XML 39 R10.htm IDEA: XBRL DOCUMENT
v3.22.4

Invested Assets and Investment Income | 12 Months Ended
--- | ---
Dec. 31, 2022
Text block [abstract] |
Invested Assets and Investment Income | Note 4 Invested Assets and Investment Income (a) Carrying values and fair values of invested assets
As at December 31, 2022 |  | FVTPL (1) |  |  | AFS (2) |  |  | Other (3) |  |  | Total carrying value (4) |  |  | Total fair value (5) |
Cash and short-term securities (6) |  | $ | 1,933 |  |  | $ | 10,926 |  |  | $ | 6,294 |  |  | $ | 19,153 |  |  | $ | 19,153 |
Debt securities (3),(7),(8) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Canadian government and agency |  |  | 14,798 |  |  |  | 6,468 |  |  |  | – |  |  |  | 21,266 |  |  |  | 21,266 |
U.S. government and agency |  |  | 9,440 |  |  |  | 14,384 |  |  |  | 912 |  |  |  | 24,736 |  |  |  | 24,494 |
Other government and agency |  |  | 22,986 |  |  |  | 3,487 |  |  |  | – |  |  |  | 26,473 |  |  |  | 26,473 |
Corporate |  |  | 120,897 |  |  |  | 7,745 |  |  |  | 499 |  |  |  | 129,141 |  |  |  | 128,972 |
Mortgage/asset-backed securities |  |  | 2,152 |  |  |  | 136 |  |  |  | – |  |  |  | 2,288 |  |  |  | 2,288 |
Public equities (9) |  |  | 21,989 |  |  |  | 1,530 |  |  |  | – |  |  |  | 23,519 |  |  |  | 23,519 |
Mortgages |  |  | – |  |  |  | – |  |  |  | 54,638 |  |  |  | 54,638 |  |  |  | 51,429 |
Private placements (8) |  |  | – |  |  |  | – |  |  |  | 47,057 |  |  |  | 47,057 |  |  |  | 41,968 |
Policy loans |  |  | – |  |  |  | – |  |  |  | 6,894 |  |  |  | 6,894 |  |  |  | 6,894 |
Loans to Bank clients |  |  | – |  |  |  | – |  |  |  | 2,781 |  |  |  | 2,781 |  |  |  | 2,760 |
Real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Own use property (10) |  |  | – |  |  |  | – |  |  |  | 1,878 |  |  |  | 1,878 |  |  |  | 3,033 |
Investment property |  |  | – |  |  |  | – |  |  |  | 11,394 |  |  |  | 11,394 |  |  |  | 11,394 |
Other invested assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Alternative long-duration assets (11) |  |  | 26,348 |  |  |  | 79 |  |  |  | 12,012 |  |  |  | 38,439 |  |  |  | 39,225 |
Various other (12) |  |  | 131 |  |  |  | – |  |  |  | 4,213 |  |  |  | 4,344 |  |  |  | 4,344 |
Total invested assets |  | $ | 220,674 |  |  | $ | 44,755 |  |  | $ | 148,572 |  |  | $ | 414,001 |  |  | $ | 407,212 |
As at December 31, 2021 |  | FVTPL (1) |  |  | AFS (2) |  |  | Other (3) |  |  | Total carrying value (4) |  |  | Total fair value (5) |
Cash and short-term securities (6) |  | $ | 2,214 |  |  | $ | 14,339 |  |  | $ | 6,041 |  |  | $ | 22,594 |  |  | $ | 22,594 |
Debt securities (7),(8) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Canadian government and agency |  |  | 18,706 |  |  |  | 3,964 |  |  |  | – |  |  |  | 22,670 |  |  |  | 22,670 |
U.S. government and agency |  |  | 12,607 |  |  |  | 18,792 |  |  |  | 852 |  |  |  | 32,251 |  |  |  | 32,254 |
Other government and agency |  |  | 21,888 |  |  |  | 2,871 |  |  |  | – |  |  |  | 24,759 |  |  |  | 24,759 |
Corporate |  |  | 133,763 |  |  |  | 7,332 |  |  |  | 468 |  |  |  | 141,563 |  |  |  | 141,560 |
Mortgage/asset-backed securities |  |  | 2,758 |  |  |  | 138 |  |  |  | – |  |  |  | 2,896 |  |  |  | 2,896 |
Public equities (9) |  |  | 25,716 |  |  |  | 2,351 |  |  |  | – |  |  |  | 28,067 |  |  |  | 28,067 |
Mortgages |  |  | – |  |  |  | – |  |  |  | 52,014 |  |  |  | 52,014 |  |  |  | 54,089 |
Private placements (8) |  |  | – |  |  |  | – |  |  |  | 42,842 |  |  |  | 42,842 |  |  |  | 47,276 |
Policy loans |  |  | – |  |  |  | – |  |  |  | 6,397 |  |  |  | 6,397 |  |  |  | 6,397 |
Loans to Bank clients |  |  | – |  |  |  | – |  |  |  | 2,506 |  |  |  | 2,506 |  |  |  | 2,503 |
Real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Own use property (10) |  |  | – |  |  |  | – |  |  |  | 1,812 |  |  |  | 1,812 |  |  |  | 3,024 |
Investment property |  |  | – |  |  |  | – |  |  |  | 11,421 |  |  |  | 11,421 |  |  |  | 11,421 |
Other invested assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Alternative long-duration assets (11) |  |  | 21,022 |  |  |  | 89 |  |  |  | 10,093 |  |  |  | 31,204 |  |  |  | 31,863 |
Various other (12) |  |  | 135 |  |  |  | – |  |  |  | 3,967 |  |  |  | 4,102 |  |  |  | 4,102 |
Total invested assets |  | $ | 238,809 |  |  | $ | 49,876 |  |  | $ | 138,413 |  |  | $ | 427,098 |  |  | $ | 435,475 |
(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 available-for-sale (“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, and leveraged leases. Also includes debt securities classified as held-to-maturity which are accounted for at amortized cost. Refer to note 1(e).
