v3.25.4
Segregated Funds
12 Months Ended
Dec. 31, 2025
Segregated Funds [Abstract]  
Segregated Funds Segregated Funds
The Company manages a number of segregated funds on behalf of policyholders. Policyholders are provided with the
opportunity to invest in different categories of segregated funds that hold a range of underlying investments. The underlying
investments consist of both individual securities and mutual funds.
Segregated funds’ underlying investments may be exposed to a variety of financial and other risks. These risks are primarily
mitigated by investment guidelines that are actively monitored by professional and experienced portfolio advisors. The Company
is not exposed to these risks beyond the liabilities related to the guarantees associated with certain variable life and annuity
products included in segregated funds. Accordingly, the Company’s exposure to loss from segregated fund products is limited to
the value of these guarantees.
These guarantees are recorded within the Company’s insurance contract liabilities and amount to $1,266 (2024$1,886), of
which $423 are reinsured (2024$530). Assets supporting these guarantees, net of reinsurance, are recognized in invested
assets according to their investment type. Insurance contract liabilities for account of segregated fund holders on the
Consolidated Statements of Financial Position exclude these guarantees and are considered to be a non-distinct investment
component of insurance contract liabilities. Note 8 provides information regarding market risk sensitivities associated with
variable annuity and segregated fund guarantees.