Revenue For the years ended December 31, ($ millions) 2022 2021 Gross premiums $ 44,102 $ 44,344 Premiums ceded to reinsurers (6,249) (5,279) Net premium income 37,853 39,065 Investment income 15,207 15,627 Other revenue 9,164 11,132 Revenue before realized and unrealized investment gains and losses 62,224 65,824 Realized and unrealized investment gains and losses on assets supporting insurance and investment contract liabilities and (1) on the macro hedge program (45,077) (4,003) Totalrevenue $ 17,147 $ 61,821 (1) See “Impact of Fair Value Accounting” section below. Also see “Profitability – Items excluded from core earnings” section above for information on direct impact of equity markets and interest rates and variable annuity guarantee liabilities. Financial Strength Financial strength metrics As at and for the years ended December 31, ($ millions, unless otherwise stated) 2022 2021 (1) MLI’s LICAT ratio 131% 142% Financial leverage ratio 27.7% 25.8% (2) Consolidated capital $ 62,493 $ 66,005 Book value per common share ($) $ 26.49 $ 26.78 Book value per common share excluding accumulated other comprehensive income ($) $ 26.50 $ 24.12 (1) This item is disclosed under OSFI’s Life Insurance Capital Adequacy Test Public Disclosure Requirements guideline. (2) This item is a capital management measure. For more information on this metric, see “Non-GAAP and Other Financial Measures” below. The Life Insurance Capital Adequacy Test (“LICAT”) ratio for MLI was 131% as at December 31, 2022, compared with 142% as at December 31, 2021. The 11 percentage point decrease from December 31, 2021 was driven by the unfavourable impact of market movements on capital primarily from the large increase in risk-free interest rates, and from common share buybacks, partially offset by the favourable impacts from the U.S. variable annuity reinsurance transactions. MFC’s financial leverage ratio as at December 31, 2022 was 27.7%, an increase of 1.9 percentage points from 25.8% as at December 31, 2021. The increase in the ratio was driven by a reduction in the carrying value of AFS debt securities from higher interest 1 rates, common share buybacks, and the net issuance of securities , partially offset by growth in retained earnings and the impact of a weaker Canadian dollar. Consolidated capital was $62.5 billion as at December 31, 2022 compared with $66.0 billion as at December 31, 2021, a decrease of $3.5 billion. The decrease was driven by a decline in total equity and the redemption of capital instruments. The decline in total equity was due to a reduction in the carrying value of AFS debt securities from higher interest rates, and common share buybacks, partially offset by 2 growth in retained earnings, the impact of a weaker Canadian dollar, and net capital issuances . 3 4,5 Remittances were $6.9 billion in 2022 of which Asia and U.S. operations have delivered $0.9 billion and $2.8 billion respectively. Remittances in 2022 increased by $2.5 billion compared with 2021 primarily due to contributions related to the U.S. variable annuity transactions and other corporate actions. 6 was $241.0 billion as at December 31, 2022 compared with $268.4 billion as at Cash and cash equivalents and marketable assets December 31, 2021. The decrease of $27.4 billion was primarily driven by the lower market value of fixed income instruments due to higher interest rates and the lower market value of public equities due to a decline in equity markets. Refer to “Liquidity Risk Management Strategy” below for more information. Book value per common share as at December 31, 2022 was $26.49, in line with $26.78 as at December 31, 2021, and the book value per common share excluding accumulated other comprehensive income (“AOCI”) was $26.50 as at December 31, 2022, an increase of 10% compared with $24.12 as at December 31, 2021. Compared with December 31, 2021, book value per common share was impacted by 1 For financial leverage ratio, net issuance of securities consisted of the issuance of Limited Recourse Capital Notes (reported as other equity instruments) of $1.0 billion and senior debt of $1.0 billion, offset by the redemption of subordinated debt of $1.0 billion, and two series of preferred shares totaling $0.7 billion. 2 For consolidated capital, net capital issuance consisted of the issuance of Limited Recourse Capital Notes (reported as other equity instruments) of $1.0 billion, partially offset by the redemption of two series of preferred shares totaling $0.7 billion. 3 For more information on this metric, see “Non-GAAP and Other Financial Measures” below. 4 Remittances from Asia and U.S. operations include the remittances from their respective affiliate reinsurers. In addition, U.S. operation remittances include the International High Net Worth business written in the Bermuda branch of MLI. 5 Asia and U.S. operations include their respective insurance, and wealth and asset management segments. 6 Includes cash & cash equivalents, comprised of cash on deposit, Canadian and U.S. Treasury Bills and high quality short-term investments, and marketable assets, comprised of investment grade government and agency bonds, investment grade corporate bonds, investment grade securitized instruments, publicly traded common stocks and preferred shares. 15