E-L Financial Corporation Limited Announces March 31, 2014 Interim Financial Results
May 13 2014 - 11:06AM
Marketwired
E-L Financial Corporation Limited Announces March 31, 2014 Interim
Financial Results
TORONTO, ONTARIO--(Marketwired - May 13, 2014) - E-L Financial
Corporation Limited ("E-L Financial") (TSX:ELF)(TSX:ELF.PR.F)(TSX:
ELF.PR.G)(TSX: ELF.PR.H) today reported for the quarter ended March
31, 2014, consolidated net operating income1 of $23.8 million or
$5.06 per share2 for the first three months of 2014 compared with
$13.4 million or $2.42 per share in 2013.
The $10.4 million
increase in net operating income in 2014 versus 2013 is principally
due to increased dividend income in E-L Corporate resulting from
the additional $650 million capital employed from the sale of the
general insurance operation (The Dominion), as well as the life
insurance operation's (Empire Life) growth in segregated fund fees
due to strong segregated fund sales combined with the positive
impact of favourable stock market conditions on management fees
earned.
Net income
E-L Financial earned
consolidated net income of $104.8 million or $25.69 per share for
the first three months of 2014 compared with $146.0 million or
$36.20 per share in 2013.
The $41.2 million
decline in net income is primarily due to an $83.6 million increase
in E-L Corporate fair value through profit or loss investments
compared to $113.6 million in 2013 resulting from stronger markets
during the first quarter of 2013 compared to 2014.
Comprehensive income
E-L Financial earned
consolidated comprehensive income of $123.2 million or $30.40 per
share for the first three months of 2014 compared to $197.5 million
or $49.30 per share in 2013. Consolidated other comprehensive
income ("OCI") was $18.5 million or $4.71 per share compared with
$51.4 million or $13.20 per share in 2013. The decrease in OCI for
the quarter is primarily due to $33.6 million in income in 2013
from discontinued operations.
E-L Financial's net
equity value per Common Share1 at March 31, 2014 was $902.34.
CONSOLIDATED SUMMARY
OF COMPREHENSIVE INCOME
|
March 31, 2014 |
(thousands of dollars) |
E-L Corporate |
|
Empire Life |
Total |
|
Net operating income |
$ |
10,813 |
|
$ |
12,939 |
$ |
23,752 |
|
Realized gain on available for sale investments
including impairment write downs |
|
1,140 |
|
|
1,223 |
|
2,363 |
|
Share of loss of associates |
|
(4,941 |
) |
|
- |
|
(4,941 |
) |
E-L Corporate's fair value change in fair value
through profit or loss investments |
|
83,587 |
|
|
|
|
83,587 |
|
Net income |
|
90,599 |
|
|
14,162 |
|
104,761 |
|
Other comprehensive income ("OCI") |
|
9,501 |
|
|
8,985 |
|
18,486 |
|
Comprehensive income |
$ |
100,100 |
|
$ |
23,147 |
$ |
123,247 |
|
CONSOLIDATED SUMMARY
OF COMPREHENSIVE INCOME (continued)
|
March 31, 2013 |
(thousands of dollars) |
E-L Corporate |
Empire Life |
Total |
Net operating income |
$ |
5,426 |
$ |
7,948 |
$ |
13,374 |
Realized gain on available for sale investments including
impairment write downs |
|
2,286 |
|
219 |
|
2,505 |
Share of income of associates |
|
2,803 |
|
- |
|
2,803 |
E-L Corporate's fair value change in fair value through profit or
loss investments |
|
113,611 |
|
|
|
113,611 |
Net income from continuing operations |
|
124,126 |
|
8,167 |
|
132,293 |
Net income from discontinued operations |
|
|
|
|
|
13,745 |
Net income |
|
124,126 |
|
8,167 |
|
146,038 |
OCI from continuing operations |
|
13,137 |
|
4,673 |
|
17,810 |
OCI from discontinued operations |
|
|
|
|
|
33,628 |
Total OCI |
|
13,137 |
|
4,673 |
|
51,438 |
Comprehensive income |
$ |
137,263 |
$ |
12,840 |
$ |
197,476 |
1 Use of non-GAAP
measures:
"net operating
income" is net income from continuing operations 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.
"net equity value
per Common share" provides an indication of the accumulated
shareholder value, adjusting shareholders' equity to reflect
investments in associates at fair value, net of tax, as opposed to
their carrying value.
2 All earnings per
share figures are net of dividends paid on First Preference
shares.
E-L Financial Corporation LimitedMark M. TaylorExecutive
Vice-President and Chief Financial Officer(416) 947-2578(416)
362-2592
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