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Total Invested Assets and Related Net Investment Income (Tables)

12 Months Ended

Dec. 31, 2024


			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

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, 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.

(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, 2024									December 31, 2023
		Level 1		Level 2		Level 3		Total			Level 1		Level 2		Level 3		Total
Assets
Cash, cash equivalents and short-term securities – FVTPL		$	13,243	$	630	$	—	$	13,873		$	12,316	$	857	$	—	$	13,173
Debt securities – FVTPL		463		67,126		517		68,106			564		60,214		402		61,180
Debt securities – FVOCI		505		13,193		151		13,849			651		13,475		187		14,313
Equity securities – FVTPL		6,331		3,358		211		9,900			4,220		2,737		113		7,070
Equity securities – FVOCI		—		—		74		74			—		—		68		68
Mortgages and loans – FVTPL		—		50,933		2,300		53,233			—		48,496		2,056		50,552
Mortgages and loans – FVOCI		—		2,512		13		2,525			—		1,948		—		1,948
Derivative assets – FVTPL		28		1,943		—		1,971			23		2,160		—		2,183
Other financial invested assets (excluding CLOs) – FVTPL(1)		859		211		6,880		7,950			608		201		6,074		6,883
Other financial invested assets (CLOs) – FVTPL(2)		—		5,356		—		5,356			—		3,478		—		3,478
Investment properties – FVTPL		—		—		9,290		9,290			—		—		9,723		9,723
Total invested assets measured at fair value		$	21,429	$	145,262	$	19,436	$	186,127		$	18,382	$	133,566	$	18,623	$	170,571
Investments for account of segregated fund holders – FVTPL		17,253		131,074		459		148,786			16,614		111,497		341		128,452
Total assets measured at fair value		$	38,682	$	276,336	$	19,895	$	334,913		$	34,996	$	245,063	$	18,964	$	299,023
Liabilities
Obligations for securities borrowing – FVTPL		$	4	$	235	$	—	$	239		$	3	$	220	$	—	$	223
Derivative liabilities – FVTPL		28		2,049		—		2,077			10		1,301		—		1,311
Other financial liabilities (CLOs) – FVTPL(2)		—		5,028		—		5,028			—		3,247		—		3,247
Investment contract liabilities for account of segregated fund holders – FVTPL		—		—		128,689		128,689			—		—		109,411		109,411
Total liabilities measured at fair value		$	32	$	7,312	$	128,689	$	136,033		$	13	$	4,768	$	109,411	$	114,192

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

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

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, 2024									December 31, 2023
		Level 1		Level 2		Level 3		Total			Level 1		Level 2		Level 3		Total
Assets
Cash, cash equivalents and short-term securities – FVTPL		$	13,243	$	630	$	—	$	13,873		$	12,316	$	857	$	—	$	13,173
Debt securities – FVTPL		463		67,126		517		68,106			564		60,214		402		61,180
Debt securities – FVOCI		505		13,193		151		13,849			651		13,475		187		14,313
Equity securities – FVTPL		6,331		3,358		211		9,900			4,220		2,737		113		7,070
Equity securities – FVOCI		—		—		74		74			—		—		68		68
Mortgages and loans – FVTPL		—		50,933		2,300		53,233			—		48,496		2,056		50,552
Mortgages and loans – FVOCI		—		2,512		13		2,525			—		1,948		—		1,948
Derivative assets – FVTPL		28		1,943		—		1,971			23		2,160		—		2,183
Other financial invested assets (excluding CLOs) – FVTPL(1)		859		211		6,880		7,950			608		201		6,074		6,883
Other financial invested assets (CLOs) – FVTPL(2)		—		5,356		—		5,356			—		3,478		—		3,478
Investment properties – FVTPL		—		—		9,290		9,290			—		—		9,723		9,723
Total invested assets measured at fair value		$	21,429	$	145,262	$	19,436	$	186,127		$	18,382	$	133,566	$	18,623	$	170,571
Investments for account of segregated fund holders – FVTPL		17,253		131,074		459		148,786			16,614		111,497		341		128,452
Total assets measured at fair value		$	38,682	$	276,336	$	19,895	$	334,913		$	34,996	$	245,063	$	18,964	$	299,023
Liabilities
Obligations for securities borrowing – FVTPL		$	4	$	235	$	—	$	239		$	3	$	220	$	—	$	223
Derivative liabilities – FVTPL		28		2,049		—		2,077			10		1,301		—		1,311
Other financial liabilities (CLOs) – FVTPL(2)		—		5,028		—		5,028			—		3,247		—		3,247
Investment contract liabilities for account of segregated fund holders – FVTPL		—		—		128,689		128,689			—		—		109,411		109,411
Total liabilities measured at fair value		$	32	$	7,312	$	128,689	$	136,033		$	13	$	4,768	$	109,411	$	114,192

