Assumption Life: Mastering the Art of Thriving in an Uncertain Economy
At its annual meeting today, Assumption Life announced that it had posted record earnings of nearly $125 million in 2009, an increase of over 32% over the previous year. The company also delivered record results in terms of net income, total policyholder equity and new sales in individual insurance. Assumption Life has thus continued to thrive amid the challenges of an uncertain economy.
In relation to 2008, Assumption Life posted:
- a 47.3% increase in net income to $6.3 million;
- an 8.8% increase in total policyholder equity to $88 million;
- and a 36.12% increase in new sales of individual life insurance to $6 million.
Total assets under management by the company exceeded the billion dollar mark.
"Our prudent financial management and adoption of a formal risk management program helped to minimize our exposure to risk and maintain our profitability and growth," stated Denis Losier, Assumption Life’s president and CEO. Meanwhile, the A.M. Best agency confirmed Assumption Life’s financial health in 2009 by awarding the Company for yet another year a rating of A- (excellent).
Major Corporate Projects
Assumption Life purchased a portion of the shares of Louisbourg Investments, which offers investment management and financial planning services, held by Montrusco-Bolton. "We increased our control position from 51% to 60% of shares," explained Mr. Losier, "while managers at Louisbourg also became 25% shareholders."
With respect to product development, Assumption Life made a number of enhancements in 2009 to its permanent life insurance products, notably Golden Protection and Golden Protection Plus, in addition to launching the new participating whole life insurance product ParPlus and ParPlus Junior. "Demand for participating life insurance is very high, and yet its availability remains limited because only mutual companies such as ours can offer it," said Mr. Losier.
Lastly, in the area of technological development, significant resources were allocated for the tenth consecutive year toward upgrading Assumption Life’s electronic systems. Investment in this area has proved especially important for the Company, 61% of whose new sales in 2009 were made outside of Atlantic Canada. "Our online application system for life insurance and online submission system for group insurance means that we can go wherever our clients, representatives and brokers are right across Canada," said Mr. Losier. In 2009, 67% of our new sales in life insurance came from online applications.
Recognized as a Model Corporate Citizen
Assumption Life continues to excel. It has been named one of the 100 best places to work in Canada and among the 25 best in Atlantic Canada by Toronto-based Mediacorp Canada Inc. It also ranks 33rd in the top 101 companies in Atlantic Canada and second in Progress Magazine’s list of the 10 Atlantic Canadian companies with the best internal practices.
What Does the Future Hold?
"We hope that 2010 will be a year of continued economic recovery," explained Mr. Losier. "However, we need to be vigilant, as the Canadian economy remains volatile. It will be important to take into account the impact of this volatility on companies such as ours and incorporate this into our development strategies to maintain current growth."
In the meantime, Assumption Life’s excellent financial health puts it in an enviable position as the new decade begins. "Our main objective in 2010 will be to continue making it as easy as possible for both our clients and our producers to do business with us," concluded Mr. Losier. "Every component of our strategic plan -- every strategy, every action plan -- will be designed with this objective in mind."
Founded in 1903, Assumption Life offers a full range of products, including life and critical illness insurance, group insurance, travel insurance, financial services and mortgage loans, throughout all ten Canadian provinces. The company’s main office is in Moncton, New Brunswick.
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Information:
Marie-Josée Plourde
Communications Agent
Telephone: 506-853-5583
mariejosee.plourde@assumption.ca
