TORONTO, ONTARIO — (Marketwired) — 05/10/13 — 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, 2013, consolidated net operating income(1) of $21.4 million or $4.47 per share(2) compared with $45.1 million or $10.83 per share in 2012.
The $23.7 million decrease in net operating income in 2013 versus 2012 is principally attributable to the general insurance operation (“The Dominion”) which reported a $17.4 million decrease in net operating income in the first quarter resulting mainly from higher claims expense for automobile and weather-related personal property losses, partly offset by lower claims expense for commercial property. The life insurance operation-s (“Empire Life”) net operating income decreased $4.4 million due to the unfavourable impact of long-term interest rate movements on the Individual Insurance product line in 2013 compared to a favourable impact in 2012.
Net income
E-L Financial earned consolidated net income of $146.0 million or $36.20 per share for the first three months of 2013 compared with $155.9 million or $39.02 per share in 2012.
In addition to the decrease in net operating income described above, income from associates decreased $28.6 million, as income from United Corporations Limited (“United”) in 2013 is now reported on a consolidated basis versus as income from associates in 2012. Offsetting the declines for the period, fair value through profit or loss (“FVTPL”) investments held at E-L Corporate increased $113.6 million compared to $70.3 million in 2012 reflecting an increase of $43.9 million in United-s investments.
Comprehensive income
E-L Financial earned consolidated comprehensive income of $197.5 million or $49.30 per share for the first three months of 2013 compared to $165.7 million or $41.51 per share in 2012. Consolidated other comprehensive income (“OCI”) was $51.4 million or $13.10 per share compared with $9.8 million or $2.49 per share in 2012. The improvement in OCI for the quarter reflected a larger unrealized fair value increase on available for sale investments compared to the prior period.
E-L Financial-s net equity value per Common Share (1) at March 31, 2013 was $790.90.
“The first quarter reflected insurance operation results that were lower relative to the same period in the prior year, offset by an increase in the investment portfolio primarily driven by continued momentum in global equity markets,” said Duncan Jackman, Chairman, President and CEO of E-L Financial.
CONSOLIDATED SUMMARY OF COMPREHENSIVE INCOME
Contacts:
E-L Financial Corporation Limited
Mark M. Taylor
Executive Vice-President and Chief Financial Officer
(416) 947-2578
(416) 362-2592 (FAX)