For the first quarter of 2023, The Empire Life Insurance Company reported common shareholders’ net income of $52 million (M$), compared to net income in Q1 2022 of $47 million, adjusted for IFRS 17.
This increase mainly results from a more neutral economic environment than last year, President and CEO Mark Sylvia notes, adding that he is very pleased with the results announced on May 9.
“While the market and interest rates continue to influence performance across the industry, the ongoing hard work and adaptability of our employees and distribution partners allow us to continue to deliver on our promises to our customers and shareholders,” Sylvia says.
Net investment income was $33 million in the first quarter of 2023; the same adjusted amount was reported as the net investment result for Q1 2022.
Looking at investment income in detail, Empire Life reported losses of $23 million in wealth management and gains of $6 million in individual insurance and $50 million in capital management for the first quarter of 2023.
The net insurance service result was $44 million in the first quarter of 2023, compared with $41 million for Q1 2022. This represents an increase of 8 per cent.
Empire Life attributes this upswing to improved long-term disability insurance experience and growth in Group Solutions.
Looking at the results in closer detail, for the first quarter of 2023 Empire Life reported net insurance income of $28 million in Wealth Management, $1 million in Group Solutions and $15 million in Individual Insurance.
In Wealth Management, gross annuity sales reached $45 million in the first quarter of 2023, up from $23 million in Q1 2022.
In Group Solutions, annualized premiums totalled $18 million in the first quarter of 2023, compared with $22 million in Q1 2022.
The company no longer discloses results for a number of headings that previously appeared in its financial statements. One example is the amount of total net premiums and their distribution among the various segments. The same is true for benefits and claims, in terms of the total amount and the amounts distributed between the same business segments mentioned above.
Founded in 1923, Empire Life managed total assets of $18 billion at March 31, 2023.