iA PAR 2 iA PAR | Building blocks STRENGTH DISCIPLINE STABILITY - - PowerPoint PPT Presentation

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New Guaranteed Quick Pay 10 – Transition CI

For clients who like to pay faster

Wealth Maximizer option – Genesis YRT

• Maximize liquidity
• Maximize tax advantages in your policy
• Minimize the costs of insurance

iA PAR

New at iA Financial Group

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iA PAR | Building blocks

STRENGTH DISCIPLINE STABILITY

Our financial strength gives us the means for

• ur ambitions

Prudent and measured approach to maximize long-term returns Solid management and tangible results

FLEXIBLE COMPETITIVE

iA PAR

KEY COMPONENTS

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Versions

ESTATE

• Maximization of

long-term values

WEALTH

• Maximization of short- term

surrender values

• Financial leverage and high

liquidity needs

iA PAR – Key components

iA Par Whole Life first version = ESTATE version

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iA PAR – Key components

ESTATE – Maximization of long-term values

Basic coverage

• ptions

Dividend

• ptions

Additional Deposit Option (ADO)

Payable to age 100 10-year payment 20-year payment Paid-up additions Annual premium reduction Payable in cash ($) Deposit with interest Paid-up insurance

Guaranteed death benefit Guaranteed surrender value Estate value maximization

• r liquidity

Growth accelerator

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Additional Deposit Option: Paid-up insurance

Building higher estate value through ADO…

• Higher death benefit
• Higher total cash surrender values

Annual dividend amount applies on PUA! Compounding effect.

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Other access to cash values

Partial withdrawals Policy loan Collateral loan through partnership with Equitable Bank Disability benefit

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iA PAR – Product specifications

Age at issue 10-year payment 20-year payment Payable to age 100 Individual Age 0 to 85 Age 0 to 80 Age 0 to 75 Joint last-to-die Age 15 to 85 Age 15 to 80 Age 15 to 75 Rate band Band 1 $25,000 to $49,999 Band 2 $50,000 to $99,999 Band 3 $100,000 to $199,999 Band 4 $200,000 to $499,999 Band 5 $500,000 to $999,999 Band 6 $2,000,000 to $10,000,000

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iA PAR – Riders and Additional Benefits

Term

• T10 (R&C) and T20 (R&C)
• Pick-A-Term: T25 and T30

Child protection

• Child Module
• Child Module PLUS

Accidental protection

• Accidental death (AD)
• Accidental death and

dismemberment (AD&D)

• Accidental fracture (AF)

Waiver of premiums in the event of…

• the applicant’s disability (WPDis)
• the insured’s disability (WPIDis)
• death (WPD)

ENHANCE YOUR CLIENTS’ COVERAGE

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iA PAR – Compensation

Year 1 Year 2 to 5 Year 6 to 10 Year 11+

QP20 + Life Pay

50% 5% 2% 1%

QP10

35% 5% 2% n/a

ADO

4% 4% 4% 4%

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iA PAR dividend interest rate

is proud to announce a

5.75% dividend rate

and more…

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5.75% + Bonus of 0.25% = 6.00%

A launch offer that is unique in the market!

This bonus increases the dividend interest rate of

0.25% for the life of the policy

Available for a limited period of time

(until October 31st 2020)

iA PAR

COMPETITIVE ANALYSIS

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Competitive positioning – Where we compete

#1

in the PAR market

QP10 QP20 & Life Pay

Better than the TWO TOP SELLERS CIES* in the PAR market

* according to LIMRA Q1 2020 results

Values

Total Death benefit around life expectancy – Age 90 Total CSV ages 65-75 Guaranteed CSV after 20 years

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Competitive analysis

Young professionals 100K-500K 30-45 Life pay Affluent individuals 250K-1M 40-60 10-year payment Business owners 500K-1M 40-60 20-year payment Children 50K-250K 0-15 20-year payment

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Life Pay | Overall competitivity

Age 30 to 45 – Face 100K to 500K

GCSV year 20 Total surrender value at age 65 to 85 Death benefit at age 80 Guaranteed death benefit Death benefit at age 90

iA vs. : iA is better A B D C

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Life Pay | Show me the numbers

Age 40 – M – NS – Face 250K

GCSV year 20 Total surrender value at age 65 Death benefit at age 80 Guaranteed death benefit Death benefit at age 90

2nd

Position vs. leader

53 362 79 438 56 220 70 368 169 750 177 824 208 428 187 492 252 698 250 000 181 354 244 750 529 086 610 371 708 613 700 089 709 010 857 453 954 033 956 578 253 308 82 510 189 758 651 583 955 010

3rd 1st 1st 2nd

A B D C

Annual Premium: $4,403

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Competitive analysis

Young professionals 100K-500K 30-45 Life pay Affluent individuals 250K-1M 40-60 10-year payment Business owners 500K-1M 40-60 20-year payment Children 50K-250K 0-15 20-year payment

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QP10 | Overall competitivity

