(1) Debt Securities and Private Placement Debt – by Credit Quality 2022 2021 Private Private As at December 31, Debt placement %of Debt placement %of ($ billions) securities debt Total Total securities debt Total Total AAA $ 33.7 $ 0.9 $ 34.6 14 $ 40.1 $ 1.0 $ 41.1 15 AA 36.3 7.0 43.3 17 39.6 5.7 45.3 17 A 83.5 16.5 100.0 40 90.0 16.2 106.2 40 BBB 46.1 17.2 63.3 25 49.4 16.2 65.6 25 BB 4.0 1.1 5.1 2 3.7 1.1 4.8 2 B & lower, and unrated 0.3 4.4 4.7 2 1.4 2.6 4.0 1 Total carrying value $ 203.9 $ 47.1 $ 251.0 100 $ 224.2 $ 42.8 $ 267.0 100 (1) Reflects credit quality ratings as assigned by Nationally Recognized Statistical Rating Organizations (“NRSRO”) using the following priority sequence order: S&P Global Ratings (“S&P”), Moody’s Investors Services (“Moody’s”), DBRS Limited and its affiliated entities (“DBRS Morningstar”), Fitch Ratings Inc. (“Fitch”), Rating and Investment information, and Japan Credit Rating. For those assets where ratings by NRSRO are not available, disclosures are based upon internal ratings as described in the “Risk Management and Risk Factors” section below. Debt Securities and Private Placement Debt – by Sector 2022 2021 As at December 31, Private Private (Per cent of Debt placement Debt placement carrying value, unless otherwise stated) securities debt Total securities debt Total Government and agency 36 10 31 35 11 32 Utilities 14 37 18 14 38 18 Financial 16 11 15 15 10 15 Industrial 9149 9 12 9 Consumer (non-cyclical) 8149 8 14 9 Energy – Oil & Gas 7 4 7 8 5 7 Energy – Other 0 0 0 0 1 0 Consumer (cyclical) 3 6 4 3 6 3 Securitized (MBS/ABS) 1 1 1 1 1 1 Telecommunications 2 0 2 2 0 2 Basic materials 2 3 2 2 2 2 Technology 1 0 1 2 0 1 Media and internet and other 1 0 1 1 0 1 Total per cent 100 100 100 100 100 100 Total carrying value ($ billions) $ 203.9 $ 47.1 $ 251.0 $ 224.2 $ 42.8 $ 267.0 As at December 31, 2022, gross unrealized losses on our fixed income holdings were $33.3 billion or 12% of the amortized cost of these holdings (2021 – $1.6 billion or 0.6%). Of this amount, $8.4 billion (2021 – $11 million) related to debt securities trading below 80% of amortized cost for more than 6 months. Securitized assets represented $228 million of the gross unrealized losses and none of the amounts trade below amortized cost for more than 6 months (2021 – $2 million and none, respectively). After adjusting for debt securities supporting participating policyholder and pass-through products and the provisions for credit included in the insurance and investment contract liabilities, the potential impact to shareholders’ pre-tax earnings for debt securities trading at less than 80% of amortized cost for greater than 6 months was approximately $6.6 billion as at December 31, 2022 (2021 – $7 million). 39