Insurance

[UrbanWaterloo]

Insurance in Waterloo Region

<table width="600px"><tr><td>
Company</td><td>
Assets</td><td>
Local Employees</td></tr><tr><td>
http://www.math.ca/Competitions/CMO/images/sunlife_logo.gif (http://www.sunlife.ca/Canada)</td><td>
$124.1 billion</td><td>
3,620</td></tr><tr><td>
http://www.manulife.ca/canada/canada1.nsf/LookupFiles/LogoManulifeLogo/$File/manulife_logo.gif (http://www.manulife.ca)</td><td>
$77.4 billion</td><td>
3,840</td></tr><tr><td>
http://www.economicalinsurance.com/en/images/the-Economical-Insurance-Gr.gif (http://www.economicalinsurance.com)</td><td>
$4.6 billion</td><td>
1000</td>
</tr><tr><td>
http://www.freedmaninsurance.com/images/EQUMAINLOGO.gif (http://www.equitable.ca)</td><td>
$1.6 billion</td><td>
500</td></tr><tr><td>
http://www.goremutual.ca/en/images/logo_goremutual_1.gif (http://www.goremutual.ca)</td><td>
$</td><td>
#</td></tr><tr><td>
http://www.faithlifefinancial.ca/en/images/FLF_Logo.gif (http://www.faithlifefinancial.ca)</td><td>
$400 million</td><td>
#</td></tr><tr><td>
http://www.nwfm.com/images/logomodified.gif (http://www.nwfm.com)</td><td>
$115 million</td><td>
#</td></tr></table>

[UrbanWaterloo]

Hartford North
Local insurers don't often make headlines, but make no mistake -- Waterloo Region and Guelph are an insurance industry powerhouse
Chuck Howitt, The Record (Apr 2, 2007) | http://www.rexmagazine.ca/rexmagazine/issue_apr2007/issue_apr2007_997585.html

Insurers see their fair share of charred homes, mangled cars and flooded basements. But excitement isn't the first thing that comes to mind when you think about the insurance industry.

There are no prime-time TV dramas or Hollywood blockbusters about insurance agents. Library shelves are not groaning under the weight of pulp novels about insurance adjusters investigating a house blown apart by a hurricane or brokers lining up a dynamite quote. In high school guidance offices, the profession doesn't spark the same interest as careers in firefighting or piloting airplanes.

Despite the lack of glamour, the insurance industry is one of this area's economic stars. Employing more than 10,000 people, it provides a degree of stability and strength that helps Waterloo Region and Guelph ride out the ups and downs of the business cycle.

Noel Walpole is the chief executive officer of the Economical Insurance Group, a large insurer with 2,300 employees across the country, including 826 in Waterloo Region. Yet, in an interview, he is almost apologetic, thinking that he is not providing enough interesting material compared to a business personality like David Chilton, the dynamic personal finance guru who was profiled in this magazine's last issue.

As the head of a major company, Walpole hasn't worked a house fire in years, but he still gets passionate about how Economical comes to the rescue when disaster strikes. "When you think about house fires and all that trauma happening, if you can really step in there and help that person in need, that's the product we sell," he says, his face flushing and fist pumping the air.

Kevin McNeil gets equally emotional about what the insurance industry means to the local economy.

McNeil is president and chief executive officer of Gore Mutual Insurance Co. in Cambridge, a provider of home, auto and business insurance.

He estimates companies such as Gore spend $1 million to $2 million every day in this area repairing cars, rebuilding homes, paying medical bills, cleaning up properties and quietly putting victims' lives back together one way or another.

McNeil talks about a boy who broke his spine in an all-terrain vehicle accident, a tragedy that cost the insurance industry $4 million. People with accident-free records who complain about rising insurance rates don't realize that is where their money goes, he says, adding that "it's a claim I am happy to pay."

Katherine Bardswick, president and CEO of the Co-operators in Guelph, acknowledges that insurance companies are not the most loved businesses on the planet. "If we restrict the number of products we offer, people will hate us even more than they do," she says in an interview in her seventh floor office overlooking downtown Guelph.

Yet, insurance companies are in the forefront of disaster prevention and the fight against calamities such as global warming and disease pandemics, she says. For example, the Co-operators funded Canada's first "safer living home," a house on Prince Edward Island rebuilt to withstand winds of 200 km/hour. The original house, which was insured by the Co-operators, had been destroyed in a fire.

Insurance companies have to take a more proactive approach, Bardswick says.

"We're looking at more sustainable development, working with legislators, effecting change when it comes to building codes and where houses are built."

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It's almost a cliche to call this area Hartford North, after the U.S. insurance capital.

Usually the title is used in reference to Manulife and Sun Life, the two life insurance giants that make Waterloo the home base for their Canadian operations. But this area is also a property and casualty insurance powerhouse.

The two largest Canadian-owned providers of home, auto and business insurance, the Co-operators and Economical, are headquartered here. These companies, the third and fourth largest property and casualty insurers in the country, each own a stable of subsidiaries, covering substantial parts of the market.

When you throw in a significant medium-sized player such as Gore, the 33rd largest property and casualty company in the country, and a gaggle of smaller but significant farm mutual companies such as the North Waterloo, Ayr and Dumfries insurance companies, few regions can rival this area as a mecca for P and Cs, as insiders call it.

This area also has other impressive insurance industry credentials:

Cambridge is the insurance capital for farm mutuals across the province. A building on Bishop Street houses both the Ontario Mutual Insurance Association, an advocacy group representing 45 mutuals in Ontario, and the Farm Mutual Reinsurance Plan, which provides reinsurance -- insurance for insurance companies -- to 60 mutuals in the province.
The head office for Cowan Insurance, one of the province's largest and most specialized brokerages and benefits consulting firms, is in Cambridge. It employs 350 people, including about 200 at its new office on Fountain Street North.
Kitchener houses two of the largest brokerages in the area, H.L. Staebler and Erb and Erb, and the head office of Crawford Adjusters Canada, the largest independent adjuster in the country. It employs 200 people at its Riverbend Drive headquarters.
Two education-oriented insurance companies are located here. The Ontario Teachers Insurance Plan in Waterloo arranges home, auto, health and life insurance for more than 50,000 teachers across Ontario and employs 250 people. The Ontario School Boards Insurance Exchange in Guelph offers property and casualty insurance to 95 per cent of Ontario's school boards.
Even sleepy Baden has a head office. MAX Canada Insurance offers general insurance to Amish and Mennonites in five provinces.
In addition to Manulife and Sun Life, Waterloo is home to two other life insurance companies of note, Equitable Life, the 15th largest life insurer in Canada and FaithLife Financial, formerly Lutheran Life.


Equitable, the country's largest mutually owned life insurance company with more than 400 employees locally, has no plans to become a publicly traded corporation like Clarica, which eventually became Sun Life.

"We're dedicated to our policyholders. Because we don't have shareholders, we can take a longer-term view," says Tami Dietrich, the firm's manager of marketing services.

FaithLife, which employs 60 at its head office on Weber Street North and 85 in the field across Canada, provides life insurance and investment advice to the Christian community. "We're very much a niche player," says president Dieter Kays.

FaithLife encourages members to support projects such as church renovations, food banks and overseas trips for youth, and provides matching grants for those projects.

"Our philosophy isn't something that resonates with everybody, but we find there is a group of people out there who want to live their values as much as they can," says Kays.

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While the word insurance doesn't conjure up dramatic images, that certainly can't be laid at the feet of the property and casualty side of the business.

Life insurance is quiet, reassuring, slow and methodical. People buy policies and update them every 10 years or so. Property and casualty insurance deals with hurricanes and fires, car accidents and plane crashes. What could be more exciting than that?

It's also quite a cyclical business, with hard markets and soft markets. At the moment, things are pretty fluffy. Premiums are down and insurance is easier to get; companies are making money, so they're dropping prices and looking for more business.

Six years ago, it was a different story.

Walpole pulls out Economical's annual report and flips to the page showing yearly financial results. Pointing to 2001, he winces. Net income was $3.6 million. For a company as large as Economical, that is a shockingly small amount.

"2001 was a dismal year," he says. "It's not good for insurance companies to lose money because we're supposed to be there in times of need."

The early 2000s were known as a classic hard market, maybe the hardest of them all. The insurance industry in North America was hit by what some call a perfect storm -- the terrorist attack on the World Trade Center, the bursting of the stock market bubble, a record number of bond defaults, a large number of catastrophic weather events, and a jump in asbestos and environmental claims.

