Empire Life reports second quarter results

Jul 30 2025 20:34 BST

Q2 2025 highlights (compared to Q2 2024)

Common shareholders' net income of $32 million (compared to net income of $35 million)
Earnings per share (basic and diluted) of $32.66 (compared to $35.94)

KINGSTON, ON , July 30, 2025 /CNW/ - The Empire Life Insurance Company (Empire Life) reported second quarter Common shareholders' net income of $32 million, a decrease of $3 million compared to the second quarter of 2024. The decrease was driven by a lower Net investment and insurance finance result and a decrease in Fee and other income. These decreases were slightly offset by an improved Net insurance service result, related to favourable mortality experience in the Individual Insurance segment and improved claims experience in Group Solutions.

"We remain focused on responsible capital and liquidity management to ensure the efficient use of resources and drive shareholder value," says Mark Sylvia, President and Chief Executive Officer. "Our focus on financial stability is reflected in our recent upgraded ratings from DBRS Morningstar to A (high) from A thanks in part to our diversified earnings power and access to distribution."

Financial highlights

	Second Quarter		Year to Date
(in millions of dollars except per share amounts)	2025	2024	2025	2024
Common shareholders' net income (loss)	$ 32	$ 35	$ 102	$ 87
Earnings per share - basic and diluted	$ 32.66	$ 35.94	$ 103.76	$ 88.80

	Jun 30	Mar 31	Dec 31	Sep 30	Jun 30
Other Financial Highlights	2025	2025	2024	2024	2024
Return on common shareholders' equity⁽¹⁾	17.6 %	18.1 %	17.4 %	24.0 %	12.7 %
LICAT total ratio	142 %	140 %	151 %	154 %	152 %

⁽¹⁾	See Non-IFRS measures section.

The following table provides a summary of Empire Life results for the three and six months ended June 30, 2025 and 2024.

	For the three months ended		For the six months ended
(in millions of dollars)	June 30, 2025	June 30, 2024	June 30, 2025	June 30, 2024

Insurance service result
Insurance revenue	$ 379	$ 351	$ 752	$ 690
Insurance service expenses	(306)	(299)	(610)	(581)
Insurance service result	73	52	142	109
Net recovery (expense) from reinsurance contracts held	(14)	(9)	(34)	(28)
Net insurance service result	59	43	108	81

Investment and insurance finance result
Investment income (loss), excluding segregated fund account balances
Investment income	(69)	75	97	(21)
Change in investment contracts	(4)	(5)	(12)	(7)
Net investment result, excluding segregated fund account balances	(73)	70	85	(28)
Insurance finance income (expense), excluding segregated fund account balances
Insurance contracts	86	(44)	8	105
Reinsurance contracts held	5	2	5	6
Net insurance finance income (expense), excluding segregated fund account balances	91	(42)	13	111
Segregated fund account balances net investment and insurance finance result
Investment income (loss) on investments for segregated fund account balances	408	17	456	459
Insurance finance income (expenses) segregated fund account balances	(408)	(17)	(456)	(459)
Segregated fund account balances net investment and insurance finance result	—	—	—	—
Net investment and insurance finance result	18	28	98	83

Other income and expenses
Fee and other income	9	15	17	23
Non-insurance expenses	(33)	(32)	(69)	(54)
Interest expenses	(5)	(4)	(9)	(8)
Total other income and expenses	(29)	(21)	(61)	(39)

Net income (loss) before taxes	48	50	145	125
Income taxes	(9)	(10)	(32)	(27)
Net income (loss) after taxes	39	40	113	98
Less: net income (loss) attributable to the participating account	4	2	5	5
Shareholders' net income (loss)	35	38	108	93
Less: preferred share dividends declared and distributions on other equity instruments	3	3	6	6
Common shareholders' net income (loss)	$ 32	$ 35	$ 102	$ 87

Empire Life reported Common shareholders' net income of $32 million in the second quarter of 2025, a decrease of $3 million compared to the second quarter of 2024. The period over period decrease was driven by less favourable Net investment and insurance finance results as well as an increase in Total other expenses when compared to the same period in 2024.

Net insurance service result increased by $16 million in the second quarter compared to the same period in 2024. The period-over-period change was primarily related to improved mortality experience in the Individual Insurance segment in addition to more favourable long-term disability claims experience in the Group Solutions segment relative to the second quarter of 2024.

Net investment and insurance finance result decreased by $10 million in the second quarter of 2025 compared to the same period in 2024 due to the moderately unfavourable effect of interest rate increases in the current period compared to interest rate movements in the second quarter in 2024.

Total other expenses were $29 million in the second quarter compared to $21 million in the same period in 2024. The $8 million increase was primarily related to gains recognized during the comparative quarter within Fee and other income in the Capital and Surplus segment, related to the disposal of Property and equipment.

The Company's Life Insurance Capital Adequacy Test Total ratio was 142% at June 30, 2025, well above the requirements set by the Office of the Superintendent of Financial Institutions, Canada as well as Empire Life's internal targets.

Non-IFRS measures

Empire Life uses non-IFRS 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 financial measures as defined in IFRS Accounting Standards. Empire Life also believes that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers. Empire Life's management also uses non-IFRS measures to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and to determine components of management compensation. Empire Life believes that these measures provide information useful to its shareholders and policyholders in evaluating the Company's underlying financial results. Further information on these non-IFRS 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 June 30, 2025. Additional information about Empire Life can be found in Empire Life's latest MD&A 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 provide expertise and intelligent solutions to help Canadians navigate life with confidence. As of June 30, 2025, Empire Life had total assets under management of $19.7 billion. Follow us on social media @EmpireLife or visit www.empire.ca for more information.

SOURCE The Empire Life Insurance Company