

11. Reinsurance

Reinsurance is used primarily to limit exposure to large losses. We have a retention policy that requires that such arrangements be placed with well-established, highly-rated reinsurers. Coverage is well-diversified and controls are in place to manage exposure to reinsurance counterparties. While reinsurance arrangements provide for the recovery of claims arising from the liabilities ceded, we retain primary responsibility to the policyholders.

11.A Reinsurance Assets

Reinsurance assets are measured using the amounts and assumptions associated with the underlying insurance contracts and in accordance with the terms of each reinsurance contract. Reinsurance assets are comprised of the following:



As at December 31, 2019	Canada				U.S.			Asia		Corporate⁽¹⁾			Total
Individual participating life		$	35			$	10	$	322		$	—	$	367
Individual non-participating life and health		(377		)		913		48			20		604
Group life and health		384				1,881		2			—		2,267
Individual annuities		—				—		—			26		26
Group annuities		131				—		—			—		131
Reinsurance assets before other policy assets		173				2,804		372			46		3,395
Add: Other policy assets⁽²⁾		73				456		57			43		629
Total Reinsurance assets		$	246			$	3,260	$	429		$	89	$	4,024

⁽¹⁾Primarily business from the UK and run-off reinsurance operations. Includes UK business of $20 for Individual non-participating life and health, and $26 for Individual annuities.

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



As at December 31, 2018	Canada				U.S.			Asia			Corporate⁽¹⁾			Total
Individual participating life		$	20			$	10		$	180		$	—	$	210
Individual non-participating life and health		(205		)		1,076			36			21		928
Group life and health		358				1,848			2			—		2,208
Individual annuities		—				—			—			186		186
Group annuities		121				—			—			—		121
Reinsurance assets before other policy assets		294				2,934			218			207		3,653
Add: Other policy assets⁽²⁾		80				307			42			59		488
Total Reinsurance assets		$	374			$	3,241		$	260		$	266	$	4,141

⁽¹⁾Primarily business from the UK and run-off reinsurance operations. Includes UK business of $21 for Individual non-participating life and health, and $47 for Individual annuities.

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

There was no impairment of Reinsurance assets in 2019 or 2018. Changes in Reinsurance assets are included in Note 10.A.iv.

11.B Reinsurance (Expenses) Recoveries

Reinsurance (expenses) recoveries are comprised of the following:



For the years ended December 31,	2019			2018
Recovered claims and benefits		$	1,955		$	1,839
Commissions		70			74
Reserve adjustments		26			25
Operating expenses and other		80			83
Reinsurance (expenses) recoveries		$	2,131		$	2,021

11.C Reinsurance Gains or Losses

We did not enter into reinsurance arrangements that resulted in profits on inception in 2019 or 2018.