During hard markets, companies batten down the hatches and underwriters sharpen their pencils and get fussier about what they are going to insure. Insurance becomes more expensive and difficult to obtain. Stories emerge in the media about soaring premiums.

The cycle usually lasts six to eight years, says Glen Johnson, president of the mutual insurance association. "Last time around it turned fairly quickly." He expects the 2006 results for the 45 farm mutuals in the association to be "fairly positive," indicative of the continuing soft market. Ayr Farmers Mutual, for example, declared a refund of $605,000 in January, which it is distributing to its 7,000 policyholders.

Everybody moans about the cyclical nature of the business, but all seem powerless to stop it.

"It happens in any industry with a large number of players," says Peter Sims, a lawyer who sat on Economical's board for 35 years. The industry is very competitive, he says, with more than 200 P and Cs in Canada, including more than 100 in Ontario.

The products insurance companies offer are similar if not identical, he says.

"That means you're competing on a service and a price basis."

The bipolar nature of the business can lead to situations such as the one where a hot-tar roofer north of Toronto saw his rates go from $2,000 one year to $22,000 the next.

Johnson speculates that the roofer's rates were too low to begin with. McNeil of Gore says those kinds of fluctuations occasionally happen in the commercial market, but usually increases are more in the 15-to-25-per-cent range. In the more heavily regulated auto market, rates are more stable, tending to shift from two to five per cent, he says.

There are other reasons for the fickle nature of the business.

Damage claims, especially in the pro-perty area, are getting more expensive. An intense rainstorm that hit this area and parts of Toronto in August 2005 was the costliest natural disaster in Ontario history, second only to the Quebec and eastern Ontario ice storm of 1998.

The growing number of finished basements equipped with expensive electronics items such as big-screen TVs and home theatres also boosts claims totals.

"Basements aren't the old ping pong table on concrete anymore," says Walpole. "The average cost per claim, especially from water damage has escalated substantially."

Jeff Whiting, assistant general manager of the Ayr Farmers Mutual Insurance Co., says coverage continues to broaden, especially in property insurance.

"Twenty years ago, the idea of replacement cost was unheard of." Depreciation was the way to go. Nowadays, terms such as "all-risk and comprehensive" are common. If you spill a bucket of paint on a carpet, it's covered. And homes aren't getting smaller, he adds.

Old oil tanks on rural properties are a major problem for farm mutuals. A tank can corrode from the inside, a problem that's not even visible, causing a rupture. The damage from the spill is bad enough, but oil can leak through floor drains into the ground, and fumes can travel through the house, leaving an odour that's nearly impossible to get rid of.

"You can have a buried tank on the property and you don't even know it's leaking," says Carlos Rodrigues, president of North Waterloo Farmers Mutual. "Ultimately the insurance companies are responsible for the cleanup."

New technology is helping insurance companies handle these problems.

North Waterloo Farmers has three thermal cameras, costing $25,000 each, that can detect overheated and dangerous wiring before it causes a house fire.

"If we can save one farm, it's worth the price of all three cameras," says Rodrigues.

Economical has a new express program for quoting insurance. When a new piece of business comes in, it can be reviewed, analyzed and priced within 12 minutes. In the old days, that process took up to four days.

Gore's adjusters can file reports wirelessly from an accident scene, using technology developed by Kitchener-based Symbility Solutions. Gore has doubled its revenues in the last five years with the same number of employees because of advances in technology, says McNeil.

The increasing sophistication of the business requires companies to be more specialized.

"Smart brokerages have gone beyond just selling an insurance product," says Greg Barratt, vice-president of business development at Cowan Insurance. "Clients really expect you to understand their business and bring solutions to the table."

For example, Cowan recently did an extensive study of risk exposures for a technology company and came up with a "creative customized solution." Yet Barratt sees the increasing complexity of the business as a plus. "It's a wonderful opportunity to add value."

Insurance companies often have clients with international properties. Last year, for the first time, Economical purchased an American company, The Mattei Companies of Seattle, so it could insure Canadian clients with exposure in the U.S. "It gives us a mechanism to write the U.S. piece of an account," says Walpole.

The growing demands of insurance can present challenges for smaller companies.

"It's always a challenge to make sure coverage and rates are in line with other companies," says Nelson Scheifele, director of constituency relations at MAX Canada Insurance in Baden.

"When you're a small company, you don't have the reserves that large companies like Economical have."

The solution is to provide more personalized service, he says.

"We like to market ourselves as being different. We have a strong mutual aid component."

Kays of FaithLife says there's no substitute for good, old-fashioned individual service -- "sitting down around the kitchen table and making the buying process as easy as we can."

TOP FIVE PROPERTY AND CASUALTY INSURANCE FIRMS IN CANADA, 2005
COMPANY % OF TOTAL BUSINESS WRITTEN

1. ING 11.23
2. Aviva Canada Inc. 8.71
3. Co-operators General 5.35
4. Economical Insurance Group 5.09
5. Meloche Monnex Inc. 4.91

Source: Canadian Insurance magazine.

[UrbanWaterloo]

Part 2:

Driven to succeed
Paul Rooney is turning heads with his rapid rise through the ranks at Manulife
Paul Rooney, Senior executive vice-president and general manager, Canadian division, Manulife Financial
Matt Walcoff, The Record - WATERLOO (Apr 2, 2007) | http://www.rexmagazine.ca/rexmagazine/issue_apr2007/issue_apr2007_997562.html

Paul Rooney isn't a familiar name in local business circles, even though he commands one of the largest workforces in Waterloo Region and Guelph.

It's a fact he recognizes himself. Rooney, the new general manager of Manulife Financial's Canadian division, jokes that he may be best-known in the community as the boyfriend of Audrey Wilson, owner of a local modeling agency and host of a show on Rogers Television.

But inside Manulife, Rooney is famous for precociously scaling the corporate ladder, rising from cubicle-bound actuarial student to senior executive vice-president, leaving behind a string of successes that validate his aggressive and sometimes contentious leadership style.

Just two years out of university, he was promoted to a senior actuarial position usually held by an assistant vice-president. At 32, he volunteered for a senior management position. Two years later, Manulife's bosses put him in charge of a tiny, forgotten business left over from a takeover. He promptly turned it into one of the company's best-performing units.

Rooney's rise to the summit culminated, at least for the time being, in his recent appointment to the post of general manager and senior executive vice-president of the Canadian division of the insurance and financial services provider, a move that makes him one of the top eight executives in Canada's third-largest company.

The 43-year-old is in charge of the biggest business in Kitchener-Waterloo, with 2006 revenue of $9.89 billion. He has more people working under him -- 6,800 -- than any other local executive. If his salary is anything like his predecessor's, he earns more than $1 million a year.

"What makes him different is he really focused himself on getting ahead and being successful and then he delivered," says Tom Dunlop, former chief information officer at the Canadian division. "He delivered because he was confident that he was going to be successful, and he never really wavered from that. I don't know a lot of other people who have been quite that focused. Everyone's ambitious, don't get me wrong, but he seems to have more of a focused ambition."

With Rooney, it is difficult to separate personal ambition from the successes and difficulties of the company. Friends and associates say he is obsessed with winning, whether at golf or in the marketplace. That has made him a perfect match for Manulife's Canadian division, which has more than doubled in size -- and quadrupled in profits -- since he joined it in 1998. Much of that growth has been due to acquisitions, but it's also due to aggressive pushes for market share in a mature and increasingly consolidated market. As chief of individual insurance in Canada starting in 2001, Rooney helped lead the attack by pushing new pro-ducts and distribution channels.

"What really gets my heart pumping now is taking any business and working with a group of people and asking yourself the basic question: How can we make it better? How can we serve customers better? How can we be more meaningful to advisers who sell our products? How can we make this organization go from where it is today to even greater and better heights?" he says. "Working with people to make that happen is what gets me out of bed in the morning."

Such entrepreneurial enthusiasm may seem out of place in an industry made up essentially of bean counters. But Rooney certainly doesn't lack personality. At times, he is positively effervescent. He has been known to refuse to begin important meetings until all of his briefcased, business-suited subordinates smile. When photographed for the cover of this magazine, he asked, "Is it OK if we do a smiley picture? Because I don't like corporate pictures."

