Financial Data and Key Metrics Changes - The underlying EPS for Q3 2025 was CAD 1.86, reflecting a 6% year-over-year increase [5] - Underlying ROE was 18.3%, progressing towards medium-term objectives [5] - Underlying net income reached CAD 1.047 billion, up 3% year-over-year [17] - Book value per share increased by 2% year-over-year [20] - The LICAT ratio stood at 154%, up 3 percentage points from the prior quarter [19] Business Line Data and Key Metrics Changes - Individual protection sales grew by 35% year-over-year [5] - Group health and protection sales increased by 12% [5] - Health and protection underlying earnings decreased by 18% year-over-year due to unfavorable insurance experience in the U.S. [17] - Individual protection underlying net income rose by 25% year-over-year [17] - Asset management and wealth underlying earnings were up 5% year-over-year [17] Market Data and Key Metrics Changes - In Asia, individual protection sales saw double-digit growth in six markets, with new business CSM growing by 20% year-over-year [8] - In Canada, individual protection sales were driven by strong demand for participating life policies, with sales up 16% year-over-year [9][24] - U.S. group health and protection sales increased by 25% year-over-year, driven by higher large case sales [25] Company Strategy and Development Direction - The company aims for a medium-term objective of 10% underlying earnings growth and 20% ROE [15] - Focus on improving U.S. dental business performance through repricing and growth of the commercial business [8] - Continued investment in asset management capabilities, with CAD 1.6 trillion in assets under management [9] - Emphasis on unlocking synergies between asset management and insurance/wealth businesses [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the U.S. business due to structural changes in the healthcare system leading to higher claims [6] - Confidence in the ability to manage pricing and risk selection despite current volatility [8] - Positive outlook for growth in Asia and Canada, with strong fundamentals and distribution networks [15][77] Other Important Information - The company announced a CAD 0.04 increase in dividends to CAD 0.92 per share [9] - Approximately CAD 400 million of shares were repurchased in the quarter [9] - The company completed an annual review of actuarial assumptions, resulting in a modest net loss of CAD 13 million [18] Q&A Session Summary Question: Expectations for Medicaid repricing in 2026 - Management is making reasonable progress with states regarding Medicaid repricing, expecting gradual improvements in 2026 [33] Question: Growth in U.S. commercial premiums - Management noted that premiums have grown over 30% since the acquisition, indicating a focus on commercial dental growth [35] Question: Asset management flows and institutional progress - Management acknowledged lumpiness in flows but highlighted significant institutional gross sales and mandate wins [38][41] Question: Details on unfavorable stop loss experience - Unfavorable experience was attributed to pricing shortfalls and late emergence of claims from prior cohorts [46] Question: Outlook for Medicaid dental loss ratio - Management expects gradual improvement in loss ratios moving into 2026, with Q4 typically being more favorable [60] Question: Potential for a smaller business in 2026 - Management expressed confidence in maintaining market share and competitive positioning despite industry challenges [89]