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

E-L Financial Corporation Limited

November 03, 2009 16:13 ET

E-L Financial Corporation Limited Announces September 30, 2009 Interim Financial Results

TORONTO, ONTARIO--(Marketwire - Nov. 3, 2009) - 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 September 30, 2009, it incurred a net operating loss(1) of $23.7 million or $7.89 per share compared with net operating income of $49.5 million or $14.13 per share in 2008. On a year to date basis, E-L Financial earned net operating income of $15.2 million or $2.30 per share compared with $82.9 million or $22.64 per share in 2008.

The net loss for the quarter was $130.8 million or $40.17 per share compared with a net loss of $25.1 million or $8.30 per share for the comparable period last year. Corporate Investment's net loss for the quarter increased $25 million from the comparable quarter in 2008 mainly due to an $80.1 million after tax impairment write down on available for sale investments partially offset by a reduction in the loss generated from the equity method investments. The Life Insurance operation experienced a decrease in net income compared with the same period in 2008 primarily due to the combined impact of a $8.1 million after tax impairment write down on available for sale investments that was taken during the third quarter of 2009 and a reserve release that improved net income by $11.9 million in the third quarter of 2008. The General Insurance operation reported a decrease in earnings across all lines of business due to deterioration in underwriting results.

On a year to date basis, E-L Financial had a net loss of $190.6 million or $59.67 per share compared with a net loss of $7.8 million or $4.62 per share in 2008. Corporate Investment's net loss for the nine months decreased $10 million from the comparable period in 2008 mainly due to the combined impact of the third quarter impairment write downs on available for sale investments and a reduction in the loss generated from the equity method investments. The Life Insurance operation experienced an increase in year to date earnings due to the favorable impact in the first quarter of amendments to the Income Tax Act related to Financial Instruments and the improvement in claims results in Employee Benefits which was partially offset by the third quarter impairment write downs. The General Insurance operation incurred a loss in 2009 mainly due to a net realized loss on the sale of investments and deterioration in underwriting results.



Nine months ended September 30, 2009
(thousands of dollars)
---------------------------------------------
Corporate General Life
Investments Insurance Insurance Total
----------- --------- ----------- -----------
Revenue $ (91,446) $ 707,628 $ 1,024,380 $ 1,640,562
----------- --------- ----------- -----------
----------- --------- ----------- -----------
Net income (loss):
Operating income (loss) $ 8,479 $ (42,799) $ 49,489 $ 15,169
Net realized loss on available
for sale investments including
impairment write downs (79,996) (111,810) (9,809) (201,615)
Loss from equity method
investments (4,183) -- -- (4,183)
----------- --------- ----------- -----------
$ (75,700)$ (154,609) $ 39,680 $ (190,629)
----------- --------- ----------- -----------
----------- --------- ----------- -----------


Nine months ended September 30, 2008
(thousands of dollars)
---------------------------------------------
---------------------------------------------
Corporate General Life
Investments Insurance Insurance Total
----------- --------- ----------- -----------
----------- --------- ----------- -----------
Revenue $ (100,366) $ 845,419 $ 483,882 $ 1,228,935
----------- --------- ----------- -----------
----------- --------- ----------- -----------
Net income (loss):
Operating income $ 10,625 $ 35,230 $ 37,011 $ 82,866
Net realized (loss) gain on
available for sale
investments including
impairment write downs (35,558) 7,269 (1,167) (29,456)
Loss from equity method
investments (61,244) -- -- (61,244)
----------- --------- ----------- -----------
----------- --------- ----------- -----------
$ (86,177) $ 42,499 $ 35,844 $ (7,834)
----------- --------- ----------- -----------
----------- --------- ----------- -----------


(1)Use of non-GAAP measures

"net operating income (loss)" is net income excluding net realized (loss) gain on available for sale investments including impairment write downs and income (loss) from the equity method investments, 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)