Public Accountability

Statement2019

2019 Public Accountability Statement: Message from the President and Chief Executive Officer

2019 was a strong year for ivari

I’m pleased to report that the organization saw a year of profitable growth along with strong sales and service results. Our year-over-year life sales increased by 10%, and for the first time in

thirteen years, we achieved over $100M in paid premium.

ivari’s corporate vision and strategy remains consistent – we will continue to partner with aligned advisors to help effectively reach middle market Canadians and provide them with financial peace of mind through a valuable combination of products and services.

Investing in the employee experience

We are great at what we do because of our team.

ivari attracts and retains driven team members who demonstrate adaptability, collaboration, and take ownership of providing middle market Canadians with insurance solutions. We are devoted to creating a positive performance culture and have put considerable focus and budget behind enhancing the employee experience.

In early 2019, we launched the ivari Employee Voice to formally track efforts in enhancing our culture and the employee experience. Through this new tool, we generated more frequent team conversations around alignment of priorities and the organization’s key areas of focus.

In mid-2019, we wrapped up renovations to make our head office more modern, functional and collaborative. We used valuable feedback from our employee focus groups and design teams to achieve our collective vision.

Consistent with our investments in previous years, we offered our employees the chance to fulfill professional and personal goals through wellness programing, rewards and recognition, flexible work arrangements, classroom courses, webinars, workshops, and tuition reimbursement.

Giving back to the communities where we live and work

We are firm believers in demonstrating active citizenship and encourage our teams to support the wellness and development of their communities. In 2019, our corporate donations totaled over $440,000 and spanned many areas of social need from disaster relief to disease prevention.

Through ivari’s Healthy Steps Program, we supported organizations that help teach young people skills to develop healthy habits, particularly in areas like active living, healthy eating and health education. We also sponsored local sports teams and offered employees the opportunity to have their charitable donations matched by ivari.

Our annual United Way/Centraide employee-led campaign, in support of building healthy and strong communities, saw one of the highest participation rates in years.

Finally, members of our team rolled up their sleeves and participated in a Habitat for Humanity Build Day to help provide homes for families in need during one of our giving back initiatives.

This is just a brief glimpse – this Public Accountability Statement will provide you with specific information about our philanthropic activities, charitable donations, and other contributions.

Please take the time to learn more about our organization and great team.

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Our head office is in Toronto with offices in Vancouver, Calgary, London and Montreal.

About Usivari is a leading provider of individual life insurance with $9.9 billion in total assets under

management and total gross premium revenue of $872 million.

ivari Gives BackTotal donations for

the fiscal year:

$447,529.74

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Demonstrating active citizenship and encouraging all employees to support the wellness and development of their communities is an important part of the ivari experience. Our voluntary Charitable Giving committee, made up of employees from across the organization, has put this commitment into action through a number of giving back initiatives:

ivari’s Healthy Steps Program Total donated: $200,000 As a life insurance company, we have a sound understanding of what it takes for people to

lead long and healthy lives. We also know that healthy habits like eating well, and getting enough exercise are best formed when they’re learned as children.

ivari’s Healthy Steps Program focuses on supporting organizations that help young people develop healthy habits, particularly in areas such as active living, healthy eating and health education. Through our program, young people can get a head start on a lifetime of healthy living, and that’s important to us!

Here are the organizations and causes we supported this year:

Organization Donation Our donations support…

Children’s Health Foundation $25,000 The Adapted Fitness Centre at Thames Valley Children’s Centre

East Side Boxing Club (Network of Inner City Community Services)

$20,900 After-school boxing program to introduce youth to exercise and a variety of life skills

Heart & Stroke $18,000 Education for indigenous youth

Lung Association $25,000 After-school lung health/asthma awareness program

KidSport Squamish $5,000 Providing kids with the opportunity to participate in and benefit from organized sports

Right to Play International $18,562 Programs that protect, educate and empower children to rise above challenges through the power of play

Boundless Adventures Association (The Boundless School)

$15,000 Outdoor camps / education for children who are at-risk or suffering from mental health issues

