2016 Annual report

Investment Committee

Composition

The Committee is composed of six members and comprised of directors, officers and external experts appointed by the Board of Directors. The President and Chief Executive Officer chairs the Committee.

Members

Stéphane Rochon, Chairman
Luc Bergeron, Vice-President, Actuarial and Risk Management
Marc Peliel, Vice-President, Finance
René Delsanne, Director
Clément Albert, External expert
Jean-Louis Gauvin, External expert

Mandate

The Investment Committee is responsible for recommending the company’s investment policy and its ongoing adjustments to the Board of Directors. The Committee implements investment and matching strategies and ensures compliance with the policy. Moreover, the Committee analyzes results and ensures that the company’s assets match its financial commitments to an extent that is consistent with the policy’s objectives.

The Committee recommends the choice of investment managers to the Board of Directors, ensures their compliance with the company’s investment policy and evaluates their performance based on established objectives.

Humania Assurance’s Investment Committee assumes the same responsibilities for LS-Travel.

Activity Report

Throughout the year, the Committee assessed managers’ performance with respect to the investment portfolios of the company and its subsidiary, LS-Travel.

It conducted quarterly reviews of the investment policy compliance reports presented by the managers and reported back to the Board of Directors.

The Committee tracked the Asset-Liability matching of the company’s obligations. Quarterly ALM reports were submitted to the Board of Directors.

In 2016, long-term bond rates reached yet another historic low, with a slight upturn near the year’s end. This made bond matching very costly. Our diversification strategy put in place in recent years using preferred shares, infrastructure and real estate served us well in 2016. We were able to increase returns and improve our asset-liability matching, all in a bond market unfavourable to long-term investments.

In 2017, the arrival of a new solvency framework for insurance companies will be a major theme in Investment Committee discussions. The new framework will hike capital requirements for Non-Fixed Income securities. In turn, the Investment Committee will have to determine how to adjust the investment policy to optimize the company’s returns under these new constraints.