Life Insurance Return – Section IV – Detailed Instructions

Detailed instructions are provided to assist insurers/societies in clarifying filing requirements; they are not provided for every page or field in the LIFE Quarterly and Annual return filings (Life Core Financial Statement Return (LF1), Life Supervisory Quarterly Return (LF2), Life Supervisory Annual Supplement Return (LF3) and Life Provincial Return (LFPROV)).

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 Quarterly and Annual Returns 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 Quarterly and Annual Returns.

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 Core Financial Statement 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.

Prior periods in LF1, LF2, LF3 and LFPROV

Quarterly reports shall include interim financial statements for periods as follows:

1. Statement of Financial Position as of the end of the current interim period and a comparative statement of financial position as of the end of the immediately preceding financial year (static).
2. Liability Roll Forward Statements as of the end of the current interim period and a comparative statement for the full year period of the immediately preceding financial year (static).
3. Statement of changes in equity cumulatively for the current financial year to date, with a comparative statement for the full year period of the immediately preceding financial year (static).
4. Statement of cash flows cumulative for the current financial year to date, with a comparative statement for the comparable year-to-date period of the immediately preceding financial year (static) is required for the Q4 period only.
5. Statement of profit or loss and other comprehensive income cumulatively for the current financial year to date, with comparative statement of profit or loss and other comprehensive incme for the comparable year-to-date of the immediately preceding financial year (not static).

Page 10.000 – Canadian affidavit verifying annual return

Refer to Section V - Jurisdictional Requirements.

This page applies to Canadian insurers/societies only.

Pages 10.002 – 10.004 – Foreign affidavits verifying annual return

Refer to Section V - Jurisdictional Requirements.

These pages apply 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 and is only required to be filed annually.

Page 10.010 – Annual corporate information – for provincially incorporated insurers/societies

This page applies to all provincially incorporated insurers and societies and is only required to be filed annually.

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.

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 10.012 – Annual corporate information – for provincially incorporated or licensed insurers/societies

Insurers/societies provincially incorporated or licensed in the province of Quebec 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. This page is only required to be filed annually.

Page 10.013 – Corporate information – for insurers/societies provincially incorporated

This page is required for all provincially incorporated insurers/societies and is required to be filed quarterly.

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.

Any individual directors and officers who are the company’s shareholders are required to be disclosed in the pages regardless of position size.

Line 001 - 020 – Column 02 – Address

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

Line 021 – Shares held by employees not included above

Report on line 021 the non director/officer employees who are shareholders, institutional investors. Judgement could be applied to aggregate employees if necessary, into Director & Officers, and Non-Directors & Officers.

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.

Page 15.020 – Liabilities, policyholders' and shareholders' equity – Worldwide business

This page applies to Foreign Life insurers 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 20.002 - 20.004

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

Pages 20.002 - 20.054

IFRS requires many items be presented separately within the financial statements or shown within the notes to the financial statements. If the LIFE Core Financial Statement 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 20.002 – 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 70.002.

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 060 – 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 070 – Investments

See instructions for page 21.012.

Line 080 – Equity accounted investees

See instructions for page 21.015.

Line 110 – Investment properties

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

Line 120 – Property and equipment

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

Line 190 – Other assets

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

Page 20.004 – Liabilities and equity

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

Line 030 – Provisions, accruals and other liabilities

Include lease liabilities and payables not related to insurance contracts.

Line 040 – 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 080 – 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 110 – Defined benefit pension plan

Report defined benefit pension plan net deficits on this line.

Line 130 – Subordinated debt

Refer to the LICAT/CARLI Guideline.

Line 140 – Preferred shares – Debt

This line applies to Canadian insurers only.

Line 150 – Insurance contract liabilities - excluding segregated funds

This line applies to all Insurance contracts liabilities excluding segregated fund contracts.

Line 155 – Insurance Contract Liabilities - Segregated Fund Guarantees

This line applies to insurance contract liability for the segregated fund guarantees only.

Line 170 – Reinsurance contract held liabilities - excluding segregated funds

This line applies to all reinsurance contracts held liabilities excluding segregated fund contracts.

Line 190 – Investment contract liabilities - excluding segregated funds net liabilities

Line applies to Investment Contract Liabilities excluding those for account of segregated fund holders.

