E-L Financial Corporation Limited Announces June 30, 2012 Interim Financial Results
(firmenpresse) - TORONTO, ONTARIO -- (Marketwire) -- 08/09/12 -- E-L Financial Corporation Limited ("E-L Financial") (TSX: ELF)(TSX: ELF.PR.F)(TSX: ELF.PR.G)(TSX: ELF.PR.H) today reported that for the quarter ended June 30, 2012, consolidated net operating income(1) of $49.2 million or $11.48 per share(2) compared with $23.1 million or $5.23 per share in 2011.
The $26.1 million increase in net operating income for the second quarter of 2012 versus 2011 is principally attributable to a $23.9 million increase in net operating income for the general insurance operation ("The Dominion"). Better underwriting results driven by favourable prior year claims development recorded in the second quarter of 2012 for automobile accident benefits claims and lower claims expense for catastrophe losses contributed to The Dominion's increase. Net operating income for the life insurance operation ("Empire Life") improved $2.8 million primarily due to the favourable impact of changes made to the asset mix to improve the matching of long term liabilities in the Individual Insurance product line.
Consolidated net operating income for the first six months of 2012 was $94.2 million or $22.28 per share compared with $48.2 million or $10.97 per share for the same period in 2011. The $46.0 million increase in net operating income was primarily due to a $35.9 million increase in The Dominion's net operating income for the reasons noted above, combined with lower weather-related property losses. Empire Life's net operating income increased $6.8 million primarily due to the favourable impact of changes made to the asset mix.
Net income (loss)
E-L Financial earned consolidated net income of $28.5 million or $6.21 per share for the second quarter of 2012 compared with a loss of $11.4 million or $3.53 per share in 2011. Net income was favourably impacted by the increase in net operating income, described above, and a $19.7 million decline in the Company's share of losses from associates, partially offset by a $6.0 million increase in E-L Corporate's fair value through profit or loss ("FVTPL") investment losses.
Consolidated net income for the first six months of 2012 was $184.2 million or $45.20 per share compared with $38.8 million or $8.58 per share in 2011. The $145.4 million increase in net income for the period reflects a $58.2 million increase in net income from E-L Corporate's FVTPL investments resulting from favourable market returns, a $43.9 million increase in the Company's share of income from associates and The Dominion's $35.9 million improvement in net operating income.
Comprehensive income (loss)
E-L Financial earned consolidated comprehensive income of $11.7 million or $1.95 per share for the second quarter of 2012 compared with a loss of $10.8 million or $3.38 per share in 2011. Consolidated other comprehensive loss ("OCL") was $16.7 million for the second quarter of 2012 compared with other comprehensive income ("OCI") of $0.6 million in 2011. The $17.3 million decline in OCI for the quarter reflected a larger decline in the unrealized fair value of available for sale investments compared to the prior period.
Consolidated comprehensive income for the first six months of 2012 was $180.3 million or $44.21 per share compared with $35.0 million or $7.62 per share in 2011. Consolidated OCL was $3.9 million for the first six months of 2012 compared with $3.8 million in 2011.
"Macroeconomic headwinds continue to effect the life insurance business, while our general insurance operation benefits from Ontario auto reforms and this showed through in our underwriting results. Equity markets got off to a strong start early in the year but pulled back during the last quarter and dampened results at the corporate level", said Duncan Jackman, Chairman, President and CEO of E-L Financial.
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: 09.08.2012 - 17:25 Uhr
Sprache: Deutsch
News-ID 173392
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