Financialfacts. London Life participating life insurance. Accountability Strength Performance
|
|
- Virgil Powell
- 8 years ago
- Views:
Transcription
1 2014 Financialfacts London Life participating life insurance Accountability Strength Performance
2
3 This guide provides key financial facts about the management, strength and performance of the London Life participating account. Table of contents Financial highlights Participating life insurance overview... 6 How participating policies perform... 6 How policyowner* dividends are allocated... 7 Accountability... 8 Strength...10 Participating account performance...12 Dividend scale interest rate...12 Historical average returns...13 Stability...14 Returns...14 Asset mix...15 Investment guidelines...16 Prudent management...17 Need more information?...19 Appendix...20 London Life participating account management policy...20 London Life participating policyholder* dividend policy...22 * The term policyowner is used throughout except in the appendix. Throughout this document numbers may have been rounded. Performance data is provided for illustrative purposes only and represents past performance, which is not necessarily indicative of future performance.
4 Financial highlights 2014 for the London Life participating account Accountability The participating policyowner portion of distributed surplus continued to be 97.5 per cent unchanged since London Life is governed under the federal Insurance Companies Act (ICA) of Canada, which includes provisions for how participating accounts must be managed within a company that has shareholders. It also includes the requirements that a participating account management policy and a policyowner dividend policy be established and maintained. Participating policyowner dividends are determined in accordance with the policyowner dividend policy approved by the board of directors. This policy is intended to ensure reasonable equity among groupings of participating policyowners. In 2014, London Life participating policyowner death claims totalled $396.2 million. Detailed information on the investments held in London Life s participating account can be found at londonlife.com. This information is updated quarterly. notes The dividend scale interest rate is used to calculate the investment component of participating policyowner dividends and is based on the return on the assets backing participating account liabilities. It does not include the return on assets backing the participating account surplus. The dividend scale interest rate is only one of many factors that contribute to an individual policy s performance. The actual cash value growth in any policy varies based on a number of factors, such as type of product, product features, premium-paying period, issue age, rating, dividend option, the dividend scale and others. Strength London Life continues to have the largest participating account in Canada, as measured by assets. 1 The total participating account assets, including surplus, were $23.8 billion at Dec. 31, London Life has 1.5 million participating life insurance policies in force at Dec. 31, London Life s credit ratings were maintained in The company continues to enjoy strong ratings relative to its North American peer group due to its conservative risk profile and stable earnings track record. Vesting Vesting is a significant benefit available with participating life insurance. Starting at a policy s first anniversary, policyowners can begin receiving dividends. Dividends credited to a policy have a cash value associated with them. This cash value, once credited to the policy, can grow year after year. It cannot be reduced or used for any purpose other than as authorized by the policyowner, to pay premiums or to preserve the policy s tax-exempt status. Vesting is a key and attractive advantage of participating life insurance because policyowner dividends, once distributed, are not negatively affected by future market performance. 1. This information is based on competitive data available at time of printing; not all companies report this information. 2. Ratings are the latest ratings given by A.M. Best Company, DBRS Limited, Fitch Ratings, Moody s Investors Service and Standard & Poor s Ratings Services at time of publication. For current information on London Life s ratings and financial strength, see the corporate information section at londonlife.com. 4
5 Performance London Life has distributed dividends to its participating policyowners every year since In 2014, dividends distributed to participating policyowners were $783 million. London Life s long-term investment strategy together with its strategy of smoothing the returns for the purpose of determining the dividend scale interest rate helps reduce the impact of shortterm investment volatility on participating life insurance policyowner dividends. On average, based on the 2014 dividend scale, approximately 60 per cent of policyowner dividends were derived from investment experience. Approximately 30 per cent were derived from positive mortality experience and approximately 10 per cent were derived from other factors, such as lapse, expense and tax experience. The 2014 dividend scale interest rate was 5.9 per cent. 3 The 10-year average annual dividend scale interest rate was 6.8 per cent, and the 20-year average was 7.7 per cent to the end of The 30-year average annual dividend scale interest rate was 8.7 per cent for the period from 1985 to The 60-year average annual dividend scale interest rate was 7.4 per cent for the period from 1955 to The one-year return on total participating account assets for 2014, after investment expenses, was 5.5 per cent. 5 In 2014, participating account investment expenses were 7.4 basis points. In 2014, the participating account holdings of equity investments, including real estate, decreased to 19.1 per cent of the total invested participating account assets, from 22.9 per cent in In 2014, mortgage holdings decreased to 26.0 per cent of the total invested participating account assets, from 26.7 per cent in In 2014, public bond holdings increased to 46.0 per cent of the total invested participating account assets, from 43.8 per cent in In 2014, private placement holdings decreased to 3.9 per cent of total invested participating account assets, from four per cent in For 2015 In November 2014 the board of directors approved the recommendation of the company s actuary, and the 2014 dividend scale will continue to apply for all London Life participating life insurance policies through Factors such as mortality and taxes have improved, and equity markets performed well, which helped offset the impact of the continuing low interest rate environment, allowing the dividend scale to be maintained. London Life s participating life insurance products continue to be competitive and reflect a history of strong, stable performance. On average, based on the 2015 dividend scale, approximately 60 per cent of policyowner dividends will come from investment experience. Approximately 30 per cent will come from positive mortality experience, and approximately 10 per cent will come from other factors, such as lapse, expense and tax experience. The 2015 dividend scale interest rate is 5.9 percent. 3 In 2015, dividends distributed to participating policyowners are estimated to be $830 million. notes 3. The rate shown applies to policies issued on or after Sept.16, These policies have a variable policy loan rate provision, whereas policies issued before this date have a fixed policy loan rate provision and a different dividend scale interest rate. 4. The 60-year average annual dividend scale interest rate is a blended average of the dividend scale interest rate that applies to policies with a variable policy loan rate provision (1969 to 2014) and the dividend scale interest rate that applies to policies with a fixed policy loan rate provision (1955 to 1968). 5. The participating account return is the return on the participating account assets that back both liabilities and surplus after investment expenses are deducted. Investment expenses may vary yearly due to changes in the asset mix of the total participating account, economies of scale and other factors. The participating account return is reported for the calendar year Jan. 1, 2014, to Dec. 31, The participating account return is a short-term indicator of investment performance. This return is based on International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), effective Jan. 1, 2011, with the exception of unrealized gains and losses on bonds, which are excluded because bonds in the participating account are generally held until maturity. Common stock and real estate returns are valued on a marked-to-market basis (i.e., not smoothed) and realized gains and losses on bonds are recognized as incurred. 5
6 Participating life insurance overview How participating life insurance policies perform Participating life insurance is built on a foundation of guaranteed values, tax-advantaged growth, plus the opportunity to receive policyowner dividends. Participating policyowners premiums go into a separate account called the participating account. London Life manages this account, investing its assets in a diversified portfolio of bonds, mortgages and equities including real estate. This frees policyowners from the details of hands-on management. Earnings come from favourable investment returns, mortality experience, policy lapse experience and expense management relative to the assumptions used when pricing the products. Each year, London Life may distribute some of these earnings in the form of policyowner dividends, as approved by the board of directors. Policyowner dividends are not guaranteed. The amount to be distributed is influenced by considerations such as the need to retain earnings as surplus and to reduce short-term volatility in dividends. Surplus is held in the participating account to maintain the strength and stability of the company. London Life reviews the dividend scale and the participating account insurance contract liabilities at least annually. This review involves analyzing factors such as investment returns, mortality experience, expenses, lapses and taxes. The process is intended to ensure the participating account insurance contract liabilities are at an appropriate level and to determine whether a change needs to be made to the policyowner dividend scale. How is a policyowner dividend different from a shareholder dividend? Shareholder dividends are paid based on the overall results of the company from all lines of business, including non-participating life insurance and investment products. Participating policyowner dividends are based solely on the experience of London Life s participating life insurance line of business. 6