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

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

Debt securities at FVTPL consist of the following:


As at	December 31, 2024								December 31, 2023
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Canadian federal government	$	—	$	6,790	$	13	$	6,803	$	—	$	5,147	$	14	$	5,161
Canadian provincial and municipal government	—		15,302		—		15,302		—		13,694		—		13,694
U.S. government and agency	463		163		—		626		564		148		—		712
Other foreign government	—		3,762		34		3,796		—		3,329		—		3,329
Corporate	—		32,929		465		33,394		—		31,809		340		32,149
Asset-backed securities:
Commercial mortgage-backed securities	—		2,163		—		2,163		—		2,029		5		2,034
Residential mortgage-backed securities	—		3,539		—		3,539		—		2,335		—		2,335
Collateralized debt obligations	—		352		1		353		—		188		—		188
Other	—		2,126		4		2,130		—		1,535		43		1,578
Total debt securities at FVTPL	$	463	$	67,126	$	517	$	68,106	$	564	$	60,214	$	402	$	61,180

Debt securities at FVOCI consist of the following:


As at	December 31, 2024								December 31, 2023
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Canadian federal government	$	—	$	734	$	—	$	734	$	—	$	849	$	—	$	849
Canadian provincial and municipal government	—		353		—		353		—		557		—		557
U.S. government and agency	501		8		—		509		651		7		—		658
Other foreign government	4		397		12		413		—		462		11		473
Corporate	—		7,529		90		7,619		—		7,905		75		7,980
Asset-backed securities:
Commercial mortgage-backed securities	—		1,084		—		1,084		—		1,017		—		1,017
Residential mortgage-backed securities	—		1,159		11		1,170		—		944		—		944
Collateralized debt obligations	—		673		38		711		—		767		13		780
Other	—		1,256		—		1,256		—		967		88		1,055
Total debt securities at FVOCI	$	505	$	13,193	$	151	$	13,849	$	651	$	13,475	$	187	$	14,313

Mortgages and loans at FVTPL consist of the following:


As at	December 31, 2024								December 31, 2023
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Mortgages:
Retail	$	—	$	2,472	$	12	$	2,484	$	—	$	2,524	$	12	$	2,536
Office	—		2,602		12		2,614		—		2,717		—		2,717
Multi-family residential	—		2,887		—		2,887		—		2,986		—		2,986
Industrial	—		3,447		—		3,447		—		2,804		—		2,804
Other	—		1,034		—		1,034		—		1,017		—		1,017
Corporate loans	—		38,491		2,276		40,767		—		36,448		2,044		38,492
Total mortgages and loans at FVTPL	$	—	$	50,933	$	2,300	$	53,233	$	—	$	48,496	$	2,056	$	50,552

Mortgages and loans at FVOCI consist of the following:


As at	December 31, 2024								December 31, 2023
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Mortgages:
Retail	$	—	$	83	$	—	$	83	$	—	$	22	$	—	$	22
Office	—		19		—		19		—		37		—		37
Multi-family residential	—		79		—		79		—		83		—		83
Industrial	—		236		—		236		—		149		—		149

