Imperial Life/Desjardins-Laurentian Life Assurance Merger
Surveys
Products and Services
Awards and Honours
Creation of 8th largest life and health insurance company in Canada Desjardins Financial Security to Be Launched by Year End
Levis, November 13, 2001 - The merger of The Imperial Life Assurance Company of Canada (Imperial Life) and Desjardins-Laurentian Life Assurance Inc. (DLLA) will result in the creation of Desjardins Financial Security, a major corporation on the Canadian life and health insurance scene, the 8th largest in terms of written premiums. This is the first time the name Desjardins will have so much exposure in the Canadian marketplace.
The regulatory process is underway so that this merger will be finalized by the end of 2001. Already ratified by the Board of Directors of both companies, the amalgamation agreement was approved by their shareholders at special general meetings held in Toronto late last Friday morning and in Levis at the end of that same day.
This merger will not affect insurance policies. Desjardins Financial Security will honour DLLA's and Imperial Life's obligations to their insureds and investors, that is, the some five million Canadians who count on it to reach their financial security goals. All rights under the insurance policies, including the right to receive dividends, shall remain in force. Policy, annuity, mortgage and investment fund holders can continue to deal with the same customer service departments as before.
Based on DLLA's and Imperial Life's combined results for the year 2000, Desjardins Financial Security will manage assets worth $13.4 billion and have a premium volume of $1.5 billion. Desjardins Financial Security will have offices in several cities throughout the country, including Vancouver, Calgary, Winnipeg, Toronto, Ottawa, Montreal, Quebec City, Levis and Halifax. The company also has business portfolios in The Bahamas and in Hong Kong.
Merger of Imperial Life and Desjardins-Laurentian Life Assurance
The new company's name will be Desjardins Financial Security
Levis, October 22, 2001 - The merger of Desjardins-Laurentian Life Assurance (DLLA) and the Imperial Life Assurance Company of Canada is in its final stages. The common shareholders of the two companies will be asked to approve the merger agreement at their respective extraordinary general meeting to be held next November 9 in Toronto and Levis. The some 350,000 participating policyholders of the two companies will also be convened by mail to attend these meetings.
The company's name following the merger will be Desjardins Financial Security Life Assurance Company; however, it will be commonly referred to as Desjardins Financial Security.
A First for Desjardins Outside Quebec
"This will be the first time that the name Desjardins will be used throughout the Canadian market," said Monique F. Leroux, President of Desjardins-Laurentian Financial Corporation (DLFC) and Chief Executive Officer of the new company. "Desjardins Financial Security will have the support of its affiliation with the largest financial group in Quebec and the sixth largest in Canada, with $80 billion in assets, to guarantee its growth in a bigger market and to contribute to the growth of Desjardins itself."
"For our clients, the new name will convey quite clearly the comprehensive and integrated products and services available to them. It also serves as a reminder of their fundamental financial planning objective, that of financial security," explain François Joly and Marcel Pépin, Presidents DLLA and Imperial Life respectively.
The new company will serve 4.5 million clients and employ some 2,500 people and
6,200 representatives throughout Canada. Based on each company's financial results for the year 2000, Desjardins Financial Security will have total assets under management of
$13.4 billion and a premium volume of $1.5 billion, that is, 50% more than the current volume of premiums of Desjardins-Laurentian Life Assurance and three times that of Imperial Life.
Desjardins Financial Security will have the benefit of the combined human and financial resources as well as the innovative capabilities of the two companies to meet the ever-changing insurance and savings needs of Canadian consumers.
No Changes to Client Contracts
The merger will have no impact on the insurance, annuity or savings contracts of clients of DLLA and Imperial Life or those of companies acquired by either one over the years. The company that will emerge from the union of DLLA and Imperial Life will be bigger, stronger and better capitalized than the two companies on their own. Their life and health insurance, investment and financial planning products and services will remain unchanged.
Moreover, since the merger will have no impact on staffing, clients will continue to receive the same attentive and competent service from their usual advisor or representative.
Last Step in the Merge
Approval by the shareholders constitutes the final step in the merger of the two companies next December 28, which will then be submitted to the legislative authorities for approval. Desjardins-Laurentian Financial Corporation announced its intention to merge last April 6. Participating policyholders have already approved the company's Quebec charter. The Canadian Senate and House of Commons adopted a private bill authorizing the company to initiate proceedings with the Quebec legislative authorities.
Desjardins-Laurentian Life Assurance and Imperial Life are two life and health insurance subsidiaries of Desjardins-Laurentian Financial Corporation. They both market individual and group insurance and annuity products as well as investment funds throughout Canada and the Bahamas.
