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Risk Management (Tables)
 12 Months Ended
Dec. 31, 2022
Statement [LineItems]  
Summary of Gross Carrying Amount of Financial Instruments Subject to Credit Exposure
The following table presents the gross carrying amount of financial instruments subject to credit exposure, without considering any collateral held or other credit enhancements.
 
As at December 31,
  
2022
     2021  
Debt securities
                
FVTPL
  
$
170,273
 
   $ 189,722  
AFS
  
 
32,220
 
     33,097  
Other
  
 
1,411
 
     1,320  
Mortgages
  
 
54,638
 
     52,014  
Private placements
  
 
47,057
 
     42,842  
Policy loans
  
 
6,894
 
     6,397  
Loans to Bank clients
  
 
2,781
 
     2,506  
Derivative assets
  
 
8,588
 
     17,503  
Accrued investment income
  
 
2,813
 
     2,641  
Reinsurance assets
  
 
47,712
 
     44,579  
Other financial assets
  
 
6,077
 
     6,242  
Total
  
$
  380,464
 
   $   398,863  
Summary of Credit Quality and Carrying Value of Commercial Mortgages and Private Placements
The following table presents the credit quality of commercial mortgages and private placements.
 
As at December 31, 2022
   AAA     AA     A     BBB     BB     B and lower     Total  
Commercial mortgages
                                                        
Retail
  
$
113
 
  
$
1,526
 
  
$
4,872
 
  
$
2,055
 
  
$
194
 
  
$
2
 
  
$
8,762
 
Office
  
 
102
 
  
 
1,460
 
  
 
5,950
 
  
 
1,471
 
  
 
57
 
  
 
33
 
  
 
9,073
 
Multi-family residential
  
 
500
 
  
 
2,213
 
  
 
3,751
 
  
 
892
 
  
 
11
 
  
 
–
 
  
 
7,367
 
Industrial
  
 
72
 
  
 
929
 
  
 
3,312
 
  
 
407
 
  
 
–
 
  
 
–
 
  
 
4,720
 
Other
  
 
180
 
  
 
990
 
  
 
798
 
  
 
764
 
  
 
–
 
  
 
–
 
  
 
2,732
 
Total commercial mortgages
  
 
967
 
  
 
7,118
 
  
 
18,683
 
  
 
5,589
 
  
 
262
 
  
 
35
 
  
 
32,654
 
Agricultural mortgages
  
 
–
 
  
 
–
 
  
 
119
 
  
 
240
 
  
 
–
 
  
 
–
 
  
 
359
 
Private placements
  
 
904
 
  
 
6,991
 
  
 
16,534
 
  
 
17,176
 
  
 
1,105
 
  
 
4,347
 
  
 
47,057
 
Total
  
$
1,871
 
  
$
14,109
 
  
$
35,336
 
  
$
23,005
 
  
$
1,367
 
  
$
4,382
 
  
$
80,070
 
               
As at December 31, 2021   AAA     AA     A     BBB     BB     B and lower     Total  
Commercial mortgages
                                                        
Retail
   $ 113     $ 1,340     $ 5,179     $ 1,936     $ 228     $ 2     $ 8,798  
Office
     56       1,256       6,004       1,291       87       40       8,734  
Multi-family residential
     557       1,869       3,771       767       32       –       6,996  
Industrial
     47       376       2,808       328       –       –       3,559  
Other
     212       1,010       787       956       47       –       3,012  
Total commercial mortgages
     985       5,851       18,549       5,278       394       42       31,099  
Agricultural mortgages
     –       –       119       242       –       –       361  
Private placements
     976       5,720       16,147       16,220       1,161       2,618       42,842  
Total
   $   1,961     $   11,571     $   34,815     $   21,740     $   1,555     $   2,660     $   74,302  
Summary of Carrying Value of Past Due but Not Impaired and Impaired Financial Assets
The following table presents the carrying value of financial assets with some or all of their contractual payments past due but which are not impaired and impaired financial assets.
 