7 How policyowner dividends are allocated Each year, the board of directors declares what portion of the participating account earnings for that financial year will be distributed from the participating account. Currently, 97.5 per cent of the amount is distributed to participating policyowners, and 2.5 per cent is distributed to the shareholder account under section 461 of the federal Insurance Companies Act (ICA). The 97.5/2.5 per cent split for London Life has remained unchanged since See the accountability section for more details. Participating policyowner dividends are allocated based on groupings of participating policyowners, including: The year a policy was issued Eras in which premiums or guarantees are similar Plan types Basic risk classifications (e.g., male/female; smoker/non-smoker) Issue ages Dividends are distributed fairly in relation to the amount a policy has contributed to earnings. This is referred to as the contribution principle. In following this principle, several elements are taken into account, such as: Dividend groupings Generations of policies Legal and regulatory requirements Professional guidelines Industry practices Dividends are distributed to policies according to the amount of basic and paid-up additional coverage and the terms of each policy. The premium due on the first policy anniversary must be paid before the first dividend is credited. Paid-up additions is a dividend option that uses policyowner dividends to buy more participating life insurance that is fully paid up and has additional cash value. This dividend option helps maximize the growth in a policy s cash value and death benefit. 7
8 Accountability London Life is a shareholderowned company and as such is required to maintain the participating account and its earnings separately from the shareholder account. London Life is governed by regulatory agencies and acts, including the Office of the Superintendent of Financial Institutions (OSFI), relevant provincial insurance regulatory authorities and the federal Insurance Companies Act (ICA). These agencies and acts regulate how London Life manages its participating account. Insurance Companies Act (ICA) provisions and references Subject to the ICA, the directors of a company must manage or supervise the management of business affairs of the company. This management includes establishing and maintaining a policy for dividends to be distributed to participating policyowners, as well as a policy for the management of the participating accounts. The ICA contains a number of provisions that outline certain duties required of directors and the reporting requirements regarding the use of fair and equitable actuarial practices. 1. Investment income and expenses are to be allocated to the participating account in accordance with a method that in the opinion of the company s actuary is fair and equitable to participating policyowners. Once this allocation method is approved by the board of directors, it is sent to OSFI (sections 457 to 460). 2. The board of directors is required to establish and maintain a policy for determining the dividends to be distributed to participating policyowners and to send a copy of the policy to OSFI (section 165 (2)(e)). 3. The board of directors is required to establish and maintain a policy respecting the management of the participating account and to send a copy of the policy to OSFI (section 165 (2)(e.1)). 4. At least annually, the company s actuary must review the participating policyowner dividend policy and provide a written report to the board of directors on its continuing fairness to participating policyowners (section 165 (3.1) Report of the Actuary). 5. Prior to the declaration of policyowner dividends by the board of directors, the company s actuary must provide his or her opinion to the board on the fairness to participating policyowners of the proposed policyowner dividends and on the company s compliance with its policyowner dividend policy (section 464 (2)). 8
9 6. The ICA limits the amount that may be distributed to the shareholder account from any annual distribution of the profits of the participating account for a financial year (section 461). This annual limit is set as a maximum percentage of the amount determined by the board of directors to be distributed from the profits of the participating account for that financial year. This total amount to be distributed is divided between the shareholders and participating policyowners. The maximum percentage of the total distribution that can be distributed to the shareholder account depends on the size of the participating account. The maximum percentage decreases from 10 per cent for a small participating account to just over 2.5 per cent as the size of the participating account increases. London Life has the largest participating account in Canada as measured by assets and currently distributes 2.5 per cent of the total distribution to the shareholder account. In 2014, this distribution to the shareholder account was $21 million, representing approximately 0.1 per cent of the participating account assets at Dec. 31, Each participating policyowner and shareholder is entitled to receive notice to attend the annual meeting of policyowners and shareholders and to receive copies of documents (for example, the annual statement). Each also has certain voting rights (sections 331 and 334). For more information on London Life s participating account management policy and the policyowner dividend policy, see the appendix. 9
10 Strength A London Life participating life insurance policy provides a foundation of guaranteed values. It also offers the opportunity for growth based on participation in a pool with 1.5 million other participating policies (at Dec. 31, 2014). London Life offers both stability and flexibility in a permanent life insurance solution. London Life has the largest participating account in Canada as measured by assets. London Life s participating account has $23.8 billion in assets, including $1.7 billion in surplus (at Dec. 31, 2014). London Life has distributed dividends to its participating policyowners every year since The London Life participating account s strong surplus position can help manage fluctuations in dividends. London Life s credit ratings were maintained in 2014.* It continues to enjoy strong ratings relative to its North American peer group due to its conservative risk profile and stable earnings track record. * Ratings are the latest ratings given by A.M. Best Company, DBRS Limited, Fitch Ratings, Moody s Investors Service and Standard & Poor s Ratings Services at time of publication. For current information on London Life s ratings and financial strength see the corporate information section at londonlife.com. Participating account ($ millions) Summary of participating account operations Participating account balance sheet 10 Note 1 1. For 2013, the participating account expenses reflected an in-year increase in expenses of $196 million arising from an adjustment to the litigation provision for legal proceedings in regard to the involvement of the participating account in the financing of the acquisition of London Insurance Group Inc. in The adjustment was made following a February 3, 2014, decision of the Court of Appeal for Ontario. Additional notes Participating policyowner premiums $1,900 $2,033 + Investment income 1,190 1,457 Benefits paid Changes in actuarial liabilities 1,094 1,312 Expenses and taxes Distribution to policyowners and shareholders Policyowner dividends Change in dividend liability 5 23 Shareholder portion Cash payment Accrual 4 (4) = Participating account operating income 1 $41 $31 Other expenses = Total participating account net income (loss) $(155) $31 Investment income is based on International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) effective Jan. 1, Certain assets, such as public bonds, common stocks and real estate, are marked to market (not smoothed). Investment income is reported for the calendar year Jan. 1 to Dec. 31 and includes assets backing both the participating account liabilities and surplus. Changes in actuarial liabilities are based on IFRS as issued by the IASB, effective Jan. 1, A change in actuarial liabilities is made to ensure the total amount of actuarial liabilities is sufficient to meet all policyowner obligations. The dividend liability represents dividends earned but not paid at the calendar year-end. To be consistent with the company s financial statements, accumulated other comprehensive income is now included in the participating account surplus. Other comprehensive income includes specific unrealized investment gains and losses, which may be temporary. Dec. 31, Dec. 31, Assets $22,171 $23,844 Liabilities 20,510 22,124 = Closing balance for participating account surplus $1,661 $1,720 Participating account surplus Opening balance Dec. 31 (previous year) $1,822 $1,661 + Participating account net income (loss) (155) 31 + Other comprehensive income (loss) (6) 24 + Reallocation of assets - 4 = Closing balance for participating account surplus $1,661 $1,720 Asset values are based on IFRS as issued by the IASB, effective Jan. 1, During 2014, London Life re-allocated $4 million from the shareholder account to the London Life participating account. This adjustment was for the commutation of certain reinsurance transactions completed during the year. Under the terms of the 2012 re-allocation of the investment in London Reinsurance Group (LRG) from the participating account to its shareholder account, this adjustment was required upon finalization of these transactions. The $4 million was recorded as a charge to shareholder accumulated surplus and an increase to the London Life participating account surplus. The accrual account represents a portion of shareholder surplus that is held within the participating account and has been recognized but not paid. It is dependent on future payment of dividends to participating policyowners. The accrual account balance increased by $4.2 million in 2013 and decreased by $4.2 million in 2014.
