Organic Capital Generation and IFRS Transition Outlook

37 Non-IFRS and Additional Financial Measures (cont.) • Organic capital generation: о Category under Regulation 52-112: Supplementary financial measure. о • о Definition: Excess capital generated in the normal course of business, excluding the impact of the macroeconomic environment, where excess capital is the amount of capital over and above the target ratio, calculated under the CARLI guideline. Purpose: Provides a measure of the Company's capacity to generate excess capital in the normal course of business. Potential capital deployment: • о Category under Regulation 52-112: Supplementary financial measure. ° ° Definition: Amount of capital the Company can deploy for a transaction, taking into account all limits and constraints of the regulatory capital guideline and the Company's targets, assuming the transaction parameters to be the worst-case scenario. Purpose: Provides a measure of the Company's capacity to deploy capital for transactions. Total payout ratio (trailing 12 months): о о о Category under Regulation 52-112: Supplementary financial measure. Definition: The sum of common dividends paid and common shares repurchased (buybacks) over the last twelve months divided by the net income available to common shareholders over the last twelve months. Purpose: Indicates the percentage of the Company's reported revenues shareholders received in the form of dividends over a twelve-month period. Capitalization: ° о о о Category under Regulation 52-112: Supplementary financial measures. Definition: The sum of the Company's equity, participating policyholders' accounts and debentures. Purpose: Provides an additional indicator for evaluating the Company's financial performance. Reconciliation: This measure is the sum of several IFRS measures. Solvency ratio: о о ° Category under Regulation 52-112: In accordance with the Capital Adequacy Requirements Guideline - Insurance of Persons (CARLI) revised in January 2021 by the Autorité des marchés financiers ("AMF"), this financial measure is exempt from certain requirements of Regulation 52-112. Definition: Calculated by dividing the sum of the available capital, the surplus allowance and the eligible deposits by the base solvency buffer. Purpose: Provides a measure of the Company's solvency and allows the regulatory authorities to determine if an insurance company is sufficiently capitalized in relation to the minimum set by the Company's regulator. Financial leverage measure - Debentures/Capital: о Category under Regulation 52-112: Supplementary financial measures. ° Definition: Calculated by dividing total debentures by the sum of total debentures plus shareholders' equity. о Purpose: Provides a measure of the Company's financial leverage.

View entire presentation