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Significant Accounting Policies (Tables) | 12 Months Ended
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Dec. 31, 2021
Corporate Information And Statement Of IFRS Compliance [Abstract] |
Schedule of significant estimates and judgments | Significant estimates and judgments have been made in the following areas and are discussed as noted:
Insurance contract and investment contract assumptions and measurement |  | Note 1 Insurance Contract Liabilities and Investment Contract Liabilities Note 10 Insurance Contract Liabilities and Investment Contract Liabilities
Determination of fair value |  | Note 1 Basis of Consolidation Note 1 Determination of Fair Value Note 3 Acquisitions and Other Note 5 Total Invested Assets and Related Net Investment Income
Impairment of financial instruments |  | Note 1 Financial Assets Excluding Derivative Financial Instruments Note 6 Financial Instrument Risk Management
Income taxes |  | Note 1 Income Taxes Note 20 Income Taxes
Pension plans |  | Note 1 Pension Plans and Other Post-Retirement Benefits Note 25 Pension Plans and Other Post-Retirement Benefits
Goodwill and intangible assets on acquisition and impairment |  | Note 1 Goodwill Note 1 Intangible Assets Note 3 Acquisitions and Other Note 9 Goodwill and Intangible Assets
Determination of control for purpose of consolidation |  | Note 1 Basis of Consolidation Note 16 Interests in Other Entities
Share-based payments |  | Note 19 Share-Based Payments
Summary of financial assets | The following table summarizes the financial assets included in our Consolidated Statements of Financial Position and the asset classifications applicable to these assets:
Cash, cash equivalents and short-term securities | FVTPL
Debt securities | FVTPL and AFS
Equity securities | FVTPL and AFS
Mortgages and loans | Loans and receivables
Other invested assets | FVTPL and AFS
Policy loans | Loans and receivables
The carrying values and fair values of our financial assets are shown in the following table:
As at |  | December 31, 2021 |  | December 31, 2020
|  | Carrying value |  | Fair value |  | Carrying value |  | Fair value
Assets |  |  |  |  |  |  |  |
Cash, cash equivalents and short-term securities |  | $ | 12,278 |  |  | $ | 12,278 |  |  | $ | 13,527 |  |  | $ | 13,527 |
Debt securities - fair value through profit or loss |  | 75,998 |  |  | 75,998 |  |  | 77,834 |  |  | 77,834 |
Debt securities - available-for-sale(1) |  | 12,729 |  |  | 12,729 |  |  | 11,255 |  |  | 11,255 |
Equity securities - fair value through profit or loss |  | 7,538 |  |  | 7,538 |  |  | 6,369 |  |  | 6,369 |
Equity securities - available-for-sale |  | 1,575 |  |  | 1,575 |  |  | 262 |  |  | 262 |
Mortgages and loans(1) |  | 51,692 |  |  | 55,756 |  |  | 49,946 |  |  | 56,231 |
Derivative assets |  | 1,583 |  |  | 1,583 |  |  | 2,160 |  |  | 2,160 |
Other invested assets - fair value through profit or loss(2) |  | 4,435 |  |  | 4,435 |  |  | 3,339 |  |  | 3,339 |
Other invested assets - available-for-sale(2) |  | 781 |  |  | 781 |  |  | 828 |  |  | 828 |
Other invested assets - Collateralized Loan Obligations |  | 1,865 |  |  | 1,855 |  |  | — |  |  | — |
Policy loans |  | 3,261 |  |  | 3,261 |  |  | 3,265 |  |  | 3,265 |
Total financial assets(3) |  | $ | 173,735 |  |  | $ | 177,789 |  |  | $ | 168,785 |  |  | $ | 175,070 |
