RBC Business Segments and Market Strategy slide image

RBC Business Segments and Market Strategy

Insurance Strategic Priorities Improve distribution efficiency Deepen client relationships ◉ ■ RBC Delivering multi-line "insurance advice for your life" through an integrated product portfolio Strengthening profitability in all channels by increasing sales and managing expenses Providing a comprehensive suite of RBC Insurance products and services through cross-sell strategies to continue to meet our clients' unique insurance needs Providing a wide range of life, health, home, auto, travel and wealth accumulation solutions to individual and group clients across Canada, and offer reinsurance solutions for clients globally ■ Announced the sale of home and auto manufacturing business to Aviva Canada in January Enhancing and streamlining all processes to ensure that clients find it easy to do business with ■ Simplify the way we do business Pursue select international opportunities to grow our reinsurance business Net income ($MM) (1) ■ us Pursuing niche opportunities, diversifying risks and growing our reinsurance business to generate stable and diversified earnings Acquisition expense ratio (2) 713(3) 781 118 706 595 2013 2014 2015 185 131 Q1/2015 Q1/2016 12.5% 10.1% 2013 2014 7.0% 6.3% 2015 Q1/2016 19 Business segments (1) 2015 and 2016 results reflect a recent change in Canadian tax legislation impacting certain foreign affiliates, which became effective November 1, 2014. (2) Acquisition Expense Ratio calculated as Total Acquisition Expense/Net Premiums. (3) Adjusted net income excludes a Q4/2013 charge of $160MM ($118MM after-tax) as a result of new tax legislation in Canada. This is a non-GAAP measure. For additional information see slide 40.
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