v3.25.4
Invested Assets and Investment Income
 12 Months Ended
Dec. 31, 2025
Analysis of income and expense [abstract]  
Invested Assets and Investment Income Invested Assets and Investment IncomeCarrying Values and Fair Values of Invested Assets
As at December 31, 2025
FVTPL(1)
FVOCI(2)
Other(3)
Total carrying
value
Total fair
value(4)
Cash and short-term securities(5)
$-
$20,827
$5,876
$26,703
$26,703
Debt securities(6)
Canadian government and agency
966
17,708
-
18,674
18,674
U.S. government and agency
39
26,595
632
27,266
26,999
Other government and agency
63
37,419
-
37,482
37,482
Corporate
2,742
125,184
504
128,430
128,248
Mortgage / asset-backed securities
270
1,992
-
2,262
2,262
Public equities (FVTPL mandatory)
40,971
-
-
40,971
40,971
Mortgages
1,351
28,589
27,179
57,119
57,600
Private placements
953
50,829
-
51,782
51,782
Loans to Bank clients
-
-
2,735
2,735
2,699
Real estate
Own use property(7),(8)
-
-
2,631
2,631
2,762
Investment property
-
-
10,051
10,051
10,051
Other invested assets
Alternative long-duration assets(9)
35,101
383
13,545
49,029
50,132
Various other(10)
145
-
4,648
4,793
4,793
Total invested assets
$82,601
$309,526
$67,801
$459,928
$461,158
(1)FVTPL classification was elected for debt instruments backing certain insurance contract liabilities to substantially reduce any accounting mismatch arising from
changes in the fair value of these assets, or changes in the carrying value of the related insurance contract liabilities.
(2)FVOCI classification for debt instruments backing certain insurance contract liabilities inherently reduces any accounting mismatch arising from changes in the fair
value of these assets, or changes in the carrying value of the related insurance contract liabilities.
(3)Other includes mortgages and loans to Bank clients held at amortized cost, own use properties held at fair value or cost, investment properties held at fair value,
and equity method accounted investments (including leveraged leases). Also includes debt securities, which qualify as having SPPI, are held to collect contractual
cash flows and are carried at amortized cost.
(4)Invested assets above include debt securities, mortgages, private placements and approximately $383 (2024 – $389) of other invested assets, which primarily
qualify as having SPPI qualifying cash flows. Invested assets which do not have SPPI qualifying cash flows as at December 31, 2025 include debt securities,
private placements and other invested assets with fair values of $nil, $98 and $552, respectively (2024 – $nil, $132 and $547, respectively). The change in the fair
value of these non-SPPI invested assets for the year ended December 31, 2025 was a decrease of $29 (2024 – an increase of $25). The methodologies used in
determining fair values of invested assets are described in note 1 (c) and note 3 (g).
(5)Includes short-term securities with maturities of less than one year at acquisition amounting to $11,791 (2024 – $10,121), cash equivalents with maturities of less
than 90 days at acquisition amounting to $9,135 (2024 – $9,813) and cash of $5,777 (2024 – $5,855).
(6)Debt securities include securities which were acquired with remaining maturities of less than one year and less than 90 days of $1,842 and $236, respectively
(2024 – $1,266 and $145, respectively).
(7)Includes accumulated depreciation of $66 (2024 – $65).
(8)Own use property of $2,466 as at December 31, 2025 (December 31, 2024 – $2,500), are underlying items for insurance contracts with direct participating
features and are measured at fair value as if they were investment properties, as permitted by IAS 16. Own use property of $165 (December 31, 2024 – $174) is
carried at cost less accumulated depreciation and any accumulated impairment losses.
(9)ALDA include investments in private equity of $18,466, infrastructure of $18,629, timber and agriculture of $6,012, energy of $1,658 and various other ALDA of
$4,264 (2024 – $18,343, $17,804, $5,917, $1,916 and $3,883, respectively).
(10)Includes $4,266 (2024 – $4,300) of leveraged leases. Refer to note 1 (e).
