May 13, 2022 -
Equitable Life of Canada maintains dividend scale for 2022/2023
May 13, 2022 - The Equitable Life Insurance Company of Canada is pleased to announce that its Board of Directors has approved continuing the current dividend scale, including the dividend scale interest rate of 6.05% for the period July 1, 2022 to June 30, 2023. Other factors used to calculate the dividend scale will also remain unchanged.
We use the dividend scale to determine the dividend payment. Dividends are sensitive to all the factors that affect the participating account, but especially changes in investment returns. Even though the dividend scale is not changing, total dividend payments to policyholders are expected to increase due to the growing value of our whole life insurance policies.
Policyholder dividends in the next dividend scale year would be approximately $102 million, compared to $85 million in the prior dividend scale year.
As a mutual life insurance company, Equitable Life® gives its participating whole life policyholders the opportunity to participate in the earnings of the participating account through dividend payments. The dividend scale is reviewed annually to ensure that it is set at an appropriate level. We use the dividend scale to determine the dividend payment. If a dividend is declared, it is credited to the policy as a dividend payment. Dividends are sensitive to all the factors that affect the participating account, but especially changes in investment returns.
The sustained low interest rate environment continues to put downward pressure on the experience in the participating account. If low interest rates continue, investment returns in the participating account will also be lower, and we may need to decrease the dividend scale in the future.
About Equitable Life of Canada®
As one of Canada’s largest and oldest mutual life insurers we provide financial security differently by focusing exclusively on our clients. We believe in the power of working together with you and independent financial advisors across Canada to offer individual insurance, savings & retirement, and group benefits solutions so you can protect what matters today while preparing for tomorrow.
At Equitable Life we are people with a purpose and passion to provide the right solutions and experiences for you through our collaborative partnerships. We have the knowledge, experience, and the financial strength to ensure we meet our commitments to you now and in the future.
Protecting Today – Preparing TomorrowTM
Director, Corporate Communications
Equitable Life of Canada