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.


Media relations contact
Don Bisch
Director, Corporate Communications
1.800.722.6615 ext. 8017