Equitable Life of Canada Announces Record Breaking Financial Results for 2017Submitted by MacDev Financial Group on March 15th, 2018
Equitable Life, one of Canada’s largest mutual insurance companies, and a preferred insurer of MacDev Financial Group, had an exceptional year in 2017, contributing its financial success to strong growth and a conservative approach to investment.
Many life insurance companies in Canada are owned by shareholders who have voting rights and contribute to how the company’s business is conducted. Mutual life insurance companies like Equitable Life are run for the benefit of participating policyholders who are more than clients, they also have an ownership interest in the company. Hence, the focus of a mutual insurance company is to deliver the best financial outcome for its participating policyholders, which share in its success. This includes prudent long-term growth, and financial continuity and stability.
“We are proud to report these outstanding results,” said Equitable Life President and Chief Executive Officer, Ronald Beettam in a Company press release. “Our financial success reflects our continued commitment to profitable growth and our ability to navigate a changing regulatory and economic environment to deliver exceptional results on all fronts.”
In 2017 Equitable Life reported record earnings of $106 million, an increase of 33 percent over a net income of $80 million in 2016. These record earnings, driven by business growth, investment gains and positive claims experiences, also resulted in a return on policyholder's equity of 16.8 percent.
INCREASE IN PARTICIPATING POLICYHOLDER'S EQUITY
Equitable Life also reported an increase in participating policyholder’s equity of 18 percent, from $580 million in 2016 to $686 million in 2017. Participating policyholder’s equity is used as a key measure of a mutual life insurer's financial stability.
The Company also reported an increase in dividends to participating policyholders by 32.5 percent to $27.2 million. In May of 2017, Equitable announced their current dividend scale would remain in effect for the upcoming year (July 1, 2017 to June 30, 2018). Equitable Life’s current dividend scale has remained consistent and steadfast for the past 6 years, despite lower interest rates. Though dividends are not guaranteed, Equitable Life, manages the participating account so effectively, they’ve been paying out annual dividends for decades.
For the full press: Equitable Life of Canada posts record financial results for 2017.
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