Q1 2025 highlights (compared to Q1 2024)
KINGSTON, ON, April 29, 2025 /CNW/ – Empire Life reported first quarter Common shareholders’ net income of $70 million, an increase of $18 million compared to the first quarter of 2024, driven by an increase in Net investment and insurance finance results in the first quarter of 2025 compared to the same period in 2024, and Net insurance service results which improved over the prior year. These positive results were partly offset by higher workforce costs within Non-insurance operating expenses to support growth and continued investment in the business.
“We’re pleased with our financial results for the first quarter of 2025. Our net income and new sales and deposits in our insurance and investment lines were solid,” says Mark Sylvia, President and Chief Executive Officer. “Our Life Insurance Capital Adequacy Test (LICAT) total ratio also remains strong, in line with our expectations following the implementation of the new LICAT guideline for segregated funds. Our organization will continue to focus our efforts on providing great customer service and supporting the independent financial advisors who sell our products.”
Financial highlights
|
First Quarter |
||
|
(in millions of dollars except per share amounts) |
2025 |
2024 |
|
Common shareholders’ net income (loss) |
$ 70 |
$ 52 |
|
Earnings per share – basic and diluted |
$ 71.11 |
$ 52.86 |
|
Mar 31 |
Dec 31 |
Sep 30 |
Jun 30 |
Mar 31 |
|
|
Other Financial Highlights |
2025 |
2024 |
2024 |
2024 |
2024 |
|
Return on common shareholders’ equity(1) |
18.1 % |
17.4 % |
24.0 % |
12.7 % |
10.4 % |
|
LICAT total ratio |
140 % |
151 % |
154 % |
152 % |
157 % |
|
(1) |
See Non-IFRS measures section. |
The following table provides a summary of Empire Life results for the three months ended March 31, 2025 and 2024.
|
For the three months ended |
||
|
(in millions of dollars) |
March 31, 2025 |
March 31, 2024 |
|
Insurance service result |
||
|
Insurance revenue |
$ 373 |
$ 339 |
|
Insurance service expenses |
(304) |
(282) |
|
Insurance service result |
69 |
57 |
|
Net recovery (expense) from reinsurance contracts held |
(19) |
(18) |
|
Net insurance service result |
50 |
39 |
|
Investment and insurance finance result |
||
|
Investment income (loss), excluding segregated fund account balances |
||
|
Investment income |
165 |
(96) |
|
Change in investment contracts |
(7) |
(2) |
|
Net investment result, excluding segregated fund account balances |
158 |
(98) |
|
Insurance finance income (expense), excluding segregated fund account balances |
||
|
Insurance contracts |
(78) |
149 |
|
Reinsurance contracts held |
— |
4 |
|
Net insurance finance income (expense), excluding segregated fund account balances |
(78) |
153 |
|
Segregated fund account balances net investment and insurance finance result |
||
|
Investment income (loss) on investments for segregated fund account balances |
48 |
442 |
|
Insurance finance income (expenses) segregated fund account balances |
(48) |
(442) |
|
Segregated fund account balances net investment and insurance finance result |
— |
— |
|
Net investment and insurance finance result |
80 |
55 |
|
Other income and expenses |
||
|
Fee and other income |
8 |
7 |
|
Non-insurance expenses |
(36) |
(21) |
|
Interest expenses |
(4) |
(4) |
|
Total other income and expenses |
(32) |
(18) |
|
Net income (loss) before taxes |
98 |
76 |
|
Income taxes |
(24) |
(18) |
|
Net income (loss) after taxes |
74 |
58 |
|
Less: net income (loss) attributable to the participating account |
1 |
3 |
|
Shareholders’ net income (loss) |
73 |
55 |
|
Less: preferred share dividends declared and distributions on other equity instruments |
3 |
3 |
|
Common shareholders’ net income (loss) |
$ 70 |
$ 52 |
Empire Life reported Common shareholders’ net income of $70 million in the first quarter of 2025, an increase of $18 million compared to the first quarter of 2024. The period over period increase was driven by strong Net investment and insurance finance results due to favourable interest rate changes in this period compared to the same period in 2024, as well as improved Net insurance service results in the Individual Insurance product line.