Welcome!

News Feed Item

E-L Financial Corporation Limited Announces December 31, 2013 Year End Financial Results

TORONTO, ONTARIO -- (Marketwired) -- 03/04/14 -- E-L Financial Corporation Limited ("E-L Financial") (TSX: ELF)(TSX: ELF.PR.F)(TSX: ELF.PR.G)(TSX: ELF.PR.H) today reported for the year ended December 31, 2013, consolidated net operating income from continuing operations(1) of $140.6 million or $31.84 per share(2) in 2013 compared with $71.4 million or $14.53 per share in 2012. The $69.2 million increase in net operating income in 2013 versus 2012 is mainly attributable to the $44.5 million increase in life insurance operation's ("Empire Life's") net operating income resulting primarily from the Individual Insurance product line. The increase is due mainly to the favourable impact of long-term interest rate movements and stock market movements in 2013. E-L Corporate's net operating income increased $24.6 million principally due to the recovery of refundable dividend taxes resulting from the $301.5 million payment of the special dividend to Common shareholders.

Net income

E-L Financial earned consolidated net income from continuing operations of $596.6 million compared with $432.3 million in 2012. The $164.3 million increase in net income is due primarily to a $396.0 million increase in E-L Corporate's fair value through profit or loss ("FVTPL") investments during the year compared to $125.8 million in 2012, an increase of $131.6 million from United Corporations Limited's ("United") investments and the favourable impact of stock market movements during 2013. In 2012, the Company recognized a $142.2 million gain on the consolidation of United.

On November 1, 2013, the Company completed the sale of its formerly wholly-owned subsidiary, The Dominion, to The Travelers Companies, Inc. for gross proceeds of $1.08 billion, resulting in an after-tax gain of $266.4 million. This gain combined with The Dominion's ten month earnings for 2013 of $44.7 million resulted in $311.1 million earned from discontinued operations.

Net income from continuing and discontinued operations resulted in E-L Financial earning total consolidated net income of $907.7 million or $227.18 per share compared with $479.6 million or $118.41 per share in 2012.

Comprehensive income

E-L Financial earned consolidated comprehensive income of $871.6 million or $217.99 per share in 2013 compared with $469.4 million or $115.82 per share in 2012. Consolidated other comprehensive loss ("OCL") was $36.1 million or $9.19 per share compared with $10.2 million or $2.59 per share in 2012.

The $25.9 million increase in OCL for 2013 is mainly due to the reclassification of significant gains relating to The Dominion's liquidation of its common share portfolio.

E-L Financial's net equity value per Common Share(1) at December 31, 2013 was $872.45.

"We are pleased with 2013's exceptional results," said Duncan Jackman, Chairman, President and CEO of E-L Financial. "This year saw a continuation of strong performance by equity markets globally and an increase in long-term bond yields. As a result, our investment portfolio benefited from positive equity market performance and the life insurance business reported record net income on the heels of an improving yield environment. In addition, the year culminated with the sale of our general insurance business, generating a significant gain. Many things went right for us this year, leaving the company in a strong financial position to continue building shareholder value over the long-term."

CONSOLIDATED SUMMARY OF COMPREHENSIVE INCOME


----------------------------------------------------------------------------
                                             2013
                  ----------------------------------------------------------
                         Continuing Operations       Discontinued
                  -----------------------------------------------

(thousands of             E-L                                          Total
dollars)            Corporate Empire Life      Total The Dominion
----------------------------------------------------------------------------

Net operating
 income             $  47,913   $  92,678  $ 140,591
Realized gain
 (loss) on
 available for
 sale investments
 including
 impairment write
 downs                 11,061     (2,459)      8,602
Share of income of
 associates            51,337           -     51,337
E-L Corporate's
 fair value change
 in fair value
 through profit or
 loss investments     396,023                396,023
----------------------------------------------------------------------------

Net income            506,334      90,219    596,553      311,126    907,679

Other
 comprehensive
 income (loss)         32,834     (5,235)     27,599     (63,701)   (36,102)
----------------------------------------------------------------------------

Comprehensive
 income             $ 539,168   $  84,984  $ 624,152    $ 247,425  $ 871,577
------------------==========================================================


----------------------------------------------------------------------------
                                             2012
                  ----------------------------------------------------------
Restated (3)             Continuing Operations       Discontinued
                  -----------------------------------------------

(thousands of             E-L                                          Total
dollars)            Corporate Empire Life      Total The Dominion
----------------------------------------------------------------------------

