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Investment Contract Liabilities
 12 Months Ended
Dec. 31, 2023
Text block [abstract]  
Investment Contract Liabilities
Note 8  Investment Contract Liabilities
Investment contract liabilities are contractual financial obligations of the Company that do not contain significant insurance risk. Those contracts are subsequently measured either at FVTPL or at amortized cost.
(a) Investment contract liabilities designated as FVTPL
Investment contract liabilities measured at fair value are designated as FVTPL on initial recognition and include certain investment savings and pension products. The Company does not have any investment contract liabilities that are mandatorily measured at FVTPL.
The following table presents the movement in investment contract liabilities measured at fair value.
 
For the years ended December 31,
 
2023
 
 
2022
 
Balance, excluding those for account of segregated fund holders, January 1
  
$
    798
 
   $     825  
New contracts
  
 
48
 
     79  
Changes in market conditions
  
 
47
 
     (56 )
Redemptions, surrenders and maturities
  
 
(122
)
     (99 )
Impact of changes in foreign exchange rates
  
 
(22
)
     49  
Balance, excluding those for account of segregated fund holders, December 31
    
749
 
     798  
Investment contract liabilities for account of segregated fund holders
  
 
263,401
 
     238,346  
Balance, December 31
  
$
264,150
 
   $ 239,144  
The amount due to contract holders is
contractually
determined based on specified assets and therefore, the fair value of the liabilities are subject to asset specific performance risk but not the Company’s own credit risk, being fully collateralized. The Company has determined that any residual credit risk is insignificant and has not had any significant impact on the fair value of the liabilities.
(b) Investment contract liabilities measured at amortized cost
Investment contract liabilities measured at amortized cost primarily include fixed annuity products 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, by reporting segment.
 
 
 
2023
 
 
 
 
 
2022
 
As at December 31,
 
Amortized
cost, gross of
reinsurance
ceded
(1)
 
 
Fair value
 
 
  
 
 
Amortized
cost, gross of
reinsurance
ceded
(1)
 
 
Fair value
 
Asia
  
$
    451
 
  
$
 
 
    438
 
           $     636     $     607  
Canada
  
 
7,642
 
  
 
7,534
 
             6,699       6,474  
U.S.
  
 
1,381
 
  
 
1,440
 
             1,535       1,571  
GWAM
  
 
1,593
 
  
 
1,582
 
  
 
 
 
     411    
 
382
 
Investment contract liabilities
  
$
11,067
 
  
$
10,994
    
 
 
 
   $ 9,281     $ 9,034  
 
(1)
 
As at December 31, 2023, investment contract liabilities with carrying value and fair value of $27 and $27, respectively (2022 – $38 and $38, respectively), were reinsured by the Company. The net carrying value and fair value of investment contract liabilities were $11,040 and $10,967 (2022 – $9,243 and $8,996, respectively
).
 
The changes in investment contract liabilities measured at amortized cost resulted from the following business activities.
 
For the years ended December 31,
 
2023
 
 
2022
 
Balance, January 1
  
$
     9,281
 
   $      9,239  
Policy deposits
  
 
3,365
 
    
1,634

  
Interest
  
 
218
 
      
150
  
Withdrawals
  
 
(1,629
)
    
(1,882
)
 
Fees
  
 
1
 
    
–
  
Impact of changes in foreign exchange rates
  
 
(108
)
      
81
  
Other
  
 
(61
)
  
 
59
 
Balance, December 31
  
$
11,067
 
   $ 9,281  
Carrying value reflects amortization at rates that exactly discount the projected cash flows to the net carrying amount of the liabilities at the dates of issue.
Fair value 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, 2023 and 2022, fair value of all investment contract liabilities was determined using Level 2 valuation techniques.
(c) Investment contracts contractual obligations
As at December 31, 2023 and 2022, the Company’s contractual obligations and commitments relating to these investment contracts are as follows.
Investment contract liabilities
(1)
 
As at December 31,
Payments due by period
 
Less than 1
year
 
 
1 to 3
years
 
 
3 to 5
years
 
 
Over
5 years
 
 
Total
 
2023
  
$
  268,537
 
  
$
  2,978
 
  
$
  1,408
 
  
$
  3,488
 
  
$
  276,411
 
2022
 
 
241,301
 
 
 
2,749
 
 
 
1,789
 
 
 
3,932
 
 
 
 249,771
 
 
(1)
 
Due to the nature of the products, the timing of net cash flows may be before contract maturity. Cash flows are undiscounted.