Life Insurance Return Instructions – Section VI – Detailed Instructions

Document Properties

  • Revised: November 2020

Detailed instructions are provided to assist insurers/societies in clarifying filing requirements; they are not provided for every page or field in the LIFE return.

The instructions are applicable to all insurers/societies regardless of their jurisdiction of incorporation, unless specified otherwise in this section or in "Section V - Jurisdictional Requirements."

Reference page numbers in the left-hand column of certain pages of the LIFE return indicate the supporting exhibit pertaining to the particular statement item. For these items, the insurer/society should also refer to the instructions in this section for the page number of the supporting exhibit.

All references to "pages" refer to pages of the LIFE return.

Insurers/societies are required to include the reference numbers to applicable note disclosures in the Financial Statement (FS) Notes Reference, in the second column on the left-hand side of certain pages of the LIFE return.

Any reference to "section" refers to a part of these instructions. Statutory reference to a section of legislation will be presented as "sec."

Refer to Section II for instructions on how to embed objects within the special Excel file.

Page 10.000

Canadian Affidavit Verifying Annual Supplement Return

Refer to Section V - Jurisdictional Requirements.

This page applies to Canadian insurers/societies only.

Pages 10.002 - 10.004

Foreign Affidavits Verifying Annual Supplement Return

Refer to Section V - Jurisdictional Requirements.

This page applies to foreign insurers/societies only.

Page 10.005

Quebec Affidavit Verifying Annual Supplement Return

This page applies to Canadian insurers licensed in the province of Quebec only.

Page 10.010

Contact Persons

Insurers/societies are required to provide two contact persons, one for corporate information and another for statement reporting. This information will facilitate contact with the insurer/ society when questions arise from corporate matters or financial and accounting issues relating to the annual return.

Page 10.010

External Auditor – Partner

The name of the partner in charge of the audit is requested in addition to the name of the accounting firm.

Page 10.011

Annual Corporate Information – for Insurers/Societies Licensed in the province of Quebec

The full name of each director and the postal address of his/her residence (not business) must be sufficiently complete to serve as a mailing address.

Page 10.012

Annual Corporate Information – for provincially incorporated or licensed insurers/societies

Insurers/societies are required to provide the full name of the President/CEO and Secretary. The postal address of his/her residence (not business) must be sufficiently complete to serve as a mailing address.

Page 10.013

Corporate Information – for insurers/societies provincially incorporated

This page is required for all provincially incorporated insurers/societies.

The committee name and listing of all committee members should be provided for each Board committee mandated by law.

Additional lines can be added into the form if required.

This information may be embedded into the Special Excel file.

Page 10.020

Shareholders - By Class of Shares - Part 1 - Common Shares

This page applies to Canadian insurers only.

Line 001-020 – Column 01 - Name of Beneficial Shareholder

Indicate the name of the beneficial shareholders. Identify only those with at least 10% of the common shares.

Shareholders should be listed alphabetically by surname; using the format surname, first name.

Nominee names are not sufficient, particularly in respect of holdings of more than 10% of the voting shares. Directors and officers who are also shareholders should be included separately in this listing, even if they hold less than 10% of the shares of any class.

Line 001 - 020 – Column 02 – Address

Indicate the full address including city and country of the shareholder.

Page 10.030

Shareholders – By Class of Shares – Part 2 – Preferred Shares

This page applies to Canadian insurers only.

This information is required for all classes of preferred shares. A separate sheet should be provided for each class of preferred shares. Provide a description of the particular class of shares indicating the dividend rate, maturity date, cumulative features, if any, and any other characteristics of the shares.

Shareholders should be listed alphabetically by surname; using the format surname, first name.

Line 001 - 020 – Name of Beneficial Shareholder

Indicate the name of the beneficial shareholders. Identify only those with at least 10% of the shares.

Nominee names are not sufficient, particularly in respect of holdings of more than 10% of the voting shares. Directors and officers who are also preferred shareholders should be included separately in this listing, even if they hold less than 10% of the shares of any class.

Page 10.033

Corporate and Regulatory Information

This page applies to foreign insurers/societies only.

Question 9

Provide details if the insurer/society is subject to any regulatory restrictions in any jurisdiction.

Question 11

Provide details of rating history if the insurer/society is rated by one of the major rating agencies for the current year (CY) and previous years (CY-1), etc.

Page 10.040

Corporate Organization Chart

The corporate organization chart should show the interrelationships between the insurer/society, its immediate and ultimate parent, and all other associated corporations (upstream and downstream) that are:

  • publicly traded companies within the group;
  • banks and trust companies within the group;
  • other insurance companies within the group;
  • insurance companies in which the insurer has a controlling interest (such as joint ventures);
  • subsidiaries of the insurer/society; or
  • insurance management companies within the group.

This information must be embedded into the Special Excel file.

Foreign insurers/societies must include the percentage of voting shares held by principal shareholders as part of the organization chart of ownership downstream.

Pages 10.050 to 10.090

General Interrogatories

These pages apply to Canadian insurers/societies only.

Page 10.050

General Interrogatories

If there is insufficient space on the pages to fully respond to the questions, insurers/societies are asked to embed a file into the special Excel file if additional information is required.

Question 1.1

If the answer to the question is yes, then fill out the table and state the gross total value outstanding at the end of the year. The figures should include the gross outstanding amounts of all assets pledged as security or lodged as collateral by subsidiaries at the end of the year. The insurer/society is expected to have detailed listings for the parent and subsidiaries for review by the Regulators if requested.

Question 1.2

If the answer to the question is yes, then complete the remainder of the fields. If the answer is no, then proceed to the next question.

State the highest outstanding month-end amount of the transactions entered into during the year and the gross total value outstanding at the year-end, on a consolidated basis. Figures should include the gross amounts of all sell and repurchase (and purchase and resell) agreements made by the parent as well as its subsidiaries. When listing all institutions with which transactions have been made, state the year-end outstanding gross total value for each type of contract.

Page 10.060

General Interrogatories (continued)

Question 2.1

Embed the information into the special Excel file if more space is needed.

Page 10.070

General Interrogatories (continued)

Question 4.1 – Transactions with subsidiaries, affiliates and other third parties

Materiality is defined as 1% of consolidated equity.

Embed the information into the special Excel file if more space is needed.

Page 10.090

General Interrogatories (continued)

Question 5.3 - Other Disclosure (continued)

Refer to OSFI Guideline B-10 - Outsourcing of Business Activities, Functions and Processes for more information.

For insurers incorporated in the province of Quebec, refer to Outsourcing risk management guideline.

Question 5.4

The amount of shareholder surplus that is dependent on future payment of dividends to participating policyholders/certificateholders:

Disclose the cumulative portion of participating income recognized in retained earnings which is in excess of the amount permitted by statute based on participating dividends paid, or, alternatively, embed a file with a continuity of total participating surplus in the Special Excel file.

Question 5.6

Report on line 220 only the software development costs amount capitalized during the year and included in line 210.

Pages 11.050 - 11.070

General Interrogatories

These pages apply to foreign insurers/societies only.

Page 11.050

General Interrogatories

Question 2.1

This question relates to contingent liabilities/provisions, contractual obligations or other off- balance sheet liabilities of the Canadian Branch in Canada.

Question 2.3

If the answer to this question is yes, then provide additional details. Provide a description of the issues, on a consolidated basis; including subsidiaries.

Page 11.070

General Interrogatories (continued)

Question 5.2

Specific methods are not prescribed for apportioning income and expenditure by fund or by line of business. Details of the bases and formula used by the Canadian Branch should provide sufficient information for OSFI and to assist in its independent verification process.

Question 5.5

The question relates to the insurer's/society's policies regarding market conduct practices. Additional information can be provided in an attached sheet or on page 20.060 if the insurer/society has answered "no" to this question.

Question 5.6

Include the total amount of all IT costs on line 510.

On line 520, report only the software development costs amount capitalized during the year included in line 510.

Pages 15.010 – 15.040

Worldwide Financial Statements

These pages apply to foreign insurers/societies only.

Foreign insurers/societies are required to complete the condensed balance sheet and income statement for the worldwide operation of the Home Office. The information should be as of the latest fiscal year-end for which such information is available. Indicate the year-end date at the bottom of the page on line 930.

Financial data must be converted from the currency of the home jurisdiction to Canadian currency. Indicate the currency on line 950 and the exchange rate used at the top of each column.

The data used to complete these pages should be taken primarily from the return submitted to the regulatory body of the home jurisdiction. There is no requirement to convert the data from the home jurisdiction's accounting principles to IFRS/Canadian GAAP.

Page 15.020

Liabilities, Policyholders' and Shareholders' Equity - Worldwide Business

This page applies to Foreign Life insurers only.

Page 15.021

Liabilities and Surplus - Worldwide Business

This page applies to Foreign Fraternal Benefit Societies only.

Page 15.040

Capital/Solvency Information - Worldwide Business

This information should be as of the latest fiscal year-end for which such information is available. Indicate the year-end date at the bottom of the page, on line 930.

Financial data must be converted from the currency of the home jurisdiction to Canadian currency. Indicate the currency on line 950 and the exchange rate used at the top of each column.

Because of the wide range of potential measurements of capital and solvency, there is opportunity to provide the information in the form of monetary capital amounts available and required as well as a ratio which might be on a different basis. For U.S. insurers/societies, capital available would be the "Total Adjusted Capital" in the RBC formula. Required capital would be the figure shown as "Authorized Control Level Risk Based Capital". You will note that at the bottom of page there is room to provide comments to describe the standard used.

Foreign insurers/societies should fill in only the data that is appropriate for their circumstances. For instance, if solvency is measured only in the form of a ratio, there is no need to fill in the monetary accounts on lines 001, 100 and 200. Of course, the opposite situation may be the actual case as well. Foreign insurers/societies are encouraged to use the comment section to describe the particular circumstances.

Although the United Kingdom and the U.S.A. make capital and solvency information public (but not the solvency ratio for marketing purposes in the U.S.A.), OSFI has not been able to determine this fact for all other countries. So that insurers/societies will not contravene any foreign laws regarding publicity of capital solvency ratios, OSFI will not make this data public until it has confirmed that it may do so and in any event not before Canadian life insurance companies' solvency ratios are made public.

Pages 20.010 – 20.021

Opening Prior Year Restated: Only to be completed by insurers/societies that make a retrospective restatement or reclassification of items.

Pages 20.010 – 20.042

IFRS requires many items be presented separately within the financial statements or shown within the notes to the financial statements. If the LIFE return does not accommodate the separate line reporting of certain items, insurers are expected to disclose such information within the notes to the financial statements.

Foreign insurers/societies must report the financial statements on a non-consolidated basis.

Pages 20.010

Assets

Foreign insurers/societies must report both total assets of the Canadian Branch as well as the portion that is vested in trust, at balance sheet values.

For Canadian insurers/societies, disclosure should be consistent with amounts reported as assets in the non-consolidated financial statements on page 70.010.

Line 010 - Cash and Cash Equivalents

Insurers/societies must not offset credit balances in one depository institution against debit balances in another depository institution. Netting is allowed only between branches of the same depository institution.

Line 020 – Assets Held for Sale

Report all assets that are in disposal groups under IFRS 5. This does not include investments in the portfolio designated available for sale.

