Valuation of Insurance Contract Liabilities HowOurAudit We obtained an understanding, evaluated the design, and tested the operating effectiveness of management’s controls over the Addressedthe valuation of insurance contract liabilities. The controls we tested related to, among other areas, actuarial methodology, integrity of KeyAudit data used, controls over relevant information technology, and the assumption setting and implementation processes used by Matter management. To test the valuation of insurance contract liabilities, our audit procedures included, among other procedures, involving our actuarial specialists to assess the methodology and assumptions with respect to compliance with the Company’s policies. We performed audit procedures over key assumptions, including the implementation of those assumptions into the models. These procedures included testing underlying support and documentation, including reviewing a sample of experience studies supporting specific assumptions, challenging the nature, timing, and completeness of changes recorded, assessing whether individual changes were errors or refinements of estimates, and comparing the level of margins for adverse deviation to suggested ranges established by the CIA. We also tested the methodology and calculation of the insurance contract liabilities through both review of the calculation logic within the models, and through calculating an independent estimate of the insurance contract liability for a sample of insurance contracts and comparing the results to the Company’s results. In addition, we assessed the adequacy of the disclosures provided in the notes to the consolidated financial statements. Valuation of Invested Assets with Significant Non-Observable Market Inputs KeyAudit The Company recorded invested assets of $17.5 billion at December 31, 2022 on its consolidated statement of financial position Matter which are both (a) measured at fair value and (b) subject to a valuation estimate that includes significant non-observable market inputs. These invested assets are classified as level 3 within the Company’s hierarchy of fair value measurements and include real estate, timber and agriculture, high estimation uncertainty bonds, and private equities which are valued using internal models. There is increased measurement uncertainty in determining the fair value of these invested assets due to volatility in the current economic environment. These assets are valued based on internal models or third-party pricing sources that incorporate assumptions with a high-level of subjectivity. Examples of such assumptions include interest rates, yield curves, credit ratings and related spreads, expected future cash flows and transaction prices of comparable assets. Disclosures on this matter are found in Note 1 ‘Nature of Operations and Significant Accounting Policies’ and Note 4 ‘Invested Assets and Investment Income’ of the consolidated financial statements. Auditing the valuation of these invested assets was complex and required the application of significant auditor judgment in assessing the valuation methodologies and non-observable inputs used. The valuation of these assets is sensitive to the significant non-observable market inputs described above, which are inherently forward-looking and could be affected by future economic and market conditions. The audit effort involved professionals with specialized skill and knowledge to assist in evaluating the audit evidence obtained. HowOurAudit We obtained an understanding, evaluated the design, and tested the operating effectiveness of management’s controls over the Addressedthe investment valuation process. The controls we tested related to, among other areas, management’s determination and approval of KeyAudit assumptions and methodologies used in model-based valuations and management’s review of valuations provided by third-party Matter pricing sources. To test the valuation of these invested assets, our audit procedures included, among other procedures, involving our valuation specialists to assess the methodologies and significant assumptions used by management. These procedures included assessing the valuation methodologies used with respect to the Company’s policies, valuation guidelines, and industry practice and comparing a sample of valuation assumptions used against benchmarks, including comparable transactions and independent pricing sources where available. We also performed independent investment valuations on a sample of investments with high estimation uncertainty to evaluate management’s recorded values. In addition, we assessed the adequacy of the disclosures provided in the notes to the consolidated financial statements. IFRS 17 Insurance Contracts Adoption Disclosure KeyAudit International Financial Reporting Standards 17, Insurance Contracts (IFRS 17) is effective for years beginning on January 1, 2023. Matter As described in Note 2 of the accompanying financial statements, the Company will apply the Full Retrospective Approach to most contracts issued on or after January 1, 2021, applying the Fair Value Approach for contracts issued prior to this date. The Company discloses that the IFRS 17 adoption will result in a $12.0 billion net of tax reduction in total equity as at January 1, 2022. Note 2 of the accompanying financial statements also provides quantitative and qualitative information on the impact of the new standard and certain accounting policy choices made by the Company. Auditing the Company’s disclosure of the effects of applying IFRS 17 was complex as it related to the measurement of the Company’s insurance contract liabilities including the transition Contractual Service Margin (transition CSM) included therein. This required the application of significant auditor judgement due to the complexity of the cash flow models, the determination of the discount rate and risk adjustment relating to the measurement of the insurance contract liabilities, and the development of fair value assumptions used in the determination of the transition CSM. The audit effort involved professionals with specialized skills and knowledge to assist in evaluating the audit evidence obtained. 133