Erratum published on March 12, 2025 at 10:20 a.m: There was an error in this article published on March 7. Assumption Life's non-participating whole life insurance product can be issued up to age 80, not as stated in the article, the Disability Income Rider and/or Critical Illness Rider. This rider can only be issued up to age 60. Our apologies for the error.
Assumption Life posted net earnings of $12.6 million in 2024, up 48% over the $8.5 million reported in 2023 by the Moncton, New Brunswick-based mutual.
Its solvency ratio also improved. It stood at 165% in 2024 compared to 157% in 2023. The mutual's assets reached $2.3 billion in 2024.
At its annual meeting, held in person and with online broadcasting on Feb. 28, Assumption Life announced record sales and profits, marking “the best year in our history.”
In an interview with the Insurance Portal, Sébastien Dupuis, president and CEO of Assumption Life, discussed the growth in net earnings, praising prudent financial management and good sales. He also revealed that Assumption Life acquired a block of Canadian business from an unnamed insurer. This block, consisting of individual insurance, segregated funds and group insurance policies, also had an effect on net earnings growth, explained Dupuis.
Committed to the family market
Even if this amount represents only a small share of the market, disclosing it shows our commitment to our target market, which is the mid-market,” - Sébastien Dupuis
In terms of individual life insurance sales, the volume of premiums placed reached $13.6 million in 2024, representing 15% growth over 2023. This is the first time the mutual insurer has disclosed its individual life insurance premiums.
“We're proud to say it. Even if this amount represents only a small share of the market, disclosing it shows our commitment to our target market, which is the mid-market,” commented Dupuis. He says he is focusing on this market rather than the high-net-worth market. “So much the better if we can meet more Canadians and serve a need in a market that we have no intention of abandoning,” he added.
Among the products aimed at this market, Assumption Life accepts applications up to age 80 for its non-participating whole life insurance, to which can be added Disability Income Rider and/or Critical Illness Rider credit insurance product, offered up to age 60.
When asked about the increased risk of insuring up to age 80, Dupuis replied: “We are here to take calculated risks.” He added that he was comfortable with the assumptions made by his actuaries. “We haven't had any unpleasant surprises. We don't think that the bulk of our sales will go to policyholders aged 75 to 80. The idea is to take a level of risk that allows us to include as many people as possible,” sums up Dupuis.
Group insurance sales decline
At $7.1 million, group insurance sales were down 35% in 2024, compared with sales of over $11 million in 2023. Dupuis attributed this decline to a transformation aimed at improving the efficiency of business processes, as well as staffing changes, both beginning in early 2024. “This has delayed us. We were only able to fill positions at the end of the year. The worst is behind us,” explains Dupuis.
Sales of investment and retirement products reached $317 million in 2024, compared with $197 million in 2023, for growth of 61%.
Dupuis attributed this performance to investments in its Vesta digital platform and strong relationships established with advisors in 2024. He points out that Assumption Life has also launched a range of 10 segregated funds, one of which is associated with the environmental, social and governance (ESG)-themed Fidelity Climate Leadership Balanced Fund.
