Welcome!

News Feed Item

E-L Financial Corporation Limited Announces June 30, 2014 Interim Financial Results

TORONTO, ONTARIO -- (Marketwired) -- 08/08/14 -- 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 quarter ended June 30, 2014, consolidated net operating income(1) of $45.7 million or $10.65 per share(2) for the second quarter of 2014 compared with $39.7 million or $9.34 per share in 2013. The $6.0 million increase in net operating income in 2014 versus 2013 is due to an increase in E-L Corporate's investment income resulting from investing $650 million from the sale of The Dominion of Canada General Insurance Company ("The Dominion").

Consolidated net operating income for the first six months of 2014 was $69.5 million or $15.71 per share compared with $53.0 million or $13.80 per share for the same period in 2013. The $16.5 million increase in net operating income was due mainly an increase of $13.1 million in E-L Corporate's net operating income, resulting from increased investment income as previously noted. The Empire Life Insurance Company's ("Empire Life") net operating income increased $3.3 million due primarily to growth in segregated fund fees resulting from the positive impact of favourable stock market conditions, strong sales and price increases.

Net income

E-L Financial earned consolidated net income of $77.2 million or $18.66 per share for the second quarter of 2014 compared with $190.9 million or $47.62 per share in 2013. The $113.7 million decrease in net income is mainly due to the liquidation of The Dominion's common share portfolio in June 2013 which resulted in an $83.1 million realized gain on available for sale ("AFS") investments. In addition there was a decline in E-L Corporate's fair value through profit or loss ("FVTPL") investments from $50.5 million in 2013 to $22.2 million in 2014.

Consolidated net income for the first six months of 2014 was $181.9 million or $44.35 per share compared with $336.9 million or $83.82 per share in 2013. The $155.0 million decrease in net income for the period is mainly due to The Dominion's $83.1 million realized gain on AFS investments in 2013, as previously discussed, combined with a decline in E-L Corporate's income from FVTPL investments from $164.1 million in 2013 to a $105.8 million in 2014.

Comprehensive income

E-L Financial earned consolidated comprehensive income of $76.2 million or $18.42 per share for the second quarter of 2014 compared with $71.0 million or $17.10 per share in 2013. Consolidated other comprehensive loss ("OCL") was $0.9 million for the second quarter of 2014 compared to $119.9 million in 2013. The 2013 OCL of $119.9 million resulted from the reclassification in 2013 of significant gains relating to The Dominion's liquidation of its common share portfolio.

Consolidated comprehensive income for the first six months of 2014 was $199.5 million or $48.82 per share compared with $268.5 million or $66.40 per share in 2013. Consolidated other comprehensive income ("OCI") was $17.6 million for the first six months of 2014 compared to OCL of $68.4 million in 2013. As previously mentioned, the 2013 OCL of $68.4 million was mainly a result of the liquidation of The Dominion's common share portfolio, compared to an OCI of $17.6 million in 2014 resulting from unrealized fair value increases relating to AFS bonds and stocks.

Chief Financial Officer retirement

Mr. Mark Taylor, long serving Chief Financial Officer ("CFO") of the Company, has decided to step away from the CFO role following the completion of the 2014 year end. Mr. Scott Ewert, currently a partner with PricewaterhouseCoopers LLP, will become CFO following Mr. Taylor's departure in March of 2015.

"On behalf of the Board, I would like to express our gratitude to Mark for his many contributions to the Company over the years," said Mr. Duncan Jackman, Chairman, President and CEO of E-L Financial.

CONSOLIDATED SUMMARY OF COMPREHENSIVE INCOME


----------------------------------------------------------------------------
                                          Three months ended June 30, 2014
                                         -----------------------------------
                                                 E-L      Empire
(thousands of dollars)                     Corporate        Life      Total
----------------------------------------------------------------------------
Net operating income                      $   15,686  $   30,028 $   45,714
Realized gain on available for sale
 investments including impairment write
 downs                                         2,625         741      3,366
Share of income of associates                  5,893           -      5,893
E-L Corporate's fair value change in fair
 value through profit or loss investments     22,188           -     22,188
----------------------------------------------------------------------------
Net income                                    46,392      30,769     77,161
Other comprehensive (loss) ("OCL") income
 ("OCI")                                      (3,982)      3,051       (931)
----------------------------------------------------------------------------
Comprehensive income                      $   42,410  $   33,820 $   76,230
                                         -----------------------------------

----------------------------------------------------------------------------

----------------------------------------------------------------------------
                                           Three months ended June 30, 2013
                                         -----------------------------------
                                                 E-L     Empire
(thousands of dollars)                     Corporate       Life       Total
----------------------------------------------------------------------------
Net operating income                      $    7,930 $   31,723  $   39,653
Realized gain on available for sale
 investments including impairment write
 downs                                         1,901        628       2,529
Share of income of associates                 14,222          -      14,222
E-L Corporate's fair value change in fair
 value through profit or loss investments     50,486          -      50,486
----------------------------------------------------------------------------
Net income from continuing operations         74,539     32,351     106,890
Net income from discontinued operations            -          -      83,997
----------------------------------------------------------------------------
Net income                                    74,539     32,351     190,887
OCI ("OCL") from continuing operations           693    (14,033)    (13,340)
OCL from discontinued operations                   -          -    (106,513)
----------------------------------------------------------------------------
Total OCI (OCL)                                  693    (14,033)   (119,853)
----------------------------------------------------------------------------
Comprehensive income                      $   75,232 $   18,318  $   71,034
                                         -----------------------------------