(4) | Invested assets above include debt securities, mortgages, private placements and approximately $302 (2021 – $323) of other invested assets, which primarily have contractual cash flows that qualify as Solely Payment of Principal and Interest (“SPPI”). Invested assets which do not have SPPI qualifying cash flows as at December 31, 2022 include debt securities, private placements and other invested assets with fair values of $nil, $98 and $507, respectively (2021 – $nil, $181 and $518, respectively). The change in the fair value of these invested assets during the year was $(94) (2021 – $15).
(5) | The methodologies used in determining fair values of invested assets are described in note 1(c) and note 4(g).
(6) | Includes short-term securities with maturities of less than one year at acquisition amounting to $4,148 (2021 – $7,314) cash equivalents with maturities of less than 90 days at acquisition amounting to $8,711 (2021 – $9,239) and cash of $6,294 (2021 – $6,041).
(7) | Debt securities include securities which were acquired with maturities of less than one year and less than 90 days of $1,787 and $870, respectively (2021 – $2,196 and $347, respectively).
(8) | Floating rate invested assets above which are subject to interest rate benchmark reform, but have not yet transitioned to replacement reference rates, include debt securities benchmarked to CDOR, USD LIBOR and AUD BBSW of $173, $892 and $15 (2021 – $176, $1,002 and $nil respectively), and private placements benchmarked to USD LIBOR, AUD BBSW and NZD BKBM of $1,613, $199 and $43 (2021 – $1,984, $166 and $43, respectively). Exposures indexed to USD LIBOR represent floating rate invested assets with maturity dates beyond June 30, 2023 while exposures to CDOR represent floating rate invested assets with maturity dates beyond June 28, 2024. The interest rate benchmark reform is expected to have an impact on the valuation of invested assets whose value is tied to the affected interest rate benchmarks. The Company has assessed its exposure at the contract level, by benchmark and instrument type. The Company is monitoring market developments with respect to alternative reference rates and the time horizon during which they will evolve. As at December 31, 2022, the interest rate benchmark reform has not resulted in significant changes in the Company’s risk management strategy.
(9) | Includes $1 (2021 – $5) of public equities that are managed in conjunction with the Company’s ALDA strategy.
(10) | Includes accumulated depreciation of $411 (2021 – $407).
(11) | ALDA include investments in private equity of $14,279, infrastructure of $12,761, oil and gas of $2,221, timber and agriculture of $5,979 and various other invested assets of $3,199 (2021 – $11,598, $9,824, $1,950, $5,259 and $2,573, respectively).
(12) | Includes $3,840 (2021 – $3,457) of leveraged leases. Refer to note 1(e).
(b) Equity method accounted invested assets Other invested assets include i n vestments in associates and joint ventures which are accounted for using the equity method of accounting as presented in the following table.
|  | 2022 |  |  |  |  |  | 2021 |
As at December 31, |  | Carrying value |  |  | % of total |  |  |  |  |  | Carrying value |  |  | % of total |
Leveraged leases |  | $ | 3,840 |  |  |  | 37 |  |  |  |  |  |  | $ | 3,457 |  |  |  | 40 |
Timber and agriculture |  |  | 822 |  |  |  | 8 |  |  |  |  |  |  |  | 808 |  |  |  | 9 |
Real estate |  |  | 1,845 |  |  |  | 18 |  |  |  |  |  |  |  | 1,528 |  |  |  | 17 |
Other |  |  | 3,785 |  |  |  | 37 |  |  |  |  |  |  |  | 3,025 |  |  |  | 34 |
Total |  | $ | 10,292 |  |  |  | 100 |  |  |  |  |  |  | $ | 8,818 |  |  |  | 100 |
The Company’s share of profit and dividends from these investments for the year ended December 31, 2022 were $851 and $nil, respectively (2021 – $1,300 and $2). (c) Investment income
For the year ended December 31, 2022 |  | FVTPL |  |  | AFS |  |  | Other (1) |  |  | Total |
Cash and short-term securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  | $ | 40 |  |  | $ | 272 |  |  | $ | – |  |  | $ | 312 |
Gains (losses) (2) |  |  | 26 |  |  |  | 85 |  |  |  | – |  |  |  | 111 |
