Click here to close now.


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
Enterprises can achieve rigorous IT security as well as improved DevOps practices and Cloud economics by taking a new, cloud-native approach to application delivery. Because the attack surface for cloud applications is dramatically different than for highly controlled data centers, a disciplined and multi-layered approach that spans all of your processes, staff, vendors and technologies is required. This may sound expensive and time consuming to achieve as you plan how to move selected applicati...
The broad selection of hardware, the rapid evolution of operating systems and the time-to-market for mobile apps has been so rapid that new challenges for developers and engineers arise every day. Security, testing, hosting, and other metrics have to be considered through the process. In his session at Big Data Expo, Walter Maguire, Chief Field Technologist, HP Big Data Group, at Hewlett-Packard, will discuss the challenges faced by developers and a composite Big Data applications builder, foc...
Nowadays, a large number of sensors and devices are connected to the network. Leading-edge IoT technologies integrate various types of sensor data to create a new value for several business decision scenarios. The transparent cloud is a model of a new IoT emergence service platform. Many service providers store and access various types of sensor data in order to create and find out new business values by integrating such data.
Data loss happens, even in the cloud. In fact, if your company has adopted a cloud application in the past three years, data loss has probably happened, whether you know it or not. In his session at 17th Cloud Expo, Bryan Forrester, Senior Vice President of Sales at eFolder, will present how common and costly cloud application data loss is and what measures you can take to protect your organization from data loss.
The cloud has reached mainstream IT. Those 18.7 million data centers out there (server closets to corporate data centers to colocation deployments) are moving to the cloud. In his session at 17th Cloud Expo, Achim Weiss, CEO & co-founder of ProfitBricks, will share how two companies – one in the U.S. and one in Germany – are achieving their goals with cloud infrastructure. More than a case study, he will share the details of how they prioritized their cloud computing infrastructure deployments ...
There are so many tools and techniques for data analytics that even for a data scientist the choices, possible systems, and even the types of data can be daunting. In his session at @ThingsExpo, Chris Harrold, Global CTO for Big Data Solutions for EMC Corporation, will show how to perform a simple, but meaningful analysis of social sentiment data using freely available tools that take only minutes to download and install. Participants will get the download information, scripts, and complete en...
WebRTC: together these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at WebRTC Summit, Cary Bran, VP of Innovation and New Ventures at Plantronics and PLT Labs, will provide an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it may enable, complement or entirely transform.
SYS-CON Events announced today that Dyn, the worldwide leader in Internet Performance, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Dyn is a cloud-based Internet Performance company. Dyn helps companies monitor, control, and optimize online infrastructure for an exceptional end-user experience. Through a world-class network and unrivaled, objective intelligence into Internet condit...
Between the compelling mockups and specs produced by analysts, and resulting applications built by developers, there exists a gulf where projects fail, costs spiral, and applications disappoint. Methodologies like Agile attempt to address this with intensified communication, with partial success but many limitations. In his session at DevOps Summit, Charles Kendrick, CTO and Chief Architect at Isomorphic Software, will present a revolutionary model enabled by new technologies. Learn how busine...
Interested in leveraging automation technologies and a cloud architecture to make developers more productive? Learn how PaaS can benefit your organization to help you streamline your application development, allow you to use existing infrastructure and improve operational efficiencies. Begin charting your path to PaaS with OpenShift Enterprise.
WebRTC services have already permeated corporate communications in the form of videoconferencing solutions. However, WebRTC has the potential of going beyond and catalyzing a new class of services providing more than calls with capabilities such as mass-scale real-time media broadcasting, enriched and augmented video, person-to-machine and machine-to-machine communications. In his session at @ThingsExpo, Luis Lopez, CEO of Kurento, will introduce the technologies required for implementing thes...
Achim Weiss is Chief Executive Officer and co-founder of ProfitBricks. In 1995, he broke off his studies to co-found the web hosting company "Schlund+Partner." The company "Schlund+Partner" later became the 1&1 web hosting product line. From 1995 to 2008, he was the technical director for several important projects: the largest web hosting platform in the world, the second largest DSL platform, a video on-demand delivery network, the largest eMail backend in Europe, and a universal billing syste...
SYS-CON Events announced today that Spirent Communications, the leader in testing navigation and positioning systems, will exhibit at SYS-CON's @DevOpsSummit Silicon Valley, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Spirent Communications enables innovations in communications technologies that help connect people. Whether it is service provider, data centers, enterprise IT networks, mobile communications, connected vehicles or the Inte...
Containers are revolutionizing the way we deploy and maintain our infrastructures, but monitoring and troubleshooting in a containerized environment can still be painful and impractical. Understanding even basic resource usage is difficult - let alone tracking network connections or malicious activity. In his session at DevOps Summit, Gianluca Borello, Sr. Software Engineer at Sysdig, will cover the current state of the art for container monitoring and visibility, including pros / cons and li...
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.