Empire Life releases 2010 Year-End Financial Results

KINGSTON, ONTARIO--(Marketwire - March 21, 2011) - The Empire Life Insurance Company (Empire Life) reported shareholders' net income of $30.2 million for 2010, compared to $53.8 million for 2009. The company's assets under management increased 10% from 2009 to reach $9.6 billion in 2010. Total revenue increased by 11% to $1.4 billion in 2010.

The decrease in net income was primarily due to the strengthening of policy liabilities in response to the low interest rate environment and its impact on the profitability of the Individual Insurance line, and the $22.2 million positive impact of a favourable non-recurring tax item on net income in 2009. 

"Our 2010 results reflect our steady commitment to growing and supporting our three lines of business, Wealth Management, Employee Benefits and Individual Insurance. As we've seen again this past year, this diversified balanced approach helps us generate consistent revenue and premium income in all economic and market conditions making our company stronger," said Les Herr, President and Chief Executive Officer.

The company generated strong sales in 2010. Individual Insurance sales increased 12% from 2009 to $68.1 million, Wealth Management sales increased 2% from 2009 to $1.0 billion and the Employee Benefits product line had an exceptional year, with sales of $43.0 million, the second highest results ever, and an increase of 20% from 2009.

The company's risk-based capital ratio, as measured by Minimum Continuing Capital and Surplus Requirements (MCCSR), was 243% at the end of the year, well above minimum requirements.

"Our focus on the Canadian marketplace and on providing competitive financial solutions and more personal service to our customers and distribution partners has helped us maintain and build on our position of strength in the industry," said Mr. Herr. "Our strong capital position means that we can meet our future obligations and gives our customers and distribution partners confidence that we are there when they need us."

The Empire Life annual general meeting will be held Wednesday, April 27, 2011 in Toronto, Ontario. The management proxy information circular and annual report is being mailed during the first week of April to shareholders and participating policyholders who request notice of the meeting. The company's 2010 Annual Report is now available for viewing and download at www.empire.ca.

About Empire Life

A subsidiary of E-L Financial Corporation Limited and in business since 1923, Empire Life helps Canadians build wealth and protect their financial security with competitive individual and group life and health insurance, investment and retirement products. The company's vision is to be the leading, independently-owned, Canadian financial services company committed to simplicity, being easy to do business with and having a personal touch.