WATERLOO, ON, Feb. 13, 2018 /CNW/ - Equitable Life, one of Canada's largest mutual life insurance companies, had an outstanding year in 2017, surpassing previous records on almost all financial fronts.
Most notably, the Company realized record earnings of $106 million, an increase of 33% over last year's net income of $80 million, resulting in a return on policyholders' equity of 16.8%. These excellent results were driven by business growth, investment gains and positive claims experience.
The Company also maintained a strong capital position, reporting a Minimum Continuing Capital and Surplus Requirements (MCCSR) ratio of 231%. Equitable Life's participating policyholders' equity, one of the key measures of a mutual life insurer's financial stability, increased 18% from $580 million at the end of 2016 to $686 million in 2017.
"We are proud to report these outstanding results," said Equitable Life President and Chief Executive Officer, Ronald Beettam. "Our financial success reflects our continued commitment to profitable growth and our ability to navigate a changing regulatory and economic environment to deliver exceptional results on all fronts."
Equitable Life's financial success is a result of very strong growth and a conservative approach to investment. The Company achieved a new high of $1.2 billion for premiums and deposits, and surpassed $4.1 billion of assets under administration. As in past years, Equitable Life's investment portfolio also performed very well, providing ongoing stability.
Growth was bolstered by strong sales as measured by new annualized premiums and deposits. In particular, Individual Life and Critical Illness insurance business experienced an outstanding year with sales of $101 million, an 8.2% increase over 2016. The Group Benefits business finished the year at $45 million. The Savings and Retirement business set a new record of $311 million, an increase of 11.9% over last year.
"We look forward to the year ahead with confidence, and we're focused on building on last year's success with continued profitable growth and financial stability," added Mr. Beettam. "Throughout 2017, our people demonstrated an unwavering drive and commitment to delivering against company goals; it is only through these efforts that our accomplishments have been possible."
2017 Financial Highlights
- Net income of $106 million, for a return on policyholders' equity of 16.8%
- Capital strength, as measured by the MCCSR ratio, ended the year at 231%
- Participating policyholders' equity increased to $686 million
- Premiums and deposits increased by 14.6% to $1.2 billion
- Record sales in Individual of $101 million, and Savings and Retirement of $311 million
- Assets under administration grew 11.0% to $4.1 billion
- Benefits and payments to policyholders of $694 million
- Dividends to participating policyholders increased by 32.5% to $27.2 million
About Equitable Life of Canada
Canadians have turned to Equitable Life since 1920 to protect what matters most. We work with independent advisors across Canada to offer individual insurance, savings and retirement, and group benefits solutions to meet your needs.
Equitable Life is not your typical financial services company. We have the knowledge, experience and ability to find solutions that work for you. We're friendly, caring and interested in helping. The Company is owned by our participating policyholders, not shareholders, allowing us to focus on your interests and on providing you with personalized service, security and wellbeing.
SOURCE Equitable Life of Canada
For further information: Media Contact: Keren Adderley, Director, Corporate Communications, Equitable Life of Canada, 519 904 8470, [email protected]