エドガーで原本を確認する
☐ |
REGISTRATION STATEMENT PURSUANT TO SECTION 12 OF THE SECURITIES
EXCHANGE ACT OF 1934
|
☑ |
ANNUAL REPORT PURSUANT TO SECTION 13(a) OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
|
Title of each class |
Trading
Symbol(s)
|
Name of each exchange on which registered |
Common Shares |
MFC |
New York Stock Exchange |
Common Shares |
1,728,734,607 |
Class A Shares Series 2 |
14,000,000 |
Class A Shares Series 3 |
12,000,000 |
Class 1 Shares Series 3 |
6,537,903 |
Class 1 Shares Series 4 |
1,462,097 |
Class 1 Shares Series 9 |
10,000,000 |
Class 1 Shares Series 11 |
8,000,000 |
Class 1 Shares Series 13 |
8,000,000 |
Class 1 Shares Series 15 |
8,000,000 |
Class 1 Shares Series 17 |
14,000,000 |
Class 1 Shares Series 19 |
10,000,000 |
Class 1 Shares Series 25 |
10,000,000 |
Class 1 Shares Series 271 |
2,000,000 |
Class 1 Shares Series 282 |
1,200,000 |
Class 1 Shares Series 293 |
1,000,000 |
Yes |
☑ |
No |
☐ |
Yes |
☑ |
No |
☐ |
Note 8 |
Risk Management - Securities Lending, Repurchase and Reverse Repurchase Transactions |
Note 17 |
Interests in Structured Entities |
Note 18 |
Commitments and Contingencies |
Manulife Financial Corporation | |
By: |
/s/ James D. Gallagher |
Name: |
James D. Gallagher |
Title: |
General Counsel |
Exhibit |
Description |
97.1 |
Executive Officer Clawback Policy |
99.2 |
Management’s Discussion and Analysis for the fiscal year ended December 31, 2024 |
99.3 |
Annual Information Form dated February 19, 2025 for the fiscal year ended December 31, 2024 |
99.6 |
Section 1350 Certification of Chief Executive Officer |
99.7 |
Section 1350 Certification of Chief Financial Officer |
99.8 |
Consent of Independent Registered Public Accounting Firm |
99.9 |
Consent of Appointed Actuary |
99.10 |
Code of Business Conduct and Ethics |
101 |
Interactive Data File (formatted as Inline XBRL) |
104 |
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
EXECUTIVE OFFICER CLAWBACK POLICY |
1 |
2024 Annual Report |
Consolidated Financial Statements |
3 |
2024 Annual Report |
Consolidated Financial Statements |
5 |
2024 Annual Report |
Consolidated Financial Statements |
7 |
2024 Annual Report |
Consolidated Financial Statements |
Valuation of Insurance Contract Liabilities |
|||
Description of
the matter
|
The Company recorded insurance contract liabilities of $523 billion at December 31, 2024 on its consolidated statement of
financial position, of which $383 billion as disclosed in Note 6 ‘Insurance and Reinsurance Contract Assets and Liabilities’ has
been measured under the variable fee approach (VFA) and the general measurement model (GMM). At initial recognition, the
Company measures a group of insurance contracts as the total of: (a) fulfilment cash flows, which comprise of estimates of future
cash flows, adjusted to reflect the time value of money and financial risks, and a risk adjustment for non-financial risk; and (b) a
contractual service margin (CSM), which represents the estimate of unearned profit the Company will recognize as it provides
service under the insurance contracts or the loss component when the contracts are onerous. When projecting future cash flows
for these insurance contract liabilities, the Company primarily uses deterministic projections using best estimate assumptions.
Key assumptions are subjective and complex and include mortality, morbidity, investment returns, policy termination rates,
premium persistency, directly attributable expenses, taxes, and policyholder dividends. Disclosures on this matter are found in
Note 1 ‘Nature of Operations and Material Accounting Policy Information’ and Note 6 ‘Insurance and Reinsurance Contract
Assets and Liabilities’ of the consolidated financial statements.
Auditing the valuation of these insurance contract liabilities was complex and required the application of significant auditor
judgment due to the complexity of the cash flow models, the selection and use of assumptions, and the interrelationship of these
variables in measuring insurance contract liabilities. The audit effort involved professionals with specialized skills and knowledge
to assist in evaluating the audit evidence obtained.
|
||
How we
addressed the
matter in our
audit
|
We obtained an understanding, evaluated the design, and tested the operating effectiveness of management’s controls over the
valuation of insurance contract liabilities. The controls we tested related to, among other areas, actuarial methodology, integrity of
data used, controls over relevant information technology, and the assumption setting and implementation processes used by
management.
To test the valuation of insurance contract liabilities, our audit procedures included, among other procedures, involving our
actuarial specialists to assess the methodology and assumptions with respect to compliance with IFRS. We performed audit
procedures over key assumptions, including testing the implementation of those assumptions into the models. These procedures
included testing underlying support and documentation, including reviewing a sample of experience studies supporting specific
assumptions, challenging the nature, timing, and completeness of changes recorded, and assessing whether individual changes
were errors or refinements of estimates. We also tested the methodology and calculation of the insurance contract liabilities
through both review of the calculation logic within the models, and through calculating an independent estimate of the fulfillment
cashflows for a sample of insurance contracts and comparing the results to those determined by the Company and to industry
and other external sources for benchmarking. Additionally, we have performed an independent calculation of the CSM for a
sample of groups of insurance contracts and compared the amounts to the Company’s results. We also assessed the adequacy
of the disclosures related to the valuation of insurance contract liabilities.
|
||
Valuation of Invested Assets and Derivatives with Significant Non-Observable Market Inputs |
|||
Description of
the matter
|
The Company recorded invested assets of $93.9 billion, as disclosed in Note 3 ‘Invested Assets and Investment Income’, and
derivative assets and liabilities of $0.2 billion and $3.4 billion, respectively, as disclosed in Note 4 ‘Derivative and Hedging
Instruments’ at December 31, 2024 within its consolidated statement of financial position which are both (a) measured at fair
value and (b) classified as Level 3 within the Company’s hierarchy of fair value measurements. The Level 3 invested assets
include private placements, commercial mortgages, real estate, timber and agriculture, and private equities valued using internal
models. Level 3 derivative assets and liabilities primarily include bond forwards. There is increased measurement uncertainty in
determining the fair value of these invested assets and derivatives due to volatility in the current economic environment. Fair
values are based on internal models or third-party appraisals that incorporate assumptions with a high-level of subjectivity
including discount rates, credit ratings and related spreads, expected future cash flows, transaction prices of comparable assets,
volatilities, correlations, and repurchase rates. Disclosures on this matter are found in Note 1 ‘Nature of Operations and Material
Accounting Policy Information’, Note 3 ‘Invested Assets and Investment Income’, and Note 4 ‘Derivative and Hedging
Instruments’ of the consolidated financial statements.
Auditing the valuation of these invested assets and derivatives was complex and required the application of significant auditor
judgment in assessing the valuation methodologies and non-observable inputs used. The valuation is sensitive to the significant
non-observable market inputs described above, which are inherently forward-looking and could be affected by future economic
and market conditions. The audit effort involved professionals with specialized skills and knowledge to assist in evaluating the
audit evidence obtained.
|
||
How we
addressed the
matter in our
audit
|
We obtained an understanding, evaluated the design, and tested the operating effectiveness of management’s controls over the
valuation processes. The controls we tested related to, among other areas, management’s determination and approval of
assumptions and methodologies used in model-based valuations. The controls we tested also included controls over relevant
information technology.
To test the valuation, our audit procedures included, among other procedures, involving our valuation specialists to assess the
methodologies and significant inputs and assumptions used by management. These procedures included assessing the
valuation methodologies used with respect to the Company’s policies, valuation guidelines, and industry practice and comparing
a sample of valuation assumptions used against benchmarks including comparable transactions where applicable. We also
performed independent investment valuations on a sample basis to evaluate management’s recorded values. In addition, we
assessed the adequacy of the disclosures related to the valuation of invested assets and derivatives.
|
||
IFRS 9 Hedge Accounting |
|||
Description of
the matter
|
The Company has designated hedge accounting relationships with the objective to reduce potential accounting mismatches
between changes in the fair value of derivatives in income and financial risk of insurance contract liabilities and financial assets in
other comprehensive income. Specifically, the Company has established relationships to hedge the fair value changes of certain
of the Company’s insurance contract liabilities and debt instruments attributable to interest rate risk. The Company has also
established relationships to hedge the risk of fair value changes of certain foreign currency denominated insurance contract
liabilities and debt instruments attributable to foreign currency and interest rate risk. Related to the application of these hedges,
the Company recognized changes in value of hedged assets of ($462) million, and changes in value of hedged liabilities of
$3,646 million, for the year ended December 31, 2024. Disclosures on this matter are found in Note 1 ‘Nature of Operations and
Material Accounting Policy Information’ and Note 4 ‘Derivative and Hedging Instruments’ of the consolidated financial statements.
Auditing the application of hedge accounting was complex and required the application of significant auditor judgement related to
the assessment of the ongoing economic relationship between the risk component of the hedged item and hedging instrument,
the assessment that the hedge ratio between the hedging instrument and the hedged item was consistent with the risk objectives,
and the determination of the resulting accumulated fair value adjustments. The audit effort involved professionals with specialized
skills and knowledge to assist in evaluating the audit evidence obtained.
|
||
How we
addressed the
matter in our
audit
|
We obtained an understanding, evaluated the design, and tested the operating effectiveness of management’s controls over the
application and execution of those strategies, including the implementation of new strategies where applicable, and the
measurements of the accumulated fair value adjustments. The controls we tested included, among others, controls over the
review of the completeness, accuracy, and eligibility of the hedged items and hedging instruments included in the hedging
relationships, determination of the hedge ratio between the hedging instrument and the hedged item with reference to the risk
objectives, and the determination of the resulting accumulated fair value adjustments. The controls we tested also included
controls over relevant information technology.
To assess the Company’s application of these hedge accounting strategies under IFRS 9, our audit procedures included, among
other procedures, involving our hedge accounting and derivative specialists to support our independent testing of the application
of the hedge ratio by the Company and the valuation of a sample of the accumulated fair value adjustments. Other procedures
performed include testing over the completeness and accuracy of the hedged items and hedging instruments designated in these
relationships and the determination of the resulting accumulated fair value adjustments. In addition, we assessed the adequacy
of the disclosures related to hedge accounting.
|
||
9 |
2024 Annual Report |
Consolidated Financial Statements |
As at December 31, |
||
(Canadian $ in millions) |
2024 |
2023 |
Assets |
||
Cash and short-term securities |
$25,789 |
$20,338 |
Debt securities |
210,621 |
212,149 |
Public equities |
33,725 |
25,531 |
Mortgages |
54,447 |
52,421 |
Private placements |
49,668 |
45,606 |
Loans to Bank clients |
2,310 |
2,436 |
Real estate |
13,263 |
13,049 |
Other invested assets |
52,674 |
45,680 |
Total invested assets (note 3) |
442,497 |
417,210 |
Other assets |
||
Accrued investment income |
2,969 |
2,678 |
Derivatives (note 4) |
8,667 |
8,546 |
Insurance contract assets (note 6) |
102 |
145 |
Reinsurance contract held assets (note 6) |
59,015 |
42,651 |
Deferred tax assets |
5,884 |
6,739 |
Goodwill and intangible assets (note 5) |
11,052 |
10,310 |
Miscellaneous |
12,644 |
9,751 |
Total other assets |
100,333 |
80,820 |
Segregated funds net assets (note 22) |
435,988 |
377,544 |
Total assets |
$978,818 |
$875,574 |
Liabilities and Equity |
||
Liabilities |
||
Insurance contract liabilities, excluding those for account of segregated fund holders (note 6) |
$396,401 |
$367,996 |
Reinsurance contract held liabilities (note 6) |
2,669 |
2,831 |
Investment contract liabilities (note 7) |
13,498 |
11,816 |
Deposits from Bank clients |
22,063 |
21,616 |
Derivatives (note 4) |
14,252 |
11,730 |
Deferred tax liabilities |
1,890 |
1,697 |
Other liabilities |
24,936 |
18,879 |
Long-term debt (note 9) |
6,629 |
6,071 |
Capital instruments (note 10) |
7,532 |
6,667 |
Total liabilities, excluding those for account of segregated fund holders |
489,870 |
449,303 |
Insurance contract liabilities for account of segregated fund holders (note 6) |
126,545 |
114,143 |
Investment contract liabilities for account of segregated fund holders |
309,443 |
263,401 |
Insurance and investment contract liabilities for account of segregated fund holders (note 22) |
435,988 |
377,544 |
Total liabilities |
925,858 |
826,847 |
Equity |
||
Preferred shares and other equity (note 11) |
6,660 |
6,660 |
Common shares (note 11) |
20,681 |
21,527 |
Contributed surplus |
204 |
222 |
Shareholders and other equity holders’ retained earnings |
4,764 |
4,819 |
Shareholders and other equity holders’ accumulated other comprehensive income (loss) (“AOCI”): |
||
Insurance finance income (expenses) |
37,999 |
30,010 |
Reinsurance finance income (expenses) |
(7,048) |
(4,634) |
Fair value through other comprehensive income (“OCI”) investments |
(19,733) |
(16,262) |
Translation of foreign operations |
7,327 |
4,801 |
Other |
118 |
(104) |
Total shareholders and other equity holders’ equity |
50,972 |
47,039 |
Participating policyholders’ equity |
567 |
257 |
Non-controlling interests |
1,421 |
1,431 |
Total equity |
52,960 |
48,727 |
Total liabilities and equity |
$978,818 |
$875,574 |
The accompanying notes are an integral part of these Consolidated Financial Statements. | ||
11 |
2024 Annual Report |
Consolidated Financial Statements |
For the years ended December 31, |
||
(Canadian $ in millions except per share amounts) |
2024 |
2023 |
Insurance service result |
||
Insurance revenue (note 6) |
$26,592 |
$23,972 |
Insurance service expenses (note 6) |
(21,822) |
(19,382) |
Net expenses from reinsurance contracts held (note 6) |
(769) |
(613) |
Total insurance service result |
4,001 |
3,977 |
Investment result |
||
Investment income (note 3) |
||
Investment income |
18,249 |
16,180 |
Realized and unrealized gains (losses) on assets supporting insurance and investment contract liabilities |
2,210 |
3,138 |
Investment expenses |
(1,348) |
(1,297) |
Net investment income (loss) |
19,111 |
18,021 |
Insurance finance income (expenses) and effect of movement in foreign exchange rates (note 6) |
(16,219) |
(13,894) |
Reinsurance finance income (expenses) and effect of movement in foreign exchange rates (note 6) |
1,133 |
(734) |
Decrease (increase) in investment contract liabilities (note 6) |
(504) |
(435) |
3,521 |
2,958 |
|
Segregated funds investment result (note 22) |
||
Investment income related to segregated funds net assets |
52,870 |
49,346 |
Financial changes related to insurance and investment contract liabilities for account of segregated fund
holders
|
(52,870) |
(49,346) |
Net segregated funds investment result |
- |
- |
Total investment result |
3,521 |
2,958 |
Other revenue (note 13) |
7,588 |
6,746 |
General expenses |
(4,859) |
(4,330) |
Commissions related to non-insurance contracts |
(1,480) |
(1,345) |
Interest expenses |
(1,681) |
(1,554) |
Net income (loss) before income taxes |
7,090 |
6,452 |
Income tax (expenses) recoveries |
(1,212) |
(845) |
Net income (loss) |
$5,878 |
$5,607 |
Net income (loss) attributed to: |
||
Non-controlling interests |
$247 |
$144 |
Participating policyholders |
246 |
360 |
Shareholders and other equity holders |
5,385 |
5,103 |
$5,878 |
$5,607 |
|
Net income (loss) attributed to shareholders |
$5,385 |
$5,103 |
Preferred share dividends and other equity distributions |
(311) |
(303) |
Common shareholders’ net income (loss) |
$5,074 |
$4,800 |
Earnings per share |
||
Basic earnings per common share (note 11) |
$2.85 |
$2.62 |
Diluted earnings per common share (note 11) |
2.84 |
2.61 |
Dividends per common share |
1.60 |
1.46 |
The accompanying notes are an integral part of these Consolidated Financial Statements. | ||
For the years ended December 31, |
||
(Canadian $ in millions) |
2024 |
2023 |
Net income (loss) |
$5,878 |
$5,607 |
Other comprehensive income (loss), net of tax: |
||
Items that may be subsequently reclassified to net income: |
||
Foreign exchange gains (losses) on: |
||
Translation of foreign operations |
3,109 |
(1,301) |
Net investment hedges |
(583) |
183 |
Insurance finance income (expenses) |
6,462 |
(9,745) |
Reinsurance finance income (expenses) |
(2,280) |
787 |
Fair value through OCI investments: |
||
Unrealized gains (losses) arising during the year on assets supporting insurance and investment contract
liabilities
|
(3,573) |
9,251 |
Reclassification of net realized gains (losses) and provision for credit losses recognized in income |
1,314 |
256 |
Other |
158 |
37 |
Total items that may be subsequently reclassified to net income |
4,607 |
(532) |
Items that will not be reclassified to net income |
66 |
(70) |
Other comprehensive income (loss), net of tax |
4,673 |
(602) |
Total comprehensive income (loss), net of tax |
$10,551 |
$5,005 |
Total comprehensive income (loss) attributed to: |
||
Non-controlling interests |
$4 |
$18 |
Participating policyholders |
310 |
334 |
Shareholders and other equity holders |
10,237 |
4,653 |
For the years ended December 31, |
||
(Canadian $ in millions) |
2024 |
2023 |
Income tax expenses (recoveries) on: |
||
Unrealized foreign exchange gains (losses) on translation of foreign operations |
$1 |
$(1) |
Unrealized foreign exchange gains (losses) on net investment hedges |
(37) |
13 |
Insurance / reinsurance finance income (expenses) |
1,207 |
(1,853) |
Unrealized gains (losses) on fair value through OCI investments |
(480) |
1,863 |
Reclassification of net realized gains (losses) on fair value through OCI investments |
300 |
(8) |
Other |
68 |
(20) |
Total income tax expenses (recoveries) |
$1,059 |
$(6) |
The accompanying notes are an integral part of these Consolidated Financial Statements. | ||
13 |
2024 Annual Report |
Consolidated Financial Statements |
For the years ended December 31, |
||
(Canadian $ in millions) |
2024 |
2023 |
Preferred shares and other equity |
||
Balance, beginning of year |
$6,660 |
$6,660 |
Issued (note 11) |
- |
- |
Redeemed (note 11) |
- |
- |
Balance, end of year |
6,660 |
6,660 |
Common shares |
||
Balance, beginning of year |
21,527 |
22,178 |
Repurchased (note 11) |
(990) |
(745) |
Issued on exercise of stock options and deferred share units |
144 |
94 |
Balance, end of year |
20,681 |
21,527 |
Contributed surplus |
||
Balance, beginning of year |
222 |
238 |
Exercise of stock options and deferred share units |
(18) |
(18) |
Stock option expense |
- |
2 |
Balance, end of year |
204 |
222 |
Shareholders and other equity holders’ retained earnings |
||
Balance, beginning of year |
4,819 |
3,538 |
Net income (loss) attributed to shareholders and other equity holders |
5,385 |
5,103 |
Common shares repurchased (note 11) |
(2,282) |
(850) |
Preferred share dividends and other equity distributions |
(311) |
(303) |
Common share dividends |
(2,848) |
(2,669) |
Other |
1 |
- |
Balance, end of year |
4,764 |
4,819 |
Shareholders and other equity holders’ accumulated other comprehensive income (loss) (“AOCI”): |
||
Balance, beginning of year |
13,811 |
14,261 |
Change in unrealized foreign exchange gains (losses) on net foreign operations |
2,526 |
(1,117) |
Changes in insurance / reinsurance finance income (expenses) |
5,575 |
(7,222) |
Change in unrealized gains (losses) on fair value through OCI investments |
(3,471) |
7,923 |
Other changes in OCI attributed to shareholders and other equity holders |
222 |
(34) |
Balance, end of year |
18,663 |
13,811 |
Total shareholders and other equity holders’ equity, end of year |
50,972 |
47,039 |
Participating policyholders’ equity |
||
Balance, beginning of year |
257 |
(77) |
Net income (loss) attributed to participating policyholders |
246 |
360 |
Other comprehensive income (losses) attributed to policyholders |
64 |
(26) |
Balance, end of year |
567 |
257 |
Non-controlling interests |
||
Balance, beginning of year |
1,431 |
1,427 |
Net income (loss) attributed to non-controlling interests |
247 |
144 |
Other comprehensive income (losses) attributed to non-controlling interests |
(243) |
(126) |
Contributions (distributions and acquisitions), net |
(14) |
(14) |
Balance, end of year |
1,421 |
1,431 |
Total equity, end of year |
$52,960 |
$48,727 |
The accompanying notes are an integral part of these Consolidated Financial Statements. | ||
For the years ended December 31, |
||
(Canadian $ in millions) |
2024 |
2023 |
Operating activities |
||
Net income (loss) |
$5,878 |
$5,607 |
Adjustments: |
||
Increase (decrease) in insurance contract net liabilities (note 6) |
9,435 |
10,697 |
Increase (decrease) in investment contract liabilities |
504 |
435 |
(Increase) decrease in reinsurance contract assets, excluding reinsurance transaction noted below (note 6) |
(613) |
974 |
Amortization of (premium) discount on invested assets |
(290) |
(141) |
Contractual service margin (“CSM”) amortization |
(2,376) |
(1,998) |
Other amortization |
869 |
581 |
Net realized and unrealized (gains) losses and impairment on assets |
(860) |
(2,845) |
Deferred income tax expenses (recoveries) |
311 |
470 |
Net loss on reinsurance transactions (pre-tax) (note 6) |
71 |
- |
Stock option expense |
- |
2 |
Cash provided by operating activities before undernoted items |
12,929 |
13,782 |
Changes in policy related and operating receivables and payables |
13,565 |
6,641 |
Cash provided by (used in) operating activities |
26,494 |
20,423 |
Investing activities |
||
Purchases and mortgage advances |
(131,123) |
(84,021) |
Disposals and repayments |
112,671 |
70,281 |
Change in investment broker net receivables and payables |
290 |
21 |
Net cash increase (decrease) from sale (purchase) of subsidiaries |
(297) |
(1) |
Cash provided by (used in) investing activities |
(18,459) |
(13,720) |
Financing activities |
||
Change in repurchase agreements and securities sold but not yet purchased |
460 |
(693) |
Issue of capital instruments, net (note 10) |
2,591 |
1,194 |
Redemption of capital instruments (note 10) |
(1,886) |
(600) |
Secured borrowing from securitization transactions |
667 |
537 |
Change in deposits from Bank clients, net |
413 |
(895) |
Lease payments |
(118) |
(98) |
Shareholders’ dividends and other equity distributions |
(3,159) |
(2,972) |
Contributions from (distributions to) non-controlling interests, net |
(14) |
(14) |
Common shares repurchased (note 11) |
(3,272) |
(1,595) |
Common shares issued, net (note 11) |
144 |
94 |
Cash provided by (used in) financing activities |
(4,174) |
(5,042) |
Cash and short-term securities |
||
Increase (decrease) during the year |
3,861 |
1,661 |
Effect of foreign exchange rate changes on cash and short-term securities |
1,197 |
(412) |
Balance, beginning of year |
19,884 |
18,635 |
Balance, end of year |
24,942 |
19,884 |
Cash and short-term securities |
||
Beginning of year |
||
Gross cash and short-term securities |
20,338 |
19,153 |
Net payments in transit, included in other liabilities |
(454) |
(518) |
Net cash and short-term securities, beginning of year |
19,884 |
18,635 |
End of year |
||
Gross cash and short-term securities |
25,789 |
20,338 |
Net payments in transit, included in other liabilities |
(847) |
(454) |
Net cash and short-term securities, end of year |
$24,942 |
$19,884 |
Supplemental disclosures on cash flow information |
||
Interest received |
$13,496 |
$12,768 |
Interest paid |
1,574 |
1,548 |
Income taxes paid |
755 |
436 |
The accompanying notes are an integral part of these Consolidated Financial Statements. | ||
15 |
2024 Annual Report |
Consolidated Financial Statements |
Page Number |
Note |
||
Note 1 |
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Note 2 |
|||
Note 3 |
|||
Note 4 |
|||
Note 5 |
|||
Note 6 |
|||
Note 7 |
|||
Note 8 |
|||
Note 9 |
|||
Note 10 |
|||
Note 11 |
|||
Note 12 |
|||
Note 13 |
Revenue from Service Contracts |
||
Note 14 |
Stock-Based Compensation |
||
Note 15 |
Employee Future Benefits |
||
Note 16 |
Income Taxes |
||
Note 17 |
Interests in Structured Entities |
||
Note 18 |
Commitments and Contingencies |
||
Note 19 |
Segmented Information |
||
Note 20 |
Related Parties |
||
Note 21 |
Subsidiaries |
||
Note 22 |
Segregated Funds |
||
Note 23 |
Information Provided in Connection with Investments in Deferred Annuity Contracts and
SignatureNotes Issued or Assumed by John Hancock Life Insurance Company (U.S.A.)
|
||
Note 24 |
Comparatives |
||
17 |
2024 Annual Report |
Consolidated Financial Statements |
19 |
2024 Annual Report |
Consolidated Financial Statements |
21 |
2024 Annual Report |
Consolidated Financial Statements |
23 |
2024 Annual Report |
Consolidated Financial Statements |
25 |
2024 Annual Report |
Consolidated Financial Statements |
27 |
2024 Annual Report |
Consolidated Financial Statements |
29 |
2024 Annual Report |
Consolidated Financial Statements |
31 |
2024 Annual Report |
Consolidated Financial Statements |
33 |
2024 Annual Report |
Consolidated Financial Statements |
As at December 31, 2024 |
FVTPL(1) |
FVOCI(2) |
Other(3) |
Total carrying
value
|
Total fair
value(4)
|
Cash and short-term securities(5) |
$25 |
$19,909 |
$5,855 |
$25,789 |
$25,789 |
Debt securities(6) |
|||||
Canadian government and agency |
1,056 |
18,671 |
- |
19,727 |
19,727 |
U.S. government and agency |
58 |
27,628 |
968 |
28,654 |
28,366 |
Other government and agency |
68 |
35,402 |
- |
35,470 |
35,470 |
Corporate |
2,761 |
121,674 |
527 |
124,962 |
124,762 |
Mortgage / asset-backed securities |
17 |
1,791 |
- |
1,808 |
1,808 |
Public equities (FVTPL mandatory) |
33,725 |
- |
- |
33,725 |
33,725 |
Mortgages |
1,239 |
28,792 |
24,416 |
54,447 |
54,812 |
Private placements |
866 |
48,802 |
- |
49,668 |
49,668 |
Loans to Bank clients |
- |
- |
2,310 |
2,310 |
2,285 |
Real estate |
|||||
Own use property(7),(8) |
- |
- |
2,674 |
2,674 |
2,798 |
Investment property |
- |
- |
10,589 |
10,589 |
10,589 |
Other invested assets |
|||||
Alternative long-duration assets(9) |
34,334 |
389 |
13,140 |
47,863 |
48,875 |
Various other(10) |
140 |
- |
4,671 |
4,811 |
4,811 |
Total invested assets |
$74,289 |
$303,058 |
$65,150 |
$442,497 |
$443,485 |
As at December 31, 2023 |
FVTPL(1) |
FVOCI(2) |
Other(3) |
Total carrying
value
|
Total fair
value(4)
|
Cash and short-term securities(5) |
$1 |
$13,993 |
$6,344 |
$20,338 |
$20,338 |
Debt securities(6) |
|||||
Canadian government and agency |
1,219 |
19,769 |
- |
20,988 |
20,988 |
U.S. government and agency |
1,303 |
26,287 |
888 |
28,478 |
28,251 |
Other government and agency |
90 |
30,576 |
- |
30,666 |
30,666 |
Corporate |
2,372 |
127,190 |
484 |
130,046 |
129,899 |
Mortgage / asset-backed securities |
16 |
1,955 |
- |
1,971 |
1,971 |
Public equities (FVTPL mandatory) |
25,531 |
- |
- |
25,531 |
25,531 |
Mortgages |
1,055 |
28,473 |
22,893 |
52,421 |
52,310 |
Private placements |
654 |
44,952 |
- |
45,606 |
45,606 |
Loans to Bank clients |
- |
- |
2,436 |
2,436 |
2,411 |
Real estate |
|||||
Own use property(7),(8) |
- |
- |
2,591 |
2,591 |
2,716 |
Investment property |
- |
- |
10,458 |
10,458 |
10,458 |
Other invested assets |
|||||
Alternative long-duration assets(9) |
29,671 |
360 |
11,403 |
41,434 |
42,313 |
Various other(10) |
126 |
- |
4,120 |
4,246 |
4,246 |
Total invested assets |
$62,038 |
$293,555 |
$61,617 |
$417,210 |
$417,704 |
For the year ended December 31, 2024 |
FVTPL |
FVOCI |
Other(1) |
Total |
Cash and short-term securities |
||||
Interest income |
$1 |
$978 |
$- |
$979 |
Gains (losses)(2) |
- |
72 |
- |
72 |
Debt securities |
||||
Interest income |
156 |
7,914 |
29 |
8,099 |
Gains (losses)(2) |
(44) |
(1,621) |
- |
(1,665) |
Impairment (loss) / recovery, net |
- |
92 |
- |
92 |
Public equities |
||||
Dividend income |
814 |
- |
- |
814 |
Gains (losses)(2) |
4,324 |
- |
- |
4,324 |
Mortgages |
||||
Interest income |
47 |
1,203 |
1,154 |
2,404 |
Gains (losses)(2) |
32 |
(165) |
5 |
(128) |
Impairment (loss) / recovery, net |
- |
104 |
1 |
105 |
Private placements |
||||
Interest income |
36 |
2,473 |
- |
2,509 |
Gains (losses)(2) |
25 |
284 |
- |
309 |
Impairment (loss) / recovery, net |
- |
(47) |
- |
(47) |
Loans to Bank clients |
||||
Interest income |
- |
- |
176 |
176 |
Impairment (loss) / recovery, net |
- |
- |
(3) |
(3) |
Real estate |
||||
Rental income, net of depreciation(3) |
- |
- |
460 |
460 |
Gains (losses)(2) |
- |
- |
(596) |
(596) |
Impairment (loss) / recovery, net |
- |
- |
- |
- |
Derivatives |
||||
Interest income, net |
(438) |
- |
- |
(438) |
Gains (losses)(2) |
(675) |
- |
- |
(675) |
Other invested assets |
||||
Interest income |
20 |
12 |
- |
32 |
Timber, agriculture and other income |
1,675 |
- |
770 |
2,445 |
Gains (losses)(2) |
1,098 |
8 |
123 |
1,229 |
Impairment (loss) / recovery, net |
- |
(8) |
(30) |
(38) |
Total investment income (loss) |
$7,071 |
$11,299 |
$2,089 |
$20,459 |
Investment income |
||||
Interest income |
$(178) |
$12,580 |
$1,359 |
$13,761 |
Dividends, rental income and other income |
2,489 |
- |
1,230 |
3,719 |
Impairment (loss) / recovery, net |
- |
141 |
(32) |
109 |
Other |
354 |
309 |
(3) |
660 |
2,665 |
13,030 |
2,554 |
18,249 |
|
Realized and unrealized gains (losses) on assets supporting insurance and
investment contract liabilities
|
||||
Debt securities |
(45) |
(1,812) |
- |
(1,857) |
Public equities |
4,178 |
- |
- |
4,178 |
Mortgages |
32 |
(188) |
5 |
(151) |
Private placements |
25 |
210 |
- |
235 |
Real estate |
- |
- |
(592) |
(592) |
Other invested assets |
1,075 |
59 |
122 |
1,256 |
Derivatives |
(859) |
- |
- |
(859) |
4,406 |
(1,731) |
(465) |
2,210 |
|
Total investment income (loss) |
$7,071 |
$11,299 |
$2,089 |
$20,459 |
Investment expenses |
(1,348) |
|||
Net investment income (loss) |
$19,111 |
35 |
2024 Annual Report |
Consolidated Financial Statements |
For the year ended December 31, 2023 |
FVTPL |
FVOCI |
Other(1) |
Total |
Cash and short-term securities |
||||
Interest income |
$- |
$837 |
$- |
$837 |
Gains (losses)(2) |
- |
10 |
- |
10 |
Debt securities |
||||
Interest income |
212 |
7,437 |
28 |
7,677 |
Gains (losses)(2) |
152 |
262 |
- |
414 |
Impairment (loss) / recovery, net |
- |
(4) |
- |
(4) |
Public equities |
||||
Dividend income |
625 |
- |
- |
625 |
Gains (losses)(2) |
2,255 |
- |
- |
2,255 |
Mortgages |
||||
Interest income |
- |
2,290 |
- |
2,290 |
Gains (losses)(2) |
99 |
- |
- |
99 |
Impairment (loss) / recovery, net |
- |
- |
(150) |
(150) |
Private placements |
||||
Interest income |
- |
2,318 |
- |
2,318 |
Gains (losses)(2) |
20 |
355 |
- |
375 |
Impairment (loss) / recovery, net |
- |
(72) |
- |
(72) |
Loans to Bank clients |
||||
Interest income |
- |
- |
201 |
201 |
Impairment (loss) / recovery, net |
- |
- |
(3) |
(3) |
Real estate |
||||
Rental income, net of depreciation(3) |
- |
- |
496 |
496 |
Gains (losses)(2) |
- |
- |
(1,286) |
(1,286) |
Impairment (loss) / recovery, net |
- |
- |
- |
- |
Derivatives |
||||
Interest income, net |
(561) |
- |
- |
(561) |
Gains (losses)(2) |
1,147 |
- |
- |
1,147 |
Other invested assets |
||||
Interest income |
17 |
23 |
- |
40 |
Timber, agriculture and other income |
2,197 |
- |
- |
2,197 |
Gains (losses)(2) |
487 |
- |
1 |
488 |
Impairment (loss) / recovery, net |
(74) |
- |
(1) |
(75) |
Total investment income (loss) |
$6,576 |
$13,456 |
$(714) |
$19,318 |
Investment income |
||||
Interest income |
$(332) |
$12,905 |
$229 |
$12,802 |
Dividends, rental income and other income |
2,822 |
- |
496 |
3,318 |
Impairment (loss) / recovery, net |
(74) |
(76) |
(154) |
(304) |
Other |
372 |
(12) |
4 |
364 |
2,788 |
12,817 |
575 |
16,180 |
|
Realized and unrealized gains (losses) on assets supporting insurance and
investment contract liabilities
|
||||
Debt securities |
153 |
277 |
- |
430 |
Public equities |
2,157 |
- |
- |
2,157 |
Mortgages |
99 |
- |
- |
99 |
Private placements |
20 |
355 |
- |
375 |
Real estate |
- |
- |
(1,289) |
(1,289) |
Other invested assets |
484 |
7 |
- |
491 |
Derivatives |
875 |
- |
- |
875 |
3,788 |
639 |
(1,289) |
3,138 |
|
Total investment income (loss) |
$6,576 |
$13,456 |
$(714) |
$19,318 |
Investment expenses |
(1,297) |
|||
Net investment income (loss) |
$18,021 |
2024 |
2023 |
||||
As at December 31, |
Carrying
value
|
% of total |
Carrying
value
|
% of total |
|
Leveraged leases |
$4,300 |
34% |
$3,790 |
35% |
|
Infrastructure |
4,848 |
38% |
3,942 |
37% |
|
Timber and agriculture |
837 |
7% |
854 |
8% |
|
Real estate |
2,098 |
16% |
1,704 |
16% |
|
Other |
673 |
5% |
443 |
4% |
|
Total |
$12,756 |
100% |
$10,733 |
100% |
|
For the years ended December 31, |
2024 |
2023 |
Related to invested assets |
$731 |
$720 |
Related to segregated, mutual and other funds |
617 |
577 |
Total investment expenses |
$1,348 |
$1,297 |
For the years ended December 31, |
2024 |
2023 |
Rental income from investment properties |
$859 |
$840 |
Direct operating expenses of rental investment properties |
(483) |
(473) |
Total |
$376 |
$367 |
37 |
2024 Annual Report |
Consolidated Financial Statements |
As at December 31, 2024 |
Securitized assets |
||||
Securitization program |
Securitized
mortgages
|
Restricted
cash and
short-term
securities
|
Total |
Secured
borrowing
liabilities(1)
|
Net |
HELOC securitization(2) |
$3,141 |
$22 |
$3,163 |
$3,000 |
$163 |
CMB securitization(3) |
3,274 |
- |
3,274 |
3,217 |
57 |
Total |
$6,415 |
$22 |
$6,437 |
$6,217 |
$220 |
As at December 31, 2023 |
Securitized assets |
||||
Securitization program |
Securitized
mortgages
|
Restricted
cash and
short-term
securities
|
Total |
Secured
borrowing
liabilities(1)
|
Net |
HELOC securitization(2) |
$2,880 |
$32 |
$2,912 |
$2,750 |
$162 |
CMB securitization(3) |
2,900 |
- |
2,900 |
2,806 |
94 |
Total |
$5,780 |
$32 |
$5,812 |
$5,556 |
$256 |
As at December 31, 2024 |
Total fair
value
|
Level 1 |
Level 2 |
Level 3 |
Cash and short-term securities |
||||
FVOCI |
$19,909 |
$- |
$19,909 |
$- |
FVTPL |
25 |
- |
25 |
- |
Other |
5,855 |
5,855 |
- |
- |
Debt securities |
||||
FVOCI |
||||
Canadian government and agency |
18,671 |
- |
18,671 |
- |
U.S. government and agency |
27,628 |
- |
27,628 |
- |
Other government and agency |
35,402 |
- |
35,392 |
10 |
Corporate |
121,674 |
- |
121,630 |
44 |
Residential mortgage-backed securities |
5 |
- |
5 |
- |
Commercial mortgage-backed securities |
270 |
- |
270 |
- |
Other asset-backed securities |
1,516 |
- |
1,516 |
- |
FVTPL |
||||
Canadian government and agency |
1,056 |
- |
1,056 |
- |
U.S. government and agency |
58 |
- |
58 |
- |
Other government and agency |
68 |
- |
68 |
- |
Corporate |
2,761 |
- |
2,761 |
- |
Commercial mortgage-backed securities |
2 |
- |
2 |
- |
Other asset-backed securities |
15 |
- |
15 |
- |
Private placements(1) |
||||
FVOCI |
48,802 |
- |
40,038 |
8,764 |
FVTPL |
866 |
- |
730 |
136 |
Mortgages |
||||
FVOCI |
28,792 |
- |
- |
28,792 |
FVTPL |
1,239 |
- |
- |
1,239 |
Public equities |
||||
FVTPL |
33,725 |
33,650 |
75 |
- |
Real estate(2) |
||||
Investment property |
10,589 |
- |
- |
10,589 |
Own use property |
2,500 |
- |
- |
2,500 |
Other invested assets(3) |
38,543 |
77 |
- |
38,466 |
Segregated funds net assets(4) |
435,988 |
399,043 |
33,611 |
3,334 |
Total |
$835,959 |
$438,625 |
$303,460 |
$93,874 |
39 |
2024 Annual Report |
Consolidated Financial Statements |
As at December 31, 2023 |
Total fair
value
|
Level 1 |
Level 2 |
Level 3 |
Cash and short-term securities |
||||
FVOCI |
$13,993 |
$- |
$13,993 |
$- |
FVTPL |
1 |
- |
1 |
- |
Other |
6,343 |
6,343 |
- |
- |
Debt securities |
||||
FVOCI |
||||
Canadian government and agency |
19,769 |
- |
19,769 |
- |
U.S. government and agency |
26,287 |
- |
26,287 |
- |
Other government and agency |
30,576 |
- |
30,566 |
10 |
Corporate |
127,190 |
- |
126,959 |
231 |
Residential mortgage-backed securities |
6 |
- |
6 |
- |
Commercial mortgage-backed securities |
370 |
- |
370 |
- |
Other asset-backed securities |
1,579 |
- |
1,558 |
21 |
FVTPL |
||||
Canadian government and agency |
1,219 |
- |
1,219 |
- |
U.S. government and agency |
1,303 |
- |
1,303 |
- |
Other government and agency |
90 |
- |
90 |
- |
Corporate |
2,372 |
- |
2,372 |
- |
Commercial mortgage-backed securities |
1 |
- |
1 |
- |
Other asset-backed securities |
15 |
- |
15 |
- |
Private placements(1) |
||||
FVOCI |
44,952 |
- |
37,270 |
7,682 |
FVTPL |
654 |
- |
575 |
79 |
Mortgages |
||||
FVOCI |
28,473 |
- |
- |
28,473 |
FVTPL |
1,055 |
- |
- |
1,055 |
Public equities |
||||
FVTPL |
25,531 |
25,423 |
67 |
41 |
Real estate(2) |
||||
Investment property |
10,458 |
- |
- |
10,458 |
Own use property |
2,430 |
- |
- |
2,430 |
Other invested assets(3) |
33,653 |
68 |
- |
33,585 |
Segregated funds net assets(4) |
377,544 |
343,061 |
30,991 |
3,492 |
Total |
$755,864 |
$374,895 |
$293,412 |
$87,557 |
As at December 31, 2024 |
Carrying
value
|
Total fair
value
|
Level 1 |
Level 2 |
Level 3 |
Mortgages(1) |
$24,416 |
$24,781 |
$- |
$- |
$24,781 |
Loans to Bank clients(2) |
2,310 |
2,285 |
- |
2,285 |
- |
Real estate - own use property(3) |
174 |
298 |
- |
- |
298 |
Public bonds held at amortized cost |
1,495 |
1,007 |
- |
1,007 |
- |
Other invested assets(4) |
14,131 |
15,143 |
542 |
- |
14,601 |
Total invested assets disclosed at fair value |
$42,526 |
$43,514 |
$542 |
$3,292 |
$39,680 |
As at December 31, 2023 |
Carrying
value
|
Total fair
value
|
Level 1 |
Level 2 |
Level 3 |
Short-term securities |
$1 |
$1 |
$- |
$1 |
$- |
Mortgages(1) |
22,893 |
22,782 |
- |
- |
22,782 |
Loans to Bank clients(2) |
2,436 |
2,411 |
- |
2,411 |
- |
Real estate - own use property(3) |
161 |
286 |
- |
- |
286 |
Public bonds held at amortized cost |
1,372 |
998 |
- |
998 |
- |
Other invested assets(4) |
12,027 |
12,906 |
240 |
