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Total Invested Assets and Related Net Investment Income (Tables)

12 Months Ended

Dec. 31, 2023


			IFRS 9
Cash, cash equivalents and short-term securities			FVTPL
Debt securities			FVTPL, FVOCI
Equity securities			FVTPL, FVOCI
Mortgages and loans			FVTPL, FVOCI, Amortized cost
Other financial invested assets			FVTPL

The carrying values and fair values of our financial assets and liabilities are shown in the following table:


As at	December 31, 2023					December 31, 2022
						(restated, see Note 2)
	Carrying value			Fair value		Carrying value			Fair value
Financial assets
Cash, cash equivalents and short-term securities – FVTPL		$	13,173	$	13,173		$	11,219	$	11,219
Debt securities – FVTPL(1)		61,180		61,180			59,357		59,357
Debt securities – FVOCI		14,313		14,313			16,545		16,545
Equity securities – FVTPL		7,070		7,070			7,148		7,148
Equity securities – FVOCI		68		68
Mortgages and loans – FVTPL(2)		50,552		50,552			47,208		47,208
Mortgages and loans – FVOCI		1,948		1,948			1,804		1,804
Mortgages and loans – Amortized cost(3)		2,100		2,006			2,241		2,106
Derivative assets – FVTPL		2,183		2,183			2,095		2,095
Other financial invested assets (excluding CLOs) – FVTPL(4)		6,883		6,883			6,538		6,538
Other financial invested assets (CLOs) – FVTPL(7)		3,478		3,478			2,880		2,880
Total(5)		$	162,948	$	162,854		$	157,035	$	156,900
Financial liabilities
Investment contract liabilities – Amortized cost		$	11,672	$	11,672		$	10,728	$	10,728
Obligations for securities borrowing – FVTPL		223		223			73		73
Derivative liabilities – FVTPL		1,311		1,311			2,351		2,351
Other financial liabilities – Amortized cost(6)		2,449		2,348			1,996		1,852
Other financial liabilities (CLOs) – FVTPL(7)		3,247		3,247			2,816		2,688
Total(8)		$	18,902	$	18,801		$	17,964	$	17,692

(1) Includes primarily debt securities that are designated at FVTPL.

(2) Includes primarily mortgages and loans that are designated at FVTPL.

(3) Certain mortgages and loans are carried at amortized cost. The fair value of these mortgages and loans, for disclosure purposes, is determined based on the methodology and assumptions described in Note 5.A.iii. As at December 31, 2023, $1,994 and $12 are categorized in Level 2 and Level 3, respectively, of the fair value hierarchy described in this Note (December 31, 2022 — $2,105 and $1, respectively).

(4) Other financial invested assets include our investments in segregated funds, mutual funds, and limited partnerships.

(5) Invested assets on our Consolidated Statements of Financial Position of $174,328 (December 31, 2022 — $168,789) includes Total financial assets in this table, Investment properties of $9,723 (December 31, 2022 — $10,102), and Other non-financial invested assets of $1,657 (December 31, 2022 — $1,652). Other non-financial invested assets consists of investment in associates, subsidiaries and joint ventures which are not consolidated.

(6) Amount reflects the obligations to purchase outstanding shares of certain SLC Management subsidiaries.

(7) See below for details on CLOs.

(8) Total financial liabilities excluding Senior debentures (Note 12) and Subordinated debt (Note 13).

The following table provides a reconciliation of the beginning and ending balances for assets that are categorized in Level 3:


For the years ended	Debt securities at FVTPL			Debt securities at FVOCI			Equity securities at FVTPL			Equity Securities at FVOCI			Mortgages & loans at FVTPL			Mortgages & loans at FVOCI			Other financial invested assets at FVTPL			Investment properties at FVTPL			Total invested assets measured at fair value				Investments for account of segregated fund holders			Total assets measured at fair value
December 31, 2023
Beginning balance		$	394		$	52		$	101		$	70		$	2,054		$	16		$	5,555		$	10,102			$	18,344		$	631		$	18,975

Included in net income(1)(2)(3)		9			—			13			—			119			(8)			(169)			(520)				(556)			(15)			(571)
Included in OCI(2)		—			3			—			—			—			1			—			—				4			—			4
Purchases / Issuances		211			153			18			—			293			8			984			391				2,058			173			2,231
Sales / Payments		(8)			(6)			(19)			(1)			(75)			(17)			(261)			(220)				(607)			(444)			(1,051)
Settlements		(6)			(6)			—			—			(7)			—			—			—				(19)			(1)			(20)
Transfers into Level 3(4)		8			—			—			—			382			—			—			—				390			—			390
Transfers (out) of Level 3(4)		(200)			(8)			—			—			(710)			—			—			—				(918)			—			(918)
Foreign currency translation(5)		(6)			(1)			—			(1)			—			—			(35)			(30)				(73)			(3)			(76)
Ending balance		$	402		$	187		$	113		$	68		$	2,056		$	—		$	6,074		$	9,723			$	18,623		$	341		$	18,964
Unrealized gains (losses) included in earnings relating to instruments still held(1)		$	5		$	—		$	9		$	—		$	112		$	(8)		$	(170)		$	(522)			$	(574)		$	(18)		$	(592)
December 31, 2022
(restated, see Note 2)
Beginning balance		$	152		$	53		$	170					$	12,251		$	17		$	3,650		$	9,109			$	25,402		$	611		$	26,013

