Empire Life Announces September 30, 2015 Interim Financial Results
(firmenpresse) - KINGSTON, ONTARIO -- (Marketwired) -- 11/10/15 -- The Empire Life Insurance Company (Empire Life) today reported third quarter shareholders' net income of $22.2 million for 2015, compared to $24.1 million for 2014. Year to date shareholders' net income was $92.4 million compared to $80.5 million in 2014.
The following table provides a breakdown of the sources of earnings(1) for the third quarter and year to date.
Shareholders' net income and ROE were lower relative to 2014 for the third quarter due to lower profit from the Individual Insurance product line. The decreased profit from this product line primarily resulted from experience losses including a $5.7 million loss from strengthening asset default reserves due to a ratings agency downgrade of Province of Ontario issued debt.
Shareholders' net income and ROE were higher relative to 2014 for the year to date primarily due to growing profit on in-force Wealth Management business and increased earnings on surplus.
The Wealth Management product line's improved result was primarily due to the growth in segregated fund management fees and growth in segregated fund guarantee fees related to guaranteed minimum withdrawal benefit (GMWB) products. Despite the recent drop in stock markets, many of Empire Life's segregated funds have performed well. The improvement in fee income relative to the first nine months of 2014 was primarily due to positive segregated fund net sales in the last 12 months, product price increases and the positive impact of the above mentioned segregated fund performance. Earnings on surplus improved primarily due to increased gains on the sale of bonds.
The impact of new business improved, relative to 2014 primarily due to lower third quarter and year to date segregated fund sales and lower Wealth Management expenses. Experience losses occurred in 2015 primarily related to unfavourable surrender and lapse experience, investment experience and mortality experience, which negatively affected the Individual Insurance product line. In 2014 experience gains and losses netted to low amounts as gains from surrender and lapse experience were offset by losses from downward movement of interest rates which affected the Individual Insurance product line.
The gain from management actions in 2014 resulted from a favourable settlement on a lawsuit which resulted in a gain for Empire Life.
Other Results (compared to third quarter 2014 unless indicated otherwise)
Non-GAAP Measures
The Company uses non-GAAP measures including source of earnings, annualized premium sales, assets under management, mutual fund gross and net sales and segregated fund gross and net sales to provide investors with supplemental measures of its operating performance and to highlight trends in its core business that may not otherwise be apparent when relying solely on International Financial Reporting Standards financial measures. The Company also believes that securities analysts, investors and other interested parties frequently use non-GAAP measures in the evaluation of issuers.
Additional Information
The information contained in this document concerning the third quarter of 2015 is based on the unaudited interim financial results of Empire Life for the period ended September 30, 2015. Additional information about Empire Life can be found in our long-form non-offering prospectus dated August 5, 2015 and our financial filings for the second quarter of 2015. These documents are filed with the Ontario Securities Commission and are available at .
About Empire Life
Empire Life is a subsidiary of E-L Financial Corporation Limited. Since 1923, Empire Life has provided competitive individual and group life and health insurance, investment and retirement to Canadians. Our mission is to make it simple, fast and easy for Canadians to build wealth, generate income and get the insurance and group benefits coverage they need. As of June 30, 2015 Empire Life had total assets under management of $14.2 billion. Follow Empire Life on Twitter (at)EmpireLife or visit our website, for more information.
(1) See non-GAAP Measures
Tweet this: #EmpireLife reports Q3 2015 financial results
Contacts:
Laurie Swinton
Director, Communication Services
613 548-1890, ext. 3374
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 10.11.2015 - 17:00 Uhr
Sprache: Deutsch
News-ID 433489
Anzahl Zeichen: 5232
contact information:
Town:
KINGSTON, ONTARIO
Kategorie:
Insurance
Diese Pressemitteilung wurde bisher 272 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Empire Life Announces September 30, 2015 Interim Financial Results"
steht unter der journalistisch-redaktionellen Verantwortung von
The Empire Life Insurance Company (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