Line 040 - Short Term Investments

See instructions for page 21.012.

Line 200 – Policy/Certificate Loans

Loans are to be reported at their unpaid balances. If the amount outstanding exceeds a policy's/certificate's cash surrender value, the excess should be classified out of policy/certificate loans and included in line 600 as an unsecured loan and a provision for collectability.

Line 250 - Bonds and Debentures

See instructions for page 21.012.

Line 300 – Mortgage Loans

See instructions for page 21.012.

Line 420 – Preferred Shares

See instructions for page 21.012.

Line 440 – Common Shares

See instructions for page 21.012.

Line 510 – Investment Properties

Include right-of-use assets that are considered investment properties.

Line 540 – Property and Equipment

Include right-of-use assets that are considered Property and Equipment.

Line 550 – Interests in Associates & Joint Ventures

See instructions for page 21.100 – Part A.

Line 600 – Other Loans and Invested Assets

See instructions for page 21.012, line 870.

Line 750 – Investments in Subsidiaries

This line applies to foreign insurers/societies only.

Report on the equity basis. Cost of an investment in a subsidiary should include any portion of the share premium or contributions to surplus whether paid in cash, dividends, or other consideration. The initial cost or balance sheet value is written up or down at the end of each accounting period to reflect the pro rata share of the parent company in the earnings of the subsidiary.

Line 880 – Other Assets

Include prepaid expenses, deferred charges and deferred acquisition costs not related to insurance contract liabilities, and accounts receivable for fraternal and other funds.

Insurers/Societies licensed in Quebec: See instructions for page 21.155.

Page 20.020

Liabilities, Policyholders'/Shareholders' Equity and Head Office Account

This page applies to Life insurers only.

Amounts for lines 510 to 550 and 610 to 740 are only be reported on the 4th quarter filing.

Policyholders' and Shareholders' Equity only applies to Canadian Life insurers.

Line 005 – Liabilities Held for Sale

Report all liabilities that are in disposal groups under IFRS 5. This does not include liabilities designated available for sale.

Line 010 – Actuarial Liabilities for Insurance Contracts

See instructions for page 22.020.

Line 040 – Other Contract Liabilities

See instructions for page 22.020.

Line 070 – Trust and Banking Deposits

Include deposits relating to the life insurer's banking and trust subsidiary operations.

Quebec life insurers: Include deposits relating to the life insurer's banking and trust operations.

Line 160 – Provisions and Other Liabilities

Include lease liabilities.

Line 280 – Subordinated Debt

Refer to the LICAT/CARLI Guideline.

Line 610 – Capital Stock

Include preferred shares issued by mutual companies.

Line 700 – Retained Earnings

For use by stock companies only.

Line 800 – Head Office Account

This line applies to foreign insurers only.

Report end of year balance as reconciled on page 20.044.

Lines 840 and 999

These lines apply to foreign insurers only.

Page 20.021

Liability, Surplus, Head Office Account and Accumulated Other Comprehensive Income (Loss)

This page applies to Fraternal Benefit Societies only.

See detailed instructions for page 20.020.

Line 589 – Surplus

This line applies to Canadian societies only.

Lines 800 and 840

These lines apply to foreign societies only.

Page 20.030

Statement of Income

The statement of income excludes any income earned on Segregated Funds; however management fees and related revenue and expense items in respect of Segregated Funds are included.

Line 050 – Gross Investment Income

See instructions for page 23.010.

Line 060 – Investment Expenses and Taxes

See instructions for page 23.010.

Line 075 - Overlay approach adjustment for financial instruments (Reclass from P&L to OCI)

This line only applies to Quebec provincially incorporated insurers who have adopted the overlay approach for the implementation of IFRS 9.

Line 130 – Fee Income

See instructions for pages 35.010- 35.020, line 130.

Line 160 – Other: Revenue

See instructions for pages 35.010-35.020, line 160.

Line 260 – Policyholder/Certificateholder Benefits

See instructions for pages 35.010-35.020, lines 210 to 240.

Line 270 – Column 01 – Benefits Ceded

See instructions for pages 35.010-35.020, line 270.

Lines 310 - 320 – Gross Changes to Actuarial Liabilities

The following examples of basis changes are not meant to be all inclusive.

Federal life insurers/fraternal benefit societies only: Changes in any best-estimate assumptions for in-force business. This includes changes in mortality, morbidity, lapse, policyholder/certificateholder dividends, expenses, ultimate interest rates, equity returns, real estate returns, default rates, etc. This also includes changes in PfADs where the MfADs are a function of the best-estimate actuarial liabilities.

Quebec life insurers: Refer to section 8, "Variation in consolidated net contract liabilities," of the Actuary's Guide to Reporting on Insurers of Persons' Policy Liabilities issued by the Autorité des marchés financiers.

The "Normal change in actuarial liabilities" is the total change, less the basis change amount.

Lines 342 and 344 – Gross Changes to Other Contract Liabilities – Normal/Basis Change

Line 340 – Gross Changes to Other Contract Liabilities

See instructions for pages 35.010-35.020, lines 342 and 344.

Line 360 – Policyholder/Certificateholder Dividends

See instructions for pages 35.010-35.020, line 360.

Line 420 – Transfer to an (Transfer from) Other Funds

See instructions for pages 35.010-35.020, line 420.

Line 480 – Interest on Policyholder/Certificateholder Amounts on Deposit

See instructions for pages 35.010-35.020, line 480.

Line 510 - Interest Expenses and Finance Costs

See instructions for page 23.030.

Line 540 – General Expenses and Taxes (excl. income taxes)

See instructions for page 23.030.

Line 570 – Other Expenses

See instructions for page 23.030.

Line 830 – Discontinued Operations (net of Income Taxes of $___)

There are three datapoints to be completed on this line: current (column 01), prior (column 02) and an inside datapoint (column 99). The inside datapoint is labelled "net of Income Taxes of $ ______", and is located at the bottom of the form

Lines 859, 870, 900 and 920

These lines apply to Canadian insurers/societies only.

Page 20.031

Statement of Income (Budget)  (for BC incorporated insurers only)

Only Canadian insurers/societies that are incorporated in the province of British Columbia are required to fill in this schedule.

Report year to date budget to the end of the quarter in the same format as described on page 20.030.

See general instructions under page 20.030.

Page 20.037

Statement of Income (Annual Budget for Next Fiscal Year) (for BC incorporated insurers only)

Only Canadian insurers/societies that are incorporated in the province of British Columbia are required to fill in this schedule.

Report annual budget numbers for next fiscal year in the same format as described on page 20.030.

See general instructions under page 20.030.

Page 20.040

Statement of Equity in Participating Account

This page applies to Canadian insurers/societies only.

Fraternal Benefit Societies are only required to fill in this page if this type of business applies.

Consult your primary regulator prior to making transfers between par, non-par and retained earnings accounts.

Lines 040-070 - Adjustments

The portions of:

  1. prior period adjustments; and
  2. accounting policy changes which have been applied retroactively and which have been allocated to the participating account are to be reported on this line.

Any changes should be fully explained in the Notes to the Financial Statements, or in the answer to Question 5.5 on Page 10.090.

Any transitional adjustments/balances from the adoption of a new accounting standard should be reported on line 070 in the year of transition.

Line 100 – Share of Net Income (Loss)

This line is equal to line 870 on page 20.030 for stock companies only.

Line 130 – Transfer from (to) Retained Earnings (Stock companies)

Contact your primary regulator prior to transferring any amounts.

Page 20.040

Statement of Non-Participating Account – Mutual Companies Only

Line 160 – Transfer from (to) Non-Par Account (Mutual companies)

For mutual companies, transfers from/to the non-participating account can only be made where there has been a corresponding transfer of liabilities, such as where a participating policy has been changed to a non-participating policy, or where legislative requirements have been met.

Lines 340 – 370 - Adjustments

The portions of:

  1. prior period adjustments; and
  2. accounting policy changes which have been applied retroactively and which have been allocated to the non-participating account are to be reported on this line. Such changes should be fully explained in the Notes to the Financial Statements.

Any transitional adjustments / balances from the adoption of a new accounting standard should be reported on line 370 in the year of transition.

Lines 540 – 570 - Adjustments

The portions of:

  1. prior period adjustments; and
  2. accounting policy changes which have been applied retroactively and which have been allocated to opening retained earnings are to be reported on this line. Such changes would normally be fully explained in the Notes to the Financial Statements or on page 20.060.

Any transitional adjustments/balances from the adoption of a new accounting standard should be reported on line 570 in the year of transition

Line 630 – Transfer from (to) Par Account

Contact your primary regulator prior to any transfers

Page 20.041

Statement of Surplus

This page applies to Canadian Fraternal Benefit Societies only.

To report the reconciliation of surplus from the beginning to the end of the year, split by Insurance Fund and Fraternal and Other Funds.

See detailed instructions for page 20.040.

Page 20.044

Head Office Account

This page applies to foreign insurers/societies only.

Lines 040-070 – Adjustments

The portions of:

  1. prior period adjustments; and
  2. accounting policy changes which have been applied retroactively and which have been allocated to the non-participating account are to be reported on this line. Such changes should be fully explained in the Notes to the Financial Statements.

Any transitional adjustments/balances from the adoption of a new accounting standard should be reported on line 070 in the year of transition.

Line 080 – Net Income (Loss): Fraternal & Other Funds

List items considered as prior period adjustments which should be explained in the notes to the financial statements or separately on page 20.060.

Page 20.042

Comprehensive Income (Loss), and Accumulated Other Comprehensive Income (Loss)

Lines 220, 225 and 775 – Overlay Approach

These lines only applies to Quebec provincially incorporated insurers who have adopted the overlay approach for the implementation of IFRS 9.

Lines 615, 600 and 620

These lines apply to Canadian insurers/societies only.

Page 20.054

Statement of Changes in Equity

This page applies to Canadian Life insurers only.

Report changes in equity items per Equity section of Consolidated Financial Statements on page 20.020 and AOCI on page 20.042.

Page 20.060

Notes to the Financial Statements

Insurers/societies are reminded to file a copy of their Management Discussion & Analysis.

Page 20.085

Quebec Appointed Actuary's Certificate

This page applies to Canadian Quebec incorporated insurers only.

Page 21.012

Summary of Investments

Please note: This page accommodates either accounting standard IAS 39 or IFRS 9, depending on which accounting standard is adopted by the insurer. Columns 52, 53, 54 and 55 are only to be used if an insurer has adopted IFRS 9. The remaining columns are applicable to either IAS39 or IFRS 9.

Government Securities are securities issued or guaranteed by OECD Central Governments and Canadian Provinces and Territories. If bonds issued by crown corporations are guaranteed by OECD governments, they should be reported under "Government".

Corporate Public bonds and debentures are securities that are registered and traded to the public. They usually have CUSIP numbers.

Corporate Private bonds and debentures are securities which are not registered and traded to the public. They are normally offered to a single or select group of investors.

Investment grade corporate public bonds and debentures are defined as securities that are rated as BBB or higher by a recognized rating agency.

Investment grade for corporate private bonds and debentures is defined as securities that would be rated as BBB or higher according to the criteria used by recognized rating agencies.

Some regulators require insurers/societies to maintain detailed listings of investments for examination; they are not required to be submitted with the LIFE return Refer to Section V - Jurisdictional Requirements.