As at December 31, 2024
FVTPL(1)
FVOCI(2)
Other(3)
Total carrying
value
Total fair
value(4)
Cash and short-term securities(5)
$25
$19,909
$5,855
$25,789
$25,789
Debt securities(6)
Canadian government and agency
1,056
18,671
-
19,727
19,727
U.S. government and agency
58
27,628
968
28,654
28,366
Other government and agency
68
35,402
-
35,470
35,470
Corporate
2,761
121,674
527
124,962
124,762
Mortgage / asset-backed securities
17
1,791
-
1,808
1,808
Public equities (FVTPL mandatory)
33,725
-
-
33,725
33,725
Mortgages
1,239
28,792
24,416
54,447
54,812
Private placements
866
48,802
-
49,668
49,668
Loans to Bank clients
-
-
2,310
2,310
2,285
Real estate
Own use property(7),(8)
-
-
2,674
2,674
2,798
Investment property
-
-
10,589
10,589
10,589
Other invested assets
Alternative long-duration assets(9)
34,334
389
13,140
47,863
48,875
Various other(10)
140
-
4,671
4,811
4,811
Total invested assets
$74,289
$303,058
$65,150
$442,497
$443,485
Note: For footnotes (1) to (10), refer to the “Carrying Values and Fair Values of Invested Assets” table for the year ended December 31, 2025 above.
Investment Income
For the year ended December 31, 2025
FVTPL
FVOCI
Other(1)
Total
Cash and short-term securities
Interest income
$-
$896
$-
$896
Gains (losses)(2)
-
(25)
-
(25)
Debt securities
Interest income
165
8,160
28
8,353
Gains (losses)(2)
(12)
230
-
218
Impairment (loss) / recovery, net
-
(4)
-
(4)
Public equities
Dividend income
853
-
-
853
Gains (losses)(2)
5,425
-
-
5,425
Mortgages
Interest income
54
1,222
1,102
2,378
Gains (losses)(2)
24
30
7
61
Impairment (loss) / recovery, net
-
(1)
(1)
(2)
Private placements
Interest income
40
2,575
-
2,615
Gains (losses)(2)
12
151
-
163
Impairment (loss) / recovery, net
-
(87)
-
(87)
Loans to Bank clients
Interest income
-
-
141
141
Impairment (loss) / recovery, net
-
-
(2)
(2)
Real estate
Rental income, net of depreciation(3)
-
-
471
471
Gains (losses)(2)
-
-
(38)
(38)
Impairment (loss) / recovery, net
-
-
-
-
Derivatives
Interest income, net
(201)
-
-
(201)
Gains (losses)(2)
258
-
-
258
Other invested assets
Interest income
21
7
-
28
Timber, agriculture and other income
2,538
-
1,008
3,546
Gains (losses)(2)
345
-
(92)
253
Impairment (loss) / recovery, net
-
1
(12)
(11)
Total investment income (loss)
$9,522
$13,155
$2,612
$25,289
Investment income
Interest income
$79
$12,860
$1,271
$14,210
Dividends, rental income and other income
3,391
-
1,479
4,870
Impairment (loss) / recovery, net
-
(91)
(15)
(106)
Other
62
(16)
(6)
40
3,532
12,753
2,729
19,014
Realized and unrealized gains (losses) on assets supporting insurance and investment
contract liabilities
Debt securities
(12)
238
-
226
Public equities
5,231
-
-
5,231
Mortgages
24
30
7
61
Private placements
12
149
-
161
Real estate
-
-
(29)
(29)
Other invested assets
365
(15)
(95)
255
Derivatives
370
-
-
370
5,990
402
(117)
6,275
Total investment income (loss)
$9,522
$13,155
$2,612
$25,289
Investment expenses
(1,342)
Net investment income (loss)
$23,947
(1)Includes investment income on debt securities, mortgages and loans carried at amortized cost, own use real estate properties, investment real estate properties,
equity method accounted investments, energy investments and leveraged leases.
(2)Includes net realized and unrealized gains (losses) for financial instruments at FVTPL, investment real estate properties, and other invested assets measured at
fair value. Also includes net realized gains (losses) for financial instruments at FVOCI and other invested assets carried at amortized cost.