Policyholders' liabilities

Line 310 – Residual interest (non-stock)

This line mainly applies to mutual entities and fraternals.

Record insurance contracts under which the most residual interest of the entity is due to a policyholder and not a shareholder.

Lines 410-699 – Equity

These lines apply to Canadian insurers only.

Line 410 – Residual interest (non-stock)

Line mainly applies to mutual entities and fraternals.

Line to record insurance contracts under which the most residual interest of the entity is not due to a policyholder.

Line 550 – Retained earnings

For use by stock companies only.

Line 560 – Nuclear and other reserves

This line applies to P&C companies only.

Line 810 – Head office account

This line applies to foreign insurers only.

Report end of year balance as reconciled on page 20.044.

Lines 810 to 899 – Head office account, reserves & AOCI

These lines apply to foreign insurers only.

Page 20.012 & 20.013 – Liability roll forward (analysis by measurement component (insurance contracts not measured under the PAA))

This schedule is to be completed in accordance with IFRS 17 disclosure requirements for the Insurance Contracts Liability roll forward.

The schedule applies to Insurance Contracts not measured under the Premium Allocation Approach (PAA).

Columns 18 and 48 – Other

These columns will be used to record insurance contracts that will be transitioned to IFRS on a full retrospective basis and all other insurance contracts on a go-forward basis

Page 20.014 & 20.015 – Liability roll forward (analysis by remaining coverage and incurred claims (all insurance contracts))

This schedule is to be completed in accordance with IFRS 17 disclosure requirements for the Insurance Contract Liability roll forward.

The schedule applies to all Insurance Contracts.

Row 130 – Other

This row will be used to record insurance contracts that will be transitioned to IFRS on a full retrospective basis and all other insurance contracts on a go-forward basis.

Page 20.016 & 20.017 – Liability roll forward (reinsurance contracts held analysis by measurement component (contracts not measured under the PAA))

This schedule is to be completed in accordance with IFRS 17 disclosure requirements for the Reinsurance Contract Held Liability roll forward.

The schedule applies to Reinsurance contracts held not measured under the Premium Allocation Approach (PAA).

Line 530 – Reinsurance acquisition cash flows

This line could be used to report the premiums allowances (ceding commissions).

Page 20.018 & 20.019 – Liability roll forward (reinsurance contracts held analysis by remaining coverage and incurred claims (all contracts))

This schedule is to be completed in accordance with IFRS 17 disclosure requirements for the Reinsurance Contract Held Liability roll forward.

The schedule applies to all reinsurance contracts.

Line 330 – Reinsurance acquisition cash flows

This line could be used to report the premiums allowances (ceding commissions).

Page 20.022 – Statement of profit or loss

Line 010 – Revenue from PAA contracts

Revenue from insurance contracts measured using the Premium Allocation Approach (PAA).

Line 020 – Revenue from GMM contracts (excluding VFA contracts)

Revenue from insurance contracts measured using the General Measurement Method (GMM) excluding insurance contracts that meet the eligibility criteria for Variable Fee Approach (VFA).

Line 030 – Revenue from VFA contracts

Revenue from insurance contracts that meet the eligibility criteria for Variable Fee Approach (VFA).

Line 099 – Total insurance revenue

Sum of lines 010, 020, and 030.

Line 110 – Insurance service expenses

An entity shall present in profit or loss insurance service expenses arising from a group of insurance contracts issued.

Line 120 – Net expense from reinsurance contracts held

This line represents amounts recovered from the reinsurer and an allocation of the premiums paid.

Line 199 – Insurance service result

Line 199 is equal to the sum of line 099 and line 120, less line 110.

Line 220 – Interest revenue on financial assets

This line is to record interest earned on cash and short-term investment, bonds, mortgage loans, derivative activities and any other interest-bearing investments.

Line 230 – Net investment income excluding segregated funds

This line is to record investment income (includes realised gains, fair value gains, dividends, rental income, etc.) less related expenses excluding net investment income from segregated funds. Net investment income from segregated funds guarantees (related to the general account) should also be reported on this line.

Line 240 – Net investment income – segregated funds

This line is to record investment income (includes realised gains, fair value gains, dividends, rental income, etc.) less related expenses from segregated funds, excluding any investment income from the general fund.

Line 250 – Provision for credit losses

Line to record impairment losses in accordance with IFRS.

