exchange contracts 2,182 – 2,181 1 Equity contracts 27 – 17 10 Total derivative liabilities $ 10,038 $ – $ 9,617 $ 421 |
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, 2022 Hedged items in qualifying fair value hedging relationships Gains (losses) Gains (losses) Ineffectiveness Foreign currency swaps Fixed rate assets $ 7 $ (5 ) $ 2 Total $ 7 $ (5 ) $ 2 For the year ended December 31, 2021 Hedged items in qualifying fair value hedging relationships Gains (losses) Gains (losses) Ineffectiveness Foreign currency swaps Fixed rate assets $ 4 $ (2 ) $ 2 Total $ 4 $ (2 ) $ 2 |
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, 2022 Hedged items in qualifying Gains (losses) Gains (losses) Ineffectiveness Foreign currency swaps Fixed rate assets $ (1 ) $ (1 ) $ – Floating rate liabilities 175 (49 ) – Fixed rate liabilities 34 35 – Equity contracts Stock-based compensation 2 6 – Total $ 210 $ (9) $ – For the year ended December 31, 2021 Hedged items in qualifying Gains (losses) Gains (losses) Ineffectiveness Foreign currency swaps Fixed rate assets $ (1 ) $ (1 ) $ – Floating rate liabilities 89 3 – Fixed rate liabilities (19 ) (21 ) – Equity contracts Stock-based compensation 5 5 – Total $ 74 $ (14 ) $ – |
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, 2022 Gains (losses) Gains (losses) Ineffectiveness Non-functional $ (458 ) $ – $ – Forward contracts 14 – – Total $ (444 ) $ – $ – For the year ended December 31, 2021 Gains (losses) Gains (losses) Ineffectiveness Non-functional $ 61 $ – $ – Forward contracts 59 – – Total $ 120 $ – $ – |
Summary of Investment Income on Derivatives Not Designated in Qualifying Hedge Accounting Relationships | Investment income on derivatives not designated in qualifying hedge accounting relationships For the years ended December 31, 2022 2021 Interest rate swaps $ (3,428 ) $ (1,986 ) Interest rate futures (431 ) (687 ) Interest rate options (258 ) (133 ) Foreign currency swaps 1,171 (166 ) Currency rate futures (103 ) 66 Forward contracts (7,561 ) (1,751 ) Equity futures 794 (2,140 ) Equity contracts (818 ) 871 Credit default swaps – (2 ) Total $ (10,634 ) $ (5,928 ) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Text block [abstract] | |
Summary of Carrying Amounts of Goodwill and Intangible Assets | (a) Change in the carrying value of goodwill and intangible assets The following table presents the change in carrying value of goodwill and intangible assets. As at December 31, 2022 Balance, Net additions/ (1)(2) Amortization Effect of changes Balance, Goodwill $ 5,651 $ 255 $ n/a $ 108 $ 6,014 Indefinite life intangible assets Brand 761 – n/a 52 813 Fund management contracts and other (3) 788 228 n/a 32 1,048 1,549 228 n/a 84 1,861 Finite life intangible assets (4) Distribution networks 888 6 47 34 881 Customer relationships 687 – 56 12 643 Software 1,091 192 235 20 1,068 Other 49 7 6 2 52 2,715 205 344 68 2,644 Total intangible assets 4,264 433 344 152 4,505 Total goodwill and intangible assets $ 9,915 $ 688 $ 344 $ $ 10,519 As at December 31, 2021 Balance, Net additions/ (5) Amortization Effect of changes Balance, Goodwill $ 5,714 $ (5 ) $ n/a $ (58 ) $ 5,651 Indefinite life intangible assets Brand 764 – n/a (3 ) 761 Fund management contracts and other (3) 796 (3 ) n/a (5 ) 788 1,560 (3 ) n/a (8 ) 1,549 Finite life intangible assets (4) Distribution networks 806 131 44 (5 ) 888 Customer relationships 738 (2 ) 48 (1 ) 687 Software 1,059 198 148 (18 ) 1,091 Other 52 2 6 1 49 2,655 329 246 (23 ) 2,715 Total intangible assets 4,215 326 246 (31 ) 4,264 Total goodwill and intangible assets $ 9,929 $ 321 $ 246 $ (89 ) $ 9,915 (1) In November 2022, the Company acquired control of Manulife TEDA Fund Management Company, LTD. through purchase of the remaining 51% of shares that it did not already own from transaction consideration and previous with a fair value of (2) In January 2022, the Company paid $256 to VietinBank for an extension of the life of the distribution agreement acquired from Aviva Plc in December 2021. (3) Fund management contracts are mostly allocated to Canada WAM and U.S. WAM CGUs with carrying values of $273 (2021 – $273) and $397 (2021 – $371), respectively. (4) Gross carrying amount of finite life intangible assets was $1,517 for distribution networks, $1,146 for customer relationships, $2,736 for software and $136 for other (2021 – (5) In December 2021, the Company purchased the Vietnamese operations of Aviva Plc including rights to an exclusive distribution agreement with VietinBank. |
Summary of Impairment Testing of Goodwill | The following tables present the carrying value of goodwill by CGU or group of CGUs. As at December 31, 2022 CGU or group of CGUs Balance, Net additions/ Effect of Balance, Asia Asia Insurance (excluding Japan) $ 152 $ – $ 10 $ 162 Japan Insurance 386 – (26 ) 360 Canada Insurance 1,955 – 5 1,960 U.S. Insurance 336 – 24 360 Global Wealth and Asset Management Asia WAM 183 255 12 450 Canada WAM 1,436 – – 1,436 U.S. WAM 1,203 – 83 1,286 Total $ 5,651 $ $ 108 $ 6,014 As at December 31, 2021 CGU or group of CGUs Balance, Net additions/ Effect of Balance, Asia Asia Insurance (excluding Japan) $ 159 $ (5 ) $ (2 ) $ 152 Japan Insurance 433 – (47 ) 386 Canada Insurance 1,955 – – 1,955 U.S. Insurance 338 – (2 ) 336 Global Wealth and Asset Management Asia WAM 185 – (2 ) 183 Canada WAM 1,436 – – 1,436 U.S. WAM 1,208 – (5 ) 1,203 Total $ 5,714 $ (5 ) $ (58 ) $ 5,651 |
Insurance Contract Liabilitie_2
Insurance Contract Liabilities and Reinsurance Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Statement [LineItems] | |
Summary of Insurance Contract Liabilities and Reinsurance Assets | The components of gross and net insurance contract liabilities are shown below. As at December 31, 2022 2021 Insurance contract liabilities $ 352,153 $ 374,890 Benefits payable and provision for unreported claims 5,610 5,251 Policyholder amounts on deposit 13,642 12,134 Gross insurance contract liabilities 371,405 392,275 Reinsurance assets (1) (47,674 ) (44,531 ) Net insurance contract liabilities $ 323,731 $ 347,744 (1) Reinsurance assets of $38 (2021 – $48) are related to investment contract liabilities, refer to note 8(b). |
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 the line of business and reporting segment is as follows. Gross insurance contract liabilities Individual insurance Annuities Other (1) Total, net of Total Total, As at December 31, 2022 Participating Non- Asia $ 66,294 $ 34,684 $ 6,221 $ 4,142 $ 111,341 $ 2,727 $ 114,068 Canada 12,637 38,325 13,593 14,095 78,650 1,676 80,326 U.S. 7,867 67,789 11,273 46,849 133,778 43,137 176,915 Corporate and Other – (640 ) 24 578 (38 ) 134 96 Total, net of reinsurance ceded 86,798 140,158 31,111 65,664 323,731 47,674 371,405 Total reinsurance ceded 8,552 22,434 15,793 895 47,674 Total, gross of reinsurance ceded $ 95,350 $ 162,592 $ 46,904 $ 66,559 $ 371,405 Individual insurance Annuities Other (1) Total, net of Total Total, As at December 31, 2021 Participating Non- Asia $ 64,586 $ 36,387 $ 6,869 $ 3,590 $ 111,432 $ 2,749 $ 114,181 Canada 13,518 44,320 16,554 14,981 89,373 430 89,803 U.S. 8,591 71,077 14,007 53,555 147,230 41,150 188,380 Corporate and Other – (676 ) 22 363 (291 ) 202 (89 ) Total, net of reinsurance ceded 86,695 151,108 37,452 72,489 347,744 44,531 392,275 Total reinsurance ceded 8,144 20,767 14,681 939 44,531 Total, gross of reinsurance ceded $ 94,839 $ 171,875 $ 52,133 $ 73,428 $ 392,275 (1) Other insurance contract liabilities include group insurance and individual and group health including long-term care insurance. |
Summary of Carrying Value of Assets Backing Net Insurance Contract Liabilities, Other Liabilities and Capital | The following table presents the carrying value of assets backing net insurance contract liabilities, other liabilities and capital. Individual insurance Annuities Other (1) Other (2) Capital (3) Total As at December 31, 2022 Participating Non- Assets Debt securities $ 42,279 $ 72,706 $ 15,686 $ 31,998 $ 9,739 $ 31,496 $ 203,904 Public equities 12,253 6,792 336 562 675 2,901 23,519 Mortgages 4,378 14,101 4,350 8,766 22,997 46 54,638 Private placements 6,810 19,498 8,038 10,497 2,003 211 47,057 Real estate 3,346 7,030 913 1,875 (66 ) 174 13,272 Other 17,732 20,031 1,788 11,966 427,369 27,665 506,551 Total $ 86,798 $ 140,158 $ 31,111 $ 65,664 $ 462,717 $ 62,493 $ 848,941 Individual insurance Annuities Other (1) Other (2) Capital (3) Total As at December 31, 2021 Participating Non- Assets Debt securities $ 43,278 $ 82,050 $ 19,575 $ 36,207 $ 10,723 $ 32,306 $ 224,139 Public equities 14,667 8,112 453 374 626 3,835 28,067 Mortgages 3,799 13,295 4,572 8,526 21,802 20 52,014 Private placements 6,005 17,741 7,370 9,775 1,723 228 42,842 Real estate 3,467 6,814 987 1,782 6 177 13,233 Other 15,479 23,096 4,495 15,825 469,014 29,439 557,348 Total $ 86,695 $ 151,108 $ 37,452 $ 72,489 $ 503,894 $ 66,005 $ 917,643 (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 13. |
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) Decrease in after-tax net As at December 31, 2022 2021 Policy related assumptions 2% adverse change in future mortality rates (2),(4) Products where an increase in rates increases insurance contract liabilities $ (500 ) $ (500 ) Products where a decrease in rates increases insurance contract liabilities (500 ) (500 ) 5% adverse change in future morbidity rates (incidence and termination) (3),(4),(5) (4,500 ) (5,500 ) 10% adverse change in future policy termination rates (4) (2,200 ) (2,400 ) 5% increase in future expense levels (600 ) (600 ) (1) 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 (2) 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. (3) 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. (4) The impacts of the adverse sensitivities on LTC for morbidity, mortality and lapse do not assume any partial offsets from the Company’s ability to contractually raise premium rates in such events, subject to state regulatory approval. In practice, the Company would plan to file for rate increases equal to the amount of deterioration resulting from the sensitivities. (5) 5% deterioration in incidence rates and 5% deterioration in claim termination rates. |
Summary of Actuarial Methods and Assumptions | The completion of the 2022 annual review of actuarial methods and assumptions resulted in a decrease in insurance contract liabilities, net of reinsurance, of $80, and a net gain to net income attributed to shareholders of $36 post-tax. Change in insurance contract liabilities, For the year ended December 31, 2022 Total Attributed to (1) Attributed to Change in net (post-tax) Long-term care triennial review $ 19 $ – $ 19 $ (15 ) Mortality and morbidity updates 157 (5 ) 162 (126 ) Lapses and policyholder behaviour updates 317 74 243 (192 ) Investment related updates (210 ) (1 ) (209 ) 157 Other updates (363 ) (145 ) (218 ) 212 Net impact $ (80 ) $ (77 ) $ (3 ) $ 36 (1) The change in insurance contract liabilities, net of reinsurance, attributable to the participating policyholders’ account was primarily driven by an increase in expected long-term interest rates within the valuation models to reflect the higher interest rate environment, partially offset by the lapse assumption update in Canada. The completion of the 2021 annual review of actuarial methods and assumptions resulted in an increase in insurance contract liabilities of $287, net of reinsurance, and a decrease in net income attributed to shareholders of $41 post-tax. Change in insurance contract liabilities, For the year ended December 31, 2021 Total Attributed to (1) Attributed to Change in net (post-tax) U.S. variable annuity product review $ 51 $ – $ 51 $ (40 ) Mortality and morbidity updates 350 – 350 (257 ) Lapses and policyholder behaviour updates 686 18 668 (534 ) Expense updates (653 ) (25 ) (628 ) 503 Investment related updates (257 ) (2 ) (255 ) 168 Other updates 110 231 (121 ) 119 Net impact $ 287 $ 222 $ 65 $ (41 ) (1) The change in insurance contract liabilities, net of reinsurance, attributable to the participating policyholders’ account was primarily driven by a reduction in the expected long-term interest rates within the valuation models to reflect the low interest rate environment. |
Summary of Insurance Contract Liabilities, Payments Due by Period | Insurance contracts give rise to obligations fixed by agreement. As at December 31, 2022, 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 years Total Insurance contract liabilities (1) $ 11,498 $ 12,365 $ 18,496 $ 1,012,611 $ 1,054,970 (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, 2022 2021 Death, disability and other claims $ 19,404 $ 18,583 Maturity and surrender benefits 10,662 8,728 Annuity payments 3,242 3,276 Policyholder dividends and experience rating refunds 1,279 1,255 Net transfers from segregated funds (1,267 ) (732 ) Total $ 33,320 $ 31,110 |
Long term care [member] | |
Statement [LineItems] | |
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) Decrease in after-tax net As at December 31, 2022 2021 Policy related assumptions 2% adverse change in future mortality rates $ (300 ) $ (300 ) 5% adverse change in future morbidity incidence rates (1,700 ) (2,000 ) 5% adverse change in future morbidity claims termination rates (2,400 ) (3,100 ) 10% adverse change in future policy termination rates (300 ) (400 ) 5% increase in future expense levels (100 ) (100 ) (1) The impacts of the adverse sensitivities on LTC for morbidity, mortality and lapse do not assume any partial offsets from the Company’s ability to contractually raise premium rates in such events, subject to state regulatory approval. In practice, the Company would plan to file for rate increases equal to the amount of deterioration resulting from the sensitivities. (2) The impact of favourable changes to all the sensitivities is relatively symmetrical. |
Life insurance contracts [Member] | |
Statement [LineItems] | |
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, 2022 Net actuarial Other (1) Net Reinsurance Gross Balance, January 1 $ 332,272 $ 15,472 $ 347,744 $ 44,531 $ 392,275 New policies (2) 5,365 – 5,365 116 5,481 Normal in-force (2) (39,174 ) 1,216 (37,958 ) (1,042 ) (39,000 ) Changes in methods and assumptions (2) 112 (192 ) (80 ) 349 269 Reinsurance transactions (2) , (2,419 ) – (2,419 ) 950 (1,469 ) Impact of changes in foreign exchange rates 10,439 640 11,079 2,770 13,849 Balance, December 31 $ 306,595 $ 17,136 $ 323,731 $ 47,674 $ 371,405 For the year ended December 31, 2021 Net actuarial Other (1) Net Reinsurance Gross Balance, January 1 $ 325,408 $ 14,377 $ 339,785 $ 45,769 $ 385,554 New policies (4) 5,947 – 5,947 276 6,223 Normal in-force (4) 4,689 1,283 5,972 (1,812 ) 4,160 Changes in methods and assumptions (4) 287 – 287 455 742 Reinsurance transactions – – – – – Impact of changes in foreign exchange rates (4,059 ) (188 ) (4,247 ) (157 ) (4,404 ) Balance, December 31 $ 332,272 $ 15,472 $ 347,744 $ 44,531 $ 392,275 (1) Other insurance contract liabilities are comprised of benefits payable and provisions for unreported claims and policyholder amounts on deposit. (2) In 2022, the $34,971 decrease reported as the change in insurance contract liabilities on the 2022 Consolidated Statements of Income primarily consists of changes due to normal in-force movement, new policies, changes in methods and assumptions, and reinsurance transactions. These four items in the gross insurance contract liabilities were netted off by a decrease of $34,719, of which $35,830 is included in the Consolidated Statements of Income as a decrease in insurance contract liabilities and $1,111 increase is included in gross claims and benefits. The Consolidated Statements of Income change in insurance contract liabilities also includes the change in embedded derivatives associated with insurance contracts, however these embedded derivatives are included in other liabilities on the Consolidated Statements of Financial Position. (3) In 2022, we completed two transactions to reinsure blocks of legacy U.S. variable annuity (“VA”) policies. Under the terms of the transactions, the Company will retain responsibility for the maintenance of the policies with no intended impact to VA policyholders. The transactions were structured as coinsurance for the general fund liabilities and modified coinsurance for the segregated fund liabilities. (4) In 2021, the $10,719 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 Liabiliti_2
Investment Contract Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Text block [abstract] | |
Summary of Movement in Investment Contract Liabilities Measured at Fair Value | The following table presents the movement in investment contract liabilities measured at fair value. For the years ended December 31, 2022 2021 Balance, January 1 $ 802 $ 932 New policies 93 54 Changes in market conditions (39 ) (38 ) Redemptions, surrenders and maturities (106 ) (138 ) Impact of changes in foreign exchange rates 46 (8 ) Balance, December 31 $ 796 $ 802 |
Summary of Investment Contract Liabilities Measured at Amortized Cost and Fair Value Associated with these Contracts | The following table presents carrying and fair values of investment contract liabilities measured at amortized cost. 2022 2021 As at December 31, Amortized cost, gross of (1) Fair value Amortized cost, gross of (1) Fair value U.S. fixed annuity products $ 1,575 $ 1,547 $ 1,380 $ 1,602 Canadian fixed annuity products 877 956 935 1,016 Investment contract liabilities $ 2,452 $ 2,503 $ 2,315 $ 2,618 (1) As at December 31, 2022, investment contract liabilities with the carrying value and fair value of $38 and $38, respectively (2021 – $48 and $52, respectively), were reinsured by the Company. The net carrying value and fair value of investment contract liabilities were $2,414 and $2,465 (2021 – $2,267 and $2,566), respectively. |
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, 2022 2021 Balance, January 1 $ 2,315 $ 2,356 Policy deposits 200 92 Interest 67 71 Withdrawals (236 ) (191 ) Fees (1 ) (1 ) Other – (5 ) Impact of changes in foreign exchange rates 107 (7 ) Balance, December 31 $ 2,452 $ 2,315 |
Summary of Contractual Obligations and Commitments Relating to Investment Contracts | As at December 31, 2022, the Company’s contractual obligations and commitments relating to the 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) $ 300 $ 511 $ 514 $ 3,365 $ 4,690 (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, 2022 | |
Statement [LineItems] | |
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, 2022 2021 Debt securities FVTPL $ 170,273 $ 189,722 AFS 32,220 33,097 Other 1,411 1,320 Mortgages 54,638 52,014 Private placements 47,057 42,842 Policy loans 6,894 6,397 Loans to Bank clients 2,781 2,506 Derivative assets 8,588 17,503 Accrued investment income 2,813 2,641 Reinsurance assets 47,712 44,579 Other financial assets 6,077 6,242 Total $ 380,464 $ 398,863 |
Summary of Credit Quality and Carrying Value of Commercial Mortgages and Private Placements | The following table presents the credit quality of commercial mortgages and private placements. As at December 31, 2022 AAA AA A BBB BB B and lower Total Commercial mortgages Retail $ 113 $ 1,526 $ 4,872 $ 2,055 $ 194 $ 2 $ 8,762 Office 102 1,460 5,950 1,471 57 33 9,073 Multi-family residential 500 2,213 3,751 892 11 – 7,367 Industrial 72 929 3,312 407 – – 4,720 Other 180 990 798 764 – – 2,732 Total commercial mortgages 967 7,118 18,683 5,589 262 35 32,654 Agricultural mortgages – – 119 240 – – 359 Private placements 904 6,991 16,534 17,176 1,105 4,347 47,057 Total $ 1,871 $ 14,109 $ 35,336 $ 23,005 $ 1,367 $ 4,382 $ 80,070 As at December 31, 2021 AAA AA A BBB BB B and lower Total Commercial mortgages Retail $ 113 $ 1,340 $ 5,179 $ 1,936 $ 228 $ 2 $ 8,798 Office 56 1,256 6,004 1,291 87 40 8,734 Multi-family residential 557 1,869 3,771 767 32 – 6,996 Industrial 47 376 2,808 328 – – 3,559 Other 212 1,010 787 956 47 – 3,012 Total commercial mortgages 985 5,851 18,549 5,278 394 42 31,099 Agricultural mortgages – – 119 242 – – 361 Private placements 976 5,720 16,147 16,220 1,161 2,618 42,842 Total $ 1,961 $ 11,571 $ 34,815 $ 21,740 $ 1,555 $ 2,660 $ 74,302 |
Summary of Carrying Value of Past Due but Not Impaired and Impaired Financial Assets | The following table presents the carrying value of financial assets with some or all of their contractual payments past due but which are not impaired and impaired financial assets. Past due but not impaired As at December 31, 2022 Less than 90 days Total Total Debt securities (1),(2) FVTPL $ 2,059 $ 71 $ 2,130 $ 9 AFS 922 – 922 – Private placements (1) 317 152 469 229 Mortgages and loans to Bank clients 103 – 103 74 Other financial assets 36 34 70 1 Total $ 3,437 $ 257 $ 3,694 $ 313 Past due but not impaired As at December 31, 2021 Less than 90 days Total Total Debt securities (1),(2) FVTPL $ 20 $ – $ 20 $ 2 AFS – – – – Private placements (1) 63 – 63 175 Mortgages and loans to Bank clients 61 – 61 51 Other financial assets 261 47 308 – Total $ 405 $ 47 $ 452 $ 228 |
Summary of Company's Loans That are Considered Impaired | The following table presents gross carrying value and allowances for loan losses for impaired loans. As at December 31, 2022 Gross Allowances Net carrying Private placements $ 254 $ 25 $ 229 Mortgages and loans to Bank clients 96 22 74 Total $ 350 $ 47 $ 303 As at December 31, 2021 Gross Allowances Net carrying Private placements $ 197 $ 22 $ 175 Mortgages and loans to Bank clients 73 22 51 Total $ 270 $ 44 $ 226 |
Summary of Reconciliation of Allowance for Loan Losses | The following table presents movement of allowance for loan losses during the year. 2022 2021 For the years ended December 31, Private Mortgages Total Private Mortgages Total Balance, January 1 $ 22 $ 22 $ 44 $ 79 $ 28 $ 107 Provisions 22 4 26 14 12 26 Recoveries (18 ) (2 ) (20 ) (58 ) (16 ) (74 ) Write-offs (1) (1 ) (2 ) (3 ) (13 ) (2 ) (15 ) Balance, December 31 $ 25 $ 22 $ 47 $ 22 $ 22 $ 44 (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, 2022 Notional (1) Fair value Weighted (in years) (2) Single name CDS (3) A $ 133 $ 4 4 BBB 26 – 1 Total single name CDS $ 159 $ 4 4 Total CDS protection sold $ 159 $ 4 4 As at December 31, 2021 Notional (1) Fair value Weighted (in years) (2) Single name CDS (3) A $ 16 $ – 1 BBB 28 1 2 Total single name CDS $ 44 $ 1 2 Total CDS protection sold $ 44 $ 1 2 (1) Notional amounts represent the maximum future payments the Company would have to pay its CDS counterparties assuming a default of the underlying credit and zero recovery on the underlying issuer obligations. (2) The weighted average maturity of the CDS is weighted based on notional amounts. (3) Ratings 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. |
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 pledged or received. Related amounts not set off in the As at December 31, 2022 Gross amounts of (1) Amounts subject to Financial (2) Net (3) Net Financial assets Derivative assets $ 9,072 $ (7,170 ) $ (1,687 ) $ 215 $ 215 Securities lending 723 – (723 ) – – Reverse repurchase agreements 895 (779 ) (116 ) – – Total financial assets $ 10,690 $ (7,949 ) $ (2,526 ) $ 215 $ 215 Financial liabilities Derivative liabilities $ (15,151 ) $ 7,170 $ 7,834 $ (147 ) $ (103 ) Repurchase agreements (895 ) 779 116 – – Total financial liabilities $ (16,046 ) $ 7,949 $ 7,950 $ (147 ) $ (103 ) Related amounts not set off in the As at December 31, 2021 Gross amounts of (1) Amounts subject to Financial (2) Net (3) Net Financial assets Derivative assets $ 18,226 $ (8,410 ) $ (9,522 ) $ 294 $ 294 Securities lending 564 – (564 ) – – Reverse repurchase agreements 1,490 (183 ) (1,307 ) – – Total financial assets $ 20,280 $ (8,593 ) $ (11,393 ) $ 294 $ 294 Financial liabilities Derivative liabilities $ (10,940 ) $ 8,410 $ 2,250 $ (280 ) $ (79 ) Repurchase agreements (536 ) 183 353 – – Total financial liabilities $ (11,476 ) $ 8,593 $ 2,603 $ (280 ) $ (79 ) (1) Financial assets and liabilities include accrued interest of $488 and $862, respectively (2021 – $725 and $902, respectively). (2) Financial and cash collateral exclude over-collateralization. As at December 31, 2022, the Company was over-collateralized on OTC derivative assets, OTC derivative liabilities, securities lending and reverse repurchase agreements and repurchase agreements in the amounts of $507, $1,528, $63 and $nil, respectively (2021 – $599, $875, $36 and $2, respectively). As at December 31, 2022, collateral pledged (received) does not include collateral-in-transit (3) Includes derivative contracts entered between the Company and its financing entity which it does not consolidate. The Company does not exchange collateral on derivative contracts entered with this entity. Refer to note 18. |
Summary of the Effect of Unconditional Netting | The following table presents the effect of unconditional netting. As at December 31, 2022 Gross amounts of Amounts subject to Net amounts of Credit linked note (1) $ 1,242 $ (1,242 ) $ – Variable surplus note (1,242 ) 1,242 – As at December 31, 2021 Gross amounts of Amounts subject to Net amounts of Credit linked note (1) $ 1,054 $ (1,054 ) $ – Variable surplus note (1,054 ) 1,054 – (1) As at December 31, 2022 and 2021, the Company had no fixed surplus notes outstanding, refer to note 19(g). |
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. 2022 2021 As at December 31, Carrying value % of total Carrying value % of total Government and agency $ 77,236 31 $ 84,244 32 Utilities 46,315 18 48,372 18 Financial 38,808 15 38,905 15 Consumer 31,556 13 32,671 12 Energy 16,314 7 19,637 7 Industrial 23,823 9 24,727 9 Other 16,909 7 18,425 7 Total $ 250,961 100 $ 266,981 100 |
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, 2022 Gross Reinsurance Net liabilities U.S. and Canada $ 251,305 $ (45,898 ) $ 205,407 Asia and Other 123,808 (1,814 ) 121,994 Total $ 375,113 $ (47,712 ) $ 327,401 As at December 31, 2021 Gross Reinsurance Net liabilities U.S. and Canada $ 271,090 $ (42,806 ) $ 228,284 Asia and Other 124,398 (1,773 ) 122,625 Total $ 395,488 $ (44,579 ) $ 350,909 |
Asset classes and individual investment risks [Member] | |
Statement [LineItems] | |
Schedule of Risk Concentrations | As at December 31, 2022 2021 Debt securities and private placements rated as investment grade BBB or higher (1) 96% 97% Government debt securities as a per cent of total debt securities 36% 36% Government private placements as a per cent of total private placements 10% 11% Highest exposure to a single non-government $ 1,006 $ 1,167 Largest single issuer as a per cent of the total equity portfolio 2% 2% Income producing commercial office properties (2022 – 41% of real estate, 2021 – 47%) $ 5,486 $ 6,244 Largest concentration of mortgages and real estate (2) $ 18,343 $ 18,253 (1) Investment grade debt securities and private placements include 39% rated A, 17% rated AA and 14% rated AAA (2021 – 39%, 17% and 15%) investments based on external ratings where available. (2) Mortgages and real estate investments are diversified geographically and by property type. |
Residential mortgages and loans to bank clients [Member] | |
Statement [LineItems] | |
Summary of Carrying Value of Residential Mortgages and Loans to Bank Clients | The following table presents credit quality of residential mortgages and loans to Bank clients. 2022 2021 As at December 31, Insured Uninsured Total Insured Uninsured Total Residential mortgages Performing $ 7,015 $ 14,569 $ 21,584 $ 7,264 $ 13,272 $ 20,536 Non-performing (1) 8 33 41 6 12 18 Loans to Bank clients Performing n/a 2,778 2,778 n/a 2,506 2,506 Non-performing (1) n/a 3 3 n/a – – Total $ 7,023 $ 17,383 $ 24,406 $ 7,270 $ 15,790 $ 23,060 (1) Non-performing |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Text block [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 2022 2021 3.050% Senior notes (1),(2) August 27, 2020 August 27, 2060 US$ 1,155 $ 1,559 $ 1,455 5.375% Senior notes (1),(3) March 4, 2016 March 4, 2046 US$ 750 1,004 939 3.703% Senior notes (1),(4) March 16, 2022 March 16, 2032 US$ 750 1,011 – 2.396% Senior notes (1),(5) June 1, 2020 June 1, 2027 US$ 200 270 253 2.484% Senior notes (1),(5) May 19, 2020 May 19, 2027 US$ 500 674 630 3.527% Senior notes (1),(3) December 2, 2016 December 2, 2026 US$ 270 365 342 4.150% Senior notes (1),(3) March 4, 2016 March 4, 2026 US$ 1,000 1,351 1,263 Total $ 6,234 $ 4,882 (1) 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 (2) MFC may redeem the notes in whole, but not in part, on August 27, 2025, and thereafter on every August 27 at a redemption price equal to par, together with accrued and unpaid interest. Issue costs are amortized to the earliest par redemption date. (3) 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, from redemption date to the respective maturity date, plus a specified number of basis points. The specified number of basis points is as follows: 5.375% - 40 20 35 (4) Issued by MFC during the first quarter, interest is payable semi-annually. The Company 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, from redemption date to December 16, 2031, plus 25 bps, together with accrued and unpaid interest. Issue costs are amortized over the term of the debt. (5) 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, from redemption date to two months before the respective maturity date, plus a specified number of basis points. The specified number of basis points is as follows: 2.396% - 30 30 |
Aggregate Maturities of Long-term Debt | (c) Aggregate maturities of long-term debt As at December 31 Less than 1 to 3 3 to 5 Over 5 Total 2022 $ – $ – $ 2,661 $ 3,573 $ 6,234 2021 – – 1,605 3,277 4,882 |
Capital Instruments (Tables)
Capital Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Text block [abstract] | |
Schedule of Carrying Value of Capital Instruments | (a) Carrying value of capital instruments As at December 31, Issuance date Earliest par Maturity date Par value 2022 2021 JHFC Subordinated notes (1),(2) December 14, 2006 n/a December 15, 2036 $ 650 $ 647 $ 647 2.818% MFC Subordinated debentures (1),(3) May 12, 2020 May 13, 2030 May 13, 2035 $ 1,000 996 995 4.061% MFC Subordinated notes (1),(4),(5) February 24, 2017 February 24, 2027 February 24, 2032 US$ 750 1,013 947 2.237% MFC Subordinated debentures (1),(6) May 12, 2020 May 12, 2025 May 12, 2030 $ 1,000 998 997 3.00% MFC Subordinated notes (1),(7) November 21, 2017 November 21, 2024 November 21, 2029 S$ 500 504 469 3.049% MFC Subordinated debentures (1),(8) August 18, 2017 August 20, 2024 August 20, 2029 $ 750 749 748 3.317% MFC Subordinated debentures (1),(8) May 9, 2018 May 9, 2023 May 9, 2028 $ 600 600 599 3.181% MLI Subordinated debentures (9) November 20, 2015 November 22, 2022 November 22, 2027 $ 1,000 – 999 7.375% JHUSA Surplus notes (10) February 25, 1994 n/a February 15, 2024 US$ 450 615 579 Total $ 6,122 $ 6,980 (1) The Company is monitoring regulatory and market developments globally with respect to the interest rate benchmark reform. As reference interest rates for these capital instruments could potentially be discontinued in the future, the Company will take appropriate actions in due course to accomplish the necessary transitions or replacements. As at December 31, 2022, capital instruments of $647 (2021 – $647) have interest rate referencing CDOR. In addition, capital instruments of $3,343, $1,013, and $504 (2021 – $4,338, $947, and $469, respectively) have interest rate reset in the future referencing CDOR, the USD Mid-Swap (2) 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 of the Company. The notes bear interest at a floating rate equal to the 90-day Bankers’ Acceptance rate plus 0.72%. With regulatory approval, JHFC may redeem the note, in whole or in part, at any time, at par, together with accrued and unpaid interest. Refer to note 18. (3) Issued by MFC, interest is payable semi-annually. After May 13, 2030, the interest rate will reset to equal 3-month CDOR plus 1.82%. With regulatory approval, MFC may redeem the debentures, in whole, or in part, on or after May 13, 2025, at a redemption price together with accrued and unpaid interest. If the redemption date is on or after May 13, 2025, but prior to May 13, 2030, the redemption price shall be the greater of: (i) the Canada yield price as defined in the prospectus; and (ii) par. If the redemption date is on or after May 13, 2030, the redemption price shall be equal to par. (4) On the earliest par redemption date, the interest rate will reset to equal the 5-Year Mid-Swap (5) Designated as a hedge of the Company’s net investment in its U.S. operations which reduces the earnings volatility that would otherwise arise from the re-measurement (6) Issued by MFC, interest is payable semi-annually. After May 12, 2025, the interest rate will reset to equal 3-month CDOR plus 1.49%. With regulatory approval, MFC may redeem the debentures, in whole, or in part, on or after May 12, 2025, at a redemption price equal to par, together with accrued and unpaid interest. (7) On the earliest par redemption date, the interest rate will reset to equal the 5-Year (8) 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 3-month CDOR plus a specified number of basis points. The specified number of basis points is as follows: 3.049% - 105 78 (9) MLI redeemed in full the 3.181% MLI subordinated debentures at par, on November 22, 2022, the earliest par redemption date. (10) 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$5 (2021 – US$9), 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. |
Equity Capital and Earnings P_2
Equity Capital and Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Statement [LineItems] | |
Summary of Changes in Issued and Outstanding Shares | The following table presents changes in common shares issued and outstanding. 2022 2021 For the years ended December 31, Number of shares (in millions) Amount Number of shares (in millions) Amount Balance, January 1 1,943 $ 23,093 1,940 $ 23,042 Repurchased for cancellation (79 ) (938 ) – – Issued on exercise of stock options and deferred share units 1 23 3 51 Total 1,865 $ 22,178 1,943 $ 23,093 |
Summary of Additional Information on Preferred Shares and Other Equity Instruments Outstanding | (a) Preferred shares and other equity instruments The following table presents information about the outstanding preferred shares and other equity instruments as at December 31, 2022 and 2021. As at December 31, 2022 Issue date Annual dividend/ distribution rate (1) Earliest redemption date (2),(3) Number of (in millions) Face amount Net amount (4) 2022 2021 Preferred shares Class A preferred shares Series 2 February 18, 2005 4.65% n/a 14 $ 350 $ 344 $ 344 Series 3 January 3, 2006 4.50% n/a 12 300 294 294 Class 1 preferred shares Series 3 (5),(6) March 11, 2011 2.348% June 19, 2026 7 163 160 160 Series 4 (7) June 20, 2016 floating June 19, 2026 1 37 36 36 Series 7 (8) February 22, 2012 4.312% March 19, 2022 10 250 – 244 Series 9 (5),(6),(9) May 24, 2012 5.978% September 19, 2027 10 250 244 244 Series 11 (5),(6) December 4, 2012 4.731% March 19, 2023 8 200 196 196 Series 13 (5),(6) June 21, 2013 4.414% September 19, 2023 8 200 196 196 Series 15 (5),(6) February 25, 2014 3.786% June 19, 2024 8 200 195 195 Series 17 (5),(6) August 15, 2014 3.80% December 19, 2024 14 350 343 343 Series 19 (5),(6) December 3, 2014 3.675% March 19, 2025 10 250 246 246 Series 23 (8) November 22, 2016 4.85% March 19, 2022 19 475 – 467 Series 25 (5),(6) February 20, 2018 4.70% June 19, 2023 10 250 245 245 Other equity instruments Limited recourse capital notes (10) Series 1 (11) February 19, 2021 3.375% May 19, 2026 n/a 2,000 1,982 1,982 Series 2 (11) November 12, 2021 4.100% February 19, 2027 n/a 1,200 1,189 1,189 Series 3 (11) June 16, 2022 7.117% June 19, 2027 n/a 1,000 990 – Total 131 $ 7,475 $ 6,660 $ 6,381 (1) Holders of Class A and Class 1 preferred shares are entitled to receive non-cumulative Non-deferrable (2) Redemption of all preferred shares is subject to regulatory approval. MFC may redeem each series, in whole or in part, at par, on the earliest redemption date or every five years thereafter, except for Class A Series 2, Class A Series 3 and Class 1 Series 4 preferred shares. Class A Series 2 and Series 3 preferred shares are past their respective earliest redemption date and MFC may redeem these preferred 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 preferred shares, in whole or in part, at any time, at $25.00 per share if redeemed on June 19, 2026 (the earliest redemption date) and on June 19 every five years thereafter, or at $25.50 per share if redeemed on any other date after June 19, 2021, subject to regulatory approval, as noted. (3) Redemption of all LRCN series notes is subject to regulatory approval. MFC may at its option redeem each series in whole or in part, at a redemption price equal to par, together with accrued and unpaid interest. The redemption period for Series 1 is every five years during the period from May 19 to and including June 19, commencing in 2026. The redemption period for Series 2 is every five years during the period from February 19 to and including March 19, commencing in 2027. After the first redemption date, the redemption period for Series 3 is every five years during the period from May 19 to and including June 19, commencing in 2032. (4) Net of after-tax (5) 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 preferred shares is: Series 3 – 1.41%, Series 9 – 2.86%, Series 11 – 2.61%, Series 13 – 2.22%, Series 15 – 2.16%, Series 17 – 2.36%, Series 19 – 2.30% and Series 25 – 2.55%. (6) 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 (7) The floating dividend rate for the Class 1 Series 4 preferred shares equals the three-month Government of Canada Treasury bill yield plus 1.41%. (8) MFC redeemed in full the Class 1 Series 7 and Class 1 Series 23 preferred shares at par, on March 19, 2022, which is the earliest redemption date. (9) MFC did not exercise its right to redeem all or any of the outstanding Class 1 Series 9 preferred shares on September 19, 2022, which is the earliest redemption date. The dividend rate was reset as specified in footnote 5 above to an annual fixed rate of 5.978%, for a five-year period commencing on September 20, 2022. (10) Non-payment of distributions or principal on any LRCN series notes when due will result in a recourse event. The recourse of each noteholder will be limited to their proportionate amount of the Limited Resource Trust’s assets which comprise of Class 1 Series 27 preferred shares for LRCN Series 1 notes, Class 1 Series 28 preferred shares for LRCN Series 2 notes, and Class 1 Series 29 preferred shares for LRCN Series 3 notes. All claims of the holders of LRCN series notes against MFC will be extinguished upon receipt of the corresponding trust assets. The Class 1 Series 27, Class 1 Series 28, and Class 1 Series 29 preferred shares are eliminated on consolidation while being held in the Limited Recourse Trust. (11) The LRCN Series 1 distribute at a fixed rate of 3.375% payable semi-annually, until June 18, 2026; on June 19, 2026 and every five years thereafter until June 19, 2076, the rate will be reset at a rate equal to the five-year Government of Canada yield as defined in the prospectus, plus 2.839%. The LRCN Series 2 distribute at a fixed rate of 4.10% payable semi-annually, until March 18, 2027; on March 19, 2027 and every five years thereafter until March 19, 2077, the rate will be reset at a rate equal to the five-year Government of Canada yield as defined in the prospectus, plus 2.704 |
Summary of Basic and Diluted Earnings Per Common Share | (c) Earnings per share The following table presents basic and diluted earnings per common share of the Company. For the years ended December 31, 2022 2021 Basic earnings per common share $ 3.68 $ 3.55 Diluted earnings per common share 3.68 3.54 |
Summary of Reconciliation of Denominator (Numbers of Shares) in Calculation of Basic and Diluted Earnings Per Share | The following is a reconciliation of the number of shares in the calculation of basic and diluted earnings per share. For the years ended December 31, 2022 2021 Weighted average number of common shares (in millions) 1,910 1,942 Dilutive stock-based awards (1) 3 4 Weighted average number of diluted common shares (in millions) 1,913 1,946 (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 9 million (2021 – nil million) anti-dilutive stock-based awards. |
Summary of Dividends Payable on Non-cumulative Preferred Shares | (d) Quarterly dividend declaration subsequent to year end On February 15, 2023, the Company’s Board of Directors approved a quarterly dividend of $0.365 per share on the common shares of MFC, payable on or after March 20, 2023 to shareholders of record at the close of business on February 28, 2023. The Board also declared dividends on the following non-cumulative Class A Shares Series 2 – $0.29063 per share Class 1 Shares Series 13 – $0.275875 per share Class A Shares Series 3 – $0.28125 per share Class 1 Shares Series 15 – $0.236625 per share Class 1 Shares Series 3 – $0.14675 per share Class 1 Shares Series 17 – $0.2375 per share Class 1 Shares Series 4 – $0.34089 per share Class 1 Shares Series 19 – $0.229688 per share Class 1 Shares Series 9 – $0.373625 per share Class 1 Shares Series 25 – $0.29375 per share Class 1 Shares Series 11 – $0.295688 per share |
Capital Management (Tables)
Capital Management (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Text block [abstract] | |
Schedule of Consolidated Capital | Consolidated capital As at December 31, 2022 2021 Total equity $ 56,379 $ 58,869 Exclude AOCI gain/(loss) on cash flow hedges 8 (156 ) Total equity excluding AOCI on cash flow hedges 56,371 59,025 Qualifying capital instruments 6,122 6,980 Consolidated capital $ 62,493 $ 66,005 |
Revenue from Service Contracts
Revenue from Service Contracts (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Text block [abstract] | |
Summary of Revenue from Service Contracts by Service Lines and Reporting Segments | The following tables present revenue from service contracts by service lines and reporting segments as disclosed in note 20. For the year ended December 31, 2022 Asia Canada U.S. Global Corporate Total Investment management and other related fees $ 234 $ 242 $ 445 $ 3,079 $ (250 ) $ 3,750 Transaction processing, administration, and service fees 292 866 13 2,416 (8 ) 3,579 Distribution fees and other 143 43 76 868 (44 ) 1,086 Total included in other revenue 669 1,151 534 6,363 (302 ) 8,415 Revenue from non-service 789 275 (76 ) (13 ) (226 ) 749 Total other revenue $ 1,458 $ 1,426 $ 458 $ 6,350 $ (528 ) $ 9,164 Real estate management services included in net investment income $ 35 $ 136 $ 126 $ – $ 8 $ 305 For the year ended December 31, 2021 Asia Canada U.S. Global Corporate Total Investment management and other related fees $ 217 $ 230 $ 499 $ 3,198 $ (247 ) $ 3,897 Transaction processing, administration, and service fees 287 918 12 2,517 (11 ) 3,723 Distribution fees and other 251 20 65 799 (54 ) 1,081 Total included in other revenue 755 1,168 576 6,514 (312 ) 8,701 Revenue from non-service 941 168 1,248 (1 ) 75 2,431 Total other revenue $ 1,696 $ 1,336 $ 1,824 $ 6,513 $ (237 ) $ 11,132 Real estate management services included in net investment income $ 37 $ 126 $ 128 $ – $ 7 $ 298 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Text block [abstract] | |
Schedule of Options Outstanding | Options outstanding 2022 2021 For the years ended December 31, Number of (in millions) Weighted Number of (in millions) Weighted Outstanding, January 1 21 $ 22.09 24 $ 21.74 Granted – – – – Exercised (1 ) 16.15 (3 ) 18.34 Expired – 24.63 – 24.73 Forfeited – 23.96 – 23.96 Outstanding, December 31 20 $ 22.42 21 $ 22.09 Exercisable, December 31 10 $ 20.91 8 $ 18.94 |
Schedule of Range of Exercise Prices of Outstanding Share Options | Options outstanding Options exercisable For the year ended December 31, 2022 Number of (in millions) Weighted Weighted average Number of (in millions) Weighted Weighted average $12.64—$20.99 4 $ 17.42 2.91 4 $ 17.42 2.91 $21.00—$24.83 16 $ 23.58 4.94 6 $ 23.08 2.95 Total 20 $ 22.42 4.56 10 $ 20.91 2.93 |
Schedule of Deferred Share Units | The fair value of 252,000 DSUs issued during the year was $24.15 per unit as at December 31, 2022 (2021 – 161,000 at $24.11 per unit). For the years ended December 31, Number of DSUs (in thousands) 2022 2021 Outstanding, January 1 2,079 2,169 Issued 252 161 Reinvested 126 100 Redeemed (75 ) (345 ) Forfeitures and cancellations (9 ) (6 ) Outstanding, December 31 2,373 2,079 |
Employee Future Benefits (Table
Employee Future Benefits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Text block [abstract] | |
Summary of Pension and Retiree Welfare Plans | (c) Pension and retiree welfare plans The following tables present the reconciliation of defined benefit obligation and fair value of plan assets for the pension plans and retiree welfare plans. Pension plans Retiree welfare plans For the years ended December 31, 2022 2021 2022 2021 Changes in defined benefit obligation: Opening balance $ 4,560 $ 4,901 $ 584 $ 638 Current service cost 43 44 – – Past service cost - amendment (6 ) – – – Interest cost 127 115 16 15 Plan participants’ contributions – – 3 3 Actuarial losses (gains) due to: Experience 5 3 (13 ) – Demographic assumption changes – 7 – 1 Economic assumption changes (835 ) (194 ) (112 ) (29 ) Benefits paid (299 ) (303 ) (40 ) (42 ) Impact of changes in foreign exchange rates 199 (13 ) 28 (2 ) Defined benefit obligation, December 31 $ 3,794 $ 4,560 $ 466 $ 584 Pension plans Retiree welfare plans For the years ended December 31, 2022 2021 2022 2021 Change in plan assets: Fair value of plan assets, opening balance $ 4,510 $ 4,595 $ 587 $ 606 Interest income 127 109 16 14 Return on plan assets (excluding interest income) (869 ) 70 (91 ) (1 ) Employer contributions 59 61 11 11 Plan participants’ contributions – – 3 3 Benefits paid (299 ) (303 ) (40 ) (42 ) Administration costs (11 ) (9 ) (2 ) (2 ) Impact of changes in foreign exchange rates 205 (13 ) 39 (2 ) Fair value of plan assets, December 31 $ 3,722 $ 4,510 $ 523 $ 587 |
Summary of Amounts Recognized in Consolidated Statements of Financial Position | (d) Amounts recognized in the Consolidated Statements of Financial Position The following table presents the deficit (surplus) and net defined benefit liability (asset) for the pension plans and retiree welfare plans. Pension plans Retiree welfare plans As at December 31, 2022 2021 2022 2021 Development of net defined benefit liability Defined benefit obligation $ 3,794 $ 4,560 $ 466 $ 584 Fair value of plan assets 3,722 4,510 523 587 Deficit (surplus) 72 50 (57 ) (3 ) Effect of asset limit (1) 48 37 – – Deficit (surplus) and net defined benefit liability (asset) 120 87 (57 ) (3 ) Deficit is comprised of: Funded or partially funded plans (441 ) (600 ) (168 ) (154 ) Unfunded plans 561 687 111 151 Deficit (surplus) and net defined benefit liability (asset) $ 120 $ 87 $ (57 ) $ (3 ) (1) The asset limit relates to a registered pension plan in Canada. The surplus in that plan is above the present value of economic benefits that can be derived by the Company through reductions in future contributions. For the other funded pension plans, the present value of the economic benefits available in the form of reductions in future contributions to the plans remains greater than the current surplus. |
Summary of Disaggregation of Defined Benefit Obligation | (e) Disaggregation of defined benefit obligation The following table presents components of the defined benefit obligation between active members and inactive and retired members. U.S. plans Canadian plans Pension plans Retiree welfare plans Pension plans Retiree welfare plans As at December 31, 2022 2021 2022 2021 2022 2021 2022 2021 Active members $ 509 $ 537 $ 11 $ 17 $ 125 $ 184 $ – $ – Inactive and retired members 2,006 2,371 344 416 1,154 1,468 111 151 Total $ 2,515 $ 2,908 $ 355 $ 433 $ 1,279 $ 1,652 $ 111 $ 151 |
