Insurance Contract Liabilities and Investment Contract Liabilities (Tables)

12 Months Ended

Dec. 31, 2019

Disclosure of insurance contract liabilities

The following tables show the total assets supporting liabilities for the product lines shown (including insurance contract and investment contract liabilities) and assets supporting equity and other:



As at December 31, 2019	Debt securities			Equity securities			Mortgages and loans			Investment properties			Other		Total
Individual participating life		$	22,533		$	2,899		$	8,372		$	4,941	$	4,754	$	43,499
Individual non-participating life and health		21,301			1,418			14,145			1,790		9,353		48,007
Group life and health		6,858			72			9,301			—		2,897		19,128
Individual annuities		11,711			48			6,065			—		793		18,617
Group annuities		7,323			37			7,261			—		697		15,318
Equity and other		11,880			313			3,078			575		19,814		35,660
Total assets		$	81,606		$	4,787		$	48,222		$	7,306	$	38,308	$	180,229

As at December 31, 2018	Debt securities			Equity securities			Mortgages and loans			Investment properties			Other		Total
Individual participating life		$	19,624		$	2,557		$	7,978		$	4,736	$	4,397	$	39,292
Individual non-participating life and health		18,720			1,303			14,398			1,638		9,058		45,117
Group life and health		6,271			70			9,217			—		2,882		18,440
Individual annuities		11,918			49			5,769			—		959		18,695
Group annuities		6,448			35			6,298			—		822		13,603
Equity and other		11,462			620			3,162			783		17,591		33,618
Total assets		$	74,443		$	4,634		$	46,822		$	7,157	$	35,709	$	168,765

Changes in Insurance contract liabilities and Reinsurance assets are as follows:



For the years ended December 31,		2019											2018
	Insurance contract liabilities				Reinsurance assets				Net			Insurance contract liabilities				Reinsurance assets				Net
Balances, before Other policy liabilities and assets as at January 1,		$	114,902			$	3,653		$	111,249			$	111,091			$	3,503		$	107,588
Change in balances on in-force policies		7,632				268			7,364				(3,094		)		(129		)	(2,965		)
Balances arising from new policies		4,098				136			3,962				3,780				128			3,652
Method and assumption changes		(363		)		(376		)	13				(374		)		(96		)	(278		)
Increase (decrease) in Insurance contract liabilities and Reinsurance assets		11,367				28			11,339				312				(97		)	409
Other⁽¹⁾		(123		)		(123		)	—				—				—			—
Foreign exchange rate movements		(2,252		)		(163		)	(2,089		)		3,499				247			3,252
Balances before Other policy liabilities and assets		123,894				3,395			120,499				114,902				3,653			111,249
Other policy liabilities and assets		7,290				629			6,661				7,021				488			6,533
Total Insurance contract liabilities and Reinsurance assets, December 31		$	131,184			$	4,024		$	127,160			$	121,923			$	4,141		$	117,782


⁽¹⁾	Termination of reinsurance contracts.

Insurance contract liabilities consist of the following:



As at December 31, 2019	Canada			U.S.			Asia			Corporate⁽¹⁾			Total
Individual participating life		$	23,526		$	5,611	$	8,497			$	987	$	38,621
Individual non-participating life and health		13,527			13,832		12,188				386		39,933
Group life and health		10,493			5,541		39				14		16,087
Individual annuities		9,529			24		(17		)		5,335		14,871
Group annuities		14,276			7		99				—		14,382
Insurance contract liabilities before other policy liabilities		71,351			25,015		20,806				6,722		123,894
Add: Other policy liabilities⁽²⁾		2,959			1,724		2,401				206		7,290
Total insurance contract liabilities		$	74,310		$	26,739	$	23,207			$	6,928	$	131,184

⁽¹⁾Primarily business from the UK and run-off reinsurance operations. Includes UK business of $893 for Individual participating life, $238 for Individual non-participating life and health, $5,107 for Individual annuities, and $156 for Other policy liabilities.

⁽²⁾Consists of amounts on deposit, policy benefits payable, provisions for unreported claims, provisions for policyholder dividends, and provisions for experience rating refunds.



As at December 31, 2018	Canada			U.S.		Asia			Corporate⁽¹⁾			Total
Individual participating life		$	21,095	$	5,785	$	6,651			$	1,076	$	34,607
Individual non-participating life and health		11,435		13,239		12,463				391		37,528
Group life and health		9,591		5,674		32				—		15,297
Individual annuities		9,267		25		(44		)		5,608		14,856
Group annuities		12,461		6		147				—		12,614
Insurance contract liabilities before other policy liabilities		63,849		24,729		19,249				7,075		114,902
Add: Other policy liabilities⁽²⁾		3,049		1,457		2,276				239		7,021
Total insurance contract liabilities		$	66,898	$	26,186	$	21,525			$	7,314	$	121,923


⁽¹⁾	Primarily business from the UK and run-off reinsurance operations. Includes UK business of $980 for Individual participating life, $240 for Individual non-participating life and health, $5,214 for Individual annuities, and $170 for Other policy liabilities.