For each investment category listed in the summary the balance sheet value of the investments should be reported in the columns based on their classification under the applicable accounting standards.

For foreign insurers/societies, Canadian GAAP is to be followed with respect to conversions of foreign denominated securities to Canadian currency. Report all amounts vested in trust.

Line 010 – Short-Term Investments

Investments other than Cash Equivalents having an original term to maturity of one year or less; includes term deposit, GICs, commercial paper, treasury bills, etc.

Line 479 - Bonds and Debentures

Fixed-term investments having a fixed maturity date or dates for the repayment of principal (includes convertible bonds, stripped bonds, asset backed securities and GICs with original terms to maturity of more than one year).

Line 500 – Mortgage Loans

Amounts reported should be after the deduction of collective and individual provisions, if any, which were established to reflect non-collectability of loan balances. Includes sale agreements, power of sales, mortgage pools, and mortgages in process of foreclosure, where title has not yet passed to the insurer/society.

Line 599 – Preferred Shares

Include convertible preferred shares.

Line 659 – Common Shares

Include options, warrants and rights in respect of common shares.

Line 870 – Other Loans and Invested Assets

Include leases, seed money provided for Segregated Funds operations and other recognized financial assets not reported on line items above.

Column 16 – Available for Sale (FV)

Report items that are classified as Available for Sale, but are measured at amortized cost in this column.

Columns 52, 53 and 54 - Expected Credit Loss (ECL) – Stage I, II and III

For insurers who have adopted IFRS 9, report the expected credit losses amount for each stages 1, 2 and 3 as described in IFRS 9, Financial Instruments.

Column 70 – Balance Sheet Value of Assets Used to Back Index Linked Products

Report balance sheet value of investments that are in the general fund and where the investment risks are passed through to policyholder/certificateholder as the investments are used to back index-linked products.

Refer to the LICAT/CARLI Guideline.

Page 21.020

Summary of Provisions

Please note: This page accommodates either accounting standard IAS 39 or IFRS 9, depending on which accounting standard is adopted by the insurer. Columns 57, 58 and 59 are only to be used if an insurer has adopted IFRS 9. The remaining columns are applicable to either IAS39 or IFRS 9.

Report short-term investments, preferred and common shares under line 710 "Other Loans and Invested Assets."

Foreign insurers/societies should report all amounts vested in trust.

Columns 10 to 46

Amounts for columns 10 to 46 are only be reported on the 4th quarter filing.

Page 21.020

Column 10 – Provisions Prior Period End - Total

Report Prior Period End Provisions (collective & individual) under IAS 39 or ECL under IFRS 9.

Column 33 – Movement Current Period - Increase

Report increase of provisions (collective & individual) under IAS 39 or ECL under IFRS 9 during current period.

Column 35 –Movement Current Period - Decrease

Report decrease of provisions (collective & individual) under IAS 39 or ECL under IFRS 9 during current period.

Columns 57, 58 and 59 – Provisions Current Period End (Including (ECL) – Stage I, II and III

For insurers who have adopted IFRS 9, report the expected credit losses amount for each stages 1, 2 and 3 as described in IFRS 9, Financial Instruments.

Page 21.030

Corporate Investments by Sector

Provide balance sheet values after individual provisions of all corporate bonds, preferred and common shares by sector (based on Bloomberg or GICS sector classification system). Sectors should be classified according to the domicile of the issuing Corporation. E.g. If a Canadian Corporation issues U.S. dollar pay securities then this should be reported under Canada in the relevant sector. All amounts are to be reported in Canadian Currency.

Exclude derivative instruments, or securities issued or guaranteed by the government which have a zero rating for Capital Adequacy purposes and investments made for the Segregated Fund account holders.

Materiality limits for limiting disclosure of immaterial investments by issuer is as follows:

Insurers/societies must separately disclose investments issued in the U.S.A. and/or in "Other" if one of the following condition is meet:

  • assets in that territory exceed 5% of the consolidated equity;
  • revenue in that territory exceeds 5% of consolidated revenue.

In all other cases, insurers/societies may report the immaterial investments as if issued in "Canada."

Where there is no relevant sector for the classification include in "Sector – Other."

Foreign insurers/societies should report all amounts vested in trust.

Page 21.040

Significant Exposures – By Group of Companies

Exclude derivative instruments, or securities issued or guaranteed by the government which have a zero rating for Capital Adequacy purposes and investments made for the Segregated Fund account holders.

Foreign insurers/societies should report all amounts vested in trust.

Column 31 – Other Loans and Investments

Include short-term debt, guarantees, leases and other investments.

Column 36 – Reinsurance Ceded

Provide the total credit risk exposure to a particular reinsurer or reinsurance group. This exposure includes liabilities ceded, amounts on deposit with the reinsurer under funds withheld or similar arrangements, and any amounts due and unpaid.

Page 21.050

Mortgage Loans

Foreign insurers/societies should report all amounts vested in trust.

Single Residential (SR)

Note: that the definition of residential mortgages differs from that applicable to the LICAT/CARLI calculations.

A residential mortgage is one that is secured by residential property. Residential property is defined as real property consisting of buildings that are used, or are to be used, to the extent of the majority of the floor space thereof, as one or more private dwellings.

A single residential property is a dwelling having no wall in common with another dwelling and designed for occupancy by a single family.

Multiple Residential (MR)

Include all other residential properties under "multiple."

Office (O)

Mortgages on real property consisting of buildings that are used primarily as offices.

Retail Stores (RS)

Mortgages on real property consisting of buildings that are used primarily as retail stores including shopping plazas.

Industrial (I)

Mortgages on real property consisting of buildings that are used primarily for industrial purposes including manufacturing and warehouses.

Hotels (H)

Include hotels, motels, lodges and resorts.

Other (X)

Include all other types of real estate including vacant land.

Insured loans are those where the amount owed by the borrower is insured against default by Canada Mortgage and Housing Corporation (CMHC), another government body, or by a private insurer/society.

Restructured loans allow the lender to grant any of the following concessions to the borrower that it would not otherwise consider:

  1. a reduced interest rate;
  2. uncompensated deferral or extension of principal repayments or interest payments
  3. forgiveness of a portion of principal or previously accrued interest;
  4. acceptance of assets other than cash in settlement of a larger amount of the loan than is represented by the estimated net proceeds from sale of the assets;
  5. other concessions which would not be considered in the absence of the weakened financial condition of the borrower.

The arrears status of restructured loans is established with respect to the terms of the restructure, rather than original loan terms.

For purposes of identifying the appropriate column, the age of arrears is defined as the number of days that has elapsed since the due date of the oldest payment or partial payment (principal and/or interest) that has not been received according to the terms of the loan as of the statement date.

Foreclosures in progress (title has not yet passed to the insurer/society) are to be included in mortgage loans.

Lines 010 - 410 - Column 11 - 31 – Unsatisfactory Loans

Report the total amount of Mortgage Loans before individual provisions in these columns. Columns 11-16 should not include loans that could be classified as impaired; these loans should be reported in column 26 (see below).

Column 21 – Loans Delinquent > 90 days but not designated impaired

Report the amount of all the mortgages loans (including restructured loan) which are > 90 days but not designated as impaired.

Column 26 – Impaired Loans

Report the balance sheet value of loans on which the insurer/society has taken individual provisions (gross of provisions). Insured loans should be excluded.

Line 710 – Second and subsequent mortgage loans

These numbers are for information purposes only. They are already included in lines 010 - 410.

Page 21.060

Mortgage Loans – 25 Largest Uninsured

List the largest 25 uninsured residential and non-residential mortgage loans in descending order by outstanding principal balance (gross before provisions).

See instructions for page 21.050 for description of property types.

Foreign insurers/societies should report all amounts vested in trust.

Column 02 – Name of Borrower

The total of all uninsured mortgages to the same borrower or group of related borrowers should be considered one mortgage in determining the largest 25 uninsured mortgages.

Column 36 – Amount of Cumulative Prior Encumbrances

If the insurer's/society's mortgage loan is not a first charge on the property, the total cumulative amount of all prior mortgages and prior claims should be included in this column.

Column 46 – Property Type

Use the property type definitions and codes on page 21.050.

Column 51 – Market Value of Property

Show the market valuation of the property as at year-end. If the loan is shared with other lenders having claims on the property, the market value of the property reported in column 51 should be the market value of the property multiplied by the proportion of the insurer's/society's original loan in relation to the total loan originally advanced.

Page 21.070

Insurers/Societies licensed in Quebec Mortgage Loans – Geographic Distribution

Only Canadian insurers/societies that are licensed in the province of Quebec are required to fill in this schedule.

The amounts to be included in this schedule are to be gross (before provisions).

This table shows the allocation of mortgage loans according to business sector by geographic location of the mortgaged property.

Insured loans are those where the amount owed by the borrower is insured against default by Canada Mortgage and Housing Corporation (CMHC), another government body, or by a private insurer/society. Refer to instructions for page 21.050 for property type definitions.

Lines 010 - 130 – Location of Property

The gross value of Canadian loans should be classified according to the province in which the property securing the loan is located, with all insured mortgages reported in column 01 and all uninsured mortgages reported by type of property in columns 06 to 36.

Columns 51, 61 - Amount of Principal on which Interest was overdue > 90 days

The gross amount of principal (before provisions) on loans in arrears more than 90 days should be reported in column 51 for insured mortgages and column 61 for uninsured mortgages.

Column 70 – Total Provisions

Report the amount of specific provisions for all gross mortgage loans reported in column 41.

Page 21.075

Quebec incorporated insurers only Mortgage Loans – Geographic Distribution by Region

Quebec insurers should follow the instructions of page 21.070 unless the insurer has 50% or more of balance sheet value (before provisions) of properties in which it has a mortgage investment located in Quebec, in which case page 21.075 must be completed. An insurer also has the option to complete both pages.

This page applies to Canadian Quebec incorporated insurers only. Canadian societies are not required to fill in this page.

The geographic sectors used are based on the administrative regions of Quebec and are partially combined. The administrative regions of Quebec are:

  1. Bas-Saint-Laurent
  2. Saguenay-Lac-Saint-Jean
  3. National Capital
  4. Mauricie
  5. Estrie
  6. Montreal
  7. Outaouais
  8. Abitibi-Temiscamingue
  9. Cote-Nord
  10. Northern Quebec
  11. Gaspesie-Iles-de-la-Madeleine
  12. Chaudiere-Appalaches
  13. Laval
  14. Lanaudiere
  15. Laurentides
  16. Monteregie
  17. 17 Central Quebec

These regions have been combined as follows:

column 01: regions 01-09-11: Eastern Quebec
column 02: regions 02-08-10: Northern Quebec
column 03: regions 03-12: Quebec – Beauce
column 04: regions 04-05-16-17: Southern Quebec – Mauricie – Central Quebec
column 05: regions 07-14-15: Outaouais - Laurentides – Lanaudiere
column 06: regions 06-13: Montreal – Laval

Line 010-060 – Location of Property

The gross value of Quebec loans should be classified according to the region in which the property securing the loan is located, with all insured mortgages reported in column 01 and all uninsured mortgages reported by type of property in columns 06 to 36.

Page 21.080

Investment Properties & Own Use Property and Equipment

Insurers/ societies: List the top 10 properties in order of size (based on balance sheet value) and provide a sub-total of all others, including properties sold during the year. Include right-of-use assets in the respective asset lines.