(1) As at December 31, 2021, the fair value of invested assets that have contractual cash flows that qualify as SPPI include $12,604 of Debt securities - AFS ($11,159 as at December 31, 2020), $51,249 of Mortgages and loans supporting insurance contract liabilities ($51,480 as at December 31, 2020), and $4,499 of Mortgages and loans not supporting insurance contract liabilities ($4,741 as at December 31, 2020). (2) Other invested assets (FVTPL and AFS) include our investments in segregated funds, mutual funds and limited partnerships. (3) Invested assets on our Consolidated Statements of Financial Position of $184,522 ($177,912 as at December 31, 2020) includes Total financial assets in this table, Investment properties of $9,109 ($7,516 as at December 31, 2020), Other invested assets - non-financial assets of $1,678 ($1,611 as at December 31, 2020). The following table provides a reconciliation of the beginning and ending balances for assets and liabilities that are categorized in Level 3:
For the years ended | Debt securities - fair value through profit or loss | Debt securities - available-for-sale | Equity securities - fair value through profit or loss | Equity securities - available-for-sale | Other invested assets | Investment properties | Total invested assets measured at fair value | Investments for account of segregated fund holders | Total assets measured at fair value
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 225 |  |  | $ | 67 |  |  | $ | 181 |  |  | $ | 47 |  |  | $ | 2,645 |  |  | $ | 7,516 |  |  | $ | 10,681 |  |  | $ | 550 |  |  | $ | 11,231 |
Included in net income(1)(2)(3) |  | (6) |  |  | — |  |  | 10 |  |  | 5 |  |  | 392 |  |  | 1,032 |  |  | 1,433 |  |  | 23 |  |  | 1,456 |
Included in OCI(2) |  | — |  |  | (1) |  |  | — |  |  | 33 |  |  | 13 |  |  | — |  |  | 45 |  |  | — |  |  | 45 |
Purchases |  | 29 |  |  | 5 |  |  | 8 |  |  | 15 |  |  | 1,074 |  |  | 764 |  |  | 1,895 |  |  | 65 |  |  | 1,960 |
Sales / Payments |  | (9) |  |  | (13) |  |  | (25) |  |  | (26) |  |  | (469) |  |  | (197) |  |  | (739) |  |  | (9) |  |  | (748) |
Settlements |  | (15) |  |  | (3) |  |  | (5) |  |  | — |  |  | — |  |  | — |  |  | (23) |  |  | (1) |  |  | (24) |
Transfers (out) of Level 3(4) |  | (57) |  |  | (10) |  |  | (73) |  |  | — |  |  | — |  |  | — |  |  | (140) |  |  | — |  |  | (140) |
Foreign currency translation(5) |  | (5) |  |  | (2) |  |  | — |  |  | — |  |  | (5) |  |  | (6) |  |  | (18) |  |  | (17) |  |  | (35) |
Ending balance |  | $ | 162 |  |  | $ | 43 |  |  | $ | 96 |  |  | $ | 74 |  |  | $ | 3,650 |  |  | $ | 9,109 |  |  | $ | 13,134 |  |  | $ | 611 |  |  | $ | 13,745 |
Gains (losses) included in earnings relating to instruments still held at the reporting date(1) |  | $ | (4) |  |  | $ | — |  |  | $ | 11 |  |  | $ | 5 |  |  | $ | 382 |  |  | $ | 1,038 |  |  | $ | 1,432 |  |  | $ | 27 |  |  | $ | 1,459 |
December 31, 2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 248 |  |  | $ | 50 |  |  | $ | 188 |  |  | $ | 35 |  |  | $ | 2,445 |  |  | $ | 7,306 |  |  | $ | 10,272 |  |  | $ | 549 |  |  | $ | 10,821 |
Included in net income(1)(2)(3) |  | 11 |  |  | — |  |  | — |  |  | — |  |  | (87) |  |  | (63) |  |  | (139) |  |  | (22) |  |  | (161) |
Included in OCI(2) |  | — |  |  | 2 |  |  | — |  |  | — |  |  | 19 |  |  | — |  |  | 21 |  |  | — |  |  | 21 |
Purchases |  | 67 |  |  | 15 |  |  | 11 |  |  | 46 |  |  | 594 |  |  | 620 |  |  | 1,353 |  |  | 30 |  |  | 1,383 |
Sales / Payments |  | (10) |  |  | — |  |  | (2) |  |  | (33) |  |  | (304) |  |  | (325) |  |  | (674) |  |  | (14) |  |  | (688) |
