Equitable Life, one of Canada’s largest mutual life insurance companies, had an outstanding year in 2017, surpassing previous records on almost all financial fronts. Most notably, the Company realized record earnings of $106 million, an increase of 33% over last year’s net income of $80 million resulting in a return on policyholders’ equity of 16.8%. These excellent results were driven by business growth, investment gains and positive claims experience.
The Company also maintained a strong capital position, reporting a Minimum Continuing Capital and Surplus Requirements (MCCSR) ratio of 231%. Equitable Life’s participating policyholders' equity, one of the key measures of a mutual life insurer's financial stability, increased 18% from $580 million at the end of 2016 to $686 million in 2017.
Equitable Life’s financial success is a result of very strong growth and a conservative approach to investment. The Company achieved a new high of $1.2 billion for premiums and deposits, and surpassed $4.1 billion of assets under administration.
Growth was bolstered by strong sales as measured by new annualized premiums and deposits. In particular, Individual Life and Critical Illness insurance business experienced an outstanding year with sales of $101 million, an 8.2% increase over 2016. The Group Benefits business finished the year at $45 million. The Savings and Retirement business set a new record of $311 million, an increase of 11.9% over last year.
“We look forward to the year ahead with confidence, and we’re focused on building on last year’s success with continued profitable growth and financial stability,” added Mr. Beettam. “Throughout 2017, our people demonstrated an unwavering drive and commitment to delivering against company goals; it is only through these efforts that our accomplishments have been possible.”
2017 Financial Highlights
- Net income of $106 million, for a return on policyholders' equity of 16.8%
- Capital strength, as measured by the MCCSR ratio, ended the year at 231%
- Participating policyholders' equity increased to $686 million
- Premiums and deposits increased by 14.6% to $1.2 billion
- Record sales in Individual of $101 million, and Savings and Retirement of $311 million
- Assets under administration grew 11.0% to $4.1 billion
- Benefits and payments to policyholders of $694 million
- Dividends to participating policyholders increased by 32.5% to $27.2 million