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Invested Assets and Investment Income (Tables) | 12 Months Ended
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Dec. 31, 2018
Text block [abstract] |
Schedule of Carrying Values and Fair Values of Invested Assets | (a) Carrying values and fair values of invested assets
As at December 31, 2018 |  | FVTPL(1) |  |  | AFS(2) |  |  | Other(3) |  |  | Total carrying value(4) |  |  | Total fair value(5) |
Cash and short-term securities(6) |  | $ | 1,080 |  |  | $ | 10,163 |  |  | $ | 4,972 |  |  | $ | 16,215 |  |  | $ | 16,215 |
Debt securities(7) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Canadian government and agency |  |  | 16,445 |  |  |  | 7,342 |  |  |  | – |  |  |  | 23,787 |  |  |  | 23,787 |
U.S. government and agency |  |  | 11,934 |  |  |  | 13,990 |  |  |  | – |  |  |  | 25,924 |  |  |  | 25,924 |
Other government and agency |  |  | 16,159 |  |  |  | 4,101 |  |  |  | – |  |  |  | 20,260 |  |  |  | 20,260 |
Corporate |  |  | 107,425 |  |  |  | 5,245 |  |  |  | – |  |  |  | 112,670 |  |  |  | 112,670 |
Mortgage/asset-backed securities |  |  | 2,774 |  |  |  | 179 |  |  |  | – |  |  |  | 2,953 |  |  |  | 2,953 |
Public equities |  |  | 16,721 |  |  |  | 2,458 |  |  |  | – |  |  |  | 19,179 |  |  |  | 19,179 |
Mortgages |  |  | – |  |  |  | – |  |  |  | 48,363 |  |  |  | 48,363 |  |  |  | 48,628 |
Private placements |  |  | – |  |  |  | – |  |  |  | 35,754 |  |  |  | 35,754 |  |  |  | 36,103 |
Policy loans |  |  | – |  |  |  | – |  |  |  | 6,446 |  |  |  | 6,446 |  |  |  | 6,446 |
Loans to Bank clients |  |  | – |  |  |  | – |  |  |  | 1,793 |  |  |  | 1,793 |  |  |  | 1,797 |
Real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Own use property(8) |  |  | – |  |  |  | – |  |  |  | 2,016 |  |  |  | 2,016 |  |  |  | 3,179 |
Investment property |  |  | – |  |  |  | – |  |  |  | 10,761 |  |  |  | 10,761 |  |  |  | 10,761 |
Other invested assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Alternative long-duration assets(9),(10) |  |  | 14,720 |  |  |  | 101 |  |  |  | 8,617 |  |  |  | 23,438 |  |  |  | 24,211 |
Various other (11) |  |  | 151 |  |  |  | – |  |  |  | 3,954 |  |  |  | 4,105 |  |  |  | 4,104 |
Total invested assets |  | $ | 187,409 |  |  | $ | 43,579 |  |  | $ | 122,676 |  |  | $ | 353,664 |  |  | $ | 356,217 |
As at December 31, 2017 |  |  | FVTPL(1) |  |  |  | AFS(2) |  |  |  | Other(3) |  |  |  | Total carrying value |  |  |  | Total fair value(5) |
Cash and short-term securities(6) |  | $ | 439 |  |  | $ | 11,429 |  |  | $ | 4,097 |  |  | $ | 15,965 |  |  | $ | 15,965 |
Debt securities(7) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Canadian government and agency |  |  | 17,886 |  |  |  | 4,892 |  |  |  | – |  |  |  | 22,778 |  |  |  | 22,778 |
U.S. government and agency |  |  | 12,497 |  |  |  | 13,472 |  |  |  | – |  |  |  | 25,969 |  |  |  | 25,969 |
Other government and agency |  |  | 16,838 |  |  |  | 2,988 |  |  |  | – |  |  |  | 19,826 |  |  |  | 19,826 |
Corporate |  |  | 96,785 |  |  |  | 5,366 |  |  |  | – |  |  |  | 102,151 |  |  |  | 102,151 |
Mortgage/asset-backed securities |  |  | 3,018 |  |  |  | 258 |  |  |  | – |  |  |  | 3,276 |  |  |  | 3,276 |
Public equities |  |  | 18,473 |  |  |  | 3,072 |  |  |  | – |  |  |  | 21,545 |  |  |  | 21,545 |
Mortgages |  |  | – |  |  |  | – |  |  |  | 44,742 |  |  |  | 44,742 |  |  |  | 46,065 |
Private placements |  |  | – |  |  |  | – |  |  |  | 32,132 |  |  |  | 32,132 |  |  |  | 34,581 |
Policy loans |  |  | – |  |  |  | – |  |  |  | 5,808 |  |  |  | 5,808 |  |  |  | 5,808 |
Loans to Bank clients |  |  | – |  |  |  | – |  |  |  | 1,737 |  |  |  | 1,737 |  |  |  | 1,742 |
Real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Own use property(8) |  |  | – |  |  |  | – |  |  |  | 1,281 |  |  |  | 1,281 |  |  |  | 2,448 |
Investment property |  |  | – |  |  |  | – |  |  |  | 12,529 |  |  |  | 12,529 |  |  |  | 12,529 |
Other invested assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Alternative long-duration assets(9),(10) |  |  | 12,018 |  |  |  | 88 |  |  |  | 8,624 |  |  |  | 20,730 |  |  |  | 21,053 |
Various other (11) |  |  | 142 |  |  |  | – |  |  |  | 3,611 |  |  |  | 3,753 |  |  |  | 3,752 |
Total invested assets |  | $ | 178,096 |  |  | $ | 41,565 |  |  | $ | 114,561 |  |  | $ | 334,222 |  |  | $ | 339,488 |
(1) | FVTPL classification was elected for securities backing insurance contract liabilities to substantially reduce any accounting mismatch arising from changes in the fair value of these assets and changes in the value of the related insurance contract liabilities. If this election had not been made and instead the AFS classification was selected, there would be an accounting mismatch because changes in insurance contract liabilities are recognized in net income rather than in OCI.
