Issue link: http://clhia.uberflip.com/i/563156
27 a more restrictive sense than asset, as explained in the footnote to the table on this page.) Liabilities of life and health insurers At the end of 2014, actuarial liabilities amounted to 79.7 per cent of the total assets held in Canada by all life and health insurance providers. Other policy liabilities, such as amounts left on deposit at interest and policyholder dividends payable, accounted for 3.6 per cent of all assets. Borrowed funds and other liabilities amounted to 5.8 per cent. Capital and surplus (consisting of retained earnings and, for those companies with share capital, capital stock and contributed surplus, as well as head office accounts for non-resident companies) accounted for the remaining 10.9 per cent. Actuarial liabilities are the estimated funds needed, together with future premiums and investment income, to pay future benefits and expenses under insurance and annuity contracts, with an allowance provided for adverse experience to take into account uncertainties associated with future assumptions. At the end of 2014, life and health insurance providers maintained actuarial liabilities in Canada totalling $573.7 billion. Annuity liabilities represent 62.3 per cent of the total actuarial liabilities in Canada; life insurance, 30.3 per cent; and health insurance, 7.4 per cent (see chart on page 28). This compares with the 2004 picture, when actuarial liabilities totalled $286.7 billion with annuities comprising 62.7 per cent of the total; life insurance 28.6 per cent; and health insurance 8.7 per cent. All insurance companies in Canada are required to maintain capital and surplus in excess of levels established by regulatory authorities. These levels are calculated using formulae for measuring possible adverse experience with respect to asset default, mortality and morbidity costs, and losses from changes in interest rates that exceed provisions in the actuarial liabilities. (See Consumer Protection/Government Regulation, page 34.) Sources: OSFI, ACLI, CLHIA Included in these figures are Canadian securities, loans, properties, etc. Excluded are foreign assets held on behalf of Canadian policyholders and non-invested assets, such as investment income due and accrued and outstanding premiums Corporate securities include bonds and stocks *Part or all of these amounts has been attributed to each region by appropriate formulae Canadian Investments by Region End of 2014 (millions) Investment British Prairie Ontario Quebec Atlantic Total Type Columbia Provinces Provinces Canada Corporate securities* $25,878 $ 48,238 $ 96,067 $ 35,796 $16,465 $222,444 Mutual funds* 18,906 35,413 61,996 33,605 13,357 163,277 Mortgages and real estate 13,431 17,746 35,091 14,539 4,006 84,813 Provincial bonds 8,308 7,178 31,353 28,830 7,625 83,294 Federal bonds* 4,574 4,966 11,812 6,325 2,163 29,840 Municipal bonds 2,152 1,671 11,669 4,016 752 20,260 Other* 3,869 5,551 17,500 9,227 2,434 38,581 Total Investments 77,118 120,763 265,488 132,338 46,802 642,509