- |
12,666 |
Total invested assets disclosed at fair value |
$38,890 |
$39,384 |
$240 |
$3,410 |
$35,734 |
41 |
2024 Annual Report |
Consolidated Financial Statements |
For the year ended
December 31, 2024
|
Balance,
January
1, 2024
|
Total
gains
(losses)
included
in net
income(1)
|
Total
gains
(losses)
included
in OCI(2)
|
Purchases |
Sales |
Settlements |
Transfer
in(3)
|
Transfer
out(3)
|
Currency
movement
|
Balance,
December
31, 2024
|
Change in
unrealized
gains
(losses) on
assets still
held
|
Debt securities |
|||||||||||
FVOCI |
|||||||||||
Other government
& agency
|
$10 |
$- |
$- |
$- |
$- |
$(5) |
$4 |
$- |
$1 |
$10 |
$- |
Corporate |
231 |
- |
(33) |
- |
- |
(7) |
- |
(151) |
4 |
44 |
- |
Other securitized
assets
|
21 |
- |
33 |
- |
- |
(22) |
- |
(33) |
1 |
- |
- |
Public equities |
|||||||||||
FVTPL |
41 |
(3) |
- |
- |
(1) |
- |
- |
(36) |
(1) |
- |
(3) |
Private
placements
|
|||||||||||
FVOCI |
7,682 |
(47) |
50 |
3,039 |
(1,115) |
(1,040) |
254 |
(624) |
565 |
8,764 |
- |
FVTPL |
79 |
1 |
- |
49 |
- |
(13) |
29 |
(14) |
5 |
136 |
1 |
Mortgages |
|||||||||||
FVOCI |
28,473 |
(73) |
109 |
2,243 |
(2,834) |
(763) |
- |
- |
1,637 |
28,792 |
- |
FVTPL |
1,055 |
32 |
- |
339 |
(152) |
(38) |
- |
- |
3 |
1,239 |
- |
Investment
property
|
10,458 |
(504) |
- |
222 |
(66) |
- |
- |
- |
479 |
10,589 |
(514) |
Own use property |
2,430 |
(82) |
- |
19 |
- |
- |
- |
- |
133 |
2,500 |
(82) |
Other invested
assets
|
33,585 |
1,502 |
14 |
4,308 |
(2,007) |
(1,187) |
- |
- |
2,251 |
38,466 |
1,251 |
Total invested
assets
|
84,065 |
826 |
173 |
10,219 |
(6,175) |
(3,075) |
287 |
(858) |
5,078 |
90,540 |
653 |
Derivatives, net |
(2,166) |
(2,248) |
- |
- |
- |
(166) |
- |
1,509 |
(164) |
(3,235) |
(2,065) |
Segregated funds
net assets
|
3,492 |
119 |
(67) |
148 |
(527) |
17 |
- |
- |
152 |
3,334 |
(76) |
Total |
$85,391 |
$(1,303) |
$106 |
$10,367 |
$(6,702) |
$(3,224) |
$287 |
$651 |
$5,066 |
$90,639 |
$(1,488) |
For the year ended
December 31, 2023
|
Balance,
January
1, 2023
|
Total
gains
(losses)
included
in net
income(1)
|
Total
gains
(losses)
included
in OCI(2)
|
Purchases |
Sales |
Settlements |
Transfer
in(3)
|
Transfer
out(3),(4)
|
Currency
movement
|
Balance,
December
31, 2023
|
Change in
unrealized
gains
(losses) on
assets still
held
|
Debt securities |
|||||||||||
FVOCI |
|||||||||||
Other government
& agency
|
$9 |
$- |
$- |
$2 |
$- |
$- |
$- |
$- |
$(1) |
$10 |
$- |
Corporate |
32 |
- |
3 |
178 |
- |
(7) |
25 |
- |
- |
231 |
- |
Other securitized
assets
|
26 |
- |
1 |
- |
- |
(5) |
- |
- |
(1) |
21 |
- |
Public equities |
|||||||||||
FVTPL |
71 |
- |
- |
37 |
- |
- |
- |
(67) |
- |
41 |
- |
Private
placements
|
|||||||||||
FVOCI |
7,828 |
(4) |
258 |
1,942 |
(497) |
(1,172) |
2,546 |
(2,907) |
(312) |
7,682 |
- |
FVTPL |
31 |
44 |
- |
17 |
- |
(1) |
34 |
(47) |
1 |
79 |
44 |
Mortgages |
|||||||||||
FVOCI |
28,621 |
65 |
830 |
1,984 |
(1,626) |
(856) |
- |
- |
(545) |
28,473 |
- |
FVTPL |
1,138 |
37 |
- |
160 |
(239) |
(39) |
- |
- |
(2) |
1,055 |
- |
Investment
property
|
11,417 |
(1,054) |
- |
416 |
(122) |
- |
- |
- |
(199) |
10,458 |
(1,055) |
Own use property |
2,682 |
(234) |
- |
20 |
- |
- |
- |
- |
(38) |
2,430 |
(234) |
Other invested
assets
|
31,069 |
423 |
7 |
4,760 |
(522) |
(1,219) |
- |
(68) |
(865) |
33,585 |
647 |
Total invested
assets
|
82,924 |
(723) |
1,099 |
9,516 |
(3,006) |
(3,299) |
2,605 |
(3,089) |
(1,962) |
84,065 |
(598) |
Derivatives, net |
(3,188) |
(144) |
- |
- |
- |
960 |
- |
165 |
41 |
(2,166) |
17 |
Segregated funds
net assets
|
3,985 |
(97) |
- |
110 |
(466) |
24 |
- |
(15) |
(49) |
3,492 |
32 |
Total |
$83,721 |
$(964) |
$1,099 |
$9,626 |
$(3,472) |
$(2,315) |
$2,605 |
$(2,939) |
$(1,970) |
$85,391 |
$(549) |
43 |
2024 Annual Report |
Consolidated Financial Statements |
Remaining term to maturity(1) |
|||||||
As at December 31, 2024 |
Less than
1 year
|
1 to 3
years
|
3 to 5
years
|
5 to 10
years
|
Over 10
years
|
With no
specific
maturity
|
Total |
Cash and short-term securities |
$25,789 |
$- |
$- |
$- |
$- |
$- |
$25,789 |
Debt securities |
|||||||
Canadian government and agency |
543 |
2,282 |
678 |
3,339 |
12,885 |
- |
19,727 |
U.S. government and agency |
644 |
640 |
1,473 |
4,699 |
21,198 |
- |
28,654 |
Other government and agency |
372 |
1,208 |
1,056 |
3,566 |
29,268 |
- |
35,470 |
Corporate |
7,810 |
15,763 |
15,817 |
33,818 |
51,754 |
- |
124,962 |
Mortgage / asset-backed securities |
60 |
260 |
213 |
450 |
825 |
- |
1,808 |
Public equities |
- |
- |
- |
- |
- |
33,725 |
33,725 |
Mortgages |
4,741 |
11,944 |
10,478 |
7,617 |
9,876 |
9,791 |
54,447 |
Private placements |
1,534 |
5,093 |
4,986 |
10,463 |
27,500 |
92 |
49,668 |
Loans to Bank clients |
47 |
13 |
3 |
- |
- |
2,247 |
2,310 |
Real estate |
|||||||
Own use property |
- |
- |
- |
- |
- |
2,674 |
2,674 |
Investment property |
- |
- |
- |
- |
- |
10,589 |
10,589 |
Other invested assets |
|||||||
Alternative long-duration assets |
67 |
- |
85 |
276 |
524 |
46,911 |
47,863 |
Various other |
- |
20 |
- |
3,623 |
657 |
511 |
4,811 |
Total invested assets |
$41,607 |
$37,223 |
$34,789 |
$67,851 |
$154,487 |
$106,540 |
$442,497 |
Remaining term to maturity(1) |
|||||||
As at December 31, 2023 |
Less than
1 year
|
1 to 3
years
|
3 to 5
years
|
5 to 10
years
|
Over 10
years
|
With no
specific
maturity
|
Total |
Cash and short-term securities |
$20,338 |
$- |
$- |
$- |
$- |
$- |
$20,338 |
Debt securities |
|||||||
Canadian government and agency |
657 |
1,435 |
1,580 |
3,656 |
13,660 |
- |
20,988 |
U.S. government and agency |
297 |
725 |
744 |
4,504 |
22,208 |
- |
28,478 |
Other government and agency |
412 |
1,052 |
1,892 |
3,864 |
23,446 |
- |
30,666 |
Corporate |
8,475 |
15,512 |
18,548 |
33,361 |
54,100 |
50 |
130,046 |
Mortgage / asset-backed securities |
106 |
153 |
279 |
556 |
877 |
- |
1,971 |
Public equities |
- |
- |
- |
- |
- |
25,531 |
25,531 |
Mortgages |
3,363 |
12,076 |
10,181 |
7,690 |
9,644 |
9,467 |
52,421 |
Private placements |
1,418 |
3,486 |
4,704 |
9,137 |
26,790 |
71 |
45,606 |
Loans to Bank clients |
39 |
23 |
1 |
- |
- |
2,373 |
2,436 |
Real estate |
|||||||
Own use property |
- |
- |
- |
- |
- |
2,591 |
2,591 |
Investment property |
- |
- |
- |
- |
- |
10,458 |
10,458 |
Other invested assets |
|||||||
Alternative long-duration assets |
- |
67 |
22 |
82 |
732 |
40,531 |
41,434 |
Various other |
- |
- |
19 |
1,528 |
2,242 |
457 |
4,246 |
Total invested assets |
$35,105 |
$34,529 |
$37,970 |
$64,378 |
$153,699 |
$91,529 |
$417,210 |
45 |
2024 Annual Report |
Consolidated Financial Statements |
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 |
||
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 |
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 |
|
47 |
2024 Annual Report |
Consolidated Financial Statements |
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) |
|||
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 |
49 |
2024 Annual Report |
Consolidated Financial Statements |
Interest
rate risk
|
Foreign
currency
risk
|
Equity risk |
Consumer
price index
risk
|
|
Mismatches in some critical terms of hedging instrument and hedged item |
ü |
ü |
ü |
ü |
Differences in valuation methodologies including discounting factor |
ü |
ü |
ü |
|
Changes in timing and amount of forecasted hedged items |
ü |
ü |
||
Differences due to the use of non-zero fair value hedging instruments |
ü |
ü |
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 |
51 |
2024 Annual Report |
Consolidated Financial Statements |
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 |
$- |
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) |
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 |
$- |
$- |
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 |
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) |
$- |
$- |
||||
53 |
2024 Annual Report |
Consolidated Financial Statements |
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 |
$- |
$- |
||||
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 |
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 |
For the year ended December 31, 2024 |
Balance,
January 1,
2024
|
Net
additions /
(disposals)(1)
|
Amortization
expense
|
Effect of
changes in
foreign
exchange
rates
|
Balance,
December
31, 2024
|
Goodwill |
$5,919 |
$150 |
$ n/a |
$206 |
$6,275 |
Indefinite life intangible assets |
|||||
Brand |
791 |
3 |
n/a |
72 |
866 |
Fund management contracts and other(2) |
1,034 |
156 |
n/a |
68 |
1,258 |
1,825 |
159 |
n/a |
140 |
2,124 |
|
Finite life intangible assets(3) |
|||||
Distribution networks |
834 |
13 |
(56) |
49 |
840 |
Customer relationships |
582 |
- |
(52) |
12 |
542 |
Software |
1,102 |
329 |
(257) |
38 |
1,212 |
Other |
48 |
7 |
(9) |
13 |
59 |
2,566 |
349 |
(374) |
112 |
2,653 |
|
Total intangible assets |
4,391 |
508 |
(374) |
252 |
4,777 |
Total goodwill and intangible assets |
$10,310 |
$658 |
$(374) |
$458 |
$11,052 |
For the year ended December 31, 2023 |
Balance,
January 1,
2023
|
Net
additions /
(disposals)
|
Amortization
expense
|
Effect of
changes in
foreign
exchange
rates
|
Balance,
December
31, 2023
|
Goodwill |
$6,014 |
$- |
$ n/a |
$(95) |
$5,919 |
Indefinite life intangible assets |
|||||
Brand |
813 |
- |
n/a |
(22) |
791 |
Fund management contracts and other(2) |
1,048 |
- |
n/a |
(14) |
1,034 |
1,861 |
- |
n/a |
(36) |
1,825 |
|
Finite life intangible assets(3) |
|||||
Distribution networks |
881 |
31 |
(53) |
(25) |
834 |
Customer relationships |
643 |
(4) |
(53) |
(4) |
582 |
Software |
1,068 |
274 |
(217) |
(23) |
1,102 |
Other |
52 |
11 |
(5) |
(10) |
48 |
2,644 |
312 |
(328) |
(62) |
2,566 |
|
Total intangible assets |
4,505 |
312 |
(328) |
(98) |
4,391 |
Total goodwill and intangible assets |
$10,519 |
$312 |
$(328) |
$(193) |
$10,310 |
55 |
2024 Annual Report |
Consolidated Financial Statements |
For the year ended December 31, 2024 |
Balance,
January 1, 2024
|
Net additions/
(disposals)
|
Effect of changes in
foreign exchange rates
|
Balance,
December 31, 2024
|
||||
CGU or group of CGUs | ||||||||
Asia |
||||||||
Asia Insurance (excluding Japan) |
$159 |
$- |
$11 |
$170 |
||||
Japan Insurance |
328 |
- |
(7) |
321 |
||||
Canada Insurance |
1,958 |
- |
8 |
1,966 |
||||
U.S. Insurance |
350 |
- |
32 |
382 |
||||
Global Wealth and Asset Management |
||||||||
Asia WAM |
438 |
- |
41 |
479 |
||||
Canada WAM |
1,436 |
- |
- |
1,436 |
||||
U.S. WAM |
1,250 |
150 |
121 |
1,521 |
||||
Total |
$5,919 |
$150 |
$206 |
$6,275 |
||||
For the year ended December 31, 2023 |
Balance,
January 1, 2023
|
Net additions/
(disposals)
|
Effect of changes in
foreign exchange rates
|
Balance,
December 31, 2023
|
||||
CGU or group of CGUs | ||||||||
Asia |
||||||||
Asia Insurance (excluding Japan) |
$162 |
$- |
$(3) |
$159 |
||||
Japan Insurance |
360 |
- |
(32) |
328 |
||||
Canada Insurance |
1,960 |
- |
(2) |
1,958 |
||||
U.S. Insurance |
360 |
- |
(10) |
350 |
||||
Global Wealth and Asset Management |
||||||||
Asia WAM |
450 |
- |
(12) |
438 |
||||
Canada WAM |
1,436 |
- |
- |
1,436 |
||||
U.S. WAM |
1,286 |
- |
(36) |
1,250 |
||||
Total |
$6,014 |
$- |
$(95) |
$5,919 |
||||
2024 |
2023 |
||||||||
As at December 31, |
Insurance
contract
assets
|
Insurance
contract
liabilities
|
Insurance
contract
liabilities for
account of
segregated
fund holders
|
Net
insurance
contract
liabilities
|
Insurance
contract
assets
|
Insurance
contract
liabilities
|
Insurance
contract
liabilities for
account of
segregated
fund holders
|
Net
insurance
contract
liabilities
|
|
Asia |
$(53) |
$154,222 |
$26,367 |
$180,536 |
$(108) |
$131,729 |
$22,696 |
$154,317 |
|
Canada |
(32) |
82,459 |
38,099 |
120,526 |
(33) |
80,169 |
36,085 |
116,221 |
|
U.S. |
- |
161,484 |
62,079 |
223,563 |
- |
157,699 |
55,362 |
213,061 |
|
Corporate and Other |
(6) |
(897) |
- |
(903) |
(4) |
(781) |
- |
(785) |
|
Insurance contract balances |
(91) |
397,268 |
126,545 |
523,722 |
(145) |
368,816 |
114,143 |
482,814 |
|
Assets for insurance acquisition cash
flows
|
(11) |
(867) |
- |
(878) |
- |
(820) |
- |
(820) |
|
Total |
$(102) |
$396,401 |
$126,545 |
$522,844 |
$(145) |
$367,996 |
$114,143 |
$481,994 |
|
2024 |
2023 |
||||||
As at December 31, |
Assets |
Liabilities |
Net reinsurance
contract held
assets
|
Assets |
Liabilities |
Net reinsurance
contract held
assets
|
|
Asia |
$9,204 |
$(2,394) |
$6,810 |
$3,540 |
$(1,909) |
$1,631 |
|
Canada |
7,021 |
(262) |
6,759 |
1,922 |
(913) |
1,009 |
|
U.S. |
43,043 |
(13) |
43,030 |
37,437 |
(14) |
37,423 |
|
Corporate and Other |
(253) |
- |
(253) |
(248) |
5 |
(243) |
|
Total |
$59,015 |
$(2,669) |
$56,346 |
$42,651 |
$(2,831) |
$39,820 |
|
As at December 31, |
2024 |
2023 |
Net insurance contract held liabilities |
$522,844 |
$481,994 |
Net reinsurance contract held assets |
(56,346) |
(39,820) |
Net insurance and reinsurance contract held liabilities |
$466,498 |
$442,174 |
57 |
2024 Annual Report |
Consolidated Financial Statements |
Liabilities for remaining
coverage
|
Liabilities for incurred claims |
|||||||
Excluding loss
component
|
Loss
component
|
Products not
under PAA
|
PAA
Estimates of
PV of future
cash flows
|
PAA Risk
adjustment
for non-
financial
risk
|
Assets for
insurance
acquisition
cash flows
|
Total |
||
Opening insurance contract assets |
$(201) |
$- |
$56 |
$- |
$- |
$- |
$(145) |
|
Opening insurance contract liabilities |
351,045 |
1,092 |
5,609 |
10,445 |
625 |
(820) |
367,996 |
|
Opening insurance contract liabilities for account of
segregated fund holders
|
114,143 |
- |
- |
- |
- |
- |
114,143 |
|
Net opening balance, January 1, 2024 |
464,987 |
1,092 |
5,665 |
10,445 |
625 |
(820) |
481,994 |
|
Insurance revenue |
||||||||
Expected incurred claims and other insurance
service expenses
|
(14,340) |
- |
- |
- |
- |
- |
(14,340) |
|
Change in risk adjustment for non-financial risk
expired
|
(1,414) |
- |
- |
- |
- |
- |
(1,414) |
|
CSM recognized for services provided |
(2,697) |
- |
- |
- |
- |
- |
(2,697) |
|
Recovery of insurance acquisition cash flows |
(1,351) |
- |
- |
- |
- |
- |
(1,351) |
|
Contracts under PAA |
(6,790) |
- |
- |
- |
- |
- |
(6,790) |
|
(26,592) |
- |
- |
- |
- |
- |
(26,592) |
||
Insurance service expense |
||||||||
Incurred claims and other insurance service
expenses
|
- |
(105) |
13,855 |
7,423 |
224 |
- |
21,397 |
|
Losses and reversal of losses on onerous
contracts (future service)
|
- |
882 |
- |
- |
- |
- |
882 |
|
Changes to liabilities for incurred claims (past
service)
|
- |
- |
(12) |
(2,391) |
(202) |
- |
(2,605) |
|
Amortization of insurance acquisition cash flows |
2,148 |
- |
- |
- |
- |
- |
2,148 |
|
Net impairment of assets for insurance acquisition
cash flows
|
- |
- |
- |
- |
- |
- |
- |
|
2,148 |
777 |
13,843 |
5,032 |
22 |
- |
21,822 |
||
Investment components and premium refunds |
(23,554) |
- |
20,835 |
2,719 |
- |
- |
- |
|
Insurance service result |
(47,998) |
777 |
34,678 |
7,751 |
22 |
- |
(4,770) |
|
Insurance finance (income) expenses |
2,645 |
44 |
(85) |
689 |
44 |
- |
3,337 |
|
Effects of movements in foreign exchange rates |
24,962 |
115 |
272 |
29 |
- |
(21) |
25,357 |
|
Total changes in income and OCI |
(20,391) |
936 |
34,865 |
8,469 |
66 |
(21) |
23,924 |
|
Cash flows |
||||||||
Premiums and premium tax received |
55,437 |
- |
- |
- |
- |
- |
55,437 |
|
Claims and other insurance service expenses
paid, including investment components
|
- |
- |
(34,776) |
(7,657) |
- |
- |
(42,433) |
|
Insurance acquisition cash flows |
(8,287) |
- |
- |
- |
- |
- |
(8,287) |
|
Total cash flows |
47,150 |
- |
(34,776) |
(7,657) |
- |
- |
4,717 |
|
Allocation from assets for insurance acquisition cash
flows to groups of insurance contracts
|
(156) |
- |
- |
- |
- |
156 |
- |
|
Acquisition cash flows incurred in the year |
- |
- |
- |
- |
- |
(193) |
(193) |
|
Movements related to insurance contract liabilities for
account of segregated fund holders
|
12,402 |
- |
- |
- |
- |
- |
12,402 |
|
Net closing balance |
503,992 |
2,028 |
5,754 |
11,257 |
691 |
(878) |
522,844 |
|
Closing insurance contract assets |
(153) |
5 |
56 |
1 |
- |
(11) |
(102) |
|
Closing insurance contract liabilities |
377,600 |
2,023 |
5,698 |
11,256 |
691 |
(867) |
396,401 |
|
Closing insurance contract liabilities for account of
segregated fund holders
|
126,545 |
- |
- |
- |
- |
- |
126,545 |
|
Net closing balance, December 31, 2024 |
$503,992 |
$2,028 |
$5,754 |
$11,257 |
$691 |
$(878) |
$522,844 |
|
Insurance finance (income) expenses (“IFIE”) |
||||||
Insurance finance (income) expenses, per disclosure above |
$3,337 |
|||||
Reclassification of derivative OCI to IFIE – cash flow hedges |
(52) |
|||||
Reclassification of derivative (income) loss changes to IFIE – fair value hedge |
3,346 |
|||||
Insurance finance (income) expenses, per disclosure in note 6 (f) |
$6,631 |
Liabilities for remaining
coverage
|
Liabilities for incurred claims |
|||||||
Excluding loss
component
|
Loss
component
|
Products not
under PAA
|
PAA
Estimates
of PV of
future cash
flows
|
PAA Risk
adjustment
for non-
financial
risk
|
Assets for
insurance
acquisition
cash flows
|
Total |
||
Opening insurance contract assets |
$(659) |
$- |
$7 |
$(12) |
$- |
$(9) |
$(673) |
|
Opening insurance contract liabilities |
336,981 |
1,328 |
5,857 |
10,877 |
602 |
(796) |
354,849 |
|
Opening insurance contract liabilities for account of
segregated fund holders
|
110,216 |
- |
- |
- |
- |
- |
110,216 |
|
Net opening balance, January 1, 2023 |
446,538 |
1,328 |
5,864 |
10,865 |
602 |
(805) |
464,392 |
|
Insurance revenue |
||||||||
Expected incurred claims and other insurance
service expenses
|
(13,165) |
- |
- |
- |
- |
- |
(13,165) |
|
Change in risk adjustment for non-financial risk
expired
|
(1,497) |
- |
- |
- |
- |
- |
(1,497) |
|
CSM recognized for services provided |
(2,162) |
- |
- |
- |
- |
- |
(2,162) |
|
Recovery of insurance acquisition cash flows |
(853) |
- |
- |
- |
- |
- |
(853) |
|
Contracts under PAA |
(6,295) |
- |
- |
- |
- |
- |
(6,295) |
|
(23,972) |
- |
- |
- |
- |
- |
(23,972) |
||
Insurance service expense |
||||||||
Incurred claims and other insurance service
expenses
|
- |
(320) |
13,446 |
6,136 |
254 |
- |
19,516 |
|
Losses and reversal of losses on onerous
contracts (future service)
|
- |
90 |
- |
- |
- |
- |
90 |
|
Changes to liabilities for incurred claims (past
service)
|
- |
- |
(31) |
(1,605) |
(242) |
- |
(1,878) |
|
Amortization of insurance acquisition cash flows |
1,654 |
- |
- |
- |
- |
- |
1,654 |
|
Net impairment of assets for insurance
acquisition cash flows
|
- |
- |
- |
- |
- |
- |
- |
|
1,654 |
(230) |
13,415 |
4,531 |
12 |
- |
19,382 |
||
Investment components and premium refunds |
(19,080) |
- |
17,148 |
1,932 |
- |
- |
- |
|
Insurance service result |
(41,398) |
(230) |
30,563 |
6,463 |
12 |
- |
(4,590) |
|
Insurance finance (income) expenses |
24,268 |
32 |
15 |
848 |
11 |
- |
25,174 |
|
Effects of movements in foreign exchange rates |
(9,657) |
(38) |
(71) |
(12) |
- |
7 |
(9,771) |
|
Total changes in income and OCI |
(26,787) |
(236) |
30,507 |
7,299 |
23 |
7 |
10,813 |
|
Cash flows |
||||||||
Premiums and premium tax received |
48,381 |
- |
- |
- |
- |
- |
48,381 |
|
Claims and other insurance service expenses
paid, including investment components
|
- |
- |
(30,706) |
(7,719) |
- |
- |
(38,425) |
|
Insurance acquisition cash flows |
(6,920) |
- |
- |
- |
- |
- |
(6,920) |
|
Total cash flows |
41,461 |
- |
(30,706) |
(7,719) |
- |
- |
3,036 |
|
Allocation from assets for insurance acquisition cash
flows to groups of insurance contracts
|
(152) |
- |
- |
- |
- |
152 |
- |
|
Acquisition cash flows incurred in the year |
- |
- |
- |
- |
- |
(174) |
(174) |
|
Movements related to insurance contract liabilities
for account of segregated fund holders
|
3,927 |
- |
- |
- |
- |
- |
3,927 |
|
Net closing balance |
464,987 |
1,092 |
5,665 |
10,445 |
625 |
(820) |
481,994 |
|
Closing insurance contract assets |
(201) |
- |
56 |
- |
- |
- |
(145) |
|
Closing insurance contract liabilities |
351,045 |
1,092 |
5,609 |
10,445 |
625 |
(820) |
367,996 |
|
Closing insurance contract liabilities for account of
segregated fund holders
|
114,143 |
- |
- |
- |
- |
- |
114,143 |
|
Net closing balance, December 31, 2023 |
$464,987 |
$1,092 |
$5,665 |
$10,445 |
$625 |
$(820) |
$481,994 |
|
Insurance finance (income) expenses |
||||||
Insurance finance (income) expenses, per disclosure above |
$25,174 |
|||||
Reclassification of derivative OCI to IFIE – cash flow hedges |
3 |
|||||
Reclassification of derivative (income) loss changes to IFIE – fair value hedge |
(185) |
|||||
Insurance finance (income) expenses, per disclosure in note 6 (f) |
$24,992 |
59 |
2024 Annual Report |
Consolidated Financial Statements |
CSM |
||||||
Estimates of
PV of future
cash flows
|
Risk
adjustment for
non-financial
risk
|
Fair value |
Other |
Assets for
insurance
acquisition
cash flows
|
Total |
|
Opening GMM and VFA insurance contract assets |
$(416) |
$141 |
$32 |
$99 |
$- |
$(144) |
Opening GMM and VFA insurance contract liabilities |
310,807 |
22,697 |
17,381 |
4,592 |
(59) |
355,418 |
Opening PAA insurance contract net liabilities |
12,712 |
626 |
- |
- |
(761) |
12,577 |
Opening insurance contract liabilities for account of segregated
fund holders
|
114,143 |
- |
- |
- |
- |
114,143 |
Net opening balance, January 1, 2024 |
437,246 |
23,464 |
17,413 |
4,691 |
(820) |
481,994 |
CSM recognized for services provided |
- |
- |
(2,097) |
(600) |
- |
(2,697) |
Change in risk adjustment for non-financial risk for risk
expired
|
- |
(1,430) |
- |
- |
- |
(1,430) |
Experience adjustments |
(532) |
- |
- |
- |
- |
(532) |
Changes that relate to current services |
(532) |
(1,430) |
(2,097) |
(600) |
- |
(4,659) |
Contracts initially recognized during the year |
(4,043) |
952 |
2 |
3,193 |
- |
104 |
Changes in estimates that adjust the CSM |
(459) |
(1,866) |
2,388 |
(63) |
- |
- |
Changes in estimates that relate to losses and reversal of
losses on onerous contracts
|
770 |
7 |
- |
- |
- |
777 |
Changes that relate to future services |
(3,732) |
(907) |
2,390 |
3,130 |
- |
881 |
Adjustments to liabilities for incurred claims |
(8) |
(4) |
- |
- |
- |
(12) |
Changes that relate to past services |
(8) |
(4) |
- |
- |
- |
(12) |
Insurance service result |
(4,272) |
(2,341) |
293 |
2,530 |
- |
(3,790) |
Insurance finance (income) expenses |
2,317 |
(59) |
233 |
121 |
- |
2,612 |
Effects of movements in foreign exchange rates |
21,946 |
1,866 |
1,068 |
416 |
- |
25,296 |
Total changes in income and OCI |
19,991 |
(534) |
1,594 |
3,067 |
- |
24,118 |
Total cash flows |
3,840 |
- |
- |
- |
- |
3,840 |
Allocation from assets for insurance acquisition cash flows to
groups of insurance contracts
|
(6) |
- |
- |
- |
6 |
- |
Acquisition cash flows incurred in the year |
- |
- |
- |
- |
(8) |
(8) |
Change in PAA balance |
489 |
65 |
- |
- |
(56) |
498 |
Movements related to insurance contract liabilities for account of
segregated fund holders
|
12,402 |
- |
- |
- |
- |
12,402 |
Net closing balance |
473,962 |
22,995 |
19,007 |
7,758 |
(878) |
522,844 |
Closing GMM and VFA insurance contract assets |
(490) |
144 |
100 |
148 |
- |
(98) |
Closing GMM and VFA insurance contract liabilities |
334,706 |
22,160 |
18,907 |
7,610 |
(61) |
383,322 |
Closing PAA insurance contract net liabilities |
13,201 |
691 |
- |
- |
(817) |
13,075 |
Closing insurance contract liabilities for account of segregated
fund insurance holders
|
126,545 |
- |
- |
- |
- |
126,545 |
Net closing balance, December 31, 2024 |
$473,962 |
$22,995 |
$19,007 |
$7,758 |
$(878) |
$522,844 |
Insurance finance (income) expenses |
||||||
Insurance finance (income) expenses, per disclosure above |
$2,612 |
|||||
Reclassification of derivative OCI to IFIE – cash flow hedges |
(52) |
|||||
Reclassification of derivative (income) loss changes to IFIE – fair value hedge |
3,333 |
|||||
PAA items: |
||||||
PAA IFIE per disclosure |
725 |
|||||
PAA Reclassification of derivative OCI to IFIE – cash flow hedges |
- |
|||||
PAA Reclassification of derivative (income) loss changes to IFIE – fair value hedge |
13 |
|||||
Insurance finance (income) expenses, per disclosure in note 6 (f) |
$6,631 |
CSM |
||||||
Estimates of
PV of future
cash flows
|
Risk
adjustment
for non-
financial risk
|
Fair value |
Other |
Assets for
insurance
acquisition
cash flows
|
Total |
|
Opening GMM and VFA insurance contract assets |
$(1,827) |
$512 |
$100 |
$557 |
$- |
$(658) |
Opening GMM and VFA insurance contract liabilities |
297,967 |
25,750 |
17,105 |
2,087 |
(56) |
342,853 |
Opening PAA insurance contract net liabilities |
12,125 |
605 |
- |
- |
(749) |
11,981 |
Opening insurance contract liabilities for account of segregated
fund holders
|
110,216 |
- |
- |
- |
- |
110,216 |
Net opening balance, January 1, 2023 |
418,481 |
26,867 |
17,205 |
2,644 |
(805) |
464,392 |
CSM recognized for services provided |
- |
- |
(1,812) |
(350) |
- |
(2,162) |
Change in risk adjustment for non-financial risk for risk expired |
- |
(1,620) |
- |
- |
- |
(1,620) |
Experience adjustments |
152 |
- |
- |
- |
- |
152 |
Changes that relate to current services |
152 |
(1,620) |
(1,812) |
(350) |
- |
(3,630) |
Contracts initially recognized during the year |
(3,295) |
1,180 |
- |
2,368 |
- |
253 |
Changes in estimates that adjust the CSM |
1,585 |
(3,859) |
2,214 |
60 |
- |
- |
Changes in estimates that relate to losses and reversal of
losses on onerous contracts
|
(174) |
12 |
- |
- |
- |
(162) |
Changes that relate to future services |
(1,884) |
(2,667) |
2,214 |
2,428 |
- |
91 |
Adjustments to liabilities for incurred claims |
(28) |
(4) |
- |
- |
- |
(32) |
Changes that relate to past services |
(28) |
(4) |
- |
- |
- |
(32) |
Insurance service result |
(1,760) |
(4,291) |
402 |
2,078 |
- |
(3,571) |
Insurance finance (income) expenses |
22,340 |
1,646 |
244 |
76 |
- |
24,306 |
Effects of movements in foreign exchange rates |
(8,405) |
(779) |
(438) |
(107) |
- |
(9,729) |
Total changes in income and OCI |
12,175 |
(3,424) |
208 |
2,047 |
- |
11,006 |
Total cash flows |
2,081 |
- |
- |
- |
- |
2,081 |
Allocation from assets for insurance acquisition cash flows to
groups of insurance contracts
|
(5) |
- |
- |
- |
5 |
- |
Acquisition cash flows incurred in the year |
- |
- |
- |
- |
(8) |
(8) |
Change in PAA balance |
587 |
21 |
- |
- |
(12) |
596 |
Movements related to insurance contract liabilities for account of
segregated fund holders
|
3,927 |
- |
- |
- |
- |
3,927 |
Net closing balance |
437,246 |
23,464 |
17,413 |
4,691 |
(820) |
481,994 |
Closing GMM and VFA insurance contract assets |
(416) |
141 |
32 |
99 |
- |
(144) |
Closing GMM and VFA insurance contract liabilities |
310,807 |
22,697 |
17,381 |
4,592 |
(59) |
355,418 |
Closing PAA insurance contract net liabilities |
12,712 |
626 |
- |
- |
(761) |
12,577 |
Closing insurance contract liabilities for account of segregated
fund insurance holders
|
114,143 |
- |
- |
- |
- |
114,143 |
Net closing balance, December 31, 2023 |
$437,246 |
$23,464 |
$17,413 |
$4,691 |
$(820) |
$481,994 |
Insurance finance (income) expenses |
||||||
Insurance finance (income) expenses, per disclosure above |
$24,306 |
|||||
Reclassification of derivative OCI to IFIE – cash flow hedges |
3 |
|||||
Reclassification of derivative (income) loss changes to IFIE – fair value hedge |
(120) |
|||||
PAA items: |
||||||
PAA IFIE per disclosure |
868 |
|||||
PAA Reclassification of derivative OCI to IFIE – cash flow hedges |
- |
|||||
PAA Reclassification of derivative (income) loss changes to IFIE – fair value hedge |
(65) |
|||||
Insurance finance (income) expenses, per disclosure in note 6 (f) |
$24,992 |
61 |
2024 Annual Report |
Consolidated Financial Statements |
Assets (liabilities) for
remaining coverage
|
Assets (liabilities) for incurred claims |
||||||
Excluding loss
recovery
component
|
Loss recovery
component
|
Products not
under PAA
|
PAA
Estimates of
PV of future
cash flows
|
PAA Risk
adjustment for
non-financial
risk
|
Total |
||
Opening reinsurance contract held assets |
$35,079 |
$246 |
$7,035 |
$275 |
$16 |
$42,651 |
|
Opening reinsurance contract held liabilities |
(2,634) |
2 |
(136) |
(63) |
- |
(2,831) |
|
Net opening balance, January 1, 2024 |
32,445 |
248 |
6,899 |
212 |
16 |
39,820 |
|
Changes in income and OCI |
|||||||
Allocation of reinsurance premium paid |
(7,709) |
- |
- |
- |
- |
(7,709) |
|
Amounts recoverable from reinsurers |
|||||||
Recoveries of incurred claims and other insurance service
expenses
|
- |
(32) |
6,002 |
607 |
1 |
6,578 |
|
Recoveries and reversals of recoveries of losses on
onerous underlying contracts
|
- |
372 |
- |
- |
- |
372 |
|
Adjustments to assets for incurred claims |
- |
- |
11 |
(14) |
(7) |
(10) |
|
Insurance service result |
(7,709) |
340 |
6,013 |
593 |
(6) |
(769) |
|
Investment components and premium refunds |
(1,939) |
- |
1,939 |
- |
- |
- |
|
Net expenses from reinsurance contracts |
(9,648) |
340 |
7,952 |
593 |
(6) |
(769) |
|
Net finance (income) expenses from reinsurance contracts |
(1,859) |
12 |
4 |
3 |
4 |
(1,836) |
|
Effect of changes in non-performance risk of reinsurers |
(58) |
- |
- |
- |
- |
(58) |
|
Effects of movements in foreign exchange rates |
4,021 |
36 |
575 |
- |
- |
4,632 |
|
Contracts measured under PAA |
- |
- |
- |
- |
- |
- |
|
Total changes in income and OCI |
(7,544) |
388 |
8,531 |
596 |
(2) |
1,969 |
|
Cash flows |
|||||||
Premiums paid(1) |
23,130 |
- |
- |
- |
- |
23,130 |
|
Amounts received |
- |
- |
(7,991) |
(582) |
- |
(8,573) |
|
Total cash flows |
23,130 |
- |
(7,991) |
(582) |
- |
14,557 |
|
Net closing balance |
48,031 |
636 |
7,439 |
226 |
14 |
56,346 |
|
Closing reinsurance contract held assets |
50,723 |
631 |
7,395 |
252 |
14 |
59,015 |
|
Closing reinsurance contract held liabilities |
(2,692) |
5 |
44 |
(26) |
- |
(2,669) |
|
Net closing balance, December 31, 2024 |
$48,031 |
$636 |
$7,439 |
$226 |
$14 |
$56,346 |
|
Assets (liabilities) for
remaining coverage
|
Assets (liabilities) for incurred claims |
||||||
Excluding loss
recovery
component
|
Loss recovery
component
|
Products not
under PAA
|
PAA
Estimates of
PV of future
cash flows
|
PAA Risk
adjustment for
non-financial
risk
|
Total |
||
Opening reinsurance contract held assets |
$37,853 |
$209 |
$7,521 |
$280 |
$8 |
$45,871 |
|
Opening reinsurance contract held liabilities |
(2,196) |
4 |
(137) |
(62) |
- |
(2,391) |
|
Net opening balance, January 1, 2023 |
35,657 |
213 |
7,384 |
218 |
8 |
43,480 |
|
Changes in income and OCI |
|||||||
Allocation of reinsurance premium paid |
(6,430) |
- |
- |
- |
- |
(6,430) |
|
Amounts recoverable from reinsurers |
|||||||
Recoveries of incurred claims and other insurance service
expenses
|
- |
(45) |
5,228 |
568 |
- |
5,751 |
|
Recoveries and reversals of recoveries of losses on
onerous underlying contracts
|
- |
77 |
- |
- |
- |
77 |
|
Adjustments to assets for incurred claims |
- |
- |
5 |
(24) |
8 |
(11) |
|
Insurance service result |
(6,430) |
32 |
5,233 |
544 |
8 |
(613) |
|
Investment components and premium refunds |
(1,519) |
- |
1,519 |
- |
- |
- |
|
Net expenses from reinsurance contracts |
(7,949) |
32 |
6,752 |
544 |
8 |
(613) |
|
Net finance (income) expenses from reinsurance contracts |
719 |
8 |
(97) |
9 |
- |
639 |
|
Effect of changes in non-performance risk of reinsurers |
(14) |
- |
- |
- |
- |
(14) |
|
Effects of movements in foreign exchange rates |
(924) |
(5) |
(169) |
- |
- |
(1,098) |
|
Contracts measured under PAA |
- |
- |
- |
- |
- |
- |
|
Total changes in income and OCI |
(8,168) |
35 |
6,486 |
553 |
8 |
(1,086) |
|
Cash flows |
|||||||
Premiums paid |
4,956 |
- |
- |
- |
- |
4,956 |
|
Amounts received |
- |
- |
(6,971) |
(559) |
- |
(7,530) |
|
Total cash flows |
4,956 |
- |
(6,971) |
(559) |
- |
(2,574) |
|
Net closing balance |
32,445 |
248 |
6,899 |
212 |
16 |
39,820 |
|
Closing reinsurance contract held assets |
35,079 |
246 |
7,035 |
275 |
16 |
42,651 |
|
Closing reinsurance contract held liabilities |
(2,634) |
2 |
(136) |
(63) |
- |
(2,831) |
|
Net closing balance, December 31, 2023 |
$32,445 |
$248 |
$6,899 |
$212 |
$16 |
$39,820 |
|
63 |
2024 Annual Report |
Consolidated Financial Statements |
CSM |
|||||
Estimates of
PV of future
cash flows
|
Risk
adjustment for
non-financial
risk
|
Fair value |
Other |
Total |
|
Opening reinsurance contract held assets |
$38,156 |
$3,685 |
$565 |
$(51) |
$42,355 |
Opening reinsurance contract held liabilities |
(4,384) |
1,305 |
116 |
173 |
(2,790) |
Opening PAA reinsurance contract net assets |
239 |
16 |
- |
- |
255 |
Net opening balance, January 1, 2024 |
34,011 |
5,006 |
681 |
122 |
39,820 |
CSM recognized for services received |
- |
- |
(62) |
(259) |
(321) |
Change in risk adjustment for non-financial risk for risk expired |
- |
(536) |
- |
- |
(536) |
Experience adjustments |
(265) |
- |
- |
- |
(265) |
Changes that relate to current services |
(265) |
(536) |
(62) |
(259) |
(1,122) |
Contracts initially recognized during the year |
(1,826) |
1,261 |
2 |
620 |
57 |
Changes in recoveries of losses on onerous underlying contracts that adjust
the CSM
|
- |
- |
110 |
32 |
142 |
Changes in estimates that adjust the CSM |
(1,577) |
(290) |
1,657 |
210 |
- |
Changes in estimates that relate to losses and reversal of losses on onerous
contracts
|
171 |
1 |
- |
- |
172 |
Changes that relate to future services |
(3,232) |
972 |
1,769 |
862 |
371 |
Adjustments to liabilities for incurred claims |
11 |
- |
- |
- |
11 |
Changes that relate to past services |
11 |
- |
- |
- |
11 |
Insurance service result |
(3,486) |
436 |
1,707 |
603 |
(740) |
Insurance finance (income) expenses from reinsurance contracts |
(1,858) |
(62) |
16 |
62 |
(1,842) |
Effects of changes in non-performance risk of reinsurers |
(58) |
- |
- |
- |
(58) |
Effects of movements in foreign exchange rates |
4,069 |
411 |
103 |
47 |
4,630 |
Total changes in income and OCI |
(1,333) |
785 |
1,826 |
712 |
1,990 |
Total cash flows |
14,528 |
- |
- |
- |
14,528 |
Change in PAA balance |
10 |
(2) |
- |
- |
8 |
Net closing balance |
47,216 |
5,789 |
2,507 |
834 |
56,346 |
Closing reinsurance contract held assets |
50,275 |
5,442 |
2,619 |
389 |
58,725 |
Closing reinsurance contract held liabilities |
(3,308) |
333 |
(112) |
445 |
(2,642) |
Closing PAA reinsurance contract net assets |
249 |
14 |
- |
- |
263 |
Net closing balance, December 31, 2024 |
$47,216 |
$5,789 |
$2,507 |
$834 |
$56,346 |
CSM |
|||||
Estimates of
PV of future
cash flows
|
Risk
adjustment for
non-financial
risk
|
Fair value |
Other |
Total |
|
Opening reinsurance contract held assets |
$39,656 |
$4,049 |
$1,774 |
$99 |
$45,578 |
Opening reinsurance contract held liabilities |
(3,919) |
1,574 |
(39) |
38 |
(2,346) |
Opening PAA reinsurance contract net assets |
240 |
8 |
- |
- |
248 |
Net opening balance, January 1, 2023 |
35,977 |
5,631 |
1,735 |
137 |
43,480 |
CSM recognized for services received |
- |
- |
(217) |
53 |
(164) |
Change in risk adjustment for non-financial risk for risk expired |
- |
(478) |
- |
- |
(478) |
Experience adjustments |
(19) |
- |
- |
- |
(19) |
Changes that relate to current services |
(19) |
(478) |
(217) |
53 |
(661) |
Contracts initially recognized during the year |
(64) |
399 |
- |
(263) |
72 |
Changes in recoveries of losses on onerous underlying contracts that adjust
the CSM
|
- |
- |
(36) |
17 |
(19) |
Changes in estimates that adjust the CSM |
1,433 |
(821) |
(821) |
209 |
- |
Changes in estimates that relate to losses and reversal of losses on onerous
contracts
|
43 |
(20) |
- |
- |
23 |
Changes that relate to future services |
1,412 |
(442) |
(857) |
(37) |
76 |
Adjustments to liabilities for incurred claims |
5 |
- |
- |
- |
5 |
Changes that relate to past services |
5 |
- |
- |
- |
5 |
Insurance service result |
1,398 |
(920) |
(1,074) |
16 |
(580) |
Insurance finance (income) expenses from reinsurance contracts |
173 |
447 |
41 |
(31) |
630 |
Effects of changes in non-performance risk of reinsurers |
(14) |
- |
- |
- |
(14) |
Effects of movements in foreign exchange rates |
(916) |
(160) |
(21) |
- |
(1,097) |
Total changes in income and OCI |
641 |
(633) |
(1,054) |
(15) |
(1,061) |
Total cash flows |
(2,606) |
- |
- |
- |
(2,606) |
Change in PAA balance |
(1) |
8 |
- |
- |
7 |
Net closing balance |
34,011 |
5,006 |
681 |
122 |
39,820 |
Closing reinsurance contract held assets |
38,156 |
3,685 |
565 |
(51) |
42,355 |
Closing reinsurance contract held liabilities |
(4,384) |
1,305 |
116 |
173 |
(2,790) |
Closing PAA reinsurance contract net assets |
239 |
16 |
- |
- |
255 |
Net closing balance, December 31, 2023 |
$34,011 |
$5,006 |
$681 |
$122 |
$39,820 |
65 |
2024 Annual Report |
Consolidated Financial Statements |
Excluding contracts applying the
PAA
|
Contracts applying the PAA |
CSM |
||||||
As at December 31, 2024 |
Estimates of
PV of future
cash flows
|
Risk
adjustment for
non-financial
risk
|
Estimates of
PV of future
cash flows
|
Risk
adjustment for
non-financial
risk
|
Fair value |
Other |
Assets for
insurance
acquisition
cash flows
|
Total insurance
contract
liabilities
(assets)
|
Asia |
$153,801 |
$7,630 |
$1,497 |
$3 |
$11,338 |
$6,267 |
$(290) |
$180,246 |
Canada |
100,296 |
3,350 |
11,452 |
688 |
3,986 |
753 |
(588) |
119,937 |
U.S. |
207,665 |
11,337 |
- |
- |
3,823 |
738 |
- |
223,563 |
Corporate and Other |
(1,001) |
(14) |
252 |
- |
(140) |
- |
- |
(903) |
$460,761 |
$22,303 |
$13,201 |
$691 |
$19,007 |
$7,758 |
$(878) |
$522,843 |
|
Excluding contracts applying the
PAA
|
Contracts applying the PAA |
CSM |
||||||
As at December 31, 2023 |
Estimates of
PV of future
cash flows
|
Risk
adjustment for
non-financial
risk
|
Estimates of
PV of future
cash flows
|
Risk
adjustment for
non-financial
risk
|
Fair value |
Other |
Assets for
insurance
acquisition
cash flows
|
Total insurance
contract
liabilities
(assets)
|
Asia |
$132,135 |
$6,764 |
$1,242 |
$5 |
$10,431 |
$3,740 |
$(271) |
$154,046 |
Canada |
96,455 |
3,649 |
11,153 |
621 |
3,851 |
492 |
(549) |
115,672 |
U.S. |
196,921 |
12,438 |
- |
- |
3,243 |
459 |
- |
213,061 |
Corporate and Other |
(977) |
(13) |
317 |
- |
(112) |
- |
- |
(785) |
$424,534 |
$22,838 |
$12,712 |
$626 |
$17,413 |
$4,691 |
$(820) |
$481,994 |
|
Excluding contracts applying the
PAA
|
Contracts applying the PAA |
CSM |
|||||
As at December 31, 2024 |
Estimates of
PV of future
cash flows
|
Risk
adjustment for
non-financial
risk
|
Estimates of
PV of future
cash flows
|
Risk
adjustment for
non-financial
risk
|
Fair value |
Other |
Total
reinsurance
contract
liabilities
(assets)
|
Asia |
$4,462 |
$1,580 |
$- |
$- |
$627 |
$141 |
$6,810 |
Canada |
4,308 |
1,561 |
248 |
13 |
426 |
203 |
6,759 |
U.S. |
38,295 |
2,641 |
- |
1 |
1,603 |
490 |
43,030 |
Corporate and Other |
(98) |
(7) |
1 |
- |
(149) |
- |
(253) |
$46,967 |
$5,775 |
$249 |
$14 |
$2,507 |
$834 |
$56,346 |
|
Excluding contracts applying the
PAA
|
Contracts applying the PAA |
CSM |
|||||
As at December 31, 2023 |
Estimates of
PV of future
cash flows
|
Risk
adjustment for
non-financial
risk
|
Estimates of
PV of future
cash flows
|
Risk
adjustment for
non-financial
risk
|
Fair value |
Other |
Total
reinsurance
contract
liabilities
(assets)
|
Asia |
$(351) |
$1,326 |
$(37) |
$- |
$623 |
$70 |
$1,631 |
Canada |
(1,238) |
1,674 |
275 |
16 |
338 |
(56) |
1,009 |
U.S. |
35,461 |
1,997 |
- |
- |
(143) |
108 |
37,423 |
Corporate and Other |
(100) |
(7) |
1 |
- |
(137) |
- |
(243) |
$33,772 |
$4,990 |
$239 |
$16 |
$681 |
$122 |
$39,820 |
|
For the year ended December 31, 2024 |
Asia |
Canada |
U.S. |
Other |
Total |
Contracts under the fair value method |
$2,629 |
$3,322 |
$10,975 |
$(14) |
$16,912 |
Contracts under the full retrospective method |
489 |
62 |
141 |
- |
692 |
Other contracts |
2,691 |
5,912 |
287 |
