Home > Market Activity > Get Quotes > News > News Article

E-L Financial Corporation Limited

Exchange: TSX Exchange | Jul 18, 2019, 8:00 AM EDT

ELF
$ 766.50 real time data Change Up
Change:
6.50 (0.86%)
Volume:
505
Real-time price
Day Low 0.00
Day High 0.00


 Back
,
E-L Financial Corporation Limited Announces March 31, 2019 Financial Results
E-L Financial Corporation Limited Announces March 31, 2019 Financial Results

Canada NewsWire

TORONTO, May 9, 2019 /CNW/ - E-L Financial Corporation Limited ("E-L Financial" or the "Company") (TSX: ELF) (TSX: ELF.PR.F) (TSX: ELF.PR.G) (TSX: ELF.PR.H) today reported a net equity value per common share of $1,382.18 as at March 31, 2019, an increase of 7% from $1,295.65 as at December 31, 2018.

For the first quarter ended March 31, 2019, E-L Financial earned a consolidated shareholders' net income of $309 million, or $77.68 per common share, compared with $66 million, or $15.69 per common share in 2018.

E-L Corporate

E-L Corporate reported a net income of $266 million for the first quarter ended March 31, 2019, compared to $27 million for the comparable period in 2018. The increase in net income is primarily due to higher net gains on investments of $341 million in the first quarter of 2019 compared to $22 million in 2018. E-L Corporate's global investment portfolio had a pre-tax total return of 8% in 2019 compared to a pre-tax total return of 1% in the prior year. Investments in Canada and the U.S. were the largest contributors to the first quarter 2019 investment performance with a positive pre-tax total return of approximately 11%.

Empire Life

For the first quarter ended March 31, 2019, the Empire Life segment reported net income of $43 million compared to $39 million in 2018. The net income for 2019 increased primarily due to higher income from the Individual Insurance, Wealth Management and Capital and Surplus segments, partially offset by lower income from Employee Benefits. Higher net income in the Wealth Management and Individual Insurance product lines were partly due to improved equity markets. Individual insurance also benefited from higher profits on new business, partly offset by losses from declining interest rate yields and unfavourable lapse experience. The Employee Benefits product line had less favourable claims experience compared to the first quarter of 2018.

Empire Life's Life Insurance Capital Adequacy Test ("LICAT") total ratio was 150% at March 31, 2019 compared to 149% at December 31, 2018, well above the requirements set by the Office of the Superintendent of Financial Institutions Canada as well as Empire Life's minimum internal targets.

CONSOLIDATED SUMMARY OF NET INCOME (UNAUDITED)

E-L Financial Consolidated

First quarter

(millions of dollars)

2019

2018




Contribution to net income



E-L Corporate1

$

266

$

27

Empire Life2

43

39

Net income

$

309

$

66

 

E-L Corporate

First quarter

(millions of dollars)

2019

2018




Revenue



Net gain on investments3

$

341

$

22

Investment and other income

30

25

Share of associates income (loss)

3

(2)


374

45




Operating expenses

9

9

Income taxes

49

5

Non-controlling interests

50

4


108

18

Net income

$

266

$

27

 

Empire Life

First quarter

(millions of dollars)

2019

2018




Revenue



Net premiums

$

238

$

211

Net gain (loss) on investments3

412

(80)

Investment and other income

75

67

Fee income

64

66


789

264




Benefits and expenses

728

207

Income and other taxes

17

16

Non-controlling and participating policyholders' interests

1

2


746

225

Net income

$

43

$

39

1 Net of non-controlling interests

2 Net of non-controlling interests and participating policyholders' net income (loss)

3 Includes fair value change on FVTPL investments and realized gains on AFS investments

 

Empire Life's Sources of Earnings

First quarter

(millions of dollars)

2019

2018

Expected profit on in-force business

$

51

$

49

Impact of new business

(2)

(4)

Experience gains

4

4

Management actions and changes in assumptions

(1)

Earnings on operations before income taxes

52

50

Earnings on surplus

8

5

Income taxes

(14)

(12)

Non-controlling interests

(3)

(4)

Net income

$

43

$

39

 

Non-GAAP Measures

The Company uses non-GAAP measures including net equity value per common share to provide investors with supplemental measures of its operating performance that may not otherwise be apparent when relying solely on International Financial Reporting Standards ("IFRS") financial measures. Net equity value per common share provides an indication of the accumulated shareholder value, adjusting shareholders' equity to reflect investments in associates at fair value, net of tax, as opposed to their carrying value.

The Company also uses sources of earnings and assets under management to provide investors with supplemental measures of Empire Life's performance and to highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures. The Company also believes that securities analysts, investors and other interested parties frequently use non-GAAP measures in the evaluation of issuers.

About E-L Financial

E-L Financial operates as an investment and insurance holding company. In managing its operations, E-L Financial distinguishes between two operating segments, E-L Corporate and Empire Life.

E-L Corporate represents investments in stocks and fixed income securities held directly and indirectly through pooled funds, closed-end investment companies and other investment companies. The investment strategy is to accumulate shareholder value through long-term capital appreciation and dividend and income from its investments.

Empire Life is a subsidiary of E-L Financial. Since 1923, Empire Life has provided individual and group life and health insurance, investment and retirement products to Canadians. Empire Life's mission is to make it simple, fast and easy for Canadians to get the investment, insurance and group benefits coverage they need to build wealth, generate income, and achieve financial security. As of March 31, 2019 Empire Life had total assets under management of $18 billion.

SOURCE E-L Financial Corporation Limited

View original content: http://www.newswire.ca/en/releases/archive/May2019/09/c1110.html

Scott F. Ewert, Vice President and Chief Financial Officer, E-L Financial Corporation Limited, Telephone: (416) 947-2578, Fax: (416) 362-0792Copyright CNW Group 2019

Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. View delay times for all exchanges. Market Data powered by QuoteMedia. See the QuoteMedia Terms of Use.