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Press release from Marketwire

E-L Financial Corporation Limited Announces March 31, 2012 Interim Financial Results

Thursday, May 10, 2012

E-L Financial Corporation Limited Announces March 31, 2012 Interim Financial Results11:51 EDT Thursday, May 10, 2012TORONTO, ONTARIO--(Marketwire - May 10, 2012) - E-L Financial Corporation Limited ("E-L Financial") (TSX:ELF)(TSX:ELF.PR.F)(TSX:ELF.PR.G)(TSX:ELF.PR.H) today reported that for the quarter ended March 31, 2012, consolidated net operating income1 of $44.9 million or $10.80 per share2 compared with $25.1 million or $5.74 per share in 2011.The $19.8 million increase in net operating income in 2012 versus 2011 is principally attributable to an $11.9 million increase in net operating income for the general insurance operation (The Dominion). The Dominion's increase in net operating income is due mainly to improved automobile claims experience, lower weather-related claims costs for personal and commercial property and lower claims frequency for non-weather-related personal property claims. Net operating income for the life insurance operation (Empire Life) improved $4.0 million primarily due to the favourable impact of higher long-term interest rates on the Individual Insurance product line. Net income E-L Financial earned consolidated net income of $155.7 million or $38.99 per share compared with $50.2 million or $12.11 per share in 2011.In addition to the increase in net operating income described above, 2012 net income was positively impacted by improvements in the global equity markets. Fair value through profit or loss investments held at E-L Corporate increased $70.3 million compared to $6.0 million in 2011. As well, increases in the value of the Company's interest in Economic Investment Trust Limited and United Corporations Limited, partially offset by losses from Algoma Central Corporation, resulted in income from associates of $31.4 million for the first three months of 2012 compared to $7.1 million in 2011. Comprehensive income E-L Financial earned consolidated comprehensive income of $168.6 million or $42.26 per share for the first three months of 2012 compared of $45.8 million or $11.01 per share in 2011. Consolidated other comprehensive income was $12.9 million or $3.27 per share compared with other comprehensive loss of $4.4 million or $1.10 per share in 2011. The improvement in other comprehensive income for the quarter reflected a larger unrealized fair value increase on available for sale investments compared to the prior period."Strong equity markets and improved profitability across all business segments helped us finish the quarter on a high note", said Duncan Jackman, Chairman, President and CEO of E-L Financial.CONSOLIDATED SUMMARY OF COMPREHENSIVE INCOMEPeriod ended March 31, 2012(thousands of dollars)E-L CorporateThe DominionEmpire LifeTotalNet operating income$7,227$25,322$12,393$44,942Realized gain on available for sale investments including impairment write downs5287,0991,4859,112Share of income of associates31,370--31,370E-L Corporate's fair value change in fair value through profit or loss investments70,304--70,304Net income109,42932,42113,878155,728Other comprehensive income (loss)8,4365,401(984)12,853Comprehensive income$117,865$37,822$12,894$168,581Period ended March 31, 2011(thousands of dollars)E-L CorporateThe DominionEmpire LifeTotalNet operating income$3,308$13,389$8,387$25,084Realized gain on available for sale investments including impairment write downs1,1258,0272,77811,930Share of income of associates7,142--7,142--E-L Corporate's fair value change in fair value through profit or loss investments6,018--6,018Net income17,59321,41611,16550,174Other comprehensive (loss) income(2,587)(4,911)3,122(4,376)Comprehensive income$15,006$16,505$14,287$45,7981Use of non-GAAP measures:"net operating income" is net income 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.2All earnings per share figures are net of dividends paid on First Preference shares.FOR FURTHER INFORMATION PLEASE CONTACT: Mark M. TaylorE-L Financial Corporation LimitedExecutive Vice-President and Chief Financial Officer(416) 947-2578(416) 362-2592 (FAX)