Insurance Contract Liabilities (Tables)
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12 Months Ended |
Dec. 31, 2025 |
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| Insurance Contract Liabilities |
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| Schedule of insurance contract liabilities |
| | | | | | | | | | | | | | | December 31, 2025 | | December 31, 2024 | | | PAA | | GMM(1)(2) | | Total(3) | | PAA | | GMM(1)(2) | | Total(3) | Insurance contracts issued | | 48,228.3 | | 2,383.5 | | 50,611.8 | | 42,989.4 | | 4,793.3 | | 47,782.7 | Assets for insurance acquisition cash flows | | (170.8) | | — | | (170.8) | | (176.8) | | (3.7) | | (180.5) | Insurance contract liabilities | | 48,057.5 | | 2,383.5 | | 50,441.0 | | 42,812.6 | | 4,789.6 | | 47,602.2 |
| (1) | Comprised at December 31, 2025 of insurance contracts issued measured under the GMM at Global Insurers and Reinsurers of $705.0, International Insurers and Reinsurers of $284.0 and Life insurance and Run-off of $1,394.5 (December 31, 2024 - $941.4, $303.0 and $3,548.9, respectively). The decrease at Life insurance and Run‑off primarily reflected the classification of the Eurolife Life Operations as held for sale (see note 21). Eurolife’s insurance contract liabilities measured under the GMM at December 31, 2025 were $2,739.4 (December 31, 2024 - $2,276.3). |
| (2) | Insurance contracts issued measured under the GMM at December 31, 2025 was comprised of LRC of $834.4 and LIC of $1,549.1 (December 31, 2024 - $3,104.5 and $1,688.8). |
| (3) | Total insurance contracts issued at December 31, 2025 was comprised of LRC of $4,452.8 and LIC of $46,159.0 (December 31, 2024 - $5,878.1 and $41,904.6). |
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| Schedule of insurance contracts issued, measured under the PAA by reporting segment and excluding intercompany balances |
Insurance contracts issued, measured under the PAA by reporting segment and excluding intercompany balances, were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | Property and Casualty Insurance and Reinsurance | | Life | | | | | North American | | Global Insurers | | International Insurers | | | | insurance | | | | | Insurers | | and Reinsurers | | and Reinsurers | | Total | | and Run-off | | Consolidated | | | LRC | | LIC | | Total | | LRC | | LIC | | Total | | LRC | | LIC | | Total | | | | | | | 2025 | | | | | | | | | | | | | | | | | | | | | | | | | January 1 | | 1,117.8 | | 9,676.2 | | 10,794.0 | | 891.8 | | 26,298.6 | | 27,190.4 | | 737.5 | | 4,187.1 | | 4,924.6 | | 42,909.0 | | 80.4 | | 42,989.4 | December 31 | | 1,168.5 | | 10,960.9 | | 12,129.4 | | 1,774.0 | | 28,563.0 | | 30,337.0 | | 678.2 | | 5,080.4 | | 5,758.6 | | 48,225.0 | | 3.3 | | 48,228.3 | | | | | | | | | | | | | | | | | | | | | | | | | | 2024 | | | | | | | | | | | | | | | | | | | | | | | | | January 1 | | 1,140.8 | | 9,005.2 | | 10,146.0 | | 1,071.0 | | 25,937.2 | | 27,008.2 | | 1,399.0 | | 3,239.5 | | 4,638.5 | | 41,792.7 | | 70.7 | | 41,863.4 | December 31 | | 1,117.8 | | 9,676.2 | | 10,794.0 | | 891.8 | | 26,298.6 | | 27,190.4 | | 737.5 | | 4,187.1 | | 4,924.6 | | 42,909.0 | | 80.4 | | 42,989.4 |
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| Schedule of movements in insurance contracts issued |
