TORONTO, Aug. 9, 2023
/CNW/ - E-L Financial Corporation Limited ("E-L Financial" or the
"Company") (TSX: ELF) (TSX: ELF.PR.F) (TSX: ELF.PR.G) (TSX:
ELF.PR.H) today reported a net equity value per common share of
$1,819.34 as at June 30, 2023,
an increase of 1.9% compared to $1,785.66 as at December 31, 2022.
The net equity value per common share as at December 31, 2022 of $1,785.66 has not been adjusted to reflect the
adoption of International Financial Reporting Standards 17 ("IFRS
17") Insurance Contracts and IFRS 9 Financial Instruments ("IFRS
9"). The first quarter of 2023 marked the first quarter of
reporting under IFRS 17 and 9 for the Company. Excluding the impact
of these accounting changes, the growth in net equity value per
common share including dividends, would have been 7.7% for the
first six months of 2023.
For the second quarter ended June 30, 2023, E-L Financial
reported a consolidated net income of $184
million or $52.07 per common
share compared to a net loss of $506
million or $142.50 per common
share for the same period in 2022. For the first six months ended
June 30, 2023, E-L Financial reported a consolidated net
income of $489 million or
$139.08 per common share compared to
a net loss of $733 million or
$206.24 per common share for the same
period in 2022.
Today the Board of Directors of E-L Financial declared a
quarterly dividend of $3.75 per
common share payable on October 17,
2023, with a record date of September
29, 2023.
E-L Corporate
E-L Corporate reported a net income of $185 million for the second quarter of 2023
compared to a net loss of $473
million for the comparative period in 2022. The increase in
earnings was due to a net gain on investments of $212 million in 2023 compared to a net loss of
$697 million for the second quarter
of 2022. E-L Corporate's global investment portfolio had a pre-tax
total return, including dividend income, of 4% in the second
quarter 2023 compared to a pre-tax total return of negative 12% for
the comparative period in the prior year.
E-L Corporate reported a net income of $438 million for the first six months of 2023
compared to a net loss of $747
million for the comparative period in 2022. The increase in
earnings was due to a net gain on investments of $535 million in 2023 compared to a net loss of
$1,159 million in 2022. E-L
Corporate's global investment portfolio had a pre-tax total return,
including dividend income, of 11% in the first six months of 2023
compared to a pre-tax total return of negative 19% for the same
period in the prior year.
Empire Life
Empire Life reported a net loss of $1
million for the second quarter of 2023 compared to a net
loss of $33 million for the second
quarter of 2022. The lower net loss in the second quarter of 2023
compared to 2022 is primarily a result of a more favourable
economic environment.
Empire Life reported a net income of $51
million for the first six months of 2023 compared to
$14 million for the comparable period
in 2022.
Empire Life's Life Insurance Capital Adequacy Test ("LICAT")
total ratio was 151% at June 30, 2023 compared to 152% at
March 31, 2023 and 138% at
December 31, 2022(1), well
above the requirements set by the Office of the Superintendent of
Financial Institutions Canada as well as Empire Life's minimum
internal targets.
|
(1) The
December 31, 2022 LICAT result has not been adjusted for the
impacts from the adoption of IFRS 17 and IFRS 9.
