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
As enterprises around the world struggle with their digital transformation efforts, many are finding that innovative digital teams are moving much faster than their hidebound IT organizations. Rather than struggling to convince traditional IT to get with the digital program, executives are taking advice from IT research firm Gartner, and encouraging existing IT to continue in their desultory ways. However, many CIOs are realizing the dangers of following Gartner’s advice. The central challenge ...
Unless you don’t use the internet, don’t live in California, or haven’t been paying attention to the recent news… you should be aware that self-driving cars are on their way to becoming a reality. I have seen them – they are real. If you believe in the future reality of self-driving cars, then continue reading on. If you don’t believe in the future possibilities, then I am not sure what to do to convince you other than discuss the very real changes that will roll out with the consumer producti...
Cloud Object Storage is effectively infinitely scalable and boasts the lowest total costs. But cloud SLAs and T&Cs are traditionally optimized for huge customers like Netflix, so applications demanding better confidentiality or higher availability typically can’t reap the benefits of public cloud storage. In his session at 18th Cloud Expo, Don Martin, CTO of Security First Corp, will provide an overview of innovative technologies available today – secret sharing and information dispersal algori...
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
Cloud-based NCLC (No-code/low code) application builder platforms empower everyone in the organization to quickly build applications and executable processes that broaden access, deepen collaboration, and enhance transparency for all team members. Line of business owners (LOBO) and operations managers know best their part of the business and their processes. IT departments are beginning to leverage NCLC platforms to empower and enable LOBOs to lead the innovation, transform the organization, an...
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, will explain how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
In the world of DevOps there are ‘known good practices’ – aka ‘patterns’ – and ‘known bad practices’ – aka ‘anti-patterns.' Many of these patterns and anti-patterns have been developed from real world experience, especially by the early adopters of DevOps theory; but many are more feasible in theory than in practice, especially for more recent entrants to the DevOps scene. In this power panel at @DevOpsSummit at 18th Cloud Expo, moderated by DevOps Conference Chair Andi Mann, panelists will dis...
See storage differently! Storage performance problems have only gotten worse and harder to solve as applications have become largely virtualized and moved to a cloud-based infrastructure. Storage performance in a virtualized environment is not just about IOPS, it is about how well that potential performance is guaranteed to individual VMs for these apps as the number of VMs keep going up real time. In his session at 18th Cloud Expo, Dhiraj Sehgal, in product and marketing at Tintri, will discu...
trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vice president of product management, IoT solutions at GlobalSign, will teach IoT developers how t...
The pace of innovation, vendor lock-in, production sustainability, cost-effectiveness, and managing risk… In his session at 18th Cloud Expo, Dan Choquette, Founder of RackN, will discuss how CIOs are challenged finding the balance of finding the right tools, technology and operational model that serves the business the best. He will discuss how clouds, open source software and infrastructure solutions have benefits but also drawbacks and how workload and operational portability between vendors...
When it comes to IoT in the enterprise, namely the commercial building and hospitality markets, a benefit not getting the attention it deserves is energy efficiency, and IoT's direct impact on a cleaner, greener environment when installed in smart buildings. Until now clean technology was offered piecemeal and led with point solutions that require significant systems integration to orchestrate and deploy. There didn't exist a 'top down' approach that can manage and monitor the way a Smart Buildi...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, 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 inter...
Digital payments using wearable devices such as smart watches, fitness trackers, and payment wristbands are an increasing area of focus for industry participants, and consumer acceptance from early trials and deployments has encouraged some of the biggest names in technology and banking to continue their push to drive growth in this nascent market. Wearable payment systems may utilize near field communication (NFC), radio frequency identification (RFID), or quick response (QR) codes and barcodes...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...