23 January, 2018 07:00
Christian Mercier | Photo : Studio K (Élodie Kergal)
Laden regulatory capital after years of protection against the low interest rates, ul Mutual has the means of its ambitions, says its CEO, Christian Mercier.
It will use these resources to support the growth that will result in the revitalization of its processes and its products. Ul Mutual has a solvency ratio of 300 %. This is equivalent to three dollars of capital for every dollar of obligation to policyholders. What to do with all this capital, while most competitors have a ratio much lower ?
«Faced with the pressure of low interest rates in the long term, the strategy of the company has been in recent years for letting the situation a little. What we saw now is a repositioning. Yes, the advantage of our strong capital position will allow us to achieve, as the industry arrives at an important crossroads, with major changes «, says Mr. Mercier.
The great technological shift that aims to change the legacy system is currently one of the most important investments. «We believe it appropriate to invest for the future at this stage, at the same time we want to restart the business. We make a turn before weigh-in on the gas, and to achieve a growth a little more sustained, » says the CEO.
If the capital is dedicated first and foremost to the technological shift, it will also help to build capacity to cope with the growth. «In insurance, when we accelerate growth, it creates a drain (expenses triggered by the establishment of a new insurance contract). We will use our strategy with prudence and diligence, but also in a cost effective manner. «
Build a new headquarters
Another way in which it will deploy this capital : building a new corporate headquarters in the mutual, founded in 1889. After a series of hiring, ul Mutual is believed to have arrived at the limit of the capabilities of the registered office is located at 142, rue Hériot, Drummondville. «We have very fine local, but it is a small part of the building, which dates from the 1930s. It shows signs of weakness. We will use a portion of our capital to relocate the headquarters, which will remain in Drummondville, because our story starts here, and that there is a bond that is very strong. «
Within two years, it intends to develop plans for a new building, in the measure where he manages to find a piece of land in the city during this period. «The project study performed on the present building was built, we indicate that it is more beneficial to build rather than renovate,» explained the CEO of the insurer.