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

E-L Financial Corporation Limited

May 13, 2014 11:06 ET

E-L Financial Corporation Limited Announces March 31, 2014 Interim Financial Results

TORONTO, ONTARIO--(Marketwired - May 13, 2014) - E-L Financial Corporation Limited ("E-L Financial") (TSX:ELF)(TSX:ELF.PR.F)(TSX: ELF.PR.G)(TSX: ELF.PR.H) today reported for the quarter ended March 31, 2014, consolidated net operating income1 of $23.8 million or $5.06 per share2 for the first three months of 2014 compared with $13.4 million or $2.42 per share in 2013.

The $10.4 million increase in net operating income in 2014 versus 2013 is principally due to increased dividend income in E-L Corporate resulting from the additional $650 million capital employed from the sale of the general insurance operation (The Dominion), as well as the life insurance operation's (Empire Life) growth in segregated fund fees due to strong segregated fund sales combined with the positive impact of favourable stock market conditions on management fees earned.

Net income

E-L Financial earned consolidated net income of $104.8 million or $25.69 per share for the first three months of 2014 compared with $146.0 million or $36.20 per share in 2013.

The $41.2 million decline in net income is primarily due to an $83.6 million increase in E-L Corporate fair value through profit or loss investments compared to $113.6 million in 2013 resulting from stronger markets during the first quarter of 2013 compared to 2014.

Comprehensive income

E-L Financial earned consolidated comprehensive income of $123.2 million or $30.40 per share for the first three months of 2014 compared to $197.5 million or $49.30 per share in 2013. Consolidated other comprehensive income ("OCI") was $18.5 million or $4.71 per share compared with $51.4 million or $13.20 per share in 2013. The decrease in OCI for the quarter is primarily due to $33.6 million in income in 2013 from discontinued operations.

E-L Financial's net equity value per Common Share1 at March 31, 2014 was $902.34.

CONSOLIDATED SUMMARY OF COMPREHENSIVE INCOME

March 31, 2014
(thousands of dollars) E-L Corporate Empire Life Total
Net operating income $ 10,813 $ 12,939 $ 23,752
Realized gain on available for sale investments including impairment write downs 1,140 1,223 2,363
Share of loss of associates (4,941 ) - (4,941 )
E-L Corporate's fair value change in fair value through profit or loss investments 83,587 83,587
Net income 90,599 14,162 104,761
Other comprehensive income ("OCI") 9,501 8,985 18,486
Comprehensive income $ 100,100 $ 23,147 $ 123,247

CONSOLIDATED SUMMARY OF COMPREHENSIVE INCOME (continued)

March 31, 2013
(thousands of dollars) E-L Corporate Empire Life Total
Net operating income $ 5,426 $ 7,948 $ 13,374
Realized gain on available for sale investments including impairment write downs 2,286 219 2,505
Share of income of associates 2,803 - 2,803
E-L Corporate's fair value change in fair value through profit or loss investments 113,611 113,611
Net income from continuing operations 124,126 8,167 132,293
Net income from discontinued operations 13,745
Net income 124,126 8,167 146,038
OCI from continuing operations 13,137 4,673 17,810
OCI from discontinued operations 33,628
Total OCI 13,137 4,673 51,438
Comprehensive income $ 137,263 $ 12,840 $ 197,476

1 Use of non-GAAP measures:

"net operating income" is net income from continuing operations excluding realized gain on available for sale investments including impairment write downs, the Company's share of income from associates and the fair value change in fair value through profit or loss investments in the E-L Corporate portfolio, 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.

"net equity value per Common share" provides an indication of the accumulated shareholder value, adjusting shareholders' equity to reflect investments in associates at fair value, net of tax, as opposed to their carrying value.

2 All earnings per share figures are net of dividends paid on First Preference shares.

Contact Information

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