11 London Life serving our clients since 1874 Founded in London, Ontario, in 1874, London Life Insurance Company has been helping Canadians meet their financial security needs for 141 years and has almost two million clients. London Life offers financial security advice and planning through its more than 3,500-member Freedom 55 Financial division. Freedom 55 Financial offers London Life s own brand of investments, savings and retirement income, annuities, life insurance and mortgage products. In addition to its domestic operations, London Life participates in international reinsurance markets through its branch in Barbados and its subsidiary London Reinsurance Group Inc. London Life is a subsidiary of The Great-West Life Assurance Company. Together, Great-West Life and its subsidiaries, London Life and Canada Life, serve the financial security needs of more than 12 million people across Canada and have $371 billion in consolidated assets under administration (at Dec. 31, 2014). London Life reported a minimum continuing capital and surplus requirements ratio of 247 per cent at Dec. 31, 2014.* Together, Great-West Life, London Life and Canada Life have almost three million individual life insurance policies in force (at Dec. 31, 2014) and are a leading provider of individual life insurance in Canada. The companies are subsidiaries of Great-West Lifeco Inc., and members of the Power Financial Corporation group of companies. * In Canada, the Office of the Superintendent of Financial Institutions (OSFI) has established a capital adequacy measurement for life insurance companies incorporated under the Insurance Companies Act and their subsidiaries, known as the minimum continuing capital and surplus requirements (MCCSR) ratio. For Canadian regulatory purposes, capital is defined by OSFI in its MCCSR guideline. The company s practice is to maintain the capitalization of its regulated operating subsidiaries at a level that will exceed the relevant minimum regulatory capital requirements in the jurisdictions in which they operate. 11
12 Participating account performance The investment performance of the London Life participating account is an important component in determining the long-term value of participating life insurance policies. The participating account assets are managed by London Life s investment division. The company s asset/liability management group monitors the overall asset mix and guides investment activity within the parameters of the investment policy, approved by the board of directors. Managers of the specific asset classes, such as bonds, mortgages and equities (including real estate), manage the buying and selling of the actual assets in the portfolio within the parameters specified. Dividend scale interest rate The dividend scale interest rate is an element used to determine the amount of dividends that come from the participating account s investments. This rate: Incorporates the smoothed investment experience of assets backing participating account liabilities for the most recent 12-month period, from July 1 to June 30 Does not include the return on assets backing the participating account surplus Includes factors such as the smoothed gains and losses from prior periods May change depending on investment experience Smoothing is the process by which gains and losses are brought into the dividend scale interest rate over a period of time. London Life s long-term investment strategy together with its strategy of smoothing helps reduce the impact of short-term volatility on the investment component of dividends received by participating life insurance policyowners. The dividend scale interest rate is only one factor that contributes to an individual policy s performance. It cannot be directly tied to the cash value growth in a particular policy. The actual cash value growth in any policy varies based on a number of factors, including: Type of product Product features Premium-paying period Issue age Rating Dividend option Dividend scale Policy duration Past results are not indicative of the participating account s future performance. Surplus, and income generated by it, is used to help ensure the financial strength and stability of the company. It can also be used for other purposes, such as: Financing new business growth and acquisitions which may benefit the participating account Providing for transitions during periods of major change Managing fluctuations in dividends 12
13 Historical average returns (at Dec. 31, 2014) Number of years year standard deviation (2014) ( ) ( ) ( ) ( ) ( ) (since 1985) London Life dividend scale interest rate (%) S&P/TSX composite total return index (%) Five-year GICs (%) n/a 3.1 Government of Canada 5- to 10 year bonds (%) Consumer price index (%) All historical average annual returns are geometric means. A low standard deviation means the range of performance has been narrow and indicates there has been less volatility. Notes The historical average annual dividend scale interest rate for 30 years or less applies to policies issued on or after Sept. 16, 1968, which have a variable policy loan rate provision. Policies issued before this date have a fixed policy loan rate provision and a different dividend scale interest rate. The 60-year average annual rate is a blended average of the dividend scale interest rate that applies to policies with a variable policy loan rate provision (1969 to 2014) and the dividend scale interest rate that applies to policies that have a fixed policy loan rate provision (1955 to 1968). The dividend scale interest rate is used to calculate the investment component of participating policyowner dividends and is based on assets backing participating account liabilities. It does not include the returns on assets backing participating account surplus. The dividend scale interest rate for policies issued on or after Sept. 16, 1968, is 5.9 per cent for S&P/TSX composite total return index includes the reinvestment of dividends. TSX Copyright 2015 TSX Inc. All rights reserved. Five-year guaranteed investment certificate (GIC) returns are based on the nominal yields to maturity taken from Statistics Canada, CANSIM table , series V (Statistics Canada website), Jan. 2, For each calendar year, the average of the monthly GIC rates was used. Government of Canada five- to 10-year bond returns are taken from Statistics Canada, CANSIM table , series V (Statistics Canada website), Jan. 2, For each calendar year, the average of the monthly values was used. Consumer price index inflation rates are based on the change from December to December, taken from Statistics Canada, CANSIM table , series V (Statistics Canada website), Jan. 23, As with any financial product, over the long term a change in investment returns can have a significant impact on dividend values and related features in a policy. To better understand this sensitivity for a specific policy, clients and policyowners should refer to the reduced dividend examples in their policy illustrations. It may be useful to periodically request an updated copy of the illustration. 13
14 Stability The London Life participating account s strong surplus position helps provide stability and strength to the participating account and can help manage fluctuations in dividends. During times of economic change, the London Life dividend scale interest rate has been relatively stable compared to returns on many financial investments. The graph below shows how the participating account asset mix and the smoothing of returns have had stabilizing effects on the London Life dividend scale interest rate. Returns (at Dec. 31, 2014) 40% 30% 20% 10% 0% -10% -20% Lo sc S& to 5- inv (G Go 5-30% -40% Notes Performance data is provided for illustrative purposes only and represents past performance, which is not necessarily indicative of fut London Life dividend scale interest rate S&P/TSX composite total return index 5-year guaranteed investment certificates (GICs) Government of Canada 5- to 10-year bonds The dividend scale interest rate is used to calculate the investment component of participating policyowner dividends and is based on assets backing participating account liabilities. It does not include the returns on assets backing participating account surplus. The rate shown applies to policies issued on or after Sept. 16, These policies have a variable policy loan rate provision whereas policies issued before this date have a fixed policy loan rate provision and a different dividend scale interest rate. The S&P/TSX composite total return index includes the reinvestment of dividends. TSX Copyright 2015 TSX Inc. All rights reserved. Five-year guaranteed investment certificate (GIC) returns are the nominal yields to maturity taken from Statistics Canada, CANSIM table , series V (Statistics Canada website), Jan. 2, For each calendar year, the average of the monthly GIC rates was used. Government of Canada five- to 10-year bond returns are taken from Statistics Canada, CANSIM table , series V (Statistics Canada website), Jan. 2, For each calendar year, the average of the monthly values was used L 14
