Empire Life has reported common shareholders’ net income of $38.7 million for the first quarter of 2018, a drop from $50.2 million for the same quarter of 2017. Return on common shareholders’ equity was 10.8 per cent for Q1 2018 compared to 15.7 per cent for Q1 2017.
In a May 3 announcement, the company said Q1 2018 earnings for the first quarter of 2018 included growth from expected profit on in-force business in the Individual Insurance product line and higher experience gains in Individual Insurance and Employee Benefits product lines. Empire Life notes that the first quarter of 2017 included gains realized from management actions in the Individual Insurance product line and that these gains were not realized in the first quarter of 2018.
Implemented LICAT framework
“All three of our product lines have performed well with net premiums up four per cent year over year and core earnings in line with our expectations. The first quarter of 2017 included above normal investment gains and gains from asset and liability matching initiatives. This quarter, we have implemented the LICAT framework and we continue to have a very strong capital position,” said Mark Sylvia, President and CEO.
Empire Life’s LICAT total ratio was 177.5 per cent at March 31, 2018 “well above the requirements set by the Office of the Superintendent of Financial Institutions Canada (OSFI) as well as Empire Life’s minimum internal targets,” says the company.
New Chief Financial Officer
Earlier this week, the company also announced the appointment of Senior Vice-President and Chief Actuary Edward Gibson, FSA, FCIA, as its Chief Financial Officer. Gibson replaces Ron Friesen who is leaving the company.
Gibson became Senior Vice-President and Chief Actuary at Empire Life in June 2008. He has been with the company for 30 years during which he has overseen finance, strategy, actuarial, and risk management functions.
“We are pleased to have an experienced and respected leader like Edward to step into the role of CFO to ensure a smooth transition,” says Sylvia, President and Chief Executive Officer. “Edward’s deep knowledge of our business and strategy, and expertise in financial reporting and capital management, including key industry initiatives such as LICAT and IFRS 17, make him a natural choice as we continue to navigate changes in financial reporting in our industry.”