Debt securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | 6,221 |  |  |  | 738 |  |  |  | 66 |  |  |  | 7,025 |
Gains (losses) (2) |  |  | (32,732 | ) |  |  | (549 | ) |  |  | – |  |  |  | (33,281 | )
Recovery (impairment loss), net |  |  | (11 | ) |  |  | – |  |  |  | – |  |  |  | (11 | )
Public equities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Dividend income |  |  | 500 |  |  |  | 45 |  |  |  | – |  |  |  | 545 |
Gains (losses) (2) |  |  | (3,819 | ) |  |  | 201 |  |  |  | – |  |  |  | (3,618 | )
Impairment loss, net |  |  | – |  |  |  | (14 | ) |  |  | – |  |  |  | (14 | )
Mortgages |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | – |  |  |  | – |  |  |  | 1,913 |  |  |  | 1,913 |
Gains (losses) (2) |  |  | – |  |  |  | – |  |  |  | 57 |  |  |  | 57 |
Provision, net |  |  | – |  |  |  | – |  |  |  | 1 |  |  |  | 1 |
Private placements |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | – |  |  |  | – |  |  |  | 2,021 |  |  |  | 2,021 |
Gains (losses) (2) |  |  | – |  |  |  | – |  |  |  | 335 |  |  |  | 335 |
Impairment loss, net |  |  | – |  |  |  | – |  |  |  | (4 | ) |  |  | (4 | )
Policy loans |  |  | – |  |  |  | – |  |  |  | 385 |  |  |  | 385 |
Loans to Bank clients |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | – |  |  |  | – |  |  |  | 138 |  |  |  | 138 |
Provision, net |  |  | – |  |  |  | – |  |  |  | (4 | ) |  |  | (4 | )
Real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Rental income, net of depreciation (3) |  |  | – |  |  |  | – |  |  |  | 452 |  |  |  | 452 |
Gains (losses) (2) |  |  | – |  |  |  | – |  |  |  | (478 | ) |  |  | (478 | )
Impairment loss, net |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |
Derivatives |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income, net |  |  | 494 |  |  |  | – |  |  |  | (24 | ) |  |  | 470 |
Gains (losses) (2) |  |  | (10,628 | ) |  |  | – |  |  |  | (9 | ) |  |  | (10,637 | )
Other invested assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | – |  |  |  | – |  |  |  | 26 |  |  |  | 26 |
Oil and gas, timber, agriculture and other income |  |  | – |  |  |  | – |  |  |  | 2,846 |  |  |  | 2,846 |
Gains (losses) (2) |  |  | 1,172 |  |  |  | 13 |  |  |  | 474 |  |  |  | 1,659 |
Impairment loss, net |  |  | – |  |  |  | (119 | ) |  |  | – |  |  |  | (119 | )
Total investment income |  | $ | (38,737 | ) |  | $ | 672 |  |  | $ | 8,195 |  |  | $ | (29,870 | )
Investment income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  | $ | 6,755 |  |  | $ | 1,010 |  |  | $ | 4,525 |  |  | $ | 12,290 |
Dividend, rental and other income |  |  | 500 |  |  |  | 45 |  |  |  | 3,298 |  |  |  | 3,843 |
Impairments, provisions and recoveries, net |  |  | (11 | ) |  |  | (133 | ) |  |  | (7 | ) |  |  | (151 | )
Other |  |  | (794 | ) |  |  | (216 | ) |  |  | 235 |  |  |  | (775 | )
|  |  | 6,450 |  |  |  | 706 |  |  |  | 8,051 |  |  |  | 15,207 |
Realized and unrealized gains (losses) on assets supporting insurance and investment contract liabilities and on the macro hedge program |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Debt securities |  |  | (32,599 | ) |  |  | (76 | ) |  |  | – |  |  |  | (32,675 | )
Public equities |  |  | (3,626 | ) |  |  | 24 |  |  |  | – |  |  |  | (3,602 | )
Mortgages |  |  | – |  |  |  | – |  |  |  | 58 |  |  |  | 58 |
Private placements |  |  | – |  |  |  | – |  |  |  | 336 |  |  |  | 336 |
Real estate |  |  | – |  |  |  | – |  |  |  | (471 | ) |  |  | (471 | )
Other invested assets |  |  | 1,572 |  |  |  | 18 |  |  |  | 230 |  |  |  | 1,820 |
Derivatives, including macro hedge program |  |  | (10,534 | ) |  |  | – |  |  |  | (9 | ) |  |  | (10,543 | )
|  |  | (45,187 | ) |  |  | (34 | ) |  |  | 144 |  |  |  | (45,077 | )
Total investment income |  | $ | (38,737 | ) |  | $ | 672 |  |  | $ | 8,195 |  |  | $ | (29,870 | )
For the year ended December 31, 2021 |  | FVTPL |  |  | AFS |  |  | Other (1) |  |  | Total |
Cash and short-term securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  | $ | 12 |  |  | $ | 84 |  |  | $ | – |  |  | $ | 96 |
Gains (losses) (2) |  |  | 85 |  |  |  | (22 | ) |  |  | – |  |  |  | 63 |
Debt securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | 5,645 |  |  |  | 576 |  |  |  | 9 |  |  |  | 6,230 |