 
 
Past due but not impaired
 
 
 
 
As at December 31, 2022
 
Less than
90 days
 
 
90 days
and greater
 
 
Total
 
 
Total
impaired
 
Debt securities
(1),(2)
                                
FVTPL
  
$
  2,059
 
  
$
71
 
  
$
  2,130
 
  
$
9
 
AFS
  
 
922
 
  
 
–
 
  
 
922
 
  
 
–
 
Private placements
(1)
  
 
317
 
  
 
152
 
  
 
469
 
  
 
229
 
Mortgages and loans to Bank clients
  
 
103
 
  
 
–
 
  
 
103
 
  
 
74
 
Other financial assets
  
 
36
 
  
 
34
 
  
 
70
 
  
 
1
 
Total
  
$
3,437
 
  
$
  257
 
  
$
3,694
 
  
$
313
 
     
    Past due but not impaired        
As at December 31, 2021   Less than
90 days		     90 days
and greater		     Total     Total
impaired		  
Debt securities
(1),(2)
                                
FVTPL
   $ 20     $ –     $ 20     $ 2  
AFS
     –       –       –       –  
Private placements
(1)
     63       –       63       175  
Mortgages and loans to Bank clients
     61       –       61       51  
Other financial assets
     261       47       308       –  
Total
   $   405     $   47     $   452     $   228  
Summary of Company's Loans That are Considered Impaired
The following table presents gross carrying value and allowances for loan losses for impaired loans.
 
As at December 31, 2022
   Gross
carrying value		     Allowances
for loan losses		     Net carrying
value		  
Private placements
  
$
254
 
  
$
25
 
  
$
229
 
Mortgages and loans to Bank clients
  
 
96
 
  
 
22
 
  
 
74
 
Total
  
$
350
 
  
$
47
 
  
$
303
 
       
As at December 31, 2021   Gross
carrying value		     Allowances
for loan losses		     Net carrying
value		  
Private placements
   $ 197     $ 22     $ 175  
Mortgages and loans to Bank clients
     73       22       51  
Total
   $   270     $   44     $   226  
Summary of Reconciliation of Allowance for Loan Losses
The following table presents movement of allowance for loan losses during the year.
 
   
2022
           2021  
For the years ended December 31,
   Private
placements		     Mortgages
and loans to
Bank clients		     Total           Private
placements		     Mortgages
and loans to
Bank clients		     Total  
Balance, January 1
  
$
22
 
  
$
22
 
  
$
44
 
           $ 79     $ 28     $   107  
Provisions
  
 
22
 
  
 
4
 
  
 
26
 
             14       12       26  
Recoveries
  
 
(18
) 
  
 
(2
) 
  
 
(20
) 
             (58 )        (16 )      (74 ) 
Write-offs
(1)
  
 
(1
) 
  
 
(2
) 
  
 
(3
) 
               (13 )      (2 )      (15 ) 
Balance, December 31
  
$
  25
 
  
$
  22
 
  
$
  47
 
           $ 22     $   22     $ 44  
 
(1)
Includes disposals and impact of changes in foreign exchange rates.
Summary of Credit Default Swap Protection Sold
The following table presents details of the credit default swap protection sold by type of contract and external agency rating for the underlying reference security.
 
As at December 31, 2022
   Notional
amount
(1)
     Fair value    
Weighted
average maturity
(in years)
(2)
  
Single name CDS
(3)
– Corporate debt
                        
A
  
$
  133
 
  
$
4
 
  
 
4
 
BBB
  
 
26
 
  
 
–
 
  
 
1
 
Total single name CDS
  
$
159
 
  
$
4
 
  
 
4
 
Total CDS protection sold
  
$
159
 
  
$
4
 
  
 
4
 
       
As at December 31, 2021   Notional
amount
(1)
     Fair value    
Weighted
average maturity
(in years)
(2)
  
Single name CDS
(3)
– Corporate debt
                        
A
   $ 16     $ –       1  
BBB
     28       1       2  
Total single name CDS
   $ 44     $ 1       2  
Total CDS protection sold
   $   44     $   1       2  
 
(1)
Notional amounts represent the maximum future payments the Company would have to pay its CDS counterparties assuming a default of the underlying credit and zero recovery on the underlying issuer obligations.
(2)
The weighted average maturity of the CDS is weighted based on notional amounts.
(3)
Ratings are based on S&P where available followed by Moody’s, DBRS, and Fitch. If no rating is available from a rating agency, an internally developed rating is used.
Summary of Effect of Conditional Master Netting and Similar Arrangements
The following table presents the effect of conditional master netting and similar arrangements. Similar arrangements may include global master repurchase agreements, global master securities lending agreements, and any related rights to financial collateral pledged or received.
 
