Equitable Life announced Feb. 13 that its 2017 financial results have surpassed previous records “on almost all financial fronts.”
In particular, the mutual insurer posted record earnings of $106 million. This is an increase of 33 per cent over last year's net income of $80 million, for a return on policyholders' equity of 16.8 per cent. This increase was driven by “business growth, investment gains and positive claims experience,” says the company.
Equitable Life's participating policyholders' equity, a key measure of a mutual life insurer's financial stability, increased 18 per cent from $580 million at the end of 2016 to $686 million in 2017.
Changing regulatory and economic environment
"We are proud to report these outstanding results," said Equitable Life President and Chief Executive Officer, Ronald Beettam. "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."
The insurer also reported a new high of $1.2 billion for premiums and deposits, and had $4.1 billion of assets under administration.
Individual life and critical illness sales
Equitable Life also reported strong sales in its individual life and critical illness insurance business with sales of $101 million. This is an increase of 8.2 per cent over 2016. The company’s savings and retirement business set a new record of $311 million. This is an increase of 11.9 per cent over last year.