Rooney provides a sharp contrast to his predecessor, Bruce Gordon, according to Trevor Matthews, who preceded Gordon as head of the Canadian division. Gordon, who recently retired, is quieter, more conservative and reflective of Manulife's prior history as a mutually owned insurance company. Rooney takes more after Dominic D'Alessandro, Manulife's outspoken and strong-willed -- and widely respected -- chief executive officer.

"They're both very good leaders but quite different," Matthews says. "Bruce is a very wonderful human being and solid and secure and has done a very good job . . . Paul's a bit more aggressive, a bit more outgoing. There will be more action in terms of positives and negatives. He's full of ideas and wanting to do things."

Rooney is the first to admit he does not believe in laissez-faire management. He makes sure his enthusiasm for finding new markets and capturing share of existing markets is passed down to his subordinates.

"I think I can be challenging to work for at times, because I learn by asking a lot of questions," he says. "I think at times that may feel more like an inquisition and less like a question session."

Rooney's style didn't always win him friends when he first joined the executive ranks. Today, he makes sure to credit his mentors and his employees when discussing the successes of his business unit. But former colleagues say he used to ruffle feathers by failing to demonstrate modesty and offering blunt assessments of company issues.

"He doesn't really project to a lot of people really the way he is," Dunlop says. "I think what they see is the young, good-looking, ambitious, upwardly mobile guy, and sometimes people get wrapped up in that and see that as arrogance."

But people who get to know Rooney on a personal level tend to appreciate his style. In 1998, he became general manager of Affinity Markets, which markets insurance through professional and alumni associations and retail loyalty clubs. Manulife had acquired Affinity as part of its 1995 purchase of North American Life Assurance Co. It had only 150 employees and contributed about $5 million to company profits.

Rooney launched a strategy he dubbed "Paint It Green." He covered the walls with coloured charts listing who was providing each type of insurance to Affinity's major clients - yellow for Sun Life, red for Canada Life and so on, with Manulife in green. He called on his employees to convince clients such as the Canadian Automobile Association and Canadian Dental Association to drop long-standing relationships with other insurance companies and switch to Manulife for all types of insurance plans, whether life, health, accident or travel.

"When that grid is painted green, we will have done our jobs," he told them.

In three years under Rooney, Affinity's profits tripled, and its head count went up 67 per cent. Affinity was not only one of Manulife's fastest-growing operations, it ranked near the top in employee satisfaction as well, says Matthews, now chief executive officer of Standard Life Assurance Ltd. in Scotland. Rooney gains his employees' trust by taking interest in their lives and morale. He is known to sometimes bring in cake and ice cream, or hold cocktail parties to mark product introductions or milestones.

"He reaches out to them, both as a group and as individuals," Gordon says. "He will know if one of his direct reports has two young children. 'How'd it go with the birthday party on the weekend?'" he will ask.

Rooney's unyielding drive was evident even in childhood, says lifelong friend Rob MacGillivray.

"Losing was not an option for Paul," MacGillivray says. "Ping Pong, tennis, drinking beer -- he was competitive."

That determination can be traced to his father, MacGillivray says. Pat Rooney is a Scottish immigrant who worked his way through the ranks at Algoma Steel in Sault Ste. Marie to become a senior vice-president. Paul Rooney's parents ensured that he would focus on his studies by making good marks a requirement for playing sports. He played basketball, ran track and was captain of Sault Collegiate Institute's undefeated junior football team.

"My mother had a rule that if I didn't have an 80-per-cent average across all subjects, I wasn't allowed to play sports, which was the major motivation in my life," Rooney says. "I should use that on my kids."

He maintained that focus after he left home. He graduated from the University of Western Ontario in 1986, married his high-school sweetheart and took a job crunching numbers for Manulife in Toronto while studying for his Canadian Institute of Actuaries exams.

"When he first graduated from college and started working on his actuarial exam... we would go over there, my wife and I, over to their place, and he'd be absent," MacGillivray recalls. "He could choose to eat a big steak dinner, drink a bottle of wine and party with us or he could choose to study. He chose to complete that drive and study, and he did do what he needed to do."

Even before he completed his exams, he caught the eye of Manulife's higher-ups. Two years into his career, he was promoted to senior actuarial associate, a position normally held by people 10 years senior, says Geoff Guy, former Manulife chief actuary.

"Manulife has about 150 actuaries, and it has at any one time about 30 or so that are doing their actuarial exams," Guy says. "In that group of 30, there is always a handful, under half a dozen, that really stand out as people you could really expect to go to the top. He was one of those people."

For the next 10 years, Rooney worked in Manulife's U.S. Division, then based in Toronto. In 1994, he moved into marketing, a role that built up his frequent-flyer account. "I remember one stretch, I think it was about 15 cities in about 25 days. That's when we were doing road shows. We would do literally a city a day."

After two years as a product manager, Rooney applied for the vacant job of chief financial officer for U.S. savings and retirement services and North American group pensions, a position that reported to Gordon.

"He went to see the president when he knew the job was coming up," Dunlop says. "He asked for the opportunity to try it. ... He was in his mid-30s. I don't know many people that would do that. Most people would wait until they're tapped on the shoulder. Paul doesn't do that."

When Gordon replaced Matthews as GM of the Canadian division in 2001, he brought Rooney with him, putting him in charge of individual insurance. Rooney came to Waterloo shortly after Manulife's acquisition of Commercial Union's Canadian life insurance business, the first of three major acquisitions in four years. In 2002, the company bought the individual life and health business of Zurich Life Canada, integrating it into the Waterloo operation. Then, in 2004, Manulife's Canadian division absorbed Maritime Life as part of Manulife Financial's $15-billion purchase of John Hancock Financial Services.

Integrating the products, services and systems of the various companies into Manulife was a difficult task, Rooney says. Once again, he went on the road, this time to address the concerns of insurance advisers in the acquired company's distri-bution channels. In the case of Maritime Life, gaining the trust of the former rival's employees meant many trips between Ontario and Halifax for Rooney, Gordon and other Manulife executives.

But Rooney says the challenges of rapid growth energized him.

"I'm an aggressive personality," he says. "I try to say that in a positive way. I believe organizations only thrive and flourish through innovation, leadership and management who take opportunities to drive shareholder opportunities, to grow opportunities for employees by making the organization bigger."

Those opportunities are becoming rarer. Consolidation has reached the point where Canada's three biggest insurance companies - Manulife, Sun Life and Great-West Life Assurance Co. - combine for more than 60 per cent of the market in life and health insurance.

Nonetheless, Manulife is committed to 15-per-cent annual growth, Rooney says. It has been able to grow organically by expanding its distribution channels, entering new segments of the insurance market and by offering innovative new products, he says.

Rooney is particularly proud of IncomePlus, a variable-annuity product that provides a guaranteed minimum income to the policyholder, even if the market goes down. Launched in October, it is nearing $1 billion in assets under management. Although IncomePlus is considered a wealth management product rather than an insurance product, the Canadian division's entire management team played a role in its introduction.

Rooney is now in charge of more than 40 times as many people as he led in his first general manager role at Affinity. But he says he has no plans to change his style.

"The values that I live by, they don't matter, whether it's 10 people or 10,000 people," he says. "If you're just yourself, and you're genuine, and you're honest with everybody and you try to lead to the best of your ability, people are going to rally around you."


WATERLOO IS HOME TO THE CANADIAN DIVISIONS OF TWO OF CANADA'S BIG THREE LIFE INSURERS -- MANULIFE AND SUN LIFE

Manulife Canadian Division / Sun Life Canada

Major local presence established: 1985 (purchase of Dominion Life) / 2002 (purchase of Clarica)

Local employees: 3,840 / 3,620

Total Canadian division employees: 6,800 / 7,300

Top-ranking executive in Waterloo: Paul Rooney, general manager of Canada / 26 vice-presidents

2006 revenue: $9.89 billion / $9.33 billion

2006 shareholders' net income: $981 million / $995 million

Percentage of parent company's overall net income: 25 per cent / 48 per cent

Assets under management: $77.4 billion / $124.1 billion

Individual insurance sales, 2006: $376 million / $163 million

Individual wealth management sales, 2006: $6.61 billion / $2.57 billion

Group benefits sales, 2006: $322 million / $367 million

Group wealth management sales, 2006: $877 million / $2.1 million

Community involvement: St. Mary's Regional Cardiac Care Centre, Food Bank of Waterloo Region, HopeSpring Cancer Support Centre, United Way, universities and colleges / Health Care Recruitment Council, United Way, Kitchener-Waterloo Symphony

Sources: Manulife Financial and Sun Life Financial.

