here’s what counted in 2012static.lacapitale.com/pdf/en/apropos/heres_what_counted2012.pdf ·...

Here’s what counted in 2012Key facts and figures for the year

Our values

PEOPLE FIRST

To take care fi rst and foremost of the well-being of our people by demonstrating respect and empathy and by embracing practices based on our fundamental principles of equality, fairness and democracy.

INTEGRITY AND TRANSPARENCY

To provide Mutual members, clients and employees with an organization that applies the principles of sound governance and management by adopting strict standards of integrity and ethics at all levels and by demonstrating transparency in our management practices.

CUSTOMER-CENTRIC MINDSET

To off er attentive service at all times, characterized by a commitment to the client, an ongoing desire to provide appropriate information and advice, and fi nancial solutions tailored to what clients feel counts for their fi nancial security.

COMPANY SUSTAINABILITY

To ensure profi table growth of the organization through the dynamic and prudent use of its fi nancial capacity to ensure business continuity and a legacy that will enrich the lives of future generations.

SOCIAL INVOLVEMENT AND RESPONSIBILITY

To integrate and promote the values of mutual aid and solidarity, which are the foundations of mutualism, and to encourage community and humanitarian work and foster sustainable development.

VALUING THE ROLE OF PUBLIC SERVICE EMPLOYEES

To highlight the value and contributions of public service employees, who play an active role in the social, cultural and economic development of Quebec.

In keeping with its long tradition of efficient and rigorous management, La Capitale once again skillfully navigated its way through 2012. In a challenging environment featuring anemic interest rates and fl uctuating fi nancial markets, La Capitale continued to grow its business and strengthen its position in its privileged niche market at the heart of the Quebec public sector, as well as in the other markets it serves.

We carry out our mission of working with people by providing access to personalized products in order to build, protect and value what they feel counts for their individual and collective security.

All throughout its history, our Mutual has based its every action on this commitment. In its own way, and true to its values of mutualism, La Capitale continues to focus on what matters the most—its clients. The current economic cycle is bringing its fair share of concerns and emerging needs to which we must respond with imaginative solutions—at the best possible cost.

With its clear people-fi rst orientation, mutualism represents a proven, relevant, modern and robust model, now more than ever. Since it has a long-term outlook focused on sustainability, mutualism off ers greater fl exibility in the face of temperamental markets. We are

better positioned to adapt to today’s economy, innovate and help our clients.

La Capitale has a lucid view of the sizable challenges before us. We will continue to use the company’s full leverage to innovate our products and services, counter the eff ects of low interest rates, expand our distribution networks and stay abreast of technological developments, which can be quite costly, but are vital to smooth business practices.

doing more with less requires ingenuity and agility. Fortunately, La Capitale is equipped with these two qualities vital to its longevity.

In spite of the tough economic climate,

last year’s results are a further demonstration

of our sound approach.

René RouleauChairman of the Board and Chief executive Offi cer

A model of strength

and stability

$73.1M

2012 Key FACTS And FIGuReS

NET INCOMEup 11.2%

MeSSAGe TO MuTuAL MeMBeRS

lacapitale.com/annualreport

VIdeO

2 Key FACTS And FIGuReS FOR THe yeAR

PARTICIPATINGPOLICYHOLDERDIVIDENDS

$12.8M

“At La Capitale, clients are always at the forefront of our priorities. All our eff orts are directed at satisfying their needs.”

2012 $4.7B

2011 $4.3B

2010 $3.9B

ASSETS

$4.7B

RETURN ON EQUITY

NUMBER OF CONTRACTS AND CERTIFICATES IN FORCE

1,783,289

10.5%

NUMBER OF MUTUAL MEMBERS

236,387

EQUITY

$767.3M

TOTAL CONSOLIDATED INCOME

$1.6B

CONSOLIDATED INVESTMENT INCOME

$193.3M

up 8.2%

3Key FACTS And FIGuReS FOR THe yeAR

The Life and Health Insurance and Financial Services sector comprises fi ve of the nine companies which make up La Capitale Financial Group. In many ways, the results from this sector have been nothing short of remarkable.

Some of the success is attributable to the outstanding eff orts of Penncorp and La Capitale Life Insurance Advisors and Agents, whose excellent performance helped us achieve unprecedented sales in individual life and health insurance. Our network of partner brokers experienced sustained growth with sales up by 50%.

In the savings area, new deposits grew by some $147.8 million.

In november 2012, La Capitale acquired all of the Promutuel Life shares, a company in which it has held a 50% interest since 2007. This transaction represents an important advantage in growing our business, giving us access to an additional distribution network.

In group insurance, sales rose by an exceptional 48.5%, notably as a result of a major transaction in Ontario.