Merger of Imperial Life and Desjardins-Laurentian Life Assurance
A New Step is Achieved
Montreal, June 12, 2001 - The private bill authorizing The Imperial Life Assurance Company to initiate proceedings with the Quebec legislative authorities for the purpose of pursuing operations as a Quebec chartered company was passed on June 7, 2001, in the House of Commons. The Senate had previously approved the bill on May 31. These legislative steps are part of the process that should lead to the eventual merger of Imperial Life and Desjardins-Laurentian Life Assurance slated for the end of 2001.
Imperial Life's participating policyholders have already given their approval of the merger at an extraordinary general meeting held in Toronto on May 11, with close to 94% of some
4,000 participating policyholders voting in favour of the plan.
An extraordinary general meeting held by Imperial and DLLA, to which participating policyholders have been invited to attend, is scheduled for the fall 2001 to obtain approval from the two companies' shareholders.
Desjardins-Laurentian Life Assurance ranks first among life insurers in Quebec, where it is mainly active. Financially very sound, in 2000, it obtained the highest return for shareholders among Canada's key insurers (21.5%) and six largest banks. Imperial Life has operations throughout Canada, with the exception of Quebec, and in the Bahamas, as well as a business portfolio in Hong Kong.
Merger of Imperial Life and Desjardins-Laurentian Life Assurance
Imperial Insureds Give the Thumbs Up
Montreal, May 11, 2001 - As announced by the Desjardins-Laurentian Financial Corporation on April 6, the participating policyholders of The Imperial Life Assurance Company were invited to vote on the proposal to continue Imperial Life's operations as a Quebec chartered company. Almost 94% of approximately 4,000 participating policyholders who returned their ballot indicated their support for the proposal. The result was unveiled at the Imperial Life annual and special general meeting held in Toronto today. The vote, which will now allow the various regulatory procedures to get underway, represents one step on the road toward the projected merger of Imperial Life with its sister company, Desjardins-Laurentian Life Assurance by the end of the year.
Over the coming weeks, a private bill authorizing Imperial Life to approach the Quebec regulatory authorities in order to pursue its activities as a Quebec chartered company will be submitted to the Canadian Senate. The Bill will subsequently be tabled with Parliament. A special general meeting of Imperial Life and DLLA, which participating policyholders may attend, will be held in the fall of 2001 to seek the approval of the shareholders of the newly merged companies.
Subject to the various approvals, the merger of the two companies will create a new Canada-wide company serving 4.5 millions insured clients. It will employ 2,500 people and rank
7th among the life and health insurance companies, with a premium volume worth $1.5 billion. Since the two companies already share a common operational structure, their workforce will be virtually unaffected by the merger.
Desjardins-Laurentian Life Assurance has approximately 4 million insureds and is the current life and health insurance leader in Quebec, the province in which most of its business currently is conducted. Financially very sound, in 2000, the Company obtained the best returns for shareholders (21.5%) of the Canadian insurers and of the six largest Canadian banks. Imperial Life conducts business throughout Canada, with the exception of Quebec. It also has operations in the Bahamas and holds a business portfolio in Hong Kong. Imperial Life has about
500,000 insured clients.
Proposed merger of Imperial Life and Desjardins-Laurentian Life Assurance
The new company will be the 7th largest Canadian life insurer
Montreal, April 6, 2001 - Desjardins-Laurentian Financial Corporation announced today its intention to merge its two life and health insurance subsidiairies. The proposed merger of The Imperial Life Assurance Company of Canada and Desjardins-Laurentian Life Assurance Company Inc. (DLLA) would be effective by the end of 2001. The new company would become the 7th largest life and health insurer in Canada. The proposed merger is subject to regulatory approval.
The new pan-Canadian company will have 2,500 employees and serve four and a half million policyholders. Based on each company's 2000 results, the new entity will have total assets under management of $13.4 billion and premium volume of $1.5 billion: triple Imperial's current volume and 50% more than that of DLLA.
Among other things, the proposed merger requires that Imperial Life, a federally chartered company, be continued as a provincially chartered company (Québec). Imperial Life's participating policyholders will be asked to vote on this change with the objective of merging Imperial Life and DLLA, which must then be approved by Canadian Parliament. Documents that fully explain the details of the merger process will be mailed to participating policyholders over the next few days.
The merger will not only create a larger company but one that will be more financially solid than each company is on its own. What's more, it will create a single company that will operate across the Canadian market, like the large Canadian life and health insurance companies. The new company will be better positioned to develop and grow its business and compete in the Canadian marketplace.
No changes to contracts
Both companies offer life and health insurance products, as well as investment and financial planning services, for both individuals and groups. The proposed merger will not impact insurance coverages or contracts of Imperial Life or DLLA policyholders, nor will it affect day to day operations. In fact, the merger will be transparent for clients, sales partners and employees.
