Welcome!

News Feed Item

E-L Financial Corporation Limited Announces September 30, 2012 Interim Financial Results

TORONTO, ONTARIO -- (Marketwire) -- 11/07/12 -- 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 September 30, 2012, consolidated net operating income(1) of $11.8 million or $2.01 per share(2) for the third quarter of 2012 compared with $2.5 million or $nil per share in 2011.

The $9.3 million increase in net operating income for the third quarter of 2012 versus 2011 is due to a $16.6 million increase in the life insurance operation ("Empire Life") and a $5.7 million increase in E-L Corporate. Empire Life's increase resulted from primarily improved individual insurance product line results as long-term interest rate volatility and stock market conditions during the quarter improved from last year's unfavourable conditions. These increases were partially offset by the general insurance operation's ("The Dominion") $13.1 million decrease in operating income resulting from an increase in the automobile loss ratio mainly for increases for prior year claims ceded to the Facility Association's Risk Share Pools and for bodily injury claims, higher weather-related claims and higher commission and operating expenses, partly offset by favourable claims development recorded in the third quarter of 2012 versus unfavourable claims development recorded in the third quarter of 2011.

Consolidated net operating income for the first nine months of 2012 was $105.9 million or $24.29 per share compared with $50.7 million or $10.98 per share in 2011. The $55.2 million increase in net operating income was due to improvements in both The Dominion and Empire Life. The $22.8 million increase in The Dominion's year to date net operating income reflects favourable prior year claims development recorded in 2012 mainly for Ontario automobile accident benefits claims, in contrast to unfavourable development recorded in the same period in the prior year (mainly for Ontario bodily injury claims) and lower claims expense for weather-related property losses, partly offset by higher commission and operating expenses. Empire Life's year to date net operating income increased $23.4 million primarily due to the above mentioned long-term interest rate and stock market conditions.

Net income (loss)

E-L Financial earned consolidated net income of $47.5 million or $11.11 per share for the third quarter of 2012 compared with a loss of $94.7 million or $24.71 per share in 2011. The $142.2 million increase in net income for the period reflects a $91.0 million increase in E-L Corporate's fair value through profit or loss ("FVTPL") investments resulting from favourable market returns and a $28.4 million increase in the Company's share of income from associates.

Consolidated net income for the first nine months of 2012 was $231.7 million or $56.30 per share compared with a loss of $55.9 million or $16.12 per share in 2011. The $287.6 million increase in net income for the period reflects primarily a $149.3 million increase in E-L Corporate's fair value change in FVTPL investments, a $72.3 million increase in the Company's share of income from associates and a $55.2 million improvement in net operating income.

Comprehensive income (loss)

E-L Financial earned consolidated comprehensive income of $68.4 million or $16.42 per share for the third quarter of 2012 compared with a loss of $108.4 million or $28.19 per share in 2011. Consolidated other comprehensive income ("OCI") was $20.9 million for the third quarter of 2012 compared with other comprehensive loss ("OCL") of $13.7 million in 2011. The $34.6 million increase in OCI for the quarter reflected an increase in the unrealized fair value of available for sale investments compared to a loss in the third quarter of 2011.

Consolidated comprehensive income for the first nine months of 2012 was $248.7 million or $60.62 per share compared with a loss of $73.4 million or $20.56 per share in 2011. Consolidated OCI was $17.0 million for the first nine months of 2012 compared with OCL of $17.5 million in 2011.

"Our third quarter results showed improvement over the prior year, primarily driven by favourable market conditions that had a positive impact at the corporate level and on our insurance operations," said Duncan Jackman, Chairman, President and CEO of E-L Financial.

