Empire Life started 2022 in a downward spiral.

The insurer reported common shareholders’ net income of $38 million in the first quarter of 2022, versus $154 million in Q1 2021. This drop of 75.8 per cent or $119 million was “primarily a result of a non-recurring release of segregated fund guarantee-related policy liabilities which occurred in the first quarter of 2021.”

Moreover, this lower result is “primarily due to the unfavourable market impact on capital and surplus and lower net income from the Individual Insurance line,” Empire Life explains.

Despite this decrease, Q1 income is in line with that reported by the insurer during the first quarters of 2014 through 2019.

Premiums  

Net premiums were $243 million in Q1 2022, versus $225 million in Q1 2021. This increase of 8 per cent or $18 million was “primarily due to growth in the Group Solutions and Individual Insurance lines.”

More specifically, net premiums:

  • Climbed 13.5 per cent or $13 million in group insurance, to $109 million "primarily from prior growth in the Company's core group benefits offerings.”
  • Advanced by 4.7 per cent or $5 million in individual insurance, to $111 million
  • Stagnated at $23 million in Wealth Management.

Benefits and claims

Empire Life reported total net benefits and claims of $170 million in the first quarter of 2022, compared with $165 million in Q1 2021. This increase of 3 per cent or $5 million, primarily reflects “higher claims in the Individual Insurance and Employee Benefits lines, partially offset by lower surrenders in the fixed annuity component of the Wealth Management line,” says the insurer.

Looking at the results in closer detail, benefits and claims rose by 17.9 per cent or $12 million in group insurance, and by 12.8 per cent or $6 million in individual insurance. This result was offset by a decrease of 24 per cent or $12 million in wealth management. 

Investment 

Empire Life reported investment income of $83 million in the first quarter of 2022, up from $80 million in the first quarter of 2021, for an increase of 3.7 per cent or $3 million.