Segmented Information

12 Months Ended

Dec. 31, 2023

4. Segmented Information

We have five reportable business segments: Canada, U.S., Asset Management, Asia, and Corporate. These business segments operate in the financial services industry and reflect our management structure and internal financial reporting. Asset Management includes the results of our MFS and SLC Management business units. Corporate includes the results of our UK business unit and our Corporate Support operations, which include run-off reinsurance operations, as well as investment income, expenses, capital and other items not allocated to our other business groups. Effective the second quarter of 2023, we completed the sale of our UK Business unit. We have retained our economic interest in the annuity business via a reinsurance arrangement that will be reported under the U.S. reportable segment on a prospective basis.

Revenues from our business segments are derived primarily from life and health insurance, investment management and annuities, and mutual funds. Revenues not attributed to the strategic business units are derived primarily from Corporate investments and earnings on capital. Transactions between segments are executed and priced at an arm's-length basis in a manner similar to transactions with third parties.

The expenses in each business segment may include costs or services directly incurred or provided on their behalf at the enterprise level. For other costs not directly attributable to one of our business segments, we use a management reporting framework that uses assumptions, judgments, and methodologies for allocating overhead costs and indirect expenses to our business segments.

Intersegment transactions consist primarily of internal financing agreements which are measured at fair values prevailing when the arrangements are negotiated. Intersegment investment income consists primarily of interest paid by U.S. to Corporate. Intersegment fee income is primarily asset management fees paid by our business segments to Asset Management. SLC Management collects fee income and incurs the operational expenses associated with the management of the general fund assets. Intersegment transactions are eliminated in the Consolidation adjustments column in the following tables.

Management considers its external Clients to be individuals and corporations. We are not reliant on any individual Client as none is individually significant to our operations.


For the years ended	Canada			U.S.		Asset Management			Asia		Corporate			Consolidation adjustments			Total
December 31, 2023
Insurance revenue:
Annuities		$	1,916	$	222		$	—	$	22		$	98		$	—		$	2,258
Life insurance		2,165		1,999			—		1,210			(18)			—			5,356
Health insurance		4,084		9,500			—		153			5			—			13,742
Total Insurance revenue		8,165		11,721			—		1,385			85			—			21,356
Net investment income (loss)		7,514		1,321			187		2,347			312			(95)			11,586
Fee income		1,483		458			5,953		300			141			(503)			7,832
Total revenue(1)		17,162		13,500			6,140		4,032			538			(598)			40,774
Expenses:
Insurance service expenses		6,855		10,522			—		972			101			—			18,450
Reinsurance contract held net (income) expenses		164		(100)			—		7			(2)			—			69
Insurance finance (income) expenses from insurance contracts issued		6,415		1,250			—		1,897			113			—			9,675
Reinsurance finance (income) expenses		2		(57)			—		(4)			—			—			(59)
(Decrease) increase in investment contract liabilities		326		—			—		5			—			—			331
Other income		(102)		—			—		—			(67)			—			(169)
Interest expenses		160		107			158		74			149			(96)			552
Operating expenses and commissions		1,751		1,031			4,480		489			746			(502)			7,995
Total expenses(1)		15,571		12,753			4,638		3,440			1,040			(598)			36,844
Income (loss) before income taxes		1,591		747			1,502		592			(502)			—			3,930
Less: Income tax expense (benefit)		275		148			309		(10)			(261)			—			461
Total net income (loss)		1,316		599			1,193		602			(241)			—			3,469
Less:
Net income (loss) allocated to the participating account		64		23			—		91			—			—			178
Net income (loss) attributable to non-controlling interests		—		—			126		—			—			—			126
Shareholders' net income (loss)		$	1,252	$	576		$	1,067	$	511		$	(241)		$	—		$	3,165
December 31, 2022
(restated, see Note 2)
Insurance revenue:
Annuities		$	1,833	$	—		$	—	$	29		$	382		$	—		$	2,244
Life insurance		2,125		1,811			—		1,212			72			—			5,220
Health insurance		4,153		7,193			—		82			10			—			11,438
Total Insurance revenue		8,111		9,004			—		1,323			464			—			18,902
Net investment income (loss)		(10,698)		(3,840)			37		(4,739)			(1,246)			(94)			(20,580)
Fee income		1,395		307			5,736		340			104			(435)			7,447
Total revenue(1)		(1,192)		5,471			5,773		(3,076)			(678)			(529)			5,769
Expenses:
Insurance service expenses		6,920		8,200			—		993			343			—			16,456
Reinsurance contract held net (income) expenses		262		(91)			—		(25)			7			—			153
Insurance finance (income) expenses from insurance contracts issued		(11,752)		(4,744)			—		(4,813)			(1,286)			—			(22,595)
Reinsurance finance (income) expenses		(97)		538			—		(3)			2			—			440
(Decrease) increase in investment contract liabilities		160		—			—		(8)			—			—			152

