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Insurance Contracts (Tables)
 12 Months Ended
Dec. 31, 2023
Insurance Contracts [Abstract]  
Schedule of Insurance Contract Assets and Liabilities
As at December 31, 2023CanadaU.S.AsiaCorporateTotal
Total contracts:
Insurance contract assets$— $90 $94 $— $184 
Insurance contract liabilities(1)
82,436 24,630 28,527 76 135,669 
Net insurance contract liabilities$82,436 $24,540 $28,433 $76 $135,485 
Reinsurance contract held assets1,557 4,083 154 — 5,794 
Reinsurance contract held liabilities1,432 — 191 — 1,623 
Net reinsurance contract held assets$125 $4,083 $(37)$— $4,171 
Contracts measured using the PAA:
Insurance contract assets$— $— $— $— $— 
Insurance contract liabilities12,446 4,791 27 — 17,264 
Net insurance contract liabilities — PAA
$12,446 $4,791 $27 $— $17,264 
Reinsurance contract held assets152 185 4 — 341 
Reinsurance contract held liabilities— — — — — 
Net reinsurance contract held assets — PAA
$152 $185 $4 $— $341 
Contracts not measured using the PAA:
Insurance contract assets$— $90 $94 $— $184 
Insurance contract liabilities(1)
69,990 19,839 28,500 76 118,405 
Net insurance contract liabilities — non-PAA
$69,990 $19,749 $28,406 $76 $118,221 
Reinsurance contract held assets1,405 3,898 150 — 5,453 
Reinsurance contract held liabilities1,432 — 191 — 1,623 
Net reinsurance contract held assets — non-PAA
$(27)$3,898 $(41)$— $3,830 

(1)    Includes liabilities of $(105) for segregated fund insurance contracts that are not backed by the related Investments for account of segregated fund holders.
As at December 31, 2022CanadaU.S.AsiaCorporateTotal
Total contracts:
Insurance contract assets$— $— $75 $— $75 
Insurance contract liabilities(1)
74,435 25,158 27,437 4,264 131,294 
Net insurance contract liabilities$74,435 $25,158 $27,362 $4,264 $131,219 
Reinsurance contract held assets1,504 4,104 441 66 6,115 
Reinsurance contract held liabilities1,369 — 234 — 1,603 
Net reinsurance contract held assets$135 $4,104 $207 $66 $4,512 
Contracts measured using the PAA:
Insurance contract assets$— $— $— $— $— 
Insurance contract liabilities11,780 5,067 76 — 16,923 
Net insurance contract liabilities — PAA
$11,780 $5,067 $76 $— $16,923 
Reinsurance contract held assets218 222 1 — 441 
Reinsurance contract held liabilities41 — — — 41 
Net reinsurance contract held assets — PAA
$177 $222 $1 $— $400 
Contracts not measured using the PAA:
Insurance contract assets$— $— $75 $— $75 
Insurance contract liabilities(1)
62,655 20,091 27,361 4,264 114,371 
Net insurance contract liabilities — non-PAA
$62,655 $20,091 $27,286 $4,264 $114,296 
Reinsurance contract held assets1,286 3,882 440 66 5,674 
Reinsurance contract held liabilities1,328 — 234 — 1,562 
Net reinsurance contract held assets — non-PAA
$(42)$3,882 $206 $66 $4,112 

(1)    Includes liabilities of $(154) for segregated fund insurance contracts that are not backed by the related Investments for account of segregated fund holders.
As at January 1, 2022CanadaU.S.AsiaCorporateTotal
Total contracts:
Insurance contract assets$— $20 $142 $— $162 
Insurance contract liabilities(1)
84,283 28,846 30,045 6,238 149,412 
Net insurance contract liabilities$84,283 $28,826 $29,903 $6,238 $149,250 
Reinsurance contract held assets1,864 4,549 128 71 6,612 
Reinsurance contract held liabilities1,751 37 201 5 1,994 
Net reinsurance contract held assets$113 $4,512 $(73)$66 $4,618 
Contracts measured using the PAA:
Insurance contract assets$— $— $— $— $— 
Insurance contract liabilities12,472 4,846 77 — 17,395 
Net insurance contract liabilities — PAA
$12,472 $4,846 $77 $— $17,395 
Reinsurance contract held assets196 240 1 — 437 
Reinsurance contract held liabilities— — — — — 
Net reinsurance contract held assets — PAA
$196 $240 $1 $— $437 
Contracts not measured using the PAA:
Insurance contract assets$— $20 $142 $— $162 
Insurance contract liabilities(1)
71,811 24,000 29,968 6,238 132,017 
Net insurance contract liabilities — non-PAA
$71,811 $23,980 $29,826 $6,238 $131,855 
Reinsurance contract held assets1,668 4,309 127 71 6,175 
Reinsurance contract held liabilities1,751 37 201 5 1,994 
Net reinsurance contract held assets — non-PAA
$(83)$4,272 $(74)$66 $4,181 

(1)    Includes liabilities of $195 for segregated fund insurance contracts that are not backed by the related Investments for account of segregated fund holders.