(2) | Securities that are designated as AFS are not actively traded by the Company but sales do occur as circumstances warrant. Such sales result in a reclassification of any accumulated unrealized gain (loss) in AOCI to net income as a realized gain (loss).
(3) | Primarily includes assets classified as loans and carried at amortized cost, own use properties, investment properties, equity method accounted investments, oil and gas investments, and leveraged leases. Refer to note 1(e) for further details regarding accounting policy.
(4) | Fixed income invested assets presented above include debt securities, mortgages, private placements and approximately $600 other invested assets, which primarily have contractual cash flows that qualify as SPPI. Fixed income invested assets which do not have SPPI qualifying cash flows as at December 31, 2018 include debt securities, private placements and other invested assets with fair values of $105, $230 and $465, respectively. The change in the fair value of these invested assets during the year amounts to $21.
(5) | The methodologies used in determining fair values of invested assets are described in note 1(c) and note 3(g).
(6) | Includes short-term securities with maturities of less than one year at acquisition amounting to $2,530 (2017 – $2,737), cash equivalents with maturities of less than 90 days at acquisition amounting to $8,713 (2017 – $9,131) and cash of $4,972 (2017 – $4,097).
(7) | Debt securities include securities which were acquired with maturities of less than one year and less than 90 days of $870 and $40, respectively (2017 – $1,768 and $161, respectively).
(8) | Includes accumulated depreciation of $391 (2017 – $389).
(9) | Alternative long-duration assets (“ALDA”) include investments in private equity of $6,769, power and infrastructure of $7,970, oil and gas of $3,416, timber and agriculture of $4,493 and various other invested assets of $791 (2017 – $4,959, $7,355, $2,813, $5,033 and $570, respectively). Included in power and infrastructure are a group of investments in hydro-electric power of $426 for which the Company has an approved plan of sale. Sale of these investments is expected to be completed within one year. This disposal group is classified as held for sale and measured at the lower of carrying amount and fair value less costs to sell.
(10) | During 2018, the Company sold the following invested assets to related parties: $1,422 of power and infrastructure ALDA to the John Hancock Infrastructure Master Fund L.P. in the U.S. an associate of the Company which is a structured entity based on partnership voting rights, the Company provides management services to the fund and owns less than 1% of the ownership interest; $510 (2017 – $395) of U.S. commercial real estate to the Manulife US Real Estate Investment Trust in Singapore, an associate of the Company which is a structured entity based on unitholder voting rights, the Company provides management services to the trust and owns approximately 8.5% (2017 – 9.5%) of its units; and $1,314 of U.S. commercial real estate to three newly established joint ventures which are structured entities based on voting rights. During 2017, $619 of U.S. commercial real estate was sold to the Hancock US Real Estate Fund, L.P., an associate of the Company which is a structured entity based on partnership voting rights. The Company provides management services to the fund and owns approximately 11.7% of its partnership interests.
(11) | Includes $3,575 (2017 – $3,273) of leveraged leases. Refer to note 1(e) regarding accounting policy.
Schedule of Other Invested Assets Include Investments in Associates and Joint Ventures Accounted Using Equity Method | Other invested assets include investments in associates and joint ventures which are accounted for using the equity method of accounting as presented in the following table.
|  | 2018 |  |  |  |  |  | 2017 |
As at December 31, |  | Carrying value |  |  | % of total |  |  |  |  |  | Carrying value |  |  | % of total |
Leveraged leases |  | $ | 3,575 |  |  |  | 51 |  |  |  |  |  |  | $ | 3,273 |  |  |  | 56 |
Timber and agriculture |  |  | 599 |  |  |  | 9 |  |  |  |  |  |  |  | 451 |  |  |  | 8 |
Real estate |  |  | 725 |  |  |  | 11 |  |  |  |  |  |  |  | 498 |  |  |  | 9 |
Other |  |  | 1,959 |  |  |  | 29 |  |  |  |  |  |  |  | 1,535 |  |  |  | 27 |
Total |  | $ | 6,858 |  |  |  | 100 |  |  |  |  |  |  | $ | 5,757 |  |  |  | 100 |
Schedule of Investment Income | (c) Investment income
For the year ended December 31, 2018 |  | FVTPL |  |  | AFS |  |  | Other(1) |  |  | Total |
Cash and short-term securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  | $ | 18 |  |  | $ | 250 |  |  | $ | – |  |  | $ | 268 |
Gains (losses)(2) |  |  | (74 | ) |  |  | 62 |  |  |  | – |  |  |  | (12 | )
Debt securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | 5,432 |  |  |  | 646 |  |  |  | – |  |  |  | 6,078 |
Gains (losses)(2) |  |  | (5,993 | ) |  |  | (310 | ) |  |  | – |  |  |  | (6,303 | )
Recovery (impairment loss), net |  |  | 18 |  |  |  | – |  |  |  | – |  |  |  | 18 |
Public equities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Dividend income |  |  | 484 |  |  |  | 72 |  |  |  | – |  |  |  | 556 |
Gains (losses)(2) |  |  | (1,596 | ) |  |  | 330 |  |  |  | – |  |  |  | (1,266 | )
