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Industrial Alliance's Chairman Gives a Positive Overview of Demutualization

Quebec City,

News Release

"Industrial Alliance’s demutualization was a success from all points of view," today declared Raymond Garneau, Chairman of the Board of Industrial Alliance, during a luncheon conference organized by the Laval, Laurentides and Lanaudière chartered accountants. "Demutualization gave us new momentum; momentum that has helped us meet the growth objectives that we had set for ourselves over the past few years."

Mr. Garneau remarked that Industrial Alliance’s demutualization was beneficial for all groups involved in the conversion to a stock company. Beneficial for the shareholders, who saw the value of their shares almost triple in a little over two years; beneficial for insureds, who continue to do business with a solid company that offers a complete range of financial products; beneficial for Industrial Alliance itself because its new legal status now gives it the desired financial flexibility to continue to grow and prosper; and beneficial for the province of Quebec, which now has a large financial institution with operations from Saint John’s, Newfoundland to Vancouver, British Columbia.

After reflecting that Industrial Alliance’s stock has risen from $15.75 when it was first issued on the stock market on February 3, 2000 to $45.35 on March 15, 2002, Mr. Garneau indicated that Industrial Alliance had met the three main objectives it had set over the past few years:

  • To diversify its activities geographically. By region, Industrial Alliance today draws about half of its revenues from its operations outside of Quebec. Industrial Alliance is also one of the Quebec financial institutions that has had the greatest success outside Quebec. In 2001, the Company also rose from second to top position in terms of sales in the key individual insurance sector.
  • To diversify its line of financial products. By product, Industrial Alliance also draws about half of its revenues from savings and investment products. One of the Company’s objectives is to offer its agents a complete range of financial products so that they themselves can offer efficient and integrated management of their clients’ wealth. It is in this spirit that, over the past two years, the Company has acquired a certain number of companies, including a mutual fund brokerage firm, Groupe Financier Concorde, and a stock brokerage firm, ISL-Lafferty Securities Inc., a Laval company.
  • To modernize its legal structure. Industrial Alliance successfully completed its conversion from a mutual to a stock company in February 2000.

"This is where Industrial Alliance Insurance and Financial Services stands today," concluded Mr. Garneau. "From an essentially Quebec company to a Canada-wide institution. From an insurance company to a complete financial services institution. And from a mutual company to a stock company. We have shown that a home-grown company, founded in Quebec over 100 years ago, can succeed in carving out an enviable position in the financial world across Canada, from a head office in Quebec City."

About Industrial Alliance
Industrial Alliance is a life and health insurance company offering a full line of insurance products and financial services. It is at the head of a large financial group – the Industrial Alliance Group – that has operations across Canada through Industrial Alliance in Quebec City, IA Pacific Life in Vancouver and National Life in Toronto. The seventh largest life and health insurance company in Canada, the Industrial Alliance Group insures over 1.5 million Canadians, employs more than 2,000 people and manages over $15.1 billion in assets. Industrial Alliance stock is listed on the Toronto Stock Exchange under the ticker symbol IAG. It is also part of the TSE 300 and TSE 100, ranking Industrial Alliance as one of the 100 largest companies in Canada.

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Jacques Carrière
Vice-President, Investor Relations
Office:(418) 684-5275
Cellular: (418) 576-3624