Quebec insurers: List all properties with a balance sheet value greater than $500,000, including properties sold during the year.

Societies should only include Insurance Funds on this page.

Foreign insurers/societies should report all amounts vested in trust.

Insurers incorporated in the province of Alberta must file this page on a quarterly basis. All other insurers are only required to file this page with their 4th quarter filing.

Column 06 – Property Type

See instructions for page 21.050 for property type definition and codes to use. Where a property has more than one use (i.e., office and retail) the whole property should be classified as one type based upon the use of the majority of the floor space.

Column 21 – Balance Sheet Value before Provisions Beginning of Year

The amount on line 899 of column 21 should agree to the amount on line 899 of column 66 for the prior year.

Column 71 – Cumulative Individual Provisions

Report the individual provisions that have been booked against each property. Include (in brackets) the amount of individual provision reversals where an asset was previously written down

Line 099 – All Other Own Use Properties

Provide the total of all own use properties not listed including own use properties sold during the year.

Line 929 – Total excluding those held by subsidiaries

This line applies to Canadian insurers/societies only.

Page 21.090

Insurers/Societies licensed in Quebec Real Estate – Geographic Distribution by Type

Only Canadian insurers/societies that are licensed in the province of Quebec are required to fill in this schedule.

This schedule provides an analysis of the consolidated gross balance sheet value (before provisions) of real estate, including foreclosed real estate which is held for sale. Where mortgage encumbrances exist, they should not be deducted from the value of the real estate. Where a property has more than one use (i.e., office and retail) the whole property should be classified as one type based upon the use of the majority of the floor space.

The property types are described in the instructions for page 21.050 (except for properties held for own use).

Page 21.095

Quebec incorporated insurers only Real Estate – Geographic Distribution by Type and by Regions

Quebec insurers should follow the instructions for page 21.090 unless the insurer has 50% or more of balance sheet value (before provisions) of properties located in Quebec, in which case page 21.095 must be completed. An insurer also has the option to complete both pages.

This page applies to Canadian Quebec incorporated insurers only. Canadian Fraternal Benefit Societies are not required to fill in this page.

The geographic sectors used are based on the administrative regions of Quebec and are partially combined. The administrative regions of Quebec are described in the instructions for page 21.075.

Page 21.100

Interest in Associates & Joint Ventures and Other Loans and Invested Assets

Foreign insurers/societies should report all amounts vested in trust.

Part A – Interests in Associates & Joint Ventures

Investments in mutual funds, segregated funds and any similar investments should not be reported here.

List the top 10 (regardless of materiality) interests in Associates & Joint Ventures on lines 001 to 010 and fill out amounts in column 06. The total of all remaining interests in Associates & Joint Ventures not listed in lines 001 to 010 should be reported on line 019, column 06.

Part B – Other Loans and Invested Assets

Other loans and invested assets including fixed term investments not reported elsewhere should be reported here. Report the top 10 on lines 201 to 210 regardless of materiality. The total of all remaining investments not listed in lines 201 to 210 should be reported on line 219, column 16.

Page 21.110

Derivative Instruments Risks Profile

Lines 010-050, 210-250, 310-330 – Employed by the Insurer/Society – Risk Role

Indicate what risk role(s) the insurer/society assumes in using each type of derivative instrument using the legend at the bottom of page 21.110. Where the insurer/society assumes more than one risk role in respect of a particular type of instrument, each role should be indicated. For example, during the reporting period, the reporting entity may have been a trader in interest rate swaps and used them as well for hedging. In this case, beside the interest rate swaps, it would list risk roles 1 and 2 in line 030, column 02.

Lines 010-499 – Columns 07-37 – Gross Notional Principal Amount of year end

The consolidated amounts should be reported in column 07 and the non-consolidated amount for the insurer/society only should be reported in column 12. For societies, column 12 should only include amount from insurance funds.

Lines 010-499 – Column 17 – Over the Counter Amount

Report the notional amounts relating to all derivative contracts that are not exchange traded.

Lines 010-499 – Column 22 – Amount Held for Trading

Report the notional amounts relating to all derivative contracts that are held for trading purposes.

Lines 010-499 – Columns 27, 32, 37 – Remaining Term of Exposure

The total notional principal amount reported in column 07 should be broken down in columns 27, 32 and 37 by the remaining term to maturity. The sum of these columns should equal the amount reported in column 07.

Lines 010-499 – Column 42 – Credit Risk (Positive Mark to Market Exposure)

Report amounts only for contracts that have credit risk (i.e., positive mark to market exposure).

Line 550 – Column 42 – Adjustments for master netting agreements

Report on line 550 any adjustments for master netting agreements not recognized under the applicable accounting standards because there is no intention of settling on a net basis or of realizing the asset and settling the liability simultaneously.

Lines 010-499 – Column 47 – Credit Equivalent Amount

Insurers/ societies: The Credit Equivalent Amount is determined on the basis outlined in the LICAT Guideline.

Quebec insurers: The Credit Equivalent Amount is determined on the basis outlined in the CARLI Guideline.

Column 12 – Notional Amount in Life Insurer/Insurance Fund

This column applies to Canadian insurers/societies only.

Page 21.120

Derivative Instruments Risk Profile – Gross/Net Mark to Market Exposures

Line 010 - 099 – Total Net Positive Mark to Market Exposures by Credit Rating and Contract Class

For each credit rating category, report the net positive mark to market exposure relating to each class of contract, split between exposures to related and arm's length counterparties. The net positive mark to market exposure is the summation of all individual positive mark to mark exposures (except where an offsetting of negative mark to market exposures with the same counterparty is permitted).

Line 110 – 199 – Total Gross Positive Mark to Market Exposures by Credit Rating and Contract Class

For each credit rating category report the gross positive mark to market exposure relating to each class of contract, split between exposures to related and arm's length counterparties.
The gross positive mark to market exposure is the exposure before offsetting. Do not report contracts with negative mark to market exposures.

Page 21.130

Substantial Investments

This page applies to Canadian insurers/societies only.

Refer to your principle regulator for requirements in their jurisdiction.

Materiality is defined as one percent of the consolidated equity of the Insurer/Society.

Substantial investments are defined under Section 10 of the Insurance Companies Act.

Column 07 – Direct or Indirect Investment

Indicate if the investment is held directly by the insurer/society or indirectly through subsidiaries.

Column 12 – Date of Acquisition

Include each date of acquisition of shares where the insurer/society has made investments in a particular corporation over a period of time.

Column 37 – Guarantees

Guarantees included in this column should be the face value of the guarantee.

Columns 42, 47 – Total Assets of Corporation/Equity of Corporation

Both total assets of the corporation and equity of the corporation should be as at the latest fiscal year-end for the corporation.

Page 21.140

Principal Custodians of Cash and Invested Assets (excluding Real Estate)

This page applies to Canadian insurers/societies only.

Insurers/societies are asked to outline the location of invested assets by type of asset. The "Type of Asset" is intended to cover broad categories such as bonds, common shares, etc. List assets held at the insurer's/society's own premises out of Canada, including the address of the particular office.

Specify assets held by a regulatory body, in a foreign jurisdiction.

Report the location where the legal documentation is maintained for mortgage loans.

Page 21. 150

Accounts Receivable

Segregate accounts receivable so as to show separately, ordinary trade accounts, amounts owing by affiliates or related parties and other unusual items of substantial amount.

Page 21.155

Insurers/Societies licensed in Quebec - Accounts Receivable

Only Canadian insurers/societies that are licensed in the province of Quebec are required to fill in this schedule.

See general instructions under page 21.150.

Lines 220 – 230 – Agents Debit Balances / Brokers Balances

Report the amounts which are due to the insurer/society from agents and insurance brokers (do not offset the receivables with amounts due to agents and insurance brokers).

Line 240 – Registered/Approved Reinsurers and Insurers/Societies

Report all amounts receivable from registered/approved reinsurers and insurers/societies.

Line 250 – Other Reinsurers and Insurers/Societies

Report the amounts due to the insurer/society from all reinsurers and insurers/societies not reported on line 240. This includes amounts receivable from reinsurers for claims paid, shared contracts and payments receivable under settlement annuities for those unregistered/unapproved reinsurers and insurers/societies.

Line 260 – Other Receivables

Include the amounts due to the insurer/society on ancillary and other fee business, etc.

Page 21.155

Insurers/Societies licensed in Quebec – Other Assets

Only Canadian insurers/societies that are licensed in the province of Quebec are required to fill in this schedule.

Line 420 – Prepaid and Deferred Charges

Include prepaid commissions.

Line 450 – (Specify)

Include miscellaneous assets other than investments. Other investments should be reported on page 21.100.

Page 21.155

Insurers/Societies licensed in Quebec – Accounts Payable

Only Canadian insurers/societies that are licensed in the province of Quebec are required to fill in this schedule.

Line 610 – Overdraft

Report the total of net book overdraft, by financial institution, on a country by country basis.

Line 620 – Agents and Brokers

Include commissions due and accrued, payable to agents and brokers.

Page 22.010

Actuarial Liabilities for Insurance Contracts by Line of Business - Canada and U.S.A.

This schedule includes actuarial liabilities for insurance contracts only.

For all three sections - Life, Annuity and A&S, both individual and group, amounts entered in reinsurance assumed and reinsurance ceded should include all reinsurance business carried on by the entity, appropriately reported by line of business consistent with line of business net reporting elsewhere in the return.

Actuarial liabilities in a territory should be related to policies/certificates issued to residents of that territory.

Reinsurance ceded should include reinsurance with unregistered insurers/societies which has not been approved by the Regulator (for which no credit has been given under LICAT/CARLI).

For reinsurers retroceded business should be considered ceded business.

Columns 11 and 13 – U.S.A.

These columns apply to Canadian insurers/societies only.

Lines 610 to 639 – Property & Casualty

These lines apply to Canadian insurers/societies only.

Lines 819 to 849 – Total

These lines apply to Canadian insurers/societies only.

Page 22.020

Actuarial Liabilities for Insurance Contracts – Summary

The Actuarial Liabilities for Insurance Contracts - Summary only applies to Canadian insurers/societies only.

Line 339 – Columns 01 + 11 – Grand Total – Reinsurance Ceded Assets

Amounts should be consistent with reported reinsurance ceded for insurance contracts on page 45.060. Differences may exist to the extent that these reinsurance schedules include ceded amounts relating to non-insurance contracts, such as investment contracts which are shown on line 530, page 22.020.

Page 22.020

Other Contract Liabilities

- Line 410 – Columns 21, 31 - Outstanding Payments under Settlement Annuities

Outstanding contractual (insurance and annuity) payments are reported under settlement annuities.

- Line 420 – Columns 21, 31 - Premiums Received in Advance

Include premiums received in advance where no discount has been allowed by the insurer/society and the advance is considered part of a normal pattern. Do not include funds placed as deposits with the insurer/society; report such other deposits on line 440.

- Line 430 – Columns 21, 31 – Policyholder/Certificateholder Dividends and Experience Rating Refunds, Due and Unpaid

In addition to dividends due and unpaid, dividends contingent on the payment of premiums should be included.

Note: The provision for Experience Rating Refunds is to be reported on line 470 of this page.