Weighted Average Summary of Discount Curves
The following table provides a weighted average summary of the discount curves used to present value cash flows that do not vary based on the returns on underlying items for all major products by business group:
As atDecember 31, 2023December 31, 2022
1 year5 years10 years30 yearsUltimate1 year5 years10 years30 yearsUltimate
CanadaCAD5.51%4.67%4.59%4.46%4.95%5.36%5.00%5.02%4.80%4.65%
U.S.USD5.84%5.12%5.04%5.05%4.95%6.06%5.83%5.47%5.33%4.65%
AsiaUSD5.89%5.06%5.37%5.48%4.95%5.88%5.61%6.35%5.38%4.65%
Schedule of Changes in Net Liabilities for Insurance Contracts Issued by Measurement Component
The following table shows the changes in net liabilities for insurance contracts issued by measurement component:
For the years ended and as at December 31,20232022
Estimates of PV of future cash flowsRisk adjustmentCSMTotalEstimates of PV of future cash flowsRisk adjustmentCSMTotal
Insurance contracts — non-PAA, beginning of year:
Insurance contract assets$(195)$51 $69 $(75)$(426)$163 $101 $(162)
Insurance contract liabilities96,623 6,847 10,901 114,371 113,634 8,580 9,803 132,017 
Net balances, beginning of year$96,428 $6,898 $10,970 $114,296 $113,208 $8,743 $9,904 $131,855 
Changes related to current service:
CSM recognized for services provided(923)(923)(871)(871)
Risk adjustment recognized for non-financial risk expired(545)(545)(493)(493)
Income taxes specifically chargeable to the policyholder(5)— (5)71 — 71 
Experience adjustments169 169 229 229 
Total changes related to current service
164 (545)(923)(1,304)300 (493)(871)(1,064)
Changes related to future service:
Changes in estimates that adjust CSM(1)
(1,206)292 914 — (920)(213)1,133 — 
Changes in estimates that do not adjust CSM (losses on onerous groups and reversals of such losses)33 9 42 55 2 57 
Contracts initially recognized in the year(1,702)513 1,259 70 (1,259)456 894 91 
Total changes related to future service
(2,875)814 2,173 112 (2,124)245 2,027 148 
Changes related to past service — Adjustments to FCF for incurred claims
(39)(12)(51)(25)(2)(27)
Insurance service result(2,750)257 1,250 (1,243)(1,849)(250)1,156 (943)
Insurance finance (income) expenses from insurance contracts issued8,131 525 (8)8,648 (19,140)(1,694)(347)(21,181)
Total changes recognized in income
5,381 782 1,242 7,405 (20,989)(1,944)809 (22,124)
Foreign currency translation(898)(54)(106)(1,058)2,737 99 257 3,093 
Total changes recognized in income and OCI
4,483 728 1,136 6,347 (18,252)(1,845)1,066 (19,031)
Cash flows:
Premiums received14,798 14,798 12,610 12,610 
Amounts paid to policyholders and other insurance service expenses paid(11,809)(11,809)(9,499)(9,499)
Insurance acquisition cash flows(2,034)(2,034)(1,572)(1,572)
Fees received from segregated funds422 422 451 451 
Other393 393 (518)(518)
Total cash flows
1,770 1,770 1,472 1,472 
Dispositions (Note 3)(3,885)(92)(261)(4,238)— — — — 
Contracts modified
46 — — 46 — — — — 
Net balances, end of year$98,842 $7,534 $11,845 $118,221 $96,428 $6,898 $10,970 $114,296 
Insurance contracts — non-PAA, end of year:
Insurance contract assets$(578)$146 $248 $(184)$(195)$51 $69 $(75)
Insurance contract liabilities99,420 7,388 11,597 118,405 96,623 6,847 10,901 114,371 
Net balances, end of year$98,842 $7,534 $11,845 $118,221 $96,428 $6,898 $10,970 $114,296 

(1) Reflective of a contract modification resulting in the recognition of CSM related to a health contract in Asia Hong Kong.
