Empire Life reports 71 per cent increase in net income for second quarterpar The IJ Staff | August 03 2018 11:30AM
Empire Life has reported common shareholders’ net income of $57.3 million for the second quarter of 2018, compared to $33.4 million for Q2 2017 – an increase of 71 per cent.
“All three of our product lines have performed well with return on equity at 15.6 per cent for Q2 and 13.2 per cent year to date. In Q1, we implemented the LICAT framework and we continued to have a very strong capital position through the second quarter,” says Mark Sylvia, President and CEO.
Improved operating performance
The spike in earnings for Q2 2018 compared to Q2 2017 “was primarily a result of higher gains realized from management actions, higher investment gains in the Individual Insurance product line and improved operating performance across all product lines,” stated the company.
Empire Life’s year to date common shareholders’ net income was $96.0 million compared to $83.6 million in 2017. “The experience gains for year to date 2018 were mainly due to improved health and long-term disability claims in the Employee Benefits product line, favourable annuitant mortality experience in the Wealth Management product line, and favourable mortality, surrender and lapse experience in the Individual Insurance product line,” says the company.