Net operating
 income             $  23,301   $  48,154  $  71,455
Realized gain on
 available for
 sale investments
 including
 impairment write
 downs                  4,310      15,690     20,000
Share of income of
 associates            72,823           -     72,823
E-L Corporate's
 fair value change
 in fair value
 through profit or
 loss investments     125,810                125,810
Gain on the
 consolidation of
 United               142,241           -    142,241
----------------------------------------------------------------------------

Net income            368,485      63,844    432,329       47,275    479,604

Other
 comprehensive
 income (loss)          5,863    (16,800)   (10,937)          753   (10,184)
----------------------------------------------------------------------------

Comprehensive
 income             $ 374,348   $  47,044  $ 421,392    $  48,028  $ 469,420
------------------==========================================================

(1)Use 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.

"net equity value per Common share" provides an indication of the accumulated shareholder value, adjusting shareholders' equity to reflect investments in associates at fair value, net of tax, as opposed to their carrying value.

(2) All earnings per share figures are net of dividends paid on First Preference shares.

(3) Net operating income and other comprehensive income (loss) for December 31, 2012 have been restated to reflect the impact of the prior period adjustment related to the remeasurement of defined benefit plans resulting in a $6,863 increase in net operating income and a $12,354 decrease in other comprehensive income for the year ended December 31, 2012.

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
SYS-CON Events announced today that Progress, a global leader in application development, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Enterprises today are rapidly adopting the cloud, while continuing to retain business-critical/sensitive data inside the firewall. This is creating two separate data silos – one inside the firewall and the other outside the firewall. Cloud ISVs ofte...
SYS-CON Events announced today that Tappest will exhibit MooseFS at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. MooseFS is a breakthrough concept in the storage industry. It allows you to secure stored data with either duplication or erasure coding using any server. The newest – 4.0 version of the software enables users to maintain the redundancy level with even 50% less hard drive space required. The software func...
SYS-CON Events announced today that Interoute has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Interoute is the owner operator of Europe's largest network and a global cloud services platform, which encompasses over 70,000 km of lit fiber, 15 data centers, 17 virtual data centers and 33 colocation centers, with connections to 195 additional partner data centers. Our full-service Unifie...
SYS-CON Events announced today that EARP will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. "We are a software house, so we perfectly understand challenges that other software houses face in their projects. We can augment a team, that will work with the same standards and processes as our partners' internal teams. Our teams will deliver the same quality within the required time and budget just as our partn...
SYS-CON Events announced today that Carbonite will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Carbonite protects your entire IT footprint with the right level of protection for each workload, ensuring lower costs and dependable solutions with DoubleTake and Evault.
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in compute, storage and networking technologies, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/...
SYS-CON Events announced today that Outscale will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Outscale's technology makes an automated and adaptable Cloud available to businesses, supporting them in the most complex IT projects while controlling their operational aspects. You boost your IT infrastructure's reactivity, with request responses that only take a few seconds.
While some vendors scramble to create and sell you a fancy solution for monitoring your spanking new Amazon Lambdas, hear how you can do it on the cheap using just built-in Java APIs yourself. By exploiting a little-known fact that Lambdas aren’t exactly single threaded, you can effectively identify hot spots in your serverless code. In his session at 20th Cloud Expo, David Martin, Principal Product Owner at CA Technologies, will give a live demonstration and code walkthrough, showing how to ov...
SYS-CON Events announced today that Technologic Systems Inc., an embedded systems solutions company, will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Technologic Systems is an embedded systems company with headquarters in Fountain Hills, Arizona. They have been in business for 32 years, helping more than 8,000 OEM customers and building over a hundred COTS products that have never been discontinued. Technologic Systems’ pr...
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory?
As cloud adoption continues to transform business, today's global enterprises are challenged with managing a growing amount of information living outside of the data center. The rapid adoption of IoT and increasingly mobile workforce are exacerbating the problem. Ensuring secure data sharing and efficient backup poses capacity and bandwidth considerations as well as policy and regulatory compliance issues.
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
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 will examine how DevOps helps to meet th...
SYS-CON Events announced today that Progress, a global leader in application development, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Enterprises today are rapidly adopting the cloud, while continuing to retain business-critical/sensitive data inside the firewall. This is creating two separate data silos – one inside the firewall and the other outside the firewall. Cloud ISVs oft...
SYS-CON Events announced today that A&I Solutions has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 1999, A&I Solutions is a leading information technology (IT) software and services provider focusing on best-in-class enterprise solutions. By partnering with industry leaders in technology, A&I assures customers high performance levels across all IT environments including: mai...