E-L Financial Corporation Limited Announces March 31, 2012 Interim Financial Results
May 10 2012 - 11:51AM
Marketwired Canada
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 income(1) of $44.9
million or $10.80 per share(2) 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 INCOME
----------------------------------------------------------------------------
Period ended March 31, 2012
------------------------------------------------------
E-L The
(thousands of dollars) Corporate Dominion Empire Life Total
----------------------------------------------------------------------------
Net operating income $ 7,227 $ 25,322 $ 12,393 $ 44,942
Realized gain on
available for sale
investments including
impairment write
downs 528 7,099 1,485 9,112
Share of income of
associates 31,370 - - 31,370
E-L Corporate's fair
value change in fair
value through profit
or loss investments 70,304 - - 70,304
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Net income 109,429 32,421 13,878 155,728
Other comprehensive
income (loss) 8,436 5,401 (984) 12,853
----------------------------------------------------------------------------
Comprehensive income $ 117,865 $ 37,822 $ 12,894 $ 168,581
----------------------======================================================
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Period ended March 31, 2011
------------------------------------------------------
E-L The
(thousands of dollars) Corporate Dominion Empire Life Total
------------------------------------------------------
Net operating income $ 3,308 $ 13,389 $ 8,387 $ 25,084
Realized gain on
available for sale
investments including
impairment write
downs 1,125 8,027 2,778 11,930
Share of income of
associates 7,142 - - 7,142
- -
E-L Corporate's fair
value change in fair
value through profit
or loss investments 6,018 - - 6,018
------------------------------------------------------
Net income 17,593 21,416 11,165 50,174
Other comprehensive
(loss) income (2,587) (4,911) 3,122 (4,376)
------------------------------------------------------
Comprehensive income $ 15,006 $ 16,505 $ 14,287 $ 45,798
----------------------======================================================
(1)Use 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.
(2)All earnings per share figures are net of dividends paid on First Preference
shares.
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