Note 19 Segmented Information

The Company’s reporting segments are Asia, Canadian, U.S. and Corporate and Other Divisions. Each division manages profit and loss, develops products and services, defines distribution strategies based on the profile and needs of its business and market in which it operates. The significant product and service offerings of each division are as follows:

Protection (Asia, Canadian and U.S. Divisions). Includes a variety of individual life insurance and individual and group long-term care insurance. Products are distributed through multiple distribution channels, including insurance agents, brokers, banks, financial planners and direct marketing.

Wealth and Asset Management (Asia, Canadian and U.S. Divisions). Offers pension contracts and mutual fund products and services. These businesses also offer a variety of retirement products to group benefit plans. These businesses distribute products through multiple distribution channels, including insurance agents and brokers affiliated with the Company, securities brokerage firms, financial planners, pension plan sponsors, pension plan consultants and banks.

Other Wealth (Asia, Canadian and U.S. Divisions). Includes annuities, single premium and banking products. Manulife Bank of Canada offers a variety of deposit and credit products to Canadian customers. Annuity contracts provide non-guaranteed, partially guaranteed and fully guaranteed investment options through general and separate account products. These businesses distribute products through multiple distribution channels, including insurance agents and brokers affiliated with the Company, financial planners and banks.

Corporate and Other Segment. Comprised of investment performance on assets backing capital, net of amounts allocated to operating divisions and financing costs; Property and Casualty (“P&C”) Reinsurance Business; as well as run-off reinsurance operations including variable annuities and accident and health.

Certain allocation methodologies are employed in the preparation of segmented financial information. Indirect expenses are allocated to business segments using allocation formulas applied on a consistent basis, while capital is apportioned to the Company’s business segments using a risk based methodology. The impact of changes in actuarial methods and assumptions (refer to note 8) reported in the Consolidated Statements of Income, is included in the Corporate and Other segment.

Effective January 1, 2017, the operations of Manulife Asset Management are being reflected in the respective Divisional results. These operations were reported in the Corporate and Other division for 2016.

By segment



As at and for the year ended December 31, 2017	Asia Division			Canadian Division			U.S. Division			Corporate and Other			Total
Revenue
Premium income
Life and health insurance	$	13,145		$	4,322		$	6,778		$	110		$	24,355
Annuities and pensions		2,568			443			844			–			3,855
Net premium income		15,713			4,765			7,622			110			28,210
Net investment income		4,080			4,573			10,649			65			19,367
Other revenue		1,739			3,517			6,166			(676	)		10,746
Total revenue		21,532			12,855			24,437			(501	)		58,323
Contract benefits and expenses
Life and health insurance		11,961			5,644			16,464			461			34,530
Annuities and pensions		2,051			1,813			907			–			4,771
Net benefits and claims		14,012			7,457			17,371			461			39,301
Interest expense		164			307			37			631			1,139
Other expenses		4,937			4,435			6,050			(40	)		15,382
Total contract benefits and expenses		19,113			12,199			23,458			1,052			55,822
Income (loss) before income taxes		2,419			656			979			(1,553	)		2,501
Income tax recovery (expense)		(403	)		95			(1,275	)		1,344			(239	)
Net income (loss)		2,016			751			(296	)		(209	)		2,262
Less net income (loss) attributed to:
Non-controlling interests		197			–			–			(3	)		194
Participating policyholders		(30	)		(6	)		–			–			(36	)
Net income (loss) attributed to shareholders	$	1,849		$	757		$	(296	)	$	(206	)	$	2,104
Total assets	$	105,233		$	220,755		$	383,528		$	20,017		$	729,533

As at and for the year ended December 31, 2016	Asia Division			Canadian Division			U.S. Division			Corporate and Other			Total
Revenue
Premium income
Life and health insurance	$	12,111		$	4,366		$	6,703		$	88		$	23,268
Annuities and pensions		3,474			606			284			–			4,364
Net premium income		15,585			4,972			6,987			88			27,632
Net investment income		2,143			4,255			7,980			146			14,524
Other revenue		1,566			3,480			5,591			544			11,181
Total revenue		19,294			12,707			20,558			778			53,337
Contract benefits and expenses
Life and health insurance		10,435			5,207			10,829			806			27,277
Annuities and pensions		2,913			1,179			2,765			–			6,857
Net benefits and claims		13,348			6,386			13,594			806			34,134
Interest expense		146			305			45			517			1,013
Other expenses		4,241			4,279			5,619			722			14,861
Total contract benefits and expenses		17,735			10,970			19,258			2,045			50,008
Income (loss) before income taxes		1,559			1,737			1,300			(1,267	)		3,329
Income tax recovery (expense)		(243	)		(250	)		(166	)		463			(196	)
Net income (loss)		1,316			1,487			1,134			(804	)		3,133
Less net income (loss) attributed to:
Non-controlling interests		115			–			–			28			143
Participating policyholders		60			1			–			–			61
Net income (loss) attributed to shareholders	$	1,141		$	1,486		$	1,134		$	(832	)	$	2,929
Total assets	$	92,843		$	214,820		$	386,619		$	26,399		$	720,681

The results of the Company’s business segments differ from geographic segment primarily due to the allocation of Company’s Corporate and Other division into the geographic segments to which its businesses relate.

By geographic location


As at and for the year ended December 31, 2017	Asia		Canada		U.S.		Other		Total
Revenue
Premium income
Life and health insurance	$	13,215	$	3,894	$	6,780	$	466	$	24,355
Annuities and pensions		2,568		443		844		–		3,855
Net premium income		15,783		4,337		7,624		466		28,210
Net investment income		4,258		4,642		10,407		60		19,367
Other revenue		1,632		3,187		5,911		16		10,746
Total revenue	$	21,673	$	12,166	$	23,942	$	542	$	58,323

As at and for the year ended December 31, 2016	Asia		Canada		U.S.		Other		Total
Revenue
Premium income
Life and health insurance	$	12,184	$	3,909	$	6,705	$	470	$	23,268
Annuities and pensions		3,474		606		284		–		4,364
Net premium income		15,658		4,515		6,989		470		27,632
Net investment income		2,368		4,096		7,880		180		14,524
Other revenue		1,608		3,443		6,105		25		11,181
Total revenue	$	19,634	$	12,054	$	20,974	$	675	$	53,337