Insurance Contracts Issued By Remaining Coverage and Incurred Claims
The following table shows the changes in net liabilities for remaining coverage and incurred claims for insurance contracts issued:
Liability for remaining coverageLiability for incurred claims
Contracts using PAA
For the year ended and as at December 31, 2023
Excluding loss componentLoss componentContracts not using PAAEstimates of PV of future cash flowsRisk AdjustmentTotal
Insurance contract assets, beginning of year$(118)$19 $24 $— $— $(75)
Insurance contract liabilities, beginning of year113,237 185 1,803 15,233 836 131,294 
Net balances, beginning of year$113,119 $204 $1,827 $15,233 $836 $131,219 
Insurance revenue(21,356)(21,356)
Insurance service expenses:
Incurred claims and other expenses23 4,919 11,806 105 16,853 
Amortization of insurance acquisition cash flows202 202 
Changes related to future service (losses on onerous groups and reversals of such losses)126 126 
Changes related to past service (changes in FCF related to liability for incurred claims)(51)309 (163)95 
Total insurance service expenses202 149 4,868 12,115 (58)17,276 
Insurance service result(21,154)149 4,868 12,115 (58)(4,080)
Insurance finance (income) expenses8,652 7 (31)994 53 9,675 
Total changes recognized in income(12,502)156 4,837 13,109 (5)5,595 
Foreign currency translation(1,071)(2)43 (161)(3)(1,194)
Total changes recognized in income and OCI(13,573)154 4,880 12,948 (8)4,401 
Cash flows:
Premiums received31,876 31,876 
Amounts paid to policyholders and other insurance service expenses paid— (11,878)(14,078)— (25,956)
Insurance acquisition cash flows(2,061)— — — (2,061)
Fees received from segregated funds422 — — — 422 
Other794 (428)27 — 393 
Total cash flows31,031 (12,306)(14,051)— 4,674 
Investment component excluded from insurance revenue and insurance service expense:
Expected/incurred claims(6,959)7,164 2,279 — 2,484 
Experience adjustment(2,484)— — — (2,484)
Total investment component excluded from insurance revenue and insurance service expense(9,443)7,164 2,279 — — 
Dispositions (Note 3)(1,178)(3,070)(561)— (4,809)
Net balances, end of year$119,956 $358 $(1,505)$15,848 $828 $135,485 
Insurance contract assets, end of year$2,516 $— $(2,700)$— $— $(184)
Insurance contract liabilities, end of year117,440 358 1,195 15,848 828 135,669 
Net balances, end of year$119,956 $358 $(1,505)$15,848 $828 $135,485 
Liability for remaining coverageLiability for incurred claims
Contracts using PAA
For the year ended and as at December 31, 2022
Excluding loss componentLoss componentContracts not using PAAEstimates of PV of future cash flowsRisk AdjustmentTotal
Insurance contract assets, beginning of year$(242)$— $80 $— $— $(162)
Insurance contract liabilities, beginning of year
131,474 47 1,342 15,658 891 149,412 
Net balances, beginning of year$131,232 $47 $1,422 $15,658 $891 $149,250 
Insurance revenue(18,902)(18,902)
Insurance service expenses:
Incurred claims and other expenses(3)4,925 9,931 270 15,123 
Amortization of insurance acquisition cash flows56 56 
Changes related to future service (losses on onerous groups and reversals of such losses)153 153 
Changes related to past service (changes in FCF related to liability for incurred claims)(29)267 (221)17 
Total insurance service expenses56 150 4,896 10,198 49 15,349 
Insurance service result(18,846)150 4,896 10,198 49 (3,553)
Insurance finance (income) expenses(21,257)4 86 (1,325)(103)(22,595)
Total changes recognized in income(40,103)154 4,982 8,873 (54)(26,148)
Foreign currency translation2,636 3 198 494 (1)3,330 
Total changes recognized in income and OCI(37,467)157 5,180 9,367 (55)(22,818)
Cash flows:
Premiums received(1)
27,655 27,655 
Amounts paid to policyholders and other insurance service expenses paid(1)
— (9,419)(12,136)— (21,555)
Insurance acquisition cash flows(1,552)— — — (1,552)
Fees received from segregated funds451 — — — 451 
Other139 (638)(58)— (557)
Total cash flows(1)
26,693 (10,057)(12,194)— 4,442 
Investment component excluded from insurance revenue and insurance service expense:
Expected/incurred claims(6,837)5,282 2,062 — 507 
Experience adjustment(507)— — — (507)
Total investment component excluded from insurance revenue and insurance service expense(7,344)5,282 2,062 — — 
Acquisitions (Note 3)5 — 340 — 345 
Net balances, end of period(1)
$113,119 $204 $1,827 $15,233 $836 $131,219 
Insurance contract assets, end of year$(118)$19 $24 $— $— $(75)
Insurance contract liabilities, end of year
113,237 185 1,803 15,233 836 131,294 
Net balances, end of year$113,119 $204 $1,827 $15,233 $836 $131,219 

(1)    Reflects a change in presentation effective June 30, 2023. We have updated our prior period to reflect this change in presentation.