Summary of Major Categories of Plan Assets and Actual Per Cent Allocation to Each Category | (f) Fair value measurements The following tables present major categories of plan assets and the allocation to each category. U.S. plans (1) Canadian plans (2) Pension plans Retiree welfare plans Pension plans Retiree welfare plans As at December 31, 2022 Fair value % of total Fair value % of total Fair value % of total Fair value % of total Cash and cash equivalents $ 35 1% $ 22 4% $ 9 1% $ – – Public equity securities (3) 377 15% 41 8% 233 20% – – Public debt securities 1,509 58% 445 85% 898 79% – – Other investments (4) 660 26% 15 3% 1 0% – – Total $ 2,581 100% $ 523 100% $ 1,141 100% $ – – U.S. plans (1) Canadian plans (2) Pension plans Retiree welfare plans Pension plans Retiree welfare plans As at December 31, 2021 Fair value % of total Fair value % of total Fair value % of total Fair value % of total Cash and cash equivalents $ 90 3% $ 21 4% $ 14 1% $ – – Public equity securities (3) 600 20% 57 10% 322 22% – – Public debt securities 1,863 61% 501 85% 1,144 77% – – Other investments (4) 475 16% 8 1% 2 0% – – Total $ 3,028 100% $ 587 100% $ 1,482 100% $ – – (1) The U.S. pension and retiree welfare plan assets have daily quoted prices in active markets, except for the private debt, infrastructure, private equity, real estate, timber and agriculture assets. In the aggregate, the latter assets represent approximately 15% of all U.S. pension and retiree welfare plan assets as at December 31, 2022 (2021 – 7%). (2) All the Canadian pension plan assets have daily quoted prices in active markets, except for the group annuity contract assets that represent approximately 0.1 0.1 (3) Equity securities include direct investments in MFC common shares of $1.2 (2021 – $1.2) in the U.S. retiree welfare plan and $nil (2021 – $nil) in Canada. (4) Other U.S. plan assets include investment in real estate, private debt, infrastructure, private equity, timberland and agriculture, and managed futures. 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 The following table presents components of the net benefit cost for the pension plans and retiree welfare plans. Pension plans Retiree welfare plans For the years ended December 31, 2022 2021 2022 2021 Defined benefit current service cost (1) $ 43 $ 44 $ – $ – Defined benefit administrative expenses 11 9 2 2 Past service cost-plan amendments and curtailments (6 ) – – – Service cost 48 53 2 2 Interest on net defined benefit (asset) liability 2 6 – 1 Defined benefit cost 50 59 2 3 Defined contribution cost 85 90 – – Net benefit cost $ 135 $ 149 $ 2 $ 3 (1) There are no significant current service costs for the retiree welfare plans as they are closed and mostly frozen. The remeasurement gain or loss on these plans is due to the volatility of discount rates and investment returns. |
Summary of Re-measurement Effects Recognized in Other Comprehensive Income | (h) Re-measurement The following table presents components of the re-measurement effects recognized in Other Comprehensive Income for the pension plans and retiree welfare plans. Pension plans Retiree welfare plans For the years ended December 31, 2022 2021 2022 2021 Actuarial gains (losses) on defined benefit obligations due to: Experience $ (5 ) $ (3 ) $ 13 $ – Demographic assumption changes – (7 ) – (1 ) Economic assumption changes 835 194 112 29 Return on plan assets (excluding interest income) (869 ) 70 (91 ) (1 ) Change in effect of asset limit (excluding interest) (10 ) (37 ) – – Total re-measurement $ (49 ) $ 217 $ 34 $ 27 |
Summary of Key Assumptions Used by to Determine Defined Benefit Obligation and Net Benefit Cost for Defined Benefit Pension Plans and Retiree Welfare Plans | The following table presents 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. U.S. Plans Canadian Plans Pension plans Retiree welfare plans Pension plans Retiree welfare plans For the years ended December 31, 2022 2021 2022 2021 2022 2021 2022 2021 To determine the defined benefit obligation at end of year (1) Discount rate 5.0% 2.7% 5.0% 2.7% 5.3% 3.1% 5.3% 3.2% Initial health care cost trend rate (2) n/a n/a 7.8% 7.0% n/a n/a 5.3% 5.4% To determine the defined benefit cost for the year (1) Discount rate 2.7% 2.4% 2.7% 2.4% 3.1% 2.5% 3.2% 2.6% Initial health care cost trend rate (2) n/a n/a 7.0% 7.3% n/a n/a 5.4% 5.5% (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 7.8% grading to 4.8% for 2035 and years thereafter (2021 – 7.0% grading to 4.5% for 2032) and to measure the net benefit cost was 7.0% grading to 4.5% for 2032 and years thereafter (2021 – 7.3% grading to 4.5% for 2032). In Canada, the rate used to measure the retiree welfare obligation was 5.3% grading to 4.8% for 2026 and years thereafter (2021 – 5.4% grading to 4.8% for 2026) and to measure the net benefit cost was 5.4% grading to 4.8% for 2026 and years thereafter (2021 – 5.5% grading to 4.8% for 2026). |
Summary of Life Expectancies Underlying Values of Obligations in Defined Benefit Pension and Retiree Welfare Plans | The following table presents current life expectancies underlying the values of the obligations in the defined benefit pension and retiree welfare plans. As at December 31, 2022 U.S. Canada Life expectancy (in years) for those currently age 65 Males 22.1 23.9 Females 23.6 25.7 Life expectancy (in years) at age 65 for those currently age 45 Males 23.5 24.8 Females 25.0 26.6 |
Summary of Potential Impact on Obligations Arising From Changes in Key Assumptions | The following table sets out the potential impact on the obligations arising from changes in the key assumptions. The sensitivities assume all other assumptions are held constant. In actuality, inter-relationships with other assumptions may exist. As at December 31, 2022 Pension plans Retiree welfare plans Discount rate: Impact of a 1% increase $ (279 ) $ (39 ) Impact of a 1% decrease 322 45 Health care cost trend rate: Impact of a 1% increase n/a 10 Impact of a 1% decrease n/a (9 ) Mortality rates (1) Impact of a 10% decrease 93 8 (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 years for Canadian males, respectively. |
Summary of Weighted Average Duration of the Defined Benefit Obligations | (k) Maturity profile The following table presents weighted average duration (in years) of the defined benefit obligations. Pension plans Retiree welfare plans As at December 31, 2022 2021 2022 2021 U.S. plans 8.2 9.7 8.2 9.5 Canadian plans 10.6 12.4 11.1 13.3 |
Summary of Cash Payments | (l) Cash flows – contributions The following table presents 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. Pension plans Retiree welfare plans For the years ended December 31, 2022 2021 2022 2021 Defined benefit plans $ 59 $ 61 $ 11 $ 11 Defined contribution plans 85 90 – – Total $ 144 $ 151 $ 11 $ 11 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Text block [abstract] | |
Components of Income Tax Expense (Recovery) Recognized | The following table presents i For the years ended December 31, 2022 2021 Current tax Current year $ 1,097 $ 1,390 Adjustments related to prior years (263 ) (50 ) Total current tax 834 1,340 Deferred tax Change related to temporary differences 706 (139 ) Adjustments related to prior years 226 12 Effects of change in Canada (201 ) – Total deferred tax 731 (127 ) Income tax expense $ 1,565 $ 1,213 The following table discloses income tax expense (recovery) recognized directly in equity. For the years ended December 31, 2022 2021 Recognized in other comprehensive income Current income tax expense (recovery) $ (323 ) $ (3 ) Deferred income tax expense (recovery) (863 ) (61 ) Total recognized in other comprehensive income $ (1,186 ) $ (64 ) Recognized in equity, other than other comprehensive income Current income tax expense (recovery) $ 5 $ 5 Deferred income tax expense (recovery) (8 ) (15 ) Total income tax recognized directly in equity $ (3 ) $ (10 ) |
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 27.50 per cent for the year ended December 31, 2022 (2021 – 26.50 per cent) for the items outlined in the following table. The Canadian tax rate became substantively enacted in December 2022 with an effective date For the years ended December 31, 2022 2021 Income before income taxes $ 8,747 $ 8,125 Income tax expense at Canadian statutory tax rate $ 2,406 $ 2,153 Increase (decrease) in income taxes due to: Tax-exempt (214 (261 ) Differences in tax rate on income not subject to tax in Canada (835 (917 ) Adjustments to taxes related to prior years (37 (38 ) Tax losses and temporary differences not recognized as deferred taxes 86 53 Tax rate change in Canada (201 – Other differences 360 223 Income tax expense $ 1,565 $ 1,213 |
Summary of Deferred Tax Assets and Liabilities | The following table presents the Company’s deferred tax assets and liabilities reflected on the Consolidated Statement of Financial Position. As at December, 31 2022 2021 Deferred tax assets $ 5,423 $ 5,254 Deferred tax liabilities (2,774 ) (2,769 ) Net deferred tax assets (liabilities) $ 2,649 $ 2,485 |
Components of Deferred Tax Assets and Liabilties | The following table presents movement of deferred tax assets and liabilities. As at December 31, 2022 Balance, Disposals Recognized in Recognized in Other Recognized Translation Balance, Loss carryforwards $ 517 $ – $ 184 $ – $ – $ – $ 701 Actuarial liabilities 8,703 – (5,537 ) – 1 374 3,541 Pensions and post-employment benefits 161 – (1 ) (17 ) – – 143 Tax credits 46 – 63 – – – 109 Accrued interest 1 – – – – – 1 Real estate (1,171 ) – (20 ) (1 ) – (36 (1,228 Securities and other investments (5,139 ) – 4,552 879 (1 ) (250 41 Sale of investments (40 ) – 10 – – – (30 Goodwill and intangible assets (804 ) – (4 ) – – (17 ) (825 Other 211 – 22 2 8 (47 ) 196 Total $ 2,485 $ – $ (731 ) $ 863 $ 8 $ 24 $ 2,649 As at December 31, 2021 Balance, Disposals Recognized Recognized in Other Recognized Translation Balance, Loss carryforwards $ 497 $ (10 ) $ 22 $ – $ – $ 8 $ 517 Actuarial liabilities 9,372 – (666 ) – – (3 ) 8,703 Pensions and post-employment benefits 215 – 7 (61 ) – – 161 Tax credits 34 – 11 1 – – 46 Accrued interest 1 – – – – – 1 Real estate (1,033 ) – (145 ) – – 7 (1,171 ) Securities and other investments (5,950 ) – 643 119 – 49 (5,139 ) Sale of investments (56 ) – 16 – – – (40 ) Goodwill and intangible assets (849 ) – 29 – – 16 (804 ) Other (3 ) 1 210 2 15 (14 ) 211 Total $ 2,228 $ (9 ) $ 127 $ 61 $ 15 $ 63 $ 2,485 |
Interests in Structured Entit_2
Interests in Structured Entities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments accounted for using equity method [abstract] | |
Schedule Investment and Maximum Exposure to Loss Related to Significant Unconsolidated Structured Entities | The following table presents the Company’s investments 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, 2022 2021 2022 2021 Leveraged leases (3) $ 3,840 $ 3,457 $ 3,840 $ 3,457 Timberland companies (4) 816 842 816 842 Real estate companies (5) 465 513 465 513 Total $ 5,121 $ 4,812 $ 5,121 $ 4,812 (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 19. The maximum loss is expected to occur only upon the entity’s bankruptcy/liquidation, or in case 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 Company’s interests in and maximum exposure to loss from significant unconsolidated financing SEs are as follows. Company’s interests (1) As at December 31, 2022 2021 Manulife Finance (Delaware), L.P. (2) $ 691 $ 850 Total $ 691 $ 850 (1) The Company’s interests include amounts borrowed from the SE; the Company’s investment in its equity and subordinated capital; and foreign currency and interest rate swaps with it. (2) This entity is a wholly owned partnership used to facilitate the Company’s financing. Refer to notes 11 and 19. |
Schedule of Securitized Holdings by Type and Asset Quality | The following table presents investments in securitized holdings by the type and asset quality. 2022 2021 As at December 31, CMBS RMBS ABS Total Total AAA $ 675 $ 5 $ 1,095 $ 1,775 $ 2,346 AA – 3 6 9 11 A 56 – 534 590 641 BBB – – 232 232 227 BB and below – – 3 3 4 Total company exposure $ 731 $ 8 $ 1,870 $ 2,609 $ 3,229 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Text block [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, 2022 MFC Other Consolidation Total MFLP Total revenue $ 518 $ 17,732 $ (1,103) $ 17,147 $ 64 Net income (loss) attributed to shareholders 7,294 7,071 (7,071) 7,294 21 For the year ended December 31, 2021 MFC Other Consolidation Total MFLP Total revenue $ 563 $ 62,323 $ (1,065) $ 61,821 $ 41 Net income (loss) attributed to shareholders 7,105 6,842 (6,842) 7,105 3 |
Summary of Condensed Consolidated Statements of Financial Position for MFC and MFLP | Condensed Consolidated Statements of Financial Position As at December 31, 2022 MFC Other on a Consolidation Total MFLP Invested assets $ 63 $ 413,938 $ – $ 414,001 $ 21 Total other assets 67,543 90,687 (71,852 ) 86,378 950 Segregated funds net assets – 348,562 – 348,562 – Insurance contract liabilities – 371,405 – 371,405 – Investment contract liabilities – 3,248 – 3,248 – Segregated funds net liabilities – 348,562 – 348,562 – Total other liabilities 11,545 58,246 (444 ) 69,347 712 As at December 31, 2021 MFC Other on a Consolidation Total MFLP Invested assets $ 78 $ 427,020 $ – $ 427,098 $ 3 Total other assets 68,866 94,615 (72,724) 90,757 1,088 Segregated funds net assets – 399,788 – 399,788 – Insurance contract liabilities – 392,275 – 392,275 – Investment contract liabilities – 3,117 – 3,117 – Segregated funds net liabilities – 399,788 – 399,788 – Total other liabilities 10,536 53,962 (904 ) 63,594 852 |
Schedule of Pledged Assets | The amounts pledged are as follows. 2022 2021 As at December 31, Debt securities Other Debt securities Other In respect of: Derivatives $ 11,944 $ 23 $ 5,525 $ 23 Secured borrowings – 2,385 – 2,575 Regulatory requirements 320 77 367 78 Repurchase agreements 886 – 535 – Non-registered – 326 – 377 Other – 404 2 414 Total $ 13,150 $ 3,215 $ 6,429 $ 3,467 |
Segmented Information (Tables)
Segmented Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Text block [abstract] | |
Summary of Results by Segments | The following table presents results by reporting segments. As at and for the year ended December 31, 2022 Asia Canada U.S. Global WAM Corporate Total Revenue Life and health insurance $ 18,690 $ 9,945 $ 6,579 $ – $ 269 $ 35,483 Annuities and pensions 2,786 447 (863 ) – – 2,370 Net premium income 21,476 10,392 5,716 – 269 37,853 Net investment income (loss) (7,972 ) (7,911 ) (13,003 ) (39 ) (945 ) (29,870 ) Other revenue 1,458 1,426 458 6,350 (528 ) 9,164 Total revenue 14,962 3,907 (6,829 ) 6,311 (1,204 ) 17,147 Contract benefits and expenses Life and health insurance 4,976 5,945 (11,868 ) – 431 (516 ) Annuities and pensions 2,667 (8,738 ) (2,753 ) 41 – (8,783 ) Net benefits and claims 7,643 (2,793 ) (14,621 ) 41 431 (9,299 ) Interest expense 234 573 67 7 469 1,350 Other expenses 5,024 3,506 2,847 4,717 255 16,349 Total contract benefits and expenses 12,901 1,286 (11,707 ) 4,765 1,155 8,400 Income (loss) before income taxes 2,061 2,621 4,878 1,546 (2,359 ) 8,747 Income tax recovery (expense) (308 ) (777 ) (886 ) (223 ) 629 (1,565 ) Net income (loss) 1,753 1,844 3,992 1,323 (1,730 ) 7,182 Less net income (loss) attributed to: Non-controlling (4 ) – – 2 1 (1 ) Participating policyholders (467 ) 314 42 – – (111 ) Net income (loss) attributed to shareholders $ 2,224 $ 1,530 $ 3,950 $ 1,321 $ (1,731 ) $ 7,294 Total assets $ 158,036 $ 155,049 $ 267,653 $ 231,154 $ 37,049 $ 848,941 As at and for the year ended December 31, 2021 Asia Canada U.S. Global WAM Corporate Total Revenue Life and health insurance $ 20,428 $ 9,217 $ 6,338 $ – $ 147 $ 36,130 Annuities and pensions 2,558 344 33 – – 2,935 Net premium income 22,986 9,561 6,371 – 147 39,065 Net investment income (loss) 4,889 1,469 5,061 28 177 11,624 Other revenue 1,696 1,336 1,824 6,513 (237 ) 11,132 Total revenue 29,571 12,366 13,256 6,541 87 61,821 Contract benefits and expenses Life and health insurance 18,240 10,276 9,307 – 159 37,982 Annuities and pensions 2,638 (3,371 ) (1,528 ) 101 – (2,160 ) Net benefits and claims 20,878 6,905 7,779 101 159 35,822 Interest expense 232 269 47 1 462 1,011 Other expenses 5,273 3,401 2,947 4,798 444 16,863 Total contract benefits and expenses 26,383 10,575 10,773 4,900 1,065 53,696 Income (loss) before income taxes 3,188 1,791 2,483 1,641 (978 ) 8,125 Income tax recovery (expense) (445 ) (336 ) (385 ) (233 ) 186 (1,213 ) Net income (loss) 2,743 1,455 2,098 1,408 (792 ) 6,912 Less net income (loss) attributed to: Non-controlling 253 – – 2 – 255 Participating policyholders (567 ) 101 18 – – (448 ) Net income (loss) attributed to shareholders $ 3,057 $ 1,354 $ 2,080 $ 1,406 $ (792 ) $ 7,105 Total assets $ 162,970 $ 169,736 $ 290,838 $ 259,363 $ 34,736 $ 917,643 |
Summary of Results by Geographic Location | The following table presents results by geographical location. For the year ended December 31, 2022 Asia Canada U.S. Other Total Revenue Life and health insurance $ 18,786 $ 9,615 $ 6,580 $ 502 $ 35,483 Annuities and pensions 2,786 447 (863 ) – 2,370 Net premium income 21,572 10,062 5,717 502 37,853 Net investment income (loss) (8,468 ) (8,435 ) (13,288 ) 321 (29,870 ) Other revenue 2,702 3,246 3,217 (1 ) 9,164 Total revenue $ 15,806 $ 4,873 $ (4,354 ) $ 822 $ 17,147 For the year ended December 31, 2021 Asia Canada U.S. Other Total Revenue Life and health insurance $ 20,515 $ 8,905 $ 6,340 $ 370 $ 36,130 Annuities and pensions 2,558 344 33 – 2,935 Net premium income 23,073 9,249 6,373 370 39,065 Net investment income (loss) 5,313 1,255 4,830 226 11,624 Other revenue 2,818 3,363 4,952 (1 ) 11,132 Total revenue $ 31,204 $ 13,867 $ 16,155 $ 595 $ 61,821 |
Related Parties (Tables)
Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Text block [abstract] | |
Summary of Compensation of Key Management Personnel | A summary of compensation of key management personnel is as follows. For the years ended December 31, 2022 2021 Short-term employee benefits $ 73 $ 65 Post-employment benefits 6 5 Share-based payments 73 57 Termination benefits – – Other long-term benefits 3 2 Total $ 155 $ 129 |
Subsidiaries (Tables)
Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments accounted for using equity method [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, 2022 (100% owned unless otherwise noted in brackets beside company name) Equity Address Description The Manufacturers Life Insurance Company $ 65,848 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 $ 21,640 Calgary, Canada Holding company John Hancock Financial Corporation Boston, U.S.A. Holding company The Manufacturers Investment Corporation Boston, U.S.A. Holding company John Hancock Reassurance Company Ltd. Boston, 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.) Boston, U.S.A. U.S. life insurance company licensed in all states, except New York John Hancock Subsidiaries LLC Boston, U.S.A. Holding company John Hancock Financial Network, Inc. Boston, U.S.A. Financial services distribution organization John Hancock Investment Management LLC Boston, U.S.A. Investment advisor John Hancock Investment Management Distributors LLC Boston, U.S.A. Broker-dealer Manulife Investment Management (US) LLC Boston, U.S.A. Investment advisor Manulife Investment Management Timberland and Agriculture Inc. Boston, 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 Variable Trust Advisers LLC Boston, U.S.A. Investment advisor for open-end mutual funds John Hancock Life & Health Insurance Company Boston, U.S.A. U.S. life insurance company licensed in all states John Hancock Distributors LLC Boston, U.S.A. Broker-dealer John Hancock Insurance Agency, Inc. Boston, 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 $ 1,788 Waterloo, Canada Provides integrated banking products and service options not available from an insurance company Manulife Investment Management Holdings (Canada) Inc. $ 1,179 Toronto, Canada Holding company Manulife Investment Management Limited Toronto, Canada Provides investment counseling, portfolio and mutual fund management in Canada First North American Insurance Company $ 7 Toronto, Canada Property and casualty insurance company Manulife Securities Investment Services Inc. $ 80 Oakville, Canada Mutual fund dealer for Canadian operations Manulife Holdings (Bermuda) Limited $ 22,841 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 As at December 31, 2022 (100% owned unless otherwise noted in brackets beside company name) Equity Address Description Manulife (Cambodia) PLC Phnom Penh, Cambodia Life insurance company Manulife Myanmar Life Insurance Company Limited Yangon, Myanmar 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 Investment Fund 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 Investment Management International Holdings Limited Hong Kong, China Holding company Manulife Investment Management (Hong Kong) Limited Hong Kong, China Investment management and advisory company marketing mutual funds Manulife Investment Management (Taiwan) Co., Ltd. Taipei, Taiwan (China) Investment management company Manulife Life Insurance Company (Japan) Tokyo, Japan Life insurance company Manulife Investment Management (Japan) Limited Tokyo, Japan Investment management and advisory company and mutual fund business Manulife Holdings Berhad (61.6%) Kuala Lumpur, Malaysia Holding company Manulife Insurance Berhad (61.6%) Kuala Lumpur, Malaysia Life insurance company Manulife Investment Management (Malaysia) Berhad (61.6%) Kuala Lumpur, Malaysia Asset management company Manulife (Singapore) Pte. Ltd. Singapore Life insurance company Manulife Investment 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 and investment advisor Manulife TEDA Fund Management Co., Ltd Beijing, China Mutual fund company in China Manulife Investment Management (Europe) Limited $ 34 London, England Investment management company for Manulife Financial’s international funds Manulife Assurance Company of Canada $ 64 Toronto, Canada Life insurance company EIS Services (Bermuda) Limited $ 902 Hamilton, Bermuda Investment holding company Berkshire Insurance Services Inc. $ 1,868 Toronto, Canada Investment holding company JH Investments (Delaware) LLC Boston, U.S.A. Investment holding company Manulife Securities Incorporated $ 151 Oakville, Canada Investment dealer Manulife Investment Management (North America) Limited $ 4 Toronto, Canada Investment advisor |
Segregated Funds (Tables)
Segregated Funds (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Text block [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, 2022 and 2021. Ranges in per cent Type of fund 2022 2021 Money market funds 2% to 3% 2% to 3% Fixed income funds 13% to 14% 14% to 15% Balanced funds 22% to 23% 22% to 23% Equity funds 61% to 62% 60% to 62% |
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, 2022 2021 Investments at market value Cash and short-term securities $ 4,280 $ 3,955 Debt securities 15,270 18,651 Equities 15,499 16,844 Mutual funds 308,707 354,882 Other investments 4,293 4,613 Accrued investment income 1,680 2,340 Other assets and liabilities, net (796 ) (1,089 ) Total segregated funds net assets $ 348,933 $ 400,196 Composition of segregated funds net assets Held by policyholders $ 348,562 $ 399,788 Held by the Company 371 408 Total segregated funds net assets $ 348,933 $ 400,196 |
Summary of Changes in Segregated Funds Net Assets | Changes in segregated funds net assets For the years ended December 31, 2022 2021 Net policyholder cash flows Deposits from policyholders $ 42,427 $ 44,548 Net transfers to general fund (1,267 ) (732 ) Payments to policyholders (46,333 ) (52,182 ) (5,173 ) (8,366 ) Investment related Interest and dividends 21,900 24,092 Net realized and unrealized investment gains (losses) (78,017 ) 21,549 (56,117 ) 45,641 Other Management and administration fees (3,886 ) (4,115 ) Impact of changes in foreign exchange rates 13,913 (773 ) 10,027 (4,888 ) Net additions (deductions) (51,263 ) 32,387 Segregated funds net assets, beginning of year 400,196 367,809 Segregated funds net assets, end of year $ 348,933 $ 400,196 |
Information Provided in Conne_2
Information Provided in Connection with Investments in Deferred Annuity Contracts and SignatureNotes Issued or Assumed by John Hancock Life Insurance Company (U.S.A.) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Text block [abstract] | |
Condensed Consolidated Statement of Financial Position | Condensed Consolidated Statement of Financial Position As at December 31, 2022 MFC JHUSA Other Consolidation Consolidated Assets Invested assets $ 63 $ 116,463 $ 297,996 $ (521 ) $ 414,001 Investments in unconsolidated subsidiaries 67,209 8,819 22,053 (98,081 ) – Reinsurance assets – 61,511 12,137 (25,936 ) 47,712 Other assets 334 9,456 48,135 (19,259 ) 38,666 Segregated funds net assets – 173,417 177,361 (2,216 ) 348,562 Total assets $ 67,606 $ 369,666 $ 557,682 $ (146,013 ) $ 848,941 Liabilities and equity Insurance contract liabilities $ – $ 156,205 $ 241,830 $ (26,630 ) $ 371,405 Investment contract liabilities – 1,418 1,830 – 3,248 Other liabilities 451 20,159 55,304 (18,923 ) 56,991 Long-term debt 6,234 – – – 6,234 Capital instruments 4,860 614 648 – 6,122 Segregated funds net liabilities – 173,417 177,361 (2,216 ) 348,562 Shareholders’ and other equity holders’ equity 56,061 17,853 80,391 (98,244 ) 56,061 Participating policyholders’ equity – – (1,346 ) – (1,346 ) Non-controlling – – 1,664 – 1,664 Total liabilities and equity $ 67,606 $ 369,666 $ 557,682 $ (146,013 ) $ 848,941 Condensed Consolidated Statement of Financial Position As at December 31, 2021 MFC JHUSA Other Consolidation Consolidated Assets Invested assets $ 78 $ 116,705 $ 310,679 $ (364 ) $ 427,098 Investments in unconsolidated subsidiaries 68,655 9,107 20,788 (98,550 ) – Reinsurance assets – 63,838 11,309 (30,568 ) 44,579 Other assets 211 18,085 49,956 (22,074 ) 46,178 Segregated funds net assets – 204,493 197,220 (1,925 ) 399,788 Total assets $ 68,944 $ 412,228 $ 589,952 $ (153,481 ) $ 917,643 Liabilities and equity Insurance contract liabilities $ – $ 166,535 $ 257,044 $ (31,304 ) $ 392,275 Investment contract liabilities – 1,227 1,890 – 3,117 Other liabilities 899 21,806 50,836 (21,809 ) 51,732 Long-term debt 4,882 – – – 4,882 Capital instruments 4,755 579 1,646 – 6,980 Segregated funds net liabilities – 204,493 197,220 (1,925 ) 399,788 Shareholders’ and other equity holders’ equity 58,408 17,588 80,855 (98,443 ) 58,408 Participating policyholders’ equity – – (1,233 ) – (1,233 ) Non-controlling – – 1,694 – 1,694 Total liabilities and equity $ 68,944 $ 412,228 $ 589,952 $ (153,481 ) $ 917,643 |
Condensed Consolidated Statement of Income | Condensed Consolidated Statement of Income For the year ended December 31, 2022 MFC JHUSA Other Consolidation Consolidated Revenue Gross premiums $ – $ 7,924 $ 37,041 $ (863 ) $ 44,102 Premiums ceded to reinsurers – (2,561 ) (4,662 ) 974 (6,249 ) Net premium income – 5,363 32,379 111 37,853 Net investment income (loss) 554 (9,714 ) (19,446 ) (1,264 ) (29,870 ) Other revenue (36 ) 281 7,871 1,048 9,164 Total revenue 518 (4,070 ) 20,804 (105 ) 17,147 Contract benefits and expenses Net benefits and claims – (8,505 ) (1,572 ) 778 (9,299 ) Commissions, investment and general expenses 42 3,099 13,798 (1,034 ) 15,905 Other expenses 440 264 939 151 1,794 Total contract benefits and expenses 482 (5,142 ) 13,165 (105 ) 8,400 Income (loss) before income taxes 36 1,072 7,639 – 8,747 Income tax (expense) recovery 32 (23 ) (1,574 ) – (1,565 ) Income (loss) after income taxes 68 1,049 6,065 – 7,182 Equity in net income (loss) of unconsolidated subsidiaries 7,226 997 2,046 (10,269 ) – Net income (loss) $ 7,294 $ 2,046 $ 8,111 $ (10,269 ) $ 7,182 Net income (loss) attributed to: Non-controlling $ – $ – $ (1 ) $ – $ (1 ) Participating policyholders – (236 ) 125 – (111 ) Shareholders and other equity holders 7,294 2,282 7,987 (10,269 ) 7,294 $ 7,294 $ 2,046 $ 8,111 $ (10,269 ) $ 7,182 Condensed Consolidated Statement of Income For the year ended December 31, 2021 MFC JHUSA Other Consolidation Consolidated Revenue Gross premiums $ – $ 7,782 $ 37,563 $ (1,001 ) $ 44,344 Premiums ceded to reinsurers – (3,243 ) (3,031 ) 995 (5,279 ) Net premium income – 4,539 34,532 (6 ) 39,065 Net investment income (loss) 530 3,779 8,440 (1,125 ) 11,624 Other revenue 33 2,042 9,605 (548 ) 11,132 Total revenue 563 10,360 52,577 (1,679 ) 61,821 Contract benefits and expenses Net benefits and claims – 6,478 28,467 877 35,822 Commissions, investment and general expenses 12 3,451 14,419 (1,436 ) 16,446 Other expenses 390 212 1,946 (1,120 ) 1,428 Total contract benefits and expenses 402 10,141 44,832 (1,679 ) 53,696 Income (loss) before income taxes 161 219 7,745 – 8,125 Income tax (expense) recovery (28 ) 115 (1,300 ) – (1,213 ) Income (loss) after income taxes 133 334 6,445 – 6,912 Equity in net income (loss) of unconsolidated subsidiaries 6,972 1,218 1,552 (9,742 ) – Net income (loss) $ 7,105 $ 1,552 $ 7,997 $ (9,742 ) $ 6,912 Net income (loss) attributed to: Non-controlling $ – $ – $ 255 $ – $ 255 Participating policyholders – (4 ) (448 ) 4 (448 ) Shareholders 7,105 1,556 8,190 (9,746 ) 7,105 $ 7,105 $ 1,552 $ 7,997 $ (9,742 ) $ 6,912 |
Consolidated Statement of Cash Flows | Consolidated Statement of Cash Flows For the year ended December 31, 2022 MFC (Guarantor) JHUSA (Issuer) Other subsidiaries Consolidation adjustments Consolidated MFC Operating activities Net income (loss) $ 7,294 $ 2,046 $ 8,111 $ (10,269 ) $ 7,182 Adjustments: Equity in net income of unconsolidated subsidiaries (7,226 ) (997 ) (2,046 ) 10,269 – Increase (decrease) in insurance contract liabilities – (20,032 ) (13,381 ) – (33,413 ) Increase (decrease) in investment contract liabilities – 44 (3 ) – 41 (Increase) decrease in reinsurance assets excluding coinsurance transactions – 6,869 (6,710 ) – 159 Amortization of (premium) discount on invested assets – 46 (78 ) – (32 ) Other amortization 9 125 404 – 538 Net realized and unrealized (gains) losses and impairment on assets (36 ) 15,150 32,156 – 47,270 Gain on U.S. variable annuity reinsurance transaction (pre-tax) – (1,026 ) (44 ) – (1,070 ) Gain on derecognition of Joint Venture interest during Manulife TEDA acquisition (pre-tax) – – (95 ) – (95 ) Deferred income tax expense (recovery) (33 ) 294 470 – 731 Stock option expense – (3 ) 8 – 5 Cash provided by (used in) operating activities before undernoted items 8 2,516 18,792 – 21,316 Dividends from unconsolidated subsidiary 6,200 399 734 (7,333 ) – Cash decrease due to U.S. variable annuity reinsurance transaction – (1,263 ) (114 ) – (1,377 ) Changes in policy related and operating receivables and payables 45 2,805 (5,054 ) – (2,204 ) Cash provided by (used in) operating activities 6,253 4,457 14,358 (7,333 ) 17,735 Investing activities Purchases and mortgage advances – (28,798 ) (82,970 ) – (111,768) Disposals and repayments 1 23,505 69,901 – 93,407 Changes in investment broker net receivables and payables – (11 ) (56 ) – (67 ) Net cash increase (decrease) from sale (purchase) of subsidiary – – (182 ) – (182 ) Investment in common shares of subsidiaries (2,479 ) – – 2,479 – Capital contribution to unconsolidated subsidiaries – (1 ) – 1 – Return of capital from unconsolidated subsidiaries – 19 – (19 ) – Notes receivable from parent – – 415 (415 ) – Notes receivable from subsidiaries 46 (7 ) – (39 ) – Cash provided by (used in) investing activities (2,432 ) (5,293 ) (12,892 ) 2,007 (18,610 ) Financing activities Issue of long-term debt, net 946 – – – 946 Redemption of capital instruments – – (1,000 ) – (1,000 ) Secured borrowings – – 437 – 437 Change in repurchase agreements and securities sold but not yet purchased – – (551 ) – (551 ) Changes in deposits from Bank clients, net – – 1,703 – 1,703 Lease payments – (5 ) (115 ) – (120 ) Shareholders’ dividends and other equity distributions (2,787 ) – – – (2,787 ) Common shares repurchased (1,884 ) – – – (1,884 ) Common shares issued, net 23 – 2,479 (2,479 ) 23 Preferred shares and other equity issued, net 990 – – – 990 Preferred shares redeemed, net (711 ) – – – (711 ) Contributions from (distributions to) non-controlling – – (51 ) – (51 ) Dividends paid to parent – (734 ) (6,599 ) 7,333 – Capital contributions by parent – – 1 (1 ) – Return of capital to parent – – (19 ) 19 – Notes payable to parent – – (39 ) 39 – Notes payable to subsidiaries (415 ) – – 415 – Cash provided by (used in) financing activities (3,838 ) (739 ) (3,754 ) 5,326 (3,005 ) Cash and short-term securities Increase (decrease) during the year (17 ) (1,575 ) (2,288 ) – (3,880 ) Effect of foreign exchange rate changes on cash and short-term securities 2 225 358 – 585 Balance, beginning of year 78 3,565 18,287 – 21,930 Balance, end of year 63 2,215 16,357 – 18,635 Cash and short-term securities Beginning of year Gross cash and short-term securities 78 4,087 18,429 – 22,594 Net payments in transit, included in other liabilities – (522 ) (142 ) – (664 ) Net cash and short-term securities, beginning of year 78 3,565 18,287 – 21,930 End of year Gross cash and short-term securities 63 2,614 16,476 – 19,153 Net payments in transit, included in other liabilities – (399 ) (119 ) – (518 ) Net cash and short-term securities, end of year $ 63 $ 2,215 $ 16,357 $ – $ 18,635 Supplemental disclosures on cash flow information: Interest received $ 512 $ 4,050 $ 8,732 $ (1,161 ) $ 12,133 Interest paid 424 118 1,867 (1,161 ) 1,248 Income taxes paid – 124 1,114 – 1,238 Consolidated Statement of Cash Flows For the year ended December 31, 2021 MFC (Guarantor) JHUSA (Issuer) Other subsidiaries Consolidation adjustments Consolidated MFC Operating activities Net income (loss) $ 7,105 $ 1,552 $ 7,997 $ (9,742 ) $ 6,912 Adjustments: Equity in net income of unconsolidated subsidiaries (6,972 ) (1,218 ) (1,552 ) 9,742 – Increase (decrease) in insurance contract liabilities – (562 ) 11,281 – 10,719 Increase (decrease) in investment contract liabilities – 50 (6 ) – 44 (Increase) decrease in reinsurance assets excluding coinsurance transactions – 1,544 (790 ) – 754 Amortization of (premium) discount on invested assets – 57 124 – 181 Other amortization 16 124 389 – 529 Net realized and unrealized (gains) losses and impairment on assets 62 1,533 3,229 – 4,824 Deferred income tax expense (recovery) 34 190 (351 ) – (127 ) Stock option expense – (2 ) 11 – 9 Cash provided by (used in) operating activities before undernoted items 245 3,268 20,332 – 23,845 Dividends from unconsolidated subsidiary 5,000 489 742 (6,231 ) – Changes in policy related and operating receivables and payables (22 ) 424 (1,092 ) – (690 ) Cash provided by (used in) operating activities 5,223 4,181 19,982 (6,231 ) 23,155 Investing activities Purchases and mortgage advances – (31,746 ) (89,219 ) – (120,965 ) Disposals and repayments – 27,194 69,534 – 96,728 Changes in investment broker net receivables and payables – (202 ) 16 – (186 ) Investment in common shares of subsidiaries (3,700 ) – – 3,700 – Net cash flows from acquisition and disposal of subsidiaries and businesses – – (19 ) – (19 ) Capital contribution to unconsolidated subsidiaries – (1 ) – 1 – Return of capital from unconsolidated subsidiaries – 1 – (1 ) – Notes receivable from parent – – (129 ) 129 – Notes receivable from subsidiaries (13 ) – – 13 – Cash provided by (used in) investing activities (3,713 ) (4,754 ) (19,817 ) 3,842 (24,442 ) Financing activities Redemption of long-term debt (1,250 ) – – – (1,250 ) Redemption of capital instruments (468 ) – (350 ) – (818 ) Secured borrowings – – 26 – 26 Change in repurchase agreements and securities sold but not yet purchased – – 186 – 186 Changes in deposits from Bank clients, net – – (164 ) – (164 ) Lease payments – (7 ) (117 ) – (124 ) Shareholders’ dividends and other equity distributions (2,500 ) – – – (2,500 ) Contributions from (distributions to) non-controlling – – (13 ) – (13 ) Common shares issued, net 51 – 3,700 (3,700 ) 51 Preferred shares and other equity issued, net 3,171 – – – 3,171 Preferred shares redeemed, net (612 ) – – – (612 ) Dividends paid to parent – (742 ) (5,489 ) 6,231 – Capital contributions by parent – – 1 (1 ) – Return of capital to parent – – (1 ) 1 – Notes payable to parent – – 13 (13 ) – Notes payable to subsidiaries 129 – – (129 ) – Cash provided by (used in) financing activities (1,479 ) (749 ) (2,208 ) 2,389 (2,047 ) Cash and short-term securities Increase (decrease) during the year 31 (1,322 ) (2,043 ) – (3,334 ) Effect of foreign exchange rate changes on cash and short-term securities – (20 ) (299 ) – (319 ) Balance, beginning of year 47 4,907 20,629 – 25,583 Balance, end of year 78 3,565 18,287 – 21,930 Cash and short-term securities Beginning of year Gross cash and short-term securities 47 5,213 20,907 – 26,167 Net payments in transit, included in other liabilities – (306 ) (278 ) – (584 ) Net cash and short-term securities, beginning of year 47 4,907 20,629 – 25,583 End of year Gross cash and short-term securities 78 4,087 18,429 – 22,594 Net payments in transit, included in other liabilities – (522 ) (142 ) – (664 ) Net cash and short-term securities, end of year $ 78 $ 3,565 $ 18,287 $ – $ 21,930 Supplemental disclosures on cash flow information: Interest received $ 499 $ 4,112 $ 7,847 $ (1,082 ) $ 11,376 Interest paid 396 73 1,594 (1,082 ) 981 Income taxes paid (refund) – (118 ) 689 – 571 |
IFRS 7 Disclosures (Tables)
IFRS 7 Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Statement [LineItems] | |
Summary of Risk Management Strategies | Market risk management strategy 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 limits associated with earnings and capital volatility. 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 Public Interest Rate ALDA Foreign Liquidity Risk Prod design and pricing ✓ ✓ ✓ ✓ ✓ Variable annuity guarantee dynamic hedging ✓ ✓ ✓ ✓ Macro equity risk hedg ✓ ✓ ✓ A sset liability managem ✓ ✓ ✓ ✓ ✓ Foreign exchan manage ✓ ✓ Liquidity risk manag ✓ |
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, 2022 ($ millions) Less than 1 to 3 3 to 5 Over 5 Total Long-term debt $ – $ – $ 2,661 $ 3,573 $ 6,234 Capital instruments – 615 – 5,507 6,122 Derivatives 2,656 1,956 1,146 8,531 14,289 Deposits from Bank (2) 16,884 3,000 2,623 – 22,507 Lease liabilities 112 154 93 61 420 (1) (2) |
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, 2022 2021 Guarantee (1) Fund value Net (1),(2),(3) Guarantee (1) Fund value Net (1),(2),(3) Guaranteed minimum income benefit $ 4,357 $ 2,723 $ 1,639 $ 4,419 $ 3,603 $ 918 Guaranteed minimum withdrawal benefit 38,319 34,203 5,734 39,098 41,809 2,233 Guaranteed minimum accumulation benefit 20,035 19,945 221 19,820 20,226 12 Gross living benefits (4) 62,711 56,871 7,594 63,337 65,638 3,163 Gross death benefits (5) 10,465 15,779 2,156 11,105 22,920 618 Total gross of reinsurance 73,176 72,650 9,750 74,442 88,558 3,781 Living benefits reinsured 26,999 23,691 4,860 3,788 3,102 771 Death benefits reinsured 3,923 2,636 1,061 639 547 253 Total reinsured 30,922 26,327 5,921 4,427 3,649 1,024 Total, net of reinsurance (6) $ 42,254 $ 46,323 $ 3,829 $ 70,015 $ 84,909 $ 2,757 (1) (2) (in-the-money (3) run-off (4) (5) (6) |
Summary of 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 2022 2021 Equity funds $ 42,506 $ 52,528 Balanced funds 36,290 43,783 Bond funds 9,336 10,965 Money market funds 1,924 1,844 Other fixed interest rate investments 2,029 1,917 Total $ 92,085 $ 111,037 |
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) As at December 31, 2022 ($ millions) -30% -20% -10% +10% +20% +30% Underlying sensitivity to net income attributed to shareholders (4) Variable annuity guarantees $ (1,100 ) $ (660 ) $ (300 ) $ 240 $ 450 $ 610 General fund equity investments (5) (1,520 ) (1,010 ) (500 ) 420 820 1,220 Total underlying sensitivity before hedging (2,620 ) (1,670 ) (800 ) 660 1,270 1,830 Impact of macro and dynamic hedge assets (6) 850 530 240 (230 ) (420 ) (570 ) Net potential impact on net income attributed to shareholders after impact of hedging (7) $ (1,770 ) $ (1,140 ) $ (560 ) $ 430 $ 850 $ 1,260 As at December 31, 2021 ($ millions) -30% -20% -10% +10% +20% +30% Underlying sensitivity to net income attributed to shareholders (4) Variable annuity guarantees $ (2,560 ) $ (1,480 ) $ (630 ) $ 440 $ 750 $ 960 General fund equity investments (5) (1,430 ) (890 ) (440 ) 450 880 1,320 Total underlying sensitivity before hedging (3,990 ) (2,370 ) (1,070 ) 890 1,630 2,280 Impact of macro and dynamic hedge assets (6) 2,060 1,190 500 (470 ) (820 ) (1,110 ) Net potential impact on net income attributed to shareholders after impact of hedging (7) $ (1,930 ) $ (1,180 ) $ (570 ) $ 420 $ 810 $ 1,170 (1) R elated (2) (3) (4) (5) (6) (7) primarily driven by net from to 4Q22 |
Summary of Potential Impact on Net Income Attributed to Shareholders and MLI's LICAT Total 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 LICAT ratio of an immediate parallel change in interest rates relative to rates assumed in the valuation of policy liabilities (1),(2),(3),(4) 2022 2021 As at December 31, -50bp +50bp -50bp +50bp Net income attributed to shareholders ($ millions) $ (100) $ 100 $ (200 ) $ nil Changes in other comprehensive income from fair value changes in AFS fixed income assets held in the Corporate 1,500 (1,400 ) 2,100 (1,900 ) MLI’s LICAT ratio (change in percentage points) (5) 3 (2 ) 5 (4 ) (1) (2) (3) (4) (5) |
Alternative Long-Duration Asset Performance Risk [member] | |
Statement [LineItems] | |
Summary of Potential Impact on Net Income Attributed to Shareholders Arising from Changes to Spreads | Potential impact on net income attributed to shareholders and MLI’s LICAT ratio arising from changes in eturns (1),(2),(3),(4),(5), (6 As at December 31, ($ millions) 2022 2021 -10% +10% -10% +10% Net income attributed to shareholders Real estate, agriculture and timber assets $ (1,300 ) $ 1,300 $ (1,400 ) $ 1,400 Private equities and other ALDA (1,600 ) 1,500 (1,900 ) 1,800 Total (7) $ (2,900 ) $ 2,800 $ (3,300 ) $ 3,200 MLI’s LICAT ratio (change in percentage points) (3 ) 2 (4 ) 3 (1) (2) point-in-time (3) (4) (5) (6) (7) |
Corporate and swap spreads [Member] | |
Statement [LineItems] | |
Summary of Potential Impact on Net Income Attributed to Shareholders Arising from Changes to Spreads | Potential impact on net income attributed to shareholders and MLI’s LICAT ratio arising from changes to corporate spreads and swap spreads relative to spreads assumed in the valuation of policy liabilities (1),(2),(3) Corporate spreads (4),(5) 2022 2021 As at December 31, -50bp +50bp -50bp +50bp Net income attributed to shareholders ($ millions) (6) $ (100 ) $ nil $ (600 ) $ 500 MLI’s LICAT ratio (change in percentage points) (7) (3 ) 3 (3 ) 4 Swap spreads 2022 2021 As at December 31, -20bp +20bp -20bp +20bp Net income attributed to shareholders ($ millions) $ nil $ nil $ nil $ nil MLI’s LICAT ratio (change in percentage points) (7) nil nil nil nil (1) (2) (3) (4) (5) (6) (7) Nomura-BPI |
Nature of Operations and Sign_3
Nature of Operations and Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
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 | 10 years |
Accounting and Reporting Chan_3
Accounting and Reporting Changes - Schedule of Invested Assets Type Measurement Category and Transitional Differences Under IFRS 9 (Detail) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2022 | |
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Total invested assets (note 4) | $ 414,001 | $ 427,098 | |
Previously stated [Member] | IAS 39 [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Total in-scope invested assets | 400,660 | ||
Total invested assets (note 4) | 427,098 | ||
Previously stated [Member] | Cash and short-term securities [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
IAS 39 Total carrying value | 22,594 | ||
Previously stated [Member] | Debt securities [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
IAS 39 Total carrying value | 224,139 | ||
Previously stated [Member] | Public equities [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
IAS 39 Total carrying value | 28,067 | ||
Previously stated [Member] | Mortgages [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
IAS 39 Total carrying value | 52,014 | ||
Previously stated [Member] | Private placements [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
IAS 39 Total carrying value | 42,842 | ||
Previously stated [Member] | Other invested assets [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
IAS 39 Total carrying value | 22,101 | ||
Increase (decrease) due to changes in accounting policy required by IFRSs [Member] | IFRS 17 Measurement Differences [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Total in-scope invested assets | 6,367 | ||
Total invested assets (note 4) | 7,402 | ||
Increase (decrease) due to changes in accounting policy required by IFRSs [Member] | IFRS 17 Presentation Differences [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Total in-scope invested assets | (6,397) | ||
Total invested assets (note 4) | (6,397) | ||
Increase (decrease) due to changes in accounting policy required by IFRSs [Member] | Mortgages [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Measurement Differences | 1,934 | ||
Increase (decrease) due to changes in accounting policy required by IFRSs [Member] | Private placements [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Measurement Differences | 4,447 | ||
Increase (decrease) due to changes in accounting policy required by IFRSs [Member] | Other invested assets [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Measurement Differences | (14) | ||
Currently stated [Member] | IFRS 9 [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Total in-scope invested assets | $ 400,630 | ||
Total invested assets (note 4) | 428,103 | ||
Currently stated [Member] | Cash and short-term securities [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Total carrying value | 22,594 | ||
Currently stated [Member] | Debt securities [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Total carrying value | 224,139 | ||
Currently stated [Member] | Public equities [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Total carrying value | 28,067 | ||
Currently stated [Member] | Mortgages [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Total carrying value | 53,948 | ||
Currently stated [Member] | Private placements [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Total carrying value | 47,289 | ||
Currently stated [Member] | Other invested assets [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Total carrying value | 22,087 | ||
AFS [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Total invested assets (note 4) | $ 44,755 | $ 49,876 | |
AFS [Member] | Previously stated [Member] | Cash and short-term securities [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Measurement Category | AFS | ||
IAS 39 Total carrying value | $ 14,339 | ||
AFS [Member] | Previously stated [Member] | Debt securities [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Measurement Category | AFS | ||
IAS 39 Total carrying value | $ 33,097 | ||
AFS [Member] | Previously stated [Member] | Public equities [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Measurement Category | AFS | ||
IAS 39 Total carrying value | $ 2,351 | ||
AFS [Member] | Previously stated [Member] | Mortgages [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Measurement Category | AFS | ||
AFS [Member] | Previously stated [Member] | Private placements [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Measurement Category | AFS | ||
AFS [Member] | Previously stated [Member] | Other invested assets [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Measurement Category | AFS | ||
IAS 39 Total carrying value | $ 89 | ||
AFS [Member] | Increase (decrease) due to changes in accounting policy required by IFRSs [Member] | Cash and short-term securities [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Presentation Differences | 2,214 | ||
AFS [Member] | Increase (decrease) due to changes in accounting policy required by IFRSs [Member] | Debt securities [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Presentation Differences | 184,365 | ||