Imperial Life and DLLA have been operating under a joint management structure and integrated business practices for the past three years. They have the same products, systems, common services. The merger will have virtually no impact on jobs, and the new company will maintain all existing administrative offices of the two merged companies in Toronto, Montreal, Lévis, Quebec City and in The Bahamas.
The companies
With some four million policyholders, Desjardins-Laurentian Life Assurance is the top-ranked insurer in Quebec, its main base of operations. Very sound financially, it generated the highest return on equity (21.5%) of the major Canadian life insurers and the six major Canadian banks in 2000.
For its part, Imperial Life operates across Canada, with the exception of Quebec, in the Bahamas and holds a business portfolio in Hong Kong. It has about 500,000 policyholders.
Additional information
Next stages
- April 2001
Publication of a legal notice in the media.
- May 2001
Imperial's participating policyholders vote on continuing the company into a Quebec chartered company.
- June 2001
Petition to the Canadian Senate and subsequently to the Parliament of Canada to study and then pass a Private Member's Bill authorizing Imperial to petition the Quebec regulatory authorities to continue as a provincially chartered company
- October 2001
Continuation of Imperial Life as a Quebec chartered insurance company.
- November 2001
Holding of a Special General Meeting of Imperial Life and DLLA to have the merger of the two companies approved by the shareholders, at which meeting participating policyholders will be entitled to attend and participate in the decision.
- January 2002
The new insurance company comes into existence.
Study Reveals More Than Half of Ontario Small Business Owners
Do Not Have A Continuation Plan For Retirement, Disability or Death
A recent survey conducted on behalf of Imperial Life shows that only 42 per cent of small business owners have put a continuation plan in place in preparation for retirement, disability or death. Of that 42 per cent, 10 per cent could not identify what is in their continuation plan.
"Given that 67 per cent of all small businesses in Ontario are family-owned and that there are close to a million small businesses in Canada, the survey results indicate that a significant number of businesses are vulnerable to unexpected financial and physical setbacks," says David Machry, CFP, CLU, Senior Financial Advisor with Finactive, the online division of The Imperial Life Assurance Company of Canada. "A comprehensive business financial plan that includes a continuation strategy is absolutely critical to the survival of all small businesses. This is particularly important when you consider that 14 per cent of survey respondents indicated that their business would not be able to continue operations if the owner or primary decision maker were to become disabled for a short term."
"Overall, the survey shows that many Ontario businesses are not taking advantage of the tools and products available to them to protect their investments, employees and families,'' says Al Kinch CFP, CLU, CH.F.C. Director, Elite Case Team at Imperial Life. "In fact, only half of Ontario small business owners are aware that certain business expenses can be tax deductible. Even those business owners who prefer to manage their finances independently can benefit from information, advice and strategies provided by financial advisors."
The survey revealed that there is low awareness of products and strategies that are designed specifically to protect businesses and minimize taxes, such as estate planning, estate freezes and group insurance plans. It showed that although 55 per cent of Ontario small business owners or primary decision makers have an estate plan, only 54 per cent understand that an estate plan can help minimize the taxes arising at death. As well, only 46 per cent have made the necessary arrangements to ensure that their heirs are protected from paying taxes.
"An estate freeze is an extremely effective strategy designed to allow business owners to leave their business assets to their heirs with the least amount of tax and possibility of future complications," says Kinch. "However, only 25 per cent of Ontario's small business owners are familiar with the benefits of an estate freeze, and of those, only half or 12 per cent of Ontario's small business owners have made arrangements for an estate freeze with a professional advisor."
When asked about group insurance plans, 74 per cent indicated that they did not offer group insurance to their employees. "Many respondents cited that they assumed they were not eligible for such plans due to their size, when in fact small group coverage is available on the market, while others admitted they have never considered group insurance as an option," says Machry.
The Imperial Life Assurance Company of Canada has developed a high level of asset management and protection expertise throughout its 104 years of service to Canadians. Its comprehensive resources and tools to assist Canadian small business owners protect their business and investments are available through an extensive distribution network comprised of Imperial Life Managing General Agents, as well as Laurentian Financial Services brokers across Canada, Finactive certified financial advisors (1-888-777-0700) and at Finactive Imperial Life is part of the Desjardins financial group with over $80-billion in assets.
The findings released today result from a telephone survey of more than 500 Ontario small business owners / primary decision makers whose business has one to nine employees. Conducted by Decima Research, the margin of error for a sample of this size is +/- 4.38%,
19 times out of 20.
The "Getting Down to Business" Seminar
As part of its ongoing commitment to providing free financial advice, Finactive is hosting a seminar for small business owners on December 6, 2001, at 6:30 p.m. at their offices,
95 St.Clair Avenue West, Toronto. This educational seminar is open to everyone, but is designed specifically for small business owners, entrepreneurs and self-employed consultants who want to know more about tax saving strategies, health, disability and critical illness insurance and business succession planning.
