Dividend Policy

Members are eligible to receive dividends provided that the Society’s distributable earnings and experience justify their declaration and payment.

The Board of Directors approves the amount of dividends for distribution upon the recommendation of the Appointed Actuary and in accordance with the Society’s Dividend Policy. Dividend scale recommendations are made at least annually to the Board of Directors and conform with all legislative and regulatory requirements and with the Standards of Practice of the Canadian Institute of Actuaries.

A dividend distribution policy objective is to maintain reasonable equity among broad classes of members. The Society follows the “Contribution Principle” in determining individual policy dividends whereby distributable earnings are divided among members approximately in proportion to their contribution to these earnings. Dividends may be declared when Society conditions and actual experience of a class of policies justify their declaration and payment. Factors taken into consideration include investment income, asset defaults, mortality, lapses, expense and taxes, the experience of which is compared to the assumptions underlying the premium and other guaranteed value calculations for those policies. The continuing solvency of the Society, regulatory requirements, financing of new business growth and competitive positioning are also taken into account.