Line 310 – Net finance income (expenses) from insurance contracts

Line to record change in carrying amount of group of insurance contracts arising from the effect of the time value of money, changes in time value of money, effect of financial risk and changes in financial risk.

Line 315 – Net finance income (expenses) from segregated funds

Report the total finance income (expenses) from segregated funds only.

Line 320 – Net finance income (expenses) from reinsurance contracts held

Line to record change in carrying amount of group of reinsurance contracts held arising from the effect of the time value of money, changes in time value of money, effect of financial risk and changes in financial risk.

Line 330 – Movement in investment contract liabilities

Line to record the movement in investment contract liabilities which consists of claims incurred in the year less the corresponding elimination of the policyholder liability originally recognized in the balance sheet and the investment return credited to policyholders.

Line 399 – Net investment result

Sum of lines 300, 310, 315, 320 and 330.

Line 410 – Other income

See instructions for page 23.035.

Line 420 – General and operating expenses

See instructions for page 23.015.

Line 520 – Discontinued operations (net of income taxes of $____)

There are three datapoints to be completed on this line: Current period (column 01), prior period (column 03), and an inside datapoint (column 04). The inside data point is labelled "net of Income Taxes on Discontinued Operations", and is located at the bottom of the form.

Lines 610 - 650

These lines apply to Canadian insurers/societies only.

Line 630 – Residual interest policyholders

For a Mutual Entity or a Fraternal organization, this line reflects the allocation of net income (line 999) arising from residual interest that is attributable to policyholders.

Page 20.032 – Statement of profit or loss (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. This page is required to be filed quarterly.

Report year to date budget to the end of the quarter in the same format as described on page 20.022.

Page 20.038 – Statement of profit of loss (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. This page is only required to be filed annually.

Report annual budget numbers for next fiscal year in the same format as described on page 20.022.

Page 20.040 – Statement of policyholders' 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 610 on page 20.022 for stock companies only.

Line 130 – Transfers from (to) retained earnings (stock companies)

Contact your primary regulator prior to transferring any amounts.

Line 160 – Transfer from (to) non-par account (non-stock)

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.

Page 20.040 – Statement of policyholder's equity in non-participating account (Non-stock)

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.

Line 430 – Transfer from (to) par account

Contact your primary regulator prior to any transfers.

Page 20.040 – Statement of residual interest – Policyholders' equity

Lines 550-560 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 560 in the year of transition

Page 20.040 - Statement of residual interest – Liabilities

Lines 750-760 – Adjustments

The portions of:

3. prior period adjustments; and
4. 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 760 in the year of transition

Page 20.042 – Comprehensive income (loss), and accumulated other comprehensive income (loss)

Lines 615, 625, 635, 600 and 620

These lines apply to Canadian insurers/societies only.

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) for the year: Other fund account

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 20.054 – 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 20.004 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 21.012 – Summary of investments

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.

Lines 810 and 820 – 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 (FVOCI)

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 – Analysis of current year provisions

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 to only be reported on the 4th quarter filing and should represent the YTD (prior year and current year) provision amounts in the P&L.

Columns 57, 58 and 59 – Provisions current period end (including (ECL) – Stage I, II and III

Report the expected credit losses amount for each stages 1, 2 and 3 as described in IFRS 9, Financial Instruments.

Column 60 – Total provisions current period end

Amounts reported in this column should equal provisions for credit losses on line 250, page 20.022.

Column 71 – Current period additional write-downs

Report amounts for any special defaults/one time writeoffs not included or recorded in the ECL tracking process.

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 contracts held

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.

Line 110 – 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.

Line 160 – Multiple residential (MR)

Include all other residential properties under "multiple."

Line 210 – Office (O)

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

Line 260 – Retail stores (RS)

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

Line 310 – Industrial (I)

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

Line 360 – Hotels (H)

Include hotels, motels, lodges and resorts.

Line 410 – 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 – Mortgage loans – Geographic distribution

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. This page is only required to be filed annually.