Study Reveals Alarming Findings About Life Insurance Less Than Half of Adults Surveyed Know How to Buy It
Toronto, ON, April 11, 2001 - A recent survey conducted on behalf of Finactive shows that although 89 per cent of Canadians agree that life insurance should be part of sound financial planning, just 40 per cent of respondents would know what to look for if they had to buy it today. That figure drops to just 11 per cent among 18 to 34 year olds-the demographic most likely to require life insurance.
"Life insurance is an important purchase that people tend to make when they have a child, get married or buy a house," says Ray Bhanji, Financial Advisor, Finactive, the online division of The Imperial Life Assurance Company of Canada. "With this in mind, it is alarming that so few people in this demographic know how to buy life insurance."
To help Canadians in making this important decision, Finactive has developed a complimentary shopping guide entitled, I know I Need Insurance, Now What? What's Out There? The guide details the ABCs of how to shop for life and health insurance to help readers learn the main types of insurance available, define their individual needs, and isolate questions to ask an insurance representative.
The survey indicated that relatively few respondents know what types of life insurance products are on the market. Of those surveyed, only 14 per cent have heard of universal life insurance,
25 per cent have heard of critical illness insurance, and 33 per cent have heard of whole life insurance. Term life insurance is the most well-known product with 57 per cent of respondents answering that they have heard of it, with 46 per cent of that portion being able to describe it.
"These results demonstrate the need for continued education," says Bhanji. "Insurance is often overlooked as part of an effective financial planning strategy yet it is an important strategic element. Finactive is doing everything it can to help Canadians learn about insurance and make the subject less intimidating. Our shopping guide is just one of the tools Finactive offers."
The shopping guide is available through Finactive's salaried, licensed advisors who are knowledgeable in financial planning, tax issues, investment products, and insurance. These advisors are conveniently accessible via telephone at 1-888-777-0700, in person at 95 St. Clair Avenue West in Toronto, through Finactive educational seminars or by email at advisor@finactive.com so that clients can choose their preferred method of correspondence.
The survey also reveals that 69 per cent of all respondents and 86 per cent of 18-34 year olds surveyed have access to the Internet. Canadians online can access the shopping guide at finactive, as well as interactive calculators that can help them determine how much insurance they need, and very detailed lifestyle information such as financial strategies to apply to a variety of life situations including such life milestones having a child, getting married, buying a house.
As part of The Imperial Life Assurance Company of Canada, Finactive believes in a comprehensive vision of personal finance-one that includes investments and insurance. The Imperial Life Assurance Company of Canada has developed a high level of asset management and protection expertise throughout its 104 years of service to Canadians. Imperial Life is part of the Desjardins financial group with over $80 billion in assets. The findings released today result from a telephone survey of 500 adults in the Toronto area. It is accurate within +/- 5 per cent.
Global IQX teams with Imperial Life to offer benefits products via real-time insurance quoting service
Global IQX expands benefit product offerings on ConnectInsure and Finactive Web sites
Ottawa, ON, October 4, 2001 - Global IQX Inc., developer of the Insurance Quotation Exchange Engine (IQXä) that enables insurance companies to conduct online quotations and enrollment transactions, today announced an agreement with the Imperial Life Assurance Company of Canada, a subsidiary of the Desjardins-Laurentian Financial Corporation.
The service agreement will enable Imperial Life's SOLO and Work Benefits Insurance products to be powered on both the ConnectInsure and Finactive Websites. ConnectInsure is Global IQX's Web-based service that provides plan advisors, brokers and other certified benefit planners the access to an instant, free quoting service, available 24 hours a day, seven days a week. ConnectInsure.com will enable Laurentian Financial Services brokers, representatives and managing general agents from Imperial Life to access online instant quotes, reducing the time to obtain quotations.
"The IQX platform will allow Imperial Life's agents and Indenpendent Financial Advisor to get quotes for small businesses faster and easier," said Taylor Train, vice president, sales strategies, training and technical support, Imperial Life Assurance Company of Canada. "For us, it demonstrates another step in simplifying the way we're doing business with our Independent Financial Advisor."
"We're pleased to partner with a company that has such a strong mandate for online services," said Michael de Waal, president and founder of Global IQX. "Adding Imperial Life's benefits products to the ConnectInsure site means an expansion and strengthening of our offerings to the insurance industry."
Finactive, the virtual distributor of Imperial Life's benefit products, will also be able to offer small businesses and self-employed their group insurance plan powered by the IQX engine, a secure interface quotation system on the Internet.
