Equitable Life reports record earnings for 2019
Thanks to “an excellent year in 2019,” Equitable Life of Canada announced that is has beaten previous earnings records for the company, delivering reported earnings of $109-million in 2019, a return on policyholders’ equity of 13.2 per cent.
These numbers are up considerably from 2018 and previous record-setting 2017 net earnings of $86.8-million and $106-million, respectively. Return on policyholders’ equity was up over one per cent relative to the 11.9 per cent reported in 2018. Participating policyholders’ equity increased to $882-million during the year, while dividends to participating policyholders increased by 34.6 per cent to $49.4-million.
The company says assets under administration exceeded $5-billion during the year, growing 19.4 per cent to $5.1-billion, helped by strong overall sales.
“The savings and retirement and individual insurance businesses continued momentum delivered another record-setting year with sales exceeding $400-million and $130-million, respectively,” the company said in a statement released Feb. 13. “The group benefits business delivered $48.4-million in sales in 2019, reflecting a challenging and competitive marketplace.”
Group benefits premiums in-force grew to exceed $500-million during the year. The company’s Life Insurance Capital Adequacy Test (LICAT) ratio ended the year at 155 per cent.