Sustained growth and solid performance

71st Annual General Meeting La Capitale Civil Service Mutual

Quebec City, April 2, 2012 – La Capitale Civil Service Insurer held its 71st Annual General Meeting at the Quebec City Convention Centre on Monday, April 2, 2012. Mr. René Rouleau, Chairman of the Board and Chief Executive Officer, announced that La Capitale had experienced sustained growth and very solid performance in 2011. "At the end of last year, the Mutual was maintaining its growth momentum, with $1.7B in total income, a 9.3% increase over the results obtained in 2010," observed Mr. Rouleau.

He went on to say that the Mutual now has $4.3B in assets, an increase of 10.5% over last year. The Mutual's net income increased to $65.7M in 2011, $50.5M of which will be paid directly to its members and participating policyholders. It now has $768.7M in total equity capital, which indicates a return of 9.3%. Approximately $13M in total dividends was paid to policyholders.

"These excellent results stem from a unique client-centric approach, the diversity and quality of our products and services, the great accessibility of our distribution channels, and the professionalism of our advisors, agents and business partners," added the Mutual's Chairman and CEO.

Mr. Rouleau also underscored the strong performances of the organization's two main divisions.


Life and Health Insurance and Financial Services
Energetic growth and very satisfactory profitability

This division, which includes the six subsidiaries of La Capitale Financial Group, continued to experience substantive growth in 2011, which allowed it to achieve very satisfactory profitability with total income of $926.7M. This growth resulted in an increase of nearly 10% over 2010 and $30.6M in net profit.

Mr. Rouleau pointed out that these results were obtained in spite of a difficult economic climate. Interest rates had dropped to historic levels, prompting the division to increase its reserves. This situation represents a major challenge for life and health insurers, given their long-term commitments toward insured. "If we hadn't decided to bolster our policy reserves, the Life and Health Insurance and Financial Services division would have had unprecedented profitability in 2011," he added.

2011 at a glance:

  • New sales of individual insurance and financial services earned us $139.8M in insurance premiums and deposits.
  • A 69% increase in Group Insurance sales coupled with a record number of new policyholders.
  • A 10.4% increase in Group Insurance premiums, for $453M in inforce business.
  • The savings and investments portfolio reached $773M, a 7% increase over 2010.
  • $116.2M was issued in mortgage loans, a 41.3% increase over 2010.

Property and Casualty Insurance
Record profitability

The Property and Casualty Insurance division, which includes La Capitale General Insurance and its subsidiaries, i.e. L’Unique General Insurance and Unica Insurance, had an excellent year. This division achieved record profitability with a $743.5M volume of premiums written and $35.1M in consolidated net profits at the end of the 2011 fiscal year. Mr. Rouleau however pointed out that the year was marked by the adjustment of Unica Insurance (previously York Fire and Casualty Insurance Company).

2011 at a glance:

  • La Capitale General Insurance achieved 9.1% growth with a $494.2M volume of premiums written.
  • L’Unique General Insurance's premiums written increased 10.4% to $134.1M.
  • Legal Access Insurance, which had its 20th anniversary, experienced 12.7% growth.


In closing, Mr. Rouleau declared that La Capitale's prudent management model had once again proved to be an asset. The soundness and flexibility which characterize La Capitale have enabled it to maintain its momentum and continue to grow, in spite of market fluctuations and a persistently declining interest rate.

The next Annual General Meeting of La Capitale Civil Service Mutual will be held on April 3, 2013 at the Quebec City Convention Centre.

About La Capitale Civil Service Mutual

La Capitale Civil Service Mutual has some 2,256 employees. Guided by the values of mutualism on which it was founded, La Capitale works with clients to build, protect and value what they feel counts for their financial security. It offers insurance products and financial services to the general public as well as to Quebec public service employees. With assets of $4.3B, La Capitale occupies a choice position among leading insurers in Canada.