CONSOLIDATED SUMMARY OF COMPREHENSIVE INCOME (LOSS)

----------------------------------------------------------------------------
                               Three months ended September 30, 2012        
                       -----------------------------------------------------
                                                                            
(thousands of                    E-L          The       Empire              
 dollars)                  Corporate     Dominion         Life        Total 
----------------------------------------------------------------------------
                                                                            
Net operating income                                                        
 (loss)                $       5,079   $   (8,928)  $   15,640   $   11,791 
Realized gain on                                                            
 available for sale                                                         
 investments                                                                
 including                                                                  
 impairment write                                                           
 downs                         1,272        5,231          536        7,039 
Share of income of                                                          
 associates                   11,715            -            -       11,715 
E-L Corporate's fair                                                        
 value change in                                                            
 fair value through                                                         
 profit or loss                                                             
 investments                                                                
                                                                            
                              16,972                                 16,972 
----------------------------------------------------------------------------
Net income (loss)             35,038       (3,697)      16,176       47,517 
Other comprehensive                                                         
 income                          743       14,130        5,994       20,867 
----------------------------------------------------------------------------
Comprehensive income   $      35,781   $   10,433   $   22,170   $   68,384 
-----------------------=====================================================
                                                                            
----------------------------------------------------------------------------
                               Three months ended September 30, 2011        
                       -----------------------------------------------------
                                                                            
(thousands of                    E-L          The       Empire              
 dollars)                  Corporate     Dominion         Life        Total 
----------------------------------------------------------------------------
                                                                            
Net operating (loss)                                                        
 income                $        (650)  $    4,134   $     (952)  $    2,532 
Realized loss on                                                            
 available for sale                                                         
 investments                                                                
 including                                                                  
 impairment write                                                           
 downs                          (309)      (1,867)      (4,269)      (6,445)
Share of loss of                                                            
 associates                  (16,693)           -            -      (16,693)
E-L Corporate's fair                                                        
 value change in                                                            
 fair value through                                                         
 profit or loss                                                             
 investments                 (74,067)                               (74,067)
----------------------------------------------------------------------------
Net (loss) income            (91,719)       2,267       (5,221)     (94,673)
Other comprehensive                                                         
 loss                           (377)      (6,872)      (6,452)     (13,701)
----------------------------------------------------------------------------
Comprehensive loss     $     (92,096)  $   (4,605)  $  (11,673)  $ (108,374)
-----------------------=====================================================
----------------------------------------------------------------------------
                               Nine months ended September 30, 2012         
                       -----------------------------------------------------
                                                                            
(thousands of                    E-L          The       Empire              
 dollars)                  Corporate     Dominion         Life        Total 
                       -----------------------------------------------------
                                                                            
Net operating income   $      15,769   $   49,407   $   40,771   $  105,947 
Realized gain on                                                            
 available for sale                                                         
 investments                                                                
 including                                                                  
 impairment write                                                           
 downs                         3,747       20,851        3,229       27,827 
Share of income of                                                          
 associates                   38,601            -            -       38,601 
E-L Corporate's fair                                                        
 value change in                                                            
 fair value through                                                         
 profit or loss                                                             
 investments                  59,352                                 59,352 
----------------------------------------------------------------------------
Net income                   117,469       70,258       44,000      231,727 
Other comprehensive                                                         
 income                        3,229       10,267        3,480       16,976 
----------------------------------------------------------------------------
Comprehensive income   $     120,698   $   80,525   $   47,480   $  248,703 
-----------------------=====================================================
                                                                            
----------------------------------------------------------------------------
                                Nine months ended September 30, 2011        
                       -----------------------------------------------------
                                                                            
(thousands of                    E-L          The       Empire              
 dollars)                  Corporate     Dominion         Life        Total 
----------------------------------------------------------------------------
                                                                            
Net operating income   $       6,694   $   26,613   $   17,405   $   50,712 
Realized gain on                                                            
 available for sale                                                         
 investments                                                                
 including                                                                  
 impairment write                                                           
 downs                         3,996       11,273        1,792       17,061 
Share of loss of                                                            
 associates                  (33,721)           -            -      (33,721)
E-L Corporate's fair                                                        
 value change in                                                            
 fair value through                                                         
 profit or loss                                                             
 investments                 (89,925)                               (89,925)
----------------------------------------------------------------------------
Net (loss) income           (112,956)      37,886       19,197      (55,873)
Other comprehensive                                                         
 loss                         (2,984)      (5,045)      (9,450)     (17,479)
----------------------------------------------------------------------------
Comprehensive (loss)                                                        
 income                $    (115,940)  $   32,841   $    9,747   $  (73,352)
-----------------------=====================================================
                                                                            
