E-L Financial Corporation Limited, the parent company of Empire Life, has reported consolidated shareholder’s net loss of $439 million or $123.75 per common share for the second quarter of this year. That’s compared to net income of $241 million or $65.47 per common share in 2021.
For the six months ended June 30, 2022, E-L Financial reported a consolidated net loss of $675 million compared to net income of $707 million in 2021.
The company reported a consolidated comprehensive loss of $524 million in the second quarter of 2022 compared to comprehensive income of $262 million for the second quarter of 2021. Other comprehensive loss ("OCL") was $85 million for the second quarter of 2022 compared to other comprehensive income ("OCI") of $21 million in 2021.
OCL increased in the second quarter of 2022 primarily due to higher unrealized fair value losses on Empire's available for-sale investments, partially offset by a gain on the remeasurement of post-employment defined benefit plans. The loss on these components of OCL was primarily due to increases in interest rates and credit spreads during the second quarter of 2022.
The Empire Life segment reported net income of $34 million in the second quarter of 2022 compared to $31 million for the second quarter of 2021. The increase in second quarter earnings was primarily due to the favourable market impact of a positive yield curve offset by poor equity market performance.