February 17, 2010 -
Equitable Life of Canada® reported another year of growth and
strong financial results in 2009. The Company announced solid
earnings with a record $31.3 million in net income, a 34% increase
over core earnings in 2008. Capital strength was demonstrated by an
increase in Equitable Life's Minimum Continuing Capital and Surplus
Requirement (MCCSR) ratio to 221% from 197% the previous year. As
well, premiums and deposits reached $525 million in 2009, exceeding
the half billion dollar mark for the first time.
A number of factors contributed to this strong performance in
2009. The Company was pleased with overall sales results given the
marketplace and the recessionary economic environment. Equitable
Life's Savings and Retirement business had a breakout year,
achieving an increase in sales of 35% over 2008. As well, Equitable
Life was successful in keeping costs well under control through a
continued focus on expense management, resulting in lower general
expenses than the previous year. Further contributors to earnings
were the positive turnaround in equity markets following a
turbulent 2008, and good claims experience in both Individual and
Group lines of business reflecting prudent underwriting and claims
"Despite the uncertain economic environment over the past year,
Equitable Life of Canada emerged from the downturn in a strong
position," said Ronald Beettam, Equitable Life of Canada's
President and Chief Executive Officer. "The ability of Equitable
Life to succeed in difficult market conditions is evidence of our
prudent management practices and our commitment to mutuality. In
fact, the unstable economic environment has highlighted the
benefits of being one of the largest mutual life insurance
companies in Canada," added Beettam.
2009 Financial Highlights
- Net income rose to $31.3 million, an increase of 34% over core
earnings of $23.3 million in 2008.
- Capital strength as measured by the MCCSR ratio ended the year
at 221%, up from 197% the previous year.
- Participating policyholders' equity increased to $269 million,
up 13% from 2008.
- Return on policyholders' equity was 12.4%.
- Premiums and deposits increased by 15% from last year to $525
- Assets under administration increased $0.3 billion to $1.96