(3)Rental income from investment real estate properties is net of direct operating expenses.
For the year ended December 31, 2024
FVTPL
FVOCI
Other(1)
Total
Cash and short-term securities
Interest income
$1
$978
$-
$979
Gains (losses)(2)
-
72
-
72
Debt securities
Interest income
156
7,914
29
8,099
Gains (losses)(2)
(44)
(1,621)
-
(1,665)
Impairment (loss) / recovery, net
-
92
-
92
Public equities
Dividend income
814
-
-
814
Gains (losses)(2)
4,324
-
-
4,324
Mortgages
Interest income
47
1,203
1,154
2,404
Gains (losses)(2)
32
(165)
5
(128)
Impairment (loss) / recovery, net
-
104
1
105
Private placements
Interest income
36
2,473
-
2,509
Gains (losses)(2)
25
284
-
309
Impairment (loss) / recovery, net
-
(47)
-
(47)
Loans to Bank clients
Interest income
-
-
176
176
Impairment (loss) / recovery, net
-
-
(3)
(3)
Real estate
Rental income, net of depreciation(3)
-
-
460
460
Gains (losses)(2)
-
-
(596)
(596)
Impairment (loss) / recovery, net
-
-
-
-
Derivatives
Interest income, net
(438)
-
-
(438)
Gains (losses)(2)
(675)
-
-
(675)
Other invested assets
Interest income
20
12
-
32
Timber, agriculture and other income
1,675
-
770
2,445
Gains (losses)(2)
1,098
8
123
1,229
Impairment (loss) / recovery, net
-
(8)
(30)
(38)
Total investment income (loss)
$7,071
$11,299
$2,089
$20,459
Investment income
Interest income
$(178)
$12,580
$1,359
$13,761
Dividends, rental income and other income
2,489
-
1,230
3,719
Impairment (loss) / recovery, net
-
141
(32)
109
Other
354
309
(3)
660
2,665
13,030
2,554
18,249
Realized and unrealized gains (losses) on assets supporting insurance and investment
contract liabilities
Debt securities
(45)
(1,812)
-
(1,857)
Public equities
4,178
-
-
4,178
Mortgages
32
(188)
5
(151)
Private placements
25
210
-
235
Real estate
-
-
(592)
(592)
Other invested assets
1,075
59
122
1,256
Derivatives
(859)
-
-
(859)
4,406
(1,731)
(465)
2,210
Total investment income (loss)
$7,071
$11,299
$2,089
$20,459
Investment expenses
(1,348)
Net investment income (loss)
$19,111
Note: For footnotes (1) to (3), refer to the “Investment Income” table for the year ended December 31, 2025 above.
Equity Method Accounted Invested Assets
Other invested assets include investments in associates and joint ventures which are accounted for using the equity method of
accounting as presented in the following table.
2025
2024
As at December 31,
Carrying
value
% of total
Carrying
value
% of total
Leveraged leases
$4,266
33%
$4,300
34%
Infrastructure
5,132
39%
4,848
38%
Timber and agriculture
847
6%
837
7%
Real estate
2,168
17%
2,098
16%
Other
644
5%
673
5%
Total
$13,057
100%
$12,756
100%
The Company recorded income of $738 (2024 – $398) for these equity method accounted invested assets for the year ended
December 31, 2025.
Investment Expenses
The following table presents total investment expenses.
For the years ended December 31,
2025
2024
Related to invested assets
$841
$731
Related to segregated, mutual and other funds
501
617
Total investment expenses
$1,342
$1,348
Investment Properties Rental Income
The following table presents the rental income and direct operating expenses of investment properties.
For the years ended December 31,
2025
2024
Rental income from investment properties
$845
$859
Direct operating expenses of rental investment properties
(474)
(483)
Total
$371
$376
Mortgage Securitization
The Company securitizes uninsured Home Equity Lines of Credit (“HELOC”) mortgages through the Platinum Canadian
Mortgage Trust II (“PCMT”) program and participates in two Canada Housing and Mortgage Corporation (“CMHC”) residential
mortgage securitization programs: the National Housing Act Mortgage-Backed Securities (“NHA MBS”) program and the
Canadian Mortgage Bond (“CMB”) program.
