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
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, provided a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to oper...
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
In his session at 21st Cloud Expo, James Henry, Co-CEO/CTO of Calgary Scientific Inc., introduced you to the challenges, solutions and benefits of training AI systems to solve visual problems with an emphasis on improving AIs with continuous training in the field. He explored applications in several industries and discussed technologies that allow the deployment of advanced visualization solutions to the cloud.
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
Agile has finally jumped the technology shark, expanding outside the software world. Enterprises are now increasingly adopting Agile practices across their organizations in order to successfully navigate the disruptive waters that threaten to drown them. In our quest for establishing change as a core competency in our organizations, this business-centric notion of Agile is an essential component of Agile Digital Transformation. In the years since the publication of the Agile Manifesto, the conn...
"MobiDev is a software development company and we do complex, custom software development for everybody from entrepreneurs to large enterprises," explained Alan Winters, U.S. Head of Business Development at MobiDev, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
"ZeroStack is a startup in Silicon Valley. We're solving a very interesting problem around bringing public cloud convenience with private cloud control for enterprises and mid-size companies," explained Kamesh Pemmaraju, VP of Product Management at ZeroStack, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Enterprises are adopting Kubernetes to accelerate the development and the delivery of cloud-native applications. However, sharing a Kubernetes cluster between members of the same team can be challenging. And, sharing clusters across multiple teams is even harder. Kubernetes offers several constructs to help implement segmentation and isolation. However, these primitives can be complex to understand and apply. As a result, it’s becoming common for enterprises to end up with several clusters. Thi...
"Akvelon is a software development company and we also provide consultancy services to folks who are looking to scale or accelerate their engineering roadmaps," explained Jeremiah Mothersell, Marketing Manager at Akvelon, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Infoblox does DNS, DHCP and IP address management for not only enterprise networks but cloud networks as well. Customers are looking for a single platform that can extend not only in their private enterprise environment but private cloud, public cloud, tracking all the IP space and everything that is going on in that environment," explained Steve Salo, Principal Systems Engineer at Infoblox, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventio...