Empire Life reports first quarter results

Q1 2024 highlights (compared to Q1 2023)

Common shareholders’ net income of $52 million (compared to net income of $52 million)Earnings per share (basic and diluted) of $52.86 (compared to $52.66)

KINGSTON, ON, May 3, 2024 /CNW/ – The Empire Life Insurance Company (Empire Life) reported first quarter common shareholders’ net income of $52 million for 2024, which is consistent with the same quarter in  2023. Favourable market-related movements in the period were offset by mortality experience in our individual insurance products.

“Market conditions in the first quarter of 2024 had a positive impact on our earnings and increased our contractual service margin (CSM) balance, outweighing some unfavourable mortality trends,” said Mark Sylvia, President and Chief Executive Officer. “Due to our strong capital and liquidity position, I’m pleased to announce the declaration of an additional dividend of $50.76 per common share, in addition to our usual quarterly dividend.”

Financial highlights

The following table provides a summary of Empire Life results for the three months ended March 31, 2024 and 2023.

Empire Life reported first quarter common shareholders’ net income of $52 million for 2024, which is consistent with the same quarter in 2023. Favourable market-related movements in the period were offset by mortality experience in our individual insurance products.

Net insurance service result decreased $5 million in the first quarter, compared to the same period in 2023, due to unfavourable mortality experience in individual insurance products.

Net investment and insurance finance result increased $8 million in the first quarter compared to the same period in 2023. This was mainly due to larger gains from market movements in 2024 relative to the first quarter in 2023.

Total other income and expenses changed by $3 million in the first quarter compared to the same period in 2023, mainly from timing relating to our subordinated debt redemption and issuance in the first quarter of 2023.

The company’s Life Insurance Capital Adequacy Test (LICAT) Total ratio was 157% at March 31, 2024, well above the requirements set by the Office of the Superintendent of Financial Institutions Canada (OSFI) as well as Empire Life’s minimum internal targets.

Non-GAAP measures

Empire Life uses non-generally accepted accounting principles (non-GAAP) measures, including return on common shareholders’ equity, assets under management, annualized premium sales, gross and net sales for segregated funds and fixed annuities 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 measures prescribed by International Financial Reporting Standards (IFRS Accounting Standards). Empire Life also believes that securities analysts, investors and other interested parties frequently use non-GAAP measures in the evaluation of issuers.  Further information on these non-GAAP measures can be found in Empire Life’s latest Management’s Discussion & Analysis (MD&A), filed on Empire Life’s profile available at www.sedarplus.ca.

Additional information

All amounts are in Canadian dollars and are based on the consolidated financial results of Empire Life for the period ended March 31, 2024. Additional information about Empire Life can be found in Empire Life’s latest Management’s Discussion & Analysis and Annual Information Form. These documents are filed on Empire Life’s profile available at www.sedarplus.ca.

About Empire Life

Established in 1923 and a subsidiary of E-L Financial Corporation Limited, Empire Life provides individual and group life and health insurance, investment and retirement products. The company’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 March 31, 2024, Empire Life had total assets under management of $18.7 billion. Follow us on social media @EmpireLife or visit www.empire.ca for more information.

SOURCE The Empire Life Insurance Company