SAINT-HYACINTHE, QC, April 6 /CNW Telbec/ - This morning, LS Mutual Life
Insurance Company held its annual general meeting, during which the
President and Chief Executive Officer, Richard Gagnon, disclosed the
mutual's financial results for 2010. He also took the opportunity to
present the Company's key strategic orientations for years 2010 to
2015. Finally, he reminded those in attendance of how the Company's
mutual status stands as a guarantee of solidity and stability.
In 2010, LS Mutual earned $5.2 million in before-tax profits and
policyholder dividends, with a net profit of $3.4 million, thereby
exceeding the target set early in the year. According to Mr. Gagnon,
these earnings are particularly impressive given the significant
investments made in the past few years to grow the business volume and
develop the Company's technological capacity. Thus, in the past five
years, average return on mutual members' equity has been 12.4%.
LS Mutual's gross revenues rose 11.1% to $89.3 million. Insurance
premiums contributed the most to this surge, accounting for an increase
In 2010, LS Mutual paid back over $35 million in insurance benefits to
its insureds, a figure 10.5% higher than the year before. The Company's
assets appreciated 10.2% to $247 million, while mutual members' equity
is now almost $42 million.
The President and Chief Executive Officer pointed out that all business
lines contributed to the Company's growth in 2010. However, the group
insurance sector performed especially well thanks to an updated offer
For the individual insurance line, LS Mutual continued to successfully
provide health insurance products that stand out from the competition.
Mr. Gagnon reminded members that the Assure-Debt product, launched in late 2009, reached all its sales objectives within
the very first year.
Mr. Gagnon also stated that the travel insurance sector continued to
progress and the experience of the past few years is pushing LS Mutual
to explore new paths in strengthening the partnership established a few
years ago with Tour+Med Assistance.
In his speech, the President reminded the audience that 2010 was a year
of reflection for the Board of Directors in tracing LS Mutual's
orientations and setting objectives for 2015. This reflection process
was inspired to a great extent by the impressive results achieved in
the past few years.
As such, the favoured strategies are based on three development poles:
the Company's characteristics as a health insurance specialist;
a distribution network consisting of close partnerships built up over
the long term;
an insurer that draws on the advantages of being a mutual.
LS Mutual will therefore continue to offer health insurance products by
developing new markets, mainly in Ontario. Moreover, its role as a
niche actor will guide many decisions in coming years. Where group
insurance is concerned, Mr. Gagnon asserts that the Company wishes to
be more present in the market of groups with 1,000 lives or less. The
travel insurance sector will be also a vector of the mutual's growth.
Brokerage will remain the backbone of the distribution strategy for LS
Mutual, which hopes to forge even closer partnerships with insurance
Mr. Gagnon ended the meeting by reminding those in attendance that the
Company's mutual status is a decisive asset, reminding them that it is
policyholders who own the company, rather than shareholders, whose main
interest lies in a financial return.
SOURCE LA SURVIVANCE, COMPAGNIE MUTUELLE D'ASSURANCE VIE
For further information:
Source: Josée Courteau, Executive Secretary
LS Mutual Life Insurance Company
1555 Girouard Street West, P.O. Box 10,000
Saint-Hyacinthe, Quebec J2S 7C8