/C O R R E C T I O N -- Laurentian Bank of Canada/

Executive Summary

• Laurentian Bank of Canada announced the purchase of group annuity contracts from a Canadian insurer to de-risk its pension plans.
• The transaction transfers approximately $60 million in obligations and related assets from two registered defined benefit pension plans.
• The insurer will assume responsibility for pension benefits for approximately 400 retirees, beneficiaries, and deferred members, with administration beginning in April 2026.

Key Details

• Transaction Value: Approximately $60 million in obligations and related assets transferred.
• Scope: Covers two registered defined benefit pension plans (corrected from an initial mention of three).
• Beneficiaries: Approximately 400 Laurentian Bank retirees, beneficiaries, and deferred members.
• Effective Date: The insurer will begin administering all benefits to these participants beginning April 2026.
• Risk Protection: Post-transaction benefits for plan participants are protected under Assuris, the life insurance compensation association designated under the Insurance Companies Act of Canada.
• Active Participants: Obligations related to pension benefits for active plan participants remain with the Bank and will continue unchanged.
• Strategic Rationale: The agreement reduces the Bank's non-operating financial risk and administrative costs, simplifying operations.
• Advisors: TELUS Health advised Laurentian Bank on the transaction.
• Financial Impact: The agreement is expected to have no significant impact on the financial results for the first quarter of 2026.

Notable Quotes

• "We are pleased to have reached this agreement which helps ensure that retirees, beneficiaries, and deferred members can receive their benefits from a leading Canadian insurer recognized for its expertise and ability to sustainably manage long-term commitments." — Yvan Deschamps, Chief Financial Officer, Laurentian Bank of Canada