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Derivative and Hedging Instruments (Tables)
 12 Months Ended
Dec. 31, 2024
Derivative And Hedging Instruments [Abstract]  
Summary of Gross Notional Amount and Fair Value of Derivative Instruments The following table presents gross notional amount and fair value of derivative instruments by the underlying risk exposure.
As at December 31,
2024
2023
Notional
amount
Fair value
Notional
amount
Fair value
Type of hedge
Instrument type
Assets
Liabilities
Assets
Liabilities
Qualifying hedge accounting relationships
Fair value hedges
Interest rate swaps
$206,181
$2,734
$3,533
$184,309
$2,627
$3,044
Foreign currency swaps
14,121
145
2,114
9,055
78
1,518
Forward contracts
25,692
74
3,420
23,461
165
2,672
Cash flow hedges
Interest rate swaps
9,036
24
48
8,372
20
48
Foreign currency swaps
650
-
216
1,150
35
181
Forward contracts
-
-
-
-
-
-
Equity contracts
324
6
-
240
3
-
Net investment hedges
Forward contracts
602
18
-
654
-
16
Total derivatives in qualifying hedge accounting
relationships
256,606
3,001
9,331
227,241
2,928
7,479
Derivatives not designated in qualifying hedge
  accounting relationships
Interest rate swaps
110,114
2,188
2,906
103,806
2,361
3,098
Interest rate futures
9,054
-
-
9,449
-
-
Interest rate options
5,633
16
-
5,841
33
-
Foreign currency swaps
33,924
1,854
272
33,148
1,873
398
Currency rate futures
2,238
-
-
2,581
-
-
Forward contracts
52,044
882
1,675
34,080
769
597
Equity contracts
25,290
724
63
19,760
579
115
Credit default swaps
114
2
-
131
3
-
Equity futures
4,004
-
-
4,040
-
-
Total derivatives not designated in qualifying hedge
  accounting relationships
242,415
5,666
4,916
212,836
5,618
4,208
Total derivatives
$499,021
$8,667
$14,247
$440,077
$8,546
$11,687
Summary of Fair Values of Derivative Instruments by Remaining Term to Maturity The following tables present the fair values of the derivative instruments by the remaining term to maturity. Fair values disclosed
below do not incorporate the impact of master netting agreements (refer to note 8 (g)).
Remaining term to maturity
As at December 31, 2024
Less than
1 year
1 to 3
years
3 to 5
years
Over 5
years
Total
Derivative assets
$1,171
$578
$635
$6,283
$8,667
Derivative liabilities
2,320
2,304
1,244
8,379
14,247
Remaining term to maturity
As at December 31, 2023
Less than
1 year
1 to 3
years
3 to 5
years
Over 5
years
Total
Derivative assets
$1,189
$603
$573
$6,181
$8,546
Derivative liabilities
1,561
1,982
717
7,427
11,687
Summary of Maturity Analysis for Derivative Financial Assets The following tables present the fair values of the derivative instruments by the remaining term to maturity. Fair values disclosed
below do not incorporate the impact of master netting agreements (refer to note 8 (g)).
Remaining term to maturity
As at December 31, 2024
Less than
1 year
1 to 3
years
3 to 5
years
Over 5
years
Total
Derivative assets
$1,171
$578
$635
$6,283
$8,667
Derivative liabilities
2,320
2,304
1,244
8,379
14,247
Remaining term to maturity
As at December 31, 2023
Less than
1 year
1 to 3
years
3 to 5
years
Over 5
years
Total
Derivative assets
$1,189
$603
$573
$6,181
$8,546
Derivative liabilities
1,561
1,982
717
7,427
11,687
Summary of Gross Notional Amount by Remaining Term to Maturity The following tables present gross notional amount by the remaining term to maturity, total fair value (including accrued interest),
credit equivalent amount and capital requirement by contract type.