Settlements |  | (9) |  |  | (2) |  |  | (15) |  |  | — |  |  | — |  |  | — |  |  | (26) |  |  | (1) |  |  | (27) |
Transfers into Level 3(4) |  | 3 |  |  | 2 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 5 |  |  | 1 |  |  | 6 |
Transfers (out) of Level 3(4) |  | (88) |  |  | (1) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (89) |  |  | (1) |  |  | (90) |
Foreign currency translation(5) |  | 3 |  |  | 1 |  |  | (1) |  |  | (1) |  |  | (22) |  |  | (22) |  |  | (42) |  |  | 8 |  |  | (34) |
Ending balance |  | $ | 225 |  |  | $ | 67 |  |  | $ | 181 |  |  | $ | 47 |  |  | $ | 2,645 |  |  | $ | 7,516 |  |  | $ | 10,681 |  |  | $ | 550 |  |  | $ | 11,231 |
Gains (losses) included in earnings relating to instruments still held at the reporting date(1) |  | $ | 2 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (68) |  |  | $ | 13 |  |  | $ | (53) |  |  | $ | (23) |  |  | $ | (76) |
(1) Included in Net investment income (loss) for Total invested assets measured at fair value in our Consolidated Statements of Operation. (2) Total gains and losses in net income (loss) and OCI are calculated assuming transfers into or out of Level 3 occur at the beginning of the period. For an asset or liability that transfers into Level 3 during the reporting period, the entire change in fair value for the period is included in the table above. For transfers out of Level 3 during the reporting period, the change in fair value for the period is excluded from the table above. (3) Investment properties included in net income is comprised of fair value changes on investment properties of $1,070 ($19 in 2020), net of amortization of leasing commissions and tenant inducements of $38 ($82 in 2020). As at December 31, 2020, we have used assumptions that reflect known changes in the property values including changes in expected future cash flows. (4) Transfers into Level 3 occur when the inputs used to price the assets and liabilities lack observable market data, and as a result, no longer meet the Level 1 or 2 definitions at the reporting date. Transfers out of Level 3 occur when the pricing inputs become more transparent and satisfy the Level 1 or 2 criteria and are primarily the result of observable market data being available at the reporting date, thus removing the requirement to rely on inputs that lack observability. (5) Foreign currency translation relates to the foreign exchange impact of translating Level 3 assets and liabilities of foreign subsidiaries from their functional currencies to Canadian dollars. Cash, cash equivalents and short-term securities presented in our Consolidated Statements of Financial Position and Net cash, cash equivalents and short-term securities presented in our Consolidated Statements of Cash Flows consist of the following:
As at December 31, |  |  |  |  |  | 2021 |  | 2020
Cash |  |  |  |  |  |  |  | $ | 2,297 |  |  | $ | 2,498 |
Cash equivalents |  |  |  |  |  |  |  | 5,529 |  |  | 8,156 |
Short-term securities |  |  |  |  |  |  |  | 4,452 |  |  | 2,873 |
Cash, cash equivalents and short-term securities |  |  |  |  |  |  |  | 12,278 |  |  | 13,527 |
Less: Bank overdraft, recorded in Other liabilities |  |  |  |  |  |  |  | 133 |  |  | 6 |
Net cash, cash equivalents and short-term securities |  |  |  |  |  |  |  | $ | 12,145 |  |  | $ | 13,521 |
The carrying value of debt securities by geographic location is shown in the following table. The geographic location is based on the country of the creditor's parent.