15 Asset mix The London Life participating account is broadly diversified and is generally managed as a fixed-income account with the goal of having approximately 80 per cent of invested assets in fixed-income investments and 20 per cent of invested assets in equities. Participating account assets for London Life at 2013 and 2014 year-ends ($ millions) Total Total Total Dec. 31, invested Dec. 31, invested Investment participating 2013 assets 2014 assets guidelines account assets $ % $ % % % Short term Cash and equivalents $ % $1, % 0% to 5% 4.5% Fixed income Bonds and private placements Public bonds Government 3, , Corporate 5, , Private placements Subtotal of bonds and private placements 9, , % to 75% 45.4 Mortgages Residential Commercial 4, , Subtotal of mortgages 5, , % to 40% 23.7 Total fixed income 14, , Equity Real estate and common stock Real estate 1, , % to 15% 4.7 Common stock 3, , % to 20% 12.5 Subtotal of real estate and common stock 4, , Preferred stock Total equities 4, , Total invested assets 20, , Policy loans 1, , Other assets* Total participating account assets $22,171.1 $23, % * Includes assets such as investment income due and accrued, outstanding premiums (receivables), future income tax and reinsurance assets. Notes London Life has guidelines in place to manage the level of invested assets by asset class. These ranges do not include policy loans or other assets. Any change to the investment guidelines must be approved by the board of directors. Asset values are based on International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), effective Jan. 1,
16 Investment guidelines 16 The investment guidelines for each asset category recognize the business objectives, liability characteristics, liquidity requirements, tax considerations and interest rate risk tolerance unique to that category. Any change to the investment guidelines must be approved by London Life s board of directors. A large portion of the total participating account assets is invested in bonds and mortgages to support long-term stable growth and core guarantees within participating life insurance policies. London Life s investment strategy helps stabilize the variation in the investment returns used to determine the investment portion of policyowner dividends. Years to maturity by fixed-income asset type Based on book values at Dec. 31, 2014 Years to maturity 0 to 5 years Over 5 years Public bonds 42.2% 57.8% Private placements 23.3% 76.7% Residential mortgages 99.5% 0.5% Commercial mortgages 45.0% 55.0% Total fixed income 44.0% 56.0% About 10 per cent of the total fixed-income portfolio of bonds and mortgages will be invested each year at then-current market rates. The majority of this is due to the maturity of bonds and mortgages. A portion of new premiums and investment income is also invested at the current market rates each year. The asset returns available in the marketplace in January and February 2015 for new participating account investments in bonds and mortgages were about 3.3 per cent. This is approximately 110 basis points below the average return for similar participating account assets maturing throughout Asset quality is very important At Dec. 31, 2014 Asset quality Public bonds Private placements AAA % % AA % % A % % BBB % % BB or less % % Total % % 99.5 per cent of total bonds held are investment grade or higher, i.e., BBB or higher which is an investment industry measure of bond quality. Private placements are internally rated. Private placements Private placements are bond investments made through private agreements with various borrowers. They are grouped into three main categories: Lease finance Mid-market and other corporate credit Infrastructure These investments have the potential to provide higher returns to the participating account than other types of fixed-income investments generally can. All private placements go through a disciplined credit process. Each arrangement undergoes due diligence and is thoroughly researched, underwritten and actively managed by the specialized private placement investment management team. In today s market, private placements can provide 1.5 to three per cent higher yields than federal government bonds.* * Performance data is provided for illustrative purposes only and represents past performance, which is not necessarily indicative of future performance. Mortgages (commercial and residential) Percentage Insured % Uninsured % Total % Principal and interest to the date of default are guaranteed for insured mortgages. Residential and commercial mortgage arrears (90+ days) are 0.02 per cent compared to the 0.01 per cent industry average at Dec. 31, 2014.
17 Prudent management The historical performance of London Life s participating account is due not only to strong investment results but also to prudent selection of underwriting risks and favourable mortality and expense management results. On average, under the 2014 dividend scale, approximately 60 per cent of policyowner dividends were derived from investment experience. Approximately 30 per cent were derived from positive mortality experience and approximately 10 per cent were derived from other factors, such as lapse, expense and tax experience. Mortality People are living longer and participating policyowners have benefited Every decade of the last century has shown mortality improvement. When people live longer, policy claims are paid later than anticipated, which creates gains in mortality experience. This benefits policyowners because gains in mortality experience can have a positive impact on the participating account and can increase the amount available for distribution as policyowner dividends. This is a unique feature of participating life insurance. Statistics Statistics Canada Canada life expectancy life expectancy for males and for females and at birth females at birth YEARS YEARS Sources FEMALE MALE Source of information to tables: Statistics Canada Longevity and Historical Life Tables: (Abridged) Canada and the Provinces. Catalogue no table: Statistics Canada Life Tables, Canada, Provinces and Territories, Catalogue no to tables: Statistics Canada, CANSIM table Source of information to tables: Statistics Canada Longevity and Historical Life Tables: (Abridged) table: Statistics Canada Life and Tables, the Canada, Provinces. and Catalogue Territories, Catalogue no no to tables: Statistics Canada Longevity and Historical Life Tables: (Abridged) Canada and the Provinces. Catalogue no to tables: Statistics Canada, CANSIM table table: Statistics Canada Life Tables, Canada, Provinces and Territories. Catalogue no Statistics Statistics Canada Canada remaining remaining life expectancy life expectancy for males and for females at and age females 65 at age 65 FEMALE MALE L L to tables: Statistics Canada, CANSIM table
18 The protective value of underwriting These mortality statistics reflect life expectancies for the entire population. On average, individuals who have been underwritten and approved for life insurance have even longer life expectancies. People considered a higher risk because of health, lifestyle or occupational concerns may pay more for life insurance coverage or may be declined coverage. Mortality results for London Life Mortality experience is reviewed annually and changes are taken into account in the review of policyowner dividends. Positive mortality experience was a contributing factor in London Life s ability to maintain the dividend scale for Even if mortality improvements slow over time, current mortality levels are still better than those used in pricing participating life insurance products. This is due to the level of conservatism built into the long-term pricing assumptions London Life used when developing the guarantees associated with its participating life insurance products and to London Life s process for selection of risk. Expenses London Life has the largest participating account in Canada as measured by assets, with $23.8 billion including surplus (at Dec. 31, 2014). This provides considerable opportunities when it comes to achieving expense efficiencies. Expenses and taxes incurred by London Life are allocated to the participating account in accordance with a method that in the opinion of the company s actuary is fair and equitable to participating policyowners and that has been approved by the board of directors after considering the actuary s opinion. Each year the actuary reviews the method used by the company for allocating expenses and taxes to the participating account and reports to the board of directors on its continuing fairness and equitableness. Expense-management policies focus on controlling expenses for the benefit of participating policyowners and shareholders. Historically, expense experience has been a relatively small component of the dividend scale compared with the investment and mortality components. 18
19 Need more information? For more information about how participating life insurance policies work, ask your financial security advisor for: Your guide to London Life participating life insurance Understanding how London Life participating life insurance works The value of London Life participating life insurance London Life participating life insurance: looking back at historical returns Smoothed returns help reduce volatility How London Life participating life insurance uses smoothing to reduce volatility of policyowner dividends Balancing to reduce risk Insights into private placements and the participating account You can find out more about participating life insurance and London Life s other products and services by calling your financial security advisor or local office. Each year on a policy s anniversary, a participating policyowner receives an annual statement that provides an update on the current status of the policy. It is often useful to ask your financial security advisor for an updated policy illustration. Visit London Life online at londonlife.com or call if you have a question about a specific policy. Your policy contains important definitions of certain terms used in this guide. This guide should be kept with your London Life illustration and participating life insurance policy contract. The information provided is based on current laws, regulations and other rules applicable to the company and to Canadian residents. Every reasonable effort has been made to ensure its accuracy as of the date of publication. Rules and their interpretations may change, which could affect the accuracy of the information. The information provided is general in nature and should not be relied on as a substitute for advice in any specific situation. For specific situations, advice should be obtained from the appropriate professional advisors. London Life is a member of Assuris, which administers the Consumer Protection Plan for policyowners of member companies. 19
