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Information Provided in Connection with Investments in Deferred Annuity Contracts and SignatureNotes Issued or Assumed by John Hancock Life Insurance Company (U.S.A.)
 12 Months Ended
Dec. 31, 2021
Text block [abstract]  
Information Provided in Connection with Investments in Deferred Annuity Contracts and SignatureNotes Issued or Assumed by John Hancock Life Insurance Company (U.S.A.)
Note 23    Information Provided in Connection with Investments in Deferred Annuity Contracts and
Signature
Notes Issued or Assumed by John Hancock Life Insurance Company (U.S.A.)
The following condensed consolidated financial information, presented in accordance with IFRS, and the related disclosure have been included in these Consolidated Financial Statements with respect to JHUSA in compliance with Regulation
S-X
and Rule
12h-5
of the United States Securities and Exchange Commission (the “Commission”). These financial statements are incorporated by reference in the MFC and its subsidiaries registration statements that are described below and which relate to MFC’s guarantee of certain securities to be issued by its subsidiaries.
JHUSA maintains a book of deferred annuity contracts that feature a market value adjustment, some of which are registered with the Commission. The deferred annuity contracts may contain variable investment options along with fixed investment period options, or may offer only fixed investment period options. The fixed investment period options enable the participant to invest fixed amounts of money for fixed terms at fixed interest rates, subject to a market value adjustment if the participant desires to terminate a fixed investment period before its maturity date. The annuity contract provides for the market value adjustment to keep the parties whole with respect to the fixed interest bargain for the entire fixed investment period. These fixed investment period options that contain a market value adjustment feature are referred to as “MVAs”.
JHUSA may also sell medium-term notes to retail investors under its
Signature
Notes program.
Effective December 31, 2009, John Hancock Variable Life Insurance Company (the “Variable Company”) and John Hancock Life Insurance Company (the “Life Company”) merged with and into JHUSA. In connection with the mergers, JHUSA assumed the Variable Company’s rights and obligations with respect to the MVAs issued by the Variable Company and the Life Company’s rights and obligations with respect to the
Signature
Notes issued by the Life Company.
MFC fully and unconditionally guaranteed the payment of JHUSA’s obligations under the MVAs and under the
Signature
Notes (including the MVAs and
Signature
Notes assumed by JHUSA in the merger), and such MVAs and the
Signature
Notes were registered with the Commission. The
Signature
Notes and MVAs assumed or issued by JHUSA are collectively referred to in this note as the “Guaranteed Securities”. JHUSA is, and each of the Variable Company and the Life Company was, a wholly owned subsidiary of MFC.
MFC’s guarantees of the Guaranteed Securities are unsecured obligations of MFC and are subordinated in right of payment to the prior payment in full of all other obligations of MFC, except for other guarantees or obligations of MFC which by their terms are designated as ranking equally in right of payment with or subordinate to MFC’s guarantees of the Guaranteed Securities.
The laws of the State of New York govern MFC’s guarantees of the
Signature
Notes issued or assumed by JHUSA and the laws of the Commonwealth of Massachusetts govern MFC’s guarantees of the MVAs issued or assumed by JHUSA. MFC has consented to the jurisdiction of the courts of New York and Massachusetts. However, because a substantial portion of MFC’s assets are located outside the United States, the assets of MFC located in the United States may not be sufficient to satisfy a judgment given by a federal or state court in the United States to enforce the subordinate guarantees. In general, the federal laws of Canada and the laws of the Province of Ontario, where MFC’s principal executive offices are located, permit an action to be brought in Ontario to enforce such a judgment provided that such judgment is subsisting and unsatisfied for a fixed sum of money and not void or voidable in the United States and a Canadian court will render a judgment against MFC in a certain dollar amount, expressed in Canadian dollars, subject to customary qualifications regarding fraud, violations of public policy, laws limiting the enforcement of creditor’s rights and applicable statutes of limitations on judgments. There is currently no public policy in effect in the Province of Ontario that would support avoiding the recognition and enforcement in Ontario of a judgment of a New York or Massachusetts court on MFC’s guarantees of the
Signature
Notes issued or assumed by JHUSA or a Massachusetts court on guarantees of the MVAs issued or assumed by JHUSA.
MFC is a holding company. MFC’s assets primarily consist of investments in its subsidiaries. MFC’s cash flows primarily consist of dividends and interest payments from its operating subsidiaries, offset by expenses and shareholder dividends and MFC stock repurchases. As a holding company, MFC’s ability to meet its cash requirements, including, but not limited to, paying any amounts due under its guarantees, substantially depends upon dividends from its operating subsidiaries.
These subsidiaries are subject to certain regulatory restrictions under laws in Canada, the United States and certain other countries, which may limit their ability to pay dividends or make contributions or loans to MFC. For example, some of MFC’s subsidiaries are subject to restrictions prescribed by the ICA on their ability to declare and pay dividends. The restrictions related to dividends imposed by the ICA are described in note 12.
In the United States, insurance laws in Michigan, New York, and Massachusetts, the jurisdictions in which certain of MFC’s U.S. insurance company subsidiaries are domiciled, impose general limitations on the payment of dividends and other upstream distributions or loans by these insurance subsidiaries. These limitations are described in note 12.
In Asia, the insurance laws of the jurisdictions in which MFC operates either provide for specific restrictions on the payment of dividends or other distributions or loans by subsidiaries or impose solvency or other financial tests, which could affect the ability of subsidiaries to pay dividends in certain circumstances.
There can be no assurance that any current or future regulatory restrictions in Canada, the United States or Asia will not impair MFC’s ability to meet its cash requirements, including, but not limited to, paying any amounts due under its guarantees.
The following condensed consolidated financial information, presented in accordance with IFRS, reflects the effects of the mergers and is provided in compliance with Regulation
S-X
and in accordance with Rule
12h-5
of the Commission.
Condensed Consolidated Statement of Financial Position
 
