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

E-L Financial Corporation Limited

August 04, 2009 12:42 ET

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

TORONTO, ONTARIO--(Marketwire - Aug. 4, 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 June 30, 2009, it earned net operating income(1) of $4.3 million or $0.55 per share compared with $39.1 million or $10.97 per share in 2008. On a year to date basis, E-L Financial earned net operating income of $38.8 million or $10.18 per share compared with $33.3 million or $8.51 per share in 2008.

Total net income for the quarter was $73.9 million or $21.50 per share compared with $38.7 million or $10.88 per share for the comparable period last year. Corporate Investment's net income for the quarter increased $34 million from the comparable quarter due to improved stock market performance resulting in Economic Investment Trust Limited, which became an equity method investment during the quarter, and United Corporations Limited increasing in value by $38.0 million, after tax, compared with $2 million in 2008. Life Insurance operations experienced a decrease in net income compared with the same period in 2008 due to lower future investment returns on assets acquired during the second quarter of 2009. The General Insurance operation reported higher realized gains on the sale of investments which offset declines in underwriting results and investment income.

On a year to date basis, E-L Financial had a net loss of $59.8 million or $19.50 per share compared with net income of $17.3 million or $3.68 per share in 2008. Corporate Investment's equity method investments increased in value by $16.9 million, after tax, compared with a decrease of $16.6 million in 2008. The Life Insurance operation experienced an overall increase in year to date earnings mainly due to the favourable impact in the first quarter of amendments to the Income Tax Act related to Financial Instruments. 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.

The following table summarizes the results of the Company's business segments:



Six months ended June 30, 2009
(thousands of dollars)
-----------------------------------------------------------
Corporate General Life
Investments Insurance Insurance Total
----------- --------------- ------------ -------------
Revenue $ 25,024 $ 406,943 $ 634,162 $ 1,066,129
----------- --------------- ------------ -------------
----------- --------------- ------------ -------------
Net income
(loss):
Operating
income
(loss) $ 7,593 $ (10,998) $ 42,251 $ 38,846
Realized loss
on
available
for sale
investments (12) (113,566) (1,985) (115,563)
Income from
equity
method
investment 16,927 - - 16,927
----------- --------------- ------------ -------------
$ 24,508 $ (124,564) $ 40,266 $ (59,790)
----------- --------------- ------------ -------------
----------- --------------- ------------ -------------


Six months ended June 30, 2008
(thousands of dollars)
-----------------------------------------------------------
Corporate General Life
Investments Insurance Insurance Total
----------- --------------- ------------ -------------
Revenue $ (11,679) $ 561,750 $ 413,272 $ 963,343
----------- --------------- ------------ -------------
----------- --------------- ------------ -------------
Net income
(loss):
Operating
income $ 9,150 $ 9,618 $ 14,575 $ 33,343
Realized (loss)
gain on
available for
sale
investments (3,754) 5,148 (842) 552
Loss from
equity
method
investment (16,612) - - (16,612)
----------- --------------- ------------ -------------
$ (11,216) $ 14,766 $ 13,733 $ 17,283
----------- --------------- ------------ -------------
----------- --------------- ------------ -------------


(1)Use of non-GAAP measures

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