Impairment loss |  |  | – |  |  |  | (43 | ) |  |  | – |  |  |  | (43 | )
Mortgages |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | – |  |  |  | – |  |  |  | 1,824 |  |  |  | 1,824 |
Gains (losses)(2) |  |  | – |  |  |  | – |  |  |  | 56 |  |  |  | 56 |
Provision, net |  |  | – |  |  |  | – |  |  |  | (8 | ) |  |  | (8 | )
Private placements |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | – |  |  |  | – |  |  |  | 1,729 |  |  |  | 1,729 |
Gains (losses)(2) |  |  | – |  |  |  | – |  |  |  | (83 | ) |  |  | (83 | )
Impairment loss, net |  |  | – |  |  |  | – |  |  |  | (10 | ) |  |  | (10 | )
Policy loans |  |  | – |  |  |  | – |  |  |  | 371 |  |  |  | 371 |
Loans to Bank clients |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | – |  |  |  | – |  |  |  | 81 |  |  |  | 81 |
Provision, net |  |  | – |  |  |  | – |  |  |  | (1 | ) |  |  | (1 | )
Real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Rental income, net of depreciation(3) |  |  | – |  |  |  | – |  |  |  | 515 |  |  |  | 515 |
Gains (losses)(2) |  |  | – |  |  |  | – |  |  |  | 445 |  |  |  | 445 |
Impairment loss |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |
Derivatives |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income, net |  |  | 689 |  |  |  | – |  |  |  | (33 | ) |  |  | 656 |
Gains (losses)(2) |  |  | (2,251 | ) |  |  | – |  |  |  | 27 |  |  |  | (2,224 | )
Other invested assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | – |  |  |  | – |  |  |  | 74 |  |  |  | 74 |
Oil and gas, timber, agriculture and other income |  |  | – |  |  |  | – |  |  |  | 1,758 |  |  |  | 1,758 |
Gains (losses)(2) |  |  | 283 |  |  |  | – |  |  |  | (110 | ) |  |  | 173 |
Impairment loss, net |  |  | (2 | ) |  |  | (4 | ) |  |  | (114 | ) |  |  | (120 | )
Total investment income |  | $ | (2,992 | ) |  | $ | 1,003 |  |  | $ | 6,521 |  |  | $ | 4,532 |
Investment income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  | $ | 6,139 |  |  | $ | 896 |  |  | $ | 4,046 |  |  | $ | 11,081 |
Dividend, rental and other income |  |  | 484 |  |  |  | 72 |  |  |  | 2,273 |  |  |  | 2,829 |
Impairments, provisions and recoveries, net |  |  | 16 |  |  |  | (47 | ) |  |  | (133 | ) |  |  | (164 | )
Other |  |  | (271 | ) |  |  | 58 |  |  |  | 27 |  |  |  | (186 | )
|  |  | 6,368 |  |  |  | 979 |  |  |  | 6,213 |  |  |  | 13,560 |
Realized and unrealized gains (losses) on assets supporting insurance and investment contract liabilities and on macro equity hedges |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Debt securities |  |  | (6,012 | ) |  |  | 18 |  |  |  | – |  |  |  | (5,994 | )
Public equities |  |  | (1,454 | ) |  |  | 10 |  |  |  | – |  |  |  | (1,444 | )
Mortgages |  |  | – |  |  |  | – |  |  |  | 55 |  |  |  | 55 |
Private placements |  |  | – |  |  |  | – |  |  |  | (83 | ) |  |  | (83 | )
Real estate |  |  | – |  |  |  | – |  |  |  | 449 |  |  |  | 449 |
Other invested assets |  |  | 357 |  |  |  | (4 | ) |  |  | (140 | ) |  |  | 213 |
Derivatives, including macro equity hedging program |  |  | (2,251 | ) |  |  | – |  |  |  | 27 |  |  |  | (2,224 | )
|  |  | (9,360 | ) |  |  | 24 |  |  |  | 308 |  |  |  | (9,028 | )
Total investment income |  | $ | (2,992 | ) |  | $ | 1,003 |  |  | $ | 6,521 |  |  | $ | 4,532 |
For the year ended December 31, 2017 |  | FVTPL |  |  | AFS |  |  | Other(1) |  |  | Total |
Cash and short-term securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  | $ | 7 |  |  | $ | 153 |  |  | $ | – |  |  | $ | 160 |
Gains (losses)(2) |  |  | 22 |  |  |  | (47 | ) |  |  | – |  |  |  | (25 | )
Debt securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | 5,102 |  |  |  | 577 |  |  |  | – |  |  |  | 5,679 |
Gains (losses)(2) |  |  | 3,690 |  |  |  | (205 | ) |  |  | – |  |  |  | 3,485 |
Recovery (impairment loss), net |  |  | 16 |  |  |  | (1 | ) |  |  | – |  |  |  | 15 |
Public equities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Dividend income |  |  | 524 |  |  |  | 79 |  |  |  | – |  |  |  | 603 |
Gains (losses)(2) |  |  | 2,372 |  |  |  | 226 |  |  |  | – |  |  |  | 2,598 |
Impairment loss |  |  | – |  |  |  | (14 | ) |  |  | – |  |  |  | (14 | )
Mortgages |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | – |  |  |  | – |  |  |  | 1,685 |  |  |  | 1,685 |
Gains (losses)(2) |  |  | – |  |  |  | – |  |  |  | 69 |  |  |  | 69 |
Provision, net |  |  | – |  |  |  | – |  |  |  | (32 | ) |  |  | (32 | )
Private placements |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | – |  |  |  | – |  |  |  | 1,553 |  |  |  | 1,553 |
Gains (losses)(2) |  |  | – |  |  |  | – |  |  |  | 43 |  |  |  | 43 |
Impairment loss, net |  |  | – |  |  |  | – |  |  |  | 10 |  |  |  | 10 |
Policy loans |  |  | – |  |  |  | – |  |  |  | 365 |  |  |  | 365 |
Loans to Bank clients |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | – |  |  |  | – |  |  |  | 68 |  |  |  | 68 |
Real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Rental income, net of depreciation(3) |  |  | – |  |  |  | – |  |  |  | 517 |  |  |  | 517 |
Gains (losses)(2) |  |  | – |  |  |  | – |  |  |  | 341 |  |  |  | 341 |
Impairment loss |  |  | – |  |  |  | – |  |  |  | (4 | ) |  |  | (4 | )
Derivatives |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income, net |  |  | 809 |  |  |  | – |  |  |  | 84 |  |  |  | 893 |
