E-L Financial Corporation Limited Announces December 31, 2011 Year End Financial Results
(firmenpresse) - TORONTO, ONTARIO -- (Marketwire) -- 03/05/12 -- E-L Financial Corporation Limited ("E-L Financial") (TSX: ELF)(TSX: ELF.PR.F)(TSX: ELF.PR.G) reported for the year ended December 31, 2011, consolidated net operating income of $30.3 million or $5.15 per share in 2011 compared with $90.3 million or $20.36 per share in 2010.
The $60.0 million decrease in net operating income in 2011 versus 2010 is principally attributable to a $56.8 million decrease in net operating income for the general insurance operation (The Dominion). The Dominion's decrease in net operating income is due mainly to changes in assumptions made in the fourth quarter actuarial analysis for automobile bodily injury claims provisions. Net operating income for the life insurance operation (Empire Life) continued to be negatively impacted by the low longer term interest rate environment.
Net income (loss)
On a year to date basis, E-L Financial incurred a consolidated net loss of $44.7 million or $13.93 per share compared with net income of $182.7 million or $43.80 per share in 2010.
In addition to the decrease in net operating income described above, 2011 net income was negatively impacted by decreases in the value of equity investments held at E-L Corporate of $88.0 million compared with gains of $57.7 million in 2010, reflecting market turmoil. Decreases in the value of the Company's interest in Economic Investment Trust Limited and United Corporations Limited, partially offset by positive income from Algoma Central Corporation, resulted in a loss from associates for 2011 of $23.9 million compared to income of $27.9 million in 2010.
Comprehensive income (loss)
E-L Financial incurred a consolidated comprehensive loss of $57.8 million or $17.24 per share in 2011 compared with income of $229.2 million or $55.60 per share in 2010. Consolidated Other Comprehensive Loss ("OCL") was $13.1 million or $3.31 per share compared with Consolidated Other Comprehensive Income ("OCI") of $46.5 million or $11.80 per share in 2010.
The $59.6 million decline in OCI compared to the prior year is a result of a decrease in unrealized gains on AFS investments for the year combined with an increase in realized gains being reclassified to net income.
"Our overall results for 2011 reflected challenging market conditions that included a low interest rate environment and increased equity market volatility as a result of global economic uncertainty", said Duncan Jackman, Chairman, President and CEO of E-L Financial. "This affected our insurance subsidiaries through the strengthening of their policy reserves and a decline in the value of our investment portfolio. In light of these challenges, we maintained a strong capital position and continue to focus on the long-term growth and profitability of the company."
Contacts:
E-L Financial Corporation Limited
Mark M. Taylor
Executive Vice-President and Chief Financial Officer
(416) 947-2578
(416) 362-2592 (FAX)
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Datum: 05.03.2012 - 21:07 Uhr
Sprache: Deutsch
News-ID 121806
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TORONTO, ONTARIO
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