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

• 01 Bas-Saint-Laurent
• 02 Saguenay-Lac-Saint-Jean
• 03 National Capital
• 04 Mauricie
• 05 Estrie
• 06 Montreal
• 07 Outaouais
• 08 Abitibi-Temiscamingue
• 09 Cote-Nord
• 10 Northern Quebec
• 11 Gaspesie-Iles-de-la-Madeleine
• 12 Chaudiere-Appalaches
• 13 Laval
• 14 Lanaudiere
• 15 Laurentides
• 16 Monteregie
• 17 Central Quebec

These regions have been combined as follows:

• Line 010: regions 01-09-11: Eastern Quebec
• Line 020: regions 02-08-10: Northern Quebec
• Line 030: regions 03-12: Quebec – Beauce
• Line 040: regions 04-05-16-17: Southern Quebec – Mauricie – Central Quebec
• Line 050: regions 07-14-15: Outaouais - Laurentides – Lanaudiere
• Line 060: 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 page is only required to be filed annually.

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. This page is only required to be filed annually.

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

Other loans not reported elsewhere should be reported here. Report the top 10 on lines 301 to 310 regardless of materiality. The total of all remaining investments not listed in lines 301 to 310 should be reported on line 319, column 15.

Part C – Other invested assets

Other invested assets including fixed term investments not reported elsewhere should be reported here. Report the top 10 on lines 401 to 410 regardless of materiality. The total of all remaining investments not listed in lines 401 to 410 should be reported on line 419, column 17.

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 – Receivables – Affiliates, subsidiaries, associates and joint ventures

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.

Related party insurance receivables should be listed on lines 310-370, and line 550 is for non-insurance related receivables from the related parties (for instance IFRS15, IFRS16 related service costs, call centers, and IT management, etc.).

Page 22.010 – Assets/ liabilities arising from insurance contract issued and reinsurance contract held by line of business – Canada and U.S.A

This schedule reflects the values of assets/liabilities related to policies/certificates issued and reinsurance contracts held. It is for insurance contracts only.

For all three sections – Life and Annuity, both individual and group, amounts entered in reinsurance contracts held 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.

Assets/ Liabilities arising from insurance contract issued in a territory should be related to policies/certificates issued to residents of that territory.

Reinsurance contracts held 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 and 630 – Property & casualty

These lines apply to Canadian insurers/societies only.

Lines 819 and 869 – Total

These lines apply to Canadian insurers/societies only.

Page 22.020 – Assets/ liabilities arising from insurance contract/reinsurance contracts held – Summary

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

Line 369 – Columns 01 + 11 – Grand total – Reinsurance contracts held

Amounts should be consistent with reported reinsurance held for insurance contracts on page 45.060. The amounts exclude the PAR reinsurance contracts.

Page 22.030 – Provisions, accruals 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. This page is only required to be filed annually.

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.

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 – Investment return

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 150 – Bonds

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 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.

Page 23.015 – Insurance service and other operating expenses

This exhibit should be completed on an incurred basis for all expenses, reporting by type of expense from line 010 to 340 with the total amount presented by insurance service expenses and general and operating expenses on lines 420 and 440 respectively.

Page 23.025 – Commissions

Any commissions that form part of the cash flows within the boundary of an insurance contract that are directly related to the fulfillment of the insurance contract are to be included. FRIs should report total Commissions incurred by classes of insurance on line 799, as part of insurance acquisition cash flows as well as all other commissions.

Page 23.035 – Other income

Line 010 – Fee income from segregated funds

This line includes both fee income from investment contract segregated funds and other than investment contract segregated funds.

Page 23.045 – Net expenses from reinsurance contracts held

Please report net reinsurance expenses – contracts measured under the PAA in line 110 – Other incurred directly attributable expenses for the time being. OSFI will adjust this schedule in the next release so that the line “net reinsurance expenses – contract measured under the PAA” will be at the same level as line 105 to line 150.

Pages 35.015 - 35.025 – Analysis of income by line of business – Canada & Out of Canada

See instructions for the income statement, page 20.022 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.

Page 35.015 – Analysis of income by line of business – Canada

Column 25 – Non-par surplus

This column applies to Canadian insurers/societies only.

Column 45 – Property & casualty

This column applies to Canadian insurers/societies only.

Column 50 – Deposit taking

This column applies to Canadian insurers/societies only.

Column 55 – Head office account

This column applies to foreign insurers/societies only.

Page 35.025 – Analysis of income by line of business – Out of Canada

This page applies to Canadian insurers/societies only.

Page 35.035 - 35.065 – Risk free rates and liquidity premiums or discount rates by line of business – Canada & U.S.A. – for insurer using bottom-up or top-down approach

IFRS 17 discuss two methods to determine rates for discounting cash flows that do not vary based on the returns of underlying items, the bottom-up approach (paragraph B80) and the top-down approach (paragraphs B81 to B85).

The bottom-up approach is described in paragraph B80 as a liquid risk-free yield curve with an adjustment to reflect the liquidity characteristics of insurance contracts.

The risk free rates, liquidity premiums or discount rates (“rates”) disclosed in the page are rates used to discount the estimates of future cash flows and cash flows.

An entity’s discount rate curves can be expressed as forward rates or spot rates. OSFI expects an entity to report the discount rate curves in the ‘Spot Rates’ format in the tables and indicate ‘Spot Rates’ in Line 250 col (01) of the schedules. If forward rate curves are used, please convert them to Spot Rate curves for reporting purposes in these schedules.

They should be rates of the most illiquid bucket for each line of business.

For example, if there are two liquidity buckets in a line of business, the rates of the most illiquid of the two buckets should be provided.

If there is more than one single illiquid curve in the most illiquid bucket, the insurer can use a blended curve. The rates should be expressed as a percentage, limited to two decimal point.

Cells are to be left blank (i.e. do not enter zero or any value) in the following instances: for line of business that are not written by the insurer; or if the duration of the liabilities is less than the projection years shown in the exhibit.

Page 35.075 – Assets and liabilities – in Canada and Summary of assets and liabilities - by territory

This page applies to Canadian insurers/societies only.

Refer also to the instructions for pages 20.002 and 20.004.

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.

Page 45.060 – Reinsurance contracts held

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".

Page 60.010 – 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 70.002 ‑ 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 70.002 – Assets

See instructions for page 20.002 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 70.004 – Liabilities, policyholders and shareholders' equity

See the General Comments for Pages 70.002 ‑ 70.042 ‑ Non-Consolidated Financial Statements.

This section applies to Canadian insurers only.

See instructions for page 20.004 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 70.012 & 70.013 – Liability roll forward (analysis by measurement component (insurance contracts not measured under the PAA))

See the General Comments for Pages 70.002 ‑ 70.042 ‑ Non-Consolidated Financial Statements.

See instructions for page 20.012 & 20.013 for additional information.

Page 70.014 & 70.015 – Liability roll forward (analysis by remaining coverage and incurred claims (all insurance contracts))

See the General Comments for Pages 70.002 ‑ 70.042 ‑ Non-Consolidated Financial Statements.

See instructions for page 20.014 & 20.015 for additional information.

Page 70.016 & 70.017 – Liability roll forward (reinsurance contracts held analysis by measurement component (contracts not measured under the PAA))

See the General Comments for Pages 70.002 ‑ 70.042 ‑ Non-Consolidated Financial Statements.

See instructions for page 20.016 & 20.017 for additional information.

Page 70.018 & 70.019 – Liability roll forward (reinsurance contracts held analysis by remaining coverage and incurred claims (all contracts))

See the General Comments for Pages 70.002 ‑ 70.042 ‑ Non-Consolidated Financial Statements.

See instructions for page 20.018 & 20.019 for additional information.

Page 70.022 – Statement of profit or loss

See the General Comments for Pages 70.002 ‑ 70.042 ‑ Non-Consolidated Financial Statements.

See instructions for page 20.022 for additional information.

Page 70.036 – Statement of profit or loss by fund

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

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.

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 Life Supervisory Annual Supplement Return (LF3 return).

Page 75.010 – 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.

Page 75.020 – 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 – Insurance contract/reinsurance contract held liabilities by line of business in Canada

This page applies to Canadian insurers/societies only. Figures should reflect the values of assets/liabilities related to policies/certificates and reinsurance contracts held.

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 – Insurance contracts

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 030 – New effected – Reinsurance contracts held

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

Page 75.075-75.085 – Reinsurance contract held summary – Registered & unregistered reinsurance

Registered and Unregistered Reinsurers/societies: Refer to Section III Definitions.

Column 01 – Name of reinsurer

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 02, 04, 06 and 08 – Rating agency identifier code

The unique rating agency identifier used by AM Best, S&P or other rating agencies.

Enter for all rating agencies that rate the reinsurer.

If unrated enter "1" in column 08.

