Interview with the Head of Individual Insurance Business at Equitable Life: Martin Reeves
Equitable Life has long been a trusted name in the Canadian insurance landscape. Recently, we had the privilege of sitting down with Martin Reeves, Head of Individual Insurance Business at Equitable Life, following his insightful presentation. Over lunch in a boardroom setting, we delved deeper into what sets Equitable Life apart and how the company’s mutual model benefits policyholders. Here’s a summary of our conversation.
Meet Martin Reeves
Martin Reeves brings a wealth of experience to Equitable Life, having spent 20 years in the insurance industry and the last three and a half years with Equitable. As an actuary, he oversees operations, underwriting, product, and finance teams within the individual insurance line of business. His expertise offers a unique perspective on the trends shaping the insurance world and the inner workings of a mutual company like Equitable Life.
What Makes Equitable Life Different? The Power of the Mutual Model
One of the standout points of our conversation was the mutual structure of Equitable Life. Unlike shareholder-owned companies, Equitable Life is owned by its policyholders. According to Reeves, this creates a powerful alignment of interests:
"We have no shareholders. All of our focus and energy goes into maximizing value for our policyholders," he explained.
Without the need to carve out profits for shareholders, the company can dedicate its resources to better serving its clients. Decisions in the boardroom are guided by a singular priority: doing what’s right for policyholders.
This unique alignment makes Equitable Life one of the few mutual insurance companies in Canada, and it provides a distinct advantage, especially in products like participating (PAR) life insurance. Reeves highlighted that in the absence of shareholders, policyholders effectively "own the performance of the PAR account," ensuring dividends and profits benefit them directly.
Life Expectancy and Its Impact on Policyholders
As an actuary, Reeves has a keen understanding of how life expectancy trends impact the insurance industry. Over the past century, life expectancy has been steadily increasing due to medical advances and healthier lifestyles. While environmental concerns might pose challenges, the consensus remains optimistic.
Reeves noted that this increase benefits PAR policyholders at Equitable Life. Longer life expectancy means policyholders pay premiums longer, delay death benefit payouts, and enjoy greater investment returns. All these factors contribute to the financial health of the PAR account, translating into higher dividends for policyholders.
Interestingly, Equitable Life does not currently price in anticipated life expectancy increases, unlike some competitors. This means any positive trends in life expectancy represent a direct benefit for policyholders. Reeves emphasized:
"If life expectancy does increase, that directly benefits the participating policyholders. All that value goes back to them in the form of dividends."
The Role of Non-Participating Insurance
Another unique feature of Equitable Life is how profits from non-participating (non-PAR) insurance products are handled. Reeves explained:
"The profits from our non-par accounts belong to the par surplus, which is owned by the par policyholders."
While these profits are not directly distributed as dividends, they are reinvested to enhance services, digital tools, and overall organizational strength. This ensures that every dollar of profit contributes to creating a better experience for policyholders, rather than being distributed to external shareholders.
Looking Ahead
Our conversation with Martin Reeves provided a clear understanding of what makes Equitable Life unique in a competitive industry. Its mutual model ensures policyholders' interests remain at the forefront, while trends like increasing life expectancy promise continued value for those who hold policies with the company.
Reeves’ insights also highlighted Equitable Life’s commitment to innovation and service enhancement, making it a compelling choice for Canadians seeking life insurance.
We thank Martin Reeves for sharing his expertise and giving us a closer look at Equitable Life's philosophy and operations. For policyholders and industry professionals alike, it’s reassuring to know the company remains steadfastly focused on maximizing client value in every decision it makes.
Contact Us
At Safe Pacific Financial, we specialize in helping Canadian business owners, incorporated professionals, and investors structure life insurance for maximum wealth protection, tax savings, and business growth.
If you would like to discuss whole life insurance or investments, we’re happy to chat and see if we can be a good fit to work with you. Fill out our contact form and we will get back to you within 24 hours on business days.
Related Insights
Wealth and Legacy: A Deep Dive with Vince Cardella
In this episode of The Wealth Multiplier Podcast, host Laurent Munier of Safe Pacific Financial sits down with Vince Cardella, Principal of Strategic Wealth Planning...
RRSPs for Canadian Business Owners, should you invest?
You have two main options: keep the funds inside the corporation or withdraw and invest personally. Today we’re going to go through these 2 scenarios...
Leveraging Your Whole Life Insurance Policy as Collateral for Loans in Canada
When it comes to building financial security and achieving your goals, creativity and strategy are essential. Today, we’re exploring a powerful tool that can open...
The 6 Essential Principles of the Infinite Banking Concept Explained
Here’s what you aren’t understanding about Infinite Banking. Building anything of lasting value begins with a solid foundation—the basics. While Infinite Banking may seem like...
The Capital Dividend Account: A Comprehensive Guide for Business Owners
Why does it exist, and how does it work? Let’s break down the essentials of this game-changing tax provision called the CDA We at Safe...
Merry Christmas – Safe Pacific 2024 Highlights
We’ve been advising Canadians about life insurance and their personal finances for over a decade, almost 15 years now. But today’s video is a little...
Christmas Party 2024 Photo Gallery
Thanks to all who came out to celebrate the season at our annual Christmas Party. We hope you all enjoyed the festivities at The Vancouver...
Interview with the Head of Individual Insurance Business at Equitable Life: Martin Reeves
Equitable Life has long been a trusted name in the Canadian insurance landscape. Recently, we had the privilege of sitting down with Martin Reeves, Head...
The Infinite Banking Strategy for Canadian Business Owners: How It Works and Why It’s Effective
Growth has rocketed especially since the federal government has been increasing taxes on everything – especially you and me, the greedy business owners who make...
Top 5 Ways Infinite Banking Benefits Canadians
Now, this isn’t just some financial theory for us. I've been using this strategy personally and we’ve been setting it up for our clients for...
Are TFSAs good for small business owners?
One of the main tax advantaged accounts you can use in Canada is the TFSA – Tax Free Savings Account. This is one of our...
Family Office vs. Multi-Family Office: Key Differences, Benefits, and Which is Right for You
Now obviously, every family office is going to be different from family to family, however there is an important distinction between a single-family office and...
