Form 20-F
|
☐
|
Form 40-F
|
☑
|
Exhibit
|
Description of Exhibit
|
99.1
|
Second Quarter Report to Shareholders
|
99.2
|
Certification Chief Executive Officer
|
99.3
|
Certification Chief Financial Officer
|
MANULIFE FINANCIAL CORPORATION
|
|
By: /s/ James D. Gallagher
|
|
Name: James D. Gallagher
|
|
Title: General
Counsel
|
|
Date: August 10, 2022
|
Exhibit
|
Description of Exhibit
|
99.1
|
Second Quarter Report to Shareholders
|
99.2
|
Certification Chief Executive Officer
|
99.3
|
Certification Chief Financial Officer
|
◾ |
Net income attributed to shareholders of $1.1 billion in 2Q22, down $1.6 billion from the second quarter of 2021 (“2Q21”)
|
◾ |
Core earnings1 of $1.6 billion in 2Q22, down 9% on a constant exchange rate basis from 2Q212
|
◾ |
LICAT ratio3 of 137%
|
◾ |
Core ROE4 of 12.1% and ROE of 8.3% in 2Q22
|
◾ |
NBV5 of $511 million in 2Q22, down 9%5 from 2Q21
|
◾ |
APE sales5 of $1.4 billion in 2Q22, down 1% from 2Q21
|
◾ |
Global Wealth and Asset Management (“Global WAM”) net inflows5 of $1.7 billion in 2Q22, compared with net inflows of $8.6
billion in 2Q21
|
◾ |
Expense efficiency ratio4 of 49.2%, compared with our target of less than 50%, and general expenses decreased 3%6
|
1 |
Core earnings is a non-GAAP financial measure. For more information on non-GAAP and other financial measures, see “Non-GAAP and other financial measures” in our Second Quarter
2022 Management’s Discussion and Analysis (“2Q22 MD&A”) for additional information.
|
2 |
Percentage growth / declines in core earnings stated on a constant exchange rate basis is a non-GAAP ratio.
|
3 |
Life Insurance Capital Adequacy Test (“LICAT”) ratio of The Manufacturers Life Insurance Company (“MLI”). LICAT ratio is disclosed under the Office of the Superintendent of
Financial Institutions Canada’s (“OSFI’s”) Life Insurance Capital Adequacy Test Public Disclosure Requirements guideline.
|
4 |
Core return on common shareholders’ equity (“Core ROE”) and expense efficiency ratio are non-GAAP ratios.
|
5 |
For more information on new business value (“NBV”), annualized premium equivalent (“APE”) sales and net flows, see “Non-GAAP and other financial measures” in our 2Q22 MD&A.
In this news release, percentage growth / declines in NBV and APE sales are stated on a constant exchange rate basis.
|
6 |
General expenses percentage decline stated on an actual exchange rate basis.
|
7 |
Canada segment is comprised of the Insurance, Annuities, and Manulife Bank businesses. U.S. segment is comprised of the U.S. Insurance and U.S. Annuities businesses.
|
8 |
Recognized a one-time after-tax gain of $842 million in the first quarter of 2022 (“1Q22”).
|
9 |
Excludes $63 million (pre-tax) of lost expected profit on in-force relating to the U.S. variable annuity reinsurance transaction that closed in 1Q22.
|
10 |
As of August 8, 2022, the Company has purchased for cancellation approximately 38 million common shares for $933 million.
|
Quarterly Results
|
YTD Results
|
|||||||||||||||
($ millions, unless otherwise stated)
|
2Q22
|
2Q21
|
2022
|
2021
|
||||||||||||
Profitability:
|
||||||||||||||||
Net income attributed to shareholders
|
$
|
1,086
|
$
|
2,646
|
$
|
4,056
|
$
|
3,429
|
||||||||
Core earnings
|
$
|
1,562
|
$
|
1,682
|
$
|
3,114
|
$
|
3,311
|
||||||||
Diluted earnings per common share ($)
|
$
|
0.53
|
$
|
1.33
|
$
|
2.04
|
$
|
1.71
|
||||||||
Diluted core earnings per common share (“Core EPS”) ($)(1)
|
$
|
0.78
|
$
|
0.83
|
$
|
1.55
|
$
|
1.65
|
||||||||
Return on common shareholders’ equity (“ROE”)
|
8.3
|
%
|
22.2
|
%
|
15.7
|
%
|
14.3
|
%
|
||||||||
Core ROE
|
12.1
|
%
|
13.9
|
%
|
12.0
|
%
|
13.8
|
%
|
||||||||
Expense efficiency ratio
|
49.2
|
%
|
46.8
|
%
|
49.6
|
%
|
47.7
|
%
|
||||||||
General expenses
|
$
|
1,843
|
$
|
1,892
|
$
|
3,741
|
$
|
3,924
|
||||||||
Business Performance:
|
||||||||||||||||
Asia new business value
|
$
|
337
|
$
|
399
|
$
|
677
|
$
|
876
|
||||||||
Canada new business value
|
$
|
82
|
$
|
76
|
$
|
186
|
$
|
154
|
||||||||
U.S. new business value
|
$
|
92
|
$
|
75
|
$
|
161
|
$
|
119
|
||||||||
Total new business value
|
$
|
511
|
$
|
550
|
$
|
1,024
|
$
|
1,149
|
||||||||
Asia APE sales
|
$
|
838
|
$
|
950
|
$
|
1,886
|
$
|
2,230
|
||||||||
Canada APE sales
|
$
|
361
|
$
|
274
|
$
|
724
|
$
|
629
|
||||||||
U.S. APE sales
|
$
|
209
|
$
|
191
|
$
|
408
|
$
|
341
|
||||||||
Total APE sales
|
$
|
1,408
|
$
|
1,415
|
$
|
3,018
|
$
|
3,200
|
||||||||
Global WAM net flows ($ billions)
|
$
|
1.7
|
$
|
8.6
|
$
|
8.6
|
$
|
10.0
|
||||||||
Global WAM gross flows ($ billions)(2)
|
$
|
33.6
|
$
|
33.7
|
$
|
72.1
|
$
|
73.4
|
||||||||
Global WAM assets under management and administration ($ billions)(3)
|
$
|
744.7
|
$
|
798.5
|
$
|
744.7
|
$
|
798.5
|
||||||||
Global WAM total invested assets ($ billions)
|
$
|
4.0
|
$
|
4.2
|
$
|
4.0
|
$
|
4.2
|
||||||||
Global WAM net segregated funds net assets ($ billions)
|
$
|
213.3
|
$
|
242.6
|
$
|
213.3
|
$
|
242.6
|
||||||||
Financial Strength:
|
||||||||||||||||
MLI’s LICAT ratio
|
137
|
%
|
137
|
%
|
137
|
%
|
137
|
%
|
||||||||
Financial leverage ratio
|
28.5
|
%
|
25.9
|
%
|
28.5
|
%
|
25.9
|
%
|
||||||||
Book value per common share ($)
|
$
|
25.56
|
$
|
24.76
|
$
|
25.56
|
$
|
24.76
|
||||||||
Book value per common share excluding AOCI ($)
|
$
|
25.49
|
$
|
22.89
|
$
|
25.49
|
$
|
22.89
|
(1) |
This item is a non-GAAP ratio.
|
(2) |
For more information on gross flows, see “Non-GAAP and other financial measures” in our 2Q22 MD&A.
|
(3) |
This item is a non-GAAP financial measure.
|
1 |
See “Caution regarding forward-looking statements” below.
|
2 |
Asia Other excludes Hong Kong and Japan.
|
A. TOTAL COMPANY PERFORMANCE
1. Profitability
2. Business performance
3. Financial strength
4. Revenue
5. Assets under management and administration
6. Impact of fair value accounting
7. Impact of foreign currency exchange rates
8. Business highlights
9. Annual review of actuarial methods and assumptions
10. Update on transition to IFRS 17
B. PERFORMANCE BY SEGMENT
1. Asia
2. Canada
3. U.S.
4. Global Wealth and Asset Management
5. Corporate and Other
|
C. RISK MANAGEMENT AND RISK FACTORS UPDATE
1. Variable annuity and segregated fund guarantees
2. Caution related to sensitivities
3. Publicly traded equity performance risk
4. Interest rate and spread risk sensitivities and exposure measures
5. Alternative long-duration asset performance risk
6. Credit risk exposure measures
7. Risk factors – strategic risk from changes in tax laws
D. CRITICAL ACTUARIAL AND ACCOUNTING POLICIES
1. Critical actuarial and accounting policies
2. Sensitivity of earnings to asset related assumptions
3. Accounting and reporting changes
E. OTHER
1. Outstanding common shares - selected information
2. Legal and regulatory proceedings
3. Non-GAAP and other financial measures
4. Caution regarding forward-looking statements
5. Quarterly financial information
6. Other
|
Quarterly Results
|
YTD Results
|
|||||||||||||||||||
($ millions, unless otherwise stated)
|
2Q22
|
1Q22
|
2Q21
|
2022
|
2021
|
|||||||||||||||
Net income attributed to shareholders
|
$
|
1,086
|
$
|
2,970
|
$
|
2,646
|
$
|
4,056
|
$
|
3,429
|
||||||||||
Core earnings(1)
|
$
|
1,562
|
$
|
1,552
|
$
|
1,682
|
$
|
3,114
|
$
|
3,311
|
||||||||||
Diluted earnings per common share ($)
|
$
|
0.53
|
$
|
1.50
|
$
|
1.33
|
$
|
2.04
|
$
|
1.71
|
||||||||||
Diluted core earnings per common share (“core EPS”) ($)(2)
|
$
|
0.78
|
$
|
0.77
|
$
|
0.83
|
$
|
1.55
|
$
|
1.65
|
||||||||||
Return on common shareholders’ equity (“ROE”)
|
8.3
|
%
|
23.0
|
%
|
22.2
|
%
|
15.7
|
%
|
14.3
|
%
|
||||||||||
Core ROE(2)
|
12.1
|
%
|
11.8
|
%
|
13.9
|
%
|
12.0
|
%
|
13.8
|
%
|
||||||||||
Expense efficiency ratio(2)
|
49.2
|
%
|
50.0
|
%
|
46.8
|
%
|
49.6
|
%
|
47.7
|
%
|
||||||||||
General expenses
|
1,843
|
1,898
|
1,892
|
3,741
|
3,924
|
(1) |
This item is a non-GAAP financial measure. See “Non-GAAP and other financial measures” below for more information.
|
(2) |
This item is a non-GAAP ratio. See “Non-GAAP and other financial measures” below for more information.
|
1 |
Percentage growth / declines in core earnings, core general expenses, pre-tax core earnings, assets under management and administration, assets under management, core EBITDA,
general expenses, Manulife Bank average net lending assets and Global Wealth and Asset Management (“Global WAM”) revenue are stated on a constant exchange rate basis, a non-GAAP ratio. See “Non-GAAP and other financial measures” below for
more information.
|
2 |
Policyholder experience includes gains of $6 million post-tax in 2Q22 (2Q21 – gains of $9 million post-tax) from the release of margins on medical
policies in Hong Kong that have lapsed for customers who have opted to change their existing policies to the new Voluntary Health Insurance Scheme (“VHIS”) products. These gains did not have a material impact on core earnings as they
were mostly offset by new business strain.
|
Core earnings by segment
|
Quarterly Results
|
YTD Results
|
||||||||||||||||||
($ millions, unaudited)
|
2Q22
|
1Q22
|
2Q21
|
2022
|
2021
|
|||||||||||||||
Asia
|
$
|
513
|
$
|
537
|
$
|
526
|
$
|
1,050
|
$
|
1,096
|
||||||||||
Canada
|
345
|
314
|
318
|
659
|
582
|
|||||||||||||||
U.S.
|
456
|
486
|
478
|
942
|
979
|
|||||||||||||||
Global Wealth and Asset Management
|
305
|
324
|
356
|
629
|
668
|
|||||||||||||||
Corporate and Other (excluding core investment gains)
|
(157
|
)
|
(209
|
)
|
(96
|
)
|
(366
|
)
|
(214
|
)
|
||||||||||
Core investment gains(1),(2)
|
100
|
100
|
100
|
200
|
200
|
|||||||||||||||
Total core earnings
|
$
|
1,562
|
$
|
1,552
|
$
|
1,682
|
$
|
3,114
|
$
|
3,311
|
(1) |
This item is disclosed under the Office of the Superintendent of Financial Institution’s (“OSFI’s”) Source of Earnings Disclosure (Life Insurance Companies) guideline.
|
(2) |
As outlined in our definition of core earnings in section E3 “Non-GAAP and other financial measures”: Up to $400 million of net favourable investment-related experience will be
reported in core earnings in a single year, which are referred to as “core investment gains”. This means up to $100 million in the first quarter, up to $200 million on a year-to-date basis in the second quarter, up to $300 million on a
year-to-date basis in the third quarter and up to $400 million on a full year basis in the fourth quarter. Any investment-related experience losses reported in a quarter will be offset against the net year-to-date investment-related
experience gains with the difference being included in core earnings subject to a maximum of the year-to-date core investment gains and a minimum of zero, which reflects our expectation that investment-related experience will be positive
through-the-business cycle.
|
1 |
Excludes $63 million (pre-tax) and $108 million (pre-tax) in 2Q22 and year-to-date 2022, respectively, of lost expected profit on in-force relating to the U.S. variable annuity
reinsurance transaction that closed in 1Q22. Percentage growth is based on the pre-tax impact of these actions, and is stated on a constant exchange rate basis.
|
2 |
Year-to-date policyholder experience includes gains of $20 million post-tax in 2022 (2021 – gains of $19 million post-tax) from the release of margins on medical policies in Hong
Kong that have lapsed for customers who have opted to change their existing policies to the new VHIS products. These gains did not have a material impact on year-to-date core earnings as they were mostly offset by new business strain.
|
Quarterly Results
|
YTD Results
|
|||||||||||||||||||
($ millions, unaudited)
|
2Q22
|
1Q22
|
2Q21
|
2022
|
2021
|
|||||||||||||||
Core earnings
|
$
|
1,562
|
$
|
1,552
|
$
|
1,682
|
$
|
3,114
|
$
|
3,311
|
||||||||||
Items excluded from core earnings:(1)
|
||||||||||||||||||||
Investment-related experience outside of core earnings(2)
|
591
|
558
|
739
|
1,149
|
816
|
|||||||||||||||
Direct impact of equity markets and interest rates and
variable annuity guarantee liabilities(3)
|
(1,067
|
)
|
97
|
217
|
(970
|
)
|
(618
|
)
|
||||||||||||
Direct impact of equity markets and variable annuity
guarantee liabilities
|
(623
|
)
|
(110
|
)
|
177
|
(733
|
)
|
180
|
||||||||||||
Fixed income reinvestment rates assumed in
the
valuation of policy liabilities
|
(365
|
)
|
351
|
76
|
(14
|
)
|
(756
|
)
|
||||||||||||
Sale of AFS bonds and
derivative positions in the
Corporate and Other
segment
|
(79
|
)
|
(144
|
)
|
(36
|
)
|
(223
|
)
|
(42
|
)
|
||||||||||
Restructuring charge(4)
|
-
|
-
|
-
|
-
|
(115
|
)
|
||||||||||||||
Reinsurance transactions, tax-related items and other(5)
|
-
|
763
|
8
|
763
|
35
|
|||||||||||||||
Total items excluded from core earnings
|
(476
|
)
|
1,418
|
964
|
942
|
118
|
||||||||||||||
Net income attributed to shareholders
|
$
|
1,086
|
$
|
2,970
|
$
|
2,646
|
$
|
4,056
|
$
|
3,429
|
(1) |
These items are disclosed under OSFI’s Source of Earnings Disclosure (Life Insurance Companies) guideline.
|
(2) |
Total investment-related experience in 2Q22 was a net gain of $691 million, compared with a net gain of $839 million in 2Q21, and in accordance with our definition of core
earnings, we included $100 million of investment-related experience gains in core earnings and a $591 million gain in items excluded from core earnings in 2Q22 ($100 million of core investment gains and a gain of $739 million,
respectively, in 2Q21). Investment-related experience gains in 2Q22 reflected higher-than-expected returns (including fair value changes) on ALDA primarily driven by fair value gains on private equity investments, the favourable impact of
fixed income reinvestment activities, and favourable credit experience. Investment-related experience gains in 2Q21 reflected higher-than-expected returns (including fair value changes) on ALDA primarily driven by fair value gains on
private equity investments, the favourable impact of fixed income reinvestment activities and favourable credit experience.
|
(3) |
The direct impact of markets was a net charge of $1,067 million in 2Q22 primarily driven by the impact of unfavourable equity market performance, interest rate hedge
ineffectiveness due to significant interest rate movements across several markets of differing magnitudes and shape changes, foreign exchange movements, losses from the sale of AFS bonds, and losses from non-parallel movements in swap
spreads. The direct impact of markets was a net gain of $217 million in 2Q21 driven by strong equity market performance and flattening of the yield curve, partially offset by a charge on the sale of AFS bonds.
|
(4) |
In 1Q21, we reported a restructuring charge of $150 million pre-tax ($115 million post-tax) related to actions that are expected to result in recurring total annual expense
savings of $250 million (pre-tax) by 2023; $100 million (pre-tax) of these expected total annual savings were realized in 2021, and $200 million (pre-tax) of total
annual savings are expected in 2022.1
|
(5) |
The 1Q22 net gain of $763 million includes an $842 million gain resulting from the U.S. variable annuity reinsurance transaction, partially offset by a charge of $71 million
related to withholding tax on anticipated remittances resulting from the U.S. variable annuity reinsurance transaction and an integration charge of $8 million in our Vietnam operation. In 2Q21, the reinsurance transactions in Asia
contributed gains of $8 million.
|
Net income attributed to shareholders by segment
|
Quarterly Results
|
YTD Results
|
||||||||||||||||||
($ millions, unaudited)
|
2Q22
|
1Q22
|
2Q21
|
2022
|
2021
|
|||||||||||||||
Asia
|
$
|
361
|
$
|
773
|
$
|
633
|
$
|
1,134
|
$
|
1,590
|
||||||||||
Canada
|
85
|
547
|
783
|
632
|
764
|
|||||||||||||||
U.S.
|
832
|
2,067
|
793
|
2,899
|
889
|
|||||||||||||||
Global Wealth and Asset Management
|
305
|
324
|
356
|
629
|
668
|
|||||||||||||||
Corporate and Other
|
(497
|
)
|
(741
|
)
|
81
|
(1,238
|
)
|
(482
|
)
|
|||||||||||
Total net income attributed to shareholders
|
$
|
1,086
|
$
|
2,970
|
$
|
2,646
|
$
|
4,056
|
$
|
3,429
|
1 |
See “Caution regarding forward-looking statements” below.
|
2 |
This item is a non-GAAP financial measure. See “Non-GAAP and other financial measures” below for more information.
|
Quarterly Results
|
YTD Results
|
|||||||||||||||||||
($ millions, unless otherwise stated) (unaudited)
|
2Q22
|
1Q22
|
2Q21
|
2022
|
2021
|
|||||||||||||||
Asia APE sales
|
$
|
838
|
$
|
1,048
|
$
|
950
|
$
|
1,886
|
$
|
2,230
|
||||||||||
Canada APE sales
|
$
|
361
|
$
|
363
|
$
|
274
|
$
|
724
|
$
|
629
|
||||||||||
U.S. APE sales
|
$
|
209
|
$
|
199
|
$
|
191
|
$
|
408
|
$
|
341
|
||||||||||
Total APE sales(1)
|
$
|
1,408
|
$
|
1,610
|
$
|
1,415
|
$
|
3,018
|
$
|
3,200
|
||||||||||
Asia new business value
|
$
|
337
|
$
|
340
|
$
|
399
|
$
|
677
|
$
|
876
|
||||||||||
Canada new business value
|
$
|
82
|
$
|
104
|
$
|
76
|
$
|
186
|
$
|
154
|
||||||||||
U.S. new business value
|
$
|
92
|
$
|
69
|
$
|
75
|
$
|
161
|
$
|
119
|
||||||||||
Total new business value(1)
|
$
|
511
|
$
|
513
|
$
|
550
|
$
|
1,024
|
$
|
1,149
|
||||||||||
Global Wealth and Asset Management net flows ($ billions)(1)
|
$
|
1.7
|
$
|
6.9
|
$
|
8.6
|
$
|
8.6
|
$
|
10.0
|
||||||||||
Global Wealth and Asset Management gross flows
($ billions)(1)
|
$
|
33.6
|
$
|
38.5
|
$
|
33.7
|
$
|
72.1
|
$
|
73.4
|
||||||||||
Global Wealth and Asset Management assets under
management and administration ($ billions)(2)
|
$
|
744.7
|
$
|
808.0
|
$
|
798.5
|
$
|
744.7
|
$
|
798.5
|
||||||||||
Global Wealth and Asset Management total invested assets
($ billions)
|
$
|
4.0
|
$
|
3.5
|
$
|
4.2
|
$
|
4.0
|
$
|
4.2
|
||||||||||
Global Wealth and Asset Management segregated funds net
assets ($ billions)
|
$
|
213.3
|
$
|
236.6
|
$
|
242.6
|
$
|
213.3
|
$
|
242.6
|
||||||||||
Total assets under management and administration
($billions)(2),(3)
|
$
|
1,264.7
|
$
|
1,349.2
|
$
|
1,340.8
|
$
|
1,264.7
|
$
|
1,340.8
|
||||||||||
Total invested assets ($ billions)(3)
|
$
|
402.3
|
$
|
409.4
|
$
|
405.2
|
$
|
402.3
|
$
|
405.2
|
||||||||||
Total segregated fund net assets ($ billions)(3)
|
$
|
334.9
|
$
|
371.9
|
$
|
383.8
|
$
|
334.9
|
$
|
383.8
|
(1) |
For more information on this metric, see “Non-GAAP and other financial measures” below.
|
(2) |
This item is a non-GAAP financial measure. See “Non-GAAP and other financial measures” below for more information.
|
(3) |
See section A5 below for more information.
|
1 |
Percentage growth / declines in APE sales, gross flows, net flows, and NBV are stated on a constant exchange rate basis.
|
2 |
Asia Other excludes Hong Kong and Japan.
|
Quarterly Results
|
YTD Results
|
|||||||||||||||||||
(unaudited)
|
2Q22
|
1Q22
|
2Q21
|
2022
|
2021
|
|||||||||||||||
MLI’s LICAT ratio(1)
|
137
|
%
|
140
|
%
|
137
|
%
|
137
|
%
|
137
|
%
|
||||||||||
Financial leverage ratio
|
28.5
|
%
|
26.4
|
%
|
25.9
|
%
|
28.5
|
%
|
25.9
|
%
|
||||||||||
Consolidated capital ($ billions)(2)
|
$
|
62.8
|
$
|
63.9
|
$
|
61.4
|
$
|
62.8
|
$
|
61.4
|
||||||||||
Book value per common share ($)
|
$
|
25.56
|
$
|
26.33
|
$
|
24.76
|
$
|
25.56
|
$
|
24.76
|
||||||||||
Book value per common share excluding AOCI ($)
|
$
|
25.49
|
$
|
25.28
|
$
|
22.89
|
$
|
25.49
|
$
|
22.89
|
(1) |
This item is disclosed under OSFI’s Life Insurance Capital Adequacy Test Public Disclosure Requirements guideline.
|
(2) |
This item is a capital management measure. For more information on this metric, see “Non-GAAP and other financial measures” below.
|
Quarterly Results
|
YTD Results
|
|||||||||||||||||||
($ millions, unaudited)
|
2Q22
|
1Q22
|
2Q21
|
2022
|
2021
|
|||||||||||||||
Gross premiums
|
$
|
10,876
|
$
|
11,654
|
$
|
10,614
|
$
|
22,530
|
$
|
21,606
|
||||||||||
Premiums ceded to reinsurers
|
(1,249
|
)
|
(2,152
|
)
|
(1,200
|
)
|
(3,401
|
)
|
(2,584
|
)
|
||||||||||
Net premium income
|
9,627
|
9,502
|
9,414
|
19,129
|
19,022
|
|||||||||||||||
Investment income
|
3,675
|
3,417
|
4,099
|
7,092
|
7,313
|
|||||||||||||||
Other revenue
|
2,057
|
1,991
|
2,760
|
4,048
|
5,397
|
|||||||||||||||
Revenue before realized and unrealized investment gains
and losses
|
15,359
|
14,910
|
16,273
|
30,269
|
31,732
|
|||||||||||||||
Realized and unrealized gains and losses on assets
supporting insurance and investment contract liabilities
and on the macro hedge program(1)
|
(17,760
|
)
|
(18,540
|
)
|
9,551
|
(36,300
|
)
|
(7,505
|
)
|
|||||||||||
Total revenue
|
$
|
(2,401
|
)
|
$
|
(3,630
|
)
|
$
|
25,824
|
$
|
(6,031
|
)
|
$
|
24,227
|
(1) |
See section A6 “Impact of fair value accounting”. Also see section A1 “Profitability” for information on the direct impact of equity markets and interest rates and
variable annuity guarantee liabilities.
|
1 |
The issuance of securities in 2Q22 consists of the issuance of Limited Recourse Capital Notes (reported as other equity instruments) of $1.0 billion.
|
2 |
Includes cash & cash equivalents, comprised of cash on deposit, Canadian and U.S. Treasury Bills and high quality short-term investments, and marketable assets, comprised of
investment grade government and agency bonds, investment grade corporate bonds, investment grade securitized instruments, publicly traded common stocks and preferred shares.
|
A6 |
Impact of fair value accounting
|
A7 |
Impact of foreign currency exchange rates
|
A8 |
Business highlights
|
A9 |
Annual review of actuarial methods and assumptions
|
1 |
See “Caution regarding forward-looking statements” below.
|
• |
The establishment of a Contractual Service Margin (“CSM”) on our in-force business which is expected to lead to an increase in insurance contract liabilities. The CSM represents unearned
profits that are expected to amortize into income as services are provided. We continue to evaluate the potential impacts of all other changes including available accounting policy choices under IFRS 17 on the measurement of our
insurance contract liabilities. While there is a range of outcomes for the CSM and all other changes impacting insurance contract liabilities, a significant portion of the impact to equity is expected to result from establishing a CSM
on our in-force business. The overall impact of establishing the CSM, as well as other measurement impacts on our assets and liabilities, is expected to decrease equity upon transition by approximately 20%. We expect the impact of IFRS
17 to be approximately neutral to the LICAT capital ratio based on markets as of June 30, 2022 and calibration adjustments that OSFI made to the LICAT guideline2 for 2023, relating to
the inclusion of CSM in available capital and the reduction of the scalar on base solvency buffer. We expect our capital position will continue to be strong under IFRS 17. The actual impact at transition will depend on macro-economic
conditions as at January 1, 2023.
|
• |
The deferral of the recognition of new business gains via the CSM, and to a substantially lesser extent, the timing of investments results, will shift earnings out into future periods. As a
result, on transition, net income and core earnings in 2022 are expected to be lower under IFRS 17 compared to IFRS 4. This impact will be partially offset by the amortization into income of the CSM that will be established on our
in-force business. Overall, considering these items along with the various other impacts, on transition we expect 2022 core earnings to decline by approximately 10% under IFRS 17 compared with IFRS 4. A transition impact on our net
income attributed to shareholders is difficult to predict as it is also impacted by prevailing market conditions. In addition, we expect IFRS 17 to improve the stability of both our core earnings and net income attributed to
shareholders.
|
• |
Core earnings will remain a key performance metric and the definition will be adapted to align with IFRS 17. Under the revised definition, core earnings will exclude items such as the direct
impact of markets and interest rates, including investment experience from ALDA, realized gains and losses on AFS assets, hedge ineffectiveness, and changes in methods and assumptions recorded directly in profit or loss. We believe that
the revised core earnings definition represents our operating performance and the long-term earnings capacity of the business.
|
• |
The treatment of new business gains under IFRS 17 is materially different from IFRS 4. The CSM is an intrinsic part of the value of an insurance business and is a measure of growth and future
earnings generation capability. This highlights the importance of the CSM as a GAAP performance measure and as such, on transition, we will be adding two new medium-term targets:
|
i.) |
15% growth per year for new business CSM, and
|
ii.) |
8% to 10% growth per year in the CSM balance.
|
• |
Core ROE will be increased to 15%+ (from 13%+ currently) due to the expected changes to core earnings and equity,
|
1 |
See “Caution regarding forward-looking statements” below. The information presented reflects the Company’s current interpretation of IFRS 17 based on its facts and circumstances
as of the date hereof. Such interpretation, or the underlying relevant facts and circumstances, may change. The Company’s interpretation may also change pending the final issuance of regulatory and industry guidance relating to IFRS 17.
|
2 |
As indicated in OSFI’s final Life Insurance Capital Adequacy Test (LICAT) 2023 guideline issued on July 21, 2022.
|
• |
Common share core dividend payout ratio1 will be increased to 35% to 45% (from 30% to 40% currently) due to the expected changes to core
earnings, and
|
• |
Leverage ratio definition will be adjusted to include the CSM in the denominator given the CSM represents unearned profit and available capital under LICAT.
|
B1 |
Asia
|
($ millions, unless otherwise stated) |
Quarterly
Results |
YTD
Results |
||||||||||||||||||
Canadian dollars
|
2Q22
|
1Q22
|
2Q21
|
2022
|
2021
|
|||||||||||||||
Net income attributed to shareholders(1)
|
$
|
361
|
$
|
773
|
$
|
633
|
$
|
1,134
|
$
|
1,590
|
||||||||||
Core earnings(1)
|
513
|
537
|
526
|
1,050
|
1,096
|
|||||||||||||||
Annualized premium equivalent sales
|
838
|
1,048
|
950
|
1,886
|
2,230
|
|||||||||||||||
New business value
|
337
|
340
|
399
|
677
|
876
|
|||||||||||||||
Revenue
|
2,499
|
3,012
|
9,122
|
5,511
|
14,962
|
|||||||||||||||
Revenue before realized and unrealized investment gains
and losses(2)
|
6,654
|
7,568
|
6,603
|
14,222
|
13,824
|
|||||||||||||||
Assets under management ($ billions)(3)
|
139.0
|
144.4
|
141.9
|
139.0
|
141.9
|
|||||||||||||||
Total invested assets ($ billions)
|
117.1
|
120.5
|
117.8
|
117.1
|
117.8
|
|||||||||||||||
Segregated fund invested assets ($ billions)
|
21.9
|
23.9
|
24.1
|
21.9
|
24.1
|
|||||||||||||||
U.S. dollars
|
||||||||||||||||||||
Net income attributed to shareholders(1) |
US$ |
283 | US$ | 610 | US$ |
515 | US$ |
893 | US$ |
1,270 | ||||||||||
Core earnings(1)
|
401
|
424
|
427
|
825
|
877
|
|||||||||||||||
Annualized premium equivalent sales
|
656
|
827
|
773
|
1,483
|
1,783
|
|||||||||||||||
New business value
|
264
|
268
|
325
|
532
|
701
|
|||||||||||||||
Revenue
|
1,957
|
2,377
|
7,426
|
4,334
|
12,036
|
|||||||||||||||
Revenue before realized and unrealized investment gains
and losses(2)
|
5,211
|
5,975
|
5,376
|
11,186
|
11,077
|
|||||||||||||||
Assets under management ($ billions)(3)
|
107.8
|
115.6
|
114.6
|
107.8
|
114.6
|
|||||||||||||||
Total invested assets ($ billions)
|
90.8
|
96.5
|
95.1
|
90.8
|
95.1
|
|||||||||||||||
Segregated fund invested assets ($ billions)
|
17.0
|
19.1
|
19.5
|
17.0
|
19.5
|
(1)
(2)
(3) |
See “Non-GAAP and other financial measures” below for a reconciliation of core earnings to net income (loss) attributed to shareholders.
See section A6 “Impact of fair value accounting”.
This item is a non-GAAP financial measure. See “Non-GAAP and other financial measures” below for more information.
|
1 |
This item is a non-GAAP ratio. See “Non-GAAP and other financial measures” below for more information.
|
2 |
The impact of new business represents the financial impact of all new business written in the period, including acquisition expenses.
|
3 |
Under IFRS 17, an insurance contract is onerous at the date of initial recognition if the fulfilment cash flows allocated to the contract and premiums, acquisition expenses and
commissions arising from the contract at the date of initial recognition, in total are a net outflow (i.e. if there is a loss at initial recognition). An onerous designation does not necessarily mean that the contract is not profitable
over its lifetime.
|
• |
Hong Kong APE sales in 2Q22 were US$133 million, a 32% decrease compared with 2Q21. The decrease in sales was driven by the continued effect of COVID-19 in
Hong Kong and tighter containment measures in Macau during the quarter. Restrictions on travel between Hong Kong and mainland China continued to impact cross-border commerce. Hong Kong NBV was US$107 million
in 2Q22, a decrease of 28% compared with 2Q21 due to lower sales volumes. Hong Kong NBV margin was 80.5% in 2Q22, an increase of 4.7 percentage points compared with 2Q21 driven by favourable product mix.
|
• |
Japan APE sales in 2Q22 were US$77 million, a 15% decrease compared with 2Q21, as a result of lower COLI product sales, partially offset by higher individual
protection and other wealth sales. Japan NBV in 2Q22 of US$23 million increased 10% compared with 2Q21 due to a higher non-COLI product mix. Japan NBV margin was 29.9% in 2Q22, an increase of 6.9 percentage
points compared with 2Q21 driven by favourable product mix.
|
• |
Asia Other APE sales in 2Q22 were US$446 million, a 3% decrease compared with 2Q21 reflecting lower agency sales in Vietnam, mainland China and Indonesia, partially
offset by higher bancassurance sales in Singapore, Vietnam and mainland China. Asia Other NBV in 2Q22 of US$134 million decreased 10% compared with 2Q21, primarily due to lower sales volumes and unfavourable product mix. Asia Other NBV
margin was 33.2% in 2Q22, a decrease of 2.5 percentage points compared with 2Q21 driven by unfavourable product mix.
|
1 |
For more information on this metric, see “Non-GAAP and other financial measures” below.
|
• |
became the first life insurer in Vietnam to offer healthcare solutions via MoMo e-wallet, providing the app’s 31 million users with access to our award-winning Max–Health
insurance product. MoMo users can now easily purchase Manulife Vietnam’s Max–Health product in less than one minute through a simple three-step process;
|
• |
launched ManuAcademy, a learning platform for approximately 45,000 insurance agents in Vietnam. Using artificial intelligence, the platform delivers localised, tailored training
on demand to agents at scale. By year end, launches are planned for Hong Kong, Indonesia, Malaysia and the Philippines, reaching a further 35,000 agents; and
|
• |
enabled our distribution force with an advanced suite of digital tools, with the proportion of new policies sold being digitally submitted reaching 85.5%, an increase of 10
percentage points compared with 2Q21.
|
B2 |
Canada
|
Quarterly Results
|
YTD Results
|
|||||||||||||||||||
($ millions, unless otherwise stated)
|
2Q22
|
1Q22
|
2Q21
|
2022
|
2021
|
|||||||||||||||
Net income (loss) attributed to shareholders(1)
|
$
|
85
|
$
|
547
|
$
|
783
|
$
|
632
|
$
|
764
|
||||||||||
Core earnings(1)
|
345
|
314
|
318
|
659
|
582
|
|||||||||||||||
Annualized premium equivalent sales
|
361
|
363
|
274
|
724
|
629
|
|||||||||||||||
Manulife Bank average net lending assets ($ billions)(2)
|
24.3
|
23.7
|
22.8
|
24.0
|
22.8
|
|||||||||||||||
Revenue
|
(1,736
|
)
|
(2,283
|
)
|
5,932
|
(4,019
|
)
|
3,355
|
||||||||||||
Revenue before realized and unrealized investment
income gains and losses
|
4,102
|
3,933
|
3,920
|
8,035
|
7,470
|
|||||||||||||||
Assets under management ($ billions)
|
142.8
|
152.4
|
157.5
|
142.8
|
157.5
|
|||||||||||||||
Total invested assets ($ billions)
|
107.2
|
112.7
|
117.8
|
107.2
|
117.8
|
|||||||||||||||
Segregated funds net assets ($ billions)
|
35.6
|
39.7
|
39.7
|
35.6
|
39.7
|
(1) |
See “Non-GAAP and other financial measures” below for a reconciliation of core earnings to net income (loss) attributed to shareholders.
|
(2) |
This item is a non-GAAP financial measure. See “Non-GAAP and other financial measures” below for more information.
|
• |
Individual insurance APE sales in 2Q22 of $107 million increased $6 million or 6% compared with 2Q21, primarily due to higher par and travel insurance sales, partially offset by lower
universal life sales.
|
• | Group insurance APE sales in 2Q22 of $193 million increased $99 million or 105% compared with 2Q21, primarily due to higher large-case sales. |
• |
Annuities APE sales in 2Q22 of $61 million decreased $18 million or 23% compared with 2Q21, due to the impact of
market uncertainty.
|
B3 |
U.S.
|
($ millions, unless otherwise stated)
|
Quarterly Results
|
YTD Results
|
||||||||||||||||||
Canadian dollars
|
2Q22
|
1Q22
|
2Q21
|
2022
|
2021
|
|||||||||||||||
Net income attributed to shareholders(1)
|
$
|
832
|
$
|
2,067
|
$
|
793
|
$
|
2,899
|
$
|
889
|
||||||||||
Core earnings(1)
|
456
|
486
|
478
|
942
|
979
|
|||||||||||||||
Annualized premium equivalent sales
|
209
|
199
|
191
|
408
|
341
|
|||||||||||||||
Revenue
|
(4,329
|
)
|
(5,344
|
)
|
8,882
|
(9,673
|
)
|
2,890
|
||||||||||||
Revenue before realized and unrealized investment
income gains and losses
|
3,593
|
2,373
|
3,915
|
5,966
|
7,448
|
|||||||||||||||
Assets under management ($ billions)
|
213.7
|
222.8
|
233.7
|
213.7
|
233.7
|
|||||||||||||||
Total invested assets ($ billions)
|
149.5
|
151.0
|
156.2
|
149.5
|
156.2
|
|||||||||||||||
Segregated funds net assets ($ billions)
|
64.2
|
71.8
|
77.5
|
64.2
|
77.5
|
|||||||||||||||
U.S. dollars
|
||||||||||||||||||||
Net income attributed to shareholders(1) |
US$ |
651 | US$ |
1,633 | US$ |
646 | US$ |
2,284 | US$ |
722 | ||||||||||
Core earnings(1)
|
357
|
384
|
389
|
741
|
785
|
|||||||||||||||
Annualized premium equivalent sales
|
164
|
157
|
155
|
321
|
274
|
|||||||||||||||
Revenue
|
(3,391
|
)
|
(4,220
|
)
|
7,232
|
(7,611
|
)
|
2,499
|
||||||||||||
Revenue before realized and unrealized investment
income gains and losses
|
2,815
|
1,875
|
3,185
|
4,690
|
5,976
|
|||||||||||||||
Assets under management ($ billions)
|
165.7
|
178.3
|
188.5
|
165.7
|
188.5
|
|||||||||||||||
Total invested assets ($ billions)
|
115.9
|
120.8
|
126.0
|
115.9
|
126.0
|
|||||||||||||||
Segregated funds net assets ($ billions)
|
49.8
|
57.5
|
62.5
|
49.8
|
62.5
|
(1) |
See “Non-GAAP and other financial measures” below for a reconciliation of core earnings to net income (loss) attributed to shareholders.
|
• |
reported the highest ever quarterly sales in our international business. We signed new distributors in the Latin America region and launched a whole life product to support continued sales
growth and diversify the business across geographies; and
|
• |
enhanced our digital capabilities by launching:
|
o |
eDelivery notification of client correspondence to improve preferred producer experience and response time to customers,
|
o |
automatic appointments through our licensing system for our Digital Brokerage channel to accelerate producers’ ability to place cases with us, and
|
o |
additional chatbot and search functionality to improve the experience for JH Vitality customers.
|
B4 |
Global Wealth and Asset Management
|
Quarterly Results
|
YTD Results
|
|||||||||||||||||||
($ millions, unless otherwise stated)
|
2Q22
|
1Q22
|
2Q21
|
2022
|
2021
|
|||||||||||||||
Net income attributed to shareholders(1)
|
$
|
305
|
$
|
324
|
$
|
356
|
$
|
629
|
$
|
668
|
||||||||||
Core earnings(1)
|
305
|
324
|
356
|
629
|
668
|
|||||||||||||||
Core EBITDA(2)
|
467
|
490
|
521
|
957
|
990
|
|||||||||||||||
Core EBITDA margin (%)(3)
|
30.7
|
%
|
30.9
|
%
|
32.4
|
%
|
30.8
|
%
|
31.6
|
%
|
||||||||||
Sales
|
||||||||||||||||||||
Wealth and asset management gross flows
|
33,602
|
38,469
|
33,739
|
72,071
|
73,448
|
|||||||||||||||
Wealth and asset management net flows
|
1,713
|
6,891
|
8,628
|
8,604
|
9,985
|
|||||||||||||||
Revenue
|
1,521
|
1,586
|
1,607
|
3,107
|
3,134
|
|||||||||||||||
Assets under management and administration ($ billions)
|
744.7
|
808.0
|
798.5
|
744.7
|
798.5
|
|||||||||||||||
Total invested assets ($ billions)
|
4.0
|
3.5
|
4.2
|
4.0
|
4.2
|
|||||||||||||||
Segregated funds net assets ($ billions)
|
213.3
|
236.6
|
242.6
|
213.3
|
242.6
|
|||||||||||||||
Average assets under management and administration
($ billions)(4)
|
776.8
|
820.4
|
775.8
|
798.9
|
771.2
|
(1) |
See “Non-GAAP and other financial measures” below for a reconciliation of core earnings to net income (loss) attributed to shareholders.
|
(2) |
This item is a non-GAAP financial measure. See “Non-GAAP and other financial measures” below for more information.
|
(3) |
This item is a non-GAAP ratio. See “Non-GAAP and other financial measures” below for more information.