Included in net income(1)(2)(3)		(23)			1			5						(3,086)			(15)			334			625				(2,159)			(32)			(2,191)
Included in OCI(2)		—			(12)			—						—			—			—			—				(12)			—			(12)
Purchases / Issuances		310			86			7						1,782			—			1,843			664				4,692			78			4,770
Sales / Payments		—			(2)			(16)						(506)			—			(313)			(430)				(1,267)			(6)			(1,273)
Settlements		(1)			—			—						—			—			(47)			—				(48)			(1)			(49)
Transfers into Level 3(4)		—			—			—						25			14			—			—				39			—			39
Transfers (out) of Level 3(4)(6)		(49)			(74)			—						(8,572)			—			—			—				(8,695)			—			(8,695)
Foreign currency translation(5)		5			—			5						160			—			88			134				392			(19)			373
Ending balance		$	394		$	52		$	171					$	2,054		$	16		$	5,555		$	10,102	$	—	$	18,344		$	631		$	18,975
Unrealized gains (losses) included in earnings relating to instruments still held(1)		$	(23)		$	—		$	—					$	(3,089)		$	(15)		$	295		$	612			$	(2,220)		$	(20)		$	(2,240)

(1) Included in Net investment income (loss) in our Consolidated Statements of Operations for Total invested assets measured at fair value.

(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 $(486) for the year ended December 31, 2023, (December 31, 2022 — $667), net of amortization of leasing commissions and tenant inducements of $34 for the year ended December 31, 2023, (December 31, 2022 — $42). As at December 31, 2023, 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.

(6) Mortgages and loans were classified as amortized cost under IAS 39 for the year ended December 31, 2021. On application of the classification overlay on January 1, 2022, mortgages and loans are measured at FVTPL or FVOCI. During the fourth quarter of 2022, we had a change to our fair value methodology for mortgages and loans that constitutes a change in estimate as at December 31, 2022. Levelling changed from Level 3 to Level 2 as a result of applying fair value enhancements in valuing mortgages and loans supporting insurance liabilities. See Mortgages and loans section above for further details.

Fair value and foreign currency changes on assets and liabilities presented in our Consolidated Statements of Operations consist of the following:



For the year ended December 31, 2022
	(restated, see Note 2)
Fair value change:
Cash, cash equivalents and short-term securities		$	4
Debt securities		(15,846)
Equity securities		(1,167)
Mortgages and loans		(8,909)
Derivative investments		(2,148)
Other financial invested assets		129
Other liabilities – obligations for securities borrowing		15
Total change in fair value of assets and liabilities recognized in income		(27,922)
Fair value changes on investment properties		667
Foreign exchange gains (losses)(1)		573
Realized gains (losses) on property and equipment(2)		100
Fair value and foreign currency changes on assets and liabilities(3)		$	(26,582)

(1) Primarily arises from the translation of foreign currency denominated FVOCI monetary assets and mortgage and loans. Any offsetting amounts arising from foreign currency derivatives are included in the fair value change on derivative investments.

(2) In June 2022, we sold and leased back our Wellesley office in the U.S. The transaction qualified as a sale and operating lease and as a result, we recognized a pre-tax gain of $100 for the year ended December 31, 2022.

(3) Net investment income (loss) on our Consolidated Statements of Operations of $(20,580) for the year ended December 31, 2022 includes Fair value and foreign currency changes on assets and liabilities in this table of $(26,582) and Total interest and other investment income of $6,002.

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,	2023		2022

Cash	$	2,001	$	3,068
Cash equivalents	9,169		6,310
Short-term securities	2,003		1,841
Cash, cash equivalents and short-term securities	13,173		11,219
Less: Bank overdraft, recorded in Other liabilities	—		6
Net cash, cash equivalents and short-term securities	$	13,173	$	11,213

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,	2023									2022
										(restated, see Note 2)
	FVTPL			FVOCI			Total debt securities			FVTPL			FVOCI			Total debt securities
Canada		$	30,180		$	4,339		$	34,519		$	26,613		$	6,064		$	32,677
United States		20,111			6,266			26,377			20,274			6,196			26,470
United Kingdom		1,224			517			1,741			2,760			737			3,497
Other		9,665			3,191			12,856			9,710			3,548			13,258
Total debt securities		$	61,180		$	14,313		$	75,493		$	59,357		$	16,545		$	75,902

The carrying value of debt securities by issuer and industry sector is shown in the following table:


