David Scandiffio, CFA EVP, Industrial Alliance President, IA Clarington. Wealth Management. Investor Day, June 11, 2014

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1 David Scandiffio, CFA EVP, Industrial Alliance President, IA Clarington Wealth Management Investor Day, June 11,

2 Overview Industrial Alliance Individual Insurance Individual Wealth Management Group Insurance Group Savings and Retirement Life (Canada) Employee Plans Annuities Disability (Canada) Life (US) Mutual Funds Dealer Services Special Markets Solutions 2

Life (Canada) Employee Plans Annuities Disability (Canada)

3 Discussion Points Key Earnings Contributor IA s wealth management operations are a driver of both earnings and growth for shareholders Industry Change In addition to ongoing demographic changes, upcoming regulatory changes, including CRM2, could create seismic impacts for our industry Lifecos continue to be well positioned to provide wealth management solutions to Canadians going forward Growth Strategy IA continues to evolve our wealth management operations to manage the risks and seize emerging opportunities 3

create seismic impacts for our industry Lifecos continue to be well positioned to provide wealth management solutions to

4 Retail Wealth Management Assets Significant and consistent growth Assets Under Management (in $B) Key Earnings Contributor (Q1) CAGR: 16% (13% without Jovian acquisition) Other 1 Jovian IA Clarington (Q1) 4 1 Annuities and segregated funds, less interfund eliminations

7 18.7 19.0 9.0 8.6 20.2 8.6 9.7 10.4 11.6 26.5 27.6 9.1 9.3 3.1 3.3 14.3 15.

5 Retail Wealth Management Profitability A consistent source of earnings for IA Operating Profit 1 (in $M) Key Earnings Contributor Impact of market downturn (Q1) 5 1 Operating profit excludes changes in assumptions, income on capital and taxes

Impact of market downturn 49 41 2008 2009 2010 2011 2012 2013 2014 (Q1) 5 1

6 Jovian Capital Update Extending advice capabilities to reach new segments Jovian Holdco operations successfully integrated into IA platforms Finance, legal, technology support now leveraging IA or IAC platforms to support MGI successfully integrated into IA s IIROC operations Adds 50% scale and presence in Ontario and Western Canada TE Wealth, Leon Frazer bring solid operations with immediate scale Leveraging their credible, well-established and geographically diverse platforms Tremendous potential to leverage TE Wealth s advanced planning capabilities Hahn s ETF expertise a huge opportunity given move to greater transparency Hahn s capabilities and track record in selecting and actively managing ETF portfolios is a key competency to be leveraged across our platforms Growth Strategy 6

scale Leveraging their credible, well-established and geographically diverse platforms Tremendous potential to leverage TE Wealth s advanced planning capabilities Hahn s ETF expertise a huge

7 Wealth Management Focused on delivering value to retail investors Retail Investor Growth Strategy Value Active Management Value Advice Value Outcome-based Solutions Operating Brands Points of Differentiation High conviction, active managers Local professionals, advanced capabilities, relative independence Life-income and capital protection solutions 7

Brands Points of Differentiation High conviction, active managers Local professionals,

8 IA Clarington Investments 2013 was a banner year for mutual fund sales Gross Sales (in $B) Key Earnings Contributor 2.3 Up 35% in funds over $100M in gross sales; 40% increase in number of advisors Affiliated dealers a significant and stable source of distribution

7 1.8 1.7 8 funds over $100M in gross sales; 40% increase in number of advisors 1.

9 IA Wealth s Client-facing Advice Providers One of Canada s largest non-bank advice providers WEALTH More than 2,800 advisors $32 billion in AUA Key Earnings Contributor > $12.7B in AUA > $13.3B in AUA > $5.3B in AUA > $1.1B in AUA > 2,000 advisors > 600 advisors > 190 advisors > 40 advisors MFDA IIROC PM HNW Planning 9

Earnings Contributor > $12.7B in AUA > $13.3B in AUA > $5.3B in AUA > $1.

10 Lifecos Are Well Positioned for Growth Opportunity to fill loss of Independents Mutual Fund Competitor Groups Industry Net flows as % of beginning assets ETF Providers Bubble size = group s relative asset size Life Insurers Deposit-takers Independents Direct Sellers Unions & Associations Low asset growth 5-yr growth through November 2013 High asset growth 10 Source: Investor Economics

s relative asset size Life Insurers Deposit-takers Independents Direct Sellers Unions &

11 Impact of Regulation on Retail Distribution Developing regulatory initiatives a key catalyst for change Cost of Mutual Fund Ownership Discussion Paper Items under discussion include increased disclosure requirements and a potential banning of embedded compensation Industry Reforms to NI Client Relationship Model Increased know-your-client and disclosure requirements Annual individual cost disclosure in dollar terms by client account (2016) Fiduciary Best Interest Standard Discussion Paper Considers elevating advisors from duty of care to best interest of investor standard 11

31-103 Client Relationship Model Increased know-your-client and disclosure requirements Annual individual cost disclosure in dollar terms by

12 Client Relationship Model Part 2 (CRM2) Disclosing the dollar cost of advice Industry Cost of Product Portfolio Management Custody Audit and Legal Total Cost Cost of Advice Trailer and Commission By July 15, 2016 advice and distribution costs are required to be separately disclosed in dollar terms to investors Industry comments have been focused on leveling the playing field, and easing transition 12

Commission By July 15, 2016 advice and distribution costs are required to be separately disclosed in

13 Impact of Regulation on Retail Distribution Implications to strategy? Greater transparency the new normal Increased unbundling of fees for advice vs. investment management Critical to define and execute on your value-add for each Must also have flexible pricing structures to adapt as client and/or regulatory preferences evolve Access to client-facing distribution networks critical Industry 13

investment management Critical to define and execute on your value-add for each Must also have

14 Wealth Management Evolving our strategy to continue to add value Retail Investor Growth Strategy Value Active Management Value Advice Value Value Outcome-based Solutions Points of Differentiation High conviction, active managers Local professionals, relative independence Life-income and capital protection solutions Strategic Increments Continue build-out Adapt to post-crm2 world Transition to fee-based HNW solutions Leverage IA brand Re-intro life income 3rd party penetration 14 Broaden, Adapt Integrate Re-introduce

relative independence Life-income and capital protection solutions Strategic Increments Continue build-out Adapt to post-crm2

15 Summary IA s wealth management operations are a key contributor of both earnings and growth for shareholders In addition to ongoing demographic changes, upcoming regulatory changes, including CRM2, could create seismic impacts for our industry We continue to evolve our wealth management operations to manage the risks and seize emerging opportunities, on both the advice and the investment solution manufacturing sides Access to our broad and diverse distribution networks will continue to grow in strategic importance We will continue to assess opportunities to develop or acquire strategic assets that will assist us in leveraging our points of competitive advantage 15

emerging opportunities, on both the advice and the investment solution manufacturing sides Access to our broad and diverse distribution networks will continue to grow

16 16 Q&A

Institutional Presentation March 2014. 2013 was one of our best years ever. Jovian acquisition adds private wealth management expertise

Industrial Alliance Yvon Charest President and Chief Executive Officer 1 Institutional Presentation March 2014 Introduction 2013 was one of our best years ever Solid top-line momentum Capital-light businesses