(d) Quarterlydividenddeclarationsubsequenttoyearend On February 15, 2023, the Company’s Board of Directors approved a quarterly dividend of $0.365 per share on the common shares of MFC, payable on or after March 20, 2023 to shareholders of record at the close of business on February 28, 2023. The Board also declared dividends on the following non-cumulative preferred shares, payable on or after March 19, 2023 to shareholders of record at the close of business on February 28, 2023. Class A Shares Series 2 – $0.29063 per share Class 1 Shares Series 13 – $0.275875 per share Class A Shares Series 3 – $0.28125 per share Class 1 Shares Series 15 – $0.236625 per share Class 1 Shares Series 3 – $0.14675 per share Class 1 Shares Series 17 – $0.2375 per share Class 1 Shares Series 4 – $0.34089 per share Class 1 Shares Series 19 – $0.229688 per share Class 1 Shares Series 9 – $0.373625 per share Class 1 Shares Series 25 – $0.29375 per share Class 1 Shares Series 11 – $0.295688 per share Note 13 Capital Management (a) Capitalmanagement The Company monitors and manages its consolidated capital in compliance with the Life Insurance Capital Adequacy Test (“LICAT”) guideline, the capital framework issued by the Office of the Superintendent of Financial Institutions (“OSFI”). Under the capital framework, the Company’s consolidated capital resources, including available capital, surplus allowance, and eligible deposits, are measured against the base solvency buffer, which is the risk-based capital requirement determined in accordance with the guideline. The Company’s operating activities are primarily conducted within MLI and its subsidiaries. MLI is also regulated by OSFI and is therefore subject to consolidated risk-based capital requirements using the OSFI LICAT framework. The Company seeks to manage its capital with the objectives of: • Operating with sufficient capital to be able to honour all commitments to its policyholders and creditors with a high degree of confidence; • Retaining the ongoing confidence of regulators, policyholders, rating agencies, investors and other creditors in order to ensure access to capital markets; and • Optimizing return on capital to meet shareholders’ expectations subject to constraints and considerations of adequate levels of capital established to meet the first two objectives. Capital is managed and monitored in accordance with the Capital Management Policy. The policy is reviewed and approved by the Board of Directors annually and is integrated with the Company’s risk and financial management frameworks. It establishes guidelines regarding the quantity and quality of capital, internal capital mobility, and proactive management of ongoing and future capital requirements. The capital management framework considers the requirements of the Company as a whole as well as the needs of each of the Company’s subsidiaries. Internal capital targets are set above the regulatory requirements, and consider a number of factors, including expectations of regulators and rating agencies, results of sensitivity and stress testing and the Company’s own risk assessments. The Company monitors against these internal targets and initiates actions appropriate to achieving its business objectives. Consolidated capital, based on accounting standards, is presented in the table below for MFC. For regulatory reporting purposes, under the LICAT framework, the numbers are further adjusted for various additions or deductions to capital as mandated by the guidelines used by OSFI. Consolidatedcapital As at December 31, 2022 2021 Total equity $ 56,379 $ 58,869 Exclude AOCI gain/(loss) on cash flow hedges 8 (156) Total equity excluding AOCI on cash flow hedges 56,371 59,025 Qualifying capital instruments 6,122 6,980 Consolidated capital $ 62,493 $ 66,005 (b) Restrictionsondividendsandcapitaldistributions Dividends and capital distributions are restricted under the Insurance Companies Act (“ICA”). These restrictions apply to both MFC and its primary operating subsidiary MLI. The ICA prohibits the declaration or payment of any dividend on shares of an insurance company if there are reasonable grounds for believing a company does not have adequate capital and adequate and appropriate forms of liquidity or the declaration or the payment of the dividend would cause the company to be in contravention of any regulation made under the ICA respecting the maintenance of adequate capital and adequate and appropriate forms of liquidity, or of any direction made to the company 197