As at December 31,	2023									2022
										(restated, see Note 2)
	FVTPL			FVOCI			Total debt securities			FVTPL			FVOCI			Total debt securities
Debt securities issued or guaranteed by:
Canadian federal government		$	5,161		$	849		$	6,010		$	3,696		$	1,915		$	5,611
Canadian provincial and municipal government		13,694			557			14,251			12,612			1,053			13,665
U.S. government and agency		712			658			1,370			759			778			1,537
Other foreign government		3,329			473			3,802			3,755			869			4,624
Total government issued or guaranteed debt securities		22,896			2,537			25,433			20,822			4,615			25,437
Corporate debt securities by industry sector:
Financials		8,171			2,889			11,060			8,232			3,123			11,355
Utilities		6,244			815			7,059			5,884			792			6,676
Industrials		4,510			979			5,489			4,533			1,042			5,575
Energy		2,793			479			3,272			2,978			364			3,342
Communication services		2,727			422			3,149			2,861			468			3,329
Real estate		1,987			538			2,525			1,865			641			2,506
Health care		1,625			413			2,038			1,618			416			2,034
Consumer staples		1,490			315			1,805			1,634			344			1,978
Consumer discretionary		950			776			1,726			1,085			751			1,836
Information technology		730			174			904			1,095			289			1,384
Materials		922			180			1,102			1,077			218			1,295
Total corporate debt securities		32,149			7,980			40,129			32,862			8,448			41,310
Asset-backed securities		6,135			3,796			9,931			5,673			3,482			9,155
Total debt securities		$	61,180		$	14,313		$	75,493		$	59,357		$	16,545		$	75,902

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, 2023	Canada			United States			United Kingdom			Other		Total
Mortgages:
Retail		$	1,376		$	1,182		$	—	$	—	$	2,558
Office		1,500			1,254			—		—		2,754
Multi-family residential		3,838			1,001			—		—		4,839
Industrial		1,839			1,115			—		—		2,954
Other		824			57			159		—		1,040
Total mortgages(1)		$	9,377		$	4,609		$	159	$	—	$	14,145
Loans		$	12,924		$	17,086		$	4,089	$	6,356	$	40,455
Total mortgages and loans		$	22,301		$	21,695		$	4,248	$	6,356	$	54,600

(1) $4,023 of mortgages in Canada are insured by the CMHC.


As at December 31, 2022 (restated, see Note 2)	Canada			United States			United Kingdom			Other		Total
Mortgages:
Retail		$	1,455		$	1,364		$	—	$	—	$	2,819
Office		1,603			1,411			—		—		3,014
Multi-family residential		3,869			1,145			—		—		5,014
Industrial		1,669			996			—		—		2,665
Other		767			113			29		—		909
Total mortgages(1)		$	9,363		$	5,029		$	29	$	—	$	14,421
Loans		$	12,433		$	15,468		$	3,979	$	4,952	$	36,832
Total mortgages and loans		$	21,796		$	20,497		$	4,008	$	4,952	$	51,253

(1) $4,035 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,	2023									2022
										(restated, see Note 2)
	FVTPL			FVOCI			Total debt securities			FVTPL			FVOCI			Total debt securities
Due in 1 year or less		$	1,697		$	3,079		$	4,776		$	1,629		$	2,131		$	3,760
Due in years 2-5		8,763			6,272			15,035			8,983			7,908			16,891
Due in years 6-10		9,513			2,199			11,712			9,488			3,370			12,858
Due after 10 years		41,207			2,763			43,970			39,257			3,136			42,393
Total debt securities		$	61,180		$	14,313		$	75,493		$	59,357		$	16,545		$	75,902

The carrying value of mortgages by scheduled maturity, before the allowance for ECL, is as follows:


As at December 31,	2023												2022
	FVTPL			FVOCI			Amortized cost			Total			FVTPL			FVOCI			Amortized cost			Total
Due in 1 year or less		$	852		$	58		$	171		$	1,081		$	1,009		$	251		$	78	$	1,338
Due in years 2-5		5,605			222			1,129			6,956			4,631			266			1,152		6,049
Due in years 6-10		3,510			8			495			4,013			4,068			11			711		4,790
Due after 10 years		2,093			3			—			2,096			2,244			—			—		2,244
Total mortgages		$	12,060		$	291		$	1,795		$	14,146		$	11,952		$	528		$	1,941	$	14,421

The carrying value of loans by scheduled maturity, before the allowance for ECL, is as follows:


As at December 31,	2023												2022
	FVTPL			FVOCI			Amortized cost			Total			FVTPL			FVOCI			Amortized cost			Total
Due in 1 year or less		$	2,285		$	257		$	126		$	2,668		$	2,464		$	178		$	156	$	2,798
Due in years 2-5		6,768			966			163			7,897			6,028			789			125		6,942
Due in years 6-10		9,177			401			27			9,605			7,797			288			19		8,104
Due after 10 years		20,262			33			—			20,295			18,967			21			—		18,988
Total loans		$	38,492		$	1,657		$	316		$	40,465		$	35,256		$	1,276		$	300	$	36,832

Summary of financial liabilities

The carrying values and fair values of our financial assets and liabilities are shown in the following table:


