TORONTO, Nov. 7,
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 $1,791.68 as at
September 30, 2023, an increase of 0.3% compared to
$1,785.66 as at December 31,
2022 and a decrease of 1.5% compared to $1,819.34 as at June 30,
2023.
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 6.3% for the
first nine months of 2023.
For the third quarter ended September 30, 2023, E-L
Financial reported a consolidated net loss of $57 million or $17.73 per common share compared to a net income
of $31 million or $7.59 per common share for the same period in
2022. For the first nine months ended September 30, 2023, E-L
Financial reported a consolidated net income of $432 million or $121.42 per common share compared to a net loss
of $702 million or $199.23 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 January 17,
2024, with a record date of December
29, 2023.
E-L Corporate
E-L Corporate reported a net loss of $52
million for the third quarter ended September 30, 2023
compared to a net loss of $5 million
in 2022. The increase in the net loss was due to higher losses from
the global investment portfolio of $103
million in 2023 compared to $60
million for the second quarter of 2022. E-L Corporate's
global investment portfolio had a pre-tax total return, including
dividend income, of negative 1% for the third quarter of 2023
compared to a pre-tax total return of nil for the same period in
the prior year.
E-L Corporate reported net income of $386
million for the first nine months of 2023 compared to a net
loss of $751 million in 2022. The
increase in earnings was due to a net gain on investments of
$431 million in 2023 compared to a
net loss of $1,218 million for the
comparative period in 2022. E-L Corporate's global investment
portfolio had a pre-tax total return, including dividend income, of
9% in the first nine months of 2023 compared to a pre-tax total
return of negative 18% for the same period in the prior year.
Empire Life
Empire Life reported a net loss of $5
million for the third quarter of 2023 compared to a net
income of $36 million for the third
quarter of 2022. The decline in third quarter earnings over prior
year was primarily due to lower net investment and insurance
finance results driven by a less favourable economic
environment.
Empire Life reported a net income of $46
million for the first nine months of 2023 compared to
$49 million for the comparable period
in 2022.
Empire Life's Life Insurance Capital Adequacy Test ("LICAT")
total ratio was 152% at September 30, 2023 compared to 151% at
June 30, 2023 and 152% 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 (LOSS) INCOME
(UNAUDITED)
|
E-L Financial
Consolidated
|
Third
quarter
|
|
Year to
date
|
|
(millions of
dollars)
|
2023
|
2022
|
|
2023
|
2022
|
|
|
restated
(1)
|
|
|
restated
(1)
|
|
Contribution to net
(loss) income
|
|
|
|
|
|
|
E-L
Corporate(2)
|
$
(52)
|
$
(5)
|
|
$
386
|
$
(751)
|
|
Empire
Life(2)
|
(5)
|
36
|
|
46
|
49
|
|
Net (loss)
income
|
$
(57)
|
$
31
|
|
$
432
|
$
(702)
|
|
|
|
|
|
|
|
|
|
E-L
Corporate
|
Third
quarter
|
|
Year to
date
|
|
(millions of
dollars)
|
2023
|
2022
|
|
2023
|
2022
|
|
|
restated
(1)
|
|
|
restated
(1)
|
|
Net (loss) gain on
investments
|
$
(103)
|
$
(60)
|
|
$
431
|
$
(1,218)
|
|
Investment and other
income
|
29
|
33
|
|
111
|
93
|
|
Share of associates
income
|
4
|
31
|
|
23
|
36
|
|
(70)
|
4
|
|
565
|
(1,089)
|
|
|
|
|
|
|
|
Expenses
|
9
|
10
|
|
32
|
28
|
|
Income taxes
|
(5)
|
—
|
|
75
|
(145)
|
|
Non-controlling
interests
|
(22)
|
(1)
|
|
72
|
(221)
|
|
(18)
|
9
|
|
179
|
(338)
|
|
Net (loss)
income
|
$
(52)
|
$
(5)
|
|
$
386
|
$
(751)
|
|
|
|
|
|
|
|
|
|
Empire
Life
|
Third
quarter
|
|
Year to
date
|
|
(millions of
dollars)
|
2023
|
2022
|
|
2023
|
2022
|
|
|
restated
(1)
|
|
|
restated
(1)
|
|
Insurance service
result
|
$
60
|
$
53
|
|
$
134
|
$
135
|
|
Net investment and
insurance finance result
|
(46)
|
8
|
|
(6)
|
(42)
|
|
Fee and other
income(3)
|
8
|
7
|
|
21
|
16
|
|
22
|
68
|
|
149
|
109
|
|
|
|
|
|
|
|
Expenses
|
32
|
21
|
|
85
|
58
|
|
Income and other
taxes
|
(4)
|
10
|
|
11
|
5
|
|
Non-controlling
interests and net (loss) income
attributable to the participating account
|
(1)
|
1
|
|
7
|
(3)
|
|
27
|
32
|
|
103
|
60
|
|
Net (loss)
income
|
$
(5)
|
$
36
|
|
$
46
|
$
49
|
|
(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 September 30,
2023 Empire Life had total assets under management of $17 billion.
SOURCE E-L Financial Corporation