1. The value of London Life
participating life insurance
Accountability • strength • performance
London Life participating life insurance gives you a foundation
of guaranteed values and tax-advantaged growth. It also gives you
the opportunity to receive dividends, based on your participation
in a pool with 1.6 million other participating policies. It offers both
stability and flexibility in a permanent life insurance solution.
While some companies have backed out of the participating life
insurance market, we will continue to be a leader in this area.
We believe in participating life insurance and know the value
it has delivered to participating policyowners. London Life
continues to have the largest Canadian participating account,
with $19.8 billion in assets, including $1.6 billion in surplus
(at Dec. 31, 2011). Our participating account has a strong surplus position,
which helps provide stability and strength to the participating account,
and can help smooth the impact of fluctuations in experience on dividends.
Some key benefits of participating life insurance from London Life
Proven performance
Our long-term investment strategy, together In 2011, dividends distributed to London Life
with our strategy of smoothing the returns for participating policyowners were $757 million.
the purpose of determining the dividend scale Effective Jan. 1, 2012, the London Life
interest rate, helps reduce the impact of short- participating policyowner dividend scale
term volatility on participating life insurance interest rate is 6.4 per cent.*
dividends.
London Life has paid dividends to participating
London Life’s 30-year average dividend scale policyowners every year since 1886.
interest rate was 9.1 per cent for the period
1982 to 2011. Investment returns are an
important factor in determining the amount of
dividends that will be paid.
* he dividend scale interest rate is the interest rate used in determining the investment component of
T
the dividend scale. The rate shown applies to policies issued after Sept. 16, 1968. These policies have
a variable policy loan rate provision, whereas policies issued before this date have a fixed policy loan
rate provision and a different dividend scale interest rate.

2. Accountability Prudent management
In 2011 London Life participating policyowner The historical performance of the London Life
death claims totaled $318.5 million. participating account is due not only to strong
In 2011 the portion of surplus distributed to investment results, but also to prudent selection
London Life participating policyowners remained of underwriting risks and favourable mortality
at 97.5 per cent, unchanged since 1966. and expense-management results.
London Life is governed under the federal Mortality is a unique feature of participating life
Insurance Companies Act of Canada, which insurance. As people live longer, this positive
includes provisions for how participating mortality experience is passed to policyowners
accounts must be managed within a company through dividends. Every decade of the last
with shareholders, and includes the requirement century showed mortality improvement.
for a participating account management policy London Life has the largest Canadian
and a policyowner dividend policy to be participating account, measured by assets,
established and maintained. which provides considerable opportunities
when it come to achieving expense efficiencies.
Position of strength
Commitment to
London Life continues to have the largest
Canadian participating account, measured participating life insurance
by assets, with $19.8 billion in total assets, London Life is committed to excellence
which includes 1.6 billion in surplus at in participating life insurance. While some
Dec. 31, 2011. Surplus, and income generated companies have backed out of the participating
by it, is used to help ensure financial strength life insurance market, we will continue to be a
and stability. It can also be used for other leader in this area. We believe in participating
purposes such as financing new business growth life insurance and know the value it has
within the participating account, providing for delivered to participating policyowners.
transitions during periods of major change,
or smoothing the impact of fluctuations in
experience on dividends related to investment
volatility, mortality and expenses.
London Life has 1.6 million participating life
insurance policies in force at Dec. 31, 2011.
Past performance statistics are not necessarily Notes:
indicative of future performance, which may Throughout this document numbers may be rounded to
be more or less favourable. For more information one decimal place.
on participating life insurance, see Your guide to Based on competitive data currently available as not all
London Life participating life insurance or London Life companies report this information.
participating life insurance Financial facts 2011,
both available on our website.
London Life and design are trademarks of London Life Insurance Company. 46-6156-5/12