Equitable Life of Canada outperformed in 2013 on almost all financial fronts, the company reports.
It realized record earnings of $58.6 million, eclipsing its previous high for net income of $44.7 million in 2012. As a result, return on policyholders’ equity increased significantly to 16.1% in 2013 from 13.5% last year.
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The results were buoyed by strong equity markets and higher interest rates. Diligent expense management as well as good mortality and morbidity experience supported solid earnings from the individual and group lines of business.
Equitable Life enhanced its strong and stable capital position in 2013. Equitable’s Minimum Continuing Capital and Surplus Requirements ratio finished the year at 228%, its highest level in over 25 years. The company’s participating policyholders’ equity increased to $394 million, from $336 million at the end of 2012.
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It had a solid year of growth in 2013. Premiums and deposits reached a new high of $680 million, up 4% from $654 million the previous year. The company also surpassed $3 billion in assets under administration.
On the sales front, the individual policies hit a record high of $45.9 million in new annualized premiums, an 18% increase from $38.8 million in 2012. Group policies brought in $48.8 million in sales.
2013 Highlights
Net income increased to $58.6 million, for a return on policyholders’ equity of 16.1%.
Participating policyholders’ equity increased 17.3% to $394 million.
Capital strength, as measured by the MCCSR ratio, ended the year at 228%.
Premiums and deposits increased by 4.0% to $680 million.
Assets under administration grew 4.2% to $3.04 billion.