Nanny Angel Network $10,000 Free in-home relief program for children whose moms have cancer or are in palliative care

Sick Kids Foundation $20,000 Mindful eating and healthy lifestyle education programs

Children’s Aid Foundation $25,000 Children in foster programs participating in athletic programs

Wiggles ‘n Giggles $2,538 A range of community and school-based youth & family programs

Dixon Hall $15,000 Team sports to provide mentorship and address youth violence

United Way

In 2019, our annual United Way campaign, in support of building healthy and strong

communities, raised over $172,000. Over the last 7 years we have contributed over

$970,000 to this cause.

Why United Way? It’s simple: we choose this organization because their mission – to improve

lives and build communities by engaging and mobilizing collective action – aligns with our

fundamental commitment to embody active citizenship. Their outcome-based approach to

alleviating poverty, building healthy, strong communities, and allowing children to be all they

can be, helps make our communities better places to live and work. Employees from across

the country participate in our annual campaign which includes special events, contests,

guest speakers, and more.

Matching gifts

Our employees open their hearts and wallets to help those in need by making personal contributions to Canadian

charities. To show our support, we double their impact by matching employee donations of $50-$500 to Canadian

registered charities. Together, we raised $15,020 for charities in our community.

Special initiatves

Every year our Charitable Giving committee allocates funds for special initiatives. In 2019 we made significant contributions

toward sports sponsorships, Habitat for Humanity, Ride for Heart, Big Brother Big Sister Paddle Royale and several disaster

relief funds (Cyclone Idai, Ontario/New Brunswick/Quebec flooding, Hurricane Dorian Bahamas Relief and Philippine

typhoon appeal). These contributions totaled $59,781.77.

Employee Volunteer Program

As part of this program, we grant each employee up to 12 hours a year to volunteer with a registered charity that is close

to their heart.

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Total Raised: $172,727.97

Employee online donations:$83,508.26

Corporate Match$83,508.26

Special events$5,711.45

No. of Donors UW Region Dollar Amount

320 Toronto $ 76,933.86

6 Calgary $ 1,691.02

1 Saskatchewan $100.00

8 Montreal $1,718.10

5 Other $3,065.28

340 $83,508.26

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Heartwarming highlights

Here’s a closer look at how we got involved to help make a difference in our communities.

The Adapted Fitness Centre at Thames Valley Children’s Centre

Through the Children’s Health Foundation, ivari supports The Adapted Fitness Centre at Thames Valley Children’s Centre.

This facility was specially designed for children and youth with varying disabilities that make it difficult for them to use a

conventional community gym. With customized programs, specialized equipment and ongoing support, The Adapted

Fitness Centre provides an excellent alternative that allows children like Leo to enjoy a healthy and active lifestyle.

“ The Adapted Fitness Centre has helped me get stronger, gave me better balance and helped me with my disability.

I like coming here because it’s a smaller atmosphere and I get to work with someone who pushes me to do my best.

Thank you for donating…it really means a lot to people like me.” – Leo, a client at Thames Valley Children’s Centre

Habitat for Humanity Build Day

We strongly believe in the Habitat for Humanity vision – A world where everyone has a safe and decent place to live.

That’s why for the past three years, ivari employees have rolled up their sleeves to participate in the Habitat for Humanity

Pinery Trail Build. Last September, alongside the experienced Habitat for Humanity crew, ivari employees spent a cool

September day working hard to help build homes for lower income families. Once Build Projects are complete, families

are able to own affordable houses and build financial independence and stability through Habitat’s Homeownership

Program. The most rewarding part is knowing that these families will now have a safe place to call home, where their

children can grow and thrive.

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Investing in our TeamWith a workforce of over 500 employees, we are committed to creating a positive performance culture and we aim to

attract and retain driven individuals who demonstrate adaptability, collaboration, clarity and enthusiasm to take ownership.

That’s why we choose to offer an attractive employee program that supports growth and development. We want our

employees to love where they work just as much as we want our customers to love working with us.

