For the first quarter ended
Consolidated comprehensive loss for the first quarter of 2022 was
Today the Board of Directors of E-L Financial declared a quarterly dividend of
E-L Corporate
E-L Corporate reported a net loss of
Empire Life
The Empire Life segment reported net income of
Empire Life's Life Insurance Capital Adequacy Test ("LICAT") total ratio was 142% at
CONSOLIDATED SUMMARY OF NET INCOME
(UNAUDITED)
E-L Financial Consolidated | First quarter | |
(millions of dollars) | 2022 | 2021 |
Contribution to net (loss) income | ||
E-L Corporate1 | $ (274) | $ 310 |
Empire Life2 | 38 | 156 |
Net (loss) income | $ (236) | $ 466 |
E-L Corporate | First quarter | |
(millions of dollars) | 2022 | 2021 |
Revenue | ||
Net (loss) gain on investments3 | $ (462) | $ 230 |
Investment and other income | 26 | 40 |
Share of associates income | 3 | 106 |
(433) | 376 | |
Operating expenses | 10 | 11 |
Income taxes | (59) | 43 |
Non-controlling interests | (110) | 12 |
(159) | 66 | |
Net (loss) income | $ (274) | $ 310 |
Empire Life | First quarter | |
(millions of dollars) | 2022 | 2021 |
Revenue | ||
Net premiums | $ 243 | $ 225 |
Net loss on investments3 | (790) | (636) |
Investment income | 82 | 80 |
Fee income | 69 | 66 |
(396) | (265) | |
Benefits and expenses | (453) | (486) |
Income and other taxes | 16 | 59 |
Non-controlling and participating policyholders' interests | 3 | 6 |
(434) | (421) | |
Net income | $ 38 | $ 156 |
1 Net of non-controlling interests |
2 Net of non-controlling interests and participating policyholders' amounts |
3 Includes fair value change in fair value through profit or loss investments and realized gain on available for sale investments |
Empire Life's Sources of Earnings | ||
(Unaudited) | First quarter | |
(millions of dollars) | 2022 | 2021 |
Expected profit on in-force business | $ 55 | $ 48 |
Impact of new business | (2) | — |
Experience gains (losses) | (1) | 150 |
Management actions and changes in assumptions | 1 | 9 |
Earnings on operations before income taxes | 52 | 208 |
Earnings on surplus | — | 6 |
Income taxes | (11) | (54) |
Non-controlling interests(1) | (3) | (4) |
Net income | $ 38 | $ 156 |
(1) Including preference share dividends |
Non-GAAP Measures
The Company uses non-GAAP measures including net equity value and growth in net equity value per common share to provide investors with 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, assets under management and return on common shareholders' equity to provide investors with supplemental measures of Empire Life's operating 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 interest 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 products and services they need to build wealth, generate income, and achieve financial security. As of
SOURCE
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