"The Finactive and ConnectInsure Websites will improve Imperial Life's product accessibility across Canada," said Constance Lemieux, senior vice president, technology and ebusiness, Imperial Life Assurance Company of Canada. "Global IQX's Internet technology will shorten the acquisition process for brokers, employers of small businesses and self-employed clients. Imperial Life's SOLO products are well-placed for those who are self-employed, on contract, or working as established business owners."Imperial Life is the fourth major Canadian insurance carrier to partner with Global IQX. Since March, the Clarica Life Insurance Company, Green Shield Canada and Manulife Financial have also partnered with Global IQX.
About Imperial Life For over 100 years, the Imperial Life Assurance Company of Canada has been offering an array of individual and group health insurance, annuity and investment fund products, throughout Canada, with the exception of Quebec. Imperial Life has about
500,000 policyholders.
About Global IQX Inc. Global IQX is the developer of ConnectInsure, the first Web-based application for brokers and insurance carriers. The company has streamlined the process for supplying insurance quotations, saving brokers and insurance carriers time and money. Based in Ottawa, Global IQX is a privately owned corporation launched in March 2000. The company has received significant funding from Sojecci Ltée and IUGO Ventures Inc. of Montreal, Quebec. For more information please visit the Global IQX Website at http://www.globaliqx.com/ or the ConnectInsure Website at http://www.connectinsure.com/.
Index Plus Tactic: A hedge fund portfolio with a 100 % capital guarantee
Levis, September 4, 2001 - Index Plus Tactic now lets all investors take advantage of an actual hedge fund with no risk of losing the invested capital. Launched recently by the Imperial Life Assurance Company and Desjardins-Laurentian Life Assurance, this non-registered term investment (3, 5½ or 8 years), whose capital is guaranteed upon maturity or death, presents a volatility equivalent to that of a bond fund and a potential for capital growth even when markets are down.
"With an initial deposit of as little as $500, all investors can have access to a type of investment usually reserved for institutional investors or very wealthy clients. Index Plus Tactic is characterized by the diversification of its investment strategies and, as the asset allocation advisor, Opvest ensures continuous monitoring," says its architect Jacques Lussier, Vice-President of Financial Engineering at Opvest, a management subsidiary of the Mouvement des caisses Desjardins.
The value of Index Plus Tactic is based on variations in the U.S. exchange rate, short-term, interest rates and the return of an alternative strategy fund portfolio (Oxford).
Diversification of investment strategies
Until recently, risk diversification was mainly based on diversification by asset class, geography and sector. With Index Plus Tactic, diversification is extended to the investment strategies used.
Index Plus Tactic is part of the Strategic Index Plus (SIP) family launched in 1998. Managed by 80 or so hedge fund managers selected by Opvest, SIP has regularly bucked stock market trends and compares favourably to the main market indicators. Thus, the SIP issue of April 1998 (8½-year term) posted a total return of 24.0% for the period from April 1998 to June 2001. During this time, the TSE 100 and the S&P 500 indexes posted returns of 4.2% and 10.1% respectively.
Having a higher target return than SIP and an annual target volatility of 5% (compared to 3% for SIP), Index Plus Tactic therefore gives investors another alternative to diversify their investment portfolio.
Numerous managers
Some 25 to 30 highly specialized hedge fund managers are responsible for Index Plus Tactic, under the supervision of Opvest. The fund thereby benefits from each manager's unique investment strategies and techniques; the risks are therefore greatly diversified and volatility is reduced. Also, the makeup of the manager portfolio is reviewed each month.
A portfolio diversification tool recommended by experts
An increasing number of investment experts, including several pension plan consultants, are starting to see the advantages of hedge funds. Many of them recommend hedge funds as a diversification tool in an investment portfolio due to their potential for high returns and the fact that their variation is not based on the same factors as traditional asset classes, which rise and fall according to stock market prices and changes in interest rates.
Tax advantage
The income generated by Index Plus Tactic is considered to be income accumulated from a pension and not interest income from Canadian source. Consequently, it is eligible for the $1,000 pension income credit for those aged 65 or older. Thus, a $10,000 investment that produces a return of 10% will result in no taxes having to be paid for taxpayers who are eligible for the pension credit.
100% capital guarantee
Offered in the form of a GIC, Index Plus Tactic guarantees that 100% of the capital will be refunded at maturity and, since it is issued by an insurance company, it offers this same 100% capital guarantee on the death of the investor, if it occurs before maturity.
Easy to obtain
Index Plus Tactic is available to the conventional investor who wants to venture into hedge fund strategies for a nominal deposit of $500 through an extensive distribution network comprised of Imperial Managing General Agents, as well as Laurentian Financial Services and Services financiers La Laurentienne networks across Canada, and on the Finactive site Finactive.