We’ll let these numbers tell the story: In 2019, we had over 71 employees celebrate a 10+ year anniversary with the company.

Here are some program highlights that demonstrate our commitment:

1. Learning and Development

Training summary

An important element of our growing performance culture at ivari is learning and development. We have a skilled

team of adult educators, designers and developers within our Human Resources department who are dedicated

to supporting personal and professional development. We firmly believe in the concept of life-long learning, and

offer numerous, diverse opportunities for employees to grow their skills. Whether it is through classroom courses,

eLearning, online book and video summaries, webinars or workshops, all employees can explore thousands of

options to fulfill their professional and personal learning objectives.

Courses are offered on traditional topics such as The Basics of Life Insurance and Communication Skills in addition

to a whole range of personal interest courses like Getting Things Done, Introduction to Tai Chi, Balancing Work &

Life and Advanced Microsoft Excel. Our internal learning platform (the Learn Centre) along with our external partner

content (Cyber University, getAbstract, Get Control!) allow employees to learn on a variety of topics when it’s most

convenient for them, at work or at home, and even on their mobile devices.

Training hours

In 2019, 549 employees invested over 2,800 hours toward our courses in the employee Learn Centre. In addition,

through our external learning partner sites, ivari employees viewed over 400 productivity-related videos and

personally downloaded over 29,000 book, audio and video summaries for their own development.

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Tuition Reimbursement

In addition to offering courses through our Learning and Development department internally, we also have a

robust tuition reimbursement program for employees who seek out external training and development opportunities.

In 2019, 8 employees took advantage of this program and $9,457.59 was invested in employee professional

development.

Life Office Management Association (LOMA) Program

In 2019, 38 employees successfully completed at least one of LOMA’s courses, furthering their knowledge of life

insurance and the industry as a whole. A total of 78 courses were completed overall. This also included 2 individuals

who earned their Fellow, Life Management Institute (FLMI) designation.

2. Competitive compensation packages

We proudly choose to offer competitive compensation packages that help us attract and retain employees.

Comprehensive compensation for full-time employees includes:

• Market-competitive salary • Extended health care, dental, life insurance and disability benefits

• Merit increases • Opportunity to participate in a company-sponsored pension plan

• Performance bonuses • Opportunity to participate in an employee savings plan

3. Rewarding and recognizing our team

At ivari, we celebrate and recognize our great team of employees who listen, collaborate and work hard to find the

best solution for our customers. Rewarding and recognizing employees for a job well done is an integral part of the

ivari employee experience.

Our Rewards & Recognition program allows employees to nominate each other for a noteworthy performance or

a high degree of consistency in delivering service. Nominees then redeem gift cards for use at over 150 retailers,

restaurants and service providers across Canada.

This fiscal year, 212 employees participated in our Rewards & Recognition program.

We also proudly launched the quarterly ivari Spotlight Award. The award has given us the opportunity to provide

meaningful recognition to employees who have made significant and measurable contributions to moving our

business forward. Management nominates both an individual and a team for each quarter.

4. Enhancing the employee experience

The ivari Employee Voice

In early 2019, we proudly launched the ivari Employee Voice to formally track efforts in enhancing our culture

and the employee experience. Through this new tool, we generated more frequent team conversations around

alignment of priorities and the organization’s key areas of focus. This ongoing process involves gathering feedback

on our culture through short question sets, reviewing the data as a management team, implementing actions and,

finally, sharing targeted questions to determine if employees feel the actions enhanced our culture. Our year-over-

year engagement scores continue to grow.

Modernizing our head office

In mid-2019, we wrapped up extensive renovations to make our space more modern, functional and collaborative.

We used valuable feedback from our employee focus groups and design teams to achieve our collective vision.

Feedback from both our employees and distribution partners has been overwhelmingly positive and we feel well

positioned to meet ivari’s current and future spacing needs.