|
(4) |
For more information on this metric, see “Non-GAAP and other financial measures” below.
|
• |
Retirement gross flows in 2Q22 were $12.2 billion, an increase of 4% compared with 2Q21, driven by growth in member contributions.
|
• |
Retail gross flows in 2Q22 were $16.6 billion, a decrease of 12% compared with 2Q21, driven by lower investor demand amid equity market declines and higher interest rates.
|
• |
Institutional Asset Management gross flows in 2Q22 were $4.7 billion, an increase of 24% compared with 2Q21, driven by a $1.9 billion sale of an equity mandate, partially offset by the
non-recurrence of a $1.0 billion sale to an existing client in the prior year.
|
• |
Retirement net inflows were $1.0 billion in 2Q22 compared with net outflows of $0.6 billion in 2Q21, reflecting higher gross flows as mentioned above and lower plan redemptions.
|
• |
Net outflows in Retail were $1.9 billion in 2Q22 compared with net inflows of $7.3 billion in 2Q21, reflecting higher mutual fund redemption rates and lower gross flows as mentioned above.
|
• |
Net inflows in Institutional were $2.5 billion in 2Q22 compared with net inflows of $1.9 billion in 2Q21, driven by higher gross flows as mentioned above.
|
• |
published our 2022 Manulife Investment Management Stewardship report, detailing our commitment to sustainability as a global investment manager and outlining actions we are taking to address
material sustainability risks and opportunities, build more resilient portfolios, and pursue long-term value creation;
|
• |
launched a new mobile app feature in Canada Retirement that enables members to make additional contributions to their Registered Retirement Savings Plans, providing them with greater control over
their
|
1 |
This item is a non-GAAP financial measure. See “Non-GAAP and other financial measures” below for more information.
|
financial future. In addition, members signing onto the mobile app after registering online increased by 21% compared with the prior quarter; and
|
• |
launched multiple new mobile app features in Hong Kong Retirement to enable our members to manage their investment portfolio with greater convenience, receive the latest market updates and get
access to exclusive member benefits. These new features increased our app download rate by 82% compared with the prior quarter.
|
Quarterly Results
|
YTD Results
|
|||||||||||||||||||
($ millions, unless otherwise stated)
|
2Q22
|
1Q22
|
2Q21
|
2022
|
2021
|
|||||||||||||||
Net income (loss) attributed to shareholders(1)
|
$
|
(497
|
)
|
$
|
(741
|
)
|
$
|
81
|
$
|
(1,238
|
)
|
$
|
(482
|
)
|
||||||
Core loss excluding core investment gains(1)
|
$
|
(157
|
)
|
$
|
(209
|
)
|
$
|
(96
|
)
|
$
|
(366
|
)
|
$
|
(214
|
)
|
|||||
Core investment gains
|
100
|
100
|
100
|
200
|
200
|
|||||||||||||||
Total core earnings (loss)
|
$
|
(57
|
)
|
$
|
(109
|
)
|
$
|
4
|
$
|
(166
|
)
|
$
|
(14
|
)
|
||||||
Revenue
|
$
|
(356
|
)
|
$
|
(601
|
)
|
$
|
281
|
$
|
(957
|
)
|
$
|
(114
|
)
|
(1) |
See “Non-GAAP and other financial measures” below for a reconciliation of core earnings to net income (loss) attributed to shareholders.
|
C1 |
Variable annuity and segregated fund guarantees
|
June 30, 2022
|
December 31, 2021
|
|||||||||||||||||||||||
As at
($ millions)
|
Guarantee
value(1)
|
Fund value
|
Amount at
risk(1),(2),(3)
|
Guarantee
value(1)
|
Fund value
|
Amount at
risk(1),(2),(3)
|
||||||||||||||||||
Guaranteed minimum income benefit
|
$
|
4,292
|
$
|
2,715
|
$
|
1,585
|
$
|
4,419
|
$
|
3,603
|
$
|
918
|
||||||||||||
Guaranteed minimum withdrawal benefit
|
37,939
|
34,380
|
5,266
|
39,098
|
41,809
|
2,233
|
||||||||||||||||||
Guaranteed minimum accumulation benefit
|
20,249
|
20,209
|
214
|
19,820
|
20,226
|
12
|
||||||||||||||||||
Gross living benefits(4)
|
62,480
|
57,304
|
7,065
|
63,337
|
65,638
|
3,163
|
||||||||||||||||||
Gross death benefits(5)
|
10,647
|
15,317
|
2,289
|
11,105
|
22,920
|
618
|
||||||||||||||||||
Total gross of reinsurance
|
73,127
|
72,621
|
9,354
|
74,442
|
88,558
|
3,781
|
||||||||||||||||||
Living benefits reinsured
|
25,040
|
22,343
|
4,255
|
3,788
|
3,102
|
771
|
||||||||||||||||||
Death benefits reinsured
|
3,723
|
2,519
|
979
|
639
|
547
|
253
|
||||||||||||||||||
Total reinsured(6)
|
28,763
|
24,862
|
5,234
|
4,427
|
3,649
|
1,024
|
||||||||||||||||||
Total, net of reinsurance
|
$
|
44,364
|
$
|
47,759
|
$
|
4,120
|
$
|
70,015
|
$
|
84,909
|
$
|
2,757
|
(1) |
Guaranteed Value and Net Amount at Risk in respect of guaranteed minimum withdrawal business in Canada and the U.S. reflect the time value of money of these claims.
|
(2) |
Amount at risk (in-the-money amount) is the excess of guarantee values over fund values on all policies where the guarantee value exceeds the fund value. For guaranteed minimum
death benefit, the amount at risk is defined as the current guaranteed minimum death benefit in excess of the current account balance and assumes that all claims are immediately payable. In practice,
guaranteed death benefits are contingent and only payable upon the eventual death of policyholders if fund values remain below guarantee values. For guaranteed minimum withdrawal benefit, the amount at risk assumes that the benefit is
paid as a lifetime annuity commencing at the earliest contractual income start age. These benefits are also contingent and only payable at scheduled maturity/income start dates in the future, if the policyholders are still living and
have not terminated their policies and fund values remain below guarantee values. For all guarantees, the amount at risk is floored at zero at the single contract level.
|
(3) |
The amount at risk net of reinsurance at June 30, 2022 was $4,120 million (December 31, 2021 – $2,757 million) of which: US$947 million (December 31, 2021 – US$1,336 million)
was on our U.S. business, $2,387 million (December 31, 2021 – $886 million) was on our Canadian business, US$197 million (December 31, 2021 – US$53 million) was on our Japan business and US$200 million (December 31, 2021 – US$87
million) was related to Asia (other than Japan) and our run-off reinsurance business.
|
(4) |
Where a policy includes both living and death benefits, the guarantee in excess of the living benefit is included in the death benefit category as outlined in footnote 5.
|
(5) |
Death benefits include standalone guarantees and guarantees in excess of living benefit guarantees where both death and living benefits are provided on a policy.
|
(6) |
Reinsured amounts at June 30, 2022 reflect the U.S. variable annuity reinsurance transaction which closed on February 1, 2022.
|
C2 |
Caution related to sensitivities
|
C3 |
Publicly traded equity performance risk
|
As at June 30, 2022
|
||||||||||||||||||||||||
($ millions)
|
-30
|
%
|
-20
|
%
|
-10
|
%
|
+10
|
%
|
+20
|
%
|
+30
|
%
|
||||||||||||
Underlying sensitivity to net income attributed to shareholders(4)
|
||||||||||||||||||||||||
Variable annuity guarantees
|
$
|
(1,210
|
)
|
$
|
(740
|
)
|
$
|
(350
|
)
|
$
|
240
|
$
|
460
|
$
|
630
|
|||||||||
General fund equity investments(5)
|
(1,620
|
)
|
(1,080
|
)
|
(530
|
)
|
400
|
790
|
1,180
|
|||||||||||||||
Total underlying sensitivity before hedging
|
(2,830
|
)
|
(1,820
|
)
|
(880
|
)
|
640
|
1,250
|
1,810
|
|||||||||||||||
Impact of macro and dynamic hedge assets(6)
|
1,010
|
620
|
280
|
(240
|
)
|
(440
|
)
|
(600
|
)
|
|||||||||||||||
Net potential impact on net income attributed to
shareholders after impact of hedging(7)
|
$
|
(1,820
|
)
|
$
|
(1,200
|
)
|
$
|
(600
|
)
|
$
|
400
|
$
|
810
|
$
|
1,210
|
|||||||||
As at December 31, 2021
|
||||||||||||||||||||||||
($ millions)
|
-30
|
%
|
-20
|
%
|
-10
|
%
|
+10
|
%
|
+20
|
%
|
+30
|
%
|
||||||||||||
Underlying sensitivity to net income attributed to shareholders(4)
|
||||||||||||||||||||||||
Variable annuity guarantees
|
$
|
(2,560
|
)
|
$
|
(1,480
|
)
|
$
|
(630
|
)
|
$
|
440
|
$
|
750
|
$
|
960
|
|||||||||
General fund equity investments(5)
|
(1,430
|
)
|
(890
|
)
|
(440
|
)
|
450
|
880
|
1,320
|
|||||||||||||||
Total underlying sensitivity before hedging
|
(3,990
|
)
|
(2,370
|
)
|
(1,070
|
)
|
890
|
1,630
|
2,280
|
|||||||||||||||
Impact of macro and dynamic hedge assets(6)
|
2,060
|
1,190
|
500
|
(470
|
)
|
(820
|
)
|
(1,110
|
)
|
|||||||||||||||
Net potential impact on net income attributed to
shareholders after impact of hedging(7)
|
$
|
(1,930
|
)
|
$
|
(1,180
|
)
|
$
|
(570
|
)
|
$
|
420
|
$
|
810
|
$
|
1,170
|
(1) |
See “Caution related to sensitivities” above.
|
(2) |
The tables above show the potential impact on net income attributed to shareholders resulting from an immediate 10%, 20% and 30% change in market values of publicly traded
equities followed by a return to the expected level of growth assumed in the valuation of policy liabilities, excluding impacts from asset-based fees earned on assets under management and policyholder account value.
|
(3) |
Please refer to section D2 “Sensitivity of earnings to asset related assumptions” for more information on the level of growth assumed and on the net income sensitivity to
changes in these long-term assumptions.
|
(4) |
Defined as earnings sensitivity to a change in public equity markets including settlements on reinsurance contracts, but before the offset of hedge assets or other risk
mitigants.
|
(5) |
This impact for general fund equity investments includes general fund investments supporting our policy liabilities, investment in seed money investments (in segregated and
mutual funds made by Corporate and Other segment) and the impact on policy liabilities related to the projected future fee income on variable universal life and other unit linked products. The impact does not include: (i) any potential
impact on public equity weightings; (ii) any gains or losses on AFS public equities held in the Corporate and Other segment; or (iii) any gains or losses on public equity investments held in Manulife Bank. The participating policy funds
are largely self-supporting and generate no material impact on net income attributed to shareholders as a result of changes in equity markets.
|
(6) | Includes the impact of rebalancing equity hedges in the macro and dynamic hedging program. The impact of dynamic hedge rebalancing represents the impact of rebalancing equity hedges for dynamically hedged variable annuity guarantee best estimate liabilities at 5% intervals, but does not include any impact in respect of other sources of hedge ineffectiveness (e.g. fund tracking, realized volatility and equity, interest rate correlations different from expected among other factors). |
(7) |
The sensitivity on net income attributed to shareholders from changes in public equity returns after the impact of hedging is laregely unchanged as at June 30, 2022 compared
with December 31, 2021. This is due to the decline in sensitivities in 1Q22 as a result of the U.S. variable annuity reinsurance transaction being laregely offset by the increase in sensitivities in 2Q22 as a result of the impact of
equity market declines on our variable universal life business projected fee income.
|
Impact on MLI's LICAT total ratio
|
||||||||||||||||||||||||
Percentage points
|
-30
|
%
|
-20
|
%
|
-10
|
%
|
+10
|
%
|
+20
|
%
|
+30
|
%
|
||||||||||||
June 30, 2022
|
(2
|
)
|
(1
|
)
|
-
|
-
|
1
|
1
|
||||||||||||||||
December 31, 2021
|
(1
|
)
|
-
|
-
|
-
|
1
|
-
|
(1) |
See “Caution related to sensitivities” above. In addition, estimates exclude changes to the net actuarial gains/losses with respect to the Company’s pension obligations as a
result of changes in equity markets, as the impact on the quoted sensitivities is not considered to be material.
|
(2) |
The potential impact is shown assuming that the change in value of the hedge assets does not completely offset the change in the dynamically hedged variable annuity guarantee
liabilities. The estimated amount that would not be completely offset relates to our practices of not hedging the provisions for adverse deviation and of rebalancing equity hedges for dynamically hedged variable annuity liabilities at 5%
intervals.
|
(3) |
The Office of the Superintendent of Financial Institutions (“OSFI”) rules for segregated fund guarantees reflect full capital impacts of shocks over 20 quarters within a
prescribed range. As such, the deterioration in equity markets could lead to further increases in capital requirements after the initial shock.
|
C4 |
Interest rate and spread risk sensitivities and exposure measures
|
June 30, 2022
|
December 31, 2021
|
|||||||||||||||
As at
|
-50
|
bp
|
+50
|
bp
|
-50
|
bp
|
+50
|
bp
|
||||||||
Net income attributed to shareholders ($ millions) |
$ |
(200 | ) |
$ |
100 | $ |
(200 | ) |
$ |
nil | ||||||
Changes in other comprehensive income from fair value changes in AFS fixed
income assets held in the Corporate and Other segment ($ millions)
|
1,600
|
(1,400
|
)
|
2,100
|
(1,900
|
)
|
||||||||||
MLI's LICAT ratio (change in percentage points)(5)
|
3
|
(3
|
)
|
5
|
(4
|
)
|
(1) |
See “Caution related to sensitivities” above. In addition, estimates exclude changes to the net actuarial gains/losses with respect to the Company’s pension
obligations as a result of changes in interest rates, as the impact on the quoted sensitivities is not considered to be material.
|
(2) |
Includes guaranteed insurance and annuity products, including variable annuity contracts as well as adjustable benefit products where benefits are generally
adjusted as interest rates and investment returns change, a portion of which have minimum credited rate guarantees. For adjustable benefit products subject to minimum rate guarantees, the sensitivities are based on the assumption that
credited rates will be floored at the minimum.
|
(3) |
The amount of gain or loss that can be realized on AFS fixed income assets held in the Corporate and Other
segment will depend on the aggregate amount of unrealized gain or loss.
|
(4) |
Sensitivities are based on projected asset and liability cash flows and the impact of realizing fair value changes in AFS fixed income is based on the holdings
at the end of the period.
|
(5) |
LICAT impacts include realized and unrealized fair value changes in AFS fixed income assets. LICAT impacts do not reflect the impact
of the scenario switch discussed below.
|
Corporate spreads(4),(5)
|
June 30, 2022
|
December 31, 2021
|
||||||||||||||
As at
|
-50
|
bp
|
+50
|
bp
|
-50
|
bp
|
+50
|
bp
|
||||||||
Net income attributed to shareholders ($ millions)(6) |
$ | nil | $ | nil | $ |
(600 | ) |
$ |
500 | |||||||
MLI’s LICAT ratio (change in percentage points)(7)
|
|
|
(3
|
)
|
3
|
(3
|
)
|
4
|
Swap spreads
|
June 30, 2022
|
December 31, 2021
|
||||||||||||||
As at
|
-20
|
bp
|
+20
|
bp
|
-20
|
bp
|
+20
|
bp
|
||||||||
Net income attributed to shareholders ($ millions) |
$ | nil | $ | nil | $ | nil | |
$ |
nil | |||||||
MLI’s LICAT ratio (change in percentage points)(7)
|
nil
|
nil
|
nil
|
nil
|
(1) |
See “Caution related to sensitivities” above.
|
(2) |
The impact on net income attributed to shareholders assumes no gains or losses are realized on our AFS fixed income assets held in the Corporate
and Other segment and excludes the impact of changes in segregated fund bond values due to changes in credit spreads. The participating policy funds are largely self-supporting and generate no material
impact on net income attributed to shareholders as a result of changes in corporate and swap spreads.
|
(3) |
Sensitivities are based on projected asset and liability cash flows.
|
(4) |
Corporate spreads are assumed to grade to the long-term average over five years.
|
(5) |
As the sensitivity to a 50 basis point decline in corporate spreads includes the impact of a change in deterministic reinvestment scenarios where
applicable, the impact of changes to corporate spreads for less than, or more than, the amounts indicated are unlikely to be linear.
|
(6) |
The sensitivity on net income attributed to shareholders due to changes in corporate spreads decreased significantly as at June 30, 2022 compared
with December 31, 2021, as the rise in risk-free interest rates reduced projected reinvestments in the actuarial valuation models.
|
(7) |
LICAT impacts include realized and unrealized fair value change in AFS fixed income assets. Under LICAT, spread movements are determined from a selection of
investment grade bond indices with BBB and better bonds for each jurisdiction. For LICAT, we use the following indices: FTSE TMX Canada All Corporate Bond Index, Barclays USD Liquid Investment Grade Corporate Index, and Nomura-BPI
(Japan). LICAT impacts presented for corporate spreads do not reflect the impact of the scenario switch discussed below.
|
C5 |
Alternative long-duration asset performance risk
|
1 |
LICAT geographic locations include North America, the United Kingdom, Europe, Japan, and Other Region.
|
As at
|
June 30, 2022
|
December 31, 2021
|
||||||||||||||
($ millions)
|
-10
|
%
|
+10
|
%
|
-10
|
%
|
+10
|
%
|
||||||||
Net income attributed to shareholders
|
||||||||||||||||
Real estate, agriculture and timber assets
|
$
|
(1,300
|
)
|
$
|
1,200
|
$
|
(1,400
|
)
|
$
|
1,400
|
||||||
Private equities and other ALDA
|
(1,600
|
)
|
1,600
|
(1,900
|
)
|
1,800
|
||||||||||
Total(7)
|
$
|
(2,900
|
)
|
$
|
2,800
|
$
|
(3,300
|
)
|
$
|
3,200
|
||||||
MLI’s LICAT ratio (change in percentage points)
|
(3
|
)
|
2
|
(4
|
)
|
3
|
(1) |
See “Caution Related to Sensitivities” above.
|
(2) |
This impact is calculated as at a point-in-time impact and does not include: (i) any potential impact on ALDA weightings; or (ii) any gains or losses on ALDA held in the
Corporate and Other segment.
|
(3) |
The participating policy funds are largely self-supporting and generate no material impact on net income attributed to shareholders as a result of changes in ALDA returns. For
some classes of ALDA, where there is not an appropriate long-term benchmark available, the return assumptions used in valuation are not permitted by the Standards of Practice and CIA guidance to result in a lower reserve than an
assumption based on a historical return benchmark for public equities in the same jurisdiction.
|
(4) |
Net income impact does not consider any impact of the market correction on assumed future return assumptions.
|
(5) |
Please refer to section D2 “Sensitivity of earnings to asset related assumptions” for more information on the level of growth assumed and on the net income sensitivity to
changes in these long-term assumptions.
|
(6) |
The impact of changes to the portfolio asset mix supporting our North American legacy businesses are reflected in the sensitivities when the changes take place.
|
(7) |
The decrease in net income sensitivity under each ALDA returns scenario was primarily driven by the increase in fixed income yields since December 31, 2021. This led to higher
fixed income reinvestment rates relative to ALDA returns, which decreases the ALDA sensitivity because more fixed income assets are held compared to ALDA.
|
C6 |
Credit risk exposure measures
|
1 |
Includes debt securities, private placements and mortgages.
|
2 |
A one-notch downgrade is equivalent to a ratings downgrade from A to A- or BBB- to BB+.
|
As at
($ millions, unless otherwise stated)
|
June 30, 2022
|
December 31, 2021
|
||||||
Net impaired fixed income assets
|
$
|
264
|
$
|
228
|
||||
Net impaired fixed income assets as a % of total invested assets
|
0.066
|
%
|
0.053
|
%
|
||||
Allowance for loan losses
|
$
|
47
|
$
|
44
|
C7 |
Risk factors – strategic risk from changes in tax laws
|
• |
In 2021, 136 of the 140 members of the Organization for Economic Co-Operation and Development (“OECD”) / G20 Inclusive Framework agreed on a two-pillar solution to address tax challenges from the
digital economy, and to close the gaps in international tax systems. These include a new approach to allocating certain profits of multinational entities amongst countries and a global minimum income tax rate of 15%. These rules are
targeted to be effective in 2023, pending release of implementation guidelines, enactment of domestic tax laws and amendment of bilateral tax treaties beforehand. On April 7, 2022, the Canadian government reaffirmed its commitment to the
two-pillar solution in its 2022 Budget statement. The Company is closely monitoring developments and potential impacts and, in particular, for issues unique to the insurance industry. If enacted, we expect an increase in the effective tax
rate, pending further details on timing and specific implementation in both Canada and other affected countries.
|
• |
Canada’s 2022 Budget statement also provided clarity on how the one-time Canada Recovery Dividend and permanent corporate tax rate increase for certain financial institutions would be
applied. Both tax measures are expected to apply to Canada’s insurance and banking operations. Draft legislation was released for consultation on August 9, 2022. The proposed form of the Canada Recovery Dividend is a one-time 15% tax
applicable to the average taxable income for 2020 and 2021 in excess of $1 billion and is not expected to be a material cost to the Company. Upon substantive enactment in 2022, the 1.5% corporate tax rate increase on Canadian taxable
income over $100 million is estimated to have an immediate favourable impact on the value of our existing deferred tax asset, offset over time by a slight increase to our effective tax rate as future Canadian insurance and banking
earnings are taxed at the new higher federal corporate tax rate of 16.5%.
|
• |
The Canada 2022 Budget statement additionally provided more guidance on the transition to IFRS 17 for Canadian tax purposes. The five-year transition period for both insurance reserves and
revaluations of investments under IFRS 9 should generally smooth the current tax impact of the change in accounting standard but is not expected to have a material effect on the Company’s annual cash tax payable.
|
D1 |
Critical actuarial and accounting policies
|
D2 |
Sensitivity of earnings to asset related assumptions
|
Increase (decrease) in after-tax net income attributed
to shareholders
|
||||||||||||||||
As at
|
June 30, 2022
|
December 31, 2021
|
||||||||||||||
($ millions)
|
Increase
|
Decrease
|
Increase
|
Decrease
|
||||||||||||
Asset related assumptions updated periodically in valuation basis changes
|
||||||||||||||||
100 basis point change in future annual returns for public equities(1)
|
$
|
400
|
$
|
(400
|
)
|
$
|
500
|
$
|
(500
|
)
|
||||||
100 basis point change in future annual returns for ALDA(2)
|
3,100
|
(3,600
|
)
|
3,900
|
(4,700
|
)
|
||||||||||
100 basis point change in equity volatility assumption for stochastic segregated fund
modelling(3)
|
(100
|
)
|
100
|
(200
|
)
|
200
|
(1) |
The sensitivity to public equity returns above includes the impact on both segregated fund guarantee reserves and on other policy liabilities. Expected long-term annual market
growth assumptions for public equities are based on long-term historical observed experience and compliance with actuarial standards. As at June 30, 2022, the growth rates inclusive of dividends in the major markets used in the stochastic
valuation models for valuing segregated fund guarantees are 9.0% per annum in Canada, 9.6% per annum in the U.S. and 6.2% per annum in Japan. Growth assumptions for European equity funds are market-specific and vary between 8.3% and 9.9%.
|
(2) |
ALDA include commercial real estate, timber, farmland, infrastructure and private equities, some of which relate to oil and gas. Expected long-term return assumptions for ALDA and
public equity are set in accordance with the Standards of Practice for the valuation of insurance contract liabilities and guidance published by the CIA. Annual best estimate return assumptions for ALDA and public equity include market
growth rates and annual income, such as rent, production proceeds and dividends, and will vary based on our holding period. As of June 30, 2022, over a 20-year horizon, our best estimate return assumptions range between 5.25% and 11.5%,
with an average of 9.2% based on the current asset mix backing our guaranteed insurance and annuity business. As of June 30, 2022, our return assumptions including the margins for adverse deviations in our valuation, which take into
account the uncertainty of achieving the returns, range between 2.5% and 7.5%, with an average of 6.0% based on the asset mix backing our guaranteed insurance and annuity business.
|
(3) |
Volatility assumptions for public equities are based on long-term historical observed experience and compliance with actuarial standards. As of June 30, 2022, the resulting
volatility assumptions are 16.5% per annum in Canada and 17.1% per annum in the U.S. for large-cap public equities, and 19.1% per annum in Japan. For European equity funds, the volatility varies between 16.3% and 17.7%.
|
D3 |
Accounting and reporting changes
|
E1 |
Outstanding common shares - selected information
|
E2 |
Legal and regulatory proceedings
|
E3 |
Non-GAAP and other financial measures
|
1. |
Expected earnings on in-force policies, including expected release of provisions for adverse deviation, fee income, margins on group business and spread business such as Manulife Bank and asset
fund management.
|
2. |
Macro hedging costs based on expected market returns.
|
3. |
New business strain and gains.
|
4. |
Policyholder experience gains or losses.
|
5. |
Acquisition and operating expenses compared with expense assumptions used in the measurement of policy liabilities.
|
6. |
Up to $400 million of net favourable investment-related experience reported in a single year, which are referred to as “core investment
gains”. This means up to $100 million in the first quarter, up to $200 million on a year-to-date basis in the second quarter, up to $300 million on a year-to-date basis in the third quarter and up to $400 million on a full year basis in
the fourth quarter. Any investment-related experience losses reported in a quarter will be offset against the net year-to-date investment-related experience gains with the difference being included in core
earnings subject to a maximum of the year-to-date core investment gains and a minimum of zero, which reflects our expectation that investment-related experience will be positive through-the-business cycle. To the extent any
investment-related experience losses cannot be fully offset in a quarter they will be carried forward to be offset against investment-related experience gains in subsequent quarters in the same year, for purposes of determining core
investment gains. Investment-related experience relates to fixed income investing, ALDA returns, credit experience and asset mix changes other than those related to a strategic change. An example of a strategic asset mix change is
outlined below.
|
• |
This favourable and unfavourable investment-related experience is a combination of reported investment experience as well as the impact of investing activities on the measurement of our policy
liabilities. We do not attribute specific components of investment-related experience to amounts included or excluded from core earnings.
|
• |
The $400 million threshold represents the estimated average annualized amount of net favourable investment-related experience that the Company reasonably expects to achieve through-the-business
cycle based on historical experience. It is not a forecast of expected net favourable investment-related experience for any given fiscal year.
|
• |
Our average net annualized investment-related experience, including core investment gains, calculated from the introduction of core earnings in 2012 to the end of 2021 was $546 million (2012 to
the end of 2020 was $380 million).
|
• |
The decision announced on December 22, 2017 to reduce the allocation to ALDA in the portfolio asset mix supporting our legacy businesses was the first strategic asset mix change since we
introduced the core earnings metric in 2012. We refined our description of investment-related experience in 2017 to note that asset mix changes other than those related to a strategic change are taken into
consideration in the investment-related experience component of core investment gains.
|
• |
While historical investment return time horizons may vary in length based on underlying asset classes generally exceeding 20 years, for purposes of establishing the threshold, we look at a
business cycle that is five or more years and includes a recession. We monitor the appropriateness of the threshold as part of our annual five-year planning process and would adjust it, either to a higher or lower amount, in the future if
we believed that our threshold was no longer appropriate.
|
• |
Specific criteria used for evaluating a potential adjustment to the threshold may include, but are not limited to, the extent to which actual investment-related experience differs materially from
actuarial assumptions
|
used in measuring insurance contract liabilities, material market events, material dispositions or acquisitions of assets, and regulatory or accounting changes.
|
7. |
Earnings on surplus other than mark-to-market items. Gains on available-for-sale (“AFS”) equities and seed money investments in segregated and mutual funds are included in core earnings.
|
8. |
Routine or non-material legal settlements.
|
9. |
All other items not specifically excluded.
|
10. |
Tax on the above items.
|
11. |
All tax related items except the impact of enacted or substantively enacted income tax rate changes.
|
1. |
The direct impact of equity markets and interest rates and variable annuity guarantee liabilities includes the items listed below.
|
• |
The earnings impact of the difference between the net increase (decrease) in variable annuity liabilities that are dynamically hedged and the performance of the related hedge assets. Our variable
annuity dynamic hedging strategy is not designed to completely offset the sensitivity of insurance and investment contract liabilities to all risks or measurements associated with the guarantees embedded in these products for a number of
reasons, including: provisions for adverse deviation, fund performance, the portion of the interest rate risk that is not dynamically hedged, realized equity and interest rate volatilities and changes to policyholder behaviour.
|
• |
Gains (charges) on variable annuity guarantee liabilities not dynamically hedged.
|
• |
Gains (charges) on general fund equity investments supporting policy liabilities and on fee income.
|
• |
Gains (charges) on macro equity hedges relative to expected costs. The expected cost of macro hedges is calculated using the equity assumptions used in the valuation of insurance and investment
contract liabilities.
|
• |
Gains (charges) on higher (lower) fixed income reinvestment rates assumed in the valuation of insurance and investment contract liabilities.
|
• |
Gains (charges) on sale of AFS bonds and open derivatives not in hedging relationships in the Corporate and Other segment.
|
2. |
Net favourable investment-related experience in excess of $400 million per annum or net unfavourable investment-related experience on a year-to-date basis.
|
3. |
Mark-to-market gains or losses on assets held in the Corporate and Other segment other than gains on AFS equities and seed money investments in new segregated or mutual funds.
|
4. |
Changes in actuarial methods and assumptions. As noted in the “Critical actuarial and accounting policies” section of our 2021 MD&A, policy liabilities for IFRS are valued in Canada under
standards established by the Actuarial Standards Board. The standards require a comprehensive review of actuarial methods and assumptions to be performed annually. The review is designed to reduce the Company’s exposure to uncertainty by
ensuring assumptions for both asset related and liability related risks remain appropriate and is accomplished by monitoring experience and selecting assumptions which represent a current best estimate view of expected future experience,
and margins that are appropriate for the risks assumed. Changes related to ultimate reinvestment rates (“URR”) are included in the direct impact of equity markets and interest rates and variable annuity guarantee liabilities. By excluding
the results of the annual reviews, core earnings assist investors in evaluating our operational performance and comparing our operational performance from period to period with other global insurance companies because the associated gain
or loss is not reflective of current year performance and not reported in net income in most actuarial standards outside of Canada.
|
5. |
The impact on the measurement of policy liabilities of changes in product features or new reinsurance transactions, if material.
|
6. |
Goodwill impairment charges.
|
7. |
Gains or losses on disposition of a business.
|
8. |
Material one-time only adjustments, including highly unusual/extraordinary and material legal settlements or other items that are material and exceptional in nature.
|
9. |
Tax on the above items.
|
10. |
Net income (loss) attributed to participating policyholders and non-controlling interests.
|
11. |
Impact of enacted or substantially enacted income tax rate changes.
|
2Q22 | ||||||||||||||||||||||||
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
||||||||||||||||||
Income (loss) before income taxes
|
$
|
216
|
$
|
224
|
$
|
1,010
|
$
|
362
|
$
|
(555
|
)
|
$
|
1,257
|
|||||||||||
Income tax (expense) recovery
|
||||||||||||||||||||||||
Core earnings
|
(74
|
)
|
(119
|
)
|
(92
|
)
|
(57
|
)
|
4
|
(338
|
)
|
|||||||||||||
Items excluded from core earnings
|
44
|
64
|
(82
|
)
|
-
|
54
|
80
|
|||||||||||||||||
Income tax (expense) recovery
|
(30
|
)
|
(55
|
)
|
(174
|
)
|
(57
|
)
|
58
|
(258
|
)
|
|||||||||||||
Net income (post-tax)
|
186
|
169
|
836
|
305
|
(497
|
)
|
999
|
|||||||||||||||||
Less: Net income (post-tax) attributed to
|
||||||||||||||||||||||||
Non-controlling interests
|
(11
|
)
|
-
|
-
|
-
|
-
|
(11
|
)
|
||||||||||||||||
Participating policyholders
|
(164
|
)
|
84
|
4
|
-
|
-
|
(76
|
)
|
||||||||||||||||
Net income (loss) attributed to shareholders
(post-tax)
|
361
|
85
|
832
|
305
|
(497
|
)
|
1,086
|
|||||||||||||||||
Less: Items excluded from core earnings(1)
|
||||||||||||||||||||||||
Investment-related experience outside of core
earnings
|
80
|
86
|
591
|
-
|
(166
|
)
|
591
|
|||||||||||||||||
Direct impact of equity markets and interest
rates and variable annuity guarantee
liabilities
|
(232
|
)
|
(346
|
)
|
(215
|
)
|
-
|
(274
|
)
|
(1,067
|
)
|
|||||||||||||
Change in actuarial methods and assumptions
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Restructuring charge
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Reinsurance transactions, tax related items
and other
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Core earnings (post-tax)
|
$
|
513
|
$
|
345
|
$
|
456
|
$
|
305
|
$
|
(57
|
)
|
$
|
1,562
|
|||||||||||
Income tax on core earnings (see above)
|
74
|
119
|
92
|
57
|
(4
|
)
|
338
|
|||||||||||||||||
Core earnings (pre-tax)
|
$
|
587
|
$
|
464
|
$
|
548
|
$
|
362
|
$
|
(61
|
)
|
$
|
1,900
|
(1) |
These items are disclosed under OSFI’s Source of Earnings Disclosure (Life Insurance Companies) guideline.
|
2Q22 | ||||||||||||||||||||||||
(Canadian $ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise
stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
||||||||||||||||||
Core earnings (post-tax)
|
$
|
513
|
$
|
345
|
$
|
456
|
$
|
305
|
$
|
(57
|
)
|
$
|
1,562
|
|||||||||||
CER adjustment(1)
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Core earnings, CER basis (post-tax)
|
$
|
513
|
$
|
345
|
$
|
456
|
$
|
305
|
$
|
(57
|
)
|
$
|
1,562
|
|||||||||||
Income tax on core earnings, CER basis(2)
|
74
|
119
|
92
|
57
|
(4
|
)
|
338
|
|||||||||||||||||
Core earnings, CER basis (pre-tax)
|
$
|
587
|
$
|
464
|
$
|
548
|
$
|
362
|
$
|
(61
|
)
|
$
|
1,900
|
|||||||||||
Core earnings (U.S. dollars) - Asia and U.S.
segments
|
||||||||||||||||||||||||
Core earnings (post-tax)(3), US $
|
$
|
401
|
$
|
357
|
||||||||||||||||||||
CER adjustment US $(1)
|
-
|
-
|
||||||||||||||||||||||
Core earnings, CER basis (post-tax), US $
|
$
|
401
|
$
|
357
|
(1) |
The impact of updating foreign exchange rates to that which was used in 2Q22.
|
(2) |
Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 2Q22.
|
(3) |
Core earnings (post-tax) in Canadian $ is translated to US $ using the US $ Statement of Income exchange rate for 2Q22.
|
1Q22 | ||||||||||||||||||||||||
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
||||||||||||||||||
Income (loss) before income taxes
|
$
|
681
|
$
|
880
|
$
|
2,577
|
$
|
386
|
$
|
(813
|
)
|
$
|
3,711
|
|||||||||||
Income tax (expense) recovery
|
||||||||||||||||||||||||
Core earnings
|
(74
|
)
|
(110
|
)
|
(105
|
)
|
(61
|
)
|
26
|
(324
|
)
|
|||||||||||||
Items excluded from core earnings
|
(11
|
)
|
(115
|
)
|
(405
|
)
|
-
|
46
|
(485
|
)
|
||||||||||||||
Income tax (expense) recovery
|
(85
|
)
|
(225
|
)
|
(510
|
)
|
(61
|
)
|
72
|
(809
|
)
|
|||||||||||||
Net income (post-tax)
|
596
|
655
|
2,067
|
325
|
(741
|
)
|
2,902
|
|||||||||||||||||
Less: Net income (post-tax) attributed to
|
||||||||||||||||||||||||
Non-controlling interests
|
20
|
-
|
-
|
1
|
-
|
21
|
||||||||||||||||||
Participating policyholders
|
(197
|
)
|
108
|
-
|
-
|
-
|
(89
|
)
|
||||||||||||||||
Net income (loss) attributed to shareholders
(post-tax)
|
773
|
547
|
2,067
|
324
|
(741
|
)
|
2,970
|
|||||||||||||||||
Less: Items excluded from core earnings(1)
|
||||||||||||||||||||||||
Investment-related experience outside of core
earnings
|
64
|
53
|
527
|
-
|
(86
|
)
|
558
|
|||||||||||||||||
Direct impact of equity markets and interest
rates and variable annuity guarantee liabilities
|
180
|
180
|
212
|
-
|
(475
|
)
|
97
|
|||||||||||||||||
Change in actuarial methods and assumptions
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Restructuring charge
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Reinsurance transactions, tax related items
and other
|
(8
|
)
|
-
|
842
|
-
|
(71
|
)
|
763
|
||||||||||||||||
Core earnings (post-tax)
|
$
|
537
|
$
|
314
|
$
|
486
|
$
|
324
|
$
|
(109
|
)
|
$
|
1,552
|
|||||||||||
Income tax on core earnings (see above)
|
74
|
110
|
105
|
61
|
(26
|
)
|
324
|
|||||||||||||||||
Core earnings (pre-tax)
|
$
|
611
|
$
|
424
|
$
|
591
|
$
|
385
|
$
|
(135
|
)
|
$
|
1,876
|
(1) |
These items are disclosed under OSFI’s Source of Earnings Disclosure (Life Insurance Companies) guideline.
|
1Q22 | ||||||||||||||||||||||||
(Canadian $ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise
stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
||||||||||||||||||
Core earnings (post-tax)
|
$
|
537
|
$
|
314
|
$
|
486
|
$
|
324
|
$
|
(109
|
)
|
$
|
1,552
|
|||||||||||
CER adjustment(1)
|
(10
|
)
|
-
|
4
|
1
|
-
|
(5
|
)
|
||||||||||||||||
Core earnings, CER basis (post-tax)
|
$
|
527
|
$
|
314
|
$
|
490
|
$
|
325
|
$
|
(109
|
)
|
$
|
1,547
|
|||||||||||
Income tax on core earnings, CER basis(2)
|
72
|
110
|
106
|
61
|
(26
|
)
|
323
|
|||||||||||||||||
Core earnings, CER basis (pre-tax)
|
$
|
599
|
$
|
424
|
$
|
596
|
$
|
386
|
$
|
(135
|
)
|
$
|
1,870
|
|||||||||||
Core earnings (U.S. dollars) - Asia and U.S.
segments
|
||||||||||||||||||||||||
Core earnings (post-tax)(3), US $
|
$
|
424
|
$
|
384
|
||||||||||||||||||||
CER adjustment US $(1)
|
(12
|
)
|
-
|
|||||||||||||||||||||
Core earnings, CER basis (post-tax), US $
|
$
|
412
|
$
|
384
|
(1) |
The impact of updating foreign exchange rates to that which was used in 2Q22.
|
(2) |
Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 2Q22.
|
(3) |
Core earnings (post-tax) in Canadian $ is translated to US $ using the US $ Statement of Income exchange rate for 1Q22.
|
4Q21 | ||||||||||||||||||||||||
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
||||||||||||||||||
Income (loss) before income taxes
|
$
|
684
|
$
|
806
|
$
|
614
|
$
|
438
|
$
|
(61
|
)
|
$
|
2,481
|
|||||||||||
Income tax (expense) recovery
|
||||||||||||||||||||||||
Core earnings
|
(68
|
)
|
(101
|
)
|
(117
|
)
|
(52
|
)
|
(8
|
)
|
(346
|
)
|
||||||||||||
Items excluded from core earnings
|
(15
|
)
|
(77
|
)
|
(4
|
)
|
2
|
10
|
(84
|
)
|
||||||||||||||
Income tax (expense) recovery
|
(83
|
)
|
(178
|
)
|
(121
|
)
|
(50
|
)
|
2
|
(430
|
)
|
|||||||||||||
Net income (post-tax)
|
601
|
628
|
493
|
388
|
(59
|
)
|
2,051
|
|||||||||||||||||
Less: Net income (post-tax) attributed to
|
||||||||||||||||||||||||
Non-controlling interests
|
32
|
-
|
-
|
1
|
(1
|
)
|
32
|
|||||||||||||||||
Participating policyholders
|
(76
|
)
|
12
|
(1
|
)
|
-
|
-
|
(65
|
)
|
|||||||||||||||
Net income (loss) attributed to shareholders
(post-tax)
|
645
|
616
|
494
|
387
|
(58
|
)
|
2,084
|
|||||||||||||||||
Less: Items excluded from core earnings(1)
|
||||||||||||||||||||||||
Investment-related experience outside of core
earnings
|
58
|
90
|
58
|
-
|
(80
|
)
|
126
|
|||||||||||||||||
Direct impact of equity markets and interest
rates and variable annuity guarantee liabilities
|
32
|
240
|
125
|
-
|
1
|
398
|
||||||||||||||||||
Change in actuarial methods and assumptions
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Restructuring charge
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Reinsurance transactions, tax related items
and other
|
8
|
-
|
(156
|
)
|
-
|
-
|
(148
|
)
|
||||||||||||||||
Core earnings (post-tax)
|
$
|
547
|
$
|
286
|
$
|
467
|
$
|
387
|
$
|
21
|
$
|
1,708
|
||||||||||||
Income tax on core earnings (see above)
|
68
|
101
|
117
|
52
|
8
|
346
|
||||||||||||||||||
Core earnings (pre-tax)
|
$
|
615
|
$
|
387
|
$
|
584
|
$
|
439
|
$
|
29
|
$
|
2,054
|
(1) |
These items are disclosed under OSFI’s Source of Earnings Disclosure (Life Insurance Companies) guideline.