20 Appendix London Life Insurance Company (the Company) Participating Account Management Policy 20 This Participating Account Management Policy, in conjunction with the Participating Policyholder Dividend Policy, has been established by the Board of Directors and may be amended by the Board from time to time at its discretion. The factors most likely to be considered in deciding whether to amend this policy include changes in applicable legal or regulatory requirements, professional guidelines, industry practices or significant business changes. The Appointed Actuary has overall accountability for the administration of this policy. As required by the Insurance Companies Act, the Company maintains accounts for its participating insurance policies separately from those maintained in respect of other policies. This facilitates the measurement of the earnings attributable to the participating account. The participating account is maintained in respect of participating life insurance policies and a small block of participating annuities that have been issued or assumed by the Company. The participating account remains open to new participating policies issued or assumed by the Company. Assets of the Company held within its general funds are allocated to the participating account and non-participating account segments for the purpose of determining investment income for each account. Assets are allocated to each segment according to the investment guidelines established for the segments. These guidelines outline criteria for asset mix, liquidity, currency risk and interest rate risk. These guidelines are intended to recognize considerations such as the business objectives, liability characteristics, liquidity requirements, tax considerations and interest rate risk tolerance of each segment. Assets allocated to a segment may from time to time be reallocated to another segment within the same account or another account provided the assets exchanged comply with the investment policy of the respective segments. Any such exchanges are effected at fair value. On an annual basis the Board of Directors reviews and approves investment policies and guidelines which govern investment activities. The investment policies outline a number of principles for investing in assets, including risk tolerance and the approach to managing investment risk. Investment risk is managed through underwriting standards, exposure limits and specific guidelines governing asset classes and investment operations. The investment policies establish limits for the concentration of assets in single geographic areas, industries, companies and types of businesses as part of the risk management process. The Company may use derivative products for risk management purposes to hedge asset and liability positions or as substitutes for cash within specified limits. The assets supporting the participating account liabilities are notionally divided into two segments for defining investment needs and objectives and managing the portfolio: (1) investments that are used to satisfy near term policy benefits (next 10 years) and (2) investments that are used to achieve longer term objectives of the participating account. The investments used for the near term are primarily fixed-income assets. The cash flows of these assets, together with the participating policy premiums, are expected to provide for the policyholder benefits for the next 10 years. These benefits include dividends, death benefits, cash surrender values and other policy benefits, such as waiver of premium. To achieve the longer term objectives of the participating account, the balance of the accounts are invested in a combination of 1 to 10 year fixed income assets and a diversified pool of common stocks and real estate. As a result, the fixed income assets in this segment are expected to mature and be reinvested several times before satisfying the policy benefits. The focus in managing this segment is to create value by reinvesting in a disciplined manner as investment spreads, interest rate levels and equity market conditions evolve and cycle. The performance of this part of the strategy is a key driver of changes in the dividend scale interest rate and this rate is an important contributor to changes in the dividend scale. Investment income is allocated to the participating account in accordance with the Company s
Financialfacts. Great-West Life participating life insurance. Accountability Strength Performance
2014 Financialfacts Great-West Life participating life insurance Accountability Strength Performance This guide provides key financial facts about the management, strength and performance of the Great-West
More informationFinancialfacts. Participating life insurance. Accountability Strength Performance
2014 Financialfacts Participating life insurance Accountability Strength Performance This guide provides key financial facts about the management, performance and strength of the Canada Life participating
More informationUNDERSTANDING PARTICIPATING WHOLE LIFE INSURANCE
UNDERSTANDING PARTICIPATING WHOLE LIFE INSURANCE equimax CLIENT GUIDE ABOUT EQUITABLE LIFE OF CANADA Equitable Life is one of Canada s largest mutual life insurance companies. For generations we ve provided
More informationUnderstanding Participating Whole. equimax
Understanding Participating Whole Life Insurance equimax CLIENT GUIDE ABOUT EQUITABLE LIFE OF CANADA Equitable Life is one of Canada s largest mutual life insurance companies in Canada. For generations
More informationLondon Life participating life insurance
Your guide to London Life participating life insurance Value, strength and choice What you ll learn from this guide This guide, combined with professional advice from your financial security advisor, helps
More informationPARTICIPATING WHOLE LIFE INSURANCE. Facts and figures. As of December 31, 2013. Life s brighter under the sun
WHOLE LIFE INSURANCE PARTICIPATING Facts and figures As of December 31, 2013 Life s brighter under the sun FINANCIAL HIGHLIGHTS Sun Life Financial YOUR CHOICE for participating whole life insurance Our
More informationINDUSTRIAL-ALLIANCE LIFE INSURANCE COMPANY. FIRST QUARTER 2000 Consolidated Financial Statements (Non audited)
INDUSTRIAL-ALLIANCE LIFE INSURANCE COMPANY FIRST QUARTER 2000 Consolidated Financial Statements (Non audited) March 31,2000 TABLE OF CONTENTS CONSOLIDATED INCOME 2 CONSOLIDATED CONTINUITY OF EQUITY 3 CONSOLIDATED
More informationYour guide to Canada Life s participating life insurance. Estate Achiever Wealth Achiever
Your guide to Canada Life s participating life insurance Estate Achiever Wealth Achiever This guide provides an overview of key features of participating life insurance products offered by Canada Life.
More informationYour guide to Great-West Life Participating life insurance
Your guide to Great-West Life Participating life insurance This guide provides a high-level overview of key features of Great-West Life participating life insurance. After you review this guide, talk with
More informationCanada Life 2013 participating policyowner dividend scale announcement
Nov. 8, 2012 Canada Life 2013 participating policyowner dividend scale announcement New dividend scale effective Jan. 1, 2013 Why the decrease for 2013 Detailed information important for advisors Updated
More informationMassMutual Whole Life Insurance
A Technical Overview for Clients and their Advisors MassMutual Whole Life Insurance The product design and pricing process Contents 1 Foreword 2 A Brief History of Whole Life Insurance 3 Whole Life Basics
More informationFinancial Information Package for the Fourth Quarter 2004. As at December 31, 2004
Financial Information Package for the Fourth Quarter 2004 As at December 31, 2004 TABLE OF CONTENTS PAGE HIGHLIGHTS 1 PROFITABILITY 3 Profit (2003 restated) Return on common shareholders' equity (2003
More informationUNDERSTANDING PARTICIPATING WHOLE LIFE INSURANCE
UNDERSTANDING PARTICIPATING WHOLE LIFE INSURANCE equimax CLIENT GUIDE ABOUT EQUITABLE LIFE OF CANADA Equitable Life is one of Canada s largest mutual life insurance companies. For generations we ve provided
More informationCanada Life participating life insurance Historical performance
Canada Life participating life insurance Historical performance Even during times of economic uncertainty Canada Life s participating account dividend scale interest rate has been relatively stable, compared
More informationArshil Jamal President and Chief Operating Officer Canada Life Capital Corporation
Scotia Capital Financials Summit September 8, 2011 Arshil Jamal President and Chief Operating Officer Canada Life Capital Corporation Cautionary Note regarding Forward-looking Information This report contains
More informationUnderstanding Sun Par Protector and Sun Par Accumulator
LIFE INSURANCE Participating whole life Understanding Sun Par Protector and Sun Par Accumulator POLICYHOLDER DIVIDENDS Sun Par Protector and Sun Par Accumulator are participating life insurance products.
