Since its creation, Beneva has made a name for itself in the insurance industry. Its 2021 financial results attest to this. After just 18 months, the coming together of equals between La Capitale and SSQ Insurance can already be declared a resounding success.
Financial highlights
- $26.8 billion in assets
- Consolidated net income of $367.9 million
- $3.1 billion in equity
- Gross premiums of $6.6 billion
- Consolidated return on equity of 12.9%
“In 2021, we built the solid foundations of a great company that has shown itself to be successful and committed. Our first strategic plan is tailored to efficiently integrate the two companies and adapt to the transformation of the insurance industry. Beneva is a rapidly growing player in the Canadian market and its financial results support its growth,” said Jean-François Chalifoux, Beneva’s President and Chief Executive Officer.
Beneva achieved excellent financial results in 2021. For the year ended December 31, 2021, consolidated return on equity was 12.9%. Consolidated net income amounted to $367.9 million. Gross premiums totalled $6.6 billion, an increase of 10.0% over the previous year. Its solvency ratio was 172%, showing that it is well-capitalized.
Individual Insurance and Financial Services
Individual insurance and financial services recorded net income of $103.2 million, up sharply from $37.7 million in 2020. Individual insurance volume amounted to $453.0 million, an increase of 4.9% mainly due to higher universal life deposits and good retention rates. Funds under management totalled $11.2 billion thanks to higher than expected deposits and good returns in 2021, combined with significant growth in sales.
These excellent results are contributing to propelling Beneva into a leading role in the Canadian market.
When clients pass away, their beneficiaries are very likely to switch financial advisors. Beneficiary planning is a powerful way to mitigate this risk to your practice and uncover new opportunities in the process.
With nearly $700 billion in financial assets poised to be transferred to the next generation in Canada by 2026, there’s a lot of money in motion right now. The challenge is to maintain your position as a trusted family advisor once that money starts to move.
The bad news is that more than 70% of heirs are likely to fire or change financial advisors after inheriting their parents’ wealth according to Cerulli Associates Inc.1 Although they studied the U.S. market, there is no reason to believe that Canada is any different. Another report recently found that the same 70% of women change their advisor within one year of the death of a spouse or partner.2
The good news is that there’s plenty of research showing that clients don’t necessarily want it this way. They actually want sound advice across generations, and that makes beneficiary planning imperative. More than just completing a designation form, it’s a process that can help you shift your personal brand from someone who serves individual clients to someone who is known and trusted by entire families.
Not just clients, but families
Parents are aware that their children lack financial literacy and more than two-thirds say they want their financial advisor to help. Most families have never had a proper conversation about estate planning. Many children realize that they have little or no idea what their inheritance will look like or how to manage it.
Beneficiary planning is a terrific entry point to bridge the concerns of both parents and children. It creates the opportunity to talk specifics, set expectations and dispel anxieties. It also leads to a natural awareness of gaps in the family financial plan that you will be able to expertly fill.
Here’s a four-step process for making beneficiary planning part of your practice:
Step 1: Examine your client list. The best place to start may be in the file cabinet sitting right beside you. Look at who your clients have listed as their beneficiaries. If you see any missing names or people you don’t know, these might be the families to focus on first.
Step 2: Schedule a beneficiary review. Let these clients know that a periodic review of their beneficiary designations is a standard part of good financial planning. Explain why this is especially important if there have been any big changes in the family, such as marriages, divorces, births or deaths, or even more subtle changes such as aging, health status and children growing older.
Step 3: Suggest a family meeting. This step is crucial. It’s your opportunity to bring the family together for positive and productive discussion. The objective is to explore the accountholder’s intentions for their assets and their legacy. It’s also the time to understand what the beneficiaries want from life, and to educate them on the obligations that come with their future inheritance.
Step 4: Follow-up and implement. If you’ve run a good family meeting, you should have logical next steps. Within a week, respond to any questions or follow-up items that came out of the meeting. Create a proposal for the family that addresses the financial issues raised by each party, and set times to meet with each of them again to finalize and implement solutions.
Talking to clients about beneficiary planning is no guarantee that you will continue to guide the family’s assets for future generations. But failing to connect with spouses, children and others who may be part of a client’s estate plan will all but guarantee that those assets are at risk of leaving some day.
We’re here to help
At Beneva, we are invested in helping you build a stronger practice through beneficiary planning. Bring us your questions about how to use investment and insurance solutions to solve real financial planning needs across generations. Our resourceful back-office support personnel and dedicated Sales Directors across every region in Canada are here to help.
1 https://www.cerulli.com/news/aging-boomers-bring-intergenerational-planning-to-the-forefront
2 Partners 4 Prosperity, “Women and Wealth: Challenges, Changes, and Keys to Prosperity,” by Kate Phillips, Mar 5, 2016, based on Journal of Financial Services gated reports
It’s your typical morning. You go through the emails flooding your inbox and wonder how you’ll get through all of them! You delete most of them without even opening them. And what if your solicitation emails suffered the same fate?
Of all the marketing tools available, email is still your best bet to attract potential clients. Here are a few tips and tricks to boost your email response rate.
Purpose of exercise
Your role as an advisor is to establish trust and build a relationship between you and your potential clients. Your goal is to initiate a discussion with them. Reaching out to potential clients by email is meant to establish that first contact, and not to sell products and services.
To establish that successful first contact, your email has to stand out.
But how?
It will take email recipients about 3 seconds to decide whether or not to open your email. So think “content over quantity”. Take your time and draft a catchy email.
You’ll be better off drafting a few thoughtful emails rather than a host of messages lacking real content.
Play with the subject
A compelling subject line makes all the difference. It’ll have a major impact on the total number of emails your potential clients actually open.
Put yourself in their shoes. Pique their curiosity. You should avoid coming off as someone trying to sell a product or service, but rather, show interest in them as people. Otherwise, your email will end up being ignored or go straight to the spam folder.
You should also keep in mind that recipients may read your email from their cell phones. Be creative. Keep your message under 50 characters and use plain language.
And what about Message Preview?
Message Preview is rarely mentioned, but requires some skill. The short text is displayed in the reading pane (below or next to the subject line) before you open the email
Just like the subject line, Message Preview is key to your choosing to either open or delete an email. A clear, concise and catchy message will pique the clients’ interest and curiosity.
Compelling content
Introduce yourself briefly. Write one idea per paragraph. Space out your text.
And more importantly, get to the point. Again, use short sentences and plain language. The more specific your questions are, the quicker you’ll get feedback. As potential clients are reading your email, they are already formulating a response. Your email will less likely be forgotten.
Writing tips
- Don’t overcapitalize and use punctuation wisely (overuse of exclamation marks will make you appear overly enthusiastic)
- Check for spelling mistakes
- Make sure your tone is professional, but dynamic
- Be bold
- Use a subject that will touch prospective clients
- Tug at their heartstrings
- Stimulate emotion to foster proximity
Did a client recommend your services? Use this recommendation to your advantage. You’ll be even more credible:
- Address them by their first name. They will be more attentive because they will feel implicated.
- Present solutions that are likely to meet their needs.
Value added
Add more value to your email by including personalized information.
- Give advice to help prospective clients carry out a project.
- Speak to them about the things to consider before taking out insurance.
- Opt for a solution-oriented rather than a project-specific approach.
- Discuss their plans, challenges and goals and offer solutions tailored to their specific needs.
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