[UrbanWaterloo]

Sun Life gains exposure in U.S., sees resurgence in Canadian operations
February 11, 2010 12:31 PM | Sunny Freeman , The Canadian Press | http://ca.news.finance.yahoo.com/s/11022010/2/biz-finance-sun-life-gains-exposure-u-s-sees-resurgence.html

TORONTO - Sun Life Financial Inc. (TSX: SLF.TO) says its resurgent Canadian operations helped double its fourth-quarter profit while it worked aggressively to become better known in the key U.S. market.

The major insurance company's overall net income rose to $296 million or 52 cents per diluted share, up from $129 million or 23 cents a share in the fourth quarter of 2008.

Sun Life's Canadian operations produced most of the company's profit in the quarter. SLF Canada generated a $243 million profit during the quarter, with an improvement from individual insurance and investments accounting for most of the rebound from a $55-million loss for the division a year before.

Sun Life said its Canadian operation benefited from a number of factors, including improved equity markets, higher interest rates and a one-time boost from lower Ontario tax rates.

Well-known in Canada, Sun Life had less than two per cent customer awareness in the United States last year, where its losses improved to $9 million in the fourth quarter, from $679 million.

Canada's third-largest insurer has been rolling out its presence in the United States with advertising campaigns on high-profile sports programs intended to increase awareness about its U.S. division.

The major insurance company reportedly paid at least US$20 million to rename the home of the NFL's Miami Dolphins as Sun Life Stadium in time for this year's Super Bowl on Feb.7 and the NFL Pro Bowl on Jan. 31.

The exposure from that investment is already beginning to pay off for the company, which estimated it received US$18 million worth of advertising from the name change, said Jon Boscia, Sun Life's president in charge of U.S. operations.

"The media exposure surrounding those two events will go a long way towards improving our name recognition throughout the U.S."

The Toronto-based insurer hired a polling firm to determine the name has garnered 3.1 billion media impressions, or the number of times one person has seen the Sun Life name in the media since the end of 2009.

"(It is) a very impressive and cost effective vehicle for generating name impressions," Boscia said."It gives me confidence going into 2010."

After completing a year-long strategic review of its U.S. operations, the company believes it has seen positive sales momentum through 2009 in several parts of its business, including increasing its name recognition, to improving sales of employee benefit packages and individual life insurance plans.

Sun Life, with 14,500 employees, has operations in Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Indonesia, India, China and Bermuda.

Shares in the company were trading down nearly four per cent, or $1.23 to $30.13 with almost a million changing hands in Thursday morning trading on the Toronto Stock Exchange.


Sun Life News Release: http://www.sunlife.com/static/global/files/News%20Releases%202010%20PDFs/pa_e_SLF_reports_fourth_quarter_and_2009_results_F eb11.pdf

[UrbanWaterloo]

2009 marks another successful year for Equitable Life® despite difficult environment
http://www.equitable.ca/en/press-releases/feb-17-2010.asp

Waterloo, February 17, 2010 - Equitable Life of Canada® reported another year of growth and strong financial results in 2009. The Company announced solid earnings with a record $31.3 million in net income, a 34% increase over core earnings in 2008. Capital strength was demonstrated by an increase in Equitable Life's Minimum Continuing Capital and Surplus Requirement (MCCSR) ratio to 221% from 197% the previous year. As well, premiums and deposits reached $525 million in 2009, exceeding the half billion dollar mark for the first time.

A number of factors contributed to this strong performance in 2009. The Company was pleased with overall sales results given the marketplace and the recessionary economic environment. Equitable Life's Savings and Retirement business had a breakout year, achieving an increase in sales of 35% over 2008. As well, Equitable Life was successful in keeping costs well under control through a continued focus on expense management, resulting in lower general expenses than the previous year. Further contributors to earnings were the positive turnaround in equity markets following a turbulent 2008, and good claims experience in both Individual and Group lines of business reflecting prudent underwriting and claims management practices.

"Despite the uncertain economic environment over the past year, Equitable Life of Canada emerged from the downturn in a strong position," said Ronald Beettam, Equitable Life of Canada's President and Chief Executive Officer. "The ability of Equitable Life to succeed in difficult market conditions is evidence of our prudent management practices and our commitment to mutuality. In fact, the unstable economic environment has highlighted the benefits of being one of the largest mutual life insurance companies in Canada," added Beettam.

2009 financial highlights

Net income rose to $31.3 million, an increase of 34% over core earnings of $23.3 million in 2008.
Capital strength as measured by the MCCSR ratio ended the year at 221%, up from 197% the previous year.
Participating policyholders' equity increased to $269 million, up 13% from 2008.
Return on policyholders' equity was 12.4%.
Premiums and deposits increased by 15% from last year to $525 million.
Assets under administration increased $0.3 billion to $1.96 billion.

About Equitable Life of Canada
Since 1920, customers have been depending on Equitable Life for security through financial protection and support. One of Canada's largest mutual life insurance companies, Equitable Life focuses on providing long-term growth and stability to customers.
Through partnerships with MGAs and advisors, Equitable Life offers customers a wide selection of competitive products to meet a range of financial planning and health needs for individual life and health, individual savings and retirement and group life and health insurance.
www.equitable.ca

Media relations contact
Don Bisch
Director, Corporate Communications
1.800.722.6615
dbisch@equitable.ca

[UrbanWaterloo]

Largest Independent Insurance Brokerage in Canada Announces New Office in the Cambridge Corporate Centre
http://www.techtriangle.com/modules/news/newsitem.php?ItemId=194

Canada's Technology Triangle, Waterloo Region, Ontario - April 21, 2010 - Jones DesLauriers Insurance Management Inc. (JDIMI), the largest independent insurance brokerage in Canada, is pleased to announce a new Western Ontario branch, situated in the Cambridge Corporate Centre which opened its doors in January 2010.

This new office is located in the Cambridge Corporate Centre, a 25 acre business park featuring a mix of office, prestige/flex industrial and hospitality sites. Located at 600 Jamieson Parkway, Cambridge, Ontario, the single storey "drive-up" building can be seen from Highway 401 at Townline Road.

"JDIMI is a wonderful addition to the project," said Darren Shaw, Vice President at DTZ Barnicke who is handling the leasing for the development. "We see the 'Highway 401 corridor' in Cambridge continuing to emerge as a strategic office node in the Region."

JDIMI has selected Cambridge as their new location due to its strategic placement in the heartland of southern Ontario, in Canada's Technology Triangle (CTT).

"The key was to find an innovative and well-situated community to consolidate the 3 branches of Guelph, Ayr and Stoney Creek into one," said Trevor Waldron, Manager, Western Ontario at JDIMI. "Cambridge is located right on the super highway, and is also part of a growing area for the manufacturing sector which is one of our specialties. We are very pleased to be part of the collaborative area of Waterloo Region."

Being located in the CTT makes this new location easily accessible and centralized for both existing and prospective clients in the Western Ontario region. The consolidation of the 3 offices has already begun to maximize the strength and presence of JDIMI in the local marketplace and continue to be a high performing brokerage in Western Ontario.

"We are delighted to welcome the team from Jones DesLauriers Insurance Management Inc. to Cambridge as they consolidate their Western Ontario operations here," said Cambridge Mayor, Doug Craig. "It's a wonderful opportunity for our community and a testament to the growth of the insurance and business services cluster here at the gateway to Canada's Technology Triangle."

The addition of JDIMI further enhances an evolving Business and Financial Services sector here in the Region. This is an opportunity to bring awareness to our area from all over the world.

"The establishment of JDIMI's regional office in Waterloo Region supports findings of a new study to be released soon by Canada's Technology Triangle," expressed Bill Elliot, Vice-President Business Development, Canada's Technology Triangle Inc. "The study indicates that our Region not only has a significant historical Business and Financial Services cluster, but one that is growing with opportunity for national and global prominence."

About Jones DesLauriers
Jones DesLauriers Insurance Management Inc. (JDIMI), the largest privately held insurance brokerage in Canada, is committed to offering only the best commercial and personal insurance, financial services and mortgage experience.
The company prides itself on its passion for the industry, as each staff member has a dedicated and sophisticated approach to their knowledge and understanding of insurance and risk. They are dynamic and entrepreneurial in the way they combine industry knowledge, commitment to training, and personalized customer service. JDIMI has seven offices in Canada to better serve their clients - Toronto (Head Office), Cambridge, Belleville, Ottawa, Brampton, Collingwood and Red Deer, Alberta. For more information, visit www.jdimi.com.