(1) U se 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.                                                          

Contacts:
E-L Financial Corporation Limited
Mark M. Taylor
Executive Vice-President and Chief Financial Officer
(416) 947-2578
(416) 362-2592 (FAX)

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Microsoft Azure Container Services can be used for container deployment in a variety of ways including support for Orchestrators like Kubernetes, Docker Swarm and Mesos. However, the abstraction for app development that support application self-healing, scaling and so on may not be at the right level. Helm and Draft makes this a lot easier. In this primarily demo-driven session at @DevOpsSummit at 21st Cloud Expo, Raghavan "Rags" Srinivas, a Cloud Solutions Architect/Evangelist at Microsoft, wi...
Containers are rapidly finding their way into enterprise data centers, but change is difficult. How do enterprises transform their architecture with technologies like containers without losing the reliable components of their current solutions? In his session at @DevOpsSummit at 21st Cloud Expo, Tony Campbell, Director, Educational Services at CoreOS, will explore the challenges organizations are facing today as they move to containers and go over how Kubernetes applications can deploy with lega...
SYS-CON Events announced today that Avere Systems, a leading provider of hybrid cloud enablement solutions, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Avere Systems was created by file systems experts determined to reinvent storage by changing the way enterprises thought about and bought storage resources. With decades of experience behind the company’s founders, Avere got its ...
SYS-CON Events announced today that Taica will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. ANSeeN are the measurement electronics maker for X-ray and Gamma-ray and Neutron measurement equipment such as spectrometers, pulse shape analyzer, and CdTe-FPD. For more information, visit http://anseen.com/.
Today most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes significant work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reducti...
As you move to the cloud, your network should be efficient, secure, and easy to manage. An enterprise adopting a hybrid or public cloud needs systems and tools that provide: Agility: ability to deliver applications and services faster, even in complex hybrid environments Easier manageability: enable reliable connectivity with complete oversight as the data center network evolves Greater efficiency: eliminate wasted effort while reducing errors and optimize asset utilization Security: imple...
High-velocity engineering teams are applying not only continuous delivery processes, but also lessons in experimentation from established leaders like Amazon, Netflix, and Facebook. These companies have made experimentation a foundation for their release processes, allowing them to try out major feature releases and redesigns within smaller groups before making them broadly available. In his session at 21st Cloud Expo, Brian Lucas, Senior Staff Engineer at Optimizely, will discuss how by using...
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lead...
SYS-CON Events announced today that Yuasa System will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Yuasa System is introducing a multi-purpose endurance testing system for flexible displays, OLED devices, flexible substrates, flat cables, and films in smartphones, wearables, automobiles, and healthcare.
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
SYS-CON Events announced today that CAST Software will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CAST was founded more than 25 years ago to make the invisible visible. Built around the idea that even the best analytics on the market still leave blind spots for technical teams looking to deliver better software and prevent outages, CAST provides the software intelligence that matter ...
SYS-CON Events announced today that Daiya Industry will exhibit at the Japanese Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Ruby Development Inc. builds new services in short period of time and provides a continuous support of those services based on Ruby on Rails. For more information, please visit https://github.com/RubyDevInc.
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to w...
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busine...
As businesses evolve, they need technology that is simple to help them succeed today and flexible enough to help them build for tomorrow. Chrome is fit for the workplace of the future — providing a secure, consistent user experience across a range of devices that can be used anywhere. In her session at 21st Cloud Expo, Vidya Nagarajan, a Senior Product Manager at Google, will take a look at various options as to how ChromeOS can be leveraged to interact with people on the devices, and formats th...