Committees of the Board and Other CommitteesThe Audit Committee

Duties and Responsibilities

It has the following powers, in addition to revision and examination duties, meetings, and more:

• Reviews the annual statements before they are approved by the Directors, including any returns specified by the regulators
• Requires management to implement and maintain appropriate internal control procedures and reviews, evaluates and approves those procedures
• Reviews such investments and transactions that could adversely affect the well-being of the insurance companies, as the auditor or any officer may bring to the attention of the Committee
• Meets with the auditor and the appointed actuary to discuss the annual statement and returns, and meets with the internal auditor and management to discuss the effectiveness of the insurance companies’ internal controls procedures.

Governance

At least once a year, the Committee meets privately with the persons in charge of oversight independent functions, including the appointed actuaries for Property & Casualty and Life, the peer reviewers for Property & Casualty and Life, the internal and external auditors, the business continuity manager, the chief risk officer, the chief compliance officer and the anti-money laundering officer. The Committee meets three times a year. The members of the Committee also meet without the presence of management.