----------------------------------------------------------------------------

CONSOLIDATED SUMMARY OF COMPREHENSIVE INCOME (continued)


----------------------------------------------------------------------------
                                              Six months ended June 30, 2014
                                           ---------------------------------
                                                   E-L     Empire
(thousands of dollars)                       Corporate       Life      Total
----------------------------------------------------------------------------
Net operating income                         $  26,499  $  42,967  $  69,466
Realized gain on available for sale
 investments including impairment write
 downs                                           3,765      1,964      5,729
Share of income of associates                      952          -        952
E-L Corporate's fair value change in fair
 value through profit or loss investments      105,775          -    105,775
----------------------------------------------------------------------------
Net income                                     136,991     44,931    181,922
OCI                                              5,519     12,036     17,555
----------------------------------------------------------------------------
Comprehensive income                         $ 142,510  $  56,967  $ 199,477
                                           ---------------------------------

----------------------------------------------------------------------------

----------------------------------------------------------------------------
                                             Six months ended June 30, 2013
                                         -----------------------------------
                                                 E-L     Empire
(thousands of dollars)                     Corporate       Life       Total
----------------------------------------------------------------------------
Net operating income                      $   13,356 $   39,671  $   53,027
Realized gain on available for sale
 investments including impairment write
 downs                                         4,187        847       5,034
Share of income of associates                 17,025          -      17,025
E-L Corporate's fair value change in fair
 value through profit or loss investments    164,097          -     164,097
----------------------------------------------------------------------------
Net income from continuing operations        198,665     40,518     239,183
Net income from discontinued operations            -          -      97,742
----------------------------------------------------------------------------
Net income                                   198,665     40,518     336,925
OCI (OCL) from continuing operations          13,830     (9,360)      4,470
OCL from discontinued operations                   -          -     (72,885)
----------------------------------------------------------------------------
Total OCI (OCL)                               13,830     (9,360)    (68,415)
----------------------------------------------------------------------------
Comprehensive income                      $  212,495 $   31,158  $  268,510
                                         -----------------------------------

----------------------------------------------------------------------------

(1) Use of non-GAAP measures:

"net operating income" is net income from continuing operations 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.

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 promises the agility required by today’s digital businesses. As organizations adopt cloud based infrastructures and services, their IT resources become increasingly dynamic and hybrid in nature. Managing these require modern IT operations and tools. In his session at 20th Cloud Expo, Raj Sundaram, Senior Principal Product Manager at CA Technologies, will discuss how to modernize your IT operations in order to proactively manage your hybrid cloud and IT environments. He will be sharing bes...
Regardless of what business you’re in, it’s increasingly a software-driven business. Consumers’ rising expectations for connected digital and physical experiences are driving what some are calling the "Customer Experience Challenge.” In his session at @DevOpsSummit at 20th Cloud Expo, Marco Morales, Director of Global Solutions at CollabNet, will discuss how organizations are increasingly adopting a discipline of Value Stream Mapping to ensure that the software they are producing is poised to o...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...
Most DevOps journeys involve several phases of maturity. Research shows that the inflection point where organizations begin to see maximum value is when they implement tight integration deploying their code to their infrastructure. Success at this level is the last barrier to at-will deployment. Storage, for instance, is more capable than where we read and write data. In his session at @DevOpsSummit at 20th Cloud Expo, Josh Atwell, a Developer Advocate for NetApp, will discuss the role and value...
SYS-CON Events announced today that Outscale, a global pure play Infrastructure as a Service provider and strategic partner of Dassault Systèmes, 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. Founded in 2010, Outscale simplifies infrastructure complexities and boosts the business agility of its customers. Outscale delivers a secure, reliable and industrial strength solution for its customers, which in...
SYS-CON Events announced today that CollabNet, a global leader in enterprise software development, release automation and DevOps solutions, will be a Bronze Sponsor of SYS-CON's 20th International Cloud Expo®, taking place from June 6-8, 2017, at the Javits Center in New York City, NY. CollabNet offers a broad range of solutions with the mission of helping modern organizations deliver quality software at speed. The company’s latest innovation, the DevOps Lifecycle Manager (DLM), supports Value S...
IBM helps FinTechs and financial services companies build and monetize cognitive-enabled financial services apps quickly and at scale. Hosted on IBM Bluemix, IBM’s platform builds in customer insights, regulatory compliance analytics and security to help reduce development time and testing. In his session at 20th Cloud Expo, Tom Eck, Industry Platforms CTO at IBM Cloud, will discuss how these tools simplify the time-consuming tasks of selection, mapping and data integration, allowing developers ...
In order to meet the rapidly changing demands of today’s customers, companies are continually forced to redefine their business strategies in order to meet these needs, stay relevant and continue to see profitable growth. IoT deployment and development is integral in this transformation, and today businesses are increasingly seeing the value of investing their resources into IoT deployments. These technologies are able increase ROI through projects such as connecting supply chains or enabling sm...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, 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. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus intern...
Everywhere we turn in our industry we can find strong opinions about the direction, type and nature of cloud’s impact on computing and business. Another word that is used in every context in our industry is “hybrid.” In his session at 20th Cloud Expo, Alvaro Gonzalez, Director of Technical, Partner and Field Marketing at Peak 10, will use a combination of a few conceptual props and some research recently commissioned by Peak 10 to offer a real-world consideration of how the various categories of...
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...
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/...