- Line 440 – Policyholder/Certificateholder Amounts on Deposit

This would include dividends and other policy/certificate benefit amounts (e.g. death, surrender and disability claim amounts) left by policyholders/certificateholders on deposit with the insurer/society to accumulate at interest and which can be withdrawn at any time.

- Line 460 – Oustanding Claims and Adjustment Expenses

Include amounts due and unpaid and any provision for IBNR claims for Life and A&S business only.

- Line 470 – Provision for Experience Rating Refunds

Include amounts due and unpaid on line 430 above.

Page 22. 030

Accounts Payable

- Line 060 – Other Payables

Include overdrafts, agents and brokers, other insurers/societies, and expenses due and accrued.

Page 22. 030

Provisions and Other Liabilities

- Line 230 – Dividends to Shareholders Declared and Unpaid

This line applies to Canadian insurers/societies only.

- Line 290 – Other

Include provisions for employee benefits, lease liabilities and other items.

Page 22.040

(Insurers/Societies licensed in Quebec) Subordinated Debt – Included in LICAT/CARLI Capital at Year End

Only Canadian insurers/societies that are licensed in the province of Quebec are required to fill in this schedule.

Indebtedness which is subordinate in right of payment to policy/certificate liabilities as defined in legislation should be reported on page 22.040 for those debt instruments qualifying as capital for LICAT/CARLI purposes. Refer to the LICAT/CARLI Guideline for details on what qualifies as capital for LICAT/CARLI purposes.

Report separately indebtedness issued by the life insurer/society and indebtedness issued by subsidiaries and list separately beneficial holders of 5% or more (individuals and corporations) of total subordinated debt. Nominee names should not be used, particularly in respect of holdings greater than 10% of total.

Report the outstanding balance of the subordinated debt in column 01. In column 17 the balance counted as LICAT/CARLI capital should be reported, discounted as necessary for terms to maturity of five years or less in accordance with the LICAT/CARLI Guideline.

Amounts shown should be net of any consolidation elimination entries.

Amounts shown should be net of any consolidation elimination entries.

- Line 799 – Column 17 – Total Balance Counted as LICAT/CARLI Capital

This amount should agree to the amount in the LICAT/CARLI calculation.

Page 23.010

Net Investment Income

Report income in respect of Segregated Funds on page 23.030 - Other Revenue.

Report investment income after adjustment for accrued interest or dividends included in the price of investments purchased or sold during the year.

Report investment income on an "accrual basis".

- Line 010 – Bonds – Interest

Include amortization of premium or discount and interest earned on bonds and debentures during the year.

- Line 310 – Rental Income Including $___. for Insurer's/Society's Own Use

Report gross income, including an imputed rent for owned premises which are for own use.

There are three datapoints to be completed on this line: current (column 01), prior (column 02) and an inside datapoint (column 99). The inside datapoint is labelled "rental income including $____________ for Insurer's/Society's Own Use", and is located at the bottom of the form.

Amounts reported should be net of any consolidation elimination entries. Real estate expenses (but not imputed rent) related to own use space should be included with other investment expenses on line 810. Similarly, real estate taxes are included on line 820.

- Line 610 – Column 01 – Interest on Policy/Certificate Loans

Include interest earned on policy/certificate loans during the year. Unpaid interest should be recorded as an addition to the policy/certificate loan on page 20.010, line 200 to the extent that the loan would not exceed the cash surrender value on the policy/certificate.

- Line 640 – Column 01 – Interest on Overdue Premiums

Report interest charged on premiums that are past their due date to permit continuance of the policy/certificate.

- Line 820 –Investment Taxes

Include realty taxes on real estate properties whether for own use or not, any other taxes (other than income taxes), licenses and fees which are considered to have been incurred in the care and management of investments.

- Line 929 – Fair Value Gains (Losses) reflected in the Actuarial Reserves

Record the amount of the Fair Value Gains (Losses), for bonds, mortgage loans as well as preferred and common shares that were directly offset by changes in the Actuarial Reserves.

Page 23.030

Other Revenue

- Lines 050 – 052 – (Specify)

Report the three most significant items of Other Revenue in the write-in lines 050, 051 and 052 and provide appropriate line descriptions.

Interest Expense & Finance Costs

- Line 210 – Interest on Subordinated Debt

This line applies to Canadian insurers/societies only.

Include interest credited and the change in accrued interest due and payable on loans, notes and debentures that can be classified as subordinate to the other outstanding debt of the insurer/society.

General Expenses and Taxes

Include expenses related to other revenue.

Exclude expenses attributable to investment operations. They are taken into account in the determination of net investment income on page 23.010.

- Line 310 – Rent

Expenses incurred as tenant for light, heat, water, rent paid to a third party and an imputed rent for own premises should be included. The imputed rent for own premises recorded on this line should coincide with the component amount shown as revenue on line 310, page 23.010.

The imputed rent should approximate the amount of rent that would have been paid in an arm's length transaction for premises of similar size and quality under current market conditions.

- Line 330 – Salaries, Wages and Allowances

Salaries, wages, allowances and similar payments or expenses incurred for staff should be included with the exception of those employees engaged in investment related activities. Their expenses will be included with other investment related expenses and shown on page 23.010, line 810.

- Line 410 – Premium Taxes

Include penalties for late payment of premium taxes or late filing of the premium tax return on this line.

- Line 430 – Assessment & Dues

Report assessments related to Assuris (Canadian Life and Health Insurance Compensation Corporation) on this line, along with the other assessments and dues incurred by the insurer/society in other jurisdictions.

- Line 450 – Licenses and Fees

Include fees charged by regulatory authorities for the general supervision and examination of the insurer/society on this line together with fees for insurer/society and agent licences.

- Line 470 – Miscellaneous Taxes

Business taxes, provincial and federal taxes (including capital tax).

- Line 480 – Head Office Overhead

This line applies to foreign insurers/societies only.

Other Expenses

- Line 710 - Amortization of Property & Equipment (Write-down included $___)

There are three datapoints to be completed on this line: current (column 01), prior (column 02) and an inside datapoint (column 99). The inside datapoint is labelled "Write-down included $________", and is located at the bottom of the form.

- Line 730 - Amortization of intangible assets (Impairment losses included $___)

There are three datapoints to be completed on this line: current (column 01), prior (column 02) and an inside datapoint (column 99). The inside datapoint is labelled "Impairment losses included $__________", and is located at the bottom of the form.

- Line 771 and 772 – (Specify)

Describe the nature of the expense item in the space provided inside the title line. For Modified Co-insurance (mod-co) reinsurance policies/certificates, the net adjustment to reserves and interest on beginning policy/certificate reserves, known as the "mod-co adjustment", should be reported as a component of Other Expenses. This reporting is required for both the cedant and the reinsurer, for both a net negative income effect (expense) and for a net positive income effect (revenue).

Pages 35.010 – 35.020

Analysis of Income by Line of Business - Canada & Out of Canada

See instructions for the income statement, page 20.030 for further details regarding the completion of these pages.

With respect to materiality limits and the disclosure by territory, insurers/societies are required to complete all income statement lines for all foreign territories (U.S.A., Europe and Asia/Other) in which:

  1. assets of the foreign territory exceeds 5% of the consolidated equity; or
  2. the revenue in the territory exceeds 5% of consolidated revenue. Insurers/societies may include immaterial territories under "Asia/Other." However, if an insurer/society has insignificant operations out of Canada, the immaterial territories should be reported under "Canada."

Territorial Breakdown

Europe – Belgium, France, Germany, Ireland, Italy, Netherlands, etc., and the United Kingdom consisting of Great Britain (England, Wales, Scotland and Northern Ireland).

Asia/Other – Bermuda, Caribbean, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Mexico, Philippines, Singapore, Thailand, etc.

- Line 130 – Fee Income

Include any fee income generated by the insurer/society on this line along with management fees arising from the insurer's/society's Segregated Funds business and fees earned from Administrative Services, etc.

- Line 160 – Other Revenue

Include settlement annuity considerations arising out of settlement options exercised by the beneficiary and income from non-insurance operations including those related to an insurer's/society's banking and trust operations.

- Line 260 – Policyholder/Certificateholder Benefits

Include, on a gross basis, all insurance claims, annuity payments including maturity and surrender payments.

Report Settlement Annuities in the "Other Revenue" line.

Include the cash surrender value applied to purchase a new insurance policy/certificate or benefit, or to continue a policy/certificate or benefit in accordance with the terms of the original policy/certificate, provided the new or continued policy/certificate or benefit can be included as New Effected in the movement of policies/certificates.

Include cash values applied to repay a loan.

Exclude cash surrender values applied to purchase reduced paid up or extended term insurance as this is not New Effected business.

Include interest paid on claims, contractual payments and withdrawal payments for GICs and other contractual deposit funds where the amount is substantial and including this amount with regular annuity payments would not be appropriate.

- Lines 260 to 480

Amounts for lines 260 to 480, columns 01 to 22 are only be reported on the 4th quarter filing.

- Line 270 – Benefits Ceded

Include any benefits ceded to registered or unregistered reinsurers/insurers/societies.

- Lines 310 – 320 – Gross Changes to Actuarial Liabilities – Normal/Basis Change

Include insurance contract liabilities for direct and assumed business.

- Lines 342 and 344 – Gross Changes to Other Contract Liabilities – Normal/Basis Change

Include investment contracts, service contracts and other contract liabilities that are not by definition considered to be insurance contracts.

- Lines 370 – 380 – Changes in Actuarial and Other Liabilities Ceded Normal/Basis Change

Include ceded business for insurance contracts, investment contracts, service contracts and other contract liabilities.

- Line 360 – Policyholder/Certificateholder Dividend

Include amounts paid as well as any change in the due and unpaid.

- Line 420 – Transfer to and (Transfer from) Other Funds

Use this line for reporting movement of funds pertaining to transactions involving:

  1. acquisition/release of a block of business through reinsurance; and
  2. transfer of policy/certificate risk between general fund and Segregated Funds (up to the date of such acquisition/release and transfer of risk).

In respect of such existing risk or block of business, the offsetting reporting should be to the "Net Changes to Actuarial Liabilities" and this line of "Transfer to and (from) Other Funds." In effect, the transfer of a block of business or policy/ certificate should not give rise to a change in net income as a result of the change in actuarial liabilities as at that date.

- Line 480 – Interest on Policyholder/Certificateholder Amounts on Deposit

Report interest credited during the year to amounts the insured left on deposit with the insurer/society, be it dividends, proceeds from insurance contracts or prepaid premiums or other deposit funds where the insurer/ society guaranteed certain rates of interest. The interest credited consists of amounts actually credited to the funds on deposit plus the change in accrued interest due to policyholders/certificateholders and not yet credited.

- Lines 510 to 749

Amounts for lines 390 to 749, columns 01 to 36 are only be reported on the 4th quarter filing.

- Line 510 – Interest Expense and Finance Costs

See instructions for page 23.030, line 299.

- Line 540 – General Expenses and Taxes (exc. Income Taxes)

See instructions for page 23.030, line 599.

- Line 570 – Other Expenses

See instructions for page 23.030, line 899.

- Lines 859 and 870

These lines apply to Canadian insurers/societies only.

Pages 35.010 – 35.020

Net Benefits

- Lines 210 to 240

Amounts for lines 210 to 240, columns 01 to 22 are only be reported on the 4th quarter filing.