More informationMML Bay State Life Insurance Company Management s Discussion and Analysis Of the 2005 Financial Condition and Results of Operations
MML Bay State Life Insurance Company Management s Discussion and Analysis Of the 2005 Financial Condition and Results of Operations General Management s Discussion and Analysis of Financial Condition and
More informationINSURANCE. Life Insurance. as an. Asset Class
INSURANCE Life Insurance as an Asset Class 16 FORUM JUNE / JULY 2013 Permanent life insurance has always been an exceptional estate planning tool, but as Wayne Miller and Sally Murdock report, it has additional
More informationTax-Exempt Rules for Life Insurance And the changes that are coming! Dominik Briault, FSA, FCIA Director, Actuarial Marketing Services
Tax-Exempt Rules for Life Insurance And the changes that are coming! Dominik Briault, FSA, FCIA Director, Actuarial Marketing Services This material is for information purposes only and shouldn t be construed
More informationThe Great-West Life Assurance Company. Management s Discussion and Analysis
The Great-West Life Assurance Company Management s Discussion and Analysis 2008 Table of Contents 2 Consolidated Operating Results 8 Consolidated Financial Position 11 Liquidity and Capital Management
More informationQUARTERLY REPORT 69 MONTHS RESULTS. Canada Life Financial Corporation E1251(6/09)-6/09 E1251(9/08)-9/08
QUARTERLY REPORT January January 1 to September 1 to June 30, 2009 2008 69 MONTHS RESULTS Canada Life Financial Corporation 2009 2008 E1251(9/08)-9/08 E1251(6/09)-6/09 Quarterly Report to Shareholders
More informationInformation. Canada s Life and Health Insurers. Canada s Financial Services Sector. Overview
Information Canada s Life and Health Insurers Canada s Financial Services Sector September 2002 Overview Canada s life and health insurance industry comprises 120 firms, down from 163 companies in 1990,
More informationParticipating life insurance
Participating life insurance Wealth Achiever Estate Achiever Canada Life offers two participating life insurance products from which to choose: Wealth Achiever and Estate Achiever. Both combine the strength
More informationTHE EMPIRE LIFE INSURANCE COMPANY
THE EMPIRE LIFE INSURANCE COMPANY Condensed Interim Consolidated Financial Statements For the six months ended June 30, 2013 Unaudited Issue Date: August 9, 2013 These condensed interim consolidated financial
More informationThe Empire Life Insurance Company
The Empire Life Insurance Company Condensed Interim Consolidated Financial Statements For the six months ended June 30, 2015 Unaudited Issue Date: August 7, 2015 DRAFT NOTICE OF NO AUDITOR REVIEW OF CONDENSED
More informationContinuing Education for Advisors
Continuing Education for Advisors knowledge continuing training educate online awareness participate Participating life insurance Learning objectives By the end of this course you will be able to: Explain
More informationPolicyholder Protection In Mutual Life Insurance Company Reorganizations
Policyholder Protection In Mutual Life Insurance Company Reorganizations Introduction This practice note was prepared by a work group organized by the Committee on Life Insurance Financial Reporting of
More informationLondon Life Insurance Company ANNUAL REPORT
London Life Insurance Company 2007 ANNUAL REPORT CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION This report contains some forward-looking statements about the Company, including its business operations,
More informationYour guide to participating life insurance SUN PAR PROTECTOR SUN PAR ACCUMULATOR
Your guide to participating life insurance SUN PAR PROTECTOR SUN PAR ACCUMULATOR Participate in your brighter future with Sun Life Financial. Participating life insurance is a powerful tool that protects
More informationUNIVERSAL LIFE INSURANCE. Flexible permanent protection
UNIVERSAL LIFE INSURANCE Flexible permanent protection A solution to your financial security needs and goals Universal life insurance from London Life At London Life, we create products to help you meet
More informationCONSOLIDATED FINANCIAL STATEMENTS. For the year 2008 CANADA LIFE FINANCIAL CORPORATION
CONSOLIDATED FINANCIAL STATEMENTS For the year 2008 CANADA LIFE FINANCIAL CORPORATION FINANCIAL HIGHLIGHTS (in $ millions except per share amounts) % Change For the years ended December 31 Premiums and
More informationThe Great-West Life Assurance Company. Management s Discussion and Analysis
The Great-West Life Assurance Company Management s Discussion and Analysis 2009 Table of Contents 2 Consolidated Operating Results 12 Consolidated Financial Position 16 Liquidity and Capital Management
More informationHEALTHCARE EMPLOYEES BENEFITS PLAN - MANITOBA - THE GROUP LIFE INSURANCE PLAN
Financial Statements of HEALTHCARE EMPLOYEES BENEFITS PLAN - MANITOBA - THE GROUP LIFE INSURANCE PLAN KPMG LLP Telephone (204) 957-1770 Chartered Accountants Fax (204) 957-0808 Suite 2000 One Lombard Place
More informationretirement income solutions *Advisor Design guide for Life s brighter under the sun What s inside Retirement income solutions advisor guide USE ONLY
Retirement income solutions advisor guide *Advisor USE ONLY Design guide for retirement income solutions What s inside Discussing retirement needs with clients Retirement income product comparison Creating
More informationThe Independent Order of Foresters Year ended December 31, 2013. financial highlights
The Independent Order of Foresters Year ended December 31, financial highlights Our financial strength Financial highlights for the year ended December 31, (All amounts are in Canadian dollars, unless
More informationInter-Segment Notes for Life Insurance Companies. Sound Business and Financial Practices
Guideline Subject: Category: for Life Insurance Companies Sound Business and Financial Practices No: E-12 Date: June 2000 Revised: July 2010 Introduction This guideline establishes OSFI s expectations
More informationGuide to participating whole life insurance
Advantage Plus Participating whole life insurance Guide to participating whole life insurance Table of Contents This guide was designed to provide you with helpful information about participating whole
More informationTHE EMPIRE LIFE INSURANCE COMPANY
THE EMPIRE LIFE INSURANCE COMPANY Condensed Interim Consolidated Financial Statements For the nine months ended September 30, 2013 Unaudited Issue Date: November 6, 2013 These condensed interim consolidated
More informationSun Life Financial reports first quarter results
Sun Life Financial reports first quarter results Note to Editors: All figures shown in Canadian dollars unless otherwise noted. TORONTO (May 7, 2009) Sun Life Financial Inc. (TSX/NYSE: SLF) reported a
More informationThe Empire Life Insurance Company
The Empire Life Insurance Company Annual Report 2013 This page has been left blank intentionally. Table of Contents 4 Financial Highlights 5 Message from the Chairman of the Board 6 Message from the President
More informationyour guide to equation gen IV
your guide to EQUATION GENERATION IV equation gen IV CLIENT GUIDE ABOUT EQUITABLE LIFE OF CANADA Equitable Life is the largest federally regulated mutual life insurance company in Canada. For generations
More informationLIFE INSURANCE. and INVESTMENT
INVESTMENT SAVINGS & INSURANCE ASSOCIATION OF NZ INC GLOSSARY OF LIFE INSURANCE and INVESTMENT TERMS 2 Accident Benefit A benefit payable should death occur as the result of an accident. It may be a stand-alone
More informationOPTIMAX. PRODUCT GUIDE Permanent Participating Life Insurance The future begins today FOR ADVISOR USE ONLY
OPTIMAX PRODUCT GUIDE Permanent Participating Life Insurance The future begins today FOR ADVISOR USE ONLY HIGHLIGHTS Premium Options Optimax 100 Optimax 20 Pay Coverage Options Single Joint First or Second
More informationCITY OF AVENTURA POLICE OFFICERS RETIREMENT PLAN FINANCIAL STATEMENTS SEPTEMBER 30, 2014, AND 2013
CITY OF AVENTURA POLICE OFFICERS RETIREMENT PLAN FINANCIAL STATEMENTS SEPTEMBER 30, 2014, AND 2013 CITY OF AVENTURA POLICE OFFICERS RETIREMENT PLAN FINANCIAL STATEMENTS SEPTEMBER 30, 2014, AND 2013 TABLE
More informationNEDGROUP LIFE FINANCIAL MANAGEMENT PRINCIPLES AND PRACTICES OF ASSURANCE COMPANY LIMITED. A member of the Nedbank group
NEDGROUP LIFE ASSURANCE COMPANY LIMITED PRINCIPLES AND PRACTICES OF FINANCIAL MANAGEMENT A member of the Nedbank group We subscribe to the Code of Banking Practice of The Banking Association South Africa
