2018 Annual Report
Reports and Committees

Audit and risk management committee

Composition

This committee is made up of independent directors. It must include at least three members, the majority of whom do not sit on another Board committee. Each Committee member must have appropriate proficiency with financial principles and concepts and at least one must have accounting or financial management expertise.

Members

Claude Robitaille, Chair
Louise Pellerin-Lacasse
Lise Lapierre

Mandate

The Audit and Risk Management Committee is responsible for overseeing the financial reporting process and ensuring that financial statements are reported in accordance with the International Financial Reporting Standards (IFRS). It must also ensure that a suitable internal control system is in place, monitor risk management processes and recommend the company’s risk profile and corresponding action plan to the Board of Directors. It also supervises the audit process and the procedures implemented by the company to ensure compliance with accounting and finance legislation and regulations.

Activity Report

With regard to financial information, the Committee primarily reviewed the independent auditor’s report for the fiscal year ending on 31 December 2018. Moreover, the Committee received the Dynamic Capital Adequacy Testing (DCAT) report, as well as the appointed actuary’s technical provisions report.

It also recommended to the Board of Directors that the audited financial statements be approved, and adopted the proposed 2018 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.

The Committee members also examined existing internal control procedures and reviewed the submitted reports, which dealt with the internal audit activities carried out by the finance team and the audits conducted by the company’s external partners, such as reinsurers and specialized firms. In addition, the Committee members continued to work with management to monitor the progress and impact of certain changes to IFRS standards and to capital adequacy requirements for life and health insurance companies implemented in 2018.

In keeping with the mandate conferred on it by the Board, the Committee studied the process for preparing and monitoring the company’s risk profile, including the related action plans, and recommended its adoption to the Board. It also examined 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. Similarly, the Committee reviewed the actuarial assessment of the company’s supplemental pension plan and offered its recommendations to the Board.

With regard to computer security, the Committee reviewed the company’s audits and action plans to ensure the security of its systems and the protection of its data.

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

To fulfil its mandate, the Committee worked closely with management and held private meetings with the independent auditor and the appointed actuary.

Signed by Claude Robitaille Claude Robitaille Chair