Reinsurance Contracts Held By Measurement Component
The following table shows the changes in net assets for reinsurance contracts held by measurement component:
For the years ended and as at December 31,20232022
Estimates of PV of future cash flowsRisk adjustmentCSMTotalEstimates of PV of future cash flowsRisk adjustmentCSMTotal
Reinsurance contracts — non-PAA, beginning of year:
Reinsurance contract assets$4,061 $1,450 $163 $5,674 $4,412 $1,606 $157 $6,175 
Reinsurance contract liabilities(2,275)771 (58)(1,562)(3,037)1,093 (50)(1,994)
Net balances, beginning of year$1,786 $2,221 $105 $4,112 $1,375 $2,699 $107 $4,181 
Changes related to current service:
CSM recognized for services received(4)(4)(10)(10)
Risk adjustment recognized for non-financial risk expired(148)(148)(131)(131)
Experience adjustments137 137 (105)(105)
Total changes related to current service137 (148)(4)(15)(105)(131)(10)(246)
Changes related to future service:
Changes in estimates that adjust CSM68 (52)(16)— (203)147 56 — 
Loss recoveries at initial recognition of onerous underlying contracts35 35 23 23 
Changes in estimates that relate to losses and reversals of losses on groups of underlying contracts(6)23 (4)13 (4)25 (23)(2)
Contracts initially recognized in the year(45)102 (57)— (37)95 (58)— 
Total changes related to future service17 73 (42)48 (244)267 (2)21 
Changes related to past service — Adjustments to FCF for incurred claims
(38)(9)(47)249 (4)245 
Reinsurance contract held net income (expense)116 (84)(46)(14)(100)132 (12)20 
Insurance finance income (expenses) from reinsurance contracts held(120)164 1 45 229 (648)1 (418)
Total changes recognized in income(4)80 (45)31 129 (516)(11)(398)
Foreign currency translation(81)(14)(2)(97)359 38 9 406 
Total changes recognized in income and OCI(85)66 (47)(66)488 (478)(2)8 
Cash flows:
Premiums paid1,525 1,525 1,562 1,562 
Amounts recovered from reinsurers(1,434)(1,434)(1,711)(1,711)
Other(279)(279)72 72 
Total cash flows(188)(188)(77)(77)
Dispositions (Note 3)(25)(9)1 (33)— — — — 
Contracts modified5 — — 5 — — — — 
Net balances, end of year$1,493 $2,278 $59 $3,830 $1,786 $2,221 $105 $4,112 
Reinsurance contracts — non-PAA, end of year:
Reinsurance contract assets$3,848 $1,431 $174 $5,453 $4,061 $1,450 $163 $5,674 
Reinsurance contract liabilities(2,355)847 (115)(1,623)(2,275)771 (58)(1,562)
Net balances, end of year$1,493 $2,278 $59 $3,830 $1,786 $2,221 $105 $4,112 
Reinsurance Contracts Held By Remaining Coverage and Incurred Claims
The following table shows the changes in net assets for remaining coverage and incurred claims for reinsurance contracts held:
Asset for remaining coverageAsset for incurred claims
Contracts using PAA
For the year ended and as at December 31, 2023
Excluding loss-recovery componentLoss-recovery componentContracts not using PAAEstimates of PV of future cash flowsRisk AdjustmentTotal
Reinsurance contract assets, beginning of year$4,894 $18 $752 $450 $1 $6,115 
Reinsurance contract liabilities, beginning of year(1,501)— (40)(70)8 (1,603)
Net balances, beginning of year$3,393 $18 $712 $380 $9 $4,512 
Reinsurance contract held net income (expense) excluding changes in risk of non-performance by the reinsurer(1,994)38 1,300 580 7 (69)
Changes in the risk of non-performance by the reinsurer24 — (24)— — — 
Reinsurance contract held net income (expense)(1,970)38 1,276 580 7 (69)
Insurance finance income (expenses) from reinsurance contracts held23 2 8 25 1 59 
Total changes recognized in income(1,947)40 1,284 605 8 (10)
Foreign currency translation(67)— (82)(22)— (171)
Total changes recognized in income and OCI(2,014)40 1,202 583 8 (181)
Cash flows:
Premiums paid2,268 2,268 
Amounts recovered from reinsurers(1,549)(562)(2,111)
Other(165)(30)(2)(197)
Total cash flows2,103 (1,579)(564)(40)
Investment component excluded from reinsurance contract held net income (expense):
Expected/incurred claims103 — 44 25 — 172 
Experience adjustment(172)— — — (172)
Total investment component excluded from reinsurance contract held net income (expense)(69)— 44 25 — — 
Dispositions (Note 3)7 — (22)(105)— (120)
Net balances, end of year$3,420 $58 $357 $319 $17 $4,171 
Reinsurance contract assets, end of year$5,019 $56 $383 $319 $17 $5,794 
Reinsurance contract liabilities, end of year(1,599)2 (26)— — (1,623)
Net balances, end of year$3,420 $58 $357 $319 $17 $4,171 
Asset for remaining coverageAsset for incurred claims
Contracts using PAA
For the year ended and as at December 31, 2022
Excluding loss-recovery componentLoss-recovery componentContracts not using PAAEstimates of PV of future cash flowsRisk AdjustmentTotal
Reinsurance contract assets, beginning of year$5,600 $— $558 $444 $10 $6,612 
Reinsurance contract liabilities, beginning of year(1,957)— (37)— — (1,994)
Net balances, beginning of year$3,643 $— $521 $444 $10 $4,618 
Reinsurance contract held net income (expense) excluding changes in risk of non-performance by the reinsurer(2,279)18 1,407 701 — (153)
Changes in the risk of non-performance by the reinsurer38 — (38)— — — 
Reinsurance contract held net income (expense)(2,241)18 1,369 701 — (153)
Insurance finance income (expenses) from reinsurance contracts held(430)— 9 (18)(1)(440)
Total changes recognized in income(2,671)18 1,378 683 (1)(593)
Foreign currency translation227 — 165 (17)— 375 
Total changes recognized in income and OCI(2,444)18 1,543 666 (1)(218)
Cash flows:
Premiums paid2,489 2,489 
Amounts recovered from reinsurers(1,702)(753)(2,455)
Other(217)295 — 78 
Total cash flows2,272 (1,407)(753)112 
Investment component excluded from reinsurance contract held net income (expense):
Expected/incurred claims38 — 55 23 — 116 
Experience adjustment(116)— — — (116)
Total investment component excluded from reinsurance contract held net income (expense)(78)— 55 23 — — 
Net balances, end of year$3,393 $18 $712 $380 $9 $4,512 
Reinsurance contract assets, end of year$4,894 $18 $752 $450 $1 $6,115 
Reinsurance contract liabilities, end of year(1,501)— (40)(70)8 (1,603)
Net balances, end of year$3,393 $18 $712 $380 $9 $4,512 
The tables in this section illustrate the effect on the Consolidated Statements of Financial Position of insurance contracts initially recognized during the period, excluding contracts measured using the PAA.