|
4Q21 | ||||||||||||||||||||||||
(Canadian $ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise
stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
||||||||||||||||||
Core earnings (post-tax)
|
$
|
547
|
$
|
286
|
$
|
467
|
$
|
387
|
$
|
21
|
$
|
1,708
|
||||||||||||
CER adjustment(1)
|
(8
|
)
|
-
|
6
|
4
|
-
|
2
|
|||||||||||||||||
Core earnings, CER basis (post-tax)
|
$
|
539
|
$
|
286
|
$
|
473
|
$
|
391
|
$
|
21
|
$
|
1,710
|
||||||||||||
Income tax on core earnings, CER basis(2)
|
67
|
101
|
119
|
51
|
8
|
346
|
||||||||||||||||||
Core earnings, CER basis (pre-tax)
|
$
|
606
|
$
|
387
|
$
|
592
|
$
|
442
|
$
|
29
|
$
|
2,056
|
||||||||||||
Core earnings (U.S. dollars) - Asia and U.S.
segments
|
||||||||||||||||||||||||
Core earnings (post-tax)(3), US $
|
$
|
435
|
$
|
370
|
||||||||||||||||||||
CER adjustment US $(1)
|
(13
|
)
|
-
|
|||||||||||||||||||||
Core earnings, CER basis (post-tax), US $
|
$
|
422
|
$
|
370
|
(1) |
The impact of updating foreign exchange rates to that which was used in 2Q22.
|
(2) |
Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 2Q22.
|
(3) |
Core earnings (post-tax) in Canadian $ is translated to US $ using the US $ Statement of Income exchange rate for 4Q21.
|
3Q21 | ||||||||||||||||||||||||
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
||||||||||||||||||
Income (loss) before income taxes
|
$
|
650
|
$
|
(101
|
)
|
$
|
800
|
$
|
418
|
$
|
(287
|
)
|
$
|
1,480
|
||||||||||
Income tax (expense) recovery
|
||||||||||||||||||||||||
Core earnings
|
(52
|
)
|
(109
|
)
|
(79
|
)
|
(66
|
)
|
12
|
(294
|
)
|
|||||||||||||
Items excluded from core earnings
|
(31
|
)
|
153
|
(16
|
)
|
(1
|
)
|
23
|
128
|
|||||||||||||||
Income tax (expense) recovery
|
(83
|
)
|
44
|
(95
|
)
|
(67
|
)
|
35
|
(166
|
)
|
||||||||||||||
Net income (post-tax)
|
567
|
(57
|
)
|
705
|
351
|
(252
|
)
|
1,314
|
||||||||||||||||
Less: Net income (post-tax) attributed to
|
||||||||||||||||||||||||
Non-controlling interests
|
48
|
-
|
-
|
-
|
-
|
48
|
||||||||||||||||||
Participating policyholders
|
(303
|
)
|
(31
|
)
|
8
|
-
|
-
|
(326
|
)
|
|||||||||||||||
Net income (loss) attributed to shareholders
(post-tax)
|
822
|
(26
|
)
|
697
|
351
|
(252
|
)
|
1,592
|
||||||||||||||||
Less: Items excluded from core earnings(1)
|
||||||||||||||||||||||||
Investment-related experience outside of core
earnings
|
62
|
97
|
617
|
-
|
(76
|
)
|
700
|
|||||||||||||||||
Direct impact of equity markets and interest
rates and variable annuity guarantee liabilities
|
(129
|
)
|
(369
|
)
|
(96
|
)
|
-
|
(3
|
)
|
(597
|
)
|
|||||||||||||
Change in actuarial methods and assumptions
|
343
|
(65
|
)
|
(314
|
)
|
-
|
(5
|
)
|
(41
|
)
|
||||||||||||||
Restructuring charge
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Reinsurance transactions, tax related items
and other
|
13
|
-
|
-
|
-
|
-
|
13
|
||||||||||||||||||
Core earnings (post-tax)
|
$
|
533
|
$
|
311
|
$
|
490
|
$
|
351
|
$
|
(168
|
)
|
$
|
1,517
|
|||||||||||
Income tax on core earnings (see above)
|
52
|
109
|
79
|
66
|
(12
|
)
|
294
|
|||||||||||||||||
Core earnings (pre-tax)
|
$
|
585
|
$
|
420
|
$
|
569
|
$
|
417
|
$
|
(180
|
)
|
$
|
1,811
|
(1) |
These items are disclosed under OSFI’s Source of Earnings Disclosure (Life Insurance Companies) guideline.
|
3Q21 | ||||||||||||||||||||||||
(Canadian $ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise
stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
||||||||||||||||||
Core earnings (post-tax)
|
$
|
533
|
$
|
311
|
$
|
490
|
$
|
351
|
$
|
(168
|
)
|
$
|
1,517
|
|||||||||||
CER adjustment(1)
|
(12
|
)
|
-
|
7
|
2
|
(2
|
)
|
(5
|
)
|
|||||||||||||||
Core earnings, CER basis (post-tax)
|
$
|
521
|
$
|
311
|
$
|
497
|
$
|
353
|
$
|
(170
|
)
|
$
|
1,512
|
|||||||||||
Income tax on core earnings, CER basis(2)
|
51
|
110
|
80
|
66
|
(12
|
)
|
295
|
|||||||||||||||||
Core earnings, CER basis (pre-tax)
|
$
|
572
|
$
|
421
|
$
|
577
|
$
|
419
|
$
|
(182
|
)
|
$
|
1,807
|
|||||||||||
Core earnings (U.S. dollars) - Asia and U.S.
segments
|
||||||||||||||||||||||||
Core earnings (post-tax)(3), US $
|
$
|
424
|
$
|
389
|
||||||||||||||||||||
CER adjustment US $(1)
|
(16
|
)
|
-
|
|||||||||||||||||||||
Core earnings, CER basis (post-tax), US $
|
$
|
408
|
$
|
389
|
(1) |
The impact of updating foreign exchange rates to that which was used in 2Q22.
|
(2) |
Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 2Q22.
|
(3) |
Core earnings (post-tax) in Canadian $ is translated to US $ using the US $ Statement of Income exchange rate for 3Q21.
|
2Q21 | ||||||||||||||||||||||||
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
||||||||||||||||||
Income (loss) before income taxes
|
$
|
736
|
$
|
1,031
|
$
|
986
|
$
|
419
|
$
|
120
|
$
|
3,292
|
||||||||||||
Income tax (expense) recovery
|
||||||||||||||||||||||||
Core earnings
|
(78
|
)
|
(112
|
)
|
(106
|
)
|
(64
|
)
|
6
|
(354
|
)
|
|||||||||||||
Items excluded from core earnings
|
(22
|
)
|
(107
|
)
|
(83
|
)
|
1
|
(45
|
)
|
(256
|
)
|
|||||||||||||
Income tax (expense) recovery
|
(100
|
)
|
(219
|
)
|
(189
|
)
|
(63
|
)
|
(39
|
)
|
(610
|
)
|
||||||||||||
Net income (post-tax)
|
636
|
812
|
797
|
356
|
81
|
2,682
|
||||||||||||||||||
Less: Net income (post-tax) attributed to
|
||||||||||||||||||||||||
Non-controlling interests
|
84
|
-
|
-
|
-
|
-
|
84
|
||||||||||||||||||
Participating policyholders
|
(81
|
)
|
29
|
4
|
-
|
-
|
(48
|
)
|
||||||||||||||||
Net income (loss) attributed to shareholders
(post-tax)
|
633
|
783
|
793
|
356
|
81
|
2,646
|
||||||||||||||||||
Less: Items excluded from core earnings(1)
|
||||||||||||||||||||||||
Investment-related experience outside of core
earnings
|
121
|
207
|
506
|
-
|
(95
|
)
|
739
|
|||||||||||||||||
Direct impact of equity markets and interest
rates and variable annuity guarantee liabilities
|
(22
|
)
|
258
|
(191
|
)
|
-
|
172
|
217
|
||||||||||||||||
Change in actuarial methods and assumptions
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Restructuring charge
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Reinsurance transactions, tax related items
and other
|
8
|
-
|
-
|
-
|
-
|
8
|
||||||||||||||||||
Core earnings (post-tax)
|
$
|
526
|
$
|
318
|
$
|
478
|
$
|
356
|
$
|
4
|
$
|
1,682
|
||||||||||||
Income tax on core earnings (see above)
|
78
|
112
|
106
|
64
|
(6
|
)
|
354
|
|||||||||||||||||
Core earnings (pre-tax)
|
$
|
604
|
$
|
430
|
$
|
584
|
$
|
420
|
$
|
(2
|
)
|
$
|
2,036
|
(1) |
These items are disclosed under OSFI’s Source of Earnings Disclosure (Life Insurance Companies) guideline.
|
2Q21 | ||||||||||||||||||||||||
(Canadian $ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise
stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
||||||||||||||||||
Core earnings (post-tax)
|
$
|
526
|
$
|
318
|
$
|
478
|
$
|
356
|
$
|
4
|
$
|
1,682
|
||||||||||||
CER adjustment(1)
|
1
|
-
|
19
|
9
|
1
|
30
|
||||||||||||||||||
Core earnings, CER basis (post-tax)
|
$
|
527
|
$
|
318
|
$
|
497
|
$
|
365
|
$
|
5
|
$
|
1,712
|
||||||||||||
Income tax on core earnings, CER basis(2)
|
80
|
111
|
109
|
65
|
(5
|
)
|
360
|
|||||||||||||||||
Core earnings, CER basis (pre-tax)
|
$
|
607
|
$
|
429
|
$
|
606
|
$
|
430
|
$
|
-
|
$
|
2,072
|
||||||||||||
Core earnings (U.S. dollars) - Asia and U.S.
segments
|
||||||||||||||||||||||||
Core earnings (post-tax)(3), US $
|
$
|
427
|
$
|
389
|
||||||||||||||||||||
CER adjustment US $(1)
|
(14
|
)
|
-
|
|||||||||||||||||||||
Core earnings, CER basis (post-tax), US $
|
$
|
413
|
$
|
389
|
(1) |
The impact of updating foreign exchange rates to that which was used in 2Q22.
|
(2) |
Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 2Q22.
|
(3) |
Core earnings (post-tax) in Canadian $ is translated to US $ using the US $ Statement of Income exchange rate for 2Q21.
|
YTD 2022
|
||||||||||||||||||||||||
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
||||||||||||||||||
Income (loss) before income taxes
|
$
|
897
|
$
|
1,104
|
$
|
3,587
|
$
|
748
|
$
|
(1,368
|
)
|
$
|
4,968
|
|||||||||||
Income tax (expense) recovery
|
||||||||||||||||||||||||
Core earnings
|
(148
|
)
|
(229
|
)
|
(197
|
)
|
(118
|
)
|
30
|
(662
|
)
|
|||||||||||||
Items excluded from core earnings
|
33
|
(51
|
)
|
(487
|
)
|
-
|
100
|
(405
|
)
|
|||||||||||||||
Income tax (expense) recovery
|
(115
|
)
|
(280
|
)
|
(684
|
)
|
(118
|
)
|
130
|
(1,067
|
)
|
|||||||||||||
Net income (post-tax)
|
782
|
824
|
2,903
|
630
|
(1,238
|
)
|
3,901
|
|||||||||||||||||
Less: Net income (post-tax) attributed to
|
||||||||||||||||||||||||
Non-controlling interests
|
9
|
-
|
-
|
1
|
-
|
10
|
||||||||||||||||||
Participating policyholders
|
(361
|
)
|
192
|
4
|
-
|
-
|
(165
|
)
|
||||||||||||||||
Net income (loss) attributed to shareholders
(post-tax)
|
1,134
|
632
|
2,899
|
629
|
(1,238
|
)
|
4,056
|
|||||||||||||||||
Less: Items excluded from core earnings(1)
|
||||||||||||||||||||||||
Investment-related experience outside of core
earnings
|
144
|
139
|
1,118
|
-
|
(252
|
)
|
1,149
|
|||||||||||||||||
Direct impact of equity markets and interest rates
and variable annuity guarantee liabilities
|
(52
|
)
|
(166
|
)
|
(3
|
)
|
-
|
(749
|
)
|
(970
|
)
|
|||||||||||||
Change in actuarial methods and assumptions
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Restructuring charge
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Reinsurance transactions, tax related items
and other
|
(8
|
)
|
-
|
842
|
-
|
(71
|
)
|
763
|
||||||||||||||||
Core earnings (post-tax)
|
$
|
1,050
|
$
|
659
|
$
|
942
|
$
|
629
|
$
|
(166
|
)
|
$
|
3,114
|
|||||||||||
Income tax on core earnings (see above)
|
148
|
229
|
197
|
118
|
(30
|
)
|
662
|
|||||||||||||||||
Core earnings (pre-tax)
|
$
|
1,198
|
$
|
888
|
$
|
1,139
|
$
|
747
|
$
|
(196
|
)
|
$
|
3,776
|
(1) |
These items are disclosed under OSFI’s Source of Earnings Disclosure (Life Insurance Companies) guideline.
|
YTD 2022
|
||||||||||||||||||||||||
(Canadian $ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise
stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
||||||||||||||||||
Core earnings (post-tax)
|
$
|
1,050
|
$
|
659
|
$
|
942
|
$
|
629
|
$
|
(166
|
)
|
$
|
3,114
|
|||||||||||
CER adjustment(1)
|
(10
|
)
|
-
|
4
|
1
|
-
|
(5
|
)
|
||||||||||||||||
Core earnings, CER basis (post-tax)
|
$
|
1,040
|
$
|
659
|
$
|
946
|
$
|
630
|
$
|
(166
|
)
|
$
|
3,109
|
|||||||||||
Income tax on core earnings, CER basis(2)
|
146
|
229
|
198
|
118
|
(30
|
)
|
661
|
|||||||||||||||||
Core earnings, CER basis (pre-tax)
|
$
|
1,186
|
$
|
888
|
$
|
1,144
|
$
|
748
|
$
|
(196
|
)
|
$
|
3,770
|
|||||||||||
Core earnings (U.S. dollars) - Asia and U.S.
segments
|
||||||||||||||||||||||||
Core earnings (post-tax)(3), US $
|
$
|
825
|
$
|
741
|
||||||||||||||||||||
CER adjustment US $(1)
|
(12
|
)
|
-
|
|||||||||||||||||||||
Core earnings, CER basis (post-tax), US $
|
$
|
813
|
$
|
741
|
(1) |
The impact of updating foreign exchange rates to that which was used in 2Q22.
|
(2) |
Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 2Q22.
|
(3) |
Core earnings (post-tax) in Canadian $ is translated to US $ using the US $ Statement of Income exchange rate for the two respective quarters that make up 2Q22 year-to-date core
earnings.
|
YTD 2021
|
||||||||||||||||||||||||
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
||||||||||||||||||
Income (loss) before income taxes
|
$
|
1,854
|
$
|
1,086
|
$
|
1,070
|
$
|
785
|
$
|
(631
|
)
|
$
|
4,164
|
|||||||||||
Income tax (expense) recovery
|
||||||||||||||||||||||||
Core earnings
|
(202
|
)
|
(203
|
)
|
(222
|
)
|
(116
|
)
|
23
|
(720
|
)
|
|||||||||||||
Items excluded from core earnings
|
(76
|
)
|
1
|
52
|
-
|
126
|
103
|
|||||||||||||||||
Income tax (expense) recovery
|
(278
|
)
|
(202
|
)
|
(170
|
)
|
(116
|
)
|
149
|
(617
|
)
|
|||||||||||||
Net income (post-tax)
|
1,576
|
884
|
900
|
669
|
(482
|
)
|
3,547
|
|||||||||||||||||
Less: Net income (post-tax) attributed to
|
||||||||||||||||||||||||
Non-controlling interests
|
174
|
-
|
-
|
1
|
-
|
175
|
||||||||||||||||||
Participating policyholders
|
(188
|
)
|
120
|
11
|
-
|
-
|
(57
|
)
|
||||||||||||||||
Net income (loss) attributed to shareholders
(post-tax)
|
1,590
|
764
|
889
|
668
|
(482
|
)
|
3,429
|
|||||||||||||||||
Less: Items excluded from core earnings(1)
|
||||||||||||||||||||||||
Investment-related experience outside of core
earnings
|
193
|
142
|
666
|
-
|
(185
|
)
|
816
|
|||||||||||||||||
Direct impact of equity markets and interest
rates and variable annuity guarantee liabilities
|
266
|
40
|
(756
|
)
|
-
|
(168
|
)
|
(618
|
)
|
|||||||||||||||
Change in actuarial methods and assumptions
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Restructuring charge
|
-
|
-
|
-
|
-
|
(115
|
)
|
(115
|
)
|
||||||||||||||||
Reinsurance transactions, tax related items
and other
|
35
|
-
|
-
|
-
|
-
|
35
|
||||||||||||||||||
Core earnings (post-tax)
|
$
|
1,096
|
$
|
582
|
$
|
979
|
$
|
668
|
$
|
(14
|
)
|
$
|
3,311
|
|||||||||||
Income tax on core earnings (see above)
|
202
|
203
|
222
|
116
|
(23
|
)
|
720
|
|||||||||||||||||
Core earnings (pre-tax)
|
$
|
1,298
|
$
|
785
|
$
|
1,201
|
$
|
784
|
$
|
(37
|
)
|
$
|
4,031
|
(1) |
These items are disclosed under OSFI’s Source of Earnings Disclosure (Life Insurance Companies) guideline.
|
YTD 2021
|
||||||||||||||||||||||||
(Canadian $ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise
stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
||||||||||||||||||
Core earnings (post-tax)
|
$
|
1,096
|
$
|
582
|
$
|
979
|
$
|
668
|
$
|
(14
|
)
|
$
|
3,311
|
|||||||||||
CER adjustment(1)
|
(18
|
)
|
-
|
23
|
10
|
1
|
16
|
|||||||||||||||||
Core earnings, CER basis (post-tax)
|
$
|
1,078
|
$
|
582
|
$
|
1,002
|
$
|
678
|
$
|
(13
|
)
|
$
|
3,327
|
|||||||||||
Income tax on core earnings, CER basis(2)
|
200
|
202
|
227
|
117
|
(23
|
)
|
723
|
|||||||||||||||||
Core earnings, CER basis (pre-tax)
|
$
|
1,278
|
$
|
784
|
$
|
1,229
|
$
|
795
|
$
|
(36
|
)
|
$
|
4,050
|
|||||||||||
Core earnings (U.S. dollars) - Asia and U.S.
segments
|
||||||||||||||||||||||||
Core earnings (post-tax)(3), US $
|
$
|
877
|
$
|
785
|
||||||||||||||||||||
CER adjustment US $(1)
|
(33
|
)
|
-
|
|||||||||||||||||||||
Core earnings, CER basis (post-tax), US $
|
$
|
844
|
$
|
785
|
(1) |
The impact of updating foreign exchange rates to that which was used in 2Q22.
|
(2) |
Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 2Q22.
|
(3) |
Core earnings (post-tax) in Canadian $ is translated to US $ using the US $ Statement of Income exchange rate for the two respective quarters that make up 2Q21 year-to-date core
earnings.
|
2021
|
||||||||||||||||||||||||
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
||||||||||||||||||
Income (loss) before income taxes
|
$
|
3,188
|
$
|
1,791
|
$
|
2,484
|
$
|
1,641
|
$
|
(979
|
)
|
$
|
8,125
|
|||||||||||
Income tax (expense) recovery
|
||||||||||||||||||||||||
Core earnings
|
(322
|
)
|
(413
|
)
|
(418
|
)
|
(234
|
)
|
27
|
(1,360
|
)
|
|||||||||||||
Items excluded from core earnings
|
(122
|
)
|
77
|
32
|
1
|
159
|
147
|
|||||||||||||||||
Income tax (expense) recovery
|
(444
|
)
|
(336
|
)
|
(386
|
)
|
(233
|
)
|
186
|
(1,213
|
)
|
|||||||||||||
Net income (post-tax)
|
2,744
|
1,455
|
2,098
|
1,408
|
(793
|
)
|
6,912
|
|||||||||||||||||
Less: Net income (post-tax) attributed to
|
||||||||||||||||||||||||
Non-controlling interests
|
254
|
-
|
-
|
2
|
(1
|
)
|
255
|
|||||||||||||||||
Participating policyholders
|
(567
|
)
|
101
|
18
|
-
|
-
|
(448
|
)
|
||||||||||||||||
Net income (loss) attributed to shareholders
(post-tax)
|
3,057
|
1,354
|
2,080
|
1,406
|
(792
|
)
|
7,105
|
|||||||||||||||||
Less: Items excluded from core earnings(1)
|
||||||||||||||||||||||||
Investment-related experience outside of core
earnings
|
313
|
329
|
1,341
|
-
|
(341
|
)
|
1,642
|
|||||||||||||||||
Direct impact of equity markets and interest
rates and variable annuity guarantee liabilities
|
169
|
(89
|
)
|
(727
|
)
|
-
|
(170
|
)
|
(817
|
)
|
||||||||||||||
Change in actuarial methods and assumptions
|
343
|
(65
|
)
|
(314
|
)
|
-
|
(5
|
)
|
(41
|
)
|
||||||||||||||
Restructuring charge
|
-
|
-
|
-
|
-
|
(115
|
)
|
(115
|
)
|
||||||||||||||||
Reinsurance transactions, tax related items
and other
|
56
|
-
|
(156
|
)
|
-
|
-
|
(100
|
)
|
||||||||||||||||
Core earnings (post-tax)
|
$
|
2,176
|
$
|
1,179
|
$
|
1,936
|
$
|
1,406
|
$
|
(161
|
)
|
$
|
6,536
|
|||||||||||
Income tax on core earnings (see above)
|
322
|
413
|
418
|
234
|
(27
|
)
|
1,360
|
|||||||||||||||||
Core earnings (pre-tax)
|
$
|
2,498
|
$
|
1,592
|
$
|
2,354
|
$
|
1,640
|
$
|
(188
|
)
|
$
|
7,896
|
(1) |
These items are disclosed under OSFI’s Source of Earnings Disclosure (Life Insurance Companies) guideline.
|
2021
|
||||||||||||||||||||||||
(Canadian $ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise
stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
||||||||||||||||||
Core earnings (post-tax)
|
$
|
2,176
|
$
|
1,179
|
$
|
1,936
|
$
|
1,406
|
$
|
(161
|
)
|
$
|
6,536
|
|||||||||||
CER adjustment(1)
|
(38
|
)
|
-
|
35
|
16
|
-
|
13
|
|||||||||||||||||
Core earnings, CER basis (post-tax)
|
$
|
2,138
|
$
|
1,179
|
$
|
1,971
|
$
|
1,422
|
$
|
(161
|
)
|
$
|
6,549
|
|||||||||||
Income tax on core earnings, CER basis(2)
|
319
|
413
|
426
|
234
|
(27
|
)
|
1,365
|
|||||||||||||||||
Core earnings, CER basis (pre-tax)
|
$
|
2,457
|
$
|
1,592
|
$
|
2,397
|
$
|
1,656
|
$
|
(188
|
)
|
$
|
7,914
|
|||||||||||
Core earnings (U.S. dollars) - Asia and U.S.
segments
|
||||||||||||||||||||||||
Core earnings (post-tax)(3), US $
|
$
|
1,736
|
$
|
1,544
|
||||||||||||||||||||
CER adjustment US $(1)
|
(62
|
)
|
-
|
|||||||||||||||||||||
Core earnings, CER basis (post-tax), US $
|
$
|
1,674
|
$
|
1,544
|
(1) |
The impact of updating foreign exchange rates to that which was used in 2Q22.
|
(2) |
Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 2Q22.
|
(3) |
Core earnings (post-tax) in Canadian $ is translated to US $ using the US $ Statement of Income exchange rates for the four respective quarters that make up 2021 core earnings.
|
Quarterly Results
|
YTD Results
|
Full Year
Results
|
||||||||||||||||||||||||||||||
(US $ millions)
|
2Q22
|
1Q22
|
4Q21
|
3Q21
|
2Q21
|
2022
|
2021
|
2021
|
||||||||||||||||||||||||
Hong Kong
|
$
|
216
|
$
|
219
|
$
|
270
|
$
|
248
|
$
|
214
|
$
|
435
|
$
|
431
|
$
|
949
|
||||||||||||||||
Japan
|
84
|
77
|
77
|
86
|
78
|
161
|
160
|
323
|
||||||||||||||||||||||||
Asia Other(1)
|
132
|
156
|
132
|
125
|
169
|
288
|
362
|
619
|
||||||||||||||||||||||||
Mainland China
|
96
|
|||||||||||||||||||||||||||||||
Singapore
|
162
|
|||||||||||||||||||||||||||||||
Vietnam
|
290
|
|||||||||||||||||||||||||||||||
Other Emerging Markets(2)
|
71
|
|||||||||||||||||||||||||||||||
Regional Office
|
(31
|
)
|
(28
|
)
|
(44
|
)
|
(35
|
)
|
(34
|
)
|
(59
|
)
|
(76
|
)
|
(155
|
)
|
||||||||||||||||
Total Asia core earnings
|
$
|
401
|
$
|
424
|
$
|
435
|
$
|
424
|
$
|
427
|
$
|
825
|
$
|
877
|
$
|
1,736
|
(1) |
Core earnings for Asia Other is reported by country annually, on a full year basis.
|
(2) |
Other Emerging Markets includes Indonesia, the Philippines, Malaysia, Thailand, Cambodia and Myanmar.
|
Quarterly Results
|
YTD Results
|
Full Year
Results
|
||||||||||||||||||||||||||||||
(US $ millions), CER basis(1)
|
2Q22
|
1Q22
|
4Q21
|
3Q21
|
2Q21
|
2022
|
2021
|
2021
|
||||||||||||||||||||||||
Hong Kong
|
$
|
216
|
$
|
219
|
$
|
270
|
$
|
248
|
$
|
214
|
$
|
435
|
$
|
431
|
$
|
949
|
||||||||||||||||
Japan
|
84
|
68
|
68
|
72
|
66
|
152
|
133
|
273
|
||||||||||||||||||||||||
Asia Other(2)
|
132
|
153
|
128
|
123
|
166
|
285
|
356
|
607
|
||||||||||||||||||||||||
Mainland China
|
94
|
|||||||||||||||||||||||||||||||
Singapore
|
159
|
|||||||||||||||||||||||||||||||
Vietnam
|
287
|
|||||||||||||||||||||||||||||||
Other Emerging Markets(3)
|
67
|
|||||||||||||||||||||||||||||||
Regional Office
|
(31
|
)
|
(28
|
)
|
(44
|
)
|
(35
|
)
|
(33
|
)
|
(59
|
)
|
(76
|
)
|
(155
|
)
|
||||||||||||||||
Total Asia core earnings,
CER basis
|
$
|
401
|
$
|
412
|
$
|
422
|
$
|
408
|
$
|
413
|
$
|
813
|
$
|
844
|
$
|
1,674
|
(1) |
Core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 2Q22.
|
(2) |
Core earnings for Asia Other is reported by country annually, on a full year basis.
|
(3) |
Other Emerging Markets includes Indonesia, the Philippines, Malaysia, Thailand, Cambodia and Myanmar.
|
Quarterly Results
|
YTD Results
|
Full Year
Results
|
||||||||||||||||||||||||||||||
(Canadian $ millions)
|
2Q22
|
1Q22
|
4Q21
|
3Q21
|
2Q21
|
2022
|
2021
|
2021
|
||||||||||||||||||||||||
Insurance
|
$
|
233
|
$
|
206
|
$
|
184
|
$
|
211
|
$
|
210
|
$
|
439
|
$
|
375
|
$
|
770
|
||||||||||||||||
Annuities
|
68
|
70
|
62
|
56
|
64
|
138
|
116
|
234
|
||||||||||||||||||||||||
Manulife Bank
|
44
|
38
|
40
|
44
|
44
|
82
|
91
|
175
|
||||||||||||||||||||||||
Total Canada core
earnings
|
$
|
345
|
$
|
314
|
$
|
286
|
$
|
311
|
$
|
318
|
$
|
659
|
$
|
582
|
$
|
1,179
|
Quarterly Results
|
YTD Results
|
Full Year
Results
|
||||||||||||||||||||||||||||||
(US $ millions)
|
2Q22
|
1Q22
|
4Q21
|
3Q21
|
2Q21
|
2022
|
2021
|
2021
|
||||||||||||||||||||||||
U.S. Insurance
|
$
|
316
|
$
|
328
|
$
|
274
|
$
|
279
|
$
|
298
|
$
|
644
|
$
|
575
|
$
|
1,128
|
||||||||||||||||
U.S. Annuities
|
41
|
56
|
96
|
110
|
91
|
97
|
210
|
416
|
||||||||||||||||||||||||
Total U.S. core earnings
|
$
|
357
|
$
|
384
|
$
|
370
|
$
|
389
|
$
|
389
|
$
|
741
|
$
|
785
|
$
|
1,544
|
Quarterly Results
|
YTD Results
|
Full Year
Results
|
||||||||||||||||||||||||||||||
(Canadian $ millions)
|
2Q22
|
1Q22
|
4Q21
|
3Q21
|
2Q21
|
2022
|
2021
|
2021
|
||||||||||||||||||||||||
Retirement
|
$
|
165
|
$
|
177
|
$
|
218
|
$
|
206
|
$
|
206
|
$
|
342
|
$
|
395
|
$
|
819
|
||||||||||||||||
Retail
|
126
|
141
|
160
|
136
|
137
|
267
|
255
|
551
|
||||||||||||||||||||||||
Institutional asset management
|
14
|
6
|
9
|
9
|
13
|
20
|
18
|
36
|
||||||||||||||||||||||||
Total Global WAM core
earnings
|
$
|
305
|
$
|
324
|
$
|
387
|
$
|
351
|
$
|
356
|
$
|
629
|
$
|
668
|
$
|
1,406
|
Quarterly Results
|
YTD Results
|
Full Year
Results
|
||||||||||||||||||||||||||||||
(Canadian $ millions), CER basis(1)
|
2Q22
|
1Q22
|
4Q21
|
3Q21
|
2Q21
|
2022
|
2021
|
2021
|
||||||||||||||||||||||||
Retirement
|
$
|
165
|
$
|
178
|
$
|
220
|
$
|
208
|
$
|
213
|
$
|
343
|
$
|
403
|
$
|
831
|
||||||||||||||||
Retail
|
126
|
142
|
161
|
137
|
139
|
268
|
258
|
555
|
||||||||||||||||||||||||
Institutional asset management
|
14
|
5
|
10
|
8
|
13
|
19
|
17
|
36
|
||||||||||||||||||||||||
Total Global WAM core
earnings, CER basis
|
$
|
305
|
$
|
325
|
$
|
391
|
$
|
353
|
$
|
365
|
$
|
630
|
$
|
678
|
$
|
1,422
|
(1) |
Core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 2Q22.
|
Quarterly Results
|
YTD Results
|
Full Year
Results
|
||||||||||||||||||||||||||||||
(Canadian $ millions)
|
2Q22
|
1Q22
|
4Q21
|
3Q21
|
2Q21
|
2022
|
2021
|
2021
|
||||||||||||||||||||||||
Asia
|
$
|
76
|
$
|
86
|
$
|
88
|
$
|
103
|
$
|
103
|
$
|
162
|
$
|
206
|
$
|
397
|
||||||||||||||||
Canada
|
109
|
108
|
119
|
106
|
108
|
217
|
204
|
429
|
||||||||||||||||||||||||
U.S.
|
120
|
130
|
180
|
142
|
145
|
250
|
258
|
580
|
||||||||||||||||||||||||
Total Global WAM core
earnings
|
$
|
305
|
$
|
324
|
$
|
387
|
$
|
351
|
$
|
356
|
$
|
629
|
$
|
668
|
$
|
1,406
|
||||||||||||||||
Quarterly Results
|
YTD Results
|
Full Year
Results
|
||||||||||||||||||||||||||||||
(Canadian $ millions), CER basis(1)
|
2Q22
|
1Q22
|
4Q21
|
3Q21
|
2Q21
|
2022
|
2021
|
2021
|
||||||||||||||||||||||||
Asia
|
$
|
76
|
$
|
86
|
$
|
90
|
$
|
103
|
$
|
107
|
$
|
162
|
$
|
210
|
$
|
403
|
||||||||||||||||
Canada
|
109
|
108
|
119
|
106
|
108
|
217
|
204
|
429
|
||||||||||||||||||||||||
U.S.
|
120
|
131
|
182
|
144
|
150
|
251
|
264
|
590
|
||||||||||||||||||||||||
Total Global WAM core
earnings, CER basis
|
$
|
305
|
$
|
325
|
$
|
391
|
$
|
353
|
$
|
365
|
$
|
630
|
$
|
678
|
$
|
1,422
|
(1) |
Core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 2Q22.
|
Quarterly Results
|
YTD Results
|
Full Year
Results
|
||||||||||||||||||||||||||||||
(Canadian $ millions)
|
2Q22
|
1Q22
|
4Q21
|
3Q21
|
2Q21
|
2022
|
2021
|
2021
|
||||||||||||||||||||||||
Corporate and Other excluding core investment gains
|
$
|
(157
|
)
|
$
|
(209
|
)
|
$
|
(79
|
)
|
$
|
(268
|
)
|
$
|
(96
|
)
|
$
|
(366
|
)
|
$
|
(214
|
)
|
$
|
(561
|
)
|
||||||||
Core investment gains
|
100
|
100
|
100
|
100
|
100
|
200
|
200
|
400
|
||||||||||||||||||||||||
Total Corporate and Other
core earnings
|
$
|
(57
|
)
|
$
|
(109
|
)
|
$
|
21
|
$
|
(168
|
)
|
$
|
4
|
$
|
(166
|
)
|
$
|
(14
|
)
|
$
|
(161
|
)
|
Quarterly Results
|
YTD Results
|
Full Year
Results
|
||||||||||||||||||||||||||||||
($ millions, and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)
|
2Q22
|
1Q22
|
4Q21
|
3Q21
|
2Q21
|
2022
|
2021
|
2021
|
||||||||||||||||||||||||
Core earnings
|
$
|
1,562
|
$
|
1,552
|
$
|
1,708
|
$
|
1,517
|
$
|
1,682
|
$
|
3,114
|
$
|
3,311
|
$
|
6,536
|
||||||||||||||||
Less: Preferred share dividends
|
(60
|
)
|
(52
|
)
|
(71
|
)
|
(37
|
)
|
(64
|
)
|
(112
|
)
|
(107
|
)
|
(215
|
)
|
||||||||||||||||
Core earnings available to
common shareholders
|
1,502
|
1,500
|
1,637
|
1,480
|
1,618
|
3,002
|
3,204
|
6,321
|
||||||||||||||||||||||||
CER adjustment(1)
|
-
|
(5
|
)
|
2
|
(5
|
)
|
30
|
(5
|
)
|
16
|
13
|
|||||||||||||||||||||
Core earnings available to
common shareholders,
CER basis
|
$
|
1,502
|
$
|
1,495
|
$
|
1,639
|
$
|
1,475
|
$
|
1,648
|
$
|
2,997
|
$
|
3,220
|
$
|
6,334
|
(1) |
The impact of updating foreign exchange rates to that which was used in 2Q22.
|
Quarterly Results
|
YTD Results
|
Full Year
Results
|
||||||||||||||||||||||||||||||
($ millions, unless otherwise stated)
|
2Q22
|
1Q22
|
4Q21
|
3Q21
|
2Q21
|
2022
|
2021
|
2021
|
||||||||||||||||||||||||
Core earnings available to
common shareholders
|
$
|
1,502
|
$
|
1,500
|
$
|
1,637
|
$
|
1,480
|
$
|
1,618
|
$
|
3,002
|
$
|
3,204
|
$
|
6,321
|
||||||||||||||||
Annualized core earnings
available to common
shareholders
|
$
|
6,022
|
$
|
6,085
|
$
|
6,483
|
$
|
5,874
|
$
|
6,485
|
$
|
6,053
|
$
|
6,460
|
$
|
6,321
|
||||||||||||||||
Average common
shareholders’ equity (see
below)
|
$
|
49,814
|
$
|
51,407
|
$
|
51,049
|
$
|
49,075
|
$
|
46,757
|
$
|
50,611
|
$
|
46,865
|
$
|
48,463
|
||||||||||||||||
Core ROE (annualized) (%)
|
12.1
|
%
|
11.8
|
%
|
12.7
|
%
|
12.0
|
%
|
13.9
|
%
|
12.0
|
%
|
13.8
|
%
|
13.0
|
%
|
||||||||||||||||
Average common shareholders’ equity
|
||||||||||||||||||||||||||||||||
Total shareholders' and other
equity
|
$
|
55,500
|
$
|
56,457
|
$
|
58,408
|
$
|
55,457
|
$
|
53,466
|
$
|
55,500
|
$
|
53,466
|
$
|
58,408
|
||||||||||||||||
Less: Preferred shares and
other equity
|
(6,660
|
)
|
(5,670
|
)
|
(6,381
|
)
|
(5,387
|
)
|
(5,387
|
)
|
(6,660
|
)
|
(5,387
|
)
|
(6,381
|
)
|
||||||||||||||||
Common shareholders'
equity
|
$
|
48,840
|
$
|
50,787
|
$
|
52,027
|
$
|
50,070
|
$
|
48,079
|
$
|
48,840
|
$
|
48,079
|
$
|
52,027
|
||||||||||||||||
Average common
shareholders’ equity
|
$
|
49,814
|
$
|
51,407
|
$
|
51,049
|
$
|
49,075
|
$
|
46,757
|
$
|
50,611
|
$
|
46,865
|
$
|
48,463
|
Quarterly Results
|
YTD Results
|
Full Year
Results
|
||||||||||||||||||||||||||||||
($ millions, and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)
|
2Q22
|
1Q22
|
4Q21
|
3Q21
|
2Q21
|
2022
|
2021
|
2021
|
||||||||||||||||||||||||
Core EPS
|
||||||||||||||||||||||||||||||||
Core earnings available to
common shareholders
|
$
|
1,502
|
$
|
1,500
|
$
|
1,637
|
$
|
1,480
|
$
|
1,618
|
$
|
3,002
|
$
|
3,204
|
$
|
6,321
|
||||||||||||||||
Diluted weighted average
common shares
outstanding (millions)
|
1,924
|
1,942
|
1,946
|
1,946
|
1,946
|
1,933
|
1,946
|
1,946
|
||||||||||||||||||||||||
Core earnings per share
|
$
|
0.78
|
$
|
0.77
|
$
|
0.84
|
$
|
0.76
|
$
|
0.83
|
$
|
1.55
|
$
|
1.65
|
$
|
3.25
|
||||||||||||||||
Core EPS, CER basis
|
||||||||||||||||||||||||||||||||
Core earnings available to
common shareholders,
CER basis
|
$
|
1,502
|
$
|
1,495
|
$
|
1,639
|
$
|
1,475
|
$
|
1,648
|
$
|
2,997
|
$
|
3,220
|
$
|
6,334
|
||||||||||||||||
Diluted weighted average
common shares
outstanding (millions)
|
1,924
|
1,942
|
1,946
|
1,946
|
1,946
|
1,933
|
1,946
|
1,946
|
||||||||||||||||||||||||
Core earnings per share,
CER basis
|
$
|
0.78
|
$
|
0.77
|
$
|
0.84
|
$
|
0.76
|
$
|
0.85
|
$
|
1.55
|
$
|
1.65
|
$
|
3.25
|
For the six months ended June 30,
|
||||||||
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period)
|
2022
|
2021
|
||||||
Core earnings highest potential businesses(1)
|
$
|
1,909
|
$
|
2,021
|
||||
Core earnings - All other businesses excl. core investment gains
|
1,105
|
1,190
|
||||||
Core investment gains
|
100
|
100
|
||||||
Core earnings
|
3,114
|
3,311
|
||||||
Items excluded from core earnings
|
942
|
118
|
||||||
Net income (loss) attributed to shareholders
|
$
|
4,056
|
$
|
3,429
|
||||
Highest Potential Businesses core earnings contribution
|
61
|
%
|
61
|
%
|
(1) |
Includes core earnings from Asia and Global WAM segments, Canada group benefits, and behavioural insurance products.
|
Quarterly Results
|
YTD Results
|
Full Year
Results
|
||||||||||||||||||||||||||||||
2Q22
|
1Q22
|
4Q21
|
3Q21
|
2Q21
|
2022
|
2021
|
2021
|
|||||||||||||||||||||||||
Net income (loss) attributed to
shareholders:
|
||||||||||||||||||||||||||||||||
Asia
|
$
|
361
|
$
|
773
|
$
|
645
|
$
|
822
|
$
|
633
|
$
|
1,134
|
$
|
1,590
|
$
|
3,057
|
||||||||||||||||
Canada
|
85
|
547
|
616
|
(26
|
)
|
783
|
632
|
764
|
1,354
|
|||||||||||||||||||||||
U.S.
|
832
|
2,067
|
494
|
697
|
793
|
2,899
|
889
|
2,080
|
||||||||||||||||||||||||
Global WAM
|
305
|
324
|
387
|
351
|
356
|
629
|
668
|
1,406
|
||||||||||||||||||||||||
Corporate and Other
|
(497
|
)
|
(741
|
)
|
(58
|
)
|
(252
|
)
|
81
|
(1,238
|
)
|
(482
|
)
|
(792
|
)
|
|||||||||||||||||
Total net income (loss)
attributed to shareholders
|
1,086
|
2,970
|
2,084
|
1,592
|
2,646
|
4,056
|
3,429
|
7,105
|
||||||||||||||||||||||||
Preferred share dividends and other
equity distributions
|
(60
|
)
|
(52
|
)
|
(71
|
)
|
(37
|
)
|
(64
|
)
|
(112
|
)
|
(107
|
)
|
(215
|
)
|
||||||||||||||||
Common shareholders net
income (loss)
|
$
|
1,026
|
$
|
2,918
|
$
|
2,013
|
$
|
1,555
|
$
|
2,582
|
$
|
3,944
|
$
|
3,322
|
$
|
6,890
|
||||||||||||||||
CER adjustment(1)
|
||||||||||||||||||||||||||||||||
Asia
|
$
|
-
|
$
|
25
|
$
|
18
|
$
|
(5
|
)
|
$
|
(12
|
)
|
$
|
25
|
$
|
38
|
$
|
51
|
||||||||||||||
Canada
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
U.S.