More informationCanada Life Financial Corporation ANNUAL REPORT
Canada Life Financial Corporation 2008 ANNUAL REPORT CORPORATE PROFILE Canada Life Financial Corporation (CLFC) was established in 1999. CLFC s principal subsidiary, The Canada Life Assurance Company,
More informationHow to Choose a Life Insurance Company *YP½PPMRK 4VSQMWIW A 2014 GUIDE THROUGH RELEVANT INDUSTRY INFORMATION
How to Choose a Life Insurance Company *YP½PPMRK 4VSQMWIW A 2014 GUIDE THROUGH RELEVANT INDUSTRY INFORMATION Because the most important people in your life will car, or computer, most people are completely
More informationMCAN MORTGAGE CORPORATION MANAGEMENT S DISCUSSION AND ANALYSIS OF OPERATIONS
MCAN MORTGAGE CORPORATION MANAGEMENT S DISCUSSION AND ANALYSIS OF OPERATIONS MARCH 31, 2016 MANAGEMENT S DISCUSSION AND ANALYSIS OF OPERATIONS This Management s Discussion and Analysis of Operations (
More informationCanadian Life Insurance Company Asset/Liability Management Summary Report as at: 31-Jan-08 interest rates as of: 29-Feb-08 Run: 2-Apr-08 20:07 Book
Canadian Life Insurance Company Asset/Liability Management Summary Report as at: 31Jan08 interest rates as of: 29Feb08 Run: 2Apr08 20:07 Book Book Present Modified Effective Projected change in net present
More informationWealth Achiever participating life insurance illustration Max 20
Wealth Achiever participating life insurance illustration Max 20 Canada Life's permanent participating life insurance gives you a foundation of basic cash value that is guaranteed, tax-advantaged growth,
More informationCanada Life Financial Corporation. Management s Discussion and Analysis. For the year 2014
Canada Life Financial Corporation Management s Discussion and Analysis For the year MANAGEMENT S DISCUSSION AND ANALYSIS FOR THE PERIOD ENDED DECEMBER 31, DATED: FEBRUARY 12, 2015 This Management s Discussion
More informationLifetime income benefit
Canada life segregated Funds Lifetime income benefit Guarantee your income for life Grow income don t allow it to decrease Financial strength and stability Canada Life, founded in 1847, was Canada s first
More informationThe Master Statement of Investment Policies and Objectives of The Lower Colorado River Authority Retirement Plan and Trust. Amended June 16, 2015
The Master Statement of Investment Policies and Objectives of The Lower Colorado River Authority Retirement Plan and Trust Amended June 16, 2015 Introduction The Lower Colorado River Authority ( LCRA )
More informationActuary s Guide to Reporting on Insurers of Persons Policy Liabilities. Senior Direction, Supervision of Insurers and Control of Right to Practice
Actuary s Guide to Reporting on Insurers of Persons Policy Liabilities Senior Direction, Supervision of Insurers and Control of Right to Practice September 2015 Legal deposit - Bibliothèque et Archives
More informationEmbedded Value 2014 Report
Embedded Value 2014 Report Manulife Financial Corporation Page 1 of 13 Background: Consistent with our objective of providing useful information to investors about our Company, and as noted in our 2014
More informationHEALTHCARE EMPLOYEES BENEFITS PLAN - MANITOBA - THE GROUP LIFE INSURANCE PLAN
Financial Statements of HEALTHCARE EMPLOYEES BENEFITS PLAN - MANITOBA - THE GROUP LIFE INSURANCE PLAN KPMG LLP Telephone (204) 957-1770 Chartered Accountants Fax (204) 957-0808 Suite 2000 One Lombard Place
More informationManagement Discussion and Analysis. For the three months ended March 31, 2014
Management Discussion and Analysis For the three months ended March 31, 2014 Dated: May 2, 2014 Trez Capital Mortgage Investment Corporation Interim Management Discussion and Analysis Table of Contents
More informationLifetime income benefit
Canada life segregated Funds Lifetime income benefit Guarantee your income for life Grow income don t allow it to decrease Financial strength and stability Founded in 1847, Canada Life TM was Canada s
More informationForward Looking Statements 2. Condensed Consolidated Financial Statements
Mutual of Omaha Insurance Company and Subsidiaries Executive Summary and Analysis of Financial Condition as of March 31, 2015 and December 31, 2014 and Results of Operations for the Three Months Ended
More informationUpdate on Mutual Company Dividend Interest Rates for 2013
Update on Mutual Company Dividend Interest Rates for 2013 1100 Kenilworth Ave., Suite 110 Charlotte, NC 28204 704.333.0508 704.333.0510 Fax www.bejs.com Prepared and Researched by June 2013 Near the end
More informationDumfries Mutual Insurance Company Financial Statements For the year ended December 31, 2010
Dumfries Mutual Insurance Company Financial Statements For the year ended December 31, 2010 Contents Independent Auditors' Report 2 Financial Statements Balance Sheet 3 Statement of Operations and Unappropriated
More informationKansas City 1Life Insurance Company
Kansas City 1Life Insurance Company 2011 First Quarter Report Includes our subsidiaries: Sunset Life Insurance Company of America Old American Insurance Company Sunset Financial Services, Inc. Post Office
More informationLifetime income benefit
London Life segregated policies Lifetime income benefit Guarantee your income for life GUARANTEES PROTECTION STRENGTH Financial strength and stability London Life, together with Great-West Life and Canada
More informationLife insurance solutions for. business owners
Life insurance solutions for business owners Life insurance solutions for business owners What s the best life insurance for business owners? It depends on where you see yourself in the future and at which
More informationA Technical Guide for Individuals. The Whole Story. Understanding the features and benefits of whole life insurance. Insurance Strategies
A Technical Guide for Individuals The Whole Story Understanding the features and benefits of whole life insurance Insurance Strategies Contents 1 Insurance for Your Lifetime 3 How Does Whole Life Insurance
More informationYOUR GUIDE TO EQUILIFE LIMITED PAY UNIVERSAL LIFE
YOUR GUIDE TO EQUILIFE LIMITED PAY UNIVERSAL LIFE equilife CLIENT GUIDE ABOUT EQUITABLE LIFE OF CANADA Equitable Life is one of Canada s largest mutual life insurance companies. For generations we ve provided
More informationCANADIAN TIRE BANK. BASEL PILLAR 3 DISCLOSURES December 31, 2014 (unaudited)
(unaudited) 1. SCOPE OF APPLICATION Basis of preparation This document represents the Basel Pillar 3 disclosures for Canadian Tire Bank ( the Bank ) and is unaudited. The Basel Pillar 3 disclosures included
More informationManagement s Discussion and Analysis. For the year 2013
Management s Discussion and Analysis For the year MANAGEMENT S DISCUSSION AND ANALYSIS FOR THE PERIOD ENDED DECEMBER 31, DATED: FEBRUARY 13, 2014 This Management s Discussion and Analysis (MD&A) presents
More informationCanada Life Financial Corporation. Management s Discussion and Analysis. For the year 2011
Canada Life Financial Corporation Management s Discussion and Analysis For the year MANAGEMENT S DISCUSSION AND ANALYSIS FOR THE PERIOD ENDING DECEMBER 31, DATED: FEBRUARY 9, 2012 This Management s Discussion
More informationWhole Life Insurance. John Perre Regional Life Sales Manager
Introduction to Whole Life Insurance John Perre Regional Life Sales Manager Agenda Introduction to Equitable Life Stock company VS a mutual company Benefits of dealing with a Mutual Company Introduction
More informationOctober 2015. The Canada Life Assurance Company Information folder ESTATE PROTECTION
The Canada Life Assurance Company Information folder October 2015 The Canada Life Assurance Company is the sole issuer of the individual variable annuity policy described in this information folder. This
More informationRating Methodology for Domestic Life Insurance Companies
Rating Methodology for Domestic Life Insurance Companies Introduction ICRA Lanka s Claim Paying Ability Ratings (CPRs) are opinions on the ability of life insurance companies to pay claims and policyholder
More informationForward Looking Statements 2. Condensed Consolidated Financial Statements
Mutual of Omaha Insurance Company and Subsidiaries Executive Summary and Analysis of Financial Condition as of September 30, 2015 and December 31, 2014 and Results of Operations for the Nine Months Ended
More informationAppendix. Debt Position and Debt Management
Appendix Debt Position and Debt Management BUDGET '97 BUILDING ALBERTA TOGETHER Table of Contents Debt Position and Debt Management... 349 The Consolidated Balance Sheet and Net Debt... 350 Liabilities...