Insurance Contracts Issued
For the year ended and as at December 31, 2023CanadaU.S. AsiaCorporateTotal
Contracts initially recognized in the period (excluding acquisitions):
Amounts related to all contracts initially recognized:
Estimates of present value of future cash inflows$(9,564)$— $(6,181)$— $(15,745)
Estimates of present value of future cash outflows:
Insurance acquisition cash flows1,009 — 1,277 — 2,286 
Other cash outflows7,804 — 3,953 — 11,757 
Risk adjustment260 — 253 — 513 
CSM552 — 707 — 1,259 
Total contracts initially recognized in the period (excluding acquisitions)$61 $— $9 $— $70 
Amounts related to onerous contracts included in total contracts above:
Estimates of present value of future cash inflows$(1,978)$— $(129)$— $(2,107)
Estimates of present value of future cash outflows:
Insurance acquisition cash flows77 — 25 — 102 
Other cash outflows1,845 — 108 — 1,953 
Risk adjustment117 — 5 — 122 
Total onerous contracts$61 $— $9 $— $70 
For the year ended and as at December 31, 2022CanadaU.S. AsiaCorporateTotal
Contracts initially recognized in the period (excluding acquisitions):
Amounts related to all contracts initially recognized:
Estimates of present value of future cash inflows$(7,727)$— $(3,563)$— $(11,290)
Estimates of present value of future cash outflows:
Insurance acquisition cash flows746 — 601 — 1,347 
Other cash outflows6,356 — 2,328 — 8,684 
Risk adjustment264 — 192 — 456 
CSM443 — 451 — 894 
Total contracts initially recognized in the period (excluding acquisitions)$82 $— $9 $— $91 
Amounts related to onerous contracts included in total contracts above:
Estimates of present value of future cash inflows$(927)$— $(107)$— $(1,034)
Estimates of present value of future cash outflows:
Insurance acquisition cash flows59 — 28 — 87 
Other cash outflows840 — 83 — 923 
Risk adjustment110 — 5 — 115 
Total onerous contracts$82 $— $9 $— $91 
Reinsurance Contracts Held
For the year ended and as at December 31, 2023
CanadaU.S.AsiaCorporateTotal
Contracts initially recognized in the period (excluding acquisitions):
Amounts related to all contracts initially recognized:
Estimates of present value of future cash inflows$264 $— $85 $— $349 
Estimates of present value of future cash outflows:
Premiums and other expenses(277)— (117)— (394)
Insurance acquisition cash flows— — — — — 
Risk adjustment70 — 32 — 102 
CSM(57)— — — (57)
Total contracts initially recognized in the period (excluding acquisitions)$— $— $— $— $— 
Amounts related to contracts initially recognized in the period with a loss recovery component included in total contracts above:
Estimates of present value of future cash inflows$148 $— $1 $— $149 
Estimates of present value of future cash outflows:
Premiums and other expenses(147)— (1)— (148)
Insurance acquisition cash flows— — — — — 
Risk adjustment45 — — — 45 
CSM(46)— — — (46)
Total reinsurance contracts held with a loss recovery component$— $— $— $— $— 
Loss recoveries at initial recognition of onerous underlying contracts$34 $— $1 $— $35 
For the year ended and as at December 31, 2022
CanadaU.S.AsiaCorporateTotal
Contracts initially recognized in the period (excluding acquisitions):
Amounts related to all contracts initially recognized:
Estimates of present value of future cash inflows$259 $— $41 $— $300 
Estimates of present value of future cash outflows:
Premiums and other expenses(265)— (72)— (337)
Insurance acquisition cash flows— — — — — 
Risk adjustment69 — 26 — 95 
CSM(63)— 5 — (58)
Total contracts initially recognized in the period (excluding acquisitions)$— $— $— $— $— 
Amounts related to contracts initially recognized in the period with a loss recovery component included in total contracts above:
Estimates of present value of future cash inflows$143 $— $3 $— $146 
Estimates of present value of future cash outflows:
Premiums and other expenses(141)— (2)— (143)
Insurance acquisition cash flows— — — — — 
Risk adjustment42 — — — 42 
CSM(44)— (1)— (45)
Total reinsurance contracts held with a loss recovery component$— $— $— $— $— 
Loss recoveries at initial recognition of onerous underlying contracts$23 $— $— $— $23 
Schedule of Changes in CSM by Reportable Segment
The following table shows the changes in CSM by reportable segment for insurance contracts issued:
For the year ended and as at December 31, 2023
Canada
U.S.
