June 15, 2012 - The Equitable Life Insurance Company of Canada announced today
that its Board of Directors has approved a reduction in its
dividend scale, effective July 1, 2012. The dividend scale
reduction is a prudent decision as the prolonged low interest-rate
environment continues to put downward pressure on the yields of
Equitable Life's Participating Account.
Even though the dividend scale is reducing, total dividend
payments to policyholders are expected to increase due to the
growing total value within our in-force block of whole life
policies. Total dividend payments to policyholders will be
approximately $10.7 million during the period from July 1, 2012 to
June 30, 2013, compared with approximately $10.5 million the
previous year.
As one of the largest mutual life insurance companies in
Canada, Equitable Life shares the distributable earnings of its
Participating Account through a credit of annual dividends to its
participating whole life policyholders. The Company considers a
number of factors when determining its annual dividends. One
consideration is the investment returns from the Participating
Account, which is managed for investment yield as well as to cover
the risk associated with paying all future obligations of the
participating block of policies. Other considerations include death
claims, policy lapses, taxes, and other expenses associated with
the sale and administration of the participating block of
policies.
Participating whole life policyholders can contact their advisor
or Customer Service at 1-800-668-4095 to find out how this change
may impact their policy.
About Equitable Life
Since 1920, people have been depending on
Equitable Life of Canada for financial protection.
As one of the largest mutual life insurance companies in Canada,
Equitable Life is dedicated solely to its policyholders. Everything
we do is focused on providing them with personalized service,
security and wellbeing. Through independent Advisors across Canada,
we offer a wide selection of competitive Individual Life and
Health, Savings & Retirement and Group Benefits products
to meet a range of financial planning and health needs.
www.equitable.ca
Media relations contact
Don Bisch
Director, Corporate Communications
1.800.722.6615 ext. 8017
dbisch@equitable.ca