– Line 210 – Claims

Include on a net basis (gross + assumed - ceded) all insurance claims excluding those related to annuity payments and surrender payments.

- Line 220 - Annuity Payments

Include on a net basis (gross + assumed - ceded) all payments related to annuities including maturity and surrender payments.

Report Settlement Annuities in the "Other Revenue" exhibit.

- Line 230 – Surrenders

Include on a net basis (gross + assumed - ceded) all surrender payments excluding those related to annuity payments.

Include the cash surrender value applied to purchase a new insurance policy/certificate or benefit, or to continue a policy/certificate or benefit in accordance with the terms of the original policy/certificate, provided the new or continued policy/certificate or benefit can be included as New Effected in the movement of policies/certificates.

Include cash values applied to repay a loan.

Exclude cash surrender values applied to purchase reduced paid up or extended term insurance as this is not New Effected business.

- Line 240 – Other

Include on a net basis (gross + assumed - ceded) all interest paid on claims, contractual payments and withdrawal payments for GICs and other contractual deposit funds where the amount is substantial and including this amount with regular annuity payments would not be appropriate.

- Column 36 – Non-Par Surplus

This column applies to Canadian insurers/societies only.

- Column 61 – Property & Casualty

This column applies to Canadian insurers/societies only.

- Column 66 – Deposit Taking

This column applies to Canadian insurers/societies only

- Column 71 – Head Office Account

This column applies to foreign insurers/societies only.

Page 35.020

Analysis of Income by Line of Business – Out of Canada

This page applies to Canadian insurers/societies only.

Page 35.040

Analysis of Sales (Premiums and Deposits) by Major Line of Business and Territory

This page applies to Canadian insurers/societies only.

Materiality guidelines with respect to disclosure by territory are the same as those for pages 35.010 – 35.020.

All amounts on this page should be reported on a gross basis.

Include Europe and Asia under column 16 "Other."

- Lines 010 – 099 – Protection – New Annualized Premiums

Protection includes direct life, A&S business and P&C business for both individual and group lines.

Protection sales are measured in terms of gross new annualized premiums for individual and group protection (insurance) business.

These premiums are defined as the annual premiums on policies/certificates sold and additional premiums on policies/certificates converted during the reporting period.

- Lines 210 – 299 –Wealth Management – New Premium Equivalents Premium Income and Deposits

Wealth Management includes individual and group annuities (pensions).

Wealth Management sales are measured in terms of premium income and new deposits, depending on the nature of the product.

- Line 410 - 499 – Other New Premium Equivalents

Other includes Fee for Service business. This includes investment management services, Group ASO contracts etc.

Sales are measured in terms of the new premium equivalents. New premium equivalent amounts are equal to the growth in the bases upon which the related fees are generated.

Page 35.070

Assets and Liabilities – In Canada/By Territory

This page applies to Canadian insurers/societies only.

Refer also to the instructions for pages 20.010 and 20.020.

Record assets vested in trust in the territory in which they are vested.

For purposes of determining In Canada Actuarial Liabilities for Insurance Contracts, insurers/societies should base their determination on the policy/certificate on the life of a person resident in Canada at the time the policy/certificate was issued. Actuarial Liabilities for Insurance Contracts in a territory (other than Canada) are for risks located in that territory. Other liabilities should also be attributed to the territory where the risk was located.

Assets and liabilities need not be separately reported for any territory in which both the amount of assets and amount of liabilities are less than 5% of consolidated equity, or revenue in such territory is less than 5% of consolidated revenue. In such cases, the assets and liabilities should be reported under "Asia/Other", if the life insurer/society has significant operations out of Canada; otherwise, the applicable assets and liabilities should be reported under "Canada."

Page 35.080

Liquid Assets & Cashable Liabilities – By Territory

Cashable liabilities are those where the policyholder/certificateholder has the option to withdraw funds from the insurer/society in the next 12 months. This includes reinsurance agreements where the agreements could be cancelled, resulting in cash being required to be paid to the other company, and any debts that will fall due in the next 12 months.

Liquid assets are those that can be sold for cash in a public market, so as to be available to meet any obligations from policyholders/certificateholders and debt holders. The asset value shown may include accrued interest, at the option of the insurer/society.

The separation of assets between in Canada and out of Canada should be based on the location where the assets are held. Record assets vested in trust related to a particular territory in the territory in which they are vested.

Foreign insurers/societies should report all liquid assets vested in trust.

- Columns 01 and 06 – In Canada/Out of Canada

These columns apply to Canadian insurers/societies only.

Pages 45.010 – 45.020

Premiums and Commissions – In Canada & Out of Canada

See instructions for pages 35.010-35.020.

Inclusion in Premiums

Include consideration for life insurance policies/certificates, annuities, accident and sickness and property and casualty contracts in force at any time during the year. The full amounts are to be reported without any deduction for dividends to policyholders/certificateholders, experience rating refunds, commissions or expenses.

Dividends

Dividends applied to purchase bonus additions, extended insurance, paid-up insurance or premium reductions, or shorten the premium paying or endowment period should be included as single premiums.

Premium Reductions

Where premiums have been reduced by the purchase of premium reductions, only the reduced premium is to be entered in subsequent years.

Exclude the application of cash dividends in part payment of premium falling due in the succeeding 12 months do not report as the purchase of a premium reduction. In these cases, the full premium should be shown and the dividend treated as a cash dividend.

Premiums Waived

Exclude premiums waived because of the death or disability of the person paying the premiums, when the policy/certificate is still in force.

Cash Equity

Include the cash equity of any life or annuity contract that is applied to purchase a new life or annuity contract as premiums if the life or annuity contract may properly be included among "new effected" in the movement of insurance (95.030 and 95.040) or movement of annuities (75.050 and 75.060) pages.

Shared Contracts

Include only the reporting insurer's share of any insurance premiums or annuity considerations as "Direct" on this page in the case of group contracts shared among registered insurers. Entries should not appear in the assumed and ceded parts for such shared contracts, even in cases where the reporting life insurer is administering the contracts, unless pursuant to reinsurance treaties such shared group premiums (or other 100% underwritten group premiums) have either been assumed or ceded by the insurer.

Group insurance policies are considered to be issued on a shared basis if the administering insurer does not have the power to alter the distribution of insurance among the associated insurers, even if there is no formal agreement.

Industrial Premiums

Include industrial premiums with individual renewal premiums and do not subdivide into first year and renewal.

Co-insurance

Include only the reporting insurer's share of commissions.

- Line 289 – Total Net Premiums

Report the gross or full amount of the premiums received without any deduction for dividends to policyholders/certificateholders, experience rating refunds, commissions or expenses. Exclude Segregated Fund receipts/deposits.

Do not deduct experience rating refunds, policyholders/certificateholders dividends and retrospective rating credits from premiums.

Page 45.010

Premiums and Commissions – Canada

Columns 61 and 76 apply to Canadian insurers/societies only.

Page 45.020

Premiums and Commissions – Out of Canada

This page applies to Canadian insurers/societies only.

Page 45.060

Reinsurance Ceded

Include a provision in the LICAT/CARLI calculation if ceding reinsurance to unregistered insurers/societies and arrangements have not been approved (or a credit to reduce LICAT/CARLI components have not been given) by the Primary Regulator.

OSFI maintains a list of approved provincial insurers which are not federally registered and have been approved by OSFI for reinsurance purposes. Business ceded to such insurers should be treated as approved business.

Types of Reinsurance

See "Section III – Definitions" for definitions on types of reinsurance.

- Lines 799 and 920

These lines apply to Canadian insurers/societies only.

Page 60.010

Segregated Funds - Net Assets

The Segregated Funds – Net Assets excludes seed money. The seed money is included in "Other Loans and Invested Assets".

Segregated Funds - Changes in Net Assets

- Line 410 - Segregated Funds Net Assets, Beginning of Year

Report adjustments to the prior year's closing balance on one of the blank lines (590, 620, 770 or 810) with an appropriate description.

- Line 500 - Interest and Dividends

Exclude dividends paid to policyholders/certificateholders.

- Line 530 – Net transfers from the General Fund (amounts transferred re: guarantees.

There are three datapoints to be completed on this line: current (column 01), prior (column 02) and an inside datapoint (column 99). The inside datapoint is labelled "amounts transferred re: guarantees $ ____________", and is located at the bottom of the form.

This line is to be used for transactions where there has been a transfer of funds between an insurer's/society's Segregated Fund and its general fund.

- Line 710 – Payments to Policyholders/Certificateholders

Report all payments to policyholders/certificateholders, including dividends and amounts paid on withdrawal/redemption of funds invested in units of the Segregated Funds.

- Line 740 – Management and Administration Fees

Include management and administration fees only. Report fees paid by the Segregated Fund on this line.

Include fees paid by the Segregated Fund directly to others for services such as investment advice, custodial fees or investment transaction fees, in write-in lines 770, 810 providing appropriate line descriptions.

Record management fees paid to the General Fund as an expense of the Segregated Fund and do not net with other transactions with the General Fund.

Page 60.020

Seed Money Net Assets Movement for the Year

Refer to Chapter 8.4 of the LICAT Guideline on the definition of seven asset classes.

- Column 21 – Additional Transfers from General Fund

Include deposits from policyholders/certificateholders received during the year. If the insurers/societies transfers seed money during the year, it would be recorded under "Other Loans and Invested Assets".

Page 60.030

Segregated Funds Net Assets and In The Money Position – By Type of Maturity Guarantee

- Lines 110 - 889

In cases where a fund can apply to multiple product guarantees or bonus rates, choose the product guarantee or bonus rate which has the largest net assets.

For lines 110 to 310, report funds with maturity guarantees on lines 210 and 310. All other funds should be reported on line 110. For lines 610 to 650, report funds with maturity guarantees on lines 620 to 650. All other funds should be reported on line 610.

- Line 110 – Funds with no guarantees

Report only segregated funds with no guarantees including stand-alone death benefit products. The net assets reported (Column 02) would equal line 610 (Column 22).

- Line 210 – Funds with minimum guarantees (< 75%)

Report minimum maturity benefits equal to and less than 75%. For lines 610 to 650, report funds with maturity guarantees on lines 620 to 650. All other funds should be reported on line 610.

- Line 310 – Funds with minimum guarantees (> 75%)

Report minimum maturity benefits greater than 75% and all other living benefit guarantees products on this line.

- Column 07 – Net Assets Covering Policies/Certificates Issued in Canada

This column applies to Canadian insurers/societies only.

The amounts reported in this column are the value of net assets covering contract holders who purchased a contract in Canada. This is not a reporting of where the assets are held by custodians. Since seed money transferred from the General Fund is not covered by the issue of a policy/certificate, net assets backing seed money are not included in this column.

- Column 12, 17 - Net Assets Covering Policies/Certificates Issued in the U.S.A. and Other Countries

These columns apply to Canadian insurers/societies only.

Instructions above with respect to column 07 apply to policies/certificates issued outside of Canada.

- Line 410 - 530 – Funds with guaranteed minimum withdrawal benefit product – Memo line items

The amounts reported on lines 410 - 530 are a subset of amounts reported in lines 210 and 310 for policies/certificates or riders with the guarantees.