Remaining term to maturity (notional amounts)
Fair value
As at December 31, 2024
Less than
1 year
1 to 5
years
Over
5 years
Total
Positive
Negative
Net
Credit
equivalent
amount(1)
Capital
requirement(2)
Interest rate contracts
OTC swap contracts
$6,999
$25,019
$112,685
$144,703
$5,103
$(6,976)
$(1,873)
$323
$9
Cleared swap contracts
9,507
31,033
140,088
180,628
240
(189)
51
-
-
Forward contracts
20,661
21,028
-
41,689
231
(4,467)
(4,236)
36
1
Futures
9,054
-
-
9,054
-
-
-
-
-
Options purchased
863
1,086
3,684
5,633
16
-
16
17
-
Subtotal
47,084
78,166
256,457
381,707
5,590
(11,632)
(6,042)
376
10
Foreign exchange
Swap contracts
2,044
13,733
32,918
48,695
1,983
(2,709)
(726)
1,028
19
Forward contracts
29,423
1,105
6,121
36,649
743
(628)
115
698
17
Futures
2,238
-
-
2,238
-
-
-
-
-
Subtotal
33,705
14,838
39,039
87,582
2,726
(3,337)
(611)
1,726
36
Credit derivatives
-
114
-
114
2
-
2
-
-
Equity contracts
Swap contracts
1,926
762
-
2,688
31
(14)
17
27
-
Futures
4,004
-
-
4,004
-
-
-
-
-
Options purchased
19,437
3,489
-
22,926
699
(43)
656
375
3
Subtotal
25,367
4,365
-
29,732
732
(57)
675
402
3
Subtotal including accrued
interest
106,156
97,369
295,496
499,021
9,048
(15,026)
(5,978)
2,504
49
Less accrued interest
-
-
-
-
381
(779)
(398)
-
-
Total
$106,156
$97,369
$295,496
$499,021
$8,667
$(14,247)
$(5,580)
$2,504
$49
Remaining term to maturity (notional amounts)
Fair value
As at December 31, 2023
Less than
1 year
1 to 5
years
Over
5 years
Total
Positive
Negative
Net
Credit
equivalent
amount(1)
Capital
requirement(2)
Interest rate contracts
OTC swap contracts
$4,645
$20,923
$106,445
$132,013
$5,295
$(6,850)
$(1,555)
$300
$7
Cleared swap contracts
4,634
33,082
126,758
164,474
220
(180)
40
-
-
Forward contracts
17,809
16,182
-
33,991
771
(2,986)
(2,215)
-
-
Futures
9,449
-
-
9,449
-
-
-
-
-
Options purchased
795
1,362
3,684
5,841
33
-
33
8
-
Subtotal
37,332
71,549
236,887
345,768
6,319
(10,016)
(3,697)
308
7
Foreign exchange
Swap contracts
2,110
11,782
29,461
43,353
1,978
(2,179)
(201)
1,087
19
Forward contracts
24,204
-
-
24,204
163
(299)
(136)
19
-
Futures
2,581
-
-
2,581
-
-
-
-
-
Subtotal
28,895
11,782
29,461
70,138
2,141
(2,478)
(337)
1,106
19
Credit derivatives
14
117
-
131
4
-
4
-
-
Equity contracts
Swap contracts
1,452
723
-
2,175
18
(78)
(60)
32
-
Futures
4,040
-
-
4,040
-
-
-
-
-
Options purchased
14,830
2,995
-
17,825
562
(28)
534
215
2
Subtotal
20,336
3,835
-
24,171
584
(106)
478
247
2
Subtotal including accrued
interest
86,563
87,166
266,348
440,077
9,044
(12,600)
(3,556)
1,661
28
Less accrued interest
-
-
-
-
498
(913)
(415)
-
-
Total
$86,563
$87,166
$266,348
$440,077
$8,546
$(11,687)
$(3,141)
$1,661
$28
(1)Credit equivalent amount is the sum of replacement cost and the potential future credit exposure less any collateral held. Replacement cost represents the current
cost of replacing all contracts with a positive fair value. The amounts take into consideration legal contracts that permit offsetting of positions. The potential future
credit exposure is calculated based on a formula prescribed by the Office of the Superintendent of Financial Institutions (“OSFI”).
(2)Capital requirement represents the credit equivalent amount, weighted according to the creditworthiness of the counterparty, as prescribed by OSFI.
Summary of Average Rate of Hedging Instruments in Hedge Relationships That Do Not Frequently Reset The following tables present the average rate of the hedging instruments in key hedge relationships that do not frequently reset.
