Information Provided in Connection with Investments in Deferred Annuity Contracts and SignatureNotes Issued or Assumed by John Hancock Life Insurance Company (U.S.A.) (Tables)

12 Months Ended

Dec. 31, 2021

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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