HELOCs sold to Platinum Trust II, and securitized single family residential mortgages remain on the Company’s balance sheet
because prepayment and interest rate risk is retained, and notes payable are recognized, accounted for at amortized cost. 3rd
party originated multi-unit residential mortgages transferred to the NHA MBS program remain on the Company’s balance sheet
onto to the extent of the retained interests with gains or losses recognized on transfer. NHA MBS are also sold directly to the
market.
Benefits received from these securitizations include a source of fixed rate funding and interest spread between the securitized
assets and related secured borrowing liabilities. There is no credit exposure from securitized mortgages under the Canada
Mortgage and Housing Corporation (“CMHC”) sponsored CMB securitization program as they are insured by CMHC and other
third-party insurance programs against borrowers’ default.
Cash flows received from the underlying securitized mortgages are used to settle the related secured borrowing liabilities. For
CMB transactions, receipts of mortgage principal are deposited into a trust account for settlement of the related liabilities at time
of maturity. These securitized assets and their related cash flows cannot be further transferred or used for other purposes by the
Company. For HELOC transactions, investors are entitled to periodic interest payments, and the remaining cash receipts of
mortgage principal are allocated to the Company (the “Seller”) during the revolving periods of the transactions and are
accumulated for settlement during accumulation periods or repaid to the investors monthly during reduction periods, based on
the terms of the notes.
Securitized assets and secured borrowing liabilities
As at December 31, 2025
Securitized assets
Securitization program
Securitized
mortgages
Restricted
cash and
short-term
securities
Total
Secured
borrowing
liabilities(1)
Net
HELOC securitization(2)
$3,664
$9
$3,673
$3,500
$173
CMB securitization(3)
3,358
-
3,358
3,366
(8)
Total
$7,022
$9
$7,031
$6,866
$165
As at December 31, 2024
Securitized assets
Securitization program
Securitized
mortgages
Restricted
cash and
short-term
securities
Total
Secured
borrowing
liabilities(1)
Net
HELOC securitization(2)
$3,141
$22
$3,163
$3,000
$163
CMB securitization(3)
3,274
-
3,274
3,217
57
Total
$6,415
$22
$6,437
$6,217
$220
(1)The PCMT II notes payable have floating rates of interest and are secured by the PCMT II assets. Under the terms of the agreements, principal of $nil is expected
to be repaid within one year, $2,453 within 1-3 years, $1,047 within 3-5 years and $nil beyond 5 years (2024 – $nil, $1,036, $1,964 and $nil, respectively). There is
no specific maturity date for the contractual agreements. Under the terms of the notes, additional collateral must be provided to the series as added credit
protection and the Series Purchase Agreements govern the amount of over-collateralization for each of the term notes outstanding.
(2)Manulife Bank securitizes a portion of its HELOC receivables through PCMT II. PCMT II funds the purchase of the co-ownership interests from Manulife Bank by
issuing term notes collateralized by an underlying pool of uninsured HELOCs to institutional investors. The restricted cash balance for the HELOC securitization
reflects a cash reserve fund established in relation to the transactions. The reserve will be drawn upon only in the event of insufficient cash flows from the
underlying HELOCs to satisfy the secured borrowing liabilities.
(3)Manulife Bank also securitizes insured amortizing mortgages under the NHA MBS program sponsored by CMHC. Manulife Bank participates in CMB programs by
selling NHA MBS securities to Canada Housing Trust (“CHT”) as well as to market, as a source of fixed-rate funding. CMB securitization included sales to CHT of
$2,984 in securitized assets and $2,989 in securitized borrowing liabilities (2024 – $3,274 and $3,217, respectively); and sales to the market of $374 in securitized
assets and $377 in secured borrowing liabilities (2024 – $nil and $nil, respectively).
As at December 31, 2025, the fair values of securitized assets and related liabilities were $7,137 and $6,855, respectively (2024
– $6,521 and $6,182, respectively).
Fair Value Measurement
The following tables present fair values and the fair value hierarchy of invested assets and segregated funds net assets
measured at fair value in the Consolidated Statements of Financial Position.