As at December 31, 2024
Remaining term to maturity             
(notional amounts)
Fair value
Hedged item
Hedging instrument
Average rate
Less than
1 year
1 to 5
years
Over 5
years
Total
Positive
Negative
Net
Inflation risk
Inflation linked insurance
liabilities
Interest rate swaps
CPI rate: 290.22
$92
$568
$8,376
$9,036
$24
$(48)
$(24)
Foreign exchange risk
Foreign currency assets
Foreign currency
swaps
CAD/EUR: 0.66703
-
160
1,311
1,471
16
-
16
Foreign currency assets
Foreign currency
swaps
CAD/GBP: 0.56259
-
115
434
549
22
-
22
Foreign currency assets
Foreign currency
swaps
CAD/USD: 0.73009
165
407
1,067
1,639
9
(27)
(18)
Foreign exchange and
interest rate risk
Floating rate foreign
currency liabilities
Foreign currency
swaps
CAD/USD: 0.86655
-
-
650
650
-
(216)
(216)
Debt securities at fair value
through OCI
Foreign currency
swaps
CAD/USD: 1.22914
42
9
-
51
7
-
7
Equity risk
Stock-based compensation
Equity contracts
MFC price: $30.12
20
304
-
324
6
-
6
Total
$319
$1,563
$11,838
$13,720
$84
$(291)
$(207)
As at December 31, 2023
Remaining term to maturity             
(notional amounts)
Fair value
Hedged item
Hedging instrument
Average rate
Less than
1 year
1 to 5
years
Over 5
years
Total
Positive
Negative
Net
Inflation risk
Inflation linked insurance
liabilities
Interest rate swaps
CPI rate: 290.13
$87
$459
$7,826
$8,372
$20
$(48)
$(28)
Foreign exchange risk
Fixed rate liabilities
Foreign currency
swaps
SGD/CAD: 0.93503
500
-
-
500
35
-
35
Foreign exchange and
interest rate risk
Floating rate foreign
currency liabilities
Foreign currency
swaps
CAD/USD: 0.86655
-
-
650
650
-
(181)
(181)
Debt securities at fair value
through OCI
Foreign currency
swaps
CAD/USD: 1.22914
-
46
-
46
5
-
5
Equity risk
Stock-based compensation
Equity contracts
MFC price: $26.28
11
229
-
240
3
-
3
Total
$598
$734
$8,476
$9,808
$63
$(229)
$(166)
Summary of Fair Value Contracts Categorized by Hierarchy Explanatory Fair value and the fair value hierarchy of derivative instruments
As at December 31, 2024
Fair value
Level 1
Level 2
Level 3
Derivative assets
Interest rate contracts
$5,193
$-
$5,026
$167
Foreign exchange contracts
2,742
-
2,742
-
Equity contracts
730
-
730
-
Credit default swaps
2
-
2
-
Total derivative assets
$8,667
$-
$8,500
$167
Derivative liabilities
Interest rate contracts
$10,954
$-
$7,571
$3,383
Foreign exchange contracts
3,230
-
3,227
3
Equity contracts
63
-
47
16
Total derivative liabilities
$14,247
$-
$10,845
$3,402
As at December 31, 2023
Fair value
Level 1
Level 2
Level 3
Derivative assets
Interest rate contracts
$5,813
$-
$5,262
$551
Foreign exchange contracts
2,148
-
2,148
-
Equity contracts
582
-
572
10
Credit default swaps
3
-
3
-
Total derivative assets
$8,546
$-
$7,985
$561
Derivative liabilities
Interest rate contracts
$9,176
$-
$6,451
$2,725
Foreign exchange contracts
2,396
-
2,395
1
Equity contracts
115
-
114
1
Total derivative liabilities
$11,687
$-
$8,960
$2,727
Movement in net derivatives measured at fair value using significant non-market observable inputs (Level 3) is presented in note
3 (g).
Summary of Recognizes Gains and (Losses) on Derivatives and Related Hedged Items in Fair Value Hedges in Total Investment The Company recognizes gains and losses on derivatives and the related hedged items in fair value hedges in total investment
result. These investment gains (losses) are shown in the following tables.
For the year ended December 31, 2024
Change in
value of the
hedged item
for
ineffectiveness
measurement
Change in
value of the
hedging
instrument for
ineffectiveness
measurement
Ineffectiveness
recognized in
Total
investment
result
Carrying
amount for
hedged
items(1)
Accumulated
fair value
adjustments
on hedged
items
Accumulated
fair value
adjustments on
de-designated
hedged items
Assets
Interest rate risk
Debt securities at FVOCI
$(833)
$812
$(21)
$117,538
$(1)
$(601)
Foreign currency risk
Debt securities at FVOCI
(80)
80
-
3,561
-
-
Foreign currency and interest rate risk
Debt securities at FVOCI
451
(559)
(108)
11,130
(367)
196
Total assets
$(462)
$333
$(129)
$132,229
$(368)
$(405)
Liabilities
Interest rate risk
Insurance contract liabilities 
$3,591
$(3,329)
$262
$47,747
$3,386
$237
Foreign currency and interest rate risk
Insurance contract liabilities
55
(17)
38
3,167
137
-
Total liabilities
$3,646
$(3,346)
$300
$50,914
$3,523
$237
For the year ended December 31, 2023
Change in
value of the
hedged item
for
ineffectiveness
measurement
Change in
value of the
hedging
instrument for
ineffectiveness
measurement
Ineffectiveness
recognized in
Total
investment
result
Carrying
amount for
hedged
items(1)
Accumulated
fair value
adjustments
on hedged
items
Accumulated
fair value
adjustments on
de-designated
hedged items
Assets
Interest rate risk
Debt securities at FVOCI
$-
$-
$-
$-
$-
$241
Foreign currency and interest rate risk
Debt securities at FVOCI
742
(778)
(36)
9,191
576
(405)
Total assets
$742
$(778)
$(36)
$9,191
$576
$(164)
Liabilities
Interest rate risk
Insurance contract liabilities 
$(53)
$185
$132
$29,133
$(2,658)
$2,642
Total liabilities
$(53)
$185
$132
$29,133
$(2,658)
$2,642
(1)The carrying amounts for hedged items presented are related to hedged items in active hedging relationships as at the reporting date.
