2018 Annual Report
Message fromthe Chairman
of the Board

Investing for our success

“2018 was highlighted by three important organizational endeavours, namely the implementation of the Capital Adequacy Requirements guideline for Life and health insurance (CARLI), major investments to drive the company’s digital shift, and deployment of several initiatives targeting the employer brand and employee well being.”

Effective January 1, 2018, insurers licensed to sell life and health insurance in Quebec must comply with the new CARLI guideline issued by the Autorité des marchés financiers (AMF).

The main purpose of CARLI is to increase transparency and predictability of the criteria the AMF uses to assess whether financial institutions comply with their obligations to follow sound and prudent management practices. The capacity of institutions to fulfill their obligations to investors, policyholders and beneficiaries is a fundamental factor for achieving this objective1.

Humania Assurance’s 2018 financial position is solid with ratios well exceeding regulatory requirements. Overall, the year’s financial results are satisfactory and in line with expectations. While profitability is down from the previous year, the decline results from significant investments made in technology to accelerate the company’s digital shift.

We also continued our work to upgrade our current digital portfolio, particularly by adding new innovative features and functionalities to our platforms, withoutmedicalexam.ca and HuGO.

In 2018, Humania Assurance rolled out its strategic plan rigorously and meticulously with a focus on migrating our individual insurance portfolio to digital platforms. Throughout the year, several initiatives were implemented to digitize our paper products using new interactive state-of-the-art technological platforms. We also continued our work to upgrade our current digital portfolio, particularly by adding new innovative features and functionalities to our platforms, withoutmedicalexam.ca and HuGO

During fiscal 2018, Humania won several high-profile awards, making it a model for the health and life insurance industry in Québec, Canada and North America.

Trophies won by Humania Assurance in 2018

Humania Assurance also won the Mercure award in the Productivity Improvement category at the 2018 edition of the Mercuriades, Quebec’s most prestigious business competition. The company has also been recognized internationally among the largest and top insurers in North America. On October 24, 2018, Humania Assurance won Bronze in the “Best claims, Underwriting, IoT or Ecosystem” category for its smart platform HuGO at the first Innovation in Insurance Awards 2018 – North America held in Boston. This platform is now recognized as a major technological innovation in the life and health insurance industry in Canada and North America, particularly for its ability to manage risk at the underwriting stage.

These honours demonstrate once again Humania Assurance’s capacity for innovation and we can all be very proud.

To ensure healthy, motivated and engaged employees, the company had its Healthy Enterprise certification renewed.

Meanwhile, to ensure healthy, motivated and engaged employees, the company had its Healthy Enterprise certification renewed by the Bureau de normalisation du Québec in August 2018. Benefits in terms of motivation, engagement and lifestyle have already been achieved, and the company is continuing to roll out its program.

Committees

Integrated risk management, ethics and governance, investment strategy management and human resources are also key priorities for the Board of Directors and its committees, and each committee has scrupulously and diligently carried out all their specific tasks and controls. The respective committee reports are all included in this report. In closing, I would like to thank all the members of the Board of Directors for demonstrating an irreproachable level of ethics, integrity and commitment during the year.

Acknowledgements

Humania Assurance owes its success to the efforts of all its employees who, with their involvement and commitment, strive day after day to “make insurance more accessible.” I would like to extend warm thanks to them for their exceptional work. I would also like to sincerely thank the members of the Management Committee for their rigour, professionalism and quality of the privileged relationships they maintain with employees. The actions and decisions they take every day make the company even more efficient and innovative.

On behalf of the Board of Directors, I would also like to express my thanks to Ms. Johanne Cassis who withdrew from the Board during the year. I would like to acknowledge her significant contribution and exceptional commitment shown over the past five years, particularly for her integrity and able leadership as Chair of the Audit Committee.

Signed by Jacques Martineau Jacques Martineau Chair of the Board of Directors

1Capital Adequacy Requirements (CARLI) - Insurance of persons [FR]