Material Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2024

Corporate information and statement of IFRS compliance [abstract]

Schedule of significant estimates and judgments

Significant estimates and judgments have been made in the following areas and are discussed as noted:


Insurance contract and investment contract assumptions and measurement			Note 1 Insurance Contracts and Investment Contract Liabilities Note 10 Insurance Contracts
Determination of fair value			Note 1 Basis of Consolidation Note 1 Determination of Fair Value Note 3 Acquisitions and Other Note 5 Total Invested Assets and Related Net Investment Income
Determination of fair value of insurance contracts on transition for adoption of IFRS 17			Note 1 Insurance Contracts
Income taxes			Note 1 Income Taxes Note 19 Income Taxes
Pension plans			Note 1 Pension Plans and Other Post-Retirement Benefits Note 24 Pension Plans and Other Post-Retirement Benefits
Goodwill and intangible assets on acquisition and impairment			Note 1 Goodwill Note 1 Intangible Assets Note 3 Acquisitions and Other Note 9 Goodwill and Intangible Assets
Determination of control for purpose of consolidation			Note 1 Basis of Consolidation Note 15 Interests in Other Entities
Share-based payments			Note 18 Share-Based Payments

Schedule of financial assets


			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, 2024					December 31, 2023
	Carrying value			Fair value		Carrying value			Fair value
Financial assets
Cash, cash equivalents and short-term securities – FVTPL		$	13,873	$	13,873		$	13,173	$	13,173
Debt securities – FVTPL(1)		68,106		68,106			61,180		61,180
Debt securities – FVOCI		13,849		13,849			14,313		14,313
Equity securities – FVTPL		9,900		9,900			7,070		7,070
Equity securities – FVOCI		74		74			68		68
Mortgages and loans – FVTPL(2)		53,233		53,233			50,552		50,552
Mortgages and loans – FVOCI		2,525		2,525			1,948		1,948
Mortgages and loans – Amortized cost(3)		1,861		1,814			2,100		2,006
Derivative assets – FVTPL		1,971		1,971			2,183		2,183
Other financial invested assets (excluding CLOs) – FVTPL(4)		7,950		7,950			6,883		6,883
Other financial invested assets (CLOs) – FVTPL(7)		5,356		5,356			3,478		3,478
Total(5)		$	178,698	$	178,651		$	162,948	$	162,854
Financial liabilities
Investment contract liabilities – Amortized cost		$	11,678	$	11,678		$	11,672	$	11,672
Obligations for securities borrowing – FVTPL		239		239			223		223
Derivative liabilities – FVTPL		2,077		2,077			1,311		1,311
Other financial liabilities – Amortized cost(6)		2,265		2,214			2,449		2,348
Other financial liabilities (CLOs) – FVTPL(7)		5,028		5,028			3,247		3,247
Total(8)		$	21,287	$	21,236		$	18,902	$	18,801

(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, 2024, $1,787 and $27 are categorized in Level 2 and Level 3, respectively, of the fair value hierarchy described in this Note (December 31, 2023 — $1,994 and $12, 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 $189,817 (December 31, 2023 — $174,328) includes Total financial assets in this table, Investment properties of $9,290 (December 31, 2023 — $9,723), and Other non-financial invested assets of $1,829 (December 31, 2023 — $1,657). Other non-financial invested assets consist 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 and loans at FVTPL			Mortgages and 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, 2024
Beginning balance		$	402		$	187		$	113		$	68		$	2,056		$	—		$	6,074		$	9,723		$	18,623		$	341		$	18,964

Included in net income(1)(2)(3)		2			—			20			—			33			—			251			(455)			(149)			(8)			(157)
Included in OCI(2)		—			5			—			—			—			—			—			—			5			—			5
Purchases / Issuances		436			335			77			—			240			22			825			146			2,081			173			2,254
Sales / Payments		(48)			(47)			(1)			—			(133)			—			(389)			(255)			(873)			(62)			(935)
Settlements		(37)			(50)			—			—			(21)			—			—			—			(108)			(1)			(109)
Transfers into Level 3(4)		117			62			—			—			439			6			—			—			624			—			624
Transfers (out) of Level 3(4)		(367)			(341)			—			—			(320)			(15)			(15)			—			(1,058)			—			(1,058)
Foreign currency translation(5)		12			—			2			6			6			—			134			131			291			16			307
Ending balance		$	517		$	151		$	211		$	74		$	2,300		$	13		$	6,880		$	9,290		$	19,436		$	459		$	19,895
Unrealized gains (losses) included in earnings relating to instruments still held(1)		$	(6)		$	—		$	19		$	—		$	30		$	—		$	247		$	(369)		$	(79)		$	—		$	(79)
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)

(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 $(383) (2023 — $(486)), net of amortization of leasing commissions and tenant inducements of $72 (2023 — $34). As at December 31, 2024, we have used assumptions that reflect known changes in the property values including changes in expected future cash flows.

(4) Transfers into Level 3 occur when the inputs used to price the assets and liabilities lack observable market data, and as a result, no longer meet the Level 1 or 2 definitions at the reporting date. Transfers out of Level 3 occur when the pricing inputs become more transparent and satisfy the Level 1 or 2 criteria and are primarily the result of observable market data being available at the reporting date, thus removing the requirement to rely on inputs that lack observability.

