E-L Financial Corporation Limited Announces June 30, 2010 Interim Financial Results
August 05 2010 - 2:51PM
Marketwired Canada
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
June 30, 2010, it earned net operating income(1) of $8.2 million or $1.71 per
share compared with $4.2 million or $0.52 per share for the comparable period in
2009. The Dominion's net operating income for the second quarter of 2010
increased from the prior year due to improved personal property results. Empire
Life's net operating income was lower relative to the second quarter of last
year as 2009 included strong earnings from locking in favourable future
investment returns.
On a year to date basis, E-L Financial earned consolidated net operating income
of $22.2 million or $5.19 per share compared with $38.7 million or $10.12 per
share for the comparable period in 2009. Net operating income for the prior
period 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 (Canada) related to Financial Instruments. The Dominion's net operating
income for the first six months of 2010 increased from the prior year due to
lower weather-related property losses and rate increases in personal property.
Net income (loss)
For the second quarter of 2010 E-L Financial had a consolidated net loss of
$21.5 million or $7.26 per share compared with net income of $73.8 million or
$21.46 per share for the second quarter of 2009. The net loss for the quarter
was mainly attributable to equity method investments that reported an after-tax
loss of $25.4 million compared with after- tax income of $38.0 million in 2009.
On a year to date basis, E-L Financial had a consolidated net income of $2.6
million resulting in a loss of $0.72 per share compared with a net loss of $60.0
million or $19.56 per share for the comparable period in 2009. The net loss for
the first six months of 2009 was largely due to a $113.6 million after-tax loss
on available for sale investments held by The Dominion.
Comprehensive income (loss)
For the second quarter of 2010, E-L Financial had a consolidated comprehensive
loss of $34.7 million or $11.26 per share compared with comprehensive income of
$198.7 million or $59.03 per share for the comparable period in 2009. Other
comprehensive loss ("OCL") for the second quarter was $13.2 million or $4.00 per
share compared to other comprehensive income ("OCI") of $124.9 million or $37.57
per share for 2009. OCL for the period reflects the decline in equity markets
during the quarter compared with the strong rebound in equity markets during the
second quarter of 2009.
On a year to date basis, E-L Financial had a consolidated comprehensive loss of
$13.5 million or $5.59 per share compared with comprehensive income of $273.3
million or $80.71 per share for the comparable period in 2009. On a year to date
basis, consolidated OCL was $16.1 million or $4.87 per share compared with OCI
of $333.3 million or $100.27 for the prior year. OCI for 2009 was significantly
impacted by the $113.6 million in after-tax losses being reclassified from
accumulated other comprehensive income to the consolidated income statements.
CONSOLIDATED SUMMARY OF COMPREHENSIVE INCOME (LOSS)
For the period ended June 30
----------------------------------------------------------------------------
For the three months ended
June 30, 2010
-----------------------------------------------
Corporate The Empire
(thousands of dollars) Investments Dominion Life Total
----------------------------------------------------------------------------
Net operating income (loss) $ (1,191) $ 4,288 $ 5,070 $ 8,167
Realized loss on available
for sale investments
including
impairment write downs (1,148) (666 ) (2,387) (4,201)
Loss from equity method
investments (25,451) - - (25,451)
----------------------------------------------------------------------------
Net income (loss) (27,790) 3,622 2,683 (21,485)
Other comprehensive income
(loss) 4,452 (11,651) (6,008) (13,207)
----------------------------------------------------------------------------
Comprehensive loss $ (23,338) $ (8,029) $ (3,325) $ (34,692)
-------------------------------=============================================
----------------------------------------------------------------------------
For the three months ended
June 30, 2009
-----------------------------------------------
Corporate The Empire
(thousands of dollars) Investments Dominion Life Total
----------------------------------------------------------------------------
Net operating income (loss) $ 5,679 $ (13,052) $ 11,613 $ 4,240
Realized gain (loss) on
available
for sale investments
including
impairment write downs (4,854) 36,637 (179) 31,604
Income from equity method
investments 37,991 - - 37,991
----------------------------------------------------------------------------
Net income 38,816 23,585 11,434 73,835
Other comprehensive income 43,575 50,754 30,541 124,870
----------------------------------------------------------------------------
Comprehensive income $ 82,391 $ 74,339 $ 41,975 $ 198,705
-----------------------------===============================================
CONSOLIDATED SUMMARY OF COMPREHENSIVE INCOME (LOSS)
For the period ended June 30
----------------------------------------------------------------------------
For the six months ended June 30, 2010
-----------------------------------------------
Corporate The Empire
(thousands of dollars) Investments Dominion Life Total
----------------------------------------------------------------------------
Net operating income $ 236 $ 15,791 $ 6,176 $ 22,203
Realized gain (loss) on
available
for sale investments
including
impairment write downs (1,172) (407) 8,813 7,234
Loss from equity method
investments (26,834) - - (26,834)
----------------------------------------------------------------------------
Net income (loss) (27,770) 15,384 14,989 2,603
Other comprehensive income
(loss) 3,113 (5,047) (14,184) (16,118)
----------------------------------------------------------------------------
Comprehensive income (loss) $ (24,657) $ 10,337 $ 805 $ (13,515)
-----------------------------===============================================
----------------------------------------------------------------------------
For the six months ended June 30, 2009
-----------------------------------------------
Corporate The Empire
(thousands of dollars) Investments Dominion Life Total
----------------------------------------------------------------------------
Net operating income (loss) $ 7,593 $ (11,185) $ 42,251 $ 38,659
Realized loss on available
for sale investments
including
impairment write downs (12) (113,566) (1,985) (115,563)
Income from equity method
investments 16,927 - - 16,927
----------------------------------------------------------------------------
Net income (loss) 24,508 (124,751) 40,266 (59,977)
Other comprehensive income 41,326 260,826 31,109 333,261
----------------------------------------------------------------------------
Comprehensive income $ 65,834 $ 136,075 $ 71,375 $ 273,284
-----------------------------===============================================
(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.
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