As at December 31, | 2021 | 2020
| Fair value through profit or loss | Available- for-sale | Total debt securities | Fair value through profit or loss | Available- for-sale | Total debt securities
Canada |  | $ | 33,028 |  |  | $ | 5,135 |  |  | $ | 38,163 |  |  | $ | 34,005 |  |  | $ | 4,685 |  |  | $ | 38,690 |
United States |  | 26,678 |  |  | 4,552 |  |  | 31,230 |  |  | 27,183 |  |  | 3,984 |  |  | 31,167 |
United Kingdom |  | 4,196 |  |  | 562 |  |  | 4,758 |  |  | 4,592 |  |  | 487 |  |  | 5,079 |
Other |  | 12,096 |  |  | 2,480 |  |  | 14,576 |  |  | 12,054 |  |  | 2,099 |  |  | 14,153 |
Total debt securities |  | $ | 75,998 |  |  | $ | 12,729 |  |  | $ | 88,727 |  |  | $ | 77,834 |  |  | $ | 11,255 |  |  | $ | 89,089 |
The carrying value of debt securities by issuer and industry sector is shown in the following table:
As at December 31, | 2021 | 2020
| Fair value through profit or loss | Available- for-sale | Total debt securities | Fair value through profit or loss | Available- for-sale | Total debt securities
Debt securities issued or guaranteed by: |  |  |  |  |  |  |  |  |  |  |  |
Canadian federal government |  | $ | 4,798 |  |  | $ | 2,303 |  |  | $ | 7,101 |  |  | $ | 4,560 |  |  | $ | 1,929 |  |  | $ | 6,489 |
Canadian provincial and municipal government |  | 15,930 |  |  | 1,149 |  |  | 17,079 |  |  | 16,909 |  |  | 1,333 |  |  | 18,242 |
U.S. government and agency |  | 1,642 |  |  | 771 |  |  | 2,413 |  |  | 1,678 |  |  | 797 |  |  | 2,475 |
Other foreign government |  | 4,754 |  |  | 757 |  |  | 5,511 |  |  | 5,281 |  |  | 823 |  |  | 6,104 |
Total government issued or guaranteed debt securities |  | 27,124 |  |  | 4,980 |  |  | 32,104 |  |  | 28,428 |  |  | 4,882 |  |  | 33,310 |
Corporate debt securities by industry sector: |  |  |  |  |  |  |  |  |  |  |  |
Financials |  | 10,258 |  |  | 1,690 |  |  | 11,948 |  |  | 10,644 |  |  | 1,212 |  |  | 11,856 |
Utilities |  | 7,414 |  |  | 778 |  |  | 8,192 |  |  | 7,561 |  |  | 682 |  |  | 8,243 |
Industrials |  | 5,791 |  |  | 805 |  |  | 6,596 |  |  | 5,659 |  |  | 567 |  |  | 6,226 |
Energy |  | 3,992 |  |  | 287 |  |  | 4,279 |  |  | 4,452 |  |  | 350 |  |  | 4,802 |
Communication services |  | 3,534 |  |  | 352 |  |  | 3,886 |  |  | 3,644 |  |  | 322 |  |  | 3,966 |
Real estate |  | 2,334 |  |  | 354 |  |  | 2,688 |  |  | 2,438 |  |  | 329 |  |  | 2,767 |
Health care |  | 2,081 |  |  | 346 |  |  | 2,427 |  |  | 1,986 |  |  | 186 |  |  | 2,172 |
Consumer staples |  | 2,047 |  |  | 231 |  |  | 2,278 |  |  | 1,893 |  |  | 158 |  |  | 2,051 |
Consumer discretionary |  | 1,814 |  |  | 306 |  |  | 2,120 |  |  | 1,606 |  |  | 165 |  |  | 1,771 |
Information technology |  | 1,426 |  |  | 209 |  |  | 1,635 |  |  | 1,308 |  |  | 187 |  |  | 1,495 |
Materials |  | 1,361 |  |  | 156 |  |  | 1,517 |  |  | 1,473 |  |  | 152 |  |  | 1,625 |
Total corporate debt securities |  | 42,052 |  |  | 5,514 |  |  | 47,566 |  |  | 42,664 |  |  | 4,310 |  |  | 46,974 |
Asset-backed securities |  | 6,822 |  |  | 2,235 |  |  | 9,057 |  |  | 6,742 |  |  | 2,063 |  |  | 8,805 |
Total debt securities |  | $ | 75,998 |  |  | $ | 12,729 |  |  | $ | 88,727 |  |  | $ | 77,834 |  |  | $ | 11,255 |  |  | $ | 89,089 |
The carrying value of mortgages and loans by geographic location and type is shown in the following tables. The geographic location for mortgages is based on location of property, while for corporate loans it is based on the country of the creditor's parent.