As at December 31, 2021
   MFC
(Guarantor)		     JHUSA
(Issuer)		     Other
subsidiaries		     Consolidation
adjustments		     Consolidated
MFC		  
Assets
                                        
Invested assets
  
$
78
 
  
$
116,705
 
  
$
310,679
 
  
$
(364
) 
  
$
427,098
 
Investments in unconsolidated subsidiaries
  
 
68,655
 
  
 
9,107
 
  
 
20,788
 
  
 
(98,550
) 
  
 
–
 
Reinsurance assets
  
 
–
 
  
 
63,838
 
  
 
11,309
 
  
 
(30,568
) 
  
 
44,579
 
Other assets
  
 
211
 
  
 
18,085
 
  
 
49,956
 
  
 
(22,074
) 
  
 
46,178
 
Segregated funds net assets
  
 
–
 
  
 
204,493
 
  
 
197,220
 
  
 
(1,925
) 
  
 
399,788
 
Total assets
  
$
68,944
 
  
$
412,228
 
  
$
589,952
 
  
$
(153,481
) 
  
$
917,643
 
Liabilities and equity
                                        
Insurance contract liabilities
  
$
–
 
  
$
166,535
 
  
$
257,044
 
  
$
(31,304
) 
  
$
392,275
 
Investment contract liabilities
  
 
–
 
  
 
1,227
 
  
 
1,890
 
  
 
–
 
  
 
3,117
 
Other liabilities
  
 
899
 
  
 
21,806
 
  
 
50,836
 
  
 
(21,809
) 
  
 
51,732
 
Long-term debt
  
 
4,882
 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
4,882
 
Capital instruments
  
 
4,755
 
  
 
579
 
  
 
1,646
 
  
 
–
 
  
 
6,980
 
Segregated funds net liabilities
  
 
–
 
  
 
204,493
 
  
 
197,220
 
  
 
(1,925
) 
  
 
399,788
 
Shareholders’ and other equity holders’ equity
  
 
58,408
 
  
 
17,588
 
  
 
80,855
 
  
 
(98,443
) 
  
 
58,408
 
Participating policyholders’ equity
  
 
–
 
  
 
–
 
  
 
(1,233
) 
  
 
–
 
  
 
(1,233
) 
Non-controlling
interests
  
 
–
 
  
 
–
 
  
 
1,694
 
  
 
