Financial position
Climate change may put pressure on our organization’s financial position, mainly 
because of the increasing frequency and severity of extreme weather events. 
These events could have short-term impacts on our profitability and, as a result, 
on the cash flows associated with claims settlements.
To mitigate these impacts, we rely on:
•	
Natural catastrophe models to estimate probable maximum losses 
and adjust our reinsurance coverage;
•	
A major loss model integrated into our financial scenario exercises, 
including Financial Condition Testing;
•	
Portfolio deterioration scenarios built from these models;
•	
A reinsurance and retrocession program whose parameters (retention 
and limits) are assessed annually.
Our work
We completed the Standardized Climate Scenario Exercise (SCSE) developed by 
the AMF and the Office of the Superintendent of Financial Institutions. Thanks to 
the SCSE, we now have a better understanding of climate-related financial risks. 
We also worked with a reinsurance brokerage firm to gain a better understanding 
of the risks associated with certain climate events, such as wildfires and floods. 
This initiative enabled us to refine our modelling tools.
	 Coming in 2026
•	
Consolidation of our climate risk mapping
•	
Development of a framework for risk metrics 
and monitoring indicators
•	
Validation and publication of our decarbonization plan 
and its targets
•	
Enhancement of our natural catastrophe scenarios 
and development of climate scenarios
2025 – CSR SUMMARY 
83

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