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

E-L Financial Corporation Limited

May 05, 2010 11:17 ET

E-L Financial Corporation Limited Announces March 31, 2010 Interim Financial Results

TORONTO, ONTARIO--(Marketwire - May 5, 2010) - 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 March 31, 2010, it earned net operating income1 of $14.0 million or $3.49 per share compared with $34.4 million or $9.60 per share for the comparable period in 2009. The net operating income for the prior year was favourably affected by a $17.7 million income tax adjustment to Empire Life's 2009 net operating income resulting from amendments to the Income Tax Act related to Financial Instruments. The Dominion's net operating income in the first quarter of 2010 increased from the prior year's first quarter due to lower weather-related property losses and rate increases in personal lines.

For the three months ended March 31, 2010, E-L Financial had a consolidated net income of $24.1 million or $6.53 per share compared with a net loss of $133.8 million or $41.02 per share for the first quarter of 2009. The net loss in the first quarter of 2009 was largely due to a $161.7 million after-tax provision for impairment on available for sale investments held by The Dominion. Equity method investments showed improvement for the three months ended March 31, 2010 reporting a loss of $1.4 million after tax compared with an after tax loss of $21.1 million in 2009.

E-L Financial had an other comprehensive loss of $2.9 million during the first three months of 2010 compared to income of $208.4 million in 2009. Other comprehensive income for 2009 was significantly impacted by the $161.7 million in impairment losses being reclassified from accumulated other comprehensive income to the consolidated income statements. For the three months ended March 31, 2010, E-L Financial earned comprehensive income of $21.2 million or $5.65 per share compared with $74.6 million or $21.69 per share in 2009.

1Use of non-GAAP measures

"net operating income (loss)" 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 (loss) 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 period ended March 31
(thousands of dollars)
 
  For the three months ended March 31, 2010  
  Corporate     The   Empire        
  Investments     Dominion   Life     Total  
Revenue $ 1,364   $ 312,363 $ 366,621   $ 680,348  
Net operating income $ 1,427   $ 11,503 $ 1,107   $ 14,037  
Realized gain (loss) on available for sale investments including impairment write downs   (24 )   259   11,199     11,434  
Loss from equity method investments   (1,383 )         (1,383 )
Net income   20     11,762   12,306     24,088  
Other comprehensive income (loss)   (1,339 )   6,604   (8,176 )   (2,911 )
Comprehensive income (loss) $ (1,319 ) $ 18,366 $ 4,130   $ 21,177  
   

 

    For the three months ended March 31, 2009    
  Corporate   The     Empire        
  Investments   Dominion     Life     Total  
Revenue $ (11,961 ) $ 62,906   $ 238,922   $ 289,867  
Net operating income $ 1,914   $ 1,867   $ 30,638   $ 34,419  
Realized gain (loss) on available for sale investments including impairment write downs   4,842     (150,203 )   (1,806 )   (147,167 )
Loss from equity method investment   (21,064 )           (21,064 )
Net income (loss)   (14,308 )   (148,336 )   28,832     (133,812 )
Other comprehensive income (loss)   (2,249 )   210,072     568     208,391  
Comprehensive income (loss) $ (16,557 ) $ 61,736   $ 29,400   $ 74,579  

Contact Information

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