E-L Financial Corporation Limited
TSX : ELF
TSX : ELF.PR.F
TSX : ELF.PR.G

E-L Financial Corporation Limited

March 08, 2010 15:56 ET

E-L Financial Corporation Limited Announces December 31, 2009 Year End Financial Results

TORONTO, ONTARIO--(Marketwire - March 8, 2010) - E-L Financial Corporation Limited (TSX:ELF)(TSX:ELF.PR.F)(TSX:ELF.PR.G) reported for the year ended December 31, 2009, consolidated net operating income1 of $45.3 million or $10.62 per share compared with $111.3 million or $30.43 per share in 2008.

The decrease in consolidated net operating income is the result of a deterioration in the underwriting results at The Dominion of Canada General Insurance Company, mainly due to the impact of changes in the claims discount rate and an increase in automobile accident benefit claims costs. Net operating income for The Empire Life Insurance Company remained relatively unchanged, however each year was impacted by large non- recurring items; in 2009, the favourable impact of tax amendment for financial instruments, and in 2008 a net release of policy liabilities related to both an updated approach for establishing the insurance mortality assumption and updated guidance regarding the calculation of the discounted future tax liability under financial instrument accounting rules.

For the year a consolidated net loss of $184.5 million or $58.64 per share was reported compared with a net loss of $127.3 million or $41.30 per share in 2008.

In addition to the decrease in consolidated net operating income in 2009, after tax impairment write downs on available for sale investments increased to $133.5 million in 2009 from $29.4 million in 2008, resulting in realized losses and write downs on available for sale investments of $242.3 million in 2009, up from $132.5 million in 2008. Over the same period, E-L Financial recognized an improvement in the results from its equity method investments, from a loss of $106.1 million in 2008 to income in 2009 of $12.5 million.

E-L Financial earned other comprehensive income of $434.4 million in 2009 compared to a loss of $343.3 million in 2008, resulting in consolidated comprehensive income of $249.9 million or $72.28 per share compared to a loss of $470.6 million or $144.52 per share in 2008.

Use of non-GAAP measures
1"net operating income" is net income excluding realized gain (loss) on available for sale investments including impairment write-downs and income (loss) from equity method investments, all net of tax. The term net operating income does not have any standardized meaning according to GAAP and therefore may not be comparable to similar measures presented by other companies.

E-L FINANCIAL CORPORATION LIMITED          
 
CONSOLIDATED SUMMARY OF REVENUE AND COMPREHENSIVE INCOME        
For the years ended December 31              
(thousands of dollars)              
  Year ended December 31, 2009
  Corporate   The   Empire    
  Investments   Dominion   Life   Total
Revenue $ (95,884)   $ 1,027,166   $ 1,222,224   $ 2,153,506
                       
  Net operating income (loss) $ 20,135   $ (37,427)   $ 62,590   $ 45,298
  Realized loss on available                      
    for sale investments including                      
    impairment write downs   (108,371)     (114,177)     (19,740)     (242,288)
  Income from equity                      
    method investments   12,455             12,455
  Net income (loss) $ (75,781)   $ (151,604)   $ 42,850   $ (184,535)
  Other comprehensive income   57,835     302,071     74,505     434,411
  Comprehensive income (loss) $ (17,946)   $ 150,467   $ 117,355   $ 249,876
 
  Year ended December 31, 2008
    Corporate     The     Empire      
    Investments     Dominion     Life     Total
Revenue $ (181,219)   $ 1,092,989   $ 688,378   $ 1,600,148
                       
  Net operating income $ 17,918   $ 28,276   $ 65,060   $ 111,254
  Realized loss on available                      
    for sale investments including                      
    impairment write downs   (73,264)     (32,655)     (26,537)     (132,456)
  Loss from equity method                      
    investment   (106,111)             (106,111)
  Net income (loss) $ (161,457)   $ (4,379)     38,523   $ (127,313)
  Other comprehensive income   (49,203)     (215,029)     (79,040)     (343,272)
  Comprehensive loss $ (210,660)   $ (219,408)   $ (40,517)   $ (470,585)

Contact Information

  • E-L Financial Corporation Limited
    Mark M. Taylor
    Executive Vice-President and Chief Financial Officer
    (416) 947-2578
    (416) 362-2592 (FAX)