Empire Life has reported net income of $35.2 million for the third quarter of 2018, down from $39.1 million for the same quarter last year.

Net income, year-to-date, was $131.2 million, an increase compared to $122.6 million for the same period of 2017.

In a statement released Oct. 31, Empire Life said the decline in earnings for Q3 2018 “was primarily a result of a $20 million increase in reserves in the Individual Insurance product line to prepare for anticipated changes in assumptions for policyholder behaviour, mortality and other provisions at year-end.”

The decrease was partially offset “by higher gains realized from management actions in the Individual Insurance product line and by improved operating results from the Wealth Management and Employee Benefits product lines,” added the company.

“Our focus on using data, digital platforms and strategic partnerships to expand distribution and deliver on the promises we make to our customers has resulted in solid results across all three of our product lines,” says Mark Sylvia, President and Chief Executive Officer. “And our capital position, as measured by LICAT, continues to be very strong – above both supervisory and internal targets.”

Empire Life’s Life Insurance Capital Adequacy Test (LICAT) total ratio was 164% at September 30, 2018.