–
 
  
 
1,694
 
Total liabilities and equity
  
$
  68,944
 
  
$
  412,228
 
  
$
  589,952
 
  
$
(153,481
) 
  
$
  917,643
 
Condensed Consolidated Statement of Financial Position
 
As at December 31, 2020   MFC
(Guarantor)		     JHUSA
(Issuer)		     Other
subsidiaries		     Consolidation
adjustments		     Consolidated
MFC		  
Assets
                                        
Invested assets
   $ 47     $ 112,735     $ 298,524     $ (329 )    $ 410,977  
Investments in unconsolidated subsidiaries
     64,209       8,078       17,194       (89,481 )      –  
Reinsurance assets
     –       65,731       11,172       (31,067 )      45,836  
Other assets
     210       25,489       52,648       (22,247 )      56,100  
Segregated funds net assets
     –       191,955       178,224       (2,743 )      367,436  
Total assets
   $ 64,466     $ 403,988     $ 557,762     $ (145,867 )    $ 880,349  
Liabilities and equity
                                        
Insurance contract liabilities
   $ –     $ 167,453     $ 249,909     $ (31,808 )    $ 385,554  
Investment contract liabilities
     –       1,208       2,081       (1 )      3,288  
Other liabilities
     718       25,594       52,761       (22,001 )      57,072  
Long-term debt
     6,164       –       –       –       6,164  
Capital instruments
     5,249       584       1,996       –       7,829  
Segregated funds net liabilities
     –       191,955       178,224       (2,743 )      367,436  
Shareholders’ equity
     52,335       17,194       72,120       (89,314 )      52,335  
Participating policyholders’ equity
     –       –       (784 )      –       (784 ) 
Non-controlling
interests
     –       –       1,455       –       1,455  
Total liabilities and equity
   $   64,466     $   403,988     $   557,762     $   (145,867 )    $   880,349  
Condensed Consolidated Statement of Income 
 
For the year ended December 31, 2021
 
MFC
(Guarantor)
 
 
JHUSA
(Issuer)
 
 
Other
subsidiaries
 
 
Consolidation
adjustments
 
 
Consolidated
MFC
 
Revenue
 
 
 
 
 
Gross premiums
  
$
–
 
  
$
7,782
 
  
$
37,563
 
  
$
(1,001
) 
  
$
  44,344
 
Premiums ceded to reinsurers
  
 
–
 
  
 
(3,243
) 
  
 
(3,031
) 
  
 
995
 
  
 
(5,279
) 
Net premium income
  
 
–
 
  
 
4,539
 
  
 
34,532
 
  
 
(6
) 
  
 
39,065
 
Net investment income (loss)
  
 
530
 
  
 
3,779
 
  
 
8,440
 
  
 
(1,125
) 
  
 
11,624
 
Other revenue
  
 
33
 
  
 
2,042
 
  
 
9,605
 
  
 
(548
) 
  
 
11,132
 
Total revenue
  
 
563
 
  
 
10,360
 
  
 
52,577
 
  
 
(1,679
) 
  
 
61,821
 
Contract benefits and expenses
                                        
Net benefits and claims
  
 
–
 
  
 
6,478
 
  
 
28,467
 
  
 
877
 
  
 
35,822
 
Commissions, investment and general expenses
  
 
12
 
  
 
3,451
 
  
 
14,419
 
  
 
(1,436
) 
  
 
16,446
 
Other expenses
  
 
390
 
  
 
212
 
  
 
1,946
 
  
 
(1,120
) 
  
 
1,428
 
Total contract benefits and expenses
  
 
402
 
  
 
10,141
 
  
 
44,832
 
  
 
(1,679
) 
  
 
53,696
 
Income (loss) before income taxes
  
 
161
 
  
 
219
 
  
 
7,745
 
  
 
–
 
  
 
8,125
 
Income tax (expense) recovery
  
 
(28
) 
  
 
115
 
  
 
(1,300
) 
  
 
–
 
  
 
(1,213
) 
Income (loss) after income taxes
  
 
133
 
  
 
334
 
  
 
6,445
 
  
 
–
 
  
 