Gains (losses)(2) |  |  | (1,029 | ) |  |  | – |  |  |  | 84 |  |  |  | (945 | )
Other invested assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | – |  |  |  | – |  |  |  | 174 |  |  |  | 174 |
Oil and gas, timber, agriculture and other income |  |  | – |  |  |  | – |  |  |  | 1,690 |  |  |  | 1,690 |
Gains (losses)(2) |  |  | 441 |  |  |  | (7 | ) |  |  | 50 |  |  |  | 484 |
Impairment loss, net |  |  | – |  |  |  | – |  |  |  | (45 | ) |  |  | (45 | )
Total investment income |  | $ | 11,954 |  |  | $ | 761 |  |  | $ | 6,652 |  |  | $ | 19,367 |
Investment income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  | $ | 5,918 |  |  | $ | 730 |  |  | $ | 3,929 |  |  | $ | 10,577 |
Dividend, rental and other income |  |  | 524 |  |  |  | 79 |  |  |  | 2,207 |  |  |  | 2,810 |
Impairments, provisions and recoveries, net |  |  | 16 |  |  |  | (15 | ) |  |  | (71 | ) |  |  | (70 | )
Other |  |  | 460 |  |  |  | (51 | ) |  |  | (77 | ) |  |  | 332 |
|  |  | 6,918 |  |  |  | 743 |  |  |  | 5,988 |  |  |  | 13,649 |
Realized and unrealized gains (losses) on assets supporting insurance and investment contract liabilities and on macro equity hedges |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Debt securities |  |  | 3,694 |  |  |  | (8 | ) |  |  | – |  |  |  | 3,686 |
Public equities |  |  | 2,200 |  |  |  | 35 |  |  |  | – |  |  |  | 2,235 |
Mortgages |  |  | – |  |  |  | – |  |  |  | 69 |  |  |  | 69 |
Private placements |  |  | – |  |  |  | – |  |  |  | 40 |  |  |  | 40 |
Real estate |  |  | – |  |  |  | – |  |  |  | 350 |  |  |  | 350 |
Other invested assets |  |  | 329 |  |  |  | (9 | ) |  |  | 121 |  |  |  | 441 |
Derivatives, including macro equity hedging program |  |  | (1,187 | ) |  |  | – |  |  |  | 84 |  |  |  | (1,103 | )
|  |  | 5,036 |  |  |  | 18 |  |  |  | 664 |  |  |  | 5,718 |
Total investment income |  | $ | 11,954 |  |  | $ | 761 |  |  | $ | 6,652 |  |  | $ | 19,367 |
(1) | Primarily includes investment income on loans carried at amortized cost, own use properties, investment properties, derivative and hedging instruments in cash flow hedging relationships, equity method accounted investments, oil and gas investments, and leveraged leases.
(2) | Includes net realized and unrealized gains (losses) for financial instruments at FVTPL, real estate investment properties, and other invested assets measured at fair value. Also includes net realized gains (losses) for financial instruments at AFS and other invested assets carried at amortized cost.
(3) | Rental income from investment properties is net of direct operating expenses.
Summary of Total Investment Expenses | The following table presents the Company’s total investment expenses.
For the years ended December 31, |  | 2018 |  |  | 2017 |
Related to invested assets |  | $ | 638 |  |  | $ | 625 |
Related to segregated, mutual and other funds |  |  | 1,070 |  |  |  | 1,048 |
Total investment expenses |  | $ | 1,708 |  |  | $ | 1,673 |
Summary of Rental Income and Direct Operating Expenses of Investment Properties | The following table presents the rental income and direct operating expenses of investment properties.
For the years ended December 31, |  | 2018 |  |  | 2017 |
Rental income from investment properties |  | $ | 1,013 |  |  | $ | 1,120 |
Direct operating expenses of rental investment properties |  |  | (582 | ) |  |  | (694 | )
Total |  | $ | 431 |  |  | $ | 426 |
Summary of Securitized Assets and Secured Borrowing Liabilities | Securitized assets and secured borrowing liabilities
As at December 31, 2018 |  | Securitized assets |  |  |  |
Securitization program |  | Securitized mortgages |  |  | Restricted cash and short-term securities |  |  | Total |  |  | Secured borrowing liabilities(2) |
HELOC securitization(1) |  | $ | 2,285 |  |  |  | $ 8 |  |  | $ | 2,293 |  |  |  | $ 2,250 |
CMB securitization |  |  | 1,525 |  |  |  | – |  |  |  | 1,525 |  |  |  | 1,524 |
Total |  | $ | 3,810 |  |  |  | $ 8 |  |  | $ | 3,818 |  |  |  | $ 3,774 |
As at December 31, 2017 |  | Securitized assets |  |  |  |
Securitization program |  | Securitized mortgages |  |  | Restricted cash and short-term securities |  |  | Total |  |  | Secured borrowing liabilities(2) |
HELOC securitization(1) |  | $ | 2,024 |  |  |  | $ 8 |  |  | $ | 2,032 |  |  |  | $ 2,000 |
CMB securitization |  |  | 1,480 |  |  |  | – |  |  |  | 1,480 |  |  |  | 1,523 |
Total |  | $ | 3,504 |  |  |  | $ 8 |  |  | $ | 3,512 |  |  |  | $ 3,523 |
(1) | Manulife Bank, a MFC subsidiary, securitizes a portion of its HELOC receivables through Platinum Canadian Mortgage Trust (“PCMT”), and Platinum Canadian Mortgage Trust II (“PCMT II”). PCMT funds the purchase of the co-ownership interests from Manulife Bank by issuing term notes collateralized by an underlying pool of CMHC insured HELOCs to institutional investors. PCMT II funds the purchase of the co-ownership interests from Manulife Bank by issuing term notes collateralized by an underlying pool of uninsured HELOCs to institutional investors. The restricted cash balance for the HELOC securitization reflects a cash reserve fund established in relation to the transactions. The reserve will be drawn upon only in the event of insufficient cash flows from the underlying HELOCs to satisfy the secured borrowing liability.