As at	December 31, 2023					December 31, 2022
						(restated, see Note 2)
	Carrying value			Fair value		Carrying value			Fair value
Financial assets
Cash, cash equivalents and short-term securities – FVTPL		$	13,173	$	13,173		$	11,219	$	11,219
Debt securities – FVTPL(1)		61,180		61,180			59,357		59,357
Debt securities – FVOCI		14,313		14,313			16,545		16,545
Equity securities – FVTPL		7,070		7,070			7,148		7,148
Equity securities – FVOCI		68		68
Mortgages and loans – FVTPL(2)		50,552		50,552			47,208		47,208
Mortgages and loans – FVOCI		1,948		1,948			1,804		1,804
Mortgages and loans – Amortized cost(3)		2,100		2,006			2,241		2,106
Derivative assets – FVTPL		2,183		2,183			2,095		2,095
Other financial invested assets (excluding CLOs) – FVTPL(4)		6,883		6,883			6,538		6,538
Other financial invested assets (CLOs) – FVTPL(7)		3,478		3,478			2,880		2,880
Total(5)		$	162,948	$	162,854		$	157,035	$	156,900
Financial liabilities
Investment contract liabilities – Amortized cost		$	11,672	$	11,672		$	10,728	$	10,728
Obligations for securities borrowing – FVTPL		223		223			73		73
Derivative liabilities – FVTPL		1,311		1,311			2,351		2,351
Other financial liabilities – Amortized cost(6)		2,449		2,348			1,996		1,852
Other financial liabilities (CLOs) – FVTPL(7)		3,247		3,247			2,816		2,688
Total(8)		$	18,902	$	18,801		$	17,964	$	17,692

(1) Includes primarily debt securities that are designated at FVTPL.

(2) Includes primarily mortgages and loans that are designated at FVTPL.

(4) Other financial invested assets include our investments in segregated funds, mutual funds, and limited partnerships.

(6) Amount reflects the obligations to purchase outstanding shares of certain SLC Management subsidiaries.

(7) See below for details on CLOs.

(8) Total financial liabilities excluding Senior debentures (Note 12) and Subordinated debt (Note 13).

Schedule of liabilities carried at fair value

Our assets and liabilities that are carried at fair value on a recurring basis by hierarchy level are as follows:


As at	December 31, 2023									December 31, 2022
										(restated, see Note 2)
		Level 1		Level 2		Level 3		Total			Level 1		Level 2		Level 3		Total
Assets
Cash, cash equivalents and short-term securities – FVTPL		$	12,316	$	857	$	—	$	13,173		$	10,622	$	597	$	—	$	11,219
Debt securities – FVTPL		564		60,214		402		61,180			650		58,313		394		59,357
Debt securities – FVOCI		651		13,475		187		14,313			772		15,721		52		16,545
Equity securities – FVTPL		4,220		2,737		113		7,070			4,133		2,844		171		7,148
Equity securities – FVOCI		—		—		68		68
Mortgages and loans – FVTPL(1)		—		48,496		2,056		50,552			—		45,154		2,054		47,208
Mortgages and loans – FVOCI(1)		—		1,948		—		1,948			—		1,788		16		1,804
Derivative assets – FVTPL		23		2,160		—		2,183			37		2,058		—		2,095
Other financial invested assets (excluding CLOs) – FVTPL(2)		608		201		6,074		6,883			789		194		5,555		6,538
Other financial invested assets (CLOs) – FVTPL(3)		—		3,478		—		3,478			—		2,880		—		2,880
Investment properties – FVTPL		—		—		9,723		9,723			—		—		10,102		10,102

Total invested assets measured at fair value		$	18,382	$	133,566	$	18,623	$	170,571		$	17,003	$	129,549	$	18,344	$	164,896
Investments for account of segregated fund holders – FVTPL		16,614		111,497		341		128,452			23,933		100,728		631		125,292
Total assets measured at fair value		$	34,996	$	245,063	$	18,964	$	299,023		$	40,936	$	230,277	$	18,975	$	290,188
Liabilities
Obligations for securities borrowing – FVTPL		$	3	$	220	$	—	$	223		$	—	$	73	$	—	$	73
Derivative liabilities – FVTPL		10		1,301		—		1,311			10		2,341		—		2,351
Investment contract liabilities for account of segregated fund holders – FVTPL		—		—		109,411		109,411			—		—		102,153		102,153
Other financial liabilities (CLOs) – FVTPL(3)		—		3,247		—		3,247			—		2,688		—		2,688
Total liabilities measured at fair value		$	13	$	4,768	$	109,411	$	114,192		$	10	$	5,102	$	102,153	$	107,265

(1) Mortgages and loans were classified as amortized cost under IAS 39 for the year ended December 31, 2021. On application of the classification overlay on January 1, 2022, mortgages and loans are measured at FVTPL or FVOCI. During the fourth quarter of 2022, we had a change to our fair value methodology for mortgages and loans that constitutes a change in estimate as at December 31, 2022. Levelling changed from Level 3 to Level 2 as a result of applying fair value enhancements in valuing mortgages and loans supporting insurance liabilities. See Mortgages and loans section above for further details.