Our customer-centric approach is a priority for La Capitale. Consequently we are constantly looking to improve our systems and procedures, to ensure we

are positioned to off er top-notch service and products tailored to our customers’ needs. A great example of how we are enhancing our customer service is our implementation of measures to reduce processing times.

The diversifi cation of our products and services, our client-oriented approach and the ingenuity and commitment of our people are all assets that will fuel our progress.

A fruitful year, defi ned by new highs in

practically all our lines of business.

Growth and profi tability

surpassing our ambitious goals

$34.2M


NET INCOME

THe yeAR In ReVIeW


VIdeO

Steven RossPresident and Chief Operating Offi cerLife and Health Insurance and Financial Services

LIFe And HeALTH InSuRAnCe And FInAnCIAL SeRVICeS

up 12%


NEW MORTGAGE LOANSup 13.2%

Savings and Investments UNDER ADMINISTRATION

$868.7Mup 11.7%

Individual Insurance Premium and deposits SALES

$166.7M

Group InsuranceINFORCE PREMIUMS

$522.6Mup 15.5%

Group Insurance SALES

$113.4Mup 48.5%

FINANCIAL EDUCATION SESSIONS

557111 more sessions

OUR INDUSTRY STANDING IN CANADA

13th

OUR INDUSTRY STANDING IN QUEBEC

7th

up 20%

2010 $612M

2009 $565M

2012 $731M

2011 $658M

2008 $529M

ACCUMULATED PREMIUM REVENUES

$731M up 11%

“We continued our growth and increased our market share across the country.”

$131.5M


The consolidated net income for 2012 constitutes a new record for our sector. These excellent results are a direct refl ection of strong performance by La Capitale and L’unique, and the increasingly signifi cant contribution made by unica, particularly in home insurance.

Gross written premium volume for La Capitale General Insurance reached $508.9 million based on progress in all its business activities as well as in the Quebec public sector and the greater region of Montreal. L’unique General Insurance reported $152.6 million in gross written premiums, excluding a block of business closed outside of Quebec. This surpassed last year’s strong performance.

Strong results in the auto insurance sector in Quebec enabled La Capitale and L’unique to lower consumer rates for a tenth consecutive year.

unica Insurance’s gross written premiums attained $93.7 million and its portfolio is now in line with our targets for quality business.

At La Capitale, we feel we should all think about things from the client’s perspective. An independent study rating client satisfaction demonstrated that our approach is both appropriate and eff ective.

We will continue to place our clients’ interests at the heart of what we do in 2013. It is with

this in mind that we are now off ering new personalized forms for Home Insurance. Our goal is ensuring that our clients have a gratifying experience, regardless of the method they choose to access our products and services. We are committed to working closely with our distribution partners to improve their off ering. We are relying on their know-how as well as the passion and expertise of our employees to attain these goals.

The Property and Casualty Insurance sector,

which includes La Capitale General Insurance,

L’unique General Insurance and unica Insurance,

had an excellent year.

Record profi ts and outstanding

satisfaction rates

$38.9M


NET INCOME

THe yeAR In ReVIeW


VIdeO

Constance LemieuxPresident and Chief Operating Offi cer, Property and Casualty Insurance

PROPeRTy And CASuALTy InSuRAnCe

up 11%


LEISURE VEHICLEINSURANCE POLICYISSUED

100,000th

INCREASE IN GROSS WRITTEN PREMIUMSLa CapitaleGeneral Insurance

3%

RETURN ON EQUITY

14.2%

HOW WE RANK IN THE INDUSTRY IN QUEBEC

3rd

INCREASE INGROSS WRITTENPREMIUMSL’unique General Insurance

13.8%

INCREASE IN COMMERCIAL WRITTEN PREMIUMSunica Insurance

19%

2010 $720.7M

2009 $670.0M

2012 $756.6M

2011 $743.5M

2008 $538.2M

CONSOLIDATED PREMIUM REVENUES

$756.6M up 1.8%

“Simply put, our goal is to off er our clients much more than insurance coverage.”


The bottom line... is you.

Focus on recruitmentIn 2012, a new visual platform and recruitment strategy were developed, using social media.

§ More visibility

§ More attractive

§ enhanced image


OuR HuMAn ReSOuRCeS

TRAINING HOURS44,000

PERMANENT POSITIONS FILLED

238

PAYROLL INVESTED IN TRAINING

3%

A healthy, stimulating

and respectful workplace

OUR HUMAN ASSETS

Sectors employees

Life and Health Insurance and Financial Services 961

Property and Casualty Insurance 1,188

Shared Services 319

TOTAL 2,468

52PROMOTIONS

FEMALE MANAGERS

60%


EMPLOYEE PARTICIPATION rate in various humanitarian causes

DONATED to three charities

48%

$150,000

Concrete actions contributing to the economic and social well-being of individuals and communities.

