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Information Provided in Connection with Investments in Deferred Annuity Contracts and SignatureNotes Issued or Assumed by John Hancock Life Insurance Company (U.S.A.) (Tables)
 12 Months Ended
Dec. 31, 2020
Text block [abstract]  
Condensed Consolidated Statement of Financial Position
Condensed Consolidated Statement of Financial Position
 
As at December 31, 2020
 MFC
(Guarantor)		  JHUSA
(Issuer)		  Other
subsidiaries		  Consolidation
adjustments		  Consolidated
MFC		 
Assets
                    
Invested assets
 
$
47
 
 
$
112,735
 
 
$
298,524
 
 
$
(329
) 
 
$
410,977
 
Investments in unconsolidated subsidiaries
 
 
64,209
 
 
 
8,078
 
 
 
17,194
 
 
 
(89,481
) 
 
 
–
 
Reinsurance assets
 
 
–
 
 
 
65,731
 
 
 
11,172
 
 
 
(31,067
) 
 
 
45,836
 
Other assets
 
 
210
 
 
 
25,489
 
 
 
52,648
 
 
 
(22,247
) 
 
 
56,100
 
Segregated funds net assets
 
 
–
 
 
 
191,955
 
 
 
178,224
 
 
 
(2,743
) 
 
 
367,436
 
Total assets
 
$
64,466
 
 
$
403,988
 
 
$
557,762
 
 
$
(145,867
) 
 
$
880,349
 
Liabilities and equity
                    
Insurance contract liabilities
 
$
–
 
 
$
167,453
 
 
$
249,909
 
 
$
(31,808
) 
 
$
385,554
 
Investment contract liabilities
 
 
–
 
 
 
1,208
 
 
 
2,081
 
 
 
(1
) 
 
 
3,288
 
Other liabilities
 
 
718
 
 
 
25,594
 
 
 
52,761
 
 
 
(22,001
) 
 
 
57,072
 
Long-term debt
 
 
6,164
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
6,164
 
Capital instruments
 
 
5,249
 
 
 
584
 
 
 
1,996
 
 
 
–
 
 
 
7,829
 
Segregated funds net liabilities
 
 
–
 
 
 
191,955
 
 
 
178,224
 
 
 
(2,743
) 
 
 
367,436
 
Shareholders’ equity
 
 
52,335
 
 
 
17,194
 
 
 
72,120
 
 
 
(89,314
) 
 
 
52,335
 
Participating policyholders’ equity
 
 
–
 
 
 
–
 
 
 
(784
) 
 
 
–
 
 
 
(784
) 
Non-controlling
interests
 
 
–
 
 
 
–
 
 
 
1,455
 
 
 
–
 
 
 
1,455
 
Total liabilities and equity
 
$
  64,466
 
 
$
  403,988
 
 
$
  557,762
 
 
$
  (145,867
) 
 
$
  880,349
 
Condensed Consolidated Statement of Financial Position
 
As at December 31, 2019 MFC
(Guarantor)		  JHUSA
(Issuer)		  Other
subsidiaries		  Consolidation
adjustments		  Consolidated
MFC		 
Assets
                    
Invested assets
 $21  $107,746  $271,100  $(340)  $378,527 
Investments in unconsolidated subsidiaries
  57,068   7,467   16,983   (81,518)   – 
Reinsurance assets
  –   61,310   10,080   (29,944)   41,446 
Other assets
  406   20,859   45,111   (20,327)   46,049 
Segregated funds net assets
  –   181,982   162,845   (1,719)   343,108 
Total assets
 $57,495  $379,364  $506,119  $  (133,848)  $  809,130 
Liabilities and equity
                    
Insurance contract liabilities
 $–  $157,398  $224,378  $(30,615)  $351,161 
Investment contract liabilities
  –   1,091   2,014   (1)   3,104 
Other liabilities
  537   21,311   48,226   (20,086)   49,988 
Long-term debt
  4,543   –   –   –   4,543 
Capital instruments
  3,277   599   3,244   –   7,120 
Segregated funds net liabilities
  –   181,982   162,845   (1,719)   343,108 
Shareholders’ equity
  49,138   16,983   64,444   (81,427)   49,138 
Participating policyholders’ equity
  –   –   (243)   –   (243) 
Non-controlling
interests
  –   –   1,211   –   1,211 
Total liabilities and equity
 $  57,495  $  379,364  $  506,119  $(133,848)  $809,130 
Condensed Consolidated Statement of Income
Condensed Consolidated Statement of Income
 
