Download the 2019 Annual Report

Communities make us 75 years. Millions of people. One community. 2019 Annual Report Summary 2019 Financial Highlights 2 Chair of the Boards’ Message 4 CEO’s Message 19 Sustainable Development and Societal Responsibility Report 38 SSQ, Mutual Management Corporation 51 Consolidated Financial Statements as at December 31, 2019 Independent Auditor’s Report 52 Consolidated Statement of Income 54 Consolidated Statement of Comprehensive Income 54 Consolidated Statement of Financial Position 55 Consolidated Statement of Changes in Equity 56 Consolidated Statement of Cash Flows 57 Notes to the Consolidated Financial Statements 58 SSQ, Life Insurance Company Inc. 69 Consolidated Financial Statements as at December 31, 2019 Independent Auditor’s Report 70 Consolidated Statement of Income 72 Consolidated Statement of Comprehensive Income 73 Consolidated Statement of Financial Position 74 Consolidated Statement of Changes in Equity 75 Consolidated Statement of Cash Flows 76 Notes to the Consolidated Financial Statements 77 Ownership Structure 137 Boards of Directors 138 Management Team and Corporate Divisions 139 Addresses 140 Contact us 140 The year 2019 marked a milestone in the history of SSQ Insurance. The company’s 75th anniversary was an opportunity to recognize the day-to-day contributions of millions of people who have worked together to ensure the long-term viability of our collective spirit and an ever-stronger community. Those millions of people are our members, customers and partners. They have placed their trust in us since day one and they remain at the heart of everything we do. They are also our employees who, over the years, have helped to build a company that makes a positive impact within our community of insureds. To all of those people, we say “thank you”! 2019 Financial Highlights 2019 Financial Highlights 2019 Annual Report 3 2019 2018 Variation Consolidated Data ($M) $ $ % Gross premiums 2,571.8 2,483.1 3.6 Assets under management and administration 13,419.6 12,307.9 9.0 Equity attributable to shareholders 1,060.8 974.2 8.9 Net income attributable to shareholders 101.8 94.6 7.6 Number of employees 2,031 2,020 0.5 Gross premiums 2015 2,204.9 ($M) 2016 2,342.8 2017 2,458.5 2018 2,483.1 2019 2,571.8 Assets under 2015 11,222.6 management and administration 2016 11,375.4 ($M) 2017 12,077.5 2018 12,307.9 2019 13,419.6 Equity attributable 2015 727.0 to shareholders ($M) 2016 791.7 2017 884.7 2018 974.2 2019 1,060.8 Chair of the Boards’ Message René Hamel Chair of the Boards’ Message 2019 Annual Report 5 For SSQ, 2019 was a year in which a number of milestones were reached. The company marked its 75th anniversary and took that opportunity to thank its members, customers, partners and employees for the road traveled. 2019 was also dedicated to revitalizing SSQ’s governance system in order to ensure that it remains relevant and up to date. A number of important steps were taken, including ratifying new bylaws and redefining the roles and responsibilities of various governance committees. These moves are a tangible sign of the Mutual’s desire to contribute even more significantly to SSQ Insurance’s mission, in the interests of its members. A large number of administrators and delegates attended the 2019 Annual Meeting, held under the theme of the 75th anniversary. Chair of the 6 2019 Annual Report Boards’ Message Revitalized governance system Promoting mutualism At the annual meeting in April, the delegates ratified SSQ, Mutual Management Corporation’s bylaws. This primarily involved updating the wording and ensuring consistency with the legislative framework governing companies. In particular, these modifications pertained to the length of the Board members’ During the year, three issues of the InfoDelegates mandates, the delegates designation process, newsletter were released to keep the delegates including delegates’ eligibility and mandate length, as informed about their Mutual and SSQ Insurance. The well as the definition and categorization of each group. topics covered ranged from the company’s business All modifications will take effect on January 1, 2020. and social commitment to mutualism and the delegates’ role. The year ended with the merger of SSQ Insurance Company Inc. and SSQ, Life Insurance Company Inc., In addition, the new process for being designated with an effective date of January 1, 2020. The legal an individual delegate and for attending the annual name of the merged company is SSQ, Life Insurance meeting was described in the June issue. From now Company Inc.; all customers will do business with on, individual delegates will only have to fill out this entity in the future. This merger will not result in an online registration form. In September of each any changes for customers: the contracts and year, they will be selected in a random draw from coverage in effect at the time of the merger remain all registrations received. fully valid. The SSQ Insurance business name, however, will be maintained. The delegates’ opinion and satisfaction level regarding their SSQ Insurance experiences was The merger has