Reinsurance

12 Months Ended

Dec. 31, 2022

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, 2022	Canada			U.S.			Asia		Corporate(1)			Total
Individual participating life		$	21		$	18	$	179		$	—	$	218
Individual non-participating life and health		(282)			1,598		38			13		1,367
Group life and health		267			2,212		7			—		2,486
Individual annuities		—			—		—			1		1
Group annuities		(3)			—		—			—		(3)
Reinsurance assets before other policy assets		3			3,828		224			14		4,069
Add: Other policy assets(2)		98			478		117			39		732
Total Reinsurance assets		$	101		$	4,306	$	341		$	53	$	4,801

(1) Primarily business from the UK and run-off reinsurance operations. Includes UK business of $13 for Individual non-participating life and health, and $1 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, 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.

There was no impairment of Reinsurance assets in 2022 or 2021. Changes in Reinsurance assets are included in Note 10.A.iv.

11.B Reinsurance (Expenses) Recoveries



For the years ended December 31,	2022		2021


Recovered claims and benefits	$	1,961	$	2,233
Commissions	73		65
Reserve adjustments	22		45
Operating expenses and other	84		82
Total reinsurance (expenses) recoveries	$	2,140	$	2,425

11.C Reinsurance Gains or Losses

We did not enter into reinsurance arrangements that resulted in a gain or loss on inception in 2022 or 2021.