Some of Canada’s largest insurance companies reported stronger 2013 financial results. Here’s an overview.
Equitable Life of Canada realized record earnings of $58.6 million, eclipsing its previous high for net income of $44.7 million in 2012. Return on policyholders’ equity increased significantly to 16.1% in 2013 from 13.5% reported in the previous year. These results were buoyed by strong equity markets and higher interest rates. Diligent expense management as well as good mortality and morbidity experience supported solid earnings from the individual and group lines of business.
Great-West Lifeco reported a 2013 profit of $2.3 billion, compared with $1.8 billion in the previous year. Its Canadian and European businesses posted stronger results, offsetting a decline in earnings at its American operations.
Industrial Alliance Insurance and Financial Services’ net income rose 15% to $349.9 million. The improvement in profit from its individual insurance operations and the continued strong contribution from our less capital-intensive businesses, together with a more favourable macroeconomic environment, enabled the company to deliver a year-over-year growth in earnings.
Manulife Financial Corp. reported net income of $3.1 billion in 2013, up from $1.8 billion in the previous year. Insurance sales were slightly lower than what the company would have liked, but margins were higher. And wealth sales grew for the 21st consecutive quarter to $599 billion.
Sun Life Financial reported net income from continuing operations of $1.7 billion, compared with $1.37 billion in 2012. Strong sales drove a 15% increase in premiums and deposits in 2013 and, along with rising markets, lifted assets under management by $107 billion to $640 billion.