multiple objectives. First and surveyed in the September issue. To ensure that foremost, it provides a concrete expression of the SSQ’s mutualist model continues to be a driving decision to make SSQ Insurance a single entity. It force, it is essential that members contribute will expand the mutualist base, which now includes to the company’s democratic life. individual contract holders. It will also serve to optimize the company’s capital structure while fostering synergies, particularly in terms of expenses and consent management. Chair of the Boards’ Message 2019 Annual Report 7 Important work of the Board The Mutual’s Board also reflected on its current In addition to safeguarding and promoting mutualist roles and responsibilities and how it could play values at SSQ, the Board considered potential ways a more proactive role with its members. This gave to revitalize preferred links with its members and rise to deliberations on the Mutual’s mission, identified various democratic practices in this regard, vision and values, concluding with the adoption in keeping with SSQ Insurance’s mission. Social action of the following: is another route that the Board intends to focus on as a complement to SSQ Insurance’s initiatives. Besides these efforts, which will be ongoing in 2020, Mission the Board also devoted a good deal of energy to the merger project with La Capitale Insurance and Drawing inspiration from its mutualist values, Financial Services. SSQ Mutual’s mission is to promote its members’ interests and needs at SSQ Insurance in the areas of health care, health services and financial security throughout their lifetimes. Vision For members to recognize the value added of mutualism and its values, at the collective and individual levels. Values • Social commitment • Equity • Democratic governance • Integrity • Respect • Solidarity Chair of the 8 2019 Annual Report Boards’ Message Strategic Orientation New structure Committee for Board committees The Strategic Orientation Committee is now responsible for recommending the adoption of the 2020 budget to the Board. This step was completed in November 2019. The Committee also examines strategic matters for submission to the Board. In 2018, SSQ indicated that it had begun a process of reflection on the company’s governance framework with a view to updating it and ensuring its relevance. Concrete steps were taken in 2019 and the redefinition of certain committees and their respective roles and Governance, responsibilities was completed in April. Since April 2019, the responsibilities of the Executive Human and Human Resources Committee have been redistributed among the Strategic Orientation Committee and the Governance, Human Resources Resources and Ethics Committee. The latter now handles the responsibilities of the former Ethics Committee as well. In addition, the Audit and Risk Management and Ethics Committee was split into two separate committees, to create the Audit Committee and the Risk Management Committee. The Investment Committee Committee has the same roles and responsibilities as it previously did. The Committee fulfilled its annual obligations in accordance with the governance program and received the conflict-of-interest declarations by directors and officers. It also reviewed the declarations regarding Code of Ethics compliance and submitted reports to the regulatory authorities. The Governance, Human Resources and Ethics Committee continued the work of the former Executive Committee concerning talent management, employee compensation and the organizational structure. It also contributed to continuous updates to the governance program. Chair of the Boards’ Message 2019 Annual Report 9 Audit Committee Fraud The Committee recommended that the Board risk accept SSQ, Life Insurance Company Inc.’s audited consolidated financial statements and received the independent auditor’s report. It also took part in the nomination of the independent auditor for 2020. The Committee also reviewed project status reports and various internal audit and designated actuary In 2019, SSQ Insurance strengthened its fraud reports, in addition to approving the Internal risk governance framework. In this regard, two Audit Charter. documents were approved: a policy on fraud, abuse or wrongdoing and a directive on reporting concerns pertaining to fraud, abuse or wrongdoing. The objectives were to ensure confidential file handling, facilitate anonymous reporting, protect whistleblowers against the threat of reprisals and Risk ensure fair treatment of everyone involved. Please note that the Risk Appetite and Tolerance Management Statement reads as follows: The Company will not tolerate any dishonest Committee or unethical behaviour. SSQ Insurance will not tolerate any actions or omissions done in bad faith, deception, corruption or intentional falsification by employees, managers, partners, suppliers, senior management or board members, in collusion or not with any The Risk Management Committee completed individual, internal or external. The Company multiple projects in 2019.

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