Equitable Life of Canada posted solid financial results and record income in 2009, the company said Wednesday.

The Waterloo, Ont. based company reported a record $31.3 million in net income, a 34% increase over core earnings in 2008.

Capital strength was demonstrated by an increase in Equitable Life’s Minimum Continuing Capital and Surplus Requirement (MCCSR) ratio to 221% from 197% the previous year.

As well, premiums and deposits increased 15% to $525 million in 2009, exceeding the half billion dollar mark for the first time.

Return on policyholders’ equity for the year was 12.4%.

Assets under administration increased $0.3 billion to $1.96 billion.

A number of factors contributed to this strong performance in 2009. Equitable Life’s Savings and Retirement business had a breakout year, achieving an increase in sales of 35% over 2008.

As well, Equitable Life was successful in keeping costs well under control through a continued focus on expense management, resulting in lower general expenses than the previous year.

Further contributors to earnings were the positive turnaround in equity markets following a turbulent 2008, and good claims experience in both Individual and Group lines of business.

“Despite the uncertain economic environment over the past year, Equitable Life of Canada emerged from the downturn in a strong position,” says Ronald Beettam, Equitable Life of Canada’s president and CEO.

“In fact, the unstable economic environment has highlighted the benefits of being one of the largest mutual life insurance companies in Canada,” adds Beettam.

IE