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Industrial Alliance Celebrates the First Anniversary of its Listing on the Toronto Stock Exchange

The Company Makes a Positive Assessment of the Growth of its Shares

Quebec City,

News Release

February 10, 2001 marks the first anniversary of Industrial-Alliance Life Insurance Company´s (Industrial Alliance) official listing on the Toronto Stock Exchange. This listing marked the end of the demutualization process, which Industrial Alliance initiated at the beginning of 1999. The Company has made a positive assessment of its first year as a capital stock company and the progress of its shares.

"The 158% increase in the value of our shares in 2000 represents the second best market performance among the newly listed companies on the Toronto Stock Exchange," pointed out Yvon Charest, President and Chief Executive Officer of Industrial Alliance, with great satisfaction. "This growth shows how pleased the financial markets were with our performance and our development strategy. Investors have recognized the Company´s high and consistent profitability, the strong growth of its operations, the diversity of its profit and growth sources, its multiple distribution strategy, its strong regional brand names and the Canada-wide diversity of its operations."

Industrial Alliance´s shares began trading on a when-issued basis on February 3, 2000. The initial selling price was $15.75 per share. Under the demutualization process, some 700,000 policyowners shared the benefits of conversion – almost $600 million – in the form of cash or shares, according to their choice. On February 10, 2000, the official signal was given to open trading on the Company´s shares at the Toronto Stock Exchange.

Several events have marked the development of Industrial Alliance´s shares in the last year.

  • The Company´s shares, which have risen almost continuously since their issue, took three major leaps during the year 2000: in mid-August, when the Company´s second quarter financial results were published, in mid-September, when the inclusion of the shares on the TSE 300 index was announced, and in mid-December, when the Company disclosed its embedded value, a first for a Canadian life insurance company.
  • On September 20, Industrial Alliance´s shares were included on the TSE 300, TSE 200 and S&P/Canadian MidCap indices.
  • Industrial Alliance paid a first dividend following the publication of its third quarter results. The $0.15 dividend per share was 26.2% of the net earnings per share for the last twelve months on a pro forma basis.
  • When the markets closed on December 29, 2000, Industrial Alliance’s share was trading at $40.65.
  • Today, Industrial Alliance´s market capitalization is $1.4 billion and the Company has some 110,000 shareholders. The company is among the 100 largest companies on the TSE 300.

"My satisfaction with our conversion into a capital stock company does not simply come from the fact that we successfully completed this important operation for Industrial Alliance´s future," asserted Yvon Charest. "It also comes from the fact that the Company was able to complete this conversion while maintaining and reaching the financial performance and solidity objectives it set for the year 2000."

The Industrial Alliance Group is among the most solid financial institutions in the country, where it exercises leadership in the fields of insurance and financial services. The Group has operations across Canada through the parent company, Industrial Alliance (Sillery), and its subsidiaries, including IA Pacific Life (Vancouver) and National Life of Canada (Toronto). The seventh largest life insurance company in Canada, the Group has close to $14 billion in assets and managed funds. The parent company´s Internet address is:

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Tomorrow (Tuesday, February 13) Industrial Alliance will publish its financial results for the fourth quarter of 2000 and for the year 2000.

For information:
André Ménard
Director, Public Relations
Tel. (418) 684-5000, extension 5286