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

E-L Financial Corporation Limited

August 05, 2008 15:03 ET

E-L Financial Corporation Limited Announces June 30, 2008 Interim Financial Results

TORONTO, ONTARIO--(Marketwire - Aug. 5, 2008) - E-L Financial Corporation Limited ("E-L Financial") (TSX:ELF) (TSX:ELF.PR.F) (TSX:ELF.PR.G) today reported that for the quarter ended June 30, 2008, it earned net operating income(1) of $39.1 million or $11.00 per share compared with $37.5 million or $10.51 per share for the comparable period last year. On a year to date basis, E-L Financial earned net operating income of $33.5 million or $8.56 per share compared with $47.8 million or $12.84 per share in 2007.

Total net income for the quarter was $38.8 million or $10.91 per share compared with $53.4 million or $15.30 per share for the comparable period last year. On a year to date basis, E-L Financial earned net income of $17.5 million or $3.74 per share compared with $84.0 million or $23.73 per share in 2007.

Each of the segments was negatively impacted by the decline in global stock markets, as realized gains on available for sale investments, after tax, decreased from $29.1 million in the first six months of 2007 to $0.5 million for the first six months of 2008. Corporate Investment's equity method investment, United Corporations Limited, decreased in value by $16.6 million, after tax, compared to an increase of $7.1 million for the same period last year due to negative global stock markets. The increase in net operating income in the Life Insurance segment was primarily due to improved investment spreads in both the Wealth Management and Individual Insurance lines. The decline in net operating income for the General Insurance segment was mainly due to changes in the claims discount rates and weather related losses.



Six months ended June 30, 2008
(thousands of dollars)
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Corporate General Life
Investments Insurance Insurance Total
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Revenue $ (11,679) $ 561,750 $ 413,272 $ 963,343
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Net income (loss):
Operating income $ 9,150 $ 9,793 $ 14,575 $ 33,518
Realized gain
(loss) on
available
for sale
investments (3,754) 5,148 (842) 552
Income (loss)
from equity
method investment (16,612) - - (16,612)
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$ (11,216) $ 14,941 $ 13,733 $ 17,458
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Six months ended June 30, 2007
(thousands of dollars)
--------------------------------------------------------------------------
Corporate General Life
Investments Insurance Insurance Total
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Revenue $ 23,645 $ 567,682 $ 336,511 $ 927,838
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Net income:
Operating income $ 9,413 $ 34,923 $ 3,419 $ 47,755
Realized gain on
available for
sale investments 1,788 19,223 8,132 29,143
Income from
equity method
investment 7,117 - - 7,117
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$ 18,318 $ 54,146 $ 11,551 $ 84,015
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(1)Use of non-GAAP measures

"net operating income (loss)" is net income excluding realized gain on available for sale investments and income (loss) from the equity method investment, both net of tax. The term net operating income (loss) does not have any standardized meaning according to GAAP and therefore may not be comparable to similar measures presented by other companies. We believe this measure provides information useful to shareholders in evaluating the Company's results.

Contact Information

  • E-L Financial Corporation Limited
    Mark M. Taylor
    Executive Vice-President and Chief Financial Officer
    (416) 947-2578
    (416) 362-0792 (FAX)