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.
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