[UrbanWaterloo]

Sun Life Financial Canada (227 King Street South, Waterloo) - Tallest Building in Waterloo Region
April 28, 2010

http://i196.photobucket.com/albums/aa262/AndrewEH/SunlifeTowerKingUnion-April282010-1.jpg

[UrbanWaterloo]

FaithLife Financial names new President to lead continued growth
June 2, 2010 | http://www.faithlifefinancial.ca/en/inc/resources/NewFLFpresident_final.pdf

WATERLOO, ONTARIO – Karen Bjerland will take the helm as new President and CEO of FaithLife Financial. As the first female CEO for FaithLife Financial, Ms. Bjerland will continue to lead the not-for-profit financial services organization’s continued growth into the future, including increasing the organization’s reach into the broader Christian community.

“It gives me great pleasure to announce that Karen Bjerland has been named as the successor to Dr. Dieter Kays, who recently announced that he will retire in September, 2010, after taking the organization to new heights over the past six years,” said Wayne Musselman, Chair of the Board of Directors.

“I have been very impressed with Karen’s strong leadership skills, success in leading teams, her outstanding communication and organizational development skills, as well as her ability to manage change and lead people during turbulent times,” added Musselman. “She’s passionate about fraternalism and is recognized in the industry for her skills in building partnerships. I am confident in Karen’s ability to continue to grow FaithLife Financial into the future, and I look forward to working with her in this capacity.”

“It is a tremendous honour to lead FaithLife Financial into the future. I look forward to meeting many of our members, and learning more about the causes they care about. We are part of such an incredibly exciting organization because, as we grow financially, we are able to increase our outreach to those in need, at home and abroad,” said Karen.

Since joining FaithLife Financial in 1980, Ms. Bjerland has played pivotal roles in a number of areas and has assumed increasingly senior roles including Regional Sales Manager, Director Field & Branch Services, as well as Vice-Presidential roles in Member Services, Field Services, Brand Development, Fraternal and Sales.

In addition, Ms. Bjerland is Board Chair at Trinity Village, a long-term care and retirement facility in Kitchener, Ontario. She is a Board Member of the Evangelical Lutheran Foundation (Eastern Canada) and the Canadian Fraternal Association. She is active in the Lutheran community.

[UrbanWaterloo]

Economical Mutual Insurance Company Announces Intention to Demutualize
Waterloo, Ontario | December 14, 2010 | Link (http://www.newswire.ca/en/releases/archive/December2010/14/c5131.html)

The Economical Mutual Insurance Company, one of Canada's largest property and casualty insurance providers, today announced that its Board of Directors intends to pursue a process to convert the Company from its existing mutual ownership structure.

This would make Economical the first property and casualty insurance company in Canada to demutualize. The conversion is targeted to be completed in 2011, subject to approval by mutual policyholders and the Minister of Finance.

"The Board of Directors has determined that demutualization is in the best interests of the Company and all its stakeholders, including our mutual policyholders," said Gerald Hooper, Chairman of the Board of Economical Mutual. "As our stakeholders know, the decision to pursue demutualization follows a review by a Special Committee of independent directors. It was formed to examine strategic alternatives about a potential transaction several months ago. The Board has agreed with the recommendation of the Special Committee that demutualization holds the greatest potential benefits for the Company."

The mutual insurance company structure, which Economical has had since its founding in 1871, has distinct advantages, including stability and the ability to maintain a long-term perspective, but it also restricts the company's access to additional capital to continue to fund growth in a highly competitive and consolidating industry. Demutualization will help remove this restriction.

The Special Committee engaged independent financial advisors and legal counsel as part of its strategic review and will continue consultations with OSFI and will enter into consultation with the Department of Finance to identify the most effective route to demutualization. It has identified several alternatives and is currently focusing on two:


conversion, through an initial public offering, from a mutual company to a public corporation with shares traded on a stock exchange;
a sponsored demutualization which would involve a transaction with another strategically-aligned company that would invest in Economical to acquire a significant ownership position, perhaps as much as 100%.

"This dual-track approach allows us to focus on maximizing long-term value for mutual policyholders, while considering the interests of our other policyholders, brokers, employees and community," said Karen Gavan, Chair of the Special Committee. "We intend to expedite this process but to some extent the timing will be dependent on the regulatory approval process. New regulation and new legislation may be required and that can be expected to take several months. "

She added: "In the end, we expect there will be significant direct financial benefits for mutual policyholders but, at this point, no one can predict the timing or the size of the benefit they may get."

Katherine Mabe, President and Chief Executive Officer said: "The Board of Economical Mutual is setting the Company in a new corporate direction. While that is under way, the executive team and all our people will remain focused on ensuring we provide the highest quality service to our valued clients and brokers."

A final recommendation on demutualization and a schedule for completion is expected to be presented to mutual policyholders at the next annual meeting which is scheduled for May 26, 2011. Meanwhile, the Board will provide updates on progress to its stakeholders. In the interest of fairness to existing mutual policyholders, the Board has previously instituted a moratorium on the issuing of new mutual insurance policies.

The Board of Directors believes its decision to demutualize means recent efforts by VC & Co. to persuade mutual policyholders to sign irrevocable six-year agreements to pay substantial fees are redundant, serve no constructive purpose, and are not in the best interests of mutual policyholders.

Blair Franklin Capital Partners Inc. is the financial advisor and Miller Thomson LLP is legal counsel to the Special Committee of the Board of Economical Mutual.

About The Economical Insurance Group
Founded in 1871, The Economical Insurance Group® (TEIG®) is one of Canada's leading property and casualty insurers, with $4.6 billion in assets and a surplus exceeding $1.1 billion. Canadian owned and operated, TEIG provides a wide range of insurance products throughout North America. TEIG Member Companies include Economical Mutual Insurance Company® (including Western General® Farm Division), Waterloo Insurance Company®, Perth Insurance Company®, The Missisquoi Insurance Company®, Federation Insurance Company of Canada®, Family Insurance Solutions and The Mattei Companies.

[UrbanWaterloo]

I'm hoping Economical converts into a publicly traded corporation, although I have to admit I'm somewhat nervous about this change.

I don't want to see them go down the same road as Mutual Life and end up being acquired. Although we're lucky to have gotten the 2nd best deal possible from Sun Life, being designated the Canadian Headquarters, I'd prefer to see Global Head Offices in our city. Imagine for instance if the roles had been reversed and Mutual had acquired Sun, perhaps the surface parking lot at Park & John would be home to a new global office tower today.

I'd like to see Mutual use their new currency to go on an aggressive acquisition spree, doubling in size during 2010s. They're Waterloo Region's largest financial services company, so I wish them the very best!

[IEFBR14]

The Board of Directors believes its decision to demutualize means recent efforts by VC & Co. to persuade mutual policyholders to sign irrevocable six-year agreements to pay substantial fees are redundant, serve no constructive purpose, and are not in the best interests of mutual policyholders.

Evidently the move to demutualize is at least partly driven by this: Showdown looming at Economical (http://www.financialpost.com/opinion/columnists/Showdown+looming+Economical/3937355/story.html).

[UrbanWaterloo]

Policyholder Proposals Submitted to Replace Board of Economical Mutual Insurance Company
Toronto | January 4, 2011 | Link (http://www.newswire.ca/en/releases/archive/January2011/04/c8446.html)

VC & Co. Advisory Limited confirmed today that policyholder proposals were submitted to Economical Mutual Insurance Company of Waterloo, Ontario on December 30, 2010 that call for the replacement of Economical's current board of directors.

"The policyholder proposals give Economical's mutual policyholders the opportunity to elect a new board that will properly safeguard the interests of Economical and its employees, brokers and other stakeholders and ensure that mutual policyholders receive fair value for their mutual policies on a timely basis," said Michael D. Woollcombe, Executive Vice-President of VC & Co. Advisory Limited.

"We are committed to giving mutual policyholders a choice concerning the board's leadership of Economical. We are also committed to transparency and fair treatment concerning the value of Economical's mutual policies and the process to realize that value. A new, qualified and independent board will ensure Economical proceeds in a manner that best serves the interests of the company, the mutual policyholders and other stakeholders."

