The Company manages insurance risk through global policies, standards and best practices with respect to product design, pricing, underwriting and claim adjudication, and a global underwriting manual. Each business unit establishes underwriting policies and procedures, including criteria for approval of risks and claims adjudication policies and procedures. The current global life retention limit is US$30 for individual policies (US$35 for survivorship life policies) and is shared across businesses. Lower limits are applied in some markets and jurisdictions. The Company aims to further reduce exposure to claims concentrations by applying geographical aggregate retention limits for certain covers. Enterprise-wide, the Company aims to reduce the likelihood of high aggregate claims by operating globally, insuring a wide range of unrelated risk events, and reinsuring some risk. (h) Concentrationrisk The geographic concentration of the Company’s insurance and investment contract liabilities, including embedded derivatives, is shown below. The disclosure is based on the countries in which the business is written. Gross Reinsurance As at December 31, 2022 liabilities assets Net liabilities U.S. and Canada $ 251,305 $ (45,898) $ 205,407 Asia and Other 123,808 (1,814) 121,994 Total $ 375,113 $ (47,712) $ 327,401 Gross Reinsurance As at December 31, 2021 liabilities assets Net liabilities U.S. and Canada $ 271,090 $ (42,806) $ 228,284 Asia and Other 124,398 (1,773) 122,625 Total $ 395,488 $ (44,579) $ 350,909 (i) Reinsurancerisk In the normal course of business, the Company limits the amount of loss on any one policy by reinsuring certain levels of risk with other insurers. In addition, the Company accepts reinsurance from other reinsurers. Reinsurance ceded does not discharge the Company’s liability as the primary insurer. Failure of reinsurers to honour their obligations could result in losses to the Company; consequently, allowances are established for amounts deemed uncollectible. To minimize losses from reinsurer insolvency, the Company monitors the concentration of credit risk both geographically and with any one reinsurer. In addition, the Company selects reinsurers with high credit ratings. As at December 31, 2022, the Company had $47,712 (2021 – $44,579) of reinsurance assets. Of this, 91 per cent (2021 – 94 per cent) were ceded to reinsurers with Standard and Poor’s ratings of A- or above. The Company’s exposure to credit risk was mitigated by $25,247 fair value of collateral held as security as at December 31, 2022 (2021 – $25,466). Net exposure after considering offsetting agreements and the benefit of the fair value of collateral held was $22,465 as at December 31, 2022 (2021 – $19,113). Note 10 Long-Term Debt (a) Carryingvalueoflong-termdebtinstruments As at December 31, Issue date Maturity date Par value 2022 2021 (1),(2) 3.050% Senior notes August 27, 2020 August 27, 2060 US$ 1,155 $ 1,559 $ 1,455 (1),(3) 5.375% Senior notes March 4, 2016 March 4, 2046 US$ 750 1,004 939 (1),(4) 3.703% Senior notes March 16, 2022 March 16, 2032 US$ 750 1,011 – (1),(5) 2.396% Senior notes June 1, 2020 June 1, 2027 US$ 200 270 253 (1),(5) 2.484% Senior notes May 19, 2020 May 19, 2027 US$ 500 674 630 (1),(3) 3.527% Senior notes December 2, 2016 December 2, 2026 US$ 270 365 342 (1),(3) 4.150% Senior notes March 4, 2016 March 4, 2026 US$ 1,000 1,351 1,263 Total $ 6,234 $ 4,882 (1) These U.S. dollar senior notes have been designated as hedges of the Company’s net investment in its U.S. operations which reduces the earnings volatility that would otherwise arise from the re-measurement of these senior notes into Canadian dollars. (2) MFC may redeem the notes in whole, but not in part, on August 27, 2025, and thereafter on every August 27 at a redemption price equal to par, together with accrued and unpaid interest. Issue costs are amortized to the earliest par redemption date. (3) MFC may redeem the senior notes in whole or in part, at any time, at a redemption price equal to the greater of par and a price based on the yield of a corresponding U.S. Treasury bond, from redemption date to the respective maturity date, plus a specified number of basis points. The specified number of basis points is as follows: 5.375% - 40 bps, 3.527% -20 bps, and 4.150% -35 bps. Issue costs are amortized over the term of the debt. (4) Issued by MFC during the first quarter, interest is payable semi-annually. The Company may redeem the senior notes in whole or in part, at any time, at a redemption price equal to the greater of par and a price based on the yield of a corresponding U.S. Treasury bond, from redemption date to December 16, 2031, plus 25 bps, together with accrued and unpaid interest. Issue costs are amortized over the term of the debt. (5) MFC may redeem the senior notes in whole or in part, at any time, at a redemption price equal to the greater of par and a price based on the yield of a corresponding U.S. Treasury bond, from redemption date to two months before the respective maturity date, plus a specified number of basis points. The specified number of basis points is as follows: 2.396% - 30 bps, and 2.484% - 30 bps. Issuance costs are amortized over the term of the debt. 193