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

E-L Financial Corporation Limited

March 04, 2008 14:41 ET

E-L Financial Corporation Limited Announces December 31, 2007 Year End Financial Results

TORONTO, ONTARIO--(Marketwire - March 4, 2008) - E-L Financial Corporation Limited (TSX:ELF) (TSX:ELF.PR.F) (TSX:ELF.PR.G) today reported that for the year ended December 31, 2007, it earned net operating income(1) of $91.7 million or $24.54 per share compared with $141.1 million or $40.44 per share in 2006.

Net income for the year was $210.7 million or $60.29 per share compared with $372.5 million or $109.97 per share in 2006.

The reduction in net income is mainly due to the results from the Company's Corporate Investments because, effective January 1, 2007, changes in unrealized appreciation of portfolio investments are not included in net income from Corporate Investments. Net income from Corporate Investments also reflects the loss from the Company's equity method investment. Net income from the General Insurance operation decreased due to lower underwriting results, partly offset by higher investment income and realized gains on investments.

Use of non-GAAP measures

(1)"net operating income" is net income excluding realized gain on available for sale investments, income (loss) from equity method investment, amortization of investment gains, gain on sale of investments, and change in unrealized appreciation of portfolio 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. We believe this measure provides information useful to shareholders in evaluating the Company's results.



E-L FINANCIAL CORPORATION LIMITED

CONSOLIDATED SUMMARY OF REVENUE AND NET INCOME
For the years ended December 31
(thousands of dollars)

Year ended December 31, 2007
(thousands of dollars)
----------------------------------------------------
Corporate General Life
Investments Insurance Insurance Total
----------------------------------------------------
Revenue $ 30,552 $ 1,214,842 $ 917,552 $ 2,162,946
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Net income:
Operating income $ 24,502 $ 45,128 $ 22,087 $ 91,717
Realized gain on
available for
sale investments 12,586 99,461 21,515 133,562
Income (loss) from
equity method
investment (14,591) - - (14,591)
----------------------------------------------------
$ 22,497 $ 144,589 $ 43,602 $ 210,688
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Year ended December 31, 2006
(thousands of dollars)
----------------------------------------------------
Corporate General Life
Investments Insurance Insurance Total
----------------------------------------------------
Revenue $ 223,730 $ 1,174,387 $ 922,677 $ 2,320,794
----------------------------------------------------
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Net income:
Operating income $ 16,943 $ 103,972 $ 20,178 $ 141,093
Amortization of
investment gains - - 25,590 25,590
Gain on sale of
investments 14,229 45,551 - 59,780
Income from equity
method investment 48,874 - - 48,874
Change in unrealized
appreciation of
portfolio
investments 97,183 - - 97,183
----------------------------------------------------
$ 177,229 $ 149,523 $ 45,768 $ 372,520
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Contact Information

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