An analysis of the liability for remaining coverage and the liability for incurred claims for insurance contracts issued by the property and casualty insurance and reinsurance reporting segments measured under the PAA for the year ended December 31 were as follows: Year ended December 31, 2025 | | | | | | | | | | | Property and Casualty Insurance and Reinsurance | | | | | Liability for incurred claims (LIC) | | | | | Liability for | | Estimates of | | Risk adjustment | | | | | remaining | | present value of | | for non-financial | | | | | coverage (LRC)(1) | | future cash flows | | risk | | Total | Balance - January 1 | | 2,747.1 | | 37,370.7 | | 2,791.2 | | 42,909.0 | | | | | | | | | | Changes in the consolidated statement of comprehensive income: | | | | | | | | | Insurance revenue | | (30,835.6) | | — | | — | | (30,835.6) | Incurred claims and other insurance service expenses | | 1.0 | | 19,377.1 | | 1,094.3 | | 20,472.4 | Amortization of acquisition costs | | 5,878.6 | | — | | — | | 5,878.6 | Prior year reserve development and release of risk adjustment on prior year claims(2) | | — | | (388.8) | | (864.3) | | (1,253.1) | Insurance service expenses | | 5,879.6 | | 18,988.3 | | 230.0 | | 25,097.9 | Net insurance result | | (24,956.0) | | 18,988.3 | | 230.0 | | (5,737.7) | Net finance expense from insurance contracts | | 26.1 | | 2,291.5 | | — | | 2,317.6 | Foreign exchange effects(3) | | 70.6 | | 772.5 | | 65.5 | | 908.6 | Total changes in the consolidated statement of comprehensive income | | (24,859.3) | | 22,052.3 | | 295.5 | | (2,511.5) | Cash flows: | | | | | | | | | Premiums received | | 31,781.4 | | — | | — | | 31,781.4 | Claims and other insurance service expenses paid, including investment components | | — | | (18,450.2) | | — | | (18,450.2) | Insurance acquisition cash flows | | (5,926.5) | | — | | — | | (5,926.5) | Changes in funds withheld | | 492.3 | | (499.2) | | — | | (6.9) | | | 26,347.2 | | (18,949.4) | | — | | 7,397.8 | Investment components and other | | (614.3) | | 989.1 | | 54.9 | | 429.7 | Balance - December 31 | | 3,620.7 | | 41,462.7 | | 3,141.6 | | 48,225.0 |
| (1) | Includes loss components of $184.6 at January 1, 2025 and $68.3 at December 31, 2025. |
(2) | Reflects the release of risk adjustment for non-financial risk as claims are paid, comprised of the Global Insurers and Reinsurers ($603.5), North American Insurers ($141.0) and International Insurers and Reinsurers ($119.8) reporting segments. When claims are initially incurred, the risk adjustment is included within incurred claims and other insurance service expenses in the table above. Prior year reserve development, included within estimates of present value of future cash flows, comprised favourable prior year reserve development in the International Insurers and Reinsurers ($452.5) reporting segment, partially offset by adverse prior year development in the Global Insurers and Reinsurers ($58.4) and North American Insurers ($5.3) reporting segments. |
(3) | Foreign exchange effects included within the estimates of present value of future cash flows primarily reflected the weakening of the U.S. dollar relative to the company’s insurance contract liabilities denominated in foreign currencies, primarily the euro, Canadian dollar, British pound sterling and the Brazilian real, within the Global Insurers and Reinsurers ($458.5), the International Insurers and Reinsurers ($186.4) and the North American Insurers ($127.6) reporting segments. |