For the year ended
December 31, 2024
Hedged items in qualifying cash flow hedging
relationships
Change in fair
value of
hedged items
for
ineffectiveness
measurement
Change in fair
value of
hedging
instruments for
ineffectiveness
measurement
Gains (losses)
deferred in
AOCI on
derivatives
Gains (losses)
reclassified
from AOCI into
Total
investment
result
Ineffectiveness
recognized in
Total
investment
result
Interest rate risk
Treasury locks
Forecasted liability issuance
$3
$(3)
$(3)
$-
$-
Foreign exchange risk
Foreign currency swaps
Fixed rate liabilities
(23)
23
23
26
-
Interest and foreign
exchange risk
Foreign currency swaps
Floating rate liabilities
32
(32)
(32)
(75)
-
Equity price risk
Equity contracts
Stock-based compensation
(145)
145
145
66
-
CPI risk
Interest rate swaps(1)
Inflation linked insurance liabilities
(60)
60
60
17
-
Total
$(193)
$193
$193
$34
$-
For the year ended   
December 31, 2023
Hedged items in qualifying cash flow hedging
relationships
Change in fair
value of
hedged items
for
ineffectiveness
measurement
Change in fair
value of
hedging
instruments for
ineffectiveness
measurement
Gains (losses)
deferred in
AOCI on
derivatives
Gains (losses)
reclassified
from AOCI into
Total
investment
result
Ineffectiveness
recognized in
Total
investment
result
Interest rate risk
Treasury locks
Forecasted liability issuance
$(1)
$1
$1
$-
$-
Foreign exchange risk
Foreign currency swaps
Fixed rate liabilities
10
(10)
(10)
(8)
-
Interest and foreign
exchange risk
Foreign currency swaps
Floating rate liabilities
(23)
23
23
16
-
Equity price risk
Equity contracts
Stock-based compensation
(40)
40
40
3
-
CPI risk
Interest rate swaps(1)
Inflation linked insurance liabilities
4
(4)
(4)
81
-
Total
$(50)
$50
$50
$92
$-
(1)Gains (losses) deferred in AOCI on derivatives are presented in AOCI under Insurance finance income (expenses).
Summary of Balances in the Company’s Cash Flow Hedge Reserve The table below details the balances in the Company’s cash flow hedge reserve.
As at December 31,
2024
2023
Balances in the cash flow hedge reserve for continuing hedges
$10
$(149)
Balances remaining in the cash flow hedge reserve on de-designated hedges
-
-
Total
$10
$(149)
Summary of Investment Hedging Relationships on Consolidated Statements of Income and Consolidated Statements of Other Comprehensive Income The effects of net investment hedging relationships on the Consolidated Statements of Income and the Consolidated Statements
of Other Comprehensive Income are shown in the following tables.
For the year ended December 31, 2024
Change in fair
value of
hedged items
for
ineffectiveness
measurement
Change in fair
value of
hedging
instruments for
ineffectiveness
measurement
Gains (losses)
deferred in
AOCI
Gains (losses)
reclassified
from AOCI
into Total
investment
result
Ineffectiveness
recognized in
Total
investment
result
Non-functional currency denominated debt
$665
$(665)
$(665)
$-
$-
Forward currency contracts
(45)
45
45
-
-
Total
$620
$(620)
$(620)
$-
$-
For the year ended December 31, 2023
Change in fair
value of
hedged items
for
ineffectiveness
measurement
Change in fair
value of
hedging
instruments for
ineffectiveness
measurement
Gains (losses)
deferred in
AOCI
Gains (losses)
reclassified
from AOCI
into Total
investment
result
Ineffectiveness
recognized in
Total
investment
result
Non-functional currency denominated debt
$(195)
$195
$195
$-
$-
Forward currency contracts
(1)
1
1
-
-
Total
$(196)
$196
$196
$-
$-
Summary of Balances in Company’s Net Investment Hedge Reserve The table below details the balances in the Company’s net investment hedge reserve.