The policyholder proposals, which have been signed by more than 100 mutual policyholders, will be the subject of a vote at the next meeting of Economical's mutual policyholders, currently scheduled for May 26, 2011. Prior to that meeting, a detailed information circular will be distributed outlining the reasons that change is required and the names and relevant experience of the alternative board candidates.

[UrbanWaterloo]

Manulife’s strategy delivers significant sales growth, reduced risk profile and stronger capital levels. Fourth quarter earnings of $1,794 million is a record for the Company.
February 10, 2011 | PDF (http://www.manulife.com/public/files/201/1/Q4newsrelease2010.pdf)


Delivering on business strategy:
Fourth quarter sales of insurance products targeted for growth were up 34 per cent compared to fourth quarter 2009.
Fourth quarter sales of wealth products targeted for growth were up 28 per cent compared to fourth quarter 2009.
Fourth quarter insurance sales in Asia were up 56 per cent compared to fourth quarter 2009. This reflects the focus of growing through diversification of products and channels in our emerging markets and in our larger markets of Japan and Hong Kong.
Sales in Canada reflected the value of our diversified franchise. Strong fourth quarter momentum contributed to record sales in individual life and travel insurance, and record deposits in Manulife Mutual Funds. Manulife Bank posted an 18 per cent increase in fourth quarter new loan volumes over 2009.
U.S. Division demonstrated solid progress in repositioning the U.S. insurance business and growing the wealth business. John Hancock Mutual Funds achieved record sales levels of US$9.7 billion, 48 per cent higher than the previous year. John Hancock Retirement Plan Services ended the year with full year sales of US$5.1 billion, up 16 per cent from 2009. Total wealth funds under management reached a record level at US$188 billion.
Total funds under management increased $35 billion from 2009 to reach $475 billion.
Ahead of plan in reducing earnings sensitivity to equity markets and interest rates. Achieved a 43 per cent and 18 per cent decline in equity market and interest rate sensitivity relative to third quarter 2010, respectively.
Strong capital levels, with MLI MCCSR up 15 points in the quarter to 249 per cent, accompanied by a lower risk profile going forward.
Record quarterly net income of $1,794 million supported by favourable equity markets and higher interest rates. Full year net loss was $391 million due to the goodwill impairment and strengthening of reserves in the third quarter.
Fourth quarter net income excluding the direct impact of equity markets and interest rates was $933 million. A gain of $184 million related to the dynamically hedged variable annuity business was not considered a “direct” impact of equity markets and interest rates and therefore was included in the $933 million.

TORONTO – Manulife Financial Corporation (“MFC”) today reported significant progress in its business strategy of building sales growth in targeted areas and reducing equity market and interest rate sensitivity during the fourth quarter ended December 31, 2010. The Company also reported strong capital levels and a record quarterly net income.
Net income attributed to shareholders was $1,794 million for the fourth quarter ended December 31, 2010. This equates to fully diluted earnings per share of $1.00 and return on common shareholders’ equity of 29 per cent. For the fourth quarter of 2009, MFC reported net income attributed to shareholders of $868 million or $0.51 per share and return on common shareholders’ equity of 13 per cent.
Higher equity markets and the increase in interest rates were significant contributors to the record level of earnings in the quarter. Gains related to equity markets were $441 million, while interest rate gains were $604 million.
Chief Executive Officer Donald Guloien stated, "We have made significant progress on our strategic goals. We are diversifying our businesses and reducing our sensitivities to equity markets and interest rates, while strengthening our capital position."
Mr. Guloien added, “We had strong growth in Asia, diversification in Canada and continued progress in the strategic repositioning in the U.S. We are proud of our continuing expansion and growing sales levels across Asia as a whole. In North America, our full year deposits for Canadian Mutual Funds almost tripled 2009 levels and U.S. Wealth reached a record level of assets under management.”
Chief Financial Officer Michael Bell observed, "Consistent with our plan, we grew our targeted, high return businesses and further reduced our equity market and interest rate sensitivities. We are now close to achieving our year-end 2012 hedging objectives and are ahead of the pace we had originally planned. Finally, we ended the year with strong capital ratios as MLI's MCCSR was 249 per cent, supported by the strong earnings in the quarter. We believe our 2015 net income objective of $4 billion, described at our Institutional Investor Day in November 2010, continues to be attainable and appropriate.
"Our sales results are in line with our strategy of accelerating the growth of products that have favourable returns on capital and lower risk profiles while at the same time pulling back or eliminating products that give rise to earnings sensitivity or produce low returns on capital employed. Highlights include:
Total Company insurance sales for products we are targeting to grow were almost $600 million for the quarter, a year over year increase of 34 per cent on a constant currency basis.
Total Company insurance sales of products not targeted for growth (universal life products with lifetime no-lapse guarantees, guaranteed non-par whole life and long-term care products in U.S. Insurance) totaled $111 million for the quarter, a year over year decline of 23 per cent on a constant currency basis.
Total Company wealth sales for products we are targeting to grow were $7.7 billion for the quarter, a year over year increase of 28 per cent on a constant currency basis.
Fourth quarter sales of wealth products not targeted for growth (variable annuity (“VA”) and book value fixed deferred annuity products) totaled $1.5 billion, a year over year decline of 25 per cent on a constant currency basis.
The Company also made significant progress in reducing its earnings sensitivity to equity markets and interest rates. The sensitivity of net income attributed to shareholders to a 10 per cent decline in equity markets as at December 31, 2010, declined to approximately $740 million, down 43 per cent from $1,290 million as at September 30, 2010. The sensitivity of net income attributed to shareholders to a one per cent decline in interest rates as at December 31, 2010 declined to $1.8 billion, down 18 per cent from $2.2 billion as at September 30, 2010.

FINANCIAL RESULTS
Fourth quarter net income attributed to shareholders was $1,794 million. Reported net income benefitted from $861 million in equity market and interest rate direct impacts, which if excluded, would result in net income of $933 million. There were a number of other notable items in the quarter which provided an additional benefit of $241 million and, when deducted, resulted in adjusted earnings from operations of $692 million.
Net income excluding the direct impact of equity markets and interest rates is a non-GAAP profitability measure. It shows what the net income attributed to shareholders would have been assuming that existing hedges are unchanged and that interest and equity markets performed as assumed in our policy valuation. We consider the gains or losses on the variable annuity business that is dynamically hedged to be an indirect impact, not a direct impact, of changes in equity markets and interest rates.


For the quarter ended December 31, 2010 | (C$ millions) Gain (loss)
Reported net income attributed to shareholders | $1,794
Less the direct impact of higher equity markets and higher interest rates on: |
Variable annuity guarantee liabilities that are not dynamically hedged | $274
General fund equity investments supporting policy liabilities and on fee income | 117
Macro equity hedges, excluding expected cost | (48)
Fixed income re-investment assumptions used in the determination of policy liabilities | 516
Net gain on sale of available-for-sale bonds | 2
Total direct impact of equity markets and interest rates | $861
Net income excluding the direct impact of equity markets and interest rates | $933
Less other notable items:
Gains on variable annuity business that is dynamically hedged | $184
Other favourable investment experience | 61
Tax related gains on closed tax years | 103
Net policyholder experience gains | 36
Change in accounting policy for deferred acquisition costs in the Hong Kong pension business | (39)
Refinements in actuarial methods and assumptions | (54)
Changes in currency rates from June 30, 2009 when Adjusted Earnings from Operations was defined | (50)
Total other notable items | $241
Adjusted earnings from operations | $692

Increased hedging costs, including the $34 million estimated expected cost of the macro equity hedges entered into late in the fourth quarter, resulted in adjusted earnings from operations being slightly below the estimated range of $700 million to $800 million for each quarter in 2010 as outlined in our 2009 Annual Report. Under Canadian securities rules the Company is no longer required to report on adjusted earnings from operations in 2011. We will report on net income excluding the direct impact of equity markets and interest rates, as well as highlight other material items.

Full year net loss attributed to shareholders was $391 million as a result of over $3 billion of charges reported in the third quarter for goodwill impairment and changes in actuarial methods and assumptions. These strengthened our balance sheet and reserves. Full year adjusted earnings from operations was $2,871 million.