"How to Hedge Your Bets"
Hosted by Dr. Jacques Lussier, a graduate in international business, noted expert in portfolio management and Index Plus Tactic's architect, a Seminar on Hedge Funds will be held at
95 St.Clair Avenue West, Toronto, on September 13, 2001, at 6:30 PM. Mr. Lussier will explain how hedge funds actually protect the investor's portfolio against risk, how they really work and why investors should consider alternatives to term deposits, stocks and bonds.
Additional information
Overview of Index Plus Tactic
Type of product: Guaranteed investment contract (GIC) with controlled volatility based on active management (25 to 30 hedge fund managers). Opvest acts as an asset allocation advisor for this portfolio and is therefore responsible for monitoring.
Date of issue: Quarterly
Initial deposit: $500 (minimum monthly deposit: $50)
Terms: 3, 5½ and 8 years
Redemption option: Redemption option as of the end of the 3rd year
Creditor-proof: Creditor-proof if beneficiary is designated, subject to certain conditions.
Tax advantage: Income eligible for the $1,000 pension income credit for those aged 65 and older.
The distinctive features of Millennia III segregated funds are catching the eye of a number of new dealers
Eight of them have already signed agreements
Montreal, August 23, 2001 - First in Canada to offer protection against inflation, Millennia III segregated funds established by The Imperial Life Assurance Company are now available from financial service dealers in Ontario, Western Canada and Nova Scotia, including EIS Insurance Services Inc. and Hub Financial (Prairies - BC - Ontario).
"As opposed to a number of segregated fund families whose management fees were recently increased to meet the new regulatory requirements, Millennia III segregated fund fees have remained stable and are therefore very competitive," states Michael Aziz, Director, Business Development, Segregated Funds, at the Imperial Life Assurance Company and its sister company, Desjardins-Laurentian Life Assurance. "These two characteristics - protection against inflation and competitive management fees - combined with a vast selection of funds and the reputation of the fund managers, have caught the eye of these dealers."
The following dealers have signed distribution agreements for Millennia III segregated funds:
Ontario:
- IPC Insurance Services Inc.*, Markham
- Professional Insurance Agency, Ottawa
- Hub Financial (Ontario), London
- EIS Insurance Services Inc.,* Toronto
Prairies
- Hub Financial (Prairies) Inc., Calgary, Alberta
- Hub Financial (Prairies) Inc., Edmonton, Alberta
- Funds Direct Canada Inc., Regina, Saskatchewan
British Columbia
- Hub Financial (BC), Vancouver, British Columbia
Nova Scotia
- Canadian Retirement Services, Dartmouth
* National dealers
"These agreements are part of our segregated fund development strategy in Canada. We are convinced that segregated funds represent a growing market. On one hand, it is a very attractive product for people who are close to retirement and who are concerned about the security of their investments, and also for investors who have been shaken by recent market fluctuations. On the other, it is a type of product ideally suited for the increasing numbers of self-employed workers, since it can offer creditor-proofing," says Michael Aziz. "In view of the distinctive features of our product, we are convinced that Millennia III funds will be more and more in demand."
For these new dealers of Millennia III segregated funds, the addition of this fund family allows their representatives to offer clients a new range of products that meets their needs in terms of diversification, capital security and returns.
Millennia III segregated funds are established by The Imperial Life Assurance Company. Imperial Life and its sister company Desjardins-Laurentian Life Assurance, whose merger process should be completed by the end of the year, rank 7th among life and health insurance companies in Canada, in terms of written premiums.
Imperial Life's New Capped Canadian Index Fund Withstands Nortel Plunge
Montreal, February 21, 2001 - The Imperial Life Assurance Company's new Capped Canadian Index Fund, the first of its kind in Canada, has better withstood the impact of Nortel's latest plunge than most index funds. The drop in the S&P/TSE Capped 60 Index last Friday,
February 16th, was in fact three times smaller than that of the S&P/TSE 60 Index, the benchmark for most traditional index funds.
Fluctuation (February 16, 2001)
- S&P/TSE Capped 60: - 2,44%
- S&P/TSE 60: - 7,76%
Since its launch at the beginning of the year, the Capped Canadian Index Fund, which tracks the S&P/TSE Capped 60 Index, has not only registered much less volatility than other index funds based on the S&P/TSE 60 Index, but also posted positive results. By restricting the maximum weighting of any one stock of the 60 Canadian companies that comprise the index to 10%, the Capped Canadian Index Fund is different from traditional index funds in one major respect: it limits the effects of marked fluctuations in any one stock on the performance of the index, as illustrated in the table above.
The new Capped Canadian Index Fund has been available to the Group Retirement Services clientele of Imperial Life and Desjardins-Laurentian Life Assurance since January 2001.