Corporate loans	—		2,095		13		2,108		—		1,657		—		1,657
Total mortgages and loans at FVOCI	$	—	$	2,512	$	13	$	2,525	$	—	$	1,948	$	—	$	1,948

Schedule of interest and other investment income


For the years ended	December 31, 2024												December 31, 2023
	Financial Instruments at FVOCI			Financial Instruments at FVTPL			Other(1)			Total			Financial Instruments at FVOCI			Financial Instruments at FVTPL			Other(1)			Total
Interest income (expense):
Cash, cash equivalents and short-term investments		$	—		$	537		$	—		$	537		$	—		$	473		$	—		$	473
Debt securities		604			2,894			—			3,498			563			2,663			—			3,226
Mortgages and loans		138			2,661			64			2,863			103			2,503			74			2,680
Derivative investments		—			(38)			—			(38)			—			69			—			69
Other financial invested assets		1			362			—			363			1			247			—			248
Other financial liabilities		—			(299)			(165)			(464)			—			(217)			(154)			(371)
Total interest income (expense)		743			6,117			(101)			6,759			667			5,738			(80)			6,325
Dividend and other investment income:
Equity securities		—			254			—			254			—			212			—			212
Other financial invested assets		—			313			—			313			—			226			—			226
Total dividend and other investment income		—			567			—			567			—			438			—			438
Net realized and unrealized gains (losses):
Cash, cash equivalents and short-term investments		—			8			—			8			—			—			—			—
Debt securities		162			(824)			—			(662)			463			2,555			—			3,018
Equity securities		—			1,218			—			1,218			(1)			397			—			396
Mortgages and loans		30			650			—			680			40			1,573			—			1,613
Derivative investments		—			(1,347)			—			(1,347)			—			933			—			933
Other financial invested assets		1			406			—			407			160			(249)			—			(89)
Other financial liabilities		—			(44)			—			(44)			—			25			—			25
Total net realized and unrealized gains (losses)		193			67			—			260			662			5,234			—			5,896
Provision for credit losses		3			—			(7)			(4)			(12)			—			(2)			(14)
Net investment income (loss) from financial instruments		$	939		$	6,751		$	(108)		$	7,582		$	1,317		$	11,410		$	(82)		$	12,645
Net Investment income (loss) from non-financial instruments:
Investment properties rental income		$	—		$	—		$	664		$	664		$	—		$	—		$	649		$	649
Investment properties expenses		—			—			(265)			(265)			—			—			(270)			(270)
Investment expenses and taxes		—			—			(278)			(278)			—			—			(283)			(283)
Fair value changes on investment properties		—			—			(383)			(383)			—			—			(486)			(486)
Other investment income (loss)		—			—			323			323			—			—			49			49
Foreign exchange gains (losses)		—			—			116			116			—			—			(126)			(126)
Net investment income (loss) from non-financial instruments		$	—		$	—		$	177		$	177		$	—		$	—		$	(467)		$	(467)
Total Net investment income (loss)(2)		$	939		$	6,751		$	69		$	7,759		$	1,317		$	11,410		$	(549)		$	12,178

(1) Primarily includes investment income (loss) on financial instruments carried at amortized cost, investment properties, and equity method investments.

(2) Net investment income (loss) recognized in income is $7,415 (December 31, 2023 — $11,586) and net investment income (loss) recognized in OCI is $344 (December 31, 2023 — $592)

