February 9, 2016 - Despite a challenging economic environment, Equitable Life of Canada reported strong results on all fronts for 2015.
Equitable Life realized earnings of $53.8 million, which resulted in a return on policyholders’ equity of 11.4%. With these earnings, the Company was able to achieve a Minimum Continuing Capital and Surplus Requirements ratio of 216%, up from 210% in 2014.
These earnings were supported by Equitable Life’s investment portfolio which performed well in 2015; the Company’s conservative approach continues to provide ongoing stability.
Equitable Life also experienced continued and steady growth. The Company achieved a new high of $810 million for premiums and deposits and reached $3.5 billion in assets under administration.
Notable achievements in sales across all three lines of business also contributed to the Company's strong results. The Individual line of business achieved $58.1 million in new annualized premiums. This represents a 13% increase over the past year and extends a trend of greater than 12% growth for the past three years. The Group line of business experienced a positive turnaround in 2015, finishing the year with $43.8 million in sales, representing an 86% increase over last year’s results. As well, the Savings and Retirement line of business also had a successful year, marking Equitable Life’s highest ever sales results for segregated funds in particular. Sales for Savings and Retirement overall reached $230 million, a 3% increase over last year.
“During a year that saw continued economic uncertainty, we are proud of our achievements. We have demonstrated that we can execute well and thrive in a volatile environment. These accomplishments speak to the Company’s ongoing strength and stability, as well as its ability to stay the course in the face of economic uncertainty and heightened pressures,” said Ronald Beettam, President and Chief Executive Officer, Equitable Life. “In any year, we would be pleased with these results; in the challenging economic environment that prevailed through 2015, however, these results are noteworthy.”
Looking forward, the Company will prioritize efforts that enable continued strong results and that allow Equitable Life to maintain its base and grow into the future.
2015 Financial Highlights
- Net income of $53.8 million, for a return on policyholders' equity of 11.4%.
- Dividends to participating policyholders increased by 15% to $17.9 million.
- Participating policyholders' equity increased to $500 million.
- Capital strength, as measured by the MCCSR ratio, ended the year at 216%.
- Premiums and deposits increased by 6.8% to $810 million.
- Assets under administration grew 4.7% to $3.5 billion.
- Segregated fund assets exceeded $1 billion.
- Sales in all lines of business exceeded last year.
About Equitable Life of Canada
Canadians have turned to Equitable Life since 1920 to protect what matters most. We work with independent advisors across Canada to offer individual insurance, savings and retirement, and group benefits solutions to meet your needs.
But we're not your typical financial services company. We have the knowledge, experience and ability to find solutions that work for you. We're friendly, caring and interested in helping. And we're owned by our participating policyholders, not shareholders. So we can focus on your interests and providing you with personalized service, security and wellbeing.
For further information,
Patti McKague
Director, Corporate Communications
1.800.722.6615 ext. 8470
pmckague@equitable.ca