Managed by Elantis, the new Capped Canadian Index Fund brings to 20 the number of pooled investment funds available to employees or association members belonging to a group retirement savings plan offered by Imperial Life and Desjardins-Laurentian Life Assurance. Four other fund managers also manage the funds: AIM Funds Management Inc, Bissett Investment Management, McLean Budden and Scudder.
Imperial Life Announces New Strategic Index Plus Product A Guaranteed Capital Investment. with Teeth
Toronto, ON, February 7, 2001 - The Imperial Life Assurance Company of Canada announced a new three-year guaranteed capital term deposit through its Strategic Index Plus product, which was available previously in five-and-a-half and eight-year terms only. This innovative investment opportunity is guaranteed and offers unmatched diversification in terms of geography, asset class and investment strategy, which enables it to have the most competitive return/risk ratio.
"Strategic Index Plus represents a new class of product designed to help investors take advantage of market highs and lows," says its architect and manager, Jacques Lussier, Vice-President of Financial Engineering at Opvest. "Until recently, Strategic Index Plus was reserved for institutional investors and individuals with a net worth of over one million U.S. dollars. Today, it is accessible to all investors with a minimum $500 deposit. The new three-year term creates a valuable investment opportunity to a broader range of investors."
Strategic Index Plus is available through any certified advisors of the three distribution networks of Imperial Life: Finactive, Laurentian Financial Services and Connexus.
Great Diversification Tool
No other investment vehicle can limit exposure to risk and take advantage of market opportunities like Strategic Index Plus, which is managed by an elite team of international money managers. Diversification is achieved in three main ways, by asset class, by geography and by strategy. Strategic Index Plus' global diversification entails investing deposits in the securities of the 13 main industrialized countries and its asset class diversification includes stock market indexes, bond indexes, currencies and even commodities such as foodstuffs and natural resources. Some of the strategies utilized include arbitrage to exploit different currency, bond and stock fluctuations around the world and hedge fund strategies to take both short and long positions in equity markets. In addition, the managers take advantage of multiple opportunities created by large corporate mergers and acquisitions.
"This threefold diversification, combined with active management gives managers a great deal of latitude, reduces the investment's vulnerability to market fluctuations and increases the potential for positive returns even when markets are faltering," says William McNarland, certified financial planner with Finactive.
Guaranteed capital
Another advantage of Strategic Index Plus is that the full investment is guaranteed. Imperial Life guarantees 100 per cent of the capital invested in Strategic Index Plus will be refunded upon maturity or upon the death of the investor. Furthermore, Strategic Index Plus managers ensure that the value of the assets invested will be worth at least the same amount in three, five and a half, or eight years time. Moreover, Strategic Index Plus is not subject to the foreign content limit applicable to RRSPs.
Strategic Index Plus earned a return of 6.7 per cent for the period from January to the end of December 2000. During the same period, the TSE 300 showed a return of 6.2 per cent, whereas the United States' S&P Index posted a negative return of -1 per cent, Japan's Nikkei showed a return of -27.2 per cent and Korea's KS 11 posted a return of -50.9 per cent.
Strategic Index Plus Controls Risk
"As well as generating excellent returns, Strategic Index Plus controls risk. Over time, the volatility of Strategic Index Plus returns is three to four times lower than that of an equity fund. Its risk level is also lower than that of a bond portfolio," says McNarland. "Given the lower risk relative to other investment products, I would recommend investors consider replacing the bond portion of their portfolios with Strategic Index Plus, while increasing the proportion of equity investments. This strategy would retain the portfolio's level of global risk while increasing the return potential."
A New RRSP Center at Finactive Website
To help investors understand their options, Finactive offers a new RRSP Centre at finactive. In addition to detailed information about company products related to RRSP season, including Strategic Index Plus, investors can find answers to their questions about RRSP and tips from financial advisors. They can also find sophisticated calculators that can help them plan their retirement, calculate their RRSP contribution, analyse their investment portfolio and help them find place in their budget for an RRSP contribution. Finally, Finactive's certified and professional advisors are available to answer specific questions or recommend financial solutions best suited to each customer's goals on-line or toll free line
(1-888-777-0700).
Finactive is a division of The Imperial Life Assurance Company of Canada. Launched in 1999, Finactive offers a wealth of expertise in life and health insurance, complete information and advice through certified, salaried specialists, and top-level asset management skills, all conveniently available on-line or via its toll free line (1-888-777-0700). Finactive also offers calculator programs on its Website to make it easy for those who want to take on their finances to define their financial objectives and to manage them.
One thousand brokers across Canada are affiliated with Laurentian Financial Services and Connexus.
