Empire Life reports higher profit in Q3

Profits increased for Kingston, Ont.-based Empire Life Insurance Company in the third quarter.

Empire Life reported common shareholders’ net income of $51 million in Q3, up from $48 million the previous quarter and $35 million in Q3 2019.

The increase was attributed to the “favourable” impact of changes in the investments supporting Empire’s individual insurance line, although that impact was partially offset by increases in policy liabilities for segregated fund guarantees, according to a release.

“We are pleased that we have been able to maintain the earnings momentum that we experienced in the second quarter of this year,” Mark Sylvia, president and CEO of Empire Life, said in a statement. “We continue to manage our assets prudently in a challenging low interest rate environment.”

Empire Life reported that the expected profit on its in-force insurance business rose by 15% in Q3 and by 12% on a year-to-date basis.

New business strain was lower across all business lines during the quarter. Strain from individual insurance was positive in Q3 and has been positive on a year-to-date basis due to lower sales in 2020.

Experience losses increased in Q3 and year-to-date due to strengthened policy liabilities to support segregated fund guarantees.

So far this year, Empire Life has recorded net income attributable to common shareholders of $67 million, down from $98 million in the first three quarters of 2019.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.