Gains (losses) (2) |  |  | (5,600 | ) |  |  | (266 | ) |  |  | – |  |  |  | (5,866 | )
Impairment loss, net |  |  | 28 |  |  |  | 1 |  |  |  | – |  |  |  | 29 |
Public equities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Dividend income |  |  | 670 |  |  |  | 61 |  |  |  | – |  |  |  | 731 |
Gains (losses) (2) |  |  | 3,221 |  |  |  | 250 |  |  |  | – |  |  |  | 3,471 |
Impairment loss, net |  |  | – |  |  |  | (3 | ) |  |  | – |  |  |  | (3 | )
Mortgages |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | – |  |  |  | – |  |  |  | 1,709 |  |  |  | 1,709 |
Gains (losses) (2) |  |  | – |  |  |  | – |  |  |  | 133 |  |  |  | 133 |
Provision, net |  |  | – |  |  |  | – |  |  |  | 1 |  |  |  | 1 |
Private placements |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | – |  |  |  | – |  |  |  | 1,931 |  |  |  | 1,931 |
Gains (losses) (2) |  |  | – |  |  |  | – |  |  |  | 270 |  |  |  | 270 |
Impairment loss, net |  |  | – |  |  |  | – |  |  |  | 45 |  |  |  | 45 |
Policy loans |  |  | – |  |  |  | – |  |  |  | 366 |  |  |  | 366 |
Loans to Bank clients |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | – |  |  |  | – |  |  |  | 77 |  |  |  | 77 |
Provision, net |  |  | – |  |  |  | – |  |  |  | (2 | ) |  |  | (2 | )
Real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Rental income, net of depreciation (3) |  |  | – |  |  |  | – |  |  |  | 453 |  |  |  | 453 |
Gains (losses) (2) |  |  | – |  |  |  | – |  |  |  | 677 |  |  |  | 677 |
Derivatives |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income, net |  |  | 1,085 |  |  |  | – |  |  |  | (35 | ) |  |  | 1,050 |
Gains (losses) (2) |  |  | (5,925 | ) |  |  | – |  |  |  | (14 | ) |  |  | (5,939 | )
Other invested assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | – |  |  |  | – |  |  |  | 57 |  |  |  | 57 |
Oil and gas, timber, agriculture and other income |  |  | – |  |  |  | – |  |  |  | 2,996 |  |  |  | 2,996 |
Gains (losses) (2) |  |  | 2,554 |  |  |  | 23 |  |  |  | 527 |  |  |  | 3,104 |
Impairment loss, net |  |  | – |  |  |  | – |  |  |  | (55 | ) |  |  | (55 | )
Total investment income |  | $ | 1,775 |  |  | $ | 704 |  |  | $ | 9,145 |  |  | $ | 11,624 |
Investment income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  | $ | 6,742 |  |  | $ | 661 |  |  | $ | 4,114 |  |  | $ | 11,517 |
Dividend, rental and other income |  |  | 670 |  |  |  | 61 |  |  |  | 3,449 |  |  |  | 4,180 |
Impairments, provisions and recoveries, net |  |  | 28 |  |  |  | (2 | ) |  |  | (11 | ) |  |  | 15 |
Other |  |  | (76 | ) |  |  | (66 | ) |  |  | 57 |  |  |  | (85 | )
|  |  | 7,364 |  |  |  | 654 |  |  |  | 7,609 |  |  |  | 15,627 |
Realized and unrealized gains (losses) on assets supporting insurance and investment contract liabilities and on the macro hedge program |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Debt securities |  |  | (5,605 | ) |  |  | 20 |  |  |  | – |  |  |  | (5,585 | )
Public equities |  |  | 3,187 |  |  |  | 33 |  |  |  | – |  |  |  | 3,220 |
Mortgages |  |  | – |  |  |  | – |  |  |  | 133 |  |  |  | 133 |
Private placements |  |  | – |  |  |  | – |  |  |  | 270 |  |  |  | 270 |
Real estate |  |  | – |  |  |  | – |  |  |  | 696 |  |  |  | 696 |
Other invested assets |  |  | 2,628 |  |  |  | (3 | ) |  |  | 451 |  |  |  | 3,076 |
Derivatives, including macro hedge program |  |  | (5,799 | ) |  |  | – |  |  |  | (14 | ) |  |  | (5,813 | )
|  |  | (5,589 | ) |  |  | 50 |  |  |  | 1,536 |  |  |  | (4,003 | )
Total investment income |  | $ | 1,775 |  |  | $ | 704 |  |  | $ | 9,145 |  |  | $ | 11,624 |
(1) | Primarily includes investment income on loans carried at amortized cost, own use real estate 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, 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.
(d) Investment expenses The following table presents total investment expenses.
For the years ended December 31, |  | 2022 |  |  | 2021 |
Related to invested assets |  | $ | 718 |  |  | $ | 633 |
Related to segregated, mutual and other funds |  |  | 1,145 |  |  |  | 1,347 |
Total investment expenses |  | $ | 1,863 |  |  | $ | 1,980 |
(e) Investment properties The following table presents the rental income and direct operating expenses of investment properties.