98 |
8,988 |
Total |
$5,809 |
$9,296 |
$11,403 |
$84 |
$26,592 |
For the year ended December 31, 2023 |
Asia |
Canada |
U.S. |
Other |
Total |
Contracts under the fair value method |
$2,499 |
$3,288 |
$10,123 |
$(18) |
$15,892 |
Contracts under the full retrospective method |
531 |
48 |
152 |
- |
731 |
Other contracts |
2,026 |
5,283 |
(81) |
121 |
7,349 |
Total |
$5,056 |
$8,619 |
$10,194 |
$103 |
$23,972 |
Asia |
Canada |
U.S. |
Total |
|||||
As at December 31, 2024 |
Non-
Onerous
|
Onerous |
Non-
Onerous
|
Onerous |
Non-
Onerous
|
Onerous |
Non-
Onerous
|
Onerous |
New business insurance contracts |
||||||||
Estimates of present value of cash outflows |
$26,508 |
$1,019 |
$5,386 |
$193 |
$3,439 |
$958 |
$35,333 |
$2,170 |
Insurance acquisition cash flows |
4,764 |
147 |
860 |
40 |
802 |
211 |
6,426 |
398 |
Claims and other insurance service
expenses payable
|
21,744 |
872 |
4,526 |
153 |
2,637 |
747 |
28,907 |
1,772 |
Estimates of present value of cash inflows |
(29,664) |
(1,002) |
(5,876) |
(203) |
(3,841) |
(960) |
(39,381) |
(2,165) |
Risk adjustment for non-financial risk |
600 |
27 |
117 |
26 |
136 |
46 |
853 |
99 |
Contractual service margin |
2,556 |
- |
373 |
- |
266 |
- |
3,195 |
- |
Amount included in insurance contract
liabilities for the year
|
$- |
$44 |
$- |
$16 |
$- |
$44 |
$- |
$104 |
Asia |
Canada |
U.S. |
Total |
|||||
As at December 31, 2023 |
Non-
Onerous
|
Onerous |
Non-
Onerous
|
Onerous |
Non-
Onerous
|
Onerous |
Non-
Onerous
|
Onerous |
New business insurance contracts |
||||||||
Estimates of present value of cash outflows |
$16,209 |
$2,399 |
$3,478 |
$271 |
$2,524 |
$1,126 |
$22,211 |
$3,796 |
Insurance acquisition cash flows |
3,011 |
322 |
608 |
68 |
676 |
233 |
4,295 |
623 |
Claims and other insurance service
expenses payable
|
13,198 |
2,077 |
2,870 |
203 |
1,848 |
893 |
17,916 |
3,173 |
Estimates of present value of cash inflows |
(18,765) |
(2,330) |
(3,823) |
(286) |
(2,953) |
(1,145) |
(25,541) |
(3,761) |
Risk adjustment for non-financial risk |
679 |
89 |
115 |
41 |
168 |
88 |
962 |
218 |
Contractual service margin |
1,877 |
- |
230 |
- |
261 |
- |
2,368 |
- |
Amount included in insurance contract
liabilities for the year
|
$- |
$158 |
$- |
$26 |
$- |
$69 |
$- |
$253 |
As at December 31, 2024 |
Asia |
Canada |
U.S. |
Total |
New business reinsurance contracts |
||||
Estimates of present value of cash outflows |
$(7,144) |
$(6,153) |
$(7,519) |
$(20,816) |
Estimates of present value of cash inflows |
6,950 |
5,876 |
6,164 |
18,990 |
Risk adjustment for non-financial risk |
189 |
68 |
1,004 |
1,261 |
Contractual service margin |
21 |
217 |
384 |
622 |
Amount included in reinsurance assets for the year |
$16 |
$8 |
$33 |
$57 |
As at December 31, 2023 |
Asia |
Canada |
U.S. |
Total |
New business reinsurance contracts |
||||
Estimates of present value of cash outflows |
$(916) |
$(331) |
$(750) |
$(1,997) |
Estimates of present value of cash inflows |
815 |
319 |
799 |
1,933 |
Risk adjustment for non-financial risk |
170 |
76 |
153 |
399 |
Contractual service margin |
(57) |
(51) |
(155) |
(263) |
Amount included in reinsurance assets for the year |
$12 |
$13 |
$47 |
$72 |
67 |
2024 Annual Report |
Consolidated Financial Statements |
As at December 31, 2024 |
Less than
1 year
|
1 to 5
years
|
5 to 10
years
|
10 to 20
years
|
More than
20 years
|
Total |
Canada |
||||||
Insurance contracts issued |
$426 |
$1,347 |
$1,116 |
$1,173 |
$677 |
$4,739 |
Reinsurance contracts held |
(53) |
(150) |
(126) |
(144) |
(156) |
(629) |
373 |
1,197 |
990 |
1,029 |
521 |
4,110 |
|
U.S. |
||||||
Insurance contracts issued |
474 |
1,510 |
1,194 |
1,023 |
360 |
4,561 |
Reinsurance contracts held |
(278) |
(835) |
(569) |
(381) |
(30) |
(2,093) |
196 |
675 |
625 |
642 |
330 |
2,468 |
|
Asia |
||||||
Insurance contracts issued |
1,527 |
5,006 |
2,861 |
2,815 |
5,396 |
17,605 |
Reinsurance contracts held |
(72) |
(295) |
(194) |
(58) |
(149) |
(768) |
1,455 |
4,711 |
2,667 |
2,757 |
5,247 |
16,837 |
|
Corporate |
||||||
Insurance contracts issued |
(10) |
(36) |
(35) |
(42) |
(17) |
(140) |
Reinsurance contracts held |
13 |
67 |
59 |
11 |
(1) |
149 |
3 |
31 |
24 |
(31) |
(18) |
9 |
|
Total |
$2,027 |
$6,614 |
$4,306 |
$4,397 |
$6,080 |
$23,424 |
As at December 31, 2023 |
Less than
1 year
|
1 to 5
years
|
5 to 10
years
|
10 to 20
years
|
More than
20 years
|
Total |
Canada |
||||||
Insurance contracts issued |
$379 |
$1,213 |
$1,016 |
$1,084 |
$651 |
$4,343 |
Reinsurance contracts held |
(36) |
(83) |
(52) |
(46) |
(65) |
(282) |
343 |
1,130 |
964 |
1,038 |
586 |
4,061 |
|
U.S. |
||||||
Insurance contracts issued |
388 |
1,235 |
968 |
823 |
288 |
3,702 |
Reinsurance contracts held |
(50) |
(139) |
(35) |
90 |
169 |
35 |
338 |
1,096 |
933 |
913 |
457 |
3,737 |
|
Asia |
||||||
Insurance contracts issued |
1,273 |
4,066 |
3,320 |
3,308 |
2,204 |
14,171 |
Reinsurance contracts held |
(44) |
(202) |
(173) |
(105) |
(169) |
(693) |
1,229 |
3,864 |
3,147 |
3,203 |
2,035 |
13,478 |
|
Corporate |
||||||
Insurance contracts issued |
(8) |
(28) |
(28) |
(34) |
(14) |
(112) |
Reinsurance contracts held |
10 |
51 |
53 |
19 |
4 |
137 |
2 |
23 |
25 |
(15) |
(10) |
25 |
|
Total |
$1,912 |
$6,113 |
$5,069 |
$5,139 |
$3,068 |
$21,301 |
For the year ended December 31, 2024 |
Insurance
contracts
|
Non-
insurance(1)
|
Total |
Investment return |
|||
Investment-related income |
$14,214 |
$3,268 |
$17,482 |
Net gains (losses) on financial assets at FVTPL |
1,788 |
63 |
1,851 |
Unrealized gains (losses) on FVOCI assets |
5,590 |
(6,803) |
(1,213) |
Impairment and recovery (loss) on financial assets |
137 |
(28) |
109 |
Investment expenses |
(644) |
(704) |
(1,348) |
Interest on required surplus |
672 |
(672) |
- |
Total investment return |
21,757 |
(4,876) |
16,881 |
Portion recognized in income (expenses) |
16,489 |
2,622 |
19,111 |
Portion recognized in OCI |
5,268 |
(7,498) |
(2,230) |
Insurance finance income (expenses) from insurance contracts issued and effect of
movement in exchange rates
|
|||
Interest accreted to insurance contracts |
(10,283) |
26 |
(10,257) |
Due to changes in interest rates and other financial assumptions |
10,199 |
(67) |
10,132 |
Changes in fair value of underlying items of direct participation contracts |
(5,231) |
- |
(5,231) |
Effects of risk mitigation option |
1,755 |
- |
1,755 |
Net foreign exchange income (expenses) |
(2) |
- |
(2) |
Hedge accounting offset from insurance contracts issued |
(128) |
- |
(128) |
Reclassification of derivative OCI to IFIE – cash flow hedges |
52 |
- |
52 |
Reclassification of derivative income (loss) changes to IFIE – fair value hedge |
(3,346) |
- |
(3,346) |
Other |
394 |
- |
394 |
Total insurance finance income (expenses) from insurance contracts issued |
(6,590) |
(41) |
(6,631) |
Effect of movements in foreign exchange rates |
(1,417) |
- |
(1,417) |
Total insurance finance income (expenses) from insurance contracts issued and effect of
movement in foreign exchange rates
|
(8,007) |
(41) |
(8,048) |
Portion recognized in income (expenses), including effects of exchange rates |
(16,252) |
33 |
(16,219) |
Portion recognized in OCI, including effects of exchange rates |
8,245 |
(74) |
8,171 |
Reinsurance finance income (expenses) from reinsurance contracts held and effect of
movement in foreign exchange rates
|
|||
Interest accreted to insurance contracts |
2,135 |
- |
2,135 |
Due to changes in interest rates and other financial assumptions |
(3,886) |
4 |
(3,882) |
Changes in risk of non-performance of reinsurers |
(57) |
- |
(57) |
Other |
(88) |
- |
(88) |
Total reinsurance finance income (expenses) from reinsurance contracts held |
(1,896) |
4 |
(1,892) |
Effect of movements in foreign exchange rates |
243 |
- |
243 |
Total reinsurance finance income (expenses) from reinsurance contracts held and effect of
movement in foreign exchange rates
|
(1,653) |
4 |
(1,649) |
Portion recognized in income (expenses), including effects of foreign exchange rates |
1,133 |
- |
1,133 |
Portion recognized in OCI, including effects of exchange rates |
(2,786) |
4 |
(2,782) |
Decrease (increase) in investment contract liabilities |
(6) |
(498) |
(504) |
Total net investment income (loss), insurance finance income (expenses) and reinsurance
finance income (expenses)
|
12,091 |
(5,411) |
6,680 |
Amounts recognized in income (expenses) |
1,364 |
2,157 |
3,521 |
Amounts recognized in OCI |
10,727 |
(7,568) |
3,159 |
69 |
2024 Annual Report |
Consolidated Financial Statements |
For the year ended December 31, 2023 |
Insurance
contracts
|
Non-
insurance(1)
|
Total |
Investment return |
|||
Investment-related income |
$13,036 |
$3,079 |
$16,115 |
Net gains (losses) on financial assets at FVTPL |
2,176 |
506 |
2,682 |
Unrealized gains (losses) on FVOCI assets |
11,212 |
1,018 |
12,230 |
Impairment and recovery (loss) on financial assets |
(247) |
(57) |
(304) |
Investment expenses |
(540) |
(757) |
(1,297) |
Interest on required surplus |
521 |
(521) |
- |
Total investment return |
26,158 |
3,268 |
29,426 |
Portion recognized in income (expenses) |
15,830 |
2,191 |
18,021 |
Portion recognized in OCI |
10,328 |
1,077 |
11,405 |
Insurance finance income (expenses) from insurance contracts issued and effect of
movement in exchange rates
|
|||
Interest accreted to insurance contracts |
(8,214) |
28 |
(8,186) |
Due to changes in interest rates and other financial assumptions |
(11,008) |
21 |
(10,987) |
Changes in fair value of underlying items of direct participation contracts |
(7,384) |
- |
(7,384) |
Effects of risk mitigation option |
1,267 |
- |
1,267 |
Net foreign exchange income (expenses) |
(80) |
- |
(80) |
Hedge accounting offset from insurance contracts issued |
(41) |
- |
(41) |
Reclassification of derivative OCI to IFIE – cash flow hedges |
(3) |
- |
(3) |
Reclassification of derivative income (loss) changes to IFIE – fair value hedge |
185 |
- |
185 |
Other |
237 |
- |
237 |
Total insurance finance income (expenses) from insurance contracts issued |
(25,041) |
49 |
(24,992) |
Effect of movements in foreign exchange rates |
(952) |
- |
(952) |
Total insurance finance income (expenses) from insurance contracts issued and effect of
movement in foreign exchange rates
|
(25,993) |
49 |
(25,944) |
Portion recognized in income (expenses), including effects of exchange rates |
(13,930) |
36 |
(13,894) |
Portion recognized in OCI, including effects of exchange rates |
(12,063) |
13 |
(12,050) |
Reinsurance finance income (expenses) from reinsurance contracts held and effect of
movement in foreign exchange rates
|
|||
Interest accreted to insurance contracts |
241 |
(12) |
229 |
Due to changes in interest rates and other financial assumptions |
598 |
(28) |
570 |
Changes in risk of non-performance of reinsurers |
(15) |
- |
(15) |
Other |
(159) |
- |
(159) |
Total reinsurance finance income (expenses) from reinsurance contracts held |
665 |
(40) |
625 |
Effect of movements in foreign exchange rates |
(120) |
- |
(120) |
Total reinsurance finance income (expenses) from reinsurance contracts held and effect of
movement in foreign exchange rates
|
545 |
(40) |
505 |
Portion recognized in income (expenses), including effects of foreign exchange rates |
(719) |
(15) |
(734) |
Portion recognized in OCI, including effects of exchange rates |
1,264 |
(25) |
1,239 |
Decrease (increase) in investment contract liabilities |
(17) |
(418) |
(435) |
Total net investment income (loss), insurance finance income (expenses) and reinsurance
finance income (expenses)
|
693 |
2,859 |
3,552 |
Amounts recognized in income (expenses) |
1,164 |
1,794 |
2,958 |
Amounts recognized in OCI |
(471) |
1,065 |
594 |
Insurance and reinsurance contracts |
||||||
For the year ended December 31, 2024 |
Asia |
Canada |
U.S. |
Corporate |
Non-
insurance(1)
|
Total |
Total investment return |
||||||
Portion recognized in income (expenses) |
$7,994 |
$3,529 |
$4,943 |
$23 |
$2,622 |
$19,111 |
Portion recognized in OCI |
801 |
5,876 |
(1,411) |
2 |
(7,498) |
(2,230) |
8,795 |
9,405 |
3,532 |
25 |
(4,876) |
16,881 |
|
Total insurance finance income (expenses) from insurance
contracts issued and effect of movement in foreign
exchange rates
|
||||||
Portion recognized in income (expenses), including effects of
exchange rates
|
(7,334) |
(3,650) |
(5,278) |
10 |
33 |
(16,219) |
Portion recognized in OCI, including effects of exchange rates |
(977) |
473 |
8,749 |
- |
(74) |
8,171 |
(8,311) |
(3,177) |
3,471 |
10 |
(41) |
(8,048) |
|
Total reinsurance finance income (expenses) from
reinsurance contracts held and effect of movement in
foreign exchange rates
|
||||||
Portion recognized in income (expenses), including effects of
foreign exchange rates
|
604 |
347 |
185 |
(3) |
- |
1,133 |
Portion recognized in OCI, including effects of exchange rates |
(168) |
59 |
(2,677) |
- |
4 |
(2,782) |
436 |
406 |
(2,492) |
(3) |
4 |
(1,649) |
|
Insurance and reinsurance contracts |
||||||
For the year ended December 31, 2023 |
Asia |
Canada |
U.S. |
Corporate |
Non-
insurance(1)
|
Total |
Total investment return |
||||||
Portion recognized in income (expenses) |
$7,095 |
$3,514 |
$5,193 |
$28 |
$2,191 |
$18,021 |
Portion recognized in OCI |
4,675 |
2,454 |
3,197 |
2 |
1,077 |
11,405 |
11,770 |
5,968 |
8,390 |
30 |
3,268 |
29,426 |
|
Total insurance finance income (expenses) from insurance
contracts issued and effect of movement in foreign
exchange rates
|
||||||
Portion recognized in income (expenses), including effects of
exchange rates
|
(6,436) |
(3,315) |
(4,868) |
689 |
36 |
(13,894) |
Portion recognized in OCI, including effects of exchange rates |
(4,601) |
(2,394) |
(5,068) |
- |
13 |
(12,050) |
(11,037) |
(5,709) |
(9,936) |
689 |
49 |
(25,944) |
|
Total reinsurance finance income (expenses) from
reinsurance contracts held and effect of movement in
foreign exchange rates
|
||||||
Portion recognized in income (expenses), including effects of
foreign exchange rates
|
(105) |
57 |
11 |
(682) |
(15) |
(734) |
Portion recognized in OCI, including effects of exchange rates |
117 |
33 |
1,114 |
- |
(25) |
1,239 |
12 |
90 |
1,125 |
(682) |
(40) |
505 |
|
71 |
2024 Annual Report |
Consolidated Financial Statements |
Nature of factors and assumption methodology |
Risk management |
|
Nature of factors and assumption methodology |
Risk management |
|
December 31, 2024 |
||||||||||
Currency |
Liquidity category |
Observable
years
|
Ultimate
year
|
1 year |
5 years |
10 years |
20 years |
30 years |
Ultimate |
|
Canada |
CAD |
Illiquid |
30 |
70 |
3.46% |
3.93% |
4.86% |
5.00% |
5.32% |
4.40% |
Somewhat liquid (1) |
30 |
70 |
3.44% |
3.89% |
4.76% |
4.98% |
5.21% |
4.40% |
||
U.S. |
USD |
Illiquid |
30 |
70 |
4.48% |
5.05% |
6.01% |
6.33% |
6.15% |
5.15% |
Somewhat liquid (1) |
30 |
70 |
4.56% |
5.09% |
5.91% |
6.33% |
6.14% |
5.03% |
||
Japan |
JPY |
Somewhat liquid (1) |
30 |
70 |
0.82% |
1.17% |
1.55% |
2.33% |
2.97% |
1.60% |
Hong Kong |
HKD |
Illiquid |
15 |
55 |
3.73% |
4.36% |
5.23% |
4.70% |
4.17% |
3.70% |
December 31, 2023 |
||||||||||
Currency |
Liquidity category |
Observable
years
|
Ultimate
year
|
1 year |
5 years |
10 years |
20 years |
30 years |
Ultimate |
|
Canada |
CAD |
Illiquid |
30 |
70 |
5.17% |
4.33% |
4.92% |
4.86% |
4.80% |
4.40% |
Somewhat liquid (1) |
30 |
70 |
5.14% |
4.22% |
4.69% |
4.72% |
4.69% |
4.40% |
||
U.S. |
USD |
Illiquid |
30 |
70 |
5.38% |
4.54% |
5.37% |
5.65% |
5.27% |
5.00% |
Somewhat liquid (1) |
30 |
70 |
5.32% |
4.57% |
5.25% |
5.56% |
5.18% |
4.88% |
||
Japan |
JPY |
Somewhat liquid (1) |
30 |
70 |
0.53% |
0.77% |
1.08% |
1.75% |
2.24% |
1.60% |
Hong Kong |
HKD |
Illiquid |
15 |
55 |
4.20% |
4.01% |
4.98% |
4.61% |
4.19% |
3.80% |
73 |
2024 Annual Report |
Consolidated Financial Statements |
As at December 31, 2024 |
CSM net of NCI |
Net income attributed to
shareholders
|
Other comprehensive
income attributed to
shareholders
|
Total comprehensive
income attributed to
shareholders
|
||||
(post-tax except CSM) |
Gross |
Net |
Gross |
Net |
Gross |
Net |
Gross |
Net |
Policy related assumptions |
||||||||
2% adverse change in future mortality rates(2),(3),(5) |
||||||||
Portfolios where an increase in rates increases
insurance contract liabilities
|
$(700) |
$(200) |
$(700) |
$(300) |
$200 |
$100 |
$(500) |
$(200) |
Portfolios where a decrease in rates increases
insurance contract liabilities
|
(100) |
(600) |
- |
- |
100 |
200 |
100 |
200 |
5% adverse change in future morbidity rates(4),(5),(6)
(incidence and termination)
|
(2,200) |
(1,800) |
(3,000) |
(2,700) |
700 |
600 |
(2,300) |
(2,100) |
10% change in future policy termination rates(3),(5) |
||||||||
Portfolios where an increase in rates increases
insurance contract liabilities
|
(700) |
(600) |
(100) |
(100) |
(200) |
(200) |
(300) |
(300) |
Portfolios where a decrease in rates increases
insurance contract liabilities
|
(900) |
(700) |
(700) |
(400) |
400 |
300 |
(300) |
(100) |
5% increase in future expense levels |
(600) |
(600) |
(100) |
(100) |
100 |
100 |
- |
- |
As at December 31, 2023 |
CSM net of NCI |
Net income attributed to
shareholders
|
Other comprehensive
income attributed to
shareholders
|
Total comprehensive
income attributed to
shareholders
|
||||
(post-tax except CSM) |
Gross |
Net |
Gross |
Net |
Gross |
Net |
Gross |
Net |
Policy related assumptions |
||||||||
2% adverse change in future mortality rates(2),(3),(5) |
||||||||
Portfolios where an increase in rates increases
insurance contract liabilities
|
$(800) |
$(200) |
$(400) |
$(200) |
$- |
$- |
$(400) |
$(200) |
Portfolios where a decrease in rates increases
insurance contract liabilities
|
- |
(500) |
- |
- |
- |
100 |
- |
100 |
5% adverse change in future morbidity rates(4),(5),(6)
(incidence and termination)
|
(1,500) |
(1,300) |
(3,300) |
(3,300) |
500 |
400 |
(2,800) |
(2,900) |
10% change in future policy termination rates(3),(5) |
||||||||
Portfolios where an increase in rates increases
insurance contract liabilities
|
(600) |
(500) |
(100) |
(100) |
(100) |
(100) |
(200) |
(200) |
Portfolios where a decrease in rates increases
insurance contract liabilities
|
(1,200) |
(800) |
(400) |
(300) |
300 |
200 |
(100) |
(100) |
5% increase in future expense levels |
(600) |
(600) |
- |
- |
- |
- |
- |
- |
75 |
2024 Annual Report |
Consolidated Financial Statements |
As at December 31, 2024 |
CSM net of NCI |
Net income attributed
to shareholders
|
Other comprehensive
income attributed to
shareholders
|
Total comprehensive
income attributed to
shareholders
|
||||
(post-tax except CSM) |
Gross |
Net |
Gross |
Net |
Gross |
Net |
Gross |
Net |
Policy related assumptions |
||||||||
2% adverse change in future mortality rates(2),(3) |
$(300) |
$(300) |
$- |
$- |
$- |
$- |
$- |
$- |
5% adverse change in future morbidity incidence rates(2),(3) |
(1,400) |
(1,300) |
(500) |
(400) |
200 |
200 |
(300) |
(200) |
5% adverse change in future morbidity claims
termination rates(2),(3)
|
(1,400) |
(1,300) |
(1,300) |
(1,100) |
500 |
400 |
(800) |
(700) |
10% adverse change in future policy termination rates(2),(3) |
(400) |
(400) |
- |
- |
100 |
100 |
100 |
100 |
5% increase in future expense levels(3) |
(100) |
(100) |
- |
- |
- |
- |
- |
- |
As at December 31, 2023 |
CSM net of NCI |
Net income attributed
to shareholders
|
Other comprehensive
income attributed to
shareholders
|
Total comprehensive
income attributed to
shareholders
|
||||
(post-tax except CSM) |
Gross |
Net |
Gross |
Net |
Gross |
Net |
Gross |
Net |
Policy related assumptions |
||||||||
2% adverse change in future mortality rates(2),(3) |
$(300) |
$(300) |
$- |
$- |
$- |
$- |
$- |
$- |
5% adverse change in future morbidity incidence rates(2),(3) |
(900) |
(900) |
(800) |
(800) |
100 |
100 |
(700) |
(700) |
5% adverse change in future morbidity claims
termination rates(2),(3)
|
(900) |
(900) |
(1,600) |
(1,600) |
200 |
200 |
(1,400) |
(1,400) |
10% adverse change in future policy termination rates(2),(3) |
(400) |
(400) |
- |
- |
- |
- |
- |
- |
5% increase in future expense levels(3) |
(100) |
(100) |
- |
- |
- |
- |
- |
- |
As at December 31, 2024
(post-tax except CSM)
|
CSM net of
NCI
|
Net income
attributed to
shareholders
|
Other comprehensive
income attributed to
shareholders
|
Total comprehensive
income attributed to
shareholders
|
||
Financial assumptions |
||||||
10 basis point reduction in ultimate spot rate |
$(300) |
$- |
$(200) |
$(200) |
||
50 basis point increase in interest rate volatility(2) |
(100) |
- |
- |
- |
||
50 basis point increase in non-fixed income return volatility(2) |
(100) |
- |
- |
- |
||
As at December 31, 2023
(post-tax except CSM)
|
CSM net of
NCI
|
Net income
attributed to
shareholders
|
Other comprehensive
income attributed to
shareholders
|
Total comprehensive
income attributed to
shareholders
|
||
Financial assumptions |
||||||
10 basis point reduction in ultimate spot rate |
$(200) |
$- |
$(300) |
$(300) |
||
50 basis point increase in interest rate volatility(2) |
- |
- |
- |
- |
||
50 basis point increase in non-fixed income return volatility(2) |
(100) |
- |
- |
- |
||
For the year ended December 31, 2024 |
Total |
Lapse and policyholder behaviour updates |
$620 |
Reinsurance contract and other risk adjustment review |
427 |
Expense updates |
(406) |
Financial related updates |
(386) |
Mortality and morbidity updates |
(273) |
Methodology and other updates |
(156) |
Impact of changes in actuarial methods and assumptions, pre-tax |
$(174) |
For the year ended December 31, 2024 |
Total |
Portion recognized in net income (loss) attributed to: |
|
Participating policyholders |
$29 |
Shareholders |
(250) |
(221) |
|
Portion recognized in OCI attributed to: |
|
Participating policyholders |
45 |
Shareholders |
771 |
816 |
|
Portion recognized in CSM |
(421) |
Impact of changes in actuarial methods and assumptions, pre-tax |
$174 |
77 |
2024 Annual Report |
Consolidated Financial Statements |
For the three and
nine months ended
September 30, 2023
|
For the three
months ended
December 31, 2023
|
For the year ended
December 31, 2023
|
||||
Canada variable annuity product review |
$(133) |
$- |
$(133) |
|||
Mortality and morbidity updates |
265 |
- |
265 |
|||
Lapse and policyholder behaviour updates |
98 |
- |
98 |
|||
Methodology and other updates |
(577) |
- |
(577) |
|||
Risk adjustment review |
- |
(2,850) |
(2,850) |
|||
Impact of changes in actuarial methods and assumptions, pre-tax |
$(347) |
$(2,850) |
$(3,197) |
|||
For the three and
nine months ended
September 30, 2023
|
For the three
months ended
December 31, 2023
|
For the year ended
December 31, 2023
|
||||
Portion recognized in net income (loss) attributed to: |
||||||
Participating policyholders |
$58 |
$115 |
$173 |
|||
Shareholders |
27 |
144 |
171 |
|||
85 |
259 |
344 |
||||
Portion recognized in OCI attributed to: |
||||||
Participating policyholders |
- |
(21) |
(21) |
|||
Shareholders |
146 |
(26) |
120 |
|||
146 |
(47) |
99 |
||||
Portion recognized in CSM |
116 |
2,638 |
2,754 |
|||
Impact of changes in actuarial methods and assumptions, pre-tax |
$347 |
$2,850 |
$3,197 |
|||
79 |
2024 Annual Report |
Consolidated Financial Statements |
2024 |
2023 |
||||||
As at December 31, |
Participating |
Variable annuity |
Unit linked |
Participating |
Variable annuity |
Unit linked |
|
Underlying assets |
|||||||
Debt securities |
$54,238 |
$- |
$- |
$44,682 |
$- |
$- |
|
Public equities |
19,846 |
- |
- |
14,442 |
- |
- |
|
Mortgages |
4,535 |
- |
- |
4,449 |
- |
- |
|
Private placements |
8,398 |
- |
- |
6,720 |
- |
- |
|
Real estate |
4,525 |
- |
- |
3,907 |
- |
- |
|
Other(1)(2) |
31,952 |
72,061 |
18,771 |
27,017 |
68,749 |
15,539 |
|
Total |
$123,494 |
$72,061 |
$18,771 |
$101,217 |
$68,749 |
$15,539 |
|
2024 |
2023 |
||||||||
As at December 31, |
Less than
1 year
|
1 to 5
years
|
More than
5 years
|
Total |
Less than
1 year
|
1 to 5
years
|
More than
5 years
|
Total |
|
Asia |
$65 |
$168 |
$57 |
$290 |
$59 |
$150 |
$62 |
$271 |
|
Canada |
72 |
213 |
303 |
588 |
72 |
205 |
272 |
549 |
|
Total |
$137 |
$381 |
$360 |
$878 |
$131 |
$355 |
$334 |
$820 |
|
As at December 31, 2024
Payments due by period
|
Less than
1 year
|
1 to 2
years
|
2 to 3
years
|
3 to 4
years
|
4 to 5
years
|
Over 5
years
|
Total |
Insurance contract liabilities(1) |
$4,223 |
$3,711 |
$6,266 |
$8,741 |
$12,644 |
$1,348,354 |
$1,383,939 |
Reinsurance contract held liabilities(1) |
250 |
395 |
530 |
419 |
373 |
(11,450) |
(9,483) |
As at December 31, 2023
Payments due by period
|
Less than
1 year
|
1 to 2
years
|
2 to 3
years
|
3 to 4
years
|
4 to 5
years
|
Over 5
years
|
Total |
Insurance contract liabilities(1) |
$3,400 |
$5,546 |
$6,766 |
$8,849 |
$11,320 |
$1,074,764 |
$1,110,645 |
Reinsurance contract held liabilities(1) |
332 |
460 |
492 |
592 |
475 |
6,097 |
8,448 |
2024 |
2023 |
||||
As at December 31, |
Amounts
payable on
demand
|
Carrying
amount
|
Amounts
payable on
demand
|
Carrying
amount
|
|
Asia |
$121,197 |
$131,829 |
$100,060 |
$129,117 |
|
Canada |
31,100 |
53,224 |
28,264 |
56,887 |
|
U.S. |
48,918 |
66,524 |
44,360 |
63,092 |
|
Total |
$201,215 |
$251,577 |
$172,684 |
$249,096 |
|
81 |
2024 Annual Report |
Consolidated Financial Statements |
For the years ended December 31, |
2024 |
2023 |
Balance, excluding those for account of segregated fund holders, January 1 |
$749 |
$798 |
New contracts |
70 |
48 |
Changes in market conditions |
67 |
47 |
Redemptions, surrenders and maturities |
(154) |
(122) |
Impact of changes in foreign exchange rates |
76 |
(22) |
Balance, excluding those for account of segregated fund holders, December 31 |
808 |
749 |
Investment contract liabilities for account of segregated fund holders |
309,443 |
263,401 |
Balance, December 31 |
$310,251 |
$264,150 |
2024 |
2023 |
||||
As at December 31, |
Amortized cost |
Fair value |
Amortized cost |
Fair value |
|
Asia |
$325 |
$315 |
$451 |
$438 |
|
Canada |
7,571 |
7,548 |
7,642 |
7,534 |
|
U.S. |
1,406 |
1,375 |
1,381 |
1,440 |
|
GWAM |
3,388 |
3,557 |
1,593 |
1,582 |
|
Investment contract liabilities |
$12,690 |
$12,795 |
$11,067 |
$10,994 |
|
For the years ended December 31, |
2024 |
2023 |
Balance, January 1 |
$11,067 |
$9,281 |
Policy deposits |
3,218 |
3,365 |
Interest |
316 |
218 |
Withdrawals |
(2,240) |
(1,629) |
Fees |
- |
1 |
Impact of changes in foreign exchange rates |
351 |
(108) |
Other |
(22) |
(61) |
Balance, December 31 |
$12,690 |
$11,067 |
As at December 31,
Payments due by period
|
Less than
1 year(2)
|
1 to 3
years
|
3 to 5
years
|
Over 5
years
|
Total |
2024 |
$316,119 |
$2,766 |
$1,170 |
$2,738 |
$322,793 |
2023 |
268,537 |
2,978 |
1,408 |
3,488 |
276,411 |
83 |
2024 Annual Report |
Consolidated Financial Statements |
Risk Management Strategy |
Key Market & Liquidity Risk |
||||
Public
Equity Risk
|
Interest Rate
and Spread
Risk
|
ALDA
Risk
|
Foreign
Currency
Exchange Risk
|
Liquidity Risk |
|
Product design and pricing |
ü |
ü |
ü |
ü |
ü |
Variable annuity guarantee dynamic hedging |
ü |
ü |
ü |
ü |
|
Macro equity risk hedging |
ü |
ü |
ü |
||
Asset liability management |
ü |
ü |
ü |
ü |
ü |
Foreign currency exchange management |
ü |
ü |
|||
Liquidity risk management |
ü |
||||
85 |
2024 Annual Report |
Consolidated Financial Statements |
As at December 31, 2024 |
Less than
1 year
|
1 to 3
years
|
3 to 5
years
|
Over 5
years
|
Total |
Long-term debt |
$- |
$2,829 |
$- |
$3,800 |
$6,629 |
Capital instruments |
- |
- |
- |
7,532 |
7,532 |
Derivatives |
2,320 |
2,304 |
1,244 |
8,379 |
14,247 |
Deposits from Bank clients(2) |
15,690 |
3,774 |
2,599 |
- |
22,063 |
Lease liabilities |
105 |
151 |
52 |
47 |
355 |
2024 |
2023 |
||||||
As at December 31, |
Guarantee
value(1)
|
Fund value |
Net amount
at risk(1),(2),(3)
|
Guarantee
value(1)
|
Fund value |
Net amount
at risk(1),(2),(3)
|
|
Guaranteed minimum income benefit |
$3,628 |
$2,780 |
$918 |
$3,864 |
$2,735 |
$1,156 |
|
Guaranteed minimum withdrawal benefit |
33,473 |
33,539 |
3,339 |
34,833 |
33,198 |
4,093 |
|
Guaranteed minimum accumulation benefit |
18,987 |
19,097 |
70 |
18,996 |
19,025 |
116 |
|
Gross living benefits(4) |
56,088 |
55,416 |
4,327 |
57,693 |
54,958 |
5,365 |
|
Gross death benefits(5) |
8,612 |
19,851 |
644 |
9,133 |
17,279 |
975 |
|
Total gross of reinsurance |
64,700 |
75,267 |
4,971 |
66,826 |
72,237 |
6,340 |
|
Living benefits reinsured |
23,768 |
23,965 |
3,016 |
24,208 |
23,146 |
3,395 |
|
Death benefits reinsured |
3,430 |
2,776 |
289 |
3,400 |
2,576 |
482 |
|
Total reinsured |
27,198 |
26,741 |
3,305 |
27,608 |
25,722 |
3,877 |
|
Total, net of reinsurance |
$37,502 |
$48,526 |
$1,666 |
$39,218 |
$46,515 |
$2,463 |
|
As at December 31, |
2024 |
2023 |
Investment category |
||
Equity funds |
$51,457 |
$45,593 |
Balanced funds |
37,381 |
35,801 |
Bond funds |
9,017 |
8,906 |
Money market funds |
1,712 |
1,559 |
Other debt investments |
2,082 |
1,907 |
Total |
$101,649 |
$93,766 |
87 |
2024 Annual Report |
Consolidated Financial Statements |
Net income attributed to shareholders |
||||||
As at December 31, 2024 |
-30% |
-20% |
-10% |
+10% |
+20% |
+30% |
Underlying sensitivity |
||||||
Variable annuity and segregated fund guarantees(2) |
$(2,050) |
$(1,240) |
$(560) |
$470 |
$860 |
$1,190 |
General fund equity investments(3) |
(1,240) |
(820) |
(400) |
390 |
780 |
1,180 |
Total underlying sensitivity before hedging |
(3,290) |
(2,060) |
(960) |
860 |
1,640 |
2,370 |
Impact of macro and dynamic hedge assets(4) |
720 |
430 |
190 |
(150) |
(260) |
(360) |
Net potential impact on net income attributed to
shareholders after impact of hedging and before impact
of reinsurance
|
(2,570) |
(1,630) |
(770) |
710 |
1,380 |
2,010 |
Impact of reinsurance |
1,320 |
810 |
370 |
(320) |
(590) |
(830) |
Net potential impact on net income attributed to
shareholders after impact of hedging and
reinsurance
|
$(1,250) |
$(820) |
$(400) |
$390 |
$790 |
$1,180 |
Net income attributed to shareholders |
||||||
As at December 31, 2023 |
-30% |
-20% |
-10% |
+10% |
+20% |
+30% |
Underlying sensitivity |
||||||
Variable annuity and segregated fund guarantees(2) |
$(2,370) |
$(1,460) |
$(670) |
$550 |
$1,010 |
$1,390 |
General fund equity investments(3) |
(1,170) |
(770) |
(390) |
380 |
760 |
1,140 |
Total underlying sensitivity before hedging |
(3,540) |
(2,230) |
(1,060) |
930 |
1,770 |
2,530 |
Impact of macro and dynamic hedge assets(4) |
880 |
530 |
240 |
(190) |
(340) |
(460) |
Net potential impact on net income attributed to
shareholders after impact of hedging and before impact
of reinsurance
|
(2,660) |
(1,700) |
(820) |
740 |
1,430 |
2,070 |
Impact of reinsurance |
1,470 |
900 |
420 |
(350) |
(650) |
(910) |
Net potential impact on net income attributed to
shareholders after impact of hedging and
reinsurance
|
$(1,190) |
$(800) |
$(400) |
$390 |
$780 |
$1,160 |
As at December 31, 2024 |
-30% |
-20% |
-10% |
+10% |
+20% |
+30% |
Variable annuity and segregated fund guarantees
reported in CSM
|
$(3,420) |
$(2,110) |
$(970) |
$840 |
$1,580 |
$2,250 |
Impact of risk mitigation - hedging(4) |
940 |
560 |
250 |
(190) |
(350) |
(470) |
Impact of risk mitigation - reinsurance(4) |
1,670 |
1,020 |
470 |
(400) |
(740) |
(1,050) |
VA net of risk mitigation |
(810) |
(530) |
(250) |
250 |
490 |
730 |
General fund equity |
(1,140) |
(740) |
(370) |
370 |
750 |
1,110 |
Contractual service margin (pre-tax) |
$(1,950) |
$(1,270) |
$(620) |
$620 |
$1,240 |
$1,840 |
Other comprehensive income attributed to
shareholders (post-tax)(5)
|
$(840) |
$(560) |
$(280) |
$270 |
$530 |
$790 |
Total comprehensive income attributed to
shareholders (post-tax)
|
$(2,090) |
$(1,380) |
$(680) |
$660 |
$1,320 |
$1,970 |
As at December 31, 2023 |
-30% |
-20% |
-10% |
+10% |
+20% |
+30% |
Variable annuity and segregated fund guarantees
reported in CSM
|
$(3,810) |
$(2,370) |
$(1,100) |
$940 |
$1,760 |
$2,470 |
Impact of risk mitigation - hedging(4) |
1,150 |
700 |
310 |
(250) |
(450) |
(600) |
Impact of risk mitigation - reinsurance(4) |
1,850 |
1,140 |
530 |
(450) |
(830) |
(1,150) |
VA net of risk mitigation |
(810) |
(530) |
(260) |
240 |
480 |
720 |
General fund equity |
(940) |
(610) |
(300) |
290 |
590 |
870 |
Contractual service margin (pre-tax) |
$(1,750) |
$(1,140) |
$(560) |
$530 |
$1,070 |
$1,590 |
Other comprehensive income attributed to
shareholders (post-tax)(5)
|
$(730) |
$(490) |
$(240) |
$230 |
$460 |
$680 |
Total comprehensive income attributed to
shareholders (post-tax)
|
$(1,920) |
$(1,290) |
$(640) |
$620 |
$1,240 |
$1,840 |
89 |
2024 Annual Report |
Consolidated Financial Statements |
As at December 31, 2024 |
Interest rates |
Corporate spreads |
Swap spreads |
|||||
(post-tax except CSM) |
-50bp |
+50bp |
-50bp |
+50bp |
-20bp |
+20bp |
||
CSM |
$100 |
$(200) |
$- |
$(100) |
$- |
$- |
||
Net income attributed to shareholders |
100 |
(100) |
100 |
(100) |
100 |
(100) |
||
Other comprehensive income attributed to shareholders |
(100) |
200 |
(200) |
300 |
(100) |
100 |
||
Total comprehensive income attributed to shareholders |
- |
100 |
(100) |
200 |
- |
- |
||
As at December 31, 2023 |
Interest rates |
Corporate spreads |
Swap spreads |
|||||
(post-tax except CSM) |
-50bp |
+50bp |
-50bp |
+50bp |
-20bp |
+20bp |
||
CSM |
$- |
$(100) |
$- |
$(100) |
$- |
$- |
||
Net income attributed to shareholders |
100 |
(100) |
- |
- |
100 |
(100) |
||
Other comprehensive income attributed to shareholders |
(300) |
300 |
(200) |
300 |
(100) |
100 |
||
Total comprehensive income attributed to shareholders |
(200) |
200 |
(200) |
300 |
- |
- |
||
As at |
December 31, 2024 |
December 31, 2023 |
|||
(post-tax except CSM) |
-10% |
+10% |
-10% |
+10% |
|
CSM excluding NCI |
$(200) |
$200 |
$(100) |
$100 |
|
Net income attributed to shareholders(2) |
(2,500) |
2,500 |
(2,400) |
2,400 |
|
Other comprehensive income attributed to shareholders |
(200) |
200 |
(200) |
200 |
|
Total comprehensive income attributed to shareholders |
(2,700) |
2,700 |
(2,600) |
2,600 |
|
91 |
2024 Annual Report |
Consolidated Financial Statements |
As at December 31, 2024 |
Stage 1 |
Stage 2 |
Stage 3 |
Total |
Debt securities, measured at FVOCI |
||||
Investment grade |
$197,840 |
$1,338 |
$- |
$199,178 |
Non-investment grade |
5,625 |
363 |
- |
5,988 |
Total carrying value |
203,465 |
1,701 |
- |
205,166 |
Allowance for credit losses |
228 |
42 |
- |
270 |
Debt securities, measured at amortized cost |
||||
Investment grade |
1,496 |
- |
- |
1,496 |
Non-investment grade |
- |
- |
- |
- |
Total |
1,496 |
- |
- |
1,496 |
Allowance for credit losses |
1 |
- |
- |
1 |
Total carrying value, net of allowance |
1,495 |
- |
- |
1,495 |
Private placements, measured at FVOCI |
||||
Investment grade |
41,796 |
721 |
- |
42,517 |
Non-investment grade |
5,004 |
1,133 |
148 |
6,285 |
Total carrying value |
46,800 |
1,854 |
148 |
48,802 |
Allowance for credit losses |
126 |
127 |
123 |
376 |
Commercial mortgages, measured at FVOCI |
||||
AAA |
205 |
- |
- |
205 |
AA |
7,234 |
- |
- |
7,234 |
A |
14,035 |
- |
- |
14,035 |
BBB |
5,679 |
873 |
- |
6,552 |
BB |
11 |
663 |
- |
674 |
B and lower |
- |
21 |
71 |
92 |
Total carrying value |
27,164 |
1,557 |
71 |
28,792 |
Allowance for credit losses |
41 |
39 |
55 |
135 |
Commercial mortgages, measured at amortized cost |
||||
AAA |
- |
- |
- |
- |
AA |
- |
- |
- |
- |
A |
225 |
15 |
- |
240 |
BBB |
- |
- |
- |
- |
BB |
- |
- |
- |
- |
B and lower |
112 |
5 |
5 |
122 |
Total |
337 |
20 |
5 |
362 |
Allowance for credit losses |
1 |
1 |
- |
2 |
Total carrying value, net of allowance |
336 |
19 |
5 |
360 |
Residential mortgages, measured at amortized cost |
||||
Performing |
22,870 |
1,151 |
- |
24,021 |
Non-performing |
- |
- |
41 |
41 |
Total |
22,870 |
1,151 |
41 |
24,062 |
Allowance for credit losses |
3 |
2 |
1 |
6 |
Total carrying value, net of allowance |
22,867 |
1,149 |
40 |
24,056 |
Loans to Bank clients, measured at amortized cost |
||||
Performing |
2,265 |
38 |
- |
2,303 |
Non-performing |
- |
- |
10 |
10 |
Total |
2,265 |
38 |
10 |
2,313 |
Allowance for credit losses |
1 |
1 |
1 |
3 |
Total carrying value, net of allowance |
2,264 |
37 |
9 |
2,310 |
Other invested assets, measured at FVOCI |
||||
Investment grade |
- |
- |
- |
- |
Non-investment grade |
389 |
- |
- |
389 |
Total carrying value |
389 |
- |
- |
389 |
Allowance for credit losses |
22 |
- |
- |
22 |
Other invested assets, measured at amortized cost |
||||
Investment grade |
4,302 |
- |
- |
4,302 |
Non-investment grade |
- |
- |
- |
- |
Total |
4,302 |
- |
- |
4,302 |
Allowance for credit losses |
2 |
- |
- |
2 |
Total carrying value, net of allowance |
4,300 |
- |
- |
4,300 |
Loan commitments |
||||
Allowance for credit losses |
9 |
1 |
1 |
11 |
Total carrying value, net of allowance |
$309,080 |
$6,317 |
$273 |
$315,670 |
As at December 31, 2023 |
Stage 1 |
Stage 2 |
Stage 3 |
Total |
Debt securities, measured at FVOCI |
||||
Investment grade |
$197,562 |
$2,252 |
$- |
$199,814 |
Non-investment grade |
5,367 |
596 |
- |
5,963 |
Total carrying value |
202,929 |
2,848 |
- |
205,777 |
Allowance for credit losses |
283 |
54 |
6 |
343 |
Debt securities, measured at amortized cost |
||||
Investment grade |
1,373 |
- |
- |
1,373 |
Non-investment grade |
- |
- |
- |
- |
Total |
1,373 |
- |
- |
1,373 |
Allowance for credit losses |
1 |
- |
- |
1 |
Total carrying value, net of allowance |
1,372 |
- |
- |
1,372 |
Private placements, measured at FVOCI |
||||
Investment grade |
37,722 |
1,644 |
- |
39,366 |
Non-investment grade |
5,210 |
295 |
81 |
5,586 |
Total carrying value |
42,932 |
1,939 |
81 |
44,952 |
Allowance for credit losses |
126 |
108 |
83 |
317 |
Commercial mortgages, measured at FVOCI |
||||
AAA |
279 |
- |
- |
279 |
AA |
6,815 |
- |
- |
6,815 |
A |
14,111 |
86 |
- |
14,197 |
BBB |
5,513 |
984 |
- |
6,497 |
BB |
10 |
532 |
- |
542 |
B and lower |
- |
36 |
107 |
143 |
Total carrying value |
26,728 |
1,638 |
107 |
28,473 |
Allowance for credit losses |
40 |
42 |
143 |
225 |
Commercial mortgages, measured at amortized cost |
||||
AAA |
- |
- |
- |
- |
AA |
- |
- |
- |
- |
A |
148 |
48 |
- |
196 |
BBB |
- |
- |
- |
- |
BB |
- |
- |
- |
- |
B and lower |
145 |
35 |
- |
180 |
Total |
293 |
83 |
- |
376 |
Allowance for credit losses |
1 |
2 |
- |
3 |
Total carrying value, net of allowance |
292 |
81 |
- |
373 |
Residential mortgages, measured at amortized cost |
||||
Performing |
20,898 |
1,570 |
- |
22,468 |
Non-performing |
- |
- |
60 |
60 |
Total |
20,898 |
1,570 |
60 |
22,528 |
Allowance for credit losses |
4 |
2 |
2 |
8 |
Total carrying value, net of allowance |
20,894 |
1,568 |
58 |
22,520 |
Loans to Bank clients, measured at amortized cost |
||||
Performing |
2,387 |
44 |
- |
2,431 |
Non-performing |
- |
- |
8 |
8 |
Total |
2,387 |
44 |
8 |
2,439 |
Allowance for credit losses |
2 |
- |
1 |
3 |
Total carrying value, net of allowance |
2,385 |
44 |
7 |
2,436 |
Other invested assets, measured at FVOCI |
||||
Investment grade |
- |
- |
- |
- |
Non-investment grade |
360 |
- |
- |
360 |
Total carrying value |
360 |
- |
- |
360 |
Allowance for credit losses |
16 |
- |
- |
16 |
Other invested assets, measured at amortized cost |
||||
Investment grade |
3,791 |
- |
- |
3,791 |
Non-investment grade |
- |
- |
- |
- |
Total |
3,791 |
- |
- |
3,791 |
Allowance for credit losses |
1 |
- |
- |
1 |
Total carrying value, net of allowance |
3,790 |
- |
- |
3,790 |
Loan commitments |
||||
Allowance for credit losses |
9 |
1 |
2 |
12 |
Total carrying value, net of allowance |
$301,682 |
$8,118 |
$253 |
$310,053 |
93 |
2024 Annual Report |
Consolidated Financial Statements |
As at December 31, 2024 |
Stage 1 |
Stage 2 |
Stage 3 |
Total |
Balance, beginning of year |
$483 |
$209 |
$237 |
$929 |
Net re-measurement due to transfers |
4 |
(22) |
18 |
- |
Transfer to stage 1 |
12 |
(12) |
- |
- |