More informationPractice Education Course Individual Life and Annuities Exam June 2014 TABLE OF CONTENTS
Practice Education Course Individual Life and Annuities Exam June 2014 TABLE OF CONTENTS THIS EXAM CONSISTS OF EIGHT (8) WRITTEN ANSWER QUESTIONS WORTH 57 POINTS AND FIVE (5) MULTIPLE CHOICE QUESTIONS
More informationLIFE INSURANCE CAPITAL FRAMEWORK STANDARD APPROACH
LIFE INSURANCE CAPITAL FRAMEWORK STANDARD APPROACH Table of Contents Introduction... 2 Process... 2 and Methodology... 3 Core Concepts... 3 Total Asset Requirement... 3 Solvency Buffer... 4 Framework Details...
More informationHow to Choose a Life Insurance Company
How to Choose a Life Insurance Company A Guide through Financial Data and Industry Information The Guardian Life Insurance Company of America New York, NY 10004-4025 Table of Contents Page 1. Mutuality...
More informationKansas City 4Life Insurance Company
Kansas City 4Life Insurance Company 2009 Fourth Quarter Report Includes our subsidiaries: Sunset Life Insurance Company of America Old American Insurance Company Sunset Financial Services, Inc. Post Office
More informationPractice Education Course Individual Life and Annuities Exam June 2011 TABLE OF CONTENTS
Practice Education Course Individual Life and Annuities Exam June 2011 TABLE OF CONTENTS THIS EXAM CONSISTS OF SEVEN (7) WRITTEN ANSWER QUESTIONS WORTH 51 POINTS AND EIGHT (8) MULTIPLE CHOICE QUESTIONS
More informationThe Canada Life Assurance Company ANNUAL REPORT
The Canada Life Assurance Company 2007 ANNUAL REPORT CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION This report contains some forward-looking statements about the Company, including its business
More informationBASEL III PILLAR 3 DISCLOSURES. March 31, 2014
BASEL III PILLAR 3 DISCLOSURES Table of Contents 2 Table 1. Scope of application HomEquity Bank (the Bank) is a federally regulated Schedule I bank, incorporated and domiciled in Canada. The Bank s main
More informationHSBC Mutual Funds. Simplified Prospectus June 15, 2016
HSBC Mutual Funds Simplified Prospectus June 15, 2016 Offering Investor Series, Advisor Series, Premium Series, Manager Series and Institutional Series units of the following Funds: Cash and Money Market
More informationSimplified Prospectus
Simplified Prospectus April 3, 2014 BMO Security Funds BMO Money Market Fund (series A, F, I, Advisor Series and Premium Series) BMO Income Funds BMO Bond Fund (series A, F, D, I, NBA, NBF and Advisor
More informationBrookfield financial Review q2 2010
Brookfield financial Review q2 2010 Overview Operating cash flow and gains totalled $327 million in the second quarter or $0.53 per share compared to $294 million in the prior year. This brings operating
More informationKansas City 2Life Insurance Company
Kansas City 2Life Insurance Company 2011 Second Quarter Report Includes our subsidiaries: Sunset Life Insurance Company of America Old American Insurance Company Sunset Financial Services, Inc. Post Office
More informationMillennium universal life insurance
Millennium universal life insurance Permanent protection that can change with you Millennium universal life insurance Over the years, you ve worked hard to build the lifestyle you enjoy today. You ve made
More informationRating Methodology by Sector. Life Insurance
Last Updated: March 26, 2012 Rating Methodology by Sector Life Insurance *This rating methodology is a modification of the rating methodology made public on July 13, 2011, and modifications are made to
More informationAllstate Life Insurance Group Combined Management Discussion and Analysis For the Year Ended December 31, 2007
NAIC Group Code 0008 NAIC Company Code 60186 Employer s ID Number 36-2554642 Allstate Life Insurance Group Combined Management Discussion and Analysis For the Year Ended December 31, 2007 The Allstate
More informationThe Lafayette Life Insurance Company Agents Products Quiz The Marquis Series of Products and Other Annuities
There are different types of annuity products that can serve different needs. Even within a particular type of annuity product category, for example a fixed indexed annuity, the benefits and features can
More informationParticipating Account Management and Disclosure to Participating Policyholders and Adjustable Policyholders
Guideline Subject: to Participating Policyholders and Adjustable Policyholders Category: Sound Business and Financial Practices No: E-16 Date: November 2011 Introduction Life insurance companies have issued
More information'&7%#6+10#.016' DISCLOSURE OF ACTUARIAL INFORMATION BY LIFE INSURANCE COMPANIES COMMITTEE ON THE ROLE OF THE APPOINTED/VALUATION ACTUARY
'&7%#6+10#.016' Educational notes do not constitute standards of practice. They are intended to assist actuaries in applying standards of practice in specific matters. Responsibility for the manner of
More informationInvesting With Whole Life Participating Insurance For Affluent Families
Investing With Whole Life Participating Insurance For Affluent Families By Norm Ayoub, Director, Business Advisory Board HighView Financial Group November 2011 Overview: The foundation of any good financial
More informationLife Assurance (Provision of Information) Regulations, 2001
ACTUARIAL STANDARD OF PRACTICE LA-8 LIFE ASSURANCE PRODUCT INFORMATION Classification Mandatory MEMBERS ARE REMINDED THAT THEY MUST ALWAYS COMPLY WITH THE CODE OF PROFESSIONAL CONDUCT AND THAT ACTUARIAL
More informationStatement of Investment Policies and Goals. Saskatchewan Pension Plan Annuity Fund. As of January 1, 2015. APPROVED on this 9 th day of December, 2014
Statement of Investment Policies and Goals Saskatchewan Pension Plan Annuity Fund As of January 1, 2015 APPROVED on this 9 th day of December, 2014 Tim Calibaba Chair on behalf of the Board of Trustees
More informationDividend Determination for Participating Policies
Educational Note Dividend Determination for Participating Policies Working Group on Dividend Determination January 2014 Document 214008 Ce document est disponible en français 2014 Canadian Institute of
More informationFinancial security protection tailored for your lifestyle
G R E A T - W E S T L I F E U n i v e r s a l l i f e i n s u r a n c e Financial security protection tailored for your lifestyle F A L L 2 0 0 6 G r e a t - W e s t u n i v e r s a l l i f e i n s u
More informationBasel II, Pillar 3 Disclosure for Sun Life Financial Trust Inc.
Basel II, Pillar 3 Disclosure for Sun Life Financial Trust Inc. Introduction Basel II is an international framework on capital that applies to deposit taking institutions in many countries, including Canada.
More informationControls and accounting policies
Controls and accounting policies Controls and procedures Management s responsibility for financial information contained in this Annual Report is described on page 92. In addition, the Bank s Audit and
More informationKansas City 2Life Insurance Company
Kansas City 2Life Insurance Company 2012 Second Quarter Report Includes our subsidiaries: Sunset Life Insurance Company of America Old American Insurance Company Sunset Financial Services, Inc. Post Office
More information