Industrial Alliance Annual Meeting - Strength You Can Count on For Over 100
Years
QUEBEC CITY, May 5 /CNW Telbec/ - "Probably our biggest achievement of the year was that we managed to do what few others could during the crisis: we reinforced our financial strength," said Yvon Charest, President and Chief Executive Officer of Industrial Alliance Insurance and Financial Services Inc., referring to the Company's 2009 results before shareholders and participating policyholders who attended the annual general meeting today.
Pleased with the turn of events, Mr. Charest explained that despite a sometimes hostile economic and financial environment, particularly at the beginning of the year when world economies were experiencing the worst of the recession, the Company was able to work its way through the crisis and emerge from it even stronger and with its business model intact. "We owe our success to four factors in particular: strict risk management, close monitoring of investments, strong capitalization and a focused, balanced and realistic strategy for growth."
"Today, our financial strength enables us to turn our attention to another equally important objective: business growth," Mr. Charest added. "That's what we did in the last two quarters, when we achieved record sales in several activity sectors."
Main Achievements
Following are the main achievements for 2009 and the first quarter of 2010.
- Profitability - Achieved all profitability objectives. Net income to common shareholders was $205.8 million in 2009, triple the previous year's result, and $60.3 million in the first quarter of 2010, up 31% compared to the same period in 2009. - Business growth - Very strong business growth in the last two quarters, where several sales records were achieved. Premiums and deposits totalled $1.8 billion in the first quarter of 2010, a 46% increase compared to the first quarter of 2009. Assets under management and under administration totalled $60.7 billion as at March 31, 2010. Sales of mutual funds, segregated funds and guaranteed investments in retail markets exceeded the billion dollar mark for the first time in the first quarter of 2010. And the Company was ranked first in Canada in terms of net segregated fund sales for the first quarter of 2010, with a 31.1% market share, a new high. - Financial strength - Solvency ratio of 223% as at March 31, 2010, which is above the Company's 175% to 200% target range. - Quality of investments - Net impaired investments of $13.3 million as at March 31, 2010, which represents just 0.08% of a $17.0 billion investment portfolio. - Dividend - Quarterly dividend of $0.2450 per common share. The dividend for the first quarter of 2010 corresponds to a payout ratio of 33% of earnings, which is in the upper part of the Company's 25% to 35% target range. - Issuance of capital - Issuance of $400 million in capital in the last twelve months: $100 million in subordinated debentures, $200 million in preferred shares and $100 million in common shares. - Acquisitions - Acquisition of the socially responsible investing mutual funds of Inhance Investment Management Inc., a subsidiary of Vancouver City Savings Credit Union, one of the largest credit unions in Canada. Acquisition of the individual life insurance portfolio of MD Life Insurance Company Limited, a life and health insurance company that offers life insurance and annuity products to Canadian physicians. Signing of an agreement to acquire US life insurance company American- Amicable Holding, Inc. - Senior management appointments - The Company announced several senior management appointments in the first quarter of 2010. These appointments add depth to the business development team and give young and experienced managers the chance to increase their knowledge of the company and put their talent to work in new business lines.
Mr. Charest ended his comments by reiterating the Company's seven areas of development:
1. Expanding the wealth management sector 2. Growing distribution networks 3. Accelerating geographic diversification in Canada 4. Creating a strong, viable and dynamic US company 5. Penetrating new market segments 6. Exercising strict control over operating expenses and unit costs 7. Optimizing synergies within the Industrial Alliance group of companies
About Industrial Alliance
Founded in 1892, Industrial Alliance Insurance and Financial Services Inc. is a life and health insurance company that offers a wide range of life and health insurance products, savings and retirement plans, RRSPs, mutual and segregated funds, securities, auto and home insurance, mortgage loans and other financial products and services. The fourth largest life and health insurance company in Canada, Industrial Alliance is at the head of a large financial group, which has operations in all regions of Canada, as well as in the United States. Industrial Alliance contributes to the financial wellbeing of over three million Canadians, employs more than 3,500 people and manages and administers over $60 billion in assets. Industrial Alliance stock is listed on the Toronto Stock Exchange under the ticker symbol IAG. Industrial Alliance is among the 100 largest public companies in Canada.
For further information: For further information: Jacques Carrière, Vice-President, Investor Relations, Office: (418) 684-5275, Cell: (418) 576-3624, [email protected]; www.inalco.com
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