Imperial Life is part of the Desjardins financial group of companies with over $75-billion in assets and has served Canadians for more than 100 years.
Strategic Index Plus ... a Portfolio in Itself
Product Type: Actively managed, guaranteed capital deposit certificate with controlled risk
RRSP-, RRIF-, LIRA- and LIF-eligible
Date of Issue: Quarterly
Initial Deposit: $500 (minimum monthly deposit: $50)
Terms: Three, five and a half, and eight years
Fees: No purchase or trust fee. Fees based on performance (not exceeding 2.5%)
Options: Surrender option as of 3rd year
Creditor-proof: Creditor-proof if beneficiary is designated, subject to certain conditions
Guarantees: CompCorp-protected, up to $60,000. Capital guaranteed upon maturity or death
New Capped Canadian Index Fund a First in Canada Maximum 10% Weighting of Stocks Limits Downside Risk
February 1, 2001 - The Imperial Life Assurance Company of Canada and Desjardins-Laurentian Life Assurance have recently unveiled a new Capped Canadian Index Fund for their group retirement savings clientele. The first such fund to be introduced in Canada, this new fund tracks the S&P/TSE Capped 60 Index, which restricts the maximum weighting of any one stock of the 60 Canadian companies comprising the Index to 10%. Carefully designed to take into account the realities of today's investment environment, the fund offers investors an innovative way to protect themselves from the roller coaster effect of any one stock on the performance of the Index.
Unlike actively managed funds, index funds are designed to "replicate" the performance of a particular stock market, a strategy which is not entirely without risk. Last fall's TSE 300 nose-dive was largely due to the correction of one stock: Nortel. You may recall that Nortel underwent a correction that wiped more than 50% off its market price. Since Nortel made up approximately 30% of the Index, the Index also went into a tailspin, suffering its largest one day point loss in history. By limiting the risk associated with a particular stock, the characteristics of the Capped Canadian Index Fund are therefore substantially different from those of "traditional" index funds.
Managed by Elantis, the new Capped Canadian Index Fund brings to 20 the number of pooled investment funds available to employees or association members belonging to a group retirement savings plan offered by the Imperial Life Assurance Company and Desjardins-Laurentian Life Assurance. Four other fund managers also manage the funds: AIM Funds Management Inc, Bissett Investment Management, McLean Budden and Scudder.
Group retirement savings plans offer participants several advantages over individual RRSPs including an immediate tax reduction through payroll deduction, management fees which are generally lower than those of mutual funds and a disciplined approach to savings
Imperial Life and DLLA offer a competitive range of insurance and group retirement savings products and services, distributed in partnership with selected intermediaries. Imperial's and DLLA's share of the Canadian group insurance and retirement market is estimated at 6%. In Quebec, the two companies dominate market share with 16.1%.
Four North American Awards for Excellence for the Communications of Imperial Life Financial and Desjardins-Laurentian Life Assurance
Levis, October 2, 2001 - Imperial Life Financial and Desjardins-Laurentian Life Assurance won four awards for excellence and a special mention for the quality of their communication tools at this year's Life Communicators Association contest.
The Association has 750 members representing 225 insurance companies that operate throughout North America. Around 120 companies submitted over 700 entries in over
40 categories in the areas of advertising, public relations, corporate communications and sales promotion. The panel based their decisions on design, writing, artistic administration, effectiveness and general presentation.
The awards for excellence were given for:
- The Webi extranet, designed to enable representatives of the Individual Network to communicate rapidly with one another and to obtain the most recent information on products to offer clients a better service;
- The Health Investment promotional kit containing information about products relating to health, and also designed for the representatives of the Individual Network;
- The advertising campaign marking the first anniversary of Finactive, Imperial Life's virtual network, designed to make consumers proud to do business with a dynamic company;
- The booklets detailing the new Millennia III segregated funds.
An article about the advertisement for the Group Network's Website also received a special mention.
The Vice-President of Public Affairs, Advertising and Communications, Daniel Roussel, was in Nevada, U.S.A. last week to receive the awards for excellence at the LCA Annual Congress.
Last year, the Association's contest awarded Imperial Life Financial and Desjardins-Laurentian Life Assurance with three awards for excellence. They were for the DLLA company video, the Finactive Website and its promotional kit.
Desjardins-Laurentian Life Assurance is Quebec's leading life insurance company, offering mainly individual and group insurance and annuities. In Quebec, it holds the largest market share (16.1%), insuring almost four out of seven people. In addition, the Company offers direct distribution services and specialized services to financial institutions, including the Desjardins caisses, across Canada. Imperial Life operates throughout Canada, with the exception of Quebec, and in the Bahamas. The company also holds a business portfolio in Hong Kong. Both companies are subsidiaries of the Mouvement Desjardins.