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.

Financial results
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 of 12.2%.

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.

Business development
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 of service.

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.

Horizon 2015
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 brokerage firms.

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.


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

From elsewhere: 
450 771-1334, ext. 275
514 485-1334, ext. 275
800 363-1334, ext. 275

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890