E-L Financial Corporation Limited Announces June 30, 2009 Interim Financial Results

• Press Release
• Source: E-L Financial Corporation Limited
• On 12:42 pm EDT, Tuesday August 4, 2009

TORONTO, ONTARIO--(Marketwire - Aug. 4, 2009) - E-L Financial Corporation Limited ("E-L Financial") (TSX:ELF - News; TSX:ELF.PR.F - News; TSX:ELF.PR.G - News) today reported that for the quarter ended June 30, 2009, it earned net operating income(1) of $4.3 million or $0.55 per share compared with $39.1 million or $10.97 per share in 2008. On a year to date basis, E-L Financial earned net operating income of $38.8 million or $10.18 per share compared with $33.3 million or $8.51 per share in 2008.

Related Quotes

Symbol	Price	Change
ELF.TO	470.00	0.00

{"s" : "elf.to","k" : "c10,l10,p20,t10","o" : "","j" : ""}

Total net income for the quarter was $73.9 million or $21.50 per share compared with $38.7 million or $10.88 per share for the comparable period last year. Corporate Investment's net income for the quarter increased $34 million from the comparable quarter due to improved stock market performance resulting in Economic Investment Trust Limited, which became an equity method investment during the quarter, and United Corporations Limited increasing in value by $38.0 million, after tax, compared with $2 million in 2008. Life Insurance operations experienced a decrease in net income compared with the same period in 2008 due to lower future investment returns on assets acquired during the second quarter of 2009. The General Insurance operation reported higher realized gains on the sale of investments which offset declines in underwriting results and investment income.

On a year to date basis, E-L Financial had a net loss of $59.8 million or $19.50 per share compared with net income of $17.3 million or $3.68 per share in 2008. Corporate Investment's equity method investments increased in value by $16.9 million, after tax, compared with a decrease of $16.6 million in 2008. The Life Insurance operation experienced an overall increase in year to date earnings mainly due to the favourable impact in the first quarter of amendments to the Income Tax Act related to Financial Instruments. The General Insurance operation incurred a loss in 2009 mainly due to a net realized loss on the sale of investments and deterioration in underwriting results.

The following table summarizes the results of the Company's business segments:

                              Six months ended  June 30, 2009
                                   (thousands of dollars)
                 -----------------------------------------------------------
                   Corporate           General           Life
                 Investments         Insurance      Insurance         Total
                 -----------   ---------------   ------------  -------------
Revenue          $    25,024   $       406,943   $    634,162  $  1,066,129
                 -----------   ---------------   ------------  -------------
                 -----------   ---------------   ------------  -------------
Net income
 (loss):
 Operating
  income
  (loss)         $     7,593   $       (10,998)  $     42,251    $   38,846
 Realized loss
  on
  available
  for sale
  investments            (12)         (113,566)        (1,985)     (115,563)
 Income from
  equity
  method
  investment          16,927                 -              -        16,927
                 -----------   ---------------   ------------  -------------
                 $    24,508   $      (124,564)  $     40,266    $  (59,790)
                 -----------   ---------------   ------------  -------------
                 -----------   ---------------   ------------  -------------


                              Six months ended  June 30, 2008
                                   (thousands of dollars)
                 -----------------------------------------------------------
                   Corporate           General           Life
                 Investments         Insurance      Insurance         Total
                 -----------   ---------------   ------------  -------------
Revenue          $   (11,679)  $       561,750   $    413,272    $  963,343
                 -----------   ---------------   ------------  -------------
                 -----------   ---------------   ------------  -------------
Net income
 (loss):
 Operating
  income         $     9,150   $         9,618   $     14,575    $   33,343
 Realized (loss)
  gain on
  available for
  sale
  investments         (3,754)            5,148           (842)          552
 Loss from
  equity
  method
  investment         (16,612)                -              -       (16,612)
                 -----------   ---------------   ------------  -------------
                 $   (11,216)  $        14,766   $     13,733    $   17,283
                 -----------   ---------------   ------------  -------------
                 -----------   ---------------   ------------  -------------

(1)Use of non-GAAP measures

"net operating income (loss)" is net income excluding realized gain (loss) on available for sale investments and income (loss) from the equity method investment, both net of tax. The term net operating income (loss) does not have any standardized meaning according to GAAP and therefore may not be comparable to similar measures presented by other companies. We believe this measure provides information useful to shareholders in evaluating the Company's results.

Mark M. Taylor
E-L Financial Corporation Limited
Executive Vice-President and Chief Financial Officer
(416) 947-2578
(416) 362-0792 (FAX)