Jacques Martineau

Chairman of the Board's Message

As in years past, the board of directors closely followed the Company’s development this year. We are bound by the fiduciary duty entrusted to us by the mutual members to diligently fulfil our mandate.

Despite a slight drop in earnings compared to last year, the Board of Directors fully backs the Company’s solid strategic orientations and subsequent action plans. This year, we again focus on the conclusive results from market development in the ROC and new online product sales.

In 2015, there was, however, a slight decline in our net earnings, from $4.9 down to $4.5 million. According to the Board of Directors, the factors contributing to this decline are well identified and under control, as illustrated in the President and Chief Executive Officer’s report.

The Board and management will continue to invest in the development plan.

It is true that, for several years now, the financial services industry, particularly the insurance sector, has had to adapt to a low interest rate environment, which limits insurers’ latitude for action. Despite this, Humania Assurance’s management team is forging ahead with its development plan, with the full support of the Board of Directors. It was under these circumstances that the Board gladly welcomed the Fonds de solidarité des travailleurs du Québec’s (F.T.Q.) interest in investing in the Company by becoming a minority shareholder. Starting in 2012, the Board of Directors authorized management to proceed with a legal restructuring of the Company in order to gain access to external capital to support its development initiatives.

Again in response to the low interest rates, the directors completed a thorough analysis of the situation and then agreed to make changes to the investment policy by adopting new financial instruments to generate the greatest possible returns on the management of our equity while exercising a healthy degree of caution. The impact analyses of these new measures are already showing positive results.

Generating a greater return on our equity while exercising a healthy degree of caution.

The Board also places great importance on identifying and managing the Company’s risks. The Board of Directors and the Audit Committee made a point of reviewing the acceptable risk tolerance level for the Company in accordance with the risk management policy, which provides the framework for the Company’s operations.

With the same discipline, we monitored our operations to ensure the Company’s compliance with legal and regulatory requirements. Action plans proposed by management were carried out in accordance with the Board’s expectations.

The directors are making every effort necessary to ensure the Board of Directors adds real value to the Company. The Company must be able to depend on directors who are competent, upstanding and committed to the success of Humania Assurance. Each member is aware of this reality and is fully invested again this year in advising, supporting and overseeing the management team. In addition, the activity reports drawn up by the Board’s various committees, found at the end of the annual report, demonstrate the dedication of each committee.

I thank my colleagues on the Board of Directors, as well as the Company’s employees and our management team for their ongoing dedication.

Jacques Martineau

Jacques Martineau
Chairman of the Board