March 5, 2014

Les Herr
President and Chief Executive Officer

Duncan Jackman
Chairman of the Board

Important message from The Empire Life Insurance Company 

Last week, the Board of Directors approved Empire Life’s five-year business plan and expressed its great satisfaction and appreciation for the record financial results achieved by the company in 2013.  We are very pleased with the progress and accomplishments made by Empire Life and we fully support the direction that has been laid out for 2014 and beyond. 

A news release was issued earlier today announcing that Les Herr will be leaving his position as President and Chief Executive Officer, effective May 30, 2014. We are now searching for a new leader to continue the journey Les Herr started when he took over from Doug Hogeboom, and lead Empire Life to its next successful milestone.

I know there is always speculation about company ownership, especially around times of leadership change. Many of you know that The Dominion was sold after such a change. The property and casualty insurance industry is extremely challenging and we thought the time was right to sell The Dominion. Empire Life is in a completely different industry and has just delivered great results. This is a company we intend to continue to grow, not to sell.

Empire Life has arrived where it is today because of hard work and leadership.
When Les took on the President and Chief Executive Officer role, we were counting on his sales and marketing expertise and his business sense to lead us to new levels of success. Over the past six years he has delivered on those expectations and his record of success is indisputable. He has renewed the company’s core capabilities, fostered innovation and growth, deepened the company’s distribution relationships, built a strong, capable management team and a well-capitalized and financially stable company. And, he accomplished all of this while leading Empire Life through the worst economic downturn in decades. 

On a personal note, I want to thank Les for his hard work, commitment and dedication and express to him both my admiration of the person he is and my thanks for his part in bringing Empire Life to where it is today – a great Canadian company. Les and I have already talked about how we will continue to do business together when he finishes as CEO. I am looking forward to it. 
 
Strong, productive distribution relationships have been crucial to the success of Empire Life, especially so during the past decade when our industry has undergone such great change and faced such significant challenges. On behalf of the Board of Directors, I thank you for your continued partnership and business and assure you of our continued support. I know, too, that you will join me in wishing Les, his wife Susan and their family all the best. 

Duncan Jackman
Chairman of the Board

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First, let me echo Duncan’s appreciation to all of you for helping make Empire Life the great company it is today. The reason we were able to deliver record financial results last year is because we have built a strong and committed team; one that includes you, our distribution partners.  I thank you for choosing to do business with Empire Life, for your support and, in many cases, personal friendship over the years. Our shared mission is to help Canadians build wealth and protect their financial security. There is no better way to do that than with professional financial advice and knowledge.
 
I have enjoyed every day of my 15 years with this great company and I am especially proud to have served the last six as President and CEO.
 
It’s hard to step away when the company has so many exciting initiatives on the go and we have just delivered record results, but there is never a perfect time. I believe the company is in great shape for a new leader to build on what my team and I have accomplished, with your support and take Empire Life to its next level of success.
 
I also want you to know that I intend to stay just as focused on the company’s business plans and direction between now and the end of May as I am today. After that, I will continue to make myself available to the ELT, Board and new leader to ensure a smooth transition both internally and with our distribution partners.

I’m very grateful to the Jackman family for the opportunity they gave me to lead this great company six years ago; it has been wonderful working with them, the Board and the exceptional people at Empire Life.

I look forward to seeing many of you during our upcoming Insurance Roadshows later this month and in South Beach in May.
 
Les Herr
President and Chief Executive Officer
Empire Life