v3.25.4
Goodwill and Intangible Assets
 12 Months Ended
Dec. 31, 2025
Goodwill And Intangible Assets [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible AssetsChange in the Carrying Value of Goodwill and Intangible Assets
The following tables present the changes in carrying value of goodwill and intangible assets.
For the year ended December 31, 2025
Balance,
January 1,
2025
Net additions/
(disposals)(1),(3)
Amortization
expense
Effect of
changes in
foreign
exchange
rates
Balance,
December 31,
2025
Goodwill
$6,275
$739
$            n/a
$(137)
$6,877
Indefinite life intangible assets
Brand
866
21
n/a
(43)
844
Fund management contracts and other(4)
1,258
175
  n/a
(34)
1,399
2,124
196
  n/a
(77)
2,243
Finite life intangible assets(5)
Distribution networks
840
59
(69)
(38)
792
Customer relationships
542
280
(34)
(14)
774
Software
1,212
385
(254)
(32)
1,311
Fund management contracts and other
59
277
(7)
(2)
327
2,653
1,001
(364)
(86)
3,204
Total intangible assets
4,777
1,197
(364)
(163)
5,447
Total goodwill and intangible assets
$11,052
$1,936
$(364)
$(300)
$12,324
For the year ended December 31, 2024
Balance,
January 1,
2024
Net additions/
(disposals)(2)
Amortization
expense
Effect of
changes in
foreign
exchange
rates
Balance,
December 31,
2024
Goodwill
$5,919
$150
$            n/a
$206
$6,275
Indefinite life intangible assets
Brand
791
3
  n/a
72
866
Fund management contracts and other(4)
1,034
156
  n/a
68
1,258
1,825
159
  n/a
140
2,124
Finite life intangible assets(5)
Distribution networks
834
13
(56)
49
840
Customer relationships
582
-
(52)
12
542
Software
1,102
329
(257)
38
1,212
Fund management contracts and other
48
7
(9)
13
59
2,566
349
(374)
112
2,653
Total intangible assets
4,391
508
(374)
252
4,777
Total goodwill and intangible assets
$10,310
$658
$(374)
$458
$11,052
(1)In November 2025, the Company completed the acquisition of a 75% interest in Comvest Credit Partners. Goodwill, brand, indefinite life fund management
contracts, finite lived customer relationships and finite life fund management contracts and other of $739, $21, $144, $280 and $290, respectively, were
recognized. Refer to note 24.
(2)In April 2024, the Company acquired control of CQS Management Limited, the London-based alternative credit investment manager, through purchase of 100% of
its shares outstanding. The transaction included cash consideration of $334 and contingent consideration of $8. Goodwill, brand, indefinite lived and definite lived
management contracts of $150, $3, $153 and $7 were recognized.
(3)In August 2025, the Company acquired $15 of insurance licenses to operate across multiple U.S. states.
(4)Fund management contracts are primarily allocated to Canada WAM and U.S. WAM CGUs with carrying values of $273 (2024 – $273) and $545 (2024 – $421),
respectively.
(5)Gross carrying amount of finite life intangible assets was $3,703 for software, $1,611 for distribution networks, $1,417 for customer relationships and $434 for fund
management contracts and other (2024 – $3,408, $1,617, $1,156 and $156), respectively.
Goodwill Impairment Testing
The Company completed its annual goodwill impairment testing in the fourth quarter of 2025 by determining the recoverable
amounts of its CGUs using valuation techniques discussed below (refer to notes 1 (f) and 5 (c)). The testing resulted in $nil
impairment of goodwill in 2025 (2024 – $nil).
The following tables present the carrying value of goodwill by CGU or group of CGUs.
