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 a challenging economic environment, Equitable Life of
Canada delivered solid results in 2012, achieving all-time highs
for earnings and growth. Despite low interest rates and volatile
equity markets, the Company realized record earnings of $44.7
million, far surpassing the previous high of $32.0 million in 2010.
As a result, return on policyholders' equity increased considerably
to 13.5% in 2012. This historic result was due, in particular, to
solid earnings by both the Individual and Group lines of
Equitable Life remains strong and stable with a Minimum
Continuing Capital and Surplus Requirements (MCCSR) ratio of 195%,
up from 190% in 2011 and well above the minimum regulatory
requirement set out by the Office of the Superintendent of
Financial Institutions Canada (OSFI). As well, the Company's
participating policyholders' equity, one of the key measures of a
mutual life insurer's financial stability, increased to $352.1
million from $307.4 million at the end of 2011.
Equitable Life had a strong year for growth in 2012. Premiums
and deposits reached $606.1 million and the Company's assets under
administration grew to $2.93 billion - both all-time highs.
A number of factors contributed to this strong performance in
2012. Diligent expense management, positive Group claims ratios and
favourable performance of equity markets in the latter half of the
year helped to offset the low interest rate environment and
lower-than-expected sales in the Individual and Savings and
Retirement lines of business.
The ability of Equitable Life to remain strong in the midst of
difficult market conditions also highlights the benefits of being
one of the largest mutual life insurance companies in Canada. We
are not driven by shareholder pressures for quarterly results. Our
mutual structure allows us to offer continuity and stability and to
focus on growing the Company and meeting the long-term interests of
2012 Financial Highlights
• Net income increased to $44.7 million, for a
return on policyholders' equity of 13.5%.
• Participating policyholders' equity increased 14.5%
to $352.1 million.
• Capital strength, as measured by the MCCSR ratio,
ended the year at 195%.
• Premiums and deposits increased by 4.4% to $606.1
• Assets under administration grew 6.7% to $2.93