 |
| Equitable Life of Canada provides life insurance, savings, retirement and group benefits solutions to Canadians. |
Equitable Life of Canada entered 2026 with a stronger financial position after reporting substantial growth across its insurance, savings and group benefits businesses during 2025. The Waterloo, Ontario-based mutual insurer ended the year with $12.7 billion in total assets, up 24% from 2024, while total premiums and deposits rose 27% to $4.3 billion.
The results provide a useful snapshot of a Canadian insurer that operates differently from publicly traded companies. Equitable is a mutual organization, meaning it is not owned by outside shareholders. Its participating policyholders have ownership rights, including voting rights on certain company matters.
A mutual insurer with more than a century of history
Equitable Life began operations in Waterloo in 1920 as The Ontario Equitable Life and Accident Insurance Company. The organization later became The Equitable Life Insurance Company of Canada, and it mutualized in 1963, making participating policyholders owners of the company.
That structure remains central to how the company describes its business today. Without external shareholders seeking quarterly returns, Equitable says it can focus on longer-term strategies and reinvest profits in the organization and its policyholders.
The company's current operations extend beyond traditional life insurance. It works with independent advisors to provide individual insurance, investments, savings and retirement solutions, as well as group benefits.
Stronger numbers behind the 2025 results
Equitable's 2025 financial results showed growth across all three of its principal lines of business.
The insurer reported a 159% LICAT ratio at the end of 2025. The Life Insurance Capital Adequacy Test is a regulatory measure used to assess the capital strength of Canadian federally regulated life insurers. Equitable said the figure was well above the 100% supervisory target cited by the company.
Total assets reached $12.7 billion, compared with $10.2 billion a year earlier. The company's annual report shows that general-fund assets increased to about $7.9 billion, while segregated-fund assets reached approximately $4.8 billion.
For policyholders, these figures matter because insurance companies must maintain sufficient capital and assets to support future claims and contractual obligations.
The product mix covers temporary and lifelong protection
Equitable's individual insurance portfolio is structured around different financial needs rather than a single type of life policy.
Its term insurance provides coverage for defined periods. Current options include 10-year and 20-year terms extending to age 85, as well as a 30-year option extending to age 65. The company describes term insurance as its more affordable form of protection, with minimum coverage starting at $50,000.
Permanent insurance takes a different approach. Equitable offers participating whole life and universal life policies that provide lifetime coverage. Participating whole life policies can build long-term cash value and may receive dividends, while universal life policies provide investment flexibility through a selection of investment options.
The distinction is important for consumers. A person looking primarily to protect income during working years may have a different requirement from someone planning for estate transfer, lifelong coverage or long-term cash accumulation.
Dividends are getting attention in 2026
One of the most closely watched developments for participating policyholders is Equitable's latest dividend scale.
For the period from July 1, 2026, through June 30, 2027, the company has kept the dividend-scale interest rate at 6.40%. The interest rate for participating whole life policies with dividends on deposit remains 3.50%, while the rate for most policy loans remains 6.50%. Equitable expects to pay close to $223 million in dividends during the period.
These payments should not be confused with guaranteed investment returns. Equitable explicitly states that participating policy dividends are not guaranteed and can change depending on factors including investment performance and claims experience.
During 2025, the company paid $176 million in dividends to clients with participating whole life contracts, 28% more than the previous year.
Financial strength is another part of the picture
Equitable's financial ratings provide an independent reference point for consumers considering long-term insurance commitments.
DBRS Morningstar has reaffirmed Equitable Life's Financial Strength Rating and Issuer Rating at A (high) with stable trends. The Financial Strength Rating is intended to assess an insurer's ability to meet obligations to policyholders, including claims, benefits and contractual guarantees.
A rating does not determine whether a particular policy is suitable. Consumers still need to examine premiums, guarantees, exclusions, cash values, surrender provisions and the policy's intended purpose.
A more digital approach to policyholder support
Equitable has also been expanding the services attached to its insurance products. In March 2026, the company introduced complimentary Empathy Loss Support for all individual life insurance policies, providing policyholders' families with digital tools and information to help manage practical issues following a death.
The move reflects a broader change in insurance: the relationship between insurer and customer increasingly extends beyond the policy document itself.
For Equitable Life, the combination of mutual ownership, stronger financial results and an expanding range of digital and insurance services places the company in a distinctive position in Canada's life insurance market. Its 2025 performance shows that the century-old insurer is continuing to grow while retaining the ownership structure that has defined it for more than six decades.
Frequently asked questions
Is Equitable Life of Canada a mutual company?
Yes. Equitable Life is a mutual insurance company and is not owned by external shareholders. Participating policyholders have ownership and voting rights under the company's mutual structure.
What types of life insurance does Equitable offer?
Its current individual insurance portfolio includes term life, participating whole life and universal life insurance.
What was Equitable Life's LICAT ratio at the end of 2025?
Equitable reported a LICAT ratio of 159% at December 31, 2025.
Are Equitable participating life insurance dividends guaranteed?
No. The company states that participating policy dividends are not guaranteed and can change based on factors affecting the participating fund.
How much did Equitable Life have in assets at the end of 2025?
The company's total assets were approximately $12.7 billion at December 31, 2025.
What is Equitable Life's current dividend-scale interest rate?
For July 1, 2026, through June 30, 2027, Equitable has maintained its dividend-scale interest rate at 6.40%.
Is Equitable Life financially rated?
Yes. DBRS Morningstar has reaffirmed Equitable Life's Financial Strength Rating and Issuer Rating at A (high), with stable trends.
.png)
Post a Comment