 
 
 
 
 
Related amounts not set off in the
Consolidated Statements of
Financial Position
 
 
 
 
 
 
 
As at December 31, 2022
 
Gross amounts of
financial instruments
(1)
 
 
Amounts subject to
an enforceable
master netting
arrangement or
similar agreements
 
 
Financial
and cash
collateral
pledged
(received)
(2)
 
 
Net
amount
including
financing
entity
(3)
 
 
Net
amounts
excluding
financing
entity
 
Financial assets
 
 
 
 
 
Derivative assets
  
$
9,072
 
  
$
(7,170
) 
  
$
(1,687
) 
  
$
215
 
  
$
 215
 
Securities lending
  
 
723
 
  
 
–
 
  
 
(723
) 
  
 
–
 
  
 
–
 
Reverse repurchase agreements
  
 
895
 
  
 
(779
) 
  
 
(116
) 
  
 
–
 
  
 
–
 
Total financial assets
  
$
10,690
 
  
$
(7,949
) 
  
$
 (2,526
) 
  
$
215
 
  
$
215
 
Financial liabilities
                                        
Derivative liabilities
  
$
 (15,151
) 
  
$
7,170
 
  
$
7,834
 
  
$
(147
) 
  
$
(103
) 
Repurchase agreements
  
 
(895
) 
  
 
779
 
  
 
116
 
  
 
–
 
  
 
–
 
Total financial liabilities
  
$
(16,046
) 
  
$
 7,949
 
  
$
7,950
 
  
$
(147
) 
  
$
(103
) 
         
          Related amounts not set off in the
Consolidated Statements of
Financial Position		              
As at December 31, 2021   Gross amounts of
financial instruments
(1)
     Amounts subject to
an enforceable
master netting
arrangement or
similar agreements		     Financial
and cash
collateral
pledged
(received)
(2)
     Net
amount
including
financing
entity
(3)
     Net
amounts
excluding
financing
entity		  
Financial assets
                                        
Derivative assets
   $ 18,226     $ (8,410 )    $ (9,522 )    $ 294     $ 294  
Securities lending
     564       –       (564 )      –       –  
Reverse repurchase agreements
     1,490       (183 )      (1,307 )      –       –  
Total financial assets
   $ 20,280     $   (8,593 )    $   (11,393 )    $ 294     $   294  
Financial liabilities
                                        
Derivative liabilities
   $ (10,940 )    $ 8,410     $ 2,250     $   (280 )    $ (79 ) 
Repurchase agreements
     (536 )      183       353       –       –  
Total financial liabilities
   $   (11,476 )    $ 8,593     $ 2,603     $ (280 )    $ (79 ) 
 
(1)
Financial assets and liabilities include accrued interest of $488 and $862, respectively (2021 – $725 and $902, respectively).
(2)
Financial and cash collateral exclude over-collateralization. As at December 31, 2022, the Company was over-collateralized on OTC derivative assets, OTC derivative liabilities, securities lending and reverse repurchase agreements and repurchase agreements in the amounts of $507, $1,528, $63 and $nil, respectively (2021 – $599, $875, $36 and $2, respectively). As at December 31, 2022, collateral pledged (received) does not include
collateral-in-transit
on OTC instruments or initial margin on exchange traded contracts or cleared contracts.
(3)
Includes derivative contracts entered between the Company and its financing entity which it does not consolidate. The Company does not exchange collateral on derivative contracts entered with this entity. Refer to note 18.
Summary of the Effect of Unconditional Netting The following table presents the effect of unconditional netting.
 
As at December 31, 2022
   Gross amounts of
financial instruments		     Amounts subject to
an enforceable
netting arrangement		     Net amounts of
financial instruments		  
Credit linked note
(1)
  
$
1,242
 
  
$
(1,242
) 
  
$
–
 
Variable surplus note
  
 
(1,242
) 
  
 
1,242
 
  
 
–
 
As at December 31, 2021   Gross amounts of
financial instruments		     Amounts subject to
an enforceable
netting arrangement		     Net amounts of
financial instruments		  
Credit linked note
(1)
   $ 1,054       $  (1,054 )    $   –  
Variable surplus note
       (1,054 )      1,054       –  
 
(1)
As at December 31, 2022 and 2021, the Company had no fixed surplus notes outstanding, refer to note 19(g).
Schedule of Distribution of Debt Securities and Private Placements Portfolio by Sector and Industry
The following table presents debt securities and private placements portfolio by sector and industry.
 
