Our Financial Strength

Equitable Life takes a conservative approach to risk, and focuses on longer term strategies that foster ongoing stability and growth for our policyholders and business partners.

Amid an economic environment that challenged the entire insurance industry, Equitable Life of Canada achieved earnings of $8.5 million in 2011, down from record earnings of $32.0 million in 2010. Low interest rates, volatile financial markets and poor lapse experience in a segment of the Individual line of business resulted in a strengthening of the reserves by $33.1 million. Offsetting the impact of the difficult environment were a focus on expense management, excellent results in the Group line of business and good returns on surplus.

Despite the challenging environment, we continue to be in a strong and stable position. Our participating policyholders' equity increased in 2011 and our capital remained well above levels required by the Office of the Superintendent of Financial Institutions Canada (OSFI). As well, both premiums and deposits and assets under management increased in 2011, while all lines of business finished the year at or slightly below their previous year's sales results.

Equitable Life has continued to maintain a sound investment portfolio that has delivered consistent returns. With the debt crisis continuing to unfold in Europe, we have no direct exposure to sovereign debt issues and only limited exposure to foreign debt. We took steps to ensure our ongoing stability in uncertain times by strengthening the Company's risk framework.

Equitable Life's ability to remain strong in the midst of difficult market conditions reflects the benefits of our commitment to mutuality. Our mutual status provides continuity and stability, and allows us to focus on meeting the long-term interests of our policyholders.