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Press release from Marketwire

E-L Financial Corporation Limited Announces September 30, 2010 Interim Financial Results

Thursday, November 04, 2010

E-L Financial Corporation Limited Announces September 30, 2010 Interim Financial Results15:19 EDT Thursday, November 04, 2010TORONTO, ONTARIO--(Marketwire - Nov. 4, 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 September 30, 2010, it earned net operating income1 of $23.0 million or $6.20 per share compared with a loss of $23.9 million or $7.96 per share for the comparable period in 2009. This improvement was a result of The Dominion's net operating income for the third quarter of 2010 increasing from the prior year due to lower expenses for weather related property claims, earned rate increases and favourable prior year development versus unfavourable prior year development in the third quarter of 2009. In addition, Corporate Investment's net operating income showed significant improvement this quarter compared with the prior year as strong positive returns in equity markets resulted in unrealized gains on held for trading investments.On a year to date basis, E-L Financial earned consolidated net operating income of $45.2 million or $11.38 per share compared with $14.8 million or $2.17 per share for the comparable period in 2009. The increase in the year to date earnings is mainly a result of the improvement in The Dominion's net operating income as discussed above. Net operating income for Empire Life was lower in 2010 compared to the prior year, as 2009 was favourably affected by a $17.7 million income tax adjustment resulting from amendments to the Income Tax Act (Canada) related to Financial Instruments.Net income (loss)For the third quarter of 2010, E-L Financial had a consolidated net income of $57.7 million or $16.70 per share compared with net loss of $130.9 million or $40.20 per share for the third quarter of 2009. The net income for the quarter was mainly attributable to equity method investments that reported after-tax income of $34.7 million compared with an after-tax loss of $21.1 million in 2009. The net loss for the third quarter of 2009 was mainly due to after-tax impairment write downs of $143.2 million on available for sale investments and equity method investments.On a year to date basis, E-L Financial had a consolidated net income of $60.3 million or $15.93 per share compared with a net loss of $190.9 million or $59.76 per share for the comparable period in 2009. The net loss for the first nine months of 2009 was largely due to a net realized loss on the sale of investments combined with third quarter impairment write downs.Comprehensive income (loss)For the third quarter of 2010, E-L Financial had a consolidated comprehensive income of $109.7 million or $32.45 per share compared with comprehensive loss of $49.1 million or $15.55 per share for the comparable period in 2009. Other comprehensive income ("OCI") for the third quarter was $52.0 million or $15.75 per share compared to $81.8 million or $24.65 per share for 2009. OCI for the period reflects the strong positive returns in the equity markets during the quarter. In 2009 OCI was significantly impacted by $24.2 million in after-tax unrealized losses relating to equity method investments being reclassified from accumulated other comprehensive income ("AOCI") to the consolidated income statements.On a year to date basis, E-L Financial had a consolidated comprehensive income of $96.2 million or $26.78 per share compared with $224.2 million or $65.28 per share for the comparable period in 2009. On a year to date basis, consolidated OCI was $35.9 million or $10.85 per share compared with $415.1 million or $125.04 for the prior year. In 2009 OCI was significantly impacted by a $198.7 million reclassification adjustment resulting from the realized loss on the redemption of common equity investments, as well as unrealized gains from the positive impact of the stock markets recovery.CONSOLIDATED SUMMARY OF COMPREHENSIVE INCOME (LOSS)For the three months ended September 30, 2010(thousands of dollars)Corporate InvestmentsThe DominionEmpire LifeTotalNet operating income (loss)$15,879$(220)$7,351$23,010Realized gain (loss) on available for sale investments including impairment write downs4682,468(2,955)(19)Income from equity method investments34,692--34,692Net income51,0392,2484,39657,683Other comprehensive income4,28128,07019,69652,047Comprehensive income$55,320$30,318$24,092$109,730For the three months ended September 30, 2009(thousands of dollars)Corporate InvestmentsThe DominionEmpire LifeTotalNet operating income (loss)$886$(31,894)$7,113$(23,895)Realized gain (loss) on available for sale investments including impairment write downs(79,984)1,756(7,699)(85,927)Loss from equity method investments(21,110)--(21,110)Net loss(100,208)(30,138)(586)(130,932)Other comprehensive income18,13537,01426,69681,845Comprehensive income (loss)$(82,073)$6,876$26,110$(49,087)For the nine months ended September 30, 2010(thousands of dollars)Corporate InvestmentsThe DominionEmpire LifeTotalNet operating income$16,115$15,571$13,527$45,213Realized gain (loss) on available for sale investments including impairment write downs(704)2,0615,8587,215Income from equity method investments7,858--7,858Net income23,26917,63219,38560,286Other comprehensive income7,39423,0235,51235,929Comprehensive income$30,663$40,655$24,897$96,215For the nine months ended September 30, 2009(thousands of dollars)Corporate InvestmentsThe DominionEmpire LifeTotalNet operating income (loss)$8,479$(43,079)$49,364$14,764Realized loss on available for sale investments including impairment write downs(79,996)(111,810)(9,684)(201,490)Loss from equity method investments(4,183)--(4,183)Net income (loss)(75,700)(154,889)39,680(190,909)Other comprehensive income59,461297,84057,805415,106Comprehensive income (loss)$(16,239)$142,951$97,485$224,1971Use 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.FOR FURTHER INFORMATION PLEASE CONTACT: Mark M. Taylor E-L Financial Corporation Limited Executive Vice-President and Chief Financial Officer (416) 947-2578 (416) 362-0792 (FAX)