(2) | Secured borrowing liabilities primarily comprise of Series 2011-1 notes with a floating rate which are expected to mature on December 15, 2021, and the Series 2016-1 notes with a floating rate which are expected to mature on May 15, 2022. Manulife Bank also securitizes insured amortizing mortgages under the National Housing Act Mortgage-Backed Securities (“NHA MBS”) program sponsored by CMHC. Manulife Bank participates in CMB programs by selling NHA MBS securities to Canada Housing Trust (“CHT”), as a source of fixed rate funding.
Summary of Invested Assets and Segregated Funds Net Assets, Measured at Fair Value | The following table presents the fair values of invested assets and segregated funds net assets measured at fair value categorized by the fair value hierarchy.
As at December 31, 2018 |  | Total fair value |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Cash and short-term securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FVTPL |  | $ | 1,080 |  |  | $ | – |  |  | $ | 1,080 |  |  | $ | – |
AFS |  |  | 10,163 |  |  |  | – |  |  |  | 10,163 |  |  |  | – |
Other |  |  | 4,972 |  |  |  | 4,972 |  |  |  | – |  |  |  | – |
Debt securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FVTPL |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Canadian government and agency |  |  | 16,445 |  |  |  | – |  |  |  | 16,445 |  |  |  | – |
U.S. government and agency |  |  | 11,934 |  |  |  | – |  |  |  | 11,934 |  |  |  | – |
Other government and agency |  |  | 16,159 |  |  |  | – |  |  |  | 15,979 |  |  |  | 180 |
Corporate |  |  | 107,425 |  |  |  | – |  |  |  | 106,641 |  |  |  | 784 |
Residential mortgage/asset-backed securities |  |  | 13 |  |  |  | – |  |  |  | 6 |  |  |  | 7 |
Commercial mortgage/asset-backed securities |  |  | 1,344 |  |  |  | – |  |  |  | 1,344 |  |  |  | – |
Other securitized assets |  |  | 1,417 |  |  |  | – |  |  |  | 1,417 |  |  |  | – |
AFS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Canadian government and agency |  |  | 7,342 |  |  |  | – |  |  |  | 7,342 |  |  |  | – |
U.S. government and agency |  |  | 13,990 |  |  |  | – |  |  |  | 13,990 |  |  |  | – |
Other government and agency |  |  | 4,101 |  |  |  | – |  |  |  | 4,064 |  |  |  | 37 |
Corporate |  |  | 5,245 |  |  |  | – |  |  |  | 5,125 |  |  |  | 120 |
Residential mortgage/asset-backed securities |  |  | 2 |  |  |  | – |  |  |  | – |  |  |  | 2 |
Commercial mortgage/asset-backed securities |  |  | 128 |  |  |  | – |  |  |  | 128 |  |  |  | – |
Other securitized assets |  |  | 49 |  |  |  | – |  |  |  | 49 |  |  |  | – |
Public equities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FVTPL |  |  | 16,721 |  |  |  | 16,718 |  |  |  | – |  |  |  | 3 |
AFS |  |  | 2,458 |  |  |  | 2,456 |  |  |  | 2 |  |  |  | – |
Real estate – investment property(1) |  |  | 10,761 |  |  |  | – |  |  |  | – |  |  |  | 10,761 |
Other invested assets(2) |  |  | 17,562 |  |  |  | – |  |  |  | – |  |  |  | 17,562 |
Segregated funds net assets(3) |  |  | 313,209 |  |  |  | 276,178 |  |  |  | 32,584 |  |  |  | 4,447 |
Total |  | $ | 562,520 |  |  | $ | 300,324 |  |  | $ | 228,293 |  |  | $ | 33,903 |
As at December 31, 2017 |  | Total fair value |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Cash and short-term securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FVTPL |  | $ | 439 |  |  | $ | – |  |  | $ | 439 |  |  | $ | – |
AFS |  |  | 11,429 |  |  |  | – |  |  |  | 11,429 |  |  |  | – |
Other |  |  | 4,097 |  |  |  | 4,097 |  |  |  | – |  |  |  | – |
Debt securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FVTPL |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Canadian government and agency |  |  | 17,886 |  |  |  | – |  |  |  | 17,886 |  |  |  | – |
U.S. government and agency |  |  | 12,497 |  |  |  | – |  |  |  | 12,497 |  |  |  | – |
Other government and agency |  |  | 16,838 |  |  |  | – |  |  |  | 16,599 |  |  |  | 239 |
Corporate |  |  | 96,785 |  |  |  | 2 |  |  |  | 96,073 |  |  |  | 710 |
Residential mortgage/asset-backed securities |  |  | 8 |  |  |  | – |  |  |  | 7 |  |  |  | 1 |
Commercial mortgage/asset-backed securities |  |  | 1,099 |  |  |  | – |  |  |  | 1,099 |  |  |  | – |
Other securitized assets |  |  | 1,911 |  |  |  | – |  |  |  | 1,886 |  |  |  | 25 |
AFS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Canadian government and agency |  |  | 4,892 |  |  |  | – |  |  |  | 4,892 |  |  |  | – |
U.S. government and agency |  |  | 13,472 |  |  |  | – |  |  |  | 13,472 |  |  |  | – |
Other government and agency |  |  | 2,988 |  |  |  | – |  |  |  | 2,941 |  |  |  | 47 |
Corporate |  |  | 5,366 |  |  |  | – |  |  |  | 5,278 |  |  |  | 88 |
Residential mortgage/asset-backed securities |  |  | 37 |  |  |  | – |  |  |  | 37 |  |  |  | – |
Commercial mortgage/asset-backed securities |  |  | 138 |  |  |  | – |  |  |  | 138 |  |  |  | – |
Other securitized assets |  |  | 83 |  |  |  | – |  |  |  | 82 |  |  |  | 1 |
Public equities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FVTPL |  |  | 18,473 |  |  |  | 18,470 |  |  |  | – |  |  |  | 3 |
