Equitable reported double-digit growth across core metrics for 2025 and one of the highest capital ratios in the Canadian life sector, as the Waterloo-based mutual moves into the second half of its five-year strategic plan.
The insurer ended the year with a Life Insurance Capital Adequacy Test (LICAT) ratio of 159%, well above the Office of the Superintendent of Financial Institutions' (OSFI) supervisory target of 100% and towards the top end of reported peer levels. The ratio indicates a sizeable capital cushion to absorb shocks and support new business.
Equitable paid $176 million in dividends to participating policyholders in 2025, a 28% increase on 2024, in line with the stronger earnings profile.
“Our growth reflects the trust that our clients place in us,” president and CEO Fabien Jeudy said in a statement, adding that more Canadians are turning to Equitable “to protect their financial security.”
Premiums and deposits rose 27% year‑on‑year to $4.3 billion, with growth across all three business lines: individual insurance, wealth and group benefits. Reported sales included $307 million in insurance, $1.8 billion in investments and $111 million in group benefits.
Assets under administration increased 24% to $12.7 billion, while policyholders’ equity grew 12% to $1.7 billion. Net income came in at $180 million. The company also added $26 million to its Contractual Service Margin under IFRS 17, representing expected future profit from in‑force contracts.
Claims and benefits paid to policyholders reached $1.6 billion, up 19% from the prior year. Return on policyholders’ equity was 11%.
Equitable’s 159% LICAT ratio puts it at the upper end of the Canadian life market. Recent disclosures showed Sun Life Financial finishing 2025 with a LICAT ratio of about 157% at the holding‑company level, Manulife of 136% and Canada Life (Great‑West Lifeco) 128% on a consolidated basis.
Industry observers generally viewed LICAT levels between roughly 130% and 155% as indicative of strong solvency. In that range, Equitable’s position gives it a buffer comparable to, or slightly above, some of the largest listed groups, albeit on a much smaller balance sheet.
On the growth side, the mutual’s 27% increase in premiums and deposits materially exceeds typical market‑wide life premium growth, which has been running in the mid‑single‑digit range in recent years. That suggests Equitable is either gaining share or growing faster in its chosen niches, particularly participating whole‑of‑life and guaranteed investment products.
Equitable continued to expand its guaranteed and digital offerings during 2025. It launched Equitable Guaranteed Investment Funds, a refreshed segregated‑fund range aimed at customers looking for capital protection and estate‑planning features.
The insurer also introduced ExtraBenefits, a digital platform for voluntary benefits intended to streamline employer and employee selection of supplementary cover. For group benefits, Equitable rolled out a Health Digital Dashboard for plan sponsors and members.
These changes sit alongside a broader simplification programme in year three of the current strategy, including new digital forms, tools and transactions for advisers and clients, an updated group benefits dashboard, revised illustrations and digital change forms. The company also launched a new public website.
On the workforce side, Equitable formalized its commitment to paying a living wage in 2025 and obtained Living Wage Champion certification, as part of a wider focus on culture and employee recognition.
In community investment, the company established The Equitable Foundation, funded with a $5 million corporate donation and focused initially on food insecurity. The foundation made initial contributions of $125,000 each to the Cambridge Food Bank and the Food Bank of Waterloo Region, with further support expected.
There were also changes at senior levels. Equitable appointed Eugene Lundrigan as executive vice‑president and chief investment officer, following the retirement of long‑serving CIO Tara Proper after 28 years. On the board, Adrian Basaraba and Douglas MacKenzie joined as directors, while Craig Richardson, Laura Formusa, Les Dakens and Neil Parkinson retired during the year.
Commenting on the outlook, Jeudy said the current five‑year plan is aimed at positioning the 100‑year‑old mutual for its “next 100 years”, with an emphasis on long‑term financial security and stability for policyholders supported by “employees, technology and financial strength.”
