Insurance (Tables)
|
12 Months Ended |
Oct. 31, 2022 |
|---|
| Statement [Line Items] |
|
| Summary of Net Premiums and Claims |
|
|
|
|
|
|
|
|
|
| |
|
For the year ended |
|
(Millions of Canadian dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
5,090 |
|
Premiums ceded to reinsurers |
|
|
|
|
|
|
(250 |
) |
|
|
|
|
|
|
$ |
4,840 |
|
Gross claims and benefits (1) |
|
|
|
|
|
$ |
3,834 |
|
Reinsurers’ share of claims and benefits |
|
|
|
|
|
|
(287 |
) |
|
|
|
|
|
|
$ |
3,547 |
|
| (1) |
|
Includes the change in fair value of investments backing our policyholder liabilities. |
|
| Significant Insurance Assumptions |
Significant insurance assumptions
|
|
|
|
|
|
|
|
|
| |
|
As at |
|
| |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.12% |
|
|
|
|
|
|
|
|
1.78 |
|
Future reinvestment yield (3) |
|
|
|
|
|
|
3.76 |
|
|
|
|
|
|
|
|
0.50 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.79 |
|
Future reinvestment yield (3) |
|
|
|
|
|
|
2.90 |
|
| (1) |
|
Average annual death rate for the largest portfolio of insured policies. |
| (2) |
|
Average net termination rate for the individual and group disability insurance portfolio. |
| (3) |
|
Ultimate reinvestment rate of the insurance operations. |
| (4) |
|
Ultimate policy termination rate (lapse rate) for the largest permanent life insurance portfolio that relies on a higher termination rate to maintain its profitability (lapse-supported policies). |
|
| Summary of Gross and Reinsurers' Share of Insurance Liabilities |
Insurance claims and policy benefit liabilities The following table summarizes our gross and reinsurers’ share of insurance liabilities at the end of the year.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at |
|
|
|
|
|
|
|
|
October 31, 2021 |
|
| |
|
|
|
|
|
|
|
(Millions of Canadian dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
Gross |
|
|
Ceded |
|
|
Net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
L ife insurance policyholder liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
12,775 |
|
|
$ |
861 |
|
|
$ |
11,914 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
42 |
|
|
|
– |
|
|
|
42 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
12,817 |
|
|
$ |
861 |
|
|
$ |
11,956 |
|
Non-life insurance policyholder liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unearned premium provision (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
6 |
|
|
$ |
– |
|
|
$ |
6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
41 |
|
|
|
3 |
|
|
|
38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
47 |
|
|
$ |
3 |
|
|
$ |
44 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
12,864 |
|
|
$ |
864 |
|
|
$ |
12,000 |
|
| (1) |
|
L iabilities for investment contracts and unearned premium provision are reported in Other liabilities on the Consolidated Balance Sheets. |
|
| Reconciliation of Life Insurance Policyholder Liabilities |
Reconciliation of life insurance policyholder liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the year ended |
|
| |
|
|
|
|
|
|
October 31, 2021 |
|
| |
|
|
|
|
|
|
|
(Millions of Canadian dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
Gross |
|
|
Ceded |
|
|
Net |
|
Balances at beginning of period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
12,123 |
|
|
$ |
752 |
|
|
$ |
11,371 |
|
New and in-force policies (1) |
|
|
|
) |
|
|
|
) |
|
|
|
) |
|
|
|
|
775 |
|
|
|
108 |
|
|
|
667 |
|
Changes in assumption and methodology |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(89 |
) |
|
|
1 |
|
|
|
(90 |
) |
Net change in investment contracts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8 |
|
|
|
– |
|
|
|
8 |
|
Balances at end of period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
12,817 |
|
|
$ |
861 |
|
|
$ |
11,956 |
|
| (1) |
|
Includes the change in fair value of investments backing our policyholder liabilities. |
|
| Sensitivity Analysis of Insurance Policyholder Liabilities to Reasonably Possible Changes in Actuarial Assumptions |
The analyses are performed where a single assumption is changed while holding other assumptions constant, which is unlikely to occur in practice.
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
Net income impact
for the year ended |
|
(Millions of Canadian dollars, except for percentage amounts) |
|
Change in
variable |
|
|
October 31 2022 |
|
|
October 31 2021 |
|
Increase in market interest rates (1) |
|
|
1% |
|
|
$ |
(10 |
) |
|
$ |
(14 |
) |
Decrease in market interest rates (1) |
|
|
1 |
|
|
|
5 |
|
|
|
17 |
|
Increase in equity market values (2) |
|
|
10 |
|
|
|
6 |
|
|
|
8 |
|
Decrease in equity market values (2) |
|
|
10 |
|
|
|
(10 |
) |
|
|
(10 |
) |
Increase in maintenance expenses (3) |
|
|
5 |
|
|
|
(33 |
) |
|
|
(37 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Adverse change in annuitant mortality rates |
|
|
2 |
|
|
|
(166 |
) |
|
|
(287 |
) |
| Adverse change in assurance mortality rates |
|
|
2 |
|
|
|
(59 |
) |
|
|
(67 |
) |
| Adverse change in morbidity rates |
|
|
5 |
|
|
|
(181 |
) |
|
|
(213 |
) |
| Adverse change in lapse rates |
|
|
10 |
|
|
|
(199 |
) |
|
|
(253 |
) |
| (1) |
|
Sensitivities for market interest rates include the expected current period earnings impact of a 100 basis points shift in the yield curve by increasing the current reinvestment rates while holding the assumed ultimate rates constant. The sensitivity consists of both the impact on assumed reinvestment rates in the actuarial liabilities and any changes in fair value of assets and liabilities from the yield curve shift. |
| (2) |
|
Sensitivities to changes in equity market values are composed of the expected current period earnings impact from differences in the changes in fair value of the equity asset holdings and the partially offsetting impact on the actuarial liabilities. |
| (3) |
|
Sensitivities to changes in maintenance expenses and life insurance actuarial assumptions include the expected current period earnings impact from recognition of increased liabilities due to an adverse change in the given assumption over the lifetime of all in-force policies. |
|