Welcome!

News Feed Item

Equitable Life of Canada achieves record earnings in 2012

WATERLOO, ON, Feb. 13, 2013 /CNW/ - Amid a challenging economic environment, Equitable Life of Canada® delivered solid results in 2012, achieving all-time highs for earnings and growth. Despite low interest rates and volatile equity markets, the Company realized record earnings of $44.7 million, far surpassing the previous high of $32.0 million in 2010. As a result, return on policyholders' equity increased considerably to 13.5% in 2012. This historic result was due, in particular, to solid earnings by both the Individual and Group lines of business.

A number of factors contributed to this strong performance in 2012. Diligent expense management, positive Group claims ratios and favourable performance of equity markets in the latter half of the year helped to offset the low interest rate environment and lower-than-expected sales in the Individual and Savings & Retirement lines of business.

Equitable Life remains strong and stable with a Minimum Continuing Capital and Surplus Requirements (MCCSR) ratio of 195%, up from 190% in 2011 and well above the minimum regulatory requirement set out by the Office of the Superintendent of Financial Institutions Canada (OSFI). As well, the Company's participating policyholders' equity, one of the key measures of a mutual life insurer's financial stability, increased to $352.1 million from $307.4 million at the end of 2011.

Equitable Life also had a strong year for growth in 2012. Premiums and deposits reached $606.1 million and the Company's assets under administration grew to $2.93 billion - both all-time highs. On the sales front, it was a breakout year for the Group line of business, achieving record sales of $53.3 million, eclipsing its 2011 sales by 83.8%. Individual sales were down 7.4% to $38.8 million in 2012, as persistently low interest rates led to unprecedented product and pricing changes in the industry. Similarly, Savings & Retirement sales fell 4.6% to $219.6 million as the current economic environment led to weak segregated funds sales.

Equitable Life is known for its top-quality service, and the Company built on that reputation in 2012. The Group line of business achieved top rankings in a majority of service categories for a survey of Canadian group policyholders conducted by LIMRA, a worldwide association of insurance and financial services companies. As well, the Individual line of business was again ranked as one of the top companies for new business processing in a survey conducted by one of Canada's largest Managing General Agencies.

At the same time, Equitable Life's investment portfolio performed extremely well in 2012 and delivered consistent returns in a volatile environment. Our conservative approach continues to provide ongoing stability and growth.

"By almost all measures, 2012 was a standout year for the Company," said Ronald Beettam, Equitable Life's President and Chief Executive Officer. "Equitable Life's ability to succeed in difficult market conditions is evidence of our prudent management practices and our focus on meeting the long-term interests of our policyholders. We will continue to pursue those priorities that have brought success in the past, including distribution development, service delivery, process improvement and a commitment to our customers and employees."

2012 Financial Highlights

  • Net income increased to $44.7 million, for a return on policyholders' equity of 13.5%.
  • Participating policyholders' equity increased 14.5% to $352.1 million.
  • Capital strength, as measured by the MCCSR ratio, ended the year at 195%.
  • Premiums and deposits increased by 4.4% to $606.1 million.
  • Assets under administration grew 6.7% to $2.93 billion.

About Equitable Life of Canada
As one of Canada's largest mutual life insurance companies, Equitable Life is dedicated solely to its policyholders. The Company is focused on providing them with high-quality service, security and well-being.

Since 1920, Canadians have been depending on Equitable Life for financial protection. The Company offers a wide selection of competitive Individual Life and Health, Group Life and Health, and Individual Savings and Retirement products to meet the needs of its large and growing base of participating policyholders.



SOURCE Equitable Life of Canada

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
"LinearHub provides smart video conferencing, which is the Roundee service, and we archive all the video conferences and we also provide the transcript," stated Sunghyuk Kim, CEO of LinearHub, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
When you focus on a journey from up-close, you look at your own technical and cultural history and how you changed it for the benefit of the customer. This was our starting point: too many integration issues, 13 SWP days and very long cycles. It was evident that in this fast-paced industry we could no longer afford this reality. We needed something that would take us beyond reducing the development lifecycles, CI and Agile methodologies. We made a fundamental difference, even changed our culture...
Things are changing so quickly in IoT that it would take a wizard to predict which ecosystem will gain the most traction. In order for IoT to reach its potential, smart devices must be able to work together. Today, there are a slew of interoperability standards being promoted by big names to make this happen: HomeKit, Brillo and Alljoyn. In his session at @ThingsExpo, Adam Justice, vice president and general manager of Grid Connect, will review what happens when smart devices don’t work togethe...
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Discover top technologies and tools all under one roof at April 24–28, 2017, at the Westin San Diego in San Diego, CA. Explore the Mobile Dev + Test and IoT Dev + Test Expo and enjoy all of these unique opportunities: The latest solutions, technologies, and tools in mobile or IoT software development and testing. Meet one-on-one with representatives from some of today's most innovative organizations
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 7-9, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and E...
Hardware virtualization and cloud computing allowed us to increase resource utilization and increase our flexibility to respond to business demand. Docker Containers are the next quantum leap - Are they?! Databases always represented an additional set of challenges unique to running workloads requiring a maximum of I/O, network, CPU resources combined with data locality.
WebRTC sits at the intersection between VoIP and the Web. As such, it poses some interesting challenges for those developing services on top of it, but also for those who need to test and monitor these services. In his session at WebRTC Summit, Tsahi Levent-Levi, co-founder of testRTC, reviewed the various challenges posed by WebRTC when it comes to testing and monitoring and on ways to overcome them.
Internet of @ThingsExpo, taking place June 6-8, 2017 at the Javits Center in New York City, New York, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @ThingsExpo New York Call for Papers is now open.
"This week we're really focusing on scalability, asset preservation and how do you back up to the cloud and in the cloud with object storage, which is really a new way of attacking dealing with your file, your blocked data, where you put it and how you access it," stated Jeff Greenwald, Senior Director of Market Development at HGST, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.