Audit Committee

Composition

The Audit Committee is composed of independent directors. It must comprise at least three members, the majority of whom do not sit on another committee of the Board of Directors. Each committee member must have appropriate knowledge on financial matters, and at least one must have accounting or financial management expertise.

Members

Johanne Cassis, Chairwoman
René Delsanne
Guylaine Leclerc

Mandate

The Audit Committee is responsible for overseeing the financial reporting process and ensuring financial statements are reported in compliance with the International Financial Reporting Standards (IFRS). Furthermore, the committee ensures a suitable internal control system is in place, monitors risk management processes, recommends the Company’s risk profile and corresponding action plan to the Board of Directors, and oversees the audit process as well as procedures implemented by the Company to ensure compliance with legislation and regulations in the areas of accounting and finance.

Activity Report

Following the departure of Guylaine Leclerc to fulfil the role of Auditor General of Quebec, Daniel McMahon was elected as a new committee member.

With regard to financial information, the committee primarily reviewed the independent auditor’s report for the financial year ending December 31, 2014, received the Dynamic Capital Adequacy Testing (DCAT) report from the actuary responsible for assessing actuarial liabilities, recommended to the Board of Directors that the audited financial statements be adopted, and approved the proposed 2015 audit plan. The committee also received statements from management concerning the Company’s compliance with statutory requirements and policies relating to investment management and IT security.

Committee members also examined existing internal control procedures and studied submitted reports. These reports touched on the internal audit activities carried out by the finance team and audits conducted by the Company’s external partners, such as reinsurers and specialized firms.

In accordance with the mandate conferred by the Board of Directors, the committee studied the process leading to the preparation and monitoring of the Company’s risk profile, including related action plans, and recommended its adoption to the Board of Directors. The committee also studied the crisis simulation report prepared by the actuarial team, and proposed a target ratio and the level of risk appetite for the Company to the Board of Directors. In addition, the committee reviewed the actuarial assessment of the Company’s complementary pension plan and submitted appropriate recommendations to the Board of Directors.

With regard to computer security, the committee reviewed audits and action plans carried out by the Company to ensure the security of its systems and the protection of its data.

Lastly, it recommended to the Board of Directors that certain policies be updated and adopted.

In order to carry out its mandate, the committee held private meetings with management, the independent auditor and the actuary who was assigned the evaluation.

Johanne Cassis
Chairwoman