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.
Contacts: E-L Financial Corporation Limited Mark M. Taylor
Executive Vice-President and Chief Financial Officer (416) 947-2578
(416) 362-0792 (FAX)
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