As at December 31, 2025
Total fair
value
Level 1
Level 2
Level 3
Cash and short-term securities
FVOCI
$20,827
$-
$20,827
$-
FVTPL
-
-
-
-
Other
5,777
5,777
-
-
Debt securities
FVOCI
Canadian government and agency
17,708
-
17,708
-
U.S. government and agency
26,595
-
26,595
-
Other government and agency
37,419
-
37,405
14
Corporate
125,184
-
125,090
94
Residential mortgage-backed securities
1
-
1
-
Commercial mortgage-backed securities
781
-
781
-
Other asset-backed securities
1,210
-
1,210
-
FVTPL
Canadian government and agency
966
-
966
-
U.S. government and agency
39
-
39
-
Other government and agency
63
-
63
-
Corporate
2,742
-
2,742
-
Commercial mortgage-backed securities
5
-
5
-
Other asset-backed securities
265
-
255
10
Private placements(1)
FVOCI
50,829
-
40,502
10,327
FVTPL
953
-
799
154
Mortgages
FVOCI
28,589
-
-
28,589
FVTPL
1,351
-
-
1,351
Public equities
FVTPL
40,971
40,900
71
-
Real estate(2)
Investment property
10,051
-
-
10,051
Own use property
2,466
-
-
2,466
Other invested assets(3)
39,405
70
-
39,335
Segregated funds net assets(4)
461,254
423,407
34,949
2,898
Total
$875,451
$470,154
$310,008
$95,289
(1)Fair value of private placements is determined through an internal valuation methodology using both observable and unobservable inputs. Unobservable inputs
include credit assumptions and liquidity spread adjustments. Private placements are classified within Level 2 unless the liquidity spread adjustment constitutes a
significant price impact, in which case they are classified as Level 3.
(2)For real estate properties, the significant unobservable inputs are capitalization rates ranging from 3.20% to 11.00% during the year ended December 31, 2025
(2024 – ranging from 3.10% to 9.50%), terminal capitalization rates ranging from 3.25% to 10.00% during the year ended December 31, 2025 (2024 – ranging
from 3.10% to 10.00%) and discount rates ranging from 3.60% to 13.75% during the year ended December 31, 2025 (2024 – ranging from 3.60% to 13.75%).
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.
(3)Other invested assets measured at fair value are held in infrastructure and timberland sectors and include fund investments of $32,804 (2024 – $31,435) recorded
at net asset value. 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 year ended December 31, 2025
ranged from 7.87% to 20.00% (2024 – ranged from 7.42% to 20.00%). 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 year ended December 31, 2025 ranged from 3.25% to 6.25% (2024 – ranged from
3.25% to 6.25%). 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.
(4)Segregated funds net assets are measured at fair value. The Company’s Level 3 segregated funds underlying assets are predominantly investment properties and
timberland properties valued as described above.
As at December 31, 2024
Total fair
value
Level 1
Level 2
Level 3
Cash and short-term securities
FVOCI
$19,909
$-
$19,909
$-
FVTPL
25
-
25
-
Other
5,855
5,855
-
-
Debt securities
FVOCI
Canadian government and agency
18,671
-
18,671
-
U.S. government and agency
27,628
-
27,628
-
Other government and agency
35,402
-
35,392
10
Corporate
121,674
-
121,630
44
Residential mortgage-backed securities
5
-
5
-
Commercial mortgage-backed securities
270
-
270
-
Other asset-backed securities
1,516
-
1,516
-
FVTPL
Canadian government and agency
1,056
-
1,056
-
U.S. government and agency
58
-
58
-
Other government and agency
68
-
68
-
Corporate
2,761
-
2,761
-
Commercial mortgage-backed securities
2
-
2
-
Other asset-backed securities
15
-
15
-
Private placements(1)
FVOCI
48,802
-
40,038
8,764
FVTPL
866
-
730
136
Mortgages
FVOCI
28,792
-
-
28,792
FVTPL
1,239
-
-
1,239
Public equities
FVTPL
33,725
33,650
75
-
Real estate(2)
Investment property
10,589
-
-
10,589
Own use property
2,500
-
-
2,500
Other invested assets(3)
38,543
77
-
38,466
Segregated funds net assets(4)
435,988
399,043
33,611
3,334
Total
$835,959
$438,625
$303,460
$93,874
Note: For footnotes (1) to (4), refer to the “Fair Value Measurement” table as at December 31, 2025 above.