Renovation highlights:

• Upgraded common spaces: cafeteria, games room, meeting rooms and kitchenettes

• Low-impact gym

• New remote capability technology in meetings rooms

5. Flexible Work Arrangements for a modern workforce

The Work/Life balance theme is becoming a central focus in the Canadian workforce and a greater theme of

corporate discussion. We understand the overall importance of balancing professional and personal commitments –

so we offer flexible work arrangement options to our employees. While employees benefit from a flexible schedule,

we benefit from having engaged employees who are more productive, innovative and committed. At ivari we offer

the following types of flexible work arrangements:

• Flex time • Job sharing • Telecommuting

• Part time • Compressed work week • Working remotely

• Reduced work week

6. Health and wellness is important to us

With more publicly accessible information and resources for managing our health than ever before, we understand

our important role as a company in promoting healthy lifestyles. Our Wellness program provides a combinationof

educational and organizational activities to help employees adopt a healthier lifestyle. In 2019, we offered several

health and wellness initiatives:

• In the spring, together with organizations that promote overall healthy living, we hosted our annual

Wellness Fair at our Toronto office. We invited individuals to share fun ways to get moving and be active and

professionals provided insightful information on diet, nutrition and activities for mental well-being. An exciting

new addition this year was the incorporation of organizations that shared ways to get involved in environmental

sustainability efforts.

• We continued to offer yoga onsite weekly to allow employees to relax and relieve stress. This year, we even

got the opportunity to introduce a beginner yoga series in response to a growing interest from employees.

• We hosted a new “Unwind Hour” series where we introduced lunch hour wellness events and programming

aimed at helping employees de-stress and unwind. During this time, employees participated in a variety of

activities like 30-minute meditation sessions, an introduction to Tai Chi lesson, and Lunch & Learns on various

self-improvement topics. We also held a planting session where employees got to spend time getting their

hands dirty and clearing their minds by planting their own succulents – this was a big hit!

7. Respectful Workplaces

Our Respect in the Workplace policy is actively enforced throughout the organization. In accordance with the

Human Rights Code, employees have a right to equal treatment without discrimination because of race, ancestry,

place of origin, colour, ethnic origin, citizenship, creed, sex, sexual orientation, gender identity, gender expression,

age, marital status, family status or disability. The policy clearly articulates the responsibilities of management and

employees, and is a key module of our leadership training program.

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8. Privacy

Our Privacy Policy describes our practices for the collection, use, disclosure and protection of personal data

collected at all stages of employment from recruitment to completion, and policy acquisition from application to

claims settlements. To further underscore our commitment to ethical business conduct, our Privacy Office works to

address and resolve all privacy issues. The Office also works together with business units and distributors to mitigate

risk, protect corporate reputation and champion privacy awareness throughout ivari.

9. Getting together and having some fun!

We try not to miss an opportunity to get together to celebrate our achievements and have some fun. Maintaining

positive morale is a task we take to heart.

Here’s a look at some of the events and activities we hosted in 2019:

• Two all-employee meetings in Toronto that featured key-note speakers from different levels of the organization.

• Our Annual Employee Appreciation Day celebration with games, giveaways, and a catered lunch.

• A delicious all-employee Thanksgiving lunch.

• Various “desk drops” for employees - healthy granola bars on Blue Monday, ivari lunch bags in the summer, candy

apples to celebrate fall.

• ‘Game Night – The Rematch’ and ‘A Jingle & Mingle Showdown’ – two fun-filled game night events hosted by

ivari’s Young Professionals Group.

We ended the year on a sweet note with an entertaining, ‘Sweet Shop’ themed holiday party for all employees.

Employees across Canada:

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Alberta British Columbia Saskatchewan Ontario Quebec Total

Full time 14 8 1 471 17 511

Part time - - - 2 - 2

Contract - - - 26 1 27

Total 14 8 1 499 18 540

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Supporting Our Customers & Business PartnersWe’re here for you!

ivari is committed to making it easier for Canadians to get the life insurance they need. Creating positive customer

experiences is important to us. That’s why we place such great emphasis on continuous improvement with a focus

on clear communication and consumer awareness about life insurance.