Year ended December 31, 2024 | | | | | | | | | | | Property and Casualty Insurance and Reinsurance | | | | | Liability for incurred claims (LIC) | | | | | Liability for | | Estimates of | | Risk adjustment | | | | | remaining | | present value of | | for non-financial | | | | | coverage (LRC)(1) | | future cash flows | | risk | | Total | Balance - January 1 | | 3,610.8 | | 35,530.6 | | 2,651.3 | | 41,792.7 | | | | | | | | | | Changes in the consolidated statement of comprehensive income: | | | | | | | | | Insurance revenue (2) | | (29,589.0) | | — | | — | | (29,589.0) | Incurred claims and other insurance service expenses(2) | | 119.5 | | 18,406.2 | | 1,051.9 | | 19,577.6 | Amortization of acquisition costs | | 5,124.9 | | — | | — | | 5,124.9 | Prior year reserve development and release of risk adjustment on prior year claims(3) | | — | | (232.8) | | (846.0) | | (1,078.8) | Insurance service expenses | | 5,244.4 | | 18,173.4 | | 205.9 | | 23,623.7 | Net insurance result | | (24,344.6) | | 18,173.4 | | 205.9 | | (5,965.3) | Net finance expense (income) from insurance contracts | | (0.6) | | 1,634.6 | | — | | 1,634.0 | Foreign exchange effects(4) | | (127.3) | | (625.6) | | (53.9) | | (806.8) | Total changes in the consolidated statement of comprehensive income | | (24,472.5) | | 19,182.4 | | 152.0 | | (5,138.1) | Cash flows: | | | | | | | | | Premiums received | | 29,692.6 | | — | | — | | 29,692.6 | Claims and other insurance service expenses paid, including investment components | | — | | (17,848.0) | | — | | (17,848.0) | Insurance acquisition cash flows | | (5,569.1) | | — | | — | | (5,569.1) | Changes in funds withheld | | (78.3) | | 37.2 | | — | | (41.1) | | | 24,045.2 | | (17,810.8) | | — | | 6,234.4 | Investment components and other | | (436.4) | | 468.5 | | (12.1) | | 20.0 | Balance - December 31 | | 2,747.1 | | 37,370.7 | | 2,791.2 | | 42,909.0 |
| (1) | Includes loss components of $64.7 at January 1, 2024 and $184.6 at December 31, 2024. |
| (2) | Insurance contracts acquired on the acquisition of Gulf Insurance were primarily accounted for as if the company had entered into the contracts on the acquisition date of December 26, 2023, with the fair value of the contracts deemed as the premium received. Consequently, the fair value of the insurance contracts acquired, comprising claims in their settlement period and unearned premiums, are included within the LRC, except settled claims that remain unpaid, which are included within the LIC. Claims acquired in their settlement period and included within the LRC are recognized in insurance revenue based on the expected amount and timing of claims settlements, and the actual settlement of claims is included within incurred claims and other insurance service expenses. Unearned premiums are recognized in insurance revenue over the remaining coverage period. During 2024 Gulf Insurance contributed insurance revenue of $3,239.0, including $665.3 related to acquired contracts, and insurance service expenses of $2,920.6, including $713.2 related to acquired contracts. The effect of acquired contracts decreased the net insurance result by $47.9. Conversely, acquired contracts benefited the net reinsurance result by $54.1 as described in note 9. |
| (3) | Reflects the release of risk adjustment for non-financial risk as claims are paid, comprised of the Global Insurers and Reinsurers ($630.2), North American Insurers ($156.5) and International Insurers and Reinsurers $(59.3) reporting segments. When claims are initially incurred, the risk adjustment is included within incurred claims and other insurance service expenses in the table above. Prior year reserve development, included within estimates of present value of future cash flows, comprised favourable prior year reserve development in the Global Insurers and Reinsurers ($211.5) and International Insurers and Reinsurers ($149.6) reporting segments, partially offset by adverse prior year development in the North American Insurers ($128.3) reporting segment. |
