Empire Life: Net income jumps by 70.7 per cent in 2021

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By Aurélia Morvan | March 29, 2022, 10:39 a.m.

Photo: Freepik

Empire Life’s results were up strongly in 2021 compared to a year earlier.

The insurer reported common shareholders’ net income of $239 million in 2021, versus $140 million in 2020.

This increase in earnings of 70.7 per cent or $99 million is “primarily due to the release of segregated fund guarantee reserves in the first quarter and lower asset trading gains,” the company said in its annual MD&A.

Premiums

Net premiums were $916 million in 2021, compared with $860 million in 2020. Empire Life attributes this increase of 6.5 per cent or $56 million primarily to
“strong sales growth in the Group Solutions and Individual Insurance lines.”

More specifically, net premiums:

Increased by 14 per cent or $50 million in group insurance, to $407 million, “primarily due to improved sales performance and due to premium rebates offered to customers in the first half of 2020”;
Rose by 6.1 per cent or $25 million in individual insurance, to $434 million;
Fell by 21 per cent or $20 million in Wealth Management, to $75 million.

Benefits and claims

Empire Life reported total net benefits and claims of $630 million in 2021, up from $578 million in 2020. This increase of 9 per cent or $52 million was “driven primarily by higher claims activity and unfavourable claims termination experience in the Group Solutions Line,” the insurer says.

Looking at the results in closer detail, benefits and claims increased by 21.7 per cent or $51 million in group insurance and by 2.4 per cent or $4 million in individual insurance. This result was slightly offset by a decline of 1.7 per cent or $3 million in wealth management.