Equitable Life posted net earnings of $86.8 million in 2018. This is a decline from the insurer’s earnings of $106 million in 2017.
The insurer underlined that its 2018 earnings were the second highest in the company’s history. Its 2017 results set the record.
Return on policyholders’ equity for 2018 was 11.9%, compared to 16.8% in 2017.
Strong sales growth
The company says 2018 was a strong year, with growth across all lines of business. “The Savings and Retirement business set a new record of $380 million, an increase of 22% over last year,” stated Equitable Life in a Feb. 13 announcement. “The Individual Life and Health insurance business experienced another outstanding year with sales of $119 million, an increase of 19% over 2017. The Group Benefits business delivered $52.8 million in sales, an 18% increase over the prior year.”
Premiums and deposits increased by 16% in 2018 to $1.4 billion. Assets under administration grew 4% to $4.3 billion.
The insurer’s capital strength, measured by the LICAT ratio, ended the year at 147%, which the company says is one of the highest in the industry.
Equitable Life's participating policyholders' equity increased to $773 million at the end of 2018, up from $686 million in 2017.
Building on momentum
“Once again, our accomplishments were significant in 2018, and we are in an extremely strong financial position overall as a company,” said Ron Beettam, Equitable Life’s President and Chief Executive Officer. “We’ve continued to build on the momentum we have achieved over the last five years and saw solid growth across all lines of business as a result. During a year when growth was fairly flat across the industry, we performed extremely well. We are very pleased with our results.”
Beettam added that in the year ahead, Equitable Life will continue “to expand our distribution channels, enhance products and services and invest in technology that improves service and lowers our unit costs.”