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

E-L Financial Corporation Limited

May 05, 2008 11:42 ET

E-L Financial Corporation Limited Announces March 31, 2008 Interim Financial Results

TORONTO, ONTARIO--(Marketwire - May 5, 2008) - 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 March 31, 2008, it incurred a net operating loss(1) of $5.6 million or $2.44 per share compared with net operating income of $10.3 million or $2.33 per share for the comparable period last year.

The total net loss for the quarter was $21.3 million or $7.17 per share compared with net income of $30.6 million or $8.43 per share for the comparable period last year.

Each of the segments was negatively impacted by the decline in global stock markets, as realized gains on available for sale investments, after tax, decreased from $18 million in the first quarter of 2007 compared to $2 million in the first quarter of 2008. Corporate Investment's equity method investment, United Corporations Limited, decreased in value by $19 million, after tax, compared to the same period last year also due to negative global stock markets. In addition, the results in General Insurance were negatively affected by an increase in claims of $15 million, after tax, due to a decrease in the claims discount rate.



Three months ended March 31, 2008
(thousands of dollars)
-----------------------------------------------
Corporate General Life
Investments Insurance Insurance Total
----------- ---------- ----------- ---------
Revenue $ (19,270) $ 281,546 $ 213,864 $ 476,140
----------- ---------- ----------- ---------
----------- ---------- ----------- ---------
Net income (loss):
Operating income (loss) $ 2,863 $ (6,530) $ (1,921) $ (5,588)
Realized gain (loss) on
available for sale
investments (1,464) 3,730 (162) 2,104
Income (loss) from
equity method
investment (17,868) - - (17,868)
----------- ---------- ----------- ---------
$ (16,469) $ (2,800) $ (2,083) $ (21,352)
----------- ---------- ----------- ---------
----------- ---------- ----------- ---------


Three months ended March 31, 2007
(thousands of dollars)
-----------------------------------------------
Corporate General Life
Investments Insurance Insurance Total
----------- ---------- ----------- ---------
Revenue $ 6,170 $ 287,858 $ 219,388 $ 513,416
----------- ---------- ----------- ---------
----------- ---------- ----------- ---------
Net income:
Operating income $ 3,642 $ 5,930 $ 706 $ 10,278
Realized gain on
available for
sale investments 360 12,560 6,416 19,336
Income from equity
method investment 969 - - 969
----------- ---------- ----------- ---------
$ 4,971 $ 18,490 $ 7,122 $ 30,583
----------- ---------- ----------- ---------
----------- ---------- ----------- ---------


(1)Use of non-GAAP measures

"net operating income (loss)" is net income excluding realized gain 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)