KINGSTON, ONTARIO--(Marketwire - March 28, 2013) - The Empire Life Insurance Company (Empire Life) today released its 2012 year-end financial results. Empire Life achieved a record level of earnings with an overall shareholders' net income of $80.4 million compared to $32.3 million for 2011. Results across all three business lines were positive with strong Capital and Surplus earnings.
The Employee Benefits product line had another strong year, achieving $17.2 million in net income, an increase of $2.1 million over 2011. The net income result of $7.3 million for the Wealth Management business was lower than last year's $16.2 million, due to a strengthening of annuity reserves in 2012, versus reserve releases last year. However strong sales, particularly in segregated funds, saw higher gross and net sales results than 2011. Individual Insurance results were strong at $12.5 million, a positive turnaround from the net loss experienced in this line last year. The increase resulted primarily from 2012's less severe interest rate drop, higher product prices, and favourable improvement in policy liability assumption updates.
"We have been making careful and thoughtful decisions to respond to the challenging business environment our industry faces and we have delivered exceptional results," said Les Herr, President and Chief Executive Officer. "For 90 years now, Empire Life has made its mark by helping Canadians build wealth and protect their financial security. We remain focused on that goal and I am pleased that we were able to provide our customers with more options in 2012 by offering mutual funds through our subsidiary, Empire Life Investments Inc."
- Assets (including segregated fund and mutual fund assets) under management increased 9.5% over 2011 levels to reach $10.8 billion.
- Total premium revenue and fee income increased by 6.8% to reach $0.9 billion.
- Wealth Management Sales increased 55% and Employee Benefit sales increased 9% over 2011 levels, while Individual Insurance experienced slowing sales.
- Shareholders' Capital and Surplus earnings of $35.7 million were up from $34.8 million in 2011.
- Participating policyholder net loss (after the payment of dividends) of $6.6 million was below the net income of $0.8 million in 2011. The earnings decrease primarily related to reserve strengthening in 2012 versus a gain in 2011 related to a change in actuarial method.
The Empire Life Annual General Meeting will take place on Thursday May 2, 2013 in Toronto, Ontario. The management proxy information circular and annual report is being mailed in April to shareholders and participating policyholders who request notice of the meeting. The company's 2012 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.