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
"NetApp's vision is how we help organizations manage data - delivering the right data in the right place, in the right time, to the people who need it, and doing it agnostic to what the platform is," explained Josh Atwell, Developer Advocate for NetApp, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science," is responsible for setting the strategy and defining the Big Data service offerings and capabilities for EMC Global Services Big Data Practice. As the CTO for the Big Data Practice, he is responsible for working with organizations to help them identify where and how to start their big data journeys. He's written several white papers, is an avid blogge...
When building large, cloud-based applications that operate at a high scale, it's important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. "Fly two mistakes high" is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Le...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
"Our strategy is to focus on the hyperscale providers - AWS, Azure, and Google. Over the last year we saw that a lot of developers need to learn how to do their job in the cloud and we see this DevOps movement that we are catering to with our content," stated Alessandro Fasan, Head of Global Sales at Cloud Academy, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Containers and Kubernetes allow for code portability across on-premise VMs, bare metal, or multiple cloud provider environments. Yet, despite this portability promise, developers may include configuration and application definitions that constrain or even eliminate application portability. In this session we'll describe best practices for "configuration as code" in a Kubernetes environment. We will demonstrate how a properly constructed containerized app can be deployed to both Amazon and Azure ...
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
"Cloud computing is certainly changing how people consume storage, how they use it, and what they use it for. It's also making people rethink how they architect their environment," stated Brad Winett, Senior Technologist for DDN Storage, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
The cloud competition for database hosts is fierce. How do you evaluate a cloud provider for your database platform? In his session at 18th Cloud Expo, Chris Presley, a Solutions Architect at Pythian, gave users a checklist of considerations when choosing a provider. Chris Presley is a Solutions Architect at Pythian. He loves order – making him a premier Microsoft SQL Server expert. Not only has he programmed and administered SQL Server, but he has also shared his expertise and passion with bu...
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science" is responsible for guiding the technology strategy within Hitachi Vantara for IoT and Analytics. Bill brings a balanced business-technology approach that focuses on business outcomes to drive data, analytics and technology decisions that underpin an organization's digital transformation strategy.
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...