AFS [Member] | Increase (decrease) due to changes in accounting policy required by IFRSs [Member] | Public equities [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Presentation Differences | (2,351) | ||
AFS [Member] | Increase (decrease) due to changes in accounting policy required by IFRSs [Member] | Mortgages [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Measurement Differences | 1,897 | ||
Presentation Differences | 29,901 | ||
AFS [Member] | Increase (decrease) due to changes in accounting policy required by IFRSs [Member] | Private placements [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Measurement Differences | 4,407 | ||
Presentation Differences | 42,175 | ||
AFS [Member] | Increase (decrease) due to changes in accounting policy required by IFRSs [Member] | Other invested assets [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Measurement Differences | (4) | ||
Presentation Differences | 238 | ||
FVOCI [Member] | Currently stated [Member] | Cash and short-term securities [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Total carrying value | 16,553 | ||
IFRS 9 Measurement Category | FVOCI | ||
FVOCI [Member] | Currently stated [Member] | Debt securities [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Total carrying value | 217,462 | ||
IFRS 9 Measurement Category | FVOCI | ||
FVOCI [Member] | Currently stated [Member] | Mortgages [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Total carrying value | 31,798 | ||
IFRS 9 Measurement Category | FVOCI | ||
FVOCI [Member] | Currently stated [Member] | Private placements [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Total carrying value | 46,582 | ||
IFRS 9 Measurement Category | FVOCI | ||
FVOCI [Member] | Currently stated [Member] | Other invested assets [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Total carrying value | 323 | ||
IFRS 9 Measurement Category | FVOCI | ||
FVTPL [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Total invested assets (note 4) | $ 220,674 | $ 238,809 | |
FVTPL [Member] | Previously stated [Member] | Cash and short-term securities [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Measurement Category | FVTPL | ||
IAS 39 Total carrying value | $ 2,214 | ||
FVTPL [Member] | Previously stated [Member] | Debt securities [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Measurement Category | FVTPL | ||
IAS 39 Total carrying value | $ 189,722 | ||
FVTPL [Member] | Previously stated [Member] | Public equities [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Measurement Category | FVTPL | ||
IAS 39 Total carrying value | $ 25,716 | ||
FVTPL [Member] | Previously stated [Member] | Mortgages [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Measurement Category | FVTPL | ||
FVTPL [Member] | Previously stated [Member] | Private placements [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Measurement Category | FVTPL | ||
FVTPL [Member] | Previously stated [Member] | Other invested assets [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Measurement Category | FVTPL | ||
IAS 39 Total carrying value | $ 21,157 | ||
FVTPL [Member] | Increase (decrease) due to changes in accounting policy required by IFRSs [Member] | Cash and short-term securities [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Presentation Differences | (2,214) | ||
FVTPL [Member] | Increase (decrease) due to changes in accounting policy required by IFRSs [Member] | Debt securities [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Presentation Differences | (184,365) | ||
FVTPL [Member] | Increase (decrease) due to changes in accounting policy required by IFRSs [Member] | Public equities [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Presentation Differences | 2,351 | ||
FVTPL [Member] | Increase (decrease) due to changes in accounting policy required by IFRSs [Member] | Mortgages [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Measurement Differences | 37 | ||
Presentation Differences | 1,166 | ||
FVTPL [Member] | Increase (decrease) due to changes in accounting policy required by IFRSs [Member] | Private placements [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Measurement Differences | 40 | ||
Presentation Differences | 667 | ||
FVTPL [Member] | Increase (decrease) due to changes in accounting policy required by IFRSs [Member] | Other invested assets [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Measurement Differences | (10) | ||
Presentation Differences | $ 617 | ||
FVTPL [Member] | Currently stated [Member] | Cash and short-term securities [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
IFRS 9 Measurement Category | FVTPL | ||
FVTPL [Member] | Currently stated [Member] | Debt securities [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Total carrying value | 5,357 | ||
IFRS 9 Measurement Category | FVTPL | ||
FVTPL [Member] | Currently stated [Member] | Public equities [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Total carrying value | 28,067 | ||
IFRS 9 Measurement Category | FVTPL | ||
FVTPL [Member] | Currently stated [Member] | Mortgages [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Total carrying value | 1,203 | ||
IFRS 9 Measurement Category | FVTPL | ||
FVTPL [Member] | Currently stated [Member] | Private placements [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Total carrying value | 707 | ||
IFRS 9 Measurement Category | FVTPL | ||
FVTPL [Member] | Currently stated [Member] | Other invested assets [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Total carrying value | 21,764 | ||
IFRS 9 Measurement Category | FVTPL | ||
Amortized cost [Member] | Previously stated [Member] | Cash and short-term securities [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Measurement Category | Amortized cost | ||
IAS 39 Total carrying value | $ 6,041 | ||
Amortized cost [Member] | Previously stated [Member] | Debt securities [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Measurement Category | Amortized cost | ||
IAS 39 Total carrying value | $ 1,320 | ||
Amortized cost [Member] | Previously stated [Member] | Mortgages [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Measurement Category | Amortized cost | ||
IAS 39 Total carrying value | $ 52,014 | ||
Amortized cost [Member] | Previously stated [Member] | Private placements [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Measurement Category | Amortized cost | ||
IAS 39 Total carrying value | $ 42,842 | ||
Amortized cost [Member] | Previously stated [Member] | Policy loans [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Measurement Category | Amortized cost | ||
IAS 39 Total carrying value | $ 6,397 | ||
Amortized cost [Member] | Previously stated [Member] | Loans to Bank clients [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Measurement Category | Amortized cost | ||
IAS 39 Total carrying value | $ 2,506 | ||
Amortized cost [Member] | Previously stated [Member] | Other invested assets [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Measurement Category | Amortized cost | ||
IAS 39 Total carrying value | $ 855 | ||
Amortized cost [Member] | Increase (decrease) due to changes in accounting policy required by IFRSs [Member] | Mortgages [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Presentation Differences | (31,067) | ||
Amortized cost [Member] | Increase (decrease) due to changes in accounting policy required by IFRSs [Member] | Private placements [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Presentation Differences | (42,842) | ||
Amortized cost [Member] | Increase (decrease) due to changes in accounting policy required by IFRSs [Member] | Policy loans [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Presentation Differences | (6,397) | ||
Amortized cost [Member] | Increase (decrease) due to changes in accounting policy required by IFRSs [Member] | Other invested assets [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Measurement Differences | 0 | ||
Presentation Differences | $ (855) | ||
Amortized cost [Member] | Currently stated [Member] | Cash and short-term securities [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Total carrying value | 6,041 | ||
IFRS 9 Measurement Category | Amortized cost | ||
Amortized cost [Member] | Currently stated [Member] | Debt securities [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Total carrying value | 1,320 | ||
IFRS 9 Measurement Category | Amortized cost | ||
Amortized cost [Member] | Currently stated [Member] | Mortgages [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Total carrying value | 20,947 | ||
IFRS 9 Measurement Category | Amortized cost | ||
Amortized cost [Member] | Currently stated [Member] | Private placements [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
IFRS 9 Measurement Category | Amortized cost | ||
Amortized cost [Member] | Currently stated [Member] | Loans to Bank clients [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Total carrying value | 2,506 | ||
IFRS 9 Measurement Category | Amortized cost | ||
Amortized cost [Member] | Currently stated [Member] | Other invested assets [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
IFRS 9 Measurement Category | Amortized cost(3) | ||
Other [Member] | Previously stated [Member] | Out-of-scope invested assets [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Measurement Category | Other | ||
Other [Member] | Previously stated [Member] | Out-of-scope invested assets [Member] | IAS 39 [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
IAS 39 Total carrying value | $ 26,438 | ||
Other [Member] | Increase (decrease) due to changes in accounting policy required by IFRSs [Member] | Out-of-scope invested assets [Member] | IFRS 17 Measurement Differences [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Measurement Differences | $ 1,035 | ||
Other [Member] | Currently stated [Member] | Out-of-scope invested assets [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
IFRS 9 Measurement Category | Other | ||
Other [Member] | Currently stated [Member] | Out-of-scope invested assets [Member] | IFRS 9 [Member] | |||
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |||
Total carrying value | $ 27,473 |
Accounting and Reporting Chan_4
Accounting and Reporting Changes - Schedule of Invested Assets Type Measurement Category and Transitional Differences Under IFRS 9 (Parenthetical) (Detail) $ in Millions | Jan. 01, 2022 CAD ($) |
Disclosure of financial assets at date of initial application of IFRS 9 [line items] | |
Reclassification of financial assets unrealized gains losses net out of retained earnings to accumulated other comprehensive income | $ 11,868 |
Reclassification of financial assets unrealized gains losses net out of accumulated other comprehensive income to retained earnings | 268 |
Reclassification of financial assets out of measured at amortised cost into measured at fair value through profit or loss | 6,367 |
Reclassification of financial assets out of measured at amortised cost into measured at fair value through other comprehensive income | 5,041 |
Reclassification of financial asset out of measured at amortized cost into measured at fair value through retained earnings | 952 |
Reclassification of insurance contracts at fair value | 1,035 |
Reclassification of insurance contracts at fair value through retained earning | $ 915 |
Accounting and Reporting Chan_5
Accounting and Reporting Changes - Schedule of Balance Sheet and Related Adjustments as of IFRS 17 (Detail) - CAD ($) $ in Millions | Jan. 01, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||||
Total invested assets | $ 414,001 | $ 427,098 | ||
Total other assets | 86,378 | 90,757 | ||
Segregated funds net assets | 348,562 | 399,788 | ||
Total assets | 848,941 | 917,643 | ||
Liabilities and Equity | ||||
Insurance contract liabilities | 371,405 | 392,275 | $ 385,554 | |
Total investment contract liabilities | 3,248 | 3,117 | ||
Other liabilities | 17,421 | 18,205 | ||
Segregated funds net liabilities | 348,562 | 399,788 | ||
Total liabilities | 792,562 | 858,774 | ||
Equity | ||||
Shareholders' retained earnings | 27,010 | 23,492 | ||
Shareholders' accumulated other comprehensive income (loss): | ||||
Total shareholders' and other equity | 56,061 | 58,408 | ||
Participating policyholders' equity | (1,346) | (1,233) | ||
Non-controlling interests | 1,664 | 1,694 | ||
Total equity | 56,379 | 58,869 | ||
Total liabilities and equity | $ 848,941 | 917,643 | ||
IFRS 4 And IAS 39 [member] | ||||
Assets | ||||
Total invested assets | 427,098 | |||
Total other assets | 90,757 | |||
Segregated funds net assets | 399,788 | |||
Total assets | 917,643 | |||
Liabilities and Equity | ||||
Insurance contract liabilities | 392,275 | |||
Total insurance contract liabilities | 392,275 | |||
Total investment contract liabilities | 3,116 | |||
Other liabilities | 63,595 | |||
Segregated funds net liabilities | 399,788 | |||
Total liabilities | 858,774 | |||
Equity | ||||
Shareholders' retained earnings | 23,492 | |||
Shareholders' accumulated other comprehensive income (loss): | ||||
FVOCI investments | 848 | |||
Other equity items | 34,068 | |||
Total shareholders' and other equity | 58,408 | |||
Participating policyholders' equity | (1,233) | |||
Non-controlling interests | 1,694 | |||
Total equity | 58,869 | |||
Total liabilities and equity | $ 917,643 | |||
IFRS 17 And IAS 39 [member] | ||||
Assets | ||||
Total invested assets | $ 428,103 | |||
Total other assets | 100,329 | |||
Segregated funds net assets | 399,788 | |||
Total assets | 928,220 | |||
Liabilities and Equity | ||||
Insurance contract liabilities | 405,621 | |||
Segregated funds insurance net liabilities | 130,836 | |||
Total insurance contract liabilities | 536,457 | |||
Total investment contract liabilities | 279,016 | |||
Other liabilities | 65,855 | |||
Total liabilities | 881,328 | |||
Equity | ||||
Shareholders' retained earnings | 9,656 | |||
Shareholders' accumulated other comprehensive income (loss): | ||||
Net insurance finance expenses | (17,117) | |||
Net reinsurance finance income | 984 | |||
FVOCI investments | 17,764 | |||
Other equity items | 34,068 | |||
Total shareholders' and other equity | 45,355 | |||
Participating policyholders' equity | 101 | |||
Non-controlling interests | 1,436 | |||
Total equity | 46,892 | |||
Total liabilities and equity | 928,220 | |||
Transition CSM [Member] | IFRS 17 Measurement Differences [Member] | ||||
Assets | ||||
Total other assets | 2,877 | |||
Total assets | 2,877 | |||
Liabilities and Equity | ||||
Insurance contract liabilities | 21,466 | |||
Total insurance contract liabilities | 21,466 | |||
Other liabilities | (2,823) | |||
Total liabilities | 18,643 | |||
Equity | ||||
Shareholders' retained earnings | (13,607) | |||
Shareholders' accumulated other comprehensive income (loss): | ||||
Total shareholders' and other equity | (13,607) | |||
Participating policyholders' equity | (1,440) | |||
Non-controlling interests | (719) | |||
Total equity | (15,766) | |||
Total liabilities and equity | 2,877 | |||
Contract Classification [Member] | IFRS 17 Measurement Differences [Member] | ||||
Assets | ||||
Total invested assets | 7,402 | |||
Total other assets | 5,617 | |||
Total assets | 13,019 | |||
Liabilities and Equity | ||||
Insurance contract liabilities | 10,014 | |||
Total insurance contract liabilities | 10,014 | |||
Other liabilities | (784) | |||
Total liabilities | 9,230 | |||
Equity | ||||
Shareholders' retained earnings | (229) | |||
Shareholders' accumulated other comprehensive income (loss): | ||||
Net insurance finance expenses | (17,117) | |||
Net reinsurance finance income | 984 | |||
FVOCI investments | 16,916 | |||
Total shareholders' and other equity | 554 | |||
Participating policyholders' equity | 2,774 | |||
Non-controlling interests | 461 | |||
Total equity | 3,789 | |||
Total liabilities and equity | 13,019 | |||
Presentation Differences [Member] | IFRS 17 Measurement Differences [Member] | ||||
Assets | ||||
Total invested assets | (6,397) | |||
Total other assets | 1,078 | |||
Total assets | (5,319) | |||
Liabilities and Equity | ||||
Insurance contract liabilities | (18,134) | |||
Segregated funds insurance net liabilities | 130,836 | |||
Total insurance contract liabilities | 112,702 | |||
Total investment contract liabilities | 275,900 | |||
Other liabilities | 5,867 | |||
Segregated funds net liabilities | (399,788) | |||
Total liabilities | (5,319) | |||
Shareholders' accumulated other comprehensive income (loss): | ||||
Total liabilities and equity | $ (5,319) |
Accounting and Reporting Chan_6
Accounting and Reporting Changes - Schedule of Balance Sheet and Related Adjustments as of IFRS 17 (Parenthetical) (Detail) - Insurance contract [member] $ in Billions | Jan. 01, 2022 CAD ($) |
Non-controlling Interests [Member] | |
Schedule Of Detailed Information About Balance Sheet And Related Adjustments As Of IFRS 17 [Line Items] | |
Contractual service margin | $ 0.7 |
Shareholder Net Income [Member] | |
Schedule Of Detailed Information About Balance Sheet And Related Adjustments As Of IFRS 17 [Line Items] | |
Contractual service margin | $ 1.4 |
Accounting and Reporting Chan_7
Accounting and Reporting Changes - Additional Information (Detail) - CAD ($) $ in Millions | Jan. 01, 2023 | Jan. 01, 2022 |
Disclosure of changes in accounting estimates [line items] | ||
Increase (decrease) in equity | $ 15,766 | |
Contractual service margin liability | 21,466 | |
Debt securities [member] | ||
Disclosure of changes in accounting estimates [line items] | ||
Reclassification of financial assets out of measured at fair value through profit or loss into measured at fair value through other comprehensive income | $ 184,000 | |
IFRS 17 [member] | ||
Disclosure of changes in accounting estimates [line items] | ||
Increase (decrease) in equity | $ 11,997 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) $ in Millions | Nov. 30, 2022 CAD ($) |
Disclosure of detailed information about business combination [line items] | |
Percentage of voting equity interests acquired | 51% |
Manulife TEDA Fund Management [Member] | |
Disclosure of detailed information about business combination [line items] | |
Cash transferred | $ 334 |
Fair value of joint venture interest valued | 321 |
Gain (loss) recognised asderecognition of the previous joint venture interest | 95 |
Tangible net assets recognised as of acquisition date | 160 |
Identifiable intangible assets recognised as of acquisition date | 240 |
Goodwill recognised as of acquisition date | $ 255 |
Percentage of voting equity interests acquired | 51% |
Invested Assets and Investmen_3
Invested Assets and Investment Income - Schedule of Carrying Values and Fair Values of Invested Assets (Detail) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of fair value measurement of assets [Line Items] | |||
Cash and short-term securities | $ 19,153 | $ 22,594 | $ 26,167 |
Debt securities | 203,904 | 224,139 | |
Public equities | 23,519 | 28,067 | |
Mortgages | 54,638 | 52,014 | |
Private placements | 47,057 | 42,842 | |
Policy loans | 6,894 | 6,397 | |
Loans to bank clients | 2,781 | 2,506 | |
Real estate | 13,272 | 13,233 | |
Total invested assets | 414,001 | 427,098 | |
Other invested assets | 42,783 | 35,306 | |
FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Cash and short-term securities | 1,933 | 2,214 | |
Debt securities | 120,897 | 133,763 | |
Public equities | 21,989 | 25,716 | |
Total invested assets | 220,674 | 238,809 | |
AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Cash and short-term securities | 10,926 | 14,339 | |
Debt securities | 7,745 | 7,332 | |
Public equities | 1,530 | 2,351 | |
Total invested assets | 44,755 | 49,876 | |
Other invested assets [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Cash and short-term securities | 6,294 | 6,041 | |
Mortgages | 54,638 | 52,014 | |
Private placements | 47,057 | 42,842 | |
Policy loans | 6,894 | 6,397 | |
Loans to bank clients | 2,781 | 2,506 | |
Total invested assets | 148,572 | 138,413 | |
Fair value [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Cash and short-term securities | 19,153 | 22,594 | |
Public equities | 23,519 | 28,067 | |
Mortgages | 51,429 | 54,089 | |
Private placements | 41,968 | 47,276 | |
Policy loans | 6,894 | 6,397 | |
Loans to bank clients | 2,760 | 2,503 | |
Total invested assets | 407,212 | 435,475 | |
Canadian government and agency [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 21,266 | 22,670 | |
Canadian government and agency [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 14,798 | 18,706 | |
Canadian government and agency [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 6,468 | 3,964 | |
Canadian government and agency [Member] | Fair value [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 21,266 | 22,670 | |
U.S. government and agency [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 24,736 | 32,251 | |
U.S. government and agency [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 9,440 | 12,607 | |
U.S. government and agency [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 14,384 | 18,792 | |
U.S. government and agency [Member] | Other invested assets [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 912 | 852 | |
U.S. government and agency [Member] | Fair value [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 24,494 | 32,254 | |
Other government and agency [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 26,473 | 24,759 | |
Other government and agency [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 22,986 | 21,888 | |
Other government and agency [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 3,487 | 2,871 | |
Other government and agency [Member] | Fair value [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 26,473 | 24,759 | |
Corporate [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 129,141 | 141,563 | |
Corporate [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 120,897 | 133,763 | |
Corporate [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 7,745 | 7,332 | |
Corporate [Member] | Other invested assets [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 499 | 468 | |
Corporate [Member] | Fair value [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 128,972 | 141,560 | |
Mortgage/asset-backed securities [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 2,288 | 2,896 | |
Mortgage/asset-backed securities [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 2,152 | 2,758 | |
Mortgage/asset-backed securities [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 136 | 138 | |
Mortgage/asset-backed securities [Member] | Fair value [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 2,288 | 2,896 | |
Real estate own use property [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Real estate | 1,878 | 1,812 | |
Real estate own use property [Member] | Other invested assets [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Real estate | 1,878 | 1,812 | |
Real estate own use property [Member] | Fair value [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Real estate | 3,033 | 3,024 | |
Investment property [member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Real estate | 11,394 | 11,421 | |
Investment property [member] | Other invested assets [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Real estate | 11,394 | 11,421 | |
Investment property [member] | Fair value [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Real estate | 11,394 | 11,421 | |
Alternative long-duration assets [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Other invested assets | 38,439 | 31,204 | |
Alternative long-duration assets [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Other invested assets | 26,348 | 21,022 | |
Alternative long-duration assets [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Other invested assets | 79 | 89 | |
Alternative long-duration assets [Member] | Other invested assets [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Other invested assets | 12,012 | 10,093 | |
Alternative long-duration assets [Member] | Fair value [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Other invested assets | 39,225 | 31,863 | |
Various other [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Other invested assets | 4,344 | 4,102 | |
Various other [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Other invested assets | 131 | 135 | |
Various other [Member] | Other invested assets [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Other invested assets | 4,213 | 3,967 | |
Various other [Member] | Fair value [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Other invested assets | $ 4,344 | $ 4,102 |
Invested Assets and Investmen_4
Invested Assets and Investment Income - Schedule of Carrying Values and Fair Values of Invested Assets (Parenthetical) (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of fair value measurement of assets [Line Items] | ||
Debt securities | $ 203,904 | $ 224,139 |
Private placements | 47,057 | 42,842 |
Other invested assets | 42,783 | 35,306 |
Public equities | 23,519 | 28,067 |
Canadian Dollar Offered Rate [Member] | Interest Rate Benchmark Reform [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Floating rate invested assets | 173 | 176 |
US Dollars London Interbank Offered Rate [Member] | Interest Rate Benchmark Reform [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Private placements | 1,613 | 1,984 |
Floating rate invested assets | 892 | 1,002 |
Australia Dollars Bank Bill Swap Rate [Member] | Interest Rate Benchmark Reform [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Private placements | 199 | 166 |
Floating rate invested assets | 15 | 0 |
New Zealand Dollars Bank Bill Market Rate [Member] | Interest Rate Benchmark Reform [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Private placements | 43 | 43 |
Private equity [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Total carrying value | 14,279 | |
Less than 1 year [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Debt securities | 1,787 | 2,196 |
Less than 90 days [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Debt securities | 870 | 347 |
Fair value [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Private placements | 41,968 | 47,276 |
Change in the fair value of these invested assets | (94) | 15 |
Public equities | 23,519 | 28,067 |
Alternative long-duration assets [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Other invested assets | 38,439 | 31,204 |
Alternative long-duration assets [Member] | Private equity [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Total carrying value | 11,598 | |
Alternative long-duration assets [Member] | Power and infrastructure [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Total carrying value | 12,761 | 9,824 |
Alternative long-duration assets [Member] | Oil and gas [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Total carrying value | 2,221 | 1,950 |
Alternative long-duration assets [Member] | Timber and agriculture [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Total carrying value | 5,979 | 5,259 |
Alternative long-duration assets [Member] | Other invested assets [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Total carrying value | 3,199 | 2,573 |
Alternative long-duration assets [Member] | Fair value [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Other invested assets | 39,225 | 31,863 |
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 | 4,148 | 7,314 |
Cash equivalents | 8,711 | 9,239 |
Cash | 6,294 | 6,041 |
Other [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Other invested assets leveraged leases | 3,840 | 3,457 |
SPPI qualifying [member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Other invested assets | 302 | 323 |
SPPI non qualifying [member] | Fair value [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Debt securities | 0 | 0 |
Private placements | 98 | 181 |
Other invested assets | 507 | 518 |
ALDA strategy [member] | Public equity [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Public equities | 1 | 5 |
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 | $ 411 | $ 407 |
Invested Assets and Investmen_5
Invested Assets and Investment Income - Schedule of Other Invested Assets Include Investments in Associates and Joint Ventures Accounted Using Equity Method (Detail) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Investments in associates carrying value | $ 10,292 | $ 8,818 |
Percentage of investments in associates carrying value | 100% | 100% |
Leveraged leases [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Investments in associates carrying value | $ 3,840 | $ 3,457 |
Percentage of investments in associates carrying value | 37% | 40% |
Timber and agriculture [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Investments in associates carrying value | $ 822 | $ 808 |
Percentage of investments in associates carrying value | 8% | 9% |
Real estate [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Investments in associates carrying value | $ 1,845 | $ 1,528 |
Percentage of investments in associates carrying value | 18% | 17% |
Other [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Investments in associates carrying value | $ 3,785 | $ 3,025 |
Percentage of investments in associates carrying value | 37% | 34% |
Invested Assets and Investmen_6
Invested Assets and Investment Income - Additional Information (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of fair value measurement of assets [Line Items] | ||
Fair value of securitized assets | $ 848,941 | $ 917,643 |
Fair value of securitized liabilities | 792,562 | 858,774 |
Transfers out of Level 1 into Level 2 of fair value hierarchy, assets held at end of reporting period | 0 | 5 |
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 | 5 |
Transfers out of Level 2 into Level 1 of fair value hierarchy, assets held at end of reporting period | 0 | 249 |
Other invested assets [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Profit (loss) from associates and joint ventures | 851 | 1,300 |
Dividends received from associates and joint ventures | 0 | 2 |
Securitized assets [Member] | Fair value [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Fair value of securitized assets | 5,167 | 4,725 |
Fair value of securitized liabilities | $ 4,865 | $ 4,601 |
Invested Assets and Investmen_7
Invested Assets and Investment Income - Schedule of Investment Income (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of Investment Income [line items] | ||
Rental income, net of depreciation | $ 825 | $ 837 |
Net Investment income | (29,870) | 11,624 |
Investment income | 15,207 | 15,627 |
Debt securities [Member] | ||
Disclosure of Investment Income [line items] | ||
Interest income | 7,025 | 6,230 |
Gains (losses) | (33,281) | (5,866) |
Impairment loss, net | (11) | 29 |
Cash and short-term securities [Member] | ||
Disclosure of Investment Income [line items] | ||
Interest income | 312 | 96 |
Gains (losses) | 111 | 63 |
Public equities [Member] | ||
Disclosure of Investment Income [line items] | ||
Dividend income | 545 | 731 |
Gains (losses) | (3,618) | 3,471 |
Impairment loss, net | (14) | (3) |
Mortgages [Member] | ||
Disclosure of Investment Income [line items] | ||
Interest income | 1,913 | 1,709 |
Gains (losses) | 57 | 133 |
Provision, net | 1 | 1 |
Private placements [Member] | ||
Disclosure of Investment Income [line items] | ||
Interest income | 2,021 | 1,931 |
Gains (losses) | 335 | 270 |
Impairment loss, net | (4) | 45 |
Policy loans [member] | ||
Disclosure of Investment Income [line items] | ||
Net Investment income | 385 | 366 |
Loans to Bank clients [Member] | ||
Disclosure of Investment Income [line items] | ||
Interest income | 138 | 77 |
Provision, net | (4) | (2) |
Real estate [Member] | ||
Disclosure of Investment Income [line items] | ||
Rental income, net of depreciation | 452 | 453 |
Gains (losses) | (478) | 677 |
Derivatives [Member] | ||
Disclosure of Investment Income [line items] | ||
Interest income | 470 | 1,050 |
Gains (losses) | (10,637) | (5,939) |
Other invested assets [Member] | ||
Disclosure of Investment Income [line items] | ||
Interest income | 26 | 57 |
Oil and gas, timber, agriculture and other income | 2,846 | 2,996 |
Gains (losses) | 1,659 | 3,104 |
Impairment loss, net | (119) | (55) |
Interest income [member] | ||
Disclosure of Investment Income [line items] | ||
Investment income | 12,290 | 11,517 |
Dividend, rental and other income [member] | ||
Disclosure of Investment Income [line items] | ||
Investment income | 3,843 | 4,180 |
Impairments, provisions and recoveries, net [Member] | ||
Disclosure of Investment Income [line items] | ||
Investment income | (151) | 15 |
Other [Member] | ||
Disclosure of Investment Income [line items] | ||
Investment income | (775) | (85) |
Insurance and investment contract liabilities and macro equity hedges [Member] | ||
Disclosure of Investment Income [line items] | ||
Realized and unrealized gains (losses) on assets | (45,077) | (4,003) |
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 | (32,675) | (5,585) |
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 | (3,602) | 3,220 |
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 | 58 | 133 |
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 | 336 | 270 |
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 | (471) | 696 |
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 | 1,820 | 3,076 |
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 | (10,543) | (5,813) |
FVTPL [Member] | ||
Disclosure of Investment Income [line items] | ||
Net Investment income | (38,737) | 1,775 |
Investment income | 6,450 | 7,364 |
Realized and unrealized gains (losses) on assets | (45,187) | (5,589) |
FVTPL [Member] | Debt securities [Member] | ||
Disclosure of Investment Income [line items] | ||
Interest income | 6,221 | 5,645 |
Gains (losses) | (32,732) | (5,600) |
Impairment loss, net | (11) | 28 |
FVTPL [Member] | Cash and short-term securities [Member] | ||
Disclosure of Investment Income [line items] | ||
Interest income | 40 | 12 |
Gains (losses) | 26 | 85 |
FVTPL [Member] | Public equities [Member] | ||
Disclosure of Investment Income [line items] | ||
Dividend income | 500 | 670 |
Gains (losses) | (3,819) | 3,221 |
FVTPL [Member] | Derivatives [Member] | ||
Disclosure of Investment Income [line items] | ||
Interest income | 494 | 1,085 |
Gains (losses) | (10,628) | (5,925) |
FVTPL [Member] | Other invested assets [Member] | ||
Disclosure of Investment Income [line items] | ||
Gains (losses) | 1,172 | 2,554 |
FVTPL [Member] | Interest income [member] | ||
Disclosure of Investment Income [line items] | ||
Investment income | 6,755 | 6,742 |
FVTPL [Member] | Dividend, rental and other income [member] | ||
Disclosure of Investment Income [line items] | ||
Investment income | 500 | 670 |
FVTPL [Member] | Impairments, provisions and recoveries, net [Member] | ||
Disclosure of Investment Income [line items] | ||
Investment income | (11) | 28 |
FVTPL [Member] | Other [Member] | ||
Disclosure of Investment Income [line items] | ||
Investment income | (794) | (76) |
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 | (32,599) | (5,605) |
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 | (3,626) | 3,187 |
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 | 1,572 | 2,628 |
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 | (10,534) | (5,799) |
AFS [Member] | ||
Disclosure of Investment Income [line items] | ||
Net Investment income | 672 | 704 |
Investment income | 706 | 654 |
Realized and unrealized gains (losses) on assets | (34) | 50 |
AFS [Member] | Debt securities [Member] | ||
Disclosure of Investment Income [line items] | ||
Interest income | 738 | 576 |
Gains (losses) | (549) | (266) |
Impairment loss, net | 1 | |
AFS [Member] | Cash and short-term securities [Member] | ||
Disclosure of Investment Income [line items] | ||
Interest income | 272 | 84 |
Gains (losses) | 85 | (22) |
AFS [Member] | Public equities [Member] | ||
Disclosure of Investment Income [line items] | ||
Dividend income | 45 | 61 |
Gains (losses) | 201 | 250 |
Impairment loss, net | (14) | (3) |
AFS [Member] | Other invested assets [Member] | ||
Disclosure of Investment Income [line items] | ||
Gains (losses) | 13 | 23 |
Impairment loss, net | (119) | |
AFS [Member] | Interest income [member] | ||
Disclosure of Investment Income [line items] | ||
Investment income | 1,010 | 661 |
AFS [Member] | Dividend, rental and other income [member] | ||
Disclosure of Investment Income [line items] | ||
Investment income | 45 | 61 |
AFS [Member] | Impairments, provisions and recoveries, net [Member] | ||
Disclosure of Investment Income [line items] | ||
Investment income | (133) | (2) |
AFS [Member] | Other [Member] | ||
Disclosure of Investment Income [line items] | ||
Investment income | (216) | (66) |
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 | (76) | 20 |
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 | 24 | 33 |
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 | 18 | (3) |
Other [Member] | ||
Disclosure of Investment Income [line items] | ||
Net Investment income | 8,195 | 9,145 |
Investment income | 8,051 | 7,609 |
Other [Member] | Debt securities [Member] | ||
Disclosure of Investment Income [line items] | ||
Interest income | 66 | 9 |
Other [Member] | Mortgages [Member] | ||
Disclosure of Investment Income [line items] | ||
Interest income | 1,913 | 1,709 |
Gains (losses) | 57 | 133 |
Provision, net | 1 | 1 |
Other [Member] | Private placements [Member] | ||
Disclosure of Investment Income [line items] | ||
Interest income | 2,021 | 1,931 |
Gains (losses) | 335 | 270 |
Impairment loss, net | (4) | 45 |
Other [Member] | Policy loans [member] | ||
Disclosure of Investment Income [line items] | ||
Net Investment income | 385 | 366 |
Other [Member] | Loans to Bank clients [Member] | ||
Disclosure of Investment Income [line items] | ||
Interest income | 138 | 77 |
Provision, net | (4) | (2) |
Other [Member] | Real estate [Member] | ||
Disclosure of Investment Income [line items] | ||
Rental income, net of depreciation | 452 | 453 |
Gains (losses) | (478) | 677 |
Other [Member] | Derivatives [Member] | ||
Disclosure of Investment Income [line items] | ||
Interest income | (24) | (35) |
Gains (losses) | (9) | (14) |
Other [Member] | Other invested assets [Member] | ||
Disclosure of Investment Income [line items] | ||
Interest income | 26 | 57 |
Oil and gas, timber, agriculture and other income | 2,846 | 2,996 |
Gains (losses) | 474 | 527 |
Impairment loss, net | (55) | |
Other [Member] | Interest income [member] | ||
Disclosure of Investment Income [line items] | ||
Investment income | 4,525 | 4,114 |
Other [Member] | Dividend, rental and other income [member] | ||
Disclosure of Investment Income [line items] | ||
Investment income | 3,298 | 3,449 |
Other [Member] | Impairments, provisions and recoveries, net [Member] | ||
Disclosure of Investment Income [line items] | ||
Investment income | (7) | (11) |
Other [Member] | Other [Member] | ||
Disclosure of Investment Income [line items] | ||
Investment income | 235 | 57 |
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 | 144 | 1,536 |
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 | 58 | 133 |
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 | 336 | 270 |
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 | (471) | 696 |
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 | 230 | 451 |
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 | $ (9) | $ (14) |
Invested Assets and Investmen_8
Invested Assets and Investment Income - Summary of Total Investment Expenses (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Investment Expenses [line items] | ||
Total investment expenses | $ 1,863 | $ 1,980 |
Related to invested assets [Member] | ||
Investment Expenses [line items] | ||
Total investment expenses | 718 | 633 |
Related to segregated, mutual and other funds [Member] | ||
Investment Expenses [line items] | ||
Total investment expenses | $ 1,145 | $ 1,347 |
Invested Assets and Investmen_9
Invested Assets and Investment Income - Summary of Rental Income of Investment Properties (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about investment property [abstract] | ||
Rental income from investment properties | $ 825 | $ 837 |
Direct operating expenses of rental investment properties | (458) | (464) |
Total | $ 367 | $ 373 |
Invested Assets and Investme_10
Invested Assets and Investment Income - Summary of Securitized Assets and Secured Borrowing Liabilities (Detail) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of securitized assets, mortgages and associated liabilities [line items] | ||
Securitised Assets | $ 5,242 | $ 4,694 |
SecuredBorrowingLiabilities | 5,023 | 4,598 |
HELOC securitization [Member] | ||
Disclosure of securitized assets, mortgages and associated liabilities [line items] | ||
Securitised Assets | 2,924 | 2,619 |
SecuredBorrowingLiabilities | 2,750 | |
CMB securitization [member] | ||
Disclosure of securitized assets, mortgages and associated liabilities [line items] | ||
Securitised Assets | 2,318 | 2,075 |
SecuredBorrowingLiabilities | 2,273 | |
Securitized mortgages [Member] | ||
Disclosure of securitized assets, mortgages and associated liabilities [line items] | ||
Securitised Assets | 5,198 | 4,693 |
Securitized mortgages [Member] | HELOC securitization [Member] | ||
Disclosure of securitized assets, mortgages and associated liabilities [line items] | ||
Securitised Assets | 2,880 | 2,618 |
Securitized mortgages [Member] | CMB securitization [member] | ||
Disclosure of securitized assets, mortgages and associated liabilities [line items] | ||
Securitised Assets | 2,318 | 2,075 |
Restricted cash and short-term securities [member] | ||
Disclosure of securitized assets, mortgages and associated liabilities [line items] | ||
Securitised Assets | 44 | 1 |
Restricted cash and short-term securities [member] | HELOC securitization [Member] | ||
Disclosure of securitized assets, mortgages and associated liabilities [line items] | ||
Securitised Assets | $ 44 | 1 |
HELOC securitization [Member] | ||
Disclosure of securitized assets, mortgages and associated liabilities [line items] | ||
SecuredBorrowingLiabilities | 2,500 | |
CMB securitization [member] | ||
Disclosure of securitized assets, mortgages and associated liabilities [line items] | ||
SecuredBorrowingLiabilities | $ 2,098 |
Invested Assets and Investme_11
Invested Assets and Investment Income - Summary of Securitized Assets and Secured Borrowing Liabilities (Parenthetical) (Detail) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of securitized assets, mortgages and associated liabilities [line items] | ||
Secured borrowing liabilities | $ 5,023 | $ 4,598 |
Platinum Canadian Mortgage Trust II [Member] | Less than 1 year [Member] | ||
Disclosure of securitized assets, mortgages and associated liabilities [line items] | ||
Secured borrowing liabilities | 0 | |
Platinum Canadian Mortgage Trust II [Member] | 1 to 3 years [Member] | ||
Disclosure of securitized assets, mortgages and associated liabilities [line items] | ||
Secured borrowing liabilities | 1,209 | |
Platinum Canadian Mortgage Trust II [Member] | 3 to 5 years [Member] | ||
Disclosure of securitized assets, mortgages and associated liabilities [line items] | ||
Secured borrowing liabilities | 1,049 | |
Platinum Canadian Mortgage Trust II [Member] | Over 5 years [Member] | ||
Disclosure of securitized assets, mortgages and associated liabilities [line items] | ||
Secured borrowing liabilities | $ 492 |
Invested Assets and Investme_12
Invested Assets and Investment Income - Summary of Invested Assets and Segregated Funds Net Assets, Measured at Fair Value (Detail) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | $ 203,904 | $ 224,139 | |
Public equities | 23,519 | 28,067 | |
Real estate - investment property | 13,272 | 13,233 | |
Other invested assets | 42,783 | 35,306 | |
Segregated funds net assets | 348,562 | 399,788 | |
Total assets | 848,941 | 917,643 | |
FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Cash and short-term securities | 1,933 | 2,214 | |
Debt securities | 120,897 | 133,763 | |
Public equities | 21,989 | 25,716 | |
AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Cash and short-term securities | 10,926 | 14,339 | |
Debt securities | 7,745 | 7,332 | |
Public equities | 1,530 | 2,351 | |
Other cash and short-term securities [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Cash and short-term securities | 6,294 | 6,041 | |
Real estate [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Real estate - investment property | 11,394 | 11,421 | |
Other invested assets [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Other invested assets | 30,256 | 24,300 | |
Canadian government and agency [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 21,266 | 22,670 | |
Canadian government and agency [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 14,798 | 18,706 | |
Canadian government and agency [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 6,468 | 3,964 | |
U.S. government and agency [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 9,440 | 12,607 | |
U.S. government and agency [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 14,384 | 18,792 | |
Other government and agency [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 26,473 | 24,759 | |
Other government and agency [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 22,986 | 21,888 | |
Other government and agency [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 3,487 | 2,871 | |
Residential mortgage asset-backed securities [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 7 | 8 | |
Residential mortgage asset-backed securities [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 1 | 1 | |
Commercial mortgage asset-backed securities [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 570 | 1,103 | |
Commercial mortgage asset-backed securities [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 24 | 79 | |
Other securitized assets [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 1,575 | 1,647 | |
Other securitized assets [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 111 | 58 | |
Financial assets at fair value, class [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Total assets | 635,377 | 708,989 | |
Level 1 [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Segregated funds net assets | 314,436 | 361,447 | |
Level 1 [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Public equities | 21,918 | 25,716 | |
Level 1 [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Public equities | 1,530 | 2,349 | |
Level 1 [Member] | Other cash and short-term securities [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Cash and short-term securities | 6,294 | 6,041 | |
Level 1 [Member] | Other invested assets [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Other invested assets | 26 | 257 | |
Level 1 [Member] | Financial assets at fair value, class [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Total assets | 344,204 | 395,810 | |
Level 2 [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Segregated funds net assets | 30,141 | 34,060 | |
Level 2 [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Cash and short-term securities | 1,933 | 2,214 | |
Debt securities | 120,865 | 133,723 | |
Level 2 [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Cash and short-term securities | 10,926 | 14,339 | |
Debt securities | 7,745 | 7,331 | |
Public equities | 2 | ||
Level 2 [Member] | Canadian government and agency [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 14,798 | 18,706 | |
Level 2 [Member] | Canadian government and agency [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 6,468 | 3,964 | |
Level 2 [Member] | U.S. government and agency [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 9,440 | 12,607 | |
