E-L Financial Corporation Limited Announces March 31, 2014 Interim Financial Results
May 13 2014 - 11:06AM
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 for the quarter ended March 31, 2014,
consolidated net operating income(1) of $23.8 million or $5.06 per share(2) 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 Share(1) at March 31, 2014 was $902.34.
CONSOLIDATED SUMMARY OF COMPREHENSIVE INCOME
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March 31, 2014
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Empire
(thousands of dollars) E-L Corporate Life Total
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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
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Net income 90,599 14,162 104,761
Other comprehensive income ("OCI") 9,501 8,985 18,486
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Comprehensive income $ 100,100 $ 23,147 $ 123,247
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CONSOLIDATED SUMMARY OF COMPREHENSIVE INCOME (continued)
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March 31, 2013
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E-L
(thousands of dollars) Corporate Empire Life Total
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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
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Net income from continuing operations 124,126 8,167 132,293
Net income from discontinued operations 13,745
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Net income 124,126 8,167 146,038
OCI from continuing operations 13,137 4,673 17,810
OCI from discontinued operations 33,628
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Total OCI 13,137 4,673 51,438
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Comprehensive income $ 137,263 $ 12,840 $ 197,476
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(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.
FOR FURTHER INFORMATION PLEASE CONTACT:
E-L Financial Corporation Limited
Mark M. Taylor
Executive Vice-President and Chief Financial Officer
(416) 947-2578
(416) 362-2592 (FAX)
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