For the years ended December 31, |  | 2022 |  |  | 2021 |
Rental income from investment properties |  | $ | 825 |  |  | $ | 837 |
Direct operating expenses of rental investment properties |  |  | (458 | ) |  |  | (464 | )
Total |  | $ | 367 |  |  | $ | 373 |
(f) Mortgage securitization The Company securitizes certain insured and uninsured fixed and variable rate residential mortgages and Home Equity Lines of Credit (“HELOC”) through creation of mortgage-backed securities under the Canadian Mortgage Bond Program (“CMB”), and the HELOC securitization program. Benefits received from the securitization include interest spread between the asset and associated liability. There is no credit exposure from securitized mortgages under the Canada Mortgage and Housing Corporation (“CMHC”) sponsored CMB securitization program as they are insured by CMHC and other third-party insurance programs against borrowers’ default. Mortgages securitized in the Platinum Canadian Mortgage Trust II (“PCMT II”) program are uninsured. C a sh flows received from the underlying securitized assets/mortgages are used to settle the related secured borrowing liability. For CMB transactions, receipts of principal are deposited into a trust account for settlement of the liability at time of maturity. These transferred assets and related cash flows cannot be transferred or used for other purposes. For the HELOC transactions, investors are entitled to periodic interest payments, and the remaining cash receipts of principal are allocated to the Company (the “Seller”) during the revolving period of the deal and are accumulated for settlement during an accumulation period or repaid to the investor monthly during a reduction period, based on the terms of the note. Securitized assets and secured borrowing liabilities
As at December 31, 2022 |  | Securitized assets |  |  |  |
Securitization program |  | Securitized mortgages |  |  | Restricted cash and short-term securities |  |  | Total |  |  | Secured borrowing liabilities (2) |
HELOC securitization (1) |  | $ | 2,880 |  |  | $ | 44 |  |  | $ | 2,924 |  |  | $ | 2,750 |
CMB securitization |  |  | 2,318 |  |  |  | – |  |  |  | 2,318 |  |  |  | 2,273 |
Total |  | $ | 5,198 |  |  | $ | 44 |  |  | $ | 5,242 |  |  | $ | 5,023 |
As at December 31, 2021 |  | Securitized assets |  |  |  |
Securitization program |  | Securitized mortgages |  |  | Restricted cash and short-term securities |  |  | Total |  |  | Secured borrowing liabilities (2) |
HELOC securitization (1) |  | $ | 2,618 |  |  | $ | 1 |  |  | $ | 2,619 |  |  | $ | 2,500 |
CMB securitization |  |  | 2,075 |  |  |  | – |  |  |  | 2,075 |  |  |  | 2,098 |
Total |  | $ | 4,693 |  |  | $ | 1 |  |  | $ | 4,694 |  |  | $ | 4,598 |
(1) | Manulife Bank, a subsidiary, securitizes a portion of its HELOC receivables through Platinum Canadian Mortgage Trust II (“PCMT II”). 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) | The PCMT II notes payable have floating rates of interest and are secured by the PCMT II assets. Under the terms of the agreements, no principal is expected to be repaid within one year, $1,209 within 1-3 years, $1,049 within 3-5 years and $492 beyond 5 years. There is no specific maturity date for the contractual agreements. Under the terms of the notes, additional collateral must be provided to the series as added credit protection and the Series Purchase Agreements govern the amount of over-collateralization for each of the term notes outstanding. 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.
As at December 31, 2022, the fair value of securitized assets and associated liabilities were $5,167 and $4,865, respectively (2021 – $4,725 and $4,601 ). (g) Fair value measurement 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, 2022 |  | Total fair value |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Cash and short-term securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FVTPL |  | $ | 1,933 |  |  | $ | – |  |  | $ | 1,933 |  |  | $ | – |
AFS |  |  | 10,926 |  |  |  | – |  |  |  | 10,926 |  |  |  | – |
Other |  |  | 6,294 |  |  |  | 6,294 |  |  |  | – |  |  |  | – |
Debt securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FVTPL |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Canadian government and agency |  |  | 14,798 |  |  |  | – |  |  |  | 14,798 |  |  |  | – |
U.S. government and agency |  |  | 9,440 |  |  |  | – |  |  |  | 9,440 |  |  |  | – |
Other government and agency |  |  | 22,986 |  |  |  | – |  |  |  | 22,986 |  |  |  | – |
Corporate |  |  | 120,897 |  |  |  | – |  |  |  | 120,865 |  |  |  | 32 |
Residential mortgage-backed securities |  |  | 7 |  |  |  | – |  |  |  | 7 |  |  |  | – |
Commercial mortgage-backed securities |  |  | 570 |  |  |  | – |  |  |  | 570 |  |  |  | – |
Other asset-backed securities |  |  | 1,575 |  |  |  | – |  |  |  | 1,549 |  |  |  | 26 |