   
2022
           2021  
As at December 31,
   Carrying value     % of total           Carrying value     % of total  
Government and agency
  
$
77,236
 
  
 
31
 
           $ 84,244       32  
Utilities
  
 
46,315
 
  
 
18
 
             48,372       18  
Financial
  
 
38,808
 
  
 
15
 
             38,905       15  
Consumer
  
 
31,556
 
  
 
13
 
             32,671       12  
Energy
  
 
16,314
 
  
 
7
 
             19,637       7  
Industrial
  
 
23,823
 
  
 
9
 
             24,727       9  
Other
  
 
16,909
 
  
 
7
 
             18,425       7  
Total
  
$
  250,961
 
  
 
100
 
           $   266,981       100  
Schedule of Geographic Concentration of Insurance and Investment Contract Liabilities, Including Embedded Derivatives
The geographic concentration of the Company’s insurance and investment contract liabilities, including embedded derivatives, is shown below. The disclosure is based on the countries in which the business is written.
 
As at December 31, 2022
   Gross
liabilities		     Reinsurance
assets		     Net liabilities  
U.S. and Canada
  
$
251,305
 
  
$
(45,898
) 
  
$
205,407
 
Asia and Other
  
 
123,808
 
  
 
(1,814
) 
  
 
121,994
 
Total
  
$
375,113
 
  
$
(47,712
) 
  
$
327,401
 
       
As at December 31, 2021   Gross
liabilities		     Reinsurance
assets		     Net liabilities  
U.S. and Canada
   $   271,090     $   (42,806 )    $   228,284  
Asia and Other
     124,398       (1,773 )      122,625  
Total
   $ 395,488     $ (44,579 )    $ 350,909  
Asset classes and individual investment risks [Member]  
Statement [LineItems]  
Schedule of Risk Concentrations
 
As at December 31,
  
2022
     2021  
Debt securities and private placements rated as investment grade BBB or higher
(1)
  
 
96%
 
     97%  
Government debt securities as a per cent of total debt securities
  
 
36%
 
     36%  
Government private placements as a per cent of total private placements
  
 
10%
 
     11%  
Highest exposure to a single
non-government
debt security and private placement issuer
  
$
1,006
 
   $ 1,167  
Largest single issuer as a per cent of the total equity portfolio
  
 
  2%
 
     2%  
Income producing commercial office properties (2022 – 41% of real estate, 2021 – 47%)
  
$
5,486
 
   $ 6,244  
Largest concentration of mortgages and real estate
(2)
– Ontario Canada (2022 – 27%, 2021 – 28%)
  
$
18,343
 
   $   18,253  
 
(1)
Investment grade debt securities and private placements include 39% rated A, 17% rated AA and 14% rated AAA (2021 – 39%, 17% and 15%) investments based on external ratings where available.
(2)
Mortgages and real estate investments are diversified geographically and by property type.
Residential mortgages and loans to bank clients [Member]  
Statement [LineItems]  
Summary of Carrying Value of Residential Mortgages and Loans to Bank Clients
The following table presents credit quality of residential mortgages and loans to Bank clients.
 
   
2022
    
    
    
2021
  
As at December 31,
   Insured     Uninsured     Total           Insured     Uninsured     Total  
Residential mortgages
                                                        
Performing
  
$
  7,015
 
  
$
14,569
 
  
$
21,584
 
           $ 7,264     $ 13,272     $ 20,536  
Non-performing
(1)
  
 
8
 
  
 
33
 
  
 
41
 
             6       12       18  
Loans to Bank clients
                                                        
Performing
  
 
  n/a
 
  
 
2,778
 
  
 
2,778
 
             n/a       2,506       2,506  
Non-performing
(1)
  
 
n/a
 
  
 
3
 
  
 
3
 
             n/a       –       –  
Total
  
$
7,023
 
  
$
  17,383
 
  
$
  24,406
 
           $   7,270     $   15,790     $   23,060  
 
(1)
Non-performing
refers to payments that are 90 days or more past due.