For the year ended December 31, 2025
Balance,
January 1,
2025
Net additions/
(disposals)
Effect of
changes in
foreign
exchange
rates
Balance,   
December 31,
2025
Test method
CGU or group of CGUs
Asia
Asia Insurance (excluding Japan)
$170
$-
$(4)
$166
FVLCS
Japan Insurance
321
-
(14)
307
VIU
Canada Insurance
1,966
-
(5)
1,961
FVLCS
U.S. Insurance
382
-
(18)
364
FVLCS
Global Wealth and Asset Management
Asia WAM
479
-
(23)
456
FVLCS, VIU
Canada WAM
1,436
-
-
1,436
VIU
U.S. WAM
1,521
739
(73)
2,187
VIU
Total
$6,275
$739
$(137)
$6,877
For the year ended December 31, 2024
Balance,
January 1,
2024
Net additions/
(disposals)
Effect of
changes in
foreign
exchange
rates
Balance, 
December 31,
2024
Test method
CGU or group of CGUs
Asia
Asia Insurance (excluding Japan)
$159
$-
$11
$170
FVLCS
Japan Insurance
328
-
(7)
321
VIU
Canada Insurance
1,958
-
8
1,966
VIU
U.S. Insurance
350
-
32
382
VIU
Global Wealth and Asset Management
Asia WAM
438
-
41
479
FVLCS, VIU
Canada WAM
1,436
-
-
1,436
VIU
U.S. WAM
1,250
150
121
1,521
VIU
Total
$5,919
$150
$206
$6,275
The valuation techniques, significant assumptions and sensitivities, where applicable, applied in the goodwill impairment testing
are described below.
Valuation Techniques
When determining if a CGU is impaired, the Company determines whether its recoverable amount is greater than its carrying
value. Capital levels used are aligned with the Company’s internal reporting practices.
Fair value less costs to sell (FVLCS)
Under the FVLCS approach, the Company determines the fair value of the CGU or group of CGUs using an approach which
incorporates forecasted earnings, excluding interest and equity market impacts and normalized new business expenses
multiplied by an earnings multiple derived from the observable price-to-earnings multiples of comparable financial institutions.
Value-in-use (VIU)
VIU recoverable value for insurance CGUs is determined with a projection of future distributable earnings derived from both the
in-force business and future business, reflecting the economic value for the CGUs’ profit potential. This approach uses
assumptions including sales and revenue growth rates, capital requirements, interest rates, equity returns, mortality, morbidity,
policyholder behaviour, tax rates and discount rates.
Significant Assumptions
For FVLCS valuations, earnings multiples ranged from 5.9 to 16.7 (2024 – 6.7 to 13.6). The resulting valuations are categorized
as Level 3 of the fair value hierarchy (2024 – Level 3).
For VIU valuations based on future distributable earnings, projections are based on discounted projected earnings from in-force
contracts and the value of 80 years of new business, reflecting the long-duration nature of insurance businesses (2024 – Japan
Insurance, Canada Insurance and U.S. Insurance, 80 years). In arriving at its projections, the Company considered past
experience, economic trends such as interest rates, equity returns and product mix, as well as industry and market trends. For
VIU valuations based on discounted cash flow analysis, cash flow projections are based on the most recent budgets and
forecasts and generally cover a period of five years; a long-term growth rate is applied to project cash flows beyond the forecast
period. Long-term growth rates used for these extrapolations ranged from approximately 1.7 per cent to 4.5 per cent (2024 –
approximately 1.7 per cent to 8.0 per cent).
Interest rate assumptions are based on prevailing market rates at the valuation date. These interest rate assumptions are used
to estimate items such as investment yields and reinvestment returns within the cash flow projections. Discount rates assumed
were 9.8 per cent on an after-tax basis or 10.1 per cent on a pre-tax basis (2024 – 10.0 per cent to 13.0 per cent on an after-tax
basis or 12.5 per cent to 16.3 per cent on a pre-tax basis).
Tax rates applied to the projections include the impact of internal reinsurance treaties where applicable and were 28.0 per cent,
27.8 per cent and 21.0 per cent for the Japan, Canada and U.S. jurisdictions, respectively (2024 – 28.0 per cent, 27.8 per cent
and 21.0 per cent, respectively). Tax assumptions are sensitive to changes in tax laws as well as assumptions about the
jurisdictions in which profits are earned. It is possible that effective tax rates could differ from those assumed.
Key assumptions may change as economic and market conditions change, which could result in future impairment charges.
These changes could include adverse changes in discount rates (for example, due to changes in interest rates), changes in
growth-rate assumptions used in cash flow projections, or reductions in market-based earnings multiples.