E-L Financial Corporation Limited Announces December 31, 2010 Year End Financial Results

TORONTO, ONTARIO--(Marketwire - March 8, 2011) - E-L Financial Corporation Limited ("E-L Financial") (TSX:ELF)(TSX:ELF.PR.F)(TSX:ELF.PR.G) reported for the year ended December 31, 2010, consolidated net operating income of $102.8 million or $28.01 per share, compared with $44.9 million or $10.51 per share in 2009. The increase in earnings is mainly a result of the improvement in The Dominion of Canada General Insurance Company's net operating income which reflected minimal impact from changes in claims discount rates in 2010 in contrast to a large expense from decreases in claims discount rates in 2009, lower claims expenses for weather-related property losses, earned rate increases and higher favourable prior year claims development in 2010 than in 2009. Net operating income for The Empire Life Insurance Company was lower in 2010 compared to the prior year, due to the low long-term interest rate environment and its impact on individual insurance business in 2010 and last year's favourable impact of a $17.7 million income tax adjustment resulting from amendments to the Income Tax Act (Canada) related to financial instruments.

Net income (loss)

E-L Financial earned a consolidated net income of $144.7 million or $40.66 per share in 2010 compared with a net loss of $184.9 million or $58.75 per share in 2009. The net loss in 2009 was largely due to a net realized loss on the sale of investments, including impairment write downs, of $242.3 million. In addition to higher operating income and realized gains in 2010, earnings from equity method investments improved in 2010 to $30.5 million compared to $12.5 million in 2009.

Comprehensive income

E-L Financial earned consolidated comprehensive income of $195.3 million or $55.94 per share in 2010 compared with $249.5 million or $72.16 per share for the comparable period in 2009. Consolidated other comprehensive income ("OCI") was $50.6 million or $15.28 per share compared with $434.4 million or $130.91 per share for the prior year. In 2009 OCI was significantly impacted by a $211.8 million reclassification adjustment resulting from the realized loss on the available for sale investments, the reversal of $57.6 million of unrealized losses relating to Algoma Central Corporation and Economic Investment Trust Limited on reclassification as equity method investments and unrealized gains from the positive impact of the stock markets recovery.

"We are very satisfied with 2010's solid results", said Duncan Jackman, Chairman, President and CEO of E-L Financial. "At Empire Life, historically low interest rates resulted in substantial strengthening of our policy liabilities. Despite this challenging environment, sales in all product lines were higher than the previous year. At The Dominion, a better than expected 2010 was largely the result of strong underwriting results in the latter half of the year, we look forward to improved profitability continuing in 2011."