AFS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Canadian government and agency |  |  | 6,468 |  |  |  | – |  |  |  | 6,468 |  |  |  | – |
U.S. government and agency |  |  | 14,384 |  |  |  | – |  |  |  | 14,384 |  |  |  | – |
Other government and agency |  |  | 3,487 |  |  |  | – |  |  |  | 3,478 |  |  |  | 9 |
Corporate |  |  | 7,745 |  |  |  | – |  |  |  | 7,745 |  |  |  | – |
Residential mortgage-backed securities |  |  | 1 |  |  |  | – |  |  |  | 1 |  |  |  | – |
Commercial mortgage-backed securities |  |  | 24 |  |  |  | – |  |  |  | 24 |  |  |  | – |
Other asset-backed securities |  |  | 111 |  |  |  | – |  |  |  | 111 |  |  |  | – |
Public equities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FVTPL |  |  | 21,989 |  |  |  | 21,918 |  |  |  | – |  |  |  | 71 |
AFS |  |  | 1,530 |  |  |  | 1,530 |  |  |  | – |  |  |  | – |
Real estate – investment property (1) |  |  | 11,394 |  |  |  | – |  |  |  | – |  |  |  | 11,394 |
Other invested assets (2) |  |  | 30,256 |  |  |  | 26 |  |  |  | – |  |  |  | 30,230 |
Segregated funds net assets (3) |  |  | 348,562 |  |  |  | 314,436 |  |  |  | 30,141 |  |  |  | 3,985 |
Total |  | $ | 635,377 |  |  | $ | 344,204 |  |  | $ | 245,426 |  |  | $ | 45,747 |
As at December 31, 2021 |  | Total fair value |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Cash and short-term securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FVTPL |  | $ | 2,214 |  |  | $ | – |  |  | $ | 2,214 |  |  | $ | – |
AFS |  |  | 14,339 |  |  |  | – |  |  |  | 14,339 |  |  |  | – |
Other |  |  | 6,041 |  |  |  | 6,041 |  |  |  | – |  |  |  | – |
Debt securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FVTPL |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Canadian government and agency |  |  | 18,706 |  |  |  | – |  |  |  | 18,706 |  |  |  | – |
U.S. government and agency |  |  | 12,607 |  |  |  | – |  |  |  | 12,607 |  |  |  | – |
Other government and agency |  |  | 21,888 |  |  |  | – |  |  |  | 21,888 |  |  |  | – |
Corporate |  |  | 133,763 |  |  |  | – |  |  |  | 133,723 |  |  |  | 40 |
Residential mortgage-backed securities |  |  | 8 |  |  |  | – |  |  |  | 8 |  |  |  | – |
Commercial mortgage-backed securities |  |  | 1,103 |  |  |  | – |  |  |  | 1,103 |  |  |  | – |
Other asset-backed securities |  |  | 1,647 |  |  |  | – |  |  |  | 1,619 |  |  |  | 28 |
AFS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Canadian government and agency |  |  | 3,964 |  |  |  | – |  |  |  | 3,964 |  |  |  | – |
U.S. government and agency |  |  | 18,792 |  |  |  | – |  |  |  | 18,792 |  |  |  | – |
Other government and agency |  |  | 2,871 |  |  |  | – |  |  |  | 2,871 |  |  |  | – |
Corporate |  |  | 7,332 |  |  |  | – |  |  |  | 7,331 |  |  |  | 1 |
Residential mortgage-backed securities |  |  | 1 |  |  |  | – |  |  |  | 1 |  |  |  | – |
Commercial mortgage-backed securities |  |  | 79 |  |  |  | – |  |  |  | 79 |  |  |  | – |
Other asset-backed securities |  |  | 58 |  |  |  | – |  |  |  | 58 |  |  |  | – |
Public equities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FVTPL |  |  | 25,716 |  |  |  | 25,716 |  |  |  | – |  |  |  | – |
AFS |  |  | 2,351 |  |  |  | 2,349 |  |  |  | 2 |  |  |  | – |
Real estate – investment property (1) |  |  | 11,421 |  |  |  | – |  |  |  | – |  |  |  | 11,421 |
Other invested assets (2) |  |  | 24,300 |  |  |  | 257 |  |  |  | – |  |  |  | 24,043 |
Segregated funds net assets (3) |  |  | 399,788 |  |  |  | 361,447 |  |  |  | 34,060 |  |  |  | 4,281 |
Total |  | $ | 708,989 |  |  | $ | 395,810 |  |  | $ | 273,365 |  |  | $ | 39,814 |
(1) | For investment properties, the significant unobservable inputs are capitalization rates (ranging from 2.25% to 9.00% during the year and ranging from 2.25% to 9.00% during 2021), terminal capitalization rates (ranging from 3.25% to 9.50% during the year and ranging from 3.25% to 9.25% during 2021) and discount rates (ranging from 3.30% to 11.00% during the year and ranging from 3.80% to 10.50% during 2021). Holding other factors constant, a higher capitalization, terminal capitalization, and/or discount rate will decrease the fair value of an investment property; while decreases in these rates would have the opposite effect. 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 infrastructure and timber sectors. The significant inputs used in the valuation of the Company’s 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 an infrastructure investment, while an increase in the discount rate would have the opposite effect. Discount rates during the year ranged from 7.15% to 15.6% (2021 – ranged from 7.25% to 20.0%). 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 4.25% to 7.0% (2021 – ranged from 4.5% to 7.0%). 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 in investment properties and timberland properties valued as described above.
The following table presents fair value of invested assets not measured at fair value by the fair value hierarchy.