For the year ended December 31, 2020
 MFC
(Guarantor)		  JHUSA
(Issuer)		  Other
subsidiaries		  Consolidation
adjustments		  Consolidated
MFC		 
Revenue
                    
Gross premiums
 
$
–
 
 
$
8,057
 
 
$
34,459
 
 
$
(1,108
) 
 
$
41,408
 
Premiums ceded to reinsurers
 
 
–
 
 
 
(6,585
) 
 
 
(3,014
) 
 
 
1,108
 
 
 
(8,491
) 
Net premium income
 
 
–
 
 
 
1,472
 
 
 
31,445
 
 
 
–
 
 
 
32,917
 
Net investment income (loss)
 
 
542
 
 
 
14,204
 
 
 
21,727
 
 
 
(1,073
) 
 
 
35,400
 
Net other revenue
 
 
5
 
 
 
2,869
 
 
 
12,884
 
 
 
(5,167
) 
 
 
10,591
 
Total revenue
 
 
547
 
 
 
18,545
 
 
 
66,056
 
 
 
(6,240
) 
 
 
78,908
 
Contract benefits and expenses
                    
Net benefits and claims
 
 
–
 
 
 
14,804
 
 
 
44,293
 
 
 
(3,862
) 
 
 
55,235
 
Commissions, investment and general expenses
 
 
17
 
 
 
3,146
 
 
 
13,573
 
 
 
(1,396
) 
 
 
15,340
 
Other expenses
 
 
434
 
 
 
230
 
 
 
1,880
 
 
 
(982
) 
 
 
1,562
 
Total contract benefits and expenses
 
 
451
 
 
 
  18,180
 
 
 
  59,746
 
 
 
(6,240
) 
 
 
  72,137
 
Income (loss) before income taxes
 
 
96
 
 
 
365
 
 
 
6,310
 
 
 
–
 
 
 
6,771
 
Income tax (expense) recovery
 
 
(26
) 
 
 
54
 
 
 
(1,223
) 
 
 
–
 
 
 
(1,195
) 
Income (loss) after income taxes
 
 
70
 
 
 
419
 
 
 
5,087
 
 
 
–
 
 
 
5,576
 
Equity in net income (loss) of unconsolidated subsidiaries
 
 
5,801
 
 
 
1,344
 
 
 
1,763
 
 
 
(8,908
) 
 
 
–
 
Net income (loss)
 
$
5,871
 
 
$
1,763
 
 
$
6,850
 
 
$
(8,908
) 
 
$
5,576
 
Net income (loss) attributed to:
                    
Non-controlling
interests
 
$
–
 
 
$
–
 
 
$
250
 
 
$
–
 
 
$
250
 
Participating policyholders
 
 
–
 
 
 
–
 
 
 
(545
) 
 
 
–
 
 
 
(545
) 
Shareholders
 
 
5,871
 
 
 
1,763
 
 
 
7,145
 
 
 
(8,908
) 
 
 
5,871
 
 
 
$
  5,871
 
 
$
1,763
 
 
$
6,850
 
 
$
  (8,908
) 
 
$
5,576
 
Condensed Consolidated Statement of Income
 
For the year ended December 31, 2019 MFC
(Guarantor)		  JHUSA
(Issuer)		  Other
subsidiaries		  Consolidation
adjustments		  Consolidated
MFC		 
Revenue
                    
Gross premiums
 $–  $8,599  $33,620  $(1,160)  $  41,059 
Premiums ceded to reinsurers
  –   (3,575)   (3,066)   1,160   (5,481) 
Net premium income
  –   5,024   30,554   –   35,578 
Net investment income (loss)
  355     12,128   22,108   (998)   33,593 
Net other revenue
  16   2,866   11,447   (3,930)   10,399 
Total revenue
  371   20,018   64,109   (4,928)   79,570 
Contract benefits and expenses
                    
Net benefits and claims
  –   17,133   41,220   (2,438)     55,915 
Commissions, investment and general expenses
  20   3,299   13,938   (1,530)   15,727 
Other expenses
  421   206   2,041   (960)   1,708 
Total contract benefits and expenses
  441   20,638     57,199   (4,928)   73,350 
Income (loss) before income taxes
  (70)   (620)   6,910   –   6,220 
Income tax (expense) recovery
  18   347   (1,083)   –   (718) 
Income (loss) after income taxes
  (52)   (273)   5,827   –   5,502 
Equity in net income (loss) of unconsolidated subsidiaries
  5,654   772   499   (6,925)   – 
Net income (loss)
 $  5,602  $499  $6,326  $  (6,925)  $5,502 
Net income (loss) attributed to:
                    