Age 40 to 60 – Face 250K to 1M

GCSV year 20 Total surrender value at age 65 to 85 Death benefit at age 80 Guaranteed death benefit Death benefit at age 90

iA vs. : iA is better A B D C

n/a n/a n/a n/a n/a

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QP10 | Show me the numbers

Age 40 – M – NS – Face 1M

GCSV year 20 Total surrender value at age 65 Death benefit at age 80 Guaranteed death benefit Death benefit at age 90

2nd 2nd

Position vs. leader

448 004 474 245 n/a 399 830 1 000 000 508 990 1 188 779 3 420 316 4 943 857 973 853 1 155 173 n/a 1 183 198 880 166 931 700 n/a 801 400 2 601 562 3 305 574 n/a 3 748 729 3 424 957 4 624 352 n/a 5 103 044

1st 1st 1st

A B D C

Annual Premium: $52,590

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QP10 | Show me the numbers

Age 50 – M – NS – Face 500K

GCSV year 20 Total surrender value at age 70 Death benefit at age 80 Guaranteed death benefit Death benefit at age 90

2nd 1st

Position vs. leader

359 138 370 385 n/a 322 144 585 198 384 439 671 508 1 467 040 2 123 587 577 539 659 619 n/a 649 158 547 466 563 778 n/a 500 000 1 204 585 1 436 377 n/a 1 523 956 1 610 230 2 022 121 n/a 2 099 392

1st 1st 1st

A B D C

Annual Premium: $33,880

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Competitive analysis

Young professionals 100K-500K 30-45 Life pay Affluent individuals 250K-1M 40-60 10-year payment Business owners 500K-1M 40-60 20-year payment Children 50K-250K 0-15 20-year payment

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QP20 | Overall competitivity

Age 40 to 60 – Face 250K to 1M

GCSV year 20 Total surrender value at age 65 to 85 Death benefit at age 80 Guaranteed death benefit Death benefit at age 90

iA vs. : iA is better A B D C

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QP20 | Show me the numbers

Age 50 – M – NS – Face 500K

GCSV year 20 Death benefit at age 80 Guaranteed death benefit Death benefit at age 90

2nd

Position vs. leader

193 481 328 485 334 236 281 876 510 607 335 438 1 160 829 1 685 564 517 329 500 000 544 359 437 500 1 003 884 1 113 774 1 364 720 1 219 815 1 353 135 1 572 978 1 828 984 1 682 877

1st 3rd 3rd

Total surrender value at age 70

330 641 510 013 589 835 520 837 529 112

2nd

A B D C

Annual Premium: $19,255

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Competitive analysis

Young professionals 100K-500K 30-45 Life pay Affluent individuals 250K-1M 40-60 10-year payment Business owners 500K-1M 40-60 20-year payment Children 50K-250K 0-15 20-year payment

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QP20 | Overall competitivity

Age 0 to 10 – Face 50K to 250K

GCSV year 20 Total surrender value at age 30 Death benefit at age 80 Guaranteed death benefit Death benefit at age 90 Total surrender value at age 65

iA vs. : iA is better A B D C

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QP20 | Show me the numbers

Boy Age 0 – Face 100K

GCSV year 20 Total surrender value at age 30 Death benefit at age 80 Guaranteed death benefit Death benefit at age 90

2nd

Total surrender value at age 65

2nd 2nd

Position

• vs. leader

15 148 20 182 26 900 14 970 573 913 23 792 77 762 155 712 1 592 957 71 845 73 332 87 277 72 146 479 048 549 960 577 728 668 949 159 455 124 682 178 145 100 000 989 254 1 500 675 1 489 224 2 038 297 2 288 364 1 297 457 2 099 062 1 872 067 2 703 707

2nd 3rd 3rd

A B D C

Annual Premium: $1,990

iA PAR

OTHER COMPETITIVE ADVANTAGES

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ADO payments

A built-in guarantee of insurability

1 2 3 4 5 6 7 8 9 10

No medical requirements after ADO holiday!

Years

No ADO payments

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ADO payments

1st year maximum ADO contributions well positioned vs competitors!

Example: male non-smoker, age 40, QP20, $500K ADO O – Max c contr tribution Excess premium

• ver minimum premium

$9,445 $9,633 $11,880 $12,515 $12,595

A B D C

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Dividend option

Flexibility to switch to PUA purchase without medical requirements

Example: start with…

Annual premium reduction

Switch to

iA PAR

INVESTMENT STRATEGY

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A seasoned team behind iAIM’s success

— 100%-owned subsidiary of

iA Financial Group

A solid team

— 100+ investment professionals — Nearly 50 CFA charterholders — AUM of $100B (Dec. 31, 2019) — Expertise in all asset categories

A sizable investment firm

— General fund — Seg funds — Mutual funds — Other

Responsible for all

• f iA’s investments

Part of the iA Financial Group family

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General fund – A closer look

— Close to 50% with a long-term

investment strategy similar to iA PAR

— Includes $11B in alternative investments

$45B $35B $20B

General fund Investment funds Other

iAIM: AUM of $100B

Of the $45B in the general fund

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“The management philosophy of the participating account is based on an understanding of the long- term risk/return relationship, and the resulting asset allocation opportunities. The search for added value is part of an active management process based on asset and risk diversification.”

iA PAR investment philosophy and

• bjective

Long-term return objective: 5.75%*

* The long-term return objective is subject to an annual review process.

