Mutual insurance company, Equitable Life of Canada reported its 2022 earnings on February 16, showing premiums and deposits increased in 2022, dividends to participating policyholders increased 27 per cent to $100-million, and the company’s Life Insurance Adequacy Test (LICAT) ratio was 150 per cent at December 31, 2022.
“Heading into 2023, Equitable Life is pleased to report that it has successfully transitioned to the new accounting standards, International Financial Reporting Standards (IFRS) 17 and 9,” the company writes in a statement announcing the results. “It is expected that the LICAT ratio will increase and remain one of the strongest in the industry.”
The company reports having net earnings of $156-million and a return on policyholders’ equity of 12 per cent. “This represents the second highest earnings result in company history,” they write. Reported premiums and deposits increased 11 per cent to $2.2-billion while assets under administration were $6.9-billion at the end of the year. The company’s president and CEO, Fabien Jeudy states that growth was experienced across all lines of business.
Individual insurance sales were $148-million, driven by participating whole life sales and a universal life insurance product launch. Savings and retirement sales were $547-million, primarily from segregated funds, while small business group sales were $51-million.