Transfer to stage 2 |
(7) |
7 |
- |
- |
Transfer to stage 3 |
(1) |
(17) |
18 |
- |
Net originations, purchases, disposals and repayments |
36 |
(8) |
(159) |
(131) |
Changes to risk, parameters, and models |
(107) |
21 |
81 |
(5) |
Foreign exchange and other adjustments |
18 |
13 |
4 |
35 |
Balance, end of year |
$434 |
$213 |
$181 |
$828 |
As at December 31, 2023 |
Stage 1 |
Stage 2 |
Stage 3 |
Total |
Balance, beginning of year |
$511 |
$141 |
$72 |
$724 |
Net re-measurement due to transfers |
4 |
6 |
(10) |
- |
Transfer to stage 1 |
12 |
(11) |
(1) |
- |
Transfer to stage 2 |
(6) |
28 |
(22) |
- |
Transfer to stage 3 |
(2) |
(11) |
13 |
- |
Net originations, purchases, disposals and repayments |
45 |
8 |
(23) |
30 |
Changes to risk, parameters, and models |
(71) |
48 |
233 |
210 |
Foreign exchange and other adjustments |
(6) |
6 |
(35) |
(35) |
Balance, end of year |
$483 |
$209 |
$237 |
$929 |
Base case scenario |
Upside scenario |
Downside scenario 1 |
Downside scenario 2 |
|||||||||
As at December 31, 2024 |
Current
quarter
|
Next 12
months
|
Ensuing 4
years
|
Next 12
months
|
Ensuing 4
years
|
Next 12
months
|
Ensuing 4
years
|
Next 12
months
|
Ensuing 4
years
|
|||
Canada |
||||||||||||
Gross Domestic Product (GDP), in
U.S. $ billions
|
$1,983 |
1.8% |
2.0% |
3.3% |
2.3% |
(2.0)% |
2.3% |
(3.9)% |
2.2% |
|||
Unemployment rate |
6.7% |
6.8% |
6.3% |
6.5% |
5.8% |
8.1% |
8.2% |
8.5% |
10.0% |
|||
NYMEX Light Sweet Crude Oil, in
U.S. dollars, per barrel
|
$76.0 |
$75.0 |
$72.0 |
$79.0 |
$74.0 |
$59.0 |
$66.0 |
$50.0 |
$61.0 |
|||
U.S. |
||||||||||||
Gross Domestic Product (GDP), in
U.S. $ billions
|
$23,534 |
2.1% |
2.2% |
3.6% |
2.3% |
(2.0)% |
2.7% |
(4.2)% |
2.5% |
|||
Unemployment rate |
4.2% |
4.1% |
4.0% |
3.3% |
3.3% |
7.3% |
6.1% |
7.8% |
8.1% |
|||
7-10 Year BBB U.S. Corporate Index |
5.5% |
6.1% |
6.1% |
5.9% |
6.2% |
5.4% |
5.6% |
6.0% |
5.4% |
|||
Japan |
||||||||||||
Gross Domestic Product (GDP), in
JPY billions
|
¥563,281 |
0.9% |
0.7% |
2.8% |
0.8% |
(3.6)% |
1.0% |
(7.1)% |
1.6% |
|||
Unemployment rate |
2.5% |
2.5% |
2.2% |
2.4% |
2.1% |
3.1% |
2.9% |
3.2% |
3.5% |
|||
Hong Kong |
||||||||||||
Unemployment rate |
3.0% |
2.9% |
3.0% |
2.5% |
2.7% |
4.1% |
3.8% |
4.6% |
4.6% |
|||
Hang Seng Index |
19,448 |
7.0% |
4.1% |
18.1% |
3.7% |
(19.7)% |
9.9% |
(37.0)% |
13.5% |
|||
China |
||||||||||||
Gross Domestic Product (GDP), in
CNY billions
|
¥114,931 |
4.0% |
4.1% |
6.5% |
4.3% |
(3.0)% |
4.6% |
(5.7)% |
3.9% |
|||
FTSE Xinhua A200 Index |
10,938 |
(0.6)% |
4.8% |
13.8% |
2.8% |
(31.1)% |
11.7% |
(40.5)% |
13.5% |
|||
As at December 31, |
2024 |
2023 |
Probability-weighted ECL |
$828 |
$929 |
Baseline ECL |
$629 |
$659 |
Difference - in amount |
$199 |
$270 |
Difference - in percentage |
24.03% |
29.06% |
As at December 31, 2024 |
Notional
amount(1)
|
Fair value |
Weighted
average
maturity
(in years)(2)
|
Single name CDS(3),(4) – Corporate debt |
|||
AA |
$23 |
$1 |
3 |
A |
68 |
1 |
3 |
BBB |
23 |
- |
2 |
Total single name CDS |
$114 |
$2 |
3 |
Total CDS protection sold |
$114 |
$2 |
3 |
As at December 31, 2023 |
Notional
amount(1)
|
Fair value |
Weighted
average
maturity
(in years)(2)
|
Single name CDS(3),(4) – Corporate debt |
|||
AA |
$23 |
$1 |
4 |
A |
94 |
2 |
3 |
BBB |
14 |
- |
1 |
Total single name CDS |
$131 |
$3 |
3 |
Total CDS protection sold |
$131 |
$3 |
3 |
95 |
2024 Annual Report |
Consolidated Financial Statements |
Related amounts not set off in the
Consolidated Statements of Financial
Position
|
||||||
As at December 31, 2024 |
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
amounts
including
financing
entity(3)
|
Net
amounts
excluding
financing
entity
|
|
Financial assets |
||||||
Derivative assets |
$9,048 |
$(6,633) |
$(1,986) |
$429 |
$429 |
|
Securities lending |
1,021 |
- |
(1,021) |
- |
- |
|
Reverse repurchase agreements |
1,594 |
(569) |
(1,025) |
- |
- |
|
Total financial assets |
$11,663 |
$(7,202) |
$(4,032) |
$429 |
$429 |
|
Financial liabilities |
||||||
Derivative liabilities |
$(15,026) |
$6,633 |
$8,305 |
$(88) |
$(15) |
|
Repurchase agreements |
(668) |
569 |
99 |
- |
- |
|
Total financial liabilities |
$(15,694) |
$7,202 |
$8,404 |
$(88) |
$(15) |
|
Related amounts not set off in the
Consolidated Statements of Financial
Position
|
||||||
As at December 31, 2023 |
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
amounts
including
financing
entity(3)
|
Net
amounts
excluding
financing
entity
|
|
Financial assets |
||||||
Derivative assets |
$9,044 |
$(6,516) |
$(2,374) |
$154 |
$154 |
|
Securities lending |
626 |
- |
(626) |
- |
- |
|
Reverse repurchase agreements |
466 |
(202) |
(264) |
- |
- |
|
Total financial assets |
$10,136 |
$(6,718) |
$(3,264) |
$154 |
$154 |
|
Financial liabilities |
||||||
Derivative liabilities |
$(12,600) |
$6,516 |
$5,958 |
$(126) |
$(57) |
|
Repurchase agreements |
(202) |
202 |
- |
- |
- |
|
Total financial liabilities |
$(12,802) |
$6,718 |
$5,958 |
$(126) |
$(57) |
|
As at December 31, 2024 |
Gross amounts
of financial
instruments
|
Amounts subject to
an enforceable
netting arrangement
|
Net amounts of
financial
instruments
|
|
Credit linked note(1) |
$1,392 |
$(1,392) |
$- |
|
Variable surplus note |
(1,392) |
1,392 |
- |
|
As at December 31, 2023 |
Gross amounts
of financial
instruments
|
Amounts subject to
an enforceable
netting arrangement
|
Net amounts of
financial
instruments
|
|
Credit linked note(1) |
$1,276 |
$(1,276) |
$- |
|
Variable surplus note |
(1,276) |
1,276 |
- |
|
As at December 31, |
2024 |
2023 |
Debt securities and private placements rated as investment grade BBB or higher(1) |
96% |
95% |
Government debt securities as a per cent of total debt securities |
40% |
38% |
Government private placements as a per cent of total private placements |
9% |
10% |
Highest exposure to a single non-government debt security or private placement issuer |
$1,121 |
$1,131 |
Largest single issuer as a per cent of the total equity portfolio |
2% |
2% |
Income producing commercial office properties (2024 – 35% of real estate, 2023 – 37%) |
$4,696 |
$4,829 |
Largest concentration of mortgages and real estate(2) – Ontario Canada (2024 – 28%, 2023 – 29%) |
$19,052 |
$19,003 |
2024 |
2023 |
||||
As at December 31, |
Carrying
value
|
% of total |
Carrying
value
|
% of total |
|
Government and agency |
$88,376 |
34% |
$84,739 |
33% |
|
Utilities |
45,812 |
18% |
45,952 |
18% |
|
Financial |
38,656 |
15% |
39,069 |
15% |
|
Consumer |
31,529 |
12% |
31,181 |
12% |
|
Energy |
15,840 |
6% |
15,782 |
6% |
|
Industrial |
24,233 |
9% |
24,209 |
9% |
|
Other |
15,843 |
6% |
16,823 |
7% |
|
Total |
$260,289 |
100% |
$257,755 |
100% |
|
97 |
2024 Annual Report |
Consolidated Financial Statements |
As at December 31, 2024 |
Insurance
contract
liabilities
|
Investment
contract
liabilities
|
Reinsurance
assets
|
Net liabilities |
U.S. and Canada |
$342,146 |
$305,563 |
$(52,055) |
$595,654 |
Asia and Other |
180,698 |
17,378 |
(6,294) |
191,782 |
Total |
$522,844 |
$322,941 |
$(58,349) |
$787,436 |
As at December 31, 2023 |
Insurance
contract
liabilities
|
Investment
contract
liabilities
|
Reinsurance
assets
|
Net liabilities |
U.S. and Canada |
$327,458 |
$260,046 |
$(39,080) |
$548,424 |
Asia and Other |
154,536 |
15,171 |
(1,169) |
168,538 |
Total |
$481,994 |
$275,217 |
$(40,249) |
$716,962 |
As at December 31, |
|||||
Issue date |
Maturity date |
Par value |
2024 |
2023 |
|
3.050% Senior notes(1),(2) |
August 27, 2020 |
August 27, 2060 |
US$1,155 |
$1,659 |
$1,519 |
5.375% Senior notes(1),(3) |
March 4, 2016 |
March 4, 2046 |
US$750 |
1,067 |
977 |
3.703% Senior notes(1),(4) |
March 16, 2022 |
March 16, 2032 |
US$750 |
1,074 |
983 |
2.396% Senior notes(1),(5) |
June 1, 2020 |
June 1, 2027 |
US$200 |
287 |
263 |
2.484% Senior notes(1),(5) |
May 19, 2020 |
May 19, 2027 |
US$500 |
717 |
657 |
3.527% Senior notes(1),(3) |
December 2, 2016 |
December 2, 2026 |
US$270 |
388 |
356 |
4.150% Senior notes(1),(3) |
March 4, 2016 |
March 4, 2026 |
US$1,000 |
1,437 |
1,316 |
Total |
$6,629 |
$6,071 |
|||
As at December 31, |
Less than
1 year
|
1 to 3
years
|
3 to 5
years
|
Over 5
years
|
Total |
2024 |
$- |
$2,829 |
$- |
$3,800 |
$6,629 |
2023 |
- |
1,672 |
920 |
3,479 |
6,071 |
99 |
2024 Annual Report |
Consolidated Financial Statements |
As at December 31, |
||||||
Issuance date |
Earliest par
redemption date
|
Maturity date |
Par value |
2024 |
2023 |
|
JHFC Subordinated notes(1),(2) |
December 14, 2006 |
n/a |
December 15, 2036 |
$650 |
$648 |
$647 |
2.818% MFC Subordinated debentures(1),(3) |
May 12, 2020 |
May 13, 2030 |
May 13, 2035 |
$1,000 |
997 |
996 |
4.064% MFC Subordinated debentures(4) |
December 6, 2024 |
December 6, 2029 |
December 6, 2034 |
$1,000 |
995 |
- |
4.275% MFC Subordinated notes(5),(6) |
June 19, 2024 |
June 19, 2029 |
June 19, 2034 |
S$500 |
524 |
- |
5.054% MFC Subordinated debentures(7) |
February 23, 2024 |
February 23, 2029 |
February 23, 2034 |
$1,100 |
1,095 |
- |
5.409% MFC Subordinated debentures(8) |
March 10, 2023 |
March 10, 2028 |
March 10, 2033 |
$1,200 |
1,196 |
1,195 |
4.061% MFC Subordinated notes(1),(9),(10) |
February 24, 2017 |
February 24, 2027 |
February 24, 2032 |
US$750 |
1,077 |
987 |
2.237% MFC Subordinated debentures(1),(11) |
May 12, 2020 |
May 12, 2025 |
May 12, 2030 |
$1,000 |
1,000 |
999 |
3.00% MFC Subordinated notes(1),(12),(13) |
November 21, 2017 |
November 21, 2024 |
November 21, 2029 |
S$500 |
- |
499 |
3.049% MFC Subordinated debentures(1)(13) |
August 18, 2017 |
August 20, 2024 |
August 20, 2029 |
$750 |
- |
750 |
7.375% JHUSA Surplus notes(13) |
February 25, 1994 |
n/a |
February 15, 2024 |
US$450 |
- |
594 |
Total |
$7,532 |
$6,667 |
||||
Annual dividend /
distribution rate(1)
|
Earliest redemption
date(2),(3)
|
Number of
shares
(in millions)
|
Face
amount
|
Net amount(4) as at December 31, |
||||
Issue date |
2024 |
2023 |
||||||
Preferred shares |
||||||||
Class A preferred shares |
||||||||
Series 2 |
February 18, 2005 |
4.650 % |
n/a |
14 |
$350 |
$344 |
$344 |
|
Series 3 |
January 3, 2006 |
4.500 % |
n/a |
12 |
300 |
294 |
294 |
|
Class 1 preferred shares |
||||||||
Series 3(5),(6) |
March 11, 2011 |
2.348 % |
June 19, 2026 |
7 |
163 |
160 |
160 |
|
Series 4(7) |
June 20, 2016 |
floating |
June 19, 2026 |
1 |
37 |
36 |
36 |
|
Series 9(5),(6) |
May 24, 2012 |
5.978 % |
September 19, 2027 |
10 |
250 |
244 |
244 |
|
Series 11(5),(6) |
December 4, 2012 |
6.159 % |
March 19, 2028 |
8 |
200 |
196 |
196 |
|
Series 13(5),(6) |
June 21, 2013 |
6.350 % |
September 19, 2028 |
8 |
200 |
196 |
196 |
|
Series 15(5),(6),(8) |
February 25, 2014 |
5.775 % |
June 19, 2029 |
8 |
200 |
195 |
195 |
|
Series 17(5),(6),(9) |
August 15, 2014 |
5.542 % |
December 19, 2029 |
14 |
350 |
343 |
343 |
|
Series 19(5),(6) |
December 3, 2014 |
3.675 % |
March 19, 2025 |
10 |
250 |
246 |
246 |
|
Series 25(5),(6) |
February 20, 2018 |
5.942 % |
June 19, 2028 |
10 |
250 |
245 |
245 |
|
Other equity instruments |
||||||||
Limited recourse capital
notes (LRCN)(10)
|
||||||||
Series 1(11) |
February 19, 2021 |
3.375 % |
May 19, 2026 |
n/a |
2,000 |
1,982 |
1,982 |
|
Series 2(11) |
November 12, 2021 |
4.100 % |
February 19, 2027 |
n/a |
1,200 |
1,189 |
1,189 |
|
Series 3(11) |
June 16, 2022 |
7.117 % |
June 19, 2027 |
n/a |
1,000 |
990 |
990 |
|
Total |
102 |
$6,750 |
$6,660 |
$6,660 |
||||
101 |
2024 Annual Report |
Consolidated Financial Statements |
For the years ended December 31, |
2024 |
2023 |
|||
Number of
shares
(in millions)
|
Amount |
Number of
shares
(in millions)
|
Amount |
||
Balance, beginning of year |
1,806 |
$21,527 |
1,865 |
$22,178 |
|
Repurchased for cancellation |
(83) |
(989) |
(63) |
(745) |
|
Issued on exercise of stock options and deferred share units |
6 |
143 |
4 |
94 |
|
Balance, end of year |
1,729 |
$20,681 |
1,806 |
$21,527 |
|
For the years ended December 31, |
2024 |
2023 |
Basic earnings per common share |
$2.85 |
$2.62 |
Diluted earnings per common share |
2.84 |
2.61 |
For the years ended December 31, |
2024 |
2023 |
Weighted average number of common shares (in millions) |
1,779 |
1,834 |
Dilutive stock-based awards(1) (in millions) |
6 |
4 |
Weighted average number of diluted common shares (in millions) |
1,785 |
1,838 |
Class A Shares Series 2 - $0.290630 per share |
Class 1 Shares Series 13 - $0.396875 per share |
Class A Shares Series 3 - $0.281250 per share |
Class 1 Shares Series 15 - $0.360938 per share |
Class 1 Shares Series 3 - $0.146750 per share |
Class 1 Shares Series 17 - $0.346375 per share |
Class 1 Shares Series 4 - $0.301500 per share |
Class 1 Shares Series 19 - $0.229688 per share |
Class 1 Shares Series 9 - $0.373625 per share |
Class 1 Shares Series 25 - $0.371375 per share |
Class 1 Shares Series 11 - $0.384938 per share |
As at December 31, |
2024 |
2023 |
Total equity |
$52,960 |
$48,727 |
Exclude AOCI gain / (loss) on cash flow hedges |
119 |
26 |
Total equity excluding AOCI on cash flow hedges |
52,841 |
48,701 |
Post-tax CSM |
20,826 |
18,503 |
Qualifying capital instruments |
7,532 |
6,667 |
Consolidated capital |
$81,199 |
$73,871 |
103 |
2024 Annual Report |
Consolidated Financial Statements |
For the year ended December 31, 2024 |
Global WAM |
Asia,
Canada,
U.S., and
Corporate
and Other
|
Total |
Investment management and other related fees |
$3,612 |
$(489) |
$3,123 |
Transaction processing, administration and service fees |
2,908 |
298 |
3,206 |
Distribution fees and other |
918 |
46 |
964 |
Total included in other revenue |
7,438 |
(145) |
7,293 |
Revenue from non-service lines |
1 |
294 |
295 |
Total other revenue |
$7,439 |
$149 |
$7,588 |
Real estate management services included in net investment income |
$- |
$317 |
$317 |
For the year ended December 31, 2023 |
Global WAM |
Asia,
Canada,
U.S., and
Corporate
and Other
|
Total |
Investment management and other related fees |
$3,298 |
$(412) |
$2,886 |
Transaction processing, administration and service fees |
2,566 |
269 |
2,835 |
Distribution fees and other |
842 |
54 |
896 |
Total included in other revenue |
6,706 |
(89) |
6,617 |
Revenue from non-service lines |
3 |
126 |
129 |
Total other revenue |
$6,709 |
$37 |
$6,746 |
Real estate management services included in net investment income |
$- |
$303 |
$303 |
For the years ended December 31, |
2024 |
2023 |
|||
Number of
options
(in millions)
|
Weighted
average
exercise price
|
Number of
options
(in millions)
|
Weighted
average
exercise price
|
||
Outstanding, January 1 |
16 |
$22.73 |
20 |
$22.42 |
|
Forfeited |
- |
- |
- |
24.27 |
|
Exercised |
(5) |
21.56 |
(4) |
21.02 |
|
Outstanding, December 31 |
11 |
$23.35 |
16 |
$22.73 |
|
Exercisable, December 31 |
6 |
$22.66 |
9 |
$21.99 |
|
Options outstanding |
Options exercisable |
||||||
For the year ended December 31, 2024 |
Number of
options
(in millions)
|
Weighted
average
exercise price
|
Weighted
average
remaining
contractual
life (in years)
|
Number of
options
(in millions)
|
Weighted
average
exercise price
|
Weighted
average
remaining
contractual
life (in years)
|
|
$17.59 - $20.99 |
1 |
$17.59 |
1.15 |
1 |
$17.59 |
1.15 |
|
$21.00 - $24.73 |
10 |
$23.93 |
4.04 |
5 |
$23.58 |
3.21 |
|
Total |
11 |
$23.35 |
3.78 |
6 |
$22.66 |
2.89 |
|
105 |
2024 Annual Report |
Consolidated Financial Statements |
For the years ended December 31, |
||
Number of DSUs (in thousands) |
2024 |
2023 |
Outstanding, January 1 |
1,963 |
2,373 |
Issued |
193 |
206 |
Reinvested |
86 |
131 |
Redeemed |
(191) |
(744) |
Forfeitures and cancellations |
(1) |
(3) |
Outstanding, December 31 |
2,050 |
1,963 |
107 |
2024 Annual Report |
Consolidated Financial Statements |
Pension plans |
Retiree welfare plans |
||||
For the years ended December 31, |
2024 |
2023 |
2024 |
2023 |
|
Changes in defined benefit obligation: |
|||||
Opening balance, January 1 |
$3,789 |
$3,794 |
$450 |
$466 |
|
Current service cost |
44 |
41 |
- |
- |
|
Past service cost – amendment |
- |
- |
- |
- |
|
Interest cost |
176 |
184 |
21 |
22 |
|
Plan participants’ contributions |
- |
- |
2 |
3 |
|
Actuarial losses (gains) due to: |
|||||
Experience |
2 |
11 |
(16) |
(10) |
|
Demographic assumption changes |
- |
14 |
- |
1 |
|
Economic assumption changes |
(101) |
119 |
(19) |
16 |
|
Benefits paid |
(303) |
(308) |
(40) |
(38) |
|
Impact of changes in foreign exchange rates |
219 |
(66) |
30 |
(10) |
|
Defined benefit obligation, December 31 |
$3,826 |
$3,789 |
$428 |
$450 |
|
Pension plans |
Retiree welfare plans |
||||
For the years ended December 31, |
2024 |
2023 |
2024 |
2023 |
|
Changes in plan assets: |
|||||
Fair value of plan assets, opening balance, January 1 |
$3,706 |
$3,722 |
$526 |
$523 |
|
Interest income |
174 |
181 |
26 |
25 |
|
Return on plan assets (excluding interest income) |
(31) |
129 |
(19) |
17 |
|
Employer contributions |
57 |
59 |
12 |
12 |
|
Plan participants’ contributions |
- |
- |
2 |
3 |
|
Benefits paid |
(303) |
(308) |
(40) |
(38) |
|
Administration costs |
(8) |
(10) |
(2) |
(1) |
|
Impact of changes in foreign exchange rates |
225 |
(67) |
48 |
(15) |
|
Fair value of plan assets, December 31 |
$3,820 |
$3,706 |
$553 |
$526 |
|
Pension plans |
Retiree welfare plans |
||||
As at December 31, |
2024 |
2023 |
2024 |
2023 |
|
Development of net defined benefit liability |
|||||
Defined benefit obligation |
$3,826 |
$3,789 |
$428 |
$450 |
|
Fair value of plan assets |
3,820 |
3,706 |
553 |
526 |
|
Deficit (surplus) |
6 |
83 |
(125) |
(76) |
|
Effect of asset limit(1) |
44 |
41 |
- |
- |
|
Deficit (surplus) and net defined benefit liability (asset) |
50 |
124 |
(125) |
(76) |
|
Deficit (surplus) is comprised of: |
|||||
Funded or partially funded plans |
(483) |
(422) |
(221) |
(190) |
|
Unfunded plans |
533 |
546 |
96 |
114 |
|
Deficit (surplus) and net defined benefit liability (asset) |
$50 |
$124 |
$(125) |
$(76) |
|
U.S. plans |
Canadian plans |
||||||||
Pension plans |
Retiree welfare plans |
Pension plans |
Retiree welfare plans |
||||||
As at December 31, |
2024 |
2023 |
2024 |
2023 |
2024 |
2023 |
2024 |
2023 |
|
Active members |
$578 |
$526 |
$8 |
$9 |
$106 |
$116 |
$- |
$- |
|
Inactive and retired members |
1,922 |
1,907 |
324 |
327 |
1,220 |
1,240 |
96 |
114 |
|
Total |
$2,500 |
$2,433 |
$332 |
$336 |
$1,326 |
$1,356 |
$96 |
$114 |
|
U.S. plans(1) |
Canadian plans(2) |
||||||||
Pension plans |
Retiree welfare plans |
Pension plans |
Retiree welfare plans |
||||||
As at December 31, 2024 |
Fair value |
% of total |
Fair value |
% of total |
Fair value |
% of total |
Fair value |
% of total |
|
Cash and cash equivalents |
$35 |
1% |
$23 |
4% |
$11 |
1% |
$- |
-% |
|
Public equity securities(3) |
346 |
14% |
41 |
7% |
205 |
17% |
- |
-% |
|
Public debt securities |
1,513 |
57% |
476 |
87% |
968 |
82% |
- |
-% |
|
Other investments(4) |
741 |
28% |
13 |
2% |
1 |
-% |
- |
-% |
|
Total |
$2,635 |
100% |
$553 |
100% |
$1,185 |
100% |
$- |
-% |
|
U.S. plans(1) |
Canadian plans(2) |
||||||||
Pension plans |
Retiree welfare plans |
Pension plans |
Retiree welfare plans |
||||||
As at December 31, 2023 |
Fair value |
% of total |
Fair value |
% of total |
Fair value |
% of total |
Fair value |
% of total |
|
Cash and cash equivalents |
$28 |
1% |
$25 |
5% |
$15 |
1% |
$- |
-% |
|
Public equity securities(3) |
315 |
13% |
39 |
7% |
195 |
17% |
- |
-% |
|
Public debt securities |
1,437 |
57% |
448 |
85% |
974 |
82% |
- |
-% |
|
Other investments(4) |
741 |
29% |
14 |
3% |
1 |
-% |
- |
-% |
|
Total |
$2,521 |
100% |
$526 |
100% |
$1,185 |
100% |
$- |
-% |
|
Pension plans |
Retiree welfare plans |
||||
For the years ended December 31, |
2024 |
2023 |
2024 |
2023 |
|
Defined benefit current service cost(1) |
$44 |
$41 |
$- |
$- |
|
Defined benefit administrative expenses |
8 |
10 |
2 |
1 |
|
Past service cost – plan amendments and curtailments |
- |
- |
- |
- |
|
Service cost |
52 |
51 |
2 |
1 |
|
Interest on net defined benefit (asset) liability |
4 |
5 |
(5) |
(3) |
|
Defined benefit cost |
56 |
56 |
(3) |
(2) |
|
Defined contribution cost |
97 |
93 |
- |
- |
|
Net benefit cost |
$153 |
$149 |
$(3) |
$(2) |
|
109 |
2024 Annual Report |
Consolidated Financial Statements |
Pension plans |
Retiree welfare plans |
||||
For the years ended December 31, |
2024 |
2023 |
2024 |
2023 |
|
Actuarial gains (losses) on defined benefit obligations due to: |
|||||
Experience |
$(2) |
$(11) |
$16 |
$10 |
|
Demographic assumption changes |
- |
(14) |
- |
(1) |
|
Economic assumption changes |
101 |
(119) |
19 |
(16) |
|
Return on plan assets (excluding interest income) |
(31) |
129 |
(19) |
17 |
|
Change in effect of asset limit (excluding interest) |
(1) |
10 |
- |
- |
|
Total re-measurement effects |
$67 |
$(5) |
$16 |
$10 |
|
U.S. Plans |
Canadian Plans |
||||||||
Pension plans |
Retiree welfare plans |
Pension plans |
Retiree welfare plans |
||||||
For the years ended December 31, |
2024 |
2023 |
2024 |
2023 |
2024 |
2023 |
2024 |
2023 |
|
To determine the defined benefit
obligation at end of year(1):
|
|||||||||
Discount rate |
5.5% |
4.8% |
5.4% |
4.8% |
4.6% |
4.6% |
4.7% |
4.7% |
|
Initial health care cost trend rate(2) |
n/a |
n/a |
8.8% |
9.0% |
n/a |
n/a |
3.9% |
3.9% |
|
To determine the net defined
benefit cost for the year(1):
|
|||||||||
Discount rate |
4.8% |
5.0% |
4.8% |
5.0% |
4.6% |
5.3% |
4.7% |
5.3% |
|
Initial health care cost trend rate(2) |
n/a |
n/a |
9.0% |
7.8% |
n/a |
n/a |
3.9% |
5.3% |
|
U.S. |
Canada |
||||
As at December 31, |
2024 |
2023 |
2024 |
2023 |
|
Life expectancy (in years) for those currently age 65 |
|||||
Males |
22.2 |
22.2 |
24.4 |
24.3 |
|
Females |
23.7 |
23.7 |
26.2 |
26.2 |
|
Life expectancy (in years) at age 65 for those currently age 45 |
|||||
Males |
23.6 |
23.6 |
25.3 |
25.3 |
|
Females |
25.1 |
25.0 |
27.1 |
27.1 |
|
Pension plans |
Retiree welfare plans |
||||
As at December 31, |
2024 |
2023 |
2024 |
2023 |
|
Discount rate: |
|||||
Impact of a 1% increase |
$(260) |
$(274) |
$(34) |
$(38) |
|
Impact of a 1% decrease |
305 |
316 |
40 |
44 |
|
Health care cost trend rate: |
|||||
Impact of a 1% increase |
n/a |
n/a |
9 |
11 |
|
Impact of a 1% decrease |
n/a |
n/a |
(8) |
(10) |
|
Mortality rates(1): |
|||||
Impact of a 10% decrease |
89 |
89 |
9 |
6 |
|
Pension plans |
Retiree welfare plans |
||||
As at December 31, |
2024 |
2023 |
2024 |
2023 |
|
U.S. plans |
8.0 |
8.4 |
7.7 |
8.2 |
|
Canadian plans |
10.1 |
9.9 |
10.9 |
11.1 |
|
Pension plans |
Retiree welfare plans |
||||
For the years ended December 31, |
2024 |
2023 |
2024 |
2023 |
|
Defined benefit plans |
$57 |
$59 |
$12 |
$12 |
|
Defined contribution plans |
97 |
93 |
- |
- |
|
Total |
$154 |
$152 |
$12 |
$12 |
|
For the years ended December 31, |
2024 |
2023 |
Current tax |
||
Current year |
$655 |
$568 |
Global Minimum Taxes |
231 |
- |
Adjustments related to prior years |
15 |
(193) |
Total current tax |
901 |
375 |
Deferred tax |
||
Origination and reversal of temporary differences |
424 |
489 |
Adjustments related to prior years |
(113) |
(19) |
Total deferred tax |
311 |
470 |
Income tax expenses (recoveries) |
$1,212 |
$845 |
111 |
2024 Annual Report |
Consolidated Financial Statements |
For the years ended December 31, |
2024 |
2023 |
Recognized in other comprehensive income |
||
Current income tax expenses (recoveries) |
$174 |
$320 |
Deferred income tax expenses (recoveries) |
885 |
(326) |
Total recognized in other comprehensive income |
$1,059 |
$(6) |
Recognized in equity, other than other comprehensive income |
||
Current income tax expenses (recoveries) |
$4 |
$5 |
Deferred income tax expenses (recoveries) |
(5) |
(4) |
Total income tax recognized directly in equity |
$(1) |
$1 |
For the years ended December 31, |
2024 |
2023 |
Net income (loss) before income taxes |
$7,090 |
$6,452 |
Income tax expenses (recoveries) at Canadian statutory tax rate |
$1,971 |
$1,794 |
Increase (decrease) in income taxes due to: |
||
Tax-exempt investment income |
(306) |
(199) |
Differences in tax rate on income not subject to tax in Canada |
(938) |
(770) |
Adjustments to taxes related to prior years |
(98) |
(212) |
Tax losses and temporary differences not recognized as deferred taxes |
94 |
(38) |
Global Minimum Taxes |
231 |
- |
Other differences |
258 |
270 |
Income tax expenses (recoveries) |
$1,212 |
$845 |
As at December 31, |
2024 |
2023 |
Deferred tax assets |
$5,884 |
$6,739 |
Deferred tax liabilities |
(1,890) |
(1,697) |
Net deferred tax assets (liabilities) |
$3,994 |
$5,042 |
For the year ended December 31, |
Balance,
January 1,
2024
|
Acquired in
business
combination
|
Disposals |
Recognized
in income
|
Recognized in
other
comprehensive
income
|
Recognized in
equity
|
Translation
and other
|
Balance,
December
31, 2024
|
Loss carryforwards |
$670 |
$- |
$- |
$180 |
$- |
$(13) |
$14 |
$851 |
Actuarial liabilities |
5,813 |
- |
- |
(972) |
(1,059) |
(1) |
383 |
4,164 |
Pensions and post-employment
benefits
|
171 |
- |
- |
1 |
(20) |
- |
1 |
153 |
Tax credits |
122 |
- |
- |
109 |
- |
- |
7 |
238 |
Accrued interest |
1 |
- |
- |
4 |
- |
- |
- |
5 |
Real estate |
(1,135) |
- |
- |
214 |
1 |
- |
(50) |
(970) |
Lease liability |
38 |
- |
- |
7 |
- |
1 |
(1) |
45 |
Right of use asset and sublease
receivable
|
(34) |
- |
- |
(8) |
- |
(1) |
- |
(43) |
Securities and other investments |
86 |
- |
- |
276 |
197 |
2 |
(171) |
390 |
Sale of investments |
(18) |
- |
- |
10 |
- |
- |
- |
(8) |
Goodwill and intangible assets |
(822) |
- |
- |
24 |
- |
- |
(31) |
(829) |
Other |
150 |
4 |
- |
(156) |
(4) |
17 |
(13) |
(2) |
Total |
$5,042 |
$4 |
$- |
$(311) |
$(885) |
$5 |
$139 |
$3,994 |
For the year ended December 31, |
Balance,
January 1,
2023
|
Acquired in
business
combination
|
Disposals |
Recognized
in income
|
Recognized in
other
comprehensive
income
|
Recognized in
equity
|
Translation
and other
|
Balance,
December
31, 2023
|
Loss carryforwards |
$701 |
$- |
$- |
$(18) |
$- |
$(8) |
$(5) |
$670 |
Actuarial liabilities |
4,507 |
- |
- |
188 |
1,198 |
- |
(80) |
5,813 |
Pensions and post-employment
benefits
|
142 |
- |
- |
4 |
26 |
- |
(1) |
171 |
Tax credits |
109 |
- |
- |
15 |
- |
- |
(2) |
122 |
Accrued interest |
1 |
- |
- |
- |
- |
- |
- |
1 |
Real estate |
(1,317) |
- |
- |
168 |
- |
- |
14 |
(1,135) |
Lease liability |
47 |
- |
- |
(7) |
- |
- |
(2) |
38 |
Right of use asset and sublease
receivable
|
(41) |
- |
- |
7 |
- |
- |
- |
(34) |
Securities and other investments |
1,560 |
- |
- |
(293) |
(1,245) |
2 |
62 |
86 |
Sale of investments |
(30) |
- |
- |
12 |
- |
- |
- |
(18) |
Goodwill and intangible assets |
(828) |
- |
- |
(12) |
- |
- |
18 |
(822) |
Other |
321 |
- |
- |
(534) |
347 |
10 |
6 |
150 |
Total |
$5,172 |
$- |
$- |
$(470) |
$326 |
$4 |
$10 |
$5,042 |
113 |
2024 Annual Report |
Consolidated Financial Statements |
Company’s investment(1) |
Company’s maximum
exposure to loss(2)
|
||||
As at December 31, |
2024 |
2023 |
2024 |
2023 |
|
Leveraged leases(3) |
$4,300 |
$3,790 |
$4,300 |
$3,790 |
|
Infrastructure entities(4) |
3,282 |
2,468 |
4,174 |
3,035 |
|
Timberland entities(5) |
759 |
811 |
759 |
811 |
|
Real estate entities(6) |
601 |
676 |
601 |
676 |
|
Total |
$8,942 |
$7,745 |
$9,834 |
$8,312 |
|
Company’s interests(1) |
||
As at December 31, |
2024 |
2023 |
Manulife Finance (Delaware), L.P.(2) |
$710 |
$709 |
Total |
$710 |
$709 |
2024 |
2023 |
|||||
As at December 31, |
CMBS |
RMBS |
ABS |
Total |
Total |
|
AAA |
$309 |
$2 |
$870 |
$1,181 |
$1,375 |
|
AA |
- |
- |
319 |
319 |
227 |
|
A |
- |
3 |
375 |
378 |
438 |
|
BBB |
- |
- |
41 |
41 |
107 |
|
BB and below |
- |
- |
53 |
53 |
7 |
|
Total exposure |
$309 |
$5 |
$1,658 |
$1,972 |
$2,154 |
|
115 |
2024 Annual Report |
Consolidated Financial Statements |
For the year ended December 31, 2024 |
MFC
(Guarantor)
|
Subsidiaries
on a combined
basis
|
Consolidation
adjustments
|
Total
consolidated
amounts
|
MFLP |
|
Insurance service result |
$- |
$4,001 |
$- |
$4,001 |
$- |
|
Investment result |
871 |
4,329 |
(1,679) |
3,521 |
52 |
|
Other revenue |
(34) |
7,620 |
2 |
7,588 |
20 |
|
Net income (loss) attributed to shareholders and other equity
holders
|
5,385 |
4,910 |
(4,910) |
5,385 |
26 |
For the year ended December 31, 2023 |
MFC
(Guarantor)
|
Subsidiaries
on a combined
basis
|
Consolidation
adjustments
|
Total
consolidated
amounts
|
MFLP |
|
Insurance service result |
$- |
$3,977 |
$- |
$3,977 |
$- |
|
Investment result |
638 |
3,646 |
(1,326) |
2,958 |
51 |
|
Other revenue |
14 |
6,736 |
(4) |
6,746 |
(7) |
|
Net income (loss) attributed to shareholders and other equity
holders
|
5,103 |
4,785 |
(4,785) |
5,103 |
1 |
As at December 31, 2024 |
MFC
(Guarantor)
|
Subsidiaries
on a combined
basis
|
Consolidation
adjustments
|
Total
consolidated
amounts
|
MFLP |
|
Invested assets |
$126 |
$442,371 |
$- |
$442,497 |
$16 |
|
Insurance contract assets |
- |
102 |
- |
102 |
- |
|
Reinsurance contract held assets |
- |
59,015 |
- |
59,015 |
- |
|
Total other assets |
65,898 |
46,450 |
(71,132) |
41,216 |
995 |
|
Segregated funds net assets |
- |
435,988 |
- |
435,988 |
- |
|
Insurance contract liabilities, excluding those for account of segregated
fund holders
|
- |
396,401 |
- |
396,401 |
- |
|
Reinsurance contract held liabilities |
- |
2,669 |
- |
2,669 |
- |
|
Investment contract liabilities |
- |
13,498 |
- |
13,498 |
- |
|
Total other liabilities |
15,052 |
63,825 |
(1,575) |
77,302 |
726 |
|
Insurance contract liabilities for account of segregated fund holders |
- |
126,545 |
- |
126,545 |
- |
|
Investment contract liabilities for account of segregated fund holders |
- |
309,443 |
- |
309,443 |
- |
As at December 31, 2023 |
MFC
(Guarantor)
|
Subsidiaries
on a combined
basis
|
Consolidation
adjustments
|
Total
consolidated
amounts
|
MFLP |
|
Invested assets |
$86 |
$417,124 |
$- |
$417,210 |
$9 |
|
Insurance contract assets |
- |
145 |
- |
145 |
- |
|
Reinsurance contract held assets |
- |
42,651 |
- |
42,651 |
- |
|
Total other assets |
59,023 |
42,411 |
(63,410) |
38,024 |
969 |
|
Segregated funds net assets |
- |
377,544 |
- |
377,544 |
- |
|
Insurance contract liabilities, excluding those for account of segregated
fund holders
|
- |
367,996 |
- |
367,996 |
- |
|
Reinsurance contract held liabilities |
- |
2,831 |
- |
2,831 |
- |
|
Investment contract liabilities |
- |
11,816 |
- |
11,816 |
- |
|
Total other liabilities |
12,070 |
55,129 |
(539) |
66,660 |
718 |
|
Insurance contract liabilities for account of segregated fund holders |
- |
114,143 |
- |
114,143 |
- |
|
Investment contract liabilities for account of segregated fund holders |
- |
263,401 |
- |
263,401 |
- |
117 |
2024 Annual Report |
Consolidated Financial Statements |
2024 |
2023 |
||||
As at December 31, |
Debt securities |
Other |
Debt securities |
Other |
|
In respect of: |
|||||
Derivatives |
$14,517 |
$25 |
$10,431 |
$26 |
|
Secured borrowings(1) |
- |
2,216 |
- |
2,220 |
|
Regulatory requirements |
303 |
91 |
307 |
74 |
|
Repurchase agreements |
658 |
- |
201 |
- |
|
Mortgages on ALDA properties |
- |
284 |
- |
278 |
|
Manulife Bank securitized mortgages(2) |
- |
7,603 |
- |
6,990 |
|
Non-registered retirement plans in trust |
- |
286 |
- |
298 |
|
Other |
- |
289 |
- |
283 |
|
Total |
$15,478 |
$10,794 |
$10,939 |
$10,169 |
|
For the year ended December 31, 2024 |
Asia |
Canada |
U.S. |
Global WAM |
Corporate
and Other
|
Total |
Insurance service result |
||||||
Life, health and property and casualty insurance |
$2,228 |
$1,081 |
$241 |
$- |
$164 |
$3,714 |
Annuities and pensions |
(68) |
239 |
116 |
- |
- |
287 |
Total insurance service result |
2,160 |
1,320 |
357 |
- |
164 |
4,001 |
Net investment income (loss) |
7,987 |
5,169 |
4,962 |
(655) |
1,648 |
19,111 |
Insurance finance income (expenses) |
||||||
Life, health and property and casualty insurance |
(5,495) |
(3,846) |
(5,450) |
- |
43 |
(14,748) |
Annuities and pensions |
(1,839) |
196 |
172 |
- |
- |
(1,471) |
Total insurance finance income (expenses) |
(7,334) |
(3,650) |
(5,278) |
- |
43 |
(16,219) |
Reinsurance finance income (expenses) |
||||||
Life, health and property and casualty insurance |
(65) |
347 |
705 |
- |
(2) |
985 |
Annuities and pensions |
669 |
(1) |
(520) |
- |
- |
148 |
Total reinsurance finance income (expenses) |
604 |
346 |
185 |
- |
(2) |
1,133 |
Decrease (increase) in investment contract liabilities |
(9) |
(76) |
(87) |
(327) |
(5) |
(504) |
Net segregated fund investment result |
- |
- |
- |
- |
- |
- |
Total investment result |
1,248 |
1,789 |
(218) |
(982) |
1,684 |
3,521 |
Other revenue |
155 |
294 |
137 |
7,439 |
(437) |
7,588 |
Other expenses |
(338) |
(677) |
(131) |
(4,703) |
(490) |
(6,339) |
Interest expenses |
(28) |
(1,047) |
(13) |
(7) |
(586) |
(1,681) |
Net income (loss) before income taxes |
3,197 |
1,679 |
132 |
1,747 |
335 |
7,090 |
Income tax (expenses) recoveries |
(460) |
(353) |
3 |
(148) |
(254) |
(1,212) |
Net income (loss) |
2,737 |
1,326 |
135 |
1,599 |
81 |
5,878 |
Less net income (loss) attributed to: |
||||||
Non-controlling interests |
241 |
- |
- |
2 |
4 |
247 |
Participating policyholders |
141 |
105 |
- |
- |
- |
246 |
Net income (loss) attributed to shareholders and other
equity holders
|
$2,355 |
$1,221 |
$135 |
$1,597 |
$77 |
$5,385 |
Total assets |
$209,623 |
$158,803 |
$263,736 |
$305,968 |
$40,688 |
$978,818 |
For the year ended December 31, 2023 |
Asia |
Canada |
U.S. |
Global WAM |
Corporate
and Other
|
Total |
Insurance service result |
||||||
Life, health and property and casualty insurance |
$2,070 |
$995 |
$526 |
$- |
$236 |
$3,827 |
Annuities and pensions |
(129) |
198 |
81 |
- |
- |
150 |
Total insurance service result |
1,941 |
1,193 |
607 |
- |
236 |
3,977 |
Net investment income (loss) |
7,057 |
5,048 |
5,236 |
(771) |
1,451 |
18,021 |
Insurance finance income (expenses) |
||||||
Life, health and property and casualty insurance |
(4,970) |
(3,288) |
(4,815) |
- |
723 |
(12,350) |
Annuities and pensions |
(1,466) |
(27) |
(51) |
- |
- |
(1,544) |
Total insurance finance income (expenses) |
(6,436) |
(3,315) |
(4,866) |
- |
723 |
(13,894) |
Reinsurance finance income (expenses) |
||||||
Life, health and property and casualty insurance |
(106) |
58 |
385 |
- |
(697) |
(360) |
Annuities and pensions |
1 |
(1) |
(374) |
- |
- |
(374) |
Total reinsurance finance income (expenses) |
(105) |
57 |
11 |
- |
(697) |
(734) |
Decrease (increase) in investment contract liabilities |
(38) |
(73) |
(148) |
(175) |
(1) |
(435) |
Net segregated fund investment result |
- |
- |
- |
- |
- |
- |
Total investment result |
478 |
1,717 |
233 |
(946) |
1,476 |
2,958 |
Other revenue |
67 |
272 |
79 |
6,709 |
(381) |
6,746 |
Other expenses |
(231) |
(569) |
(153) |
(4,252) |
(470) |
(5,675) |
Interest expenses |
(11) |
(1,004) |
(15) |
(14) |
(510) |
(1,554) |
Net income (loss) before income taxes |
2,244 |
1,609 |
751 |
1,497 |
351 |
6,452 |
Income tax (expenses) recoveries |
(440) |
(373) |
(112) |
(198) |
278 |
(845) |
Net income (loss) |
1,804 |
1,236 |
639 |
1,299 |
629 |
5,607 |
Less net income (loss) attributed to: |
||||||
Non-controlling interests |
141 |
- |
- |
2 |
1 |
144 |
Participating policyholders |
315 |
45 |
- |
- |
- |
360 |
Net income (loss) attributed to shareholders and other
equity holders
|
$1,348 |
$1,191 |
$639 |
$1,297 |
$628 |
$5,103 |
Total assets |
$177,623 |
$157,111 |
$244,659 |
$257,764 |
$38,417 |
$875,574 |
119 |
2024 Annual Report |
Consolidated Financial Statements |
For the year ended December 31, 2024 |
Asia |
Canada |
U.S. |
Other |
Total |
Insurance service result |
|||||
Life, health and property and casualty insurance |
$2,230 |
$1,075 |
$235 |
$174 |
$3,714 |
Annuities and pensions |
(68) |
239 |
116 |
- |
287 |
Total insurance service result |
2,162 |
1,314 |
351 |
174 |
4,001 |
Net investment income (loss) |
8,052 |
5,882 |
5,118 |
59 |
19,111 |
Insurance finance income (expenses) |
|||||
Life, health and property and casualty insurance |
(5,495) |
(3,844) |
(5,409) |
- |
(14,748) |
Annuities and pensions |
(1,839) |
196 |
172 |
- |
(1,471) |
Total insurance finance income (expenses) |
(7,334) |
(3,648) |
(5,237) |
- |
(16,219) |
Reinsurance finance income (expenses) |
|||||
Life, health and property and casualty insurance |
(65) |
344 |
706 |
- |
985 |
Annuities and pensions |
669 |
(1) |
(520) |
- |
148 |
Total reinsurance finance income (expenses) |
604 |
343 |
186 |
- |
1,133 |
Decrease (increase) in investment contract liabilities |
(187) |
(163) |
(149) |
(5) |
(504) |
Net segregated fund investment result |
- |
- |
- |
- |
- |
Total investment result |
$1,135 |
$2,414 |
$(82) |
$54 |
$3,521 |
Other revenue |
$1,790 |
$2,325 |
$3,616 |
$(143) |
$7,588 |
For the year ended December 31, 2023 |
Asia |
Canada |
U.S. |
Other |
Total |
Insurance service result |
|||||
Life, health and property and casualty insurance |
$2,087 |
$981 |
$511 |
$248 |
$3,827 |
Annuities and pensions |
(128) |
198 |
80 |
- |
150 |
Total insurance service result |
1,959 |
1,179 |
591 |
248 |
3,977 |
Net investment income (loss) |
7,259 |
5,724 |
4,975 |
63 |
18,021 |
Insurance finance income (expenses) |
|||||
Life, health and property and casualty insurance |
(4,971) |
(2,606) |
(4,793) |
20 |
(12,350) |
Annuities and pensions |
(1,466) |
(27) |
(51) |
- |
(1,544) |
Total insurance finance income (expenses) |
(6,437) |
(2,633) |
(4,844) |
20 |
(13,894) |
Reinsurance finance income (expenses) |
|||||
Life, health and property and casualty insurance |
(121) |
(623) |
384 |
- |
(360) |
Annuities and pensions |
1 |
(1) |
(374) |
- |
(374) |
Total reinsurance finance income (expenses) |
(120) |
(624) |
10 |
- |
(734) |
Decrease (increase) in investment contract liabilities |
(220) |
(130) |
(79) |
(6) |
(435) |
Net segregated fund investment result |
- |
- |
- |
- |
- |
Total investment result |
$482 |
$2,337 |
$62 |
$77 |
$2,958 |
Other revenue |
$1,332 |
$2,147 |
$3,239 |
$28 |
$6,746 |
For the years ended December 31, |
2024 |
2023 |
Short-term employee benefits |
$99 |
$83 |
Post-employment benefits |
7 |
6 |
Share-based payments |
79 |
73 |
Termination benefits |
2 |
3 |
Other long-term benefits |
3 |
3 |
Total |
$190 |
$168 |
As at December 31, 2024
(100% owned unless otherwise noted in brackets beside company name)
|
Equity
interest
|
Address |
Description |
||||||||
The Manufacturers Life Insurance Company |
$65,338 |
Toronto,
Canada
|
A leading financial services group with principal
operations in Asia, Canada and the United States
that offers a diverse range of financial protection
products and wealth management services
|
||||||||
Manulife Holdings (Alberta) Limited |
$22,118 |
Calgary,
Canada
|
Holding company |
||||||||
John Hancock Financial Corporation |
Boston, U.S.A. |
Holding company |
|||||||||
The Manufacturers Investment Corporation |
Boston, U.S.A. |
Holding company |
|||||||||
John Hancock Reassurance Company Ltd. |
Boston, U.S.A. |
Captive insurance subsidiary that provides life,
annuity and long-term care reinsurance to affiliates
|
|||||||||
John Hancock Life Insurance Company (U.S.A.) |
Boston, U.S.A. |
U.S. life insurance company licensed in all states,
except New York
|
|||||||||
John Hancock Subsidiaries LLC |
Boston, U.S.A. |
Holding company |
|||||||||
John Hancock Financial Network, Inc. |
Boston, U.S.A. |
Financial services distribution organization |
|||||||||
John Hancock Investment Management LLC |
Boston, U.S.A. |
Investment advisor |
|||||||||
John Hancock Investment Management
Distributors LLC
|
Boston,
U.S.A.
|
Broker-dealer |
|||||||||
Manulife Investment Management (US) LLC |
Boston, U.S.A. |
Investment advisor |
|||||||||
Manulife Investment Management Timberland
and Agriculture Inc.
|
Boston, U.S.A. |
Manager of globally diversified timberland and
agricultural portfolios
|
|||||||||
John Hancock Life Insurance Company of New York |
New York,
U.S.A.