Asia
Corporate
Total
Net balances, beginning of year$5,481 $1,296 $3,811 $382 $10,970 
Changes recognized in income and OCI:
CSM recognized for services provided(432)(116)(365)(10)(923)
Changes in estimates that adjust CSM492 (128)555 (5)914 
Contracts initially recognized in the year552 — 707 — 1,259 
Insurance finance (income) expenses from insurance contracts issued(31)20 4 (1)(8)
Foreign currency translation— (29)(91)14 (106)
Dispositions— 119 — (380)(261)
Net balances, end of year$6,062 $1,162 $4,621 $— $11,845 
For the year ended and as at December 31, 2022
Canada
U.S.
Asia
Corporate
Total
Net balances, beginning of year$5,346 $1,201 $3,054 $303 $9,904 
Changes recognized in income and OCI:
CSM recognized for services provided(398)(111)(326)(36)(871)
Changes in estimates that adjust CSM419 105 483 126 1,133 
Contracts initially recognized in the year443 — 451 — 894 
Insurance finance (income) expenses from insurance contracts issued(329)9 (21)(6)(347)
Foreign currency translation— 92 170 (5)257 
Net balances, end of year$5,481 $1,296 $3,811 $382 $10,970 
Reinsurance Contracts Held
The following table shows the changes in CSM by reportable segment for reinsurance contracts held:
For the year ended and as at December 31, 2023
Canada
U.S.
Asia
Corporate
Total
Net balances, beginning of year$(20)$128 $(7)$4 $105 
Changes recognized in income and OCI:
CSM recognized for services received— (7)1 2 (4)
Changes in estimates that adjust CSM78 (113)26 (7)(16)
Loss recoveries at initial recognition of onerous underlying contracts34 — 1 — 35 
Changes in estimates that relate to losses and reversals of losses on groups of underlying contracts(3)— (1)— (4)
Contracts initially recognized in the year(57)— — — (57)
Insurance finance income (expenses) from reinsurance contracts held— 1 — — 1 
Foreign currency translation— — (2)— (2)
Dispositions— — — 1 1 
Net balances, end of year$32 $9 $18 $— $59 
For the year ended and as at December 31, 2022
Canada
U.S.
Asia
Corporate
Total
Net balances, beginning of year$12 $111 $(3)$(13)$107 
Changes recognized in income and OCI:
CSM recognized for services received(1)(10)(2)3 (10)
Changes in estimates that adjust CSM23 39 (20)14 56 
Loss recoveries at initial recognition of onerous underlying contracts23 — — — 23 
Changes in estimates that relate to losses and reversals of losses on groups of underlying contracts(14)(22)13 — (23)
Contracts initially recognized in the year(63)— 5 — (58)
Insurance finance income (expenses) from reinsurance contracts held— 1 — — 1 
Foreign currency translation— 9 — — 9 
Net balances, end of year$(20)$128 $(7)$4 $105 
Schedule of Analysis of Insurance Revenue
Insurance revenue in the Consolidated Statements of Operations consists of the following:
For the years endedCanadaU.SAsiaCorporateTotal
December 31, 2023
For contracts not measured using the PAA:
Amounts relating to changes in liabilities for remaining coverage:
Expected claims and other expenses(1)
$2,924 $1,092 $655 $68 $4,739 
Release of risk adjustment(1)
344 32 162 7 545 
CSM recognized for services provided432 116 365 10 923 
Income taxes specifically chargeable to the policyholder
5 — — — 5 
Premium experience adjustments — — — — — 
Amortization of insurance acquisition cash flows90 — 112 — 202 
Total insurance revenue for contracts not measured using the PAA3,795 1,240 1,294 85 6,414 
For contracts measured using the PAA:
Insurance revenue4,370 10,481 91 — 14,942 
Total insurance revenue$8,165 $11,721 $1,385 $85 $21,356 
December 31, 2022
For contracts not measured using the PAA:
Amounts relating to changes in liabilities for remaining coverage:
Expected claims and other expenses(1)
$2,785 $803 $746 $399 $4,733 
Release of risk adjustment(1)
339 27 97 30 493 
CSM recognized for services provided398 111 326 36 871 
Income taxes specifically chargeable to the policyholder (70)— — (1)(71)
Premium experience adjustments — — — — — 
Amortization of insurance acquisition cash flows22 — 35 — 57 
Total insurance revenue for contracts not measured using the PAA3,474 941 1,204 464 6,083 
For contracts measured using the PAA:
Insurance revenue4,637 8,063 119 — 12,819 
Total insurance revenue$8,111 $9,004 $1,323 $464 $18,902 
(1)Expected claims and other expenses excludes investment components and amounts allocated to the loss component. Release of risk adjustment excludes amounts allocated to the loss component and amounts related to changes in the time value of money, which are recognized in Insurance finance income (expenses)
Disclosure of sensitivity analysis to changes in risk variables that arise from contracts within scope of IFRS 17
The following table sets out the estimated immediate impact on, or sensitivity of, the CSM and net income to certain instantaneous changes in the insurance and other non-financial assumptions used in the calculation of our insurance contract liabilities, based on a starting point and business mix as at December 31, 2023 and December 31, 2022. These sensitivities are calculated independently for each risk factor, generally assuming that all other risk variables stay constant. The estimates are illustrative and different starting points for best estimate assumptions, CSM balances and business mix will result in different estimated sensitivities.