The following tables present fair value of invested assets not measured at fair value by the fair value hierarchy.
As at December 31, 2025
Carrying
value
Total fair
value
Level 1
Level 2
Level 3
Short-term securities
$99
$99
$-
$-
$99
Mortgages(1)
27,179
27,660
-
-
27,660
Loans to Bank clients(2)
2,735
2,699
-
2,699
-
Real estate - own use property(3)
165
296
-
-
296
Public bonds held at amortized cost
1,136
687
-
687
-
Other invested assets(4)
14,417
15,520
564
-
14,956
Total invested assets disclosed at fair value
$45,731
$46,961
$564
$3,386
$43,011
As at December 31, 2024
Carrying
value
Total fair
value
Level 1
Level 2
Level 3
Short-term securities
$-
$-
$-
$-
$-
Mortgages(1)
24,416
24,781
-
-
24,781
Loans to Bank clients(2)
2,310
2,285
-
2,285
-
Real estate - own use property(3)
174
298
-
-
298
Public bonds held at amortized cost
1,495
1,007
-
1,007
-
Other invested assets(4)
14,131
15,143
542
-
14,601
Total invested assets disclosed at fair value
$42,526
$43,514
$542
$3,292
$39,680
(1)Fair value of commercial mortgages is determined through an internal valuation methodology using both observable and unobservable inputs. Unobservable
inputs include credit assumptions and liquidity spread adjustments. Fair value of fixed-rate residential mortgages is determined using the discounted cash flow
method. Inputs used for valuation are primarily comprised of prevailing interest rates and prepayment rates, if applicable. Fair value of variable-rate residential
mortgages is assumed to be their carrying value.
(2)Fair value of fixed-rate loans to Bank clients is determined using the discounted cash flow method. Inputs used for valuation are primarily comprised of current
interest rates. Fair value of variable-rate loans is assumed to be their carrying value.
(3)Fair value of own use real estate and the fair value hierarchy are determined in accordance with the methodologies described for real estate – investment property
in note 1 (e).
(4)The carrying value of other invested assets includes leveraged leases of $4,266 (2024 – $4,300), other equity method accounted investments and other invested
assets of $10,151 (2024 – $9,831). Fair value of leveraged leases is disclosed at its carrying value as fair value is not routinely calculated on these investments.
Fair value of equity method accounted investments and other invested assets is determined using a variety of valuation techniques including discounted cash
flows and market comparable approaches. Inputs vary based on the specific investment.
Transfers between Level 1 and Level 2
The Company records transfers of assets and liabilities between Level 1 and Level 2 at their fair values as at the end of each
reporting period, consistent with the date of the determination of fair value. Assets are transferred out of Level 1 when they are
no longer transacted with sufficient frequency and volume in an active market. Conversely, assets are transferred from Level 2 to
Level 1 when transaction volume and frequency are indicative of an active market. During the year ended December 31, 2025,
the Company had $nil transfers between Level 1 and Level 2 (2024 – $nil).
For segregated funds net assets, during the year ended December 31, 2025, the Company had $nil transfers from Level 1 to
Level 2 (2024 – $nil). During the year ended December 31, 2025, the Company had $nil transfers from Level 2 to Level 1 (2024
– $nil).
Invested assets and segregated funds net assets measured at fair value using significant unobservable inputs (Level 3)
The Company classifies fair values of invested assets and segregated funds net assets as Level 3 if there are no observable
market inputs for these assets, or in the presence of active markets significant unobservable inputs are used to determine fair
value. The Company prioritizes the use of market-based inputs over unobservable inputs in determining Level 3 fair values. The
gains and losses in the table below include the changes in fair value due to both observable and unobservable factors.