6,912
 
Equity in net income (loss) of unconsolidated subsidiaries
  
 
6,972
 
  
 
1,218
 
  
 
1,552
 
  
 
(9,742
) 
  
 
–
 
Net income (loss)
  
$
7,105
 
  
$
1,552
 
  
$
7,997
 
  
$
(9,742
) 
  
$
6,912
 
Net income (loss) attributed to:
                                        
Non-controlling
interests
  
$
–
 
  
$
–
 
  
$
255
 
  
$
–
 
  
$
255
 
Participating policyholders
  
 
–
 
  
 
(4
) 
  
 
(448
) 
  
 
4
 
  
 
(448
) 
Shareholders and other equity holders
  
 
7,105
 
  
 
1,556
 
  
 
8,190
 
  
 
(9,746
) 
  
 
7,105
 
 
  
$
  7,105
 
  
$
  1,552
 
  
$
  7,997
 
  
$
(9,742
) 
  
$
  6,912
 
Condensed Consolidated Statement of Income
 
For the year ended December 31, 2020   MFC
(Guarantor)		     JHUSA
(Issuer)		     Other
subsidiaries		     Consolidation
adjustments		     Consolidated
MFC		  
Revenue
                                        
Gross premiums
   $ –     $ 8,057     $ 34,459     $ (1,108 )    $   41,408  
Premiums ceded to reinsurers
     –       (6,585 )      (3,014 )      1,108       (8,491 ) 
Net premium income
     –       1,472       31,445       –       32,917  
Net investment income (loss)
     542       14,204       21,727       (1,073 )      35,400  
Other revenue
     5       2,869       12,884       (5,167 )      10,591  
Total revenue
     547         18,545         66,056       (6,240 )      78,908  
Contract benefits and expenses
                                        
Net benefits and claims
     –       14,804       44,293       (3,862 )      55,235  
Commissions, investment and general expenses
     17       3,146       13,573       (1,396 )      15,340  
Other expenses
     434       230       1,880       (982 )      1,562  
Total contract benefits and expenses
     451       18,180       59,746       (6,240 )        72,137  
Income (loss) before income taxes
     96       365       6,310       –       6,771  
Income tax (expense) recovery
     (26 )      54       (1,223 )      –       (1,195 ) 
Income (loss) after income taxes
     70       419       5,087       –       5,576  
Equity in net income (loss) of unconsolidated subsidiaries
     5,801       1,344       1,763       (8,908 )      –  
Net income (loss)
   $   5,871     $ 1,763     $ 6,850     $   (8,908 )    $ 5,576  
Net income (loss) attributed to:
                                        
Non-controlling
interests
   $ –     $ –     $ 250     $ –     $ 250  
Participating policyholders
     –       –       (545 )      –       (545 ) 
Shareholders
     5,871       1,763       7,145       (8,908 )      5,871  
 
   $ 5,871     $ 1,763     $ 6,850     $   (8,908 )    $ 5,576  
 
Consolidated Statement of Cash Flows

 
For the year ended December 31, 2021
 
MFC
(Guarantor)
 
 
JHUSA
(Issuer)
 
 
Other
subsidiaries
 
 
Consolidation
adjustments
 
 
Consolidated
MFC
 
Operating activities
 
 
 
 
 
Net income (loss)
  
$
7,105
 
  
$
1,552
 
  
$
7,997
 
  
$
(9,742
) 
  
$
6,912
 
Adjustments:
                                        
Equity in net income of unconsolidated subsidiaries
  
 
(6,972
) 
  
 
(1,218
) 
  
 
(1,552
) 
  
 
9,742
 
  
 
–
 
Increase (decrease) in insurance contract liabilities
  
 
–
 
  
 
(562
) 
  
 
11,281
 
  
 
–
 
  
 
10,719
 
Increase (decrease) in investment contract liabilities
  
 
–
 
  
 
50
 
  
 
(6
) 
  
 
–
 
  
 
44
 
(Increase) decrease in reinsurance assets excluding coinsurance transactions
  
 
–
 
  
 
1,544
 
  
 
(790
) 
  
 
–
 
  
 
754
 
Amortization of (premium) discount on invested assets
  
 
–
 
  
 