Level 2 [Member] | U.S. government and agency [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 14,384 | 18,792 | |
Level 2 [Member] | Other government and agency [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 22,986 | 21,888 | |
Level 2 [Member] | Other government and agency [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 3,478 | 2,871 | |
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 | 1 | 1 | |
Level 2 [Member] | Commercial mortgage asset-backed securities [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 570 | 1,103 | |
Level 2 [Member] | Commercial mortgage asset-backed securities [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 24 | 79 | |
Level 2 [Member] | Other securitized assets [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 1,549 | 1,619 | |
Level 2 [Member] | Other securitized assets [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 111 | 58 | |
Level 2 [Member] | Financial assets at fair value, class [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Total assets | 245,426 | 273,365 | |
Level 3 [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Segregated funds net assets | 3,985 | 4,281 | |
Total assets | 42,575 | 41,915 | $ 38,234 |
Level 3 [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 32 | 40 | |
Public equities | 71 | ||
Level 3 [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 1 | ||
Level 3 [Member] | Real estate [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Real estate - investment property | 11,394 | 11,421 | |
Total assets | 41,762 | 35,533 | 30,589 |
Level 3 [Member] | Other invested assets [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Other invested assets | 30,230 | 24,043 | |
Level 3 [Member] | Other invested assets [Member] | Real estate [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Total assets | 30,230 | 24,043 | $ 19,049 |
Level 3 [Member] | Other government and agency [Member] | AFS [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 9 | ||
Level 3 [Member] | Other securitized assets [Member] | FVTPL [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Debt securities | 26 | 28 | |
Level 3 [Member] | Financial assets at fair value, class [Member] | |||
Disclosure of fair value measurement of assets [Line Items] | |||
Total assets | $ 45,747 | $ 39,814 |
Invested Assets and Investme_13
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, 2022 | Dec. 31, 2021 | |
Bottom of range [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Investment properties capitalization rates | 2.25% | 2.25% |
Investment properties terminal capitalization rates | 3.25% | 3.25% |
Bottom of range [Member] | Real estate 1 [member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Investment property discount rates | 3.30% | 3.80% |
Top of range [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Investment properties capitalization rates | 9% | 9% |
Investment properties terminal capitalization rates | 9.50% | 9.25% |
Top of range [Member] | Real estate 1 [member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Investment property discount rates | 11% | 10.50% |
Power and infrastructure [Member] | Bottom of range [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Other invested assets fair value discount rate | 7.15% | 7.25% |
Power and infrastructure [Member] | Top of range [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Other invested assets fair value discount rate | 15.60% | 20% |
Timberland Investment [Member] | Bottom of range [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Other invested assets fair value discount rate | 4.25% | 4.50% |
Timberland Investment [Member] | Top of range [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Other invested assets fair value discount rate | 7% | 7% |
Invested Assets and Investme_14
Invested Assets and Investment Income - Summary of Fair Values and the Fair Value Hierarchy (Detail) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Carrying value [Member] | ||
Disclosure of financial assets [Line Items] | ||
Carrying value | $ 127,186 | $ 117,897 |
Carrying value [Member] | Mortgages [Member] | ||
Disclosure of financial assets [Line Items] | ||
Carrying value | 54,638 | 52,014 |
Carrying value [Member] | Private placements [Member] | ||
Disclosure of financial assets [Line Items] | ||
Carrying value | 47,057 | 42,842 |
Carrying value [Member] | Policy loans [member] | ||
Disclosure of financial assets [Line Items] | ||
Carrying value | 6,894 | 6,397 |
Carrying value [Member] | Loans to Bank clients [Member] | ||
Disclosure of financial assets [Line Items] | ||
Carrying value | 2,781 | 2,506 |
Carrying value [Member] | Real estate own use property [Member] | ||
Disclosure of financial assets [Line Items] | ||
Carrying value | 1,878 | 1,812 |
Carrying value [Member] | Public bonds HTM [Member] | ||
Disclosure of financial assets [Line Items] | ||
Carrying value | 1,411 | 1,320 |
Carrying value [Member] | Other invested assets [Member] | ||
Disclosure of financial assets [Line Items] | ||
Carrying value | 12,527 | 11,006 |
Fair value [Member] | ||
Disclosure of financial assets [Line Items] | ||
Total fair value | 120,397 | 126,274 |
Fair value [Member] | Mortgages [Member] | ||
Disclosure of financial assets [Line Items] | ||
Total fair value | 51,429 | 54,089 |
Fair value [Member] | Private placements [Member] | ||
Disclosure of financial assets [Line Items] | ||
Total fair value | 41,968 | 47,276 |
Fair value [Member] | Policy loans [member] | ||
Disclosure of financial assets [Line Items] | ||
Total fair value | 6,894 | 6,397 |
Fair value [Member] | Loans to Bank clients [Member] | ||
Disclosure of financial assets [Line Items] | ||
Total fair value | 2,760 | 2,503 |
Fair value [Member] | Real estate own use property [Member] | ||
Disclosure of financial assets [Line Items] | ||
Total fair value | 3,033 | 3,024 |
Fair value [Member] | Public bonds HTM [Member] | ||
Disclosure of financial assets [Line Items] | ||
Total fair value | 1,000 | 1,320 |
Fair value [Member] | Other invested assets [Member] | ||
Disclosure of financial assets [Line Items] | ||
Total fair value | 13,313 | 11,665 |
Level 1 [Member] | ||
Disclosure of financial assets [Line Items] | ||
Total fair value | 72 | 120 |
Level 1 [Member] | Other invested assets [Member] | ||
Disclosure of financial assets [Line Items] | ||
Total fair value | 72 | 120 |
Level 2 [Member] | ||
Disclosure of financial assets [Line Items] | ||
Total fair value | 44,764 | 52,330 |
Level 2 [Member] | Private placements [Member] | ||
Disclosure of financial assets [Line Items] | ||
Total fair value | 34,110 | 42,110 |
Level 2 [Member] | Policy loans [member] | ||
Disclosure of financial assets [Line Items] | ||
Total fair value | 6,894 | 6,397 |
Level 2 [Member] | Loans to Bank clients [Member] | ||
Disclosure of financial assets [Line Items] | ||
Total fair value | 2,760 | 2,503 |
Level 2 [Member] | Public bonds HTM [Member] | ||
Disclosure of financial assets [Line Items] | ||
Total fair value | 1,000 | 1,320 |
Level 2 [Member] | Other invested assets [Member] | ||
Disclosure of financial assets [Line Items] | ||
Total fair value | 0 | |
Level 3 [Member] | ||
Disclosure of financial assets [Line Items] | ||
Total fair value | 75,561 | 73,824 |
Level 3 [Member] | Mortgages [Member] | ||
Disclosure of financial assets [Line Items] | ||
Total fair value | 51,429 | 54,089 |
Level 3 [Member] | Private placements [Member] | ||
Disclosure of financial assets [Line Items] | ||
Total fair value | 7,858 | 5,166 |
Level 3 [Member] | Real estate own use property [Member] | ||
Disclosure of financial assets [Line Items] | ||
Total fair value | 3,033 | 3,024 |
Level 3 [Member] | Other invested assets [Member] | ||
Disclosure of financial assets [Line Items] | ||
Total fair value | $ 13,241 | $ 11,545 |
Invested Assets and Investme_15
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 ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of fair value measurement of assets [Line Items] | ||
Asset Beginning of period | $ 917,643 | |
Asset at end of period | 848,941 | $ 917,643 |
Debt securities [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Asset Beginning of period | 224,139 | |
Asset at end of period | 203,904 | 224,139 |
Public equities [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Asset Beginning of period | 28,067 | |
Asset at end of period | 23,519 | 28,067 |
Level 3 [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Asset Beginning of period | 41,915 | 38,234 |
Net realized/unrealized gains (losses) included in net income | (3,465) | 2,901 |
Net realized/unrealized gains (losses) included in net AOCI | 1 | 2 |
Purchases | 5,479 | 5,399 |
Sales | (2,100) | (1,977) |
Settlements | (750) | (1,702) |
Transfer into Level | 366 | 44 |
Transfer out of Level | (398) | (718) |
Currency Movement | 1,527 | (268) |
Asset at end of period | 42,575 | 41,915 |
Change in unrealized gains (losses) on assets still held | (1,846) | 2,752 |
Level 3 [Member] | Derivatives [member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Asset Beginning of period | 2,101 | 3,443 |
Net realized/unrealized gains (losses) included in net income | (5,413) | (897) |
Net realized/unrealized gains (losses) included in net AOCI | (7) | |
Purchases | (109) | 14 |
Settlements | 775 | (182) |
Transfer out of Level | (356) | (309) |
Currency Movement | (163) | 32 |
Asset at end of period | (3,172) | 2,101 |
Change in unrealized gains (losses) on assets still held | (3,511) | (547) |
Level 3 [Member] | Segregated funds net assets [member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Asset Beginning of period | 4,281 | 4,202 |
Net realized/unrealized gains (losses) included in net income | 475 | 350 |
Purchases | 246 | 68 |
Sales | (1,113) | (303) |
Settlements | (46) | (28) |
Transfer out of Level | (1) | |
Currency Movement | 143 | (8) |
Asset at end of period | 3,985 | 4,281 |
Change in unrealized gains (losses) on assets still held | 79 | 116 |
Level 3 [Member] | FVTPL [Member] | Public equities [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Net realized/unrealized gains (losses) included in net income | (6) | |
Purchases | 69 | 62 |
Sales | (84) | (62) |
Transfer into Level | 87 | |
Currency Movement | 5 | |
Asset at end of period | 71 | |
Change in unrealized gains (losses) on assets still held | (15) | |
Level 3 [Member] | FVTPL [Member] | Corporate [member] | Debt securities [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Asset Beginning of period | 40 | 510 |
Net realized/unrealized gains (losses) included in net income | (1) | 11 |
Purchases | 27 | 11 |
Sales | (93) | |
Settlements | (1) | |
Transfer into Level | 6 | 11 |
Transfer out of Level | (40) | (409) |
Currency Movement | 1 | (1) |
Asset at end of period | 32 | 40 |
Change in unrealized gains (losses) on assets still held | (1) | (8) |
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 | 28 | 45 |
Net realized/unrealized gains (losses) included in net income | 2 | 3 |
Sales | (9) | |
Settlements | (4) | (39) |
Transfer into Level | 28 | |
Asset at end of period | 26 | 28 |
Change in unrealized gains (losses) on assets still held | 2 | (4) |
Level 3 [Member] | AFS [Member] | Public equities [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Net realized/unrealized gains (losses) included in net income | (1) | |
Net realized/unrealized gains (losses) included in net AOCI | 1 | |
Level 3 [Member] | AFS [Member] | Other government and agency [Member] | Debt securities [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Transfer into Level | 10 | |
Currency Movement | (1) | |
Asset at end of period | 9 | |
Level 3 [Member] | AFS [Member] | Corporate [member] | Debt securities [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Asset Beginning of period | 1 | 3 |
Net realized/unrealized gains (losses) included in net income | 1 | |
Sales | (3) | |
Transfer out of Level | (1) | |
Asset at end of period | 1 | |
Level 3 [Member] | Real estate [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Asset Beginning of period | 35,533 | 30,589 |
Net realized/unrealized gains (losses) included in net income | 1,473 | 3,448 |
Net realized/unrealized gains (losses) included in net AOCI | 8 | 2 |
Purchases | 5,342 | 5,317 |
Sales | (987) | (1,674) |
Settlements | (1,479) | (1,492) |
Transfer into Level | 366 | 44 |
Transfer out of Level | (41) | (409) |
Currency Movement | 1,547 | (292) |
Asset at end of period | 41,762 | 35,533 |
Change in unrealized gains (losses) on assets still held | 1,586 | 3,183 |
Level 3 [Member] | Real estate [Member] | Other invested assets [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Asset Beginning of period | 24,043 | 19,049 |
Net realized/unrealized gains (losses) included in net income | 1,922 | 2,731 |
Net realized/unrealized gains (losses) included in net AOCI | 7 | 2 |
Purchases | 4,934 | 5,058 |
Sales | (666) | (1,131) |
Settlements | (1,474) | (1,453) |
Transfer into Level | 248 | 5 |
Currency Movement | 1,216 | (218) |
Asset at end of period | 30,230 | 24,043 |
Change in unrealized gains (losses) on assets still held | 2,046 | 2,569 |
Level 3 [Member] | Real estate [Member] | Investment property [Member] | ||
Disclosure of fair value measurement of assets [Line Items] | ||
Asset Beginning of period | 11,421 | 10,982 |
Net realized/unrealized gains (losses) included in net income | (443) | 702 |
Purchases | 312 | 186 |
Sales | (237) | (376) |
Transfer into Level | 15 | |
Currency Movement | 326 | (73) |
Asset at end of period | 11,394 | 11,421 |
Change in unrealized gains (losses) on assets still held | $ (446) | $ 626 |
Derivative and Hedging Instru_3
Derivative and Hedging Instruments - Summary of Gross Notional Amount and Fair Value of Derivative Instruments (Detail) - CAD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of detailed information about hedges [Line Items] | ||
Notional amount | $ 395,957,000,000 | $ 440,098,000,000 |
Fair value, assets | 8,588,000,000 | 17,503,000,000 |
Fair value, liabilities | 14,289,000,000 | 10,038,000,000 |
Interest rate swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Fair value, assets | 5,919,000,000 | 14,971,000,000 |
Fair value, liabilities | 12,025,000,000 | 7,829,000,000 |
Equity contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Fair value, assets | 366,000,000 | 1,677,000,000 |
Fair value, liabilities | 225,000,000 | 27,000,000 |
Credit default swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Fair value, assets | 4,000,000 | 1,000,000 |
Designated [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Notional amount | 2,002,000,000 | 2,124,000,000 |
Designated [Member] | Fair value hedges [Member] | Foreign currency swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Notional amount | 48,000,000 | 57,000,000 |
Designated [Member] | Cash flow hedges [Member] | Foreign currency swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Notional amount | 1,155,000,000 | 1,251,000,000 |
Designated [Member] | Cash flow hedges [Member] | Equity contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Notional amount | 173,000,000 | 145,000,000 |
Designated [Member] | Hedges of net investment in foreign operations [Member] | Foreign Currency Forwards [member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Notional amount | 626,000,000 | 671,000,000 |
Non designated [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Notional amount | 393,955,000,000 | 437,974,000,000 |
Non designated [Member] | Interest rate swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Notional amount | 268,081,000,000 | 300,556,000,000 |
Non designated [Member] | Foreign currency swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Notional amount | 39,667,000,000 | 36,405,000,000 |
Non designated [Member] | Forward contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Notional amount | 45,124,000,000 | 45,295,000,000 |
Non designated [Member] | Equity contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Notional amount | 16,930,000,000 | 18,577,000,000 |
Non designated [Member] | Interest rate futures [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Notional amount | 11,772,000,000 | 11,944,000,000 |
Non designated [Member] | Interest rate options [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Notional amount | 6,090,000,000 | 10,708,000,000 |
Non designated [Member] | Currency rate futures [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Notional amount | 2,319,000,000 | 3,086,000,000 |
Non designated [Member] | Credit default swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Notional amount | 159,000,000 | 44,000,000 |
Non designated [Member] | Equity futures [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Notional amount | 3,813,000,000 | 11,359,000,000 |
Fair value [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Fair value, assets | 8,588,000,000 | 17,503,000,000 |
Fair value, liabilities | (14,289,000,000) | (10,038,000,000) |
Fair value [Member] | Designated [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Fair value, assets | 48,000,000 | 25,000,000 |
Fair value, liabilities | 231,000,000 | 380,000,000 |
Fair value [Member] | Designated [Member] | Fair value hedges [Member] | Foreign currency swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Fair value, assets | 5,000,000 | 1,000,000 |
Fair value, liabilities | 1,000,000 | |
Fair value [Member] | Designated [Member] | Cash flow hedges [Member] | Foreign currency swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Fair value, assets | 40,000,000 | 5,000,000 |
Fair value, liabilities | 203,000,000 | 379,000,000 |
Fair value [Member] | Designated [Member] | Cash flow hedges [Member] | Equity contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Fair value, assets | 3,000,000 | 10,000,000 |
Fair value [Member] | Designated [Member] | Hedges of net investment in foreign operations [Member] | Foreign Currency Forwards [member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Fair value, assets | 9,000,000 | |
Fair value, liabilities | 28,000,000 | 0 |
Fair value [Member] | Non designated [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Fair value, assets | 8,540,000,000 | 17,478,000,000 |
Fair value, liabilities | 14,058,000,000 | 9,658,000,000 |
Fair value [Member] | Non designated [Member] | Interest rate swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Fair value, assets | 5,751,000,000 | 11,832,000,000 |
Fair value, liabilities | 7,557,000,000 | 7,347,000,000 |
Fair value [Member] | Non designated [Member] | Foreign currency swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Fair value, assets | 2,029,000,000 | 790,000,000 |
Fair value, liabilities | 1,579,000,000 | 1,722,000,000 |
Fair value [Member] | Non designated [Member] | Forward contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Fair value, assets | 295,000,000 | 2,674,000,000 |
Fair value, liabilities | 4,697,000,000 | 562,000,000 |
Fair value [Member] | Non designated [Member] | Equity contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Fair value, assets | 363,000,000 | 1,667,000,000 |
Fair value, liabilities | 225,000,000 | 27,000,000 |
Fair value [Member] | Non designated [Member] | Interest rate options [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Fair value, assets | 98,000,000 | 514,000,000 |
Fair value [Member] | Non designated [Member] | Credit default swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Fair value, assets | $ 4,000,000 | $ 1,000,000 |
Derivative and Hedging Instru_4
Derivative and Hedging Instruments - Summary of Fair Values of Derivative Instruments by Remaining Term to Maturity (Detail) - CAD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about hedges [Line Items] | ||
Derivative assets | $ 8,588,000,000 | $ 17,503,000,000 |
Derivative liabilities | 14,289,000,000 | 10,038,000,000 |
Remaining term to maturity (notional amounts) | 395,957,000,000 | 440,098,000,000 |
Credit equivalent amount | 2,002,000,000 | 4,176,000,000 |
Capital Requirement | 38,000,000 | 76,000,000 |
Fair value [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative assets | 8,588,000,000 | 17,503,000,000 |
Derivative liabilities | (14,289,000,000) | (10,038,000,000) |
Fair value, net | (5,701,000,000) | 7,465,000,000 |
Interest rate swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 314,357,000,000 | 354,376,000,000 |
Credit equivalent amount | 491,000,000 | 1,994,000,000 |
Capital Requirement | 13,000,000 | 43,000,000 |
Interest rate swaps [Member] | Fair value [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative assets | 6,414,000,000 | 15,693,000,000 |
Derivative liabilities | (8,653,000,000) | |
Fair value, net | (6,408,000,000) | 7,040,000,000 |
Interest rate swaps [Member] | OTC swap contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 126,450,000,000 | 117,030,000,000 |
Credit equivalent amount | 419,000,000 | 1,582,000,000 |
Capital Requirement | 9,000,000 | 29,000,000 |
Interest rate swaps [Member] | OTC swap contracts [Member] | Fair value [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative assets | 5,992,000,000 | 12,112,000,000 |
Derivative liabilities | (8,135,000,000) | (7,717,000,000) |
Fair value, net | (2,143,000,000) | 4,395,000,000 |
Interest rate swaps [Member] | Cleared swap contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 141,631,000,000 | 183,526,000,000 |
Interest rate swaps [Member] | Cleared swap contracts [Member] | Fair value [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative assets | 254,000,000 | 441,000,000 |
Derivative liabilities | (219,000,000) | (453,000,000) |
Fair value, net | 35,000,000 | (12,000,000) |
Interest rate swaps [Member] | Forward contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 28,414,000,000 | 31,168,000,000 |
Credit equivalent amount | 8,000,000 | 299,000,000 |
Capital Requirement | 5,000,000 | |
Interest rate swaps [Member] | Forward contracts [Member] | Fair value [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative assets | 70,000,000 | 2,625,000,000 |
Derivative liabilities | (4,468,000,000) | (483,000,000) |
Fair value, net | (4,398,000,000) | 2,142,000,000 |
Interest rate swaps [Member] | Futures [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 11,772,000,000 | 11,944,000,000 |
Interest rate swaps [Member] | Futures [Member] | Fair value [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Fair value, net | 0 | |
Interest rate swaps [Member] | Options purchased [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 6,090,000,000 | 10,708,000,000 |
Credit equivalent amount | 64,000,000 | 113,000,000 |
Capital Requirement | 4,000,000 | 9,000,000 |
Interest rate swaps [Member] | Options purchased [Member] | Fair value [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative assets | 98,000,000 | 515,000,000 |
Fair value, net | 98,000,000 | 515,000,000 |
Foreign exchange [Member] | Forward contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 17,336,000,000 | 14,798,000,000 |
Credit equivalent amount | 89,000,000 | 85,000,000 |
Foreign exchange [Member] | Forward contracts [Member] | Fair value [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative assets | 226,000,000 | 58,000,000 |
Derivative liabilities | (258,000,000) | (79,000,000) |
Fair value, net | (32,000,000) | (21,000,000) |
Foreign exchange [Member] | Futures [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 2,319,000,000 | 3,086,000,000 |
Foreign exchange [Member] | Futures [Member] | Fair value [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Fair value, net | 0 | |
Foreign exchange [Member] | Swap contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 40,870,000,000 | 37,713,000,000 |
Credit equivalent amount | 1,166,000,000 | 1,302,000,000 |
Capital Requirement | 23,000,000 | 25,000,000 |
Foreign exchange [Member] | Swap contracts [Member] | Fair value [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative assets | 2,067,000,000 | 801,000,000 |
Derivative liabilities | (1,846,000,000) | (2,181,000,000) |
Fair value, net | 221,000,000 | (1,380,000,000) |
Credit derivatives [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 159,000,000 | 44,000,000 |
Credit derivatives [Member] | Fair value [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative assets | 4,000,000 | 1,000,000 |
Fair value, net | 4,000,000 | 1,000,000 |
Equity contracts [Member] | Futures [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 3,813,000,000 | 11,359,000,000 |
Equity contracts [Member] | Options purchased [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 16,160,000,000 | 17,730,000,000 |
Credit equivalent amount | 232,000,000 | 766,000,000 |
Capital Requirement | 2,000,000 | 8,000,000 |
Equity contracts [Member] | Options purchased [Member] | Fair value [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative assets | 335,000,000 | 1,616,000,000 |
Derivative liabilities | (218,000,000) | (17,000,000) |
Fair value, net | 117,000,000 | 1,599,000,000 |
Equity contracts [Member] | Swap contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 943,000,000 | 992,000,000 |
Credit equivalent amount | 24,000,000 | 29,000,000 |
Equity contracts [Member] | Swap contracts [Member] | Fair value [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative assets | 26,000,000 | 57,000,000 |
Derivative liabilities | (7,000,000) | (10,000,000) |
Fair value, net | 19,000,000 | 47,000,000 |
Financial Instruments [member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 395,957,000,000 | 440,098,000,000 |
Credit equivalent amount | 2,002,000,000 | 4,176,000,000 |
Capital Requirement | 38,000,000 | 76,000,000 |
Financial Instruments [member] | Fair value [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative assets | 9,072,000,000 | 18,226,000,000 |
Derivative liabilities | (15,151,000,000) | (10,940,000,000) |
Fair value, net | (6,079,000,000) | 7,286,000,000 |
Accrued interest [Member] | Fair value [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative assets | 484,000,000 | 723,000,000 |
Derivative liabilities | (862,000,000) | (902,000,000) |
Fair value, net | (378,000,000) | (179,000,000) |
Less than 1 year [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative assets | 580,000,000 | 2,500,000,000 |
Derivative liabilities | 2,656,000,000 | 294,000,000 |
Remaining term to maturity (notional amounts) | 77,262,000,000 | 97,100,000,000 |
Less than 1 year [Member] | Interest rate swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 38,572,000,000 | 54,262,000,000 |
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) | 8,817,000,000 | 4,554,000,000 |
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) | 2,494,000,000 | 21,722,000,000 |
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) | 14,290,000,000 | 14,636,000,000 |
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) | 11,772,000,000 | 11,944,000,000 |
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) | 1,199,000,000 | 1,406,000,000 |
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) | 17,336,000,000 | 14,798,000,000 |
Less than 1 year [Member] | Foreign exchange [Member] | Futures [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 2,319,000,000 | 3,086,000,000 |
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) | 2,026,000,000 | 1,941,000,000 |
Less than 1 year [Member] | Credit derivatives [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 15,000,000 | 11,000,000 |
Less than 1 year [Member] | Equity contracts [Member] | Futures [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 3,813,000,000 | 11,359,000,000 |
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) | 12,634,000,000 | 10,974,000,000 |
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) | 547,000,000 | 669,000,000 |
Less than 1 year [Member] | Financial Instruments [member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 77,262,000,000 | 97,100,000,000 |
1 to 3 years [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative assets | 556,000,000 | 1,803,000,000 |
Derivative liabilities | 1,956,000,000 | 387,000,000 |
3 to 5 years [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative assets | 556,000,000 | 1,000,000,000 |
Derivative liabilities | 1,146,000,000 | 379,000,000 |
1 to 5 years [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 65,612,000,000 | 84,070,000,000 |
1 to 5 years [Member] | Interest rate swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 51,071,000,000 | 68,129,000,000 |
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) | 19,253,000,000 | 21,884,000,000 |
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) | 16,823,000,000 | 27,665,000,000 |
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) | 13,926,000,000 | 15,791,000,000 |
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) | 1,069,000,000 | 2,789,000,000 |
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) | 0 | |
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) | 10,475,000,000 | 8,869,000,000 |
1 to 5 years [Member] | Credit derivatives [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 144,000,000 | 33,000,000 |
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) | 3,526,000,000 | 6,716,000,000 |
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) | 396,000,000 | 323,000,000 |
1 to 5 years [Member] | Financial Instruments [member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 65,612,000,000 | 84,070,000,000 |
Over 5 years [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative assets | 6,896,000,000 | 12,200,000,000 |
Derivative liabilities | 8,531,000,000 | 8,978,000,000 |
Remaining term to maturity (notional amounts) | 253,083,000,000 | 258,928,000,000 |
Over 5 years [Member] | Interest rate swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 224,714,000,000 | 231,985,000,000 |
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) | 98,380,000,000 | 90,592,000,000 |
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) | 122,314,000,000 | 134,139,000,000 |
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) | 198,000,000 | 741,000,000 |
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) | 3,822,000,000 | 6,513,000,000 |
Over 5 years [Member] | Foreign exchange [Member] | Swap contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 28,369,000,000 | 26,903,000,000 |
Over 5 years [Member] | Equity contracts [Member] | Options purchased [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | 40,000,000 | |
Over 5 years [Member] | Financial Instruments [member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Remaining term to maturity (notional amounts) | $ 253,083,000,000 | $ 258,928,000,000 |
Derivative and Hedging Instru_5
Derivative and Hedging Instruments - Additional Information (Detail) - CAD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about hedges [Line Items] | ||
Notional amount | $ 395,957,000,000 | $ 440,098,000,000 |
Fair value of reinsurance ceded guaranteed minimum income benefits | 585,000,000 | 734,000,000 |
Fair value of reinsurance assumed guaranteed minimum income benefits | 65,000,000 | 86,000,000 |
Fair value of credit and interest rate embedded derivatives | 395,000,000 | 11,000,000 |
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 | $ 9,000,000 | |
Maximum time frame for which variable cash flows are hedged | 14 years | |
Variable annuity guarantee dynamic hedging and macro equity risk hedging programs [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Notional amount | $ 77,000,000,000 | 121,000,000,000 |
Derivatives [member] | Interest Rate Benchmark Reform [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Notional amount | $ 211,000,000,000 | $ 258,000,000,000 |
Derivative and Hedging Instru_6
Derivative and Hedging Instruments - Summary of Fair Value and Fair Value Hierarchy of Derivative Instruments (Detail) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of detailed information about hedges [Line Items] | ||
Total derivative assets | $ 8,588 | $ 17,503 |
Total derivative liabilities | 14,289 | 10,038 |
Interest rate swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Total derivative assets | 5,919 | 14,971 |
Total derivative liabilities | 12,025 | 7,829 |
Foreign Exchange Contract [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Total derivative assets | 2,299 | 854 |
Total derivative liabilities | 2,039 | 2,182 |
Equity contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Total derivative assets | 366 | 1,677 |
Total derivative liabilities | 225 | 27 |
Credit default swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Total derivative assets | 4 | 1 |
Level 2 [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Total derivative assets | 8,429 | 14,981 |
Total derivative liabilities | 10,942 | 9,617 |
Level 2 [Member] | Interest rate swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Total derivative assets | 5,766 | 12,510 |
Total derivative liabilities | 8,689 | 7,419 |
Level 2 [Member] | Foreign Exchange Contract [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Total derivative assets | 2,298 | 854 |
Total derivative liabilities | 2,037 | 2,181 |
Level 2 [Member] | Equity contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Total derivative assets | 361 | 1,616 |
Total derivative liabilities | 216 | 17 |
Level 2 [Member] | Credit default swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Total derivative assets | 4 | 1 |
Level 3 [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Total derivative assets | 159 | 2,522 |
Total derivative liabilities | 3,347 | 421 |
Level 3 [Member] | Interest rate swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Total derivative assets | 153 | 2,461 |
Total derivative liabilities | 3,336 | 410 |
Level 3 [Member] | Foreign Exchange Contract [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Total derivative assets | 1 | |
Total derivative liabilities | 2 | 1 |
Level 3 [Member] | Equity contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Total derivative assets | 5 | 61 |
Total derivative liabilities | $ 9 | $ 10 |
Derivative and Hedging Instru_7
Derivative and Hedging Instruments - Summary of Recognized Gains Losses on Derivatives and Hedged Items in Fair Value Hedges in Investment Income (Detail) - Fair value hedges [Member] - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about hedges [Line Items] | ||
Gains (losses) recognized on derivatives | $ 7 | $ 4 |
Gains (losses) recognized for hedged items | (5) | (2) |
Ineffectiveness recognized in investment income | 2 | 2 |
Foreign currency swaps [Member] | Fixed rate assets [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Gains (losses) recognized on derivatives | 7 | 4 |
Gains (losses) recognized for hedged items | (5) | (2) |
Ineffectiveness recognized in investment income | $ 2 | $ 2 |
Derivative and Hedging Instru_8
Derivative and Hedging Instruments - Summary of Effects of Derivatives in Cash Flow Hedging Relationships (Detail) - Cash flow hedges [Member] - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about hedges [Line Items] | ||
Gains (losses) deferred in AOCI on derivatives | $ 210 | $ 74 |
Gains (losses) reclassified from AOCI into investment income | (9) | (14) |
Foreign currency swaps [Member] | Fixed rate assets [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Gains (losses) deferred in AOCI on derivatives | (1) | (1) |
Gains (losses) reclassified from AOCI into investment income | (1) | (1) |
Foreign currency swaps [Member] | Floating rate liabilities [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Gains (losses) deferred in AOCI on derivatives | 175 | 89 |
Gains (losses) reclassified from AOCI into investment income | (49) | 3 |
Foreign currency swaps [Member] | Fixed rate liabilities [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Gains (losses) deferred in AOCI on derivatives | 34 | (19) |
Gains (losses) reclassified from AOCI into investment income | 35 | (21) |
Equity contracts [Member] | Stock-based compensation [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Gains (losses) deferred in AOCI on derivatives | 2 | 5 |
Gains (losses) reclassified from AOCI into investment income | $ 6 | $ 5 |
Derivative and Hedging Instru_9
Derivative and Hedging Instruments - Summary of Effects of Net Investment Hedging Relationships (Detail) - Hedges of net investment in foreign operations [Member] - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about hedges [Line Items] | ||
Gains (losses) deferred in AOCI on derivatives | $ (444) | $ 120 |
Forward contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Gains (losses) deferred in AOCI on derivatives | 14 | 59 |
Non-functional currency denominated debt [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Gains (losses) deferred in AOCI on derivatives | $ (458) | $ 61 |
Derivative and Hedging Instr_10
Derivative and Hedging Instruments - Summary of Effects of Derivatives Not Designated in Qualifying Hedge Accounting Relationships (Detail) - Non designated [Member] - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about hedges [Line Items] | ||
Derivative investment income (loss) | $ (10,634) | $ (5,928) |
Interest rate swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative investment income (loss) | (3,428) | (1,986) |
Interest rate futures [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative investment income (loss) | (431) | (687) |
Interest rate options [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative investment income (loss) | (258) | (133) |
Foreign currency swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative investment income (loss) | 1,171 | (166) |
Currency rate futures [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative investment income (loss) | (103) | 66 |
Forward contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative investment income (loss) | (7,561) | (1,751) |
Equity futures [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative investment income (loss) | 794 | (2,140) |
Equity contracts [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative investment income (loss) | $ (818) | 871 |
Credit default swaps [Member] | ||
Disclosure of detailed information about hedges [Line Items] | ||
Derivative investment income (loss) | $ (2) |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Summary of Carrying Amounts of Goodwill and Intangible Assets (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Goodwill Beginning balance | $ 5,651 | $ 5,714 |
Total intangible assets Beginning balance | 4,264 | 4,215 |
Goodwill Net additions/ (disposals) | 255 | (5) |
Total intangible assets Net additions/ (disposals) | 433 | 326 |
Effect of changes in foreign exchange rates | 108 | (58) |
Goodwill Ending balance | 6,014 | 5,651 |
Total goodwill and intangible assets Net additions/ (disposals) | 688 | 321 |
Total goodwill and intangible assets Beginning balance | 9,915 | 9,929 |
Effect of changes in foreign exchange rates | 152 | (31) |
Amortization expense | 344 | 246 |
Effect of changes in foreign exchange rates - Total intangible assets | 260 | (89) |
Total goodwill and intangible assets Ending balance | 10,519 | 9,915 |
Total intangible assets Ending balance | 4,505 | 4,264 |
Distribution networks [Member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Total intangible assets Beginning balance | 888 | 806 |
Total intangible assets Net additions/ (disposals) | 6 | 131 |
Amortization expense | 47 | 44 |
Effect of changes in foreign exchange rates - Total intangible assets | 34 | (5) |
Total intangible assets Ending balance | 881 | 888 |
Customer relationships [Member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Total intangible assets Beginning balance | 687 | 738 |
Total intangible assets Net additions/ (disposals) | (2) | |
Amortization expense | 56 | 48 |
Effect of changes in foreign exchange rates - Total intangible assets | 12 | (1) |
Total intangible assets Ending balance | 643 | 687 |
Software [Member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Total intangible assets Beginning balance | 1,091 | 1,059 |
Total intangible assets Net additions/ (disposals) | 192 | 198 |
Amortization expense | 235 | 148 |
Effect of changes in foreign exchange rates - Total intangible assets | 20 | (18) |
Total intangible assets Ending balance | 1,068 | 1,091 |
Other [Member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Total intangible assets Beginning balance | 49 | 52 |
Total intangible assets Net additions/ (disposals) | 7 | 2 |
Amortization expense | 6 | 6 |
Effect of changes in foreign exchange rates - Total intangible assets | 2 | 1 |
Total intangible assets Ending balance | 52 | 49 |
Finite life intangible assets [Member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Total intangible assets Beginning balance | 2,715 | 2,655 |
Total intangible assets Net additions/ (disposals) | 205 | 329 |
Amortization expense | 344 | 246 |
Effect of changes in foreign exchange rates - Total intangible assets | 68 | (23) |
Total intangible assets Ending balance | 2,644 | 2,715 |
Brand [Member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Total intangible assets Beginning balance | 761 | 764 |
Effect of changes in foreign exchange rates - Total intangible assets | 52 | (3) |
Total intangible assets Ending balance | 813 | 761 |
Fund management contracts and other [Member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Total intangible assets Beginning balance | 788 | 796 |
Total intangible assets Net additions/ (disposals) | 228 | (3) |
Effect of changes in foreign exchange rates - Total intangible assets | 32 | (5) |
Total intangible assets Ending balance | 1,048 | 788 |
Indefinite life intangible assets [Member] | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||
Total intangible assets Beginning balance | 1,549 | 1,560 |
Total intangible assets Net additions/ (disposals) | 228 | (3) |
Effect of changes in foreign exchange rates - Total intangible assets | 84 | (8) |
Total intangible assets Ending balance | $ 1,861 | $ 1,549 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Carrying Amounts of Goodwill and Intangible Assets (Parenthetical) (Detail) - CAD ($) $ in Millions | 12 Months Ended | |||
Nov. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||||
Intangible assets ending balance | $ 4,505 | $ 4,264 | $ 4,215 | |
Goodwill recognized | (255) | 5 | ||
Percentage of voting equity interests acquired | 51% | |||
Manulife TEDA Fund Management [Member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||||
Cash transferred | $ 334 | |||
Fair value of joint venture interest valued | 321 | |||
Goodwill recognized | $ 255 | |||
Percentage of voting equity interests acquired | 51% | |||
Manulife TEDA Fund Management [Member] | Indefinite Life Fund Management Contracts [Member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||||
Acquisitions through business combinations, intangible assets other than goodwill | $ 185 | |||
Manulife TEDA Fund Management [Member] | Finite Life Management Contracts [Member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||||
Acquisitions through business combinations, intangible assets other than goodwill | 3 | |||
Distribution networks [Member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||||
Intangible assets ending balance | 881 | 888 | 806 | |
Distribution networks [Member] | Manulife TEDA Fund Management [Member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||||
Acquisitions through business combinations, intangible assets other than goodwill | $ 52 | |||
Customer relationships [Member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||||
Intangible assets ending balance | 643 | 687 | 738 | |
Software [Member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||||
Intangible assets ending balance | 1,068 | 1,091 | 1,059 | |
Other [Member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||||
Intangible assets ending balance | 52 | 49 | 52 | |
Fund management contracts and other [Member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||||
Intangible assets ending balance | 1,048 | 788 | $ 796 | |
US wealth and asset management [member] | Fund management contracts and other [Member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||||
Intangible assets ending balance | 273 | 273 | ||
Canada wealth and asset management [member] | Fund management contracts and other [Member] | ||||
Disclosure of reconciliation of changes in intangible assets and goodwill [Line Items] | ||||
Intangible assets ending balance | 397 | 371 | ||
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 | 1,517 | 1,456 | ||
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 | 1,146 | 1,132 | ||
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 | 2,736 | 2,484 | ||
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 | $ 136 | $ 124 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 CAD ($) Multiple | Dec. 31, 2021 CAD ($) Multiple | |
Disclosure of detailed information about intangible assets [Line Items] | ||
Impairment loss recognised in profit or loss good will | $ | $ 0 | $ 0 |
Price-to-earnings multiples | Multiple | 11.6 | 11.6 |
Canada [member] | ||
Disclosure of detailed information about intangible assets [Line Items] | ||
Tax rate applied to cash flow projections | 27.50% | 26.50% |
U.S. [member] | ||
Disclosure of detailed information about intangible assets [Line Items] | ||
Tax rate applied to cash flow projections | 21% | 21% |
Japan [Member] | ||
Disclosure of detailed information about intangible assets [Line Items] | ||
Tax rate applied to cash flow projections | 28% | 28% |
Bottom of range [Member] | ||
Disclosure of detailed information about intangible assets [Line Items] | ||
Growth rate used to extrapolate cash flow projections | 0% | 0% |
After-tax discount rate applied to cash flow projections | 10% | 8% |
Pre-tax discount rate applied to cash flow projections | 12.50% | 10% |
Top of range [Member] | ||
Disclosure of detailed information about intangible assets [Line Items] | ||
Growth rate used to extrapolate cash flow projections | 0.90% | 0.60% |
After-tax discount rate applied to cash flow projections | 12% | 10.10% |
Pre-tax discount rate applied to cash flow projections | 15% | 12.70% |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Summary of Impairment Testing of Goodwill (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of reconciliation of changes in goodwill [Line items] | ||
Goodwill Beginning balance | $ 5,651 | $ 5,714 |
Goodwill Additions/ disposals | 255 | (5) |
Effect of changes in foreign exchange rates | 108 | (58) |
Goodwill Ending balance | 6,014 | 5,651 |
Asia Insurance, excluding Japan [member] | ||
Disclosure of reconciliation of changes in goodwill [Line items] | ||
Goodwill Beginning balance | 152 | 159 |
Goodwill Additions/ disposals | (5) | |
Effect of changes in foreign exchange rates | 10 | (2) |
Goodwill Ending balance | 162 | 152 |
Japan insurance [member] | ||
Disclosure of reconciliation of changes in goodwill [Line items] | ||
Goodwill Beginning balance | 386 | 433 |
Effect of changes in foreign exchange rates | (26) | (47) |
Goodwill Ending balance | 360 | 386 |
Canadian insurance [member] | ||
Disclosure of reconciliation of changes in goodwill [Line items] | ||
Goodwill Beginning balance | 1,955 | 1,955 |
Effect of changes in foreign exchange rates | 5 | |
Goodwill Ending balance | 1,960 | 1,955 |
US insurance [member] | ||
Disclosure of reconciliation of changes in goodwill [Line items] | ||
Goodwill Beginning balance | 336 | 338 |
Effect of changes in foreign exchange rates | 24 | (2) |
Goodwill Ending balance | 360 | 336 |
Asia wealth and asset management [member] | ||
Disclosure of reconciliation of changes in goodwill [Line items] | ||
Goodwill Beginning balance | 183 | 185 |
Goodwill Additions/ disposals | 255 | |
Effect of changes in foreign exchange rates | 12 | (2) |
Goodwill Ending balance | 450 | 183 |
Canada wealth and asset management [member] | ||
Disclosure of reconciliation of changes in goodwill [Line items] | ||
Goodwill Beginning balance | 1,436 | 1,436 |
