La Capitale maintains growth momentum

René Rouleau, President and Chief Executive Officer

Quebec City, April 8, 2015 — La Capitale Civil Service Mutual has once again experienced growth in many areas this year. "We are proud to say that the mutualist business model continues to be very effective, allowing us year after year to attain significant operating efficiencies, strengthen our market position and build brand awareness among our clients," said René Rouleau, President and Chief Executive Officer of La Capitale Civil Service Mutual during the Annual General Meeting held in Quebec City on April 8, 2015.

In spite of a business environment characterized by persistent low interest rates and market volatility, La Capitale realized a consolidated net profit of $73.1 million. This is an increase of 12.1%, one of its best results in the past decade. Consolidated income from Life and Health Insurance and Property and Casualty Insurance reached $2.2 billion over the fiscal year, while assets totalled $5.5 billion, an increase of 12.7% over 2013.

Life and Health Insurance and Financial Services    
Another successful year was experienced by the Life and Health Insurance and Financial Services sector. La Capitale had the strongest growth in six years of all life insurers in Canada and has climbed into the top ten in Canada. Gross premium income in the sector approached the billion-dollar mark at $993.6 million, an increase of 9.7% over 2013, while net profit reached $36 million. "The attention we pay to all of our clients and the close ties we maintain with our business partners have allowed us to consolidate our excellent positioning in the market," said Steven Ross, President and Chief Operating Officer of the La Capitale Life and Health Insurance and Financial Services sector.

Property and Casualty Insurance
Despite a very difficult start to the year due to climatic conditions, the Property and Casualty Insurance sector, which includes La Capitale General Insurance, L’Unique General Insurance and Unica Insurance, ended 2014 with a net profit of $37.1 million. The three companies enjoyed a consolidated gross written premium volume of $859.8 million, representing an increase of 5.8%, of which 13.3% was commercial insurance. "Beyond the negative or positive repercussions of climatic conditions and the return on investments, the Property and Casualty Insurance sector's performance in 2014 stems from structuring projects with regard to underwriting, pricing, cost reduction and claims management. All this was accomplished while distinguishing ourselves by the outstanding client experience we offer," said Constance Lemieux, President and Chief Operating Officer of the Property and Casualty Insurance sector.

About La Capitale
La Capitale has a strong presence across Quebec and throughout Canada. With over 2,560 employees and 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. La Capitale holds a coveted spot among leading insurers in Canada. Given the key social and economic role La Capitale plays, it is proud to contribute to the progress and well-being of the whole community through the La Capitale Financial Group Foundation.

– 30 –

La Capitale maintains growth momentum