For the year ended December 31, 2010 | (C$ millions) Gain(loss)
Reported net loss attributed to shareholders| $(391)
Notable items |
Goodwill impairment charge related to the U.S. Division | $(1,039)
Changes in actuarial methods and assumptions | (2,072)
Net market and investment related experience and other notable items | (151)
Total notable items | $(3,262)
Adjusted earnings from operations | $2,871

Both reported net income (loss) attributed to shareholders and adjusted earnings from operations for the full year 2010 were balanced across our three major operating divisions.

For the full year 2010 (C$ millions) | Reported net {br}income (loss) {br}attributed to {br}shareholders | Adjusted earnings {br}from operations
Asia Division | $623 | $719
Canadian Division | 950 | 718
U.S. Division | 759 | 781
Reinsurance and Corporate and Other excluding items below | 388 | 468
| $2,720 | $2,686
Currency adjustment | | 185
Changes in actuarial methods and assumptions and {br}third quarter goodwill impairment | (3,111) | Not applicable
Total | $(391) | $2,871

SALES AND BUSINESS GROWTH

Canadian Division

“I am very pleased with the progress we’ve made in 2010”, said Paul Rooney, President & CEO, Manulife Canada. “We had strong sales success across all of our business units with record life insurance and travel sales in Individual Insurance, as well as record deposits in Manulife Mutual Funds. Manulife Bank saw sales increase steadily throughout the year, despite a very competitive environment and in September we launched Manulife Trust Company, providing another avenue for advisors to introduce new customers to Manulife’s diverse portfolio of wealth management products. Our group businesses had solid sales results with Group Retirement Solutions advancing its market share in the defined contribution segment, a key market for us.”
In Canada, fourth quarter 2010 individual wealth management sales, excluding variable annuities, were up 21 per cent over the fourth quarter of 2009, while full year 2010 sales rose to $6.7 billion, up 11 per cent compared to 2009 levels. The growth was spurred by record mutual fund sales and steady increases in Manulife Bank’s new lending volumes.

Strong momentum in mutual funds drove record fourth quarter and annual sales results. Deposits of $1.4 billion for full year 2010 almost tripled 2009 levels, led by funds focused on yield and safety, industry categories currently favoured by investors. As expected, sales of fixed products were significantly below the record levels of 2009 when investors sought safety in fixed returns. This shift in product mix reflects improved consumer confidence in investment markets, as well as our focused strategy to grow our mutual fund franchise.
Manulife Bank loan volumes were $4.4 billion for full year 2010, up seven per cent from 2009 levels. Bank sales rose steadily throughout the year with new loan volumes exceeding $1.2 billion in the fourth quarter, up 18 per cent from the same period in the prior year. This reflects the success of our integrated business strategy supported by well-received consumer advertising campaigns. The business environment remains challenging with reduced activity in the Canadian housing market and aggressive competition across the financial industry to retain and attract business.

Canadian Division Individual Insurance also had a record year with annual sales increasing 12 per cent from 2009 levels driven by an 18 per cent rise in life insurance sales. Fourth quarter 2010 sales were up 23 per cent from the same period in the prior year.

Sales rose sharply in the fourth quarter with strong increases in permanent products, both universal life (“UL”) and whole life. While fourth quarter sales are traditionally the highest in the year, they were also boosted in 2010 by increased activity in advance of announced price increases on UL which took effect for new business received after December 3, 2010.
Continued strong growth from our travel partners drove record travel sales for the year, up 19 per cent from full year 2009. Fourth quarter travel sales were 13 per cent higher than the same period in 2009.

Sales in the Canadian group businesses were solid. Group Benefits’ sales for the year were slightly below 2009 levels with momentum in the small case market building throughout the year. Fourth quarter 2010 Group Benefits’ sales were eight per cent higher than the same period in the prior year. In 2010, Group Retirement Solutions increased its new business market share in its target market defined contribution segment. However, full year total sales volumes of $933 million in 2010 were down from $1.3 billion in 2009, reflecting reduced activity across the industry in both the defined contribution and group annuity market segments.

Awards & recognition

In Canada, Manulife Mutual Funds was recognized at the 16th Annual Canadian Investment Awards for excellence in investment management, and for its marketing campaign launching a new fixed income fund.

[UrbanWaterloo]

Economical Welcomes Court Decisions On Annual Meeting of Mutual Policyholders
Ontario Superior Court of Justice Provides Clarity and Protects Mutual Policyholder Privacy
April 6, 2011 | Economical Mutual Insurance Group | Link (http://www.newswire.ca/en/releases/archive/April2011/06/c2096.html)

The Economical Mutual Insurance Group, one of Canada's largest property and casualty insurance companies, today announced that the Ontario Superior Court of Justice has provided its decisions on the Company's application for rulings seeking clarity on procedures related the Company's Annual Meeting on May 26, 2011.

The Court ruled that two of three proposals from dissident mutual policyholders led by VC & Co. Advisory Limited can be considered at the Company's Annual Meeting. The first of these dissident proposals calls for a vote in which mutual policyholders will be asked to remove the current Board of Directors. The other proposal is for a vote to replace the current Board with so-far unnamed individuals nominated by the dissidents. The Board opposes the dissident proposals as not being in the best interests of the Company.

The Court ruled that the dissident proposal to amend the Company's by-law providing for the staggered election of directors would violate the Insurance Companies Act and cannot be considered. The by-law calls for the annual election of a portion of the Board whose three-year terms as directors have been completed.

The Court also rejected, in whole, a cross-application from the dissidents which sought changes to the procedures used for the Annual Meeting, including requiring the Company to provide personal information about all mutual policyholders to the dissident group, which the Court found would violate the privacy rights of those individuals.

"We sought a Court ruling to ensure all parties were clear on the legality of the dissident proposals, which were unprecedented in our industry. We welcome the clarity the Court has provided and its timely decisions which will allow us to proceed with our scheduled Annual Meeting date of May 26th ," said Gerald Hooper, Chairman of the Board of Economical. "The Company is particularly pleased that it has been able to protect the privacy of our mutual policyholders. We have no intention of appealing the Court's decisions."

With the Court's determination completed, the Company expects to mail a Proxy Circular and related materials to all mutual policyholders shortly. The Circular will describe the Company's progress in its planned demutualization and will set out the reasons why the Board believes mutual policyholders should reject the remaining dissident proposals and support the current Board.



Court Orders Vote on Proposals to Replace Board of Economical
April 6, 2011 | VC & Co. Advisory Limited | Link (http://www.newswire.ca/en/releases/archive/April2011/06/c2104.html)

VC & Co. Advisory Limited announced today that Economical Mutual Insurance Company has been ordered to proceed with a vote of its mutual policyholders on proposals to replace Economical's board of directors.

The decision, by Justice John Cavarzan of the Ontario Superior Court of Justice, was issued earlier today and followed a three-day hearing last month. In his decision, Justice Cavarzan cited the well-established principle that Economical should be directed by the will of the majority of its mutual policyholders.

Court Decision Supports Policyholders' Right to Change Board

"The Court's decision clearly supports the position of the more than 100 mutual policyholders who submitted the proposals, which is that the mutual policyholders are entitled to elect a board in which they have trust and confidence at the upcoming annual meeting," said Michael D. Woollcombe, Executive Vice-President of VC & Co. Advisory Limited. "The decision rejects Economical's position, which would have prevented mutual policyholders from being able to vote to replace the board."

The Court hearing was called after the current board of Economical, in January 2011, challenged the legality of proposals calling for its replacement.

"By commencing these legal proceedings, the current board was clearly attempting to avoid a vote on its leadership and to prevent mutual policyholders from exercising their fundamental ownership right to elect a board of their choosing. While it is unfortunate that the current board chose to pursue this litigation against the interests of its own mutual policyholders, we are gratified that the Court has ruled that the proposals to remove the current board and elect a new board must go before the May 26, 2011 meeting for a majority vote by mutual policyholders," said Mr. Woollcombe.

"Today's Court decision represents another key step for mutual policyholders towards finally putting in place a board that has the skills, experience and commitment to properly govern Economical at this critical crossroads. That new board will be committed to responsibly delivering full value to Economical's mutual policyholders in a transparent and timely manner that best serves the interests of the company and all its stakeholders, including its brokers, employees and retirees," Mr. Woollcombe continued.

Mutual Policyholders to Receive Dissidents' Information Circular Shortly

In the near future, all mutual policyholders of Economical will be receiving a detailed dissidents' information circular outlining the reasons why a change in the board is required as well as the names and relevant experience of the new, highly qualified and independent candidates who will be proposed for election to the board at the May 26, 2011 meeting.

