Empire Life increases earnings by 80% in 2024

In the fourth quarter of 2024, Empire Life Insurance Company reported net income attributable to common shareholders of $16 million, compared with $111 million for the same period a year earlier.

For the full year, Empire Life reported net income attributable to common shareholders of $281 million in 2024, compared to $156 million in 2023, representing a year-over-year increase of 80%.

With regard to the decline in earnings in the fourth quarter, the company explains that this was due to substantial investment income in the fourth quarter of 2023, which was not repeated in 2024.

For the full year, the increase in earnings “was driven by favourable net investment and insurance finance results due to more favourable interest rate movements and the impacts of insurance contract liability assumption updates,” stated Empire Life in its press release issued on Feb. 27. Its Management Discussion and Analysis was made public on March 4.

President and CEO, Mark Sylvia, expressed his satisfaction with “the early success of our new suite of segregated fund portfolios and the launch of the First Home Savings Account.”

Investment income  

The net investment result, excluding segregated fund account balances, was $34 million in the fourth quarter of 2024, compared with net income of $944 million in the fourth quarter of 2023.

For the full year, the net investment result, excluding segregated fund account balances, was $489 million, compared with $789 million in 2023.

Insurance income  

The net insurance service result was $33 million in the fourth quarter of 2024, compared to $48 million in the fourth quarter of the previous year.

In more detail for the fourth quarter of 2023, Empire Life reported a net insurance service result of $25 million in wealth management and $9 million in individual insurance. In group insurance, there was instead a net loss of $1 million.

For the full year, the net insurance service result was $176 million in 2024, compared to $181 million in 2023.

The company explains this decrease primarily by adverse claims experience in its Individual Insurance and Group Solutions product lines. These factors were partially offset by improved expense experience in its wealth management product line. 

In more detail by business segment, the net insurance result was $104 million in wealth management, compared to $88 million in 2023.

In individual insurance, the net insurance result totaled $57 million in 2024, compared to $69 million a year earlier.

In group insurance, the net insurance result was $15 million in 2024, compared to $24 million in 2023. 

According to the company’s fourth quarter MD&A, assets under management were $19.7 billion as of Dec. 31, 2024, compared to $18.7 billion a year earlier. The LICAT total ratio was 151% as of Dec. 31, 2024, exceeding regulatory requirements and the company’s targets.