(b) Investmentcontractliabilitiesmeasuredatamortizedcost Investment contract liabilities measured at amortized cost include several fixed annuity products sold in the U.S. and Canada that provide guaranteed income payments for a contractually determined period and are not contingent on survivorship. The following table presents carrying and fair values of investment contract liabilities measured at amortized cost. 2022 2021 Amortized Amortized cost, gross of cost, gross of reinsurance reinsurance As at December 31, (1) Fair value (1) Fair value ceded ceded U.S. fixed annuity products $ 1,575 $ 1,547 $ 1,380 $ 1,602 Canadian fixed annuity products 877 956 935 1,016 Investment contract liabilities $ 2,452 $ 2,503 $ 2,315 $ 2,618 (1) As at December 31, 2022, investment contract liabilities with the carrying value and fair value of $38 and $38, respectively (2021 – $48 and $52, respectively), were reinsured by the Company. The net carrying value and fair value of investment contract liabilities were $2,414 and $2,465 (2021 – $2,267 and $2,566), respectively. The changes in investment contract liabilities measured at amortized cost was a result of the following business activities. For the years ended December 31, 2022 2021 Balance, January 1 $ 2,315 $ 2,356 Policy deposits 200 92 Interest 67 71 Withdrawals (236) (191) Fees (1) (1) Other – (5) Impact of changes in foreign exchange rates 107 (7) Balance, December 31 $ 2,452 $ 2,315 Carrying value of fixed annuity products is amortized at a rate that exactly discounts the projected actual cash flows to the net carrying amount of the liability at the date of issue. Fair value of fixed annuity products is determined by projecting cash flows according to the contract terms and discounting the cash flows at current market rates adjusted for the Company’s own credit standing. As at December 31, 2022 and 2021, fair value of all investment contract liabilities was determined using Level 2 valuation techniques. (c) Investmentcontractscontractualobligations As at December 31, 2022, the Company’s contractual obligations and commitments relating to the investment contracts are as follows. Lessthan 1to3 3to5 Over5 Payments due by period 1 year years years years Total (1) Investment contract liabilities $ 300 $ 511 $ 514 $ 3,365 $ 4,690 (1) Due to the nature of the products, the timing of net cash flows may be before contract maturity. Cash flows are undiscounted. 186 | 2022AnnualReport | NotestoConsolidatedFinancialStatements