AFS |  |  | 3,072 |  |  |  | 3,069 |  |  |  | 3 |  |  |  | – |
Real estate – investment property(1) |  |  | 12,529 |  |  |  | – |  |  |  | – |  |  |  | 12,529 |
Other invested assets(2) |  |  | 16,203 |  |  |  | – |  |  |  | – |  |  |  | 16,203 |
Segregated funds net assets(3) |  |  | 324,307 |  |  |  | 286,490 |  |  |  | 33,562 |  |  |  | 4,255 |
Total |  | $ | 564,549 |  |  | $ | 312,128 |  |  | $ | 218,320 |  |  | $ | 34,101 |
(1) | For investment properties, the significant unobservable inputs are capitalization rates (ranging from 2.75% to 8.75% during the year and ranging from 3.50% to 9.00% during 2017) and terminal capitalization rates (ranging from 3.65% to 9.25% during the year and ranging from 4.0% to 9.25% during 2017). Holding other factors constant, a lower capitalization or terminal capitalization rate will tend to increase the fair value of an investment property. Changes in fair value based on variations in unobservable inputs generally cannot be extrapolated because the relationship between the directional changes of each input is not usually linear.
(2) | Other invested assets measured at fair value are held primarily in power and infrastructure and timber sectors. The significant inputs used in the valuation of the Company’s power and infrastructure investments are primarily future distributable cash flows, terminal values and discount rates. Holding other factors constant, an increase to future distributable cash flows or terminal values would tend to increase the fair value of a power and infrastructure investment, while an increase in the discount rate would have the opposite effect. Discount rates during the year ranged from 8.95% to 16.5% (2017 – ranged from 9.20% to 16.5%). Disclosure of distributable cash flow and terminal value ranges are not meaningful given the disparity in estimates by project. The significant inputs used in the valuation of the Company’s investments in timberland are timber prices and discount rates. Holding other factors constant, an increase to timber prices would tend to increase the fair value of a timberland investment, while an increase in the discount rates would have the opposite effect. Discount rates during the year ranged from 5.0% to 7.0% (2017 – ranged from 5.0% to 7.5%). A range of prices for timber is not meaningful as the market price depends on factors such as property location and proximity to markets and export yards.
(3) | Segregated funds net assets are measured at fair value. The Company’s Level 3 segregated funds assets are predominantly invested in investment properties and timberland properties valued as described above.
Summary of Fair Values and the Fair Value Hierarchy | Fair value and the fair value hierarchy of invested assets not measured at fair value.
As at December 31, 2018 |  | Carrying value |  |  | Fair value |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Mortgages(1) |  | $ | 48,363 |  |  | $ | 48,628 |  |  | $ | – |  |  | $ | – |  |  | $ | 48,628 |
Private placements(2) |  |  | 35,754 |  |  |  | 36,103 |  |  |  | – |  |  |  | 30,325 |  |  |  | 5,778 |
Policy loans(3) |  |  | 6,446 |  |  |  | 6,446 |  |  |  | – |  |  |  | 6,446 |  |  |  | – |
Loans to Bank clients(4) |  |  | 1,793 |  |  |  | 1,797 |  |  |  | – |  |  |  | 1,797 |  |  |  | – |
Real estate – own use property(5) |  |  | 2,016 |  |  |  | 3,179 |  |  |  | – |  |  |  | – |  |  |  | 3,179 |
Other invested assets(6) |  |  | 9,981 |  |  |  | 10,753 |  |  |  | 121 |  |  |  | – |  |  |  | 10,632 |
Total invested assets disclosed at fair value |  | $ | 104,353 |  |  | $ | 106,906 |  |  | $ | 121 |  |  | $ | 38,568 |  |  | $ | 68,217 |
As at December 31, 2017 |  |  | Carrying value |  |  |  | Fair value |  |  |  | Level 1 |  |  |  | Level 2 |  |  |  | Level 3 |
Mortgages(1) |  | $ | 44,742 |  |  | $ | 46,065 |  |  | $ | – |  |  | $ | – |  |  | $ | 46,065 |
Private placements(2) |  |  | 32,132 |  |  |  | 34,581 |  |  |  | – |  |  |  | 28,514 |  |  |  | 6,067 |
Policy loans(3) |  |  | 5,808 |  |  |  | 5,808 |  |  |  | – |  |  |  | 5,808 |  |  |  | – |
Loans to Bank clients(4) |  |  | 1,737 |  |  |  | 1,742 |  |  |  | – |  |  |  | 1,742 |  |  |  | – |
Real estate – own use property(5) |  |  | 1,281 |  |  |  | 2,448 |  |  |  | – |  |  |  | – |  |  |  | 2,448 |
Other invested assets(6) |  |  | 8,280 |  |  |  | 8,602 |  |  |  | 88 |  |  |  | – |  |  |  | 8,514 |
Total invested assets disclosed at fair value |  | $ | 93,980 |  |  | $ | 99,246 |  |  | $ | 88 |  |  | $ | 36,064 |  |  | $ | 63,094 |
(1) | Fair value of commercial mortgages is determined through an internal valuation methodology using both observable and unobservable inputs. Unobservable inputs include credit assumptions and liquidity spread adjustments. Fair value of fixed-rate residential mortgages is determined using the discounted cash flow method. Inputs used for valuation are primarily comprised of prevailing interest rates and prepayment rates, if applicable. Fair value of variable-rate residential mortgages is assumed to be their carrying value.
