At Equitable Life, we take a conservative approach to risk, and focus on longer term strategies that foster ongoing stability and growth for our policyholders and business partners.
We realized record earnings of $58.6 million, eclipsing our previous high for net income of $44.7 million in 2012. As a result, return on policyholders' equity increased significantly to 16.1% in 2013 from 13.5% reported in the previous year.
These results were buoyed by strong equity markets and higher interest rates. Diligent expense management as well as good mortality and morbidity experience supported solid earnings from the Individual and Group lines of business.
We enhanced our strong and stable capital position in 2013. Our Minimum Continuing Capital and Surplus Requirements (MCCSR) ratio finished the year at 228%, its highest level in over 25 years. Our participating policyholders' equity, one of the key measures of a mutual life insurer's financial stability, increased to $394 million, from $336 million at the end of 2012.
We also had a solid year from a growth perspective in 2013. Premiums and deposits reached a new high of $680 million, up 4.0% from $654 million the previous year. In addition, we surpassed $3 billion in assets under administration, just four years after hitting the $2 billion mark.
2013 Financial highlights
- Net income increased to $58.6 million, for a return on policyholders' equity of 16.1%.
- Participating policyholders' equity increased 17.3% to $394 million.
- Capital strength, as measured by the MCCSR ratio, ended the year at 228%.
- Premiums and deposits increased by 4.0% to $680 million.
- Assets under administration grew 4.2% to $3.04 billion.