Segmented Information

12 Months Ended

Dec. 31, 2024

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. In the second quarter of 2023, we completed the sale of our UK business unit and have retained our economic interest in the annuity business via a reinsurance arrangement that is reported under the U.S. reportable segment. Effective the third quarter of 2023, the run-off reinsurance operations are reported under the U.S. reportable segment.

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.

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, 2024
Insurance revenue:
Annuities		$	2,063	$	307		$	—	$	25		$	—		$	—		$	2,395
Life insurance		2,324		2,008			—		1,279			9			—			5,620
Health insurance		4,391		9,981			—		250			—			—			14,622
Total Insurance revenue		8,778		12,296			—		1,554			9			—			22,637
Net investment income (loss)		5,039		316			281		1,648			233			(102)			7,415
Fee income		1,771		489			6,391		329			162			(561)			8,581
Segment revenue(1)		15,588		13,101			6,672		3,531			404			(663)			38,633
Expenses:
Insurance service expenses		7,309		11,345			—		974			3			—			19,631
Reinsurance contract held net (income) expenses		4		(145)			—		56			—			—			(85)
Insurance finance (income) expenses from insurance contracts issued		3,843		63			—		1,233			—			—			5,139
Reinsurance finance (income) expenses		81		(121)			—		(11)			—			—			(51)
(Decrease) increase in investment contract liabilities		390		—			—		3			—			—			393
Other income(2)		—		—			(163)		—			—			—			(163)
Interest expenses		262		116			172		105			123			(114)			664
Operating expenses and commissions		1,989		1,127			4,596		701			902			(549)			8,766
Total expenses(1)		13,878		12,385			4,605		3,061			1,028			(663)			34,294
Income (loss) before income taxes		1,710		716			2,067		470			(624)			—			4,339
Less: Income tax expense (benefit)		395		133			411		124			(23)			—			1,040
Total net income (loss)		1,315		583			1,656		346			(601)			—			3,299
Less:
Net income (loss) allocated to the participating account		98		27			—		(83)			—			—			42
Net income (loss) attributable to non-controlling interests		—		—			128		—			—			—			128
Shareholders' net income (loss)		$	1,217	$	556		$	1,528	$	429		$	(601)		$	—		$	3,129
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
Segment 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

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

(2) Relates to the early termination of a distribution agreement. We recognized income of $163 (pre-tax) and $46 (net of taxes, NCI impact and others).

Assets and liabilities by segment are as follows:


	Canada			U.S.		Asset Management			Asia		Corporate			Consolidation adjustments			Total
As at December 31, 2024
Total general fund assets		$	120,987	$	37,006		$	11,066	$	43,158		$	10,044		$	(326)	$	221,935
Investments for account of segregated fund holders		$	140,900	$	429		$	—	$	7,457		$	—		$	—	$	148,786
Total general fund liabilities		$	114,300	$	30,495		$	7,858	$	37,780		$	5,699		$	(326)	$	195,806
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

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,	2024		2023		2024		2023
Revenue:
United States	$	5,995	$	5,438	$	180	$	92
United Kingdom	245		262		—		259
Canada	282		327		53		57
Other countries	150		113		171		130
Segment revenue	$	6,672	$	6,140	$	404	$	538

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


	Asset Management				Corporate
As at December 31,	2024		2023		2024		2023
Total general fund assets:
United States	$	9,027	$	8,118	$	5,161	$	4,973
United Kingdom	1,047		935		—		—
Canada	785		658		4,758		3,643
Other countries	207		268		125		188
Total general fund assets	$	11,066	$	9,979	$	10,044	$	8,804