Interest expenses		201		73			96		65			95			(85)			445
Operating expenses and commissions		1,512		795			4,126		451			652			(444)			7,092
Total expenses(1)		(2,794)		4,771			4,222		(3,340)			(187)			(529)			2,143
Income (loss) before income taxes		1,602		700			1,551		264			(491)			—			3,626
Less: Income tax expense (benefit)		335		141			347		24			(301)			—			546
Total net income (loss)		1,267		559			1,204		240			(190)			—			3,080
Less:
Net income (loss) allocated to the participating account		26		27			—		30			—			—			83
Net income (loss) attributable to non-controlling interests		—		—			56		—			—			—			56
Shareholders' net income (loss)		$	1,241	$	532		$	1,148	$	210		$	(190)		$	—		$	2,941

(1) Total revenue and total expenses exclude Investment result for insurance contracts for account of segregated fund holders.

Assets and liabilities by segment are as follows:


	Canada			U.S.		Asset Management			Asia		Corporate			Consolidation adjustments			Total
As at December 31, 2023
Total general fund assets		$	114,838	$	34,820		$	9,979	$	37,405		$	8,804		$	(1,057)	$	204,789
Investments for account of segregated fund holders		$	120,963	$	414		$	—	$	7,075		$	—		$	—	$	128,452
Total general fund liabilities		$	107,629	$	28,860		$	7,434	$	31,866		$	5,857		$	(1,057)	$	180,589
As at December 31, 2022
(restated, see Note 2)
Total general fund assets		$	107,407	$	30,717		$	11,576	$	35,798		$	13,135		$	(317)	$	198,316
Investments for account of segregated fund holders		$	109,058	$	421		$	—	$	7,111		$	8,702		$	—	$	125,292
Total general fund liabilities		$	99,632	$	24,464		$	9,477	$	30,441		$	11,732		$	(317)	$	175,429

The revenue and assets of our business segments differ from geographic segments primarily due to the geographic segmenting of our Asset Management and Corporate segments.

The following table shows revenue by country for Asset Management and Corporate:


	Asset Management					Corporate
For the years ended December 31,	2023			2022		2023			2022
			(restated, see Note 2)					(restated, see Note 2)
Revenue:
United States	$	5,438		$	5,136	$	92		$	31
United Kingdom	262			288		259			(800)
Canada	327			304		57			(10)
Other countries	113			45		130			101
Total revenue	$	6,140		$	5,773	$	538		$	(678)

The following table shows total assets by country for Asset Management and Corporate:


	Asset Management					Corporate
As at December 31,	2023			2022		2023			2022
			(restated, see Note 2)					(restated, see Note 2)
Total general fund assets:
United States	$	8,118		$	9,822	$	4,973		$	1,644
United Kingdom	935			940		—			4,722
Canada	658			566		3,643			6,592
Other countries	268			248		188			177
Total general fund assets	$	9,979		$	11,576	$	8,804		$	13,135
Investment for account of segregated fund holders:
United Kingdom	$	—		$	—	$	—		$	8,702
Total investment for account of segregated fund holders	$	—		$	—	$	—		$	8,702