(2) Other financial invested assets (excluding CLOs) – FVTPL include our investments in segregated funds, mutual funds, and limited partnerships.

(3) For details on CLOs, refer to Note 5.A.i.

Fair value and foreign currency changes on assets and liabilities presented in our Consolidated Statements of Operations consist of the following:



For the year ended December 31, 2022
	(restated, see Note 2)
Fair value change:
Cash, cash equivalents and short-term securities		$	4
Debt securities		(15,846)
Equity securities		(1,167)
Mortgages and loans		(8,909)
Derivative investments		(2,148)
Other financial invested assets		129
Other liabilities – obligations for securities borrowing		15
Total change in fair value of assets and liabilities recognized in income		(27,922)
Fair value changes on investment properties		667
Foreign exchange gains (losses)(1)		573
Realized gains (losses) on property and equipment(2)		100
Fair value and foreign currency changes on assets and liabilities(3)		$	(26,582)

Schedule of assets carried at fair value

Our assets and liabilities that are carried at fair value on a recurring basis by hierarchy level are as follows:


As at	December 31, 2023									December 31, 2022
										(restated, see Note 2)
		Level 1		Level 2		Level 3		Total			Level 1		Level 2		Level 3		Total
Assets
Cash, cash equivalents and short-term securities – FVTPL		$	12,316	$	857	$	—	$	13,173		$	10,622	$	597	$	—	$	11,219
Debt securities – FVTPL		564		60,214		402		61,180			650		58,313		394		59,357
Debt securities – FVOCI		651		13,475		187		14,313			772		15,721		52		16,545
Equity securities – FVTPL		4,220		2,737		113		7,070			4,133		2,844		171		7,148
Equity securities – FVOCI		—		—		68		68
Mortgages and loans – FVTPL(1)		—		48,496		2,056		50,552			—		45,154		2,054		47,208
Mortgages and loans – FVOCI(1)		—		1,948		—		1,948			—		1,788		16		1,804
Derivative assets – FVTPL		23		2,160		—		2,183			37		2,058		—		2,095
Other financial invested assets (excluding CLOs) – FVTPL(2)		608		201		6,074		6,883			789		194		5,555		6,538
Other financial invested assets (CLOs) – FVTPL(3)		—		3,478		—		3,478			—		2,880		—		2,880
Investment properties – FVTPL		—		—		9,723		9,723			—		—		10,102		10,102

Total invested assets measured at fair value		$	18,382	$	133,566	$	18,623	$	170,571		$	17,003	$	129,549	$	18,344	$	164,896
Investments for account of segregated fund holders – FVTPL		16,614		111,497		341		128,452			23,933		100,728		631		125,292
Total assets measured at fair value		$	34,996	$	245,063	$	18,964	$	299,023		$	40,936	$	230,277	$	18,975	$	290,188
Liabilities
Obligations for securities borrowing – FVTPL		$	3	$	220	$	—	$	223		$	—	$	73	$	—	$	73
Derivative liabilities – FVTPL		10		1,301		—		1,311			10		2,341		—		2,351
Investment contract liabilities for account of segregated fund holders – FVTPL		—		—		109,411		109,411			—		—		102,153		102,153
Other financial liabilities (CLOs) – FVTPL(3)		—		3,247		—		3,247			—		2,688		—		2,688
Total liabilities measured at fair value		$	13	$	4,768	$	109,411	$	114,192		$	10	$	5,102	$	102,153	$	107,265

(2) Other financial invested assets (excluding CLOs) – FVTPL include our investments in segregated funds, mutual funds, and limited partnerships.

(3) For details on CLOs, refer to Note 5.A.i.

Debt securities at FVTPL consist of the following:


As at	December 31, 2023								December 31, 2022
									(restated, see Note 2)
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Canadian federal government	$	—	$	5,147	$	14	$	5,161	$	—	$	3,684	$	12	$	3,696
Canadian provincial and municipal government	—		13,694		—		13,694		—		12,612		—		12,612
U.S. government and agency	564		148		—		712		650		109		—		759
Other foreign government	—		3,329		—		3,329		—		3,755		—		3,755
Corporate	—		31,809		340		32,149		—		32,566		296		32,862
Asset-backed securities:
Commercial mortgage-backed securities	—		2,029		5		2,034		—		1,856		56		1,912
Residential mortgage-backed securities	—		2,335		—		2,335		—		2,323		—		2,323
Collateralized debt obligations	—		188		—		188		—		189		—		189
Other	—		1,535		43		1,578		—		1,219		30		1,249
Total debt securities at FVTPL	$	564	$	60,214	$	402	$	61,180	$	650	$	58,313	$	394	$	59,357

Debt securities at FVOCI consist of the following:


As at	December 31, 2023								December 31, 2022
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Canadian federal government	$	—	$	849	$	—	$	849	$	—	$	1,915	$	—	$	1,915
Canadian provincial and municipal government	—		557		—		557		—		1,053		—		1,053
U.S. government and agency	651		7		—		658		772		6		—		778
Other foreign government	—		462		11		473		—		858		11		869
Corporate	—		7,905		75		7,980		—		8,415		33		8,448
Asset-backed securities:
Commercial mortgage-backed securities	—		1,017		—		1,017		—		965		—		965
Residential mortgage-backed securities	—		944		—		944		—		722		—		722
Collateralized debt obligations	—		767		13		780		—		857		—		857
Other	—		967		88		1,055		—		930		8		938
Total debt securities at FVOCI	$	651	$	13,475	$	187	$	14,313	$	772	$	15,721	$	52	$	16,545

Mortgages and loans at FVTPL consist of the following:


As at	December 31, 2023								December 31, 2022
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Mortgages:
Retail	$	—	$	2,524	$	12	$	2,536	$	—	$	2,764	$	15	$	2,779
Office	—		2,717		—		2,717		—		2,958		—		2,958
Multi-family residential	—		2,986		—		2,986		—		2,915		—		2,915
Industrial	—		2,804		—		2,804		—		2,482		—		2,482
Other	—		1,017		—		1,017		—		818		—		818
Corporate loans	—		36,448		2,044		38,492		—		33,217		2,039		35,256
Total mortgages and loans at FVTPL	$	—	$	48,496	$	2,056	$	50,552	$	—	$	45,154	$	2,054	$	47,208

Mortgages and loans at FVOCI consist of the following:


As at	December 31, 2023								December 31, 2022
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Mortgages:
Retail	$	—	$	22	$	—	$	22	$	—	$	40	$	—	$	40
Office	—		37		—		37		—		51		—		51
Multi-family residential	—		83		—		83		—		197		—		197
Industrial	—		149		—		149		—		178		—		178
Other	—		—		—		—		—		62		—		62
Corporate loans	—		1,657		—		1,657		—		1,260		16		1,276
Total mortgages and loans at FVOCI	$	—	$	1,948	$	—	$	1,948	$	—	$	1,788	$	16	$	1,804

Schedule of interest and other investment income


For the year ended December 31, 2023	Financial Instruments at Amortized Cost			Financial Instruments at FVOCI			Financial Instruments at FVTPL			Total
Interest income (expense):
Cash, cash equivalents and short-term investments								$	473		$	473
Debt securities					563			2,663			3,226
Mortgages and loans		74			103			2,503			2,680
Derivative investments								69			69
Other financial invested assets					1			247			248
Other financial liabilities		(154)						(217)			(371)
Total interest income (expense)		(80)			667			5,738			6,325
Dividend & other investment income:
Equity securities					—			212			212
Other financial invested assets					—			226			226
Total dividend & other investment income					—			438			438
Net realized and unrealized gains (losses):
Cash, cash equivalents and short-term investments								—			—
Debt securities					463			2,555			3,018
Equity securities					(1)			397			396
Mortgages and loans					40			1,573			1,613
Derivative investments								933			933
Other financial invested assets					160			(249)			(89)
Other financial liabilities								25			25
Total net realized and unrealized gains (losses)					662			5,234			5,896
Provision for credit losses		(2)			(12)			—			(14)
Net investment income (loss) from financial instruments		$	(82)		$	1,317		$	11,410		$	12,645
Net Investment income (loss) from non-financial instruments:
Investment properties rental income											$	649
Investment properties expenses											(270)
Investment expenses and taxes											(283)
Fair value changes on investment properties											(486)
Other investment income (loss)											49
Foreign exchange gains (losses)											(126)
Net investment income (loss) from non-financial instruments											$	(467)
Total Net investment income (loss)											$	12,178
Net investment income (loss) recognized in income											$	11,586
Net investment income (loss) recognized in OCI											$	592

Interest and other investment income presented in our Consolidated Statements of Operations consist of the following:



For the year ended December 31, 2022
	(restated, see Note 2)
Interest income:
Cash, cash equivalents and short-term securities		$	166
Debt securities – FVTPL		2,596
Debt securities – FVOCI		341
Mortgages and loans		2,234
Derivative investments		115
Total interest income		5,452
Equity securities		244
Investment properties rental income(1)		593
Investment properties expenses		(248)
Other income		218
Investment expenses and taxes		(257)
Total interest and other investment income		$	6,002

(1) Includes operating lease rental income from investment properties.