|
-
|
14
|
8
|
12
|
34
|
14
|
41
|
61
|
||||||||||||||||||||||||
Global WAM
|
-
|
-
|
4
|
-
|
8
|
-
|
9
|
13
|
||||||||||||||||||||||||
Corporate and Other
|
-
|
(2
|
)
|
(1
|
)
|
(3
|
)
|
3
|
(2
|
)
|
8
|
4
|
||||||||||||||||||||
Total net income (loss) attributed to
shareholders
|
-
|
37
|
29
|
4
|
33
|
37
|
96
|
129
|
||||||||||||||||||||||||
Preferred share dividends and other
equity distributions
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Common shareholders net
income (loss)
|
$
|
-
|
$
|
37
|
$
|
29
|
$
|
4
|
$
|
33
|
$
|
37
|
$
|
96
|
$
|
129
|
||||||||||||||||
Net income (loss) attributed to
shareholders, CER basis
|
||||||||||||||||||||||||||||||||
Asia
|
$
|
361
|
$
|
798
|
$
|
663
|
$
|
817
|
$
|
621
|
$
|
1,159
|
$
|
1,628
|
$
|
3,108
|
||||||||||||||||
Canada
|
85
|
547
|
616
|
(26
|
)
|
783
|
632
|
764
|
1,354
|
|||||||||||||||||||||||
U.S.
|
832
|
2,081
|
502
|
709
|
827
|
2,913
|
930
|
2,141
|
||||||||||||||||||||||||
Global WAM
|
305
|
324
|
391
|
351
|
364
|
629
|
677
|
1,419
|
||||||||||||||||||||||||
Corporate and Other
|
(497
|
)
|
(743
|
)
|
(59
|
)
|
(255
|
)
|
84
|
(1,240
|
)
|
(474
|
)
|
(788
|
)
|
|||||||||||||||||
Total net income (loss) attributed to
shareholders, CER basis
|
1,086
|
3,007
|
2,113
|
1,596
|
2,679
|
4,093
|
3,525
|
7,234
|
||||||||||||||||||||||||
Preferred share dividends and other
equity distributions, CER basis
|
(60
|
)
|
(52
|
)
|
(71
|
)
|
(37
|
)
|
(64
|
)
|
(112
|
)
|
(107
|
)
|
(215
|
)
|
||||||||||||||||
Common shareholders net
income (loss), CER basis
|
$
|
1,026
|
$
|
2,955
|
$
|
2,042
|
$
|
1,559
|
$
|
2,615
|
$
|
3,981
|
$
|
3,418
|
$
|
7,019
|
||||||||||||||||
Asia net income attributed to
shareholders, U.S. dollars
|
||||||||||||||||||||||||||||||||
Asia net income (loss) attributed to
shareholders, US $(2)
|
$
|
283
|
$
|
610
|
$
|
513
|
$
|
654
|
$
|
515
|
$
|
893
|
$
|
1,270
|
$
|
2,437
|
||||||||||||||||
CER adjustment, US $(1)
|
-
|
16
|
6
|
(15
|
)
|
(28
|
)
|
16
|
5
|
(4
|
)
|
|||||||||||||||||||||
Asia net income (loss)
attributed to shareholders,
U.S. $, CER basis(1)
|
$
|
283
|
$
|
626
|
$
|
519
|
$
|
639
|
$
|
487
|
$
|
909
|
$
|
1,275
|
$
|
2,433
|
||||||||||||||||
Net income (loss) attributed to
shareholders (pre-tax)
|
||||||||||||||||||||||||||||||||
Net income (loss) attributed to
shareholders (post-tax)
|
$
|
1,086
|
$
|
2,970
|
$
|
2,084
|
$
|
1,592
|
$
|
2,646
|
$
|
4,056
|
$
|
3,429
|
$
|
7,105
|
||||||||||||||||
Tax on net income attributed to
shareholders
|
188
|
778
|
440
|
171
|
605
|
966
|
574
|
1,185
|
||||||||||||||||||||||||
Net income (loss) attributed to
shareholders (pre-tax)
|
1,274
|
3,748
|
2,524
|
1,763
|
3,251
|
5,022
|
4,003
|
8,290
|
||||||||||||||||||||||||
CER adjustment(1)
|
-
|
17
|
(2
|
)
|
3
|
46
|
17
|
(41
|
)
|
(40
|
)
|
|||||||||||||||||||||
Net income (loss) attributed to
shareholders (pre-tax), CER basis
|
$
|
1,274
|
$
|
3,765
|
$
|
2,522
|
$
|
1,766
|
$
|
3,297
|
$
|
5,039
|
$
|
3,962
|
$
|
8,250
|
(1) |
The impact of updating foreign exchange rates to that which was used in 2Q22.
|
(2) |
Asia net income attributed to shareholders (post-tax) in Canadian dollars is translated to U.S. dollars using the U.S. dollar Statement of Income rate for the reporting period.
|
Quarterly Results
|
YTD Results
|
Full Year
Results
|
||||||||||||||||||||||||||||||
2Q22
|
1Q22
|
4Q21
|
3Q21
|
2Q21
|
2022
|
2021
|
2021
|
|||||||||||||||||||||||||
Common shareholders net
income, CER basis(1)
|
$
|
1,026
|
$
|
2,955
|
$
|
2,042
|
$
|
1,559
|
$
|
2,615
|
$
|
3,981
|
$
|
3,418
|
$
|
7,019
|
||||||||||||||||
Weighted average common shares
outstanding (millions) |
1,921
|
1,938
|
1,943
|
1,942
|
1,942
|
1,929
|
1,942
|
1,942
|
||||||||||||||||||||||||
Basic EPS, CER basis
|
$
|
0.53
|
$
|
1.52
|
$
|
1.05
|
$
|
0.80
|
$
|
1.35
|
$
|
2.06
|
$
|
1.76
|
$
|
3.61
|
||||||||||||||||
Common shareholders net income,
CER basis(1)
|
$
|
1,026
|
$
|
2,955
|
$
|
2,042
|
$
|
1,559
|
$
|
2,615
|
$
|
3,981
|
$
|
3,418
|
$
|
7,019
|
||||||||||||||||
Diluted weighted average common
shares outstanding (millions)
|
1,924
|
1,942
|
1,946
|
1,946
|
1,946
|
1,933
|
1,946
|
1,946
|
||||||||||||||||||||||||
Diluted EPS, CER basis
|
$
|
0.53
|
$
|
1.52
|
$
|
1.05
|
$
|
0.80
|
$
|
1.34
|
$
|
2.06
|
$
|
1.76
|
$
|
3.61
|
(1) |
Common shareholders net income adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 2Q22.
|
Quarterly Results
|
YTD Results
|
Full Year
Results
|
||||||||||||||||||||||||||||||
2Q22
|
1Q22
|
4Q21
|
3Q21
|
2Q21
|
2022
|
2021
|
2021
|
|||||||||||||||||||||||||
General expenses
|
$
|
1,843
|
$
|
1,898
|
$
|
2,000
|
$
|
1,904
|
$
|
1,892
|
$
|
3,741
|
$
|
3,924
|
$
|
7,828
|
||||||||||||||||
CER adjustment(1)
|
-
|
(11
|
)
|
(6
|
)
|
(10
|
)
|
21
|
(11
|
)
|
(9
|
)
|
(25
|
)
|
||||||||||||||||||
General expenses, CER basis
|
$
|
1,843
|
$
|
1,887
|
$
|
1,994
|
$
|
1,894
|
$
|
1,913
|
$
|
3,730
|
$
|
3,915
|
$
|
7,803
|
(1) |
The impact of updating foreign exchange rates to that which was used in 2Q22.
|
Quarterly Results
|
YTD Results
|
Full Year
Results
|
||||||||||||||||||||||||||||||
2Q22
|
1Q22
|
4Q21
|
3Q21
|
2Q21
|
2022
|
2021
|
2021
|
|||||||||||||||||||||||||
Total revenue
|
$
|
(2,401
|
)
|
$
|
(3,630
|
)
|
$
|
21,611
|
$
|
15,983
|
$
|
25,824
|
$
|
(6,031
|
)
|
$
|
24,227
|
$
|
61,821
|
|||||||||||||
Less: Revenue for segments other
than Global WAM
|
(3,922
|
)
|
(5,216
|
)
|
19,884
|
14,303
|
24,217
|
(9,138
|
)
|
21,093
|
55,280
|
|||||||||||||||||||||
Global WAM revenue
|
1,521
|
1,586
|
1,727
|
1,680
|
1,607
|
3,107
|
3,134
|
6,541
|
||||||||||||||||||||||||
CER adjustment(1)
|
-
|
4
|
10
|
7
|
36
|
4
|
36
|
53
|
||||||||||||||||||||||||
Global WAM revenue, CER basis
|
$
|
1,521
|
$
|
1,590
|
$
|
1,737
|
$
|
1,687
|
$
|
1,643
|
$
|
3,111
|
$
|
3,170
|
$
|
6,594
|
(1) |
The impact of updating foreign exchange rates to that which was used in 2Q22.
|
Quarterly Results
|
YTD Results
|
Full Year
Results
|
||||||||||||||||||||||||||||||
2Q22
|
1Q22
|
4Q21
|
3Q21
|
2Q21
|
2022
|
2021
|
2021
|
|||||||||||||||||||||||||
Per share dividend
|
$
|
0.33
|
$
|
0.33
|
$
|
0.33
|
$
|
0.28
|
$
|
0.28
|
$
|
0.66
|
$
|
0.56
|
$
|
1.17
|
||||||||||||||||
Core EPS
|
$
|
0.78
|
$
|
0.77
|
$
|
0.84
|
$
|
0.76
|
$
|
0.83
|
$
|
1.55
|
$
|
1.65
|
$
|
3.25
|
||||||||||||||||
Common share core dividend
payout ratio
|
42
|
%
|
43
|
%
|
39
|
%
|
37
|
%
|
34
|
%
|
43
|
%
|
34
|
%
|
36
|
%
|
CAD $
|
US $(4)
|
|||||||||||||||||||||||||||||||
June 30, 2022
|
June 30, 2022
|
|||||||||||||||||||||||||||||||
As at
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
Asia
|
U.S.
|
||||||||||||||||||||||||
Total Invested Assets
|
||||||||||||||||||||||||||||||||
Manulife Bank net lending assets
|
$
|
-
|
$
|
24,500
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
24,500
|
$
|
-
|
$
|
-
|
||||||||||||||||
Derivative reclassification(1)
|
-
|
-
|
-
|
-
|
5,233
|
5,233
|
-
|
-
|
||||||||||||||||||||||||
Invested assets excluding above
items
|
117,128
|
82,755
|
149,506
|
3,967
|
19,240
|
372,596
|
90,822
|
115,901
|
||||||||||||||||||||||||
Total
|
117,128
|
107,255
|
149,506
|
3,967
|
24,473
|
402,329
|
90,822
|
115,901
|
||||||||||||||||||||||||
Segregated funds net assets
|
||||||||||||||||||||||||||||||||
Segregated funds net assets -
Institutional
|
-
|
-
|
-
|
4,098
|
-
|
4,098
|
-
|
-
|
||||||||||||||||||||||||
Segregated funds net assets -
Other(2)
|
21,874
|
35,577
|
64,200
|
209,181
|
(27
|
)
|
330,805
|
16,953
|
49,770
|
|||||||||||||||||||||||
Total
|
21,874
|
35,577
|
64,200
|
213,279
|
(27
|
)
|
334,903
|
16,953
|
49,770
|
|||||||||||||||||||||||
AUM per financial statements
|
139,002
|
142,832
|
213,706
|
217,246
|
24,446
|
737,232
|
107,775
|
165,671
|
||||||||||||||||||||||||
Mutual funds
|
-
|
-
|
-
|
250,445
|
-
|
250,445
|
-
|
-
|
||||||||||||||||||||||||
Institutional asset management(3)
|
-
|
-
|
-
|
100,205
|
-
|
100,205
|
-
|
-
|
||||||||||||||||||||||||
Other funds
|
-
|
-
|
-
|
12,110
|
-
|
12,110
|
-
|
-
|
||||||||||||||||||||||||
Total AUM
|
139,002
|
142,832
|
213,706
|
580,006
|
24,446
|
1,099,992
|
107,775
|
165,671
|
||||||||||||||||||||||||
Assets under administration
|
-
|
-
|
-
|
164,697
|
-
|
164,697
|
-
|
-
|
||||||||||||||||||||||||
Total AUMA
|
$
|
139,002
|
$
|
142,832
|
$
|
213,706
|
$
|
744,703
|
$
|
24,446
|
$
|
1,264,689
|
$
|
107,775
|
$
|
165,671
|
||||||||||||||||
Total AUMA, US $(4)
|
$
|
980,379
|
||||||||||||||||||||||||||||||
Total AUMA
|
$
|
139,002
|
$
|
142,832
|
$
|
213,706
|
$
|
744,703
|
$
|
24,446
|
$
|
1,264,689
|
||||||||||||||||||||
CER adjustment(5)
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||
Total AUMA, CER basis
|
$
|
139,002
|
$
|
142,832
|
$
|
213,706
|
$
|
744,703
|
$
|
24,446
|
$
|
1,264,689
|
||||||||||||||||||||
Global WAM Managed AUMA
|
||||||||||||||||||||||||||||||||
Global WAM AUMA
|
$
|
744,703
|
||||||||||||||||||||||||||||||
AUM managed by Global WAM for
Manulife's other segments
|
220,103
|
|||||||||||||||||||||||||||||||
Total
|
$
|
964,806
|
(1) |
Corporate and Other consolidation adjustment related to net derivative assets reclassified from total invested assets to other lines on the Statement of Financial Position.
|
(2) |
Corporate and Other segregated funds net asset represents elimination of amounts held by the Company.
|
(3) |
Institutional asset management excludes Institutional segregated funds net assets.
|
(4) |
US $ AUMA is calculated as total AUMA in Canadian $ divided by the US $ exchange rate in effect at the end of the quarter.
|
(5) |
The impact of updating foreign exchange rates to that which was used in 2Q22.
|
CAD $
|
US $(4)
|
|||||||||||||||||||||||||||||||
March 31, 2022
|
March 31, 2022
|
|||||||||||||||||||||||||||||||
As at
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
Asia
|
U.S.
|
||||||||||||||||||||||||
Total Invested Assets
|
||||||||||||||||||||||||||||||||
Manulife Bank net lending assets
|
$
|
-
|
$
|
24,004
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
24,004
|
$
|
-
|
$
|
-
|
||||||||||||||||
Derivative reclassification(1)
|
-
|
-
|
-
|
-
|
(270
|
)
|
(270
|
)
|
-
|
-
|
||||||||||||||||||||||
Invested assets excluding above items
|
120,529
|
88,736
|
150,989
|
3,468
|
21,945
|
385,667
|
96,463
|
120,830
|
||||||||||||||||||||||||
Total
|
120,529
|
112,740
|
150,989
|
3,468
|
21,675
|
409,401
|
96,463
|
120,830
|
||||||||||||||||||||||||
Segregated funds net assets
|
||||||||||||||||||||||||||||||||
Segregated funds net assets -
Institutional
|
-
|
-
|
-
|
4,338
|
-
|
4,338
|
-
|
-
|
||||||||||||||||||||||||
Segregated funds net
assets - Other(2)
|
23,868
|
39,649
|
71,823
|
232,276
|
(26
|
)
|
367,590
|
19,108
|
57,476
|
|||||||||||||||||||||||
Total
|
23,868
|
39,649
|
71,823
|
236,614
|
(26
|
)
|
371,928
|
19,108
|
57,476
|
|||||||||||||||||||||||
AUM per financial
statements
|
144,397
|
152,389
|
222,812
|
240,082
|
21,649
|
781,329
|
115,571
|
178,306
|
||||||||||||||||||||||||
Mutual funds
|
-
|
-
|
-
|
274,665
|
-
|
274,665
|
-
|
-
|
||||||||||||||||||||||||
Institutional asset
management(3)
|
-
|
-
|
-
|
101,105
|
-
|
101,105
|
-
|
-
|
||||||||||||||||||||||||
Other funds
|
-
|
-
|
-
|
13,269
|
-
|
13,269
|
-
|
-
|
||||||||||||||||||||||||
Total AUM
|
144,397
|
152,389
|
222,812
|
629,121
|
21,649
|
1,170,368
|
115,571
|
178,306
|
||||||||||||||||||||||||
Assets under
administration
|
-
|
-
|
-
|
178,843
|
-
|
178,843
|
-
|
-
|
||||||||||||||||||||||||
Total AUMA
|
$
|
144,397
|
$
|
152,389
|
$
|
222,812
|
$
|
807,964
|
$
|
21,649
|
$
|
1,349,211
|
$
|
115,571
|
$
|
178,306
|
||||||||||||||||
Total AUMA, US $(4)
|
$
|
1,079,714
|
||||||||||||||||||||||||||||||
Total AUMA
|
$
|
144,397
|
$
|
152,389
|
$
|
222,812
|
$
|
807,964
|
$
|
21,649
|
$
|
1,349,211
|
||||||||||||||||||||
CER adjustment(5)
|
(255
|
)
|
-
|
7,157
|
15,962
|
-
|
22,864
|
|||||||||||||||||||||||||
Total AUMA, CER basis
|
$
|
144,142
|
$
|
152,389
|
$
|
229,969
|
$
|
823,926
|
$
|
21,649
|
$
|
1,372,075
|
||||||||||||||||||||
Global WAM Managed
AUMA
|
||||||||||||||||||||||||||||||||
Global WAM AUMA
|
$
|
807,964
|
||||||||||||||||||||||||||||||
AUM managed by Global WAM for Manulife's other segments
|
231,373
|
|||||||||||||||||||||||||||||||
Total
|
$
|
1,039,337
|
CAD $
|
US $(4)
|
|||||||||||||||||||||||||||||||
December 31, 2021
|
December 31, 2021
|
|||||||||||||||||||||||||||||||
As at
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
Asia
|
U.S.
|
||||||||||||||||||||||||
Total Invested Assets
|
||||||||||||||||||||||||||||||||
Manulife Bank net lending
assets
|
$
|
-
|
$
|
23,447
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
23,447
|
$
|
-
|
$
|
-
|
||||||||||||||||
Derivative
reclassification(1)
|
-
|
-
|
-
|
-
|
(7,475
|
)
|
(7,475
|
)
|
-
|
-
|
||||||||||||||||||||||
Invested assets excluding
above items
|
129,207
|
96,425
|
164,830
|
4,458
|
16,206
|
411,126
|
101,893
|
130,013
|
||||||||||||||||||||||||
Total
|
129,207
|
119,872
|
164,830
|
4,458
|
8,731
|
427,098
|
101,893
|
130,013
|
||||||||||||||||||||||||
Segregated funds net assets
|
||||||||||||||||||||||||||||||||
Segregated funds net
assets - Institutional
|
-
|
-
|
-
|
4,470
|
-
|
4,470
|
-
|
-
|
||||||||||||||||||||||||
Segregated funds net
assets - Other(2)
|
25,505
|
42,124
|
79,620
|
248,097
|
(28
|
)
|
395,318
|
20,112
|
62,801
|
|||||||||||||||||||||||
Total
|
25,505
|
42,124
|
79,620
|
252,567
|
(28
|
)
|
399,788
|
20,112
|
62,801
|
|||||||||||||||||||||||
AUM per financial
statements
|
154,712
|
161,996
|
244,450
|
257,025
|
8,703
|
826,886
|
122,005
|
192,814
|
||||||||||||||||||||||||
Mutual funds
|
-
|
-
|
-
|
290,863
|
-
|
290,863
|
-
|
-
|
||||||||||||||||||||||||
Institutional asset
management(3)
|
-
|
-
|
-
|
106,407
|
-
|
106,407
|
-
|
-
|
||||||||||||||||||||||||
Other funds
|
-
|
-
|
-
|
14,001
|
-
|
14,001
|
-
|
-
|
||||||||||||||||||||||||
Total AUM
|
154,712
|
161,996
|
244,450
|
668,296
|
8,703
|
1,238,157
|
122,005
|
192,814
|
||||||||||||||||||||||||
Assets under administration
|
-
|
-
|
-
|
187,631
|
-
|
187,631
|
-
|
-
|
||||||||||||||||||||||||
Total AUMA
|
$
|
154,712
|
$
|
161,996
|
$
|
244,450
|
$
|
855,927
|
$
|
8,703
|
$
|
1,425,788
|
$
|
122,005
|
$
|
192,814
|
||||||||||||||||
Total AUMA, US $(4)
|
$
|
1,124,616
|
||||||||||||||||||||||||||||||
Total AUMA
|
$
|
154,712
|
$
|
161,996
|
$
|
244,450
|
$
|
855,927
|
$
|
8,703
|
$
|
1,425,788
|
||||||||||||||||||||
CER adjustment(5)
|
(4,133
|
)
|
-
|
4,239
|
6,878
|
-
|
6,984
|
|||||||||||||||||||||||||
Total AUMA, CER basis
|
$
|
150,579
|
$
|
161,996
|
$
|
248,689
|
$
|
862,805
|
$
|
8,703
|
$
|
1,432,772
|
||||||||||||||||||||
Global WAM Managed
AUMA
|
||||||||||||||||||||||||||||||||
Global WAM AUMA
|
$
|
855,927
|
||||||||||||||||||||||||||||||
AUM managed by Global WAM for Manulife's other segments
|
246,773
|
|||||||||||||||||||||||||||||||
Total
|
$
|
1,102,700
|
CAD $
|
US $(4)
|
|||||||||||||||||||||||||||||||
September 30, 2021
|
September 30, 2021
|
|||||||||||||||||||||||||||||||
As at
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
Asia
|
U.S.
|
||||||||||||||||||||||||
Total Invested Assets
|
||||||||||||||||||||||||||||||||
Manulife Bank net lending
assets
|
$
|
-
|
$
|
23,139
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
23,139
|
$
|
-
|
$
|
-
|
||||||||||||||||
Derivative
reclassification(1)
|
-
|
-
|
-
|
-
|
(6,226
|
)
|
(6,226
|
)
|
-
|
-
|
||||||||||||||||||||||
Invested assets excluding
above items
|
124,880
|
94,510
|
162,720
|
4,333
|
15,731
|
402,174
|
98,022
|
127,714
|
||||||||||||||||||||||||
Total
|
124,880
|
117,649
|
162,720
|
4,333
|
9,505
|
419,087
|
98,022
|
127,714
|
||||||||||||||||||||||||
Segregated funds net
assets
|
||||||||||||||||||||||||||||||||
Segregated funds net
assets - Institutional
|
-
|
-
|
-
|
4,400
|
-
|
4,400
|
-
|
-
|
||||||||||||||||||||||||
Segregated funds net
assets - Other(2)
|
24,892
|
40,178
|
78,223
|
240,151
|
(45
|
)
|
383,399
|
19,540
|
61,395
|
|||||||||||||||||||||||
Total
|
24,892
|
40,178
|
78,223
|
244,551
|
(45
|
)
|
387,799
|
19,540
|
61,395
|
|||||||||||||||||||||||
AUM per financial
statements
|
149,772
|
157,827
|
240,943
|
248,884
|
9,460
|
806,886
|
117,562
|
189,109
|
||||||||||||||||||||||||
Mutual funds
|
-
|
-
|
-
|
277,421
|
-
|
277,421
|
-
|
-
|
||||||||||||||||||||||||
Institutional asset
management(3)
|
-
|
-
|
-
|
103,732
|
-
|
103,732
|
-
|
-
|
||||||||||||||||||||||||
Other funds
|
-
|
-
|
-
|
12,562
|
-
|
12,562
|
-
|
-
|
||||||||||||||||||||||||
Total AUM
|
149,772
|
157,827
|
240,943
|
642,599
|
9,460
|
1,200,601
|
117,562
|
189,109
|
||||||||||||||||||||||||
Assets under administration
|
-
|
-
|
-
|
181,013
|
-
|
181,013
|
-
|
-
|
||||||||||||||||||||||||
Total AUMA
|
$
|
149,772
|
$
|
157,827
|
$
|
240,943
|
$
|
823,612
|
$
|
9,460
|
$
|
1,381,614
|
$
|
117,562
|
$
|
189,109
|
||||||||||||||||
Total AUMA, US $(4)
|
$
|
1,084,384
|
||||||||||||||||||||||||||||||
Total AUMA
|
$
|
149,772
|
$
|
157,827
|
$
|
240,943
|
$
|
823,612
|
$
|
9,460
|
$
|
1,381,614
|
||||||||||||||||||||
CER adjustment(5)
|
(5,224
|
)
|
-
|
2,970
|
3,490
|
-
|
1,236
|
|||||||||||||||||||||||||
Total AUMA, CER basis
|
$
|
144,548
|
$
|
157,827
|
$
|
243,913
|
$
|
827,102
|
$
|
9,460
|
$
|
1,382,850
|
||||||||||||||||||||
Global WAM Managed
AUMA
|
||||||||||||||||||||||||||||||||
Global WAM AUMA
|
$
|
823,612
|
||||||||||||||||||||||||||||||
AUM managed by Global WAM for Manulife's other segments
|
240,798
|
|||||||||||||||||||||||||||||||
Total
|
$
|
1,064,410
|
CAD $
|
US $(4)
|
|||||||||||||||||||||||||||||||
June 30, 2021
|
June 30, 2021
|
|||||||||||||||||||||||||||||||
As at
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
Asia
|
U.S.
|
||||||||||||||||||||||||
Total Invested Assets
|
||||||||||||||||||||||||||||||||
Manulife Bank net lending
assets
|
$
|
-
|
$
|
22,884
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
22,884
|
$
|
-
|
$
|
-
|
||||||||||||||||
Derivative
reclassification(1)
|
-
|
-
|
-
|
-
|
(6,907
|
)
|
(6,907
|
)
|
-
|
-
|
||||||||||||||||||||||
Invested assets excluding
above items
|
117,808
|
94,950
|
156,171
|
4,211
|
16,092
|
389,232
|
95,089
|
126,005
|
||||||||||||||||||||||||
Total
|
117,808
|
117,834
|
156,171
|
4,211
|
9,185
|
405,209
|
95,089
|
126,005
|
||||||||||||||||||||||||
Segregated funds net
assets
|
||||||||||||||||||||||||||||||||
Segregated funds net
assets - Institutional
|
-
|
-
|
-
|
4,229
|
-
|
4,229
|
-
|
-
|
||||||||||||||||||||||||
Segregated funds net
assets - Other(2)
|
24,117
|
39,666
|
77,488
|
238,389
|
(44
|
)
|
379,616
|
19,466
|
62,521
|
|||||||||||||||||||||||
Total
|
24,117
|
39,666
|
77,488
|
242,618
|
(44
|
)
|
383,845
|
19,466
|
62,521
|
|||||||||||||||||||||||
AUM per financial statements
|
141,925
|
157,500
|
233,659
|
246,829
|
9,141
|
789,054
|
114,555
|
188,526
|
||||||||||||||||||||||||
Mutual funds
|
-
|
-
|
-
|
265,110
|
-
|
265,110
|
-
|
-
|
||||||||||||||||||||||||
Institutional asset
management(3)
|
-
|
-
|
-
|
99,983
|
-
|
99,983
|
-
|
-
|
||||||||||||||||||||||||
Other funds
|
-
|
-
|
-
|
12,232
|
-
|
12,232
|
-
|
-
|
||||||||||||||||||||||||
Total AUM
|
141,925
|
157,500
|
233,659
|
624,154
|
9,141
|
1,166,379
|
114,555
|
188,526
|
||||||||||||||||||||||||
Assets under administration
|
-
|
-
|
-
|
174,376
|
-
|
174,376
|
-
|
-
|
||||||||||||||||||||||||
Total AUMA
|
$
|
141,925
|
$
|
157,500
|
$
|
233,659
|
$
|
798,530
|
$
|
9,141
|
$
|
1,340,755
|
$
|
114,555
|
$
|
188,526
|
||||||||||||||||
Total AUMA, US $(4)
|
$
|
1,081,777
|
||||||||||||||||||||||||||||||
Total AUMA
|
$
|
141,925
|
$
|
157,500
|
$
|
233,659
|
$
|
798,530
|
$
|
9,141
|
$
|
1,340,755
|
||||||||||||||||||||
CER adjustment(5)
|
(1,937
|
)
|
-
|
9,492
|
19,372
|
-
|
26,927
|
|||||||||||||||||||||||||
Total AUMA, CER basis
|
$
|
139,988
|
$
|
157,500
|
$
|
243,151
|
$
|
817,902
|
$
|
9,141
|
$
|
1,367,682
|
||||||||||||||||||||
Global WAM Managed
AUMA
|
||||||||||||||||||||||||||||||||
Global WAM AUMA
|
$
|
798,530
|
||||||||||||||||||||||||||||||
AUM managed by Global WAM for Manulife's other segments
|
235,234
|
|||||||||||||||||||||||||||||||
Total
|
$
|
1,033,764
|
As at
|
Jun 30,
2022
|
Mar 31,
2022
|
Dec 31,
2021
|
Sept 30,
2021
|
Jun 30,
2021
|
|||||||||||||||
Global WAM AUMA by business line
|
||||||||||||||||||||
Retirement
|
$
|
377,674
|
$
|
412,689
|
$
|
440,831
|
$
|
426,742
|
$
|
418,907
|
||||||||||
Retail
|
261,354
|
289,008
|
303,232
|
287,717
|
274,661
|
|||||||||||||||
Institutional asset management
|
105,675
|
106,267
|
111,864
|
109,153
|
104,962
|
|||||||||||||||
Total
|
$
|
744,703
|
$
|
807,964
|
$
|
855,927
|
$
|
823,612
|
$
|
798,530
|
||||||||||
Global WAM AUMA by business line, CER basis(1)
|
||||||||||||||||||||
Retirement
|
$
|
377,674
|
$
|
423,056
|
$
|
446,757
|
$
|
430,794
|
$
|
432,032
|
||||||||||
Retail
|
261,354
|
293,923
|
305,204
|
288,800
|
280,840
|
|||||||||||||||
Institutional asset management
|
105,675
|
106,947
|
110,844
|
107,508
|
105,030
|
|||||||||||||||
Total
|
$
|
744,703
|
$
|
823,926
|
$
|
862,805
|
$
|
827,102
|
$
|
817,902
|
||||||||||
Global WAM AUMA by geographic source
|
||||||||||||||||||||
Asia
|
$
|
96,510
|
$
|
98,608
|
$
|
104,584
|
$
|
100,899
|
$
|
95,510
|
||||||||||
Canada
|
206,073
|
227,252
|
238,798
|
228,347
|
224,693
|
|||||||||||||||
U.S.
|
442,120
|
482,104
|
512,545
|
494,366
|
478,327
|
|||||||||||||||
Total
|
$
|
744,703
|
$
|
807,964
|
$
|
855,927
|
$
|
823,612
|
$
|
798,530
|
||||||||||
Global WAM AUMA by geographic source, CER basis(1)
|
||||||||||||||||||||
Asia
|
$
|
96,510
|
$
|
99,005
|
$
|
102,519
|
$
|
98,246
|
$
|
95,612
|
||||||||||
Canada
|
206,073
|
227,252
|
238,798
|
228,347
|
224,693
|
|||||||||||||||
U.S.
|
442,120
|
497,669
|
521,488
|
500,509
|
497,597
|
|||||||||||||||
Total
|
$
|
744,703
|
$
|
823,926
|
$
|
862,805
|
$
|
827,102
|
$
|
817,902
|
||||||||||
Global WAM Managed AUMA by business line
|
||||||||||||||||||||
Retirement
|
$
|
377,674
|
$
|
412,689
|
$
|
440,831
|
$
|
426,742
|
$
|
418,907
|
||||||||||
Retail
|
335,367
|
370,999
|
391,911
|
373,685
|
359,520
|
|||||||||||||||
Institutional asset management
|
251,765
|
255,649
|
269,958
|
263,983
|
255,337
|
|||||||||||||||
Total
|
$
|
964,806
|
$
|
1,039,337
|
$
|
1,102,700
|
$
|
1,064,410
|
$
|
1,033,764
|
||||||||||
Global WAM Managed AUMA by business line, CER
basis(1)
|
||||||||||||||||||||
Retirement
|
$
|
377,674
|
$
|
423,056
|
$
|
446,757
|
$
|
430,794
|
$
|
432,032
|
||||||||||
Retail
|
335,367
|
377,558
|
394,846
|
375,446
|
367,916
|
|||||||||||||||
Institutional asset management
|
251,765
|
260,468
|
271,319
|
263,997
|
260,603
|
|||||||||||||||
Total
|
$
|
964,806
|
$
|
1,061,082
|
$
|
1,112,922
|
$
|
1,070,237
|
$
|
1,060,551
|
||||||||||
Global WAM Managed AUMA by geographic source
|
||||||||||||||||||||
Asia
|
$
|
190,301
|
$
|
195,346
|
$
|
207,827
|
$
|
200,976
|
$
|
191,704
|
||||||||||
Canada
|
254,400
|
279,700
|
293,902
|
281,523
|
278,309
|
|||||||||||||||
U.S.
|
520,105
|
564,291
|
600,971
|
581,911
|
563,751
|
|||||||||||||||
Total
|
$
|
964,806
|
$
|
1,039,337
|
$
|
1,102,700
|
$
|
1,064,410
|
$
|
1,033,764
|
||||||||||
Global WAM Managed AUMA by geographic source,
CER basis(1)
|
||||||||||||||||||||
Asia
|
$
|
190,301
|
$
|
198,874
|
$
|
207,561
|
$
|
199,570
|
$
|
195,738
|
||||||||||
Canada
|
254,400
|
279,700
|
293,902
|
281,523
|
278,309
|
|||||||||||||||
U.S.
|
520,105
|
582,508
|
611,459
|
589,144
|
586,504
|
|||||||||||||||
Total
|
$
|
964,806
|
$
|
1,061,082
|
$
|
1,112,922
|
$
|
1,070,237
|
$
|
1,060,551
|
(1) |
AUMA adjusted to reflect the foreign exchange rates for the Statement of Financial Position in effect for 2Q22.
|
As at
($ millions)
|
Jun 30,
2022
|
Mar 31,
2022
|
Dec 31,
2021
|
Sept 30,
2021
|
Jun 30,
2021
|
|||||||||||||||
Mortgages
|
$
|
53,422
|
$
|
52,287
|
$
|
52,014
|
$
|
51,001
|
$
|
50,309
|
||||||||||
Less: mortgages not held by Manulife Bank
|
31,704
|
30,950
|
31,073
|
30,202
|
29,643
|
|||||||||||||||
Total mortgages held by Manulife Bank
|
21,718
|
21,337
|
20,941
|
20,799
|
20,666
|
|||||||||||||||
Loans to bank clients
|
2,782
|
2,667
|
2,506
|
2,340
|
2,218
|
|||||||||||||||
Manulife Bank net lending assets
|
$
|
24,500
|
$
|
24,004
|
$
|
23,447
|
$
|
23,139
|
$
|
22,884
|
||||||||||
Manulife Bank average net lending assets
|
||||||||||||||||||||
Beginning of period
|
$
|
24,004
|
$
|
23,447
|
$
|
23,139
|
$
|
22,884
|
$
|
22,770
|
||||||||||
End of period
|
24,500
|
24,004
|
23,447
|
23,139
|
22,884
|
|||||||||||||||
Manulife Bank average net lending assets by quarter
|
$
|
24,252
|
$
|
23,726
|
$
|
23,293
|
$
|
23,012
|
$
|
22,827
|
||||||||||
Manulife Bank average net lending assets – Year-to-date
|
$
|
23,974
|
$
|
22,824
|
||||||||||||||||
Manulife Bank average net lending assets – full year
|
$
|
23,105
|
As at
|
Jun 30,
|
Mar 31,
|
Dec 31,
|
Sep 30,
|
Jun 30,
|
|||||||||||||||
($ millions)
|
2022
|
2022
|
2021
|
2021
|
2021
|
|||||||||||||||
Total equity
|
$
|
55,798
|
$
|
56,849
|
$
|
58,869
|
$
|
55,951
|
$
|
54,254
|
||||||||||
Exclude AOCI gain/(loss) on cash flow hedges
|
(48
|
)
|
(70
|
)
|
(156
|
)
|
(159
|
)
|
(166
|
)
|
||||||||||
Total equity excluding AOCI on cash flow hedges
|
55,846
|
56,919
|
59,025
|
56,110
|
54,420
|
|||||||||||||||
Qualifying capital instruments
|
7,001
|
6,950
|
6,980
|
6,986
|
6,936
|
|||||||||||||||
Consolidated capital
|
$
|
62,847
|
$
|
63,869
|
$
|
66,005
|
$
|
63,096
|
$
|
61,356
|
Quarterly Results
|
YTD Results
|
Full Year
Results
|
||||||||||||||||||||||||||||||
2Q22
|
1Q22
|
4Q21
|
3Q21
|
2Q21
|
2022
|
2021
|
2021
|
|||||||||||||||||||||||||
Global WAM core earnings
(post-tax)
|
$
|
305
|
$
|
324
|
$
|
387
|
$
|
351
|
$
|
356
|
$
|
629
|
$
|
668
|
$
|
1,406
|
||||||||||||||||
Addback taxes, acquisition
costs, other expenses and
deferred sales commissions
|
||||||||||||||||||||||||||||||||
Core income tax
(expense) recovery
(see above)
|
57
|
61
|
52
|
66
|
64
|
118
|
116
|
234
|
||||||||||||||||||||||||
Acquisition costs, other
expenses
|
80
|
81
|
79
|
86
|
79
|
161
|
158
|
323
|
||||||||||||||||||||||||
Deferred sales
commissions
|
25
|
24
|
25
|
26
|
22
|
49
|
48
|
99
|
||||||||||||||||||||||||
Core EBITDA
|
$
|
467
|
$
|
490
|
$
|
543
|
$
|
529
|
$
|
521
|
$
|
957
|
$
|
990
|
$
|
2,062
|
||||||||||||||||
CER adjustment(1)
|
-
|
2
|
4
|
4
|
5
|
2
|
1
|
9
|
||||||||||||||||||||||||
Core EBITDA, CER basis
|
$
|
467
|
$
|
492
|
$
|
547
|
$
|
533
|
$
|
526
|
$
|
959
|
$
|
991
|
$
|
2,071
|
||||||||||||||||
Core EBITDA by business
line
|
||||||||||||||||||||||||||||||||
Retirement
|
$
|
263
|
$
|
277
|
$
|
306
|
$
|
313
|
$
|
305
|
$
|
540
|
$
|
591
|
$
|
1,210
|
||||||||||||||||
Retail
|
179
|
201
|
220
|
199
|
196
|
380
|
371
|
790
|
||||||||||||||||||||||||
Institutional asset
management
|
25
|
12
|
17
|
17
|
20
|
37
|
28
|
62
|
||||||||||||||||||||||||
Total
|
$
|
467
|
$
|
490
|
$
|
543
|
$
|
529
|
$
|
521
|
$
|
957
|
$
|
990
|
$
|
2,062
|
||||||||||||||||
Core EBITDA by
geographic source
|
||||||||||||||||||||||||||||||||
Asia
|
$
|
106
|
$
|
113
|
$
|
115
|
$
|
134
|
$
|
131
|
$
|
219
|
$
|
262
|
$
|
511
|
||||||||||||||||
Canada
|
171
|
171
|
185
|
172
|
169
|
342
|
325
|
682
|
||||||||||||||||||||||||
U.S.
|
190
|
206
|
243
|
223
|
221
|
396
|
403
|
869
|
||||||||||||||||||||||||
Total
|
$
|
467
|
$
|
490
|
$
|
543
|
$
|
529
|
$
|
521
|
$
|
957
|
$
|
990
|
$
|
2,062
|
||||||||||||||||
Core EBITDA by business
line, CER basis(2)
|
||||||||||||||||||||||||||||||||
Retirement
|
$
|
263
|
$
|
279
|
$
|
309
|
$
|
316
|
$
|
314
|
$
|
542
|
$
|
602
|
$
|
1,227
|
||||||||||||||||
Retail
|
179
|
202
|
221
|
200
|
193
|
381
|
363
|
783
|
||||||||||||||||||||||||
Institutional asset
management
|
25
|
11
|
17
|
17
|
19
|
36
|
26
|
61
|
||||||||||||||||||||||||
Total, CER basis
|
$
|
467
|
$
|
492
|
$
|
547
|
$
|
533
|
$
|
526
|
$
|
959
|
$
|
991
|
$
|
2,071
|
||||||||||||||||
Core EBITDA by
geographic source, CER
basis(2)
|
||||||||||||||||||||||||||||||||
Asia
|
$
|
106
|
$
|
113
|
$
|
116
|
$
|
136
|
$
|
127
|
$
|
219
|
$
|
252
|
$
|
504
|
||||||||||||||||
Canada
|
171
|
171
|
185
|
172
|
169
|
342
|
325
|
682
|
||||||||||||||||||||||||
U.S.
|
190
|
208
|
246
|
225
|
230
|
398
|
414
|
885
|
||||||||||||||||||||||||
Total, CER basis
|
$
|
467
|
$
|
492
|
$
|
547
|
$
|
533
|
$
|
526
|
$
|
959
|
$
|
991
|
$
|
2,071
|
(1) |
The impact of updating foreign exchange rates to that which was used in 2Q22.
|
(2) |
Core EBITDA adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 2Q22.
