Equitable Life of Canada rated "A" for financial strength
September 27, 2018 - Equitable Life of Canada's "A" rating for Financial Strength has been confirmed by global credit rating agency DBRS, indicating all trends remain stable at one of Canada's largest mutual insurance companies.
In its rating rationale, DBRS cited Equitable Life's good risk profile, strong market presence, ability to adapt to the current business environment, and the significant investments in process improvement and technological enhancements to enhance service and reduce costs.
"This confirmation of our rating is testament to our ongoing financial stability," said Ronald Beettam, President and Chief Executive Officer at Equitable Life. "It also recognizes our ability to generate consistent and stable earnings, and provide strong returns on our participating policyholders' equity, as we continue to grow our company and expand our products and services."
Other factors that were considered in the rating include:
- Clearly defined business strategy
- Strong regulatory capital ratios supported by stable earnings and excellent liquidity
- Mutual status and ability to focus on serving policyholders and generating strong returns
- Elimination of all debt as of Q1 2018
- Significant market share in the small- to middle-market segment
- Expansion into the high net worth market
For more information, please read the DBRS Media Release.