Empire Life has released its financial results for the fourth quarter of last year. While profits were down slightly in Q4 compared to the same period in 2014, for the whole of 2015 they are 10% higher than those reported in the previous year.
For the fourth quarter of 2015, Empire reported net income of $16.2 million, down 11% from the $18.2 million earned in Q4 2014. The reduction was due primarily to an unfavourable update of lapse assumptions for the company's individual insurance portfolio. There were also losses in this product line due to unfavourable surrender, lapse and mortality experience.
Seg funds perform well
However, shareholders' net income for all of 2015 came to $108.6 million, which is 10% more than the $98.7 million recorded in 2014. Empire's segregated funds performed well despite the drop in the stock market, and seg fund sales helped generate higher fee income.
"I am very pleased with the strength of our 2015 Wealth Management net income, particularly given the economic environment." said Empire Life’s president and CEO Mark Sylvia. "This more than offsets weaker Individual Insurance net income in 2015 resulting from policy liability assumption updates."