The following tables present the movement in invested assets, net derivatives and segregated funds net assets measured at fair
value using significant unobservable inputs (Level 3) for the years ended December 31, 2025 and 2024.
For the year ended
December 31, 2025
Balance,
January
1, 2025
Total
gains
(losses)
included
in net
income(1)
Total
gains
(losses)
included
in OCI(2)
Purchases
Sales
Settlements
Transfer
in(3)
Transfer
out(3)(4)
Currency
movement
Balance,
December
31, 2025
Change in
unrealized
gains
(losses) on
assets still
held
Debt securities
FVOCI
Other government &
agency
$10
$-
$5
$4
$-
$(4)
$-
$-
$(1)
$14
$-
Corporate
44
-
(1)
-
-
(3)
57
-
(3)
94
-
FVTPL
Other securitized
assets
-
-
-
10
-
-
-
-
-
10
-
Private placements
FVOCI
8,764
(74)
(181)
3,405
(370)
(1,046)
382
(277)
(276)
10,327
-
FVTPL
136
-
-
74
-
(43)
74
(89)
2
154
-
Mortgages
FVOCI
28,792
34
858
2,779
(2,187)
(776)
-
-
(911)
28,589
-
FVTPL
1,239
14
-
205
(54)
(51)
-
-
(2)
1,351
-
Investment
property
10,589
(91)
-
140
(330)
-
-
-
(257)
10,051
(105)
Own use property
2,500
(25)
-
25
(3)
-
-
-
(31)
2,466
(25)
Other invested
assets
38,466
619
16
5,143
(1,539)
(2,138)
-
-
(1,232)
39,335
376
Total invested
assets
90,540
477
697
11,785
(4,483)
(4,061)
513
(366)
(2,711)
92,391
246
Derivatives, net
(3,235)
54
(2)
-
-
(105)
-
3,233
59
4
(30)
Segregated funds
net assets
3,334
214
(292)
48
(381)
50
-
-
(75)
2,898
26
Total
$90,639
$745
$403
$11,833
$(4,864)
$(4,116)
$513
$2,867
$(2,727)
$95,293
$242
(1)These amounts are included in Net investment income on the Consolidated Statements of Income except for the amount related to segregated funds net assets,
where the amount is recorded in Investment income related to segregated funds net assets. Refer to note 1 (h).
(2)These amounts are included in OCI on the Consolidated Statements of Comprehensive Income.
(3)The Company uses fair value 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 year and at the beginning of the year, respectively.
(4)The derivatives transferred from Level 3 to Level 2 amounting to $3,233 in the current period are related to derivative contracts that no longer have unobservable
inputs for determining fair values. Forward contracts and other derivatives which continue to have unobservable inputs are still classified as Level 3.
For the year ended
December 31, 2024
Balance,
January
1, 2024
Total gains
(losses)
included in
net
income(1)
Total
gains
(losses)
included
in OCI(2)
Purchases
Sales
Settlements
Transfer
in(3)
Transfer
out(3)
Currency
movement
Balance,
December
31, 2024
Change in
unrealized
gains
(losses) on
assets still
held
Debt securities
FVOCI
Other government &
agency
$10
$-
$-
$-
$-
$(5)
$4
$-
$1
$10
$-
Corporate
231
-
(33)
-
-
(7)
-
(151)
4
44
-
Other securitized
assets
21
-
33
-
-
(22)
-
(33)
1
-
-
Public equities
FVTPL
41
(3)
-
-
(1)
-
-
(36)
(1)
-
(3)
Private placements
FVOCI
7,682
(47)
50
3,039
(1,115)
(1,040)
254
(624)
565
8,764
-
FVTPL
79
1
-
49
-
(13)
29
(14)
5
136
1
Mortgages
FVOCI
28,473
(73)
109
2,243
(2,834)
(763)
-
-
1,637
28,792
-
FVTPL
1,055
32
-
339
(152)
(38)
-
-
3
1,239
-
Investment
property
10,458
(504)
-
222
(66)
-
-
-
479
10,589
(514)
Own use property
2,430
(82)
-
19
-
-
-
-
133
2,500
(82)
Other invested
assets
33,585
1,502
14
4,308
(2,007)
(1,187)
-
-
2,251
38,466
1,251
Total invested
assets
84,065
826
173
10,219
(6,175)
(3,075)
287
(858)
5,078
90,540
653
Derivatives, net
(2,166)
(2,248)
-
-
-
(166)
-
1,509
(164)
(3,235)
(2,065)
Segregated funds
net assets
3,492
119
(67)
148
(527)
17
-
-
152
3,334
(76)
Total
$85,391
$(1,303)
$106
$10,367
$(6,702)
$(3,224)
$287
$651
$5,066
$90,639
$(1,488)
(1)These amounts are included in Net investment income on the Consolidated Statements of Income except for the amount related to segregated funds net assets,
where the amount is recorded in Investment income related to segregated funds net assets. Refer to note 1 (h).
