19 September 2018 13:30
Denis Ricard | Photo : canadian club of Montreal
Denis Ricard, the new CEO ofiA financial Group, said during a conference at the canadian club of Montreal, an intention to continue the expansion work undertaken by Yvon Charest during his presidency.
Since 1 September, Mr. Ricard wishes to align his presidency will have on business growth, he describes as being ” the basis of everything “.
Annual growth of net earnings per share of 10 %
To do this, Mr. Ricard has said it wants to keep the annual growth of net earnings per share of 10 %. Since 2000, this growth had an average of 11 % per year, he reported at the conference.
“To achieve this goal, we rely on organic growth, but also on the acquisitions,” said Mr. Ricard in an interview in the Journal of the insurance. The american market will be prioritized, since ai wants to double its size in the United States in the coming years, he added. The u.s. market currently represents 5 % of the profits of the company.
Acquisitions will continue to be at the heart of the strategy of ai in the years to come. Recently, the company has acquired Heritage Hollis in 2017 and PPI Management in February 2018. “The distribution is a force to Industrial Alliance. We have bought companies on the side of the distribution, which now represent more than 10 % of the profits of the company “, said Mr. Ricard.
The importance of the financial advisors
Among the other areas of development planned for ai, Denis Ricard, has expressed wanting to not only improve customer experience but also the experience of the advisors in the digital age. “Without financial counsellors, there was no business,” he says.
Mr. Ricard has reminded the conference, that the technology must also be at the service of members. For example, earlier this year, Mr. Ricard had expressed in the Journal of insurance that the sale of individual life insurance via the Internet without a representative was not an option.
Abolishment of the commissions integrated
In an interview with the daily Le Devoir, Denis Ricard, has expressed his concern over the debate surrounding the ban of commissions, brought by the canadian securities administrators (CSA). He did not exclude a possible reduction of financial advisors if such measures were to be adopted.
Mr. Ricard stated in the Journal of insurance that any change in regulations may have unexpected consequences. “I’m not categorical on the possibility of a decline in advisers, but it is a risk. We lack of financial advisors in Canada and I believe that we should not ignore the possibility that it happens. The Ontario government has also indicated himself that this was a possibility. “
Last week, the government of Ontario has expressed its disagreement with the proposed amendments by the CSA to ban the deferred acquisition costs and commissions followed for the brokers.
Major changes to come
Denis Ricard has indicated that his first weeks in the presidency of the ai were primarily in the continuity of what had been undertaken before the departure of Yvon Charest. “There are major changes coming, and I’ve given by Christmas to build it,” said Mr. Ricard in the Journal of the insurance. However, he noted that it was too early to give more details on the subject.