- Lines 610 - 689 – By Maturity Period

Bonus rates are the percentage applied to the guaranteed withdrawal benefit base in any year when no withdrawal is taken where applicable. Report all products by maturing guarantees.

- Lines 720 - 789 – Column 31 – Segregated Fund Exposures (In the Money Position)

The "in the money position" is the dollar amount of the in the money position, calculated as the sum of [(the greater of the maturity guarantee or the guaranteed minimum withdrawal benefit) base less the net asset value] for each contract where the amount is positive.

Page 60.040 - 60.050

Interrogatories to Segregated Funds

Embed explanations to the interrogatories into the special excel file if the lines provided on the pages are not adequate.

Pages 70.010 - 70.042

Non-Consolidated Financial Statements

These pages apply to Canadian insurers/societies only.

For OSFI reporting purposes, these pages are only submitted on an annual basis.

For AMF reporting purposes, insurers/societies licensed in the province of Quebec are required to submit these pages for Q2 and Q4 reporting periods.

For Provincially Regulated insurers, these pages are to be submitted on a quarterly basis.

Reporting of In Canada amounts

Report as "In Canada" amounts if the total of assets and liabilities are less than 5% of non-consolidated equity, or revenue out of Canada is less than 5% of non-consolidated revenue.

Page 70.010

Assets

See instructions for page 20.010 for additional information

Assets in Canada

Insurers/societies should treat assets as being "In Canada" based upon the location of the assets and subject to the criteria listed below. Assets not meeting these criteria should not be included herein (e.g., cash/deposits held through a Canadian financial institution outside of Canada, investments in book-based securities held/cleared through a foreign depository where an insurer/society is a direct member of the foreign depository, etc.).

Record assets vested in trust in the territory in which they are vested.

Assets In Canada Criteria:

Cash/deposits held through a financial institution in Canada are reported on lines 010 and 040 as appropriate.

The following assets are to be reported in the "In Canada" columns 11 and 13:

  • Investments in securities where the instruments are physically maintained in Canada (e.g., in own vaults, with Canadian Depository for Securities or with other financial institutions in Canada).
  • Investment in book-based only securities held/cleared through the Canadian Depository for Securities.
  • Investments in book-based securities held/cleared through a foreign depository (e.g., Depository Trust Company) where a Canadian or foreign financial institution (note, for Federal insurers/ societies, "foreign financial institution" is as defined under subsection 2(1) of the Insurance Companies Act) acting as the insurer's/society's custodian is a direct member of the foreign depository (could also involve a sub-custodian intermediary who is a direct member of the foreign depository).
  • Assets based in Canada where documentation evidencing ownership is also maintained in Canada.
  • Mortgage loans on property based in Canada where documentation evidencing indebtedness is also maintained in Canada.
  • Other loans to Canadian individual/corporate residents where documentation evidencing indebtedness is also maintained in Canada.

The criteria for reporting in-Canada assets for accrued investment income, accounts receivable, investment in subsidiaries, future income taxes, goodwill, intangible assets and other assets, is based purely on the location of assets. Report by jurisdiction where the asset is receivable or collectible. If accurate allocation of these assets by jurisdiction imposes an undue burden of reporting on the insurer/ society, then treat as being in Canada provided that, in aggregate, these assets do not exceed one per cent of the equity of the insurer/society.

Page 70.020

Liabilities, Policyholders and Shareholders' Equity

See the General Comments for Section 70 re: Non-Consolidated Financial Statements.

This section applies to Canadian insurers only.

See instructions for page 20.020 for additional information.

In Canada Liabilities

For purposes of determining In Canada Actuarial Liabilities for Insurance Contracts (line 010), life insurers should base their determination on the policy on the life of a person resident in Canada at the time the policy was issued.

Only actuarial liabilities and related liabilities associated with policies located in Canada that are based on the policy on the life of a person resident in Canada at the time the policy was issued should be reported as In Canada (with the exception of immaterial foreign amounts which can be classified as being in Canada provided they meet the materiality guidelines). The residence of a policy's beneficiary is not relevant in deciding whether a policy is a policy in Canada.

With respect to other liability items (lines 070 through 250), items of liabilities that pertain to Canadian creditors as per the chart of accounts and accounting records of the life insurer should be reported as in Canada in columns 11 and 13. Where such determination in respect of a small amount of liabilities poses an undue burden of allocation between In Canada and Out of Canada accounts, they should be reported "In Canada." The aggregate of such undeterminable items in the ordinary course should not exceed one per cent of the equity of the life insurer.

The reporting of subordinated debt (line 280) and other debt (line 310) as In Canada liabilities should be determined based on the covenants underlying the debt instruments (e.g., if the debt is payable to a creditor in U.S.A. and borrowing for administration of U.S. business), it should be reported on in columns 01 and 03 and not in the "In Canada" columns.

Page 70.021

Liabilities and Surplus

See the General Comments for Section 70 re: Non-Consolidated Financial Statements.

This section applies to Canadian Societies only.

See instructions for page 20.020 for additional information.

In Canada Liabilities

See instructions for page 70.020.

Page 70.030

Statement of Income

See the General Comments for Section 70 - Non-Consolidated Financial Statements.

See instructions for page 20.030 for additional information.

Page 70.035

Statement of Income by Fund

This page applies to Canadian Quebec incorporated insurers only. Canadian societies are not required to fill in this page.

Line 075 - Overlay approach adjustment for financial instruments (Reclass from P&L to OCI)

This line only applies for insurers who have adopted the overlay approach for the implementation of IFRS 9

Page 70.042

Comprehensive Income (Loss), and Accumulated Other Comprehensive Income (Loss)

- Columns 01, 06, 11 and 16

These columns only apply to Canadian insurers/societies that are incorporated in the province of Quebec.

Lines 220, 225 and 775 – Overlay Approach

These lines only applies to Quebec provincially incorporated insurers who have adopted the overlay approach for the implementation of IFRS 9.

Page 75.010 and 75.020

Investments in Subsidiaries Part A and B

These pages apply to Canadian insurers/societies only.

Report the total amount invested in each Subsidiary and Structured Entity. Report the holdings, listed by investments in Preferred and Common Shares on page 75.010 and Bonds, Debentures, Mortgages, and Loans and Advances on page 75.020.

List first by Subsidiaries followed by Structured Entities and provide in column 01 under the name of the entity, the nature of the business as well as a description of each type of investment (e.g. 2nd Mortgage), together with the details required in each of the columns. The last column in both pages call for the reporting of the "Net Income (Loss)" reported by the entity as at the date of the Annual Return (LIFE 10A return).

Part A – Preferred and Common Shares

- Columns 11, 31 – Date Shares Acquired

A range of years is acceptable where applicable (e.g., 1982-2005).

- Column 17, 34, 37 – Original Cost

Report Canadian dollar equivalent at historical exchange rates.

Include goodwill on column 34

Part B – Bonds, Debentures, Mortgages, Loans and Advances

- Column 11 – Date Investment Made

A range of years is acceptable where applicable (e.g., 1982-2005).

- Column 20 – Rate of Return

Report the contractual annualized interest rate applicable to the investment. Where this is variable, indicate the current rate.

- Column 23 – Original Investment

Report Canadian dollar equivalent at historical exchange rates.

- Column 32 – Maturity Date

Report the maturity date of the investment where applicable. Where more than one maturity date is possible (e.g., retractable loans), report the redemption date used in arriving at the market value in column 29.

Page 75.030

Actuarial Liabilities for Insurance Contracts by Line of Business In Canada

This page applies to Canadian insurers/societies only.

The ceded and net actuarial liabilities reflect all reinsurance ceded, including reinsurance with unregistered companies which has not been approved, or a credit to reduce LICAT/CARLI components has not been given by the regulatory authorities.

For the Life, Annuity and A&S sections, both individual and group, amounts entered in reinsurance assumed and reinsurance ceded should include all reinsurance business carried on by the business entity, appropriately reported by line of business consistent with line of business net reporting elsewhere in the return.

Actuarial liabilities in Canada should be related to policies/certificates on the life of a person resident in Canada at the time the policy/certificate was issued.

Page 75.040

Analysis of Amounts of Life Insurance – Effected and In Force

Report reinsurance whether assumed or ceded by Life insurance business units or reinsurance business units. Report reinsurance ceded whether ceded to unregistered reinsurers or not.

- Line 010 – New Effected – Direct Written

Report new direct amounts of life insurance for individual and group life split into participating and non-participating.

Policies/certificates are to be included on this line from the date the life insurer assumes the risk.

This line is not to include paid-up or extended insurance granted in lieu of surrendered policies/certificates (whether surrendered at the end of the deferred period or at any other time), or policies/certificates that are mere transfers or changes of former policies/certificates.

Policies/certificates issued prior to the financial statement date which have not been taken or rescinded during the 10-day "free-look" period should not be included as "new effected." In cases where the accounting system include such new issues as completed transactions prior to the expiry of the "free look" period, a reversal of these transactions or an adjustment to reflect the actual amount of new business for which the life insurer/society is on the risk is appropriate.

Report individual policies/certificates issued as a result of the election of the conversion option by a certificate holder on withdrawal from a group insurance policy under Individual - New Effected.

- Line 020 – New Effected – Reinsurance Assumed

Report new assumed amounts of life insurance for individual and group life split into participating and non-participating.

- Line 030 – New Effected – Reinsurance Ceded

Report new reinsurance ceded life insurance amounts for individual and group life split into participating and non-participating.

Pages 75.050 and 75.060

Movement of Annuities – Individual and Group Annuities

Report deposit administration type deferred annuities both individual and group under accumulation annuities.

Insurers/societies are required to maintain working papers providing the appropriate summary data underlying the reported figures by product categories within individual annuity lines of business.

Use and record the most appropriate bases for disclosing the tie-in financial data in respect of contracts to which such data relates and the numerical movement.

- Line 010 – Direct In Force – Beginning of Year

The opening balance should agree with the closing balances for the prior year. Report other corrections or adjustments to the opening balances on line 130.

- Line 030 – Deposits

Report the total deposits received excluding transfers from other annuity products.

- Line 070 – Interest Credited

Report interest credited to accumulation account value of contracts in column 07.

- Line 100 – Transfers In

Report interest credited to accumulation account value of contracts in column 07.

- Line 130 – Other Increase

Report opening balance corrections and other reporting adjustments.

- Line 210 – Payment

Report amounts ceased/terminated due to payment expiry.

- Line 230 – Surrender

Report amounts ceased/terminated due to surrender of policy/certificate.

- Line 300 – Transfer Out

Report transfers of contracts to Segregated Funds or other lines at the option of the contractholder.

- Line 400 – Currency Revaluation

Report the change in account value and annual payment due to the change in rates of currency exchange at year end.

- Line 510 – Reinsurance in force – Assumed

Report annuities in force, end of year assumed from other life insurers/societies.

- Line 530 – Reinsurance in force – Ceded

Report annuities in force, end of year ceded to other life insurers/societies.

Page 75.070

Reinsurance Ceded to Unregistered Insurers

Unregistered insurers/societies: Refer to Section III - Definitions.

Business written out of Canada by insurers/ societies: Insurers/societies are deemed registered for purposes of assuming reinsurance if they hold an insurer's/society's permit in the jurisdiction in which the out of Canada business is written.

