At Equitable Life, we take a conservative approach to risk, and focus on longer term strategies that foster ongoing stability and growth for our policyholders and business partners.
In 2016, Equitable Life realized earnings of $80 million, an increase of 49% over last year’s net income of $53.8 million. These earnings resulted in a return on policyholders’ equity of 14.8%.
The Company also experienced exceptional growth, having achieved a new high of $1.1 billion for premiums and deposits and $3.7 billion in assets under administration.
This growth was bolstered by exceptional sales results across all three lines of business, with a greater than 20% increase over 2015 in sales for each of Individual, Group Employee Benefits and Savings and Retirement. The highlight for 2016 was Individual sales, which experienced a record year on all fronts. Sales in Individual far exceeded the previous year, reaching $93 million, an increase of 60% over 2015. The Group line of business reached $66.2 million in sales, representing a 51% increase over the past year. Savings and Retirement experienced record growth in both the segregated fund and payout annuity markets, reaching $278 million compared to $230 million in 2015, a 21% increase over last year.
As well, Equitable Life of Canada has received a Financial Strength Rating and an Issuer Rating of “A” with a stable trend from DBRS Limited. In assigning this rating, DBRS cited Equitable Life as a good franchise with an excellent risk profile and noted the company’s investments in technology to create efficiencies and reduce costs, as well as its strong presence in the markets it serves.
2016 Financial Highlights
- Net income of $80 million, for a return on policyholders' equity of 14.8%
- Capital strength, as measured by the MCCSR ratio, ended the year at 226%
- Participating policyholders' equity increased by 16% to $580 million
- Premiums and deposits increased by 14.5% to $1.1 billion
- Sales in all lines of business exceeded last year by more than 20%
- Assets under administration grew 6.9% to $3.7 billion
- Payments of $646 million to policyholders for death, disability and health benefits, withdrawals and annuity payments
- Dividends to participating policyholders increased by 15% to $20.6 million