(5) Foreign currency translation relates to the foreign exchange impact of translating Level 3 assets and liabilities of foreign subsidiaries from their functional currencies to Canadian dollars.

Cash, cash equivalents and short-term securities presented in our Consolidated Statements of Financial Position and Net cash, cash equivalents and short-term securities presented in our Consolidated Statements of Cash Flows consist of the following:


As at December 31,	2024		2023

Cash	$	2,294	$	2,001
Cash equivalents	7,835		9,169
Short-term securities	3,744		2,003
Cash, cash equivalents and short-term securities	13,873		13,173
Less: Bank overdraft, recorded in Other liabilities	175		—
Net cash, cash equivalents and short-term securities	$	13,698	$	13,173

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,	2024									2023
	FVTPL			FVOCI			Total debt securities			FVTPL			FVOCI			Total debt securities
Canada		$	34,472		$	3,614		$	38,086		$	30,180		$	4,339		$	34,519
United States		20,986			6,486			27,472			20,111			6,266			26,377
United Kingdom		1,320			561			1,881			1,224			517			1,741
Other		11,328			3,188			14,516			9,665			3,191			12,856
Total debt securities		$	68,106		$	13,849		$	81,955		$	61,180		$	14,313		$	75,493

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


As at December 31,	2024									2023
	FVTPL			FVOCI			Total debt securities			FVTPL			FVOCI			Total debt securities
Debt securities issued or guaranteed by:
Canadian federal government		$	6,803		$	734		$	7,537		$	5,161		$	849		$	6,010
Canadian provincial and municipal government		15,302			353			15,655			13,694			557			14,251
U.S. government and agency		626			509			1,135			712			658			1,370
Other foreign government		3,796			413			4,209			3,329			473			3,802
Total government issued or guaranteed debt securities		26,527			2,009			28,536			22,896			2,537			25,433
Corporate debt securities by industry sector:
Financials		8,659			2,893			11,552			8,171			2,889			11,060
Utilities		6,859			763			7,622			6,244			815			7,059
Industrials		4,424			951			5,375			4,510			979			5,489
Energy		3,258			446			3,704			2,793			479			3,272
Communication services		2,647			373			3,020			2,727			422			3,149
Real estate		1,882			423			2,305			1,987			538			2,525
Health care		1,644			363			2,007			1,625			413			2,038
Consumer staples		1,301			256			1,557			1,490			315			1,805
Consumer discretionary		1,011			747			1,758			950			776			1,726
Information technology		890			202			1,092			730			174			904
Materials		819			202			1,021			922			180			1,102
Total corporate debt securities		33,394			7,619			41,013			32,149			7,980			40,129
Asset-backed securities		8,185			4,221			12,406			6,135			3,796			9,931
Total debt securities		$	68,106		$	13,849		$	81,955		$	61,180		$	14,313		$	75,493

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, 2024	Canada			United States			United Kingdom			Other		Total
Mortgages:
Retail		$	1,398		$	1,169		$	—	$	—	$	2,567
Office		1,385			1,248			—		—		2,633
Multi-family residential		3,451			1,048			—		—		4,499
Industrial		2,369			1,314			—		—		3,683
Other		799			49			208		—		1,056
Total mortgages(1)		$	9,402		$	4,828		$	208	$	—	$	14,438
Loans		$	12,560		$	18,856		$	4,478	$	7,287	$	43,181
Total mortgages and loans		$	21,962		$	23,684		$	4,686	$	7,287	$	57,619

(1) $3,630 of mortgages in Canada are insured by the CMHC.


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.

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,	2024									2023
	FVTPL			FVOCI			Total debt securities			FVTPL			FVOCI			Total debt securities
Due in 1 year or less		$	1,932		$	2,385		$	4,317		$	1,697		$	3,079		$	4,776
Due in years 2-5		9,733			6,496			16,229			8,763			6,272			15,035
Due in years 6-10		10,662			1,922			12,584			9,513			2,199			11,712
Due after 10 years		45,779			3,046			48,825			41,207			2,763			43,970
Total debt securities		$	68,106		$	13,849		$	81,955		$	61,180		$	14,313		$	75,493

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


As at December 31,	2024												2023
	FVTPL			FVOCI			Amortized cost			Total			FVTPL			FVOCI			Amortized cost			Total
Due in 1 year or less		$	1,344		$	66		$	283		$	1,693		$	852		$	58		$	171	$	1,081
Due in years 2-5		5,745			340			929			7,014			5,605			222			1,129		6,956
Due in years 6-10		3,814			8			343			4,165			3,510			8			495		4,013
Due after 10 years		1,563			3			—			1,566			2,093			3			—		2,096
Total mortgages		$	12,466		$	417		$	1,555		$	14,438		$	12,060		$	291		$	1,795	$	14,146

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


As at December 31,	2024												2023
	FVTPL			FVOCI			Amortized cost			Total			FVTPL			FVOCI			Amortized cost			Total
Due in 1 year or less		$	2,262		$	324		$	100		$	2,686		$	2,285		$	257		$	126	$	2,668
Due in years 2-5		7,863			1,240			199			9,302			6,768			966			163		7,897
Due in years 6-10		10,354			494			21			10,869			9,177			401			27		9,605
Due after 10 years		20,288			50			—			20,338			20,262			33			—		20,295
Total loans		$	40,767		$	2,108		$	320		$	43,195		$	38,492		$	1,657		$	316	$	40,465