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


For the year ended December 31, 2024	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		$	—		$	—		$	5,894		$	1,521	$	7,415
Net investment income (loss) recognized in OCI		—			—			12			332		344
Total net investment income (loss)		—			—			5,906			1,853		7,759
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		(4,474)			190			(4,284)			—		(4,284)
Impact of change in discount rate on fulfilment cash flows excluding where measured at locked-in rates and effect of changes in financial risk		1,683			(135)			1,548			—		1,548
Application of risk mitigation option(1)		225			—			225			—		225
Changes in fair value of underlying items for contracts with direct participation features (excluding segregated funds)		(2,642)			—			(2,642)			—		(2,642)
Foreign exchange gains (losses)		49			—			49			—		49
Other		20			(4)			16			—		16
Total insurance finance income (expenses) recognized in income		(5,139)			51			(5,088)			—		(5,088)
Decrease (increase) in investment contract liabilities		—			—			—			(393)		(393)
Net investment result		$	—		$	—		$	818		$	1,460	$	2,278
Net investment result recognized in net income		$	—		$	—		$	806		$	1,128	$	1,934
Net investment result recognized in OCI		$	—		$	—		$	12		$	332	$	344


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)		(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

(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.

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,	2024					2023
	Assets		Liabilities			Assets		Liabilities
Interest rate contracts:


Derivative investments	$	392		$	(822)	$	418	$	(667)
Total interest rate derivatives	$	392		$	(822)	$	418	$	(667)
Foreign exchange contracts:

Designated as cash flow hedges	$	8		$	(3)	$	2	$	(19)
Derivative investments	1,403			(1,195)		1,674		(614)
Total foreign exchange derivatives	$	1,411		$	(1,198)	$	1,676	$	(633)
Other contracts:

Designated as cash flow hedges	$	43		$	—	$	17	$	—
Derivative investments	125			(57)		72		(11)
Total other contracts	$	168		$	(57)	$	89	$	(11)
Total derivative contracts	$	1,971		$	(2,077)	$	2,183	$	(1,311)

Schedule of hedge ineffectiveness

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


For the years ended December 31,		2024			2023
Hedging risks	Hedged Item	Accumulated other comprehensive income from active hedges				Accumulated other comprehensive income from active hedges
Foreign exchange risk(1)	Variable rate liabilities(2)		$	14			$	9
Equity risk	Share-based payment(3)		$	(10)			$	(10)

(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, 2024
Foreign exchange risk(1)	Variable rate liabilities(2)		$	(5)		$	5		$	—		$	69		$	(76)
Equity risk	Share-based payment(3)		$	(42)		$	43		$	1		$	57		$	(41)
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)

(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,	2024			2023
Cash flow hedges:
Balance, beginning of year		$	(1)		$	(18)
Effective portion of changes in fair value:
Foreign currency risk(1)		69			(17)
Equity price risk		57			7
Net amount reclassified to income (loss):
Foreign currency risk(1)		(76)			37
Equity price risk		(41)			(3)
Related tax		(4)			(7)
Balance, end of year		$	4		$	(1)

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,	2024										2023

	Balance, beginning of year			Other comprehensive income (loss)			Balance, end of year			Balance, beginning of year		Other comprehensive income (loss)	Other		Balance, end of year
Items that may be reclassified subsequently to income:
Unrealized foreign currency translation gains (losses), net of hedging activities		$	1,350		$	1,346		$	2,696				$	1,689	$	(339)	$	—		$	1,350
Unrealized gains (losses) on FVOCI assets		(354)			104			(250)					(839)		485		—			(354)
Unrealized gains (losses) on cash flow hedges		(1)			5			4					(18)		17		—			(1)
Share of other comprehensive income (loss) in joint ventures and associates		(151)			201			50					(107)		(44)		—			(151)
Items that will not be reclassified subsequently to income:
Remeasurement of defined benefit plans		(217)			19			(198)					(149)		(105)		37		(1)	(217)
Share of other comprehensive income (loss) in joint ventures and associates		2			(7)			(5)					(5)		7		—			2
Revaluation surplus on transfers to investment properties		143			1			144					143		—		—			143
Total		$	772		$	1,669		$	2,441				$	714	$	21	$	37		$	772
Total attributable to:
Participating account		$	6		$	(3)		$	3				$	(3)	$	9	$	—		$	6
Non-controlling interests		1			10			11					4		(3)		—			1
Shareholders		765			1,662			2,427					713		15		37			765
Total		$	772		$	1,669		$	2,441				$	714	$	21	$	37		$	772

(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.