|
U.S. life insurance company licensed in New York |
|||||||||
John Hancock Variable Trust Advisers LLC |
Boston, U.S.A. |
Investment advisor for open-end mutual funds |
|||||||||
John Hancock Life & Health Insurance Company |
Boston, U.S.A. |
U.S. life insurance company licensed in all states |
|||||||||
John Hancock Distributors LLC |
Boston, U.S.A. |
Broker-dealer |
|||||||||
John Hancock Insurance Agency, Inc. |
Boston, U.S.A. |
Insurance agency |
|||||||||
Manulife Reinsurance Limited |
Hamilton,
Bermuda
|
Provides life and financial reinsurance to affiliates |
|||||||||
Manulife Reinsurance (Bermuda) Limited |
Hamilton,
Bermuda
|
Provides life and financial reinsurance to affiliates |
|||||||||
Manulife Bank of Canada |
$1,882 |
Waterloo,
Canada
|
Provides integrated banking products and service
options not available from an insurance company
|
||||||||
Manulife Investment Management Holdings (Canada) Inc. |
$1,477 |
Toronto,
Canada
|
Holding company |
||||||||
Manulife Investment Management Limited |
Toronto,
Canada
|
Provides investment counseling, portfolio and
mutual fund management in Canada
|
|||||||||
First North American Insurance Company |
$8 |
Toronto,
Canada
|
Property and casualty insurance company |
||||||||
Manulife Holdings (Bermuda) Limited |
$21,658 |
Hamilton,
Bermuda
|
Holding company |
||||||||
Manufacturers P&C Limited |
St. Michael,
Barbados
|
Provides property and casualty reinsurance |
|||||||||
Manufacturers Life Reinsurance Limited |
St. Michael,
Barbados
|
Provides life and annuity reinsurance to affiliates |
|||||||||
Manulife Financial Asia Limited |
Hong Kong,
China
|
Holding company |
|||||||||
Manulife (Cambodia) PLC |
Phnom Penh,
Cambodia
|
Life insurance company |
|||||||||
Manulife Myanmar Life Insurance Company Limited |
Yangon,
Myanmar
|
Life insurance company |
|||||||||
Manulife (Vietnam) Limited |
Ho Chi Minh
City,
Vietnam
|
Life insurance company |
|||||||||
Manulife Investment Fund Management (Vietnam)
Company Limited
|
Ho Chi Minh
City,
Vietnam
|
Fund management company |
|||||||||
Manulife International Holdings Limited |
Hong Kong,
China
|
Holding company |
|||||||||
Manulife (International) Limited |
Hong Kong,
China
|
Life insurance company |
|||||||||
Manulife-Sinochem Life Insurance Co. Ltd. (51%) |
Shanghai,
China
|
Life insurance company |
|||||||||
121 |
2024 Annual Report |
Consolidated Financial Statements |
As at December 31, 2024
(100% owned unless otherwise noted in brackets beside company name)
|
Equity
interest
|
Address |
Description |
||||||||
Manulife Investment Management International Holdings
Limited
|
Hong Kong,
China
|
Holding company |
|||||||||
Manulife Investment Management (Hong Kong) Limited |
Hong Kong,
China
|
Investment management and advisory company
marketing mutual funds
|
|||||||||
Manulife Investment Management (Taiwan) Co., Ltd. |
Taipei,
Taiwan
(China)
|
Investment management company |
|||||||||
Manulife Life Insurance Company (Japan) |
Tokyo,
Japan
|
Life insurance company |
|||||||||
Manulife Investment Management (Japan) Limited |
Tokyo,
Japan
|
Investment management and advisory company
and mutual fund business
|
|||||||||
Manulife Holdings Berhad (62.6%) |
Kuala Lumpur,
Malaysia
|
Holding company |
|||||||||
Manulife Insurance Berhad (62.6%) |
Kuala Lumpur,
Malaysia
|
Life insurance company |
|||||||||
Manulife Investment Management (Malaysia) Berhad
(62.6%)
|
Kuala Lumpur,
Malaysia
|
Asset management company |
|||||||||
Manulife (Singapore) Pte. Ltd. |
Singapore |
Life insurance company |
|||||||||
Manulife Investment Management (Singapore) Pte. Ltd. |
Singapore |
Asset management company |
|||||||||
Manulife Fund Management Co., Ltd. |
Beijing,
China
|
Mutual fund company in China |
|||||||||
The Manufacturers Life Insurance Co. (Phils.), Inc. |
Makati City,
Philippines
|
Life insurance company |
|||||||||
Manulife Chinabank Life Assurance Corporation (60%) |
Makati City,
Philippines
|
Life insurance company |
|||||||||
PT Asuransi Jiwa Manulife Indonesia |
Jakarta,
Indonesia
|
Life insurance company |
|||||||||
PT Manulife Aset Manajemen Indonesia |
Jakarta,
Indonesia
|
Investment management and investment advisor |
|||||||||
Manulife Investment Management (Europe) Limited |
$456 |
London,
England
|
Investment management company providing
advisory services for Manulife Investment
Management’s funds, internationally
|
||||||||
Manulife Assurance Company of Canada |
$55 |
Toronto,
Canada
|
Life insurance company |
||||||||
EIS Services (Bermuda) Limited |
$1,235 |
Hamilton,
Bermuda
|
Investment holding company |
||||||||
Berkshire Insurance Services Inc. |
$2,343 |
Toronto,
Canada
|
Investment holding company |
||||||||
JH Investments (Delaware) LLC |
Boston, U.S.A. |
Investment holding company |
|||||||||
Manulife Wealth Inc. |
$349 |
Oakville,
Canada
|
Investment dealer |
||||||||
Manulife Investment Management (North America) Limited |
$5 |
Toronto,
Canada
|
Investment advisor |
||||||||
123 |
2024 Annual Report |
Consolidated Financial Statements |
As at December 31, 2024 |
MFC
(Guarantor)
|
JHUSA
(Issuer)
|
Other
subsidiaries
|
Consolidation
adjustments
|
Consolidated
MFC
|
Assets |
|||||
Invested assets |
$126 |
$112,444 |
$330,044 |
$(117) |
$442,497 |
Investments in unconsolidated subsidiaries |
65,350 |
9,393 |
21,510 |
(96,253) |
- |
Insurance contract assets |
- |
- |
177 |
(75) |
102 |
Reinsurance contract held assets |
- |
46,811 |
22,440 |
(10,236) |
59,015 |
Other assets |
548 |
11,182 |
34,660 |
(5,174) |
41,216 |
Segregated funds net assets |
- |
218,909 |
218,681 |
(1,602) |
435,988 |
Total assets |
$66,024 |
$398,739 |
$627,512 |
$(113,457) |
$978,818 |
Liabilities and equity |
|||||
Insurance contract liabilities, excluding those for account of segregated
fund holders
|
$- |
$148,828 |
$258,007 |
$(10,434) |
$396,401 |
Reinsurance contract held liabilities |
- |
- |
2,669 |
- |
2,669 |
Investment contract liabilities |
- |
5,260 |
8,854 |
(616) |
13,498 |
Other liabilities |
1,539 |
8,432 |
58,333 |
(5,163) |
63,141 |
Long-term debt |
6,629 |
- |
- |
- |
6,629 |
Capital instruments |
6,884 |
- |
648 |
- |
7,532 |
Insurance contract liabilities for account of segregated fund holders |
- |
58,137 |
68,408 |
- |
126,545 |
Investment contract liabilities for account of segregated fund holders |
- |
160,772 |
150,273 |
(1,602) |
309,443 |
Shareholders’ and other equity |
50,972 |
17,357 |
78,285 |
(95,642) |
50,972 |
Participating policyholders’ equity |
- |
(47) |
614 |
- |
567 |
Non-controlling interests |
- |
- |
1,421 |
- |
1,421 |
Total liabilities and equity |
$66,024 |
$398,739 |
$627,512 |
$(113,457) |
$978,818 |
As at December 31, 2023 |
MFC
(Guarantor)
|
JHUSA
(Issuer)
|
Other
subsidiaries
|
Consolidation
adjustments
|
Consolidated
MFC
|
Assets |
|||||
Invested assets |
$86 |
$109,433 |
$307,930 |
$(239) |
$417,210 |
Investments in unconsolidated subsidiaries |
58,694 |
8,674 |
17,916 |
(85,284) |
- |
Insurance contract assets |
- |
- |
217 |
(72) |
145 |
Reinsurance contract held assets |
- |
42,418 |
10,380 |
(10,147) |
42,651 |
Other assets |
329 |
8,731 |
32,700 |
(3,736) |
38,024 |
Segregated funds net assets |
- |
188,067 |
191,241 |
(1,764) |
377,544 |
Total assets |
$59,109 |
$357,323 |
$560,384 |
$(101,242) |
$875,574 |
Liabilities and equity |
|||||
Insurance contract liabilities, excluding those for account of segregated
fund holders
|
$- |
$145,589 |
$232,972 |
$(10,565) |
$367,996 |
Reinsurance contract held liabilities |
- |
- |
2,831 |
- |
2,831 |
Investment contract liabilities |
- |
3,487 |
8,928 |
(599) |
11,816 |
Other liabilities |
573 |
5,869 |
51,266 |
(3,786) |
53,922 |
Long-term debt |
6,071 |
- |
- |
- |
6,071 |
Capital instruments |
5,426 |
594 |
647 |
- |
6,667 |
Insurance contract liabilities for account of segregated fund holders |
- |
51,719 |
62,424 |
- |
114,143 |
Investment contract liabilities for account of segregated fund holders |
- |
136,348 |
128,817 |
(1,764) |
263,401 |
Shareholders’ and other equity |
47,039 |
13,773 |
70,755 |
(84,528) |
47,039 |
Participating policyholders’ equity |
- |
(56) |
313 |
- |
257 |
Non-controlling interests |
- |
- |
1,431 |
- |
1,431 |
Total liabilities and equity |
$59,109 |
$357,323 |
$560,384 |
$(101,242) |
$875,574 |
For the year ended December 31, 2024 |
MFC
(Guarantor)
|
JHUSA
(Issuer)
|
Other
subsidiaries
|
Consolidation
adjustments
|
Consolidated
MFC
|
Insurance service result |
|||||
Insurance revenue |
$- |
$11,022 |
$16,654 |
$(1,084) |
$26,592 |
Insurance service expenses |
- |
(10,501) |
(12,384) |
1,063 |
(21,822) |
Net expenses from reinsurance contracts held |
- |
(309) |
(499) |
39 |
(769) |
Total insurance service result |
- |
212 |
3,771 |
18 |
4,001 |
Investment result |
|||||
Net investment income (loss) |
871 |
4,548 |
14,880 |
(1,188) |
19,111 |
Insurance / reinsurance finance income (expenses) |
- |
(3,894) |
(11,022) |
(170) |
(15,086) |
Other investment result |
- |
(34) |
(367) |
(103) |
(504) |
Total investment result |
871 |
620 |
3,491 |
(1,461) |
3,521 |
Other revenue |
(34) |
853 |
7,257 |
(488) |
7,588 |
Other expenses |
(45) |
(1,209) |
(5,359) |
274 |
(6,339) |
Interest expenses |
(494) |
(19) |
(2,825) |
1,657 |
(1,681) |
Net income (loss) before income taxes |
298 |
457 |
6,335 |
- |
7,090 |
Income tax (expenses) recoveries |
(30) |
52 |
(1,234) |
- |
(1,212) |
Net income (loss) after income taxes |
268 |
509 |
5,101 |
- |
5,878 |
Equity in net income (loss) of unconsolidated subsidiaries |
5,117 |
550 |
1,059 |
(6,726) |
- |
Net income (loss) |
$5,385 |
$1,059 |
$6,160 |
$(6,726) |
$5,878 |
Net income (loss) attributed to: |
|||||
Non-controlling interests |
$- |
$- |
$247 |
$- |
$247 |
Participating policyholders |
- |
135 |
246 |
(135) |
246 |
Shareholders and other equity holders |
5,385 |
924 |
5,667 |
(6,591) |
5,385 |
$5,385 |
$1,059 |
$6,160 |
$(6,726) |
$5,878 |
|
For the year ended December 31, 2023 |
MFC
(Guarantor)
|
JHUSA
(Issuer)
|
Other
subsidiaries
|
Consolidation
adjustments
|
Consolidated
MFC
|
Insurance service result |
|||||
Insurance revenue |
$- |
$9,858 |
$15,754 |
$(1,640) |
$23,972 |
Insurance service expenses |
- |
(8,928) |
(12,195) |
1,741 |
(19,382) |
Net expenses from reinsurance contracts held |
- |
(315) |
(175) |
(123) |
(613) |
Total insurance service result |
- |
615 |
3,384 |
(22) |
3,977 |
Investment result |
|||||
Net investment income (loss) |
638 |
4,232 |
14,179 |
(1,028) |
18,021 |
Insurance / reinsurance finance income (expenses) |
- |
(4,723) |
(9,993) |
88 |
(14,628) |
Other investment result |
- |
100 |
(432) |
(103) |
(435) |
Total investment result |
638 |
(391) |
3,754 |
(1,043) |
2,958 |
Other revenue |
14 |
790 |
6,384 |
(442) |
6,746 |
Other expenses |
(55) |
(1,112) |
(4,776) |
268 |
(5,675) |
Interest expenses |
(433) |
(79) |
(2,281) |
1,239 |
(1,554) |
Net income (loss) before income taxes |
164 |
(177) |
6,465 |
- |
6,452 |
Income tax (expenses) recoveries |
7 |
175 |
(1,027) |
- |
(845) |
Net income (loss) after income taxes |
171 |
(2) |
5,438 |
- |
5,607 |
Equity in net income (loss) of unconsolidated subsidiaries |
4,932 |
811 |
809 |
(6,552) |
- |
Net income (loss) |
$5,103 |
$809 |
$6,247 |
$(6,552) |
$5,607 |
Net income (loss) attributed to: |
|||||
Non-controlling interests |
$- |
$- |
$144 |
$- |
$144 |
Participating policyholders |
- |
(74) |
360 |
74 |
360 |
Shareholders and other equity holders |
5,103 |
883 |
5,743 |
(6,626) |
5,103 |
$5,103 |
$809 |
$6,247 |
$(6,552) |
$5,607 |
|
125 |
2024 Annual Report |
Consolidated Financial Statements |
For the year ended December 31, 2024 |
MFC
(Guarantor)
|
JHUSA
(Issuer)
|
Other
subsidiaries
|
Consolidation
adjustments
|
Consolidated
MFC
|
Operating activities |
|||||
Net income (loss) |
$5,385 |
$1,059 |
$6,160 |
$(6,726) |
$5,878 |
Adjustments: |
|||||
Equity in net income of unconsolidated subsidiaries |
(5,117) |
(550) |
(1,059) |
6,726 |
- |
Increase (decrease) in insurance contract net liabilities |
- |
441 |
8,994 |
- |
9,435 |
Increase (decrease) in investment contract liabilities |
- |
70 |
434 |
- |
504 |
(Increase) decrease in reinsurance contract assets, excluding reinsurance
transactions
|
- |
(136) |
(477) |
- |
(613) |
Amortization of (premium) discount on invested assets |
- |
37 |
(327) |
- |
(290) |
Contractual service margin (“CSM”) amortization |
- |
(441) |
(1,935) |
- |
(2,376) |
Other amortization |
11 |
147 |
711 |
- |
869 |
Net realized and unrealized (gains) losses and impairment on assets |
(38) |
587 |
(1,409) |
- |
(860) |
Deferred income tax expenses (recoveries) |
22 |
49 |
240 |
- |
311 |
Net loss on reinsurance transactions (pre-tax) |
- |
33 |
38 |
- |
71 |
Cash provided by (used in) operating activities before undernoted items |
263 |
1,296 |
11,370 |
- |
12,929 |
Dividends from unconsolidated subsidiaries |
7,150 |
689 |
(595) |
(7,244) |
- |
Changes in policy related and operating receivables and payables |
221 |
1,387 |
11,957 |
- |
13,565 |
Cash provided by (used in) operating activities |
7,634 |
3,372 |
22,732 |
(7,244) |
26,494 |
Investing activities |
|||||
Purchases and mortgage advances |
- |
(19,159) |
(111,964) |
- |
(131,123) |
Disposals and repayments |
- |
16,485 |
96,186 |
- |
112,671 |
Changes in investment broker net receivables and payables |
- |
(22) |
312 |
- |
290 |
Net cash increase (decrease) from sale (purchase) of subsidiaries |
- |
- |
(297) |
- |
(297) |
Investment in common shares of subsidiaries |
(3,432) |
- |
- |
3,432 |
- |
Capital contribution to unconsolidated subsidiaries |
- |
(2) |
- |
2 |
- |
Return of capital from unconsolidated subsidiaries |
- |
17 |
- |
(17) |
- |
Notes receivable from parent |
- |
- |
(938) |
938 |
- |
Notes receivable from subsidiaries |
(135) |
- |
- |
135 |
- |
Cash provided by (used in) investing activities |
(3,567) |
(2,681) |
(16,701) |
4,490 |
(18,459) |
Financing activities |
|||||
Change in repurchase agreements and securities sold but not yet purchased |
- |
- |
460 |
- |
460 |
Issue of capital instruments, net |
2,591 |
- |
- |
- |
2,591 |
Redemption of capital instruments |
(1,277) |
(609) |
- |
- |
(1,886) |
Secured borrowing from securitization transactions |
- |
- |
667 |
- |
667 |
Changes in deposits from Bank clients, net |
- |
- |
413 |
- |
413 |
Lease payments |
- |
(3) |
(115) |
- |
(118) |
Shareholders’ dividends and other equity distributions |
(3,159) |
- |
- |
- |
(3,159) |
Common shares repurchased |
(3,272) |
- |
- |
- |
(3,272) |
Common shares issued, net |
144 |
- |
3,432 |
(3,432) |
144 |
Contributions from (distributions to) non-controlling interests, net |
- |
- |
(14) |
- |
(14) |
Dividends paid to parent |
- |
595 |
(7,839) |
7,244 |
- |
Capital contributions by parent |
- |
- |
2 |
(2) |
- |
Return of capital to parent |
- |
- |
(17) |
17 |
- |
Notes payable to parent |
- |
- |
135 |
(135) |
- |
Notes payable to subsidiaries |
938 |
- |
- |
(938) |
- |
Cash provided by (used in) financing activities |
(4,035) |
(17) |
(2,876) |
2,754 |
(4,174) |
Cash and short-term securities |
|||||
Increase (decrease) during the year |
32 |
674 |
3,155 |
- |
3,861 |
Effect of foreign exchange rate changes on cash and short-term securities |
8 |
363 |
826 |
- |
1,197 |
Balance, beginning of year |
86 |
4,004 |
15,794 |
- |
19,884 |
Balance, end of year |
126 |
5,041 |
19,775 |
- |
24,942 |
Cash and short-term securities |
|||||
Beginning of year |
|||||
Gross cash and short-term securities |
86 |
4,329 |
15,923 |
- |
20,338 |
Net payments in transit, included in other liabilities |
- |
(325) |
(129) |
- |
(454) |
Net cash and short-term securities, beginning of year |
86 |
4,004 |
15,794 |
- |
19,884 |
End of year |
|||||
Gross cash and short-term securities |
126 |
5,436 |
20,227 |
- |
25,789 |
Net payments in transit, included in other liabilities |
- |
(395) |
(452) |
- |
(847) |
Net cash and short-term securities, end of year |
$126 |
$5,041 |
$19,775 |
$- |
$24,942 |
Supplemental disclosures on cash flow information: |
|||||
Interest received |
$831 |
$3,872 |
$10,582 |
$(1,789) |
$13,496 |
Interest paid |
475 |
69 |
2,819 |
(1,789) |
1,574 |
Income taxes paid (refund) |
8 |
1 |
746 |
- |
755 |
For the year ended December 31, 2023 |
MFC
(Guarantor)
|
JHUSA
(Issuer)
|
Other
subsidiaries
|
Consolidation
adjustments
|
Consolidated
MFC
|
Operating activities |
|||||
Net income (loss) |
$5,103 |
$809 |
$6,247 |
$(6,552) |
$5,607 |
Adjustments: |
|||||
Equity in net income of unconsolidated subsidiaries |
(4,932) |
(811) |
(809) |
6,552 |
- |
Increase (decrease) in insurance contract net liabilities |
- |
455 |
10,242 |
- |
10,697 |
Increase (decrease) in investment contract liabilities |
- |
(112) |
547 |
- |
435 |
(Increase) decrease in reinsurance contract assets, excluding reinsurance
transactions
|
- |
28 |
946 |
- |
974 |
Amortization of (premium) discount on invested assets |
- |
30 |
(171) |
- |
(141) |
Contractual service margin (“CSM”) amortization |
- |
(455) |
(1,543) |
- |
(1,998) |
Other amortization |
10 |
147 |
424 |
- |
581 |
Net realized and unrealized (gains) losses and impairment on assets |
3 |
471 |
(3,319) |
- |
(2,845) |
Deferred income tax expenses (recoveries) |
(11) |
(141) |
622 |
- |
470 |
Stock option expense |
- |
(3) |
5 |
- |
2 |
Cash provided by (used in) operating activities before undernoted items |
173 |
418 |
13,191 |
- |
13,782 |
Dividends from unconsolidated subsidiaries |
5,600 |
386 |
(679) |
(5,307) |
- |
Changes in policy related and operating receivables and payables |
(4) |
(649) |
7,294 |
- |
6,641 |
Cash provided by (used in) operating activities |
5,769 |
155 |
19,806 |
(5,307) |
20,423 |
Investing activities |
|||||
Purchases and mortgage advances |
- |
(15,165) |
(68,856) |
- |
(84,021) |
Disposals and repayments |
- |
16,159 |
54,122 |
- |
70,281 |
Changes in investment broker net receivables and payables |
- |
12 |
9 |
- |
21 |
Net cash increase (decrease) from sale (purchase) of subsidiaries |
- |
- |
(1) |
- |
(1) |
Investment in common shares of subsidiaries |
(1,843) |
- |
- |
1,843 |
- |
Capital contribution to unconsolidated subsidiaries |
- |
(1) |
- |
1 |
- |
Return of capital from unconsolidated subsidiaries |
- |
5 |
- |
(5) |
- |
Notes receivable from parent |
- |
- |
(4) |
4 |
- |
Notes receivable from subsidiaries |
(25) |
- |
- |
25 |
- |
Cash provided by (used in) investing activities |
(1,868) |
1,010 |
(14,730) |
1,868 |
(13,720) |
Financing activities |
|||||
Change in repurchase agreements and securities sold but not yet purchased |
- |
- |
(693) |
- |
(693) |
Issue of capital instruments, net |
1,194 |
- |
- |
- |
1,194 |
Redemption of capital instruments |
(600) |
- |
- |
- |
(600) |
Secured borrowing from securitization transactions |
- |
- |
537 |
- |
537 |
Changes in deposits from Bank clients, net |
- |
- |
(895) |
- |
(895) |
Lease payments |
- |
(3) |
(95) |
- |
(98) |
Shareholders’ dividends and other equity distributions |
(2,972) |
- |
- |
- |
(2,972) |
Common shares repurchased |
(1,595) |
- |
- |
- |
(1,595) |
Common shares issued, net |
94 |
- |
1,843 |
(1,843) |
94 |
Contributions from (distributions to) non-controlling interests, net |
- |
- |
(14) |
- |
(14) |
Dividends paid to parent |
- |
679 |
(5,986) |
5,307 |
- |
Capital contributions by parent |
- |
- |
1 |
(1) |
- |
Return of capital to parent |
- |
- |
(5) |
5 |
- |
Notes payable to parent |
- |
- |
25 |
(25) |
- |
Notes payable to subsidiaries |
4 |
- |
- |
(4) |
- |
Cash provided by (used in) financing activities |
(3,875) |
676 |
(5,282) |
3,439 |
(5,042) |
Cash and short-term securities |
|||||
Increase (decrease) during the year |
26 |
1,841 |
(206) |
- |
1,661 |
Effect of foreign exchange rate changes on cash and short-term securities |
(3) |
(52) |
(357) |
- |
(412) |
Balance, beginning of year |
63 |
2,215 |
16,357 |
- |
18,635 |
Balance, end of year |
86 |
4,004 |
15,794 |
- |
19,884 |
Cash and short-term securities |
|||||
Beginning of year |
|||||
Gross cash and short-term securities |
63 |
2,614 |
16,476 |
- |
19,153 |
Net payments in transit, included in other liabilities |
- |
(399) |
(119) |
- |
(518) |
Net cash and short-term securities, beginning of year |
63 |
2,215 |
16,357 |
- |
18,635 |
End of year |
|||||
Gross cash and short-term securities |
86 |
4,329 |
15,923 |
- |
20,338 |
Net payments in transit, included in other liabilities |
- |
(325) |
(129) |
- |
(454) |
Net cash and short-term securities, end of year |
$86 |
$4,004 |
$15,794 |
$- |
$19,884 |
Supplemental disclosures on cash flow information: |
|||||
Interest received |
$650 |
$3,369 |
$10,166 |
$(1,417) |
$12,768 |
Interest paid |
418 |
115 |
2,432 |
(1,417) |
1,548 |
Income taxes paid (refund) |
2 |
(1) |
435 |
- |
436 |
1 |
2024 Annual Report |
Management’s Discussion and Analysis |
Management's Discussion and Analysis |
|
1. Manulife Financial Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
2. Asia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
3. Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
4. U.S. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
5. Global Wealth and Asset Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
6. Corporate and Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
7. Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
8. Fourth Quarter Financial Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
9. Risk Management and Risk Factors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
10. Capital Management Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
11. Critical Actuarial and Accounting Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
12. Controls and Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
13. Non-GAAP and Other Financial Measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
|
14. Additional Disclosures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
3 |
2024 Annual Report |
Management’s Discussion and Analysis |
Customers
Improve Net Promoter Score (“NPS”) by +36 points and delight customers1
|
|
Team
Engage our team — achieve top quartile engagement2
|
|
Shareholders
Deliver top quartile returns3
|
|
Community
Deliver on our Impact Agenda4
|
5 |
2024 Annual Report |
Management’s Discussion and Analysis |
As at and for the years ended December 31,
($ millions, unless otherwise stated)
|
2024 |
2023 |
Net income (loss) attributed to shareholders |
$5,385 |
$5,103 |
Core earnings(1) |
$7,226 |
$6,684 |
Diluted earnings (loss) per common share ($) |
$2.84 |
$2.61 |
Diluted core earnings per common share ($) |
$3.87 |
$3.47 |
Return on common shareholders’ equity (“ROE”) |
12.0% |
11.9% |
Core ROE |
16.4% |
15.9% |
Expense efficiency ratio |
44.8% |
45.5% |
General expenses |
$4,859 |
$4,330 |
Core expenses(1) |
$6,899 |
$6,550 |
7 |
2024 Annual Report |
Management’s Discussion and Analysis |
For the years ended December 31,
($ millions)
|
2024 |
2023 |
% change(1)
2024 vs 2023
|
Core earnings by segment |
|||
Asia |
$2,589 |
$2,048 |
27% |
Canada |
1,568 |
1,487 |
5% |
U.S. |
1,690 |
1,759 |
(5)% |
Global Wealth and Asset Management |
1,736 |
1,321 |
30% |
Corporate and Other |
(357) |
69 |
- |
Total core earnings |
$7,226 |
$6,684 |
8% |
For the years ended December 31,
($ millions)
|
2024 |
2023 |
Core earnings |
$7,226 |
$6,684 |
Items excluded from core earnings: |
||
Market experience gains (losses)(1) |
$(1,450) |
$(1,790) |
Realized gains (losses) on debt instruments |
(962) |
(130) |
Derivatives and hedge accounting ineffectiveness |
132 |
(152) |
Actual less expected long-term returns on public equity |
312 |
103 |
Actual less expected long-term returns on ALDA |
(969) |
(1,623) |
Other investment results |
37 |
12 |
Changes in actuarial methods and assumptions that flow directly through income(2) |
(199) |
105 |
Restructuring charge(3) |
(72) |
(36) |
Reinsurance transactions, tax-related items and other(4) |
(120) |
140 |
Total items excluded from core earnings |
(1,841) |
(1,581) |
Net income (loss) attributed to shareholders |
$5,385 |
$5,103 |
For the years ended December 31,
($ millions)
|
2024 |
2023 |
% change(1)
2024 vs 2023
|
Net income (loss) attributed to shareholders by segment |
|||
Asia |
$2,355 |
$1,348 |
75% |
Canada |
1,221 |
1,191 |
3% |
U.S. |
135 |
639 |
(79)% |
Global Wealth and Asset Management |
1,597 |
1,297 |
23% |
Corporate and Other |
77 |
628 |
(88)% |
Total net income (loss) attributed to shareholders |
$5,385 |
$5,103 |
6% |
9 |
2024 Annual Report |
Management’s Discussion and Analysis |
As at and for the years ended December 31, |
||
($ millions, unless otherwise stated) |
2024 |
2023 |
Asia APE sales |
$6,073 |
$4,469 |
Canada APE sales |
1,689 |
1,409 |
U.S. APE sales |
623 |
562 |
Total APE sales(1) |
8,385 |
6,440 |
Asia new business value |
2,209 |
1,627 |
Canada new business value |
627 |
490 |
U.S. new business value |
241 |
207 |
Total new business value(1) |
3,077 |
2,324 |
Asia new business CSM(2) |
2,148 |
1,549 |
Canada new business CSM |
357 |
224 |
U.S. new business CSM |
382 |
394 |
Total new business CSM(2) |
2,887 |
2,167 |
Asia CSM net of NCI |
15,540 |
12,617 |
Canada CSM |
4,109 |
4,060 |
U.S. CSM |
2,468 |
3,738 |
Corporate and Other CSM |
10 |
25 |
Total CSM net of NCI |
22,127 |
20,440 |
Post-tax CSM net of NCI(3) |
19,682 |
17,748 |
Global WAM gross flows ($ billions)(1) |
171.7 |
143.4 |
Global WAM net flows ($ billions)(1) |
13.3 |
4.5 |
Global WAM assets under management and administration ($ billions)(3),(4) |
1,031.1 |
849.2 |
Global WAM total invested assets ($ billions) |
9.7 |
7.1 |
Global WAM segregated funds net assets ($ billions)(4) |
291.9 |
248.1 |
Total assets under management and administration ($ billions)(3) |
1,608.0 |
1,388.8 |
Total invested assets ($ billions) |
442.5 |
417.2 |
Total net segregated funds net assets ($ billions) |
436.0 |
377.5 |
As at December 31,
($ millions)
|
2024 |
2023 |
Total invested assets |
$442,497 |
$417,210 |
Segregated funds net assets(1) |
435,988 |
377,544 |
Mutual funds, institutional asset management and other(1),(2) |
506,868 |
411,961 |
Total assets under management |
1,385,353 |
1,206,715 |
Other assets under administration |
222,614 |
182,046 |
Total assets under management and administration |
$1,607,967 |
$1,388,761 |
11 |
2024 Annual Report |
Management’s Discussion and Analysis |
As at and for the years ended December 31,
($ millions, unless otherwise stated)
|
2024 |
2023 |
MLI’s LICAT ratio(1) |
137% |
137% |
Financial leverage ratio |
23.7% |
24.3% |
Consolidated capital ($ billions)(2) |
$81.2 |
$73.9 |
Book value per common share ($) |
$25.63 |
$22.36 |
Adjusted book value per common share ($)(3) |
$37.02 |
$32.19 |
Quarterly |
Full Year |
|||||||
Exchange rate |
4Q24 |
3Q24 |
2Q24 |
1Q24 |
4Q23 |
2024 |
2023 |
|
Average(1) |
||||||||
U.S. dollar |
1.3987 |
1.3639 |
1.3682 |
1.3485 |
1.3612 |
1.3698 |
1.3494 |
|
Japanese yen |
0.0092 |
0.0091 |
0.0088 |
0.0090 |
0.0092 |
0.0090 |
0.0096 |
|
Hong Kong dollar |
0.1799 |
0.1749 |
0.1750 |
0.1724 |
0.1742 |
0.1755 |
0.1724 |
|
Period end |
||||||||
U.S. dollar |
1.4382 |
1.3510 |
1.3684 |
1.3533 |
1.3186 |
1.4382 |
1.3186 |
|
Japanese yen |
0.0092 |
0.0094 |
0.0085 |
0.0089 |
0.0094 |
0.0092 |
0.0094 |
|
Hong Kong dollar |
0.1851 |
0.1739 |
0.1753 |
0.1729 |
0.1689 |
0.1851 |
0.1689 |
|
13 |
2024 Annual Report |
Management’s Discussion and Analysis |
Accelerate Growth | ||||
We strive to increase the core earnings contribution from our highest potential businesses1 and the Asia region (our Asia
segment and Asia wealth and asset management (“Asia WAM”)).
Focus areas:
•Leverage global footprint and business diversity to allocate capital and resources to higher growth opportunities
•In Asia, increase penetration and scale in high-quality, sustainable growth businesses
•In Global WAM, scale investment capabilities, enhance our intermediated distribution strength, and increase our focus
where we have direct relationships with clients
•In North America, expand behavioural insurance offerings to provide innovative solutions and support positive health and
well-being outcomes for customers
•In Canada, drive new business growth and persistency in group benefits
•Execute on organic and inorganic growth opportunities
| ||||
Baseline |
Targets2 |
||||||
2024 |
2023 |
2017 (IFRS 4)3 |
2025 |
2027 |
|||
Core earnings contribution from highest potential
businesses4
|
70% |
60% |
54% |
75% |
n/a |
||
Core earnings contribution from Asia region4 |
44% |
37% |
36% |
n/a |
50% |
||
Digital, Customer Leader | ||||
Baseline |
Targets3 |
|||||||
2024 |
2023 |
2018 |
2017 |
2025 |
2027 |
|||
Net promoter score |
27 |
23 |
n/a |
1 |
n/a |
37 |
||
Straight-through-processing (STP) |
89% |
85% |
68% |
n/a |
88% |
n/a |
||
15 |
2024 Annual Report |
Management’s Discussion and Analysis |
Expense Efficiency | ||||
We remain focused on driving efficient growth by effectively managing expense growth at a rate below the pace of our top-
line growth, while ensuring outstanding customer experience and digital ways of working.
Focus areas:
•Leverage global scale, operating efficiencies and digital capabilities
•Deploy emerging technologies and advanced analytics to achieve the next wave of cost synergies
•Streamline business processes and eliminate activities not valued by end customers
•Continue to sustain a culture of expense efficiency and driving efficient growth
| ||||
Baseline |
Medium-term Target1 |
|||||
2024 |
2023 |
2017 (IFRS 4)2 |
||||
Expense efficiency ratio |
44.8% |
45.5% |
55.4% |
<45% |
Portfolio Optimization | ||||
We will continue to optimize our legacy and low ROE businesses and reduce the combined contributions from long-term care
insurance (“LTC”) and variable annuities (“VA”) businesses.
Focus areas:
•Deliver capital release from legacy or low ROE businesses, including variable annuity, long-term care insurance and
select long-duration, guaranteed insurance products
•Optimize portfolio to enhance our risk profile and ROE
•Create value for customers and shareholders through organic optimization initiatives
| ||||
17 |
2024 Annual Report |
Management’s Discussion and Analysis |
Baseline |
Targets1 |
|||||
2024 |
2023 |
2017 (IFRS 4) |
2025 |
|||
Core earnings contribution from LTC and VA businesses2 |
10% |
12% |
24% |
<15% |
High Performing Team | ||||
We are committed to enabling a high performing team and maintaining top quartile employee engagement compared to
global financial services and insurance peers.
Focus areas:
•Organizational effectiveness and speed of decision-making
•Diversity, equity, and inclusion
•Developing our talent with differentiated capabilities
•Continuing to strengthen our value proposition to attract and retain top talent
| ||||
Baseline |
Target1 |
|||||
2024 |
2023 |
20172 |
2023 and onwards |
|||
Employee Engagement |
1st quartile |
1st quartile |
2nd quartile |
1st quartile |
19 |
2024 Annual Report |
Management’s Discussion and Analysis |
Canadian $ |
US $ |
||||
For the years ended December 31,
($ millions)
|
2024 |
2023 |
2024 |
2023 |
|
Core earnings |
$2,589 |
$2,048 |
$1,890 |
$1,518 |
|
Items excluded from core earnings:(1) |
|||||
Market experience gains (losses) |
(178) |
(553) |
(131) |
(413) |
|
Realized gains (losses) on debt instruments |
(374) |
(113) |
(276) |
(83) |
|
Derivatives and hedge accounting ineffectiveness |
(92) |
(264) |
(67) |
(197) |
|
Actual less expected long-term returns on public equity |
204 |
12 |
151 |
8 |
|
Actual less expected long-term returns on ALDA |
21 |
(72) |
15 |
(54) |
|
Other investment results |
63 |
(116) |
46 |
(87) |
|
Changes in actuarial methods and assumptions that flow directly through income |
(5) |
(68) |
(4) |
(51) |
|
Reinsurance transactions, tax-related items and other |
(51) |
(79) |
(38) |
(59) |
|
Total items excluded from core earnings |
(234) |
(700) |
(173) |
(523) |
|
Net income (loss) attributed to shareholders |
$2,355 |
$1,348 |
$1,717 |
$995 |
|
21 |
2024 Annual Report |
Management’s Discussion and Analysis |
For the years ended December 31, |
Canadian $ |
US $ |
|||
($ millions) |
2024 |
2023 |
2024 |
2023 |
|
Annualized premium equivalent sales |
$6,073 |
$4,469 |
$4,429 |
$3,313 |
|
New business value |
$2,209 |
$1,627 |
$1,612 |
$1,206 |
|
New business CSM(1) |
$2,148 |
$1,549 |
$1,567 |
$1,148 |
|
CSM net of NCI |
$15,540 |
$12,617 |
$10,807 |
$9,570 |
|
As at December 31, |
Canadian $ |
US $ |
|||
($ millions) |
2024 |
2023 |
2024 |
2023 |
|
Total invested assets |
$166,590 |
$144,433 |
$115,843 |
$109,533 |
|
Segregated funds net assets |
28,622 |
24,854 |
19,904 |
18,846 |
|
Total assets under management |
$195,212 |
$169,287 |
$135,747 |
$128,379 |
|
23 |
2024 Annual Report |
Management’s Discussion and Analysis |
For the years ended December 31,
($ millions)
|
2024 |
2023 |
Core earnings |
$1,568 |
$1,487 |
Items excluded from core earnings:(1) |
||
Market experience gains (losses) |
(384) |
(341) |
Realized gains (losses) on debt instruments |
(328) |
(10) |
Derivatives and hedge accounting ineffectiveness |
109 |
65 |
Actual less expected long-term returns on public equity |
65 |
(13) |
Actual less expected long-term returns on ALDA |
(235) |
(327) |
Other investment results |
5 |
(56) |
Changes in actuarial methods and assumptions that flow directly through income |
2 |
41 |
Restructuring charge |
(6) |
- |
Reinsurance transactions, tax-related items and other |
41 |
4 |
Total items excluded from core earnings |
(347) |
(296) |
Net income (loss) attributed to shareholders |
$1,221 |
$1,191 |
For the years ended December 31,
($ millions)
|
2024 |
2023 |
APE sales |
$1,689 |
$1,409 |
Contractual service margin |
$4,109 |
$4,060 |
Manulife Bank average net lending assets |
$26,020 |
$25,050 |
As at December 31,
($ millions)
|
2024 |
2023 |
Total invested assets |
$107,141 |
$111,456 |
Segregated funds net assets |
38,099 |
36,085 |
Total assets under management |
$145,240 |
$147,541 |
25 |
2024 Annual Report |
Management’s Discussion and Analysis |
Canadian $ |
US $ |
||||
For the years ended December 31,
($ millions)
|
2024 |
2023 |
2024 |
2023 |
|
Core earnings |
$1,690 |
$1,759 |
$1,234 |
$1,304 |
|
Items excluded from core earnings:(1) |
|||||
Market experience gains (losses) |
(1,327) |
(1,196) |
(971) |
(887) |
|
Realized gains (losses) on debt instruments |
(525) |
(6) |
(385) |
(5) |
|
Derivatives and hedge accounting ineffectiveness |
(33) |
(14) |
(23) |
(10) |
|
Actual less expected long-term returns on public equity |
(47) |
6 |
(34) |
5 |
|
Actual less expected long-term returns on ALDA |
(751) |
(1,212) |
(550) |
(899) |
|
Other investment results |
29 |
30 |
21 |
22 |
|
Changes in actuarial methods and assumptions that flow directly through income |
(202) |
132 |
(148) |
98 |
|
Reinsurance transactions, tax-related items and other |
(26) |
(56) |
(19) |
(42) |
|
Total items excluded from core earnings |
(1,555) |
(1,120) |
(1,138) |
(831) |
|
Net income (loss) attributed to shareholders |
$135 |
$639 |
$96 |
$473 |
|
For the years ended December 31, |
Canadian $ |
US $ |
|||
($ millions) |
2024 |
2023 |
2024 |
2023 |
|
APE sales |
$623 |
$562 |
$454 |
$416 |
|
Contractual service margin |
$2,468 |
$3,738 |
$1,715 |
$2,828 |
|
As at December 31, |
Canadian $ |
US $ |
|||
($ millions) |
2024 |
2023 |
2024 |
2023 |
|
Total invested assets |
$136,833 |
$133,959 |
$95,142 |
$101,592 |
|
Segregated funds net assets |
77,440 |
68,585 |
53,845 |
52,014 |
|
Total assets under management |
$214,273 |
$202,544 |
$148,987 |
$153,606 |
|
27 |
2024 Annual Report |
Management’s Discussion and Analysis |
29 |
2024 Annual Report |
Management’s Discussion and Analysis |
For the years ended December 31,
($ millions)
|
2024 |
2023 |
Core earnings |
||
Retirement |
$1,013 |
$745 |
Retail |
581 |
502 |
Institutional |
142 |
74 |
Core earnings |
1,736 |
1,321 |
Items excluded from core earnings:(1) |
||
Market experience gains (losses) |
4 |
10 |
Realized gains (losses) on debt instruments |
- |
- |
Derivatives and hedge accounting ineffectiveness |
- |
- |
Actual less expected long-term returns on public equity |
4 |
10 |
Actual less expected long-term returns on ALDA |
- |
- |
Other investment results |
- |
- |
Restructuring charge |
(66) |
(36) |
Reinsurance transactions, tax-related items and other |
(77) |
2 |
Total items excluded from core earnings |
(139) |
(24) |
Net income (loss) attributed to shareholders |
$1,597 |
$1,297 |
For the years ended December 31,
($ millions)
|
2024 |
2023 |
Core earnings |
$1,736 |
$1,321 |
Amortization of deferred acquisition costs and other depreciation |
188 |
166 |
Amortization of deferred sales commissions |
78 |
80 |
Core income tax expenses (recoveries) |
171 |
204 |
Core EBITDA |
$2,173 |
$1,771 |
Core EBITDA margin (%) |
27.1% |
24.9% |
For the years ended December 31,
($ millions)
|
2024 |
2023 |
Net flows |
$13,270 |
$4,548 |
For the years ended December 31,
($ millions)
|
2024 |
2023 |
Balance January 1, |
$849,163 |
$782,340 |
Acquisitions / Dispositions |
18,670 |
(410) |
Net flows |
13,270 |
4,548 |
Investment income (loss) and other |
149,982 |
62,685 |
Balance December 31, |
$1,031,085 |
$849,163 |
Average assets under management and administration |
$946,087 |
$812,662 |
As at December 31,
($ millions)
|
2024 |
2023 |
Total invested assets |
$9,743 |
$7,090 |
Segregated funds net assets(1) |
291,860 |
248,066 |
Mutual funds, institutional asset management and other(2) |
506,868 |
411,961 |
Total assets under management |
808,471 |
667,117 |
Other assets under administration |
222,614 |
182,046 |
Total assets under management and administration |
$1,031,085 |
$849,163 |
As at December 31,
($ millions)
|
2024 |
2023 |
Assets under management and administration |
$1,031,085 |
$849,163 |
AUM managed by Global WAM on behalf of Manulife’s other segments |
226,752 |
205,814 |
Total managed assets under management and administration |
$1,257,837 |
$1,054,977 |
31 |
2024 Annual Report |
Management’s Discussion and Analysis |
For the years ended December 31,
($ millions)
|
2024 |
2023 |
Core earnings (loss) |
$(357) |
$69 |
Items excluded from core earnings (loss):(1) |
||
Market experience gains (losses) |
435 |
290 |
Realized gains (losses) on debt instruments |
265 |
(1) |
Derivatives and hedge accounting ineffectiveness |
148 |
61 |
Actual less expected long-term returns on public equity |
86 |
88 |
Actual less expected long-term returns on ALDA |
(4) |
(12) |
Other investment results |
(60) |
154 |
Changes in actuarial methods and assumptions that flow directly through income |
6 |
- |
Reinsurance transactions, tax-related items and other |
(7) |
269 |
Total items excluded from core earnings (loss) |
434 |
559 |
Net income (loss) attributed to shareholders |
$77 |
$628 |
33 |
2024 Annual Report |
Management’s Discussion and Analysis |
2024 |
2023 |
||||||
As at December 31,
($ billions)
|
Carrying
value
|
% of total |
Fair value |
Carrying
value
|
% of total |
Fair value |
|
Cash and short-term securities |
$25.8 |
6 |
$25.8 |
$20.3 |
5 |
$20.3 |
|
Debt securities and private placement debt |
|||||||
Government bonds |
83.9 |
19 |
83.6 |
80.1 |
19 |
79.9 |
|
Corporate bonds |
125.0 |
28 |
124.8 |
130.1 |
31 |
129.9 |
|
Mortgage / asset-backed securities |
1.8 |
- |
1.8 |
2.0 |
1 |
2.0 |
|
Private placement debt |
49.7 |
11 |
49.7 |
45.6 |
10 |
45.6 |
|
Mortgages |
54.4 |
12 |
54.8 |
52.4 |
13 |
52.3 |
|
Loans to Bank clients |
2.3 |
1 |
2.3 |
2.4 |
1 |
2.4 |
|
Public equities |
33.7 |
8 |
33.7 |
25.5 |
6 |
25.5 |
|
Alternative long-duration assets (“ALDA”) |
|||||||
Real estate |
13.3 |
3 |
13.4 |
13.0 |
3 |
13.2 |
|
Infrastructure |
17.8 |
4 |
18.3 |
15.0 |
3 |
15.3 |
|
Timber and agriculture |
5.9 |
1 |
6.5 |
5.7 |
1 |
6.3 |
|
Private equity |
18.3 |
4 |
18.3 |
15.4 |
4 |
15.4 |
|
Energy |
1.9 |
1 |
1.9 |
1.9 |
1 |
1.9 |
|
Various other ALDA |
3.9 |
1 |
3.8 |
3.5 |
1 |
3.4 |
|
Leveraged leases and other |
4.8 |
1 |
4.8 |
4.3 |
1 |
4.3 |
|
Total general fund invested assets |
$442.5 |
100 |
$443.5 |
$417.2 |
100 |
$417.7 |
|
As at December 31,
($ billions)
|
2024 |
2023 |
|||||||
Debt
securities
|
Private
placement
debt
|
Total |
% of
Total
|
Debt
securities
|
Private
placement
debt
|
Total |
% of
Total
|
||
AAA |
$39.3 |
$0.6 |
$39.9 |
15 |
$38.2 |
$0.7 |
$38.9 |
15 |
|
AA |
36.2 |
7.5 |
43.7 |
17 |
35.8 |
7.8 |
43.6 |
17 |
|
A |
80.9 |
17.5 |
98.4 |
38 |
84.6 |
15.2 |
99.8 |
39 |
|
BBB |
48.6 |
17.8 |
66.4 |
26 |
47.6 |
16.3 |
63.9 |
25 |
|
BB |
4.7 |
0.9 |
5.6 |
2 |
4.8 |
0.8 |
5.6 |
2 |
|
B & lower, and unrated |
0.9 |
5.4 |
6.3 |
2 |
1.2 |
4.8 |
6.0 |
2 |
|
Total carrying value |
$210.6 |
$49.7 |
$260.3 |
100 |
$212.2 |
$45.6 |
$257.8 |
100 |
|
As at December 31,
(Per cent of carrying value, unless otherwise stated)
|
2024 |
2023 |
|||||
Debt
securities
|
Private
placement
debt
|
Total |
Debt
securities
|
Private
placement
debt
|
Total |
||
Government and agency |
40 |
9 |
34 |
38 |
10 |
33 |
|
Utilities |
14 |
34 |
18 |
14 |
35 |
18 |
|
Financial |
15 |
12 |
15 |
16 |
12 |
15 |
|
Industrial |
8 |
15 |
9 |
8 |
15 |
9 |
|
Consumer (non-cyclical) |
7 |
14 |
9 |
8 |
14 |
9 |
|
Energy |
6 |
5 |
6 |
6 |
4 |
6 |
|
Consumer (cyclical) |