Net investment result excluding result for account of segregated fund holders consists of the following:


For the year ended December 31, 2023	Insurance contracts Issued		Reinsurance contracts held		Total insurance			Non-insurance (all other)			Total
Net investment income (loss):
Net investment income (loss) recognized in net income						$	10,211		$	1,375	$	11,586
Net investment income (loss) recognized in OCI						171			421		592
Total net investment income (loss)						10,382			1,796		12,178
Total insurance finance income (expenses) recognized in net income:
Effect of time value of money (Interest on carrying value) including interest on policy loans and interest on amounts on deposit		(4,484)		156		(4,328)					(4,328)
Impact of change in discount rate on fulfilment cash flows excluding where measured at locked-in rates and effect of changes in financial risk		(1,985)		(91)		(2,076)					(2,076)

Application of risk mitigation option(1)		104		—		104					104
Changes in fair value of underlying items for contracts with direct participation features (excluding segregated funds)(2)		(3,425)		—		(3,425)					(3,425)

Foreign exchange gains (losses)		(22)		(1)		(23)					(23)
Other		137		(5)		132					132
Total insurance finance income (expenses) recognized in income		(9,675)		59		(9,616)					(9,616)
Decrease (increase) in investment contract liabilities									(331)		(331)
Net investment result						$	766		$	1,465	$	2,231
Net investment result recognized in net income						$	595		$	1,044	$	1,639
Net investment result recognized in OCI						$	171		$	421	$	592


For the year ended December 31, 2022	Insurance contracts Issued		Reinsurance contracts held		Total insurance			Non-insurance (all other)			Total
Net investment income (loss) (restated, see Note 2):
Net investment income (loss) recognized in net income						$	(21,118)		$	538	$	(20,580)
Net investment income (loss) recognized in OCI						(481)			(1,449)		(1,930)
Total net investment income (loss) (restated, see Note 2)						(21,599)			(911)		(22,510)
Total insurance finance income (expenses) recognized in net income:
Effect of time value of money (Interest on carrying value) including interest on policy loans and interest on amounts on deposit		(2,205)		13		(2,192)					(2,192)
Impact of change in discount rate on fulfilment cash flows excluding where measured at locked-in rates and effect of changes in financial risk		18,618		(455)		18,163					18,163

Application of risk mitigation option(1)		688		—		688					688
Changes in fair value of underlying items for contracts with direct participation features (excluding segregated funds)(2)		5,487		—		5,487					5,487

Foreign exchange gains (losses)		(2)		7		5					5
Other		9		(5)		4					4
Total insurance finance income (expenses) recognized in income		22,595		(440)		22,155					22,155
Decrease (increase) in investment contract liabilities									(152)		(152)
Net investment result						$	556		$	(1,063)	$	(507)
Net investment result recognized in net income						$	1,037		$	386	$	1,423
Net investment result recognized in OCI						$	(481)		$	(1,449)	$	(1,930)

(1) Changes in our share of the fair value of underlying items and FCF arising from changes in the effect of financial risk that are mitigated by the use of derivatives and non derivative financial instruments are recognized in income rather than adjusting the CSM. These amounts are offset by changes in the fair value of the derivatives and non-derivative financial instruments included in Investment income. The amount above would have resulted in an adjustment to the CSM if it was recorded to the CSM.

(2) These amounts are offset by changes in fair value of the underlying items included in Net investment income (loss).

Schedule of fair values of derivative assets and liabilities by type of hedge

The following table describes the fair value of derivatives held for risk management purposes by type of risk exposure.


As at December 31,	2023					2022
	Assets		Liabilities			Assets		Liabilities
Interest rate contracts:
Designated in fair value hedges	$	—		$	—	$	—	$	—
Designed in cash flow hedges	—			—		—		—
Derivative investments	418			(667)		704		(1,138)
Total interest rate derivatives	$	418		$	(667)	$	704	$	(1,138)
Foreign exchange contracts:
Designated in fair value hedges	$	—		$	—	$	—	$	(1)
Designed in cash flow hedges	2			(19)		9		(20)
Derivative investments	1,674			(614)		1,291		(1,182)
Total foreign exchange derivatives	$	1,676		$	(633)	$	1,300	$	(1,203)
Other contracts:
Designated in fair value hedges	$	—		$	—	$	—	$	—
Designed in cash flow hedges	17			—		9		—
Derivative investments	72			(11)		82		(10)
Total other contracts	$	89		$	(11)	$	91	$	(10)
Total derivative contracts	$	2,183		$	(1,311)	$	2,095	$	(2,351)

Assets and liabilities designated as hedged items as at December 31, 2022 are provided below:


As at December 31, 2022
		Carrying amounts		Accumulated amount of fair value adjustments on the hedged item included in the carrying amount
Hedging risks	Hedged item		Assets	Liabilities	Assets		Liabilities
Interest rate risk	Fixed rate assets(1)				$	—	$	—	$	—	$	—
Foreign exchange risk	Fixed rate assets(1)				$	37	$	—	$	—	$	—

(1) Fixed rate assets includes debt securities, mortgages and loans (if applicable).

Schedule of hedge ineffectiveness

Effectiveness of hedging relationships are provided below:


As at December 31, 2022
Hedging risks	Hedged item	Changes in value of the hedged item	Change in fair value of hedging instrument	Hedge ineffectiveness recognized in net investment income (loss)
Interest rate risk	Fixed rate assets(1)			$	—	$	—	$	—
Foreign exchange risk	Fixed rate assets(1)			$	(2)	$	3	$	1

(1) Fixed rate assets includes debt securities, mortgages and loans (if applicable).

