Empire Life Insurance Company (Empire Life) has reported a notable turnaround in its financial performance for the third quarter of 2024, posting a common shareholders' net income of $177 million.
This marks a stark contrast to the net loss of $5 million reported for the same period in 2023. The surge in earnings was primarily driven by gains in net investment and insurance finance results, influenced by a more favorable interest rate environment and strategic updates to management assumptions.
Mark Sylvia, president and CEO of Empire Life, said: “The declining interest rate environment contributed to our favourable earnings in the period and bolstered our already strong capital position.
“We launched several new segregated fund products in the quarter and are pleased with the market response. We will continue to invest in the development of our product portfolio and operational capabilities.”
Here are some key financial metrics in Empire Life’s Q3 report:
The quarter saw an increase of $265 million in net investment and insurance finance results compared to Q3 2023. This uptick was attributed to favorable market movements and assumption updates related to insurance contracts. Net investment gains from non-fixed income assets further contributed to the improvement.
Additionally, the net insurance service result rose by $2 million year-over-year, supported by strong performance in the Group Solutions product line, offset by less favorable mortality rates in the Individual Insurance segment.
Despite these positive developments, total other income and expenses remained steady with a net expense of $23 million, matching figures from the previous year.
Sylvia reiterated Empire Life’s commitment to supporting independent financial advisors and enhancing customer solutions for financial protection and investment needs. The company remains focused on expanding its product offerings and strengthening its operational capabilities to sustain growth.
Founded in 1923 and a subsidiary of E-L Financial Corporation Limited, Empire Life offers a range of individual and group insurance, investment, and retirement products. With assets under management totalling $19.6 billion as of September 30, 2024, the company continues to emphasize simplicity and customer-centric service.