As at December 31,
2024
2023
Balances in the foreign currency translation reserve for continuing hedges
$(561)
$59
Balances remaining in the net investment hedge reserve on de-designated hedges
-
-
Total
$(561)
$59
Summary of Reconciliation of Accumulated Other Comprehensive Income (Loss) Related to Cash Flow Hedges Reconciliation of accumulated other comprehensive income (loss) related to cash flow hedges
For the year ended December 31, 2024
Accumulated other
comprehensive
income (loss),
beginning of year
Hedging gains
(losses)
recognized in
AOCI during
the year
Reclassification
from AOCI to
income
Accumulated other
comprehensive
income (loss), end
of year
Reclassification
adjustment related
to de-designated
hedges as hedged
item affects income
Reclassification
adjustment related to items
for which the hedged
future cash flows are no
longer expected to occur
Interest rate risk
$1
$(3)
$-
$(2)
$-
$-
Interest rate and foreign exchange
risk
(107)
(32)
(75)
(64)
-
-
Foreign exchange translation risk
3
23
26
-
-
-
CPI risk
(85)
60
17
(42)
-
-
Equity price risk
39
145
66
118
-
-
Total
$(149)
$193
$34
$10
$-
$-
For the year ended December 31, 2023
Accumulated other
comprehensive
income (loss),
beginning of year
Hedging gains
(losses)
recognized in
AOCI during
the year
Reclassification
from AOCI to
income
Accumulated other
comprehensive
income (loss), end
of year
Reclassification
adjustment related
to de-designated
hedges as hedged
item affects income
Reclassification
adjustment related to items
for which the hedged
future cash flows are no
longer expected to occur
Interest rate risk
$-
$1
$-
$1
$-
$-
Interest rate and foreign exchange
risk
(114)
23
16
(107)
-
-
Foreign exchange translation risk
5
(10)
(8)
3
-
-
CPI risk
-
(4)
81
(85)
-
-
Equity price risk
2
40
3
39
-
-
Total
$(107)
$50
$92
$(149)
$-
$-
Summary of Reconciliation of Accumulated Other Comprehensible Income (Loss) Related to Net Investment Hedges Reconciliation of accumulated other comprehensive income (loss) related to net investment hedges
For the year ended December 31, 2024
Accumulated other
comprehensive
income (loss),
beginning of year
Hedging gains
(losses)
recognized in
AOCI during
the year
Reclassification
from AOCI to
income
Accumulated other
comprehensive
income (loss), end
of year
Reclassification
adjustment related
to de-designated
hedges as hedged
item affects income
Reclassification
adjustment related to items
for which the hedged
future cash flows are no
longer expected to occur
Foreign exchange translation risk
$59
$(620)
$-
$(561)
$-
$-
For the year ended December 31, 2023
Accumulated other
comprehensive
income (loss),
beginning of year
Hedging gains
(losses)
recognized in
AOCI during
the year
Reclassification
from AOCI to
income
Accumulated other
comprehensive
income (loss), end
of year
Reclassification
adjustment related
to de-designated
hedges as hedged
item affects income
Reclassification
adjustment related to items
for which the hedged
future cash flows are no
longer expected to occur
Foreign exchange translation risk
$(137)
$196
$-
$59
$-
$-
Summary of Movement in Cost of Hedging by Hedged Risk Category The following table provides details of the movement in the cost of
hedging by hedged risk category.
For the year ended December 31,
2024
2023
Foreign exchange risk
Balance, beginning of year
$-
$(3)
Changes in fair value
111
5
Amount reclassified to profit or loss
-
2
Balance, end of year
$111
$-
Foreign exchange and interest rate risk
Balance, beginning of year
$18
$25
Changes in fair value
(10)
(8)
Amount reclassified to profit or loss
-
(1)
Balance, end of year
$8
$18
Summary of Investment Income (Loss) on Derivatives Not Designated in Qualifying Hedge Accounting Relationships Investment income (loss) on derivatives not designated in qualifying hedge accounting relationships
For the years ended December 31,
2024
2023
Interest rate swaps
$(116)
$667
Interest rate futures
52
57
Interest rate options
(20)
(13)
Foreign currency swaps
108
(4)
Currency rate futures
(137)
(22)
Forward contracts
(626)
612
Equity futures
(423)
(449)
Equity contracts
437
325
Credit default swaps
(1)
-
Total
$(726)
$1,173