Long-term performance drivers

Strong investment team Risk/return

• ptimization

Focus on long-term returns Active and diverse asset allocation Alternative investment s ESG consideration s

Disciplined investment approach

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iA PAR long-term strategy

Longer-term focus allows us to combine traditional assets such as stocks and bonds with the additional benefit of alternative investments

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— Timing of launch

• Current market turmoil has no immediate

impact on iA PAR

• Our timing is ideal to profit from foreseen long

term recovery

— Long-term investment horizon

• Focus on expected returns for the next 25

years and beyond…

Why we believe in 5.75%

”

If you aren’t thinking about

• wning a stock for 10 years,

don’t even think about

• wning it for 10 minutes.
• Warren Buffet

“

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Long-term target asset allocation

LT PAR Target Allocation Min Max

Short-Term (0%) Cash and Others 0% 0% 15% Fixed Income

(60%)

Policy Loans 10% 0% 30% Government Bonds 10% 5% 50% Corporate Bonds 10% 0% 30% Commercial Mortgages 15% 0% 30% Private Debt 10% 0% 20% Preferred Shares 5% 0% 10% Non-Fixed Income

(40%)

Common Shares 10% 0% 15% Real Estate 15% 0% 25% Private Equity & Infrastructure 15% 0% 25%

55%

in alternative investments

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How to reach the LT return objective

— Alternative investments allocation: — Private Equity and Infrastructure:

• Asset class with best LT expected risk/return trade-off

iA

55%

Peer products

35%

iA

15%

Peer products

0%

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Asset allocation at April 30, 2020

Current allocation

Short-Term (3%) Cash and Others 3% Fixed Income

(67%)

Policy Loans 0% Government Bonds 18% Corporate Bonds 21% Commercial Mortgages 8% Private Debt 16% Preferred Shares 4% Non-Fixed Income

(30%)

Common Shares 17% Real Estate 10% Private Equity & Infrastructure 3%

Already at

37%

in alternative investments

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Private Equity

Alternative investments

Real Estate Debt Infrastructure Private Debt Real Estate

Higher potential returns with different risk profile Low correlations to traditional markets Portfolio diversification

The most common and their benefits

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60% 40% 30% 40% 30%

60% Stocks 40% Bonds 0% Alternatives 30% Stocks 40% Bonds 30% Alternatives

Alternative investments

Higher expected returns and lower price volatility

Expected Return 5.5% 6.2% Standard Deviation 8.2% 6.6% Sharpe Ratio 0.48 0.71

Portfolio of:

Source: Research Affiliates and iAIM

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Alternative investments

A large portfolio with a proven track record

$3B $3B $3B $2B

Commercial Mortgages Private Debt Real Estate Private Equity and Infrastructure

AUM of $11B

Historical performance*

(December 31, 2019)

1 year 3 years 5 years

Commercial Mortgages 4.0% 4.4% 4.9% Private Debt 10.5% 6.9% 6.1% Real Estate 7.5% 5.7% 5.2% Private Equity and Infrastructure 8.7% 11.1% 12.5% 60/40 stock/bond portfolio (S&P/TSX and FTSE Canada Universe Bond Index) 16.4% 5.7% 5.1% * Sample returns are for illustrative purposes only and do not represent current investments held in the iA PAR portfolio.

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— Solid team already managing close to $45B for iA’s general fund — Disciplined investment approach for iA PAR portfolio

• Focus on risk/return optimization between asset classes
• Long-term investment horizon

— 55% target allocation in alternative investments is key to reaching long-term product objectives

Conclusion

iA PAR

WHY IA?

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iA: competitive edge

Instant Acceptance CPB|BDB

Underwriting

VIP Program

All the benefits of the new Illustration tool 65 % acceptance at point of sale Up to 1M$ face amount at point of sale Up to 30% more of First Year Commission Eligible for application with annual premium higher than 5k

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iA PAR: competitive edge

• Age 80 to 90: death benefit
• Age 65: total cash values
• Guaranteed cash values after 20 years

QP10 Equal to #1 most competitive values in the market QP20 and Life Pay More competitive than the two top sellers cie* in the PAR market

* according to LIMRA Q1 2020 results

• Ability to switch dividend option annually
• Embedded disability benefit
• T25 and T30 rider
• Additional deposit option – stop and go

features without evidence of insurability

VALUE FLEXIBILITY

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IA PAR – Marketing material

Virtual experience Marketing documents are available in an interactive pdf file.

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IA PAR – Advisor centre

All material available

In the non-secure and the secure Advisor Center. Virtual flyer including a specific business case to show the impact

• f the 0.25% additional dividend

rate for life.

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Regional Sales Team support

Contact your iA Regional Sales Team to learn more about this product and

• pportunities