| (4) | Foreign exchange effects included within the Total primarily reflected the strengthening of the U.S. dollar relative to the company’s insurance contract liabilities denominated in foreign currencies, primarily the Canadian dollar, euro, Brazilian real and the British pound sterling, within the Global Insurers and Reinsurers ($254.0), the North American Insurers ($220.7) and the International Insurers and Reinsurers ($150.9) reporting segments. |
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| Summary of primary yield curves used to discount cash flows of insurance contracts and reinsurance contract assets held |
The table below set out the primary yield curves that were used to discount the cash flows of insurance contracts and reinsurance contract assets held for currencies in which the company’s insurance revenue is principally based. | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | December 31, 2024 | | Currencies | | 1 year | | 5 years | | 10 years | | 15 years | | 1 year | | 5 years | | 10 years | | 15 years | | United States dollar | | 3.82 | % | 4.06 | % | 4.65 | % | 5.08 | % | 4.64 | % | 4.83 | % | 5.17 | % | 5.37 | % | Canadian dollar | | 2.70 | % | 3.76 | % | 4.47 | % | 4.76 | % | 3.36 | % | 3.82 | % | 4.43 | % | 4.60 | % | Euro | | 2.04 | % | 2.63 | % | 3.33 | % | 3.79 | % | 2.38 | % | 2.50 | % | 2.91 | % | 3.23 | % | British pound sterling | | 3.89 | % | 4.29 | % | 4.97 | % | 5.46 | % | 4.74 | % | 4.68 | % | 5.14 | % | 5.51 | % |
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| Schedule of estimates of undiscounted gross cumulative claims |
Estimates of undiscounted gross cumulative claims | | | | | | | | | | | | | | | | | | | | | | | Calendar year | | | 2017 | | 2018 | | 2019 | | 2020 | | 2021 | | 2022 | | 2023 | | 2024 | | 2025 | Property and casualty provision for outstanding losses and loss adjustment expenses at December 31 | | 25,284.5 | | 25,426.9 | | 26,528.3 | | 28,700.5 | | 32,329.1 | | 36,306.4 | | 41,221.8 | | 44,110.0 | | 48,221.2 | Cumulative payments as of: | | | | | | | | | | | | | | | | | | | One year later | | 6,917.3 | | 7,191.0 | | 7,018.7 | | 6,986.7 | | 8,410.7 | | 10,341.7 | | 11,386.6 | | 12,061.2 | | | Two years later | | 11,052.3 | | 11,487.9 | | 11,133.7 | | 11,990.6 | | 14,571.5 | | 17,308.6 | | 18,995.0 | | | | | Three years later | | 13,928.6 | | 14,318.9 | | 14,702.8 | | 16,410.5 | | 19,487.3 | | 22,368.9 | | | | | | | Four years later | | 15,843.4 | | 16,807.6 | | 17,959.2 | | 19,797.6 | | 22,968.0 | | | | | | | | | Five years later | | 17,528.7 | | 19,121.9 | | 20,332.7 | | 22,304.0 | | | | | | | | | | | Six years later | | 19,141.7 | | 20,755.7 | | 22,133.7 | | | | | | | | | | | | | Seven years later | | 20,301.2 | | 22,128.5 | | | | | | | | | | | | | | | Eight years later | | 21,289.1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Reserves re-estimated as of: | | | | | | | | | | | | | | | | | | | One year later | | 24,131.2 | | 25,256.3 | | 26,259.1 | | 28,119.8 | | 31,640.8 | | 36,470.5 | | 40,421.4 | | 44,145.8 | | | Two years later | | 24,091.7 | | 25,124.0 | | 26,052.6 | | 27,894.1 | | 32,041.6 | | 36,493.3 | | 41,138.8 | | | | | Three years later | | 23,949.9 | | 25,132.6 | | 25,961.4 | | 28,468.4 | | 32,525.5 | | 37,329.7 | | | | | | | Four years later | | 24,046.1 | | 25,286.7 | | 26,611.8 | | 29,118.6 | | 33,503.8 | | | | | | | | | Five years later | | 24,202.6 | | 25,851.6 | | 27,152.9 | | 30,136.5 | | | | | | | | | | | Six years later | | 24,554.7 | | 26,226.1 | | 27,983.3 | | | | | | | | | | | | | Seven years later | | 24,824.2 | | 26,928.0 | | | | | | | | | | | | | | | Eight years later | | 25,333.7 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Favourable (adverse) development | | (49.2) | | (1,501.1) | | (1,455.0) | | (1,436.0) | | (1,174.7) | | (1,023.3) | | 83.0 | | (35.8) | | | | | | | | | | | | | | | | | | | | | | Favourable (adverse) development comprised of: | | | | | | | | | | | | | | | | | | | Effect of foreign currency translation | | 254.7 | | 93.4 | | 230.4 | | 234.9 | | 141.3 | | (2.9) | | 135.8 | | (500.4) | | | Favourable (adverse) loss reserve development | | (303.9) | | (1,594.5) | | (1,685.4) | | (1,670.9) | | (1,316.0) | | (1,020.4) | | (52.8) | | 464.6 | | | | | (49.2) | | (1,501.1) | | (1,455.0) | | (1,436.0) | | (1,174.7) | | (1,023.3) | | 83.0 | | (35.8) | | | | | | | | | | | | | | | | | | | | | | Reconciliation to the liability for incurred claims at the property and casualty insurance and reinsurance reporting segments | | | | | | | | | | | | | | | | | | | Property and casualty provision for outstanding losses and loss adjustment expenses as presented above | | | | | | | | | | | | | | | | | | 48,221.2 | Effect of discounting | | | | | | | | | | | | | | | | | | (6,485.4) | Risk adjustment for non-financial risk | | | | | | | | | | | | | | | | | | 3,704.1 | Other(1) | | | | | | | | | | | | | | | | | | (105.5) | Liability for incurred claims (PAA & GMM) | | | | | | | | | | | | | | | | | | 45,334.4 | Less: Liability for incurred claims (GMM) | | | | | | | | | | | | | | | | | | (730.1) | Liability for incurred claims (PAA) | | | | | | | | | | | | | | | | | | 44,604.3 | | | | | | | | | | | | | | | | | | | | Liability for incurred claims (PAA) as presented in the table above | | | | | | | | | | | | | | | | | | | Estimates of present value of future cash flows | | | | | | | | | | | | | | | | | | 41,462.7 | Risk adjustment for non-financial risk | | | | | | | | | | | | | | | | | | 3,141.6 | Liability for incurred claims (PAA) | | | | | | | | | | | | | | | | | | 44,604.3 |
| (1) | Primarily includes funds withheld and reinstatement premiums payable, partially offset by settled losses payable. |
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| Schedule of estimates of undiscounted net cumulative claims |
Estimates of undiscounted net cumulative claims(1) | | | | | | | | | | | | | | | | | | | | | | | Calendar year | | | 2017 | | 2018 | | 2019 | | 2020 | | 2021 | | 2022 | | 2023 | | 2024 | | 2025 | Property and casualty provision for outstanding losses and loss adjustment expenses at December 31 | | 19,750.1 | | 19,334.7 | | 19,858.9 | | 21,468.6 | | 24,068.6 | | 27,800.1 | | 31,618.1 | | 34,197.6 | | 37,865.6 | Cumulative payments as of: | | | | | | | | | | | | | | | | | | | One year later | | 5,297.4 | | 5,407.0 | | 5,339.8 | | 5,426.1 | | 6,415.3 | | 7,791.6 | | 8,508.8 | | 9,227.9 | | | Two years later | | 8,394.6 | | 8,606.4 | | 8,480.3 | | 9,269.8 | | 11,042.3 | | 13,108.6 | | 14,318.1 | | | | | Three years later | | 10,562.7 | | 10,719.0 | | 11,216.3 | | 12,456.8 | | 14,770.8 | | 16,975.5 | | | | | | | Four years later | | 12,010.0 | | 12,624.3 | | 13,473.3 | | 14,979.6 | | 17,406.7 | | | | | | | | | Five years later | | 13,291.3 | | 14,142.2 | | 15,227.4 | | 16,854.8 | | | | | | | | | | | Six years later | | 14,348.9 | | 15,378.5 | | 16,579.7 | | | | | | | | | | | | | Seven years later | | 15,221.8 | | 16,416.0 | | | | | | | | | | | | | | | Eight years later | | 15,979.0 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Reserves re-estimated as of: | | | | | | | | | | | | | | | | | | | One year later | | 18,642.9 | | 19,052.8 | | 19,587.2 | | 21,233.4 | | 23,808.7 | | 27,534.6 | | 30,843.5 | | 34,267.2 | | | Two years later | | 18,411.4 | | 18,937.4 | | 19,585.7 | | 21,342.5 | | 24,151.8 | | 27,593.1 | | 31,464.6 | | | | | Three years later | | 18,275.8 | | 19,052.3 | | 19,845.5 | | 21,728.2 | | 24,570.4 | | 28,306.1 | | | | | | | Four years later | | 18,392.0 | | 19,227.2 | | 20,269.4 | | 22,194.9 | | 25,355.3 | | | | | | | | | Five years later | | 18,589.3 | | 19,589.3 | | 20,657.3 | | 22,944.7 | | | | | | | | | | | Six years later | | 18,839.6 | | 19,891.7 | | 21,252.2 | | | | | | | | | | | | | Seven years later | | 19,059.1 | | 20,312.1 | | | | | | | | | | | | | | | Eight years later | | 19,339.1 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Favourable (adverse) development | | 411.0 | | (977.4) | | (1,393.3) | | (1,476.1) | | (1,286.7) | | (506.0) | | 153.5 | | (69.6) | | | | | | | | | | | | | | | | | | | | | | Favourable (adverse) development comprised of: | | | | | | | | | | | | | | | | | | | Effect of foreign currency translation | | 125.8 | | (22.3) | | 87.8 | | 111.8 | | 143.4 | | (20.1) | | 94.5 | | (435.3) | | | Favourable (adverse) loss reserve development | | 285.2 | | (955.1) | | (1,481.1) | | (1,587.9) | | (1,430.1) | | (485.9) | | 59.0 | | 365.7 | | | | | 411.0 | | (977.4) | | (1,393.3) | | (1,476.1) | | (1,286.7) | | (506.0) | | 153.5 | | (69.6) | | | | | | | | | | | | | | | | | | | | | | Reconciliation to the liability for incurred claims, net of reinsurance, at the property and casualty insurance and reinsurance reporting segments | | | | | | | | | | | | | | | | | | | Property and casualty provision for outstanding losses and loss adjustment expenses as presented above | | | | | | | | | | | | | | | | | | 37,865.6 | Effect of discounting | | | | | | | | | | | | | | | | | | (5,043.5) | Risk adjustment for non-financial risk | | | | | | | | | | | | | | | | | | 2,640.8 | Other(2) | | | | | | | | | | | | | | | | | | (731.8) | Liability for incurred claims, net of reinsurance (PAA & GMM) | | | | | | | | | | | | | | | | | | 34,731.1 | Less: Liability for incurred claims, net of reinsurance (GMM) | | | | | | | | | | | | | | | | | | (701.5) | Liability for incurred claims, net of reinsurance (PAA) | | | | | | | | | | | | | | | | | | 34,029.6 | | | | | | | | | | | | | | | | | | | | Liability for incurred claims, net of reinsurance (PAA) as presented in the preceding table and in note 9 | | | | | | | | | | | | | | LIC (PAA) | | AIC (PAA) (note 9) | | LIC less AIC (PAA) | Estimates of present value of future cash flows | | | | | | | | | | | | | | 41,462.7 | | 9,659.0 | | 31,803.7 | Risk adjustment for non-financial risk | | | | | | | | | | | | | | 3,141.6 | | 915.7 | | 2,225.9 | Liability for incurred claims, net of reinsurance (PAA) | | | | | | | | | | | | | | 44,604.3 | | 10,574.7 | | 34,029.6 |
| (1) | Net of asset for incurred claims for reinsurance contract assets held. |
| (2) | Primarily includes settled losses payable, net of reinsurance, less the reclassification of certain retrospective contracts to the ARC. |
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