Q1 2024 highlights (compared to Q1 2023)
- Common shareholders' net income of $52
million (compared to net income of $52 million)
- Earnings per share (basic and diluted) of $52.86 (compared to $52.66)
KINGSTON, ON, May 3, 2024
/CNW/ - The Empire Life Insurance Company (Empire Life) reported
first quarter common shareholders' net income of $52 million for 2024, which is consistent with
the same quarter in 2023. Favourable market-related movements
in the period were offset by mortality experience in our individual
insurance products.
"Market conditions in the first quarter of 2024 had a positive
impact on our earnings and increased our contractual service margin
(CSM) balance, outweighing some unfavourable mortality trends,"
said Mark Sylvia, President and
Chief Executive Officer. "Due to our strong capital and liquidity
position, I'm pleased to announce the declaration of an additional
dividend of $50.76 per common share,
in addition to our usual quarterly dividend."
Financial highlights
|
First
Quarter
|
|
(in millions of dollars
except per share amounts)
|
2024
|
2023
|
|
Common shareholders'
net income (loss)
|
$
52
|
$
52
|
|
Earnings per share -
basic and diluted
|
$
52.86
|
$
52.66
|
|
Mar
31
|
Dec 31
|
Sep 30
|
Jun 30
|
Mar 31
|
|
Other Financial
Highlights
|
2024
|
2023
|
2023
|
2023
|
2023
|
|
Return on common
shareholders' equity(1)
|
10.4 %
|
10.5 %
|
3.9 %
|
6.6 %
|
4.4 %
|
|
LICAT total
ratio
|
157 %
|
155 %
|
152 %
|
151 %
|
152 %
|
|
(1) See Non-GAAP
Measures section.
|
The following table provides a summary of Empire Life results
for the three months ended March 31, 2024 and 2023.
|
For the three months
ended
|
|
(in millions of
dollars)
|
March 31,
2024
|
March 31,
2023
|
|
|
|
|
Insurance service
result
|
|
|
|
Insurance
revenue
|
$
339
|
$
326
|
|
Insurance service
expenses
|
(282)
|
(267)
|
|
Insurance service
result
|
57
|
59
|
|
Net recovery (expense)
from reinsurance contracts held
|
(18)
|
(15)
|
|
Net insurance
service result
|
39
|
44
|
|
|
|
|
Investment and
insurance finance result
|
|
|
|
Investment income
(loss), excluding segregated fund account balances
|
|
|
|
Investment
income
|
(96)
|
320
|
|
Change in investment
contracts(1)
|
(2)
|
(10)
|
|
Net investment
result, excluding segregated fund account balances
|
(98)
|
310
|
|
Insurance finance
income (expense), excluding segregated fund account
balances
|
|
|
|
Insurance
contracts
|
149
|
(254)
|
|
Reinsurance contracts
held
|
4
|
(9)
|
|
Net insurance
finance income (expense), excluding segregated fund account
balances
|
153
|
(263)
|
|
Segregated fund
account balances net investment and insurance finance
result
|
|
|
|
Investment income
(loss) on investments for segregated fund account
balances
|
442
|
281
|
|
Insurance finance
income (expenses) segregated fund account balances
|
(442)
|
(281)
|
|
Segregated fund
account balances net investment and insurance finance
result
|
—
|
—
|
|
Net investment and
insurance finance result
|
55
|
47
|
|
|
|
|
Other income and
expenses
|
|
|
|
Fee and other
income(1)
|
7
|
7
|
|
Non-insurance
expenses
|
(21)
|
(23)
|
|
Interest
expenses(1)
|
(4)
|
(5)
|
|
Total other income
and expenses
|
(18)
|
(21)
|
|
|
|
|
Net income (loss)
before taxes
|
76
|
70
|
|
Income
taxes(1)
|
(18)
|
(13)
|
|
Net income (loss)
after taxes
|
58
|
57
|
|
Less: net income (loss)
attributable to the participating account
|
3
|
2
|
|
Shareholders' net
income (loss)
|
55
|
55
|
|
Less: preferred share
dividends declared and distributions on other equity
instruments(1)
|
(3)
|
(3)
|
|
Common shareholders'
net income (loss)
|
$
52
|
$
52
|
|
(1)
Prior year amounts have been revised from those previously
presented.
|
Empire Life reported first quarter common shareholders' net
income of $52 million for 2024, which
is consistent with the same quarter in 2023. Favourable
market-related movements in the period were offset by mortality
experience in our individual insurance products.
Net insurance service result decreased $5
million in the first quarter, compared to the same period in
2023, due to unfavourable mortality experience in individual
insurance products.
Net investment and insurance finance result increased
$8 million in the first quarter
compared to the same period in 2023. This was mainly due to larger
gains from market movements in 2024 relative to the first quarter
in 2023.
Total other income and expenses changed by $3 million in the first quarter compared to the
same period in 2023, mainly from timing relating to our
subordinated debt redemption and issuance in the first quarter of
2023.
The company's Life Insurance Capital Adequacy Test (LICAT) Total
ratio was 157% at March 31, 2024, well above the requirements
set by the Office of the Superintendent of Financial Institutions
Canada (OSFI) as well as Empire Life's minimum internal
targets.
Non-GAAP measures
Empire Life uses non-generally accepted accounting principles
(non-GAAP) measures, including return on common shareholders'
equity, assets under management, annualized premium sales, gross
and net sales for segregated funds and fixed annuities to provide
investors with supplemental measures of its operating performance
and to highlight trends in its core business that may not otherwise
be apparent when relying solely on measures prescribed by
International Financial Reporting Standards (IFRS Accounting
Standards). Empire Life also believes that securities analysts,
investors and other interested parties frequently use non-GAAP
measures in the evaluation of issuers. Further information on
these non-GAAP measures can be found in Empire Life's latest
Management's Discussion & Analysis (MD&A), filed on Empire
Life's profile available at www.sedarplus.ca.
Additional information
All amounts are in Canadian dollars and are based on the
consolidated financial results of Empire Life for the period ended
March 31, 2024. Additional information about Empire Life can
be found in Empire Life's latest Management's Discussion &
Analysis and Annual Information Form. These documents are filed on
Empire Life's profile available at www.sedarplus.ca.
About Empire Life
Established in 1923 and a subsidiary of E-L Financial
Corporation Limited, Empire Life provides individual and group life
and health insurance, investment and retirement products. The
company's mission is to make it simple, fast and easy for Canadians
to get the products and services they need to build wealth,
generate income, and achieve financial security. As of
March 31, 2024, Empire Life had total assets under management
of $18.7 billion. Follow us on social
media @EmpireLife or visit www.empire.ca for more information.
SOURCE The Empire Life Insurance Company