3 |
5 |
3 |
3 |
6 |
3 |
|
Securitized (MBS/ABS) |
1 |
1 |
1 |
1 |
1 |
1 |
|
Telecommunications |
2 |
1 |
1 |
2 |
- |
2 |
|
Basic materials |
2 |
3 |
2 |
2 |
3 |
2 |
|
Technology |
1 |
- |
1 |
1 |
- |
1 |
|
Media and internet and other |
1 |
1 |
1 |
1 |
- |
1 |
|
Total per cent |
100 |
100 |
100 |
100 |
100 |
100 |
|
Total carrying value ($ billions) |
$210.6 |
$49.7 |
$260.3 |
$212.2 |
$45.6 |
$257.8 |
|
35 |
2024 Annual Report |
Management’s Discussion and Analysis |
As at December 31,
($ billions)
|
2024 |
2023 |
|||
Carrying value |
% of total |
Carrying value |
% of total |
||
Commercial |
|||||
Retail |
$8.0 |
15 |
$7.9 |
15 |
|
Office |
7.5 |
14 |
7.7 |
15 |
|
Multi-family residential |
6.7 |
12 |
6.5 |
12 |
|
Industrial |
5.5 |
10 |
4.9 |
9 |
|
Other commercial |
2.4 |
4 |
2.6 |
5 |
|
30.1 |
55 |
29.6 |
56 |
||
Other mortgages |
|||||
Manulife Bank single-family residential |
24.0 |
44 |
22.5 |
43 |
|
Agricultural |
0.3 |
1 |
0.3 |
1 |
|
Total mortgages |
$54.4 |
100 |
$52.4 |
100 |
|
As at December 31, |
2024 |
2023 |
|||
Canada |
U.S. |
Canada |
U.S. |
||
Loan-to-Value ratio(2) |
61% |
59% |
63% |
60% |
|
Debt-Service Coverage ratio(2) |
1.67x |
1.94x |
1.60x |
1.89x |
|
Average duration (years) |
4.15 |
5.47 |
4.08 |
5.90 |
|
Average loan size ($ millions) |
$21.7 |
$21.9 |
$21.6 |
$20.1 |
|
Loans in arrears(3) |
0.00% |
0.00% |
0.70% |
0.99% |
|
As at December 31, |
2024 |
2023 |
|||
($ billions) |
Carrying value |
% of total |
Carrying value |
% of total |
|
Participating policyholders |
$20.8 |
62 |
$14.6 |
57 |
|
Non-participating products and pass-through products |
9.3 |
28 |
8.3 |
33 |
|
Global Wealth and Asset Management(2) |
1.5 |
4 |
1.5 |
6 |
|
Corporate and Other segment |
2.1 |
6 |
1.1 |
4 |
|
Total public equities |
$33.7 |
100 |
$25.5 |
100 |
|
2024 |
2023 |
||||
As at December 31,
($ billions)
|
Fair value |
% of total |
Fair value |
% of total |
|
Company Own Use |
$2.8 |
21 |
$2.7 |
20 |
|
Office – Downtown |
3.8 |
28 |
3.9 |
30 |
|
Office – Suburban |
0.8 |
6 |
0.9 |
7 |
|
Industrial |
2.6 |
19 |
2.3 |
17 |
|
Residential |
2.5 |
19 |
2.1 |
16 |
|
Retail |
0.3 |
2 |
0.3 |
2 |
|
Other |
0.6 |
5 |
1.0 |
8 |
|
Total real estate(1) |
$13.4 |
100 |
$13.2 |
100 |
|
2024 |
2023 |
|||||
As at December 31,
($ billions)
|
Carrying
value
|
% of total |
Carrying
value
|
% of total |
||
Renewable power generation |
$3.8 |
21 |
$3.2 |
22 |
||
Thermal power generation |
1.7 |
9 |
1.4 |
9 |
||
Transportation (including roads, ports) |
4.5 |
25 |
3.9 |
26 |
||
Electric and gas regulated utilities |
0.7 |
4 |
0.8 |
5 |
||
Electricity transmission |
0.1 |
1 |
- |
- |
||
Water distribution |
0.3 |
2 |
0.4 |
3 |
||
Midstream gas infrastructure |
0.7 |
4 |
0.8 |
5 |
||
Maintenance service, efficiency and social infrastructure |
1.3 |
7 |
1.0 |
6 |
||
Digital infrastructure |
4.4 |
25 |
3.4 |
23 |
||
Other infrastructure |
0.3 |
2 |
0.1 |
1 |
||
Total infrastructure |
$17.8 |
100 |
$15.0 |
100 |
||
37 |
2024 Annual Report |
Management’s Discussion and Analysis |
For the years ended December 31,
($ millions, unless otherwise stated)
|
2024 |
2023 |
Interest income |
$13,761 |
$12,802 |
Dividend, rental income and other income(1) |
3,719 |
3,318 |
Impairments, provisions and recoveries, net |
109 |
(304) |
Other |
660 |
364 |
18,249 |
16,180 |
|
Realized and unrealized gains (losses) on assets supporting insurance and
investment contract liabilities
|
||
Debt securities |
(1,857) |
430 |
Public equities |
4,178 |
2,157 |
Mortgages |
(151) |
99 |
Private placements |
235 |
375 |
Real estate |
(592) |
(1,289) |
Other invested assets |
1,256 |
491 |
Derivatives |
(859) |
875 |
2,210 |
3,138 |
|
Investment expenses |
(1,348) |
(1,297) |
Total investment income (loss) |
$19,111 |
$18,021 |
Quarterly Results |
||
($ millions, unless otherwise stated) |
4Q24 |
4Q23 |
Net income (loss) attributed to shareholders |
$1,638 |
$1,659 |
Core earnings(1) |
$1,907 |
$1,773 |
Diluted earnings (loss) per common share ($) |
$0.88 |
$0.86 |
Diluted core earnings per common share ($) |
$1.03 |
$0.92 |
ROE |
14.0% |
15.3% |
Core return on shareholders’ equity |
16.5% |
16.4% |
Expense efficiency ratio |
44.4% |
45.5% |
General expenses |
$1,328 |
$1,180 |
Core expenses |
$1,797 |
$1,725 |
For the quarters ended December 31,
($ millions)
|
2024 |
2023 |
Core earnings by segment |
||
Asia |
$666 |
$564 |
Canada |
390 |
352 |
U.S. |
412 |
474 |
Global Wealth and Asset Management |
481 |
353 |
Corporate and Other |
(42) |
30 |
Total core earnings |
$1,907 |
$1,773 |
39 |
2024 Annual Report |
Management’s Discussion and Analysis |
For the quarters ended December 31, |
||
($ millions) |
2024 |
2023 |
Core earnings |
$1,907 |
$1,773 |
Items excluded from core earnings: |
||
Market experience gains (losses)(1) |
(192) |
(133) |
Realized gains (losses) on debt instruments |
(43) |
(51) |
Derivatives and hedge accounting ineffectiveness |
40 |
34 |
Actual less expected long-term returns on public equity |
(113) |
182 |
Actual less expected long-term returns on ALDA |
(97) |
(381) |
Other investment results |
21 |
83 |
Changes in actuarial methods and assumptions that flow directly through income |
- |
119 |
Restructuring charge(2) |
(52) |
(36) |
Reinsurance transactions, tax-related items and other(3) |
(25) |
(64) |
Total items excluded from core earnings |
(269) |
(114) |
Net income (loss) attributed to shareholders |
$1,638 |
$1,659 |
Net income (loss) attributed to shareholders by segment |
Quarterly Results |
|
($ millions) |
4Q24 |
4Q23 |
Asia |
$583 |
$615 |
Canada |
439 |
365 |
U.S. |
103 |
198 |
Global Wealth and Asset Management |
384 |
365 |
Corporate and Other |
129 |
116 |
Total net income (loss) attributed to shareholders |
$1,638 |
$1,659 |
As at and for the quarters ended December 31,
($ millions, unless otherwise stated)
|
2024 |
2023 |
Asia APE sales |
$1,661 |
$995 |
Canada APE sales |
376 |
363 |
U.S. APE sales |
211 |
192 |
Total APE sales |
2,248 |
1,550 |
Asia new business value |
585 |
417 |
Canada new business value |
168 |
139 |
U.S. new business value |
89 |
74 |
Total new business value |
842 |
630 |
Asia new business CSM |
586 |
414 |
Canada new business CSM |
116 |
70 |
U.S. new business CSM |
140 |
142 |
Total new business CSM |
842 |
626 |
Asia CSM net of NCI |
15,540 |
12,617 |
Canada CSM |
4,109 |
4,060 |
U.S. CSM |
2,468 |
3,738 |
Corporate and Other CSM |
10 |
25 |
Total CSM net of NCI |
22,127 |
20,440 |
Post-tax CSM net of NCI |
19,682 |
17,748 |
Global WAM gross flows ($ billions) |
43.5 |
35.1 |
Global WAM net flows ($ billions) |
1.2 |
(1.3) |
Global WAM assets under management and administration ($ billions) |
1,031.1 |
849.2 |
Global WAM total invested assets ($ billions) |
9.7 |
7.1 |
Global WAM segregated funds net assets ($ billions) |
291.9 |
248.1 |
Total assets under management and administration ($ billions) |
1,608.0 |
1,388.8 |
Total invested assets ($ billions) |
442.5 |
417.2 |
Total net segregated funds net assets ($ billions) |
436.0 |
377.5 |
41 |
2024 Annual Report |
Management’s Discussion and Analysis |
43 |
2024 Annual Report |
Management’s Discussion and Analysis |
45 |
2024 Annual Report |
Management’s Discussion and Analysis |
47 |
2024 Annual Report |
Management’s Discussion and Analysis |
49 |
2024 Annual Report |
Management’s Discussion and Analysis |
51 |
2024 Annual Report |
Management’s Discussion and Analysis |
53 |
2024 Annual Report |
Management’s Discussion and Analysis |
Key Market & Liquidity Risk |
|||||
Public Equity
Risk
|
Interest Rate
and Spread
Risk
|
ALDA
Risk
|
Foreign Currency
Exchange Risk
|
Liquidity
Risk
|
|
Product design and pricing |
ü |
ü |
ü |
ü |
ü |
Variable annuity guarantee dynamic hedging |
ü |
ü |
ü |
ü |
|
Macro equity risk hedging |
ü |
ü |
ü |
||
Asset liability management |
ü |
ü |
ü |
ü |
ü |
Foreign currency exchange management |
ü |
ü |
|||
Liquidity risk management |
ü |
||||
55 |
2024 Annual Report |
Management’s Discussion and Analysis |
As at December 31,
($ millions, unless otherwise stated)
|
2024 |
2023 |
Cash and cash equivalents |
$25,789 |
$20,338 |
Marketable securities |
||
Government bonds (investment grade) |
80,891 |
77,191 |
Corporate bonds (investment grade) |
122,324 |
126,992 |
Securitized – ABS, CMBS, RMBS (investment grade) |
1,758 |
1,971 |
Public equities |
32,576 |
24,211 |
Total marketable assets |
237,549 |
230,365 |
Total cash and cash equivalents and marketable securities(1) |
$263,338 |
$250,703 |
As at December 31, 2024 |
Less than
1 year
|
1 to 3
years
|
3 to 5
years
|
Over 5
years
|
Total |
($ millions) | |||||
Long-term debt |
$- |
$2,829 |
$- |
$3,800 |
$6,629 |
Capital instruments |
- |
- |
- |
7,532 |
7,532 |
Derivatives |
2,320 |
2,304 |
1,244 |
8,379 |
14,247 |
Deposits from Bank clients(2) |
15,690 |
3,774 |
2,599 |
- |
22,063 |
Lease liabilities |
105 |
151 |
52 |
47 |
355 |
57 |
2024 Annual Report |
Management’s Discussion and Analysis |
2024 |
2023 |
||||||
As at December 31,
($ millions)
|
Guarantee
value(1)
|
Fund value |
Net amount
at risk(1),(2),(3)
|
Guarantee
value(1)
|
Fund value |
Net amount
at risk(1),(2),(3)
|
|
Guaranteed minimum income benefit |
$3,628 |
$2,780 |
$918 |
$3,864 |
$2,735 |
$1,156 |
|
Guaranteed minimum withdrawal benefit |
33,473 |
33,539 |
3,339 |
34,833 |
33,198 |
4,093 |
|
Guaranteed minimum accumulation benefit |
18,987 |
19,097 |
70 |
18,996 |
19,025 |
116 |
|
Gross living benefits(4) |
56,088 |
55,416 |
4,327 |
57,693 |
54,958 |
5,365 |
|
Gross death benefits(5) |
8,612 |
19,851 |
644 |
9,133 |
17,279 |
975 |
|
Total gross of reinsurance |
64,700 |
75,267 |
4,971 |
66,826 |
72,237 |
6,340 |
|
Living benefits reinsured |
23,768 |
23,965 |
3,016 |
24,208 |
23,146 |
3,395 |
|
Death benefits reinsured |
3,430 |
2,776 |
289 |
3,400 |
2,576 |
482 |
|
Total reinsured |
27,198 |
26,741 |
3,305 |
27,608 |
25,722 |
3,877 |
|
Total, net of reinsurance |
$37,502 |
$48,526 |
$1,666 |
$39,218 |
$46,515 |
$2,463 |
|
As at December 31, |
||
($ millions) |
2024 |
2023 |
Investment category |
||
Equity funds |
$51,457 |
$45,593 |
Balanced funds |
37,381 |
35,801 |
Bond funds |
9,017 |
8,906 |
Money market funds |
1,712 |
1,559 |
Other debt investments |
2,082 |
1,907 |
Total |
$101,649 |
$93,766 |
59 |
2024 Annual Report |
Management’s Discussion and Analysis |
As at December 31, 2024 |
Net income attributed to shareholders |
|||||
($ millions) |
-30% |
-20% |
-10% |
+10% |
+20% |
+30% |
Underlying sensitivity |
||||||
Variable annuity and segregated fund guarantees(2) |
$(2,050) |
$(1,240) |
$(560) |
$470 |
$860 |
$1,190 |
General fund equity investments(3) |
(1,240) |
(820) |
(400) |
390 |
780 |
1,180 |
Total underlying sensitivity before hedging |
(3,290) |
(2,060) |
(960) |
860 |
1,640 |
2,370 |
Impact of macro and dynamic hedge assets(4) |
720 |
430 |
190 |
(150) |
(260) |
(360) |
Net potential impact on net income attributed to shareholders |
||||||
after impact of hedging and before impact of reinsurance |
(2,570) |
(1,630) |
(770) |
710 |
1,380 |
2,010 |
Impact of reinsurance |
1,320 |
810 |
370 |
(320) |
(590) |
(830) |
Net potential impact on net income attributed to
shareholders after impact of hedging and reinsurance
|
$(1,250) |
$(820) |
$(400) |
$390 |
$790 |
$1,180 |
As at December 31, 2023 |
Net income attributed to shareholders |
|||||
($ millions) |
-30% |
-20% |
-10% |
+10% |
+20% |
+30% |
Underlying sensitivity |
||||||
Variable annuity and segregated fund guarantees(2) |
$(2,370) |
$(1,460) |
$(670) |
$550 |
$1,010 |
$1,390 |
General fund equity investments(3) |
(1,170) |
(770) |
(390) |
380 |
760 |
1,140 |
Total underlying sensitivity before hedging |
(3,540) |
(2,230) |
(1,060) |
930 |
1,770 |
2,530 |
Impact of macro and dynamic hedge assets(4) |
880 |
530 |
240 |
(190) |
(340) |
(460) |
Net potential impact on net income attributed to shareholders |
||||||
after impact of hedging and before impact of reinsurance |
(2,660) |
(1,700) |
(820) |
740 |
1,430 |
2,070 |
Impact of reinsurance |
1,470 |
900 |
420 |
(350) |
(650) |
(910) |
Net potential impact on net income attributed to
shareholders after impact of hedging and reinsurance
|
$(1,190) |
$(800) |
$(400) |
$390 |
$780 |
$1,160 |
As at December 31, 2024 |
||||||
($ millions) |
-30% |
-20% |
-10% |
+10% |
+20% |
+30% |
Variable annuity and segregated fund guarantees
reported in CSM
|
$(3,420) |
$(2,110) |
$(970) |
$840 |
$1,580 |
$2,250 |
Impact of risk mitigation - hedging(4) |
940 |
560 |
250 |
(190) |
(350) |
(470) |
Impact of risk mitigation - reinsurance(4) |
1,670 |
1,020 |
470 |
(400) |
(740) |
(1,050) |
VA net of risk mitigation |
(810) |
(530) |
(250) |
250 |
490 |
730 |
General fund equity |
(1,140) |
(740) |
(370) |
370 |
750 |
1,110 |
Contractual service margin ($ millions, pre-tax) |
$(1,950) |
$(1,270) |
$(620) |
$620 |
$1,240 |
$1,840 |
Other comprehensive income attributed to
shareholders ($ millions, post-tax)(5)
|
$(840) |
$(560) |
$(280) |
$270 |
$530 |
$790 |
Total comprehensive income attributed to
shareholders ($ millions, post-tax)
|
$(2,090) |
$(1,380) |
$(680) |
$660 |
$1,320 |
$1,970 |
MLI’s LICAT ratio (change in percentage points) |
(1) |
(1) |
- |
1 |
1 |
1 |
As at December 31, 2023 |
||||||
($ millions) |
-30% |
-20% |
-10% |
+10% |
+20% |
+30% |
Variable annuity and segregated fund guarantees
reported in CSM
|
$(3,810) |
$(2,370) |
$(1,100) |
$940 |
$1,760 |
$2,470 |
Impact of risk mitigation - hedging(4) |
1,150 |
700 |
310 |
(250) |
(450) |
(600) |
Impact of risk mitigation - reinsurance(4) |
1,850 |
1,140 |
530 |
(450) |
(830) |
(1,150) |
VA net of risk mitigation |
(810) |
(530) |
(260) |
240 |
480 |
720 |
General fund equity |
(940) |
(610) |
(300) |
290 |
590 |
870 |
Contractual service margin ($ millions, pre-tax) |
$(1,750) |
$(1,140) |
$(560) |
$530 |
$1,070 |
$1,590 |
Other comprehensive income attributed to
shareholders ($ millions, post-tax)(5)
|
$(730) |
$(490) |
$(240) |
$230 |
$460 |
$680 |
Total comprehensive income attributed to
shareholders ($ millions, post-tax)
|
$(1,920) |
$(1,290) |
$(640) |
$620 |
$1,240 |
$1,840 |
MLI’s LICAT ratio (change in percentage points) |
(3) |
(2) |
(1) |
1 |
2 |
2 |
61 |
2024 Annual Report |
Management’s Discussion and Analysis |
As at December 31, 2024 |
Interest rates |
Corporate spreads |
Swap spreads |
|||
($ millions, post-tax except CSM) |
-50bp |
+50bp |
-50bp |
+50bp |
-20bp |
+20bp |
CSM |
$100 |
$(200) |
$- |
$(100) |
$- |
$- |
Net income attributed to shareholders |
100 |
(100) |
100 |
(100) |
100 |
(100) |
Other comprehensive income attributed to shareholders |
(100) |
200 |
(200) |
300 |
(100) |
100 |
Total comprehensive income attributed to shareholders |
- |
100 |
(100) |
200 |
- |
- |
As at December 31, 2023 |
Interest rates |
Corporate spreads |
Swap spreads |
|||
($ millions, post-tax except CSM) |
-50bp |
+50bp |
-50bp |
+50bp |
-20bp |
+20bp |
CSM |
$- |
$(100) |
$- |
$(100) |
$- |
$- |
Net income attributed to shareholders |
100 |
(100) |
- |
- |
100 |
(100) |
Other comprehensive income attributed to shareholders |
(300) |
300 |
(200) |
300 |
(100) |
100 |
Total comprehensive income attributed to shareholders |
(200) |
200 |
(200) |
300 |
- |
- |
As at December 31, 2024 |
Interest rates |
Corporate spreads |
Swap spreads |
|||
(change in percentage points) |
-50bp |
+50bp |
-50bp |
+50bp |
-20bp |
+20bp |
MLI’s LICAT ratio |
- |
- |
(3) |
3 |
- |
- |
As at December 31, 2023 |
Interest rates |
Corporate spreads |
Swap spreads |
|||
(change in percentage points) |
-50bp |
+50bp |
-50bp |
+50bp |
-20bp |
+20bp |
MLI’s LICAT ratio |
- |
- |
(4) |
4 |
- |
- |
As at |
December 31, 2024 |
December 31, 2023 |
||
($ millions, post-tax except CSM) |
-10% |
+10% |
-10% |
+10% |
CSM excluding NCI |
$(200) |
$200 |
$(100) |
$100 |
Net income attributed to shareholders(2) |
(2,500) |
2,500 |
(2,400) |
2,400 |
Other comprehensive income attributed to shareholders |
(200) |
200 |
(200) |
200 |
Total comprehensive income attributed to shareholders |
(2,700) |
2,700 |
(2,600) |
2,600 |
December 31, 2024 |
December 31, 2023 |
|||
(change in percentage points) |
-10% |
+10% |
-10% |
+10% |
MLI’s LICAT ratio |
(1) |
1 |
(2) |
2 |
63 |
2024 Annual Report |
Management’s Discussion and Analysis |
2024 |
2023 |
||||
As at December 31,
($ millions)
|
+10%
strengthening
|
-10%
weakening
|
+10%
strengthening
|
-10%
weakening
|
|
10% change in the Canadian dollar relative to the U.S. dollar and the Hong Kong dollar |
$(450) |
$450 |
$(390) |
$390 |
|
10% change in the Canadian dollar relative to the Japanese yen |
(50) |
50 |
(40) |
40 |
|
65 |
2024 Annual Report |
Management’s Discussion and Analysis |
67 |
2024 Annual Report |
Management’s Discussion and Analysis |
69 |
2024 Annual Report |
Management’s Discussion and Analysis |
•product design features
•use of reinsurance
•pricing models and software
•internal risk based capital allocations
•target profit objectives
|
•pricing methods and assumption setting
•stochastic and stress scenario testing
•required documentation
•review and approval processes
•experience monitoring programs
|
71 |
2024 Annual Report |
Management’s Discussion and Analysis |
73 |
2024 Annual Report |
Management’s Discussion and Analysis |
75 |
2024 Annual Report |
Management’s Discussion and Analysis |
77 |
2024 Annual Report |
Management’s Discussion and Analysis |
79 |
2024 Annual Report |
Management’s Discussion and Analysis |
($ millions) |
Par value |
Issued(1) |
Redeemed/
Matured(1)
|
4.064% MFC Subordinated debenture, issued on Dec 6, 2024 |
$1,000 |
$995 |
$- |
4.275% MFC Subordinated debenture, issued on June 19, 2024 |
S$500 |
524 |
- |
5.054% MFC Subordinated debenture, issued on Feb 23, 2024 |
1,100 |
1,095 |
- |
7.375% JHUSA Surplus notes, redeemed on Feb 15, 2024 |
US$450 |
- |
594 |
3.049% MFC Subordinated debenture, redeemed on Aug 20, 2024 |
750 |
- |
750 |
3.000% MFC Subordinated debenture, redeemed on Nov 21, 2024 |
S$500 |
- |
527 |
Total |
$2,614 |
$1,871 |
As at December 31, |
||
($ millions) |
2024 |
2023 |
Non-controlling interests |
$1,421 |
$1,431 |
Participating policyholders’ equity |
567 |
257 |
Preferred shares and other equity |
6,660 |
6,660 |
Common shareholders’ equity(1) |
44,312 |
40,379 |
Total equity |
52,960 |
48,727 |
Exclude the accumulated other comprehensive gain/(loss) on cash flow hedges |
119 |
26 |
Total equity excluding accumulated other comprehensive gain/(loss) on cash flow hedges |
52,841 |
48,701 |
Post-tax CSM |
20,826 |
18,503 |
Qualifying capital instruments |
7,532 |
6,667 |
Consolidated capital(2) |
$81,199 |
$73,871 |
For the years ended December 31, |
||
$ per share |
2024 |
2023 |
Dividends paid |
$1.60 |
$1.46 |
81 |
2024 Annual Report |
Management’s Discussion and Analysis |
Subsidiary |
Jurisdiction |
S&P |
Moody’s |
Morningstar DBRS |
Fitch |
AM Best |
The Manufacturers Life Insurance Company |
Canada |
AA- |
A1 |
AA |
AA |
A+
(Superior)
|
John Hancock Life Insurance Company (U.S.A.) |
United States |
AA- |
A1 |
Not Rated |
AA |
A+
(Superior)
|
Manulife (International) Limited |
Hong Kong |
AA- |
Not Rated |
Not Rated |
Not Rated |
Not Rated |
Manulife Life Insurance Company |
Japan |
A+ |
Not Rated |
Not Rated |
Not Rated |
Not Rated |
Manulife (Singapore) Pte. Ltd. |
Singapore |
AA- |
Not Rated |
Not Rated |
Not Rated |
Not Rated |
83 |
2024 Annual Report |
Management’s Discussion and Analysis |
As at December 31, 2024 |
CSM net of NCI |
Net income attributed to
shareholders
|
Other comprehensive
income attributed to
shareholders
|
Total comprehensive
income attributed to
shareholders
|
||||
($ millions, post-tax except CSM) |
Gross |
Net |
Gross |
Net |
Gross |
Net |
Gross |
Net |
Policy related assumptions |
||||||||
2% adverse change in future mortality rates(2),(3),(5) |
||||||||
Portfolios where an increase in rates increases
insurance contract liabilities
|
$(700) |
$(200) |
$(700) |
$(300) |
$200 |
$100 |
$(500) |
$(200) |
Portfolios where a decrease in rates increases
insurance contract liabilities
|
(100) |
(600) |
- |
- |
100 |
200 |
100 |
200 |
5% adverse change in future morbidity rates(4),(5),(6)
(incidence and termination)
|
(2,200) |
(1,800) |
(3,000) |
(2,700) |
700 |
600 |
(2,300) |
(2,100) |
10% change in future policy termination rates(3),(5) |
||||||||
Portfolios where an increase in rates increases
insurance contract liabilities
|
(700) |
(600) |
(100) |
(100) |
(200) |
(200) |
(300) |
(300) |
Portfolios where a decrease in rates increases
insurance contract liabilities
|
(900) |
(700) |
(700) |
(400) |
400 |
300 |
(300) |
(100) |
5% increase in future expense levels |
(600) |
(600) |
(100) |
(100) |
100 |
100 |
- |
- |
As at December 31, 2023 |
CSM net of NCI |
Net income attributed to
shareholders
|
Other comprehensive
income attributed to
shareholders
|
Total comprehensive
income attributed to
shareholders
|
||||
($ millions, post-tax except CSM) |
Gross |
Net |
Gross |
Net |
Gross |
Net |
Gross |
Net |
Policy related assumptions |
||||||||
2% adverse change in future mortality rates(2),(3),(5) |
||||||||
Portfolios where an increase in rates increases
insurance contract liabilities
|
$(800) |
$(200) |
$(400) |
$(200) |
$- |
$- |
$(400) |
$(200) |
Portfolios where a decrease in rates increases
insurance contract liabilities
|
- |
(500) |
- |
- |
- |
100 |
- |
100 |
5% adverse change in future morbidity rates(4),(5),(6)
(incidence and termination)
|
(1,500) |
(1,300) |
(3,300) |
(3,300) |
500 |
400 |
(2,800) |
(2,900) |
10% change in future policy termination rates(3),(5) |
||||||||
Portfolios where an increase in rates increases
insurance contract liabilities
|
(600) |
(500) |
(100) |
(100) |
(100) |
(100) |
(200) |
(200) |
Portfolios where a decrease in rates increases
insurance contract liabilities
|
(1,200) |
(800) |
(400) |
(300) |
300 |
200 |
(100) |
(100) |
5% increase in future expense levels |
(600) |
(600) |
- |
- |
- |
- |
- |
- |
85 |
2024 Annual Report |
Management’s Discussion and Analysis |
As at December 31, 2024 |
CSM net of NCI |
Net income attributed to
shareholders
|
Other comprehensive
income attributed to
shareholders
|
Total comprehensive
income attributed to
shareholders
|
||||
($ millions, post-tax except CSM) |
Gross |
Net |
Gross |
Net |
Gross |
Net |
Gross |
Net |
Policy related assumptions |
||||||||
2% adverse change in future mortality rates(2),(3) |
$(300) |
$(300) |
$- |
$- |
$- |
$- |
$- |
$- |
5% adverse change in future morbidity incidence
rates(2),(3)
|
(1,400) |
(1,300) |
(500) |
(400) |
200 |
200 |
(300) |
(200) |
5% adverse change in future morbidity claims
termination rates(2),(3)
|
(1,400) |
(1,300) |
(1,300) |
(1,100) |
500 |
400 |
(800) |
(700) |
10% adverse change in future policy termination
rates(2),(3)
|
(400) |
(400) |
- |
- |
100 |
100 |
100 |
100 |
5% increase in future expense levels(3) |
(100) |
(100) |
- |
- |
- |
- |
- |
- |
As at December 31, 2023 |
CSM net of NCI |
Net income attributed to
shareholders
|
Other comprehensive
income attributed to
shareholders
|
Total comprehensive
income attributed to
shareholders
|
||||
($ millions, post-tax except CSM) |
Gross |
Net |
Gross |
Net |
Gross |
Net |
Gross |
Net |
Policy related assumptions |
||||||||
2% adverse change in future mortality rates(2),(3) |
$(300) |
$(300) |
$- |
$- |
$- |
$- |
$- |
$- |
5% adverse change in future morbidity incidence
rates(2),(3)
|
(900) |
(900) |
(800) |
(800) |
100 |
100 |
(700) |
(700) |
5% adverse change in future morbidity claims
termination rates(2),(3)
|
(900) |
(900) |
(1,600) |
(1,600) |
200 |
200 |
(1,400) |
(1,400) |
10% adverse change in future policy termination
rates(2),(3)
|
(400) |
(400) |
- |
- |
- |
- |
- |
- |
5% increase in future expense levels(3) |
(100) |
(100) |
- |
- |
- |
- |
- |
- |
As at December 31, 2024
($ millions, post-tax except CSM)
|
CSM net of NCI |
Net income
attributed to
shareholders
|
Other
comprehensive
income attributed to
shareholders
|
Total
comprehensive
income attributed to
shareholders
|
||||
Financial assumptions |
||||||||
10 basis point reduction in ultimate spot rate |
$(300) |
$- |
$(200) |
$(200) |
||||
50 basis point increase in interest rate volatility(2) |
(100) |
- |
- |
- |
||||
50 basis point increase in non-fixed income return volatility(2) |
(100) |
- |
- |
- |
||||
As at December 31, 2023
($ millions, post-tax except CSM)
|
CSM net of NCI |
Net income
attributed to
shareholders
|
Other
comprehensive
income attributed to
shareholders
|
Total
comprehensive
income attributed to
shareholders
|
||||
Financial assumptions |
||||||||
10 basis point reduction in ultimate spot rate |
$(200) |
$- |
$(300) |
$(300) |
||||
50 basis point increase in interest rate volatility(2) |
- |
- |
- |
- |
||||
50 basis point increase in non-fixed income return volatility(2) |
(100) |
- |
- |
- |
||||
For the year ended December 31, 2024
($ millions)
|
Total |
Lapse and policyholder behaviour updates |
$620 |
Reinsurance contract and other risk adjustment review |
427 |
Expense updates |
(406) |
Financial related updates |
(386) |
Mortality and morbidity updates |
(273) |
Methodology and other updates |
(156) |
Impact of changes in actuarial methods and assumptions, pre-tax |
$(174) |
For the year ended December 31, 2024
($ millions)
|
Total |
Portion recognized in net income (loss) attributed to: |
|
Participating policyholders |
$29 |
Shareholders |
(250) |
(221) |
|
Portion recognized in OCI attributed to: |
|
Participating policyholders |
45 |
Shareholders |
771 |
816 |
|
Portion recognized in CSM |
(421) |
Impact of changes in actuarial methods and assumptions, pre-tax |
$174 |
87 |
2024 Annual Report |
Management’s Discussion and Analysis |
($ millions) |
For the three and nine
months ended
September 30, 2023
|
For the three months
ended December 31,
2023
|
For the year ended
December 31, 2023
|
|||
Canada variable annuity product review |
$(133) |
$- |
$(133) |
|||
Mortality and morbidity updates |
265 |
- |
265 |
|||
Lapse and policyholder behaviour updates |
98 |
- |
98 |
|||
Methodology and other updates |
(577) |
- |
(577) |
|||
Risk adjustment review |
- |
(2,850) |
(2,850) |
|||
Impact of changes in actuarial methods and assumptions, pre-tax |
$(347) |
$(2,850) |
$(3,197) |
|||
($ millions) |
For the three and nine
months ended
September 30, 2023
|
For the three months
ended December 31,
2023
|
For the year ended
December 31, 2023
|
|||
Portion recognized in net income (loss) attributed to: |
||||||
Participating policyholders |
$58 |
$115 |
$173 |
|||
Shareholders |
27 |
144 |
171 |
|||
85 |
259 |
344 |
||||
Portion recognized in OCI attributed to: |
||||||
Participating policyholders |
- |
(21) |
(21) |
|||
Shareholders |
146 |
(26) |
120 |
|||
146 |
(47) |
99 |
||||
Portion recognized in CSM |
116 |
2,638 |
2,754 |
|||
Impact of changes in actuarial methods and assumptions, pre-tax |
$347 |
$2,850 |
$3,197 |
|||
89 |
2024 Annual Report |
Management’s Discussion and Analysis |
91 |
2024 Annual Report |
Management’s Discussion and Analysis |
93 |
2024 Annual Report |
Management’s Discussion and Analysis |
95 |
2024 Annual Report |
Management’s Discussion and Analysis |
2024 |
||||||
Asia |
Canada |
U.S. |
Global WAM |
Corporate
and Other
|
Total |
|
Income (loss) before income taxes |
$3,197 |
$1,679 |
$132 |
$1,747 |
$335 |
$7,090 |
Income tax (expenses) recoveries |
||||||
Core earnings |
(267) |
(399) |
(408) |
(171) |
(21) |
(1,266) |
Items excluded from core earnings |
(193) |
46 |
411 |
23 |
(233) |
54 |
Income tax (expenses) recoveries |
(460) |
(353) |
3 |
(148) |
(254) |
(1,212) |
Net income (post-tax) |
2,737 |
1,326 |
135 |
1,599 |
81 |
5,878 |
Less: Net income (post-tax) attributed to |
||||||
Non-controlling interests |
241 |
- |
- |
2 |
4 |
247 |
Participating policyholders |
141 |
105 |
- |
- |
- |
246 |
Net income (loss) attributed to shareholders (post-tax) |
2,355 |
1,221 |
135 |
1,597 |
77 |
5,385 |
Less: Items excluded from core earnings (post-tax) |
||||||
Market experience gains (losses) |
(178) |
(384) |
(1,327) |
4 |
435 |
(1,450) |
Changes in actuarial methods and assumptions that
flow directly through income
|
(5) |
2 |
(202) |
- |
6 |
(199) |
Restructuring charge |
- |
(6) |
- |
(66) |
- |
(72) |
Reinsurance transactions, tax-related items and other |
(51) |
41 |
(26) |
(77) |
(7) |
(120) |
Core earnings (post-tax) |
$2,589 |
$1,568 |
$1,690 |
$1,736 |
$(357) |
$7,226 |
Income tax on core earnings (see above) |
267 |
399 |
408 |
171 |
21 |
1,266 |
Core earnings (pre-tax) |
$2,856 |
$1,967 |
$2,098 |
$1,907 |
$(336) |
$8,492 |
2024 |
||||||
Asia |
Canada |
U.S. |
Global WAM |
Corporate
and Other
|
Total |
|
Core earnings (post-tax) |
$2,589 |
$1,568 |
$1,690 |
$1,736 |
$(357) |
$7,226 |
CER adjustment(1) |
51 |
- |
36 |
27 |
4 |
118 |
Core earnings, CER basis (post-tax) |
$2,640 |
$1,568 |
$1,726 |
$1,763 |
$(353) |
$7,344 |
Income tax on core earnings, CER basis(2) |
272 |
399 |
417 |
171 |
21 |
1,280 |
Core earnings, CER basis (pre-tax) |
$2,912 |
$1,967 |
$2,143 |
$1,934 |
$(332) |
$8,624 |
Core earnings (U.S. dollars) – Asia and U.S. segments |
||||||
Core earnings (post-tax)(3), US $ |
$1,890 |
$1,234 |
||||
CER adjustment US $(1) |
(1) |
- |
||||
Core earnings, CER basis (post-tax), US $ |
$1,889 |
$1,234 |
||||
97 |
2024 Annual Report |
Management’s Discussion and Analysis |
2023 |
||||||
Asia |
Canada |
U.S. |
Global WAM |
Corporate
and Other
|
Total |
|
Income (loss) before income taxes |
$2,244 |
$1,609 |
$751 |
$1,497 |
$351 |
$6,452 |
Income tax (expenses) recoveries |
||||||
Core earnings |
(279) |
(378) |
(402) |
(204) |
99 |
(1,164) |
Items excluded from core earnings |
(161) |
5 |
290 |
6 |
179 |
319 |
Income tax (expenses) recoveries |
(440) |
(373) |
(112) |
(198) |
278 |
(845) |
Net income (post-tax) |
1,804 |
1,236 |
639 |
1,299 |
629 |
5,607 |
Less: Net income (post-tax) attributed to |
||||||
Non-controlling interests |
141 |
- |
- |
2 |
1 |
144 |
Participating policyholders |
315 |
45 |
- |
- |
- |
360 |
Net income (loss) attributed to shareholders (post-tax) |
1,348 |
1,191 |
639 |
1,297 |
628 |
5,103 |
Less: Items excluded from core earnings (post-tax) |
||||||
Market experience gains (losses) |
(553) |
(341) |
(1,196) |
10 |
290 |
(1,790) |
Changes in actuarial methods and assumptions that
flow directly through income
|
(68) |
41 |
132 |
- |
- |
105 |
Restructuring charge |
- |
- |
- |
(36) |
- |
(36) |
Reinsurance transactions, tax-related items and other |
(79) |
4 |
(56) |
2 |
269 |
140 |
Core earnings (post-tax) |
$2,048 |
$1,487 |
$1,759 |
$1,321 |
$69 |
$6,684 |
Income tax on core earnings (see above) |
279 |
378 |
402 |
204 |
(99) |
1,164 |
Core earnings (pre-tax) |
$2,327 |
$1,865 |
$2,161 |
$1,525 |
$(30) |
$7,848 |
2023 |
||||||
Asia |
Canada |
U.S. |
Global WAM |
Corporate
and Other
|
Total |
|
Core earnings (post-tax) |
$2,048 |
$1,487 |
$1,759 |
$1,321 |
$69 |
$6,684 |
CER adjustment(1) |
26 |
- |
65 |
32 |
9 |
132 |
Core earnings, CER basis (post-tax) |
$2,074 |
$1,487 |
$1,824 |
$1,353 |
$78 |
$6,816 |
Income tax on core earnings, CER basis(2) |
280 |
378 |
416 |
206 |
(99) |
1,181 |
Core earnings, CER basis (pre-tax) |
$2,354 |
$1,865 |
$2,240 |
$1,559 |
$(21) |
$7,997 |
Core earnings (U.S. dollars) – Asia and U.S. segments |
||||||
Core earnings (post-tax)(3), US $ |
$1,518 |
$1,304 |
||||
CER adjustment US $(1) |
(34) |
- |
||||
Core earnings, CER basis (post-tax), US $ |
$1,484 |
$1,304 |
||||
4Q24 |
||||||
Asia |
Canada |
U.S. |
Global WAM |
Corporate
and Other
|
Total |
|
Income (loss) before income taxes |
$781 |
$579 |
$112 |
$419 |
$222 |
$2,113 |
Income tax (expenses) recoveries |
||||||
Core earnings |
(71) |
(97) |
(98) |
(61) |
(18) |
(345) |
Items excluded from core earnings |
(85) |
(20) |
89 |
26 |
(71) |
(61) |
Income tax (expenses) recoveries |
(156) |
(117) |
(9) |
(35) |
(89) |
(406) |
Net income (post-tax) |
625 |
462 |
103 |
384 |
133 |
1,707 |
Less: Net income (post-tax) attributed to |
||||||
Non-controlling interests |
18 |
- |
- |
- |
4 |
22 |
Participating policyholders |
24 |
23 |
- |
- |
- |
47 |
Net income (loss) attributed to shareholders (post-tax) |
583 |
439 |
103 |
384 |
129 |
1,638 |
Less: Items excluded from core earnings (post-tax) |
||||||
Market experience gains (losses) |
(83) |
55 |
(309) |
(23) |
168 |
(192) |
Changes in actuarial methods and assumptions that
flow directly through income
|
- |
- |
- |
- |
- |
- |
Restructuring charge |
- |
(6) |
- |
(46) |
- |
(52) |
Reinsurance transactions, tax-related items and other |
- |
- |
- |
(28) |
3 |
(25) |
Core earnings (post-tax) |
$666 |
$390 |
$412 |
$481 |
$(42) |
$1,907 |
Income tax on core earnings (see above) |
71 |
97 |
98 |
61 |
18 |
345 |
Core earnings (pre-tax) |
$737 |
$487 |
$510 |
$542 |
$(24) |
$2,252 |
4Q24 |
||||||
Asia |
Canada |
U.S. |
Global WAM |
Corporate
and Other
|
Total |
|
Core earnings (post-tax) |
$666 |
$390 |
$412 |
$481 |
$(42) |
$1,907 |
CER adjustment(1) |
- |
- |
- |
- |
- |
- |
Core earnings, CER basis (post-tax) |
$666 |
$390 |
$412 |
$481 |
$(42) |
$1,907 |
Income tax on core earnings, CER basis(2) |
71 |
97 |
98 |
61 |
18 |
345 |
Core earnings, CER basis (pre-tax) |
$737 |
$487 |
$510 |
$542 |
$(24) |
$2,252 |
Core earnings (U.S. dollars) – Asia and U.S. segments |
||||||
Core earnings (post-tax)(3), US $ |
$477 |
$294 |
||||
CER adjustment US $(1) |
- |
- |
||||
Core earnings, CER basis (post-tax), US $ |
$477 |
$294 |
||||
99 |
2024 Annual Report |
Management’s Discussion and Analysis |
3Q24 |
||||||
Asia |
Canada |
U.S. |
Global WAM |
Corporate
and Other
|
Total |
|
Income (loss) before income taxes |
$1,059 |
$578 |
$18 |
$519 |
$167 |
$2,341 |
Income tax (expenses) recoveries |
||||||
Core earnings |
(65) |
(104) |
(112) |
(6) |
(28) |
(315) |
Items excluded from core earnings |
26 |
(10) |
99 |
(14) |
(60) |
41 |
Income tax (expenses) recoveries |
(39) |
(114) |
(13) |
(20) |
(88) |
(274) |
Net income (post-tax) |
1,020 |
464 |
5 |
499 |
79 |
2,067 |
Less: Net income (post-tax) attributed to |
||||||
Non-controlling interests |
130 |
- |
- |
1 |
- |
131 |
Participating policyholders |
63 |
34 |
- |
- |
- |
97 |
Net income (loss) attributed to shareholders (post-tax) |
827 |
430 |
5 |
498 |
79 |
1,839 |
Less: Items excluded from core earnings (post-tax) |
||||||
Market experience gains (losses) |
213 |
16 |
(204) |
28 |
133 |
186 |
Changes in actuarial methods and assumptions that
flow directly through income
|
(5) |
2 |
(202) |
- |
6 |
(199) |
Restructuring charge |
- |
- |
- |
(20) |
- |
(20) |
Reinsurance transactions, tax-related items and other |
- |
- |
- |
(9) |
53 |
44 |
Core earnings (post-tax) |
$619 |
$412 |
$411 |
$499 |
$(113) |
$1,828 |
Income tax on core earnings (see above) |
65 |
104 |
112 |
6 |
28 |
315 |
Core earnings (pre-tax) |
$684 |
$516 |
$523 |
$505 |
$(85) |
$2,143 |
3Q24 |
||||||
Asia |
Canada |
U.S. |
Global WAM |
Corporate
and Other
|
Total |
|
Core earnings (post-tax) |
$619 |
$412 |
$411 |
$499 |
$(113) |
$1,828 |
CER adjustment(1) |
12 |
- |
11 |
10 |
1 |
34 |
Core earnings, CER basis (post-tax) |
$631 |
$412 |
$422 |
$509 |
$(112) |
$1,862 |
Income tax on core earnings, CER basis(2) |
66 |
104 |
115 |
5 |
28 |
318 |
Core earnings, CER basis (pre-tax) |
$697 |
$516 |
$537 |
$514 |
$(84) |
$2,180 |
Core earnings (U.S. dollars) – Asia and U.S. segments |
||||||
Core earnings (post-tax)(3), US $ |
$453 |
$302 |
||||
CER adjustment US $(1) |
(2) |
- |
||||
Core earnings, CER basis (post-tax), US $ |
$451 |
$302 |
||||
2Q24 |
||||||
Asia |
Canada |
U.S. |
Global WAM |
Corporate
and Other
|
Total |
|
Income (loss) before income taxes |
$763 |
$141 |
$156 |
$383 |
$(59) |
$1,384 |
Income tax (expenses) recoveries |
||||||
Core earnings |
(64) |
(107) |
(95) |
(46) |
(8) |
(320) |
Items excluded from core earnings |
(51) |
68 |
74 |
14 |
(37) |
68 |
Income tax (expenses) recoveries |
(115) |
(39) |
(21) |
(32) |
(45) |
(252) |
Net income (post-tax) |
648 |
102 |
135 |
351 |
(104) |
1,132 |
Less: Net income (post-tax) attributed to |
||||||
Non-controlling interests |
38 |
- |
- |
1 |
- |
39 |
Participating policyholders |
28 |
23 |
- |
- |
- |
51 |
Net income (loss) attributed to shareholders (post-tax) |
582 |
79 |
135 |
350 |
(104) |
1,042 |
Less: Items excluded from core earnings (post-tax) |
||||||
Market experience gains (losses) |
(58) |
(364) |
(280) |
(7) |
44 |
(665) |
Changes in actuarial methods and assumptions that
flow directly through income
|
- |
- |
- |
- |
- |
- |
Restructuring charge |
- |
- |
- |
- |
- |
- |
Reinsurance transactions, tax-related items and other |
(7) |
41 |
- |
(42) |
(22) |
(30) |
Core earnings (post-tax) |
$647 |
$402 |
$415 |
$399 |
$(126) |
$1,737 |
Income tax on core earnings (see above) |
64 |
107 |
95 |
46 |
8 |
320 |
Core earnings (pre-tax) |
$711 |
$509 |
$510 |
$445 |
$(118) |
$2,057 |
2Q24 |
||||||
Asia |
Canada |
U.S. |
Global WAM |
Corporate
and Other
|
Total |
|
Core earnings (post-tax) |
$647 |
$402 |
$415 |
$399 |
$(126) |
$1,737 |
CER adjustment(1) |
18 |
1 |
8 |
8 |
1 |
36 |
Core earnings, CER basis (post-tax) |
$665 |
$403 |
$423 |
$407 |
$(125) |
$1,773 |
Income tax on core earnings, CER basis(2) |
66 |
107 |
98 |
46 |
8 |
325 |
Core earnings, CER basis (pre-tax) |
$731 |
$510 |
$521 |
$453 |
$(117) |
$2,098 |
Core earnings (U.S. dollars) – Asia and U.S. segments |
||||||
Core earnings (post-tax)(3), US $ |
$472 |
$303 |
||||
CER adjustment US $(1) |
4 |
(1) |
||||
Core earnings, CER basis (post-tax), US $ |
$476 |
$302 |
||||
101 |
2024 Annual Report |
Management’s Discussion and Analysis |
1Q24 |
||||||
Asia |
Canada |
U.S. |
Global WAM |
Corporate
and Other
|
Total |
|
Income (loss) before income taxes |
$594 |
$381 |
$(154) |
$426 |
$5 |
$1,252 |
Income tax (expenses) recoveries |
||||||
Core earnings |
(67) |
(91) |
(103) |
(58) |
33 |
(286) |
Items excluded from core earnings |
(83) |
8 |
149 |
(3) |
(65) |
6 |
Income tax (expenses) recoveries |
(150) |
(83) |
46 |
(61) |
(32) |
(280) |
Net income (post-tax) |
444 |
298 |
(108) |
365 |
(27) |
972 |
Less: Net income (post-tax) attributed to |
||||||
Non-controlling interests |
55 |
- |
- |
- |
- |
55 |
Participating policyholders |
26 |
25 |
- |
- |
- |
51 |
Net income (loss) attributed to shareholders (post-tax) |
363 |
273 |
(108) |
365 |
(27) |
866 |
Less: Items excluded from core earnings (post-tax) |
||||||
Market experience gains (losses) |
(250) |
(91) |
(534) |
6 |
90 |
(779) |
Changes in actuarial methods and assumptions that
flow directly through income
|
- |
- |
- |
- |
- |
- |
Restructuring charge |
- |
- |
- |
- |
- |
- |
Reinsurance transactions, tax-related items and other |
(44) |
- |
(26) |
2 |
(41) |
(109) |
Core earnings (post-tax) |
$657 |
$364 |
$452 |
$357 |
$(76) |
$1,754 |
Income tax on core earnings (see above) |
67 |
91 |
103 |
58 |
(33) |
286 |
Core earnings (pre-tax) |
$724 |
$455 |
$555 |
$415 |
$(109) |
$2,040 |
1Q24 |
||||||
Asia |
Canada |
U.S. |
Global WAM |
Corporate
and Other
|
Total |
|
Core earnings (post-tax) |
$657 |
$364 |
$452 |
$357 |
$(76) |
$1,754 |
CER adjustment(1) |
21 |
- |
17 |
9 |
1 |
48 |
Core earnings, CER basis (post-tax) |
$678 |
$364 |
$469 |
$366 |
$(75) |
$1,802 |
Income tax on core earnings, CER basis(2) |
69 |
91 |
106 |
59 |
(33) |
292 |
Core earnings, CER basis (pre-tax) |
$747 |
$455 |
$575 |
$425 |
$(108) |
$2,094 |
Core earnings (U.S. dollars) – Asia and U.S. segments |
||||||
Core earnings (post-tax)(3), US $ |
$488 |
$335 |
||||
CER adjustment US $(1) |
(3) |
- |
||||
Core earnings, CER basis (post-tax), US $ |
$485 |
$335 |
||||
4Q23 |
||||||
Asia |
Canada |
U.S. |
Global WAM |
Corporate
and Other
|
Total |
|
Income (loss) before income taxes |
$847 |
$498 |
$244 |
$424 |
$110 |
$2,123 |
Income tax (expenses) recoveries |
||||||
Core earnings |
(76) |
(87) |
(113) |
(55) |
37 |
(294) |
Items excluded from core earnings |
(33) |
(29) |
67 |
(3) |
(30) |
(28) |
Income tax (expenses) recoveries |
(109) |
(116) |
(46) |
(58) |
7 |
(322) |
Net income (post-tax) |
738 |
382 |
198 |
366 |
117 |
1,801 |
Less: Net income (post-tax) attributed to |
||||||
Non-controlling interests |
37 |
- |
- |
1 |
1 |
39 |
Participating policyholders |
86 |
17 |
- |
- |
- |
103 |
Net income (loss) attributed to shareholders (post-tax) |
615 |
365 |
198 |
365 |
116 |
1,659 |
Less: Items excluded from core earnings (post-tax) |
||||||
Market experience gains (losses) |
- |
9 |
(279) |
51 |
86 |
(133) |
Changes in actuarial methods and assumptions that
flow directly through income
|
89 |
4 |
26 |
- |
- |
119 |
Restructuring charge |
- |
- |
- |
(36) |
- |
(36) |
Reinsurance transactions, tax-related items and other |
(38) |
- |
(23) |
(3) |
- |
(64) |
Core earnings (post-tax) |
$564 |
$352 |
$474 |
$353 |
$30 |
$1,773 |
Income tax on core earnings (see above) |
76 |
87 |
113 |
55 |
(37) |
294 |
Core earnings (pre-tax) |
$640 |
$439 |
$587 |
$408 |
$(7) |
$2,067 |
4Q23 |
||||||
Asia |
Canada |
U.S. |
Global WAM |
Corporate
and Other
|
Total |
|
Core earnings (post-tax) |
$564 |
$352 |
$474 |
$353 |
$30 |
$1,773 |
CER adjustment(1) |
11 |
- |
13 |
7 |
3 |
34 |
Core earnings, CER basis (post-tax) |
$575 |
$352 |
$487 |
$360 |
$33 |
$1,807 |
Income tax on core earnings, CER basis(2) |