The impact on CSM is attributable to insurance contracts measured using the GMA and VFA. For insurance contracts measured using the GMA, the impact flows through the CSM at locked-in discount rates. For insurance contracts measured using the VFA, the impact flows through the CSM at current discount rates.

The impact on net income is attributable to any portion of the sensitivities for insurance contracts measured under GMA and VFA that cannot be absorbed by CSM, the full impact for insurance contracts measured under the PAA, and the difference in impact between locked-in and current discount rates for insurance contracts measured using the GMA. If current discount rates are higher than locked-in rates, this generally results in a favourable impact to net income from contracts measured using the GMA.
As at December 31,20232022
Potential impact on
CSM (pre-tax)		Potential impact on
net income/equity (after-tax)		Potential impact on
CSM (pre-tax)		Potential impact on
net income/equity (after-tax)
Sensitivities(1)
Insurance contracts issuedNet of reinsurance contracts heldInsurance contracts issuedNet of reinsurance contracts heldInsurance contracts issuedNet of reinsurance contracts heldInsurance contracts issuedNet of reinsurance contracts held
Policyholder Behaviour (10% increase / decrease, where adverse)
$(725)$(950)$100 $100 $(825)$(850)$75 $75 
Life Mortality rates (2% increase)
$(425)$(75)$25 $(25)$(450)$(75)$50 $(25)
Annuity Mortality rates (2% decrease)
$(175)$(175)$25 $— $(175)$(175)$25 $25 
Morbidity rates (5% incidence increase and 5% termination decrease)
$(225)$(100)$(200)$(175)$(200)$(75)$(175)$(175)
Expenses (5% increase)
$(175)$(175)$— $— $(175)$(175)$— $— 

(1)    Net income and CSM sensitivities have been rounded in increments of $25. The sensitivities exclude the impacts on the income from our joint ventures and associates, which we account for on an equity basis.
Impacts of method and assumption changes on insurance contracts, are as follows:
For the year ended December 31, 2023
Income impact Deferred in CSMDescription
Mortality / Morbidity$(115)$179 Updates to reflect mortality/morbidity experience in all jurisdictions. The largest items were favourable mortality impacts in the UK Annuities in the U.S and Group Retirement Services ("GRS") in Canada. These were offset partially by adverse mortality in In-force Management in the U.S. Mortality updates impacting CSM favourably are funded at locked-in rates that are lower than current rates resulting in a negative net income impact. Additionally, favourable morbidity impacts in Group Benefits in the U.S. were largely offset by unfavourable morbidity updates in Sun Life Health in Canada.
Expense10 (171)Updates to reflect higher costs related to IFRS 17 infrastructure and higher cost in Canada.
Financial163 202 Updates to various financial related assumptions including the ultimate risk-free rate.
Policyholder Behaviour(75)(274)Updates to reflect lapse and policyholder behaviour in all jurisdictions. The largest items were an adverse lapse impact in Individual Term and Universal Life in Canada, and in International, Hong Kong and Vietnam in Asia.
Model enhancements and other107 382 Various enhancements and methodology changes. The largest items were favourable impacts from refinements to the modelling of guarantees for the Individual Par in Canada and International Universal Life in Asia, as well as modelling enhancements in Vietnam in Asia offset partially by a refinement in Group in Canada and to reinsurance and other provisions in Hong Kong in Asia.
Total (pre-tax)$90 $318 
For the year ended December 31, 2022
(restated, see Note 2)
Income impact Deferred in CSMDescription
Mortality / Morbidity$(75)$136 Updates to reflect mortality/morbidity experience in all jurisdictions. The largest items were favourable mortality impacts in the UK Annuity block in Corporate and in GRS in Canada offset partially by adverse morbidity impacts in Sun Life Health in Canada.
Expense(9)7 Updates to reflect expense experience.
Financial24 135 Updates to various financial related assumptions.
Policyholder Behaviour(35)(30)Updates to lapse and policyholder behaviour in all jurisdictions.
Model enhancements and other(144)184 Various enhancements and methodology changes. The largest being a refinement to Hong Kong variable universal life contracts in Asia and refinements to Segregated Fund modelling in Canada.
Total (pre-tax)$(239)$432 
Schedules of Insurance Contracts Issued and Reinsurance Contracts Held
The following tables illustrate the expected timing of CSM amortization into Insurance revenue for insurance contracts issued.
CanadaU.S.AsiaCorporateTotal
As at December 31, 2023
Within 1 year$476 $112 $387 $— $975 
1-3 years848 194 677 — 1,719 
3-5 years726 162 571 — 1,459 
5-10 years1,378 294 1,075 — 2,747 
Over 10 years2,634 400 1,911 — 4,945 
Total$6,062 $1,162 $4,621 $— $11,845 
As at December 31, 2022
Within 1 year$396 $116 $290 $42 $844 
1-3 years715 207 512 72 1,506 
3-5 years623 176 435 58 1,292 
5-10 years1,217 328 827 98 2,470 
Over 10 years2,530 469 1,747 112 4,858 
Total$5,481 $1,296 $3,811 $382 $10,970 
The following tables illustrate the expected timing of CSM amortization into net income (expense) for reinsurance contracts held.