Highlighted text *- Column 02 – Name of Reinsurer*

Highlighted text *The complete legal name of the reinsurer to which the insurer has counterparty exposure. The counterparty name should be reported exactly as per the signed contract.*

- Column 03 – Country of origin

Report the jurisdiction of incorporation for the assuming insurer/ society. If the reinsurance is arranged through a branch of the assuming insurer/society, report the country of origin of the head office and not the branch.

- Column 18 – Effective date or date of latest revision of contract

Report the date the contract originally became effective unless there have been substantial revisions to the contract. In the latter case, report the date of the latest revision to the contract. An annual renewal of a contract does not constitute a revision, report the original date or the date of the latest major revision

- Colum 23 – On claims paid

The total amount recoverable on claims paid is included in the amount presented on page 20.010, line 100 and on page 21.150, line 260.

- Column 28 – On claims due and unpaid

Include a provision for claims incurred but not reported.

Exclude claims due and unpaid on unregistered reinsurance in outstanding claims reported on the liabilities page since outstanding claims are net of all reinsurance ceded.

- Column 33 – Actuarial liabilities ceded to reinsurer

Report actuarial and other policy/certificate liabilities ceded.

- Column 43 – Amount of insurance ceded to reinsurer

Amount of insurance ceded to reinsurer can include face amount or net amount at risk.

- Column 48 - Amounts held in Trust

Securities held for unregistered reinsurance must be accounted for, at market value at the end of the year. To be acceptable, securities must be held in accordance with the Primary Regulator's applicable guidelines. Insurers/ societies must also include investment income due on these securities.

- Column 53 – Amounts of acceptable LOC

Report acceptable letters of credit which meet the conditions described in the Capital adequacy requirements guidelines.

Page 80.010

Quebec incorporated insurers only – Segregated Funds – Net Assets

See instructions for page 60.010.

Only Canadian insurers incorporated in the province of Quebec are required to fill in this page.

Pages 95.010 – 95.040

Provincial Exhibits

Complete the provincial and territory columns 01 to 13 on the basis of current residence of the individual policyholder/certificateholder or group policy certificateholder, irrespective of whether the policy/certificate is issued in Canada or out of Canada. Report premiums on a written basis for all columns, and ensure agreement with other exhibits of the LIFE return. Details relating to these and the "Miscellaneous" column 18 are explained in the instructions below.

Exclude premiums from Segregated Funds.

Include transfers from Segregated Funds (surrender).

- Columns 01 – 13

Maintain a record of the current address of the group certificateholders directly written and shared, whether pertaining to contracts issued in Canada or on spill over groups in Canada on group contracts issued out of Canada. Records of the addresses of group certificateholders should be available for verification by auditors or regulators.

- Column 18 – Miscellaneous

Report the premium related to a policyholder/certificateholder that moves from Canada to out of Canada.

Report amounts where location of risk is unavailable, for example, pooled coverage.

- Column 28 – Out of Canada

Report all policies/certificates written out of Canada in this column.

If a Canadian insurer/society is not authorized to do business in any jurisdiction out of Canada, there would be no entries recorded in this column except with respect to reinsurance accepted if applicable.

For Foreign insurers/societies, the total amount (excluding Segregated Funds) related to risks insured in Canada is to be reported on the basis of the "current residence" of the individual policyholder/certificateholder or group certificate holder. Business insured in Canada with current residence located outside of Canada is reported in column 28 "Out of Canada."

Page 95.010

Premiums

Report premiums without any deduction for policyholder/certificateholder dividends and experience rating refunds, for both life and accident and sickness policies/certificates.

Report the full amount of such dividends and refunds on page 95.020.

For more details on premiums, insurers/societies should follow the instructions for page 45.010

- Columns 01 to 13 – Licensed Y/N

Indicate yes if the insurer/society is licensed to transact business in the Province/Territory.

Page 95.020

Policyholder/Certificateholder Benefits Paid and Incurred

Report only the insurer's/society's portion of shared group contracts. "Shared" business means shared with registered insurers/societies.

Include all benefits paid and incurred in settlement of insurance and annuity contracts and the increase in the provision for incurred but not reported claims.

Policyholder/Certificateholder Dividends and Experience Rating Refunds – Direct

Report dividends and experience rating refunds paid to policyholders/certificateholders, and exclude the change in provision for policyholder/certificateholder dividends and experience rating refunds.

Report dividends and experience rating refunds for both life and accident and sickness policies/certificates.

Page 95.030

Movement of Insurance – Life – Individual (Direct)

Exclude amounts related to Segregated Funds in the movement of life policies/certificates. The opening balances should agree with the prior year's closing balances. Amounts pertaining to policies/certificates providing for the payment of benefits in instalments or providing for deferred payments should be equal to the commuted value.

Report changes in plans if the amount of insurance has increased or decreased with the increase or decrease being reported on line 080 or 200 as appropriate.

When convertible term policies/certificates are converted to life or endowment policies/ certificates in accordance with the contract privilege, the conversion should be treated as a policy/certificate change and no entries should appear in the Movement of Policies/Certificates unless the amount of insurance is changed. In this latter event, an increase or a decrease, as the case may be, should be shown on line 080 or 200.

When a policy/certificate is terminated, the amount shown as "ceased" should be the amount heretofore carried as in force. No attempt should be made to reflect, on this page, adjustments to the face amount that may take place on termination.

- Lines 020 – 420 – In Force – Beginning of Year

The opening balance should agree with the closing balance for the prior year. Other corrections or adjustments to the opening balances should be reported on lines 080, 200, 480 and 600.

- Lines 040 – 440 – Column 33 – New effected

Report policies/certificates from the date the insurer/society assumes the risk.

Exclude paid-up or extended insurance granted in lieu of surrendered policies/certificates (whether surrendered at the end of the deferred period or at any other time), or policies/certificates that are mere transfers or changes of former policies/certificates.

Exclude policies/certificates newly issued in the last ten days of the year which are subsequently rescinded during the 10-day "free-look" period. When new issues are already included as completed transactions prior to the expiry of the "free look" period, a reversal of the transactions or an adjustment to reflect the actual amount of new business for which the insurer/society is on the risk is appropriate, as opposed to entering such rescinded policy/certificate amounts on other lines on this page.

Report individual policies/certificates issued as a result of the election of the conversion option by a certificate holder on withdrawal from a group insurance policy under Individual - New Effected.

- Line 060 – 460 – Old revived

Report policies/certificates that were reinstated from lapse status during the accounting period.

- Line 160 – 560 – Surrender

Only report policies/certificates under which there are surrender values. For example, a policy/certificate is considered surrendered when the premium payment is made with the dividends and the dividends are no longer sufficient to support the premium payment. Report policies/certificates terminated by payment of the proceeds in advance of the maturity date, at a discount, or by reason of non-repayment of policy/certificate loans, as ceased by surrender.

- Line 180 – 580 – Lapse

Only report policies/certificates under which no surrender values or non-forfeiture options were available at the date of termination.

-Line 250 - Currency Revaluation

Report the change in the account due to the change in the year end currency exchange rate.

Page 95.040

Movement of Insurance – Life – Group (Direct)

Refer to page 75.040 for additional instructions.

- Lines 020 – 420 – In Force – Beginning of Year

The opening balance should agree with the closing balance for the prior year. Other corrections or adjustments to the opening balances should be reported on lines 080, 200, 480 and 600.

- Lines 040 – 440 – Column 33 – New effected

Report policies from the date the insurer assumes the risk.

Exclude paid-up or extended insurance granted in lieu of surrendered policies (whether surrendered at the end of the deferred period or at any other time), or policies that are mere transfers or changes of former policies.

Exclude policies newly issued in the last ten days of the year which are subsequently rescinded during the 10-day "free-look" period as "new effected." When such new issues are already included as completed transactions prior to the expiry of the "free look" period, a reversal of the transactions or an adjustment to reflect the actual amount of new business for which the insurer is on the risk is appropriate, as opposed to entering such rescinded policy amounts on other lines on this page.

- Lines 060 – 460 – Old revived

Report policies that were reinstated from lapse status during the accounting period.

- Lines 160 – 560 – Surrender

Only report policies under which there are surrender values. For example, a policy is considered surrendered when the premium payment is made with the dividends and the dividends are no longer sufficient to support the premium payment. Report policies terminated by payment of the proceeds in advance of the maturity date, at a discount, or by reason of non-repayment of policy loans, as ceased by surrender.

- Line 180 – 580 – Lapse

Only report policies under which no surrender values or non-forfeiture options were available at the date of termination on this line.

- Line 250 – Currency Revaluation

Report the change in the account due to the change in the year end currency exchange rate.

Pages 98.060-.070-.080

Foreign Insurers/Societies licensed in Quebec – Risks Located in Quebec (Based on Location of Risk)

This page applies to foreign life insurers and fraternal benefit societies only.

Purpose:

Report all risks located in Québecthat have been insured within or outside Canada, by line of business

General Commentary:

Pages 98.060, 98.070 and 98.080 have been produced by the Autorité des marchés financiers ("AMF") further to the amendments to Part XIII of the Insurance Companies Act, S.C. 1991, c. 47 ("ICA"), which came into force on January 1, 2010.

As a result of the amendments to the Canadian regulatory framework, foreign insurers must now report only risks insured in Canada in their LIFE Annual Return. Under the amendments to Part XIII of the ICA, regulatory reporting of a foreign insurer's business is now based on the location of the insurance (business activities) rather than the location of risk.

The AMF's supervision of your activities in Québec is based on the definition of "insurer" under section 1(a) of An Act respecting insurance, CQLR, c. A-32Footnote 1 (the "Act"). This definition has not been modified. Therefore, the amendments to the ICA do not affect the obligation of foreign entities to comply with provincial requirements.

Section 269 of the Act stipulates that every insurer must maintain adequate assets to guarantee the performance of its obligations in Québec. These pages are intended to ensure compliance with that requirement. They must therefore be completed by all foreign life insurers and foreign fraternal benefit societies licensed in Québec based on location of risk, and should thus include financial data on all risks located in Québec, whether insured within or outside Canada. All risks located outside Quebec that have been insured outside Canada should be excluded. Data on risks located in Québec that have been insured in Canada, as well as data on risks located outside Canada, should also be excluded.

The definitions provided in the instructions of the General section of the LIFE Annual Return apply to this form. It must be completed in accordance with Generally Accepted Accounting Principles (GAAP).

Pages 98.060-.070

Foreign Insurers/Societies licensed in Quebec – Risks Located in Quebec (Based on Location of Risk)

Column 05 – Quebec

Include risks located in Quebec that have been insured in Canada.

Column 28 – Out of Canada

Include risks located in Quebec that have been insured outside Canada.

Page 98.080

Insurers/Societies licensed in Quebec – Risks Located in Quebec - Insured Outside Canada

- Columns 11, 16, 21 and 26 – Actuarial Liabilities by Line of Business

Refer to page 22.010 for additional instructions.

- Columns 31, 36, 41 and 56 – Amount of Life Insurance and Annuities Effected and In Force

Refer to page 75.040 for additional instructions.

- Column 66 – Net Premiums

The amounts in this column must match those on page 98.060, column 28.

Footnotes

Footnote 1

The Act is available on the AMF website at the following address: http://www.lautorite.qc.ca/en/laws-insurance-deposit-institution-pro.html

Return to footnote 1