The amounts relating to items designated as hedging instruments were as follows:


For the year ended December 31,		2023						2022
Hedging risks	Hedged Item	Accumulated other comprehensive income from active hedges			Accumulated other comprehensive income from discontinued hedges			Accumulated other comprehensive income from active hedges			Accumulated other comprehensive income from discontinued hedges
Foreign exchange risk(1)	Variable rate liabilities(2)		$	9		$	—		$	(6)		$	—
Equity risk	Share-based payment(3)		$	(10)		$	—		$	(12)		$	—

(1) Cross-currency swap may be used to hedge foreign exchange risk, or a combination of interest rate risk and foreign exchange risk in a single hedge relationship. Cross-currency swaps in both type of hedge relationships are disclosed in the above risk category (foreign exchange risk).

(2) Hedged items include other financial liabilities.

(3) Hedged items includes other liabilities.

The amounts relating to the effectiveness of hedging relationships were as follows:


Hedging risks	Hedged Item	Gains (losses) on hedged items for ineffectiveness measurement			Gain (losses) on hedging instruments for ineffectiveness measurement			Hedge ineffectiveness			Unrealized gains (losses) included in Other comprehensive income as the effective portion of the hedging instrument			Losses (gains) reclassified to Net interest income
For the year ended December 31, 2023
Foreign exchange risk(1)	Variable rate liabilities(2)		$	18		$	(18)		$	—		$	(17)		$	37
Equity risk	Share-based payment(3)		$	(6)		$	17		$	11		$	7		$	(3)
For the year ended December 31, 2022
Foreign exchange risk(1)	Variable rate liabilities(2)		$	10		$	(10)		$	—		$	44		$	(51)
Equity risk	Share-based payment(3)		$	(6)		$	7		$	1		$	(8)		$	(2)

(2) Hedged items include other financial liabilities, that are floating rate obligations.

(3) Hedged items includes other liabilities, representing share-based payment awards.

Reconciliation of components of equity

The following table provides a reconciliation by risk category of the accumulated other comprehensive income and analysis of OCI items resulting from hedge accounting:


For the years ended December 31,		2023							2022
	Unrealized gains (losses) on cash flow hedges			Unrealized foreign currency translation gains (losses), net of hedging activities				Unrealized gains (losses) on cash flow hedges			Unrealized foreign currency translation gains (losses), net of hedging activities
Cash flow hedges
Balance, January 1		$	(18)		$	1,689	(1)		$	(7)		$	953
Effective portion of changes in fair value:
Foreign currency risk		(17)			(285)				44			670
Equity price risk		7			—				(8)			—
Net amount reclassified to income (loss):
Foreign currency risk		37			(49)				(51)			—
Equity price risk		(3)			—				(2)			—
Related tax		(7)			(5)				6			7
Balance, December 31		$	(1)		$	1,350			$	(18)		$	1,630

(1) Restated, see Note 2.

26. Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss), net of taxes, are as follows:




For the years ended December 31,	2023																			2022
																				(restated, see Note 2)
	Balance, beginning of year (restated, see Note 2)		Transition adjustment			Balance, beginning of year (adjusted)			Other comprehensive income (loss)			Other			Balance, end of year					Balance, beginning of year			Transition adjustment			Balance, beginning of year (adjusted)			Other comprehensive income (loss)			Balance, end of year
Items that may be reclassified subsequently to income:
Unrealized foreign currency translation gains (losses), net of hedging activities	$	1,630		$	59		$	1,689		$	(339)		$	—		$	1,350				$	953		$	—		$	953		$	677	$	1,630
Unrealized gains (losses) on FVOCI assets	(1,333)			494			(839)			485			—					(354)			266			(116)			150			(1,483)		(1,333)
Unrealized gains (losses) on cash flow hedges	(18)			—			(18)			17			—					(1)			(7)			—			(7)			(11)		(18)
Share of other comprehensive income (loss) in joint ventures and associates	(107)			—			(107)			(44)			—					(151)			(47)			—			(47)			(60)		(107)
Items that will not be reclassified subsequently to income:
Remeasurement of defined benefit plans	(149)			—			(149)			(105)			37		(1)			(217)			(320)			—			(320)			171		(149)
Share of other comprehensive income (loss) in joint ventures and associates	(5)			—			(5)			7			—					2			(2)			—			(2)			(3)		(5)
Revaluation surplus on transfers to investment properties	143			—			143			—			—					143			145			—			145			(2)		143
Total	$	161		$	553		$	714		$	21		$	37				$	772		$	988		$	(116)		$	872		$	(711)	$	161
Total attributable to:
Participating account	$	(3)		$	—		$	(3)		$	9		$	—				$	6		$	2		$	—		$	2		$	(5)	$	(3)
Non-controlling interests	4			—			4			(3)			—					1			—			—			—			4		4
Shareholders	160			553			713			15			37					765			986			(116)			870			(710)		160
Total	$	161		$	553		$	714		$	21		$	37				$	772		$	988		$	(116)		$	872		$	(711)	$	161

(1) During 2023, the Company transferred cumulative remeasurement losses of $37 from Accumulated other comprehensive income (loss) to Retained earnings due to the sale of Sun Life UK.