Customer Experience

Getting feedback is an essential part of creating positive experiences for our customers, and the sooner the feedback is

collected, the more valuable it is. That’s why we listen to feedback as part of our quality review. As a coaching tool, we

review a random sampling of every Customer Service Representative’s calls every month.

Our goal is to create a value added experience during every customer interaction. Using our customer service scorecard,

we take a balanced approach in measuring both accountability (completing the task correctly, providing accurate

information) and authenticity (customer experience).

Every year, we participate in an industry-wide survey of advisors to find out how they rate our service. In 2019, we were

rated first in the following categories:

• Overall company service:

– Prompt turnaround times

– Listening and responding to field concerns and issues

• New Business:

– Competitive underwriting decisions

– Ease of contacting a case manager

– Ease of contacting an underwriter

– Ease of use of new business illustration systems

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• Inforce administrative service:

– Fair policy claims decisions

– Prompt and efficient processes for policy claims

– Prompt turnaround times for inforce administration

– Ease of obtaining Head Office help

• Critical Illness:

– Overall service

– Prompt critical illness new business turnaround times

– Ease of contacting a critical illness underwriter

We will continue to focus on creating the best overall customer experience possible. As the Client Services motto goes,

“Make them want to contact us!”

Advisor Education Support

• We provide advisors with opportunities to participate in our accredited seminars and workshops throughout the year.

• Advisors earn Continuing Education Credits for regulatory purposes, while at the same time expanding their

knowledge about industry trends, effective financial strategies, and ethical business practices.

• We provide marketing materials, illustration software and digital tools to help advisors educate their clients on the

need for life insurance solutions, and quickly highlight the most appropriate strategy for their circumstances.

• Our support tools are aimed at enhancing the experience of our policyholders with advisors, strengthening our

partnership with advisors, and advancing a healthy and responsible financial services industry.

Corporate Governance

• Our corporate governance models are well-defined and highly visible. They protect the interests of all our stakeholders

as well as our bottom line.

• On an annual basis, employees confirm both their understanding of ivari’s Code of Business Conduct and Ethics, and

that they have and will continue to abide by it.

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Supporting Our Customers & Business PartnersRisk Management and Control Practices

Enterprise Risk Management (ERM) is an established organizational framework with related policies and procedures

that ivari has in place for managing the significant risks associated with its business and operations. ERM consists of the

ongoing process of developing, implementing and monitoring financial and non-financial strategies with the ultimate

goal of achieving ongoing stability to meet ivari’s contractual obligations and increase shareholder value within a

given set of risk tolerances.

The Board of Directors is ultimately responsible for the company’s risk management, and regularly monitors risk

management policies and practices.

ivari

2019 Taxes Paid

Income Taxes Capital Taxes Premium Tax Total

Newfoundland - - 120,338 120,338

Prince Edward Island - - 36,357 36,357

Nova Scotia - - 225,156 225,156

New Brunswick - - 97,035 97,035

Quebec - 5,450 6,209,565 6,215,015

Ontario 201,988 2,287,743 6,950,608 9,440,339

Manitoba - - 440,697 440,697

Saskatchewan - - 546,281 546,281

Alberta - - 4,840,002 4,840,002

British Columbia - - 2,439,510 2,439,510

Yukon - - 17,171 17,171

Northwest Territories - - 18,053 18,053

Nunavut - - 1,250 1,250Federal* 3,770,575 706,918 - 4,477,493

Total 3,972,563 3,000,111 21,942,023 28,914,697

*Includes agreeing provinces.

TM ivari and the ivari logos are trademarks of ivari Holdings ULC. ivari is licensed to use such marks.

CO980 5/20

500-5000 Yonge StreetToronto, Ontario M2N 7J8ivari.ca

With a national network of thousands of independent, professional advisors, ivari provides a full

range of insurance products to help Canadians make the right choice for their protection needs.

The people, products and service that make up ivari have stood the test of time and have been

in the Canadian marketplace since 1928. We are committed to being approachable and transparent

in everything we do, and we will stand by our word. Visit us at ivari.ca.