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Interests in Structured Entities (Tables) | 12 Months Ended
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Dec. 31, 2020
Investments accounted for using equity method [abstract] |
Schedule Investment and Maximum Exposure to Loss Related to Significant Unconsolidated Structured Entities | The following table presents the Company’s investments and maximum exposure to loss from significant unconsolidated investment SEs, some of which are sponsored by the Company. The Company does not provide guarantees to other parties against the risk of loss from these SEs.
|  | Company’s investment (1) |  |  |  |  |  | Company’s maximum exposure to loss (2) |
As at December 31, |  | 2020 |  |  | 2019 |  |  |  |  |  | 2020 |  |  | 2019 |
Leveraged leases (3) |  | $ | 3,371 |  |  | $ | 3,371 |  |  |  |  |  |  | $ | 3,371 |  |  | $ | 3,371 |
Timberland companies (4) |  |  | 776 |  |  |  | 752 |  |  |  |  |  |  |  | 776 |  |  |  | 765 |
Real estate companies (5) |  |  | 497 |  |  |  | 541 |  |  |  |  |  |  |  | 497 |  |  |  | 541 |
Total |  | $ | 4,644 |  |  | $ | 4,664 |  |  |  |  |  |  | $ | 4,644 |  |  | $ | 4,677 |
(1) | The Company’s investments in these unconsolidated SEs are included in invested assets and the Company’s returns from them are included in net investment income and AOCI.
(2) | The Company’s maximum exposure to loss from each SE is limited to amounts invested in each, plus unfunded capital commitments, if any. The Company’s investment commitments are disclosed in note 18. The maximum loss is expected to occur only upon the entity’s bankruptcy/liquidation, or in case a natural disaster in the case of the timber companies.
(3) | These entities are statutory business trusts which use capital provided by the Company and senior debt provided by other parties to finance the acquisition of assets. These assets are leased to third-party lessees under long-term leases. The Company owns equity capital in these business trusts. The Company does not consolidate any of the trusts that are party to the lease arrangements because the Company does not have decision-making power over them.
(4) | These entities own and operate timberlands. The Company invests in their equity and debt. The Company’s returns include investment income, investment advisory fees, forestry management fees and performance advisory fees. The Company does not control these entities because it either does not have the power to govern their financial and operating policies or does not have significant variable returns from them, or both.
(5) | These entities, which include the Manulife U.S. REIT, own and manage commercial real estate. The Company invests in their equity. The Company’s returns include investment income, investment management fees, property management fees, acquisition/disposition fees and leasing fees. The Company does not control these entities because it either does not have the power to govern their financial and operating policies or does not have significant variable returns from them, or both.
Schedule of Interests and Maximum Exposure to Loss From Significant Unconsolidated Financing Structured Entities | The Company’s interests and maximum exposure to loss from significant unconsolidated financing SEs are as follows.
|  | Company’s interests (1) |
As at December 31, |  | 2020 |  |  | 2019 |
Manulife Finance (Delaware), L.P. (2) |  | $ | 931 |  |  | $ | 852 |
Manulife Financial Capital Trust II (3) |  |  | – |  |  |  | 1 |
Total |  | $ | 931 |  |  | $ | 853 |
(1) | The Company’s interests include amounts borrowed from the SEs and the Company’s investment in their subordinated capital, and foreign currency and interest swaps with them, if any.
(2) | This entity is a wholly owned partnership used to facilitate the Company’s financing. Refer to notes 10 and 18.
(3) | This entity is an open-ended trust that was used to facilitate the Company’s financing. The Company redeemed all outstanding $1 billion principal amount of MFCT II Senior debenture notes, at par, on December 30, 2019. Using these proceeds, the trust redeemed MFCT II Series 1 held by third parties, at par, on December 31, 2019.
Schedule of Securitized Holdings by Type and Asset Quality | The following table presents investments in securitized holdings by the type and asset quality.
|  | 2020 |  |  |  |  |  | 2019 |
As at December 31, |  | CMBS |  |  | RMBS |  |  | ABS |  |  | Total |  |  |  |  |  | Total |
AAA |  | $ | 1,438 |  |  | $ | 7 |  |  | $ | 1,020 |  |  | $ | 2,465 |  |  |  |  |  |  | $ | 2,805 |
AA |  |  | – |  |  |  | – |  |  |  | 32 |  |  |  | 32 |  |  |  |  |  |  |  | 648 |
A |  |  | 53 |  |  |  | 3 |  |  |  | 605 |  |  |  | 661 |  |  |  |  |  |  |  | 372 |
BBB |  |  | – |  |  |  | – |  |  |  | 208 |  |  |  | 208 |  |  |  |  |  |  |  | 63 |
BB and below |  |  | – |  |  |  | – |  |  |  | 76 |  |  |  | 76 |  |  |  |  |  |  |  | – |
Total company exposure |  | $ | 1,491 |  |  | $ | 10 |  |  | $ | 1,941 |  |  | $ | 3,442 |  |  |  |  |  |  | $ | 3,888 |

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