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

E-L Financial Corporation Limited

March 03, 2009 15:55 ET

E-L Financial Corporation Limited Announces December 31, 2008 Year End Financial Results

TORONTO, ONTARIO--(Marketwire - March 3, 2009) - E-L Financial Corporation Limited (TSX:ELF) (TSX:ELF.PR.F) (TSX:ELF.PR.G) reported for the year ended December 31, 2008, net operating income(1) of $111.6 million or $30.53 per share compared with $91.7 million or $24.54 per share in 2007.

The Life Insurance segment increase in net operating income was primarily due to the net release of policy liabilities resulting from the annual update of actuarial assumptions. The General Insurance segment reported a decrease in net operating income during the year due to higher underwriting losses resulting from higher weather-related property losses, and deterioration in the Facility Association's automobile insurance results.

For the year a net loss of $127.0 million or $41.20 per share was reported compared with net income of $210.7 million or $60.29 per share in 2007.

For the fourth quarter and the year, net income declined sharply relative to the comparable periods in 2007 as the decline in the global stock markets resulted in realized losses on the sale of investments during 2008 compared to the realized gains that were recorded last year. On an after tax basis, the Company reported a realized loss on available for sale investments of $132.5 million for the year compared with a gain of $133.6 million in the prior year. The Company's equity method investment, United Corporations Limited, decreased in value by $106.1 million after tax, due to negative global stock markets, compared to a decrease of $14.6 million in 2007.

Use of non-GAAP measures

(1) "net operating income" is net income excluding realized gain (loss) on available for sale investments and income (loss) from equity method investment, 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 NET (LOSS) INCOME
For the years ended December 31
(thousands of dollars)

Year ended December 31, 2008
(thousands of dollars)
-------------------------------------------------
Corporate General Life
Investments Insurance Insurance Total
------------ ----------- ---------- ------------
Revenue ($181,219) $ 1,092,989 $ 688,378 $ 1,600,148
------------ ----------- ---------- ------------
------------ ----------- ---------- ------------
Net income (loss):
Operating income $ 17,918 $ 28,626 $ 65,060 $ 111,604
Realized loss on available
for sale investments (73,264) (32,655) (26,537) (132,456)
Loss from equity method
investment (106,111) - - (106,111)
------------ ----------- ---------- ------------
$ (161,457) $ (4,029) $ 38,523 $ (126,963)
------------ ----------- ---------- ------------
------------ ----------- ---------- ------------


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
------------ ----------- ---------- ------------
------------ ----------- ---------- ------------
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
Loss from equity method
investment (14,591) - - (14,591)
------------ ----------- ---------- ------------
$ 22,497 $ 144,589 $ 43,602 $ 210,688
------------ ----------- ---------- ------------
------------ ----------- ---------- ------------


Contact Information

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