New business growth and outstanding investment performance key contributors to results
2021 Financial Highlights
- Net income of $187 million, for a return on policyholders' equity of 16.6%
- Dividends to participating policyholders increased by 30% to $79 million
- Capital strength, as measured by the LICAT ratio, ended the year at 167%
- Participating policyholders' equity surpassed $1.2 billion
- Premiums and deposits increased by 16% to $2.0 billion
- Sales of $134 million in Individual Insurance, $498 million in Savings and Retirement and $49 million in Group Benefits
- Benefits and payments to policyholders of $942 million
- Assets under administration grew to $6.8 billion from $6.0 billion
WATERLOO, ON, Feb. 15, 2022 /CNW/ - Equitable Life of Canada, one of Canada's largest mutual life insurance companies, reported earnings of $187 million, equating to a return on policyholders' equity of 16.6%. This record earnings result was driven by continued growth in new and in-force business, along with outstanding investment performance.
"The Equitable Life team continued to rise above new and ongoing challenges to remain focused on our duty to be at our very best, every day, for our clients, partners and each other," said Fabien Jeudy, Equitable Life's President and Chief Executive Officer.
Equitable Life reported premiums and deposits of $2.0 billion in 2021, contributing to $6.8 billion of assets under administration. This growth was supported by strong sales as more Canadians turned to insurance to protect the financial security of their families. Dividends to participating policyholders were $79 million, an increase of 30% from the prior year.
The Individual Insurance business reported 2021 sales of $134 million, driven by participating whole life sales. Savings and Retirement reported sales of $498 million, driven by sales of segregated funds. Group Benefits delivered sales of $49 million, as Equitable Life continues to support small Canadian businesses. Another year of solid sales shows that Equitable Life continues to grow in a healthy manner despite a difficult environment.
Equitable Life closed out 2021 in a position of financial strength, with one of the strongest capital ratios in the industry of 167% as measured by the Life Insurance Capital Adequacy Test (LICAT). This is well above the regulatory target, demonstrating that Equitable Life is well positioned to meet current and future commitments to clients. In addition, DBRS Morningstar confirmed Equitable Life's financial strength rating of A (high) with Stable Trends.
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.
Equitable Life is 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. As a mutual we provide financial security differently, by focusing exclusively on our clients. This allows us to develop management strategies that foster prudent long-term growth, continuity, and stability. We are dedicated to meeting our commitments to clients – now and in the future.
SOURCE Equitable Life of Canada
Media Contact: Rebecca Freiburger, [email protected]
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