|
Quarterly Results
|
YTD Results
|
Full Year
Results
|
||||||||||||||||||||||||||||||
($ millions, unless otherwise stated)
|
2Q22
|
1Q22
|
4Q21
|
3Q21
|
2Q21
|
2022
|
2021
|
2021
|
||||||||||||||||||||||||
Core EBITDA margin
|
||||||||||||||||||||||||||||||||
Core EBITDA
|
$
|
467
|
$
|
490
|
$
|
543
|
$
|
529
|
$
|
521
|
$
|
957
|
$
|
990
|
$
|
2,062
|
||||||||||||||||
Global WAM revenue
|
$
|
1,521
|
$
|
1,586
|
$
|
1,727
|
$
|
1,680
|
$
|
1,607
|
$
|
3,107
|
$
|
3,134
|
$
|
6,541
|
||||||||||||||||
Core EBITDA margin
|
30.7
|
%
|
30.9
|
%
|
31.4
|
%
|
31.5
|
%
|
32.4
|
%
|
30.8
|
%
|
31.6
|
%
|
31.5
|
%
|
Quarterly Results
|
YTD Results
|
Full Year
Results
|
||||||||||||||||||||||||||||||
($ millions, and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)
|
2Q22
|
1Q22
|
4Q21
|
3Q21
|
2Q21
|
2022
|
2021
|
2021
|
||||||||||||||||||||||||
Expense Efficiency Ratio
|
||||||||||||||||||||||||||||||||
Core general expenses
|
$
|
1,843
|
$
|
1,877
|
$
|
1,973
|
$
|
1,904
|
$
|
1,794
|
$
|
3,720
|
$
|
3,676
|
$
|
7,553
|
||||||||||||||||
Core earnings (pre-tax)
|
1,900
|
1,876
|
2,054
|
1,811
|
2,036
|
3,776
|
4,031
|
7,896
|
||||||||||||||||||||||||
Total - Core earnings (pre-
tax) and Core general
expenses
|
$
|
3,743
|
$
|
3,753
|
$
|
4,027
|
$
|
3,715
|
$
|
3,830
|
$
|
7,496
|
$
|
7,707
|
$
|
15,449
|
||||||||||||||||
Expense Efficiency Ratio
|
49.2
|
%
|
50.0
|
%
|
49.0
|
%
|
51.3
|
%
|
46.8
|
%
|
49.6
|
%
|
47.7
|
%
|
48.9
|
%
|
||||||||||||||||
Core general expenses
|
||||||||||||||||||||||||||||||||
General expenses - Financial
Statements
|
$
|
1,843
|
$
|
1,898
|
$
|
2,000
|
$
|
1,904
|
$
|
1,892
|
$
|
3,741
|
$
|
3,924
|
$
|
7,828
|
||||||||||||||||
Less: General expenses
included in items excluded
from core earnings
|
||||||||||||||||||||||||||||||||
Restructuring charge
|
-
|
-
|
-
|
-
|
-
|
-
|
150
|
150
|
||||||||||||||||||||||||
Integration and
acquisition
|
-
|
8
|
-
|
-
|
-
|
8
|
-
|
-
|
||||||||||||||||||||||||
Legal provisions and
Other expenses
|
-
|
13
|
27
|
-
|
98
|
13
|
98
|
125
|
||||||||||||||||||||||||
Total
|
$
|
-
|
$
|
21
|
$
|
27
|
$
|
-
|
$
|
98
|
$
|
21
|
$
|
248
|
$
|
275
|
||||||||||||||||
Core general expenses
|
$
|
1,843
|
$
|
1,877
|
$
|
1,973
|
$
|
1,904
|
$
|
1,794
|
$
|
3,720
|
$
|
3,676
|
$
|
7,553
|
||||||||||||||||
Core general expenses
|
$
|
1,843
|
$
|
1,877
|
$
|
1,973
|
$
|
1,904
|
$
|
1,794
|
$
|
3,720
|
$
|
3,676
|
$
|
7,553
|
||||||||||||||||
CER adjustment(1)
|
-
|
(11
|
)
|
(7
|
)
|
(11
|
)
|
17
|
(11
|
)
|
(9
|
)
|
(26
|
)
|
||||||||||||||||||
Core general expenses,
CER basis
|
$
|
1,843
|
$
|
1,866
|
$
|
1,966
|
$
|
1,893
|
$
|
1,811
|
$
|
3,709
|
$
|
3,667
|
$
|
7,527
|
(1) |
The impact of updating foreign exchange rates to that which was used in 2Q22.
|
Quarterly Results
|
YTD Results
|
Full Year
Results
|
||||||||||||||||||||||||||||||
($ millions, unless otherwise stated)
|
2Q22
|
1Q22
|
4Q21
|
3Q21
|
2Q21
|
2022
|
2021
|
2021
|
||||||||||||||||||||||||
Income before income
taxes
|
$
|
1,257
|
$
|
3,711
|
$
|
2,481
|
$
|
1,480
|
$
|
3,292
|
$
|
4,968
|
$
|
4,164
|
$
|
8,125
|
||||||||||||||||
Less: Income before income
taxes for segments other
than Global WAM
|
895
|
3,325
|
2,043
|
1,062
|
2,873
|
4,220
|
3,379
|
6,484
|
||||||||||||||||||||||||
Global WAM income before
income taxes
|
362
|
386
|
438
|
418
|
419
|
748
|
785
|
1,641
|
||||||||||||||||||||||||
Items unrelated to net fee
income
|
580
|
600
|
616
|
599
|
548
|
1,180
|
1,109
|
2,324
|
||||||||||||||||||||||||
Global WAM net fee income
|
942
|
986
|
1,054
|
1,017
|
967
|
1,928
|
1,894
|
3,965
|
||||||||||||||||||||||||
Less: Net fee income from
other segments
|
112
|
118
|
122
|
118
|
109
|
230
|
218
|
458
|
||||||||||||||||||||||||
Global WAM net fee income
excluding net fee income
from other segments
|
830
|
868
|
932
|
899
|
858
|
1,698
|
1,676
|
3,507
|
||||||||||||||||||||||||
Net annualized fee income
|
$
|
3,328
|
$
|
3,516
|
$
|
3,698
|
$
|
3,565
|
$
|
3,441
|
$
|
3,423
|
$
|
3,380
|
$
|
3,507
|
||||||||||||||||
Average Assets under
Management and
Administration
|
$
|
776,833
|
$
|
820,393
|
$
|
835,494
|
$
|
815,927
|
$
|
775,849
|
$
|
798,939
|
$
|
771,218
|
$
|
798,022
|
||||||||||||||||
Net fee income yield (bps)
|
42.8
|
42.9
|
44.3
|
43.7
|
44.4
|
42.8
|
43.8
|
43.9
|
E4 |
Caution regarding forward-looking statements
|
E5 |
Quarterly financial information
|
As at and for the three months ended
|
Jun 30,
|
Mar 31,
|
Dec 31,
|
Sept 30,
|
Jun 30,
|
Mar 31,
|
Dec 31,
|
Sept 30,
|
||||||||||||||||||||||||
($ millions, except per share amounts or otherwise stated, unaudited)
|
2022
|
2022
|
2021
|
2021
|
2021
|
2021
|
2020
|
2020
|
||||||||||||||||||||||||
Revenue
|
||||||||||||||||||||||||||||||||
Premium income
|
||||||||||||||||||||||||||||||||
Life and health insurance(1)
|
$
|
8,783
|
$
|
9,521
|
$
|
9,159
|
$
|
9,269
|
$
|
8,716
|
$
|
8,986
|
$
|
8,651
|
$
|
5,302
|
||||||||||||||||
Annuities and pensions(2)
|
844
|
(19
|
)
|
901
|
714
|
698
|
622
|
672
|
704
|
|||||||||||||||||||||||
Net premium income
|
9,627
|
9,502
|
10,060
|
9,983
|
9,414
|
9,608
|
9,323
|
6,006
|
||||||||||||||||||||||||
Investment income
|
3,675
|
3,417
|
4,350
|
3,964
|
4,099
|
3,214
|
4,366
|
3,521
|
||||||||||||||||||||||||
Realized and unrealized gains and losses on assets supporting
insurance and investment contract liabilities(3)
|
(17,760
|
)
|
(18,540
|
)
|
4,460
|
(958
|
)
|
9,551
|
(17,056
|
)
|
1,683
|
1,100
|
||||||||||||||||||||
Other revenue
|
2,057
|
1,991
|
2,741
|
2,994
|
2,760
|
2,637
|
2,497
|
2,749
|
||||||||||||||||||||||||
Total revenue
|
$
|
(2,401
|
)
|
$
|
(3,630
|
)
|
$
|
21,611
|
$
|
15,983
|
$
|
25,824
|
$
|
(1,597
|
)
|
$
|
17,869
|
$
|
13,376
|
|||||||||||||
Income (loss) before income taxes
|
$
|
1,257
|
$
|
3,711
|
$
|
2,481
|
$
|
1,480
|
$
|
3,292
|
$
|
872
|
$
|
2,065
|
$
|
2,170
|
||||||||||||||||
Income tax (expense) recovery
|
(258
|
)
|
(809
|
)
|
(430
|
)
|
(166
|
)
|
(610
|
)
|
(7
|
)
|
(224
|
)
|
(381
|
)
|
||||||||||||||||
Net income (loss)
|
$
|
999
|
$
|
2,902
|
$
|
2,051
|
$
|
1,314
|
$
|
2,682
|
$
|
865
|
$
|
1,841
|
$
|
1,789
|
||||||||||||||||
Net income (loss) attributed to shareholders
|
$
|
1,086
|
$
|
2,970
|
$
|
2,084
|
$
|
1,592
|
$
|
2,646
|
$
|
783
|
$
|
1,780
|
$
|
2,068
|
||||||||||||||||
Basic earnings (loss) per common share
|
$
|
0.53
|
$
|
1.51
|
$
|
1.04
|
$
|
0.80
|
$
|
1.33
|
$
|
0.38
|
$
|
0.90
|
$
|
1.04
|
||||||||||||||||
Diluted earnings (loss) per common share
|
$
|
0.53
|
$
|
1.50
|
$
|
1.03
|
$
|
0.80
|
$
|
1.33
|
$
|
0.38
|
$
|
0.89
|
$
|
1.04
|
||||||||||||||||
Segregated funds deposits
|
$
|
10,094
|
$
|
12,328
|
$
|
10,920
|
$
|
10,929
|
$
|
10,301
|
$
|
12,395
|
$
|
9,741
|
$
|
9,158
|
||||||||||||||||
Total assets (in billions)
|
$
|
821
|
$
|
865
|
$
|
918
|
$
|
898
|
$
|
879
|
$
|
859
|
$
|
880
|
$
|
876
|
||||||||||||||||
Weighted average common shares (in
millions)
|
1,921
|
1,938
|
1,943
|
1,942
|
1,942
|
1,941
|
1,940
|
1,940
|
||||||||||||||||||||||||
Diluted weighted average common shares
(in millions)
|
1,924
|
1,942
|
1,946
|
1,946
|
1,946
|
1,945
|
1,943
|
1,942
|
||||||||||||||||||||||||
Dividends per common share
|
$
|
0.330
|
$
|
0.330
|
$
|
0.330
|
$
|
0.280
|
$
|
0.280
|
$
|
0.280
|
$
|
0.280
|
$
|
0.280
|
||||||||||||||||
CDN$ to US$1 - Statement of Financial
Position
|
1.2900
|
1.2496
|
1.2678
|
1.2741
|
1.2394
|
1.2575
|
1.2732
|
1.3339
|
||||||||||||||||||||||||
CDN$ to US$1 - Statement of Income
|
1.2765
|
1.2663
|
1.2601
|
1.2602
|
1.2282
|
1.2660
|
1.3030
|
1.3321
|
(1) |
Includes ceded premiums related to the reinsurance of a block of our legacy U.S. Bank-Owned Life Insurance of US$2.4 billion in 3Q20.
|
(2) |
Includes lower revenue related to the reinsurance of a block of our legacy U.S. variable annuity business of US$0.9 billion in 1Q22.
|
(3) |
For fixed income assets supporting insurance and investment contract liabilities and for equities supporting pass-through products and derivatives related to variable hedging
programs, the impact of realized and unrealized gains (losses) on the assets is largely offset in the change in insurance and investment contract liabilities.
|
E6 |
Other
|
As at
|
||||||||
(Canadian $ in millions, unaudited)
|
June 30, 2022
|
December 31, 2021
|
||||||
Assets
|
||||||||
Cash and short-term securities
|
$
|
21,015
|
$
|
22,594
|
||||
Debt securities
|
199,756
|
224,139
|
||||||
Public equities
|
22,530
|
28,067
|
||||||
Mortgages
|
53,422
|
52,014
|
||||||
Private placements
|
43,890
|
42,842
|
||||||
Policy loans
|
6,510
|
6,397
|
||||||
Loans to Bank clients
|
2,782
|
2,506
|
||||||
Real estate
|
13,596
|
13,233
|
||||||
Other invested assets
|
38,828
|
35,306
|
||||||
Total invested assets (note 3)
|
402,329
|
427,098
|
||||||
Other assets
|
||||||||
Accrued investment income
|
2,652
|
2,641
|
||||||
Outstanding premiums
|
1,295
|
1,294
|
||||||
Derivatives (note 4)
|
8,757
|
17,503
|
||||||
Reinsurance assets
|
45,720
|
44,579
|
||||||
Deferred tax assets
|
5,458
|
5,254
|
||||||
Goodwill and intangible assets
|
9,799
|
9,915
|
||||||
Miscellaneous
|
9,609
|
9,571
|
||||||
Total other assets
|
83,290
|
90,757
|
||||||
Segregated funds net assets (note 14)
|
334,903
|
399,788
|
||||||
Total assets
|
$
|
820,522
|
$
|
917,643
|
||||
Liabilities and Equity
|
||||||||
Liabilities
|
||||||||
Insurance contract liabilities (note 5)
|
$
|
359,335
|
$
|
392,275
|
||||
Investment contract liabilities (note 5)
|
3,158
|
3,117
|
||||||
Deposits from Bank clients
|
21,589
|
20,720
|
||||||
Derivatives (note 4)
|
13,994
|
10,038
|
||||||
Deferred tax liabilities
|
2,646
|
2,769
|
||||||
Other liabilities
|
16,167
|
18,205
|
||||||
416,889
|
447,124
|
|||||||
Long-term debt (note 7)
|
5,931
|
4,882
|
||||||
Capital instruments (note 8)
|
7,001
|
6,980
|
||||||
Segregated funds net liabilities (note 14)
|
334,903
|
399,788
|
||||||
Total liabilities
|
764,724
|
858,774
|
||||||
Equity
|
||||||||
Preferred shares and other equity (note 9)
|
6,660
|
6,381
|
||||||
Common shares (note 9)
|
22,724
|
23,093
|
||||||
Contributed surplus
|
262
|
262
|
||||||
Shareholders' and other equity holders' retained earnings
|
25,737
|
23,492
|
||||||
Shareholders' accumulated other comprehensive income (loss) (“AOCI”):
|
||||||||
Pension and other post-employment plans
|
(48
|
)
|
(114
|
)
|
||||
Available-for-sale securities
|
(4,289
|
)
|
848
|
|||||
Cash flow hedges
|
(48
|
)
|
(156
|
)
|
||||
Real estate revaluation reserve
|
23
|
23
|
||||||
Translation of foreign operations
|
4,479
|
4,579
|
||||||
Total shareholders' and other equity
|
55,500
|
58,408
|
||||||
Participating policyholders' equity
|
(1,398
|
)
|
(1,233
|
)
|
||||
Non-controlling interests
|
1,696
|
1,694
|
||||||
Total equity
|
55,798
|
58,869
|
||||||
Total liabilities and equity
|
$
|
820,522
|
$
|
917,643
|
||||
The accompanying notes are an integral part of these unaudited Interim Consolidated Financial Statements.
|
![]() |
![]() |
Roy Gori
|
John Cassaday
|
President and Chief Executive Officer
|
Chairman of the Board of Directors
|
For the
|
three months ended June 30,
|
six months ended June 30,
|
||||||||||||||
(Canadian $ in millions except per share amounts, unaudited)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Revenue
|
||||||||||||||||
Premium income
|
||||||||||||||||
Gross premiums
|
$
|
10,876
|
$
|
10,614
|
$
|
22,530
|
$
|
21,606
|
||||||||
Premiums ceded to reinsurers
|
(1,249
|
)
|
(1,200
|
)
|
(3,401
|
)
|
(2,584
|
)
|
||||||||
Net premiums
|
9,627
|
9,414
|
19,129
|
19,022
|
||||||||||||
Investment income (note 3)
|
||||||||||||||||
Investment income
|
3,675
|
4,099
|
7,092
|
7,313
|
||||||||||||
Realized and unrealized gains (losses) on assets supporting
insurance and investment contract liabilities and on the macro hedge
program
|
(17,760
|
)
|
9,551
|
(36,300
|
)
|
(7,505
|
)
|
|||||||||
Net investment income (loss)
|
(14,085
|
)
|
13,650
|
(29,208
|
)
|
(192
|
)
|
|||||||||
Other revenue (note 10)
|
2,057
|
2,760
|
4,048
|
5,397
|
||||||||||||
Total revenue
|
(2,401
|
)
|
25,824
|
(6,031
|
)
|
24,227
|
||||||||||
Contract benefits and expenses
|
||||||||||||||||
To contract holders and beneficiaries
|
||||||||||||||||
Gross claims and benefits (note 5)
|
7,889
|
7,637
|
16,406
|
15,280
|
||||||||||||
Increase (decrease) in insurance contract liabilities
|
(13,838
|
)
|
11,614
|
(31,366
|
)
|
(1,411
|
)
|
|||||||||
Increase (decrease) in investment contract liabilities
|
13
|
22
|
(1
|
)
|
24
|
|||||||||||
Benefits and expenses ceded to reinsurers
|
(1,601
|
)
|
(1,591
|
)
|
(3,603
|
)
|
(3,379
|
)
|
||||||||
(Increase) decrease in reinsurance assets
|
(367
|
)
|
432
|
(966
|
)
|
590
|
||||||||||
Net benefits and claims
|
(7,904
|
)
|
18,114
|
(19,530
|
)
|
11,104
|
||||||||||
General expenses
|
1,843
|
1,892
|
3,741
|
3,924
|
||||||||||||
Investment expenses
|
448
|
541
|
889
|
1,021
|
||||||||||||
Commissions
|
1,532
|
1,621
|
3,129
|
3,298
|
||||||||||||
Interest expense
|
318
|
259
|
561
|
509
|
||||||||||||
Net premium taxes
|
105
|
105
|
211
|
207
|
||||||||||||
Total contract benefits and expenses
|
(3,658
|
)
|
22,532
|
(10,999
|
)
|
20,063
|
||||||||||
Income before income taxes
|
1,257
|
3,292
|
4,968
|
4,164
|
||||||||||||
Income tax (expense) recovery
|
(258
|
)
|
(610
|
)
|
(1,067
|
)
|
(617
|
)
|
||||||||
Net income
|
$
|
999
|
$
|
2,682
|
$
|
3,901
|
$
|
3,547
|
||||||||
Net income (loss) attributed to:
|
||||||||||||||||
Non-controlling interests
|
$
|
(11
|
)
|
$
|
84
|
$
|
10
|
$
|
175
|
|||||||
Participating policyholders
|
(76
|
)
|
(48
|
)
|
(165
|
)
|
(57
|
)
|
||||||||
Shareholders and other equity holders
|
1,086
|
2,646
|
4,056
|
3,429
|
||||||||||||
$
|
999
|
$
|
2,682
|
$
|
3,901
|
$
|
3,547
|
|||||||||
Net income attributed to shareholders
|
$
|
1,086
|
$
|
2,646
|
$
|
4,056
|
$
|
3,429
|
||||||||
Preferred share dividends and other equity distributions
|
(60
|
)
|
(64
|
)
|
(112
|
)
|
(107
|
)
|
||||||||
Common shareholders' net income
|
$
|
1,026
|
$
|
2,582
|
$
|
3,944
|
$
|
3,322
|
||||||||
Earnings per share
|
||||||||||||||||
Basic earnings per common share (note 9)
|
$
|
0.53
|
$
|
1.33
|
$
|
2.04
|
$
|
1.71
|
||||||||
Diluted earnings per common share (note 9)
|
0.53
|
1.33
|
2.04
|
1.71
|
||||||||||||
Dividends per common share
|
0.33
|
0.28
|
0.66
|
0.56
|
||||||||||||
The accompanying notes are an integral part of these unaudited Interim Consolidated Financial Statements.
|
For the
|
three months ended
June 30,
|
six months ended
June 30,
|
||||||||||||||
(Canadian $ in millions, unaudited)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Net income
|
$
|
999
|
$
|
2,682
|
$
|
3,901
|
$
|
3,547
|
||||||||
Other comprehensive income (loss) ("OCI"), net of tax
|
||||||||||||||||
Items that may be subsequently reclassified to net income:
|
||||||||||||||||
Foreign exchange gains (losses) on:
|
||||||||||||||||
Translation of foreign operations
|
870
|
(689
|
)
|
(40
|
)
|
(1,594
|
)
|
|||||||||
Net investment hedges
|
(154
|
)
|
96
|
(60
|
)
|
192
|
||||||||||
Available-for-sale financial securities:
|
||||||||||||||||
Unrealized gains (losses) arising during the period
|
(2,724
|
)
|
1,148
|
(5,258
|
)
|
(1,497
|
)
|
|||||||||
Reclassification of net realized (gains) losses and impairments to net
income
|
10
|
13
|
110
|
(35
|
)
|
|||||||||||
Cash flow hedges:
|
||||||||||||||||
Unrealized gains (losses) arising during the period
|
50
|
(33
|
)
|
124
|
65
|
|||||||||||
Reclassification of realized gains (losses) to net income
|
(28
|
)
|
(16
|
)
|
(16
|
)
|
(2
|
)
|
||||||||
Share of other comprehensive income (losses) of associates
|
2
|
1
|
2
|
3
|
||||||||||||
Total items that may be subsequently reclassified to net income
|
(1,974
|
)
|
520
|
(5,138
|
)
|
(2,868
|
)
|
|||||||||
Items that will not be reclassified to net income:
|
||||||||||||||||
Change in actuarial gains (losses) on pension and other post-
employment plans
|
53
|
91
|
66
|
176
|
||||||||||||
Real estate revaluation reserve
|
-
|
-
|
-
|
(11
|
)
|
|||||||||||
Total items that will not be reclassified to net income
|
53
|
91
|
66
|
165
|
||||||||||||
Other comprehensive income (loss), net of tax
|
(1,921
|
)
|
611
|
(5,072
|
)
|
(2,703
|
)
|
|||||||||
Total comprehensive income (loss), net of tax
|
$
|
(922
|
)
|
$
|
3,293
|
$
|
(1,171
|
)
|
$
|
844
|
||||||
Total comprehensive income (loss) attributed to:
|
||||||||||||||||
Non-controlling interests
|
$
|
(16
|
)
|
$
|
85
|
$
|
1
|
$
|
173
|
|||||||
Participating policyholders
|
(76
|
)
|
(48
|
)
|
(165
|
)
|
(58
|
)
|
||||||||
Shareholders and other equity holders
|
(830
|
)
|
3,256
|
(1,007
|
)
|
729
|
For the
|
three months ended
June 30,
|
six months ended
June 30,
|
||||||||||||||
(Canadian $ in millions, unaudited)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Income tax expense (recovery) on:
|
||||||||||||||||
Unrealized gains (losses) on available-for-sale financial securities
|
$
|
(480
|
)
|
$
|
188
|
$
|
(933
|
)
|
$
|
(263
|
)
|
|||||
Reclassification of realized gains (losses) and recoveries (impairments) to
net income on available-for-sale financial securities
|
(5
|
)
|
4
|
27
|
(3
|
)
|
||||||||||
Unrealized gains (losses) on cash flow hedges
|
16
|
(9
|
)
|
31
|
11
|
|||||||||||
Reclassification of realized gains (losses) to net income on cash flow hedges
|
(8
|
)
|
(5
|
)
|
(5
|
)
|
-
|
|||||||||
Unrealized foreign exchange gains (losses) on translation of foreign
operations
|
-
|
(1
|
)
|
-
|
(1
|
)
|
||||||||||
Unrealized foreign exchange gains (losses) on net investment hedges
|
(16
|
)
|
14
|
(5
|
)
|
29
|
||||||||||
Share of other comprehensive income (loss) of associates
|
-
|
-
|
-
|
(1
|
)
|
|||||||||||
Change in pension and other post-employment plans
|
17
|
26
|
25
|
54
|
||||||||||||
Total income tax expense (recovery)
|
$
|
(476
|
)
|
$
|
217
|
$
|
(860
|
)
|
$
|
(174
|
)
|
For the six months ended June 30,
|
||||||||
(Canadian $ in millions, unaudited)
|
2022
|
2021
|
||||||
Preferred shares and other equity
|
||||||||
Balance, beginning of period
|
$
|
6,381
|
$
|
3,822
|
||||
Issued (note 9)
|
1,000
|
2,000
|
||||||
Redeemed (note 9)
|
(711
|
)
|
(418
|
)
|
||||
Issuance costs, net of tax
|
(10
|
)
|
(17
|
)
|
||||
Balance, end of period
|
6,660
|
5,387
|
||||||
Common shares
|
||||||||
Balance, beginning of period
|
23,093
|
23,042
|
||||||
Repurchased (note 9)
|
(385
|
)
|
-
|
|||||
Issued on exercise of stock options and deferred share units
|
16
|
41
|
||||||
Balance, end of period
|
22,724
|
23,083
|
||||||
Contributed surplus
|
||||||||
Balance, beginning of period
|
262
|
261
|
||||||
Exercise of stock options and deferred share units
|
(3
|
)
|
(7
|
)
|
||||
Stock option expense
|
3
|
6
|
||||||
Balance, end of period
|
262
|
260
|
||||||
Shareholders' and other equity holders' retained earnings
|
||||||||
Balance, beginning of period
|
23,492
|
18,887
|
||||||
Net income attributed to shareholders and other equity holders
|
4,056
|
3,429
|
||||||
Common shares repurchased
|
(420
|
)
|
-
|
|||||
Preferred share dividends and other equity distributions
|
(112
|
)
|
(107
|
)
|
||||
Preferred shares redeemed (note 9)
|
(14
|
)
|
(7
|
)
|
||||
Common share dividends
|
(1,265
|
)
|
(1,089
|
)
|
||||
Balance, end of period
|
25,737
|
21,113
|
||||||
Shareholders' accumulated other comprehensive income (loss)
|
||||||||
Balance, beginning of period
|
5,180
|
6,323
|
||||||
Change in unrealized foreign exchange gains (losses) on net foreign operations
|
(100
|
)
|
(1,401
|
)
|
||||
Change in actuarial gains (losses) on pension and other post-employment plans
|
66
|
176
|
||||||
Change in unrealized gains (losses) on available-for-sale financial securities
|
(5,139
|
)
|
(1,530
|
)
|
||||
Change in unrealized gains (losses) on derivative instruments designated as cash flow hedges
|
108
|
63
|
||||||
Change in real estate revaluation reserve
|
-
|
(11
|
)
|
|||||
Share of other comprehensive income (losses) of associates
|
2
|
3
|
||||||
Balance, end of period
|
117
|
3,623
|
||||||
Total shareholders' and other equity, end of period
|
55,500
|
53,466
|
||||||
Participating policyholders' equity
|
||||||||
Balance, beginning of period
|
(1,233
|
)
|
(784
|
)
|
||||
Net income (loss) attributed to participating policyholders
|
(165
|
)
|
(57
|
)
|
||||
Other comprehensive income (losses) attributed to participating policyholders
|
-
|
(1
|
)
|
|||||
Balance, end of period
|
(1,398
|
)
|
(842
|
)
|
||||
Non-controlling interests
|
||||||||
Balance, beginning of period
|
1,694
|
1,455
|
||||||
Net income attributed to non-controlling interests
|
10
|
175
|
||||||
Other comprehensive income (losses) attributed to non-controlling interests
|
(9
|
)
|
(2
|
)
|
||||
Contributions (distributions), net
|
1
|
2
|
||||||
Balance, end of period
|
1,696
|
1,630
|
||||||
Total equity, end of period
|
$
|
55,798
|
$
|
54,254
|
||||
The accompanying notes are an integral part of these unaudited Interim Consolidated Financial Statements.
|
For the six months ended June 30,
|
||||||||
(Canadian $ in millions, unaudited)
|
2022
|
2021
|
||||||
Operating activities
|
||||||||
Net income
|
$
|
3,901
|
$
|
3,547
|
||||
Adjustments:
|
||||||||
Increase (decrease) in insurance contract liabilities
|
(29,918
|
)
|
(1,411
|
)
|
||||
Increase (decrease) in investment contract liabilities
|
(1
|
)
|
24
|
|||||
(Increase) decrease in reinsurance assets
|
(134
|
)
|
590
|
|||||
Amortization of (premium) discount on invested assets
|
48
|
80
|
||||||
Other amortization
|
265
|
268
|
||||||
Net realized and unrealized (gains) losses and impairment on assets
|
39,308
|
8,323
|
||||||
Gain on U.S. variable annuity reinsurance transaction (pre-tax) (Note 5)
|
(1,065
|
)
|
-
|
|||||
Deferred income tax expense (recovery)
|
345
|
17
|
||||||
Stock option expense
|
3
|
6
|
||||||
Cash provided by operating activities before undernoted items
|
12,752
|
11,444
|
||||||
Cash decrease due to U.S. variable annuity reinsurance transaction (Note 5)
|
(1,263
|
)
|
-
|
|||||
Changes in policy related and operating receivables and payables
|
(4,158
|
)
|
(1,855
|
)
|
||||
Cash provided by (used in) operating activities
|
7,331
|
9,589
|
||||||
Investing activities
|
||||||||
Purchases and mortgage advances
|
(61,773
|
)
|
(63,023
|
)
|
||||
Disposals and repayments
|
52,865
|
48,144
|
||||||
Change in investment broker net receivables and payables
|
(117
|
)
|
634
|
|||||
Net cash flows from acquisition and disposal of subsidiaries and businesses
|
-
|
(4
|
)
|
|||||
Cash provided by (used in) investing activities
|
(9,025
|
)
|
(14,249
|
)
|
||||
Financing activities
|
||||||||
Issue of long-term debt, net (note 7)
|
946
|
-
|
||||||
Redemption of long-term debt
|
-
|
(1,250
|
)
|
|||||
Redemption of capital instruments (note 8)
|
-
|
(818
|
)
|
|||||
Secured borrowings
|
548
|
17
|
||||||
Change in repurchase agreements and securities sold but not yet purchased
|
64
|
520
|
||||||
Changes in deposits from Bank clients, net
|
850
|
(323
|
)
|
|||||
Lease payments
|
(62
|
)
|
(62
|
)
|
||||
Shareholders' dividends and other equity distributions
|
(1,391
|
)
|
(1,203
|
)
|
||||
Common shares repurchased
|
(805
|
)
|
-
|
|||||
Common shares issued, net (note 9)
|
16
|
41
|
||||||
Preferred shares and other equity issued, net (note 9)
|
990
|
1,983
|
||||||
Preferred shares redeemed, net (note 9)
|
(711
|
)
|
(418
|
)
|
||||
Contributions from (distributions to) non-controlling interests, net
|
1
|
2
|
||||||
Cash provided by (used in) financing activities
|
446
|
(1,511
|
)
|
|||||
Cash and short-term securities
|
||||||||
Increase (decrease) during the period
|
(1,248
|
)
|
(6,171
|
)
|
||||
Effect of foreign exchange rate changes on cash and short-term securities
|
(39
|
)
|
(546
|
)
|
||||
Balance, beginning of period
|
21,930
|
25,583
|
||||||
Balance, end of period
|
20,643
|
18,866
|
||||||
Cash and short-term securities
|
||||||||
Beginning of period
|
||||||||
Gross cash and short-term securities
|
22,594
|
26,167
|
||||||
Net payments in transit, included in other liabilities
|
(664
|
)
|
(584
|
)
|
||||
Net cash and short-term securities, beginning of period
|
21,930
|
25,583
|
||||||
End of period
|
||||||||
Gross cash and short-term securities
|
21,015
|
19,721
|
||||||
Net payments in transit, included in other liabilities
|
(372
|
)
|
(855
|
)
|
||||
Net cash and short-term securities, end of period
|
$
|
20,643
|
$
|
18,866
|
||||
Supplemental disclosures on cash flow information
|
||||||||
Interest received
|
$
|
5,681
|
$
|
5,681
|
||||
Interest paid
|
554
|
520
|
||||||
Income taxes paid
|
980
|
225
|
||||||
The accompanying notes are an integral part of these unaudited Interim Consolidated Financial Statements.
|
Note 1 |
Nature of Operations and Significant Accounting Policies
|
(a) |
Reporting entity
|
(b) |
Basis of preparation
|
Note 2 |
Accounting and Reporting Changes
|
(a) |
Changes in accounting and reporting policy
|
(I) |
Annual Improvements 2018–2020 Cycle
|
(II) |
Amendments to IFRS 3 “Business Combinations”
|
(III) |
Amendments to IAS 37 “Provisions, Contingent Liabilities and Contingent Assets”
|
(b) |
Future accounting and reporting changes
|
(I) |
IFRS 17 “Insurance Contracts” and IFRS 9 “Financial Instruments”
|
•
|
Under IFRS 17 new business gains are recorded on the Consolidated Statements of Financial Position (in the Contractual Service Margin (“CSM”)
component of the insurance contract liability) and amortized into income as services are provided. New business losses are recorded into income immediately. Under CALM, both new business gains and new business losses are recognized in
income immediately.
|
•
|
Under IFRS 17 the discount rate used to estimate the present value of insurance contract liabilities is based on the characteristics of the liability,
whereas under CALM, the Company uses the rates of returns for current and projected assets supporting insurance contract liabilities to value the liabilities. The difference in the discount rate approach also impacts the timing of
investment results. Under IFRS 17, the impact of investing activities will emerge into earnings over the life of the assets, whereas under CALM, the impact of investing activities is capitalized into reserves and therefore earnings in
the period they occur.
|
•
|
Under IFRS 17 the discount rate is not related to the expected return on Alternative Long-Duration Assets (“ALDA”) and public equity assets, and as a
result, the earnings sensitivity of a change in return assumptions for ALDA and public equity will be significantly reduced.
|
•
|
Under IFRS 17 the Company will elect the option to record changes in insurance contract liabilities arising from changes in interest rates through
other comprehensive income and will classify debt instruments as fair value through other comprehensive income under IFRS 9. Under CALM, changes in insurance contract liabilities are recorded in net income.
|
Note 3 |
Invested Assets and Investment Income
|
(a) |
Carrying values and fair values of invested assets
|
As at June 30, 2022
|
FVTPL(1)
|
AFS(2)
|
Other(3)
|
Total carrying
value
|
Total fair value
|
|||||||||||||||
Cash and short-term securities(4)
|
$
|
1,882
|
$
|
12,481
|
$
|
6,652
|
$
|
21,015
|
$
|
21,015
|
||||||||||
Debt securities(3),(5),(6)
|
||||||||||||||||||||
Canadian government and agency
|
15,312
|
5,196
|
-
|
20,508
|
20,508
|
|||||||||||||||
U.S. government and agency
|
9,494
|
15,916
|
868
|
26,278
|
26,124
|
|||||||||||||||
Other government and agency
|
20,652
|
3,102
|
-
|
23,754
|
23,754
|
|||||||||||||||
Corporate
|
119,795
|
6,327
|
475
|
126,597
|
126,472
|
|||||||||||||||
Mortgage/asset-backed securities
|
2,464
|
155
|
-
|
2,619
|
2,619
|
|||||||||||||||
Public equities
|
20,966
|
1,564
|
-
|
22,530
|
22,530
|
|||||||||||||||
Mortgages
|
-
|
-
|
53,422
|
53,422
|
50,964
|
|||||||||||||||
Private placements(6)
|
-
|
-
|
43,890
|
43,890
|
40,258
|
|||||||||||||||
Policy loans
|
-
|
-
|
6,510
|
6,510
|
6,510
|
|||||||||||||||
Loans to Bank clients
|
-
|
-
|
2,782
|
2,782
|
2,772
|
|||||||||||||||
Real estate
|
||||||||||||||||||||
Own use property
|
-
|
-
|
1,827
|
1,827
|
3,076
|
|||||||||||||||
Investment property
|
-
|
-
|
11,769
|
11,769
|
11,769
|
|||||||||||||||
Other invested assets
|
||||||||||||||||||||
Alternative long-duration assets(7)
|
23,498
|
91
|
10,952
|
34,541
|
35,233
|
|||||||||||||||
Various other
|
128
|
-
|
4,159
|
4,287
|
4,287
|
|||||||||||||||
Total invested assets
|
$
|
214,191
|
$
|
44,832
|
$
|
143,306
|
$
|
402,329
|
$
|
397,891
|
||||||||||
As at December 31, 2021
|
FVTPL(1)
|
AFS(2)
|
Other(3)
|
Total carrying
value
|
Total fair value
|
|||||||||||||||
Cash and short-term securities(4)
|
$
|
2,214
|
$
|
14,339
|
$
|
6,041
|
$
|
22,594
|
$
|
22,594
|
||||||||||
Debt securities(3),(5),(6)
|
||||||||||||||||||||
Canadian government and agency
|
18,706
|
3,964
|
-
|
22,670
|
22,670
|
|||||||||||||||
U.S. government and agency
|
12,607
|
18,792
|
852
|
32,251
|
32,254
|
|||||||||||||||
Other government and agency
|
21,888
|
2,871
|
-
|
24,759
|
24,759
|
|||||||||||||||
Corporate
|
133,763
|
7,332
|
468
|
141,563
|
141,560
|
|||||||||||||||
Mortgage/asset-backed securities
|
2,758
|
138
|
-
|
2,896
|
2,896
|
|||||||||||||||
Public equities
|
25,716
|
2,351
|
-
|
28,067
|
28,067
|
|||||||||||||||
Mortgages
|
-
|
-
|
52,014
|
52,014
|
54,089
|
|||||||||||||||
Private placements(6)
|
-
|
-
|
42,842
|
42,842
|
47,276
|
|||||||||||||||
Policy loans
|
-
|
-
|
6,397
|
6,397
|
6,397
|
|||||||||||||||
Loans to Bank clients
|
-
|
-
|
2,506
|
2,506
|
2,503
|
|||||||||||||||
Real estate
|
||||||||||||||||||||
Own use property
|
-
|
-
|
1,812
|
1,812
|
3,024
|
|||||||||||||||
Investment property
|
-
|
-
|
11,421
|
11,421
|
11,421
|
|||||||||||||||
Other invested assets
|
||||||||||||||||||||
Alternative long-duration assets(7)
|
21,022
|
89
|
10,093
|
31,204
|
31,863
|
|||||||||||||||
Various other
|
135
|
-
|
3,967
|
4,102
|
4,102
|
|||||||||||||||
Total invested assets
|
$
|
238,809
|
$
|
49,876
|
$
|
138,413
|
$
|
427,098
|
$
|
435,475
|
(1) |
FVTPL classification was elected for securities backing insurance contract liabilities to substantially reduce any accounting mismatch arising from changes in the fair value of
these assets and changes in the value of the related insurance contract liabilities. If this election had not been made and instead the available-for-sale (“AFS”) classification was selected, there would be an accounting mismatch because
changes in insurance contract liabilities are recognized in net income rather than in OCI.
|
(2) |
Securities that are designated as AFS are not actively traded by the Company but sales do occur as circumstances warrant. Such sales result in a reclassification of any
accumulated unrealized gain (loss) in AOCI to net income as a realized gain (loss).
|
(3) |
Primarily includes assets classified as loans and carried at amortized cost, own use properties, investment properties, equity method accounted investments, and leveraged leases.
Also includes debt securities classified as held-to-maturity which are accounted for at amortized cost.
|
(4) |
Includes short-term securities with maturities of less than one year at acquisition amounting to $5,765 (December 31, 2021 – $7,314) cash equivalents with maturities of less than
90 days at acquisition amounting to $8,598 (December 31, 2021 – $9,239) and cash of $6,652 (December 31, 2021 – $6,041).
|
(5) |
Debt securities include securities which were acquired with maturities of less than one year and less than 90 days of $1,439 and $364, respectively (December 31, 2021 – $2,196 and
$347, respectively).
|
(6) |
Floating rate invested assets above which are subject to interest rate benchmark reform, but have not yet transitioned to replacement reference rates, include debt securities
benchmarked to CDOR and USD LIBOR of $158 and $898 (December 31, 2021 – $176 and $1,002 respectively), and private placements benchmarked to USD LIBOR, AUD BBSW and NZD BKBM of $1,894, $159 and $40 (December 31, 2021 – $1,984, $166 and
$43, respectively). Exposures indexed to USD LIBOR represent floating rate invested assets with maturity dates beyond June 30, 2023 while exposures to CDOR represent floating rate invested assets with maturity dates beyond June 28, 2024.
