Empire Life reports third quarter results
Q3 2025 highlights (compared to Q3 2024)
- Common shareholders' net income of $93 million (compared to net income of $177 million)
- Earnings per share (basic and diluted) of $94.60 (compared to $179.88)
KINGSTON, ON, Oct. 30, 2025 /CNW/ - The Empire Life Insurance Company (Empire Life) reported third quarter Common shareholders' net income of $93 million. This strong result reflected a solid Net investment and insurance finance result, due to positive impacts from interest rate movements. While Common shareholders' net income decreased $84 million compared to the third quarter of 2024, this is primarily attributable to an even more favourable Net investment and insurance finance result in the comparative period. In addition to this, the impacts of assumption updates were more favourable in the third quarter of 2024 than in the current period.
"In our third quarter, we experienced solid growth in our new sales and deposits within our insurance and investment lines. Our segregated fund assets have seen steady growth, surpassing $10 billion this quarter," says Mark Sylvia, President and Chief Executive Officer. "Our Life Insurance Capital Adequacy Test (LICAT) ratio also remains very strong due to our robust capital base."
Financial highlights
Third Quarter | Year to Date | |||
(in millions of dollars except per share amounts) | 2025 | 2024 | 2025 | 2024 |
Common shareholders' net income (loss) | $ 93 | $ 177 | $ 195 | $ 265 |
Earnings per share - basic and diluted | $ 94.60 | $ 179.88 | $ 198.36 | $ 268.68 |
Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | |
Other Financial Highlights | 2025 | 2025 | 2025 | 2024 | 2024 |
Return on common shareholders' equity(1) | 12.3 % | 17.6 % | 18.1 % | 17.4 % | 24.0 % |
LICAT total ratio | 145 % | 142 % | 140 % | 151 % | 154 % |
(1) See Non-IFRS measures section. |
The following table provides a summary of Empire Life results for the three and nine months ended September 30, 2025 and 2024.
For the three months ended | For the nine months ended | |||
(in millions of dollars) | September 30, 2025 | September 30, 2024 | September 30, 2025 | September 30, 2024 |
Insurance service result | ||||
Insurance revenue | $ 386 | $ 357 | $ 1,138 | $ 1,048 |
Insurance service expenses | (333) | (271) | (942) | (852) |
Insurance service result | 53 | 86 | 196 | 196 |
Net recovery (expense) from reinsurance contracts held | (10) | (24) | (44) | (53) |
Net insurance service result | 43 | 62 | 152 | 143 |
Investment and insurance finance result | ||||
Investment income (loss), excluding segregated fund account balances | ||||
Investment income | 222 | 502 | 319 | 481 |
Change in investment contracts | (10) | (19) | (22) | (25) |
Net investment result, excluding segregated fund account balances | 212 | 483 | 297 | 456 |
Insurance finance income (expense), excluding segregated fund account balances | ||||
Insurance contracts | (93) | (289) | (85) | (184) |
Reinsurance contracts held | (5) | 25 | 1 | 30 |
Net insurance finance income (expense), excluding segregated fund account balances | (98) | (264) | (84) | (154) |
Segregated fund account balances net investment and insurance finance result | ||||
Investment income (loss) on investments for segregated fund account balances | 585 | 609 | 1,042 | 1,068 |
Insurance finance income (expenses) segregated fund account balances | (585) | (609) | (1,042) | (1,068) |
Segregated fund account balances net investment and insurance finance result | — | — | — | — |
Net investment and insurance finance result | 114 | 219 | 213 | 302 |
Other income and expenses | ||||
Fee and other income | 10 | 8 | 27 | 31 |
Non-insurance expenses | (31) | (27) | (101) | (81) |
Interest expenses | (4) | (4) | (13) | (12) |
Total other income and expenses | (25) | (23) | (87) | (62) |
Net income (loss) before taxes | 132 | 258 | 278 | 383 |
Income taxes | (31) | (72) | (64) | (100) |
Net income (loss) after taxes | 101 | 186 | 214 | 283 |
Less: net income (loss) attributable to the participating account | 5 | 6 | 10 | 10 |
Shareholders' net income (loss) | 96 | 180 | 204 | 273 |
Less: preferred share dividends declared and distributions on other equity instruments | 3 | 3 | 9 | 8 |
Common shareholders' net income (loss) | $ 93 | $ 177 | $ 195 | $ 265 |
The drivers of our reported Common shareholders' net income are Net insurance service result, Net investment and insurance finance result, and Total other income (expense). Below is a summary of the movements in these balances during the quarter.
- Net insurance service result decreased by $19 million in the third quarter compared to the same period in 2024. This was driven by the contrast between the favourable impact of assumption updates in the Group Solutions results in the third quarter of 2024, and the unfavourable impact of assumption updates in the Individual Insurance segment in the current quarter.
- Net investment and insurance finance result decreased by $105 million in the third quarter of 2025 compared to the same period in 2024. This comparison reflects less favourable interest rate movements this quarter, and the absence of the favourable impacts of assumption updates that were recognized in the third quarter of the prior year, even as the current quarter's results remained strong.
- Total other expenses were $25 million in the third quarter compared to $23 million in the same period in 2024. The $2 million change was related to an increase in Non-insurance expenses, primarily related to investments in information systems and process efficiency, and higher activity in our non-insurance distribution channels.
The Company's Life Insurance Capital Adequacy Test Total ratio was 145% at September 30, 2025, well above the requirements set by the Office of the Superintendent of Financial Institutions, Canada as well as Empire Life's internal targets.
Non-IFRS measures
Empire Life uses non-IFRS measures including return on common shareholders' equity, assets under management, annualized premium sales, gross and net sales for segregated funds and fixed annuities to provide investors with supplemental measures of its operating performance and to highlight trends in its core business that may not otherwise be apparent when relying solely on financial measures as defined in IFRS Accounting Standards. Empire Life also believes that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers. Empire Life's management also uses non-IFRS measures to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and to determine components of management compensation. Empire Life believes that these measures provide information useful to its shareholders and policyholders in evaluating the Company's underlying financial results. Further information on these non-IFRS measures can be found in Empire Life's latest Management's Discussion & Analysis (MD&A), filed on Empire Life's profile available at www.sedarplus.ca.
Additional information
All amounts are in Canadian dollars and are based on the consolidated financial results of Empire Life for the period ended September 30, 2025. Additional information about Empire Life can be found in Empire Life's latest MD&A and Annual Information Form. These documents are filed on Empire Life's profile available at www.sedarplus.ca.
About Empire Life
Established in 1923 and a subsidiary of E-L Financial Corporation Limited, Empire Life provides individual and group life and health insurance, investment and retirement products. The Company's mission is to provide expertise and intelligent solutions to help Canadians navigate life with confidence. As of September 30, 2025,
Empire Life had total assets under management of $20.5 billion. Follow us on social media @EmpireLife or visit www.empire.ca for more information.
SOURCE The Empire Life Insurance Company