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
IoT solutions exploit operational data generated by Internet-connected smart “things” for the purpose of gaining operational insight and producing “better outcomes” (for example, create new business models, eliminate unscheduled maintenance, etc.). The explosive proliferation of IoT solutions will result in an exponential growth in the volume of IoT data, precipitating significant Information Governance issues: who owns the IoT data, what are the rights/duties of IoT solutions adopters towards t...
"We focus on composable infrastructure. Composable infrastructure has been named by companies like Gartner as the evolution of the IT infrastructure where everything is now driven by software," explained Bruno Andrade, CEO and Founder of HTBase, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
It is ironic, but perhaps not unexpected, that many organizations who want the benefits of using an Agile approach to deliver software use a waterfall approach to adopting Agile practices: they form plans, they set milestones, and they measure progress by how many teams they have engaged. Old habits die hard, but like most waterfall software projects, most waterfall-style Agile adoption efforts fail to produce the results desired. The problem is that to get the results they want, they have to ch...
With the introduction of IoT and Smart Living in every aspect of our lives, one question has become relevant: What are the security implications? To answer this, first we have to look and explore the security models of the technologies that IoT is founded upon. In his session at @ThingsExpo, Nevi Kaja, a Research Engineer at Ford Motor Company, discussed some of the security challenges of the IoT infrastructure and related how these aspects impact Smart Living. The material was delivered interac...
Wooed by the promise of faster innovation, lower TCO, and greater agility, businesses of every shape and size have embraced the cloud at every layer of the IT stack – from apps to file sharing to infrastructure. The typical organization currently uses more than a dozen sanctioned cloud apps and will shift more than half of all workloads to the cloud by 2018. Such cloud investments have delivered measurable benefits. But they’ve also resulted in some unintended side-effects: complexity and risk. ...
Cloud applications are seeing a deluge of requests to support the exploding advanced analytics market. “Open analytics” is the emerging strategy to deliver that data through an open data access layer, in the cloud, to be directly consumed by external analytics tools and popular programming languages. An increasing number of data engineers and data scientists use a variety of platforms and advanced analytics languages such as SAS, R, Python and Java, as well as frameworks such as Hadoop and Spark...
In 2014, Amazon announced a new form of compute called Lambda. We didn't know it at the time, but this represented a fundamental shift in what we expect from cloud computing. Now, all of the major cloud computing vendors want to take part in this disruptive technology. In his session at 20th Cloud Expo, Doug Vanderweide, an instructor at Linux Academy, discussed why major players like AWS, Microsoft Azure, IBM Bluemix, and Google Cloud Platform are all trying to sidestep VMs and containers wit...
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists discussed how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations might...
No hype cycles or predictions of zillions of things here. IoT is big. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, Associate Partner at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He discussed the evaluation of communication standards and IoT messaging protocols, data analytics considerations, edge-to-cloud tec...
When growing capacity and power in the data center, the architectural trade-offs between server scale-up vs. scale-out continue to be debated. Both approaches are valid: scale-out adds multiple, smaller servers running in a distributed computing model, while scale-up adds fewer, more powerful servers that are capable of running larger workloads. It’s worth noting that there are additional, unique advantages that scale-up architectures offer. One big advantage is large memory and compute capacity...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists examined how DevOps helps to meet the de...
The taxi industry never saw Uber coming. Startups are a threat to incumbents like never before, and a major enabler for startups is that they are instantly “cloud ready.” If innovation moves at the pace of IT, then your company is in trouble. Why? Because your data center will not keep up with frenetic pace AWS, Microsoft and Google are rolling out new capabilities. In his session at 20th Cloud Expo, Don Browning, VP of Cloud Architecture at Turner, posited that disruption is inevitable for comp...
"When we talk about cloud without compromise what we're talking about is that when people think about 'I need the flexibility of the cloud' - it's the ability to create applications and run them in a cloud environment that's far more flexible,” explained Matthew Finnie, CTO of Interoute, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
SYS-CON Events announced today that Datanami has been named “Media Sponsor” of 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. Datanami is a communication channel dedicated to providing insight, analysis and up-to-the-minute information about emerging trends and solutions in Big Data. The publication sheds light on all cutting-edge technologies including networking, storage and applications, and thei...