The interest rate benchmark reform is expected to have an impact on the valuation of invested assets whose value is tied to the affected interest rate benchmarks. The Company has assessed its exposure at the contract level, by benchmark
and instrument type. The Company is monitoring market developments with respect to alternative reference rates and the time horizon during which they will evolve. As at June 30, 2022, the interest rate benchmark reform has not resulted in
significant changes in the Company’s risk management strategy.
|
(7) |
Alternative long-duration assets (“ALDA”) include investments in private equity of $12,957, infrastructure of $11,096, oil and gas of $2,057, timber and agriculture of $5,512 and
various other invested assets of $2,919 (December 31, 2021 – $11,598, $9,824, $1,950, $5,259 and $2,573, respectively).
|
(b) |
Investment income
|
three months ended
|
six months ended
|
|||||||||||||||
June 30,
|
June 30,
|
|||||||||||||||
For the
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Interest income
|
$
|
2,837
|
$
|
2,796
|
$
|
5,756
|
$
|
5,691
|
||||||||
Dividend, rental income and other income
|
1,013
|
1,098
|
1,943
|
1,787
|
||||||||||||
Impairments, provisions and recoveries, net
|
(10
|
)
|
39
|
(26
|
)
|
4
|
||||||||||
Realized and unrealized gains (losses) on surplus assets
excluding the macro hedge program
|
(165
|
)
|
166
|
(581
|
)
|
(169
|
)
|
|||||||||
3,675
|
4,099
|
7,092
|
7,313
|
|||||||||||||
Realized and unrealized gains (losses) on assets supporting
insurance and investment contract liabilities and, on the macro
hedge program
|
||||||||||||||||
Debt securities
|
(11,643
|
)
|
4,400
|
(25,950
|
)
|
(5,159
|
)
|
|||||||||
Public equities
|
(2,566
|
)
|
1,389
|
(3,430
|
)
|
2,385
|
||||||||||
Mortgages
|
37
|
20
|
101
|
65
|
||||||||||||
Private placements
|
242
|
(7
|
)
|
453
|
215
|
|||||||||||
Real estate
|
70
|
304
|
367
|
263
|
||||||||||||
Other invested assets
|
1,148
|
830
|
1,520
|
1,492
|
||||||||||||
Derivatives, including macro hedge program
|
(5,048
|
)
|
2,615
|
(9,361
|
)
|
(6,766
|
)
|
|||||||||
(17,760
|
)
|
9,551
|
(36,300
|
)
|
(7,505
|
)
|
||||||||||
Total investment income (loss)
|
$
|
(14,085
|
)
|
$
|
13,650
|
$
|
(29,208
|
)
|
$
|
(192
|
)
|
(c) |
Fair value measurement
|
As at June 30, 2022
|
Total fair
value
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Cash and short-term securities
|
||||||||||||||||
FVTPL
|
$
|
1,882
|
$
|
-
|
$
|
1,882
|
$
|
-
|
||||||||
AFS
|
12,481
|
-
|
12,481
|
-
|
||||||||||||
Other
|
6,652
|
6,652
|
-
|
-
|
||||||||||||
Debt securities
|
||||||||||||||||
FVTPL
|
||||||||||||||||
Canadian government and agency
|
15,312
|
-
|
15,312
|
-
|
||||||||||||
U.S. government and agency
|
9,494
|
-
|
9,494
|
-
|
||||||||||||
Other government and agency
|
20,652
|
-
|
20,652
|
-
|
||||||||||||
Corporate
|
119,795
|
-
|
119,783
|
12
|
||||||||||||
Residential mortgage-backed securities
|
7
|
-
|
7
|
-
|
||||||||||||
Commercial mortgage-backed securities
|
835
|
-
|
835
|
-
|
||||||||||||
Other asset-backed securities
|
1,622
|
-
|
1,596
|
26
|
||||||||||||
AFS
|
||||||||||||||||
Canadian government and agency
|
5,196
|
-
|
5,196
|
-
|
||||||||||||
U.S. government and agency
|
15,916
|
-
|
15,916
|
-
|
||||||||||||
Other government and agency
|
3,102
|
-
|
3,093
|
9
|
||||||||||||
Corporate
|
6,327
|
-
|
6,327
|
-
|
||||||||||||
Residential mortgage-backed securities
|
1
|
-
|
1
|
-
|
||||||||||||
Commercial mortgage-backed securities
|
47
|
-
|
47
|
-
|
||||||||||||
Other asset-backed securities
|
107
|
-
|
107
|
-
|
||||||||||||
Public equities
|
||||||||||||||||
FVTPL
|
20,966
|
20,965
|
-
|
1
|
||||||||||||
AFS
|
1,564
|
1,564
|
-
|
-
|
||||||||||||
Real estate - investment property(1)
|
11,769
|
-
|
-
|
11,769
|
||||||||||||
Other invested assets(2)
|
27,099
|
319
|
-
|
26,780
|
||||||||||||
Segregated funds net assets(3)
|
334,903
|
300,731
|
29,798
|
4,374
|
||||||||||||
Total
|
$
|
615,729
|
$
|
330,231
|
$
|
242,527
|
$
|
42,971
|
As at December 31, 2021
|
Total fair
value
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Cash and short-term securities
|
||||||||||||||||
FVTPL
|
$
|
2,214
|
$
|
-
|
$
|
2,214
|
$
|
-
|
||||||||
AFS
|
14,339
|
-
|
14,339
|
-
|
||||||||||||
Other
|
6,041
|
6,041
|
-
|
-
|
||||||||||||
Debt securities
|
||||||||||||||||
FVTPL
|
||||||||||||||||
Canadian government and agency
|
18,706
|
-
|
18,706
|
-
|
||||||||||||
U.S. government and agency
|
12,607
|
-
|
12,607
|
-
|
||||||||||||
Other government and agency
|
21,888
|
-
|
21,888
|
-
|
||||||||||||
Corporate
|
133,763
|
-
|
133,723
|
40
|
||||||||||||
Residential mortgage-backed securities
|
8
|
-
|
8
|
-
|
||||||||||||
Commercial mortgage-backed securities
|
1,103
|
-
|
1,103
|
-
|
||||||||||||
Other asset-backed securities
|
1,647
|
-
|
1,619
|
28
|
||||||||||||
AFS
|
||||||||||||||||
Canadian government and agency
|
3,964
|
-
|
3,964
|
-
|
||||||||||||
U.S. government and agency
|
18,792
|
-
|
18,792
|
-
|
||||||||||||
Other government and agency
|
2,871
|
-
|
2,871
|
-
|
||||||||||||
Corporate
|
7,332
|
-
|
7,331
|
1
|
||||||||||||
Residential mortgage-backed securities
|
1
|
-
|
1
|
-
|
||||||||||||
Commercial mortgage-backed securities
|
79
|
-
|
79
|
-
|
||||||||||||
Other asset-backed securities
|
58
|
-
|
58
|
-
|
||||||||||||
Public equities
|
||||||||||||||||
FVTPL
|
25,716
|
25,716
|
-
|
-
|
||||||||||||
AFS
|
2,351
|
2,349
|
2
|
-
|
||||||||||||
Real estate - investment property(1)
|
11,421
|
-
|
-
|
11,421
|
||||||||||||
Other invested assets(2)
|
24,300
|
257
|
-
|
24,043
|
||||||||||||
Segregated funds net assets(3)
|
399,788
|
361,447
|
34,060
|
4,281
|
||||||||||||
Total
|
$
|
708,989
|
$
|
395,810
|
$
|
273,365
|
$
|
39,814
|
(1) |
For real estate investment properties, the significant unobservable inputs are capitalization rates (ranging from 2.25% to 9.00% during the period and ranging from 2.25% to 9.00%
during the year 2021) and terminal capitalization rates (ranging from 3.25% to 9.50% during the period and ranging from 3.25% to 9.25% during the year 2021). Holding other factors constant, a lower capitalization or terminal
capitalization rate will tend to increase the fair value of an investment property. Changes in fair value based on variations in unobservable inputs generally cannot be extrapolated because the relationship between the directional changes
of each input is not usually linear.
|
(2) |
Other invested assets measured at fair value are held primarily in infrastructure and timber sectors. The significant inputs used in the valuation of the Company’s infrastructure
investments are primarily future distributable cash flows, terminal values and discount rates. Holding other factors constant, an increase to future distributable cash flows or terminal values would tend to increase the fair value of an
infrastructure investment, while an increase in the discount rate would have the opposite effect. Discount rates during the period ranged from 7.00% to 15.6% (for the year ended December 31, 2021 – ranged from 7.25% to 20.0%). Disclosure
of distributable cash flow and terminal value ranges are not meaningful given the disparity in estimates by project. The significant inputs used in the valuation of the Company’s investments in timberland properties are timber prices and
discount rates. Holding other factors constant, an increase to timber prices would tend to increase the fair value of a timberland investment, while an increase in the discount rates would have the opposite effect. Discount rates during
the period ranged from 4.5% to 7.0% (for the year ended December 31, 2021 – ranged from 4.5% to 7.0%). A range of prices for timber is not meaningful as the market price depends on factors such as property location and proximity to
markets and export yards.
|
(3) |
Segregated funds net assets are measured at fair value. The Company’s Level 3 segregated funds assets are predominantly in real estate investment properties and timberland
properties valued as described above.
|
As at June 30, 2022
|
Carrying
value
|
Total fair
value
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||||
Mortgages
|
$
|
53,422
|
$
|
50,964
|
$
|
-
|
$
|
-
|
$
|
50,964
|
||||||||||
Private placements
|
43,890
|
40,258
|
-
|
35,617
|
4,641
|
|||||||||||||||
Policy loans
|
6,510
|
6,510
|
-
|
6,510
|
-
|
|||||||||||||||
Loans to Bank clients
|
2,782
|
2,772
|
-
|
2,772
|
-
|
|||||||||||||||
Real estate - own use property
|
1,827
|
3,076
|
-
|
-
|
3,076
|
|||||||||||||||
Public Bonds HTM
|
1,343
|
1,064
|
-
|
1,064
|
-
|
|||||||||||||||
Other invested assets(1)
|
11,729
|
12,421
|
117
|
-
|
12,304
|
|||||||||||||||
Total invested assets disclosed at fair value
|
$
|
121,503
|
$
|
117,065
|
$
|
117
|
$
|
45,963
|
$
|
70,985
|
||||||||||
As at December 31, 2021
|
Carrying
value
|
Total fair
value
|
Level 1
|
Level 2
|
Level 3
|
|||||||||||||||
Mortgages
|
$
|
52,014
|
$
|
54,089
|
$
|
-
|
$
|
-
|
$
|
54,089
|
||||||||||
Private placements
|
42,842
|
47,276
|
-
|
42,110
|
5,166
|
|||||||||||||||
Policy loans
|
6,397
|
6,397
|
-
|
6,397
|
-
|
|||||||||||||||
Loans to Bank clients
|
2,506
|
2,503
|
-
|
2,503
|
-
|
|||||||||||||||
Real estate - own use property
|
1,812
|
3,024
|
-
|
-
|
3,024
|
|||||||||||||||
Public Bonds HTM
|
1,320
|
1,320
|
-
|
1,320
|
-
|
|||||||||||||||
Other invested assets(1)
|
11,006
|
11,665
|
120
|
-
|
11,545
|
|||||||||||||||
Total invested assets disclosed at fair value
|
$
|
117,897
|
$
|
126,274
|
$
|
120
|
$
|
52,330
|
$
|
73,824
|
(1) |
Other invested assets disclosed at fair value include $3,590 (December 31, 2021 – $3,457) of leveraged leases which are disclosed at their carrying values as fair value is not
routinely calculated on these investments.
|
For the three months ended
June 30, 2022
|
Balance,
April 1,
2022
|
Total
gains
(losses)
included
in net
income(1)
|
Total
gains
(losses)
included
in AOCI(2)
|
Purchases
|
Sales
|
Settlements
|
Transfer
in(3)
|
Transfer
out(3)
|
Currency
movement
|
Balance,
June 30,
2022
|
Change in
unrealized
gains
(losses)
on assets
still held
|
|||||||||||||||||||||||||||||||||
Debt securities
|
||||||||||||||||||||||||||||||||||||||||||||
FVTPL
|
||||||||||||||||||||||||||||||||||||||||||||
Corporate
|
$
|
13
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(1
|
)
|
$
|
-
|
$
|
12
|
$
|
-
|
|||||||||||||||||||||
Other securitized assets
|
26
|
2
|
-
|
-
|
-
|
-
|
-
|
-
|
(2
|
)
|
26
|
2
|
||||||||||||||||||||||||||||||||
AFS
|
||||||||||||||||||||||||||||||||||||||||||||
Other government & agency
|
10
|
-
|
-
|
-
|
-
|
-
|
(1
|
)
|
-
|
-
|
9
|
-
|
||||||||||||||||||||||||||||||||
Corporate
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||||||||||||||||||
Public equities
|
||||||||||||||||||||||||||||||||||||||||||||
FVTPL
|
1
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1
|
-
|
|||||||||||||||||||||||||||||||||
Investment property
|
11,551
|
99
|
-
|
45
|
(47
|
)
|
-
|
-
|
-
|
121
|
11,769
|
91
|
||||||||||||||||||||||||||||||||
Other invested assets
|
24,607
|
991
|
1
|
1,439
|
(267
|
)
|
(405
|
)
|
-
|
-
|
414
|
26,780
|
970
|
|||||||||||||||||||||||||||||||
Total invested assets
|
36,208
|
1,092
|
1
|
1,484
|
(314
|
)
|
(405
|
)
|
(1
|
)
|
(1
|
)
|
533
|
38,597
|
1,063
|
|||||||||||||||||||||||||||||
Derivatives, net
|
(27
|
)
|
(1,958
|
)
|
(47
|
)
|
1
|
-
|
58
|
-
|
(77
|
)
|
(11
|
)
|
(2,061
|
)
|
(1,920
|
)
|
||||||||||||||||||||||||||
Segregated funds net assets
|
4,379
|
68
|
-
|
79
|
(204
|
)
|
(18
|
)
|
-
|
(1
|
)
|
71
|
4,374
|
59
|
||||||||||||||||||||||||||||||
Total
|
$
|
40,560
|
$
|
(798
|
)
|
$
|
(46
|
)
|
$
|
1,564
|
$
|
(518
|
)
|
$
|
(365
|
)
|
$
|
(1
|
)
|
$
|
(79
|
)
|
$
|
593
|
$
|
40,910
|
$
|
(798
|
)
|
For the three months ended
June 30, 2021
|
Balance,
April 1,
2021
|
Total
gains
(losses)
included
in net
income(1)
|
Total
gains
(losses)
included
in AOCI(2)
|
Purchases
|
Sales
|
Settlements
|
Transfer
in(3)
|
Transfer
out(3)
|
Currency
movement
|
Balance,
June 30,
2021
|
Change in
unrealized
gains
(losses)
on assets
still held
|
|||||||||||||||||||||||||||||||||
Debt securities
|
||||||||||||||||||||||||||||||||||||||||||||
FVTPL
|
||||||||||||||||||||||||||||||||||||||||||||
Corporate
|
$
|
46
|
$
|
1
|
$
|
-
|
$
|
-
|
$
|
(20
|
)
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(1
|
)
|
$
|
26
|
$
|
7
|
||||||||||||||||||||
Other securitized assets
|
37
|
-
|
-
|
-
|
-
|
(12
|
)
|
-
|
-
|
-
|
25
|
(1
|
)
|
|||||||||||||||||||||||||||||||
AFS
|
||||||||||||||||||||||||||||||||||||||||||||
Corporate
|
2
|
-
|
1
|
-
|
(2
|
)
|
-
|
-
|
-
|
-
|
1
|
-
|
||||||||||||||||||||||||||||||||
Public equities
|
||||||||||||||||||||||||||||||||||||||||||||
FVTPL
|
-
|
1
|
-
|
40
|
(34
|
)
|
-
|
-
|
-
|
-
|
7
|
-
|
||||||||||||||||||||||||||||||||
Investment property
|
10,881
|
305
|
-
|
21
|
(252
|
)
|
-
|
-
|
-
|
(82
|
)
|
10,873
|
277
|
|||||||||||||||||||||||||||||||
Other invested assets
|
19,826
|
835
|
(4
|
)
|
1,378
|
(112
|
)
|
(377
|
)
|
-
|
-
|
(262
|
)
|
21,284
|
855
|
|||||||||||||||||||||||||||||
Total invested assets
|
30,792
|
1,142
|
(3
|
)
|
1,439
|
(420
|
)
|
(389
|
)
|
-
|
-
|
(345
|
)
|
32,216
|
1,138
|
|||||||||||||||||||||||||||||
Derivatives, net
|
60
|
1,277
|
(27
|
)
|
4
|
-
|
54
|
-
|
65
|
9
|
1,442
|
1,300
|
||||||||||||||||||||||||||||||||
Segregated funds net assets
|
4,195
|
103
|
-
|
8
|
(37
|
)
|
(8
|
)
|
-
|
-
|
(31
|
)
|
4,230
|
72
|
||||||||||||||||||||||||||||||
Total
|
$
|
35,047
|
$
|
2,522
|
$
|
(30
|
)
|
$
|
1,451
|
$
|
(457
|
)
|
$
|
(343
|
)
|
$
|
-
|
$
|
65
|
$
|
(367
|
)
|
$
|
37,888
|
$
|
2,510
|
(1)
|
These amounts are included in net investment income in the Consolidated Statements of Income except for the amount related to segregated funds
net assets, where the amount is recorded in changes in segregated funds net assets, refer to note 14.
|
(2)
|
These amounts are included in AOCI on the Consolidated Statements of Financial Position.
|
(3)
|
The Company uses fair values of the assets at the beginning of the period for assets transferred into and out of Level 3 except for
derivatives, where the Company uses fair value at the end of the period and at the beginning of the period, respectively.
|
For the six months ended
June 30, 2022
|
Balance,
January 1,
2022
|
Total
gains
(losses)
included
in net
income(1)
|
Total
gains
(losses)
included
in AOCI(2)
|
Purchases
|
Sales
|
Settlements
|
Transfer
in(3)
|
Transfer
out(3)
|
Currency
movement
|
Balance,
June 30,
2022
|
Change in
unrealized
gains
(losses)
on assets
still held
|
|||||||||||||||||||||||||||||||||
Debt securities
|
||||||||||||||||||||||||||||||||||||||||||||
FVTPL
|
||||||||||||||||||||||||||||||||||||||||||||
Corporate
|
$
|
40
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
(28
|
)
|
$
|
-
|
$
|
12
|
$
|
-
|
|||||||||||||||||||||
Other securitized assets
|
28
|
3
|
-
|
-
|
-
|
(2
|
)
|
-
|
-
|
(3
|
)
|
26
|
3
|
|||||||||||||||||||||||||||||||
AFS
|
||||||||||||||||||||||||||||||||||||||||||||
Other government & agency
|
-
|
-
|
-
|
-
|
-
|
-
|
9
|
-
|
-
|
9
|
-
|
|||||||||||||||||||||||||||||||||
Corporate
|
1
|
-
|
-
|
-
|
-
|
-
|
-
|
(1
|
)
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||||
Public equities
|
||||||||||||||||||||||||||||||||||||||||||||
FVTPL
|
-
|
1
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1
|
-
|
|||||||||||||||||||||||||||||||||
Investment property
|
11,421
|
380
|
-
|
95
|
(149
|
)
|
-
|
-
|
-
|
22
|
11,769
|
375
|
||||||||||||||||||||||||||||||||
Other invested assets
|
24,043
|
1,276
|
10
|
2,453
|
(298
|
)
|
(774
|
)
|
4
|
-
|
66
|
26,780
|
1,409
|
|||||||||||||||||||||||||||||||
Total invested assets
|
35,533
|
1,660
|
10
|
2,548
|
(447
|
)
|
(776
|
)
|
13
|
(29
|
)
|
85
|
38,597
|
1,787
|
||||||||||||||||||||||||||||||
Derivatives, net
|
2,101
|
(3,792
|
)
|
(26
|
)
|
1
|
-
|
170
|
-
|
(513
|
)
|
(2
|
)
|
(2,061
|
)
|
(3,255
|
)
|
|||||||||||||||||||||||||||
Segregated funds net assets
|
4,281
|
194
|
-
|
147
|
(255
|
)
|
(30
|
)
|
-
|
(1
|
)
|
38
|
4,374
|
93
|
||||||||||||||||||||||||||||||
Total
|
$
|
41,915
|
$
|
(1,938
|
)
|
$
|
(16
|
)
|
$
|
2,696
|
$
|
(702
|
)
|
$
|
(636
|
)
|
$
|
13
|
$
|
(543
|
)
|
$
|
121
|
$
|
40,910
|
$
|
(1,375
|
)
|
For the six months ended
June 30, 2021
|
Balance,
January 1,
2021
|
Total
gains
(losses)
included
in net
income(1)
|
Total
gains
(losses)
included
in AOCI(2)
|
Purchases
|
Sales
|
Settlements
|
Transfer
in(3)
|
Transfer
out(3)
|
Currency
movement
|
Balance,
June 30,
2021
|
Change in unrealized
gains
(losses)
on assets
still held
|
|||||||||||||||||||||||||||||||||
Debt securities
|
||||||||||||||||||||||||||||||||||||||||||||
FVTPL
|
||||||||||||||||||||||||||||||||||||||||||||
Corporate
|
$
|
510
|
$
|
9
|
$
|
-
|
$
|
-
|
$
|
(93
|
)
|
$
|
-
|
$
|
-
|
$
|
(397
|
)
|
$
|
(3
|
)
|
$
|
26
|
$
|
(9
|
)
|
||||||||||||||||||
Other securitized assets
|
45
|
2
|
-
|
-
|
(9
|
)
|
(12
|
)
|
-
|
-
|
(1
|
)
|
25
|
-
|
||||||||||||||||||||||||||||||
AFS
|
||||||||||||||||||||||||||||||||||||||||||||
Corporate
|
3
|
1
|
-
|
-
|
(3
|
)
|
-
|
-
|
-
|
-
|
1
|
-
|
||||||||||||||||||||||||||||||||
Public equities
|
||||||||||||||||||||||||||||||||||||||||||||
FVTPL
|
-
|
1
|
-
|
40
|
(34
|
)
|
-
|
-
|
-
|
-
|
7
|
-
|
||||||||||||||||||||||||||||||||
Investment property
|
10,982
|
262
|
-
|
80
|
(267
|
)
|
-
|
-
|
-
|
(184
|
)
|
10,873
|
233
|
|||||||||||||||||||||||||||||||
Other invested assets
|
19,049
|
1,446
|
(3
|
)
|
2,247
|
(260
|
)
|
(649
|
)
|
-
|
-
|
(546
|
)
|
21,284
|
1,501
|
|||||||||||||||||||||||||||||
Total invested assets
|
30,589
|
1,721
|
(3
|
)
|
2,367
|
(666
|
)
|
(661
|
)
|
-
|
(397
|
)
|
(734
|
)
|
32,216
|
1,725
|
||||||||||||||||||||||||||||
Derivatives, net
|
3,443
|
(1,900
|
)
|
3
|
12
|
-
|
(15
|
)
|
-
|
(93
|
)
|
(8
|
)
|
1,442
|
(1,672
|
)
|
||||||||||||||||||||||||||||
Segregated funds net assets
|
4,202
|
155
|
-
|
26
|
(86
|
)
|
(8
|
)
|
-
|
-
|
(59
|
)
|
4,230
|
97
|
||||||||||||||||||||||||||||||
Total
|
$
|
38,234
|
$
|
(24
|
)
|
$
|
-
|
$
|
2,405
|
$
|
(752
|
)
|
$
|
(684
|
)
|
$
|
-
|
$
|
(490
|
)
|
$
|
(801
|
)
|
$
|
37,888
|
$
|
150
|
(1)
|
These amounts are included in net investment income in the Consolidated Statements of Income except for the amount related to segregated funds
net assets, where the amount is recorded in changes in segregated funds net assets, refer to note 14.
|
(2)
|
These amounts are included in AOCI on the Consolidated Statements of Financial Position.
|
(3)
|
The Company uses fair values of the assets at the beginning of the year for assets transferred into and out of Level 3 except for
derivatives, where the Company uses fair value at the end of the period and at the beginning of the year, respectively.
|
Note 4 |
Derivative and Hedging Instruments
|
June 30, 2022
|
December 31, 2021
|
||||||||||||||||||||||||
As at
|
Notional
amount
|
Fair value
|
Notional
amount
|
Fair value
|
|||||||||||||||||||||
Type of hedge
|
Instrument type
|
Assets
|
Liabilities
|
Assets
|
Liabilities
|
||||||||||||||||||||
Derivatives in qualifying hedge accounting
relationships
|
|||||||||||||||||||||||||
Fair value hedges
|
Foreign currency swaps
|
$
|
46
|
$
|
2
|
$
|
-
|
$
|
57
|
$
|
1
|
$
|
1
|
||||||||||||
Cash flow hedges
|
Foreign currency swaps
|
1,139
|
-
|
232
|
1,251
|
5
|
379
|
||||||||||||||||||
Equity contracts | 212 |
5 | - | 145 | 10 | - | |||||||||||||||||||
Net investment hedges
|
Forward contracts
|
589
|
6
|
-
|
671
|
9
|
-
|
||||||||||||||||||
Total derivatives in qualifying hedge accounting
relationships
|
1,986
|
13
|
232
|
2,124
|
25
|
380
|
|||||||||||||||||||
Derivatives not designated in qualifying hedge
accounting relationships
|
|||||||||||||||||||||||||
Interest rate swaps
|
256,861
|
6,512
|
7,535
|
300,556
|
11,832
|
7,347
|
|||||||||||||||||||
Interest rate futures
|
10,930
|
-
|
-
|
11,944
|
-
|
-
|
|||||||||||||||||||
Interest rate options
|
8,803
|
231
|
-
|
10,708
|
514
|
-
|
|||||||||||||||||||
Foreign currency swaps
|
36,697
|
1,367
|
2,032
|
36,405
|
790
|
1,722
|
|||||||||||||||||||
Currency rate futures
|
2,370
|
-
|
-
|
3,086
|
-
|
-
|
|||||||||||||||||||
Forward contracts
|
43,683
|
245
|
3,879
|
45,295
|
2,674
|
562
|
|||||||||||||||||||
Equity contracts
|
15,789
|
388
|
316
|
18,577
|
1,667
|
27
|
|||||||||||||||||||
Credit default swaps
|
76
|
1
|
-
|
44
|
1
|
-
|
|||||||||||||||||||
Equity futures
|
4,393
|
-
|
-
|
11,359
|
-
|
-
|
|||||||||||||||||||
Total derivatives not designated in qualifying hedge
accounting relationships
|
379,602
|
8,744
|
13,762
|
437,974
|
17,478
|
9,658
|
|||||||||||||||||||
Total derivatives
|
$
|
381,588
|
$
|
8,757
|
$
|
13,994
|
$
|
440,098
|
$
|
17,503
|
$
|
10,038
|
Remaining term to maturity
|
||||||||||||||||||||
As at June 30, 2022
|
Less than
1 year
|
1 to 3
years
|
3 to 5
years
|
Over 5
years
|
Total
|
|||||||||||||||
Derivative assets
|
$
|
481
|
$
|
594
|
$
|
454
|
$
|
7,228
|
$
|
8,757
|
||||||||||
Derivative liabilities
|
2,511
|
1,604
|
979
|
8,900
|
13,994
|
|||||||||||||||
Remaining term to maturity
|
||||||||||||||||||||
As at December 31, 2021
|
Less than
1 year
|
1 to 3
years
|
3 to 5
years
|
Over 5
years
|
Total
|
|||||||||||||||
Derivative assets
|
$
|
2,500
|
$
|
1,803
|
$
|
1,000
|
$
|
12,200
|
$
|
17,503
|
||||||||||
Derivative liabilities
|
294
|
387
|
379
|
8,978
|
10,038
|
As at June 30, 2022
|
Fair value
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Derivative assets
|
||||||||||||||||
Interest rate contracts
|
$
|
6,798
|
$
|
-
|
$
|
6,526
|
$
|
272
|
||||||||
Foreign exchange contracts
|
1,565
|
-
|
1,564
|
1
|
||||||||||||
Equity contracts
|
393
|
-
|
362
|
31
|
||||||||||||
Credit default swaps
|
1
|
-
|
1
|
-
|
||||||||||||
Total derivative assets
|
$
|
8,757
|
$
|
-
|
$
|
8,453
|
$
|
304
|
||||||||
Derivative liabilities
|
||||||||||||||||
Interest rate contracts
|
$
|
11,280
|
$
|
-
|
$
|
8,937
|
$
|
2,343
|
||||||||
Foreign exchange contracts
|
2,398
|
-
|
2,396
|
2
|
||||||||||||
Equity contracts
|
316
|
-
|
296
|
20
|
||||||||||||
Total derivative liabilities
|
$
|
13,994
|
$
|
-
|
$
|
11,629
|
$
|
2,365
|
||||||||
As at December 31, 2021
|
Fair value
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Derivative assets
|
||||||||||||||||
Interest rate contracts
|
$
|
14,971
|
$
|
-
|
$
|
12,510
|
$
|
2,461
|
||||||||
Foreign exchange contracts
|
854
|
-
|
854
|
-
|
||||||||||||
Equity contracts
|
1,677
|
-
|
1,616
|
61
|
||||||||||||
Credit default swaps
|
1
|
-
|
1
|
-
|
||||||||||||
Total derivative assets
|
$
|
17,503
|
$
|
-
|
$
|
14,981
|
$
|
2,522
|
||||||||
Derivative liabilities
|
||||||||||||||||
Interest rate contracts
|
$
|
7,829
|
$
|
-
|
$
|
7,419
|
$
|
410
|
||||||||
Foreign exchange contracts
|
2,182
|
-
|
2,181
|
1
|
||||||||||||
Equity contracts
|
27
|
-
|
17
|
10
|
||||||||||||
Total derivative liabilities
|
$
|
10,038
|
$
|
-
|
$
|
9,617
|
$
|
421
|
Note 5 |
Insurance and Investment Contract Liabilities
|
(a) |
Insurance and investment contracts
|
(b) |
Investment contracts – Fair value measurement
|
(c) |
Gross claims and benefits
|
three months ended
June 30,
|
six months ended
June 30,
|
|||||||||||||||
For the
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Death, disability and other claims
|
$
|
4,432
|
$
|
4,440
|
$
|
9,670
|
$
|
9,156
|
||||||||
Maturity and surrender benefits
|
2,688
|
2,274
|
5,054
|
4,340
|
||||||||||||
Annuity payments
|
812
|
787
|
1,623
|
1,629
|
||||||||||||
Policyholder dividends and experience rating refunds
|
304
|
287
|
629
|
516
|
||||||||||||
Net transfers from segregated funds
|
(347
|
)
|
(151
|
)
|
(570
|
)
|
(361
|
)
|
||||||||
Total
|
$
|
7,889
|
$
|
7,637
|
$
|
16,406
|
$
|
15,280
|
(d) |
Reinsurance transaction
|
Note 6 |
Risk Management
|
(a) |
Risk disclosures included in the Second Quarter’s MD&A
|
(b) |
Credit risk
|
(I) |
Credit quality
|
As at June 30, 2022
|
AAA
|
AA
|
A |
|
BBB
|
BB
|
B and lower
|
Total
|
||||||||||||||||||||
Commercial mortgages
|
||||||||||||||||||||||||||||
Retail
|
$
|
123
|
$
|
1,392
|
$
|
4,947
|
$
|
2,077
|
$
|
188
|
$
|
2
|
$
|
8,729
|
||||||||||||||
Office
|
105
|
1,404
|
5,785
|
1,433
|
85
|
39
|
8,851
|
|||||||||||||||||||||
Multi-family residential
|
555
|
2,074
|
3,759
|
844
|
10
|
-
|
7,242
|
|||||||||||||||||||||
Industrial
|
52
|
715
|
3,057
|
434
|
-
|
-
|
4,258
|
|||||||||||||||||||||
Other
|
201
|
939
|
749
|
711
|
46
|
-
|
2,646
|
|||||||||||||||||||||
Total commercial
mortgages
|
1,036
|
6,524
|
18,297
|
5,499
|
329
|
41
|
31,726
|
|||||||||||||||||||||
Agricultural mortgages
|
-
|
-
|
117
|
237
|
-
|
-
|
354
|
|||||||||||||||||||||
Private placements
|
939
|
6,503
|
15,887
|
16,592
|
923
|
3,046
|
43,890
|
|||||||||||||||||||||
Total
|
$
|
1,975
|
$
|
13,027
|
$
|
34,301
|
$
|
22,328
|
$
|
1,252
|
$
|
3,087
|
$
|
75,970
|
||||||||||||||
As at December 31, 2021
|
AAA
|
AA
|
A |
|
BBB
|
BB
|
B and lower
|
Total
|
||||||||||||||||||||
Commercial mortgages
|
||||||||||||||||||||||||||||
Retail
|
$
|
113
|
$
|
1,340
|
$
|
5,179
|
$
|
1,936
|
$
|
228
|
$
|
2
|
$
|
8,798
|
||||||||||||||
Office
|
56
|
1,256
|
6,004
|
1,291
|
87
|
40
|
8,734
|
|||||||||||||||||||||
Multi-family residential
|
557
|
1,869
|
3,771
|
767
|
32
|
-
|
6,996
|
|||||||||||||||||||||
Industrial
|
47
|
376
|
2,808
|
328
|
-
|
-
|
3,559
|
|||||||||||||||||||||
Other
|
212
|
1,010
|
787
|
956
|
47
|
-
|
3,012
|
|||||||||||||||||||||
Total commercial
mortgages
|
985
|
5,851
|
18,549
|
5,278
|
394
|
42
|
31,099
|
|||||||||||||||||||||
Agricultural mortgages
|
-
|
-
|
119
|
242
|
-
|
-
|
361
|
|||||||||||||||||||||
Private placements
|
976
|
5,721
|
16,147
|
16,220
|
1,161
|
2,618
|
42,843
|
|||||||||||||||||||||
Total
|
$
|
1,961
|
$
|
11,572
|
$
|
34,815
|
$
|
21,740
|
$
|
1,555
|
$
|
2,660
|
$
|
74,303
|
As at
|
June 30, 2022
|
December 31, 2021
|
||||||||||||||||||||||
Insured
|
Uninsured
|
Total
|
Insured
|
Uninsured
|
Total
|
|||||||||||||||||||
Residential mortgages
|
||||||||||||||||||||||||
Performing
|
$
|
7,379
|
$
|
13,945
|
$
|
21,324
|
$
|
7,264
|
$
|
13,272
|
$
|
20,536
|
||||||||||||
Non-performing(1)
|
3
|
15
|
18
|
6
|
12
|
18
|
||||||||||||||||||
Loans to Bank clients
|
||||||||||||||||||||||||
Performing
|
n/a
|
2,782
|
2,782
|
n/a
|
2,506
|
2,506
|
||||||||||||||||||
Non-performing(1)
|
n/a
|
-
|
-
|
n/a
|
-
|
-
|
||||||||||||||||||
Total
|
$
|
7,382
|
$
|
16,742
|
$
|
24,124
|
$
|
7,270
|
$
|
15,790
|
$
|
23,060
|
(1) |
Non-performing refers to payments that are 90 days or more past due.
|
(II) |
Past due or credit impaired financial assets
|
Past due but not impaired
|
||||||||||||||||||||
As at June 30, 2022
|
Less than 90
days
|
90 days and
greater
|
Total
|
Total
impaired
|
Allowance
for credit
losses
|
|||||||||||||||
Debt securities(1)
|
||||||||||||||||||||
FVTPL
|
$
|
3,156
|
$
|
2
|
$
|
3,158
|
$
|
2
|
$
|
-
|
||||||||||
AFS
|
283
|
-
|
283
|
-
|
-
|
|||||||||||||||
Private placements
|
215
|
-
|
215
|
212
|
25
|
|||||||||||||||
Mortgages and loans to Bank clients
|
69
|
-
|
69
|
50
|
22
|
|||||||||||||||
Other financial assets
|
77
|
39
|
116
|
1
|
-
|
|||||||||||||||
Total
|
$
|
3,800
|
$
|
41
|
$
|
3,841
|
$
|
265
|
$
|
47
|
||||||||||
Past due but not impaired
|
||||||||||||||||||||
As at December 31, 2021
|
Less than 90
days
|
90 days and
greater
|
Total
|
Total
impaired
|
Allowance
for credit
losses
|
|||||||||||||||
Debt securities
|
||||||||||||||||||||
FVTPL
|
$
|
20
|
$
|
-
|
$
|
20
|
$
|
2
|
$
|
-
|
||||||||||
AFS
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Private placements
|
63
|
-
|
63
|
175
|
22
|
|||||||||||||||
Mortgages and loans to Bank clients
|
61
|
-
|
61
|
51
|
22
|
|||||||||||||||
Other financial assets
|
261
|
47
|
308
|
-
|
-
|
|||||||||||||||
Total
|
$
|
405
|
$
|
47
|
$
|
452
|
$
|
228
|
$
|
44
|
(1) |
Payments of $35 on $3,439 (December 31, 2021 – $nil and $20, respectively) of debt securities past due less than 90 days are delayed due to operational issues among custodian
banks rather than credit deterioration among issuers.
|
(c) |
Securities lending, repurchase and reverse repurchase transactions
|
(d) |
Credit default swaps
|
As at June 30, 2022
|
Notional
amount(1)
|
Fair value
|
Weighted
average
maturity
(in years)(2)
|
|||||||||
Single name CDS(3),(4) – Corporate debt
|
||||||||||||
A
|
$
|
52
|
$
|
1
|
4
|
|||||||
BBB
|
24
|
-
|
2
|
|||||||||
Total single name CDS
|
$
|
76
|
$
|
1
|
3
|
|||||||
Total CDS protection sold
|
$
|
76
|
$
|
1
|
3
|
As at December 31, 2021
|
Notional
amount(1)
|
Fair value
|
Weighted
average
maturity
(in years)(2)
|
|||||||||
Single name CDS(3),(4) – Corporate debt
|
||||||||||||
A
|
$
|
16
|
$
|
-
|
1
|
|||||||
BBB
|
28
|
1
|
2
|
|||||||||
Total single name CDS
|
$
|
44
|
$
|
1
|
2
|
|||||||
Total CDS protection sold
|
$
|
44
|
$
|
1
|
2
|
(1)
|
Notional amounts represent the maximum future payments the Company would have to pay its CDS counterparties assuming a default of the
underlying credit and zero recovery on the underlying issuer obligations.
|
(2)
|
The weighted average maturity of the CDS is weighted based on notional amounts.
|
(3)
|
Ratings are based on S&P where available followed by Moody’s, DBRS, and Fitch. If no rating is available from a rating agency, an
internally developed rating is used.
|
(4)
|
The Company held no purchased credit protection.
|
(e)
|
Derivatives
|
(f) |
Offsetting financial assets and financial liabilities
|
Related amounts not set off in the
Consolidated Statements of
Financial Position
|
||||||||||||||||||||
As at June 30, 2022
|
Gross amounts of
financial
instruments(1)
|
Amounts subject
to an enforceable
master netting
arrangement or
similar
agreements
|
Financial and
cash collateral
pledged
(received)(2)
|
Net amount
including
financing
entity(3)
|
Net amounts
excluding
financing
entity
|
|||||||||||||||
Financial assets
|
||||||||||||||||||||
Derivative assets
|
$
|
9,221
|
$
|
(7,400
|
)
|
$
|
(1,692
|
)
|
$
|
129
|
$
|
129
|
||||||||
Securities lending
|
844
|
-
|
(844
|
)
|
-
|
-
|
||||||||||||||
Reverse repurchase agreements
|
580
|
-
|
(580
|
)
|
-
|
-
|
||||||||||||||
Total financial assets
|
$
|
10,645
|
$
|
(7,400
|
)
|
$
|
(3,116
|
)
|
$
|
129
|
$
|
129
|
||||||||
Financial liabilities
|
||||||||||||||||||||
Derivative liabilities
|
$
|
(14,666
|
)
|
$
|
7,400
|
$
|
7,153
|
$
|
(113
|
)
|
$
|
(61
|
)
|
|||||||
Repurchase agreements
|
(596
|
)
|
-
|
596
|
-
|
-
|
||||||||||||||
Total financial liabilities
|
$
|
(15,262
|
)
|
$
|
7,400
|
$
|
7,749
|
$
|
(113
|
)
|
$
|
(61
|
)
|
|||||||
Related amounts not set off in the
Consolidated Statements of
Financial Position
|
||||||||||||||||||||
As at December 31, 2021
|
Gross amounts of
financial
instruments(1)
|
Amounts subject
to an enforceable
master netting
arrangement or
similar
agreements
|
Financial and
cash collateral
pledged
(received)(2)
|
Net amount
including
financing
entity(3)
|
Net amounts
excluding
financing
entity
|
|||||||||||||||
Financial assets
|
||||||||||||||||||||
Derivative assets
|
$
|
18,226
|
$
|
(8,410
|
)
|
$
|
(9,522
|
)
|
$
|
294
|
$
|
294
|
||||||||
Securities lending
|
564
|
-
|
(564
|
)
|
-
|
-
|
||||||||||||||
Reverse repurchase agreements
|
1,490
|
(183
|
)
|
(1,307
|
)
|
-
|
-
|
|||||||||||||
Total financial assets
|
$
|
20,280
|
$
|
(8,593
|
)
|
$
|
(11,393
|
)
|
$
|
294
|
$
|
294
|
||||||||
Financial liabilities
|
||||||||||||||||||||
Derivative liabilities
|
$
|
(10,940
|
)
|
$
|
8,410
|
$
|
2,250
|
$
|
(280
|
)
|
$
|
(79
|
)
|
|||||||
Repurchase agreements
|
(536
|
)
|
183
|
353
|
-
|
-
|
||||||||||||||
Total financial liabilities
|
$
|
(11,476
|
)
|
$
|
8,593
|
$
|
2,603
|
$
|
(280
|
)
|
$
|
(79
|
)
|
(1) |
Financial assets and liabilities include accrued interest of $467 and $672, respectively (December 31, 2021 – $725 and $902, respectively).
|
(2) |
Financial and cash collateral exclude over-collateralization. As at June 30, 2022, the Company was over-collateralized on OTC derivative assets, OTC derivative liabilities,
securities lending and reverse repurchase agreements and repurchase agreements in the amounts of $736, $2,257, $22 and $3, respectively (December 31, 2021 – $599, $875, $36 and $2, respectively). As at June 30, 2022, collateral pledged
(received) does not include collateral-in-transit on OTC instruments or include initial margin on exchange traded contracts or cleared contracts.
|
(3) |
Includes derivative contracts entered between the Company and its unconsolidated financing entity (refer to note 12). The Company does not exchange collateral on derivative
contracts entered with this entity.
