income declined across the industry. Recently, volatility in equity markets has reduced the demand for domestic products that are purchased primarily for estate planning. APE sales of products with the John Hancock Vitality PLUS feature in 2022 were a record-setting US$332 million, an increase of 13% compared with 2021, reflecting the increasing attractiveness of the Vitality feature as an option for health-focused life insurance consumers. Sales For the years ended December 31, Canadian$ US$ ($ millions) 2022 2021 2022 2021 APE sales $ 823 $ 788 $ 633 $ 628 AssetsunderManagement U.S. assets under management of US$162.0 billion as at December 31, 2022 decreased 16% from December 31, 2021. The decrease in total invested assets and segregated funds net assets was primarily due to the impact of an increase in interest rates and a decline in equity markets, and the continued run-off of the annuity business, including the impact on total invested assets from the above-noted variable annuity reinsurance transactions. Assets under Management As at December 31, Canadian$ US$ ($ millions) 2022 2021 2022 2021 Total invested assets $ 154,004 $ 164,830 $ 113,660 $ 130,013 Segregated funds net assets 65,489 79,620 48,333 62,801 Totalassetsundermanagement $ 219,493 $ 244,450 $ 161,993 $ 192,814 Revenue Total revenue in 2022 was a net loss of US$5.6 billion and decreased US$16.3 billion compared with 2021. Revenue before net realized and unrealized investment gains and losses was US$10.5 billion, a decrease of US$2.2 billion compared with 2021, primarily due to the above-noted variable annuity reinsurance transactions. Revenue For the years ended December 31, Canadian$ US$ ($ millions) 2022 2021 2022 2021 Gross premium income $ 9,329 $ 8,965 $ 7,168 $ 7,151 Premiums ceded to reinsurers (3,613) (2,594) (2,791) (2,069) Net premium income 5,716 6,371 4,377 5,082 Investment income 7,544 7,771 5,792 6,197 Other revenue 458 1,824 342 1,456 Revenue before net realized and unrealized investment gains and losses 13,718 15,966 10,511 12,735 (1) Net realized and unrealized investment gains and losses (20,547) (2,710) (16,074) (2,010) Totalrevenue $ (6,829) $ 13,256 $ (5,563) $ 10,725 (1) See “Impact of Fair Value Accounting” above. Strategic Highlights At John Hancock, we are focused on building holistic and long-lasting customer relationships by offering innovative products and solutions, and making it easier for customers to do business with us. We are focused on growing our insurance business by expanding our product offerings, modernizing the delivery process, and enhancing customer experience. In addition, we continued to make significant progress to optimize our portfolio through both organic initiatives and strategic reinsurance transactions, and create tangible shareholder value through various in-force management actions. In 2022, we: • Completed two transactions to reinsure over 80%1 of our legacy U.S. variable annuity block. These transactions resulted in the release 2 of $2.5 billion of capital, which included a cumulative one-time after-tax net gain of $806 million ; • Achieved highest ever full year domestic life insurance sales with the John Hancock Vitality PLUS feature, reflecting the increasing attractiveness of the Vitality feature as an option for health-focused life insurance consumers; • Continued to innovate our wellness offerings and entered into a partnership with GRAIL, a healthcare company, offering access to ® Galleri , their leading edge, multi-cancer early detection test to a pilot group of customers through John Hancock Vitality. As the first 1 Represents a reduction in guarantee value on our total U.S. variable annuity block compared with December 31, 2021. Guarantee value on our U.S. variable annuity Guaranteed Minimum Withdrawal Benefits block reduced by more than 90% compared with December 31, 2021. 2 The cumulative one-time after-tax gain of these two reinsurance transactions was $806 million, consisting of a net gain of $846 million in 2022 and a $40 million loss recognized in 2021. 30 | 2022AnnualReport | Management’sDiscussionandAnalysis