57
 
  
 
124
 
  
 
–
 
  
 
181
 
Other amortization
  
 
16
 
  
 
124
 
  
 
389
 
  
 
–
 
  
 
529
 
Net realized and unrealized (gains) losses and impairment on assets
  
 
62
 
  
 
1,533
 
  
 
3,229
 
  
 
–
 
  
 
4,824
 
Deferred income tax expense (recovery)
  
 
34
 
  
 
190
 
  
 
(351
) 
  
 
–
 
  
 
(127
) 
Stock option expense
  
 
–
 
  
 
(2
) 
  
 
11
 
  
 
–
 
  
 
9
 
Cash provided by (used in) operating activities before undernoted items
  
 
245
 
  
 
3,268
 
  
 
20,332
 
  
 
–
 
  
 
23,845
 
Dividends from unconsolidated subsidiary
  
 
5,000
 
  
 
489
 
  
 
742
 
  
 
(6,231
) 
  
 
–
 
Changes in policy related and operating receivables and payables
  
 
(22
) 
  
 
424
 
  
 
(1,092
) 
  
 
–
 
  
 
(690
) 
Cash provided by (used in) operating activities
  
 
5,223
 
  
 
4,181
 
  
 
19,982
 
  
 
(6,231
) 
  
 
23,155
 
Investing activities
                                        
Purchases and mortgage advances
  
 
–
 
  
 
(31,746
) 
  
 
(89,219
) 
  
 
–
 
  
 
(120,965
) 
Disposals and repayments
  
 
–
 
  
 
27,194
 
  
 
69,534
 
  
 
–
 
  
 
96,728
 
Changes in investment broker net receivables and payables
  
 
–
 
  
 
(202
) 
  
 
16
 
  
 
–
 
  
 
(186
) 
Investment in common shares of subsidiaries
  
 
(3,700
) 
  
 
–
 
  
 
–
 
  
 
3,700
 
  
 
–
 
Net cash flows from acquisition and disposal of subsidiaries and businesses
  
 
–
 
  
 
–
 
  
 
(19
) 
  
 
–
 
  
 
(19
) 
Capital contribution to unconsolidated subsidiaries
  
 
–
 
  
 
(1
) 
  
 
–
 
  
 
1
 
  
 
–
 
Return of capital from unconsolidated subsidiaries
  
 
–
 
  
 
1
 
  
 
–
 
  
 
(1
) 
  
 
–
 
Notes receivable from parent
  
 
–
 
  
 
–
 
  
 
(129
) 
  
 
129
 
  
 
–
 
Notes receivable from subsidiaries
  
 
(13
) 
  
 
–
 
  
 
–
 
  
 
13
 
  
 
–
 
Cash provided by (used in) investing activities
  
 
(3,713
) 
  
 
(4,754
) 
  
 
(19,817
) 
  
 
3,842
 
  
 
(24,442
) 
Financing activities
                                        
Redemption of long-term debt
  
 
(1,250
) 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
(1,250
) 
Redemption of capital instruments
  
 
(468
) 
  
 
–
 
  
 
(350
) 
  
 
–
 
  
 
(818
) 
Secured borrowings
  
 
–
 
  
 
–
 
  
 
26
 
  
 
–
 
  
 
26
 
Change in repurchase agreements and securities sold but not yet purchased
  
 
–
 
  
 
–
 
  
 
186
 
  
 
–
 
  
 
186
 
Changes in deposits from Bank clients, net
  
 
–
 
  
 
–
 
  
 
(164
) 
  
 
–
 
  
 
(164
) 
Lease payments
  
 
–
 
  
 
(7
) 
  
 
(117
) 
  
 
–
 
  
 
(124
) 
Shareholders’ dividends and other equity distributions
 
 
(2,500
) 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
(2,500
) 
Common shares issued, net
  
 
51
 
  
 
–
 
  
 
3,700
 
  
 
(3,700
) 
  
 
51
 
Preferred shares and other equity issued, net
  
 
3,171
 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
3,171
 
Preferred shares redeemed, net
  
 
(612
) 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
(612
) 
Contributions from (distributions to)
non-controlling
interests, net
  