⁽²⁾	Consists of amounts on deposit, policy benefits payable, provisions for unreported claims, provisions for policyholder dividends, and provisions for experience rating refunds.

Schedule of impacts of method and changes in assumptions on insurance contract liabilities

Impacts of method and assumption changes on Insurance contract liabilities, net of Reinsurance assets, are as follows:



For the year ended December 31, 2019	Net increase (decrease) before income taxes				Description
Mortality / Morbidity		$	(347	)	Updates to reflect mortality/morbidity experience in all jurisdictions. The largest items were favourable mortality impacts in the UK in Corporate and in Group Retirement Services in Canada.
Lapse and other policyholder behaviour		102			Updates to lapse and policyholder behaviour in all jurisdictions. The largest item was an unfavourable lapse update in International in Asia.
Expenses		6			Updates to reflect expense experience in all jurisdictions.
Investment returns		6			Updates to various investment-related assumptions across the Company, partially offset by updates to promulgated ultimate reinvestment rates.
Model enhancements and other		246			Various enhancements and methodology changes across all jurisdictions. The largest item was an unfavourable strengthening of reinsurance provisions in In-force Management in the U.S., partially offset by a favourable change to participating accounts in the UK in Corporate and the Philippines in Asia.
Total impact of method and assumption changes		$	13



For the year ended December 31, 2018	Net increase (decrease) before income taxes				Description
Mortality / Morbidity		$	(337	)	Updates to reflect mortality/morbidity experience in all jurisdictions. The largest items were favourable mortality in International in Asia, Group Retirement Services in Canada and the UK in Corporate.
Lapse and other policyholder behaviour		563			Updates to lapse and other policyholder behaviour in all jurisdictions. The largest items, which all had unfavourable impacts, were updated lapse assumptions in the U.S. and International in Asia.
Expenses		6			Updates to reflect expense experience in all jurisdictions including updates to Canada participating life insurance accounts.
Investment returns		(331		)	Updates to various investment-related assumptions across the Company including updates to Canada participating life insurance accounts.
Model enhancements and other		(179		)	Various enhancements and methodology changes across all jurisdictions. The largest items were a favourable change to the participating provisions for adverse deviation in Canada and the U.S., partially offset by a change in reinsurance provisions in the U.S.
Total impact of method and assumption changes		$	(278	)

Schedule of investment contract liabilities

Investment contract liabilities consist of the following:



As at December 31, 2019	Canada			Asia		Corporate			Total
Individual participating life		$	—	$	—		$	5	$	5
Individual non-participating life and health		—		258			2		260
Individual annuities		2,612		—			39		2,651
Group annuities		—		200			—		200
Total investment contract liabilities		$	2,612	$	458		$	46	$	3,116

For the year ended December 31, 2019, Investment contract liabilities of $3,116 are comprised of investment contracts with DPF of $502, investment contracts without DPF measured at amortized cost of $2,612, and for investment contracts without DPF measured at fair value of $2.



As at December 31, 2018	Canada			Asia		Corporate			Total
Individual participating life		$	—	$	—		$	6	$	6
Individual non-participating life and health		—		254			3		257
Individual annuities		2,646		—			43		2,689
Group annuities		—		212			—		212
Total investment contract liabilities		$	2,646	$	466		$	52	$	3,164

For the year ended December 31, 2018, Investment contract liabilities of $3,164 are comprised of investment contracts with DPF of $515, investment contracts without DPF measured at amortized cost of $2,646, and investment contracts without DPF measured at fair value of $3.

Schedule of reconciliation of changes in investment contract liabilities

Changes in investment contract liabilities without DPF are as follows:



For the years ended December 31,		2019								2018
	Measured at fair value				Measured at amortized cost				Measured at fair value			Measured at amortized cost
Balance as at January 1		$	3			$	2,646			$	3		$	2,517
Deposits		—				360				—			483
Interest		—				57				—			53
Withdrawals		—				(464		)		—			(420		)
Fees		—				(6		)		—			(8		)
Other		—				20				—			21
Foreign exchange rate movements		(1		)		(1		)		—			—
Balance as at December 31		$	2			$	2,612			$	3		$	2,646

Changes in investment contract liabilities with DPF are as follows:



For the years ended December 31,	2019				2018
Balance as at January 1		$	515			$	562
Change in liabilities on in-force		2				(84		)
Changes in assumptions or methodology		6				—
Foreign exchange rate movements		(21		)		37
Balance as at December 31		$	502			$	515

Disclosure of claims and benefits paid

Gross claims and benefits paid consist of the following:



For the years ended December 31,	2019		2018
Maturities and surrenders	$	2,956	$	2,609
Annuity payments	1,909		1,876
Death and disability benefits	4,246		3,948
Health benefits	7,222		6,421
Policyholder dividends and interest on claims and deposits	1,088		1,132
Total gross claims and benefits paid	$	17,421	$	15,986