The Court declined in its decision today to impose the procedural protections around the May 26, 2011 meeting that had been sought on behalf of mutual policyholders. Mr. Woollcombe commented, "While we are disappointed by this aspect of the decision, we remain completely committed to ensuring that a fair proxy and voting process occurs in relation to the May 26, 2011 meeting such that the will of the majority is ascertained, and are considering all alternatives to ensure that occurs."

The Court also declined in its decision today to require Economical to place the proposal amending Economical's by-laws before the May 26, 2011 meeting. However, that proposal is not required to allow mutual policyholders to replace the full board at the May 26, 2011 meeting.

[UrbanWaterloo]

ECONOMICAL MUTUAL BOARD OF DIRECTORS ENDORSED
BY OVERWHELMING MAJORITY OF MUTUAL POLICYHOLDERS
Dissident proposal rejected by 77% of votes cast at Annual and Special Meeting
May 26, 2011 | Economical | PDF (http://www.economicalinsurance.com/en/resourcesGeneral/2011_May26_AGM%20outcome.pdf)

The mutual policyholders of Economical Mutual Insurance Company voted decisively to reject a dissident proposal that would have replaced the entire Board and to elect the Company’s three nominees to the Board of Directors at Economical’s Annual and Special Meeting today.

Mutual policyholders voted overwhelmingly to defeat a proposal from 105 dissidents led by VC & Co. Advisory Limited that called for the replacement of the Board by dissident nominees. With a very high total vote of 841 proxies and ballots cast at the meeting, the Board won the support of 649 or 77% of the votes, compared with 192 or 23% for the dissidents.

In a separate vote, mutual policyholders voted to elect the Company’s three nominees, John Bowey, Karen Gavan and David MacIntosh, for the available positions in the Company’s normal staggered election of directors. The three dissident nominees for the same positions were each defeated.

“We are gratified but not surprised by the strong support shown by our mutual policyholders,” said Gerald Hooper, Chairman of the Board of Directors of Economical. “We were confident that, as the owners of the Company, our mutual policyholders would recognize that they are best served by an experienced and unified Board with a clear commitment to completing the demutualization of Economical and unlocking the value of the Company for them.”

“The Board thanks the mutual policyholders for their continued confidence, but we also thank our employees, brokers and all other stakeholders for their dedication and support during the period leading up to this vote,” Mr. Hooper said. “Throughout this contest, the Board has sought to protect the best interests of all mutual policyholders and we intend to continue to do that as we work towards finishing the demutualization we began. In the end, everyone – even the dissident mutual policyholders – will agree that the outcome of today’s meeting is the best result for Economical.”

Karen Gavan, Chair of the Board’s Special Committee with oversight of the demutualization process said: “The dissident campaign diverted attention from our continuing work towards demutualization, but it did not delay it. Economical is exactly where it should be, and the only open question is the timing of new federal regulations that will allow the demutualization to be completed. We do not control that, but are assisting the Department of Finance as much as we can to expedite the drafting of regulations. We will continue to keep all the Company’s stakeholders fully informed on our progress.”

The votes at the Company’s Annual and Special Meeting were conducted both by proxies submitted in advance and by confidential ballots by those present in person at the meeting. Mutual policyholders were presented with a report on the Company’s financial and operating performance by President and CEO Katherine Mabe, as well as a progress report on the demutualization plan by Karen Gavan. Michael Woollcombe of VC & Co. was given the opportunity to speak on behalf of the dissident proposal and nominees.

[UrbanWaterloo]

New directors add heft as Economical prepares for demutualization
David Wilson & Richard Freeborough join Economical's board of directors
February 7, 2012 | CNW | Link (http://www.newswire.ca/en/story/917493/new-directors-add-heft-as-economical-prepares-for-demutualization)

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The Economical Insurance Group, one of Canada's largest property and casualty insurers, today announced that David Wilson, the past chair of the Ontario Securities Commission, and Richard Freeborough, chair of the International Order of Foresters and the board of governors of the University of Guelph, have joined Economical's board of directors.

"David and Richard are valuable additions to the board of The Economical Insurance Group as we prepare to be the first Canadian property and casualty insurance company to demutualize," said Chairman Gerry Hooper.

Mr. Wilson, chair of the Ontario Securities Commission from 2005 to 2010, brings to Economical a wealth of capital markets experience after a 35-year career in Canada's securities industry. As vice chair of Scotiabank and chair and CEO of Scotia Capital, he was responsible for Scotiabank's global wholesale activities, including its corporate, institutional and government relationships on a global basis. Economical will draw on his depth and expertise through membership on the board's Investment and Risk Review Committees, as well as the Special Committee responsible for guiding the demutualization process.

Mr. Freeborough brings more than a decade of board leadership since retiring as deputy chair of KPMG LLP in 1999, after 39 years of financial services practice. Economical will leverage his experience through membership on Economical's Audit and Corporate Governance and Conduct Review Committees.

"In the coming months we hope to receive the regulatory framework for demutualization from the Department of Finance," added Mr. Hooper. "Upon demutualizing, we will have access to capital to grow and make strategic investments in tools and processes that will improve our productivity and the level of support we provide our broker partners who help generate our business."

[UrbanWaterloo]

CANADA'S LARGEST MANAGING GENERAL AGENCY FORMED
February 29, 2012 | Financial Horizons Inc. | Link (http://www.financialhorizons.com/PressReleases/Feb29_2012_eng.html)

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John Hamilton, CEO of Financial Horizons Inc., and James McMahon, President of Force Financiere Excel today announced the formation of Canada's largest Managing General Agency (MGA).

The transaction involves the purchase of 100% of the shares of Force Financiere Excel by Financial Horizons Inc. in exchange for cash and shares in Financial Horizons' parent company, Granite Global Solutions. The transaction closed on February 29, 2012.

Combined, Financial Horizons and Excel have 4000 plus brokers, over $3.5 billion in Segregated Fund assets and in excess of $220 million of life premium in force.

Financial Horizons will operate with three divisions in Canada: an Ontario and Atlantic Division; a Western Canada Division and a Quebec Division. James McMahon will be President of the Quebec Division which will continue to operate under the Force Financiere Excel brand for the immediate future. The Excel management team, office locations. and office staff will essentially remain unchanged. On a day-to-day basis, it will be "business as usual" for the advisors, clients and the companies represented by Excel.

"This is another step in the growth of Financial Horizons as a leading MGA", said John Hamilton. "The addition of Excel gives Financial Horizons a first class management team with an excellent reputation in the Quebec market place. Plus they share our priority of providing our brokers with the best service in the industry."

"This is a very positive move for our brokers," commented James McMahon. "For some time, we have been looking to join a firm that has the same values, commitment and vision that we have. Financial Horizons met those criteria".

"We are delighted that Excel has joined the Financial Horizons organization" said Murray Wallace, President, Granite Global Solutions. "This expands our position in Quebec and solidifies Financial Horizons position in the MGA market in Canada".

About Financial Horizons
Financial Horizons Group is a large Managing General Agency (MGA) providing life company products and services to over 2,200 independent brokers Canada wide. FHI provides brokers with a mix of resources, products, services and value added support, helping them to grow their business. Financial Horizons Group and its staff of professionals have extensive experience in the life insurance industry, and are dedicated to providing accurate and timely quotations to independent producers from the industry's leading financial institutions. Financial Horizons' Head Office is located in Kitchener, Ontario. (@ 22 Frederick Street (http://www.financialhorizons.com/contact.html#head)) http://www.financialhorizons.com

About Force Financiere Excel
Force Financiere Excel is a Quebec based Managing General Agency that offers a complete and competitive range of financial services through its independent advisors. The advisors do not represent any particular insurance company and can therefore help individuals select the products and services that best suit their needs. Participating companies are selected based on their financial strength and are industry leaders. http://groupexcel.com

About Granite Global solutions
Headquartered in Toronto, Ontario, Granite Global Solutions is a Canadian corporation operating business lines that are leaders in their respective markets: Granite Claims Solutions, the country's fastest growing niche claims adjusting organization; Granite Health Solutions (Sibley & Associates), Canada's largest disability management company; CKR Global, Canada's largest private investigation and risk mitigation agency and Rochon Engineering, a leading specialized forensic engineering business, among others. www.graniteglobalsolutions.com (http://www.graniteglobalsolutions.com)