Effect of changes in foreign exchange rates | 0 | |
Goodwill Ending balance | 1,436 | 1,436 |
US wealth and asset management [member] | ||
Disclosure of reconciliation of changes in goodwill [Line items] | ||
Goodwill Beginning balance | 1,203 | 1,208 |
Effect of changes in foreign exchange rates | 83 | (5) |
Goodwill Ending balance | $ 1,286 | $ 1,203 |
Insurance Contract Liabilitie_3
Insurance Contract Liabilities and Reinsurance Assets - Summary of Components of Gross and Net Insurance Contract Liabilities (Detail) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of insurance contract liabilities and reinsurance assets [abstract] | |||
Gross insurance contract liabilities | $ 352,153 | $ 374,890 | |
Gross benefits payable and provision for unreported claims) | 5,610 | 5,251 | |
Gross policyholder amounts on deposit | 13,642 | 12,134 | |
Gross insurance contract liabilities | 371,405 | 392,275 | $ 385,554 |
Reinsurance assets | (47,674) | (44,531) | |
Net insurance contract liabilities | $ 323,731 | $ 347,744 |
Insurance Contract Liabilitie_4
Insurance Contract Liabilities and Reinsurance Assets - Summary of Components of Gross and Net Insurance Contract Liabilities (Parenthetical) (Detail) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of insurance contract liabilities and reinsurance assets [abstract] | ||
Reinsurance assets for investment contract liabilities | $ 38 | $ 48 |
Insurance Contract Liabilitie_5
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 ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Net insurance contract liabilities | $ 323,731 | $ 347,744 | |
Total reinsurance ceded | 47,674 | 44,531 | |
Total, gross of reinsurance ceded | 371,405 | 392,275 | $ 385,554 |
Other insurance contract liabilities [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Total, gross of reinsurance ceded | 17,136 | 15,472 | $ 14,377 |
Gross insurance contract liabilities [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Net insurance contract liabilities | 323,731 | 347,744 | |
Total reinsurance ceded | 47,674 | 44,531 | |
Total, gross of reinsurance ceded | 371,405 | 392,275 | |
Gross insurance contract liabilities [Member] | Corporate and other [member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Net insurance contract liabilities | (38) | (291) | |
Total reinsurance ceded | 134 | 202 | |
Total, gross of reinsurance ceded | 96 | (89) | |
Gross insurance contract liabilities [Member] | Asia [member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Net insurance contract liabilities | 111,341 | 111,432 | |
Total reinsurance ceded | 2,727 | 2,749 | |
Total, gross of reinsurance ceded | 114,068 | 114,181 | |
Gross insurance contract liabilities [Member] | Canada [member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Net insurance contract liabilities | 78,650 | 89,373 | |
Total reinsurance ceded | 1,676 | 430 | |
Total, gross of reinsurance ceded | 80,326 | 89,803 | |
Gross insurance contract liabilities [Member] | U.S. [member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Net insurance contract liabilities | 133,778 | 147,230 | |
Total reinsurance ceded | 43,137 | 41,150 | |
Total, gross of reinsurance ceded | 176,915 | 188,380 | |
Gross insurance contract liabilities [Member] | Individual insurance participating [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Net insurance contract liabilities | 86,798 | 86,695 | |
Total reinsurance ceded | 8,552 | 8,144 | |
Total, gross of reinsurance ceded | 95,350 | 94,839 | |
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 | 66,294 | 64,586 | |
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 | 12,637 | 13,518 | |
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 | 7,867 | 8,591 | |
Gross insurance contract liabilities [Member] | Individual insurance non-participating [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Net insurance contract liabilities | 140,158 | 151,108 | |
Total reinsurance ceded | 22,434 | 20,767 | |
Total, gross of reinsurance ceded | 162,592 | 171,875 | |
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 | (640) | (676) | |
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 | 34,684 | 36,387 | |
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 | 38,325 | 44,320 | |
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 | 67,789 | 71,077 | |
Gross insurance contract liabilities [Member] | Annuities and pensions [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Net insurance contract liabilities | 31,111 | 37,452 | |
Total reinsurance ceded | 15,793 | 14,681 | |
Total, gross of reinsurance ceded | 46,904 | 52,133 | |
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 | 24 | 22 | |
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 | 6,221 | 6,869 | |
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 | 13,593 | 16,554 | |
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 | 11,273 | 14,007 | |
Gross insurance contract liabilities [Member] | Other insurance contract liabilities [Member] | |||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | |||
Net insurance contract liabilities | 65,664 | 72,489 | |
Total reinsurance ceded | 895 | 939 | |
Total, gross of reinsurance ceded | 66,559 | 73,428 | |
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 | 578 | 363 | |
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 | 4,142 | 3,590 | |
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 | 14,095 | 14,981 | |
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 | $ 46,849 | $ 53,555 |
Insurance Contract Liabilitie_6
Insurance Contract Liabilities and Reinsurance Assets - Additional Information (Detail) $ in Millions, $ in Millions | 12 Months Ended | |||||
Nov. 15, 2021 CAD ($) | Dec. 31, 2022 CAD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CAD ($) | Sep. 30, 2022 CAD ($) | Sep. 30, 2022 USD ($) | |
Disclosure of insurance contract liabilities and reinsurance assets [line items] | ||||||
Fair value of assets backing net insurance contract liabilities excluding reinsurance assets | $ 317,854 | $ 354,587 | ||||
Fair value of assets backing capital and other liabilities | 524,297 | 571,431 | ||||
Change in insurance and investment contract liabilities | (80) | 287 | ||||
Change in net income attributed to shareholders (post-tax) | 36 | (41) | ||||
Coinsurance, after tax loss | 126 | |||||
John Hancock Life Insurance Company [Member] | ||||||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | ||||||
Coinsurance, after tax loss | 40 | |||||
Coinsurance transaction estimated after tax gain | $ 806 | |||||
John Hancock Life Insurance Company USA [Member] | ||||||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | ||||||
Coinsurance, after tax gain | 846 | |||||
Jackson National Life Insurance Company [member] | ||||||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | ||||||
Coinsurance, after tax gain | 40 | |||||
Mortality and morbidity updates [member] | ||||||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | ||||||
Change in insurance and investment contract liabilities | 157 | 350 | ||||
Change in net income attributed to shareholders (post-tax) | (126) | (257) | ||||
Lapses and policyholder behavior [member] | ||||||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | ||||||
Change in insurance and investment contract liabilities | 317 | 686 | ||||
Change in net income attributed to shareholders (post-tax) | (192) | (534) | ||||
Investment return assumptions [member] | ||||||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | ||||||
Change in insurance and investment contract liabilities | (210) | (257) | ||||
Change in net income attributed to shareholders (post-tax) | 157 | 168 | ||||
Other updates [member] | ||||||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | ||||||
Change in insurance and investment contract liabilities | (363) | 110 | ||||
Change in net income attributed to shareholders (post-tax) | 212 | 119 | ||||
Long term care triennial review [member] | ||||||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | ||||||
Change in insurance and investment contract liabilities | 19 | 51 | ||||
Change in net income attributed to shareholders (post-tax) | (15) | (40) | ||||
Insurance contract liabilities net of reinsurance actual premium Pretax increase | $ 2.5 | $ 1.9 | ||||
Increase in net income attributed to shareholders after tax due to future premium increase | $ 2.1 | $ 1.6 | ||||
Percentage of annual premium increase | 30% | 30% | ||||
Post tax gain towards other refinements to long term care valuation | $ 200 | $ 200 | ||||
Post tax charge towards other refinements to long term care valuation | 2,300 | $ 1,700 | ||||
Expense Updates [Member] | ||||||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | ||||||
Change in insurance and investment contract liabilities | (653) | |||||
Change in net income attributed to shareholders (post-tax) | 503 | |||||
Gain To net income attributed to shareholders after tax due to scale benefits | 263 | |||||
Gain To net income attributed to shareholders after tax due to reallocation of expenses and efficiency initiatives | $ 256 | |||||
Bottom of range [Member] | ||||||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | ||||||
Percentage provision for adverse deviation assumptions not specifically provided | 0% | |||||
Top of range [Member] | ||||||
Disclosure of insurance contract liabilities and reinsurance assets [line items] | ||||||
Percentage provision for adverse deviation assumptions not specifically provided | 20% | |||||
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 | $ 26,289 | $ 29,000 |
Insurance Contract Liabilitie_7
Insurance Contract Liabilities and Reinsurance Assets - Summary of Carrying Value of Assets Backing Net Insurance Contract Liabilities, Other Liabilities and Capital (Detail) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | $ 848,941 | $ 917,643 |
Mortgages [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 54,638 | 52,014 |
Private placements [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 47,057 | 42,842 |
Real estate [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 13,272 | 13,233 |
Debt securities [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 203,904 | 224,139 |
Public equities [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 23,519 | 28,067 |
Other [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 506,551 | 557,348 |
Individual insurance participating [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 86,798 | 86,695 |
Individual insurance participating [Member] | Mortgages [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 4,378 | 3,799 |
Individual insurance participating [Member] | Private placements [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 6,810 | 6,005 |
Individual insurance participating [Member] | Real estate [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 3,346 | 3,467 |
Individual insurance participating [Member] | Debt securities [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 42,279 | 43,278 |
Individual insurance participating [Member] | Public equities [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 12,253 | 14,667 |
Individual insurance participating [Member] | Other [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 17,732 | 15,479 |
Individual insurance non-participating [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 140,158 | 151,108 |
Individual insurance non-participating [Member] | Mortgages [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 14,101 | 13,295 |
Individual insurance non-participating [Member] | Private placements [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 19,498 | 17,741 |
Individual insurance non-participating [Member] | Real estate [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 7,030 | 6,814 |
Individual insurance non-participating [Member] | Debt securities [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 72,706 | 82,050 |
Individual insurance non-participating [Member] | Public equities [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 6,792 | 8,112 |
Individual insurance non-participating [Member] | Other [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 20,031 | 23,096 |
Annuities and pensions [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 31,111 | 37,452 |
Annuities and pensions [Member] | Mortgages [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 4,350 | 4,572 |
Annuities and pensions [Member] | Private placements [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 8,038 | 7,370 |
Annuities and pensions [Member] | Real estate [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 913 | 987 |
Annuities and pensions [Member] | Debt securities [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 15,686 | 19,575 |
Annuities and pensions [Member] | Public equities [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 336 | 453 |
Annuities and pensions [Member] | Other [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 1,788 | 4,495 |
Other insurance contract liabilities [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 65,664 | 72,489 |
Other insurance contract liabilities [Member] | Mortgages [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 8,766 | 8,526 |
Other insurance contract liabilities [Member] | Private placements [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 10,497 | 9,775 |
Other insurance contract liabilities [Member] | Real estate [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 1,875 | 1,782 |
Other insurance contract liabilities [Member] | Debt securities [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 31,998 | 36,207 |
Other insurance contract liabilities [Member] | Public equities [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 562 | 374 |
Other insurance contract liabilities [Member] | Other [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 11,966 | 15,825 |
Other Liabilities [member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 462,717 | 503,894 |
Other Liabilities [member] | Mortgages [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 22,997 | 21,802 |
Other Liabilities [member] | Private placements [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 2,003 | 1,723 |
Other Liabilities [member] | Real estate [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | (66) | 6 |
Other Liabilities [member] | Debt securities [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 9,739 | 10,723 |
Other Liabilities [member] | Public equities [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 675 | 626 |
Other Liabilities [member] | Other [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 427,369 | 469,014 |
Capital [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 62,493 | 66,005 |
Capital [Member] | Mortgages [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 46 | 20 |
Capital [Member] | Private placements [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 211 | 228 |
Capital [Member] | Real estate [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 174 | 177 |
Capital [Member] | Debt securities [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 31,496 | 32,306 |
Capital [Member] | Public equities [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | 2,901 | 3,835 |
Capital [Member] | Other [Member] | ||
Disclosure Of Carrying Value Measurement Of Assets [Line Items] | ||
Carrying value of total assets | $ 27,665 | $ 29,439 |
Insurance Contract Liabilitie_8
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 ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
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 attributed to shareholders | $ (500) | $ (500) |
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 attributed to shareholders | (500) | (500) |
5% adverse change in future morbidity rates (incidence and termination) [Member] | Long term care [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | ||
Decrease in net income attributed to shareholders | (4,500) | (5,500) |
10% Adverse change in future policy termination rates [Member] | Long term care [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | ||
Decrease in net income attributed to shareholders | (2,200) | (2,400) |
5% increase in future expense levels [Member] | Long term care [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | ||
Decrease in net income attributed to shareholders | $ (600) | $ (600) |
Insurance Contract Liabilitie_9
Insurance Contract Liabilities and Reinsurance Assets - Summary of Potential Impact on Net Income Attributed to Shareholders Arising From Changes to Non-economic Assumptions (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of sensitivity analysis for actuarial assumptions [abstract] | |
Deterioration in incidence rate | 5% |
Deterioration in claim termination rates | 5% |
Insurance Contract Liabiliti_10
Insurance Contract Liabilities and Reinsurance Assets - Summary of Potential Impact on Net Income Attributed to Shareholders Arising From Changes to Non-economic Assumptions For Long-Term Care (Detail) - Long term care [member] - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
2% Adverse change in future mortality rates [Member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | ||
Decrease in net income attributed to shareholders | $ (300) | $ (300) |
5% adverse change in future morbidity incidence rates [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | ||
Decrease in net income attributed to shareholders | (1,700) | (2,000) |
5% adverse change in future morbidity claims termination rates [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | ||
Decrease in net income attributed to shareholders | (2,400) | (3,100) |
10% adverse change in future policy termination rates [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | ||
Decrease in net income attributed to shareholders | (300) | (400) |
5% increase in future expense levels [Member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | ||
Decrease in net income attributed to shareholders | $ (100) | $ (100) |
Insurance Contract Liabiliti_11
Insurance Contract Liabilities and Reinsurance Assets - Summary of Change in Insurance Contract Liabilities (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of changes in insurance contract liabilities [Line Items] | ||
Beginning balance | $ 392,275 | $ 385,554 |
New policies | 5,481 | 6,223 |
Normal in-force movement | (39,000) | 4,160 |
Changes in methods and assumptions | 269 | 742 |
Reinsurance transactions | (1,469) | |
Impact of changes in foreign exchange rates | 13,849 | (4,404) |
Ending balance | 371,405 | 392,275 |
Net actuarial liabilities [Member] | ||
Disclosure of changes in insurance contract liabilities [Line Items] | ||
Beginning balance | 332,272 | 325,408 |
New policies | 5,365 | 5,947 |
Normal in-force movement | (39,174) | 4,689 |
Changes in methods and assumptions | 112 | 287 |
Reinsurance transactions | (2,419) | |
Impact of changes in foreign exchange rates | 10,439 | (4,059) |
Ending balance | 306,595 | 332,272 |
Other insurance contract liabilities [Member] | ||
Disclosure of changes in insurance contract liabilities [Line Items] | ||
Beginning balance | 15,472 | 14,377 |
Normal in-force movement | 1,216 | 1,283 |
Changes in methods and assumptions | (192) | |
Impact of changes in foreign exchange rates | 640 | (188) |
Ending balance | 17,136 | 15,472 |
Net insurance contract liabilities [Member] | ||
Disclosure of changes in insurance contract liabilities [Line Items] | ||
Beginning balance | 347,744 | 339,785 |
New policies | 5,365 | 5,947 |
Normal in-force movement | (37,958) | 5,972 |
Changes in methods and assumptions | (80) | 287 |
Reinsurance transactions | (2,419) | |
Impact of changes in foreign exchange rates | 11,079 | (4,247) |
Ending balance | 323,731 | 347,744 |
Reinsurance assets [member] | ||
Disclosure of changes in insurance contract liabilities [Line Items] | ||
Beginning balance | 44,531 | 45,769 |
New policies | 116 | 276 |
Normal in-force movement | (1,042) | (1,812) |
Changes in methods and assumptions | 349 | 455 |
Reinsurance transactions | 950 | |
Impact of changes in foreign exchange rates | 2,770 | (157) |
Ending balance | $ 47,674 | $ 44,531 |
Insurance Contract Liabiliti_12
Insurance Contract Liabilities and Reinsurance Assets - Summary of Change in Insurance Contract Liabilities (Parenthetical) (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of changes in liabilities under insurance contracts and reinsurance contracts issued [abstract] | ||
Change in gross insurance contract liabilities | $ 34,719 | $ 11,125 |
Change in insurance contract liabilities | (34,971) | 10,719 |
Increase in insurance contract liabilities | 35,830 | 9,868 |
Contract liabilities in gross claims and benefits | $ 1,111 | $ 1,257 |
Insurance Contract Liabiliti_13
Insurance Contract Liabilities and Reinsurance Assets - Summary of Actuarial Methods and Assumptions (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | ||
Total | $ (80) | $ 287 |
Attributed to participating policyholders' account | (77) | 222 |
Attributed to shareholders' account | (3) | 65 |
Change in net income attributed to shareholders | 36 | (41) |
Long-term care triennial review [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | ||
Total | 19 | 51 |
Attributed to shareholders' account | 19 | 51 |
Change in net income attributed to shareholders | (15) | (40) |
Mortality and morbidity updates [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | ||
Total | 157 | 350 |
Attributed to participating policyholders' account | (5) | |
Attributed to shareholders' account | 162 | 350 |
Change in net income attributed to shareholders | (126) | (257) |
Lapses and policyholder behaviour updates [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | ||
Total | 317 | 686 |
Attributed to participating policyholders' account | 74 | 18 |
Attributed to shareholders' account | 243 | 668 |
Change in net income attributed to shareholders | (192) | (534) |
Expense Updates [Member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | ||
Total | (653) | |
Attributed to participating policyholders' account | (25) | |
Attributed to shareholders' account | (628) | |
Change in net income attributed to shareholders | 503 | |
Investment related updates [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | ||
Total | (210) | (257) |
Attributed to participating policyholders' account | (1) | (2) |
Attributed to shareholders' account | (209) | (255) |
Change in net income attributed to shareholders | 157 | 168 |
Other updates [member] | ||
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | ||
Total | (363) | 110 |
Attributed to participating policyholders' account | (145) | 231 |
Attributed to shareholders' account | (218) | (121) |
Change in net income attributed to shareholders | $ 212 | $ 119 |
Insurance Contract Liabiliti_14
Insurance Contract Liabilities and Reinsurance Assets - Summary of Insurance Contract Liabilities, Payments Due by Period (Detail) $ in Millions | Dec. 31, 2022 CAD ($) |
Disclosure of types of insurance contracts [Line Items] | |
Insurance contract liabilities | $ 1,054,970 |
Less than 1 year [Member] | |
Disclosure of types of insurance contracts [Line Items] | |
Insurance contract liabilities | 11,498 |
1 to 3 years [Member] | |
Disclosure of types of insurance contracts [Line Items] | |
Insurance contract liabilities | 12,365 |
3 to 5 years [Member] | |
Disclosure of types of insurance contracts [Line Items] | |
Insurance contract liabilities | 18,496 |
Over 5 years [Member] | |
Disclosure of types of insurance contracts [Line Items] | |
Insurance contract liabilities | $ 1,012,611 |
Insurance Contract Liabiliti_15
Insurance Contract Liabilities and Reinsurance Assets - Summary of Gross Claims and Benefits (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of net, gross and reinsurer's share for amounts arising from insurance contracts [Line Items] | ||
Gross claims and benefits | $ 33,320 | $ 31,110 |
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 | 19,404 | 18,583 |
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 | 10,662 | 8,728 |
Annuity payments [Member] | ||
Disclosure of net, gross and reinsurer's share for amounts arising from insurance contracts [Line Items] | ||
Gross claims and benefits | 3,242 | 3,276 |
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 | 1,279 | 1,255 |
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 | $ (1,267) | $ (732) |
Investment Contract Liabiliti_3
Investment Contract Liabilities - Summary of Movement in Investment Contract Liabilities Measured at Fair Value (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of Investment Contract Liabilities [line items] | ||
Beginning balance | $ 3,117 | |
Ending balance | 3,248 | $ 3,117 |
Fair value [Member] | ||
Disclosure of Investment Contract Liabilities [line items] | ||
Beginning balance | 802 | 932 |
New policies | 93 | 54 |
Changes in market conditions | (39) | (38) |
Redemptions, surrenders and maturities | (106) | (138) |
Impact of changes in foreign exchange rates | 46 | (8) |
Ending balance | $ 796 | $ 802 |
Investment Contract Liabiliti_4
Investment Contract Liabilities - Summary of Investment Contract Liabilities Measured at Amortized Cost and Fair Value Associated with Contracts (Detail) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of Investment Contract Liabilities [line items] | |||
Investment contract liabilities | $ 3,248 | $ 3,117 | |
Amortized cost, gross of reinsurance ceded [Member] | |||
Disclosure of Investment Contract Liabilities [line items] | |||
Investment contract liabilities | 2,452 | 2,315 | $ 2,356 |
Amortized cost, gross of reinsurance ceded [Member] | U.S. fixed annuity products [Member] | |||
Disclosure of Investment Contract Liabilities [line items] | |||
Investment contract liabilities | 1,575 | 1,380 | |
Amortized cost, gross of reinsurance ceded [Member] | Canadian fixed annuity products [Member] | |||
Disclosure of Investment Contract Liabilities [line items] | |||
Investment contract liabilities | 877 | 935 | |
Fair value [Member] | |||
Disclosure of Investment Contract Liabilities [line items] | |||
Investment contract liabilities | 2,503 | 2,618 | |
Fair value [Member] | U.S. fixed annuity products [Member] | |||
Disclosure of Investment Contract Liabilities [line items] | |||
Investment contract liabilities | 1,547 | 1,602 | |
Fair value [Member] | Canadian fixed annuity products [Member] | |||
Disclosure of Investment Contract Liabilities [line items] | |||
Investment contract liabilities | $ 956 | $ 1,016 |
Investment Contract Liabiliti_5
Investment Contract Liabilities - Summary of Investment Contract Liabilities Measured at Amortized Cost and Fair Value Associated with Contracts (Parenthetical) (Detail) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of Investment Contract Liabilities [line items] | ||
Investment contract liabilities reinsured | $ 38 | $ 48 |
Investment contract liabilities | 3,248 | 3,117 |
Carrying amount [member] | ||
Disclosure of Investment Contract Liabilities [line items] | ||
Investment contract liabilities reinsured | 38 | 48 |
Investment contract liabilities | 2,414 | 2,267 |
Fair value [Member] | ||
Disclosure of Investment Contract Liabilities [line items] | ||
Investment contract liabilities reinsured | 38 | 52 |
Investment contract liabilities | $ 2,465 | $ 2,566 |
Investment Contract Liabiliti_6
Investment Contract Liabilities - Summary of Changes in Investment Contract Liabilities Measured at Amortized Cost (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of Investment Contract Liabilities [line items] | ||
Beginning balance | $ 3,117 | |
Ending balance | 3,248 | $ 3,117 |
Amortized cost, gross of reinsurance ceded [Member] | ||
Disclosure of Investment Contract Liabilities [line items] | ||
Beginning balance | 2,315 | 2,356 |
Policy deposits | 200 | 92 |
Interest | 67 | 71 |
Withdrawals | (236) | (191) |
Fees | (1) | (1) |
Other | (5) | |
Impact of changes in foreign exchange rates | 107 | (7) |
Ending balance | $ 2,452 | $ 2,315 |
Investment Contract Liabiliti_7
Investment Contract Liabilities - Summary of Contractual Obligations and Commitments Relating to Investment Contracts (Detail) $ in Millions | Dec. 31, 2022 CAD ($) |
Disclosure of Investment Contract Liabilities [line items] | |
Contractual obligations and commitments | $ 4,690 |
Less than 1 year [Member] | |
Disclosure of Investment Contract Liabilities [line items] | |
Contractual obligations and commitments | 300 |
1 to 3 years [Member] | |
Disclosure of Investment Contract Liabilities [line items] | |
Contractual obligations and commitments | 511 |
3 to 5 years [Member] | |
Disclosure of Investment Contract Liabilities [line items] | |
Contractual obligations and commitments | 514 |
Over 5 years [Member] | |
Disclosure of Investment Contract Liabilities [line items] | |
Contractual obligations and commitments | $ 3,365 |
Risk Management - Additional In
Risk Management - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 CAD ($) | Dec. 31, 2021 CAD ($) | Dec. 31, 2017 USD ($) | |
Disclosure of Risk Management [line items] | |||
Percentage of debt securities in investment grade with ratings ranging between AAA to BBB | 96% | 97% | |
Percentage of total mortgage portfolio | 13% | 14% | |
Loaned securities included in invested assets | $ 10,690 | $ 20,280 | |
Reverse repurchase transactions recorded as short-term receivables | 895 | 1,490 | |
Repurchase transactions recorded as payables | $ 895 | 536 | |
Term of credit default swaps | 5 years | ||
Credit protection purchased | $ 0 | 0 | |
Mitigated exposure to credit risk | 2,194 | 10,121 | |
Largest single counterparty exposure without master netting agreements or the benefit of collateral held | 7,949 | 8,593 | |
Largest single counterparty exposure with master netting agreements or the benefit of collateral held | 215 | 294 | |
Maximum credit exposure related to derivatives | 9,072 | 18,226 | |
Reinsurance assets | $ 47,712 | $ 44,579 | |
Percentage ceded to reinsurers | 91% | 94% | |
Exposure to credit risk | $ 25,247 | $ 25,466 | |
Net exposure after offsetting agreements and benefit of fair value of collateral held | 22,465 | 19,113 | |
Fixed Surplus Note [Member] | |||
Disclosure of Risk Management [line items] | |||
Net amounts of financial instruments presented in the Consolidated Statements of Financial Position | 0 | 0 | |
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 | 1,582 | 2,132 | |
Largest single counterparty exposure with master netting agreements or the benefit of collateral held | $ 0 | $ 0 | |
AA Credit Grades or Higher [Member] | |||
Disclosure of Risk Management [line items] | |||
Derivative exposure with counterparties, percentage | 36% | 17% | |
Securities lending [Member] | |||
Disclosure of Risk Management [line items] | |||
Loaned securities included in invested assets | $ 723 | $ 564 |
Risk Management - Summary of Gr
Risk Management - Summary of Gross Carrying Amount of Financial Instruments Subject to Credit Exposure (Detail) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of external credit grades [Line Items] | ||
Credit exposure | $ 380,464 | $ 398,863 |
Mortgages [Member] | ||
Disclosure of external credit grades [Line Items] | ||
Credit exposure | 54,638 | 52,014 |
Private placements [Member] | ||
Disclosure of external credit grades [Line Items] | ||
Credit exposure | 47,057 | 42,842 |
Policy loans [member] | ||
Disclosure of external credit grades [Line Items] | ||
Credit exposure | 6,894 | 6,397 |
Loans to Bank clients [Member] | ||
Disclosure of external credit grades [Line Items] | ||
Credit exposure | 2,781 | 2,506 |
Derivative Assets [Member] | ||
Disclosure of external credit grades [Line Items] | ||
Credit exposure | 8,588 | 17,503 |
Accrued investment income [member] | ||
Disclosure of external credit grades [Line Items] | ||
Credit exposure | 2,813 | 2,641 |
Reinsurance assets [member] | ||
Disclosure of external credit grades [Line Items] | ||
Credit exposure | 47,712 | 44,579 |
Other financial assets [Member] | ||
Disclosure of external credit grades [Line Items] | ||
Credit exposure | 6,077 | 6,242 |
FVTPL [Member] | ||
Disclosure of external credit grades [Line Items] | ||
Credit exposure | 170,273 | 189,722 |
AFS [Member] | ||
Disclosure of external credit grades [Line Items] | ||
Credit exposure | 32,220 | 33,097 |
Other [Member] | ||
Disclosure of external credit grades [Line Items] | ||
Credit exposure | $ 1,411 | $ 1,320 |
Risk Management - Summary of Cr
Risk Management - Summary of Credit Quality and Carrying Value of Commercial Mortgages and Private Placements (Detail) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Commercial mortgages [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | $ 32,654 | $ 31,099 |
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 | 8,762 | 8,798 |
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 | 9,073 | 8,734 |
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 | 7,367 | 6,996 |
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 | 4,720 | 3,559 |
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 | 2,732 | 3,012 |
Agricultural mortgages [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 359 | 361 |
Private placements [Member] | ||
Disclosure of credit quality and carrying value of commercial mortgages and private placements [line items] | ||
Credit quality and carrying value | 47,057 | 42,842 |
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 | 80,070 | 74,302 |
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 | 967 | 985 |
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 | 113 | 113 |
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 | 102 | 56 |
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 | 500 | 557 |
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 | 72 | 47 |
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 | 180 | 212 |
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 | 904 | 976 |
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 | 1,871 | 1,961 |
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 | 7,118 | 5,851 |
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 | 1,526 | 1,340 |
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 | 1,460 | 1,256 |
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 | 2,213 | 1,869 |
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 | 929 | 376 |
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 | 990 | 1,010 |
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 | 6,991 | 5,720 |
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 | 14,109 | 11,571 |
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 | 18,683 | 18,549 |
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 | 4,872 | 5,179 |
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 | 5,950 | 6,004 |
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 | 3,751 | 3,771 |
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 | 3,312 | 2,808 |
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 | 798 | 787 |
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 | 119 | 119 |
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 | 16,534 | 16,147 |
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 | 35,336 | 34,815 |
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 | 5,589 | 5,278 |
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 | 2,055 | 1,936 |
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 | 1,471 | 1,291 |
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 | 892 | 767 |
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 | 407 | 328 |
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 | 764 | 956 |
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 | 240 | 242 |
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 | 17,176 | 16,220 |
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 | 23,005 | 21,740 |
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 | 262 | 394 |
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 | 194 | 228 |
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 | 57 | 87 |
BB [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 | 11 | 32 |
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 | 0 | |
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 | 47 | |
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 | 0 | |
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 | 1,105 | 1,161 |
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 | 1,367 | 1,555 |
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 | 35 | 42 |
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 | 2 | 2 |
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 | 33 | 40 |
B and lower [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 | 0 | |
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 | 4,347 | 2,618 |
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 | $ 4,382 | $ 2,660 |
Risk Management - Summary of Ca
Risk Management - Summary of Carrying Value of Residential Mortgages and Loans to Bank Clients (Detail) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of Credit Quality [line items] | ||
Carrying value of residential mortgages and loans to bank clients | $ 24,406 | $ 23,060 |
Residential mortgages [Member] | Performing [Member] | ||
Disclosure of Credit Quality [line items] | ||
Carrying value of residential mortgages and loans to bank clients | 21,584 | 20,536 |
Residential mortgages [Member] | Non-performing [Member] | ||
Disclosure of Credit Quality [line items] | ||
Carrying value of residential mortgages and loans to bank clients | 41 | 18 |
Loans to Bank clients [Member] | Performing [Member] | ||
Disclosure of Credit Quality [line items] | ||
Carrying value of residential mortgages and loans to bank clients | 2,778 | 2,506 |
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 | |
Insured [Member] | ||
Disclosure of Credit Quality [line items] | ||
Carrying value of residential mortgages and loans to bank clients | 7,023 | 7,270 |
Insured [Member] | Residential mortgages [Member] | Performing [Member] | ||
Disclosure of Credit Quality [line items] | ||
Carrying value of residential mortgages and loans to bank clients | 7,015 | 7,264 |
Insured [Member] | Residential mortgages [Member] | Non-performing [Member] | ||
Disclosure of Credit Quality [line items] | ||
Carrying value of residential mortgages and loans to bank clients | 8 | 6 |
Uninsured [Member] | ||
Disclosure of Credit Quality [line items] | ||
Carrying value of residential mortgages and loans to bank clients | 17,383 | 15,790 |
Uninsured [Member] | Residential mortgages [Member] | Performing [Member] | ||
Disclosure of Credit Quality [line items] | ||
Carrying value of residential mortgages and loans to bank clients | 14,569 | 13,272 |
Uninsured [Member] | Residential mortgages [Member] | Non-performing [Member] | ||
Disclosure of Credit Quality [line items] | ||
Carrying value of residential mortgages and loans to bank clients | 33 | 12 |
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 | 2,778 | $ 2,506 |
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 | $ 3 |
Risk Management - Summary of _2
Risk Management - Summary of Carrying Value of Past Due but not Impaired and Impaired Financial Assets (Detail) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
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 | $ 3,694 | $ 452 |
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 | 469 | 63 |
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 | 103 | 61 |
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 | 70 | 308 |
Impaired [Member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Carrying value or impaired value, financial assets | 313 | 228 |
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 | 229 | 175 |
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 | 74 | 51 |
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 | |
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 | 2,130 | 20 |
FVTPL [Member] | Impaired [Member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Carrying value or impaired value, financial assets | 9 | 2 |
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 | 922 | |
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 | 3,437 | 405 |
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 | 317 | 63 |
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 | 103 | 61 |
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 | 36 | 261 |
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 | 2,059 | 20 |
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 | 922 | |
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 | 257 | 47 |
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 | 152 | |
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 | 34 | $ 47 |
90 days and greater [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 | $ 71 |
Risk Management - Summary of _3
Risk Management - Summary of Carrying Value of Past Due but not Impaired and Impaired Financial Assets (Parenthetical) (Detail) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Later than two months and not later than three months [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets past due payments delayed | $ 12 | $ 0 |
Financial assets past due | 3,297 | 20 |
Later than three months [member] | ||
Disclosure of financial assets that are either past due or impaired [line items] | ||
Financial assets past due payments delayed | 4 | 0 |
Financial assets past due | $ 224 | $ 0 |
Risk Management - Summary of Co
Risk Management - Summary of Company's Loans Considered Impaired (Detail) - Financial assets impaired loan [member] - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Net carrying value | $ 303 | $ 226 |
Private placements [Member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Net carrying value | 229 | 175 |
Mortgages and loans to Bank clients [Member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Net carrying value | 74 | 51 |
Gross Carrying Value [Member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Net carrying value | 350 | 270 |
Gross Carrying Value [Member] | Private placements [Member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Net carrying value | 254 | 197 |
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 | 96 | 73 |
Allowances for losses [Member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Net carrying value | 47 | 44 |
Allowances for losses [Member] | Private placements [Member] | ||
Disclosure of financial assets that are either past due or impaired [Line Items] | ||
Net carrying value | 25 | 22 |
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 | $ 22 | $ 22 |
Risk Management - Summary of Re
Risk Management - Summary of Reconciliation of Allowance for Loan Losses (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of credit risk exposure [Line Items] | ||
Beginning balance | $ 44 | $ 107 |
Provisions | 26 | 26 |
Recoveries | (20) | (74) |
Write-offs | (3) | (15) |
Ending balance | 47 | 44 |
Private placements [Member] | ||
Disclosure of credit risk exposure [Line Items] | ||
Beginning balance | 22 | 79 |
Provisions | 22 | 14 |
Recoveries | (18) | (58) |
Write-offs | (1) | (13) |
Ending balance | 25 | 22 |
Mortgages and loans to Bank clients [Member] | ||
Disclosure of credit risk exposure [Line Items] | ||
Beginning balance | 22 | 28 |
Provisions | 4 | 12 |
Recoveries | (2) | (16) |
Write-offs | (2) | (2) |
Ending balance | $ 22 | $ 22 |
Risk Management - Summary of _4
Risk Management - Summary of Credit Default Swap Protection Sold (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of information about credit exposures designated as measured at fair value through profit or loss [Line Items] | ||
Notional amount | $ 395,957 | $ 440,098 |
Credit default swaps [Member] | ||
Disclosure of information about credit exposures designated as measured at fair value through profit or loss [Line Items] | ||
Notional amount | 159 | 44 |
Fair value | $ 4 | $ 1 |
Weighted average maturity (in years) | 4 years | 2 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 | $ 133 | $ 16 |
Fair value | $ 4 | |
Weighted average maturity (in years) | 4 years | 1 year |
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 | $ 26 | $ 28 |
Fair value | $ 1 | |
Weighted average maturity (in years) | 1 year | 2 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 | $ 159 | $ 44 |
Fair value | $ 4 | $ 1 |
Weighted average maturity (in years) | 4 years | 2 years |
Risk Management - Summary of Ef
Risk Management - Summary of Effect of Conditional Master Netting and Similar Arrangements (Detail) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of offsetting of financial liabilities [Line Items] | ||
Gross amounts of financial instruments presented in the Consolidated Statements of Financial Position | $ 10,690 | $ 20,280 |
Amounts subject to an enforceable master netting arrangement or similar agreements | (7,949) | (8,593) |
Financial and cash collateral pledged (received) | (2,526) | (11,393) |
Net amount including financing entities | 215 | 294 |
Net amounts excluding financing entities | 215 | 294 |
Gross amounts of financial instruments presented in the Consolidated Statements of Financial Position | (16,046) | (11,476) |
Amounts subject to an enforceable master netting arrangement or similar agreements | 7,949 | 8,593 |
Financial and cash collateral pledged (received) | 7,950 | 2,603 |
Net amount including financing entities | (147) | (280) |
Net amounts excluding financing entities | (103) | (79) |
Derivative Assets [Member] | ||
Disclosure of offsetting of financial liabilities [Line Items] | ||
Gross amounts of financial instruments presented in the Consolidated Statements of Financial Position | 9,072 | 18,226 |
Amounts subject to an enforceable master netting arrangement or similar agreements | (7,170) | (8,410) |
Financial and cash collateral pledged (received) | (1,687) | (9,522) |
Net amount including financing entities | 215 | 294 |
Net amounts excluding financing entities | 215 | 294 |
Securities lending [Member] | ||
Disclosure of offsetting of financial liabilities [Line Items] | ||
Gross amounts of financial instruments presented in the Consolidated Statements of Financial Position | 723 | 564 |
Financial and cash collateral pledged (received) | (723) | (564) |
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 | 895 | 1,490 |
Amounts subject to an enforceable master netting arrangement or similar agreements | (779) | (183) |
Financial and cash collateral pledged (received) | (116) | (1,307) |
Derivative Liabilities [Member] | ||
Disclosure of offsetting of financial liabilities [Line Items] | ||
Gross amounts of financial instruments presented in the Consolidated Statements of Financial Position | (15,151) | (10,940) |
Amounts subject to an enforceable master netting arrangement or similar agreements | 7,170 | 8,410 |
Financial and cash collateral pledged (received) | 7,834 | 2,250 |
Net amount including financing entities | (147) | (280) |
Net amounts excluding financing entities | (103) | (79) |
Repurchase agreements [Member] | ||
Disclosure of offsetting of financial liabilities [Line Items] | ||
Gross amounts of financial instruments presented in the Consolidated Statements of Financial Position | (895) | (536) |
Amounts subject to an enforceable master netting arrangement or similar agreements | 779 | 183 |
Financial and cash collateral pledged (received) | $ 116 | $ 353 |
Risk Management - Summary of _5
Risk Management - Summary of Effect of Conditional Master Netting and Similar Arrangements (Parenthetical) (Detail) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of offsetting of financial assets [abstract] | ||
Accrued interest receivable | $ 488 | $ 725 |
Accrued interest payable | 862 | 902 |
Over-collateralized on OTC derivative assets | 507 | 599 |
Over-collateralized on OTC derivative liabilities | 1,528 | 875 |
Over-collateralized on securities lending and reverse purchase agreements | 63 | 36 |
Over-collateralized on repurchase agreements | $ 0 | $ 2 |
Risk Management - Summary of th