In 2012, close to 1,200 employees

contributed to a cause they

took to heart


OuR eMPLOyeeS’ COMMunITy InVOLVeMenT



Sharing: a fundamental

mutualist value

Young Musicians of the World which helps disadvantaged youth develop their musical talents. La Capitale hosts its benefi t shows throughout the year.

Fondation Le Grand Chemin which is dedicated to assisting adolescents with alcohol, drug and gambling addiction.

Fondation Élan which provides rehabilitation to persons with congenital or acquired physical disabilities.

La Tablée des Chefs which fi ghts hunger by nourishing less privileged families and youth and by giving them culinary autonomy for their daily lives.

La Maison Dauphine which off ers a place of refuge and a future to more than 400 vulnerable youth with multiple issues.

L’Institut d’administration publique de Québec (IAPQ)/ Prix d’excellence whose Awards for excellence, acknowledging the outstanding service of public service employees, were presented by La Capitale.

General Roméo Dallaire Foundation which makes it possible for underprivileged children to attend summer camps, encouraging them to reach their full potential.

Domaine Forget which off ers less priviliged youth the opportunity to participate in its internationally recognized music academy.

McGill University Health Centre which sponsors the MuHC director General’s Award for excellence in nursing. La Capitale also supports the MuHC Quarter Century Club, which honours employees with 25 years of service or more.

Through our foundation, we contribute to the well-being and prosperity of the community by supporting causes that:

§ enhance quality of life

§ Value the role of employees in the Quebec public and parapublic sectors

§ Promote mutualism

$1.1MGIVEN BACK TO THE COMMUNITY

LA CAPITALe FInAnCIAL GROuP FOundATIOn

NUMEROUS ORGANIZATIONS SUPPORTED, INCLUDING:


PEE-WEE: THE WINTER THAT CHANGED MY LIFE

1st Francophone family fi lm shot in 3d.

More than 310,000 fi lm-goers between December 2012 and March 2013.

SAMURAI: MASTERWORKS FROM THE ANN AND GABRIEL

BARBIER-MUELLER COLLECTIONA unique collection that provides an insight into the world and history of the samurai, presented

at the Musée de la civilisation de Québec.

481,096 visitors

BIBLIOTHÈQUE ET ARCHIVES NATIONALES DU QUÉBEC (BAnQ)Major partner for fi ve years. The busiest library in north America.

More than 2,587,205 visitors in 2012.

An increasinglyrecognized

brand


MAIn SPOnSORSHIPS


The expansion of La Capitale’s head offi ce paid tribute to the history of Quebec City’s Parliament Hill and honoured its Mutual members.

La Capitale at the centre of

Quebec City’s architectural

heritage

1,490


VIdeOlacapitale.com/building

Completing the expansion and renovation of our head offi ce was undoubtedly one of the highlights of 2012. This ambitious project, at the very heart of Quebec City’s Parliament Hill, the workplace of our primary clients, is evocative of the vitality that drives La Capitale. Its sleek lines, perfect integration into its historic setting, together with the quality of its interior design,

have made the building a new beacon on Parliament Hill.

To date, 1,490 employees who were scattered among several buildings in Quebec City now work under the same roof in the new head offi ce, resulting in considerable effi ciencies for our group.

321, 387sq. ft.

SQUARE FOOTAGE

10 stories (addition)

THE BUILDINGACCOMMODATES

employees

COMPLeTIOn OF THe HeAd OFFICe eXPAnSIOn PROJeCT


WATER CONSUMPTION

ON TARGET

DEMOLITION AND CONSTRUCTION MATERIAL

RECYCLED MATERIAL

EXISTING FURNISHINGS

ENERGY CONSUMPTION

reduced by

work completed in

recycled at

usage of

recovered at

reduced by

§ exceptional natural lighting and spectacular views

§ use of FSC-certifi ed wood

§ Temporary holding basins and sediment traps to fi lter muddy construction water

§ Reduction of heat islands by adding green roofs

§ Superior air quality

§ Reduction of airborne contaminants

§ Reduction of ozone layer depletion through refrigerant selection and management

§ Interior bicycle racks, showers and changing rooms promote alternative modes of transportation

§ Proximity to public transit

§ environmentally friendly cleaning methods

40%

39 months

75%

15%

70%

55%

BUILDING FEATURES



A complete range of products and

services tailored to our clients’ needs

OuR PROduCT And SeRVICe OFFeRInG

Individual Insurance Life InsuranceHealth and disability Insurance

Group InsuranceLife InsuranceHealth and disability Insurance

Financial ServicesSavings productsInvestment productsMortgage loans

Auto Insurance

Home Insurance

Leisure Vehicle Insurance

Commercial Insurance

Legal Access

Life and Health Insurance and Financial Services

Property andCasualty Insurance


For a full list of our products and services, visit www.lacapitale.com


We listen to our clients


OuR CuSTOMeR-CenTRIC MIndSeT

At La Capitale, we feel we should all think about things from the client’s perspective.That’s why in 2012, we adopted new ways of improving our customer service. Maintaining high quality interactions with our Mutual members and all of our clients is of the utmost importance to us, because they are the very essence on which our business is founded.

Improved processing time

(savings, life insurance, mortgage loans, group insurance benefi ts, death

benefi ts)

Psychological support services to address

problems arising after a property and casualty loss

Client satisfaction measured

New branch offi ces opened

Establishment of a complaint register

La Capitale on social networks


AlmaAlma

CalgaryCalgary

EdmontonEdmonton

SaskatoonSaskatoon

ReginaRegina

Winnipeg

London

Mississauga Toronto

Barrie

St. Catharines

SaguenayJonquière

BedfordBedford

Sherbrooke

Trois-Rivières

Quebec CityQuebec City

Brossard

Granby

DrummondvilleDrummondville

Rouyn-NorandaRouyn-Noranda

GatineauGatineau

SurreySurrey

RimouskiRimouski

Blainville Anjou

Sept-Îles

Baie-Comeau

Pointe-Claire

MontrealLongueuil

Laval

Manotick

Property and Casualty Insurance

BRANCH OFFICES

Life and Health Insurance

Greater Montreal and Quebec City areas

A Canada-wide distribution network

La Capitale Financial Group

Head Office

625 Saint-Amable St Quebec QC G1R 2G5 418 643-3884 or 1 800 463-5549

29

519

84 11

2,854Financial Security Advisors and Partner Agents

General Agents Third Party Administrators

Independent Insurance Brokers

Financial Centres and Branch Offices



AlmaAlma

CalgaryCalgary

EdmontonEdmonton

SaskatoonSaskatoon

ReginaRegina

Winnipeg

London

Mississauga Toronto

Barrie

St. Catharines

SaguenayJonquière

BedfordBedford

Sherbrooke

Trois-Rivières

Quebec CityQuebec City

Brossard

Granby

DrummondvilleDrummondville

Rouyn-NorandaRouyn-Noranda

GatineauGatineau

SurreySurrey

RimouskiRimouski

Blainville Anjou

Sept-Îles

Baie-Comeau

Pointe-Claire

MontrealLongueuil

Laval

Manotick


BRANCH OFFICES

Life and Health Insurance

Greater Montreal and Quebec City areas

20

198

460Branch Offices

Affiliated Agents

Brokerage Firms



A culture of integrity, fairness and transparency


BOARd OF dIReCTORS

(from left to right)

Danielle Chevrette, Marie-Josée Linteau, Richard Fiset, Nikolas Ducharme, Louise Potvin, François Latreille, Danielle Poiré

La CapitaleCivil Service Mutual

236,387 Mutual members

La Capitale Civil Service Insurer

La Capitale Financial Services

La Capitale Insurance and Financial Services

Penncorp Life Insurance Company

AGA Financial Group

La Capitale MFQ Real estate Management

La Capitale General Insurance

L’unique General Insurance

unica Insurance


Property andCasualty Insurance

La Capitale Financial Group

ORGAnIZATIOnAL PROFILe


SenIOR MAnAGeMenT


Steven Ross, C. Adm.

President and Chief Operating O� cerLa Capitale Civil Service InsurerLa Capitale Insurance and Financial ServicesPenncorp Life Insurance Company

Éric Marcoux, FSA, FCIA

Executive Vice-PresidentLa Capitale Insurance andFinancial Services


Constance LemieuxPresident and Chief Operating O� cer, La Capitale General Insurance

Mario Cusson, CA, MBA

President and Chief Operating O� cer, L’Unique General Insurance

Martin Delage, BA, CHRP

President and Chief Operating O� cer, Unica Insurance

René RouleauChairman of the Board and Chief Executive O� cer

Marie-Josée GuéretteExecutive Vice-President Corporate A� airs

Marthe Lacroix, FCIA, FCAS

Executive Vice-PresidentFinance, Real Estate,and Technological Infrastructure

René Rouleau, Chairman, Dominique Dubuc, Vice-Chairman, Alain Brière,Josée Germain, François Jutras, outgoing, Jean-Paul Beaulieu, outgoing


La Capitale is proud to abide by “green” principles in its various business lines.

Please recycle this document after use.

This document is printed on paper manufactured with 55% post-consumer fibres using vegetable-based inks, which are highly water soluble, biodegradable and non-toxic, in order to reduce the use of solvents.

For information about La Capitale, please call 418 643-3884 or 1 800 463-5549, or visit our website at lacapitale.com.

55%

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