Company Information
- The Wawanesa Organization
- The Wawanesa Life Insurance Company
- Reinsurance
- Ratings/Capital Strength
- Consumer Protection
- Balance Sheet
- Statistical Information
- Investments
- Wawanesa Annual Report
The Wawanesa Organization
The Wawanesa Life Insurance Company is a wholly-owned subsidiary of The Wawanesa Mutual Insurance Company. Wawanesa Mutual is one of the largest property & casualty insurers in Canada. It was established in 1896 in the village of Wawanesa, Manitoba and incorporated in 1929. Executive Offices are located in Winnipeg, Manitoba. Wawanesa Mutual operates in all areas of Canada as well as in the states of California and Oregon.
Having celebrated its 100th birthday in 1996, Wawanesa is proud of its outstanding growth, stability and dedicated service to policyholders. The Company slogan, introduced in concert with the centennial year is "Earning Your Trust Since 1896".
|
The Wawanesa Life Insurance Company
The Wawanesa Life Insurance Company (Life Company) was established by The Wawanesa Mutual Insurance Company (Mutual Company) in 1960 to expand the line of products being made available by Mutual Company to its agents. Over the years, Mutual Company has provided significant support to Life Company, from both operating and financial standpoints. In 1993, Life Company was converted from a mutual to a stock form of company and became a wholly-owned subsidiary of Mutual Company. At that time, Mutual Company added to the capital which it had provided to Life Company over the years since inception. In 1995, Mutual Company further strengthened the capital position of Life Company through the purchase of additional common shares.
Management
The Company is managed in close coordination with Wawanesa Mutual. Many functions and facilities are shared. The two companies have a common Board of Directors and President & Chief Executive Officer. Most operational managers have extensive experience in the life insurance industry, both with the Company and prior to joining.
Officers:
| President & CEO | Kenneth E. McCrea* |
| Vice President & Chief Operating Officer | Mary K. Nemeth |
| Vice President & Actuary | Ian R. MacDonald |
| Vice President General Counsel & Secretary | George N. Bass* |
| * also officers of Wawanesa Mutual |
Directors: |
|
| B.W. Harrison - Chairman | |
| R.R. Bracken | D.C.W. Crewson |
| G.J. Hanson | Dr. J.S. McCallum |
| K.E. McCrea | Dr. M.E. Northey |
| D.V. Unruh | S.M. Van De Velde |
Operating Comments
Wawanesa Life is licensed and operates in all provinces except Québec. The Executive Offices of the Company are located in Winnipeg, Manitoba. There are two distinct operating units.
Individual Operations
Wawanesa Life offers a full line of individual life insurance and annuity products. Life insurance products include renewable term and permanent products. Annuities include RRSP, RRIF and non-registered investment products with the available investment options including equity participation through Segregated Funds. The methods of distribution include marketing these products to clients of property and casualty brokers who are contracted with the parent Company, Managing General Agents, and independent producers. Support offices and Managing General Agent locations
Group Operations
The Group Division of Wawanesa Life commenced operations in 1979. Initially, sales were concentrated in the Winnipeg area but, since then, have grown steadily and profitably. With its Head Office located in Winnipeg, the Group Operation currently services Regional Sales and Service Offices in Calgary, Toronto and Vancouver, in addition to Winnipeg.
The Group Operation markets Group Life and Health insurance primarily to Employer-Employee groups, including Multiple Employer Groups and Association Groups. The target market focuses on businesses ranging in size from 10 to 250 employees or members. Wawanesa Group focuses on the personalized approach, partnering with plan sponsors to provide the best solution for each individual situation. Distribution is primarily through group insurance brokers, benefit consulting firms and specialty Third Party Administrators.
The Group Operation, through its strategic alliances, has expanded its service in the areas of Disability Management, Travel Assistance and Pay Direct Drugs.