 
–
 
  
 
–
 
  
 
(13
) 
  
 
–
 
  
 
(13
) 
Dividends paid to parent
  
 
–
 
  
 
(742
) 
  
 
(5,489
) 
  
 
6,231
 
  
 
–
 
Capital contributions by parent
  
 
–
 
  
 
–
 
  
 
1
 
  
 
(1
) 
  
 
–
 
Return of capital to parent
  
 
–
 
  
 
–
 
  
 
(1
) 
  
 
1
 
  
 
–
 
Notes payable to parent
  
 
–
 
  
 
–
 
  
 
13
 
  
 
(13
) 
  
 
–
 
Notes payable to subsidiaries
  
 
129
 
  
 
–
 
  
 
–
 
  
 
(129
) 
  
 
–
 
Cash provided by (used in) financing activities
  
 
(1,479
) 
  
 
(749
) 
  
 
(2,208
) 
  
 
2,389
 
  
 
(2,047
) 
Cash and short-term securities
                                        
Increase (decrease) during the year
  
 
31
 
  
 
(1,322
) 
  
 
(2,043
) 
  
 
–
 
  
 
(3,334
) 
Effect of foreign exchange rate changes on cash and short-term securities
  
 
–
 
  
 
(20
) 
  
 
(299
) 
  
 
–
 
  
 
(319
) 
Balance, beginning of year
  
 
47
 
  
 
4,907
 
  
 
20,629
 
  
 
–
 
  
 
25,583
 
Balance, end of year
  
 
78
 
  
 
3,565
 
  
 
18,287
 
  
 
–
 
  
 
21,930
 
Cash and short-term securities
                                        
Beginning of year
                                        
Gross cash and short-term securities
  
 
47
 
  
 
5,213
 
  
 
20,907
 
  
 
–
 
  
 
26,167
 
Net payments in transit, included in other liabilities
  
 
–
 
  
 
(306
) 
  
 
(278
) 
  
 
–
 
  
 
(584
) 
Net cash and short-term securities, beginning of year
  
 
47
 
  
 
4,907
 
  
 
20,629
 
  
 
–
 
  
 
25,583
 
End of year
                                        
Gross cash and short-term securities
  
 
78
 
  
 
4,087
 
  
 
18,429
 
  
 
–
 
  
 
22,594
 
Net payments in transit, included in other liabilities
  
 
–
 
  
 
(522
) 
  
 
(142
) 
  
 
–
 
  
 
(664
) 
Net cash and short-term securities, end of year
  
$
78
 
  
$
3,565
 
$
18,287
 
  
$
–
 
  
$
21,930
 
Supplemental disclosures on cash flow information:
                                        
Interest received
  
$
499
 
  
$
4,112
 
  
$
7,847
 
  
$
(1,082
) 
  
$
11,376
 
Interest paid
  
 
396
 
  
 
73
 
  
 
1,594
 
  
 
(1,082
) 
  
 
981
 
Income taxes paid (refund)
  
 
–
 
  
 
(118
) 
  
 
689
 
  
 
–
 
  
 
571
 
Consolidated Statement of Cash Flows
 
For the year ended December 31, 2020  
MFC
(Guarantor)
    
JHUSA
(Issuer)
    
Other
subsidiaries
    
Consolidation
adjustments
    
Consolidated
MFC
  
Operating activities
                                        
Net income (loss)
   $     5,871     $       1,763     $       6,850     $ (8,908 )    $       5,576  
Adjustments:
                                        
Equity in net income of unconsolidated subsidiaries
     (5,801 )      (1,344 )      (1,763 )            8,908       –  
Increase (decrease) in insurance contract liabilities
     –       11,937       25,045       –       36,982  
Increase (decrease) in investment contract liabilities
     –       48       130       –       178  
(Increase) decrease in reinsurance assets excluding coinsurance transactions
     –       (3,133 )      759       –       (2,374 ) 
Amortization of (premium) discount on invested assets
     –       54       100       –       154  
Other amortization
     7       145       504       –       656  
Net realized and unrealized (gains) losses and impairment on assets
     1       (9,420 )      (13,102 )      –       (22,521 ) 
Deferred income tax expense (recovery)
     25       (784 )      1,039       –       280  
Stock option expense
     –       3       11       –       14  
Cash provided by (used in) operating activities before undernoted items
     103       (731 )      19,573       –       18,945  
Dividends from unconsolidated subsidiary
     3,000       411       1,270       (4,681 )      –  
Changes in policy related and operating receivables and payables
     91       8,459       (7,447 )      –       1,103  
Cash provided by (used in) operating activities
     3,194       8,139       13,396       (4,681 )      20,048  
Investing activities
                                        