|
As at June 30, 2022
|
Gross amounts of
financial
instruments
|
Amounts subject to
an enforceable
netting
arrangement
|
Net amounts of
financial
instruments
|
|||||||||
Credit linked note
|
$
|
1,127
|
$
|
(1,127
|
)
|
$
|
-
|
|||||
Variable surplus note
|
(1,127
|
)
|
1,127
|
-
|
||||||||
As at December 31, 2021
|
Gross amounts of
financial
instruments
|
Amounts subject to
an enforceable
netting
arrangement
|
Net amounts of
financial
instruments
|
|||||||||
Credit linked note
|
$
|
1,054
|
$
|
(1,054
|
)
|
$
|
-
|
|||||
Variable surplus note
|
(1,054
|
)
|
1,054
|
-
|
Note 7 |
Long-Term Debt
|
(a) |
Carrying value of long-term debt instruments
|
June 30,
|
December 31,
|
||||||||||
As at
|
Issue date
|
Maturity date
|
Par value
|
2022
|
2021
|
||||||
3.050% Senior notes(1)
|
August 27, 2020
|
August 27, 2060
|
US$1,155
|
$
|
1,482
|
$
|
1,455
|
||||
5.375% Senior notes(1)
|
March 4, 2016
|
March 4, 2046
|
US$750
|
956
|
939
|
||||||
3.703% Senior notes(1),(2)
|
March 16, 2022
|
March 16, 2032
|
US$750
|
961
|
-
|
||||||
2.396% Senior notes(1)
|
June 1, 2020
|
June 1, 2027
|
US$200
|
257
|
253
|
||||||
2.484% Senior notes(1)
|
May 19, 2020
|
May 19, 2027
|
US$500
|
641
|
630
|
||||||
3.527% Senior notes(1)
|
December 2, 2016
|
December 2, 2026
|
US$270
|
348
|
342
|
||||||
4.150% Senior notes(1)
|
March 4, 2016
|
March 4, 2026
|
US$1,000
|
1,286
|
1,263
|
||||||
Total
|
$
|
5,931
|
$
|
4,882
|
(1) |
These U.S. dollar senior notes have been designated as hedges of the Company’s net investment in its U.S. operations which reduces the earnings volatility that would otherwise
arise from the re-measurement of these senior notes into Canadian dollars.
|
(2) |
Issued by MFC during the first quarter, interest is payable semi-annually. The Company may redeem the senior notes in whole or in part, at any time, at a redemption price equal to
the greater of par and a price based on the yield of a corresponding U.S. Treasury bond, from redemption date to December 16, 2031, plus 25 bps, together with accrued and unpaid interest.
|
(b) |
Fair value measurement
|
Note 8 |
Capital Instruments
|
(a) |
Carrying value of capital instruments
|
As at
|
Issue date
|
Earliest par redemption
date
|
Maturity date
|
Par
value
|
June 30,
2022
|
December 31,
2021
|
||||||||||||
JHFC Subordinated notes(1)
|
December 14, 2006
|
n/a
|
December 15, 2036
|
$650
|
$
|
647
|
$
|
647
|
||||||||||
2.818% MFC Subordinated debentures(1)
|
May 12, 2020
|
May 13, 2030
|
May 13, 2035
|
$1,000
|
996
|
995
|
||||||||||||
4.061% MFC Subordinated notes(1),(2)
|
February 24, 2017
|
February 24, 2027
|
February 24, 2032
|
US$750
|
964
|
947
|
||||||||||||
2.237% MFC Subordinated debentures(1)
|
May 12, 2020
|
May 12, 2025
|
May 12, 2030
|
$1,000
|
997
|
997
|
||||||||||||
3.00% MFC Subordinated notes(1)
|
November 21, 2017
|
November 21, 2024
|
November 21, 2029
|
S$500
|
462
|
469
|
||||||||||||
3.049% MFC Subordinated debentures(1)
|
August 18, 2017
|
August 20, 2024
|
August 20, 2029
|
$750
|
749
|
748
|
||||||||||||
3.317% MFC Subordinated debentures(1)
|
May 9, 2018
|
May 9, 2023
|
May 9, 2028
|
$600
|
599
|
599
|
||||||||||||
3.181% MLI Subordinated debentures(1)
|
November 20, 2015
|
November 22, 2022
|
November 22, 2027
|
$1,000
|
1,000
|
999
|
||||||||||||
7.375% JHUSA Surplus notes
|
February 25, 1994
|
n/a
|
February 15, 2024
|
US$450
|
587
|
579
|
||||||||||||
Total
|
$
|
7,001
|
$
|
6,980
|
(1) |
The Company is monitoring regulatory and market developments globally with respect to the interest rate benchmark reform. As these rates could potentially be discontinued in the
future, the Company will take appropriate actions in due course to accomplish the necessary transitions or replacements. As at June 30, 2022, capital instruments of $647 (December 31, 2021 – $647) have interest rate referencing CDOR. In
addition, capital instruments of $4,341, $964, and $462 (December 31, 2021 – $4,338, $947, and $469, respectively) have interest rate reset in the future referencing CDOR, the USD Mid-Swap rate, and the SGD swap rate, respectively.
|
(2) |
Designated as a hedge of the Company’s net investment in its U.S. operations which reduces the earnings volatility that would otherwise arise from the re-measurement of the
subordinated notes into Canadian dollars.
|
(b) |
Fair value measurement
|
Note 9 |
Equity Capital and Earnings Per Share
|
(a) |
Preferred shares and other equity instruments
|
Annual
|
Earliest
|
Number of
|
Net amount(4)
|
||||||||||||||||||||||
dividend rate/
|
redemption
|
shares
|
Face
|
June 30,
|
December 31,
|
||||||||||||||||||||
As at
|
Issue date
|
distribution(1)
|
date(2),(3)
|
(in millions)
|
amount
|
2022
|
2021
|
||||||||||||||||||
Preferred shares
|
|||||||||||||||||||||||||
Class A preferred shares
|
|||||||||||||||||||||||||
Series 2
|
February 18, 2005
|
4.65
|
%
|
n/a
|
14
|
$
|
350
|
$
|
344
|
$
|
344
|
||||||||||||||
Series 3
|
January 3, 2006
|
4.50
|
%
|
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 7(8)
|
February 22, 2012
|
4.312
|
%
|
March 19, 2022
|
10
|
250
|
-
|
244
|
|||||||||||||||||
Series 9(5),(6)
|
May 24, 2012
|
4.351
|
%
|
September 19, 2022
|
10
|
250
|
244
|
244
|
|||||||||||||||||
Series 11(5),(6)
|
December 4, 2012
|
4.731
|
%
|
March 19, 2023
|
8
|
200
|
196
|
196
|
|||||||||||||||||
Series 13(5),(6)
|
June 21, 2013
|
4.414
|
%
|
September 19, 2023
|
8
|
200
|
196
|
196
|
|||||||||||||||||
Series 15(5),(6)
|
February 25, 2014
|
3.786
|
%
|
June 19, 2024
|
8
|
200
|
195
|
195
|
|||||||||||||||||
Series 17(5),(6)
|
August 15, 2014
|
3.80
|
%
|
December 19, 2024
|
14
|
350
|
343
|
343
|
|||||||||||||||||
Series 19(5),(6)
|
December 3, 2014
|
3.675
|
%
|
March 19, 2025
|
10
|
250
|
246
|
246
|
|||||||||||||||||
Series 23(8)
|
November 22, 2016
|
4.85
|
%
|
March 19, 2022
|
19
|
475
|
-
|
467
|
|||||||||||||||||
Series 25(5),(6)
|
February 20, 2018
|
4.70
|
%
|
June 19, 2023
|
10
|
250
|
245
|
245
|
|||||||||||||||||
Other equity instruments
|
|||||||||||||||||||||||||
Limited recourse capital notes
|
|||||||||||||||||||||||||
Series 1(9),(12)
|
February 19, 2021
|
3.375
|
%
|
May 19, 2026
|
n/a
|
2,000
|
1,982
|
1,982
|
|||||||||||||||||
Series 2(10),(12)
|
November 12, 2021
|
4.100
|
%
|
February 19, 2027
|
n/a
|
1,200
|
1,189
|
1,189
|
|||||||||||||||||
Series 3(11),(12)
|
June 16, 2022
|
7.117
|
%
|
June 19, 2027
|
n/a
|
1,000
|
990
|
-
|
|||||||||||||||||
Total
|
131
|
$
|
7,475
|
$
|
6,660
|
$
|
6,381
|
(1) |
Holders of Class A and Class 1 preferred shares are entitled to receive non-cumulative preferential cash dividends on a quarterly basis, as and when declared by
the Board of Directors. Non-deferrable distributions are payable to LRCN – Series 1 holders semi-annually at the Company’s discretion.
|
(2) |
Redemption of all preferred shares is subject to regulatory approval. MFC may redeem each series, in whole or in part, at par, on the earliest redemption
date or every five years thereafter, except for Class A Series 2, Class A Series 3 and Class 1 Series 4 preferred shares. Class A Series 2 and Series 3 preferred shares are past their respective earliest redemption date and MFC may redeem
these shares, in whole or in part, at par at any time, subject to regulatory approval, as noted. MFC may redeem the Class 1 Series 4, in whole or in part, at any time, at $25.00 per share if redeemed on June 19, 2026 (the earliest
redemption date) and on June 19 every five years thereafter, or at $25.50 per share if redeemed on any other date after June 19, 2021, subject to regulatory approval, as noted.
|
(3) |
Redemption of all LRCN series is subject to regulatory approval. MFC may at its option redeem each series in whole or in part, at a redemption price equal to
par, together with accrued and unpaid interest. The redemption period for Series 1 is every five years during the period from May 19 to and including June 19, commencing in 2026. The redemption period for Series 2 is every five years
during the period from February 19 to and including March 19, commencing in 2027. After the first redemption date, the redemption period for Series 3 is every five years during the period from May 19 to and including June 19, commencing
in 2032.
|
(4) |
Net of after-tax issuance costs.
|
(5) |
On the earliest redemption date and every five years thereafter, the annual dividend rate will be reset to the five-year Government of Canada bond yield plus a yield specified for
each series. The specified yield for Class 1 preferred shares is: Series 3 – 1.41%, Series 9 – 2.86%, Series 11 – 2.61%, Series 13 – 2.22%, Series 15 – 2.16%, Series 17 – 2.36%, Series 19 – 2.30%, and Series 25 – 2.55%.
|
(6) |
On the earliest redemption date and every five years thereafter, Class 1 preferred shares are convertible at the option of the holder into a new series that is one number higher
than their existing series, and the holders are entitled to non-cumulative preferential cash dividends, payable quarterly if and when declared by the Board of Directors, at a rate equal to the three-month Government of Canada Treasury
bill yield plus the rate specified in footnote 5 above.
|
(7) |
The floating dividend rate for the Class 1 Series 4 shares equals the three-month Government of Canada Treasury bill yield plus 1.41%.
|
(8) |
MFC redeemed in full the Class 1 Series 7 and Class 1 Series 23 preferred shares at par, on March 19, 2022, the earliest par redemption date.
|
(9) |
The LRCN – Series 1 distribute at a fixed rate of 3.375% payable semi-annually, until June 18, 2026. On June 19, 2026 and every five years thereafter until
June 19, 2076, the rate on the LRCN – Series 1 will be reset at a rate equal to the five-year Government of Canada yield as defined in the prospectus, plus 2.839%. Non-deferrable distributions are payable semi-annually on the LRCN –
Series 1 at the Company’s discretion. Non-payment of distributions or principal when due will result in a recourse event, with the noteholders’ sole remedy being receipt of their proportionate share of Class 1 Series 27 preferred shares
held in a consolidated trust (the Limited Recourse Trust).
|
(10) |
The LRCN – Series 2 distribute at a fixed rate of 4.10% payable semi-annually, until March 18, 2027. On March 19, 2027 and every five years thereafter until
March 19, 2077, the rate on the LRCN – Series 2 will be reset at a rate equal to the five-year Government of Canada yield as defined in the prospectus, plus 2.704%. Non-deferrable distributions are payable semi-annually on the LRCN –
Series 2 at the Company’s discretion. Non-payment of distributions or principal when due will result in a recourse event, with the noteholders’ sole remedy being receipt of their proportionate share of Class 1 Series 28 preferred shares
held in the Limited Recourse Trust.
|
(11) |
The LRCN Series 3 distribute at a fixed rate of 7.117% payable semi-annually, until June 18, 2027. On June 19, 2027 and every five years thereafter until
June 19, 2077, the rate on the LRCN Series 3 will be reset at a rate equal to the five-year Government of Canada yield as defined in the prospectus, plus 3.95%. Non-deferrable distributions are payable semi-annually on the LRCN Series 3
at the Company’s discretion. Non-payment of distributions or principal when due will result in a recourse event, with the noteholders’ sole remedy being receipt of their proportionate share of Class 1 Series 29 preferred shares held in
the Limited Recourse Trust.
|
(12) |
All claims of the holders of LRCN series against MFC will be extinguished upon receipt of the corresponding trust assets. The Class 1 Series 27, Class 1
Series 28, and Class 1 Series 29 preferred shares are eliminated on the Company’s Consolidated Statements of Financial Position while being held in the Limited Recourse Trust.
|
(b) |
Common shares
|
For the
|
six months ended
|
year ended
|
||||||
Number of common shares (in millions)
|
June 30, 2022
|
December 31, 2021
|
||||||
Balance, beginning of period
|
1,943
|
1,940
|
||||||
Purchased for cancellation
|
(33
|
)
|
-
|
|||||
Issued on exercise of stock options and deferred share units
|
1
|
3
|
||||||
Balance, end of period
|
1,911
|
1,943
|
(c) |
Earnings per share
|
three months ended
|
six months ended
|
|||||||||||||||
For the
|
June 30,
|
June 30,
|
||||||||||||||
(in millions)
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Weighted average number of common shares
|
1,921
|
|
1,942
|
1,930
|
1,942
|
|||||||||||
Dilutive stock-based awards(1)
|
3
|
|
4
|
3
|
4
|
|||||||||||
Weighted average number of diluted common shares
|
1,924
|
|
1,946
|
1,933
|
1,946
|
(1)
|
The dilutive effect of stock-based awards was calculated using the treasury stock method. This method calculates the number of incremental shares by assuming
the outstanding stock-based awards are (i) exercised and (ii) then reduced by the number of shares assumed to be repurchased from the issuance proceeds, using the average market price of MFC common shares for the period.
|
Note 10 |
Revenue from Service Contracts
|
For the three months ended June 30, 2022
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
||||||||||||||||||
Investment management and other related fees
|
$
|
58
|
$
|
61
|
$
|
107
|
$
|
761
|
$
|
(60
|
)
|
$
|
927
|
|||||||||||
Transaction processing, administration, and service fees
|
71
|
216
|
3
|
595
|
(4
|
)
|
881
|
|||||||||||||||||
Distribution fees and other
|
36
|
7
|
23
|
189
|
(18
|
)
|
237
|
|||||||||||||||||
Total included in other revenue
|
165
|
284
|
133
|
1,545
|
(82
|
)
|
2,045
|
|||||||||||||||||
Revenue from non-service lines
|
115
|
39
|
(25
|
)
|
(4
|
)
|
(113
|
)
|
12
|
|||||||||||||||
Total other revenue
|
$
|
280
|
$
|
323
|
$
|
108
|
$
|
1,541
|
$
|
(195
|
)
|
$
|
2,057
|
|||||||||||
Real estate management services included
in net investment income
|
$
|
7
|
$
|
34
|
$
|
32
|
$
|
-
|
$
|
2
|
$
|
75
|
For the three months ended June 30, 2021
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
||||||||||||||||||
Investment management and other related fees
|
$
|
40
|
$
|
57
|
$
|
123
|
$
|
775
|
$
|
(61
|
)
|
$
|
934
|
|||||||||||
Transaction processing, administration, and service fees
|
70
|
224
|
2
|
616
|
(3
|
)
|
909
|
|||||||||||||||||
Distribution fees and other
|
74
|
4
|
17
|
194
|
(22
|
)
|
267
|
|||||||||||||||||
Total included in other revenue
|
184
|
285
|
142
|
1,585
|
(86
|
)
|
2,110
|
|||||||||||||||||
Revenue from non-service lines
|
219
|
37
|
338
|
1
|
55
|
650
|
||||||||||||||||||
Total other revenue
|
$
|
403
|
$
|
322
|
$
|
480
|
$
|
1,586
|
$
|
(31
|
)
|
$
|
2,760
|
|||||||||||
Real estate management services included
in net investment income
|
$
|
9
|
$
|
31
|
$
|
35
|
$
|
-
|
$
|
1
|
$
|
76
|
For the six months ended June 30, 2022
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
||||||||||||||||||
Investment management and other related fees
|
$
|
117
|
$
|
122
|
$
|
221
|
$
|
1,562
|
$
|
(122
|
)
|
$
|
1,900
|
|||||||||||
Transaction processing, administration, and service fees
|
145
|
445
|
6
|
1,217
|
(3
|
)
|
1,810
|
|||||||||||||||||
Distribution fees and other
|
79
|
12
|
41
|
391
|
(29
|
)
|
494
|
|||||||||||||||||
Total included in other revenue
|
341
|
579
|
268
|
3,170
|
(154
|
)
|
4,204
|
|||||||||||||||||
Revenue from non-service lines
|
231
|
122
|
(319
|
)
|
(5
|
)
|
(185
|
)
|
(156
|
)
|
||||||||||||||
Total other revenue
|
$
|
572
|
$
|
701
|
$
|
(51
|
)
|
$
|
3,165
|
$
|
(339
|
)
|
$
|
4,048
|
||||||||||
Real estate management services included
in net investment income
|
$
|
19
|
$
|
69
|
$
|
65
|
$
|
-
|
$
|
4
|
$
|
157
|
For the six months ended June 30, 2021
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
||||||||||||||||||
Investment management and other related fees
|
$
|
83
|
$
|
112
|
$
|
245
|
$
|
1,519
|
$
|
(117
|
)
|
$
|
1,842
|
|||||||||||
Transaction processing, administration, and service fees
|
141
|
438
|
6
|
1,215
|
(7
|
)
|
1,793
|
|||||||||||||||||
Distribution fees and other
|
148
|
8
|
34
|
387
|
(28
|
)
|
549
|
|||||||||||||||||
Total included in other revenue
|
372
|
558
|
285
|
3,121
|
(152
|
)
|
4,184
|
|||||||||||||||||
Revenue from non-service lines
|
548
|
115
|
494
|
(2
|
)
|
58
|
1,213
|
|||||||||||||||||
Total other revenue
|
$
|
920
|
$
|
673
|
$
|
779
|
$
|
3,119
|
$
|
(94
|
)
|
$
|
5,397
|
|||||||||||
Real estate management services included
in net investment income
|
$
|
19
|
$
|
65
|
$
|
64
|
$
|
-
|
$
|
3
|
$
|
151
|
Note 11 |
Employee Future Benefits
|
Pension plans
|
Retiree welfare plans(1)
|
|||||||||||||||
For the three months ended June 30,
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Defined benefit current service cost
|
$
|
11
|
$
|
11
|
$
|
-
|
$
|
-
|
||||||||
Defined benefit administrative expenses
|
2
|
3
|
1
|
1
|
||||||||||||
Service cost
|
13
|
14
|
1
|
1
|
||||||||||||
Interest on net defined benefit (asset) liability
|
1
|
2
|
-
|
-
|
||||||||||||
Defined benefit cost
|
14
|
16
|
1
|
1
|
||||||||||||
Defined contribution cost
|
21
|
23
|
-
|
-
|
||||||||||||
Net benefit cost reported in earnings
|
$
|
35
|
$
|
39
|
$
|
1
|
$
|
1
|
||||||||
Actuarial (gain) loss on economic assumption changes
|
$
|
(315
|
)
|
$
|
80
|
$
|
(45
|
)
|
$
|
12
|
||||||
Investment (gain) loss (excluding interest income)
|
280
|
(171
|
)
|
29
|
(16
|
)
|
||||||||||
Change in effect of asset limit
|
3
|
-
|
-
|
-
|
||||||||||||
Remeasurement (gain) loss recorded in AOCI, net of tax
|
$
|
(32
|
)
|
$
|
(91
|
)
|
$
|
(16
|
)
|
$
|
(4
|
)
|
||||
Pension plans
|
Retiree welfare plans(1)
|
|||||||||||||||
For the six months ended June 30,
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Defined benefit current service cost
|
$
|
22
|
$
|
22
|
$
|
-
|
$
|
-
|
||||||||
Defined benefit administrative expenses
|
5
|
5
|
1
|
1
|
||||||||||||
Service cost
|
27
|
27
|
1
|
1
|
||||||||||||
Interest on net defined benefit (asset) liability
|
1
|
3
|
-
|
-
|
||||||||||||
Defined benefit cost
|
28
|
30
|
1
|
1
|
||||||||||||
Defined contribution cost
|
46
|
45
|
-
|
-
|
||||||||||||
Net benefit cost reported in earnings
|
$
|
74
|
$
|
75
|
$
|
1
|
$
|
1
|
||||||||
Actuarial (gain) loss on economic assumption changes
|
$
|
(621
|
)
|
$
|
(151
|
)
|
$
|
(85
|
)
|
$
|
(18
|
)
|
||||
Investment (gain) loss (excluding interest income)
|
573
|
(11
|
)
|
58
|
-
|
|||||||||||
Change in effect of asset limit
|
12
|
-
|
-
|
-
|
||||||||||||
Remeasurement (gain) loss recorded in AOCI, net of tax
|
$
|
(36
|
)
|
$
|
(162
|
)
|
$
|
(27
|
)
|
$
|
(18
|
)
|
(1) |
There are no significant current service costs for the retiree welfare plans as they are closed and mostly frozen. The remeasurement gain or loss on these plans is due to the
volatility of discount rates and investment returns.
|
Note 12 |
Commitments and Contingencies
|
(a) |
Legal proceedings
|
(b) |
Guarantees
|
(I) |
Guarantees regarding Manulife Finance (Delaware), L.P. (“MFLP”)
|
(II) |
Guarantees regarding The Manufacturers Life Insurance Company
|
For the three months ended June 30, 2022
|
MFC
(Guarantor)
|
MLI
consolidated
|
Other
subsidiaries
of MFC on
a combined
basis
|
Consolidation
adjustments
|
Total
consolidated
amounts
|
MFLP
|
||||||||||||||||||
Total revenue
|
$
|
152
|
$
|
(2,393
|
)
|
$
|
154
|
$
|
(314
|
)
|
$
|
(2,401
|
)
|
$
|
19
|
|||||||||
Net income (loss) attributed to shareholders
|
1,086
|
1,154
|
(151
|
)
|
(1,003
|
)
|
1,086
|
8
|
||||||||||||||||
For the three months ended June 30, 2021
|
MFC
(Guarantor)
|
MLI
consolidated
|
Other
subsidiaries
of MFC on
a combined
basis
|
Consolidation
adjustments
|
Total
consolidated
amounts
|
MFLP
|
||||||||||||||||||
Total revenue
|
$
|
156
|
$
|
25,846
|
$
|
183
|
$
|
(361
|
)
|
$
|
25,824
|
$
|
6
|
|||||||||||
Net income (loss) attributed to shareholders
|
2,646
|
2,733
|
(171
|
)
|
(2,562
|
)
|
2,646
|
(2
|
)
|
|||||||||||||||
For the six months ended June 30, 2022
|
MFC
(Guarantor)
|
MLI
consolidated
|
Other
subsidiaries
of MFC on
a combined
basis
|
Consolidation
adjustments
|
Total
consolidated
amounts
|
MFLP
|
||||||||||||||||||
Total revenue
|
$
|
149
|
$
|
(6,018
|
)
|
$
|
154
|
$
|
(316
|
)
|
$
|
(6,031
|
)
|
$
|
29
|
|||||||||
Net income (loss) attributed to shareholders
|
4,056
|
4,194
|
(151
|
)
|
(4,043
|
)
|
4,056
|
9
|
||||||||||||||||
For the six months ended June 30, 2021
|
MFC
(Guarantor)
|
MLI
consolidated
|
Other
subsidiaries
of MFC on
a combined
basis
|
Consolidation
adjustments
|
Total
consolidated
amounts
|
MFLP
|
||||||||||||||||||
Total revenue
|
$
|
156
|
$
|
24,255
|
$
|
183
|
$
|
(367
|
)
|
$
|
24,227
|
$
|
16
|
|||||||||||
Net income (loss) attributed to shareholders
|
3,429
|
3,599
|
(171
|
)
|
(3,428
|
)
|
3,429
|
-
|
As at June 30, 2022
|
MFC
(Guarantor)
|
MLI
consolidated
|
Other
subsidiaries
of MFC on
a combined
basis
|
Consolidation
adjustments
|
Total
consolidated
amounts
|
MFLP
|
||||||||||||||||||
Invested assets
|
$
|
85
|
$
|
402,238
|
$
|
6
|
$
|
-
|
$
|
402,329
|
$
|
2
|
||||||||||||
Total other assets
|
88,720
|
86,938
|
41,561
|
(133,929
|
)
|
83,290
|
946
|
|||||||||||||||||
Segregated funds net assets
|
-
|
334,903
|
-
|
-
|
334,903
|
-
|
||||||||||||||||||
Insurance contract liabilities
|
-
|
359,335
|
-
|
-
|
359,335
|
-
|
||||||||||||||||||
Investment contract liabilities
|
-
|
3,158
|
-
|
-
|
3,158
|
-
|
||||||||||||||||||
Segregated funds net liabilities
|
-
|
334,903
|
-
|
-
|
334,903
|
-
|
||||||||||||||||||
Total other liabilities
|
33,305
|
56,659
|
37,506
|
(60,142
|
)
|
67,328
|
701
|
|||||||||||||||||
As at December 31, 2021
|
MFC
(Guarantor)
|
MLI
consolidated
|
Other
subsidiaries
of MFC on
a combined
basis
|
Consolidation
adjustments
|
Total
consolidated
amounts
|
MFLP
|
||||||||||||||||||
Invested assets
|
$
|
78
|
$
|
427,010
|
$
|
10
|
$
|
-
|
$
|
427,098
|
$
|
3
|
||||||||||||
Total other assets
|
68,866
|
91,412
|
3,203
|
(72,724
|
)
|
90,757
|
1,088
|
|||||||||||||||||
Segregated funds net assets
|
-
|
399,788
|
-
|
-
|
399,788
|
-
|
||||||||||||||||||
Insurance contract liabilities
|
-
|
392,275
|
-
|
-
|
392,275
|
-
|
||||||||||||||||||
Investment contract liabilities
|
-
|
3,117
|
-
|
-
|
3,117
|
-
|
||||||||||||||||||
Segregated funds net liabilities
|
-
|
399,788
|
-
|
-
|
399,788
|
-
|
||||||||||||||||||
Total other liabilities
|
10,536
|
53,962
|
-
|
(904
|
)
|
63,594
|
852
|
(III) |
Guarantees regarding John Hancock Life Insurance Company (U.S.A.) (“JHUSA”)
|
Note 13 |
Segment and Geographic Reporting
|
(a) |
By Segment
|
For the three months ended
|
Global
|
Corporate
|
||||||||||||||||||||||
June 30, 2022
|
Asia
|
Canada
|
U.S.
|
WAM
|
and Other
|
Total
|
||||||||||||||||||
Revenue
|
||||||||||||||||||||||||
Life and health insurance
|
$
|
4,467
|
$
|
2,606
|
$
|
1,671
|
$
|
-
|
$
|
39
|
$
|
8,783
|
||||||||||||
Annuities and pensions
|
746
|
86
|
12
|
-
|
-
|
844
|
||||||||||||||||||
Net premium income
|
5,213
|
2,692
|
1,683
|
-
|
39
|
9,627
|
||||||||||||||||||
Net investment income (loss)
|
(2,994
|
)
|
(4,751
|
)
|
(6,120
|
)
|
(20
|
)
|
(200
|
)
|
(14,085
|
)
|
||||||||||||
Other revenue
|
280
|
323
|
108
|
1,541
|
(195
|
)
|
2,057
|
|||||||||||||||||
Total revenue
|
2,499
|
(1,736
|
)
|
(4,329
|
)
|
1,521
|
(356
|
)
|
(2,401
|
)
|
||||||||||||||
Contract benefits and expenses
|
||||||||||||||||||||||||
Life and health insurance
|
(197
|
)
|
436
|
(5,799
|
)
|
-
|
37
|
(5,523
|
)
|
|||||||||||||||
Annuities and pensions
|
1,228
|
(3,398
|
)
|
(221
|
)
|
10
|
-
|
(2,381
|
)
|
|||||||||||||||
Net benefits and claims
|
1,031
|
(2,962
|
)
|
(6,020
|
)
|
10
|
37
|
(7,904
|
)
|
|||||||||||||||
Interest expense
|
58
|
119
|
26
|
-
|
115
|
318
|
||||||||||||||||||
Other expenses
|
1,195
|
883
|
655
|
1,149
|
46
|
3,928
|
||||||||||||||||||
Total contract benefits and expenses
|
2,284
|
(1,960
|
)
|
(5,339
|
)
|
1,159
|
198
|
(3,658
|
)
|
|||||||||||||||
Income (loss) before income taxes
|
215
|
224
|
1,010
|
362
|
(554
|
)
|
1,257
|
|||||||||||||||||
Income tax recovery (expense)
|
(29
|
)
|
(55
|
)
|
(174
|
)
|
(57
|
)
|
57
|
(258
|
)
|
|||||||||||||
Net income (loss)
|
186
|
169
|
836
|
305
|
(497
|
)
|
999
|
|||||||||||||||||
Less net income (loss) attributed to:
|
||||||||||||||||||||||||
Non-controlling interests
|
(11
|
)
|
-
|
-
|
-
|
-
|
(11
|
)
|
||||||||||||||||
Participating policyholders
|
(164
|
)
|
84
|
4
|
-
|
-
|
(76
|
)
|
||||||||||||||||
Net income (loss) attributed to
shareholders
|
$
|
361
|
$
|
85
|
$
|
832
|
$
|
305
|
$
|
(497
|
)
|
$
|
1,086
|
For the three months ended
|
Global
|
Corporate
|
||||||||||||||||||||||
June 30, 2021
|
Asia
|
Canada
|
U.S.
|
WAM
|
and Other
|
Total
|
||||||||||||||||||
Revenue
|
||||||||||||||||||||||||
Life and health insurance
|
$
|
4,873
|
$
|
2,304
|
$
|
1,509
|
$
|
-
|
$
|
30
|
$
|
8,716
|
||||||||||||
Annuities and pensions
|
607
|
76
|
15
|
-
|
-
|
698
|
||||||||||||||||||
Net premium income
|
5,480
|
2,380
|
1,524
|
-
|
30
|
9,414
|
||||||||||||||||||
Net investment income (loss)
|
3,239
|
3,230
|
6,878
|
21
|
282
|
13,650
|
||||||||||||||||||
Other revenue
|
403
|
322
|
480
|
1,586
|
(31
|
)
|
2,760
|
|||||||||||||||||
Total revenue
|
9,122
|
5,932
|
8,882
|
1,607
|
281
|
25,824
|
||||||||||||||||||
Contract benefits and expenses
|
||||||||||||||||||||||||
Life and health insurance
|
6,131
|
2,954
|
6,698
|
-
|
(18
|
)
|
15,765
|
|||||||||||||||||
Annuities and pensions
|
901
|
1,054
|
355
|
39
|
-
|
2,349
|
||||||||||||||||||
Net benefits and claims
|
7,032
|
4,008
|
7,053
|
39
|
(18
|
)
|
18,114
|
|||||||||||||||||
Interest expense
|
60
|
58
|
11
|
1
|
129
|
259
|
||||||||||||||||||
Other expenses
|
1,294
|
835
|
832
|
1,148
|
50
|
4,159
|
||||||||||||||||||
Total contract benefits and expenses
|
8,386
|
4,901
|
7,896
|
1,188
|
161
|
22,532
|
||||||||||||||||||
Income (loss) before income taxes
|
736
|
1,031
|
986
|
419
|
120
|
3,292
|
||||||||||||||||||
Income tax recovery (expense)
|
(100
|
)
|
(219
|
)
|
(189
|
)
|
(63
|
)
|
(39
|
)
|
(610
|
)
|
||||||||||||
Net income (loss)
|
636
|
812
|
797
|
356
|
81
|
2,682
|
||||||||||||||||||
Less net income (loss) attributed to:
|
||||||||||||||||||||||||
Non-controlling interests
|
84
|
-
|
-
|
-
|
-
|
84
|
||||||||||||||||||
Participating policyholders
|
(81
|
)
|
29
|
4
|
-
|
-
|
(48
|
)
|
||||||||||||||||
Net income (loss) attributed to
shareholders
|
$
|
633
|
$
|
783
|
$
|
793
|
$
|
356
|
$
|
81
|
$
|
2,646
|
As at and for the six months ended
|
Global
|
Corporate
|
||||||||||||||||||||||
June 30, 2022
|
Asia
|
Canada
|
U.S.
|
WAM
|
and Other
|
Total
|
||||||||||||||||||
Revenue
|
||||||||||||||||||||||||
Life and health insurance
|
$
|
10,032
|
$
|
4,980
|
$
|
3,213
|
$
|
-
|
$
|
79
|
$
|
18,304
|
||||||||||||
Annuities and pensions
|
1,433
|
189
|
(797
|
)
|
-
|
-
|
825
|
|||||||||||||||||
Net premium income
|
11,465
|
5,169
|
2,416
|
-
|
79
|
19,129
|
||||||||||||||||||
Net investment income (loss)
|
(6,526
|
)
|
(9,889
|
)
|
(12,038
|
)
|
(58
|
)
|
(697
|
)
|
(29,208
|
)
|
||||||||||||
Other revenue
|
572
|
701
|
(51
|
)
|
3,165
|
(339
|
)
|
4,048
|
||||||||||||||||
Total revenue
|
5,511
|
(4,019
|
)
|
(9,673
|
)
|
3,107
|
(957
|
)
|
(6,031
|
)
|
||||||||||||||
Contract benefits and expenses
|
||||||||||||||||||||||||
Life and health insurance
|
198
|
1,194
|
(11,894
|
)
|
-
|
76
|
(10,426
|
)
|
||||||||||||||||
Annuities and pensions
|
1,866
|
(8,247
|
)
|
(2,729
|
)
|
6
|
-
|
(9,104
|
)
|
|||||||||||||||
Net benefits and claims
|
2,064
|
(7,053
|
)
|
(14,623
|
)
|
6
|
76
|
(19,530
|
)
|
|||||||||||||||
Interest expense
|
113
|
182
|
42
|
-
|
224
|
561
|
||||||||||||||||||
Other expenses
|
2,438
|
1,748
|
1,321
|
2,353
|
110
|
7,970
|
||||||||||||||||||
Total contract benefits and expenses
|
4,615
|
(5,123
|
)
|
(13,260
|
)
|
2,359
|
410
|
(10,999
|
)
|
|||||||||||||||
Income (loss) before income taxes
|
896
|
1,104
|
3,587
|
748
|
(1,367
|
)
|
4,968
|
|||||||||||||||||
Income tax recovery (expense)
|
(114
|
)
|
(280
|
)
|
(684
|
)
|
(118
|
)
|
129
|
(1,067
|
)
|
|||||||||||||
Net income (loss)
|
782
|
824
|
2,903
|
630
|
(1,238
|
)
|
3,901
|
|||||||||||||||||
Less net income (loss) attributed to:
|
||||||||||||||||||||||||
Non-controlling interests
|
9
|
-
|
-
|
1
|
-
|
10
|
||||||||||||||||||
Participating policyholders
|
(361
|
)
|
192
|
4
|
-
|
-
|
(165
|
)
|
||||||||||||||||
Net income (loss) attributed to
shareholders
|
$
|
1,134
|
$
|
632
|
$
|
2,899
|
$
|
629
|
$
|
(1,238
|
)
|
$
|
4,056
|
|||||||||||
Total assets
|
$
|
147,231
|
$
|
150,368
|
$
|
261,286
|
$
|
219,698
|
$
|
41,939
|
$
|
820,522
|
As at and for the six months ended
|
Global
|
Corporate
|
||||||||||||||||||||||
June 30, 2021
|
Asia
|
Canada
|
U.S.
|
WAM
|
and Other
|
Total
|
||||||||||||||||||
Revenue
|
||||||||||||||||||||||||
Life and health insurance
|
$
|
10,286
|
$
|
4,418
|
$
|
2,936
|
$
|
-
|
$
|
62
|
$
|
17,702
|
||||||||||||
Annuities and pensions
|
1,113
|
186
|
21
|
-
|
-
|
1,320
|
||||||||||||||||||
Net premium income
|
11,399
|
4,604
|
2,957
|
-
|
62
|
19,022
|
||||||||||||||||||
Net investment income (loss)
|
2,643
|
(1,922
|
)
|
(846
|
)
|
15
|
(82
|
)
|
(192
|
)
|
||||||||||||||
Other revenue
|
920
|
673
|
779
|
3,119
|
(94
|
)
|
5,397
|
|||||||||||||||||
Total revenue
|
14,962
|
3,355
|
2,890
|
3,134
|
(114
|
)
|
24,227
|
|||||||||||||||||
Contract benefits and expenses
|
||||||||||||||||||||||||
Life and health insurance
|
8,957
|
4,640
|
1,211
|
-
|
(16
|
)
|
14,792
|
|||||||||||||||||
Annuities and pensions
|
1,325
|
(4,147
|
)
|
(917
|
)
|
51
|
-
|
(3,688
|
)
|
|||||||||||||||
Net benefits and claims
|
10,282
|
493
|
294
|
51
|
(16
|
)
|
11,104
|
|||||||||||||||||
Interest expense
|
121
|
120
|
21
|
1
|
246
|
509
|
||||||||||||||||||
Other expenses
|
2,705
|
1,656
|
1,505
|
2,297
|
287
|
8,450
|
||||||||||||||||||
Total contract benefits and expenses
|
13,108
|
2,269
|
1,820
|
2,349
|
517
|
20,063
|
||||||||||||||||||
Income (loss) before income taxes
|
1,854
|
1,086
|
1,070
|
785
|
(631
|
)
|
4,164
|
|||||||||||||||||
Income tax recovery (expense)
|
(278
|
)
|
(202
|
)
|
(170
|
)
|
(116
|
)
|
149
|
(617
|
)
|
|||||||||||||
Net income (loss)
|
1,576
|
884
|
900
|
669
|
(482
|
)
|
3,547
|
|||||||||||||||||
Less net income (loss) attributed to:
|
||||||||||||||||||||||||
Non-controlling interests
|
174
|
-
|
-
|
1
|
-
|
175
|
||||||||||||||||||
Participating policyholders
|
(188
|
)
|
120
|
11
|
-
|
-
|
(57
|
)
|
||||||||||||||||
Net income (loss) attributed to
shareholders
|
$
|
1,590
|
$
|
764
|
$
|
889
|
$
|
668
|
$
|
(482
|
)
|
$
|
3,429
|
|||||||||||
Total assets
|
$
|
149,257
|
$
|
165,356
|
$
|
279,805
|
$
|
248,887
|
$
|
35,797
|
$
|
879,102
|
(b) |
By Geographic Location
|
For the three months ended
|
||||||||||||||||||||
June 30, 2022
|
Asia
|
Canada
|
U.S.
|
Other
|
Total
|
|||||||||||||||
Revenue
|
||||||||||||||||||||
Life and health insurance
|
$
|
4,487
|
$
|
2,529
|
$
|
1,672
|
$
|
95
|
$
|
8,783
|
||||||||||
Annuities and pensions
|
746
|
86
|
12
|
-
|
844
|
|||||||||||||||
Net premium income
|
5,233
|
2,615
|
1,684
|
95
|
9,627
|
|||||||||||||||
Net investment income (loss)
|
(2,978
|
)
|
(4,936
|
)
|
(6,368
|
)
|
197
|
(14,085
|
)
|
|||||||||||
Other revenue
|
526
|
792
|
729
|
10
|
2,057
|
|||||||||||||||
Total revenue
|
$
|
2,781
|
$
|
(1,529
|
)
|
$
|
(3,955
|
)
|
$
|
302
|
$
|
(2,401
|
)
|
For the three months ended
|
||||||||||||||||||||
June 30, 2021
|
Asia
|
Canada
|
U.S.
|
Other
|
Total
|
|||||||||||||||
Revenue
|
||||||||||||||||||||
Life and health insurance
|
$
|
4,894
|
$
|
2,227
|
$
|
1,510
|
$
|
85
|
$
|
8,716
|
||||||||||
Annuities and pensions
|
607
|
76
|
15
|
-
|
698
|
|||||||||||||||
Net premium income
|
5,501
|
2,303
|
1,525
|
85
|
9,414
|
|||||||||||||||
Net investment income (loss)
|
3,366
|
3,316
|
6,886
|
82
|
13,650
|
|||||||||||||||
Other revenue
|
675
|
808
|
1,275
|
2
|
2,760
|
|||||||||||||||
Total revenue
|
$
|
9,542
|
$
|
6,427
|
$
|
9,686
|
$
|
169
|
$
|
25,824
|
For the six months ended
|
||||||||||||||||||||
June 30, 2022
|
Asia
|
Canada
|
U.S.
|
Other
|
Total
|
|||||||||||||||
Revenue
|
||||||||||||||||||||
Life and health insurance
|
$
|
10,076
|
$
|
4,824
|
$
|
3,214
|
$
|
190
|
$
|
18,304
|
||||||||||
Annuities and pensions
|
1,433
|
189
|
(797
|
)
|
-
|
825
|
||||||||||||||
Net premium income
|
11,509
|
5,013
|
2,417
|
190
|
19,129
|
|||||||||||||||
Net investment income (loss)
|
(6,739
|
)
|
(10,391
|
)
|
(12,301
|
)
|
223
|
(29,208
|
)
|
|||||||||||
Other revenue
|
1,104
|
1,625
|
1,280
|
39
|
4,048
|
|||||||||||||||
Total revenue
|
$
|
5,874
|
$
|
(3,753
|
)
|
$
|
(8,604
|
)
|
$
|
452
|
$
|
(6,031
|
)
|
For the six months ended
|
||||||||||||||||||||
June 30, 2021
|
Asia
|
Canada
|
U.S.