Wawanesa Life is known for its prompt and excellent service, willingness to listen, flexibility and ability to offer workable solutions beneficial to all parties.
Reinsurance
The Company has reinsurance treaties in place to protect it from unusual or catastrophic experience. All reinsurance is with companies registered in Canada.
The Company's retention for Life, Long Term Disability and Health is established at prudent levels appropriate to its size and financial resources. The treaties provide for automatic reinsurance coverage on amounts in excess of these levels. Catastrophic reinsurance coverage is also in place for instances where more than three deaths occur as the result of one event.
Ratings/Capital Strength
Ratings are provided by independent organizations as a measure of a company's financial strength and solvency. Wawanesa Life is rated by A.M. Best as part of the overall Wawanesa organization. Wawanesa Life is rated A (Excellent) while the parent company, The Wawanesa Mutual Insurance Company is rated A+ (Superior).
Capital strength can also be measured by a capital ratio prescribed by the Office of the Superintendent of Financial Institutions Canada (OSFI). The ratio is measured by comparing the capital available in the company to the minimum capital required for continuing operations. At December 31, 2006, Wawanesa Life had a capital ratio of 270%, well exceeding the 120% required by OSFI.
Consumer Protection Plan
Wawanesa Life is a member of The Canadian Life and Health Insurance Compensation Corporation ("CompCorp"). CompCorp administers the Consumer Protection Plan which was created to provide protection to the policyholders of member companies, should a member company become insolvent.
Balance Sheet - December 31, 2006
| Assets | ($000) |
| Investments | 435,382 |
| Cash | 1,780 |
| Outstanding Premiums | 930 |
| Investment Income Due and Accrued | 3,858 |
| Other Assets | 3,522 |
| Income Taxes Recoverable | 1,191 |
General Fund Assets |
446,663 |
Segregated Fund Assets |
129,104 |
| Liabilities and Equity | |
| Policy Liabilities | 350,255 |
| Income Taxes Payable |
0 |
| Future Income Taxes | 1,893 |
| Other Liabilities | 2,133 |
| Deferred Gains on Portfolio Investments | 16,178 |
370,459 |
|
Participating Policyholders' Account |
26,543 |
| Shareholder's Equity | 49,661 |
| Total Capital & Surplus |
76,204 |
General Fund Liabilities and Equity |
446,663 |
Segregated Funds |
129,104 |
Statistical Information
| $ Thousands | $ Millions | ||||||
Year |
General Assets |
Seg. Fund Assets |
Capital & Surplus |
Net Income |
Premium Income |
Life Volume Inforce |
|
2002 |
350,339 |
55,137 |
52,443 |
1,892 |
66,322 |
6,908 |
|
2003 |
373,371 |
69,596 |
58,836 |
6,393 |
68,503 |
7,151 |
|
2004 |
393,618 |
84,682 |
63,300 |
4,465 |
73,006 |
7,741 |
|
2005 |
418,426 |
106,717 |
70,380 |
7,080 |
78,231 |
8,147 |
|
2006 |
446,663 |
129,104 |
76,204 |
5,823 |
80,721 |
9,199 |
|
Investments
Wawanesa Life maintains a high quality investment portfolio. At December 31, 2006, the portfolio consisted of:
$(000's) |
% |
|
| Bonds | ||
| federal | 74,420 |
17.1 |
| provincial | 54,740 |
12.6 |
| municipal | 26,108 |
6.0 |
| corporate | 187,154 |
43.0 |
| Mortgages | ||
| residential | 29,053 |
6.7 |
| Shares | ||
| Canada | 39,827 |
9.1 |
| foreign | 11,021 |
2.5 |
| policy loans | 13,059 |
3.0 |
| Total | 435,382 |
100.0 |
All mortgages are secured by residential properties, approximately 47% of which are insured by Canada Mortgage & Housing Corporation.
The equity portfolios consist of high quality holdings. The foreign holdings include both U.S. and non-North American companies.