78 |
87 |
116 |
56 |
(38) |
299 |
Core earnings, CER basis (pre-tax) |
$653 |
$439 |
$603 |
$416 |
$(5) |
$2,106 |
Core earnings (U.S. dollars) – Asia and U.S. segments |
||||||
Core earnings (post-tax)(3), US $ |
$414 |
$349 |
||||
CER adjustment US $(1) |
(3) |
(1) |
||||
Core earnings, CER basis (post-tax), US $ |
$411 |
$348 |
||||
103 |
2024 Annual Report |
Management’s Discussion and Analysis |
Quarterly Results |
Full Year Results |
||||||
(US $ millions) |
4Q24 |
3Q24 |
2Q24 |
1Q24 |
4Q23 |
2024 |
2023 |
Hong Kong |
$254 |
$254 |
$243 |
$241 |
$218 |
$992 |
$728 |
Japan |
87 |
81 |
92 |
102 |
79 |
362 |
309 |
Asia Other(1) |
147 |
127 |
145 |
151 |
119 |
570 |
494 |
International High Net Worth |
114 |
72 |
|||||
Mainland China |
41 |
49 |
|||||
Singapore |
216 |
161 |
|||||
Vietnam |
126 |
133 |
|||||
Other Emerging Markets(2) |
73 |
79 |
|||||
Regional Office |
(11) |
(9) |
(8) |
(6) |
(2) |
(34) |
(13) |
Total Asia core earnings |
$477 |
$453 |
$472 |
$488 |
$414 |
$1,890 |
$1,518 |
Quarterly Results |
Full Year Results |
||||||
(US $ millions), CER basis(1) |
4Q24 |
3Q24 |
2Q24 |
1Q24 |
4Q23 |
2024 |
2023 |
Hong Kong |
$254 |
$254 |
$243 |
$241 |
$217 |
$992 |
$727 |
Japan |
87 |
79 |
94 |
100 |
76 |
360 |
286 |
Asia Other(2) |
147 |
127 |
147 |
150 |
120 |
571 |
484 |
International High Net Worth |
114 |
72 |
|||||
Mainland China |
41 |
48 |
|||||
Singapore |
216 |
163 |
|||||
Vietnam |
126 |
127 |
|||||
Other Emerging Markets(3) |
74 |
74 |
|||||
Regional Office |
(11) |
(9) |
(8) |
(6) |
(2) |
(34) |
(13) |
Total Asia core earnings, CER basis |
$477 |
$451 |
$476 |
$485 |
$411 |
$1,889 |
$1,484 |
Quarterly Results |
Full Year Results |
||||||
(Canadian $ in millions) |
4Q24 |
3Q24 |
2Q24 |
1Q24 |
4Q23 |
2024 |
2023 |
Insurance |
$295 |
$320 |
$307 |
$266 |
$258 |
$1,188 |
$1,101 |
Annuities |
51 |
51 |
55 |
53 |
48 |
210 |
204 |
Manulife Bank |
44 |
41 |
40 |
45 |
46 |
170 |
182 |
Total Canada core earnings |
$390 |
$412 |
$402 |
$364 |
$352 |
$1,568 |
$1,487 |
Quarterly Results |
Full Year Results |
||||||
(US $ in millions) |
4Q24 |
3Q24 |
2Q24 |
1Q24 |
4Q23 |
2024 |
2023 |
U.S. Insurance |
$256 |
$268 |
$254 |
$286 |
$300 |
$1,064 |
$1,133 |
U.S. Annuities |
38 |
34 |
49 |
49 |
49 |
170 |
171 |
Total U.S. core earnings |
$294 |
$302 |
$303 |
$335 |
$349 |
$1,234 |
$1,304 |
Quarterly Results |
Full Year Results |
||||||
(Canadian $ in millions) |
4Q24 |
3Q24 |
2Q24 |
1Q24 |
4Q23 |
2024 |
2023 |
Retirement |
$281 |
$304 |
$226 |
$202 |
$203 |
$1,013 |
$745 |
Retail |
161 |
154 |
135 |
131 |
127 |
581 |
502 |
Institutional asset management |
39 |
41 |
38 |
24 |
23 |
142 |
74 |
Total Global WAM core earnings |
$481 |
$499 |
$399 |
$357 |
$353 |
$1,736 |
$1,321 |
Quarterly Results |
Full Year Results |
||||||
(Canadian $ in millions), CER basis(1) |
4Q24 |
3Q24 |
2Q24 |
1Q24 |
4Q23 |
2024 |
2023 |
Retirement |
$281 |
$311 |
$230 |
$208 |
$207 |
$1,030 |
$766 |
Retail |
161 |
156 |
138 |
133 |
128 |
588 |
510 |
Institutional asset management |
39 |
42 |
39 |
25 |
25 |
145 |
77 |
Total Global WAM core earnings, CER basis |
$481 |
$509 |
$407 |
$366 |
$360 |
$1,763 |
$1,353 |
Quarterly Results |
Full Year Results |
||||||
(Canadian $ in millions) |
4Q24 |
3Q24 |
2Q24 |
1Q24 |
4Q23 |
2024 |
2023 |
Asia |
$157 |
$157 |
$138 |
$108 |
$109 |
$560 |
$404 |
Canada |
108 |
107 |
85 |
90 |
100 |
390 |
378 |
U.S. |
216 |
235 |
176 |
159 |
144 |
786 |
539 |
Total Global WAM core earnings |
$481 |
$499 |
$399 |
$357 |
$353 |
$1,736 |
$1,321 |
Quarterly Results |
Full Year Results |
||||||
(Canadian $ in millions), CER basis(1) |
4Q24 |
3Q24 |
2Q24 |
1Q24 |
4Q23 |
2024 |
2023 |
Asia |
$157 |
$161 |
$141 |
$112 |
$111 |
$571 |
$416 |
Canada |
108 |
107 |
85 |
90 |
100 |
390 |
378 |
U.S. |
216 |
241 |
181 |
164 |
149 |
802 |
559 |
Total Global WAM core earnings, CER basis |
$481 |
$509 |
$407 |
$366 |
$360 |
$1,763 |
$1,353 |
Quarterly Results |
Full Year Results |
||||||
($ millions, post-tax and based on actual foreign
exchange rates in effect in the applicable reporting
period, unless otherwise stated)
|
4Q24 |
3Q24 |
2Q24 |
1Q24 |
4Q23 |
2024 |
2023 |
Core earnings |
$1,907 |
$1,828 |
$1,737 |
$1,754 |
$1,773 |
$7,226 |
$6,684 |
Less: Preferred share dividends and other equity
distributions(1)
|
101 |
56 |
99 |
55 |
99 |
311 |
303 |
Core earnings available to common shareholders |
1,806 |
1,772 |
1,638 |
1,699 |
1,674 |
6,915 |
6,381 |
CER adjustment(2) |
- |
34 |
36 |
48 |
34 |
118 |
132 |
Core earnings available to common
shareholders, CER basis
|
$1,806 |
$1,806 |
$1,674 |
$1,747 |
$1,708 |
$7,033 |
$6,513 |
Quarterly Results |
Full Year Results |
||||||
($ millions, unless otherwise stated) |
4Q24 |
3Q24 |
2Q24 |
1Q24 |
4Q23 |
2024 |
2023 |
Core earnings available to common shareholders |
$1,806 |
$1,772 |
$1,638 |
$1,699 |
$1,674 |
$6,915 |
$6,381 |
Annualized core earnings available to
common shareholders (post-tax)
|
$7,185 |
$7,049 |
$6,588 |
$6,833 |
$6,641 |
$6,915 |
$6,381 |
Average common shareholders’ equity (see
below)
|
$43,613 |
$42,609 |
$41,947 |
$40,984 |
$40,563 |
$42,288 |
$40,201 |
Core ROE (annualized) (%) |
16.5% |
16.6% |
15.7% |
16.7% |
16.4% |
16.4% |
15.9% |
Average common shareholders’ equity |
|||||||
Total shareholders’ and other equity |
$50,972 |
$49,573 |
$48,965 |
$48,250 |
$47,039 |
$50,972 |
$47,039 |
Less: Preferred shares and other equity |
6,660 |
6,660 |
6,660 |
6,660 |
6,660 |
6,660 |
6,660 |
Common shareholders’ equity |
$44,312 |
$42,913 |
$42,305 |
$41,590 |
$40,379 |
$44,312 |
$40,379 |
Average common shareholders’ equity |
$43,613 |
$42,609 |
$41,947 |
$40,984 |
$40,563 |
$42,288 |
$40,201 |
105 |
2024 Annual Report |
Management’s Discussion and Analysis |
Quarterly
Results
|
Full Year
Results
|
|
($ millions and post-tax) |
4Q24 |
2024 |
Core earnings available to common shareholders |
$1,806 |
$6,915 |
Less: GMT included in core earnings |
(57) |
(164) |
Core earnings available to common shareholders excluding the impact GMT |
$1,863 |
$7,079 |
For the years ended December 31, |
||
($ millions and post-tax, unless otherwise stated) |
2024 |
2023 |
Core earnings highest potential businesses(1) |
$5,084 |
$4,039 |
Core earnings - all other businesses |
2,142 |
2,645 |
Core earnings |
7,226 |
6,684 |
Items excluded from core earnings |
(1,841) |
(1,581) |
Net income (loss) attributed to shareholders |
$5,385 |
$5,103 |
Highest potential businesses core earnings contribution |
70% |
60% |
For the years ended December 31, |
||
($ millions and post-tax, unless otherwise stated) |
2024 |
2023 |
Core earnings of Asia region(1) |
$3,149 |
$2,452 |
Core earnings - all other businesses |
4,077 |
4,232 |
Core earnings |
7,226 |
6,684 |
Items excluded from core earnings |
(1,841) |
(1,581) |
Net income (loss) attributed to shareholders |
$5,385 |
$5,103 |
Asia region core earnings contribution |
44% |
37% |
For the years ended December 31, |
||
($ millions and post-tax, unless otherwise stated) |
2024 |
2023 |
Core earnings of LTC and VA businesses(1) |
$744 |
$821 |
Core earnings - all other businesses |
6,482 |
5,863 |
Core earnings |
7,226 |
6,684 |
Items excluded from core earnings |
(1,841) |
(1,581) |
Net income (loss) attributed to shareholders |
$5,385 |
$5,103 |
LTC and VA businesses core earnings contribution |
10% |
12% |
107 |
2024 Annual Report |
Management’s Discussion and Analysis |
2024 |
||||||
Asia |
Canada |
U.S. |
Global
WAM
|
Corporate
and Other
|
Total |
|
Net insurance service result reconciliation |
||||||
Total insurance service result - financial statements |
$2,160 |
$1,320 |
$357 |
$- |
$164 |
$4,001 |
Less: Insurance service result attributed to: |
||||||
Items excluded from core earnings |
(11) |
(5) |
(205) |
- |
1 |
(220) |
NCI |
101 |
- |
- |
- |
- |
101 |
Participating policyholders |
201 |
71 |
- |
- |
- |
272 |
Core net insurance service result |
1,869 |
1,254 |
562 |
- |
163 |
3,848 |
Core net insurance service result, CER adjustment(1) |
37 |
- |
12 |
- |
3 |
52 |
Core net insurance service result, CER basis |
$1,906 |
$1,254 |
$574 |
$- |
$166 |
$3,900 |
Total investment result reconciliation |
||||||
Total investment result per financial statements |
$1,248 |
$1,789 |
$(218) |
$(982) |
$1,684 |
$3,521 |
Less: Reclassify Manulife Bank(2) and Global WAM to their own DOE lines |
- |
1,547 |
- |
(982) |
- |
565 |
Add: Consolidation and other adjustments from Other DOE line |
- |
- |
- |
- |
(656) |
(656) |
Less: Net investment result attributed to: |
||||||
Items excluded from core earnings |
(212) |
(397) |
(1,809) |
- |
612 |
(1,806) |
NCI |
202 |
- |
- |
- |
4 |
206 |
Participating policyholders |
24 |
57 |
- |
- |
- |
81 |
Core net investment result |
1,234 |
582 |
1,591 |
- |
412 |
3,819 |
Core net investment result, CER adjustment(1) |
24 |
- |
34 |
- |
1 |
59 |
Core net investment result, CER basis |
$1,258 |
$582 |
$1,625 |
$- |
$413 |
$3,878 |
Manulife Bank and Global WAM by DOE line reconciliation |
||||||
Manulife Bank and Global WAM net income attributed to shareholders |
$- |
$235 |
$- |
$1,747 |
$- |
$1,982 |
Less: Manulife Bank and Global WAM attributed to: |
||||||
Items excluded from core earnings |
- |
- |
- |
(160) |
- |
(160) |
Core earnings in Manulife Bank and Global WAM |
- |
235 |
- |
1,907 |
- |
2,142 |
Core earnings in Manulife Bank and Global WAM, CER adjustment(1) |
- |
- |
- |
27 |
- |
27 |
Core earnings in Manulife Bank and Global WAM, CER basis |
$- |
$235 |
$- |
$1,934 |
$- |
$2,169 |
Other reconciliation |
||||||
Other revenue per financial statements |
$155 |
$294 |
$137 |
$7,439 |
$(437) |
$7,588 |
General expenses per financial statements |
(330) |
(613) |
(139) |
(3,249) |
(528) |
(4,859) |
Commissions related to non-insurance contracts |
(8) |
(64) |
8 |
(1,454) |
38 |
(1,480) |
Interest expenses per financial statements |
(28) |
(1,047) |
(13) |
(7) |
(586) |
(1,681) |
Total financial statements values included in Other |
(211) |
(1,430) |
(7) |
2,729 |
(1,513) |
(432) |
Less: Reclassifications: |
||||||
Manulife Bank and Global WAM to their own DOE lines |
- |
(1,311) |
- |
2,729 |
- |
1,418 |
Consolidation and other adjustments to net investment result DOE line |
- |
(1) |
- |
- |
(656) |
(657) |
Less: Other attributed to: |
||||||
Items excluded from core earnings |
80 |
2 |
48 |
(2) |
54 |
182 |
NCI |
(1) |
- |
- |
2 |
- |
1 |
Participating policyholders |
(7) |
(5) |
- |
- |
- |
(12) |
Add: Participating policyholders’ earnings transfer to shareholders |
36 |
11 |
- |
- |
- |
47 |
Other core earnings |
(247) |
(104) |
(55) |
- |
(911) |
(1,317) |
Other core earnings, CER adjustment(1) |
(5) |
- |
(1) |
- |
- |
(6) |
Other core earnings, CER basis |
$(252) |
$(104) |
$(56) |
$- |
$(911) |
$(1,323) |
Income tax (expenses) recoveries reconciliation |
||||||
Income tax (expenses) recoveries per financial statements |
$(460) |
$(353) |
$3 |
$(148) |
$(254) |
$(1,212) |
Less: Income tax (expenses) recoveries attributed to: |
||||||
Items excluded from core earnings |
(91) |
53 |
411 |
23 |
(233) |
163 |
NCI |
(61) |
- |
- |
- |
- |
(61) |
Participating policyholders |
(41) |
(7) |
- |
- |
- |
(48) |
Core income tax (expenses) recoveries |
(267) |
(399) |
(408) |
(171) |
(21) |
(1,266) |
Core income tax (expenses) recoveries, CER adjustment(1) |
(5) |
- |
(9) |
- |
- |
(14) |
Core income tax (expenses) recoveries, CER basis |
$(272) |
$(399) |
$(417) |
$(171) |
$(21) |
$(1,280) |
2023 |
||||||
Asia |
Canada |
U.S. |
Global
WAM
|
Corporate
and Other
|
Total |
|
Net insurance service result reconciliation |
||||||
Total insurance service result - financial statements |
$1,941 |
$1,193 |
$607 |
$- |
$236 |
$3,977 |
Less: Insurance service result attributed to: |
||||||
Items excluded from core earnings |
- |
19 |
(55) |
- |
(3) |
(39) |
NCI |
87 |
- |
- |
- |
1 |
88 |
Participating policyholders |
308 |
107 |
- |
- |
- |
415 |
Core net insurance service result |
1,546 |
1,067 |
662 |
- |
238 |
3,513 |
Core net insurance service result, CER adjustment(1) |
25 |
- |
25 |
- |
8 |
58 |
Core net insurance service result, CER basis |
$1,571 |
$1,067 |
$687 |
$- |
$246 |
$3,571 |
Total investment result reconciliation |
||||||
Total investment result per financial statements |
$478 |
$1,717 |
$233 |
$(946) |
$1,476 |
$2,958 |
Less: Reclassify Manulife Bank(2) and Global WAM to their own DOE lines |
- |
1,445 |
- |
(946) |
- |
499 |
Add: Consolidation and other adjustments from Other DOE line |
- |
(20) |
- |
- |
(557) |
(577) |
Less: Net investment result attributed to: |
||||||
Items excluded from core earnings |
(605) |
(345) |
(1,296) |
- |
298 |
(1,948) |
NCI |
92 |
- |
- |
- |
- |
92 |
Participating policyholders |
74 |
(17) |
- |
- |
- |
57 |
Core net investment result |
917 |
614 |
1,529 |
- |
621 |
3,681 |
Core net investment result, CER adjustment(1) |
1 |
- |
55 |
- |
2 |
58 |
Core net investment result, CER basis |
$918 |
$614 |
$1,584 |
$- |
$623 |
$3,739 |
Manulife Bank and Global WAM by DOE line reconciliation |
||||||
Manulife Bank and Global WAM net income attributed to shareholders |
$- |
$251 |
$- |
$1,496 |
$- |
$1,747 |
Less: Manulife Bank and Global WAM attributed to: |
||||||
Items excluded from core earnings |
- |
2 |
- |
(29) |
- |
(27) |
Core earnings in Manulife Bank and Global WAM |
- |
249 |
- |
1,525 |
- |
1,774 |
Core earnings in Manulife Bank and Global WAM, CER adjustment(1) |
- |
- |
- |
34 |
- |
34 |
Core earnings in Manulife Bank and Global WAM, CER basis |
$- |
$249 |
$- |
$1,559 |
$- |
$1,808 |
Other reconciliation |
||||||
Other revenue per financial statements |
$67 |
$272 |
$79 |
$6,709 |
$(381) |
$6,746 |
General expenses per financial statements |
(220) |
(514) |
(156) |
(2,931) |
(509) |
(4,330) |
Commissions related to non-insurance contracts |
(10) |
(55) |
3 |
(1,322) |
39 |
(1,345) |
Interest expenses per financial statements |
(12) |
(1,004) |
(15) |
(13) |
(510) |
(1,554) |
Total financial statements values included in Other |
(175) |
(1,301) |
(89) |
2,443 |
(1,361) |
(483) |
Less: Reclassifications: |
||||||
Manulife Bank and Global WAM to their own DOE lines |
- |
(1,194) |
- |
2,443 |
- |
1,249 |
Consolidation and other adjustments to net investment result DOE line |
- |
(20) |
- |
- |
(557) |
(577) |
Less: Other attributed to: |
||||||
Items excluded from core earnings |
(7) |
(2) |
(59) |
(2) |
85 |
15 |
NCI |
4 |
- |
- |
2 |
- |
6 |
Participating policyholders |
(2) |
(12) |
- |
- |
- |
(14) |
Add: Participating policyholders’ earnings transfer to shareholders |
34 |
8 |
- |
- |
- |
42 |
Other core earnings |
(136) |
(65) |
(30) |
- |
(889) |
(1,120) |
Other core earnings, CER adjustment(1) |
1 |
- |
(1) |
- |
(1) |
(1) |
Other core earnings, CER basis |
$(135) |
$(65) |
$(31) |
$- |
$(890) |
$(1,121) |
Income tax (expenses) recoveries reconciliation |
||||||
Income tax (expenses) recoveries per financial statements |
$(440) |
$(373) |
$(112) |
$(198) |
$278 |
$(845) |
Less: Income tax (expenses) recoveries attributed to: |
||||||
Items excluded from core earnings |
(89) |
30 |
290 |
7 |
179 |
417 |
NCI |
(42) |
- |
- |
(1) |
- |
(43) |
Participating policyholders |
(30) |
(25) |
- |
- |
- |
(55) |
Core income tax (expenses) recoveries |
(279) |
(378) |
(402) |
(204) |
99 |
(1,164) |
Core income tax (expenses) recoveries, CER adjustment(1) |
(1) |
- |
(14) |
(2) |
- |
(17) |
Core income tax (expenses) recoveries, CER basis |
$(280) |
$(378) |
$(416) |
$(206) |
$99 |
$(1,181) |
109 |
2024 Annual Report |
Management’s Discussion and Analysis |
4Q24 |
||||||
Asia |
Canada |
U.S. |
Global
WAM
|
Corporate
and Other
|
Total |
|
Net insurance service result reconciliation |
||||||
Total insurance service result - financial statements |
$545 |
$330 |
$(257) |
$- |
$71 |
$689 |
Less: Insurance service result attributed to: |
||||||
Items excluded from core earnings |
(6) |
(3) |
(408) |
- |
1 |
(416) |
NCI |
18 |
- |
- |
- |
- |
18 |
Participating policyholders |
51 |
7 |
- |
- |
- |
58 |
Core net insurance service result |
482 |
326 |
151 |
- |
70 |
1,029 |
Core net insurance service result, CER adjustment(1) |
- |
- |
- |
- |
- |
- |
Core net insurance service result, CER basis |
$482 |
$326 |
$151 |
$- |
$70 |
$1,029 |
Total investment result reconciliation |
||||||
Total investment result per financial statements |
$279 |
$612 |
$369 |
$(316) |
$615 |
$1,559 |
Less: Reclassify Manulife Bank(2) and Global WAM to their own DOE lines |
- |
382 |
- |
(316) |
- |
66 |
Add: Consolidation and other adjustments from Other DOE line |
1 |
1 |
- |
- |
(198) |
(196) |
Less: Net investment result attributed to: |
||||||
Items excluded from core earnings |
(56) |
85 |
(16) |
- |
287 |
300 |
NCI |
14 |
- |
- |
- |
4 |
18 |
Participating policyholders |
(3) |
15 |
- |
- |
- |
12 |
Core net investment result |
325 |
131 |
385 |
- |
126 |
967 |
Core net investment result, CER adjustment(1) |
- |
- |
- |
- |
- |
- |
Core net investment result, CER basis |
$325 |
$131 |
$385 |
$- |
$126 |
$967 |
Manulife Bank and Global WAM by DOE line reconciliation |
||||||
Manulife Bank and Global WAM net income attributed to shareholders |
$- |
$53 |
$- |
$420 |
$- |
$473 |
Less: Manulife Bank and Global WAM attributed to: |
||||||
Items excluded from core earnings |
- |
(7) |
- |
(122) |
- |
(129) |
Core earnings in Manulife Bank and Global WAM |
- |
60 |
- |
542 |
- |
602 |
Core earnings in Manulife Bank and Global WAM, CER adjustment(1) |
- |
- |
- |
- |
- |
- |
Core earnings in Manulife Bank and Global WAM, CER basis |
$- |
$60 |
$- |
$542 |
$- |
$602 |
Other reconciliation |
||||||
Other revenue per financial statements |
$79 |
$72 |
$45 |
$2,005 |
$(198) |
$2,003 |
General expenses per financial statements |
(112) |
(162) |
(45) |
(883) |
(126) |
(1,328) |
Commissions related to non-insurance contracts |
(1) |
(16) |
2 |
(385) |
10 |
(390) |
Interest expenses per financial statements |
(9) |
(257) |
(2) |
(2) |
(150) |
(420) |
Total financial statements values included in Other |
(43) |
(363) |
- |
735 |
(464) |
(135) |
Less: Reclassifications: |
||||||
Manulife Bank and Global WAM to their own DOE lines |
- |
(328) |
- |
735 |
- |
407 |
Consolidation and other adjustments to net investment result DOE line |
1 |
- |
- |
1 |
(198) |
(196) |
Less: Other attributed to: |
||||||
Items excluded from core earnings |
40 |
- |
26 |
(1) |
(46) |
19 |
NCI |
1 |
- |
- |
- |
- |
1 |
Participating policyholders |
- |
(2) |
- |
- |
- |
(2) |
Add: Participating policyholders’ earnings transfer to shareholders |
15 |
3 |
- |
- |
- |
18 |
Other core earnings |
(70) |
(30) |
(26) |
- |
(220) |
(346) |
Other core earnings, CER adjustment(1) |
- |
- |
- |
- |
- |
- |
Other core earnings, CER basis |
$(70) |
$(30) |
$(26) |
$- |
$(220) |
$(346) |
Income tax (expenses) recoveries reconciliation |
||||||
Income tax (expenses) recoveries per financial statements |
$(156) |
$(117) |
$(9) |
$(35) |
$(89) |
$(406) |
Less: Income tax (expenses) recoveries attributed to: |
||||||
Items excluded from core earnings |
(61) |
(26) |
89 |
26 |
(71) |
(43) |
NCI |
(15) |
- |
- |
- |
- |
(15) |
Participating policyholders |
(9) |
6 |
- |
- |
- |
(3) |
Core income tax (expenses) recoveries |
(71) |
(97) |
(98) |
(61) |
(18) |
(345) |
Core income tax (expenses) recoveries, CER adjustment(1) |
- |
- |
- |
- |
- |
- |
Core income tax (expenses) recoveries, CER basis |
$(71) |
$(97) |
$(98) |
$(61) |
$(18) |
$(345) |
3Q24 |
||||||
Asia |
Canada |
U.S. |
Global
WAM
|
Corporate
and Other
|
Total |
|
Net insurance service result reconciliation |
||||||
Total insurance service result - financial statements |
$548 |
$363 |
$338 |
$- |
$48 |
$1,297 |
Less: Insurance service result attributed to: |
||||||
Items excluded from core earnings |
(3) |
6 |
158 |
- |
- |
161 |
NCI |
33 |
- |
- |
- |
- |
33 |
Participating policyholders |
55 |
18 |
- |
- |
- |
73 |
Core net insurance service result |
463 |
339 |
180 |
- |
48 |
1,030 |
Core net insurance service result, CER adjustment(1) |
9 |
- |
4 |
- |
2 |
15 |
Core net insurance service result, CER basis |
$472 |
$339 |
$184 |
$- |
$50 |
$1,045 |
Total investment result reconciliation |
||||||
Total investment result per financial statements |
$644 |
$563 |
$(303) |
$(196) |
$393 |
$1,101 |
Less: Reclassify Manulife Bank(2) and Global WAM to their own DOE lines |
- |
389 |
- |
(196) |
- |
193 |
Add: Consolidation and other adjustments from Other DOE line |
(1) |
1 |
- |
- |
(148) |
(148) |
Less: Net investment result attributed to: |
||||||
Items excluded from core earnings |
194 |
3 |
(668) |
- |
154 |
(317) |
NCI |
125 |
- |
- |
- |
- |
125 |
Participating policyholders |
33 |
26 |
- |
- |
- |
59 |
Core net investment result |
291 |
146 |
365 |
- |
91 |
893 |
Core net investment result, CER adjustment(1) |
5 |
- |
10 |
- |
(1) |
14 |
Core net investment result, CER basis |
$296 |
$146 |
$375 |
$- |
$90 |
$907 |
Manulife Bank and Global WAM by DOE line reconciliation |
||||||
Manulife Bank and Global WAM net income attributed to shareholders |
$- |
$69 |
$- |
$518 |
$- |
$587 |
Less: Manulife Bank and Global WAM attributed to: |
||||||
Items excluded from core earnings |
- |
12 |
- |
13 |
- |
25 |
Core earnings in Manulife Bank and Global WAM |
- |
57 |
- |
505 |
- |
562 |
Core earnings in Manulife Bank and Global WAM, CER adjustment(1) |
- |
- |
- |
9 |
- |
9 |
Core earnings in Manulife Bank and Global WAM, CER basis |
$- |
$57 |
$- |
$514 |
$- |
$571 |
Other reconciliation |
||||||
Other revenue per financial statements |
$(42) |
$74 |
$26 |
$1,875 |
$(5) |
$1,928 |
General expenses per financial statements |
(83) |
(154) |
(41) |
(795) |
(131) |
(1,204) |
Commissions related to non-insurance contracts |
(3) |
(15) |
2 |
(364) |
10 |
(370) |
Interest expenses per financial statements |
(5) |
(253) |
(4) |
(1) |
(148) |
(411) |
Total financial statements values included in Other |
(133) |
(348) |
(17) |
715 |
(274) |
(57) |
Less: Reclassifications: |
||||||
Manulife Bank and Global WAM to their own DOE lines |
- |
(319) |
- |
715 |
- |
396 |
Consolidation and other adjustments to net investment result DOE line |
(1) |
- |
- |
(1) |
(148) |
(150) |
Less: Other attributed to: |
||||||
Items excluded from core earnings |
(49) |
3 |
5 |
- |
98 |
57 |
NCI |
(2) |
- |
- |
1 |
- |
(1) |
Participating policyholders |
(6) |
(3) |
- |
- |
- |
(9) |
Add: Participating policyholders’ earnings transfer to shareholders |
5 |
3 |
- |
- |
- |
8 |
Other core earnings |
(70) |
(26) |
(22) |
- |
(224) |
(342) |
Other core earnings, CER adjustment(1) |
(1) |
- |
- |
- |
- |
(1) |
Other core earnings, CER basis |
$(71) |
$(26) |
$(22) |
$- |
$(224) |
$(343) |
Income tax (expenses) recoveries reconciliation |
||||||
Income tax (expenses) recoveries per financial statements |
$(39) |
$(114) |
$(13) |
$(20) |
$(88) |
$(274) |
Less: Income tax (expenses) recoveries attributed to: |
||||||
Items excluded from core earnings |
66 |
(6) |
99 |
(14) |
(60) |
85 |
NCI |
(26) |
- |
- |
- |
- |
(26) |
Participating policyholders |
(14) |
(4) |
- |
- |
- |
(18) |
Core income tax (expenses) recoveries |
(65) |
(104) |
(112) |
(6) |
(28) |
(315) |
Core income tax (expenses) recoveries, CER adjustment(1) |
(1) |
- |
(3) |
1 |
- |
(3) |
Core income tax (expenses) recoveries, CER basis |
$(66) |
$(104) |
$(115) |
$(5) |
$(28) |
$(318) |
111 |
2024 Annual Report |
Management’s Discussion and Analysis |
2Q24 |
||||||
Asia |
Canada |
U.S. |
Global
WAM
|
Corporate
and Other
|
Total |
|
Net insurance service result reconciliation |
||||||
Total insurance service result - financial statements |
$520 |
$343 |
$157 |
$- |
$17 |
$1,037 |
Less: Insurance service result attributed to: |
||||||
Items excluded from core earnings |
(13) |
(5) |
43 |
- |
1 |
26 |
NCI |
17 |
- |
- |
- |
- |
17 |
Participating policyholders |
47 |
22 |
- |
- |
- |
69 |
Core net insurance service result |
469 |
326 |
114 |
- |
16 |
925 |
Core net insurance service result, CER adjustment(1) |
13 |
- |
3 |
- |
1 |
17 |
Core net insurance service result, CER basis |
$482 |
$326 |
$117 |
$- |
$17 |
$942 |
Total investment result reconciliation |
||||||
Total investment result per financial statements |
$271 |
$161 |
$6 |
$(240) |
$315 |
$513 |
Less: Reclassify Manulife Bank(2) and Global WAM to their own DOE lines |
- |
380 |
- |
(240) |
- |
140 |
Add: Consolidation and other adjustments from Other DOE line |
- |
(1) |
- |
- |
(154) |
(155) |
Less: Net investment result attributed to: |
||||||
Items excluded from core earnings |
(59) |
(385) |
(405) |
- |
65 |
(784) |
NCI |
23 |
- |
- |
- |
- |
23 |
Participating policyholders |
(3) |
9 |
- |
- |
- |
6 |
Core net investment result |
310 |
156 |
411 |
- |
96 |
973 |
Core net investment result, CER adjustment(1) |
10 |
- |
9 |
- |
1 |
20 |
Core net investment result, CER basis |
$320 |
$156 |
$420 |
$- |
$97 |
$993 |
Manulife Bank and Global WAM by DOE line reconciliation |
||||||
Manulife Bank and Global WAM net income attributed to shareholders |
$- |
$48 |
$- |
$383 |
$- |
$431 |
Less: Manulife Bank and Global WAM attributed to: |
||||||
Items excluded from core earnings |
- |
(9) |
- |
(62) |
- |
(71) |
Core earnings in Manulife Bank and Global WAM |
- |
57 |
- |
445 |
- |
502 |
Core earnings in Manulife Bank and Global WAM, CER adjustment(1) |
- |
- |
- |
8 |
- |
8 |
Core earnings in Manulife Bank and Global WAM, CER basis |
$- |
$57 |
$- |
$453 |
$- |
$510 |
Other reconciliation |
||||||
Other revenue per financial statements |
$63 |
$73 |
$27 |
$1,809 |
$(123) |
$1,849 |
General expenses per financial statements |
(79) |
(155) |
(32) |
(828) |
(131) |
(1,225) |
Commissions related to non-insurance contracts |
(4) |
(15) |
1 |
(356) |
10 |
(364) |
Interest expenses per financial statements |
(8) |
(266) |
(3) |
(2) |
(147) |
(426) |
Total financial statements values included in Other |
(28) |
(363) |
(7) |
623 |
(391) |
(166) |
Less: Reclassifications: |
||||||
Manulife Bank and Global WAM to their own DOE lines |
- |
(333) |
- |
623 |
- |
290 |
Consolidation and other adjustments to net investment result DOE line |
- |
- |
- |
- |
(154) |
(154) |
Less: Other attributed to: |
||||||
Items excluded from core earnings |
50 |
2 |
8 |
(1) |
(7) |
52 |
NCI |
- |
- |
- |
1 |
- |
1 |
Participating policyholders |
(2) |
- |
- |
- |
- |
(2) |
Add: Participating policyholders’ earnings transfer to shareholders |
8 |
2 |
- |
- |
- |
10 |
Other core earnings |
(68) |
(30) |
(15) |
- |
(230) |
(343) |
Other core earnings, CER adjustment(1) |
(3) |
1 |
(1) |
- |
(1) |
(4) |
Other core earnings, CER basis |
$(71) |
$(29) |
$(16) |
$- |
$(231) |
$(347) |
Income tax (expenses) recoveries reconciliation |
||||||
Income tax (expenses) recoveries per financial statements |
$(115) |
$(39) |
$(21) |
$(32) |
$(45) |
$(252) |
Less: Income tax (expenses) recoveries attributed to: |
||||||
Items excluded from core earnings |
(43) |
74 |
74 |
14 |
(37) |
82 |
NCI |
(2) |
- |
- |
- |
- |
(2) |
Participating policyholders |
(6) |
(6) |
- |
- |
- |
(12) |
Core income tax (expenses) recoveries |
(64) |
(107) |
(95) |
(46) |
(8) |
(320) |
Core income tax (expenses) recoveries, CER adjustment(1) |
(2) |
- |
(3) |
- |
- |
(5) |
Core income tax (expenses) recoveries, CER basis |
$(66) |
$(107) |
$(98) |
$(46) |
$(8) |
$(325) |
1Q24 |
||||||
Asia |
Canada |
U.S. |
Global
WAM
|
Corporate
and Other
|
Total |
|
Net insurance service result reconciliation |
||||||
Total insurance service result - financial statements |
$547 |
$284 |
$119 |
$- |
$28 |
$978 |
Less: Insurance service result attributed to: |
||||||
Items excluded from core earnings |
11 |
(3) |
2 |
- |
(1) |
9 |
NCI |
33 |
- |
- |
- |
- |
33 |
Participating policyholders |
48 |
24 |
- |
- |
- |
72 |
Core net insurance service result |
455 |
263 |
117 |
- |
29 |
864 |
Core net insurance service result, CER adjustment(1) |
15 |
- |
5 |
- |
- |
20 |
Core net insurance service result, CER basis |
$470 |
$263 |
$122 |
$- |
$29 |
$884 |
Total investment result reconciliation |
||||||
Total investment result per financial statements |
$54 |
$453 |
$(290) |
$(230) |
$361 |
$348 |
Less: Reclassify Manulife Bank(2) and Global WAM to their own DOE lines |
- |
396 |
- |
(230) |
- |
166 |
Add: Consolidation and other adjustments from Other DOE line |
- |
(1) |
- |
- |
(156) |
(157) |
Less: Net investment result attributed to: |
||||||
Items excluded from core earnings |
(291) |
(100) |
(720) |
- |
106 |
(1,005) |
NCI |
40 |
- |
- |
- |
- |
40 |
Participating policyholders |
(3) |
7 |
- |
- |
- |
4 |
Core net investment result |
308 |
149 |
430 |
- |
99 |
986 |
Core net investment result, CER adjustment(1) |
9 |
- |
15 |
- |
1 |
25 |
Core net investment result, CER basis |
$317 |
$149 |
$445 |
$- |
$100 |
$1,011 |
Manulife Bank and Global WAM by DOE line reconciliation |
||||||
Manulife Bank and Global WAM net income attributed to shareholders |
$- |
$65 |
$- |
$426 |
$- |
$491 |
Less: Manulife Bank and Global WAM attributed to: |
||||||
Items excluded from core earnings |
- |
4 |
- |
11 |
- |
15 |
Core earnings in Manulife Bank and Global WAM |
- |
61 |
- |
415 |
- |
476 |
Core earnings in Manulife Bank and Global WAM, CER adjustment(1) |
- |
- |
- |
10 |
- |
10 |
Core earnings in Manulife Bank and Global WAM, CER basis |
$- |
$61 |
$- |
$425 |
$- |
$486 |
Other reconciliation |
||||||
Other revenue per financial statements |
$55 |
$75 |
$39 |
$1,750 |
$(111) |
$1,808 |
General expenses per financial statements |
(56) |
(142) |
(21) |
(743) |
(140) |
(1,102) |
Commissions related to non-insurance contracts |
- |
(18) |
3 |
(349) |
8 |
(356) |
Interest expenses per financial statements |
(6) |
(271) |
(4) |
(2) |
(141) |
(424) |
Total financial statements values included in Other |
(7) |
(356) |
17 |
656 |
(384) |
(74) |
Less: Reclassifications: |
||||||
Manulife Bank and Global WAM to their own DOE lines |
- |
(331) |
- |
656 |
- |
325 |
Consolidation and other adjustments to net investment result DOE line |
- |
(1) |
- |
- |
(156) |
(157) |
Less: Other attributed to: |
||||||
Items excluded from core earnings |
39 |
(3) |
9 |
- |
9 |
54 |
NCI |
- |
- |
- |
- |
- |
- |
Participating policyholders |
1 |
- |
- |
- |
- |
1 |
Add: Participating policyholders’ earnings transfer to shareholders |
8 |
3 |
- |
- |
- |
11 |
Other core earnings |
(39) |
(18) |
8 |
- |
(237) |
(286) |
Other core earnings, CER adjustment(1) |
(1) |
- |
- |
- |
- |
(1) |
Other core earnings, CER basis |
$(40) |
$(18) |
$8 |
$- |
$(237) |
$(287) |
Income tax (expenses) recoveries reconciliation |
||||||
Income tax (expenses) recoveries per financial statements |
$(150) |
$(83) |
$46 |
$(61) |
$(32) |
$(280) |
Less: Income tax (expenses) recoveries attributed to: |
||||||
Items excluded from core earnings |
(53) |
11 |
149 |
(3) |
(65) |
39 |
NCI |
(18) |
- |
- |
- |
- |
(18) |
Participating policyholders |
(12) |
(3) |
- |
- |
- |
(15) |
Core income tax (expenses) recoveries |
(67) |
(91) |
(103) |
(58) |
33 |
(286) |
Core income tax (expenses) recoveries, CER adjustment(1) |
(2) |
- |
(3) |
(1) |
- |
(6) |
Core income tax (expenses) recoveries, CER basis |
$(69) |
$(91) |
$(106) |
$(59) |
$33 |
$(292) |
113 |
2024 Annual Report |
Management’s Discussion and Analysis |
4Q23 |
||||||
Asia |
Canada |
U.S. |
Global
WAM
|
Corporate
and Other
|
Total |
|
Net insurance service result reconciliation |
||||||
Total insurance service result - financial statements |
$644 |
$306 |
$195 |
$- |
$91 |
$1,236 |
Less: Insurance service result attributed to: |
||||||
Items excluded from core earnings |
130 |
12 |
21 |
- |
(2) |
161 |
NCI |
19 |
- |
- |
- |
1 |
20 |
Participating policyholders |
60 |
39 |
- |
- |
- |
99 |
Core net insurance service result |
435 |
255 |
174 |
- |
92 |
956 |
Core net insurance service result, CER adjustment(1) |
9 |
- |
5 |
- |
2 |
16 |
Core net insurance service result, CER basis |
$444 |
$255 |
$179 |
$- |
$94 |
$972 |
Total investment result reconciliation |
||||||
Total investment result per financial statements |
$285 |
$511 |
$72 |
$(139) |
$344 |
$1,073 |
Less: Reclassify Manulife Bank(2) and Global WAM to their own DOE lines |
- |
377 |
- |
(139) |
- |
238 |
Add: Consolidation and other adjustments from Other DOE line |
- |
3 |
- |
- |
(162) |
(159) |
Less: Net investment result attributed to: |
||||||
Items excluded from core earnings |
(47) |
9 |
(359) |
- |
39 |
(358) |
NCI |
37 |
- |
- |
- |
- |
37 |
Participating policyholders |
50 |
(10) |
- |
- |
- |
40 |
Core net investment result |
245 |
138 |
431 |
- |
143 |
957 |
Core net investment result, CER adjustment(1) |
4 |
- |
12 |
- |
- |
16 |
Core net investment result, CER basis |
$249 |
$138 |
$443 |
$- |
$143 |
$973 |
Manulife Bank and Global WAM by DOE line reconciliation |
||||||
Manulife Bank and Global WAM net income attributed to shareholders |
$- |
$72 |
$- |
$424 |
$- |
$496 |
Less: Manulife Bank and Global WAM attributed to: |
||||||
Items excluded from core earnings |
- |
8 |
- |
16 |
- |
24 |
Core earnings in Manulife Bank and Global WAM |
- |
64 |
- |
408 |
- |
472 |
Core earnings in Manulife Bank and Global WAM, CER adjustment(1) |
- |
- |
- |
8 |
- |
8 |
Core earnings in Manulife Bank and Global WAM, CER basis |
$- |
$64 |
$- |
$416 |
$- |
$480 |
Other reconciliation |
||||||
Other revenue per financial statements |
$(16) |
$75 |
$8 |
$1,688 |
$(36) |
$1,719 |
General expenses per financial statements |
(59) |
(136) |
(28) |
(793) |
(164) |
(1,180) |
Commissions related to non-insurance contracts |
(3) |
(12) |
1 |
(330) |
9 |
(335) |
Interest expenses per financial statements |
(4) |
(246) |
(4) |
(2) |
(134) |
(390) |
Total financial statements values included in Other |
(82) |
(319) |
(23) |
563 |
(325) |
(186) |
Less: Reclassifications: |
||||||
Manulife Bank and Global WAM to their own DOE lines |
- |
(305) |
- |
564 |
- |
259 |
Consolidation and other adjustments to net investment result DOE line |
- |
3 |
- |
- |
(162) |
(159) |
Less: Other attributed to: |
||||||
Items excluded from core earnings |
(26) |
4 |
(5) |
(2) |
79 |
50 |
NCI |
(2) |
- |
- |
1 |
- |
(1) |
Participating policyholders |
(4) |
(1) |
- |
- |
- |
(5) |
Add: Participating policyholders’ earnings transfer to shareholders |
10 |
2 |
- |
- |
- |
12 |
Other core earnings |
(40) |
(18) |
(18) |
- |
(242) |
(318) |
Other core earnings, CER adjustment(1) |
- |
- |
(1) |
- |
- |
(1) |
Other core earnings, CER basis |
$(40) |
$(18) |
$(19) |
$- |
$(242) |
$(319) |
Income tax (expenses) recoveries reconciliation |
||||||
Income tax (expenses) recoveries per financial statements |
$(109) |
$(116) |
$(46) |
$(58) |
$7 |
$(322) |
Less: Income tax (expenses) recoveries attributed to: |
||||||
Items excluded from core earnings |
(6) |
(20) |
67 |
(3) |
(30) |
8 |
NCI |
(17) |
- |
- |
- |
- |
(17) |
Participating policyholders |
(10) |
(9) |
- |
- |
- |
(19) |
Core income tax (expenses) recoveries |
(76) |
(87) |
(113) |
(55) |
37 |
(294) |
Core income tax (expenses) recoveries, CER adjustment(1) |
(2) |
- |
(3) |
(1) |
1 |
(5) |
Core income tax (expenses) recoveries, CER basis |
$(78) |
$(87) |
$(116) |
$(56) |
$38 |
$(299) |
Quarterly Results |
Full Year Results |
||||||
4Q24 |
3Q24 |
2Q24 |
1Q24 |
4Q23 |
2024 |
2023 |
|
Per share dividend |
$0.40 |
$0.40 |
$0.40 |
$0.40 |
$0.37 |
$1.60 |
$1.46 |
Core EPS |
$1.03 |
$1.00 |
$0.91 |
$0.94 |
$0.92 |
$3.87 |
$3.47 |
Common share core dividend payout ratio |
39% |
40% |
44% |
43% |
40% |
41% |
42% |
115 |
2024 Annual Report |
Management’s Discussion and Analysis |
As at |
Dec 31, 2024 |
Sept 30, 2024 |
June 30, 2024 |
Mar 31, 2024 |
Dec 31, 2023 |
CSM |
$23,425 |
$22,213 |
$21,760 |
$22,075 |
$21,301 |
Less: CSM for NCI |
1,298 |
1,283 |
1,002 |
986 |
861 |
CSM, net of NCI |
$22,127 |
$20,930 |
$20,758 |
$21,089 |
$20,440 |
CER adjustment(1) |
- |
618 |
889 |
894 |
1,118 |
CSM, net of NCI, CER basis |
$22,127 |
$21,548 |
$21,647 |
$21,983 |
$21,558 |
CSM by segment |
|||||
Asia |
$15,540 |
$14,715 |
$13,456 |
$13,208 |
$12,617 |
Asia NCI |
1,298 |
1,283 |
1,002 |
986 |
861 |
Canada |
4,109 |
4,036 |
3,769 |
4,205 |
4,060 |
U.S. |
2,468 |
2,171 |
3,522 |
3,649 |
3,738 |
Corporate and Other |
10 |
8 |
11 |
27 |
25 |
CSM |
$23,425 |
$22,213 |
$21,760 |
$22,075 |
$21,301 |
CSM, CER adjustment(1) |
|||||
Asia |
$- |
$480 |
$711 |
$674 |
$790 |
Asia NCI |
- |
28 |
50 |
54 |
54 |
Canada |
- |
- |
- |
- |
- |
U.S. |
- |
138 |
178 |
221 |
328 |
Corporate and Other |
- |
- |
- |
- |
- |
Total |
$- |
$646 |
$939 |
$949 |
$1,172 |
CSM, CER basis |
|||||
Asia |
$15,540 |
$15,195 |
$14,167 |
$13,882 |
$13,407 |
Asia NCI |
1,298 |
1,311 |
1,052 |
1,040 |
915 |
Canada |
4,109 |
4,036 |
3,769 |
4,205 |
4,060 |
U.S. |
2,468 |
2,309 |
3,700 |
3,870 |
4,066 |
Corporate and Other |
10 |
8 |
11 |
27 |
25 |
Total CSM, CER basis |
$23,425 |
$22,859 |
$22,699 |
$23,024 |
$22,473 |
Post-tax CSM |
|||||
CSM |
$23,425 |
$22,213 |
$21,760 |
$22,075 |
$21,301 |
Marginal tax rate on CSM |
(2,599) |
(2,488) |
(2,576) |
(2,650) |
(2,798) |
Post-tax CSM |
$20,826 |
$19,725 |
$19,184 |
$19,425 |
$18,503 |
CSM, net of NCI |
$22,127 |
$20,930 |
$20,758 |
$21,089 |
$20,440 |
Marginal tax rate on CSM net of NCI |
(2,445) |
(2,335) |
(2,468) |
(2,542) |
(2,692) |
Post-tax CSM net of NCI |
$19,682 |
$18,595 |
$18,290 |
$18,547 |
$17,748 |
Quarterly Results |
Full Year Results |
||||||
4Q24 |
3Q24 |
2Q24 |
1Q24 |
4Q23 |
2024 |
2023 |
|
New business CSM |
|||||||
Hong Kong |
$299 |
$254 |
$200 |
$168 |
$199 |
$921 |
$676 |
Japan |
66 |
86 |
90 |
48 |
42 |
290 |
126 |
Asia Other |
221 |
253 |
188 |
275 |
173 |
937 |
747 |
International High Net Worth |
187 |
231 |
|||||
Mainland China |
270 |
138 |
|||||
Singapore |
391 |
244 |
|||||
Vietnam |
17 |
87 |
|||||
Other Emerging Markets |
72 |
47 |
|||||
Asia |
586 |
593 |
478 |
491 |
414 |
2,148 |
1,549 |
Canada |
116 |
95 |
76 |
70 |
70 |
357 |
224 |
U.S. |
140 |
71 |
74 |
97 |
142 |
382 |
394 |
Total new business CSM |
$842 |
$759 |
$628 |
$658 |
$626 |
$2,887 |
$2,167 |
New business CSM, CER adjustment(2),(3) |
|||||||
Hong Kong |
$- |
$7 |
$4 |
$6 |
$5 |
$17 |
$25 |
Japan |
- |
1 |
4 |
1 |
(1) |
6 |
(6) |
Asia Other |
- |
4 |
6 |
11 |
6 |
21 |
22 |
International High Net Worth |
3 |
9 |
|||||
Mainland China |
7 |
4 |
|||||
Singapore |
9 |
12 |
|||||
Vietnam |
(1) |
(4) |
|||||
Other Emerging Markets |
3 |
1 |
|||||
Asia |
- |
12 |
14 |
18 |
10 |
44 |
41 |
Canada |
- |
- |
- |
- |
- |
- |
- |
U.S. |
- |
1 |
2 |
4 |
4 |
7 |
14 |
Total new business CSM |
$- |
$13 |
$16 |
$22 |
$14 |
$51 |
$55 |
New business CSM, CER basis |
|||||||
Hong Kong |
$299 |
$261 |
$204 |
$174 |
$204 |
$938 |
$701 |
Japan |
66 |
87 |
94 |
49 |
41 |
296 |
120 |
Asia Other |
221 |
257 |
194 |
286 |
179 |
958 |
769 |
International High Net Worth |
190 |
240 |
|||||
Mainland China |
277 |
142 |
|||||
Singapore |
400 |
256 |
|||||
Vietnam |
16 |
83 |
|||||
Other Emerging Markets |
75 |
48 |
|||||
Asia |
586 |
605 |
492 |
509 |
424 |
2,192 |
1,590 |
Canada |
116 |
95 |
76 |
70 |
70 |
357 |
224 |
U.S. |
140 |
72 |
76 |
101 |
146 |
389 |
408 |
Total new business CSM, CER basis |
$842 |
$772 |
$644 |
$680 |
$640 |
$2,938 |
$2,222 |
117 |
2024 Annual Report |
Management’s Discussion and Analysis |
Quarterly Results |
Full Year Results |
||||||
4Q24 |
3Q24 |
2Q24 |
1Q24 |
4Q23 |
2024 |
2023 |
|
General expenses |
$1,328 |
$1,204 |
$1,225 |
$1,102 |
$1,180 |
$4,859 |
$4,330 |
CER adjustment(1) |
- |
17 |
16 |
25 |
18 |
58 |
86 |
General expenses, CER basis |
$1,328 |
$1,221 |
$1,241 |
$1,127 |
$1,198 |
$4,917 |
$4,416 |
Quarterly Results |
Full Year Results |
||||||
4Q24 |
3Q24 |
2Q24 |
1Q24 |
4Q23 |
2024 |
2023 |
|
Net income (loss) attributed to shareholders: |
|||||||
Asia |
$583 |
$827 |
$582 |
$363 |
$615 |
$2,355 |
$1,348 |
Canada |
439 |
430 |
79 |
273 |
365 |
1,221 |
1,191 |
U.S. |
103 |
5 |
135 |
(108) |
198 |
135 |
639 |
Global WAM |
384 |
498 |
350 |
365 |
365 |
1,597 |
1,297 |
Corporate and Other |
129 |
79 |
(104) |
(27) |
116 |
77 |
628 |
Total net income (loss) attributed to shareholders |
1,638 |
1,839 |
1,042 |
866 |
1,659 |
5,385 |
5,103 |
Preferred share dividends and other equity distributions |
(101) |
(56) |
(99) |
(55) |
(99) |
(311) |
(303) |
Common shareholders’ net income (loss) |
$1,537 |
$1,783 |
$943 |
$811 |
$1,560 |
$5,074 |
$4,800 |
CER adjustment(1) |
|||||||
Asia |
$- |
$26 |
$8 |
$18 |
$20 |
$52 |
$60 |
Canada |
- |
- |
- |
4 |
(8) |
4 |
(6) |
U.S. |
- |
5 |
3 |
(1) |
5 |
7 |
47 |
Global WAM |
- |
11 |
9 |
12 |
9 |
32 |
39 |
Corporate and Other |
- |
2 |
(2) |
- |
2 |
- |
(30) |
Total net income (loss) attributed to shareholders |
- |
44 |
18 |
33 |
28 |
95 |
110 |
Preferred share dividends and other equity distributions |
- |
- |
- |
- |
- |
- |
- |
Common shareholders’ net income (loss) |
$- |
$44 |
$18 |
$33 |
$28 |
$95 |
$110 |
Net income (loss) attributed to shareholders, CER basis |
|||||||
Asia |
$583 |
$853 |
$590 |
$381 |
$635 |
$2,407 |
$1,408 |
Canada |
439 |
430 |
79 |
277 |
357 |
1,225 |
1,185 |
U.S. |
103 |
10 |
138 |
(109) |
203 |
142 |
686 |
Global WAM |
384 |
509 |
359 |
377 |
374 |
1,629 |
1,336 |
Corporate and Other |
129 |
81 |
(106) |
(27) |
118 |
77 |
598 |
Total net income (loss) attributed to shareholders, CER