(2) | Fair value of private placements is determined through an internal valuation methodology using both observable and unobservable inputs. Unobservable inputs include credit assumptions and liquidity spread adjustments. Private placements are classified within Level 2 unless the liquidity adjustment constitutes a significant price impact, in which case the securities are classified as Level 3.
(3) | Fair value of policy loans is equal to their unpaid principal balances.
(4) | Fair value of fixed-rate loans to Bank clients is determined using the discounted cash flow method. Inputs used for valuation are primarily comprised of current interest rates. Fair value of variable-rate loans is assumed to be their carrying value.
(5) | Fair value of own use real estate and the fair value hierarchy are determined in accordance with the methodologies described for real estate – investment property in note 1.
(6) | Primarily include leveraged leases, oil and gas properties and equity method accounted other invested assets. Fair value of leveraged leases is disclosed at their carrying values as fair value is not routinely calculated on these investments. Fair value for oil and gas properties is determined using external appraisals based on discounted cash flow methodology. Inputs used in valuation are primarily comprised of forecasted price curves, planned production, as well as capital expenditures, and operating costs. Fair value of equity method accounted other invested assets is determined using a variety of valuation techniques including discounted cash flows and market comparable approaches. Inputs vary based on the specific investment.
Summary of Invested Assets and Segregated Funds Net Assets Measured at Fair Value Using Significant Unobservable Inputs (Level 3) | The following tables present a roll forward for invested assets and segregated funds net assets measured at fair value using significant unobservable inputs (Level 3) for the years ended December 31, 2018 and 2017.
For the year ended December 31, 2018 |  | Balance, January 1, 2018 |  |  | Net realized/ unrealized gains (losses) included in net income(1) |  |  | Net realized/ unrealized gains (losses) included in AOCI(2) |  |  | Purchases |  |  | Sales |  |  | Settlements |  |  | Transfer into Level 3(3) |  |  | Transfer out of Level 3(3) |  |  | Currency movement |  |  | Balance, December 31, 2018 |  |  | Change in unrealized gains (losses) on assets still held |
Debt securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FVTPL |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other government & agency |  | $ | 239 |  |  | $ | (2 | ) |  | $ | – |  |  | $ | 27 |  |  | $ | (85 | ) |  | $ | (14 | ) |  | $ | – |  |  | $ | – |  |  | $ | 15 |  |  | $ | 180 |  |  | $ | (3 | )
Corporate |  |  | 710 |  |  |  | 3 |  |  |  | – |  |  |  | 190 |  |  |  | (61 | ) |  |  | (18 | ) |  |  | – |  |  |  | (93 | ) |  |  | 53 |  |  |  | 784 |  |  |  | (10 | )
Residential mortgage/asset-backed securities |  |  | 1 |  |  |  | 6 |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 7 |  |  |  | 6 |
Other securitized assets |  |  | 25 |  |  |  | – |  |  |  | – |  |  |  | 31 |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | (56 | ) |  |  | – |  |  |  | – |  |  |  | – |
|  |  | 975 |  |  |  | 7 |  |  |  | – |  |  |  | 248 |  |  |  | (146 | ) |  |  | (32 | ) |  |  | – |  |  |  | (149 | ) |  |  | 68 |  |  |  | 971 |  |  |  | (7 | )
AFS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other government & agency |  |  | 47 |  |  |  | – |  |  |  | – |  |  |  | 6 |  |  |  | (15 | ) |  |  | (4 | ) |  |  | – |  |  |  | – |  |  |  | 3 |  |  |  | 37 |  |  |  | – |
Corporate |  |  | 88 |  |  |  | – |  |  |  | – |  |  |  | 49 |  |  |  | (12 | ) |  |  | (4 | ) |  |  | – |  |  |  | (7 | ) |  |  | 6 |  |  |  | 120 |  |  |  | – |
Residential mortgage/asset-backed securities |  |  | – |  |  |  | – |  |  |  | 1 |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 1 |  |  |  | 2 |  |  |  | – |
Other securitized assets |  |  | 1 |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | (1 | ) |  |  | – |  |  |  | – |  |  |  | – |
|  |  | 136 |  |  |  | – |  |  |  | 1 |  |  |  | 55 |  |  |  | (27 | ) |  |  | (8 | ) |  |  | – |  |  |  | (8 | ) |  |  | 10 |  |  |  | 159 |  |  |  | – |
Public equities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FVTPL |  |  | 3 |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 3 |  |  |  | – |
|  |  | 3 |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 3 |  |  |  | – |
Real estate – investment property |  |  | 12,529 |  |  |  | 291 |  |  |  | – |  |  |  | 615 |  |  |  | (2,578 | ) |  |  | – |  |  |  | – |  |  |  | (706 | ) |  |  | 610 |  |  |  | 10,761 |  |  |  | 244 |
Other invested assets |  |  | 16,203 |  |  |  | (1,168 | ) |  |  | 1 |  |  |  | 3,926 |  |  |  | (1,636 | ) |  |  | (841 | ) |  |  | – |  |  |  | (35 | ) |  |  | 1,112 |  |  |  | 17,562 |  |  |  | (434 | )