Non-controlling
interests
 $–  $–  $233  $–  $233 
Participating policyholders
  –   2   (333)   (2)   (333) 
Shareholders
  5,602   497   6,426   (6,923)   5,602 
 
 $5,602  $499  $6,326  $(6,925)  $5,502 
Consolidated Statement of Cash Flows
Consolidated Statement of Cash Flows
 
For the year ended December 31, 2020
 
MFC
(Guarantor)
  
JHUSA
(Issuer)
  
Other
subsidiaries
  
Consolidation
adjustments
  
Consolidated
MFC
 
Operating activities
                    
Net income (loss)
 
$
5,871
 
 
$
1,763
 
 
$
6,850
 
 
$
(8,908
) 
 
$
5,576
 
Adjustments:
                    
Equity in net income of unconsolidated subsidiaries
 
 
(5,801
) 
 
 
(1,344
) 
 
 
(1,763
) 
 
 
8,908
 
 
 
–
 
Increase (decrease) in insurance contract liabilities
 
 
–
 
 
 
11,937
 
 
 
25,045
 
 
 
–
 
 
 
36,982
 
Increase (decrease) in investment contract liabilities
 
 
–
 
 
 
48
 
 
 
130
 
 
 
–
 
 
 
178
 
(Increase) decrease in reinsurance assets excluding coinsurance transactions
 
 
–
 
 
 
(3,133
) 
 
 
759
 
 
 
–
 
 
 
(2,374
) 
Amortization of (premium) discount on invested assets
 
 
–
 
 
 
54
 
 
 
100
 
 
 
–
 
 
 
154
 
Other amortization
 
 
7
 
 
 
145
 
 
 
504
 
 
 
–
 
 
 
656
 
Net realized and unrealized (gains) losses and impairment on assets
 
 
1
 
 
 
(9,420
) 
 
 
(13,102
) 
 
 
–
 
 
 
(22,521
) 
Deferred income tax expense (recovery)
 
 
25
 
 
 
(784
) 
 
 
1,039
 
 
 
–
 
 
 
280
 
Stock option expense
 
 
–
 
 
 
3
 
 
 
11
 
 
 
–
 
 
 
14
 
Cash provided by (used in) operating activities before undernoted items
 
 
103
 
 
 
(731
) 
 
 
19,573
 
 
 
–
 
 
 
18,945
 
Dividends from unconsolidated subsidiary
 
 
3,000
 
 
 
411
 
 
 
1,270
 
 
 
(4,681
) 
 
 
–
 
Changes in policy related and operating receivables and payables
 
 
91
 
 
 
8,459
 
 
 
(7,447
) 
 
 
–
 
 
 
1,103
 
Cash provided by (used in) operating activities
 
 
3,194
 
 
 
8,139
 
 
 
13,396
 
 
 
(4,681
) 
 
 
20,048
 
Investing activities
                    
Purchases and mortgage advances
 
 
–
 
 
 
(34,392
) 
 
 
(77,589
) 
 
 
–
 
 
 
(111,981
) 
Disposals and repayments
 
 
–
 
 
 
29,635
 
 
 
69,215
 
 
 
–
 
 
 
98,850
 
Changes in investment broker net receivables and payables
 
 
–
 
 
 
(431
) 
 
 
(586
) 
 
 
–
 
 
 
(1,017
) 
Investment in common shares of subsidiaries
 
 
(4,483
) 
 
 
–
 
 
 
–
 
 
 
4,483
 
 
 
–
 
Capital contribution to unconsolidated subsidiaries
 
 
–
 
 
 
(1
) 
 
 
–
 
 
 
1
 
 
 
–
 
Return of capital from unconsolidated subsidiaries
 
 
–
 
 
 
22
 
 
 
–
 
 
 
(22
) 
 
 
–
 
Notes receivable from parent
 
 
–
 
 
 
–
 
 
 
1,501
 
 
 
(1,501
) 
 
 
–
 
Notes receivable from subsidiaries
 
 
1,494
 
 
 
–
 
 
 
–
 
 
 
(1,494
) 
 
 
–
 
Cash provided by (used in) investing activities
 
 
(2,989
) 
 
 
(5,167
) 
 
 
(7,459
) 
 
 
1,467
 
 
 
(14,148
) 
Financing activities
                    
Issue of long-term debt, net
 
 
2,455
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
2,455
 
Redemption of long-term debt
 
 
(652
) 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
(652
) 
Issue of capital instruments, net
 