|
Other
|
Total
|
|||||||||||||||
Revenue
|
||||||||||||||||||||
Life and health insurance
|
$
|
10,331
|
$
|
4,254
|
$
|
2,937
|
$
|
180
|
$
|
17,702
|
||||||||||
Annuities and pensions
|
1,113
|
186
|
21
|
-
|
1,320
|
|||||||||||||||
Net premium income
|
11,444
|
4,440
|
2,958
|
180
|
19,022
|
|||||||||||||||
Net investment income (loss)
|
2,795
|
(2,240
|
)
|
(856
|
)
|
109
|
(192
|
)
|
||||||||||||
Other revenue
|
1,462
|
1,649
|
2,284
|
2
|
5,397
|
|||||||||||||||
Total revenue
|
$
|
15,701
|
$
|
3,849
|
$
|
4,386
|
$
|
291
|
$
|
24,227
|
Note 14 |
Segregated Funds
|
As at
|
June 30, 2022
|
December 31, 2021
|
||||||
Investments at market value
|
||||||||
Cash and short-term securities
|
$
|
4,530
|
$
|
3,955
|
||||
Debt securities
|
15,354
|
18,651
|
||||||
Equities
|
14,146
|
16,844
|
||||||
Mutual funds
|
297,144
|
354,882
|
||||||
Other investments
|
4,676
|
4,613
|
||||||
Accrued investment income
|
298
|
2,340
|
||||||
Other assets and liabilities, net
|
(901
|
)
|
(1,089
|
)
|
||||
Total segregated funds net assets
|
$
|
335,247
|
$
|
400,196
|
||||
Composition of segregated funds net assets
|
||||||||
Held by policyholders
|
$
|
334,903
|
$
|
399,788
|
||||
Held by the Company
|
344
|
408
|
||||||
Total segregated funds net assets
|
$
|
335,247
|
$
|
400,196
|
three months ended June 30,
|
six months ended June 30,
|
|||||||||||||||
For the
|
2022
|
2021
|
2022
|
2021
|
||||||||||||
Net policyholder cash flows
|
||||||||||||||||
Deposits from policyholders
|
$
|
10,094
|
$
|
10,304
|
$
|
22,422
|
$
|
22,699
|
||||||||
Net transfers to general fund
|
(347
|
)
|
(151
|
)
|
(570
|
)
|
(361
|
)
|
||||||||
Payments to policyholders
|
(11,200
|
)
|
(12,909
|
)
|
(24,207
|
)
|
(25,949
|
)
|
||||||||
(1,453
|
)
|
(2,756
|
)
|
(2,355
|
)
|
(3,611
|
)
|
|||||||||
Investment related
|
||||||||||||||||
Interest and dividends
|
1,261
|
1,317
|
3,129
|
3,035
|
||||||||||||
Net realized and unrealized investment gains (losses)
|
(42,644
|
)
|
18,377
|
(66,815
|
)
|
25,975
|
||||||||||
(41,383
|
)
|
19,694
|
(63,686
|
)
|
29,010
|
|||||||||||
Other
|
||||||||||||||||
Management and administration fees
|
(920
|
)
|
(980
|
)
|
(2,013
|
)
|
(2,071
|
)
|
||||||||
Impact of changes in foreign exchange rates
|
6,686
|
(3,778
|
)
|
3,105
|
(6,893
|
)
|
||||||||||
5,766
|
(4,758
|
)
|
1,092
|
(8,964
|
)
|
|||||||||||
Net additions (deductions)
|
(37,070
|
)
|
12,180
|
(64,949
|
)
|
16,435
|
||||||||||
Segregated funds net assets, beginning of period
|
372,317
|
372,064
|
400,196
|
367,809
|
||||||||||||
Segregated funds net assets, end of period
|
$
|
335,247
|
$
|
384,244
|
$
|
335,247
|
$
|
384,244
|
Note 15 |
Information Provided in Connection with Investments in Deferred Annuity Contracts and SignatureNotes Issued or Assumed by John Hancock Life Insurance Company
(U.S.A.)
|
As at June 30, 2022
|
MFC
(Guarantor)
|
JHUSA
(Issuer)
|
Other
subsidiaries
|
Consolidation
adjustments
|
Consolidated
MFC
|
|||||||||||||||
Assets
|
||||||||||||||||||||
Invested assets
|
$
|
85
|
$
|
111,682
|
$
|
291,028
|
$
|
(466
|
)
|
$
|
402,329
|
|||||||||
Investments in unconsolidated subsidiaries
|
69,653
|
8,800
|
39,466
|
(117,919
|
)
|
-
|
||||||||||||||
Reinsurance assets
|
-
|
60,818
|
10,470
|
(25,568
|
)
|
45,720
|
||||||||||||||
Other assets
|
19,067
|
10,087
|
68,143
|
(59,727
|
)
|
37,570
|
||||||||||||||
Segregated funds net assets
|
-
|
166,938
|
170,129
|
(2,164
|
)
|
334,903
|
||||||||||||||
Total assets
|
$
|
88,805
|
$
|
358,325
|
$
|
579,236
|
$
|
(205,844
|
)
|
$
|
820,522
|
|||||||||
Liabilities and equity
|
||||||||||||||||||||
Insurance contract liabilities
|
$
|
-
|
$
|
153,867
|
$
|
231,697
|
$
|
(26,229
|
)
|
$
|
359,335
|
|||||||||
Investment contract liabilities
|
-
|
1,334
|
1,824
|
-
|
3,158
|
|||||||||||||||
Other liabilities
|
22,607
|
18,933
|
72,343
|
(59,487
|
)
|
54,396
|
||||||||||||||
Long-term debt
|
5,931
|
-
|
-
|
-
|
5,931
|
|||||||||||||||
Capital instruments
|
4,767
|
587
|
20,247
|
(18,600
|
)
|
7,001
|
||||||||||||||
Segregated funds net liabilities
|
-
|
166,938
|
170,129
|
(2,164
|
)
|
334,903
|
||||||||||||||
Shareholders' and other equity holders' equity
|
55,500
|
16,666
|
82,698
|
(99,364
|
)
|
55,500
|
||||||||||||||
Participating policyholders' equity
|
-
|
-
|
(1,398
|
)
|
-
|
(1,398
|
)
|
|||||||||||||
Non-controlling interests
|
-
|
-
|
1,696
|
-
|
1,696
|
|||||||||||||||
Total liabilities and equity
|
$
|
88,805
|
$
|
358,325
|
$
|
579,236
|
$
|
(205,844
|
)
|
$
|
820,522
|
As at December 31, 2021
|
MFC
(Guarantor)
|
JHUSA
(Issuer)
|
Other
subsidiaries
|
Consolidation
adjustments
|
Consolidated
MFC
|
|||||||||||||||
Assets
|
||||||||||||||||||||
Invested assets
|
$
|
78
|
$
|
116,705
|
$
|
310,679
|
$
|
(364
|
)
|
$
|
427,098
|
|||||||||
Investments in unconsolidated subsidiaries
|
68,655
|
9,107
|
20,788
|
(98,550
|
)
|
-
|
||||||||||||||
Reinsurance assets
|
-
|
63,838
|
11,309
|
(30,568
|
)
|
44,579
|
||||||||||||||
Other assets
|
211
|
18,085
|
49,956
|
(22,074
|
)
|
46,178
|
||||||||||||||
Segregated funds net assets
|
-
|
204,493
|
197,220
|
(1,925
|
)
|
399,788
|
||||||||||||||
Total assets
|
$
|
68,944
|
$
|
412,228
|
$
|
589,952
|
$
|
(153,481
|
)
|
$
|
917,643
|
|||||||||
Liabilities and equity
|
||||||||||||||||||||
Insurance contract liabilities
|
$
|
-
|
$
|
166,535
|
$
|
257,044
|
$
|
(31,304
|
)
|
$
|
392,275
|
|||||||||
Investment contract liabilities
|
-
|
1,227
|
1,890
|
-
|
3,117
|
|||||||||||||||
Other liabilities
|
899
|
21,806
|
50,836
|
(21,809
|
)
|
51,732
|
||||||||||||||
Long-term debt
|
4,882
|
-
|
-
|
-
|
4,882
|
|||||||||||||||
Capital instruments
|
4,755
|
579
|
1,646
|
-
|
6,980
|
|||||||||||||||
Segregated funds net liabilities
|
-
|
204,493
|
197,220
|
(1,925
|
)
|
399,788
|
||||||||||||||
Shareholders' and other equity holders' equity
|
58,408
|
17,588
|
80,855
|
(98,443
|
)
|
58,408
|
||||||||||||||
Participating policyholders' equity
|
-
|
-
|
(1,233
|
)
|
-
|
(1,233
|
)
|
|||||||||||||
Non-controlling interests
|
-
|
-
|
1,694
|
-
|
1,694
|
|||||||||||||||
Total liabilities and equity
|
$
|
68,944
|
$
|
412,228
|
$
|
589,952
|
$
|
(153,481
|
)
|
$
|
917,643
|
For the three months ended
|
||||||||||||||||||||
June 30, 2022
|
MFC
(Guarantor)
|
JHUSA
(Issuer)
|
Other
subsidiaries
|
Consolidation
adjustments
|
Consolidated
MFC
|
|||||||||||||||
Revenue
|
||||||||||||||||||||
Net premium income
|
$
|
-
|
$
|
1,080
|
$
|
8,549
|
$
|
(2
|
)
|
$
|
9,627
|
|||||||||
Net investment income (loss)
|
153
|
(4,741
|
)
|
(9,078
|
)
|
(419
|
)
|
(14,085
|
)
|
|||||||||||
Other revenue
|
(1
|
)
|
70
|
1,477
|
511
|
2,057
|
||||||||||||||
Total revenue
|
152
|
(3,591
|
)
|
948
|
90
|
(2,401
|
)
|
|||||||||||||
Contract benefits and expenses
|
||||||||||||||||||||
Net benefits and claims
|
-
|
(4,061
|
)
|
(4,672
|
)
|
829
|
(7,904
|
)
|
||||||||||||
Commissions, investment and general expenses
|
7
|
692
|
3,400
|
(276
|
)
|
3,823
|
||||||||||||||
Other expenses
|
104
|
68
|
714
|
(463
|
)
|
423
|
||||||||||||||
Total contract benefits and expenses
|
111
|
(3,301
|
)
|
(558
|
)
|
90
|
(3,658
|
)
|
||||||||||||
Income (loss) before income taxes
|
41
|
(290
|
)
|
1,506
|
-
|
1,257
|
||||||||||||||
Income tax (expense) recovery
|
(1
|
)
|
54
|
(311
|
)
|
-
|
(258
|
)
|
||||||||||||
Income (loss) after income taxes
|
40
|
(236
|
)
|
1,195
|
-
|
999
|
||||||||||||||
Equity in net income (loss) of unconsolidated
subsidiaries
|
1,046
|
301
|
65
|
(1,412
|
)
|
-
|
||||||||||||||
Net income (loss)
|
$
|
1,086
|
$
|
65
|
$
|
1,260
|
$
|
(1,412
|
)
|
$
|
999
|
|||||||||
Net income (loss) attributed to:
|
||||||||||||||||||||
Non-controlling interests
|
$
|
-
|
$
|
-
|
$
|
(11
|
)
|
$
|
-
|
$
|
(11
|
)
|
||||||||
Participating policyholders
|
-
|
(238
|
)
|
162
|
-
|
(76
|
)
|
|||||||||||||
Shareholders and other equity holders
|
1,086
|
303
|
1,109
|
(1,412
|
)
|
1,086
|
||||||||||||||
$
|
1,086
|
$
|
65
|
$
|
1,260
|
$
|
(1,412
|
)
|
$
|
999
|
For the three months ended
|
||||||||||||||||||||
June 30, 2021
|
MFC
(Guarantor)
|
JHUSA
(Issuer)
|
Other
subsidiaries
|
Consolidation
adjustments
|
Consolidated
MFC
|
|||||||||||||||
Revenue
|
||||||||||||||||||||
Net premium income
|
$
|
-
|
$
|
1,097
|
$
|
8,321
|
$
|
(4
|
)
|
$
|
9,414
|
|||||||||
Net investment income (loss)
|
144
|
5,475
|
8,419
|
(388
|
)
|
13,650
|
||||||||||||||
Other revenue
|
12
|
615
|
3,394
|
(1,261
|
)
|
2,760
|
||||||||||||||
Total revenue
|
156
|
7,187
|
20,134
|
(1,653
|
)
|
25,824
|
||||||||||||||
Contract benefits and expenses
|
||||||||||||||||||||
Net benefits and claims
|
-
|
5,721
|
13,322
|
(929
|
)
|
18,114
|
||||||||||||||
Commissions, investment and general expenses
|
5
|
918
|
3,489
|
(358
|
)
|
4,054
|
||||||||||||||
Other expenses
|
107
|
59
|
564
|
(366
|
)
|
364
|
||||||||||||||
Total contract benefits and expenses
|
112
|
6,698
|
17,375
|
(1,653
|
)
|
22,532
|
||||||||||||||
Income (loss) before income taxes
|
44
|
489
|
2,759
|
-
|
3,292
|
|||||||||||||||
Income tax (expense) recovery
|
(6
|
)
|
(78
|
)
|
(526
|
)
|
-
|
(610
|
)
|
|||||||||||
Income (loss) after income taxes
|
38
|
411
|
2,233
|
-
|
2,682
|
|||||||||||||||
Equity in net income (loss) of unconsolidated
subsidiaries
|
2,608
|
337
|
748
|
(3,693
|
)
|
-
|
||||||||||||||
Net income (loss)
|
$
|
2,646
|
$
|
748
|
$
|
2,981
|
$
|
(3,693
|
)
|
$
|
2,682
|
|||||||||
Net income (loss) attributed to:
|
||||||||||||||||||||
Non-controlling interests
|
$
|
-
|
$
|
-
|
$
|
84
|
$
|
-
|
$
|
84
|
||||||||||
Participating policyholders
|
-
|
(1
|
)
|
(48
|
)
|
1
|
(48
|
)
|
||||||||||||
Shareholders and other equity holders
|
2,646
|
749
|
2,945
|
(3,694
|
)
|
2,646
|
||||||||||||||
$
|
2,646
|
$
|
748
|
$
|
2,981
|
$
|
(3,693
|
)
|
$
|
2,682
|
For the six months ended
|
||||||||||||||||||||
June 30, 2022
|
MFC
(Guarantor)
|
JHUSA
(Issuer)
|
Other
subsidiaries
|
Consolidation
adjustments
|
Consolidated
MFC
|
|||||||||||||||
Revenue
|
||||||||||||||||||||
Net premium income
|
$
|
-
|
$
|
3,051
|
$
|
16,078
|
$
|
-
|
$
|
19,129
|
||||||||||
Net investment income (loss)
|
141
|
(9,031
|
)
|
(19,886
|
)
|
(432
|
)
|
(29,208
|
)
|
|||||||||||
Other revenue
|
8
|
(525
|
)
|
3,174
|
1,391
|
4,048
|
||||||||||||||
Total revenue
|
149
|
(6,505
|
)
|
(634
|
)
|
959
|
(6,031
|
)
|
||||||||||||
Contract benefits and expenses
|
||||||||||||||||||||
Net benefits and claims
|
-
|
(8,531
|
)
|
(11,555
|
)
|
556
|
(19,530
|
)
|
||||||||||||
Commissions, investment and general expenses
|
15
|
1,475
|
6,856
|
(587
|
)
|
7,759
|
||||||||||||||
Other expenses
|
194
|
128
|
(540
|
)
|
990
|
772
|
||||||||||||||
Total contract benefits and expenses
|
209
|
(6,928
|
)
|
(5,239
|
)
|
959
|
(10,999
|
)
|
||||||||||||
Income (loss) before income taxes
|
(60
|
)
|
423
|
4,605
|
-
|
4,968
|
||||||||||||||
Income tax (expense) recovery
|
30
|
(79
|
)
|
(1,018
|
)
|
-
|
(1,067
|
)
|
||||||||||||
Income (loss) after income taxes
|
(30
|
)
|
344
|
3,587
|
-
|
3,901
|
||||||||||||||
Equity in net income (loss) of unconsolidated
subsidiaries
|
4,086
|
669
|
1,013
|
(5,768
|
)
|
-
|
||||||||||||||
Net income (loss)
|
$
|
4,056
|
$
|
1,013
|
$
|
4,600
|
$
|
(5,768
|
)
|
$
|
3,901
|
|||||||||
Net income (loss) attributed to:
|
||||||||||||||||||||
Non-controlling interests
|
$
|
-
|
$
|
-
|
$
|
10
|
$
|
-
|
$
|
10
|
||||||||||
Participating policyholders
|
-
|
(238
|
)
|
73
|
-
|
(165
|
)
|
|||||||||||||
Shareholders and other equity holders
|
4,056
|
1,251
|
4,517
|
(5,768
|
)
|
4,056
|
||||||||||||||
$
|
4,056
|
$
|
1,013
|
$
|
4,600
|
$
|
(5,768
|
)
|
$
|
3,901
|
For the six months ended
|
||||||||||||||||||||
June 30, 2021
|
MFC
(Guarantor)
|
JHUSA
(Issuer)
|
Other
subsidiaries
|
Consolidation
adjustments
|
Consolidated
MFC
|
|||||||||||||||
Revenue
|
||||||||||||||||||||
Net premium income
|
$
|
-
|
$
|
2,175
|
$
|
16,847
|
$
|
-
|
$
|
19,022
|
||||||||||
Net investment income (loss)
|
115
|
(1,258
|
)
|
1,350
|
(399
|
)
|
(192
|
)
|
||||||||||||
Other revenue
|
41
|
905
|
3,710
|
741
|
5,397
|
|||||||||||||||
Total revenue
|
156
|
1,822
|
21,907
|
342
|
24,227
|
|||||||||||||||
Contract benefits and expenses
|
||||||||||||||||||||
Net benefits and claims
|
-
|
159
|
9,495
|
1,450
|
11,104
|
|||||||||||||||
Commissions, investment and general expenses
|
11
|
1,814
|
7,122
|
(704
|
)
|
8,243
|
||||||||||||||
Other expenses
|
214
|
103
|
803
|
(404
|
)
|
716
|
||||||||||||||
Total contract benefits and expenses
|
225
|
2,076
|
17,420
|
342
|
20,063
|
|||||||||||||||
Income (loss) before income taxes
|
(69
|
)
|
(254
|
)
|
4,487
|
-
|
4,164
|
|||||||||||||
Income tax (expense) recovery
|
24
|
106
|
(747
|
)
|
-
|
(617
|
)
|
|||||||||||||
Income (loss) after income taxes
|
(45
|
)
|
(148
|
)
|
3,740
|
-
|
3,547
|
|||||||||||||
Equity in net income (loss) of unconsolidated
subsidiaries
|
3,474
|
717
|
569
|
(4,760
|
)
|
-
|
||||||||||||||
Net income (loss)
|
$
|
3,429
|
$
|
569
|
$
|
4,309
|
$
|
(4,760
|
)
|
$
|
3,547
|
|||||||||
Net income (loss) attributed to:
|
||||||||||||||||||||
Non-controlling interests
|
$
|
-
|
$
|
-
|
$
|
175
|
$
|
-
|
$
|
175
|
||||||||||
Participating policyholders
|
-
|
(1
|
)
|
(57
|
)
|
1
|
(57
|
)
|
||||||||||||
Shareholders and other equity holders
|
3,429
|
570
|
4,191
|
(4,761
|
)
|
3,429
|
||||||||||||||
$
|
3,429
|
$
|
569
|
$
|
4,309
|
$
|
(4,760
|
)
|
$
|
3,547
|
For the six months ended June 30, 2022
|
MFC
(Guarantor)
|
JHUSA
(Issuer)
|
Other
subsidiaries
|
Consolidation
adjustments
|
Consolidated
MFC
|
|||||||||||||||
Operating activities
|
||||||||||||||||||||
Net income (loss)
|
$
|
4,056
|
$
|
1,013
|
$
|
4,600
|
$
|
(5,768
|
)
|
$
|
3,901
|
|||||||||
Adjustments:
|
||||||||||||||||||||
Equity in net income of unconsolidated subsidiaries
|
(4,086
|
)
|
(669
|
)
|
(1,013
|
)
|
5,768
|
-
|
||||||||||||
Increase (decrease) in insurance contract liabilities
|
-
|
(14,323
|
)
|
(15,595
|
)
|
-
|
(29,918
|
)
|
||||||||||||
Increase (decrease) in investment contract liabilities
|
-
|
20
|
(21
|
)
|
-
|
(1
|
)
|
|||||||||||||
(Increase) decrease in reinsurance
|
-
|
4,651
|
(4,785
|
)
|
-
|
(134
|
)
|
|||||||||||||
Amortization of (premium) discount on invested assets
|
-
|
25
|
23
|
-
|
48
|
|||||||||||||||
Other amortization
|
4
|
61
|
200
|
-
|
265
|
|||||||||||||||
Net realized and unrealized (gains) losses and impairment on
assets
|
9
|
11,588
|
27,711
|
-
|
39,308
|
|||||||||||||||
Gain on U.S. variable annuity reinsurance transaction (pre-tax)
|
-
|
(1,065
|
)
|
-
|
-
|
(1,065
|
)
|
|||||||||||||
Deferred income tax expense (recovery)
|
(30
|
)
|
115
|
260
|
-
|
345
|
||||||||||||||
Stock option expense
|
-
|
(2
|
)
|
5
|
-
|
3
|
||||||||||||||
Cash provided by (used in) operating activities before undernoted
items
|
(47
|
)
|
1,414
|
11,385
|
-
|
12,752
|
||||||||||||||
Dividends from unconsolidated subsidiary
|
-
|
193
|
734
|
(927
|
)
|
-
|
||||||||||||||
Cash decrease due to U.S. variable annuity reinsurance
transaction
|
-
|
(1,263
|
)
|
-
|
-
|
(1,263
|
)
|
|||||||||||||
Changes in policy related and operating receivables and payables
|
(145
|
)
|
1,869
|
(5,882
|
)
|
-
|
(4,158
|
)
|
||||||||||||
Cash provided by (used in) operating activities
|
(192
|
)
|
2,213
|
6,237
|
(927
|
)
|
7,331
|
|||||||||||||
Investing activities
|
||||||||||||||||||||
Purchases and mortgage advances
|
-
|
(16,909
|
)
|
(44,864
|
)
|
-
|
(61,773
|
)
|
||||||||||||
Disposals and repayments
|
-
|
13,441
|
39,424
|
-
|
52,865
|
|||||||||||||||
Changes in investment broker net receivables and payables
|
-
|
(36
|
)
|
(81
|
)
|
-
|
(117
|
)
|
||||||||||||
Investment in common shares of subsidiaries
|
(1,962
|
)
|
-
|
-
|
1,962
|
-
|
||||||||||||||
Capital contribution to unconsolidated subsidiaries
|
-
|
12
|
-
|
(12
|
)
|
-
|
||||||||||||||
Notes receivable from parent
|
-
|
-
|
(21,701
|
)
|
21,701
|
-
|
||||||||||||||
Notes receivable from subsidiaries
|
(18,585
|
)
|
(6
|
)
|
-
|
18,591
|
-
|
|||||||||||||
Cash provided by (used in) investing activities
|
(20,547
|
)
|
(3,498
|
)
|
(27,222
|
)
|
42,242
|
(9,025
|
)
|
|||||||||||
Financing activities
|
||||||||||||||||||||
Issue of long-term debt, net
|
946
|
-
|
-
|
-
|
946
|
|||||||||||||||
Secured borrowings
|
-
|
-
|
548
|
-
|
548
|
|||||||||||||||
Change in repurchase agreements and securities sold but not yet
purchased
|
-
|
266
|
(202
|
)
|
-
|
64
|
||||||||||||||
Changes in deposits from Bank clients, net
|
-
|
-
|
850
|
-
|
850
|
|||||||||||||||
Lease payments
|
-
|
(3
|
)
|
(59
|
)
|
-
|
(62
|
)
|
||||||||||||
Shareholders' dividends and other equity distributions
|
(1,391
|
)
|
-
|
-
|
-
|
(1,391
|
)
|
|||||||||||||
Common shares repurchased
|
(805
|
)
|
-
|
-
|
-
|
(805
|
)
|
|||||||||||||
Common shares issued, net
|
16
|
-
|
1,962
|
(1,962
|
)
|
16
|
||||||||||||||
Preferred shares and other equity issued, net
|
990
|
-
|
-
|
-
|
990
|
|||||||||||||||
Preferred shares redeemed, net
|
(711
|
)
|
-
|
-
|
-
|
(711
|
)
|
|||||||||||||
Contributions from (distributions to) non-controlling interests, net
|
-
|
-
|
1
|
-
|
1
|
|||||||||||||||
Dividends paid to parent
|
-
|
(734
|
)
|
(193
|
)
|
927
|
-
|
|||||||||||||
Capital contributions by parent
|
-
|
-
|
(12
|
)
|
12
|
-
|
||||||||||||||
Notes payable to parent
|
-
|
-
|
18,591
|
(18,591
|
)
|
-
|
||||||||||||||
Notes payable to subsidiaries
|
21,701
|
-
|
-
|
(21,701
|
)
|
-
|
||||||||||||||
Cash provided by (used in) financing activities
|
20,746
|
(471
|
)
|
21,486
|
(41,315
|
)
|
446
|
|||||||||||||
Cash and short-term securities
|
||||||||||||||||||||
Increase (decrease) during the period
|
7
|
(1,756
|
)
|
501
|
-
|
(1,248
|
)
|
|||||||||||||
Effect of foreign exchange rate changes on cash and short-term
securities
|
-
|
25
|
(64
|
)
|
-
|
(39
|
)
|
|||||||||||||
Balance, beginning of period
|
78
|
3,565
|
18,287
|
-
|
21,930
|
|||||||||||||||
Balance, end of period
|
85
|
1,834
|
18,724
|
-
|
20,643
|
|||||||||||||||
Cash and short-term securities
|
||||||||||||||||||||
Beginning of period
|
||||||||||||||||||||
Gross cash and short-term securities
|
78
|
4,087
|
18,429
|
-
|
22,594
|
|||||||||||||||
Net payments in transit, included in other liabilities
|
-
|
(522
|
)
|
(142
|
)
|
-
|
(664
|
)
|
||||||||||||
Net cash and short-term securities, beginning of period
|
78
|
3,565
|
18,287
|
-
|
21,930
|
|||||||||||||||
End of period
|
||||||||||||||||||||
Gross cash and short-term securities
|
85
|
2,091
|
18,839
|
-
|
21,015
|
|||||||||||||||
Net payments in transit, included in other liabilities
|
-
|
(257
|
)
|
(115
|
)
|
-
|
(372
|
)
|
||||||||||||
Net cash and short-term securities, end of period
|
$
|
85
|
$
|
1,834
|
$
|
18,724
|
$
|
-
|
$
|
20,643
|
||||||||||
Supplemental disclosures on cash flow information:
|
||||||||||||||||||||
Interest received
|
$
|
149
|
$
|
1,874
|
$
|
3,997
|
$
|
(339
|
)
|
$
|
5,681
|
|||||||||
Interest paid
|
183
|
71
|
639
|
(339
|
)
|
554
|
||||||||||||||
Income taxes paid (refund)
|
-
|
117
|
863
|
-
|
980
|
For the six months ended June 30, 2021
|
MFC
(Guarantor)
|
JHUSA
(Issuer)
|
Other
subsidiaries
|
Consolidation
adjustments
|
Consolidated
MFC
|
|||||||||||||||
Operating activities
|
||||||||||||||||||||
Net income (loss)
|
$
|
3,429
|
$
|
569
|
$
|
4,309
|
$
|
(4,760
|
)
|
$
|
3,547
|
|||||||||
Adjustments:
|
||||||||||||||||||||
Equity in net income of unconsolidated subsidiaries
|
(3,474
|
)
|
(717
|
)
|
(569
|
)
|
4,760
|
-
|
||||||||||||
Increase (decrease) in insurance contract liabilities
|
-
|
(2,971
|
)
|
1,560
|
-
|
(1,411
|
)
|
|||||||||||||
Increase (decrease) in investment contract liabilities
|
-
|
23
|
1
|
-
|
24
|
|||||||||||||||
(Increase) decrease in reinsurance assets
|
-
|
1,306
|
(716
|
)
|
-
|
590
|
||||||||||||||
Amortization of (premium) discount on invested assets
|
-
|
23
|
57
|
-
|
80
|
|||||||||||||||
Other amortization
|
12
|
61
|
195
|
-
|
268
|
|||||||||||||||
Net realized and unrealized (gains) losses and impairment on
assets
|
69
|
3,743
|
4,511
|
-
|
8,323
|
|||||||||||||||
Deferred income tax expense (recovery)
|
(18
|
)
|
69
|
(34
|
)
|
-
|
17
|
|||||||||||||
Stock option expense
|
-
|
(2
|
)
|
8
|
-
|
6
|
||||||||||||||
Cash provided by (used in) operating activities before undernoted
items
|
18
|
2,104
|
9,322
|
-
|
11,444
|
|||||||||||||||
Dividends from unconsolidated subsidiary
|
-
|
193
|
-
|
(193
|
)
|
-
|
||||||||||||||
Changes in policy related and operating receivables and payables
|
(213
|
)
|
(2,012
|
)
|
370
|
-
|
(1,855
|
)
|
||||||||||||
Cash provided by (used in) operating activities
|
(195
|
)
|
285
|
9,692
|
(193
|
)
|
9,589
|
|||||||||||||
Investing activities
|
||||||||||||||||||||
Purchases and mortgage advances
|
-
|
(16,904
|
)
|
(46,119
|
)
|
-
|
(63,023
|
)
|
||||||||||||
Disposals and repayments
|
-
|
14,810
|
33,334
|
-
|
48,144
|
|||||||||||||||
Changes in investment broker net receivables and payables
|
-
|
(150
|
)
|
784
|
-
|
634
|
||||||||||||||
Investment in common shares of subsidiaries
|
(2,000
|
)
|
-
|
-
|
2,000
|
-
|
||||||||||||||
Net cash flows from acquisition and disposal of subsidiaries and
businesses
|
-
|
-
|
(4
|
)
|
-
|
(4
|
)
|
|||||||||||||
Notes receivable from parent
|
-
|
-
|
(52,686
|
)
|
52,686
|
-
|
||||||||||||||
Notes receivable from subsidiaries
|
(49,170
|
)
|
-
|
-
|
49,170
|
-
|
||||||||||||||
Cash provided by (used in) investing activities
|
(51,170
|
)
|
(2,244
|
)
|
(64,691
|
)
|
103,856
|
(14,249
|
)
|
|||||||||||
Financing activities
|
||||||||||||||||||||
Redemption of long-term debt
|
(1,250
|
)
|
-
|
-
|
-
|
(1,250
|
)
|
|||||||||||||
Redemption of capital instruments
|
(468
|
)
|
-
|
(350
|
)
|
-
|
(818
|
)
|
||||||||||||
Secured borrowings
|
-
|
-
|
17
|
-
|
17
|
|||||||||||||||
Change in repurchase agreements and securities sold but not yet
purchased
|
-
|
372
|
148
|
-
|
520
|
|||||||||||||||
Changes in deposits from Bank clients, net
|
-
|
-
|
(323
|
)
|
-
|
(323
|
)
|
|||||||||||||
Lease payments
|
-
|
(3
|
)
|
(59
|
)
|
-
|
(62
|
)
|
||||||||||||
Shareholders' dividends and other equity distributions
|
(1,203
|
)
|
-
|
-
|
-
|
(1,203
|
)
|
|||||||||||||
Common shares issued, net
|
41
|
-
|
2,000
|
(2,000
|
)
|
41
|
||||||||||||||
Other equity issued, net
|
1,983
|
-
|
-
|
-
|
1,983
|
|||||||||||||||
Preferred shares redeemed, net
|
(418
|
)
|
-
|
-
|
-
|
(418
|
)
|
|||||||||||||
Contributions from (distributions to) non-controlling interests, net
|
-
|
-
|
2
|
-
|
2
|
|||||||||||||||
Dividends paid to parent
|
-
|
-
|
(193
|
)
|
193
|
-
|
||||||||||||||
Notes payable to parent
|
-
|
-
|
49,170
|
(49,170
|
)
|
-
|
||||||||||||||
Notes payable to subsidiaries
|
52,686
|
-
|
-
|
(52,686
|
)
|
-
|
||||||||||||||
Cash provided by (used in) financing activities
|
51,371
|
369
|
50,412
|
(103,663
|
)
|
(1,511
|
)
|
|||||||||||||
Cash and short-term securities
|
||||||||||||||||||||
Increase (decrease) during the period
|
6
|
(1,590
|
)
|
(4,587
|
)
|
-
|
(6,171
|
)
|
||||||||||||
Effect of foreign exchange rate changes on cash and short-term
securities
|
-
|
(126
|
)
|
(420
|
)
|
-
|
(546
|
)
|
||||||||||||
Balance, beginning of period
|
47
|
4,907
|
20,629
|
-
|
25,583
|
|||||||||||||||
Balance, end of period
|
53
|
3,191
|
15,622
|
-
|
18,866
|
|||||||||||||||
Cash and short-term securities
|
||||||||||||||||||||
Beginning of period
|
||||||||||||||||||||
Gross cash and short-term securities
|
47
|
5,213
|
20,907
|
-
|
26,167
|
|||||||||||||||
Net payments in transit, included in other liabilities
|
-
|
(306
|
)
|
(278
|
)
|
-
|
(584
|
)
|
||||||||||||
Net cash and short-term securities, beginning of period
|
47
|
4,907
|
20,629
|
-
|
25,583
|
|||||||||||||||
End of period
|
||||||||||||||||||||
Gross cash and short-term securities
|
53
|
3,651
|
16,017
|
-
|
19,721
|
|||||||||||||||
Net payments in transit, included in other liabilities
|
-
|
(460
|
)
|
(395
|
)
|
-
|
(855
|
)
|
||||||||||||
Net cash and short-term securities, end of period
|
$
|
53
|
$
|
3,191
|
$
|
15,622
|
$
|
-
|
$
|
18,866
|
||||||||||
Supplemental disclosures on cash flow information:
|
||||||||||||||||||||
Interest received
|
$
|
171
|
$
|
2,079
|
$
|
3,809
|
$
|
(378
|
)
|
$
|
5,681
|
|||||||||
Interest paid
|
222
|
33
|
643
|
(378
|
)
|
520
|
||||||||||||||
Income taxes paid (refund)
|
-
|
(118
|
)
|
343
|
-
|
225
|
MANULIFE FINANCIAL CORPORATION
HEAD OFFICE
200 Bloor Street East
Toronto, ON Canada M4W 1E5
Telephone: 416 926-3000
Online: www.manulife.com
INVESTOR RELATIONS
Financial analysts, portfolio managers and
other investors requiring financial information
may contact our Investor Relations Department
or access our website at www.manulife.com
Email: InvestRel@manulife.com
SHAREHOLDER SERVICES
For information or assistance regarding
your share account, including dividends,
changes of address or ownership, lost
certificates, to eliminate duplicate mailings
or to receive shareholder material
electronically, please contact our Transfer
Agents in Canada, the United States, Hong
Kong or the Philippines. If you live outside one
of these countries, please contact our Canadian
Transfer Agent.
|
TRANSFER AGENTS
Canada
TSX Trust Company
P.O. Box 700, Station B
Montreal, QC Canada H3B 3K3
Toll Free: 1 800 783-9495
Collect: 416 682-3864
Email: manulifeinquiries@tmx.com
Online: www.tsxtrust.com
TSX Trust Company offices are also
located in Toronto, Calgary, Montreal and
Vancouver.
United States
American Stock Transfer & Trust Company, LLC
P.O. Box 199036
Brooklyn, NY 11219
United States
Toll Free: 1 800 249-7702
Collect: 416 682-3864
Email: manulifeinquiries@tmx.com
Online: www.tsxtrust.com
Hong Kong
Tricor Investor Services Limited
17/F, Far East Finance Centre
16 Harcourt Road
Hong Kong
Telephone: 852 2980-1333
Email: is-enquiries@hk.tricorglobal.com Online: www.tricoris.com
|
Philippines
Rizal Commercial Banking Corporation
Ground Floor, West Wing
GPL (Grepalife) Building
221 Senator Gil Puyat Avenue
Makati City, Metro Manila, Philippines
Telephone: 632 5318-8567
Email: rcbcstocktransfer@rcbc.com
Online: www.rcbc.com/stocktransfer
AUDITORS
Ernst & Young LLP
Chartered Professional Accountants
Licensed Public Accountants
Toronto, Canada
|
The following Manulife
documents are available online at www.manulife.com
· Annual Report and Proxy Circular
· Notice of Annual Meeting
· Shareholders Reports
· Public Accountability Statement
· 2021 Environmental, Social and
Governance Report
|
||
Rating
|
Financial strength is a key factor in generating new business, maintaining and expanding
distribution relations and providing a base for expansion, acquisitions and growth. As at June 30, 2022, Manulife had total capital of C$62.8 billion, including C$55.5 billion of total shareholders’ and other equity.
The Manufacturers Life Insurance Company’s financial strength ratings are among the strongest in the insurance industry.
|
||||
Rating Agency |
MLI Rating |
Rank |
||
S&P |
AA- |
(4th of 21 ratings) |
||
Moody’s
|
A1
|
(5th of 21 ratings)
|
||
Fitch
|
AA-
|
(4th of 21 ratings)
|
||
DBRS Morningstar
|
AA
|
(3rd of 22 ratings)
|
||
AM Best
|
A+ (Superior)
|
(2nd of 13 ratings)
|
Common Stock Trading Data
|
The following values are the high, low and close prices, including the average daily trading volume
for Manulife Financial Corporation’s common stock on the Canadian exchanges, the U.S. exchanges, The Stock Exchange of Hong Kong and the Philippine Stock Exchange for the second quarter. The common stock symbol is MFC on all exchanges except Hong Kong where it is 945.
|
As at June 30, 2022, there were 1,911 million common
shares outstanding.
|
|||||
April 1 –
June 30, 2022
|
Canada
Canadian $
|
U.S.
United States $
|
Hong Kong
Hong Kong $
|
Philippines
Philippine
Pesos
|
||
High
|
$26.94
|
$21.47
|
$167.40
|
P 1,050
|
||
Low
|
$21.43
|
$16.49
|
$134.40
|
P 851
|
||
Close
|
$22.32
|
$17.33
|
$135.50
|
P 851
|
||
Average Daily
Volume (000)
|
13,253
|
4,820
|
32
|
0.3
|
Consent to receive documents electronically
|
Electronic documents available from Manulife.
Manulife is pleased to offer Electronic Documents. Access the
information when you want, no more waiting for the mail.
The Manulife documents available electronically are:
· Annual Report and Proxy Circular
· Notice of Annual Meeting
· Shareholder Reports
|
These documents will be available to you on our website
www.manulife.com at the same time as they are mailed to other
shareholders. Documents relating to the annual meeting, including
annual reports, will be available on the website at least until the next
version is available.
We will notify you when documents will be available on the website and confirm the instructions for accessing the documents at the same
time.
In the event that the documents are not available on our website, paper
copies will be mailed to you.
This information is also available for viewing or downloading under
quarterly reports from the Investor Relations section of our website at www.manulife.com
|
To receive documents electronically when they are available through
Manulife’s electronic delivery service, complete this form and
return it as indicated.
I have read and understand the statement on the reverse and consent to
receive
electronically the Manulife documents listed in the manner
described. I
acknowledge that I have the computer requirements to
access the
documents that are made available on Manulife’s website.
I understand
that I am not required to consent to electronic delivery
and that I may revoke my consent at any time.
Please note: We will contact you by phone only if there is a problem
with your email address.
The information provided is confidential and will not be used for any
purpose other than that described.
|
Please Print:
_________________________________________________________
Shareholder Name
_________________________________________________________
Contact Phone Number
_________________________________________________________
Shareholder Email Address
_________________________________________________________
Shareholder Signature
_________________________________________________________
Date
|
1. |
Review: I have reviewed the interim financial report and interim MD&A
(together, the “interim filings”) of Manulife Financial Corporation (the “issuer”) for the interim period ended June 30, 2022.
|
2. |
No misrepresentations: Based on my knowledge, having exercised reasonable
diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it
was made, with respect to the period covered by the interim filings.
|
3. |
Fair presentation: Based on my knowledge, having exercised reasonable
diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the
date of and for the periods presented in the interim filings.
|
4. |
Responsibility: The issuer’s other certifying officer(s) and I are
responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuer’s Annual and Interim Filings, for the issuer.
|
5. |
Design: Subject to the limitations, if any, described in paragraphs 5.2 and
5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings
|
(a) |
designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that
|
(i) |
material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and
|
(ii) |
information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded,
processed, summarized and reported within the time periods specified in securities legislation; and
|
(b) |
designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with the issuer’s GAAP.
|
5.1 |
Control framework: The control framework the issuer’s other certifying
officer(s) and I used to design the issuer’s ICFR is Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
|
5.2 |
N/A
|
5.3 |
N/A
|
6. |
Reporting changes in ICFR: The issuer has disclosed in its interim MD&A
any change in the issuer’s ICFR that occurred during the period beginning on April 1, 2022 and ended on June 30, 2022 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.
|
1. |
Review: I have reviewed the interim financial report and interim MD&A
(together, the “interim filings”) of Manulife Financial Corporation (the “issuer”) for the interim period ended June 30, 2022.
|
2. |
No misrepresentations: Based on my knowledge, having exercised reasonable
diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it
was made, with respect to the period covered by the interim filings.
|
3. |
Fair presentation: Based on my knowledge, having exercised reasonable
diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of
the date of and for the periods presented in the interim filings.
|
4. |
Responsibility: The issuer’s other certifying officer(s) and I are
responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuer’s Annual and Interim Filings, for the issuer.
|
5. |
Design: Subject to the limitations, if any, described in paragraphs 5.2
and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings
|
(a) |
designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that
|
(i) |
material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and
|
(ii) |
information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded,
processed, summarized and reported within the time periods specified in securities legislation; and
|
(b) |
designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with the issuer’s GAAP.
|
5.1 |
Control framework: The control framework the issuer’s other certifying
officer(s) and I used to design the issuer’s ICFR is Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
|
5.2 |
N/A
|
5.3 |
N/A
|
6. |
Reporting changes in ICFR: The issuer has disclosed in its interim
MD&A any change in the issuer’s ICFR that occurred during the period beginning on April 1, 2022 and ended on June 30, 2022 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.
|
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