Risk Management - Summary of the Effect of Unconditional Netting (Detail) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Credit Linked Note [member] | ||
Disclosure of offsetting of financial liabilities [Line Items] | ||
Gross amounts of financial instruments | $ 1,242 | $ 1,054 |
Amounts subject to an enforceable netting arrangement | (1,242) | (1,054) |
Variable Funding Surplus Note [member] | ||
Disclosure of offsetting of financial liabilities [Line Items] | ||
Gross amounts of financial instruments | (1,242) | (1,054) |
Amounts subject to an enforceable netting arrangement | $ 1,242 | $ 1,054 |
Risk Management - Schedule of R
Risk Management - Schedule of Risk Concentrations (Detail) - Asset classes and individual investment risks [Member] - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
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 | 96% | 97% |
Government debt securities as a per cent of total debt securities | 36% | 36% |
Government private placements as a per cent of total private placements | 10% | 11% |
Highest exposure to a single non-government debt security and private placement issuer | $ 1,006 | $ 1,167 |
Largest single issuer as a per cent of the total equity portfolio | 2% | 2% |
Income producing commercial office properties (2022 – 41% of real estate, 2021 – 47%) | $ 5,486 | $ 6,244 |
Largest concentration of mortgages and real estate(2) – Ontario Canada (2022 – 27%, 2021 – 28%) | $ 18,343 | $ 18,253 |
Risk Management - Schedule of_2
Risk Management - Schedule of Risk Concentrations (Parenthetical) (Detail) | Dec. 31, 2022 | Dec. 31, 2021 |
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 | 41% | 47% |
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 | 27% | 28% |
A [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Investment grade debt securities and private placements rate | 39% | 39% |
AA [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Investment grade debt securities and private placements rate | 17% | 17% |
AAA [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [Line Items] | ||
Investment grade debt securities and private placements rate | 14% | 15% |
Risk Management - Schedule of D
Risk Management - Schedule of Distribution of Debt Securities and Private Placements Portfolio by Sector and Industry (Detail) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of Distribution of Debt Securities and Private Placement Portfolio by Sector and Industry [line items] | ||
Carrying value | $ 250,961 | $ 266,981 |
% of total | 100% | 100% |
Government and agency [Member] | ||
Disclosure of Distribution of Debt Securities and Private Placement Portfolio by Sector and Industry [line items] | ||
Carrying value | $ 77,236 | $ 84,244 |
% of total | 31% | 32% |
Utilities [Member] | ||
Disclosure of Distribution of Debt Securities and Private Placement Portfolio by Sector and Industry [line items] | ||
Carrying value | $ 46,315 | $ 48,372 |
% of total | 18% | 18% |
Financial [Member] | ||
Disclosure of Distribution of Debt Securities and Private Placement Portfolio by Sector and Industry [line items] | ||
Carrying value | $ 38,808 | $ 38,905 |
% of total | 15% | 15% |
Consumer [Member] | ||
Disclosure of Distribution of Debt Securities and Private Placement Portfolio by Sector and Industry [line items] | ||
Carrying value | $ 31,556 | $ 32,671 |
% of total | 13% | 12% |
Energy [Member] | ||
Disclosure of Distribution of Debt Securities and Private Placement Portfolio by Sector and Industry [line items] | ||
Carrying value | $ 16,314 | $ 19,637 |
% of total | 7% | 7% |
Industrial [Member] | ||
Disclosure of Distribution of Debt Securities and Private Placement Portfolio by Sector and Industry [line items] | ||
Carrying value | $ 23,823 | $ 24,727 |
% of total | 9% | 9% |
Other [Member] | ||
Disclosure of Distribution of Debt Securities and Private Placement Portfolio by Sector and Industry [line items] | ||
Carrying value | $ 16,909 | $ 18,425 |
% of total | 7% | 7% |
Risk Management - Schedule of G
Risk Management - Schedule of Geographic Concentration of Insurance and Investment Contract Liabilities, Including Embedded Derivatives (Detail) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of Concentration Risk [Line items] | ||
Concentration risk of liabilities | $ 327,401 | $ 350,909 |
US and Canada [Member] | ||
Disclosure of Concentration Risk [Line items] | ||
Concentration risk of liabilities | 205,407 | 228,284 |
Asia and Other [Member] | ||
Disclosure of Concentration Risk [Line items] | ||
Concentration risk of liabilities | 121,994 | 122,625 |
Gross insurance contract liabilities [Member] | ||
Disclosure of Concentration Risk [Line items] | ||
Concentration risk of liabilities | 375,113 | 395,488 |
Gross insurance contract liabilities [Member] | US and Canada [Member] | ||
Disclosure of Concentration Risk [Line items] | ||
Concentration risk of liabilities | 251,305 | 271,090 |
Gross insurance contract liabilities [Member] | Asia and Other [Member] | ||
Disclosure of Concentration Risk [Line items] | ||
Concentration risk of liabilities | 123,808 | 124,398 |
Reinsurance assets [Member] | ||
Disclosure of Concentration Risk [Line items] | ||
Concentration risk of liabilities | (47,712) | (44,579) |
Reinsurance assets [Member] | US and Canada [Member] | ||
Disclosure of Concentration Risk [Line items] | ||
Concentration risk of liabilities | (45,898) | (42,806) |
Reinsurance assets [Member] | Asia and Other [Member] | ||
Disclosure of Concentration Risk [Line items] | ||
Concentration risk of liabilities | $ (1,814) | $ (1,773) |
Long-Term Debt - Carrying Value
Long-Term Debt - Carrying Value of Long Term Debt Instruments (Detail) $ in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 CAD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CAD ($) | |
Disclosure of detailed information about borrowings [Line Items] | |||
Long-term debt | $ 6,234 | $ 4,882 | |
3.050% Senior notes [Member] | |||
Disclosure of detailed information about borrowings [Line Items] | |||
Issue date | Aug. 27, 2020 | ||
Maturity date | Aug. 27, 2060 | ||
Par value | $ 1,155 | ||
Long-term debt | $ 1,559 | 1,455 | |
5.375% Senior notes [Member] | |||
Disclosure of detailed information about borrowings [Line Items] | |||
Issue date | Mar. 04, 2016 | ||
Maturity date | Mar. 04, 2046 | ||
Par value | 750 | ||
Long-term debt | $ 1,004 | 939 | |
3.703% Senior notes [Member] | |||
Disclosure of detailed information about borrowings [Line Items] | |||
Issue date | Mar. 16, 2022 | ||
Maturity date | Mar. 16, 2032 | ||
Par value | 750 | ||
Long-term debt | $ 1,011 | ||
2.396% Senior notes [Member] | |||
Disclosure of detailed information about borrowings [Line Items] | |||
Issue date | Jun. 01, 2020 | ||
Maturity date | Jun. 01, 2027 | ||
Par value | 200 | ||
Long-term debt | $ 270 | 253 | |
2.484% Senior notes [Member] | |||
Disclosure of detailed information about borrowings [Line Items] | |||
Issue date | May 19, 2020 | ||
Maturity date | May 19, 2027 | ||
Par value | 500 | ||
Long-term debt | $ 674 | 630 | |
3.527% Senior notes [Member] | |||
Disclosure of detailed information about borrowings [Line Items] | |||
Issue date | Dec. 02, 2016 | ||
Maturity date | Dec. 02, 2026 | ||
Par value | 270 | ||
Long-term debt | $ 365 | 342 | |
4.150% Senior notes [Member] | |||
Disclosure of detailed information about borrowings [Line Items] | |||
Issue date | Mar. 04, 2016 | ||
Maturity date | Mar. 04, 2026 | ||
Par value | $ 1,000 | ||
Long-term debt | $ 1,351 | $ 1,263 |
Long-Term Debt - Carrying Val_2
Long-Term Debt - Carrying Value of Long Term Debt Instruments (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
5.375% Senior notes [Member] | |
Disclosure of detailed information about borrowings [Line Items] | |
Number of basis points | 0.004% |
Borrowings, interest rate | 5.375% |
2.396% Senior notes [Member] | |
Disclosure of detailed information about borrowings [Line Items] | |
Number of basis points | 0.003% |
Borrowings, interest rate | 2.396% |
2.484% Senior notes [Member] | |
Disclosure of detailed information about borrowings [Line Items] | |
Number of basis points | 0.003% |
Borrowings, interest rate | 2.484% |
3.527% Senior notes [Member] | |
Disclosure of detailed information about borrowings [Line Items] | |
Number of basis points | 0.002% |
Borrowings, interest rate | 3.527% |
4.150% Senior notes [Member] | |
Disclosure of detailed information about borrowings [Line Items] | |
Number of basis points | 0.0035% |
Borrowings, interest rate | 4.15% |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about borrowings [Line Items] | ||
Interest paid on long-term debt | $ 204 | $ 210 |
Level 2 [Member] | ||
Disclosure of detailed information about borrowings [Line Items] | ||
Fair value of long-term debt | $ 5,587 | $ 5,439 |
Long-Term Debt - Aggregate Matu
Long-Term Debt - Aggregate Maturities of Long-term Debt (Detail) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of detailed information about borrowings [Line Items] | ||
Long-term debt | $ 6,234 | $ 4,882 |
Three to Five years [Member] | ||
Disclosure of detailed information about borrowings [Line Items] | ||
Long-term debt | 2,661 | 1,605 |
Over 5 years [Member] | ||
Disclosure of detailed information about borrowings [Line Items] | ||
Long-term debt | $ 3,573 | $ 3,277 |
Capital Instruments - Schedule
Capital Instruments - Schedule of Carrying Value of Capital Instruments (Detail) | 12 Months Ended | |||
Dec. 31, 2022 CAD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 SGD ($) | Dec. 31, 2021 CAD ($) | |
Carrying value of capital instruments [line items] | ||||
Total | $ 6,122,000,000 | $ 6,980,000,000 | ||
JHFC subordinated notes [member] | ||||
Carrying value of capital instruments [line items] | ||||
Issuance date | Dec. 14, 2006 | |||
Maturity date | Dec. 15, 2036 | |||
Par value | $ 650 | |||
Total | $ 647,000,000 | 647,000,000 | ||
2.818% MFC Subordinated debentures [member] | ||||
Carrying value of capital instruments [line items] | ||||
Capital instruments interest rate | 2.818% | 2.818% | 2.818% | |
Issuance date | May 12, 2020 | |||
Earliest par redemption date | May 13, 2030 | |||
Maturity date | May 13, 2035 | |||
Par value | $ 1,000 | |||
Total | $ 996,000,000 | 995,000,000 | ||
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 | $ 1,013,000,000 | 947,000,000 | ||
2.237% MFC Subordinated debentures [member] | ||||
Carrying value of capital instruments [line items] | ||||
Capital instruments interest rate | 2.237% | 2.237% | 2.237% | |
Issuance date | May 12, 2020 | |||
Earliest par redemption date | May 12, 2025 | |||
Maturity date | May 12, 2030 | |||
Par value | $ 1,000 | |||
Total | $ 998,000,000 | 997,000,000 | ||
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 | $ 615,000,000 | 579,000,000 | ||
3.00% MFC subordinated notes [member] | ||||
Carrying value of capital instruments [line items] | ||||
Capital instruments interest rate | 3% | 3% | 3% | |
Issuance date | Nov. 21, 2017 | |||
Earliest par redemption date | Nov. 21, 2024 | |||
Maturity date | Nov. 21, 2029 | |||
Par value | $ 500 | |||
Total | $ 504,000,000 | 469,000,000 | ||
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 | $ 750 | |||
Total | $ 749,000,000 | 748,000,000 | ||
3.317% MFC Subordinated debentures [member] | ||||
Carrying value of capital instruments [line items] | ||||
Capital instruments interest rate | 3.317% | 3.317% | 3.317% | |
Issuance date | May 09, 2018 | |||
Earliest par redemption date | May 09, 2023 | |||
Maturity date | May 09, 2028 | |||
Par value | $ 600 | |||
Total | $ 600,000,000 | 599,000,000 | ||
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 | $ 1,000 | |||
Total | $ 999,000,000 |
Capital Instruments - Schedul_2
Capital Instruments - Schedule of Carrying Value of Capital Instruments (Parenthetical) (Detail) - CAD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Nov. 22, 2022 | |
Carrying value of capital instruments [line items] | |||
Debt securities | $ 6,122 | $ 6,980 | |
on November 22, 2022 | |||
Carrying value of capital instruments [line items] | |||
Bond redemption variable interest rate | 3.181% | ||
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% | ||
Debt securities | $ 647 | 647 | |
JHFC subordinated notes [member] | Canadian Dollar Offered Rate [Member] | |||
Carrying value of capital instruments [line items] | |||
Debt securities | 647 | 647 | |
JHFC subordinated notes [member] | Future Referencing Canadian Dollar Offered Rate [Member] | |||
Carrying value of capital instruments [line items] | |||
Debt securities | 4,338 | ||
JHFC subordinated notes [member] | US Dollar Mid Swaprate [Member] | |||
Carrying value of capital instruments [line items] | |||
Debt securities | 3,343 | 947 | |
JHFC subordinated notes [member] | Singapore Swap Rate [Member] | |||
Carrying value of capital instruments [line items] | |||
Debt securities | 1,013 | 469 | |
JHFC subordinated notes [member] | Singapore Swap Rate 1 [Member] | |||
Carrying value of capital instruments [line items] | |||
Debt securities | $ 504 | ||
2.818% MFC Subordinated debentures [member] | |||
Carrying value of capital instruments [line items] | |||
Floating interest rate, adjustment to basis | 1.82% | ||
Debt securities | $ 996 | 995 | |
Earliest par redemption date | May 13, 2030 | ||
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 | ||
Debt securities | $ 1,013 | 947 | |
Earliest par redemption date | Feb. 24, 2027 | ||
7.375% JHUSA Surplus notes [Member] | |||
Carrying value of capital instruments [line items] | |||
Debt securities | $ 615 | 579 | |
3.00% MFC subordinated notes [member] | |||
Carrying value of capital instruments [line items] | |||
Interest rate, basis | 5-Year Singapore Dollar Swap Rate plus 0.832% | ||
Floating interest rate, adjustment to basis | 0.832% | ||
Interest rate reset period | 5 years | ||
Debt securities | $ 504 | 469 | |
Earliest par redemption date | Nov. 21, 2024 | ||
3.049% MFC Subordinated debentures [member] | |||
Carrying value of capital instruments [line items] | |||
Floating interest rate, adjustment to basis | 105% | ||
Debt securities | $ 749 | 748 | |
Earliest par redemption date | Aug. 20, 2024 | ||
3.317% MFC Subordinated debentures [member] | |||
Carrying value of capital instruments [line items] | |||
Interest rate, basis | 3-month CDOR plus a specified number of basis points. | ||
Floating interest rate, adjustment to basis | 78% | ||
Debt securities | $ 600 | 599 | |
Earliest par redemption date | May 09, 2023 | ||
3.85% MFC Subordinated notes [Member] | |||
Carrying value of capital instruments [line items] | |||
Earliest par redemption date | Nov. 22, 2022 | ||
2.237% MFC Subordinated debentures [member] | |||
Carrying value of capital instruments [line items] | |||
Floating interest rate, adjustment to basis | 1.49% | ||
Debt securities | $ 998 | 997 | |
Earliest par redemption date | May 12, 2025 | ||
John Hancock Financial Corporation [Member] | 7.375% JHUSA Surplus notes [Member] | |||
Carrying value of capital instruments [line items] | |||
Unamortized fair value increment | $ 5 | $ 9 | |
Manufacturers life insurance company [Member] | |||
Carrying value of capital instruments [line items] | |||
Interest rate, basis | 3-month CDOR plus a specified number of basis points. |
Capital Instruments - Additiona
Capital Instruments - Additional Information (Detail) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Level 2 [Member] | ||
Fair value of capital instruments [line items] | ||
Capital instruments | $ 5,737 | $ 7,213 |
Equity Capital and Earnings P_3
Equity Capital and Earnings Per Share - Summary of Further Information on Preferred Shares and Other Equity Instruments Outstanding (Detail) - CAD ($) shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of classes of share capital [Line Items] | ||
Face amount | $ 395,957 | $ 440,098 |
Other equity interest [member] | Series 1(LRCN-Series 1) [member] | ||
Disclosure of classes of share capital [Line Items] | ||
Issue date | Feb. 19, 2021 | |
Annual dividend rate | 3.375% | |
Earliest redemption date | May 19, 2026 | |
Face amount | $ 2,000 | |
Net amount | $ 1,982 | 1,982 |
Other equity interest [member] | Series 2 (LRCN-Series 2) [member] | ||
Disclosure of classes of share capital [Line Items] | ||
Issue date | Nov. 12, 2021 | |
Annual dividend rate | 4.10% | |
Earliest redemption date | Feb. 19, 2027 | |
Face amount | $ 1,200 | |
Net amount | $ 1,189 | 1,189 |
Other equity interest [member] | Series 3(LRCN-Series 1) [member] | ||
Disclosure of classes of share capital [Line Items] | ||
Issue date | Jun. 16, 2022 | |
Annual dividend rate | 7.117% | |
Earliest redemption date | Jun. 19, 2027 | |
Face amount | $ 1,000 | |
Net amount | $ 990 | |
Class 1, Series 3 Preferred shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Issue date | Mar. 11, 2011 | |
Annual dividend rate | 2.348% | |
Earliest redemption date | Jun. 19, 2026 | |
Number of shares | 7 | |
Face amount | $ 163 | |
Net amount | $ 160 | 160 |
Class 1, Series 4 Preferred shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Issue date | Jun. 20, 2016 | |
Earliest redemption date | Jun. 19, 2026 | |
Number of shares | 1 | |
Face amount | $ 37 | |
Net amount | $ 36 | 36 |
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 | $ 250 | |
Net amount | 244 | |
Class 1, Series 9 Preferred shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Issue date | May 24, 2012 | |
Annual dividend rate | 5.978% | |
Earliest redemption date | Sep. 19, 2027 | |
Number of shares | 10 | |
Face amount | $ 250 | |
Net amount | $ 244 | 244 |
Class 1, Series 11 Preferred shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Issue date | Dec. 04, 2012 | |
Annual dividend rate | 4.731% | |
Earliest redemption date | Mar. 19, 2023 | |
Number of shares | 8 | |
Face amount | $ 200 | |
Net amount | $ 196 | 196 |
Class 1, Series 13 Preferred shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Issue date | Jun. 21, 2013 | |
Annual dividend rate | 4.414% | |
Earliest redemption date | Sep. 19, 2023 | |
Number of shares | 8 | |
Face amount | $ 200 | |
Net amount | $ 196 | 196 |
Class 1, Series 15 Preferred shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Issue date | Feb. 25, 2014 | |
Annual dividend rate | 3.786% | |
Earliest redemption date | Jun. 19, 2024 | |
Number of shares | 8 | |
Face amount | $ 200 | |
Net amount | $ 195 | 195 |
Class 1, Series 17 Preferred shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Issue date | Aug. 15, 2014 | |
Annual dividend rate | 3.80% | |
Earliest redemption date | Dec. 19, 2024 | |
Number of shares | 14 | |
Face amount | $ 350 | |
Net amount | $ 343 | 343 |
Class 1, Series 19 Preferred shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Issue date | Dec. 03, 2014 | |
Annual dividend rate | 3.675% | |
Earliest redemption date | Mar. 19, 2025 | |
Number of shares | 10 | |
Face amount | $ 250 | |
Net amount | $ 246 | 246 |
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 | $ 475 | |
Net amount | 467 | |
Class 1, Series 25 Preferred Shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Issue date | Feb. 20, 2018 | |
Annual dividend rate | 4.70% | |
Earliest redemption date | Jun. 19, 2023 | |
Number of shares | 10 | |
Face amount | $ 250 | |
Net amount | $ 245 | 245 |
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 | $ 350 | |
Net amount | $ 344 | 344 |
Class A, Series 3 Preferred shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Issue date | Jan. 03, 2006 | |
Annual dividend rate | 4.50% | |
Number of shares | 12 | |
Face amount | $ 300 | |
Net amount | $ 294 | 294 |
Preferred shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Number of shares | 131 | |
Face amount | $ 7,475 | |
Net amount | $ 6,660 | $ 6,381 |
Equity Capital and Earnings P_4
Equity Capital and Earnings Per Share - Summary of Further Information on Preferred Shares and Other Equity Instruments Outstanding (Parenthetical) (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Series 1(LRCN-Series 1) [member] | On JuneEighteen Two Thousand and Twenty Six and every Five Years Thereafter Until JuneNighteen Two Thousand and Seventy Six [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Floating dividend rate, description | rate equal to the five-year Government of Canada yield as defined in the prospectus, plus 2.839%. | |
Interest rate, basis | 2.839 | |
Other equity interest [member] | Series 1(LRCN-Series 1) [member] | ||
Disclosure of classes of share capital [Line Items] | ||
Earliest redemption date | May 19, 2026 | |
Annual dividend rate | 3.375% | |
Other equity interest [member] | Series 1(LRCN-Series 1) [member] | Before JuneEighteen Two Thousand and Twenty Six [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Interest rate | 3.375% | |
Other equity interest [member] | Series 3(LRCN-Series 1) [member] | ||
Disclosure of classes of share capital [Line Items] | ||
Floating dividend rate, description | the rate will be reset at a rate equal to the five-year Government of Canada yield as defined in the prospectus, plus 3.95%. | |
Earliest redemption date | Jun. 19, 2027 | |
Interest rate | 7.117% | |
Interest rate, basis | 3.95 | |
Annual dividend rate | 7.117% | |
Other equity interest [member] | Series 2 (LRCN-Series 2) [member] | ||
Disclosure of classes of share capital [Line Items] | ||
Earliest redemption date | Feb. 19, 2027 | |
Annual dividend rate | 4.10% | |
Other equity interest [member] | Series 2 (LRCN-Series 2) [member] | Before May Eighteen Two Thousand And Twenty Seven [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Interest rate | 4.10% | |
Other equity interest [member] | Series 2 (LRCN-Series 2) [member] | On May Eighteen Two Thousand And Twenty Seven And Every Five Years Thereafter Until March Nineteen Two Thousand and Seventy Seventy [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Floating dividend rate, description | rate equal to the five-year Government of Canada yield as defined in the prospectus, plus 2.704%. | |
Interest rate, basis | 2.704 | |
Class 1, Series 4 Preferred shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Earliest redemption date | Jun. 19, 2026 | |
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 | $ 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 | $ 25.5 | |
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 3 Preferred shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Specified yield percentage | 1.41% | |
Earliest redemption date | Jun. 19, 2026 | |
Annual dividend rate | 2.348% | |
Class 1, Series 7 Preferred shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Earliest redemption date | Mar. 19, 2022 | |
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% | |
Earliest redemption date | Sep. 19, 2027 | |
Annual dividend rate | 5.978% | |
Class 1, Series 11 Preferred shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Specified yield percentage | 2.61% | |
Earliest redemption date | Mar. 19, 2023 | |
Annual dividend rate | 4.731% | |
Class 1, Series 13 Preferred shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Specified yield percentage | 2.22% | |
Earliest redemption date | Sep. 19, 2023 | |
Annual dividend rate | 4.414% | |
Class 1, Series 15 Preferred shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Specified yield percentage | 2.16% | |
Earliest redemption date | Jun. 19, 2024 | |
Annual dividend rate | 3.786% | |
Class 1, Series 17 Preferred shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Specified yield percentage | 2.36% | |
Earliest redemption date | Dec. 19, 2024 | |
Annual dividend rate | 3.80% | |
Class 1, Series 19 Preferred shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Specified yield percentage | 2.30% | |
Earliest redemption date | Mar. 19, 2025 | |
Annual dividend rate | 3.675% | |
Class 1, Series 23 Preferred shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Earliest redemption date | Mar. 19, 2022 | |
Annual dividend rate | 4.85% | |
Class 1, Series 25 Preferred Shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Specified yield percentage | 2.55% | |
Earliest redemption date | Jun. 19, 2023 | |
Annual dividend rate | 4.70% |
Equity Capital and Earnings P_5
Equity Capital and Earnings Per Share - Summary of Changes in Issued and Outstanding Shares - Common Shares (Detail) - CAD ($) shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of classes of share capital [Line Items] | ||
Balance, beginning of year | $ 58,869 | |
Balance, end of year | $ 56,379 | $ 58,869 |
Common shares [Member] | ||
Disclosure of classes of share capital [Line Items] | ||
Balance, beginning of year | 1,943 | 1,940 |
Repurchased for cancellation | (79) | |
Issued on exercise of stock options and deferred share units | 1 | 3 |
Balance, end of year | 1,865 | 1,943 |
Balance, beginning of year | $ 23,093 | $ 23,042 |
Repurchased for cancellation | (938) | |
Issued on exercise of stock options and deferred share units | 23 | 51 |
Balance, end of year | $ 22,178 | $ 23,093 |
Equity Capital and Earnings P_6
Equity Capital and Earnings Per share - Additional Information (Detail) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 11 Months Ended | 12 Months Ended | |||
Feb. 15, 2023 shares | Feb. 28, 2022 CAD ($) | Dec. 31, 2022 CAD ($) shares | Dec. 31, 2022 $ / shares | Dec. 31, 2022 CAD ($) shares | Feb. 03, 2022 $ / shares | |
NCIB [Member] | ||||||
Disclosure of Dividends [line items] | ||||||
Share purchased and cancelled subsequently | shares | 78.9 | |||||
Stock repurchased and retired during period value | $ 2,060 | |||||
Percentage of shares purchased for cancellation to issued and outstanding shares | 4.40% | |||||
Stock repurchased and retired during period shares | shares | 85.8 | |||||
Par value per share | $ / shares | $ 23.99 | |||||
Retained earnings [member] | NCIB [Member] | ||||||
Disclosure of Dividends [line items] | ||||||
Purchase of treasury shares | $ 946 | |||||
Major ordinary share transactions [Member] | NCIB [Member] | ||||||
Disclosure of Dividends [line items] | ||||||
Stock repurchased and retired during period value | $ 97 | |||||
Common shares [Member] | NCIB [Member] | ||||||
Disclosure of Dividends [line items] | ||||||
Total Cost of Share | 1,884 | |||||
Purchase of treasury shares | $ 938 | |||||
Common shares [Member] | Major ordinary share transactions [Member] | ||||||
Disclosure of Dividends [line items] | ||||||
Dividend declared but not paid | $ / shares | $ 0.365 | |||||
NCIB Two Thousand And Twenty Three [Member] | ||||||
Disclosure of Dividends [line items] | ||||||
Common Stock Shares Authorised For Repurchase | shares | 55.7 | |||||
NCIB Two Thousand And Twenty Three [Member] | Major ordinary share transactions [Member] | ||||||
Disclosure of Dividends [line items] | ||||||
Percentage of the companys issued and outstanding common shares | 3% |
Equity Capital and Earnings P_7
Equity Capital and Earnings Per Share - Summary of Basic and Diluted Earnings Per Common Share (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings per share [abstract] | ||
Basic earnings per common share | $ 3.68 | $ 3.55 |
Diluted earnings per common share | $ 3.68 | $ 3.54 |
Equity Capital and Earnings P_8
Equity Capital and Earnings Per Share - Summary of Reconciliation of Denominator (Numbers of Shares) in Calculation of Basic and Diluted Earnings Per Share (Detail) - shares shares in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings per share [abstract] | ||
Weighted average number of common shares (in millions) | 1,910 | 1,942 |
Dilutive stock-based awards(in millions) | 3 | 4 |
Weighted average number of diluted common shares (in millions) | 1,913 | 1,946 |
Equity Capital and Earnings P_9
Equity 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, 2022 | Dec. 31, 2021 | |
Share based payments arrangements [Member] | ||
Earnings per share [Line Items] | ||
Anti-dilutive stock-based awards excluded from the calculation of EPS | 9 | 0 |
Equity Capital and Earnings _10
Equity Capital and Earnings Per share - Schedule of Dividends Payable on Non-cumulative Preferred Shares (Detail) | Feb. 28, 2023 $ / shares |
Class 1, Series 13 Preferred shares [Member] | |
Disclosure of Dividends [line items] | |
Dividend declared but not paid | $ 0.275875 |
Class 1, Series 15 Preferred shares [Member] | |
Disclosure of Dividends [line items] | |
Dividend declared but not paid | 0.236625 |
Class 1, Series 17 Preferred shares [Member] | |
Disclosure of Dividends [line items] | |
Dividend declared but not paid | 0.2375 |
Class 1, Series 19 Preferred shares [Member] | |
Disclosure of Dividends [line items] | |
Dividend declared but not paid | 0.229688 |
Class 1, Series 25 Preferred Shares [Member] | |
Disclosure of Dividends [line items] | |
Dividend declared but not paid | 0.29375 |
Class A, Series 2 Preferred shares [Member] | |
Disclosure of Dividends [line items] | |
Dividend declared but not paid | 0.29063 |
Class A, Series 3 Preferred shares [Member] | |
Disclosure of Dividends [line items] | |
Dividend declared but not paid | 0.28125 |
Class 1, Series 3 Preferred shares [Member] | |
Disclosure of Dividends [line items] | |
Dividend declared but not paid | 0.14675 |
Class 1, Series 4 Preferred shares [Member] | |
Disclosure of Dividends [line items] | |
Dividend declared but not paid | 0.34089 |
Class 1, Series 9 Preferred shares [Member] | |
Disclosure of Dividends [line items] | |
Dividend declared but not paid | 0.373625 |
Class 1, Series 11 Preferred shares [Member] | |
Disclosure of Dividends [line items] | |
Dividend declared but not paid | $ 0.295688 |
Capital Management - Schedule o
Capital Management - Schedule of Consolidated Capital (Detail) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of classes of share capital [abstract] | ||
Total equity | $ 56,379 | $ 58,869 |
Exclude AOCI gain/(loss) on cash flow hedges | 8 | (156) |
Total equity excluding AOCI on cash flow hedges | 56,371 | 59,025 |
Qualifying capital instruments | 6,122 | 6,980 |
Consolidated capital | $ 62,493 | $ 66,005 |
Revenue from Service Contract_2
Revenue from Service Contracts - Summary of Revenue from Service Contracts by Service Lines and Reporting Segments (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | $ 9,164 | $ 11,132 |
Real estate management services [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 305 | 298 |
Asia [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 1,458 | 1,696 |
Asia [member] | Real estate management services [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 35 | 37 |
Canada [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 1,426 | 1,336 |
Canada [member] | Real estate management services [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 136 | 126 |
U.S. [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 458 | 1,824 |
U.S. [member] | Real estate management services [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 126 | 128 |
Other revenue [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 8,415 | 8,701 |
Other revenue [member] | Investment management and other related fees [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 3,750 | 3,897 |
Other revenue [member] | Transaction processing, administration, and service fees [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 3,579 | 3,723 |
Other revenue [member] | Distribution fees and other [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 1,086 | 1,081 |
Other revenue [member] | Asia [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 669 | 755 |
Other revenue [member] | Asia [member] | Investment management and other related fees [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 234 | 217 |
Other revenue [member] | Asia [member] | Transaction processing, administration, and service fees [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 292 | 287 |
Other revenue [member] | Asia [member] | Distribution fees and other [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 143 | 251 |
Other revenue [member] | Canada [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 1,151 | 1,168 |
Other revenue [member] | Canada [member] | Investment management and other related fees [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 242 | 230 |
Other revenue [member] | Canada [member] | Transaction processing, administration, and service fees [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 866 | 918 |
Other revenue [member] | Canada [member] | Distribution fees and other [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 43 | 20 |
Other revenue [member] | U.S. [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 534 | 576 |
Other revenue [member] | U.S. [member] | Investment management and other related fees [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 445 | 499 |
Other revenue [member] | U.S. [member] | Transaction processing, administration, and service fees [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 13 | 12 |
Other revenue [member] | U.S. [member] | Distribution fees and other [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 76 | 65 |
Revenue from non-service lines [Member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 749 | 2,431 |
Revenue from non-service lines [Member] | Asia [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 789 | 941 |
Revenue from non-service lines [Member] | Canada [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 275 | 168 |
Revenue from non-service lines [Member] | U.S. [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | (76) | 1,248 |
Global wealth and asset management [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 6,350 | 6,513 |
Global wealth and asset management [member] | Real estate management services [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 0 | |
Global wealth and asset management [member] | Other revenue [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 6,363 | 6,514 |
Global wealth and asset management [member] | Other revenue [member] | Investment management and other related fees [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 3,079 | 3,198 |
Global wealth and asset management [member] | Other revenue [member] | Transaction processing, administration, and service fees [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 2,416 | 2,517 |
Global wealth and asset management [member] | Other revenue [member] | Distribution fees and other [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 868 | 799 |
Global wealth and asset management [member] | Revenue from non-service lines [Member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | (13) | (1) |
Corporate and other [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | (528) | (237) |
Corporate and other [member] | Real estate management services [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | 8 | 7 |
Corporate and other [member] | Other revenue [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | (302) | (312) |
Corporate and other [member] | Other revenue [member] | Investment management and other related fees [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | (250) | (247) |
Corporate and other [member] | Other revenue [member] | Transaction processing, administration, and service fees [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | (8) | (11) |
Corporate and other [member] | Other revenue [member] | Distribution fees and other [member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | (44) | (54) |
Corporate and other [member] | Revenue from non-service lines [Member] | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Revenue from contracts with customers | $ (226) | $ 75 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Feb. 28, 2023 | Mar. 31, 2022 | Dec. 31, 2022 CAD ($) Options Equity $ / shares shares | Dec. 31, 2021 CAD ($) Equity Options $ / shares | Dec. 31, 2020 Equity | |
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||
Compensation expense | $ 5 | $ 9 | |||
Number of options, Granted | 0 | 0 | |||
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 | ||||
Number of shares outstanding | Equity | 166,000 | 188,000 | |||
Deferred Share Units [Member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||
Compensation expense | $ 7 | $ 6 | |||
Number of equity granted | 30,000 | 34,000 | |||
Number of other equity instruments entitle holder to receive payment in cash | Options | 977,000 | 840,000 | |||
Number of other equity entitle holder to receive payment in cash or common shares | Options | 1,230,000 | 1,051,000 | |||
Number of other equity instruments entitle holder to receive payment in common shares | Equity | 166,000 | 188,000 | |||
Number of equity granted under the member deferred share units under ESOP | Equity | 116,000 | 101,000 | |||
Amount of the liability relating to equity | $ 53 | $ 46 | |||
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 | 106,000 | 26,000 | |||
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 | 252,000 | 161,000 | |||
Number of shares outstanding | Equity | 2,373,000 | 2,079,000 | 2,169,000 | ||
Fair value of equity granted | $ / shares | $ 24.15 | $ 24.11 | |||
Deferred Share Units [Member] | Bottom of range [Member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||
Vesting period | 36 months | ||||
Restricted share units (RSUs) [member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||
Compensation expense | $ 158 | $ 135 | |||
Vesting period | 36 months | ||||
Number of equity granted | 8,600,000 | 6,800,000 | |||
Fair value of equity granted | $ / shares | $ 24.15 | $ 24.11 | |||
Grant date | March 31 2022 | ||||
Performance share units (PSUs) [member] | |||||
Disclosure of terms and conditions of share-based payment arrangement [Line Items] | |||||
Compensation expense | $ 23 | $ 31 | |||
Vesting period | 36 months | ||||
Number of equity granted | 1,700,000 | 1,500,000 | |||
Grant date | March 31 2022 | ||||
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 | $ 388 | $ 362 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Options Outstanding (Detail) shares in Millions | 12 Months Ended | |
Dec. 31, 2022 $ / shares shares | Dec. 31, 2021 $ / shares shares | |
Disclosure of terms and conditions of share-based payment arrangement [abstract] | ||
Number of options, Beginning balance | 21,000,000 | 24,000,000 |
Number of options, Granted | 0 | 0 |
Number of options, Exercised | (1,000,000) | (3,000,000) |
Number of options' Expired | 0 | |
Number of options' Forfeited | 0 | 0 |
Number of options, Ending balance | shares | 20 | 21 |
Number of options, Exercisable, Ending balance | 10,000,000 | 8,000,000 |
Weighted average exercise price, Beginning balance | $ 22.09 | $ 21.74 |
Weighted average exercise price, Granted | 0 | 0 |
Weighted average exercise price, Exercised | 16.15 | 18.34 |
Weighted average exercise price, Expired | 24.63 | 24.73 |
Weighted average exercise price, Forfeited | 23.96 | 23.96 |
Weighted average exercise price, Ending balance | 22.42 | 22.09 |
Weighted average exercise price, Exercisable, Ending balance | $ 20.91 | $ 18.94 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Range of Exercise Prices of Outstanding Share Options (Detail) Unit_pure in Millions | 12 Months Ended | ||
Dec. 31, 2022 yr $ / shares | Dec. 31, 2021 $ / shares | Dec. 31, 2020 $ / shares | |
Disclosure of range of exercise prices of outstanding share options [Line Items] | |||
Number of options, Options outstanding | 20 | 21 | 24 |
Weighted average exercise price, Options outstanding | $ 22.42 | $ 22.09 | $ 21.74 |
Weighted average remaining contractual life (in years) | 4 years 6 months 21 days | ||
Number of options, Options exercisable | 10 | 8 | |
Weighted average exercise price, Options exercisable | $ 20.91 | $ 18.94 | |
Weighted average remaining contractual life (in years), Options exercisable | yr | 2.93 | ||
$12.64 - $20.99 [Member] | |||
Disclosure of range of exercise prices of outstanding share options [Line Items] | |||
Number of options, Options outstanding | 4 | ||
Weighted average exercise price, Options outstanding | $ 17.42 | ||
Weighted average remaining contractual life (in years) | 2 years 10 months 28 days | ||
Number of options, Options exercisable | 4 | ||
Weighted average exercise price, Options exercisable | $ 17.42 | ||
Weighted average remaining contractual life (in years), Options exercisable | yr | 2.91 | ||
$21.00 - $24.83 [Member] | |||
Disclosure of range of exercise prices of outstanding share options [Line Items] | |||
Number of options, Options outstanding | 16 | ||
Weighted average exercise price, Options outstanding | $ 23.58 | ||
Weighted average remaining contractual life (in years) | 4 years 11 months 8 days | ||
Number of options, Options exercisable | 6 | ||
Weighted average exercise price, Options exercisable | $ 23.08 | ||
Weighted average remaining contractual life (in years), Options exercisable | yr | 2.95 |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Other Equity Instruments (Detail) - Deferred Share Units [Member] - Board of Director [Member] - Equity | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of range of exercise prices of outstanding share options [Line Items] | ||
Beginning balance | 2,079,000 | 2,169,000 |
Issued | 252,000 | 161,000 |
Reinvested | 126,000 | 100,000 |
Redeemed | (75,000) | (345,000) |
Forfeitures and cancellations | (9,000) | (6,000) |
Ending balance | 2,373,000 | 2,079,000 |
Employee Future Benefits - Addi
Employee Future Benefits - Additional Information (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of defined benefit plans [Line Items] | ||
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, 2023 | $ 3 | |
Return-seeking assets [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Target asset allocation for plan | 30% | 30% |
Return-seeking assets [Member] | Canada [member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Target asset allocation for plan | 20% | 20% |
Liability-hedging assets [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Target asset allocation for plan | 70% | 70% |
Liability-hedging assets [Member] | Canada [member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Target asset allocation for plan | 80% | 80% |
Pension defined benefit plans [member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Estimate of expected cash payments for employee future benefits for the year ending December 31, 2023 | $ 65 | |
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, 2023 | 89 | |
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, 2023 | $ 13 |
Employee Future Benefits - Summ
Employee Future Benefits - Summary of Pension and Retiree Welfare Plans (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Pension defined benefit plans [member] | ||
Disclosure of net defined benefit liability (asset) [Line Items] | ||
Beginning balance | $ 87 | |
Actuarial losses (gains) due to: | ||
Experience | 5 | $ 3 |
Demographic assumption changes | 7 | |
Economic assumption changes | (835) | (194) |
Return on plan assets (excluding interest income) | 869 | (70) |
Ending balance | 120 | 87 |
Pension defined benefit plans [member] | Present value of defined benefit obligation [Member] | ||
Disclosure of net defined benefit liability (asset) [Line Items] | ||
Beginning balance | 4,560 | 4,901 |
Current service cost | 43 | 44 |
Past service cost - amendment | (6) | |
Interest cost | 127 | 115 |
Plan participants' contributions | 0 | |
Actuarial losses (gains) due to: | ||
Experience | 5 | 3 |
Demographic assumption changes | 0 | 7 |
Economic assumption changes | (835) | (194) |
Benefits paid | (299) | (303) |
Impact of changes in foreign exchange rates | 199 | (13) |
Ending balance | 3,794 | 4,560 |
Pension defined benefit plans [member] | Plan assets [Member] | ||
Disclosure of net defined benefit liability (asset) [Line Items] | ||
Beginning balance | 4,510 | 4,595 |
Interest cost | 127 | 109 |
Plan participants' contributions | 0 | |
Actuarial losses (gains) due to: | ||
Benefits paid | (299) | (303) |
Return on plan assets (excluding interest income) | (869) | 70 |
Impact of changes in foreign exchange rates | 205 | (13) |
Employer contributions | 59 | 61 |
Administration costs | (11) | (9) |
Ending balance | 3,722 | 4,510 |
Retiree welfare plans [Member] | ||
Disclosure of net defined benefit liability (asset) [Line Items] | ||
Beginning balance | (3) | |
Actuarial losses (gains) due to: | ||
Experience | (13) | |
Demographic assumption changes | 1 | |
Economic assumption changes | (112) | (29) |
Return on plan assets (excluding interest income) | 91 | 1 |
Ending balance | (57) | (3) |
Retiree welfare plans [Member] | Present value of defined benefit obligation [Member] | ||
Disclosure of net defined benefit liability (asset) [Line Items] | ||
Beginning balance | 584 | 638 |
Current service cost | 0 | |
Past service cost - amendment | 0 | |
Interest cost | 16 | 15 |
Plan participants' contributions | 3 | 3 |
Actuarial losses (gains) due to: | ||
Experience | (13) | |
Demographic assumption changes | 0 | 1 |
Economic assumption changes | (112) | (29) |
Benefits paid | (40) | (42) |
Impact of changes in foreign exchange rates | 28 | (2) |
Ending balance | 466 | 584 |
Retiree welfare plans [Member] | Plan assets [Member] | ||
Disclosure of net defined benefit liability (asset) [Line Items] | ||
Beginning balance | 587 | 606 |
Interest cost | 16 | 14 |
Plan participants' contributions | 3 | 3 |
Actuarial losses (gains) due to: | ||
Benefits paid | (40) | (42) |
Return on plan assets (excluding interest income) | (91) | (1) |
Impact of changes in foreign exchange rates | 39 | (2) |
Employer contributions | 11 | 11 |
Administration costs | (2) | (2) |
Ending balance | $ 523 | $ 587 |
Employee Future Benefits - Su_2
Employee Future Benefits - Summary of Amounts Recognized in Consolidated Statements of Financial Position (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Pension defined benefit plans [member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Defined benefit obligation | $ 3,794 | $ 4,560 |
Fair value of plan assets | 3,722 | 4,510 |
Deficit | 72 | 50 |
Effect of asset limit | 48 | 37 |
Deficit and net defined benefit liability | 120 | 87 |
Pension defined benefit plans [member] | Funded [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Deficit and net defined benefit liability | (441) | (600) |
Pension defined benefit plans [member] | Unfunded [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Deficit and net defined benefit liability | 561 | 687 |
Retiree welfare plans [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Defined benefit obligation | 466 | 584 |
Fair value of plan assets | 523 | 587 |
Deficit | (57) | (3) |
Effect of asset limit | 0 | |
Deficit and net defined benefit liability | (57) | (3) |
Retiree welfare plans [Member] | Funded [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Deficit and net defined benefit liability | (168) | (154) |
Retiree welfare plans [Member] | Unfunded [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Deficit and net defined benefit liability | $ 111 | $ 151 |
Employee Future Benefits - Su_3
Employee Future Benefits - Summary of Disaggregation of Defined Benefit Obligation (Detail) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Pension defined benefit plans [member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Disaggregation of defined benefit obligation | $ 3,794 | $ 4,560 |
Retiree welfare plans [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Disaggregation of defined benefit obligation | 466 | 584 |
U.S. plans [Member] | Pension defined benefit plans [member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Disaggregation of defined benefit obligation | 2,515 | 2,908 |
U.S. plans [Member] | Pension defined benefit plans [member] | Active [member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Disaggregation of defined benefit obligation | 509 | 537 |
U.S. plans [Member] | Pension defined benefit plans [member] | Inactive and retired members [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Disaggregation of defined benefit obligation | 2,006 | 2,371 |