As at December 31, 2022 |  | Carrying value |  |  | Total fair value |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Mortgages (1) |  | $ | 54,638 |  |  | $ | 51,429 |  |  | $ | – |  |  | $ | – |  |  | $ | 51,429 |
Private placements (2) |  |  | 47,057 |  |  |  | 41,968 |  |  |  | – |  |  |  | 34,110 |  |  |  | 7,858 |
Policy loans (3) |  |  | 6,894 |  |  |  | 6,894 |  |  |  | – |  |  |  | 6,894 |  |  |  | – |
Loans to Bank clients (4) |  |  | 2,781 |  |  |  | 2,760 |  |  |  | – |  |  |  | 2,760 |  |  |  | – |
Real estate – own use property (5) |  |  | 1,878 |  |  |  | 3,033 |  |  |  | – |  |  |  | – |  |  |  | 3,033 |
Public Bonds HTM |  |  | 1,411 |  |  |  | 1,000 |  |  |  | – |  |  |  | 1,000 |  |  |  | – |
Other invested assets (6) |  |  | 12,527 |  |  |  | 13,313 |  |  |  | 72 |  |  |  | – |  |  |  | 13,241 |
Total invested assets disclosed at fair value |  | $ | 127,186 |  |  | $ | 120,397 |  |  | $ | 72 |  |  | $ | 44,764 |  |  | $ | 75,561 |
As at December 31, 2021 |  | Carrying value |  |  | Total fair value |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Mortgages (1) |  | $ | 52,014 |  |  | $ | 54,089 |  |  | $ | – |  |  | $ | – |  |  | $ | 54,089 |
Private placements (2) |  |  | 42,842 |  |  |  | 47,276 |  |  |  | – |  |  |  | 42,110 |  |  |  | 5,166 |
Policy loans (3) |  |  | 6,397 |  |  |  | 6,397 |  |  |  | – |  |  |  | 6,397 |  |  |  | – |
Loans to Bank clients (4) |  |  | 2,506 |  |  |  | 2,503 |  |  |  | – |  |  |  | 2,503 |  |  |  | – |
Real estate – own use property (5) |  |  | 1,812 |  |  |  | 3,024 |  |  |  | – |  |  |  | – |  |  |  | 3,024 |
Public Bonds HTM |  |  | 1,320 |  |  |  | 1,320 |  |  |  | – |  |  |  | 1,320 |  |  |  | – |
Other invested assets (6) |  |  | 11,006 |  |  |  | 11,665 |  |  |  | 120 |  |  |  | – |  |  |  | 11,545 |
Total invested assets disclosed at fair value |  | $ | 117,897 |  |  | $ | 126,274 |  |  | $ | 120 |  |  | $ | 52,330 |  |  | $ | 73,824 |
(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 investment property in note 1.
(6) | Primarily include leveraged leases, oil and gas properties (disposed of during 2021) 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.
Transfers between Level 1 and Level 2 The Company records transfers of assets and liabilities between Level 1 and Level 2 at their fair values as at the end of each reporting period, consistent with the date of the determination of fair value. Assets are transferred out of Level 1 when they are no longer transacted with sufficient frequency and volume in an active market. Conversely, assets are transferred from Level 2 to Level 1 when transaction volume and frequency are indicative of an active market. The Company had $nil of assets transferred between Level 1 and Level 2 during the years ended December 31, 2022 ( 2021 – $5). For segregated funds net assets, the Company had $nil transfers from Level 1 to Level 2 for the year ended December 31, 2022 (2021 – $5). The Company had $nil transfers from Level 2 to Level 1 for the year ended December 31, 2022 ( 2021 – $249). Invested assets and segregated funds net assets measured at fair value using significant unobservable inputs (Level 3) The Company classifies fair values of invested assets and segregated funds net assets as Level 3 if there are no observable markets for these assets or, in the absence of active markets, most of the inputs used to determine fair value are based on the Company’s own assumptions about market participant assumptions. The Company prioritizes the use of market-based inputs over entity-based assumptions in determining Level 3 fair values. The gains and losses in the table below includes the changes in fair value due to both observable and unobservable factors. The follo w ing table presents a roll forward for invested assets, net derivatives and segregated funds net assets measured at fair value using significant unobservable inputs (Level 3) for the years ended December 31, 2022 and 2021.
For the year ended December 31, 2022 |  | Balance, January 1, 2022 |  |  | Total gains (losses) included in net income (1) |  |  | Total gains (losses) included in AOCI (2) |  |  | Purchases |  |  | Sales |  |  | Settlements |  |  | Transfer in (3) |  |  | Transfer out (3) |  |  | Currency movement |  |  | Balance, December 31, 2022 |  |  | Change in unrealized gains (losses) on assets still held |
Debt securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FVTPL |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate |  | $ | 40 |  |  | $ | (1 | ) |  | $ | – |  |  | $ | 27 |  |  | $ | – |  |  | $ | (1 | ) |  | $ | 6 |  |  | $ | (40 | ) |  | $ | 1 |  |  | $ | 32 |  |  | $ | (1 | )
Other securitized assets |  |  | 28 |  |  |  | 2 |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | (4 | ) |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 26 |  |  |  | 2 |
AFS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Other government & agency |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 10 |  |  |  | – |  |  |  | (1 | ) |  |  | 9 |  |  |  | – |
Corporate |  |  | 1 |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | (1 | ) |  |  | – |  |  |  | – |  |  |  | – |
