Equitable Life Home Page News
What This Covers
How to track the financial strength of Equitable Life, a mutual insurance company.
Why policyholders are considered co-owners of a profitable private business.
Key financial indicators to review annually, including return on equity and policyholder dividends.
How policyholder behavior directly impacts the company’s profitability and mutual benefits.
The importance of staying informed and taking ownership responsibility as a participant.
Why Clients Use This
To better understand their role as co-owners in a mutual insurance company.
To monitor the health and performance of the insurer managing their life insurance contracts.
To reinforce confidence in the long-term strength, stability, and profitability of their policies.
To learn how dividends and capital reserves work in their favor.
To build the habit of checking annual financial updates and make informed decisions.
Key Insights by Timestamp
00:01 – 00:48
You’re not just a policyholder, you’re a co-owner of a profitable life insurance business.
Example: One family holds 54 policies in their banking system.00:48 – 01:26
Equitable Life is a mutual company, meaning it serves policyholders, not shareholders.01:26 – 02:16
Visit equitable.ca annually after Valentine’s Day to review their financial performance article.
Tip: Set a yearly calendar reminder.02:16 – 03:45
Equitable Life undergoes dynamic capital adequacy testing; stress tests that simulate adverse conditions like mass claims or market collapse.03:45 – 05:11
They maintain an industry-best LICAT (Life Insurance Capital Adequacy Test) ratio that is well above the required 90% threshold.05:50 – 07:22
2020 Results (during the pandemic):16% Return on Policyholder Equity
Surpassed $1 billion in equity
Premiums grew 6.8% to $1.7B
Dividends increased 24% to $61M
07:22 – 08:50
Most clients reinvest dividends into the pool, increasing paid-up death benefit and cash value growth. This behavior boosts company profits and stability.09:30 – 10:06
Your only obligation is to pay the minimum required premium. Equitable fulfills the rest through legally binding guarantees.10:06 – 10:51
If Equitable ever demutualizes (goes public), policyholders could receive a substantial windfall in cash or stock due to their equity stake.10:51 – End
Ownership brings privilege and responsibility. Stay informed, be engaged, and recognize the value of your contract.