(2)These amounts are included in OCI on the Consolidated Statements of Comprehensive Income.
(3)The Company uses fair value 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 year and at the beginning of the year, respectively.
Transfers into Level 3 primarily result where a lack of observable market data (versus the previous period) arises. Transfers from
Level 3 primarily result from observable market data becoming available for derivatives, or for the entire term structure of the
private placements.
Remaining Term to Maturity
The following tables present remaining term to maturity for invested assets.
Remaining term to maturity(1)
As at December 31, 2025
Less than 1
year
1 to 3 years
3 to 5 years
5 to 10 years
Over 10 years
With no
specific
maturity
Total
Cash and short-term securities
$26,703
$-
$-
$-
$-
$-
$26,703
Debt securities
Canadian government and agency
1,349
1,082
779
3,888
11,576
-
18,674
U.S. government and agency
160
798
1,619
2,625
22,064
-
27,266
Other government and agency
349
1,054
804
3,155
32,120
-
37,482
Corporate
8,522
15,619
16,387
36,055
51,847
-
128,430
Mortgage / asset-backed securities
121
212
215
388
1,326
-
2,262
Public equities
-
-
-
-
-
40,971
40,971
Mortgages
6,572
12,099
9,922
6,825
10,288
11,413
57,119
Private placements
2,030
6,001
5,197
10,796
27,718
40
51,782
Loans to Bank clients
46
9
4
-
-
2,676
2,735
Real estate
Own use property
-
-
-
-
-
2,631
2,631
Investment property
-
-
-
-
-
10,051
10,051
Other invested assets
Alternative long-duration assets
-
18
104
287
504
48,116
49,029
Various other
20
-
-
3,725
521
527
4,793
Total invested assets
$45,872
$36,892
$35,031
$67,744
$157,964
$116,425
$459,928
Remaining term to maturity(1)
As at December 31, 2024
Less than 1
year
1 to 3 years
3 to 5 years
5 to 10 years
Over 10 years
With no
specific
maturity
Total
Cash and short-term securities
$25,789
$-
$-
$-
$-
$-
$25,789
Debt securities
Canadian government and agency
543
2,282
678
3,339
12,885
-
19,727
U.S. government and agency
644
640
1,473
4,699
21,198
-
28,654
Other government and agency
372
1,208
1,056
3,566
29,268
-
35,470
Corporate
7,810
15,763
15,817
33,818
51,754
-
124,962
Mortgage / asset-backed securities
60
260
213
450
825
-
1,808
Public equities
-
-
-
-
-
33,725
33,725
Mortgages
4,741
11,944
10,478
7,617
9,876
9,791
54,447
Private placements
1,534
5,093
4,986
10,463
27,500
92
49,668
Loans to Bank clients
47
13
3
-
-
2,247
2,310
Real estate
Own use property
-
-
-
-
-
2,674
2,674
Investment property
-
-
-
-
-
10,589
10,589
Other invested assets
Alternative long-duration assets
67
-
85
276
524
46,911
47,863
Various other
-
20
-
3,623
657
511
4,811
Total invested assets
$41,607
$37,223
$34,789
$67,851
$154,487
$106,540
$442,497
(1)Represents contractual maturities. Actual maturities may differ due to prepayment privileges in the applicable contract.