Amid a challenging economic environment, Waterloo, Ont.-based Equitable Life of Canada delivered solid results in 2012, achieving all-time highs for earnings and growth.

Despite low interest rates and volatile equity markets, the company realized record earnings of $44.7 million, far surpassing the previous high of $32.0 million in 2010. As a result, return on policyholders’ equity increased considerably to 13.5% in 2012, due to solid earnings by both the individual and group lines of business.

The mutual life insurance company credits a number of factors for its strong performance in 2012. Diligent expense management, positive group claims ratios and favourable performance of equity markets in the latter half of the year helped to offset the low interest rate environment and lower-than-expected sales in the individual and savings & retirement lines of business.

The Minimum Continuing Capital and Surplus Requirements (MCCSR) ratio was 195%, up from 190% in 2011 and well above the minimum regulatory requirement set out by the Office of the Superintendent of Financial Institutions Canada. As well, the company’s participating policyholders’ equity, a measures of a mutual life insurer’s financial stability, increased to $352.1 million from $307.4 million at the end of 2011.

Premiums and deposits reached $606.1 million in 2012 and the company’s assets under administration grew to $2.93 billion — both all-time highs.

The group line of business achievinged record sales of $53.3 million, eclipsing its 2011 sales by 83.8%. Individual sales were down 7.4% to $38.8 million in 2012, as persistently low interest rates led to unprecedented product and pricing changes in the industry. Similarly, savings & retirement sales fell 4.6% to $219.6 million as the current economic environment led to weak segregated funds sales.

“By almost all measures, 2012 was a standout year for the company,” said Ronald Beettam, Equitable Life’s president and CEO, in a release.