The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from Marketwire

E-L Financial Corporation Limited Announces March 31, 2010 Interim Financial Results

Wednesday, May 05, 2010

E-L Financial Corporation Limited Announces March 31, 2010 Interim Financial Results11:18 EDT Wednesday, May 05, 2010TORONTO, ONTARIO--(Marketwire - May 5, 2010) - 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, 2010, it earned net operating income(1) of $14.0 million or $3.49 per share compared with $34.4 million or $9.60 per share for the comparable period in 2009. The net operating income for the prior year was favourably affected by a $17.7 million income tax adjustment to Empire Life's 2009 net operating income resulting from amendments to the Income Tax Act related to Financial Instruments. The Dominion's net operating income in the first quarter of 2010 increased from the prior year's first quarter due to lower weather-related property losses and rate increases in personal lines.For the three months ended March 31, 2010, E-L Financial had a consolidated net income of $24.1 million or $6.53 per share compared with a net loss of $133.8 million or $41.02 per share for the first quarter of 2009. The net loss in the first quarter of 2009 was largely due to a $161.7 million after-tax provision for impairment on available for sale investments held by The Dominion. Equity method investments showed improvement for the three months ended March 31, 2010 reporting a loss of $1.4 million after tax compared with an after tax loss of $21.1 million in 2009.E-L Financial had an other comprehensive loss of $2.9 million during the first three months of 2010 compared to income of $208.4 million in 2009. Other comprehensive income for 2009 was significantly impacted by the $161.7 million in impairment losses being reclassified from accumulated other comprehensive income to the consolidated income statements. For the three months ended March 31, 2010, E-L Financial earned comprehensive income of $21.2 million or $5.65 per share compared with $74.6 million or $21.69 per share in 2009.(1) Use of non-GAAP measures"net operating income (loss)" is net income excluding realized gain (loss) on available for sale investments including impairment write downs and income (loss) from equity method investments, all 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. E-L FINANCIAL CORPORATION LIMITED CONSOLIDATED SUMMARY OF REVENUE AND COMPREHENSIVE INCOME For the period ended March 31 (thousands of dollars) For the three months ended March 31, 2010 ---------------------------------------------------------------------------- Corporate The Empire Investments Dominion Life Total ---------------------------------------------------------------------------- Revenue $ 1,364 $ 312,363 $ 366,621 $ 680,348 ---------------------------------------------------------------------------- Net operating income $ 1,427 $ 11,503 $ 1,107 $ 14,037 Realized gain (loss) on available for sale investments including impairment write downs (24) 259 11,199 11,434 Loss from equity method investments (1,383) - - (1,383) -------------------------------------------- Net income 20 11,762 12,306 24,088 Other comprehensive income (loss) (1,339) 6,604 (8,176) (2,911) -------------------------------------------- Comprehensive income (loss) $ (1,319) $ 18,366 $ 4,130 $ 21,177 -------------------------------------------- For the three months ended March 31, 2009 ------------------------------------------------ Corporate The Empire Investments Dominion Life Total ------------------------------------------------ Revenue $ (11,961) $ 62,906 $ 238,922 $ 289,867 ------------------------------------------------ Net operating income $ 1,914 $ 1,867 $ 30,638 $ 34,419 Realized gain (loss) on available for sale investments including impairment write downs 4,842 (150,203) (1,806) (147,167) Loss from equity method investment (21,064) - - (21,064) ------------------------------------------------ Net income (loss) (14,308) (148,336) 28,832 (133,812) Other comprehensive income (loss) (2,249) 210,072 568 208,391 ------------------------------------------------ Comprehensive income (loss) $ (16,557) $ 61,736 $ 29,400 $ 74,579 ------------------------------------------------ FOR FURTHER INFORMATION PLEASE CONTACT: E-L Financial Corporation Limited Mark M. Taylor Executive Vice-President and Chief Financial Officer (416) 947-2578 (416) 362-0792 (FAX)