 
1,990
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
1,990
 
Redemption of capital instruments
 
 
–
 
 
 
–
 
 
 
(1,250
) 
 
 
–
 
 
 
(1,250
) 
Secured borrowings
 
 
–
 
 
 
709
 
 
 
667
 
 
 
–
 
 
 
1,376
 
Change in repurchase agreements and securities sold but not yet purchased

 
 
–
 
 
 
 
–
 
 
 
 
 
24
 
 
 
–
 
 
 
 
 
24
 
Changes in deposits from Bank clients, net
 
 
–
 
 
 
–
 
 
 
(579
) 
 
 
–
 
 
 
(579
) 
Lease payments
 
 
–
 
 
 
(9
) 
 
 
(125
) 
 
 
–
 
 
 
(134
) 
Shareholders’ dividends paid in cash
 
 
(2,340
) 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
(2,340
) 
Dividends paid to parent
 
 
–
 
 
 
(1,270
) 
 
 
(3,411
) 
 
 
4,681
 
 
 
–
 
Common shares repurchased
 
 
(253
) 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
(253
) 
Common shares issued, net
 
 
36
 
 
 
–
 
 
 
4,483
 
 
 
(4,483
) 
 
 
36
 
Contributions from (distributions to) non-controlling interests,
 net

 
 
–
 
 
 
 
–
 
 
 
 
 
(10)
 
 
 
 
–
 
 
 
(10)
 
 
Capital contributions by parent
 
 
–
 
 
 
–
 
 
 
1
 
 
 
(1
) 
 
 
–
 
Return of capital to parent
 
 
–
 
 
 
–
 
 
 
(22
) 
 
 
22
 
 
 
–
 
Notes payable to parent
 
 
–
 
 
 
–
 
 
 
(1,494
) 
 
 
1,494
 
 
 
–
 
Notes payable to subsidiaries
 
 
(1,501
) 
 
 
–
 
 
 
–
 
 
 
1,501
 
 
 
–
 
Cash provided by (used in) financing activities
 
 
(265
) 
 
 
(570
) 
 
 
(1,716
) 
 
 
3,214
 
 
 
663
 
Cash and short-term securities
                    
Increase (decrease) during the year
 
 
(60
) 
 
 
2,402
 
 
 
4,221
 
 
 
–
 
 
 
6,563
 
Effect of foreign exchange rate changes on cash and short-term securities
 
 
85
 
 
 
(59
) 
 
 
(554
) 
 
 
–
 
 
 
(528
) 
Balance, beginning of year
 
 
22
 
 
 
2,564
 
 
 
16,962
 
 
 
–
 
 
 
19,548
 
Balance, end of year
 
 
47
 
 
 
4,907
 
 
 
20,629
 
 
 
–
 
 
 
25,583
 
Cash and short-term securities
                    
Beginning of year
                    
Gross cash and short-term securities
 
 
22
 
 
 
3,058
 
 
 
17,220
 
 
 
–
 
 
 
20,300
 
Net payments in transit, included in other liabilities
 
 
–
 
 
 
(494
) 
 
 
(258
) 
 
 
–
 
 
 
(752
) 
Net cash and short-term securities, beginning of year
 
 
22
 
 
 
2,564
 
 
 
16,962
 
 
 
–
 
 
 
19,548
 
End of year
                    
Gross cash and short-term securities
 
 
47
 
 
 
5,213
 
 
 
20,907
 
 
 
–
 
 
 
26,167
 
Net payments in transit, included in other liabilities
 
 
–
 
 
 
(306
) 
 
 
(278
) 
 
 
–
 
 
 
(584
) 
Net cash and short-term securities, end of year
 
$
47
 
 
$
4,907
 
 
$
20,629
 
 
$
–
 
 
$
25,583
 
Supplemental disclosures on cash flow information:
                    
Interest received
 
$
522
 
 
$
4,334
 
 
$
7,992
 
 
$
(1,112
) 
 
$
11,736
 
Interest paid
 
 
426
 
 
 
109
 
 
 
1,765
 
 
 
(1,112
) 
 
 
1,188
 
Income taxes paid (refund)
 
 
(2
) 
 
 
721
 
 
 
639
 
 
 
–
 
 
 
1,358
 
 
Consolidated Statement of Cash Flows
 
For the year ended December 31, 2019 
MFC
(Guarantor)
  
JHUSA
(Issuer)
  
