February 19, 2009 - Equitable Life of Canada® reported another year of growth and
solid financial results. The Company announced a record $30.5
million in overall earnings supported by solid core results and the
sales of its group administration software. Premiums and deposits
increased by 3% backed by a 12% increase in group benefit sales and
an 11% increase in individual life sales.
"2008 was a year that saw an unstable economic environment and
unprecedented stock market volatility that tested the strength of
all companies in the industry. Prudent management practices,
consistent with our mutual philosophy, have held us in good stead
in these turbulent times. Mutuality and our focus on long-term
policyholder commitments go hand-in-hand with our strong risk
management and the Company's high quality investment portfolios.
2009 will continue to be challenging but we fully expect the
Company to continue to grow and prosper," said Ronald Beettam,
President and Chief Executive Officer.
2008 Financial Highlights
- Net income rose to $30.5 million, including the one time
benefit of $8.6 million relating to the group administration
software sales
- Earnings from core operations were $21.9 million, up 4% from
2007, an excellent result given the market conditions
- Participating policyholders' equity increased to $237 million,
up 15% from 2007
- Capital strength remained very strong and well above the OSFI
minimums as measured by the Minimum Continuing Capital and Surplus
Ratio (MCCSR) ending the year at 197%
- Return on policyholders' equity was 13.7% (10.1% excluding the
software sales)
- Premiums and deposits increased by 3% from last year to $455
million, led by a 22% increase in individual life, offset partially
by lower savings and retirement deposits due to the market
conditions
