E-L Financial is increasing its stake in the holding company that owns Empire Life.
E-L Financial, the firm which owns Kingston-based Empire Life insurance company, has agreed to buy Guardian Assurance Limited's 19% share in the E-L Financial Services Limited (ELFS) holding company. This means that E-L Financial will now own 100% of ELFS, which owns 98.3% of Empire Life.
The transaction will close next week, at a purchase price of approximately book value or $200 million. Shares of E-L Financial Corporation Ltd. increased after the announcement was made, going from $675 to $680 on Dec. 11.
"For years, Empire Life has been an important long-term investment for E-L Financial," comments E-L Financial's chairman and CEO Duncan Jackman. "We are very excited about being able to increase our stake in this great company and reinforce our continued commitment to its ongoing success." Jackman also acknowledged the "strong contribution" Guardian had made to Empire Life.