U.S. plans [Member] | Retiree welfare plans [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Disaggregation of defined benefit obligation | 355 | 433 |
U.S. plans [Member] | Retiree welfare plans [Member] | Active [member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Disaggregation of defined benefit obligation | 11 | 17 |
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 | 344 | 416 |
Canadian plans [Member] | Pension defined benefit plans [member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Disaggregation of defined benefit obligation | 1,279 | 1,652 |
Canadian plans [Member] | Pension defined benefit plans [member] | Active [member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Disaggregation of defined benefit obligation | 125 | 184 |
Canadian plans [Member] | Pension defined benefit plans [member] | Inactive and retired members [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Disaggregation of defined benefit obligation | 1,154 | 1,468 |
Canadian plans [Member] | Retiree welfare plans [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Disaggregation of defined benefit obligation | 111 | 151 |
Canadian plans [Member] | Retiree welfare plans [Member] | Active [member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Disaggregation of defined benefit obligation | 0 | |
Canadian plans [Member] | Retiree welfare plans [Member] | Inactive and retired members [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Disaggregation of defined benefit obligation | $ 111 | $ 151 |
Employee Future Benefits - Su_4
Employee Future Benefits - Summary of Major Categories of Plan Assets and Actual Per Cent Allocation to Each Category (Detail) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Pension defined benefit plans [member] | ||
Disclosure of fair value of plan assets [Line Items] | ||
Total | $ 3,722 | $ 4,510 |
Retiree welfare plans [Member] | ||
Disclosure of fair value of plan assets [Line Items] | ||
Total | 523 | 587 |
U.S. plans [Member] | ||
Disclosure of fair value of plan assets [Line Items] | ||
Equity securities | 1.2 | 1.2 |
U.S. plans [Member] | Pension defined benefit plans [member] | Fair value measurements [member] | ||
Disclosure of fair value of plan assets [Line Items] | ||
Total | $ 2,581 | $ 3,028 |
Percentage of fair value measurements | 100% | 100% |
U.S. plans [Member] | Pension defined benefit plans [member] | Fair value measurements [member] | Debt securities [Member] | ||
Disclosure of fair value of plan assets [Line Items] | ||
Debt securities | $ 1,509 | $ 1,863 |
Percentage of fair value measurements | 58% | 61% |
U.S. plans [Member] | Pension defined benefit plans [member] | Fair value measurements [member] | Cash and cash equivalents [Member] | ||
Disclosure of fair value of plan assets [Line Items] | ||
Cash and cash equivalents | $ 35 | $ 90 |
Percentage of fair value measurements | 1% | 3% |
U.S. plans [Member] | Pension defined benefit plans [member] | Fair value measurements [member] | Equity securities [Member] | ||
Disclosure of fair value of plan assets [Line Items] | ||
Equity securities | $ 377 | $ 600 |
Percentage of fair value measurements | 15% | 20% |
U.S. plans [Member] | Pension defined benefit plans [member] | Fair value measurements [member] | Other investments [member] | ||
Disclosure of fair value of plan assets [Line Items] | ||
Other investments | $ 660 | $ 475 |
Percentage of fair value measurements | 26% | 16% |
U.S. plans [Member] | Retiree welfare plans [Member] | Fair value measurements [member] | ||
Disclosure of fair value of plan assets [Line Items] | ||
Total | $ 523 | $ 587 |
Percentage of fair value measurements | 100% | 100% |
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 | $ 445 | $ 501 |
Percentage of fair value measurements | 85% | 85% |
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 | $ 22 | $ 21 |
Percentage of fair value measurements | 4% | 4% |
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 | $ 41 | $ 57 |
Percentage of fair value measurements | 8% | 10% |
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 | $ 15 | $ 8 |
Percentage of fair value measurements | 3% | 1% |
Canadian plans [Member] | ||
Disclosure of fair value of plan assets [Line Items] | ||
Equity securities | ||
Canadian plans [Member] | Pension defined benefit plans [member] | Fair value measurements [member] | ||
Disclosure of fair value of plan assets [Line Items] | ||
Total | $ 1,141 | $ 1,482 |
Percentage of fair value measurements | 100% | 100% |
Canadian plans [Member] | Pension defined benefit plans [member] | Fair value measurements [member] | Debt securities [Member] | ||
Disclosure of fair value of plan assets [Line Items] | ||
Debt securities | $ 898 | $ 1,144 |
Percentage of fair value measurements | 79% | 77% |
Canadian plans [Member] | Pension defined benefit plans [member] | Fair value measurements [member] | Cash and cash equivalents [Member] | ||
Disclosure of fair value of plan assets [Line Items] | ||
Cash and cash equivalents | $ 9 | $ 14 |
Percentage of fair value measurements | 1% | 1% |
Canadian plans [Member] | Pension defined benefit plans [member] | Fair value measurements [member] | Equity securities [Member] | ||
Disclosure of fair value of plan assets [Line Items] | ||
Equity securities | $ 233 | $ 322 |
Percentage of fair value measurements | 20% | 22% |
Canadian plans [Member] | Pension defined benefit plans [member] | Fair value measurements [member] | Other investments [member] | ||
Disclosure of fair value of plan assets [Line Items] | ||
Other investments | $ 1 | $ 2 |
Percentage of fair value measurements | 0% | 0% |
Employee Future Benefits - Su_5
Employee Future Benefits - Summary of Major Categories of Plan Assets and Actual Per Cent Allocation to Each Category (Parenthetical) (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
U.S. plans [Member] | ||
Disclosure of fair value of plan assets [Line Items] | ||
Percentage of plan assets | 15% | 7% |
Equity securities | $ 1.2 | $ 1.2 |
Canadian plans [Member] | ||
Disclosure of fair value of plan assets [Line Items] | ||
Percentage of plan assets | 0.10% | 0.10% |
Equity securities |
Employee Future Benefits - Su_6
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 ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Pension defined benefit plans [member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Defined benefit current service cost | $ 43 | $ 44 |
Defined benefit administrative expenses | 11 | 9 |
Past service cost-plan amendments and curtailments | (6) | |
Service cost | 48 | 53 |
Interest on net defined benefit (asset) liability | 2 | 6 |
Defined benefit cost | 50 | 59 |
Defined contribution cost | 85 | 90 |
Net benefit cost | 135 | 149 |
Retiree welfare plans [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Defined benefit administrative expenses | 2 | 2 |
Service cost | 2 | 2 |
Interest on net defined benefit (asset) liability | 1 | |
Defined benefit cost | 2 | 3 |
Net benefit cost | $ 2 | $ 3 |
Employee Future Benefits - Su_7
Employee Future Benefits - Summary of Re-measurement Effects Recognized in Other Comprehensive Income (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Pension defined benefit plans [member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Experience | $ (5) | $ (3) |
Demographic assumption changes | (7) | |
Economic assumption changes | 835 | 194 |
Return on plan assets (excluding interest income) | (869) | 70 |
Change in effect of asset limit (excluding interest) | (10) | (37) |
Total re-measurement effects | (49) | 217 |
Retiree welfare plans [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Experience | 13 | |
Demographic assumption changes | (1) | |
Economic assumption changes | 112 | 29 |
Return on plan assets (excluding interest income) | (91) | (1) |
Total re-measurement effects | $ 34 | $ 27 |
Employee Future Benefits - Su_8
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, 2022 | Dec. 31, 2021 |
U.S. plans [Member] | Pension defined benefit plans [member] | Defined benefit obligation [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Discount rate | 5% | 2.70% |
U.S. plans [Member] | Pension defined benefit plans [member] | Defined benefit cost [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Discount rate | 2.70% | 2.40% |
U.S. plans [Member] | Retiree welfare plans [Member] | Defined benefit obligation [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Discount rate | 5% | 2.70% |
Initial health care cost trend rate | 7.80% | 7% |
U.S. plans [Member] | Retiree welfare plans [Member] | Defined benefit cost [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Discount rate | 2.70% | 2.40% |
Initial health care cost trend rate | 7% | 7.30% |
Canadian plans [Member] | Pension defined benefit plans [member] | Defined benefit obligation [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Discount rate | 5.30% | 3.10% |
Canadian plans [Member] | Pension defined benefit plans [member] | Defined benefit cost [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Discount rate | 3.10% | 2.50% |
Canadian plans [Member] | Retiree welfare plans [Member] | Defined benefit obligation [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Discount rate | 5.30% | 3.20% |
Initial health care cost trend rate | 5.30% | 5.40% |
Canadian plans [Member] | Retiree welfare plans [Member] | Defined benefit cost [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Discount rate | 3.20% | 2.60% |
Initial health care cost trend rate | 5.40% | 5.50% |
Employee Future Benefits - Su_9
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, 2022 | Dec. 31, 2021 |
Retiree welfare plans [Member] | 2032 [Member] | Top of range [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Health care cost trend rate | 7% | |
Retiree welfare plans [Member] | 2032 [Member] | Bottom of range [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Health care cost trend rate | 4.50% | |
Retiree welfare plans [Member] | 2035 [Member] | Top of range [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Health care cost trend rate | 7.80% | |
Retiree welfare plans [Member] | 2035 [Member] | Bottom of range [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Health care cost trend rate | 4.80% | |
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 | 5.30% | 5.40% |
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% |
Defined benefit cost [Member] | 2032 [Member] | Top of range [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Health care cost trend rate | 7% | 7.30% |
Defined benefit cost [Member] | 2032 [Member] | Bottom of range [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Health care cost trend rate | 4.50% | 4.50% |
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 | 5.40% | 5.50% |
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% |
Employee Future Benefits - S_10
Employee Future Benefits - Summary of Life Expectancies Underlying Values of Obligations in Defined Benefit Pension and Retiree Welfare Plans (Detail) | Dec. 31, 2022 yr |
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) | 22.1 |
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) | 23.6 |
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) | 23.5 |
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 |
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) | 23.9 |
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) | 25.7 |
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) | 24.8 |
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) | 26.6 |
Employee Future Benefits - S_11
Employee Future Benefits - Summary of Potential Impact on Obligations Arising From Changes in Key Assumptions (Detail) $ in Millions | Dec. 31, 2022 CAD ($) |
Actuarial assumption of discount rates [Member] | Pension defined benefit plans [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | |
Impact of increase in actuarial assumption | $ (279) |
Impact of decrease in actuarial assumption | 322 |
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 | (39) |
Impact of decrease in actuarial assumption | 45 |
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 | 10 |
Impact of decrease in actuarial assumption | (9) |
Actuarial assumption of decrease in inflation rates [Member] | Pension defined benefit plans [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | |
Impact of decrease in actuarial assumption | 93 |
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 | $ 8 |
Employee Future Benefits - S_12
Employee Future Benefits - Summary of Potential Impact on Obligations Arising From Changes in Key Assumptions (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
U.S. [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | |
Decrease in mortality rates | 10% |
Male [Member] | U.S. [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | |
Increase in life expectancy due to decrease in mortality rate | 9 months 18 days |
Male [Member] | Canada [member] | |
Disclosure of sensitivity analysis for actuarial assumptions [Line Items] | |
Increase in life expectancy due to decrease in mortality rate | 8 months 12 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 | 9 months 18 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 |
Employee Future Benefits - S_13
Employee Future Benefits - Summary of Weighted Average Duration of the Defined Benefit Obligations (Detail) - yr | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Pension defined benefit plans [member] | U.S. plans [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Weighted average duration (in years) of the defined benefit obligations | 8.2 | 9.7 |
Pension defined benefit plans [member] | Canadian plans [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Weighted average duration (in years) of the defined benefit obligations | 10.6 | 12.4 |
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 | 8.2 | 9.5 |
Retiree welfare plans [Member] | Canadian plans [Member] | ||
Disclosure of defined benefit plans [Line Items] | ||
Weighted average duration (in years) of the defined benefit obligations | 11.1 | 13.3 |
Employee Future Benefits - S_14
Employee Future Benefits - Summary of Cash Payments (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Pension defined benefit plans [member] | ||
Disclosure of net defined benefit liability (asset) [Line Items] | ||
Cash payment for future benefit plans | $ 144 | $ 151 |
Retiree welfare plans [member] | ||
Disclosure of net defined benefit liability (asset) [Line Items] | ||
Cash payment for future benefit plans | 11 | 11 |
Defined benefit plans [Member] | Pension defined benefit plans [member] | ||
Disclosure of net defined benefit liability (asset) [Line Items] | ||
Cash payment for future benefit plans | 59 | 61 |
Defined benefit plans [Member] | Retiree welfare plans [member] | ||
Disclosure of net defined benefit liability (asset) [Line Items] | ||
Cash payment for future benefit plans | 11 | 11 |
Defined contribution plans [Member] | Pension defined benefit plans [member] | ||
Disclosure of net defined benefit liability (asset) [Line Items] | ||
Cash payment for future benefit plans | 85 | $ 90 |
Defined contribution plans [Member] | Retiree welfare plans [member] | ||
Disclosure of net defined benefit liability (asset) [Line Items] | ||
Cash payment for future benefit plans | $ 0 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Recovery) Recognized in Consolidated Statements of Income (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Current tax | ||
Current year | $ 1,097 | $ 1,390 |
Adjustments related to prior year | (263) | (50) |
Current tax | 834 | 1,340 |
Deferred tax | ||
Change related to temporary differences | 706 | (139) |
Adjustments related to prior years | 226 | 12 |
Effects of change in tax rates in Canada | (201) | |
Total deferred tax | 731 | (127) |
Income tax expense | $ 1,565 | $ 1,213 |
Income Taxes - Components of _2
Income Taxes - Components of Income Tax Expense (Recovery) Recognized in Other Comprehensive Income ("OCI") (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Major components of tax expense (income) [abstract] | ||
Current income tax expense (recovery) | $ (323) | $ (3) |
Deferred income tax expense (recovery) | (863) | (61) |
Total income tax expense (recovery) | $ (1,186) | $ (64) |
Income Taxes - Components of _3
Income Taxes - Components of Income Tax Expense (Recovery) Recognized in Equity (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Major components of tax expense (income) [abstract] | ||
Current income tax expense (recovery) | $ 5 | $ 5 |
Deferred income tax expense (recovery) | (8) | (15) |
Total income tax recognized directly in equity | $ (3) | $ (10) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Statement [line items] | ||
Effective income tax rate | 27.50% | 26.50% |
Current tax receivable | $ 1,135 | $ 660 |
Current tax payable | 195 | 357 |
Deferred tax assets | 5,423 | 5,254 |
Deferred tax assets - recognition dependent on future taxable profits | 40 | 942 |
Operating tax loss carry forward | 3,902 | 2,689 |
Operating tax loss carry forward expired in future | 3,684 | |
Operating tax loss carry forward without expiration date | 218 | |
Capital tax loss carry forward | 1 | 1 |
Tax benefit on loss carry forwards for which deferred tax asset recognized | 701 | 517 |
Tax benefit of loss carry forwards for which no deferred tax asset recognized | 211 | 120 |
Tax credit carry forwards which expire in future | 273 | 200 |
Tax credit carryforwards of which benefit not recognized | $ 164 | 154 |
Tax credit/Loss carryforwards expiration period | between the years 2026 and 2042 | |
Deferred tax liability | $ 2,774 | 2,769 |
Aggregate amount of taxable temporary differences associated with the Company's own investments in subsidiaries, not included in financial statements | 20,625 | 24,034 |
Unused tax credits [member] | ||
Statement [line items] | ||
Deferred tax assets | 507 | 490 |
Temporary differences [member] | ||
Statement [line items] | ||
Deferred tax assets | $ 1,829 | $ 1,867 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of Income Tax Expense (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of accounting profit multiplied by applicable tax rates [abstract] | ||
Income before income taxes | $ 8,747 | $ 8,125 |
Income tax expense at Canadian statutory tax rate | 2,406 | 2,153 |
Increase (decrease) in income taxes due to: | ||
Tax-exempt investment income | (214) | (261) |
Differences in tax rate on income not subject to tax in Canada | (835) | (917) |
Adjustments to taxes related to prior years | (37) | (38) |
Tax losses and temporary differences not recognized as deferred taxes | 86 | 53 |
Tax rate change in Canada | (201) | |
Other differences | 360 | 223 |
Income tax expense | $ 1,565 | $ 1,213 |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Tax Assets and Liabilities (Detail) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets and liabilities [abstract] | |||
Deferred tax assets | $ 5,423 | $ 5,254 | |
Deferred tax liability | (2,774) | (2,769) | |
Net deferred tax assets (liabilities) | $ 2,649 | $ 2,485 | $ 2,228 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of changes in deferred tax liability (asset) [line items] | ||
Beginning balance | $ 2,485 | $ 2,228 |
Disposals | (9) | |
Recognized in Income Statement | (731) | 127 |
Recognized in Other Comprehensive Income | 863 | 61 |
Recognized in Equity | 8 | 15 |
Translation and Other | 24 | 63 |
Ending balance | 2,649 | 2,485 |
Loss carryforwards [Member] | ||
Reconciliation of changes in deferred tax liability (asset) [line items] | ||
Beginning balance | 517 | 497 |
Disposals | (10) | |
Recognized in Income Statement | 184 | 22 |
Translation and Other | 8 | |
Ending balance | 701 | 517 |
Actuarial liabilities [Member] | ||
Reconciliation of changes in deferred tax liability (asset) [line items] | ||
Beginning balance | 8,703 | 9,372 |
Recognized in Income Statement | (5,537) | (666) |
Recognized in Equity | 1 | |
Translation and Other | 374 | (3) |
Ending balance | 3,541 | 8,703 |
Pensions and post-employment benefits [Member] | ||
Reconciliation of changes in deferred tax liability (asset) [line items] | ||
Beginning balance | 161 | 215 |
Recognized in Income Statement | (1) | 7 |
Recognized in Other Comprehensive Income | (17) | (61) |
Ending balance | 143 | 161 |
Tax credits [Member] | ||
Reconciliation of changes in deferred tax liability (asset) [line items] | ||
Beginning balance | 46 | 34 |
Recognized in Income Statement | 63 | 11 |
Recognized in Other Comprehensive Income | 1 | |
Ending balance | 109 | 46 |
Accrued interest [Member] | ||
Reconciliation of changes in deferred tax liability (asset) [line items] | ||
Beginning balance | 1 | 1 |
Ending balance | 1 | 1 |
Real estate [Member] | ||
Reconciliation of changes in deferred tax liability (asset) [line items] | ||
Beginning balance | (1,171) | (1,033) |
Recognized in Income Statement | (20) | (145) |
Recognized in Other Comprehensive Income | (1) | |
Translation and Other | (36) | 7 |
Ending balance | (1,228) | (1,171) |
Securities and other investments [member] | ||
Reconciliation of changes in deferred tax liability (asset) [line items] | ||
Beginning balance | (5,139) | (5,950) |
Recognized in Income Statement | 4,552 | 643 |
Recognized in Other Comprehensive Income | 879 | 119 |
Recognized in Equity | (1) | |
Translation and Other | (250) | 49 |
Ending balance | 41 | (5,139) |
Sale of investments [Member] | ||
Reconciliation of changes in deferred tax liability (asset) [line items] | ||
Beginning balance | (40) | (56) |
Recognized in Income Statement | 10 | 16 |
Ending balance | (30) | (40) |
Goodwill and intangible assets [Member] | ||
Reconciliation of changes in deferred tax liability (asset) [line items] | ||
Beginning balance | (804) | (849) |
Recognized in Income Statement | (4) | 29 |
Translation and Other | (17) | 16 |
Ending balance | (825) | (804) |
Other [Member] | ||
Reconciliation of changes in deferred tax liability (asset) [line items] | ||
Beginning balance | 211 | (3) |
Disposals | 1 | |
Recognized in Income Statement | 22 | 210 |
Recognized in Other Comprehensive Income | 2 | 2 |
Recognized in Equity | 8 | 15 |
Translation and Other | (47) | (14) |
Ending balance | $ 196 | $ 211 |
Interests in Structured Entit_3
Interests in Structured Entities - Additional Information (Detail) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of unconsolidated structured entities [Line Items] | ||
Investment in startup capital of mutual funds | $ 1,296 | $ 1,361 |
Retail mutual fund assets under management | 258,183 | 290,863 |
Hancock Victoria Plantations Holdings PTY Limited [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Consolidated timber assets | $ 1,264 | $ 979 |
Interests in Structured Entit_4
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 ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of unconsolidated structured entities [Line Items] | ||
Company's investment | $ 5,121 | $ 4,812 |
Company's maximum exposure to loss | 5,121 | 4,812 |
Leveraged leases [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Company's investment | 3,840 | 3,457 |
Company's maximum exposure to loss | 3,840 | 3,457 |
Timberland companies [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Company's investment | 816 | 842 |
Company's maximum exposure to loss | 816 | 842 |
Real estate companies [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Company's investment | 465 | 513 |
Company's maximum exposure to loss | $ 465 | $ 513 |
Interests in Structured Entit_5
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 ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of unconsolidated structured entities [Line Items] | ||
Company's interests | $ 691 | $ 850 |
Manulife Finance (Delaware), L.P.[Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Company's interests | $ 691 | $ 850 |
Interests in Structured Entit_6
Interests in Structured Entities - Schedule of Securitized Holdings by the Type and Asset Quality (Detail) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of unconsolidated structured entities [Line Items] | ||
Securitized holdings | $ 2,609 | $ 3,229 |
AAA [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Securitized holdings | 1,775 | 2,346 |
AA [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Securitized holdings | 9 | 11 |
A [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Securitized holdings | 590 | 641 |
BBB [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Securitized holdings | 232 | 227 |
BB and below [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Securitized holdings | 3 | $ 4 |
CMBS [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Securitized holdings | 731 | |
CMBS [Member] | AAA [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Securitized holdings | 675 | |
CMBS [Member] | A [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Securitized holdings | 56 | |
RMBS [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Securitized holdings | 8 | |
RMBS [Member] | AAA [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Securitized holdings | 5 | |
RMBS [Member] | AA [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Securitized holdings | 3 | |
Asset backed securities [member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Securitized holdings | 1,870 | |
Asset backed securities [member] | AAA [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Securitized holdings | 1,095 | |
Asset backed securities [member] | AA [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Securitized holdings | 6 | |
Asset backed securities [member] | A [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Securitized holdings | 534 | |
Asset backed securities [member] | BBB [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Securitized holdings | 232 | |
Asset backed securities [member] | BB and below [Member] | ||
Disclosure of unconsolidated structured entities [Line Items] | ||
Securitized holdings | $ 3 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of commitments and contingencies [line items] | ||
Investment commitments outstanding | $ 14,193 | $ 12,233 |
Letters of credit outstanding | 215 | 99 |
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 | |
Mature in 30 Days [Member] | ||
Disclosure of commitments and contingencies [line items] | ||
Investment commitments outstanding | 1,095 | 957 |
Less than 1 year [Member] | ||
Disclosure of commitments and contingencies [line items] | ||
Investment commitments outstanding | 3,359 | 3,205 |
Mature after One year [Member] | ||
Disclosure of commitments and contingencies [line items] | ||
Investment commitments outstanding | $ 9,739 | $ 8,071 |
Commitments and Contingencies_2
Commitments and Contingencies - Summary of Condensed Consolidated Statements of Income Information for MFC and MFLP (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Condensed Income Statements, Captions [Line Items] | ||
Total revenue | $ 17,147 | $ 61,821 |
Net income (loss) attributed to shareholders | 7,294 | 7,105 |
MFC [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Total revenue | 518 | 563 |
Net income (loss) attributed to shareholders | 7,294 | 7,105 |
Other subsidiaries of MFC on a combined basis [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Total revenue | 17,732 | 62,323 |
Net income (loss) attributed to shareholders | 7,071 | 6,842 |
Consolidating adjustments [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Total revenue | (1,103) | (1,065) |
Net income (loss) attributed to shareholders | (7,071) | (6,842) |
Manulife Finance (Delaware), L.P.[Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Total revenue | 64 | 41 |
Net income (loss) attributed to shareholders | $ 21 | $ 3 |
Commitments and Contingencies_3
Commitments and Contingencies - Summary of Condensed Consolidated Statements of Financial Position for MFC and MFLP (Detail) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Invested assets | $ 414,001 | $ 427,098 | |
Total other assets | 86,378 | 90,757 | |
Segregated funds net assets | 348,562 | 399,788 | |
Insurance contract liabilities | 371,405 | 392,275 | $ 385,554 |
Investment contract liabilities | 3,248 | 3,117 | |
Segregated funds net liabilities | 348,562 | 399,788 | |
Total other liabilities | 69,347 | 63,594 | |
MFC [Member] | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Invested assets | 63 | 78 | |
Total other assets | 67,543 | 68,866 | |
Total other liabilities | 11,545 | 10,536 | |
Other subsidiaries of MFC on a combined basis [Member] | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Invested assets | 413,938 | 427,020 | |
Total other assets | 90,687 | 94,615 | |
Segregated funds net assets | 348,562 | 399,788 | |
Insurance contract liabilities | 371,405 | 392,275 | |
Investment contract liabilities | 3,248 | 3,117 | |
Segregated funds net liabilities | 348,562 | 399,788 | |
Total other liabilities | 58,246 | 53,962 | |
Consolidating adjustments [Member] | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Total other assets | (71,852) | (72,724) | |
Total other liabilities | (444) | (904) | |
Manulife Finance (Delaware), L.P.[Member] | |||
Condensed Balance Sheet Statements, Captions [Line Items] | |||
Invested assets | 21 | 3 | |
Total other assets | 950 | 1,088 | |
Total other liabilities | $ 712 | $ 852 |
Commitments and Contingencies_4
Commitments and Contingencies - Schedule of Pledged Assets (Detail) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt securities [Member] | ||
Disclosure Of Pledged Assets [line items] | ||
Pledged amount | $ 13,150 | $ 6,429 |
Debt securities [Member] | Derivatives [Member] | ||
Disclosure Of Pledged Assets [line items] | ||
Pledged amount | 11,944 | 5,525 |
Debt securities [Member] | Regulatory requirements [Member] | ||
Disclosure Of Pledged Assets [line items] | ||
Pledged amount | 320 | 367 |
Debt securities [Member] | Repurchase agreements [Member] | ||
Disclosure Of Pledged Assets [line items] | ||
Pledged amount | 886 | 535 |
Debt securities [Member] | Other [Member] | ||
Disclosure Of Pledged Assets [line items] | ||
Pledged amount | 2 | |
Other [Member] | ||
Disclosure Of Pledged Assets [line items] | ||
Pledged amount | 3,215 | 3,467 |
Other [Member] | Derivatives [Member] | ||
Disclosure Of Pledged Assets [line items] | ||
Pledged amount | 23 | 23 |
Other [Member] | Secured borrowings [Member] | ||
Disclosure Of Pledged Assets [line items] | ||
Pledged amount | 2,385 | 2,575 |
Other [Member] | Regulatory requirements [Member] | ||
Disclosure Of Pledged Assets [line items] | ||
Pledged amount | 77 | 78 |
Other [Member] | Non-registered retirement plans in trust [Member] | ||
Disclosure Of Pledged Assets [line items] | ||
Pledged amount | 326 | 377 |
Other [Member] | Other [Member] | ||
Disclosure Of Pledged Assets [line items] | ||
Pledged amount | $ 404 | $ 414 |
Segmented Information - Summary
Segmented Information - Summary of Results by Segments (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of operating segments [line items] | ||
Net premium income | $ 37,853 | $ 39,065 |
Net investment income (loss) | (29,870) | 11,624 |
Other revenue | 9,164 | 11,132 |
Total revenue | 17,147 | 61,821 |
Net benefits and claims | (9,299) | 35,822 |
Interest expense | 1,350 | 1,011 |
Other expenses | 16,349 | 16,863 |
Total contract benefits and expenses | 8,400 | 53,696 |
Income (loss) before income taxes | 8,747 | 8,125 |
Income tax (expense) recovery | (1,565) | (1,213) |
Net income (loss) | 7,182 | 6,912 |
Non-controlling interests | (1) | 255 |
Participating policyholders | (111) | (448) |
Net income (loss) attributed to shareholders | 7,294 | 7,105 |
Total assets | 848,941 | 917,643 |
Life and health insurance [Member] | ||
Disclosure of operating segments [line items] | ||
Net premium income | 35,483 | 36,130 |
Net benefits and claims | (516) | 37,982 |
Annuities and pensions [Member] | ||
Disclosure of operating segments [line items] | ||
Net premium income | 2,370 | 2,935 |
Net benefits and claims | (8,783) | (2,160) |
Operating segments [Member] | Asia Division [Member] | ||
Disclosure of operating segments [line items] | ||
Net premium income | 21,476 | 22,986 |
Net investment income (loss) | (7,972) | 4,889 |
Other revenue | 1,458 | 1,696 |
Total revenue | 14,962 | 29,571 |
Net benefits and claims | 7,643 | 20,878 |
Interest expense | 234 | 232 |
Other expenses | 5,024 | 5,273 |
Total contract benefits and expenses | 12,901 | 26,383 |
Income (loss) before income taxes | 2,061 | 3,188 |
Income tax (expense) recovery | (308) | (445) |
Net income (loss) | 1,753 | 2,743 |
Non-controlling interests | (4) | 253 |
Participating policyholders | (467) | (567) |
Net income (loss) attributed to shareholders | 2,224 | 3,057 |
Total assets | 158,036 | 162,970 |
Operating segments [Member] | Asia Division [Member] | Life and health insurance [Member] | ||
Disclosure of operating segments [line items] | ||
Net premium income | 18,690 | 20,428 |
Net benefits and claims | 4,976 | 18,240 |
Operating segments [Member] | Asia Division [Member] | Annuities and pensions [Member] | ||
Disclosure of operating segments [line items] | ||
Net premium income | 2,786 | 2,558 |
Net benefits and claims | 2,667 | 2,638 |
Operating segments [Member] | Canadian Division [Member] | ||
Disclosure of operating segments [line items] | ||
Net premium income | 10,392 | 9,561 |
Net investment income (loss) | (7,911) | 1,469 |
Other revenue | 1,426 | 1,336 |
Total revenue | 3,907 | 12,366 |
Net benefits and claims | (2,793) | 6,905 |
Interest expense | 573 | 269 |
Other expenses | 3,506 | 3,401 |
Total contract benefits and expenses | 1,286 | 10,575 |
Income (loss) before income taxes | 2,621 | 1,791 |
Income tax (expense) recovery | (777) | (336) |
Net income (loss) | 1,844 | 1,455 |
Participating policyholders | 314 | 101 |
Net income (loss) attributed to shareholders | 1,530 | 1,354 |
Total assets | 155,049 | 169,736 |
Operating segments [Member] | Canadian Division [Member] | Life and health insurance [Member] | ||
Disclosure of operating segments [line items] | ||
Net premium income | 9,945 | 9,217 |
Net benefits and claims | 5,945 | 10,276 |
Operating segments [Member] | Canadian Division [Member] | Annuities and pensions [Member] | ||
Disclosure of operating segments [line items] | ||
Net premium income | 447 | 344 |
Net benefits and claims | (8,738) | (3,371) |
Operating segments [Member] | US Division [Member] | ||
Disclosure of operating segments [line items] | ||
Net premium income | 5,716 | 6,371 |
Net investment income (loss) | (13,003) | 5,061 |
Other revenue | 458 | 1,824 |
Total revenue | (6,829) | 13,256 |
Net benefits and claims | (14,621) | 7,779 |
Interest expense | 67 | 47 |
Other expenses | 2,847 | 2,947 |
Total contract benefits and expenses | (11,707) | 10,773 |
Income (loss) before income taxes | 4,878 | 2,483 |
Income tax (expense) recovery | (886) | (385) |
Net income (loss) | 3,992 | 2,098 |
Participating policyholders | 42 | 18 |
Net income (loss) attributed to shareholders | 3,950 | 2,080 |
Total assets | 267,653 | 290,838 |
Operating segments [Member] | US Division [Member] | Life and health insurance [Member] | ||
Disclosure of operating segments [line items] | ||
Net premium income | 6,579 | 6,338 |
Net benefits and claims | (11,868) | 9,307 |
Operating segments [Member] | US Division [Member] | Annuities and pensions [Member] | ||
Disclosure of operating segments [line items] | ||
Net premium income | (863) | 33 |
Net benefits and claims | (2,753) | (1,528) |
Operating segments [Member] | Global wealth and asset management [member] | ||
Disclosure of operating segments [line items] | ||
Net investment income (loss) | (39) | 28 |
Other revenue | 6,350 | 6,513 |
Total revenue | 6,311 | 6,541 |
Net benefits and claims | 41 | 101 |
Interest expense | 7 | 1 |
Other expenses | 4,717 | 4,798 |
Total contract benefits and expenses | 4,765 | 4,900 |
Income (loss) before income taxes | 1,546 | 1,641 |
Income tax (expense) recovery | (223) | (233) |
Net income (loss) | 1,323 | 1,408 |
Non-controlling interests | 2 | 2 |
Net income (loss) attributed to shareholders | 1,321 | 1,406 |
Total assets | 231,154 | 259,363 |
Operating segments [Member] | Global wealth and asset management [member] | Annuities and pensions [Member] | ||
Disclosure of operating segments [line items] | ||
Net benefits and claims | 41 | 101 |
Corporate and other [member] | ||
Disclosure of operating segments [line items] | ||
Net premium income | 269 | 147 |
Net investment income (loss) | (945) | 177 |
Other revenue | (528) | (237) |
Total revenue | (1,204) | 87 |
Net benefits and claims | 431 | 159 |
Interest expense | 469 | 462 |
Other expenses | 255 | 444 |
Total contract benefits and expenses | 1,155 | 1,065 |
Income (loss) before income taxes | (2,359) | (978) |
Income tax (expense) recovery | 629 | 186 |
Net income (loss) | (1,730) | (792) |
Non-controlling interests | 1 | |
Net income (loss) attributed to shareholders | (1,731) | (792) |
Total assets | 37,049 | 34,736 |
Corporate and other [member] | Life and health insurance [Member] | ||
Disclosure of operating segments [line items] | ||
Net premium income | 269 | 147 |
Net benefits and claims | $ 431 | $ 159 |
Segmented Information - Summa_2
Segmented Information - Summary of Results by Geographic Location (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of geographical areas [line items] | ||
Net premium income | $ 37,853 | $ 39,065 |
Net investment income (loss) | (29,870) | 11,624 |
Other revenue | 9,164 | 11,132 |
Total revenue | 17,147 | 61,821 |
Life and health insurance [Member] | ||
Disclosure of geographical areas [line items] | ||
Net premium income | 35,483 | 36,130 |
Annuities and pensions [Member] | ||
Disclosure of geographical areas [line items] | ||
Net premium income | 2,370 | 2,935 |
Asia [member] | ||
Disclosure of geographical areas [line items] | ||
Net premium income | 21,572 | 23,073 |
Net investment income (loss) | (8,468) | 5,313 |
Other revenue | 2,702 | 2,818 |
Total revenue | 15,806 | 31,204 |
Asia [member] | Life and health insurance [Member] | ||
Disclosure of geographical areas [line items] | ||
Net premium income | 18,786 | 20,515 |
Asia [member] | Annuities and pensions [Member] | ||
Disclosure of geographical areas [line items] | ||
Net premium income | 2,786 | 2,558 |
Canada [member] | ||
Disclosure of geographical areas [line items] | ||
Net premium income | 10,062 | 9,249 |
Net investment income (loss) | (8,435) | 1,255 |
Other revenue | 3,246 | 3,363 |
Total revenue | 4,873 | 13,867 |
Canada [member] | Life and health insurance [Member] | ||
Disclosure of geographical areas [line items] | ||
Net premium income | 9,615 | 8,905 |
Canada [member] | Annuities and pensions [Member] | ||
Disclosure of geographical areas [line items] | ||
Net premium income | 447 | 344 |
U.S. [member] | ||
Disclosure of geographical areas [line items] | ||
Net premium income | 5,717 | 6,373 |
Net investment income (loss) | (13,288) | 4,830 |
Other revenue | 3,217 | 4,952 |
Total revenue | (4,354) | 16,155 |
U.S. [member] | Life and health insurance [Member] | ||
Disclosure of geographical areas [line items] | ||
Net premium income | 6,580 | 6,340 |
U.S. [member] | Annuities and pensions [Member] | ||
Disclosure of geographical areas [line items] | ||
Net premium income | (863) | 33 |
Other [Member] | ||
Disclosure of geographical areas [line items] | ||
Net premium income | 502 | 370 |
Net investment income (loss) | 321 | 226 |
Other revenue | (1) | (1) |
Total revenue | 822 | 595 |
Other [Member] | Life and health insurance [Member] | ||
Disclosure of geographical areas [line items] | ||
Net premium income | $ 502 | $ 370 |
Related Parties - Summary of Co
Related Parties - Summary of Compensation of Key Management Personnel (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Compensation Of Key Management Personnel [abstract] | ||
Short-term employee benefits | $ 73 | $ 65 |
Post-employment benefits | 6 | 5 |
Share-based payments | 73 | 57 |
Termination benefits | 0 | |
Other long-term benefits | 3 | 2 |
Total | $ 155 | $ 129 |
Subsidiaries - Summary of Direc
Subsidiaries - Summary of Directly and Indirectly Held Major Operating Subsidiaries (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2022 CAD ($) | |
The Manufacturers Life Insurance Company [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | The Manufacturers Life Insurance Company |
Equity Interest | $ 65,848 |
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% |
Percentage of voting rights held in subsidiary | 100% |
Manulife Holdings (Alberta) Limited [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Holdings (Alberta) Limited |
Equity Interest | $ 21,640 |
Address | Calgary, Canada |
Description | Holding company |
Percentage of ownership interest in subsidiary | 100% |
Percentage of voting rights held in subsidiary | 100% |
John Hancock Financial Corporation [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | John Hancock Financial Corporation |
Address | Boston, U.S.A. |
Description | Holding company |
Percentage of ownership interest in subsidiary | 100% |
Percentage of voting rights held in subsidiary | 100% |
The Manufacturers Investment Corporation [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | The Manufacturers Investment Corporation |
Address | Boston, U.S.A. |
Description | Holding company |
Percentage of ownership interest in subsidiary | 100% |
Percentage of voting rights held in subsidiary | 100% |
John Hancock Reassurance Company Ltd. [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | John Hancock Reassurance Company Ltd. |
Address | Boston, 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% |
Percentage of voting rights held in subsidiary | 100% |
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 | Boston, U.S.A. |
Description | U.S. life insurance company licensed in all states, except New York |
Percentage of ownership interest in subsidiary | 100% |
Percentage of voting rights held in subsidiary | 100% |
John Hancock Subsidiaries LLC [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | John Hancock Subsidiaries LLC |
Address | Boston, U.S.A. |
Description | Holding company |
Percentage of ownership interest in subsidiary | 100% |
Percentage of voting rights held in subsidiary | 100% |
John Hancock Financial Network, Inc. [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | John Hancock Financial Network, Inc. |
Address | Boston, U.S.A. |
Description | Financial services distribution organization |
Percentage of ownership interest in subsidiary | 100% |
Percentage of voting rights held in subsidiary | 100% |
John Hancock Investment Management LLC [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | John Hancock Investment Management LLC |
Address | Boston, U.S.A. |
Description | Investment advisor |
Percentage of ownership interest in subsidiary | 100% |
Percentage of voting rights held in subsidiary | 100% |
John Hancock Investment Management Distributors LLC [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | John Hancock Investment Management Distributors LLC |
Address | Boston, U.S.A. |
Description | Broker-dealer |
Percentage of ownership interest in subsidiary | 100% |
Percentage of voting rights held in subsidiary | 100% |
Manulife Investment Management (US) LLC [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Investment Management (US) LLC |
Address | Boston, U.S.A. |
Description | Investment advisor |
Percentage of ownership interest in subsidiary | 100% |
Percentage of voting rights held in subsidiary | 100% |
Manulife Investment Management Timberland And Agriculture Inc. [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Investment Management Timberland and Agriculture Inc |
Address | Boston, U.S.A. |
Description | Manager of globally diversified timberland and agricultural portfolios |
Percentage of ownership interest in subsidiary | 100% |
Percentage of voting rights held in subsidiary | 100% |
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% |
Percentage of voting rights held in subsidiary | 100% |
John Hancock Variable Trust Advisers LLC [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | John Hancock Variable Trust Advisers LLC |
Address | Boston, U.S.A. |
Description | Investment advisor for open-end mutual funds |
Percentage of ownership interest in subsidiary | 100% |
Percentage of voting rights held in subsidiary | 100% |
John Hancock Life & Health Insurance Company [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | John Hancock Life & Health Insurance Company |
Address | Boston, U.S.A. |
Description | U.S. life insurance company licensed in all states |
Percentage of ownership interest in subsidiary | 100% |
Percentage of voting rights held in subsidiary | 100% |
John Hancock Distributors, LLC [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | John Hancock Distributors LLC |
Address | Boston, U.S.A. |
Description | Broker-dealer |
Percentage of ownership interest in subsidiary | 100% |
Percentage of voting rights held in subsidiary | 100% |
John Hancock Insurance Agency, Inc. [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | John Hancock Insurance Agency, Inc. |
Address | Boston, U.S.A. |
Description | Insurance agency |
Percentage of ownership interest in subsidiary | 100% |
Percentage of voting rights held in subsidiary | 100% |
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% |
Percentage of voting rights held in subsidiary | 100% |
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% |
Percentage of voting rights held in subsidiary | 100% |
Manulife Bank of Canada [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Bank of Canada |
Equity Interest | $ 1,788 |
Address | Waterloo, Canada |
Description | Provides integrated banking products and service options not available from an insurance company |
Percentage of ownership interest in subsidiary | 100% |
Percentage of voting rights held in subsidiary | 100% |
Manulife Investment Management Holdings Canada Inc. [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Investment Management Holdings (Canada) Inc. |
Equity Interest | $ 1,179 |
Address | Toronto, Canada |
Description | Holding company |
Percentage of ownership interest in subsidiary | 100% |
Percentage of voting rights held in subsidiary | 100% |
Manulife Investment Management Limited [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Investment Management Limited |
Address | Toronto, Canada |
Description | Provides investment counseling, portfolio and mutual fund management in Canada |
Percentage of ownership interest in subsidiary | 100% |
Percentage of voting rights held in subsidiary | 100% |
First North American Insurance Company [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | First North American Insurance Company |
Equity Interest | $ 7 |
Address | Toronto, Canada |
Description | Property and casualty insurance company |
Percentage of ownership interest in subsidiary | 100% |
Percentage of voting rights held in subsidiary | 100% |
Manulife Securities Investment Services Inc. [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Securities Investment Services Inc. |
Equity Interest | $ 80 |
Address | Oakville, Canada |
Description | Mutual fund dealer for Canadian operations |
Percentage of ownership interest in subsidiary | 100% |
Percentage of voting rights held in subsidiary | 100% |
Manulife Holdings (Bermuda) Limited [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Holdings (Bermuda) Limited |
Equity Interest | $ 22,841 |
Address | Hamilton, Bermuda |
Description | Holding company |
Percentage of ownership interest in subsidiary | 100% |
Percentage of voting rights held in subsidiary | 100% |
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% |
Percentage of voting rights held in subsidiary | 100% |
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% |
Percentage of voting rights held in subsidiary | 100% |
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% |
Percentage of voting rights held in subsidiary | 100% |
Manulife Myanmar Life Insurance Company Limited [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Myanmar Life Insurance Company Limited |