Column 10 – Reinsurer domiciliary jurisdiction

The domicile where the reinsurer counterparty is legally incorporated.

Use the 2-letter International Standard country codes defined in ISO 3166 (International Organization for Standardization).

Column 15 – Reinsurer group domiciliary jurisdiction

The domicile where the ultimate incorporated insurance group owning the reinsurer counterparty is legally incorporated. If the counterparty does not belong to a group, leave this column blank.

Use the 2-letter International Standard country codes defined in ISO 3166 (International Organization for Standardization).

Column 20 – Country of risk

Identify the country or countries that the liabilities are associated with.

Use the 2-letter International Standard country codes defined in ISO 3166 (International Organization for Standardization).

Column 49 – Total net expense from reinsurance contracts held

Total net expenses from reinsurance contracts held reported should correspond to the amount reported on page 20.022 line 120 column 01.

Column 59 – Total reinsurance contract held balances

Total Assets for remaining coverage and for incurred claims reported (for both registered and unregistered combined) should correspond to the amount reported in the Liability Roll Forward (page 20.018) line 599 column 19.

Column 60 – Reinsurance receivable

Include all receivables, net of allowance for doubtful accounts.

Column 65 – Reinsurance payable

Include funds, other than those for collateral purposes held in the insurer's bank account.

Page 75.075 – Reinsurance contract held summary – Registered reinsurance

Identify amounts only at the reinsurer counterparty level, not at a contract level; therefore for each reinsurer, total the amounts of all contracts held with that reinsurer and group them into one total for each row.

Identify only the top 10 largest registered reinsurers by liabilities, and group all other remaining registered reinsurers into the "Other" row.

Page 75.085 – Reinsurance contract held summary – Unregistered reinsurance

Identify amounts at a contract level.

Identify all contracts held with unregistered reinsurers; insert rows if necessary.

Column 25 – Business covered

Underlying class of insurance risk reinsured. E.g. Whole Life, Segregated Funds, Annuities, etc.

Column 30 – Type of contract

Type of reinsurance contract using the following two-letter codes:

• YR – YRT
• CO – Coinsurance
• MC – Modified Coinsurance
• CT - Catastrophe
• SL – Stop loss
• OT – Other

Column 35 – Effective date or date of latest revision of contract

Report the date the contract originally became effective unless there have been substantial amendments to the contract. In the latter case, report the date of the latest revision to the contract.

Columns 70 to 89 – Reinsurance collateral

Only non-owned deposits that are held in a RSA are to be included in column 70. Other acceptable non-owned deposits held outside an RSA are to be reported in column 75.

Non-owned deposits held on behalf of an unregistered reinsurer must be valued at market value as at the end of the reporting period, including the amount of investment income due and accrued respecting these deposits.

For federally regulated insurers

Non-owned deposits can be reported in column 70 only where a valid and enforceable security interest has been obtained through the establishment of a reinsurance security agreement (RSA) in respect of the unregistered reinsurance.

Refer to OSFI's Guidance for Reinsurance Security Agreement and the LICAT guidelines for more details.

For provincially incorporated insurers where the reinsurance security agreement (RSA) regime does not apply

Complete only in cases where a special trust account under the control of the primary regulator has been established with a Canadian trust company in respect of the unregistered reinsurance under a trust agreement prescribed by the regulator.

Column 80 – Reinsurance collateral – Funds held

Reinsurance premiums withheld by the ceding company as specified in the reinsurance contract (for example, funds held equal to the unearned premiums and loss reserves), or advances from the reinsurer to the ceding company for the payment of losses.

Column 85 – Reinsurance collateral – Letters of credit

For additional information on LOCs, refer to "Section V - Jurisdictional Requirements."

Life insurers should refer to General Guidelines for Use of Letters of Credit available on OSFI's website.

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. This page is only required to be filed annually.

Page 95.010 – Provincial exhibit – Premiums

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).

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

This page continue to be required by the provinces in order to calculate premium taxes. Amounts reported on this page should be based on the legacy Canadian IFRS 4 accounting standards.

Columns 01 to 13 – Licensed Y/N

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

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 98.060 – 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. This page is required to be filed quarterly.

Purpose

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

General commentary

Page 98.060 has 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 Insurers Act, CQLR, c. A-32.1 (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 74 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).

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.