Other
subsidiaries
  
Consolidation
adjustments
  
Consolidated
MFC
 
Operating activities
                    
Net income (loss)
 $5,602  $499  $6,326  $(6,925)  $5,502 
Adjustments:
                    
Equity in net income of unconsolidated subsidiaries
  (5,654)   (772)   (499)   6,925   – 
Increase (decrease) in insurance contract liabilities
  –   11,381   22,346   –   33,727 
Increase (decrease) in investment contract liabilities
  –   51   119   –   170 
(Increase) decrease in reinsurance assets excluding coinsurance transactions
  –   (1,236)   679   –   (557) 
Amortization of (premium) discount on invested assets
  –   40   77   –   117 
Other amortization
  5   118   503   –   626 
Net realized and unrealized (gains) losses and impairment on assets
  (12)   (7,105)   (13,148)   –   (20,265) 
Deferred income tax expense (recovery)
  (18)   (192)   (244)   –   (454) 
Stock option expense
  –   (1)   12   –   11 
Cash provided by (used in) operating activities before undernoted items
  (77)   2,783   16,171   –   18,877 
Dividends from unconsolidated subsidiary
  3,000   623   1,123   (4,746)   – 
Changes in policy related and operating receivables and payables
  (39)   (146)   1,850   –   1,665 
Cash provided by (used in) operating activities
  2,884   3,260   19,144   (4,746)   20,542 
Investing activities
                    
Purchases and mortgage advances
  –   (24,898)   (55,712)   –   (80,610) 
Disposals and repayments
  –   22,324   43,009   –   65,333 
Changes in investment broker net receivables and payables
  –   631   528   –   1,159 
Investment in common shares of subsidiaries
  (404)   –   –   404   – 
Net cash flows from acquisition and disposal of subsidiaries and businesses
  –   –   288   –   288 
Capital contribution to unconsolidated subsidiaries
  –   (1)   –   1   – 
Return of capital from unconsolidated subsidiaries
  –   177   –   (177)   – 
Notes receivable from parent
  –   –   (157)   157   – 
Notes receivable from subsidiaries
  (1)   13   –   (12)   – 
Cash provided by (used in) investing activities
  (405)   (1,754)   (12,044)   373   (13,830) 
Financing activities
                    
Change in repurchase agreements and securities sold but not yet purchased
  –   –   266   –   266 
Redemption of capital instruments
  –   –   (1,500)   –   (1,500) 
Secured borrowings
  –   –   107   –   107 
Changes in deposits from Bank clients, net
  –   –   1,819   –   1,819 
Lease payments
  –   (8)   (109)   –   (117) 
Shareholders’ dividends paid in cash
  (1,398)   –   –   –   (1,398) 
Contributions from (distributions to)
non-controlling
interests, net
  –   –   (22)   –   (22) 
Common shares repurchased
  (1,339)   –   –   –   (1,339) 
Common shares issued, net
  104   –   404   (404)   104 
Dividends paid to parent
  –   (1,123)   (3,623)   4,746   – 
Capital contributions by parent
  –   –   1   (1)   – 
Return of capital to parent
  –   –   (177)   177   – 
Notes payable to parent
  –   –   (12)   12   – 
Notes payable to subsidiaries
  157   –   –   (157)   – 
Cash provided by (used in) financing activities
  (2,476)   (1,131)   (2,846)   4,373   (2,080) 
Cash and short-term securities
                    
Increase (decrease) during the year
  3   375   4,254   –   4,632 
Effect of foreign exchange rate changes on cash and short-term securities
  (2)   (128)   (336)   –   (466) 
Balance, beginning of year
  21   2,317   13,044   –   15,382 
Balance, end of year
  22   2,564   16,962   –   19,548 
Cash and short-term securities
                    
Beginning of year
                    
Gross cash and short-term securities
  21   2,783   13,411   –   16,215 
Net payments in transit, included in other liabilities
  –   (466)   (367)   –   (833) 
Net cash and short-term securities, beginning of year
  21   2,317   13,044   –   15,382 
End of year
                    
Gross cash and short-term securities
  22   3,058   17,220   –   20,300 
Net payments in transit, included in other liabilities
  –   (494)   (258)   –   (752) 
Net cash and short-term securities, end of year
 $22  $2,564  $16,962  $–  $19,548 
Supplemental disclosures on cash flow information:
                    
Interest received
 $422  $4,252  $7,823  $(948)  $11,549 
Interest paid
  423   83   1,741   (948)   1,299 
Income taxes paid (refund)
  –   (788)   892   –   104