CanadaU.S.AsiaCorporateTotal
As at December 31, 2023
Within 1 year$(2)$(3)$(1)$— $(6)
1-3 years(3)(4)(2)— (9)
3-5 years(3)(3)(2)— (8)
5-10 years(7)(2)(4)— (13)
Over 10 years(17)3 (9)— (23)
Total$(32)$(9)$(18)$— $(59)
As at December 31, 2022
Within 1 year$1 $(11)$1 $1 $(8)
1-3 years2 (19)1 1 (15)
3-5 years2 (17)1 — (14)
5-10 years4 (32)2 (1)(27)
Over 10 years11 (49)2 (5)(41)
Total$20 $(128)$7 $(4)$(105)
Schedule Of Measurement Components Of Insurance Contract Balances
The following tables show the reconciliations of the CSM and the amount of insurance revenue recognized separately for insurance contracts that existed at the transition date to which the fair value transition approach was applied. The reconciliation of the CSM for all other contracts is for contracts issued after the transition date and contracts at the transition date that are not measured using the PAA. Insurance revenue for all other contracts includes contracts issued after the transition date as well as all revenue from all contracts measured using the PAA.
For the years ended December 31,20232022
Insurance contracts at transition measured using the fair value approach:
Contractual Service Margin:
Balances, beginning of year$10,205 $9,886 
Changes related to current service:
CSM recognized for services provided(822)(843)
Experience adjustments— — 
Changes related to future service:
Changes in estimates that adjust CSM703 1,274 
Contracts initially recognized in the year— — 
Insurance finance income (expenses) from insurance contracts issued(39)(352)
Foreign currency translation(85)240 
Dispositions(261)— 
Balances, end of year$9,701 $10,205 
Insurance revenue$5,716 $5,892 
All other insurance contracts:
Contractual Service Margin:
Balances, beginning of year$765 $18 
Changes related to current service:
CSM recognized for services provided(101)(28)
Experience adjustments— — 
Changes related to future service:
Changes in estimates that adjust CSM211 (141)
Contracts initially recognized in the year1,259 894 
Insurance finance income (expenses) from insurance contracts issued31 5 
Foreign currency translation(21)17 
Balances, end of year$2,144 $765 
Insurance revenue$15,640 $13,010 
The following tables show the reconciliations of the CSM separately for reinsurance contracts held that existed at the transition date to which the fair value transition approach was applied. The reconciliation of the CSM for all other contracts is for contracts issued after the transition date that are not measured using the PAA.
For the years ended December 31,20232022
Reinsurance contracts held at transition measured using the fair value approach:
Contractual Service Margin:
Balances, beginning of year
$175 $107 
Changes related to current service:
CSM recognized for services received
(11)(13)
Experience adjustments
— — 
Changes related to future service:
Changes in estimates that adjust CSM(22)81 
Loss recoveries at initial recognition of onerous underlying contracts — — 
Changes in estimates that relate to losses and reversals of losses on groups of underlying contracts 3 (9)
Contracts initially recognized in the period
— — 
Insurance finance income (expenses) from reinsurance contracts held2 1 
Foreign currency translation(2)8 
Dispositions1 — 
Balances, end of year$146 $175 
All other reinsurance contracts held:
Contractual Service Margin:
Balances, beginning of year$(70)$— 
Changes related to current service:
CSM recognized for services received7 3 
Experience adjustments— — 
Changes related to future service:
Changes in estimates that adjust CSM6 (25)
Loss recoveries at initial recognition of onerous underlying contracts 35 23 
Changes in estimates that relate to losses and reversals of losses on groups of underlying contracts (7)(14)
Contracts initially recognized in the period(57)(58)
Insurance finance income (expenses) from reinsurance contracts held(1)— 
Foreign currency translation— 1 
Balances, end of year$(87)$(70)
Schedule Of Underlying Items For Insurance Contracts With Direct Participation Features
The composition and fair value of the underlying items for other insurance contracts with direct participation features included in the Consolidated Statements of Financial position, are as follows:
As at December 31,
20232022
Cash, cash equivalents and short-term securities
$3,529 $2,339 
Debt securities23,668 22,140 
Equity securities
4,790 4,750 
Mortgages and loans
10,746 9,749 
Derivative assets
250 131 
Other financial invested assets
2,260 2,187 
Investment properties5,967 6,346 
Total
$51,210 $47,642 
Schedule of Insurance Service Expense
For the years ended December 31,20232022
Incurred claims$14,851 $13,284 
Directly attributable operating expenses and commissions (Note 17)2,002 1,839 
Total incurred claims and other expenses(1)
16,853 15,123 
Amortization of insurance acquisition cash flows202 56 
Insurance acquisition cash flows expensed as incurred (Note 17)1,174 1,107 
Changes related to future service (losses on onerous groups and reversals of such losses)
126 153 
Changes related to past service (changes in FCF related to liability for incurred claims)
95 17 
Total insurance service expenses$18,450 $16,456