Kingston, Ontario (March 28, 2014) – The Empire Life Insurance Company (Empire Life) today released its 2013 year-end financial results. Empire Life achieved a record level of earnings with an overall shareholders’ net income of $113.3 million compared to $80.2 million in 2012. Results in the Individual Insurance and Wealth Management business lines improved significantly over 2012.
The Individual Insurance product line results were very strong at $66.4 million, an increase of $54.1 million over 2012. Higher long-term interest rates and stock markets in 2013 contributed to these results, along with lower new business strain due to decreased sales and higher prices on long-term products.
The Wealth Management product line results were also very strong at $18.7 million, an increase of $11.4 million from 2012. The increase was due mainly to growth in segregated fund management and guarantee fee income. This improvement in fee income can be partly attributed to strong guaranteed minimum withdrawal benefit (GMWB) sales and the positive impact of improved stock market conditions on management fees earned.
The Employee Benefits product line had weaker results than last year, achieving $8.6 million in net income, compared to last year’s $17.2 million, due primarily to less favourable health claims and long-term disability results.
“I am very pleased with our results in 2013 and the progress we’ve made on our key projects,” said Les Herr, President and Chief Executive Officer. “In particular, I am proud of two initiatives that were industry-leading. We launched Hybrid Solution 100, an adjustable permanent life insurance product and introduced our Fast & FullTM insurance sales process that helps middle-income Canadians get affordable insurance they need faster and easier than ever before.”
- Assets under management (including segregated fund and mutual fund assets) increased 10.8% over 2012 levels to reach $12.0 billion.
- Total premium revenue and fee income increased by 3.5% to reach $971 million.
- Employee Benefit sales increased 18% over 2012 levels, while Wealth Management and Individual Insurance experienced slowing sales. The Wealth Management sales decrease was due to higher GMWB sales volumes in 2012, as some GMWB competitors suspended the sale of GMWB products, removed benefits, or increased fees.
- Shareholders’ Capital and Surplus earnings of $13.8 million were down from $35.7 million in 2012, due mostly to 2012 gains on the sale of equities resulting from a Capital and Surplus asset mix change.
- Participating policyholder net loss (after the payment of dividends) was $3.2 million compared to a $6.6 million loss in 2012. The loss decrease related to improved mortality and lapse experience.
The Empire Life Annual General Meeting will take place on Wednesday April 30, 2014 in Toronto, Ontario. The management proxy information circular and annual report are being mailed in April to shareholders and participating policyholders who request notice of the meeting. The company’s 2013 Annual Report is now available for viewing and download at www.empire.ca.
About Empire Life
A subsidiary of E-L Financial Corporation Limited and in business since 1923, Empire Life helps Canadians build wealth and protect their financial security with competitive individual and group life and health insurance, investment and retirement products. The company’s vision is to be known for simplicity, being easy to do business with, and having a personal touch.
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Director, Communication Services
613 548-1890, ext. 3374