basis
|
1,638 |
1,883 |
1,060 |
899 |
1,687 |
5,480 |
5,213 |
Preferred share dividends and other equity distributions, CER
basis
|
(101) |
(56) |
(99) |
(55) |
(99) |
(311) |
(303) |
Common shareholders’ net income (loss), CER basis |
$1,537 |
$1,827 |
$961 |
$844 |
$1,588 |
$5,169 |
$4,910 |
Asia net income attributed to shareholders, U.S. dollars |
|||||||
Asia net income (loss) attributed to shareholders, US $(2) |
$417 |
$606 |
$424 |
$270 |
$452 |
$1,717 |
$995 |
CER adjustment, US $(1) |
- |
4 |
(1) |
4 |
2 |
7 |
15 |
Asia net income (loss) attributed to shareholders, U.S. $,
CER basis(1)
|
$417 |
$610 |
$423 |
$274 |
$454 |
$1,724 |
$1,010 |
Net income (loss) attributed to shareholders (pre-tax) |
|||||||
Net income (loss) attributed to shareholders (post-tax) |
$1,638 |
$1,839 |
$1,042 |
$866 |
$1,659 |
$5,385 |
$5,103 |
Tax on net income attributed to shareholders |
388 |
229 |
238 |
247 |
288 |
1,102 |
750 |
Net income (loss) attributed to shareholders (pre-tax) |
2,026 |
2,068 |
1,280 |
1,113 |
1,947 |
6,487 |
5,853 |
CER adjustment(1) |
- |
28 |
32 |
27 |
33 |
87 |
111 |
Net income (loss) attributed to shareholders (pre-tax), CER
basis
|
$2,026 |
$2,096 |
$1,312 |
$1,140 |
$1,980 |
$6,574 |
$5,964 |
CAD $ |
US $(4) |
||||||||
December 31, 2024 |
December 31, 2024 |
||||||||
As at |
Asia |
Canada |
U.S. |
Global WAM |
Corporate
and Other
|
Total |
Asia |
U.S. |
|
Total invested assets |
|||||||||
Manulife Bank net
lending assets
|
$- |
$26,718 |
$- |
$- |
$- |
$26,718 |
$- |
$- |
|
Derivative
reclassification(1)
|
- |
- |
- |
- |
5,600 |
5,600 |
- |
- |
|
Invested assets excluding
above items
|
166,590 |
80,423 |
136,833 |
9,743 |
16,590 |
410,179 |
115,843 |
95,142 |
|
Total |
166,590 |
107,141 |
136,833 |
9,743 |
22,190 |
442,497 |
115,843 |
95,142 |
|
Segregated funds net
assets
|
|||||||||
Segregated funds net
assets - Institutional
|
- |
- |
- |
3,393 |
- |
3,393 |
- |
- |
|
Segregated funds net
assets - Other(2)
|
28,622 |
38,099 |
77,440 |
288,467 |
(33) |
432,595 |
19,904 |
53,845 |
|
Total |
28,622 |
38,099 |
77,440 |
291,860 |
(33) |
435,988 |
19,904 |
53,845 |
|
AUM per financial
statements
|
195,212 |
145,240 |
214,273 |
301,603 |
22,157 |
878,485 |
135,747 |
148,987 |
|
Mutual funds |
- |
- |
- |
333,598 |
- |
333,598 |
- |
- |
|
Institutional asset
management(3)
|
- |
- |
- |
154,096 |
- |
154,096 |
- |
- |
|
Other funds |
- |
- |
- |
19,174 |
- |
19,174 |
- |
- |
|
Total AUM |
195,212 |
145,240 |
214,273 |
808,471 |
22,157 |
1,385,353 |
135,747 |
148,987 |
|
Assets under administration |
- |
- |
- |
222,614 |
- |
222,614 |
- |
- |
|
Total AUMA |
$195,212 |
$145,240 |
$214,273 |
$1,031,085 |
$22,157 |
$1,607,967 |
$135,747 |
$148,987 |
|
Total AUMA, US $(4) |
$1,118,042 |
||||||||
Total AUMA |
$195,212 |
$145,240 |
$214,273 |
$1,031,085 |
$22,157 |
$1,607,967 |
|||
CER adjustment(5) |
- |
- |
- |
- |
- |
- |
|||
Total AUMA, CER basis |
$195,212 |
$145,240 |
$214,273 |
$1,031,085 |
$22,157 |
$1,607,967 |
|||
Global WAM Managed AUMA |
|||||||||
Global WAM AUMA |
$1,031,085 |
||||||||
AUM managed by Global
WAM for Manulife’s other
segments
|
226,752 |
||||||||
Total |
$1,257,837 |
||||||||
119 |
2024 Annual Report |
Management’s Discussion and Analysis |
CAD $ |
US $(4) |
||||||||
September 30, 2024 |
September 30, 2024 |
||||||||
As at |
Asia |
Canada |
U.S. |
Global WAM |
Corporate
and Other
|
Total |
Asia |
U.S. |
|
Total invested assets |
|||||||||
Manulife Bank net
lending assets
|
$- |
$26,371 |
$- |
$- |
$- |
$26,371 |
$- |
$- |
|
Derivative
reclassification(1)
|
- |
- |
- |
- |
2,420 |
2,420 |
- |
- |
|
Invested assets excluding
above items
|
160,377 |
81,874 |
134,164 |
9,464 |
14,482 |
400,361 |
118,748 |
99,311 |
|
Total |
160,377 |
108,245 |
134,164 |
9,464 |
16,902 |
429,152 |
118,748 |
99,311 |
|
Segregated funds net
assets
|
|||||||||
Segregated funds net
assets - Institutional
|
- |
- |
- |
3,289 |
- |
3,289 |
- |
- |
|
Segregated funds net
assets - Other(2)
|
28,163 |
37,902 |
74,916 |
278,759 |
(50) |
419,690 |
20,852 |
55,454 |
|
Total |
28,163 |
37,902 |
74,916 |
282,048 |
(50) |
422,979 |
20,852 |
55,454 |
|
AUM per financial
statements
|
188,540 |
146,147 |
209,080 |
291,512 |
16,852 |
852,131 |
139,600 |
154,765 |
|
Mutual funds |
- |
- |
- |
321,210 |
- |
321,210 |
- |
- |
|
Institutional asset
management(3)
|
- |
- |
- |
148,386 |
- |
148,386 |
- |
- |
|
Other funds |
- |
- |
- |
18,131 |
- |
18,131 |
- |
- |
|
Total AUM |
188,540 |
146,147 |
209,080 |
779,239 |
16,852 |
1,339,858 |
139,600 |
154,765 |
|
Assets under administration |
- |
- |
- |
211,617 |
- |
211,617 |
- |
- |
|
Total AUMA |
$188,540 |
$146,147 |
$209,080 |
$990,856 |
$16,852 |
$1,551,475 |
$139,600 |
$154,765 |
|
Total AUMA, US $(4) |
$1,148,433 |
||||||||
Total AUMA |
$188,540 |
$146,147 |
$209,080 |
$990,856 |
$16,852 |
$1,551,475 |
|||
CER adjustment(5) |
6,198 |
- |
13,388 |
43,691 |
- |
63,277 |
|||
Total AUMA, CER basis |
$194,738 |
$146,147 |
$222,468 |
$1,034,547 |
$16,852 |
$1,614,752 |
|||
Global WAM Managed AUMA |
|||||||||
Global WAM AUMA |
$990,856 |
||||||||
AUM managed by Global
WAM for Manulife’s other
segments
|
220,309 |
||||||||
Total |
$1,211,165 |
||||||||
CAD $ |
US $(4) |
||||||||
June 30, 2024 |
June 30, 2024 |
||||||||
As at |
Asia |
Canada |
U.S. |
Global WAM |
Corporate
and Other
|
Total |
Asia |
U.S. |
|
Total invested assets |
|||||||||
Manulife Bank net
lending assets
|
$- |
$26,045 |
$- |
$- |
$- |
$26,045 |
$- |
$- |
|
Derivative
reclassification(1)
|
- |
- |
- |
- |
5,546 |
5,546 |
- |
- |
|
Invested assets excluding
above items
|
148,153 |
77,422 |
130,453 |
8,989 |
14,011 |
379,028 |
108,216 |
95,335 |
|
Total |
148,153 |
103,467 |
130,453 |
8,989 |
19,557 |
410,619 |
108,216 |
95,335 |
|
Segregated funds net
assets
|
|||||||||
Segregated funds net
assets - Institutional
|
- |
- |
- |
3,380 |
- |
3,380 |
- |
- |
|
Segregated funds net
assets - Other(2)
|
26,468 |
36,595 |
72,950 |
266,759 |
(46) |
402,726 |
19,333 |
53,313 |
|
Total |
26,468 |
36,595 |
72,950 |
270,139 |
(46) |
406,106 |
19,333 |
53,313 |
|
AUM per financial
statements
|
174,621 |
140,062 |
203,403 |
279,128 |
19,511 |
816,725 |
127,549 |
148,648 |
|
Mutual funds |
- |
- |
- |
304,214 |
- |
304,214 |
- |
- |
|
Institutional asset
management(3)
|
- |
- |
- |
142,314 |
- |
142,314 |
- |
- |
|
Other funds |
- |
- |
- |
17,202 |
- |
17,202 |
- |
- |
|
Total AUM |
174,621 |
140,062 |
203,403 |
742,858 |
19,511 |
1,280,455 |
127,549 |
148,648 |
|
Assets under administration |
- |
- |
- |
201,064 |
- |
201,064 |
- |
- |
|
Total AUMA |
$174,621 |
$140,062 |
$203,403 |
$943,922 |
$19,511 |
$1,481,519 |
$127,549 |
$148,648 |
|
Total AUMA, US $(4) |
$1,082,705 |
||||||||
Total AUMA |
$174,621 |
$140,062 |
$203,403 |
$943,922 |
$19,511 |
$1,481,519 |
|||
CER adjustment(5) |
8,657 |
- |
10,315 |
36,282 |
- |
55,254 |
|||
Total AUMA, CER basis |
$183,278 |
$140,062 |
$213,718 |
$980,204 |
$19,511 |
$1,536,773 |
|||
Global WAM Managed AUMA |
|||||||||
Global WAM AUMA |
$943,922 |
||||||||
AUM managed by Global
WAM for Manulife’s other
segments
|
211,773 |
||||||||
Total |
$1,155,695 |
||||||||
121 |
2024 Annual Report |
Management’s Discussion and Analysis |
CAD $ |
US $(4) |
||||||||
March 31, 2024 |
March 31, 2024 |
||||||||
As at |
Asia |
Canada |
U.S. |
Global WAM |
Corporate
and Other
|
Total |
Asia |
U.S. |
|
Total invested assets |
|||||||||
Manulife Bank net
lending assets
|
$- |
$25,420 |
$- |
$- |
$- |
$25,420 |
$- |
$- |
|
Derivative
reclassification(1)
|
- |
- |
- |
- |
5,114 |
5,114 |
- |
- |
|
Invested assets excluding
above items
|
144,720 |
84,075 |
129,896 |
8,133 |
13,318 |
380,142 |
106,881 |
95,988 |
|
Total |
144,720 |
109,495 |
129,896 |
8,133 |
18,432 |
410,676 |
106,881 |
95,988 |
|
Segregated funds net
assets
|
|||||||||
Segregated funds net
assets - Institutional
|
- |
- |
- |
3,334 |
- |
3,334 |
- |
- |
|
Segregated funds net
assets - Other(2)
|
26,203 |
37,218 |
72,547 |
262,854 |
(47) |
398,775 |
19,360 |
53,609 |
|
Total |
26,203 |
37,218 |
72,547 |
266,188 |
(47) |
402,109 |
19,360 |
53,609 |
|
AUM per financial
statements
|
170,923 |
146,713 |
202,443 |
274,321 |
18,385 |
812,785 |
126,241 |
149,597 |
|
Mutual funds |
- |
- |
- |
300,178 |
- |
300,178 |
- |
- |
|
Institutional asset
management(3)
|
- |
- |
- |
121,263 |
- |
121,263 |
- |
- |
|
Other funds |
- |
- |
- |
16,981 |
- |
16,981 |
- |
- |
|
Total AUM |
170,923 |
146,713 |
202,443 |
712,743 |
18,385 |
1,251,207 |
126,241 |
149,597 |
|
Assets under administration |
- |
- |
- |
198,698 |
- |
198,698 |
- |
- |
|
Total AUMA |
$170,923 |
$146,713 |
$202,443 |
$911,441 |
$18,385 |
$1,449,905 |
$126,241 |
$149,597 |
|
Total AUMA, US $(4) |
$1,071,424 |
||||||||
Total AUMA |
$170,923 |
$146,713 |
$202,443 |
$911,441 |
$18,385 |
$1,449,905 |
|||
CER adjustment(5) |
8,902 |
- |
12,650 |
41,032 |
- |
62,584 |
|||
Total AUMA, CER basis |
$179,825 |
$146,713 |
$215,093 |
$952,473 |
$18,385 |
$1,512,489 |
|||
Global WAM Managed AUMA |
|||||||||
Global WAM AUMA |
$911,441 |
||||||||
AUM managed by Global
WAM for Manulife’s other
segments
|
211,528 |
||||||||
Total |
$1,122,969 |
||||||||
CAD $ |
US $(4) |
||||||||
December 31, 2023 |
December 31, 2023 |
||||||||
As at |
Asia |
Canada |
U.S. |
Global WAM |
Corporate
and Other
|
Total |
Asia |
U.S. |
|
Total invested assets |
|||||||||
Manulife Bank net
lending assets
|
$- |
$25,321 |
$- |
$- |
$- |
$25,321 |
$- |
$- |
|
Derivative
reclassification(1)
|
- |
- |
- |
- |
3,201 |
3,201 |
- |
- |
|
Invested assets excluding
above items
|
144,433 |
86,135 |
133,959 |
7,090 |
17,071 |
388,688 |
109,533 |
101,592 |
|
Total |
144,433 |
111,456 |
133,959 |
7,090 |
20,272 |
417,210 |
109,533 |
101,592 |
|
Segregated funds net
assets
|
|||||||||
Segregated funds net
assets - Institutional
|
- |
- |
- |
3,328 |
- |
3,328 |
- |
- |
|
Segregated funds net
assets - Other(2)
|
24,854 |
36,085 |
68,585 |
244,738 |
(46) |
374,216 |
18,846 |
52,014 |
|
Total |
24,854 |
36,085 |
68,585 |
248,066 |
(46) |
377,544 |
18,846 |
52,014 |
|
AUM per financial
statements
|
169,287 |
147,541 |
202,544 |
255,156 |
20,226 |
794,754 |
128,379 |
153,606 |
|
Mutual funds |
- |
- |
- |
277,365 |
- |
277,365 |
- |
- |
|
Institutional asset
management(3)
|
- |
- |
- |
119,161 |
- |
119,161 |
- |
- |
|
Other funds |
- |
- |
- |
15,435 |
- |
15,435 |
- |
- |
|
Total AUM |
169,287 |
147,541 |
202,544 |
667,117 |
20,226 |
1,206,715 |
128,379 |
153,606 |
|
Assets under administration |
- |
- |
- |
182,046 |
- |
182,046 |
- |
- |
|
Total AUMA |
$169,287 |
$147,541 |
$202,544 |
$849,163 |
$20,226 |
$1,388,761 |
$128,379 |
$153,606 |
|
Total AUMA, US $(4) |
$1,053,209 |
||||||||
Total AUMA |
$169,287 |
$147,541 |
$202,544 |
$849,163 |
$20,226 |
$1,388,761 |
|||
CER adjustment(5) |
10,424 |
- |
18,314 |
52,891 |
- |
81,629 |
|||
Total AUMA, CER basis |
$179,711 |
$147,541 |
$220,858 |
$902,054 |
$20,226 |
$1,470,390 |
|||
Global WAM Managed AUMA |
|||||||||
Global WAM AUMA |
$849,163 |
||||||||
AUM managed by Global
WAM for Manulife’s other
segments
|
205,814 |
||||||||
Total |
$1,054,977 |
||||||||
123 |
2024 Annual Report |
Management’s Discussion and Analysis |
As at |
Dec 31, 2024 |
Sept 30, 2024 |
June 30, 2024 |
Mar 31, 2024 |
Dec 31, 2023 |
Global WAM AUMA by business line |
|||||
Retirement |
$521,979 |
$501,173 |
$477,740 |
$467,579 |
$431,601 |
Retail |
348,938 |
335,570 |
318,269 |
316,406 |
292,629 |
Institutional asset management |
160,168 |
154,113 |
147,913 |
127,456 |
124,933 |
Total |
$1,031,085 |
$990,856 |
$943,922 |
$911,441 |
$849,163 |
Global WAM AUMA by business line, CER basis(1) |
|||||
Retirement |
$521,979 |
$526,284 |
$496,919 |
$490,525 |
$461,958 |
Retail |
348,938 |
348,933 |
329,593 |
329,572 |
309,279 |
Institutional asset management |
160,168 |
159,330 |
153,692 |
132,376 |
130,817 |
Total |
$1,031,085 |
$1,034,547 |
$980,204 |
$952,473 |
$902,054 |
Global WAM AUMA by geographic source |
|||||
Asia |
$141,098 |
$137,040 |
$128,791 |
$122,354 |
$115,523 |
Canada |
260,651 |
255,281 |
242,781 |
243,678 |
233,351 |
U.S. |
629,336 |
598,535 |
572,350 |
545,409 |
500,289 |
Total |
$1,031,085 |
$990,856 |
$943,922 |
$911,441 |
$849,163 |
Global WAM AUMA by geographic source, CER basis(1) |
|||||
Asia |
$141,098 |
$142,092 |
$135,842 |
$129,147 |
$123,036 |
Canada |
260,651 |
255,281 |
242,781 |
243,678 |
233,351 |
U.S. |
629,336 |
637,174 |
601,581 |
579,648 |
545,667 |
Total |
$1,031,085 |
$1,034,547 |
$980,204 |
$952,473 |
$902,054 |
Global WAM Managed AUMA by business line |
|||||
Retirement |
$521,979 |
$501,173 |
$477,740 |
$467,579 |
$431,601 |
Retail |
431,047 |
416,425 |
396,457 |
395,755 |
368,843 |
Institutional asset management |
304,811 |
293,567 |
281,498 |
259,635 |
254,533 |
Total |
$1,257,837 |
$1,211,165 |
$1,155,695 |
$1,122,969 |
$1,054,977 |
Global WAM Managed AUMA by business line, CER basis(1) |
|||||
Retirement |
$521,979 |
$526,284 |
$496,919 |
$490,525 |
$461,958 |
Retail |
431,047 |
433,017 |
410,229 |
411,955 |
389,726 |
Institutional asset management |
304,811 |
306,398 |
293,032 |
271,552 |
270,346 |
Total |
$1,257,837 |
$1,265,699 |
$1,200,180 |
$1,174,032 |
$1,122,030 |
Global WAM Managed AUMA by geographic source |
|||||
Asia |
$225,325 |
$219,344 |
$205,776 |
$198,464 |
$191,238 |
Canada |
312,816 |
307,051 |
292,698 |
294,591 |
282,487 |
U.S. |
719,696 |
684,770 |
657,221 |
629,914 |
581,252 |
Total |
$1,257,837 |
$1,211,165 |
$1,155,695 |
$1,122,969 |
$1,054,977 |
Global WAM Managed AUMA by geographic source, CER
basis(1)
|
|||||
Asia |
$225,325 |
$229,717 |
$216,743 |
$210,030 |
$205,616 |
Canada |
312,816 |
307,051 |
292,698 |
294,591 |
282,487 |
U.S. |
719,696 |
728,931 |
690,739 |
669,411 |
633,927 |
Total |
$1,257,837 |
$1,265,699 |
$1,200,180 |
$1,174,032 |
$1,122,030 |
As at
($ millions)
|
Dec 31, 2024 |
Sept 30, 2024 |
June 30, 2024 |
Mar 31, 2024 |
Dec 31, 2023 |
Mortgages |
$54,447 |
$54,083 |
$53,031 |
$52,605 |
$52,421 |
Less: mortgages not held by Manulife Bank |
30,039 |
29,995 |
29,324 |
29,568 |
29,536 |
Total mortgages held by Manulife Bank |
24,408 |
24,088 |
23,707 |
23,037 |
22,885 |
Loans to Bank clients |
2,310 |
2,283 |
2,338 |
2,383 |
2,436 |
Manulife Bank net lending assets |
$26,718 |
$26,371 |
$26,045 |
$25,420 |
$25,321 |
Manulife Bank average net lending assets |
|||||
Beginning of period |
$26,371 |
$26,045 |
$25,420 |
$25,321 |
$25,123 |
End of period |
26,718 |
26,371 |
26,045 |
25,420 |
25,321 |
Manulife Bank average net lending assets by quarter |
$26,545 |
$26,208 |
$25,733 |
$25,371 |
$25,222 |
Manulife Bank average net lending assets – full year |
$26,020 |
$25,050 |
As at
($ millions)
|
Dec 31, 2024 |
Sept 30, 2024 |
June 30, 2024 |
Mar 31, 2024 |
Dec 31, 2023 |
Common shareholders’ equity |
$44,312 |
$42,913 |
$42,305 |
$41,590 |
$40,379 |
Post-tax CSM, net of NCI |
19,682 |
18,595 |
18,290 |
18,547 |
17,748 |
Adjusted book value |
$63,994 |
$61,508 |
$60,595 |
$60,137 |
$58,127 |
As at
($ millions)
|
Dec 31, 2024 |
Sept 30, 2024 |
June 30, 2024 |
Mar 31, 2024 |
Dec 31, 2023 |
Total equity |
$52,960 |
$51,639 |
$50,756 |
$49,892 |
$48,727 |
Less: AOCI gain/(loss) on cash flow hedges |
119 |
70 |
95 |
70 |
26 |
Total equity excluding AOCI on cash flow hedges |
52,841 |
51,569 |
50,661 |
49,822 |
48,701 |
Post-tax CSM |
20,826 |
19,725 |
19,184 |
19,425 |
18,503 |
Qualifying capital instruments |
7,532 |
6,997 |
7,714 |
7,196 |
6,667 |
Consolidated capital |
$81,199 |
$78,291 |
$77,559 |
$76,443 |
$73,871 |
125 |
2024 Annual Report |
Management’s Discussion and Analysis |
Quarterly Results |
Full Year Results |
||||||
4Q24 |
3Q24 |
2Q24 |
1Q24 |
4Q23 |
2024 |
2023 |
|
Global WAM core earnings (post-tax) |
$481 |
$499 |
$399 |
$357 |
$353 |
$1,736 |
$1,321 |
Add back taxes, acquisition costs, other expenses and
deferred sales commissions
|
|||||||
Core income tax (expenses) recoveries (see above) |
61 |
6 |
46 |
58 |
55 |
171 |
204 |
Amortization of deferred acquisition costs and other
depreciation
|
49 |
48 |
49 |
42 |
45 |
188 |
166 |
Amortization of deferred sales commissions |
20 |
19 |
19 |
20 |
21 |
78 |
80 |
Core EBITDA |
$611 |
$572 |
$513 |
$477 |
$474 |
$2,173 |
$1,771 |
CER adjustment(1) |
- |
11 |
7 |
13 |
7 |
31 |
39 |
Core EBITDA, CER basis |
$611 |
$583 |
$520 |
$490 |
$481 |
$2,204 |
$1,810 |
Core EBITDA by business line |
|||||||
Retirement |
$330 |
$320 |
$284 |
$265 |
$265 |
$1,199 |
$957 |
Retail |
214 |
200 |
181 |
178 |
175 |
773 |
704 |
Institutional asset management |
67 |
52 |
48 |
34 |
34 |
201 |
110 |
Total |
$611 |
$572 |
$513 |
$477 |
$474 |
$2,173 |
$1,771 |
Core EBITDA by geographic source |
|||||||
Asia |
$167 |
$157 |
$144 |
$139 |
$135 |
$607 |
$505 |
Canada |
160 |
157 |
133 |
139 |
152 |
589 |
582 |
U.S. |
284 |
258 |
236 |
199 |
187 |
977 |
684 |
Total |
$611 |
$572 |
$513 |
$477 |
$474 |
$2,173 |
$1,771 |
Core EBITDA by business line, CER basis(2) |
|||||||
Retirement |
$330 |
$326 |
$288 |
$273 |
$270 |
$1,217 |
$981 |
Retail |
214 |
203 |
183 |
182 |
177 |
782 |
715 |
Institutional asset management |
67 |
54 |
49 |
35 |
34 |
205 |
114 |
Total, CER basis |
$611 |
$583 |
$520 |
$490 |
$481 |
$2,204 |
$1,810 |
Core EBITDA by geographic source, CER basis(2) |
|||||||
Asia |
$167 |
$162 |
$146 |
$144 |
$138 |
$619 |
$520 |
Canada |
160 |
157 |
133 |
139 |
152 |
589 |
582 |
U.S. |
284 |
264 |
241 |
207 |
191 |
996 |
708 |
Total, CER basis |
$611 |
$583 |
$520 |
$490 |
$481 |
$2,204 |
$1,810 |
Quarterly Results |
Full Year Results |
||||||
($ millions, unless otherwise stated) |
4Q24 |
3Q24 |
2Q24 |
1Q24 |
4Q23 |
2024 |
2023 |
Core EBITDA margin |
|||||||
Core EBITDA |
$611 |
$572 |
$513 |
$477 |
$474 |
$2,173 |
$1,771 |
Core revenue |
$2,140 |
$2,055 |
$1,948 |
$1,873 |
$1,842 |
$8,016 |
$7,103 |
Core EBITDA margin |
28.6% |
27.8% |
26.3% |
25.5% |
25.7% |
27.1% |
24.9% |
Global WAM core revenue |
|||||||
Other revenue per financial statements |
$2,003 |
$1,928 |
$1,849 |
$1,808 |
$1,719 |
$7,588 |
$6,746 |
Less: Other revenue in segments other than Global WAM |
(2) |
53 |
40 |
58 |
31 |
149 |
37 |
Other revenue in Global WAM (fee income) |
$2,005 |
$1,875 |
$1,809 |
$1,750 |
$1,688 |
$7,439 |
$6,709 |
Investment income per financial statements |
$5,250 |
$4,487 |
$4,261 |
$4,251 |
$4,497 |
$18,249 |
$16,180 |
Realized and unrealized gains (losses) on assets
supporting insurance and investment contract liabilities
per financial statements
|
(622) |
1,730 |
564 |
538 |
2,674 |
2,210 |
3,138 |
Total investment income |
4,628 |
6,217 |
4,825 |
4,789 |
7,171 |
20,459 |
19,318 |
Less: Investment income in segments other than Global
WAM
|
4,550 |
5,991 |
4,687 |
4,649 |
6,941 |
19,877 |
18,886 |
Investment income in Global WAM |
$78 |
$226 |
$138 |
$140 |
$230 |
$582 |
$432 |
Total other revenue and investment income in Global WAM |
$2,083 |
$2,101 |
$1,947 |
$1,890 |
$1,918 |
$8,021 |
$7,141 |
Less: Total revenue reported in items excluded from core
earnings
|
|||||||
Market experience gains (losses) |
(28) |
33 |
(9) |
8 |
63 |
4 |
28 |
Revenue related to integration and acquisitions |
(29) |
13 |
8 |
9 |
13 |
1 |
10 |
Global WAM core revenue |
$2,140 |
$2,055 |
$1,948 |
$1,873 |
$1,842 |
$8,016 |
$7,103 |
127 |
2024 Annual Report |
Management’s Discussion and Analysis |
Quarterly Results |
Full Year Results |
||||||
($ millions, and based on actual foreign exchange rates in effect in the
applicable reporting period, unless otherwise stated)
|
4Q24 |
3Q24 |
2Q24 |
1Q24 |
4Q23 |
2024 |
2023 |
Core expenses |
|||||||
General expenses - Statements of Income |
$1,328 |
$1,204 |
$1,225 |
$1,102 |
$1,180 |
$4,859 |
$4,330 |
Directly attributable acquisition expense for contracts measured
using the PAA method and for other products without a CSM(1)
|
43 |
36 |
39 |
38 |
42 |
156 |
147 |
Directly attributable maintenance expense(1) |
517 |
509 |
509 |
539 |
565 |
2,074 |
2,205 |
Total expenses |
1,888 |
1,749 |
1,773 |
1,679 |
1,787 |
7,089 |
6,682 |
Less: General expenses included in items excluded from core
earnings
|
|||||||
Restructuring charge |
67 |
25 |
- |
- |
46 |
92 |
46 |
Integration and acquisition |
- |
- |
57 |
- |
8 |
57 |
8 |
Legal provisions and Other expenses |
24 |
8 |
3 |
6 |
8 |
41 |
78 |
Total |
91 |
33 |
60 |
6 |
62 |
190 |
132 |
Core expenses |
$1,797 |
$1,716 |
$1,713 |
$1,673 |
$1,725 |
$6,899 |
$6,550 |
CER adjustment(2) |
- |
22 |
28 |
36 |
27 |
86 |
114 |
Core expenses, CER basis |
$1,797 |
$1,738 |
$1,741 |
$1,709 |
$1,752 |
$6,985 |
$6,664 |
Total expenses |
$1,888 |
$1,749 |
$1,773 |
$1,679 |
$1,787 |
$7,089 |
$6,682 |
CER adjustment(2) |
- |
22 |
29 |
37 |
28 |
88 |
117 |
Total expenses, CER basis |
$1,888 |
$1,771 |
$1,802 |
$1,716 |
$1,815 |
$7,177 |
$6,799 |
Quarterly Results |
Full Year Results |
||||||
($ millions, unless otherwise stated) |
4Q24 |
3Q24 |
2Q24 |
1Q24 |
4Q23 |
2024 |
2023 |
Income before income taxes |
$2,113 |
$2,341 |
$1,384 |
$1,252 |
$2,123 |
$7,090 |
$6,452 |
Less: Income before income taxes for segments
other than Global WAM
|
1,694 |
1,822 |
1,001 |
826 |
1,699 |
5,343 |
4,955 |
Global WAM income before income taxes |
419 |
519 |
383 |
426 |
424 |
1,747 |
1,497 |
Items unrelated to net fee income |
882 |
677 |
771 |
665 |
648 |
2,995 |
2,715 |
Global WAM net fee income |
1,301 |
1,196 |
1,154 |
1,091 |
1,072 |
4,742 |
4,212 |
Less: Net fee income from other segments |
181 |
169 |
169 |
155 |
174 |
674 |
624 |
Global WAM net fee income excluding net fee
income from other segments
|
1,120 |
1,027 |
985 |
936 |
898 |
4,068 |
3,588 |
Net annualized fee income |
$4,455 |
$4,084 |
$3,963 |
$3,765 |
$3,563 |
$4,068 |
$3,588 |
Average Assets under Management and
Administration
|
$1,015,454 |
$963,003 |
$933,061 |
$879,837 |
$816,706 |
$946,087 |
$812,662 |
Net fee income yield (bps) |
43.9 |
42.4 |
42.5 |
42.8 |
43.6 |
43.0 |
44.2 |
129 |
2024 Annual Report |
Management’s Discussion and Analysis |
131 |
2024 Annual Report |
Management’s Discussion and Analysis |
For the year ended December 31, 2017 |
|
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period) |
|
2017 core earnings of highest potential businesses(1) |
$2,475 |
2017 core earnings - All other businesses excl. core investment gains |
1,690 |
Core investment gains(2) |
400 |
2017 core earnings |
4,565 |
Items excluded from 2017 core earnings |
(2,461) |
Net income (loss) attributed to shareholders |
$2,104 |
Highest potential businesses 2017 core earnings contribution |
54% |
For the year ended December 31, 2017 |
|
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period) |
|
2017 core earnings of Asia region(1) |
$1,663 |
2017 core earnings - All other businesses excl. core investment gains |
2,502 |
Core investment gains(2) |
400 |
2017 core earnings |
4,565 |
Items excluded from 2017 core earnings |
(2,461) |
Net income (loss) attributed to shareholders |
$2,104 |
Asia region 2017 core earnings contribution |
36% |
For the year ended December 31, 2017 |
|
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period) |
|
2017 core earnings of LTC and VA businesses(1) |
$1,112 |
2017 core earnings - All other businesses excl. core investment gains |
3,053 |
Core investment gains(2) |
400 |
2017 core earnings |
4,565 |
Items excluded from 2017 core earnings |
(2,461) |
Net income (loss) attributed to shareholders |
$2,104 |
LTC and VA businesses 2017 core earnings contribution |
24% |
133 |
2024 Annual Report |
Management’s Discussion and Analysis |
Payments due by period
($ millions)
|
Total |
Less than
1 year
|
1 to 3
years
|
3 to 5
years
|
Over
5 years
|
Long-term debt(1) |
$10,200 |
$247 |
$3,211 |
$297 |
$6,445 |
Liabilities for capital instruments(1) |
10,704 |
321 |
681 |
732 |
8,970 |
Investment commitments |
15,367 |
4,360 |
5,219 |
4,314 |
1,474 |
Lease liabilities |
355 |
105 |
151 |
52 |
47 |
Insurance contract liabilities(2) |
1,383,939 |
4,223 |
9,977 |
21,385 |
1,348,354 |
Reinsurance contract held liabilities(2) |
(9,483) |
250 |
925 |
792 |
(11,450) |
Investment contract liabilities(3) |
322,793 |
316,119 |
2,766 |
1,170 |
2,738 |
Deposits from Bank clients |
22,063 |
15,690 |
3,774 |
2,599 |
- |
Other |
5,229 |
1,377 |
2,441 |
951 |
460 |
Total contractual obligations |
$1,761,167 |
$342,692 |
$29,145 |
$32,292 |
$1,357,038 |
As at and for the three months ended |
Dec 31,
2024
|
Sept 30,
2024
|
June 30,
2024
|
Mar 31,
2024
|
Dec 31,
2023
|
Sept 30,
2023
|
June 30,
2023
|
Mar 31,
2023
|
($ millions, except per share amounts or otherwise stated) | ||||||||
Revenue |
||||||||
Insurance revenue |
$6,834 |
$6,746 |
$6,515 |
$6,497 |
$6,414 |
$6,215 |
$5,580 |
$5,763 |
Net investment result |
4,194 |
5,912 |
4,512 |
4,493 |
6,784 |
1,265 |
4,819 |
5,153 |
Other revenue |
2,003 |
1,928 |
1,849 |
1,808 |
1,719 |
1,645 |
1,691 |
1,691 |
Total revenue |
$13,031 |
$14,586 |
$12,876 |
$12,798 |
$14,917 |
$9,125 |
$12,090 |
$12,607 |
Income (loss) before income taxes |
$2,113 |
$2,341 |
$1,384 |
$1,252 |
$2,123 |
$1,174 |
$1,436 |
$1,719 |
Income tax (expense) recovery |
(406) |
(274) |
(252) |
(280) |
(322) |
51 |
(265) |
(309) |
Net income (loss) |
$1,707 |
$2,067 |
$1,132 |
$972 |
$1,801 |
$1,225 |
$1,171 |
$1,410 |
Net income (loss) attributed to
shareholders
|
$1,638 |
$1,839 |
$1,042 |
$866 |
$1,659 |
$1,013 |
$1,025 |
$1,406 |
Basic earnings (loss) per common share |
$0.88 |
$1.01 |
$0.53 |
$0.45 |
$0.86 |
$0.53 |
$0.50 |
$0.73 |
Diluted earnings (loss) per common share |
$0.88 |
$1.00 |
$0.52 |
$0.45 |
$0.86 |
$0.52 |
$0.50 |
$0.73 |
Segregated funds deposits |
$11,927 |
$11,545 |
$11,324 |
$12,206 |
$10,361 |
$10,172 |
$10,147 |
$11,479 |
Total assets (in billions) |
$979 |
$953 |
$915 |
$907 |
$876 |
$836 |
$851 |
$862 |
Weighted average common shares (in
millions)
|
1,746 |
1,774 |
1,793 |
1,805 |
1,810 |
1,826 |
1,842 |
1,858 |
Diluted weighted average common shares
(in millions)
|
1,752 |
1,780 |
1,799 |
1,810 |
1,814 |
1,829 |
1,846 |
1,862 |
Dividends per common share |
$0.400 |
$0.400 |
$0.400 |
$0.400 |
$0.365 |
$0.365 |
$0.365 |
$0.365 |
CDN$ to US$1 - Statement of Financial
Position
|
1.4382 |
1.3510 |
1.3684 |
1.3533 |
1.3186 |
1.3520 |
1.3233 |
1.3534 |
CDN$ to US$1 - Statement of Income |
1.3987 |
1.3639 |
1.3682 |
1.3485 |
1.3612 |
1.3411 |
1.3430 |
1.3524 |
135 |
2024 Annual Report |
Management’s Discussion and Analysis |
As at and for the years ended December 31, |
|||
($ millions, except per share amounts) |
2024 |
2023 |
2022 |
Revenue |
|||
Asia |
$13,641 |
$11,996 |
$6,051 |
Canada |
14,624 |
13,793 |
7,299 |
U.S. |
16,279 |
15,322 |
11,048 |
Global Wealth and Asset Management |
6,698 |
5,896 |
5,267 |
Corporate and Other |
2,049 |
1,732 |
(24) |
Total revenue |
$53,291 |
$48,739 |
$29,641 |
Total assets |
$978,818 |
$875,574 |
$833,689 |
Long-term financial liabilities |
|||
Long-term debt |
$6,629 |
$6,071 |
$6,234 |
Capital instruments |
7,532 |
6,667 |
6,122 |
Total financial liabilities |
$14,161 |
$12,738 |
$12,356 |
Dividend per common share |
$1.60 |
$1.46 |
$1.32 |
Cash dividend per Class A Share, Series 2 |
1.1625 |
1.1625 |
1.1625 |
Cash dividend per Class A Share, Series 3 |
1.125 |
1.125 |
1.125 |
Cash dividend per Class 1 Share, Series 3 |
0.5870 |
0.5870 |
0.5870 |
Cash dividend per Class 1 Share, Series 4 |
1.5578 |
1.4946 |
0.6814 |
Cash dividend per Class 1 Share, Series 7(1) |
- |
- |
0.2695 |
Cash dividend per Class 1 Share, Series 9 |
1.4945 |
1.4945 |
1.1894 |
Cash dividend per Class 1 Share, Series 11 |
1.5398 |
1.4505 |
1.1828 |
Cash dividend per Class 1 Share, Series 13 |
1.5875 |
1.2245 |
1.1035 |
Cash dividend per Class 1 Share, Series 15 |
1.1951 |
0.9465 |
0.9465 |
Cash dividend per Class 1 Share, Series 17 |
0.950 |
0.950 |
0.950 |
Cash dividend per Class 1 Share, Series 19 |
0.9188 |
0.9188 |
0.9188 |
Cash dividend per Class 1 Share, Series 23(2) |
- |
- |
0.3031 |
Cash dividend per Class 1 Share, Series 25 |
1.4855 |
1.3303 |
1.175 |
Revenue |
Quarterly Results |
Full Year Results |
||
($ millions) |
4Q24 |
4Q23 |
2024 |
2023 |
Insurance revenue |
$6,834 |
$6,414 |
$26,592 |
$23,972 |
Net investment income |
4,194 |
6,784 |
19,111 |
18,021 |
Other revenue |
2,003 |
1,719 |
7,588 |
6,746 |
Total revenue |
$13,031 |
$14,917 |
$53,291 |
$48,739 |
Asia |
$2,927 |
$3,572 |
$13,641 |
$11,996 |
Canada |
3,682 |
4,663 |
14,624 |
13,793 |
U.S. |
4,055 |
4,566 |
16,279 |
15,322 |
Global Wealth and Asset Management |
1,738 |
1,632 |
6,698 |
5,896 |
Corporate and Other |
629 |
484 |
2,049 |
1,732 |
Total revenue |
$13,031 |
$14,917 |
$53,291 |
$48,739 |
Page | 2 |
TABLE OF CONTENTS |
Annual
Information Form
|
Management's
Discussion & Analysis
Reference
|
13-18 |
||
BUSINESS OPERATIONS |
3-37 |
|
41-78 |
||
DIRECTORS AND EXECUTIVE OFFICERS |
||
INTERESTS OF EXPERTS |
||
AUDIT COMMITTEE |
||
SCHEDULE 1 - AUDIT COMMITTEE CHARTER |
Page | 3 |
Page | 4 |
Page | 5 |
Page | 6 |
Page | 7 |
Page | 8 |
Page | 9 |
Page | 10 |
Page | 11 |
Page | 12 |
Page | 13 |
Page | 14 |
Page | 15 |
Page | 16 |
Common Shares |
1,728,734,607 |
Class A Shares Series 2 |
14,000,000 |
Class A Shares Series 3 |
12,000,000 |
Class 1 Shares Series 3 |
6,537,903 |
Class 1 Shares Series 4 |
1,462,097 |
Class 1 Shares Series 9 |
10,000,000 |
Class 1 Shares Series 11 |
8,000,000 |
Class 1 Shares Series 13 |
8,000,000 |
Class 1 Shares Series 15 |
8,000,000 |
Class 1 Shares Series 17 |
14,000,000 |
Class 1 Shares Series 19 |
10,000,000 |
Class 1 Shares Series 25 |
10,000,000 |
Class 1 Shares Series 275 |
2,000,000 |
Class 1 Shares Series 286 |
1,200,000 |
Class 1 Shares Series 297 |
1,000,000 |
Page | 17 |
Page | 18 |
Page | 19 |
Type of Shares |
2024 |
2023 |
2022 |
Common Shares |
$1.6000 |
$1.4600 |
$1.3200 |
Preferred Shares |
|||
Class A Shares Series 2 |
$1.1625 |
$1.1625 |
$1.1625 |
Class A Shares Series 3 |
$1.1250 |
$1.1250 |
$1.1250 |
Class 1 Shares Series 3 |
$0.5870 |
$0.5870 |
$0.5870 |
Class 1 Shares Series 4 |
$1.5578 |
$1.4946 |
$0.6814 |
Class 1 Shares Series 7 |
- |
- |
$0.2695 |
Class 1 Shares Series 9 |
$1.4945 |
$1.4945 |
$1.1894 |
Class 1 Shares Series 11 |
$1.5398 |
$1.4505 |
$1.1827 |
Class 1 Shares Series 13 |
$1.5875 |
$1.2245 |
$1.1035 |
Class 1 Shares Series 15 |
$1.1951 |
$0.9465 |
$0.9465 |
Class 1 Shares Series 17 |
$0.9500 |
$0.9500 |
$0.9500 |
Class 1 Shares Series 19 |
$0.9188 |
$0.9188 |
$0.9188 |
Class 1 Shares Series 23 |
- |
- |
$0.3031 |
Class 1 Shares Series 25 |
$1.4855 |
$1.3303 |
$1.1750 |
Class 1 Shares Series 27 |
- |
- |
- |
Class 1 Shares Series 28 |
- |
- |
- |
Class 1 Shares Series 29 |
- |
- |
- |
Page | 20 |
Page | 21 |
AM Best Company
(“AM Best”)
|
DBRS Limited &
affiliated entities
(“Morningstar DBRS”)
|
Fitch Ratings Inc.
(“Fitch”)
|
S&P Global Ratings
(“S&P”)
|
||||||
Securities |
Rating |
Rank |
Rating |
Rank |
Rating/ |
Rank |
Rating |
Rank |
|
Preferred
Shares
|
bbb |
9 of 21 |
Pfd-2 (high) |
4 of 16 |
BBB |
9 of 21 |
P-2 (high),
BBB+
|
4 of
18,
6 of 20
|
|
Medium Term
Notes and
Senior Debt
|
a- |
7 of 21 |
A (high) |
5 of 26 |
A |
6 of 21 |
A |
6 of 22 |
|
Subordinated
Debt
|
bbb+ |
8 of 21 |
A |
6 of 26 |
A- |
7 of 21 |
A- |
7 of 22 |
|
Limited
Recourse
Capital Notes
|
bbb+ |
8 of 21 |
A (low) |
7 of 26 |
BBB |
9 of 21 |
BBB+ |
8 of 22 |
|
Page | 22 |
Page | 23 |
2024 |
TSX |
NYSE |
||||
High
(C$)
|
Low
(C$)
|
Volume
(000s)
|
High (U.S.$) |
Low (U.S.
$)
|
Volume
(000s)
|
|
January |
29.98 |
28.06 |
107,004 |
22.39 |
20.78 |
11,435 |
February |
33.59 |
28.95 |
168,935 |
24.89 |
21.55 |
25,611 |
March |
34.05 |
31.84 |
139,898 |
25.14 |
23.57 |
19,712 |
April |
34.04 |
31.24 |
92,212 |
25.05 |
22.62 |
10,489 |
May |
36.61 |
32.00 |
183,955 |
26.81 |
23.29 |
12,888 |
June |
36.62 |
34.05 |
131,437 |
26.77 |
24.73 |
9,356 |
July |
37.46 |
35.40 |
105,813 |
27.50 |
25.64 |
9,108 |
August |
37.34 |
32.87 |
202,168 |
27.74 |
23.31 |
9,343 |
September |
40.27 |
36.57 |
120,380 |
29.87 |
26.93 |
6,428 |
October |
42.52 |
39.46 |
97,293 |
30.86 |
29.07 |
8,096 |
November |
46.42 |
40.80 |
159,388 |
33.05 |
29.29 |
8,922 |
December |
46.13 |
42.73 |
120,372 |
32.86 |
29.59 |
8,149 |
Page | 24 |
2024 |
TSX – Class A Shares Series 2 |
TSX – Class A Shares Series 3 |
||||
High
(C$)
|
Low
(C$)
|
Volume
(000s)
|
High
(C$)
|
Low
(C$)
|
Volume
(000s)
|
|
January |
19.47 |
18.91 |
157 |
19.13 |
18.30 |
159 |
February |
19.84 |
19.00 |
113 |
19.44 |
18.75 |
70 |
March |
19.49 |
18.92 |
145 |
19.07 |
18.33 |
51 |
April |
19.25 |
18.12 |
89 |
18.96 |
17.50 |
115 |
May |
19.72 |
18.53 |
119 |
19.12 |
17.95 |
90 |
June |
19.77 |
18.87 |
116 |
19.22 |
18.31 |
400 |
July |
20.19 |
19.25 |
165 |
19.76 |
18.77 |
149 |
August |
20.90 |
20.10 |
99 |
20.52 |
19.53 |
123 |
September |
21.02 |
20.46 |
754 |
20.64 |
20.07 |
296 |
October |
21.00 |
20.06 |
209 |
20.29 |
19.70 |
95 |
November |
20.36 |
19.41 |
280 |
19.97 |
19.00 |
92 |
December |
20.77 |
19.77 |
103 |
20.19 |
19.40 |
92 |
2024 |
TSX – Class 1 Shares Series 3 |
TSX – Class 1 Shares Series 4 |
||||
High
(C$)
|
Low
(C$)
|
Volume
(000s)
|
High
(C$)
|
Low
(C$)
|
Volume
(000s)
|
|
January |
15.28 |
14.30 |
295 |
16.70 |
15.51 |
12 |
February |
15.35 |
14.65 |
197 |
16.90 |
16.32 |
11 |
March |
15.35 |
14.43 |
227 |
16.50 |
16.00 |
30 |
April |
16.75 |
15.08 |
337 |
17.00 |
16.25 |
16 |
May |
18.15 |
16.67 |
544 |
19.43 |
17.55 |
26 |
June |
17.20 |
15.04 |
102 |
18.50 |
16.72 |
16 |
July |
18.00 |
16.19 |
459 |
18.20 |
17.15 |
17 |
August |
17.06 |
16.03 |
173 |
18.20 |
17.00 |
25 |
September |
16.97 |
16.30 |
84 |
17.05 |
16.00 |
9 |
October |
16.45 |
16.05 |
35 |
17.28 |
16.50 |
21 |
November |
16.70 |
16.00 |
91 |
17.10 |
16.51 |
18 |
December |
17.04 |
16.60 |
174 |
17.32 |
16.65 |
11 |
2024 |
TSX – Class 1 Shares Series 9 |
TSX – Class 1 Shares Series 11 |
||||
High
(C$)
|
Low
(C$)
|
Volume
(000s)
|
High
(C$)
|
Low
(C$)
|
Volume
(000s)
|
|
January |
23.05 |
22.50 |
209 |
23.28 |
22.57 |
151 |
February |
23.20 |
21.97 |
148 |
23.33 |
22.00 |
59 |
March |
22.76 |
21.95 |
144 |
22.79 |
22.01 |
145 |
April |
23.51 |
22.32 |
70 |
23.48 |
22.30 |
55 |
May |
25.00 |
23.21 |
184 |
24.75 |
23.40 |
98 |
June |
24.55 |
22.41 |
76 |
24.50 |
22.40 |
139 |
July |
24.79 |
23.69 |
89 |
24.68 |
23.49 |
106 |
August |
24.93 |
24.15 |
193 |
24.80 |
24.01 |
79 |
September |
24.75 |
24.35 |
197 |
24.85 |
24.30 |
67 |
October |
24.62 |
24.03 |
69 |
24.42 |
24.05 |
104 |
November |
24.43 |
23.85 |
680 |
24.28 |
23.73 |
75 |
December |
24.73 |
24.01 |
88 |
24.85 |
23.95 |
59 |
Page | 25 |
2024 |
TSX – Class 1 Shares Series 13 |
TSX – Class 1 Shares Series 15 |
||||
High
(C$)
|
Low
(C$)
|
Volume
(000s)
|
High
(C$)
|
Low
(C$)
|
Volume
(000s)
|
|
January |
23.05 |
22.40 |
362 |
19.86 |
18.90 |
122 |
February |
23.11 |
21.94 |
195 |
19.92 |
19.34 |
68 |
March |
22.66 |
21.78 |
107 |
20.21 |
19.49 |
94 |
April |
22.95 |
22.21 |
145 |
22.18 |
19.50 |
198 |
May |
23.97 |
22.90 |
109 |
22.53 |
21.22 |
156 |
June |
23.90 |
22.00 |
372 |
22.06 |
19.09 |
158 |
July |
24.35 |
23.41 |
219 |
22.50 |
21.80 |
116 |
August |
24.69 |
23.77 |
128 |
23.45 |
22.02 |
600 |
September |
24.74 |
24.06 |
129 |
23.41 |
23.10 |
183 |
October |
24.60 |
24.15 |
178 |
23.70 |
23.00 |
165 |
November |
24.60 |
23.88 |
216 |
23.36 |
22.82 |
257 |
December |
24.47 |
23.89 |
168 |
23.00 |
22.61 |
67 |
2024 |
TSX – Class 1 Shares Series 17 |
TSX – Class 1 Shares Series 19 |
||||
High
(C$)
|
Low
(C$)
|
Volume
(000s)
|
High
(C$)
|
Low
(C$)
|
Volume
(000s)
|
|
January |
20.00 |
18.48 |
237 |
19.43 |
18.15 |
212 |
February |
19.67 |
19.09 |
97 |
19.44 |
18.93 |
119 |
March |
20.51 |
19.14 |
91 |
20.19 |
18.95 |
59 |
April |
21.35 |
19.98 |
303 |
20.82 |
19.70 |
142 |
May |
22.05 |
21.08 |
245 |
21.60 |
20.88 |
150 |
June |
21.85 |
19.57 |
195 |
21.32 |
19.05 |
184 |
July |
22.41 |
21.54 |
324 |
22.31 |
21.25 |
201 |
August |
22.13 |
21.06 |
339 |
22.22 |
21.20 |
294 |
September |
22.21 |
20.99 |
312 |
22.01 |
20.80 |
111 |
October |
22.23 |
21.30 |
394 |
21.58 |
20.72 |
221 |
November |
22.21 |
21.70 |
789 |
21.58 |
20.87 |
79 |
December |
22.80 |
22.00 |
278 |
21.68 |
20.69 |
199 |
2024 |
TSX – Class 1 Shares Series 25 |
||
High
(C$)
|
Low
(C$)
|
Volume
(000s)
|
|
January |
22.79 |
22.20 |
167 |
February |
22.75 |
21.40 |
56 |
March |
22.19 |
21.42 |
49 |
April |
22.41 |
21.54 |
69 |
May |
24.60 |
22.33 |
250 |
June |
24.14 |
21.87 |
220 |
July |
24.34 |
23.16 |
204 |
August |
24.90 |
23.79 |
98 |
September |
24.65 |
24.00 |
171 |
October |
24.44 |
23.84 |
237 |
November |
24.28 |
23.81 |
90 |
December |
24.41 |
23.70 |
200 |
Page | 26 |
Designation of class |
Number of securities held in
escrow or that are subject to a
contractual restriction on transfer
|
Percentage of class |
Class 1 Shares Series 27 |
2,000,000 |
2.49% |
Class 1 Shares Series 28 |
1,200,000 |
1.50% |
Class 1 Shares Series 29 |
1,000,000 |
1.25% |
Page | 27 |
Name and
Residence
|
Principal Occupation |
Director Since |
Board
Committee
Membership (1)
|
Donald R. Lindsay
British Columbia, Canada
|
Chair of the Board, MFC and MLI (2) |
August 2010 |
CGNC(3) |
Roy Gori
Ontario, Canada
|
President and Chief Executive
Officer, MFC and MLI (4)
|
October 2017 |
N/A (4) |
Nicole S. Arnaboldi
Connecticut, United States
|
Partner, Oak Hill Capital Management, LLC (private
equity company) (5)
|
June 2020 |
MRCC (Chair)
Risk
|
Guy L.T. Bainbridge
Edinburgh, UK
|
Corporate Director |
August 2019 |
Audit (Chair)
CGNC
|
Susan F. Dabarno
Ontario, Canada
|
Corporate Director |
March 2013 |
MRCC
Risk
|
Julie E. Dickson
Ontario, Canada
|
Corporate Director |
August 2019 |
Audit
CGNC
|
J. Michael Durland
Ontario, Canada
|
Chief Executive Officer, Melancthon Capital
Corporation (venture capital firm)
|
March 2024 |
Audit
CGNC
|
Donald P. Kanak
Washington, United States
|
Corporate Director (6) |
March 2024 |
MRCC
Risk
|
Anna Manning
Ontario, Canada
|
Corporate Director (7) |
August 2024 |
MRCC
Risk
|
C. James Prieur
Illinois, United States
|
Corporate Director |
January 2013 |
MRCC
Risk (Chair)
|
May Tan
Hong Kong, People’s
Republic of China
|
Corporate Director |
December 2021 |
Audit
CGNC (Chair)
|
Leagh E. Turner
Ontario, Canada
|
CEO, Coupa Software Inc. (software company) (8) |
November 2020 |
MRCC
Risk
|
John W. P-K Wong
Hong Kong, People's
Republic of China
|
Corporate Director (9) |
May 2024 |
Audit
CGNC
|
Page | 28 |
Name and Residence |
Position with Manulife |
Roy Gori
Ontario, Canada
|
President and Chief Executive Officer |
Marc M. Costantini
Massachusetts, United States
|
Global Head of Strategy and Inforce Management (1) |
Steven A. Finch
Massachusetts, United States
|
Chief Actuary
|
James D. Gallagher
Massachusetts, United States
|
General Counsel |
Rahim Hirji
Ontario, Canada
|
Chief Auditor and Head of Advisory Services(2)
|
Naveed Irshad
Ontario, Canada
|
President and Chief Executive Officer, Manulife Canada(3) |
Rahul M. Joshi
Texas, United States
|
Chief Operations Officer |
Pamela O. Kimmet
Florida, United States
|
Chief Human Resources Officer |
Trevor Kreel
Ontario, Canada
|
Chief Investment Officer(4) |
Karen A. Leggett
Ontario, Canada
|
Chief Marketing Officer(5) |
Paul R. Lorentz
Ontario, Canada
|
President and Chief Executive Officer, Global Wealth and Asset
Management
|
Colin L. Simpson
Ontario, Canada
|
Chief Financial Officer(6) |
Brooks E. Tingle
Massachusetts, United States
|
President and Chief Executive Officer, John Hancock(7) |
Halina K. von dem Hagen
Ontario, Canada
|
Chief Risk Officer(8) |
Shamus E. Weiland
New York, United States
|
Chief Information Officer |
Philip J. Witherington
Hong Kong, People’s Republic of China
|
President & Chief Executive Officer, Asia(9) |
Page | 29 |
Transfer Agent | |
Canada: |
TSX Trust Company
301-100 Adelaide Street West
Toronto, ON M5H 4H1
Toll Free: 1-800-783-9495
www.tsxtrust.com
www.tsxtrust.com/fr
|
Co-Transfer Agents |
|
United States: |
Equiniti Trust Company, LLC
P.O. Box 27756
Newark, NJ 07101
Toll Free: 1-800-249-7702
https://equiniti.com/us/ast-access
|
Philippines: |
RCBC Stock Transfer
Ground Floor, West Wing
GPL (Grepalife) Building
221 Senator Gil Puyat Avenue
Makati City, Philippines
Telephone: 632 5318 8567 or 632 8894 9909
www.rcbc.com
|
Hong Kong: |
Tricor Investor Services Limited
17/F, Far East Finance Centre
16 Harcourt Road
Hong Kong
Telephone: 852 2980-1333
www.vistra.com
|
Page | 30 |
Page | 31 |
Fees |
2024 |
2023 |
($ in millions) |
($ in millions) |
|
Audit Fees: |
39.5 |
51.4 |
Includes the audit of our financial statements as well as the financial
statements of our subsidiaries, segregated funds, audits of statutory filings,
prospectus services, report on internal controls, reviews of quarterly
reports and regulatory filings.
| ||
Audit-Related Fees: |
3.1 |
4.0 |
Includes consultation concerning financial accounting and reporting
standards not classified as audit, due diligence in connection with
proposed or consummated transactions and assurance services to report
on internal controls for third parties.
| ||
Tax Fees: |
0.4 |
0.4 |
Includes tax compliance, tax planning and tax advice services. | ||
All Other Fees: |
0.2 |
0.2 |
Includes other advisory services. | ||
Total |
43.2 |
56.0 |
Page | 32 |
Page | 33 |
Page | 34 |
Page | 35 |
Page | 36 |
Page | 37 |
Page | 38 |
Page | 39 |
Page | 40 |
Page | 41 |
