TORONTO, ONTARIO--(Marketwired - May 12, 2015) - E-L Financial Corporation Limited ("E-L Financial") (TSX:ELF)(TSX:ELF.PR.F)(TSX:ELF.PR.G)(TSX:ELF.PR.H) today reported for the quarter ended March 31, 2015, consolidated net income of $262.1 million or $65.75 per share1 compared with $104.8 million or $25.69 per share in 2014. E-L Financial's net equity value per Common Share2 increased to $1,042.50 at March 31, 2015 from $970.65 as of December 31, 2014.
The $157.3 million increase in net income is mainly due to the positive impact of E-L Corporate's3 global equities during the first quarter of 2015. E-L Corporate's net income increased $150.9 million during the first quarter of 2015 compared to net income of $90.6 million during the first quarter of 2014. The increase is mainly due to net gains on investments of $345.9 million compared to $121.7 million in the prior year.
Empire Life's net contribution to E-L Financial is $20.6 million in the first quarter of 2015 compared to $14.2 million in the first quarter of 2014. The $6.4 million increase in net income is primarily attributable to growth in profits from the Wealth Management business. Empire Life's total revenue increased $119.1 million primarily due to investment gains on bonds from lower interest rates during 2015. This was largely offset by a $112.7 million increase in expenses caused mostly by the impact of changes in interest rates on insurance liabilities.
E-L Financial earned consolidated comprehensive income of $288.4 million or $72.43 per share for the first quarter of 2015 compared with $123.2 million or $30.40 per share in 2014. Consolidated other comprehensive income was $26.3 million for the first quarter of 2015 compared to $18.5 million in 2014. The $7.8 million increase in other comprehensive income is mainly due to an increase in the unrealized gains on investments.
| 1 |
All earnings per share figures are net of dividends paid on First Preference shares. |
| 2 |
Use of non-GAAP measures: |
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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. |
| 3 |
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. |
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| CONSOLIDATED SUMMARY OF COMPREHENSIVE INCOME |
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| E-L Financial Consolidated |
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| (thousands of dollars) |
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Q1 2015 |
|
Q1 2014 |
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| Contribution to net income |
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|
|
|
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| E-L Corporate** |
$ |
241,510 |
$ |
90,599 |
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| Empire Life*** |
|
20,591 |
|
14,162 |
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| Net income |
|
262,101 |
|
104,761 |
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| Other comprehensive income*** |
|
26,251 |
|
18,486 |
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| Comprehensive income |
$ |
288,352 |
$ |
123,247 |
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| SUMMARY OF COMPREHENSIVE INCOME - E-L Corporate and Empire Life |
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| E-L Corporate |
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| (thousands of dollars) |
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Q1 2015 |
|
Q1 2014 |
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| Revenue |
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| Net gains on investments* |
$ |
345,851 |
$ |
121,694 |
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| Investment and other income |
|
22,846 |
|
19,897 |
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| Share of associates income (loss) |
|
1,715 |
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(5,696 |
) |
| |
|
370,412 |
|
135,895 |
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| Expenses |
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| Operating |
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6,034 |
|
5,409 |
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| Income taxes |
|
49,993 |
|
17,013 |
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| Non-controlling interests |
|
72,875 |
|
22,874 |
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| |
|
128,902 |
|
45,296 |
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| Net income |
|
241,510 |
|
90,599 |
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| Other comprehensive income** |
|
15,805 |
|
9,501 |
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| Comprehensive income |
$ |
257,315 |
$ |
100,100 |
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| Empire Life |
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| (thousands of dollars) |
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Q1 2015 |
|
Q1 2014 |
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| Revenue |
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| Net premiums |
$ |
217,574 |
$ |
229,355 |
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| Net gains on investments* |
|
312,822 |
|
191,063 |
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| Investment and other income |
|
112,681 |
|
103,574 |
|
| |
|
643,077 |
|
523,992 |
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| Expenses |
|
|
|
|
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| Benefits and expenses |
|
610,701 |
|
500,200 |
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| Income and other taxes |
|
9,574 |
|
7,112 |
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| Non-controlling interests*** |
|
2,211 |
|
2,518 |
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| |
|
622,486 |
|
509,830 |
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| Net income |
|
20,591 |
|
14,162 |
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| Other comprehensive income*** |
|
10,446 |
|
8,985 |
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| Comprehensive income |
$ |
31,037 |
$ |
23,147 |
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| * |
Fair value change on FVTPL investments and realized gains on AFS investments |
| ** |
Net of non-controlling interests |
| *** |
Net of non-controlling interests, participating policyholders' income (loss) and taxes |