Public equities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FVTPL |  |  | – |  |  |  | (6 | ) |  |  | – |  |  |  | 69 |  |  |  | (84 | ) |  |  | – |  |  |  | 87 |  |  |  | – |  |  |  | 5 |  |  |  | 71 |  |  |  | (15 | )
AFS |  |  | – |  |  |  | (1 | ) |  |  | 1 |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |
Investment property |  |  | 11,421 |  |  |  | (443 | ) |  |  | – |  |  |  | 312 |  |  |  | (237 | ) |  |  | – |  |  |  | 15 |  |  |  | – |  |  |  | 326 |  |  |  | 11,394 |  |  |  | (446 | )
Other invested assets |  |  | 24,043 |  |  |  | 1,922 |  |  |  | 7 |  |  |  | 4,934 |  |  |  | (666 | ) |  |  | (1,474 | ) |  |  | 248 |  |  |  | – |  |  |  | 1,216 |  |  |  | 30,230 |  |  |  | 2,046 |
Total invested assets |  |  | 35,533 |  |  |  | 1,473 |  |  |  | 8 |  |  |  | 5,342 |  |  |  | (987 | ) |  |  | (1,479 | ) |  |  | 366 |  |  |  | (41 | ) |  |  | 1,547 |  |  |  | 41,762 |  |  |  | 1,586 |
Derivatives, net |  |  | 2,101 |  |  |  | (5,413 | ) |  |  | (7 | ) |  |  | (109 | ) |  |  | – |  |  |  | 775 |  |  |  | – |  |  |  | (356 | ) |  |  | (163 | ) |  |  | (3,172 | ) |  |  | (3,511 | )
Segregated funds net assets |  |  | 4,281 |  |  |  | 475 |  |  |  | – |  |  |  | 246 |  |  |  | (1,113 | ) |  |  | (46 | ) |  |  | – |  |  |  | (1 | ) |  |  | 143 |  |  |  | 3,985 |  |  |  | 79 |
Total |  | $ | 41,915 |  |  | $ | (3,465 | ) |  | $ | 1 |  |  | $ | 5,479 |  |  | $ | (2,100 | ) |  | $ | (750 | ) |  | $ | 366 |  |  | $ | (398 | ) |  | $ | 1,527 |  |  | $ | 42,575 |  |  | $ | (1,846 | )
For the year ended December 31, 2021 |  | Balance, January 1, 2021 |  |  | Total gains (losses) included in net income (1) |  |  | Total gains (losses) included in AOCI (2) |  |  | Purchases |  |  | Sales |  |  | Settlements |  |  | Transfer in (3) |  |  | Transfer out (3) |  |  | Currency movement |  |  | Balance, December 31, 2021 |  |  | Change in unrealized gains (losses) on assets still held |
Debt securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FVTPL |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate |  | $ | 510 |  |  | $ | 11 |  |  | $ | – |  |  | $ | 11 |  |  | $ | (93 | ) |  | $ | – |  |  | $ | 11 |  |  | $ | (409 | ) |  | $ | (1 | ) |  | $ | 40 |  |  | $ | (8 | )
Other securitized assets |  |  | 45 |  |  |  | 3 |  |  |  | – |  |  |  | – |  |  |  | (9 | ) |  |  | (39 | ) |  |  | 28 |  |  |  | – |  |  |  | – |  |  |  | 28 |  |  |  | (4 | )
AFS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate |  |  | 3 |  |  |  | 1 |  |  |  | – |  |  |  | – |  |  |  | (3 | ) |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 1 |  |  |  | – |
Public equities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FVTPL |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 62 |  |  |  | (62 | ) |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |
Investment property |  |  | 10,982 |  |  |  | 702 |  |  |  | – |  |  |  | 186 |  |  |  | (376 | ) |  |  | – |  |  |  | – |  |  |  | – |  |  |  | (73 | ) |  |  | 11,421 |  |  |  | 626 |
Other invested assets |  |  | 19,049 |  |  |  | 2,731 |  |  |  | 2 |  |  |  | 5,058 |  |  |  | (1,131 | ) |  |  | (1,453 | ) |  |  | 5 |  |  |  | – |  |  |  | (218 | ) |  |  | 24,043 |  |  |  | 2,569 |
Total invested assets |  |  | 30,589 |  |  |  | 3,448 |  |  |  | 2 |  |  |  | 5,317 |  |  |  | (1,674 | ) |  |  | (1,492 | ) |  |  | 44 |  |  |  | (409 | ) |  |  | (292 | ) |  |  | 35,533 |  |  |  | 3,183 |
Derivatives, net |  |  | 3,443 |  |  |  | (897 | ) |  |  | – |  |  |  | 14 |  |  |  | – |  |  |  | (182 | ) |  |  | – |  |  |  | (309 | ) |  |  | 32 |  |  |  | 2,101 |  |  |  | (547 | )
Segregated funds net assets |  |  | 4,202 |  |  |  | 350 |  |  |  | – |  |  |  | 68 |  |  |  | (303 | ) |  |  | (28 | ) |  |  | – |  |  |  | – |  |  |  | (8 | ) |  |  | 4,281 |  |  |  | 116 |
Total |  | $ | 38,234 |  |  | $ | 2,901 |  |  | $ | 2 |  |  | $ | 5,399 |  |  | $ | (1,977 | ) |  | $ | (1,702 | ) |  | $ | 44 |  |  | $ | (718 | ) |  | $ | (268 | ) |  | $ | 41,915 |  |  | $ | 2,752 |
(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 notes 1(h) and 23.
(2) | These amounts are included in AOCI on the Consolidated Statements of Financial Position.
(3) | The Company uses fair values of the assets at the beginning of the year for assets transferred into and out of Level 3 except for derivatives, where the Company uses fair value at the end of the year and at the beginning of the year, respectively.
Transfers into Level 3 primarily result from securities that were impaired during the year or securities where a lack of observable market data (versus the previous period) resulted in reclassifying assets into Level 3. Transfers from Level 3 primarily result from observable market data becoming available for the entire term structure of the debt security.

X
- Definition Disclosure of investments including investments accounted for using equity method explanatory. + References No definition available. + Details
Name: | mfc_DisclosureOfInvestmentsIncludingInvestmentsAccountedForUsingEquityMethodExplanatory
Namespace Prefix: | mfc_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Text block [abstract] + References No definition available. + Details
Name: | mfc_TextBlockAbstract
Namespace Prefix: | mfc_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration