Reinsurance

12 Months Ended

Dec. 31, 2021

11. Reinsurance

Reinsurance is used primarily to limit exposure to large losses. We have a retention policy that requires that such arrangements be placed with well-established, highly-rated reinsurers. Coverage is well-diversified and controls are in place to manage exposure to reinsurance counterparties. While reinsurance arrangements provide for the recovery of claims arising from the liabilities ceded, we retain primary responsibility to the policyholders.

11.A Reinsurance Assets

Reinsurance assets are measured using the amounts and assumptions associated with the underlying insurance contracts and in accordance with the terms of each reinsurance contract. Reinsurance assets are comprised of the following:


As at December 31, 2021	Canada			U.S.			Asia		Corporate(1)			Total
Individual participating life		$	—		$	7	$	214		$	—	$	221
Individual non-participating life and health		(547)			838		33			16		340
Group life and health		284			2,018		5			—		2,307
Individual annuities		—			—		—			15		15
Group annuities		22			—		—			—		22
Reinsurance assets before other policy assets		(241)			2,863		252			31		2,905
Add: Other policy assets(2)		95			563		81			39		778
Total Reinsurance assets		$	(146)		$	3,426	$	333		$	70	$	3,683

(1) Primarily business from the UK and run-off reinsurance operations. Includes UK business of $16 for Individual non-participating life and health, and $15 for Individual annuities.

(2) Consists of amounts on deposit, policy benefits payable, provisions for unreported claims, provisions for policyholder dividends, and provisions for experience rating refunds.


As at December 31, 2020	Canada			U.S.			Asia			Corporate(1)			Total
Individual participating life		$	57		$	9		$	263		$	—	$	329
Individual non-participating life and health		(636)			882			49			18		313
Group life and health		403			1,920			4			—		2,327
Individual annuities		—			—			—			17		17
Group annuities		140			—			—			—		140
Reinsurance assets before other policy assets		(36)			2,811			316			35		3,126
Add: Other policy assets(2)		104			508			65			40		717
Total Reinsurance assets		$	68		$	3,319		$	381		$	75	$	3,843

(1) Primarily business from the UK and run-off reinsurance operations. Includes UK business of $18 for Individual non-participating life and health, and $17 for Individual annuities.

(2) Consists of amounts on deposit, policy benefits payable, provisions for unreported claims, provisions for policyholder dividends, and provisions for experience rating refunds.

There was no impairment of Reinsurance assets in 2021 or 2020. Changes in Reinsurance assets are included in Note 10.A.iv.

11.B Reinsurance (Expenses) Recoveries

Reinsurance (expenses) recoveries consist of the following:


For the years ended December 31,	2021		2020


Recovered claims and benefits	$	2,233	$	2,182
Commissions	65		69
Reserve adjustments	45		22
Operating expenses and other	82		80
Total reinsurance (expenses) recoveries	$	2,425	$	2,353

11.C Reinsurance Gains or Losses

We did not enter into reinsurance arrangements that resulted in a gain or loss on inception in 2021. In 2020, we entered into a new reinsurance agreement that resulted in a loss of $66 on inception.