Another Round of Favourable MCCSR Changes from OSFI for Insurance Cos

Scotia Capital, 7 January 2009� Over the Christmas holidays OSFI announced a series of changes to capital rules, with two important changes for 2008 year-end. We estimate the changes will boost the MCCSR ratios of GWO, MFC, and SLF by up to 8-11 percentage points. IAG has already announced the changes would boost its MCCSR by 14 percentage points. The two key changes for 2008 year-end are as