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Investment Contract Liabilities
 12 Months Ended
Dec. 31, 2022
Text block [abstract]  
Investment Contract Liabilities
Note 8    Investment Contract Liabilities
Investment contract liabilities are contractual obligations that do not contain significant insurance risk. These contracts are measured either at fair value or at amortized cost.
(a) Investment contract liabilities measured at fair value
Investment contract liabilities measured at fair value include certain investment savings and pension products sold primarily in Hong Kong and mainland China. The following table presents the movement in investment contract liabilities measured at fair value.
 
For the years ended December 31,
  
2022
     2021  
Balance, January 1
  
$
  802
 
   $ 932  
New policies
  
 
93
 
     54  
Changes in market conditions
  
 
(39
) 
     (38 ) 
Redemptions, surrenders and maturities
  
 
(106
) 
     (138 ) 
Impact of changes in foreign exchange rates
  
 
46
 
     (8 ) 
Balance, December 31
  
$
  796
 
   $   802  
 
 
(b) Investment contract liabilities measured at amortized cost
Investment contract liabilities measured at amortized cost include several fixed annuity products sold in the U.S. and Canada that provide guaranteed income payments for a contractually determined period and are not contingent on survivorship.
The following table presents carrying and fair values of investment contract liabilities measured at amortized cost.
 
   
2022
           2021  
As at December 31,
  
Amortized
cost, gross of
reinsurance
ceded
(1)
     Fair value          
Amortized
cost, gross of
reinsurance
ceded
(1)
     Fair value  
U.S. fixed annuity products
  
$
1,575
 
  
$
1,547
 
               $ 1,380     $ 1,602  
Canadian fixed annuity products
  
 
877
 
  
 
956
 
             935       1,016  
Investment contract liabilities
  
$
  2,452
 
  
$
  2,503
 
               $   2,315     $   2,618  
 
(1)
As at December 31, 2022, investment contract liabilities with the carrying value and fair value of $38 and $38, respectively (2021 – $48 and $52, respectively), were reinsured by the Company. The net carrying value and fair value of investment contract liabilities were $2,414 and $2,465 (2021 – $2,267 and $2,566), respectively.
The changes in investment contract liabilities measured at amortized cost was a result of the following business activities.
 
For the years ended December 31,
  
2022
     2021  
Balance, January 1
  
$
2,315
 
   $ 2,356  
Policy deposits
  
 
200
 
     92  
Interest
  
 
67
 
     71  
Withdrawals
  
 
(236
) 
     (191 ) 
Fees
  
 
(1
) 
     (1 ) 
Other
  
 
–
 
     (5 ) 
Impact of changes in foreign exchange rates
  
 
107
 
     (7 ) 
Balance, December 31
  
$
  2,452
 
   $   2,315  
Carrying value of fixed annuity products is amortized at a rate that exactly discounts the projected actual cash flows to the net carrying amount of the liability at the date of issue.
Fair value of fixed annuity products is determined by projecting cash flows according to the contract terms and discounting the cash flows at current market rates adjusted for the Company’s own credit standing. As at December 31, 2022 and 2021, fair value of all investment contract liabilities was determined using Level 2 valuation techniques.
(c) Investment contracts contractual obligations
As at December 31, 2022, the Company’s contractual obligations and commitments relating to the investment contracts are as follows.
 
Payments due by period
    Less than
1 year		     
1 to 3
years
     
3 to 5
years
      Over 5
years		      Total  
Investment contract liabilities
(1)
   
$
  300
 
   
$
  511
 
   
$
  514
 
   
$
  3,365
 
   
$
  4,690
 
 
(1)
Due to the nature of the products, the timing of net cash flows may be before contract maturity. Cash flows are undiscounted.