Annual General Meeting of La Capitale Civil Service Mutual Net income after tax of $50.5 million for 2009

Quebec City, March 23, 2010 - The Annual General Meeting of La Capitale Civil Service Mutual was held for its Mutual members at the Quebec City Convention Centre on March 22.

René Rouleau, Chairman of the Board and Chief Executive Officer of La Capitale Civil Service Mutual, gave an overview of the financial year ended December 31, 2009. He was proud to highlight the following results :

• In spite of the difficult economic climate at the start of 2009, La Capitale had an exceptional year, growing its assets to $3.4 billion.
• The Mutual posted net income of $50.5 million and its members' equity grew to $524.7, for a return of 19.6%.
• The number of Mutual members grew from 216,548 to 220,195, an increase of 3,647.
• Dividends paid to Mutual members totalled $12.2 million.
• La Capitale's real estate division was highly active with the inauguration of its Delta 3 building in Quebec City, as well a new head office building for its subsidiaries Penncorp Life Insurance Company and York Fire & Casualty Insurance in Mississauga. In addition, after several years of planning, the expansion of La Capitale Financial Group's Head Office began in the fall of 2009.

Mr. Rouleau also underscored the organization's strong performances in both of the organization's main operating sectors, Life and Health Insurance and Property and Casualty Insurance. In the Life and Health Insurance Sector, La Capitale continued to grow its share of the Quebec market and strengthen its position in the rest of Canada, closing the year with operating income, including non-controlling interests, of $40.4 million and assets of $2.5 billion.

The company's Property and Casualty Insurance Sector also had an excellent year, posting consolidated net income, including non-controlling interests, of $20.4 million and generating a 22.1% return on equity. Acquired in 2008, York Fire & Casualty Insurance has helped La Capitale grow its presence in the Canadian property and casualty insurance sector and has provided the company with a foothold in the pan-Canadian market.

Mr. Rouleau also reiterated his firm belief in La Capitale's mutualist values and management style, which served to protect the assets of its Mutual members during the recent economic difficulties. He thanked the Mutual members for placing their trust in La Capitale and acknowledged the hard work of the organization's 2,740 employees, agents and advisors throughout the year.

The next Annual General Meeting of La Capitale Civil Service Mutual will be held on April 4, 2011 at the Quebec City Convention Centre.