|
CONSOLIDATED SUMMARY OF NET INCOME (LOSS)
(UNAUDITED)
E-L Financial
Consolidated
|
Second
quarter
|
|
Year to
date
|
(millions of
dollars)
|
2023
|
2022
|
|
2023
|
2022
|
|
|
restated
(1)
|
|
|
restated
(1)
|
Contribution to net
income (loss)
|
|
|
|
|
|
E-L
Corporate(2)
|
$
185
|
$
(473)
|
|
$
438
|
$
(747)
|
Empire
Life(2)
|
(1)
|
(33)
|
|
51
|
14
|
Net income
(loss)
|
$
184
|
$
(506)
|
|
$
489
|
$
(733)
|
E-L
Corporate
|
Second
quarter
|
|
Year to
date
|
(millions of
dollars)
|
2023
|
2022
|
|
2023
|
2022
|
|
|
restated
(1)
|
|
|
restated
(1)
|
Net gain (loss) on
investments
|
$
212
|
$
(697)
|
|
$
535
|
$
(1,159)
|
Investment and other
income
|
43
|
35
|
|
81
|
60
|
Share of associates
income
|
9
|
2
|
|
19
|
5
|
|
264
|
(660)
|
|
635
|
(1,094)
|
|
|
|
|
|
|
Expenses
|
10
|
10
|
|
22
|
19
|
Income taxes
|
35
|
(86)
|
|
80
|
(145)
|
Non-controlling
interests
|
34
|
(111)
|
|
95
|
(221)
|
|
79
|
(187)
|
|
197
|
(347)
|
Net income
(loss)
|
$
185
|
$
(473)
|
|
$
438
|
$
(747)
|
Empire
Life
|
Second
quarter
|
|
Year to
date
|
(millions of
dollars)
|
2023
|
2022
|
|
2023
|
2022
|
|
|
restated
(1)
|
|
|
restated
(1)
|
Insurance service
result
|
$
30
|
$
41
|
|
$
74
|
$
82
|
Insurance finance and
investment result
|
(24)
|
(77)
|
|
9
|
(44)
|
Fee and other
income(3)
|
24
|
2
|
|
46
|
3
|
|
30
|
(34)
|
|
129
|
41
|
|
|
|
|
|
|
Expenses
|
25
|
21
|
|
55
|
36
|
Income and other
taxes
|
2
|
(18)
|
|
15
|
(5)
|
Non-controlling
interests and net income (loss) attributable to the participating
account
|
4
|
(4)
|
|
8
|
(4)
|
|
31
|
(1)
|
|
78
|
27
|
Net (loss)
income
|
$
(1)
|
$
(33)
|
|
$
51
|
$
14
|
|
|
|
(1) Amounts
have been restated to reflect the adoption of the IFRS 17 and IFRS
9 accounting standards, refer to note 2 of the interim condensed
consolidated financial statements
|
|
(2) Net
of non-controlling interests and net income attributable to the
participating account
|
|
(3) Included in non-insurance
investment results
|
Non-GAAP Measures
The Company uses non-GAAP measures including net equity value
and growth in net equity value per common share to provide
investors with measures of its operating performance that may not
otherwise be apparent when relying solely on International
Financial Reporting Standards ("IFRS") financial measures. 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. The growth in net equity value per
common share and compounded annual growth in net equity value per
common share is calculated as the change in net equity value per
share for the respective period and includes dividends paid to
common shareholders.
The Company also uses assets under management to provide
investors with supplemental measures of Empire Life's operating
performance and to highlight trends in its core business that may
not otherwise be apparent when relying solely on IFRS financial
measures. The Company also believes that securities analysts,
investors and other interested parties frequently use non-GAAP
measures in the evaluation of issuers.
About E-L Financial
E-L Financial operates as an investment and insurance holding
company. In managing its operations, E-L Financial distinguishes
between two operating segments, E-L Corporate and Empire Life.
E-L Corporate represents investments in stocks and fixed income
securities held directly and indirectly through pooled funds,
closed-end investment companies and other investment companies. The
investment strategy is to accumulate shareholder value through
long-term capital appreciation and dividend and interest income
from its investments.
Empire Life is a subsidiary of E-L Financial. Since 1923, Empire
Life has provided individual and group life and health insurance,
investment and retirement products to Canadians. Empire Life's
mission is to make it simple, fast and easy for Canadians to get
the products and services they need to build wealth, generate
income, and achieve financial security. As of June 30, 2023
Empire Life had total assets under management of $18 billion.
SOURCE E-L Financial Corporation