SAINT-HYACINTHE, QC, March 29, 2012 /CNW Telbec/ - At the annual general meeting held this morning, President and Chief Executive Officer Richard Gagnon disclosed the financial results for 2011. He also spoke of the growth in sales over the past year and focused on an important project that will help the company pursue its development.
In 2011, LS Mutual's net profit exceeded the target set early in the year and amounted to $3.7 million, up 15.1% over the previous year. According to Mr. Gagnon, that profit is particularly impressive because 2011 was highlighted by a number of investment projects, in areas such as sales activities, distribution network development and technology procurement.
LS Mutual's gross revenues amounted to $97.6 million, up 10.2% over last year. It should be pointed out that this growth is due primarily to a 9.7% increase in insurance premiums.
The Company paid back close to $42 million in benefits to its insureds, a 3.7% increase. Assets rose 15% to $352 million, while mutual members' equity now totals $46 million.
For the individual insurance line, the President and Chief Executive Officer pointed out that LS Mutual continued in 2011 to strengthen its position as a carrier specializing in health insurance products. As proof, the Company's sales growth has topped 15% each year for the past several years.
As regards group insurance, the Company intends to stand out from the competition by marketing a line of products to address more specific needs, thereby helping to improve its group retention.
Mr. Gagnon also reported that the travel insurance sector had experienced growth substantially greater than the market's thanks to the quality of the partnership that exists with Tour+Med Assurance.
The strength of a forward-looking mutual
To support the Company's development, the Board of Directors has put a proposal before the mutual's members to proceed with a corporate change like other Quebec mutual companies have already executed. The initiative is intended to increase LS Mutual's financial capacity to invest in larger projects, which it is unable to do at the moment because of its status as a mutual insurance company.
The proposal is to split the current mutual insurance company into two corporate entities: a mutual management company and a share capital insurance company. Under that structure, the rights of mutual members will be maintained in full, while providing the insurance company with greater flexibility to access capital. In the coming weeks, all mutual members will be invited to decide on the proposal.
Mr. Gagnon ended the meeting by mentioning that LS Mutual is looking resolutely forward, committed to retaining a mutual structure with its focus on quality service while maintaining a reasonable profitability level.
For further information:
Josée Courteau, Executive Secretary
LS Mutual Life Insurance Company
1555 Girouard Street West, P.O. Box 10,000
Saint-Hyacinthe, Quebec J2S 7C8
Saint-Hyacinthe: 450 771-1334, ext. 275
Montreal: 514 485-1334, ext. 275
From elsewhere: 800 363-1334, ext. 275