|  |  | 28,732 |  |  |  | (877 | ) |  |  | 1 |  |  |  | 4,541 |  |  |  | (4,214 | ) |  |  | (841 | ) |  |  | – |  |  |  | (741 | ) |  |  | 1,722 |  |  |  | 28,323 |  |  |  | (190 | )
Segregated funds net assets |  |  | 4,255 |  |  |  | 226 |  |  |  | – |  |  |  | 155 |  |  |  | (367 | ) |  |  | 1 |  |  |  | 3 |  |  |  | (17 | ) |  |  | 191 |  |  |  | 4,447 |  |  |  | 161 |
Total |  | $ | 34,101 |  |  | $ | (644 | ) |  | $ | 2 |  |  | $ | 4,999 |  |  | $ | (4,754 | ) |  | $ | (880 | ) |  | $ | 3 |  |  | $ | (915 | ) |  | $ | 1,991 |  |  | $ | 33,903 |  |  | $ | (36 | )
For the year ended December 31, 2017 |  | Balance, January 1, 2017 |  |  | Net realized/ unrealized gains (losses) included in net income(1) |  |  | Net realized/ unrealized gains (losses) included in AOCI(2) |  |  | Purchases |  |  | Sales |  |  | Settlements |  |  | Transfer into Level 3(3) |  |  | Transfer out of Level 3(3) |  |  | Currency movement |  |  | Balance, December 31, 2017 |  |  | Change in unrealized gains (losses) on assets still held |
Debt securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FVTPL |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other government & agency |  | $ | 272 |  |  | $ | (3 | ) |  | $ | – |  |  | $ | 26 |  |  | $ | (58 | ) |  | $ | (6 | ) |  | $ | – |  |  | $ | – |  |  | $ | 8 |  |  | $ | 239 |  |  | $ | (3 | )
Corporate |  |  | 651 |  |  |  | 19 |  |  |  | – |  |  |  | 105 |  |  |  | (34 | ) |  |  | (29 | ) |  |  | 24 |  |  |  | (21 | ) |  |  | (5 | ) |  |  | 710 |  |  |  | 10 |
Residential mortgage/asset-backed securities |  |  | 2 |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | (1 | ) |  |  | 1 |  |  |  | (1 | )
Commercial mortgage/asset-backed securities |  |  | 6 |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | (5 | ) |  |  | (1 | ) |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |
Other securitized assets |  |  | 35 |  |  |  | (1 | ) |  |  | – |  |  |  | – |  |  |  | – |  |  |  | (7 | ) |  |  | – |  |  |  | – |  |  |  | (2 | ) |  |  | 25 |  |  |  | (1 | )
|  |  | 966 |  |  |  | 15 |  |  |  | – |  |  |  | 131 |  |  |  | (97 | ) |  |  | (43 | ) |  |  | 24 |  |  |  | (21 | ) |  |  | – |  |  |  | 975 |  |  |  | 5 |
AFS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other government & agency |  |  | 51 |  |  |  | (1 | ) |  |  | (2 | ) |  |  | 14 |  |  |  | (15 | ) |  |  | (2 | ) |  |  | 1 |  |  |  | – |  |  |  | 1 |  |  |  | 47 |  |  |  | – |
Corporate |  |  | 74 |  |  |  | – |  |  |  | 4 |  |  |  | 22 |  |  |  | (10 | ) |  |  | (4 | ) |  |  | – |  |  |  | – |  |  |  | 2 |  |  |  | 88 |  |  |  | – |
Residential mortgage/asset-backed securities |  |  | 1 |  |  |  | – |  |  |  | (1 | ) |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |
Commercial mortgage/asset-backed securities |  |  | 2 |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | (1 | ) |  |  | (1 | ) |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |
Other securitized assets |  |  | 2 |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | (1 | ) |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 1 |  |  |  | – |
|  |  | 130 |  |  |  | (1 | ) |  |  | 1 |  |  |  | 36 |  |  |  | (26 | ) |  |  | (8 | ) |  |  | 1 |  |  |  | – |  |  |  | 3 |  |  |  | 136 |  |  |  | – |
Public equities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FVTPL |  |  | 7 |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | (4 | ) |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 3 |  |  |  | – |
|  |  | 7 |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | (4 | ) |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 3 |  |  |  | – |
Real estate – investment property |  |  | 12,756 |  |  |  | 301 |  |  |  | – |  |  |  | 1,257 |  |  |  | (1,267 | ) |  |  | – |  |  |  | – |  |  |  | – |  |  |  | (518 | ) |  |  | 12,529 |  |  |  | 264 |
Other invested assets |  |  | 14,849 |  |  |  | 395 |  |  |  | – |  |  |  | 3,022 |  |  |  | (435 | ) |  |  | (837 | ) |  |  | – |  |  |  | – |  |  |  | (791 | ) |  |  | 16,203 |  |  |  | 244 |
|  |  | 27,605 |  |  |  | 696 |  |  |  | – |  |  |  | 4,279 |  |  |  | (1,702 | ) |  |  | (837 | ) |  |  | – |  |  |  | – |  |  |  | (1,309 | ) |  |  | 28,732 |  |  |  | 508 |
Segregated funds net assets |  |  | 4,574 |  |  |  | 60 |  |  |  | – |  |  |  | 261 |  |  |  | (248 | ) |  |  | (54 | ) |  |  | – |  |  |  | (184 | ) |  |  | (154 | ) |  |  | 4,255 |  |  |  | 45 |
Total |  | $ | 33,282 |  |  | $ | 770 |  |  | $ | 1 |  |  | $ | 4,707 |  |  | $ | (2,077 | ) |  | $ | (942 | ) |  | $ | 25 |  |  | $ | (205 | ) |  | $ | (1,460 | ) |  | $ | 34,101 |  |  | $ | 558 |
(1) | These amounts are included in net investment income on the Consolidated Statements of Income except for the amount related to segregated funds net assets, where the amount is recorded in changes in segregated funds net assets, refer to note 22.
(2) | These amounts are included in AOCI on the Consolidated Statements of Financial Position.
(3) | For assets transferred into and out of Level 3, the Company uses fair values of the assets at the beginning of the year.

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