Address | Yangon, Myanmar |
Description | Life insurance company |
Percentage of ownership interest in subsidiary | 100% |
Percentage of voting rights held in subsidiary | 100% |
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% |
Percentage of voting rights held in subsidiary | 100% |
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% |
Percentage of voting rights held in subsidiary | 100% |
Manulife Investment Fund Management (Vietnam) Company Limited [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Investment Fund Management (Vietnam) Company Limited |
Address | Ho Chi Minh City, Vietnam |
Description | Fund management company |
Percentage of ownership interest in subsidiary | 100% |
Percentage of voting rights held in subsidiary | 100% |
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% |
Percentage of voting rights held in subsidiary | 100% |
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% |
Percentage of voting rights held in subsidiary | 100% |
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 | 100% |
Percentage of voting rights held in subsidiary | 100% |
Manulife Investment Management International Holdings Limited [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Investment Management International Holdings Limited |
Address | Hong Kong, China |
Description | Holding company |
Percentage of ownership interest in subsidiary | 100% |
Percentage of voting rights held in subsidiary | 100% |
Manulife Investment Management (Hong Kong) Limited [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Investment Management (Hong Kong) Limited |
Address | Hong Kong, China |
Description | Investment management and advisory company marketing mutual funds |
Percentage of ownership interest in subsidiary | 100% |
Percentage of voting rights held in subsidiary | 100% |
Manulife Investment Management (Taiwan) Co., Ltd. [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Investment Management (Taiwan) Co., Ltd. |
Address | Taipei, Taiwan (China) |
Description | Investment management company |
Percentage of ownership interest in subsidiary | 100% |
Percentage of voting rights held in subsidiary | 100% |
Manulife Life Insurance Company (Japan) [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Life Insurance Company (Japan) |
Address | Tokyo, Japan |
Description | Life insurance company |
Percentage of ownership interest in subsidiary | 100% |
Percentage of voting rights held in subsidiary | 100% |
Manulife Investment Management (Japan) Limited [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Investment Management (Japan) Limited |
Address | Tokyo, Japan |
Description | Investment management and advisory company and mutual fund business |
Percentage of ownership interest in subsidiary | 100% |
Percentage of voting rights held in subsidiary | 100% |
Manulife Holdings Berhad [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Holdings Berhad (61.6%) |
Address | Kuala Lumpur, Malaysia |
Description | Holding company |
Percentage of ownership interest in subsidiary | 100% |
Percentage of voting rights held in subsidiary | 100% |
Manulife Insurance Berhad [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Insurance Berhad (61.6%) |
Address | Kuala Lumpur, Malaysia |
Description | Life insurance company |
Percentage of ownership interest in subsidiary | 100% |
Percentage of voting rights held in subsidiary | 100% |
Manulife Investment Management (Malaysia) Berhad [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Investment Management (Malaysia) Berhad (61.6%) |
Address | Kuala Lumpur, Malaysia |
Description | Asset management company |
Percentage of ownership interest in subsidiary | 100% |
Percentage of voting rights held in subsidiary | 100% |
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% |
Percentage of voting rights held in subsidiary | 100% |
Manulife Investment Management (Singapore) Pte. Ltd. [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Investment Management (Singapore) Pte. Ltd. |
Address | Singapore |
Description | Asset management company |
Percentage of ownership interest in subsidiary | 100% |
Percentage of voting rights held in subsidiary | 100% |
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% |
Percentage of voting rights held in subsidiary | 100% |
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 | 100% |
Percentage of voting rights held in subsidiary | 100% |
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% |
Percentage of voting rights held in subsidiary | 100% |
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 and investment advisor |
Percentage of ownership interest in subsidiary | 100% |
Percentage of voting rights held in subsidiary | 100% |
Manulife TEDA Fund Management Co Ltd [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife TEDA Fund Management Co., Ltd |
Address | Beijing, China |
Description | Mutual fund company in China |
Percentage of ownership interest in subsidiary | 100% |
Percentage of voting rights held in subsidiary | 100% |
Manulife Investment Management (Europe) Limited [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Investment Management (Europe) Limited |
Equity Interest | $ 34 |
Address | London, England |
Description | Investment management company for Manulife Financial’s international funds |
Percentage of ownership interest in subsidiary | 100% |
Percentage of voting rights held in subsidiary | 100% |
Manulife Assurance Company of Canada [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Assurance Company of Canada |
Equity Interest | $ 64 |
Address | Toronto, Canada |
Description | Life insurance company |
Percentage of ownership interest in subsidiary | 100% |
Percentage of voting rights held in subsidiary | 100% |
EIS Services Bermuda Limited [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | EIS Services (Bermuda) Limited |
Equity Interest | $ 902 |
Address | Hamilton, Bermuda |
Description | Investment holding company |
Percentage of ownership interest in subsidiary | 100% |
Percentage of voting rights held in subsidiary | 100% |
Berkshire Insurance Services Inc [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Berkshire Insurance Services Inc |
Equity Interest | $ 1,868 |
Address | Toronto, Canada |
Description | Investment holding company |
Percentage of ownership interest in subsidiary | 100% |
Percentage of voting rights held in subsidiary | 100% |
JH Investments (Delaware) LLC [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | JH Investments (Delaware) LLC |
Address | Boston, U.S.A. |
Description | Investment holding company |
Percentage of ownership interest in subsidiary | 100% |
Percentage of voting rights held in subsidiary | 100% |
Manulife Securities Incorporated [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Securities Incorporated |
Equity Interest | $ 151 |
Address | Oakville, Canada |
Description | Investment dealer |
Percentage of ownership interest in subsidiary | 100% |
Percentage of voting rights held in subsidiary | 100% |
Manulife Investment Management (North America) Limited [Member] | |
Disclosure of subsidiaries [Line Items] | |
Name of subsidiary | Manulife Investment Management (North America) Limited |
Equity Interest | $ 4 |
Address | Toronto, Canada |
Description | Investment advisor |
Percentage of ownership interest in subsidiary | 100% |
Percentage of voting rights held in subsidiary | 100% |
Segregated Funds - Summary of C
Segregated Funds - Summary of Composition of Net Assets by Categories of Segregated Funds (Detail) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
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% | 2% |
Bottom of range [Member] | Fixed income funds [Member] | ||
Disclosure of composition of net assets by categories of segregated funds [line items] | ||
Type of fund | 13% | 14% |
Bottom of range [Member] | Balanced funds [Member] | ||
Disclosure of composition of net assets by categories of segregated funds [line items] | ||
Type of fund | 22% | 22% |
Bottom of range [Member] | Equity funds [Member] | ||
Disclosure of composition of net assets by categories of segregated funds [line items] | ||
Type of fund | 61% | 60% |
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% | 3% |
Top of range [Member] | Fixed income funds [Member] | ||
Disclosure of composition of net assets by categories of segregated funds [line items] | ||
Type of fund | 14% | 15% |
Top of range [Member] | Balanced funds [Member] | ||
Disclosure of composition of net assets by categories of segregated funds [line items] | ||
Type of fund | 23% | 23% |
Top of range [Member] | Equity funds [Member] | ||
Disclosure of composition of net assets by categories of segregated funds [line items] | ||
Type of fund | 62% | 62% |
Segregated Funds - Summary of_2
Segregated Funds - Summary of Composition of Segregated Funds Net Assets (Detail) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of Composition Of Segregated Fund [line items] | |||
Total segregated funds net assets | $ 348,933 | $ 400,196 | $ 367,809 |
Composition of segregated funds net assets | |||
Held by policyholders | 348,562 | 399,788 | |
Held by the Company | 371 | 408 | |
Cash and short-term securities [Member] | |||
Disclosure of Composition Of Segregated Fund [line items] | |||
Total segregated funds net assets | 4,280 | 3,955 | |
Debt securities [Member] | |||
Disclosure of Composition Of Segregated Fund [line items] | |||
Total segregated funds net assets | 15,270 | 18,651 | |
Equity [Member] | |||
Disclosure of Composition Of Segregated Fund [line items] | |||
Total segregated funds net assets | 15,499 | 16,844 | |
Mutual funds [Member] | |||
Disclosure of Composition Of Segregated Fund [line items] | |||
Total segregated funds net assets | 308,707 | 354,882 | |
Other investments [Member] | |||
Disclosure of Composition Of Segregated Fund [line items] | |||
Total segregated funds net assets | 4,293 | 4,613 | |
Accrued investment income [member] | |||
Disclosure of Composition Of Segregated Fund [line items] | |||
Total segregated funds net assets | 1,680 | 2,340 | |
Other assets and liabilities, net [Member] | |||
Disclosure of Composition Of Segregated Fund [line items] | |||
Total segregated funds net assets | $ (796) | $ (1,089) |
Segregated Funds - Summary of_3
Segregated Funds - Summary of Changes in Segregated Funds Net Assets (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Net policyholder cash flow | ||
Deposits from policyholders | $ 42,427 | $ 44,548 |
Net transfers to general fund | (1,267) | (732) |
Payments to policyholders | (46,333) | (52,182) |
Net policyholder cash flow | (5,173) | (8,366) |
Investment related | ||
Interest and dividends | 21,900 | 24,092 |
Net realized and unrealized investment gains (losses) | (78,017) | 21,549 |
Investment related | (56,117) | 45,641 |
Other | ||
Management and administration fees | (3,886) | (4,115) |
Impact of changes in foreign exchange rates | 13,913 | (773) |
Other | 10,027 | (4,888) |
Net additions | (51,263) | 32,387 |
Segregated funds net assets, beginning of year | 400,196 | 367,809 |
Segregated funds net assets, end of year | $ 348,933 | $ 400,196 |
Information Provided in Conne_3
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 ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | |||
Invested assets | $ 414,001 | $ 427,098 | |
Reinsurance assets | 47,712 | 44,579 | |
Other assets | 38,666 | 46,178 | |
Segregated funds net assets | 348,562 | 399,788 | |
Total assets | 848,941 | 917,643 | |
Liabilities and Equity | |||
Insurance contract liabilities | 371,405 | 392,275 | $ 385,554 |
Investment contract liabilities | 3,248 | 3,117 | |
Other liabilities | 56,991 | 51,732 | |
Long-term debt | 6,234 | 4,882 | |
Capital instruments | 6,122 | 6,980 | |
Segregated funds net liabilities | 348,562 | 399,788 | |
Shareholders' and other equity holders' equity | 56,061 | 58,408 | |
Participating policyholders' equity | (1,346) | (1,233) | |
Non-controlling interests | 1,664 | 1,694 | |
Total liabilities and equity | 848,941 | 917,643 | |
MFC (Guarantor) [Member] | |||
Assets | |||
Invested assets | 63 | 78 | |
Investments in unconsolidated subsidiaries | 67,209 | 68,655 | |
Other assets | 334 | 211 | |
Total assets | 67,606 | 68,944 | |
Liabilities and Equity | |||
Other liabilities | 451 | 899 | |
Long-term debt | 6,234 | 4,882 | |
Capital instruments | 4,860 | 4,755 | |
Shareholders' and other equity holders' equity | 56,061 | 58,408 | |
Total liabilities and equity | 67,606 | 68,944 | |
JHUSA (Issuer) [Member] | |||
Assets | |||
Invested assets | 116,463 | 116,705 | |
Investments in unconsolidated subsidiaries | 8,819 | 9,107 | |
Reinsurance assets | 61,511 | 63,838 | |
Other assets | 9,456 | 18,085 | |
Segregated funds net assets | 173,417 | 204,493 | |
Total assets | 369,666 | 412,228 | |
Liabilities and Equity | |||
Insurance contract liabilities | 156,205 | 166,535 | |
Investment contract liabilities | 1,418 | 1,227 | |
Other liabilities | 20,159 | 21,806 | |
Capital instruments | 614 | 579 | |
Segregated funds net liabilities | 173,417 | 204,493 | |
Shareholders' and other equity holders' equity | 17,853 | 17,588 | |
Total liabilities and equity | 369,666 | 412,228 | |
Other subsidiaries | |||
Assets | |||
Invested assets | 297,996 | 310,679 | |
Investments in unconsolidated subsidiaries | 22,053 | 20,788 | |
Reinsurance assets | 12,137 | 11,309 | |
Other assets | 48,135 | 49,956 | |
Segregated funds net assets | 177,361 | 197,220 | |
Total assets | 557,682 | 589,952 | |
Liabilities and Equity | |||
Insurance contract liabilities | 241,830 | 257,044 | |
Investment contract liabilities | 1,830 | 1,890 | |
Other liabilities | 55,304 | 50,836 | |
Capital instruments | 648 | 1,646 | |
Segregated funds net liabilities | 177,361 | 197,220 | |
Shareholders' and other equity holders' equity | 80,391 | 80,855 | |
Participating policyholders' equity | (1,346) | (1,233) | |
Non-controlling interests | 1,664 | 1,694 | |
Total liabilities and equity | 557,682 | 589,952 | |
Consolidation adjustments [Member] | |||
Assets | |||
Invested assets | (521) | (364) | |
Investments in unconsolidated subsidiaries | (98,081) | (98,550) | |
Reinsurance assets | (25,936) | (30,568) | |
Other assets | (19,259) | (22,074) | |
Segregated funds net assets | (2,216) | (1,925) | |
Total assets | (146,013) | (153,481) | |
Liabilities and Equity | |||
Insurance contract liabilities | (26,630) | (31,304) | |
Other liabilities | (18,923) | (21,809) | |
Segregated funds net liabilities | (2,216) | (1,925) | |
Shareholders' and other equity holders' equity | (98,244) | (98,443) | |
Total liabilities and equity | $ (146,013) | $ (153,481) |
Information Provided in Conne_4
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 ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue | ||
Gross premiums | $ 44,102 | $ 44,344 |
Premiums ceded to reinsurers | (6,249) | (5,279) |
Net premium income | 37,853 | 39,065 |
Net investment income (loss) | (29,870) | 11,624 |
Other revenue | 9,164 | 11,132 |
Total revenue | 17,147 | 61,821 |
Contract benefits and expenses | ||
Net benefits and claims | (9,299) | 35,822 |
Commissions, investment and general expenses | 15,905 | 16,446 |
Other expenses | 1,794 | 1,428 |
Total contract benefits and expenses | 8,400 | 53,696 |
Income (loss) before income taxes | 8,747 | 8,125 |
Income tax (expense) recovery | (1,565) | (1,213) |
Income (loss) after income taxes | 7,182 | 6,912 |
Equity in net income (loss) of unconsolidated subsidiaries | 0 | |
Net income | 7,182 | 6,912 |
Net income (loss) attributed to: | ||
Non-controlling interests | (1) | 255 |
Participating policyholders | (111) | (448) |
Shareholders and other equity holders | 7,294 | 7,105 |
Net income | 7,182 | 6,912 |
Consolidation adjustments [Member] | ||
Revenue | ||
Gross premiums | (863) | (1,001) |
Premiums ceded to reinsurers | 974 | 995 |
Net premium income | 111 | (6) |
Net investment income (loss) | (1,264) | (1,125) |
Other revenue | 1,048 | (548) |
Total revenue | (105) | (1,679) |
Contract benefits and expenses | ||
Net benefits and claims | 778 | 877 |
Commissions, investment and general expenses | (1,034) | (1,436) |
Other expenses | 151 | (1,120) |
Total contract benefits and expenses | (105) | (1,679) |
Equity in net income (loss) of unconsolidated subsidiaries | (10,269) | (9,742) |
Net income | (10,269) | (9,742) |
Net income (loss) attributed to: | ||
Participating policyholders | 4 | |
Shareholders and other equity holders | (10,269) | (9,746) |
Net income | (10,269) | (9,742) |
MFC (Guarantor) [Member] | ||
Revenue | ||
Net investment income (loss) | 554 | 530 |
Other revenue | (36) | 33 |
Total revenue | 518 | 563 |
Contract benefits and expenses | ||
Commissions, investment and general expenses | 42 | 12 |
Other expenses | 440 | 390 |
Total contract benefits and expenses | 482 | 402 |
Income (loss) before income taxes | 36 | 161 |
Income tax (expense) recovery | 32 | (28) |
Income (loss) after income taxes | 68 | 133 |
Equity in net income (loss) of unconsolidated subsidiaries | 7,226 | 6,972 |
Net income | 7,294 | 7,105 |
Net income (loss) attributed to: | ||
Shareholders and other equity holders | 7,294 | 7,105 |
Net income | 7,294 | 7,105 |
JHUSA (Issuer) [Member] | ||
Revenue | ||
Gross premiums | 7,924 | 7,782 |
Premiums ceded to reinsurers | (2,561) | (3,243) |
Net premium income | 5,363 | 4,539 |
Net investment income (loss) | (9,714) | 3,779 |
Other revenue | 281 | 2,042 |
Total revenue | (4,070) | 10,360 |
Contract benefits and expenses | ||
Net benefits and claims | (8,505) | 6,478 |
Commissions, investment and general expenses | 3,099 | 3,451 |
Other expenses | 264 | 212 |
Total contract benefits and expenses | (5,142) | 10,141 |
Income (loss) before income taxes | 1,072 | 219 |
Income tax (expense) recovery | (23) | 115 |
Income (loss) after income taxes | 1,049 | 334 |
Equity in net income (loss) of unconsolidated subsidiaries | 997 | 1,218 |
Net income | 2,046 | 1,552 |
Net income (loss) attributed to: | ||
Participating policyholders | (236) | (4) |
Shareholders and other equity holders | 2,282 | 1,556 |
Net income | 2,046 | 1,552 |
Other subsidiaries | ||
Revenue | ||
Gross premiums | 37,041 | 37,563 |
Premiums ceded to reinsurers | (4,662) | (3,031) |
Net premium income | 32,379 | 34,532 |
Net investment income (loss) | (19,446) | 8,440 |
Other revenue | 7,871 | 9,605 |
Total revenue | 20,804 | 52,577 |
Contract benefits and expenses | ||
Net benefits and claims | (1,572) | 28,467 |
Commissions, investment and general expenses | 13,798 | 14,419 |
Other expenses | 939 | 1,946 |
Total contract benefits and expenses | 13,165 | 44,832 |
Income (loss) before income taxes | 7,639 | 7,745 |
Income tax (expense) recovery | (1,574) | (1,300) |
Income (loss) after income taxes | 6,065 | 6,445 |
Equity in net income (loss) of unconsolidated subsidiaries | 2,046 | 1,552 |
Net income | 8,111 | 7,997 |
Net income (loss) attributed to: | ||
Non-controlling interests | (1) | 255 |
Participating policyholders | 125 | (448) |
Shareholders and other equity holders | 7,987 | 8,190 |
Net income | $ 8,111 | $ 7,997 |
Information Provided in Conne_5
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.) - Consolidated Statement of Cash Flows (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Operating activities | ||
Net income (loss) | $ 7,182 | $ 6,912 |
Adjustments: | ||
Equity in net income of unconsolidated subsidiaries | 0 | |
Increase (decrease) in insurance contract liabilities | (33,413) | 10,719 |
Increase (decrease) in investment contract liabilities | 41 | 44 |
(Increase) decrease in reinsurance assets excluding coinsurance transactions | 159 | 754 |
Amortization of (premium) discount on invested assets | (32) | 181 |
Other amortization | 538 | 529 |
Net realized and unrealized (gains) losses and impairment on assets | 47,270 | 4,824 |
Gain on U.S. variable annuity reinsurance transaction (pre-tax) | (1,070) | |
Gain on derecognition of Joint Venture interest during Manulife TEDA acquisition (pre-tax) | (95) | |
Deferred income tax expense (recovery) | 731 | (127) |
Stock option expense | 5 | 9 |
Cash provided by operating activities before undernoted items | 21,316 | 23,845 |
Dividends from unconsolidated subsidiary | 0 | |
Cash decrease due to U.S. variable annuity reinsurance transaction | (1,377) | |
Changes in policy related and operating receivables and payables | (2,204) | (690) |
Cash provided by (used in) operating activities | 17,735 | 23,155 |
Investing activities | ||
Purchases and mortgage advances | (111,768) | (120,965) |
Disposals and repayments | 93,407 | 96,728 |
Changes in investment broker net receivables and payables | (67) | (186) |
Net cash increase (decrease) from sale (purchase) of subsidiary | (182) | (19) |
Cash provided by (used in) investing activities | (18,610) | (24,442) |
Financing activities | ||
Issue of long-term debt, net | 946 | |
Redemption of long-term debt | (1,250) | |
Redemption of capital instruments | (1,000) | (818) |
Secured borrowings | 437 | 26 |
Change in repurchase agreements and securities sold but not yet purchased | (551) | 186 |
Changes in deposits from Bank clients, net | 1,703 | (164) |
Lease payments | (120) | (124) |
Shareholders' dividends and other equity distributions | (2,787) | (2,500) |
Common shares repurchased | (1,884) | |
Common shares issued, net | 23 | 51 |
Preferred shares and other equity issued, net | 990 | 3,171 |
Preferred shares redeemed, net | (711) | (612) |
Contributions from (distributions to) non-controlling interests, net | (51) | (13) |
Cash provided by (used in) financing activities | (3,005) | (2,047) |
Increase (decrease) during the year | (3,880) | (3,334) |
Effect of foreign exchange rate changes on cash and short-term securities | 585 | (319) |
Net cash and short-term securities, January 1 | 21,930 | 25,583 |
Net cash and short-term securities, December 31 | 18,635 | 21,930 |
Cash and short-term securities | ||
Gross cash and short-term securities, beginning of year | 22,594 | 26,167 |
Net payments in transit, included in other liabilities, beginning of year | (664) | (584) |
Net cash and short-term securities, January 1 | 21,930 | 25,583 |
Gross cash and short-term securities, end of year | 19,153 | 22,594 |
Net payments in transit, included in other liabilities, end of year | (518) | (664) |
Net cash and short-term securities, December 31 | 18,635 | 21,930 |
Supplemental disclosures on cash flow information: | ||
Interest received | 12,133 | 11,376 |
Interest paid | 1,248 | 981 |
Income taxes paid | 1,238 | 571 |
MFC (Guarantor) [Member] | ||
Operating activities | ||
Net income (loss) | 7,294 | 7,105 |
Adjustments: | ||
Equity in net income of unconsolidated subsidiaries | (7,226) | (6,972) |
Other amortization | 9 | 16 |
Net realized and unrealized (gains) losses and impairment on assets | (36) | 62 |
Deferred income tax expense (recovery) | (33) | 34 |
Cash provided by operating activities before undernoted items | 8 | 245 |
Dividends from unconsolidated subsidiary | 6,200 | 5,000 |
Changes in policy related and operating receivables and payables | 45 | (22) |
Cash provided by (used in) operating activities | 6,253 | 5,223 |
Investing activities | ||
Disposals and repayments | 1 | |
Investment in common shares of subsidiaries | (2,479) | (3,700) |
Notes receivable from subsidiaries | 46 | (13) |
Cash provided by (used in) investing activities | (2,432) | (3,713) |
Financing activities | ||
Issue of long-term debt, net | 946 | |
Redemption of long-term debt | (1,250) | |
Redemption of capital instruments | (468) | |
Shareholders' dividends and other equity distributions | (2,787) | (2,500) |
Common shares repurchased | (1,884) | |
Common shares issued, net | 23 | 51 |
Preferred shares and other equity issued, net | 990 | 3,171 |
Preferred shares redeemed, net | (711) | (612) |
Notes payable to subsidiaries | (415) | 129 |
Cash provided by (used in) financing activities | (3,838) | (1,479) |
Increase (decrease) during the year | (17) | 31 |
Effect of foreign exchange rate changes on cash and short-term securities | 2 | |
Net cash and short-term securities, January 1 | 78 | 47 |
Net cash and short-term securities, December 31 | 63 | 78 |
Cash and short-term securities | ||
Gross cash and short-term securities, beginning of year | 78 | 47 |
Net cash and short-term securities, January 1 | 78 | 47 |
Gross cash and short-term securities, end of year | 63 | 78 |
Net cash and short-term securities, December 31 | 63 | 78 |
Supplemental disclosures on cash flow information: | ||
Interest received | 512 | 499 |
Interest paid | 424 | 396 |
JHUSA (Issuer) [Member] | ||
Operating activities | ||
Net income (loss) | 2,046 | 1,552 |
Adjustments: | ||
Equity in net income of unconsolidated subsidiaries | (997) | (1,218) |
Increase (decrease) in insurance contract liabilities | (20,032) | (562) |
Increase (decrease) in investment contract liabilities | 44 | 50 |
(Increase) decrease in reinsurance assets excluding coinsurance transactions | 6,869 | 1,544 |
Amortization of (premium) discount on invested assets | 46 | 57 |
Other amortization | 125 | 124 |
Net realized and unrealized (gains) losses and impairment on assets | 15,150 | 1,533 |
Gain on U.S. variable annuity reinsurance transaction (pre-tax) | (1,026) | |
Deferred income tax expense (recovery) | 294 | 190 |
Stock option expense | (3) | (2) |
Cash provided by operating activities before undernoted items | 2,516 | 3,268 |
Dividends from unconsolidated subsidiary | 399 | 489 |
Cash decrease due to U.S. variable annuity reinsurance transaction | (1,263) | |
Changes in policy related and operating receivables and payables | 2,805 | 424 |
Cash provided by (used in) operating activities | 4,457 | 4,181 |
Investing activities | ||
Purchases and mortgage advances | (28,798) | (31,746) |
Disposals and repayments | 23,505 | 27,194 |
Changes in investment broker net receivables and payables | (11) | (202) |
Capital contribution to unconsolidated subsidiaries | (1) | (1) |
Return of capital from unconsolidated subsidiaries | 19 | 1 |
Notes receivable from subsidiaries | (7) | |
Cash provided by (used in) investing activities | (5,293) | (4,754) |
Financing activities | ||
Lease payments | (5) | (7) |
Dividends paid to parent | (734) | (742) |
Cash provided by (used in) financing activities | (739) | (749) |
Increase (decrease) during the year | (1,575) | (1,322) |
Effect of foreign exchange rate changes on cash and short-term securities | 225 | (20) |
Net cash and short-term securities, January 1 | 3,565 | 4,907 |
Net cash and short-term securities, December 31 | 2,215 | 3,565 |
Cash and short-term securities | ||
Gross cash and short-term securities, beginning of year | 4,087 | 5,213 |
Net payments in transit, included in other liabilities, beginning of year | (522) | (306) |
Net cash and short-term securities, January 1 | 3,565 | 4,907 |
Gross cash and short-term securities, end of year | 2,614 | 4,087 |
Net payments in transit, included in other liabilities, end of year | (399) | (522) |
Net cash and short-term securities, December 31 | 2,215 | 3,565 |
Supplemental disclosures on cash flow information: | ||
Interest received | 4,050 | 4,112 |
Interest paid | 118 | 73 |
Income taxes paid | 124 | (118) |
Other subsidiaries | ||
Operating activities | ||
Net income (loss) | 8,111 | 7,997 |
Adjustments: | ||
Equity in net income of unconsolidated subsidiaries | (2,046) | (1,552) |
Increase (decrease) in insurance contract liabilities | (13,381) | 11,281 |
Increase (decrease) in investment contract liabilities | (3) | (6) |
(Increase) decrease in reinsurance assets excluding coinsurance transactions | (6,710) | (790) |
Amortization of (premium) discount on invested assets | (78) | 124 |
Other amortization | 404 | 389 |
Net realized and unrealized (gains) losses and impairment on assets | 32,156 | 3,229 |
Gain on U.S. variable annuity reinsurance transaction (pre-tax) | (44) | |
Gain on derecognition of Joint Venture interest during Manulife TEDA acquisition (pre-tax) | (95) | |
Deferred income tax expense (recovery) | 470 | (351) |
Stock option expense | 8 | 11 |
Cash provided by operating activities before undernoted items | 18,792 | 20,332 |
Dividends from unconsolidated subsidiary | 734 | 742 |
Cash decrease due to U.S. variable annuity reinsurance transaction | (114) | |
Changes in policy related and operating receivables and payables | (5,054) | (1,092) |
Cash provided by (used in) operating activities | 14,358 | 19,982 |
Investing activities | ||
Purchases and mortgage advances | (82,970) | (89,219) |
Disposals and repayments | 69,901 | 69,534 |
Changes in investment broker net receivables and payables | (56) | 16 |
Net cash increase (decrease) from sale (purchase) of subsidiary | (182) | (19) |
Notes receivable from parent | 415 | (129) |
Cash provided by (used in) investing activities | (12,892) | (19,817) |
Financing activities | ||
Redemption of capital instruments | (1,000) | (350) |
Secured borrowings | 437 | 26 |
Change in repurchase agreements and securities sold but not yet purchased | (551) | 186 |
Changes in deposits from Bank clients, net | 1,703 | (164) |
Lease payments | (115) | (117) |
Common shares issued, net | 2,479 | 3,700 |
Contributions from (distributions to) non-controlling interests, net | (51) | (13) |
Dividends paid to parent | (6,599) | (5,489) |
Capital contributions by parent | 1 | 1 |
Return of capital to parent | (19) | (1) |
Notes payable to parent | (39) | 13 |
Cash provided by (used in) financing activities | (3,754) | (2,208) |
Increase (decrease) during the year | (2,288) | (2,043) |
Effect of foreign exchange rate changes on cash and short-term securities | 358 | (299) |
Net cash and short-term securities, January 1 | 18,287 | 20,629 |
Net cash and short-term securities, December 31 | 16,357 | 18,287 |
Cash and short-term securities | ||
Gross cash and short-term securities, beginning of year | 18,429 | 20,907 |
Net payments in transit, included in other liabilities, beginning of year | (142) | (278) |
Net cash and short-term securities, January 1 | 18,287 | 20,629 |
Gross cash and short-term securities, end of year | 16,476 | 18,429 |
Net payments in transit, included in other liabilities, end of year | (119) | (142) |
Net cash and short-term securities, December 31 | 16,357 | 18,287 |
Supplemental disclosures on cash flow information: | ||
Interest received | 8,732 | 7,847 |
Interest paid | 1,867 | 1,594 |
Income taxes paid | 1,114 | 689 |
Consolidation adjustments [Member] | ||
Operating activities | ||
Net income (loss) | (10,269) | (9,742) |
Adjustments: | ||
Equity in net income of unconsolidated subsidiaries | 10,269 | 9,742 |
Dividends from unconsolidated subsidiary | (7,333) | (6,231) |
Cash provided by (used in) operating activities | (7,333) | (6,231) |
Investing activities | ||
Investment in common shares of subsidiaries | 2,479 | 3,700 |
Capital contribution to unconsolidated subsidiaries | 1 | 1 |
Return of capital from unconsolidated subsidiaries | (19) | (1) |
Notes receivable from parent | (415) | 129 |
Notes receivable from subsidiaries | (39) | 13 |
Cash provided by (used in) investing activities | 2,007 | 3,842 |
Financing activities | ||
Common shares issued, net | (2,479) | (3,700) |
Dividends paid to parent | 7,333 | 6,231 |
Capital contributions by parent | (1) | (1) |
Return of capital to parent | 19 | 1 |
Notes payable to parent | 39 | (13) |
Notes payable to subsidiaries | 415 | (129) |
Cash provided by (used in) financing activities | 5,326 | 2,389 |
Supplemental disclosures on cash flow information: | ||
Interest received | (1,161) | (1,082) |
Interest paid | $ (1,161) | $ (1,082) |
Significant Accounting Polici_2
Significant Accounting Policies in Accordance with IFRS 9 and IFRS 17 - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Bottom of range [member] | |
Disclosure of detailed information about investment property [line items] | |
Estimated useful life of property | 30 years |
Top of range [member] | |
Disclosure of detailed information about investment property [line items] | |
Estimated useful life of property | 60 years |
IFRS 7 Disclosures - Summary of
IFRS 7 Disclosures - Summary of Risk Management Strategies (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Public Equity 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 |
Liquidity risk 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 |
Liquidity risk 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 |
Liquidity risk 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 |
Liquidity risk management | No |
Liquidity 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 |
Liquidity risk management | Yes |
IFRS 7 Disclosures - Additional
IFRS 7 Disclosures - Additional Information (Detail) $ in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2022 CAD ($) | Dec. 31, 2021 CAD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 CAD ($) | Dec. 31, 2020 USD ($) | |
Financial Instruments - Disclosures under IFRS 7 [line items] | ||||||
Total unencumbered assets | $ 477,700 | $ 502,400 | ||||
Dynamically hedged variable annuity guarantee best estimate liabilities, rebalancing percentage intervals | 5% | |||||
Variable annuity guarantee liabilities, rebalanced basis point intervals | 20% | |||||
50 basis point decrease in interest [member] | ||||||
Financial Instruments - Disclosures under IFRS 7 [line items] | ||||||
Sensitivity of net income attributed to shareholders | 50% | |||||
Sensitivity of our net income attributed to shareholders due to change in interest rate | $ 100 | |||||
50 basis point increase in interest [member] | ||||||
Financial Instruments - Disclosures under IFRS 7 [line items] | ||||||
Sensitivity of net income attributed to shareholders | 50% | |||||
Sensitivity of our net income attributed to shareholders due to change in interest rate | $ 100 | |||||
Unsecured revolving credit facility [Member] | Canadian chartered banks [Member] | ||||||
Financial Instruments - Disclosures under IFRS 7 [line items] | ||||||
Estimated maximum borrowing capacity | $ 500 | |||||
Unsecured revolving credit facility [Member] | U.S.banks [Member] | ||||||
Financial Instruments - Disclosures under IFRS 7 [line items] | ||||||
Estimated maximum borrowing capacity | $ 500 | |||||
Amounts outstanding | $ 0 | $ 0 | ||||
FHLBI facility [Member] | ||||||
Financial Instruments - Disclosures under IFRS 7 [line items] | ||||||
Estimated maximum borrowing capacity | 3,800 | 4,400 | ||||
Amounts outstanding | $ 500 | $ 500 | ||||
10% [member] | ||||||
Financial Instruments - Disclosures under IFRS 7 [line items] | ||||||
Percentage of expected changes in market values of publicly traded equities | 10% | 10% | ||||
20% [member] | ||||||
Financial Instruments - Disclosures under IFRS 7 [line items] | ||||||
Percentage of expected changes in market values of publicly traded equities | 20% | 20% | ||||
30% [member] | ||||||
Financial Instruments - Disclosures under IFRS 7 [line items] | ||||||
Percentage of expected changes in market values of publicly traded equities | 30% | 30% |
IFRS 7 Disclosures - Schedule o
IFRS 7 Disclosures - Schedule of Maturity of Financial Liabilities (Detail) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Maturity Analysis For Financial Liabilities [line items] | ||
Long-term debt | $ 6,234 | $ 4,882 |
Capital instruments | 6,122 | 6,980 |
Derivatives | 14,289 | 10,038 |
Deposits from bank clients | 22,507 | 20,720 |
Lease liabilities | 420 | |
Less than 1 year [Member] | ||
Disclosure Of Maturity Analysis For Financial Liabilities [line items] | ||
Derivatives | 2,656 | 294 |
Deposits from bank clients | 16,884 | |
Lease liabilities | 112 | |
1 to 3 years [Member] | ||
Disclosure Of Maturity Analysis For Financial Liabilities [line items] | ||
Capital instruments | 615 | |
Derivatives | 1,956 | 387 |
Deposits from bank clients | 3,000 | |
Lease liabilities | 154 | |
3 to 5 years [Member] | ||
Disclosure Of Maturity Analysis For Financial Liabilities [line items] | ||
Long-term debt | 2,661 | |
Derivatives | 1,146 | 379 |
Deposits from bank clients | 2,623 | |
Lease liabilities | 93 | |
Over 5 years [Member] | ||
Disclosure Of Maturity Analysis For Financial Liabilities [line items] | ||
Long-term debt | 3,573 | 3,277 |
Capital instruments | 5,507 | |
Derivatives | 8,531 | $ 8,978 |
Lease liabilities | $ 61 |
IFRS 7 Disclosures - Schedule_2
IFRS 7 Disclosures - Schedule of Maturity of Financial Liabilities (Parenthetical) (Detail) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Maturity Analysis For Financial Liabilities [line items] | ||
Carrying value of deposits from Bank clients | $ 22,507 | $ 20,720 |
Fair value of deposits from Bank clients | $ 22,271 | |
Level 2 [Member] | ||
Disclosure Of Maturity Analysis For Financial Liabilities [line items] | ||
Carrying value of deposits from Bank clients | 20,720 | |
Fair value of deposits from Bank clients | $ 20,746 |
IFRS 7 Disclosures - Variable A
IFRS 7 Disclosures - Variable Annuity and Segregated Fund Guarantees, Net of Reinsurance (Detail) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Variable Annuity And Segregated Fund Guarantees Net Of Reinsurance [line items] | ||
Total gross of reinsurance, Guarantee value | $ 73,176 | $ 74,442 |
Total reinsured, Guarantee value | 30,922 | 4,427 |
Total, net of reinsurance, Guarantee value | 42,254 | 70,015 |
Total gross of reinsurance, Fund value | 72,650 | 88,558 |
Total reinsured, Fund value | 26,327 | 3,649 |
Total, net of reinsurance, Fund value | 46,323 | 84,909 |
Total gross of reinsurance, Net Amount at risk | 9,750 | 3,781 |
Total reinsured, Net Amount at risk | 5,921 | 1,024 |
Total, net of reinsurance, Net Amount at risk | 3,829 | 2,757 |
Guaranteed minimum income benefit [Member] | ||
Variable Annuity And Segregated Fund Guarantees Net Of Reinsurance [line items] | ||
Total gross of reinsurance, Guarantee value | 4,357 | 4,419 |
Total gross of reinsurance, Fund value | 2,723 | 3,603 |
Total gross of reinsurance, Net Amount at risk | 1,639 | 918 |
Guaranteed minimum withdrawal benefit [Member] | ||
Variable Annuity And Segregated Fund Guarantees Net Of Reinsurance [line items] | ||
Total gross of reinsurance, Guarantee value | 38,319 | 39,098 |
Total gross of reinsurance, Fund value | 34,203 | 41,809 |
Total gross of reinsurance, Net Amount at risk | 5,734 | 2,233 |
Guaranteed Minimum Accumulation Benefit 1 [member] | ||
Variable Annuity And Segregated Fund Guarantees Net Of Reinsurance [line items] | ||
Total gross of reinsurance, Guarantee value | 20,035 | 19,820 |
Total gross of reinsurance, Fund value | 19,945 | 20,226 |
Total gross of reinsurance, Net Amount at risk | 221 | 12 |
Living benefits [Member] | ||
Variable Annuity And Segregated Fund Guarantees Net Of Reinsurance [line items] | ||
Total gross of reinsurance, Guarantee value | 62,711 | 63,337 |
Total reinsured, Guarantee value | 26,999 | 3,788 |
Total gross of reinsurance, Fund value | 56,871 | 65,638 |
Total reinsured, Fund value | 23,691 | 3,102 |
Total gross of reinsurance, Net Amount at risk | 7,594 | 3,163 |
Total reinsured, Net Amount at risk | 4,860 | 771 |
Death benefits [Member] | ||
Variable Annuity And Segregated Fund Guarantees Net Of Reinsurance [line items] | ||
Total gross of reinsurance, Guarantee value | 10,465 | 11,105 |
Total reinsured, Guarantee value | 3,923 | 639 |
Total gross of reinsurance, Fund value | 15,779 | 22,920 |
Total reinsured, Fund value | 2,636 | 547 |
Total gross of reinsurance, Net Amount at risk | 2,156 | 618 |
Total reinsured, Net Amount at risk | $ 1,061 | $ 253 |
IFRS 7 Disclosures - Variable_2
IFRS 7 Disclosures - Variable Annuity and Segregated Fund Guarantees, Net of Reinsurance (Parenthetical) (Detail) $ in Millions, $ in Millions | Dec. 31, 2022 CAD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 CAD ($) | Dec. 31, 2021 USD ($) |
Variable Annuity And Segregated Fund Guarantees Net Of Reinsurance [line items] | ||||
Amount at risk net of reinsurance | $ 3,829 | $ 2,757 | ||
U.S. [member] | ||||
Variable Annuity And Segregated Fund Guarantees Net Of Reinsurance [line items] | ||||
Amount at risk net of reinsurance | $ 737 | $ 1,336 | ||
Canada [member] | ||||
Variable Annuity And Segregated Fund Guarantees Net Of Reinsurance [line items] | ||||
Amount at risk net of reinsurance | $ 2,154 | $ 886 | ||
Japan [Member] | ||||
Variable Annuity And Segregated Fund Guarantees Net Of Reinsurance [line items] | ||||
Amount at risk net of reinsurance | 275 | 53 | ||
Asia [member] | ||||
Variable Annuity And Segregated Fund Guarantees Net Of Reinsurance [line items] | ||||
Amount at risk net of reinsurance | $ 224 | $ 87 |
IFRS 7 Disclosures - Summary _2
IFRS 7 Disclosures - Summary of Account Balances by Investment Category (Detail) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Investment Categories For Variable Contracts With Guarantees [line items] | ||
Investments for variable contracts with guarantees | $ 92,085 | $ 111,037 |
Equity funds [Member] | ||
Investment Categories For Variable Contracts With Guarantees [line items] | ||
Investments for variable contracts with guarantees | 42,506 | 52,528 |
Balanced funds [Member] | ||
Investment Categories For Variable Contracts With Guarantees [line items] | ||
Investments for variable contracts with guarantees | 36,290 | 43,783 |
Bond funds [Member] | ||
Investment Categories For Variable Contracts With Guarantees [line items] | ||
Investments for variable contracts with guarantees | 9,336 | 10,965 |
Money market funds [Member] | ||
Investment Categories For Variable Contracts With Guarantees [line items] | ||
Investments for variable contracts with guarantees | 1,924 | 1,844 |
Other fixed interest rate investments [Member] | ||
Investment Categories For Variable Contracts With Guarantees [line items] | ||
Investments for variable contracts with guarantees | $ 2,029 | $ 1,917 |
IFRS 7 Disclosures - Schedule_3
IFRS 7 Disclosures - Schedule of Potential Immediate Impact on Net Income Attributed to Shareholders Arising from Changes to Public Equity Returns (Detail) - CAD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
-30% [member] | ||
Schedule of Potential Immediate Impact on Net Income Attributed to Shareholders by Changes to Public Equity Returns [line items] | ||
Variable annuity guarantees | $ (1,100) | $ (2,560) |
General fund equity investments | (1,520) | (1,430) |
Total underlying sensitivity before hedging | (2,620) | (3,990) |
Impact of macro and dynamic hedge assets | 850 | 2,060 |
Net potential impact on net income attributed to shareholders after impact of hedging | (1,770) | (1,930) |
-20% [member] | ||
Schedule of Potential Immediate Impact on Net Income Attributed to Shareholders by Changes to Public Equity Returns [line items] | ||
Variable annuity guarantees | (660) | (1,480) |
General fund equity investments | (1,010) | (890) |
Total underlying sensitivity before hedging | (1,670) | (2,370) |
Impact of macro and dynamic hedge assets | 530 | 1,190 |
Net potential impact on net income attributed to shareholders after impact of hedging | (1,140) | (1,180) |
-10% [member] | ||
Schedule of Potential Immediate Impact on Net Income Attributed to Shareholders by Changes to Public Equity Returns [line items] | ||
Variable annuity guarantees | (300) | (630) |
General fund equity investments | (500) | (440) |
Total underlying sensitivity before hedging | (800) | (1,070) |
Impact of macro and dynamic hedge assets | 240 | 500 |
Net potential impact on net income attributed to shareholders after impact of hedging | (560) | (570) |
+10% [member] | ||
Schedule of Potential Immediate Impact on Net Income Attributed to Shareholders by Changes to Public Equity Returns [line items] | ||
Variable annuity guarantees | 240 | 440 |
General fund equity investments | 420 | 450 |
Total underlying sensitivity before hedging | 660 | 890 |
Impact of macro and dynamic hedge assets | (230) | (470) |
Net potential impact on net income attributed to shareholders after impact of hedging | 430 | 420 |
20% change in market value equity. | ||
Schedule of Potential Immediate Impact on Net Income Attributed to Shareholders by Changes to Public Equity Returns [line items] | ||
Variable annuity guarantees | 450 | 750 |
General fund equity investments | 820 | 880 |
Total underlying sensitivity before hedging | 1,270 | 1,630 |
Impact of macro and dynamic hedge assets | (420) | (820) |
Net potential impact on net income attributed to shareholders after impact of hedging | 850 | 810 |
+30% [member] | ||
Schedule of Potential Immediate Impact on Net Income Attributed to Shareholders by Changes to Public Equity Returns [line items] | ||
Variable annuity guarantees | 610 | 960 |
General fund equity investments | 1,220 | 1,320 |
Total underlying sensitivity before hedging | 1,830 | 2,280 |
Impact of macro and dynamic hedge assets | (570) | (1,110) |
Net potential impact on net income attributed to shareholders after impact of hedging | $ 1,260 | $ 1,170 |
IFRS 7 Disclosures - Schedule_4
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, 2022 | Dec. 31, 2021 | |
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% | 5% |
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% | 10% |
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% | 20% |
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% | 30% |
IFRS 7 Disclosures - Summary _3
IFRS 7 Disclosures - Summary of Potential Impact to MLI's LICAT Total Ratio Resulting from Changes in Public Equity Market Values (Detail) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
-30% [member] | ||
Statement [line items] | ||
Impact on MLI's LICAT total ratio | (1) | (1) |
-20% [member] | ||
Statement [line items] | ||
Impact on MLI's LICAT total ratio | (1) | |
20% [member] | ||
Statement [line items] | ||
Impact on MLI's LICAT total ratio | 1 | 1 |
30% [member] | ||
Statement [line items] | ||
Impact on MLI's LICAT total ratio | 1 |
IFRS 7 Disclosures - Summary _4
IFRS 7 Disclosures - Summary of Potential Impact to MLI's LICAT Total Ratio Resulting from Changes in Public Equity Market Values (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Summary Of Detailed Information About Potential Impact To MliS Licat Total Ratio Resulting From Changes In Public Equity Market Values [Abstract] | ||
Interval percentage of which impact of rebalancing equity hedges for dynamically hedged variable annuity guarantee best estimate liabilities | 5% | 5% |
IFRS 7 Disclosures - Summary _5
IFRS 7 Disclosures - Summary of Potential Impact on Net Income Attributed to Shareholders and MLI's LICAT Ratio of an Immediate Parallel Change in Interest Rates (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
-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 Corporate and Other segment | $ (100) | $ (200) |
From fair value changes in AFS fixed income assets held in the Corporate and Other segment, if realized | 1,500 | 2,100 |
+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 Corporate and Other segment | 100 | |
From fair value changes in AFS fixed income assets held in the Corporate and Other segment, if realized | $ (1,400) | $ (1,900) |
IFRS 7 Disclosures - Summary _6
IFRS 7 Disclosures - Summary of Potential Impact on Net Income Attributed to Shareholders Arising from Changes to Spreads (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
+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 | $ 0 | $ 500 |
-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 | (100) | (600) |
-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 | (2,900) | (3,300) |
-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) | (1,400) |
-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 | (1,600) | (1,900) |
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 | 3,200 |
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 | 1,400 |
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 | $ 1,800 |
IFRS 7 Disclosures - Summary _7
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, 2022 | Dec. 31, 2021 | |
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 |