As at December 31, 2021 | Canada | United States | United Kingdom |  | Other |  | Total
Mortgages: |  |  |  |  |  |  |  |  |  |
Retail |  | $ | 1,765 |  |  | $ | 1,623 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,388 |
Office |  | 1,892 |  |  | 1,639 |  |  | — |  |  | — |  |  | 3,531 |
Multi-family residential |  | 4,138 |  |  | 1,589 |  |  | — |  |  | — |  |  | 5,727 |
Industrial and land |  | 1,094 |  |  | 941 |  |  | — |  |  | — |  |  | 2,035 |
Other |  | 680 |  |  | 115 |  |  | 9 |  |  | — |  |  | 804 |
Total mortgages(1) |  | $ | 9,569 |  |  | $ | 5,907 |  |  | $ | 9 |  |  | $ | — |  |  | $ | 15,485 |
Loans |  | $ | 12,885 |  |  | $ | 14,596 |  |  | $ | 4,111 |  |  | $ | 4,615 |  |  | $ | 36,207 |
Total mortgages and loans | $ | 22,454 |  |  | $ | 20,503 |  |  | $ | 4,120 |  |  | $ | 4,615 |  |  | $ | 51,692 |
(1) $4,218 of mortgages in Canada are insured by the CMHC.
As at December 31, 2020 | Canada | United States | United Kingdom |  | Other |  | Total
Mortgages: |  |  |  |  |  |  |  |  |  |
Retail |  | $ | 1,963 |  |  | $ | 1,747 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,710 |
Office |  | 1,635 |  |  | 1,846 |  |  | — |  |  | — |  |  | 3,481 |
Multi-family residential |  | 3,950 |  |  | 1,681 |  |  | — |  |  | — |  |  | 5,631 |
Industrial and land |  | 996 |  |  | 949 |  |  | — |  |  | — |  |  | 1,945 |
Other |  | 575 |  |  | 86 |  |  | — |  |  | — |  |  | 661 |
Total mortgages(1) |  | $ | 9,119 |  |  | $ | 6,309 |  |  | $ | — |  |  | $ | — |  |  | $ | 15,428 |
Loans |  | $ | 13,107 |  |  | $ | 13,773 |  |  | $ | 3,798 |  |  | $ | 3,840 |  |  | $ | 34,518 |
Total mortgages and loans | $ | 22,226 |  |  | $ | 20,082 |  |  | $ | 3,798 |  |  | $ | 3,840 |  |  | $ | 49,946 |
(1) $4,008 of mortgages in Canada are insured by the CMHC. The contractual maturities of debt securities are shown in the following table. Actual maturities could differ from contractual maturities because of the borrower's right to call or extend or right to prepay obligations, with or without prepayment penalties.
As at December 31, | 2021 | 2020
| Fair value through profit or loss | Available- for-sale | Total debt securities | Fair value through profit or loss | Available- for-sale | Total debt securities
Due in 1 year or less |  | $ | 2,505 |  |  | $ | 1,373 |  |  | $ | 3,878 |  |  | $ | 3,048 |  |  | $ | 721 |  |  | $ | 3,769 |
Due in years 2-5 |  | 10,475 |  |  | 4,971 |  |  | 15,446 |  |  | 10,526 |  |  | 3,549 |  |  | 14,075 |
Due in years 6-10 |  | 11,328 |  |  | 3,350 |  |  | 14,678 |  |  | 10,459 |  |  | 3,540 |  |  | 13,999 |
Due after 10 years |  | 51,690 |  |  | 3,035 |  |  | 54,725 |  |  | 53,801 |  |  | 3,445 |  |  | 57,246 |
Total debt securities |  | $ | 75,998 |  |  | $ | 12,729 |  |  | $ | 88,727 |  |  | $ | 77,834 |  |  | $ | 11,255 |  |  | $ | 89,089 |
The carrying value of mortgages by scheduled maturity, before allowances for losses, is as follows:
As at December 31, | 2021 |  | 2020 |
Due in 1 year or less |  | $ | 884 |  |  | $ | 1,230 |
Due in years 2-5 |  | 6,172 |  |  | 5,465 |
Due in years 6-10 |  | 5,979 |  |  | 5,884 |
Due after 10 years |  | 2,530 |  |  | 2,915 |
Total mortgages |  | $ | 15,565 |  |  | $ | 15,494 |
The carrying value of loans by scheduled maturity, before allowances for losses, is as follows:
As at December 31, | 2021 | 2020 |
Due in 1 year or less |  | $ | 1,772 |  |  | $ | 2,192 |
Due in years 2-5 |  | 7,108 |  |  | 6,954 |
Due in years 6-10 |  | 7,393 |  |  | 6,670 |
Due after 10 years |  | 19,986 |  |  | 18,751 |
Total loans |  | $ | 36,259 |  |  | $ | 34,567 |

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