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 )
"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
Financial highlights
|
First Quarter |
|
(in millions of dollars except per share amounts) |
2024 |
2023 |
Common shareholders' net income (loss) |
$ 52 |
$ 52 |
Earnings per share - basic and diluted |
$ 52.86 |
$ 52.66 |
|
|
|
|
|
|
Other Financial Highlights |
2024 |
2023 |
2023 |
2023 |
2023 |
Return on common shareholders' equity(1) |
10.4 % |
10.5 % |
3.9 % |
6.6 % |
4.4 % |
LICAT total ratio |
157 % |
155 % |
152 % |
151 % |
152 % |
(1) See Non-GAAP Measures section. |
The following table provides a summary of Empire Life results for the three months ended
|
For the three months ended |
|
(in millions of dollars) |
|
|
|
|
|
Insurance service result |
|
|
Insurance revenue |
$ 339 |
$ 326 |
Insurance service expenses |
(282) |
(267) |
Insurance service result |
57 |
59 |
Net recovery (expense) from reinsurance contracts held |
(18) |
(15) |
Net insurance service result |
39 |
44 |
|
|
|
Investment and insurance finance result |
|
|
Investment income (loss), excluding segregated fund account balances |
|
|
Investment income |
(96) |
320 |
Change in investment contracts(1) |
(2) |
(10) |
Net investment result, excluding segregated fund account balances |
(98) |
310 |
Insurance finance income (expense), excluding segregated fund account balances |
|
|
Insurance contracts |
149 |
(254) |
Reinsurance contracts held |
4 |
(9) |
Net insurance finance income (expense), excluding segregated fund account balances |
153 |
(263) |
Segregated fund account balances net investment and insurance finance result |
|
|
Investment income (loss) on investments for segregated fund account balances |
442 |
281 |
Insurance finance income (expenses) segregated fund account balances |
(442) |
(281) |
Segregated fund account balances net investment and insurance finance result |
— |
— |
Net investment and insurance finance result |
55 |
47 |
|
|
|
Other income and expenses |
|
|
Fee and other income(1) |
7 |
7 |
Non-insurance expenses |
(21) |
(23) |
Interest expenses(1) |
(4) |
(5) |
Total other income and expenses |
(18) |
(21) |
|
|
|
Net income (loss) before taxes |
76 |
70 |
Income taxes(1) |
(18) |
(13) |
Net income (loss) after taxes |
58 |
57 |
Less: net income (loss) attributable to the participating account |
3 |
2 |
Shareholders' net income (loss) |
55 |
55 |
Less: preferred share dividends declared and distributions on other equity instruments(1) |
(3) |
(3) |
Common shareholders' net income (loss) |
$ 52 |
$ 52 |
(1) Prior year amounts have been revised from those previously presented. |
Empire Life reported first quarter common shareholders' net income of
Net insurance service result decreased
Net investment and insurance finance result increased
Total other income and expenses changed by
The company's Life Insurance Capital Adequacy Test (LICAT) Total ratio was 157% at
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
About Empire Life
Established in 1923 and a subsidiary of
SOURCE The