Purchases and mortgage advances
     –       (34,392 )      (77,589 )      –       (111,981)  
Disposals and repayments
     –       29,635       69,215       –       98,850  
Changes in investment broker net receivables and payables
     –       (431 )      (586 )      –       (1,017 ) 
Investment in common shares of subsidiaries
     (4,483 )      –       –       4,483       –  
Capital contribution to unconsolidated subsidiaries
     –       (1 )      –       1       –  
Return of capital from unconsolidated subsidiaries
     –       22       –       (22 )      –  
Notes receivable from parent
     –       –       1,501       (1,501 )      –  
Notes receivable from subsidiaries
     1,494       –       –       (1,494 )      –  
Cash provided by (used in) investing activities
     (2,989 )      (5,167 )      (7,459 )      1,467       (14,148 ) 
Financing activities
                                        
Issue of long-term debt, net
     2,455       –       –       –       2,455  
Redemption of long-term debt
     (652 )      –       –       –       (652 ) 
Issue of capital instruments, net
     1,990       –       –       –       1,990  
Redemption of capital instruments
     –       –       (1,250 )      –       (1,250 ) 
Secured borrowings
     –       709       667       –       1,376  
Change in repurchase agreements and securities sold but not yet purchased
     –       –       24       –       24  
Changes in deposits from Bank clients, net
     –       –       (579 )      –       (579 ) 
Lease payments
     –       (9 )      (125 )      –       (134 ) 
Shareholders’ dividends paid in cash
     (2,340 )      –       –       –       (2,340 ) 
Contributions from (distributions to)
non-controlling
interests, net
     –       –       (10 )      –       (10 ) 
Common shares repurchased
     (253 )      –       –       –       (253 ) 
Common shares issued, net
     36       –       4,483       (4,483 )      36  
Dividends paid to parent
     –       (1,270 )      (3,411 )      4,681       –  
Capital contributions by parent
     –       –       1       (1 )      –  
Return of capital to parent
     –       –       (22 )      22       –  
Notes payable to parent
     –       –       (1,494 )      1,494       –  
Notes payable to subsidiaries
     (1,501 )      –       –       1,501       –  
Cash provided by (used in) financing activities
     (265 )      (570 )      (1,716 )      3,214       663  
Cash and short-term securities
                                        
Increase (decrease) during the year
     (60 )      2,402       4,221       –       6,563  
Effect of foreign exchange rate changes on cash and short-term securities
     85       (59 )      (554 )      –       (528 ) 
Balance, beginning of year
     22       2,564       16,962       –       19,548  
Balance, end of year
     47       4,907       20,629       –       25,583  
Cash and short-term securities
                                        
Beginning of year
                                        
Gross cash and short-term securities
     22       3,058       17,220       –       20,300  
Net payments in transit, included in other liabilities
     –       (494 )      (258 )      –       (752 ) 
Net cash and short-term securities, beginning of year
     22       2,564       16,962       –       19,548  
End of year
                                        
Gross cash and short-term securities
     47       5,213       20,907       –       26,167  
Net payments in transit, included in other liabilities
     –       (306 )      (278 )      –       (584 ) 
Net cash and short-term securities, end of year
   $ 47     $ 4,907     $ 20,629     $ –     $ 25,583  
Supplemental disclosures on cash flow information:
                                        
Interest received
   $ 522     $ 4,334     $ 7,992     $ (1,112 )    $ 11,736  
Interest paid
     426       109       1,765       (1,112 )      1,188  
Income taxes paid (refund)
     (2 )      721       639       –       1,358