June 14, 2013 -

The Equitable Life Insurance Company of Canada announced today that its Board of Directors has approved a change to the dividend scale, effective July 1, 2013.

The dividend interest rate for most Equimax® Participating Whole Life policies purchased from November 2004 to February 2012 will decrease. Policyholders who purchased an Equimax Participating Whole Life policy before November 2004 or after February 2012 are not affected by this dividend scale change. Base insurance coverage, guaranteed values, and previously credited dividends are not affected by this change and will continue to provide policyholders with excellent value.

"Equitable Life's Participating Account yield has remained strong despite challenging economic times and low interest rates," said Ronald Beettam, President and Chief Executive Officer at Equitable Life. "The prolonged low interest rate environment continues to put pressure on those yields, which needs to be reflected in the dividend scale."

Even though the dividend scale is reducing, total dividend payments to policyholders are expected to increase due to the growing total value within our in-force block of whole life policies. Total dividend payments to Participating Whole Life policyholders will be approximately $11.7 million during the period from July 1, 2013 to June 30, 2014, compared with approximately $10.7 million the previous year.

As one of the largest mutual life insurance companies in Canada, Equitable Life shares the distributable earnings of its Participating Account through a credit of annual dividends to its participating whole life policyholders. The Company considers a number of factors when determining its annual dividends. One consideration is the investment returns from the Participating Account, which is managed for investment yield as well as to cover the risk associated with paying all future obligations of the participating block of policies. Other considerations include death claims, policy lapses, taxes, and other expenses associated with the sale and administration of the participating block of policies.

An objective of each year's dividend is to maintain reasonable equity between classes and generations of policyholders. This means that different classes of policies may have different adjustments to the dividends they receive. Dividends are not guaranteed and future dividends can be higher or lower than previously projected.

Participating whole life policyholders can contact their advisor or Customer Service at 1.800.668.4095 to find out how this change may impact their policy.


Since 1920, people have been depending on Equitable Life of Canada for financial protection. As one of the largest mutual life insurance companies in Canada, Equitable Life is dedicated solely to its policyholders. Everything we do is focused on providing them with personalized service, security and wellbeing. Through independent Advisors across Canada, we offer a wide selection of competitive Individual Life and Health, Savings and Retirement and Group Benefits products to meet a range of financial planning and health needs.


Media relations contact
Don Bisch
Director, Corporate Communications
1.800.722.6615 ext. 8017