Mr. Scott Ewert reports

E-L FINANCIAL CORPORATION LIMITED ANNOUNCES SEPTEMBER 30, 2023 FINANCIAL RESULTS

E-L Financial Corp. Ltd. had a net equity value per common share of $1,791.68 as at Sept. 30, 2023, an increase of 0.3 per cent compared with $1,785.66 as at Dec. 31, 2022, and a decrease of 1.5 per cent compared with $1,819.34 as at June 30, 2023.

The net equity value per common share as at Dec. 31, 2022, of $1,785.66 has not been adjusted to reflect the adoption of IFRS 17 (international financial reporting standards), Insurance Contracts, and IFRS 9, Financial Instruments. The first quarter of 2023 marked the first quarter of reporting under IFRS 17 and IFRS 9 for the company. Excluding the impact of these accounting changes, the growth in net equity value per common share, including dividends, would have been 6.3 per cent for the first nine months of 2023.

For the third quarter ended Sept. 30, 2023, E-L Financial reported a consolidated net loss of $57-million or $17.73 per common share, compared with a net income of $31-million or $7.59 per common share for the same period in 2022. For the first nine months ended Sept. 30, 2023, E-L Financial reported a consolidated net income of $432-million or $121.42 per common share, compared with a net loss of $702-million or $199.23 per common share for the same period in 2022.

Today, the board of directors of E-L Financial declared a quarterly dividend of $3.75 per common share, payable on Jan. 17, 2024, with a record date of Dec. 29, 2023.

E-L Corporate

E-L Corporate reported a net loss of $52-million for the third quarter ended Sept. 30, 2023, compared with a net loss of $5-million in 2022. The increase in the net loss was due to higher losses from the global investment portfolio of $103-million in 2023, compared with $60-million for the second quarter of 2022. E-L Corporate's global investment portfolio had a pretax total return, including dividend income, of negative 1 per cent for the third quarter of 2023, compared with a pretax total return of nil for the same period in the prior year.

E-L Corporate reported a net income of $386-million for the first nine months of 2023, compared with a net loss of $751-million in 2022. The increase in earnings was due to a net gain on investments of $431-million in 2023, compared with a net loss of $1,218-million for the comparative period in 2022. E-L Corporate's global investment portfolio had a pretax total return, including dividend income, of 9 per cent in the first nine months of 2023, compared with a pretax total return of negative 18 per cent for the same period in the prior year.

Empire Life

Empire Life reported a net loss of $5-million for the third quarter of 2023, compared with a net income of $36-million for the third quarter of 2022. The decline in third quarter earnings over the prior year was primarily due to lower net investment and insurance finance results driven by a less favourable economic environment.

Empire Life reported a net income of $46-million for the first nine months of 2023, compared with $49-million for the comparable period in 2022.

Empire Life's life insurance capital adequacy test (LICAT) total ratio was 152 per cent at Sept. 30, 2023, compared with 151 per cent at June 30, 2023, and 152 per cent at Dec. 31, 2022 (1), well above the requirements set by the Office of the Superintendent of Financial Institutions Canada as well as Empire Life's minimum internal targets.

(1) The Dec. 31, 2022, LICAT result has not been adjusted for the impacts from the adoption of IFRS 17 and IFRS 9.

Non-GAAP (generally accepted accounting principles) measures

The company uses non-GAAP measures, including net equity value and growth in net equity value per common share, to provide investors with measures of its operating performance that may not otherwise be apparent when relying solely on IFRS financial measures. Net equity value per common share provides an indication of the accumulated shareholder value, adjusting shareholders' equity to reflect investments in associates at fair value, net of tax, as opposed to their carrying value. The growth in net equity value per common share and compounded annual growth in net equity value per common share is calculated as the change in net equity value per share for the respective period and includes dividends paid to common shareholders.

The company also uses assets under management to provide investors with supplemental measures of Empire Life's operating performance and to highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures. The company also believes that securities analysts, investors and other interested parties frequently use non-GAAP measures in the evaluation of issuers.

About E-L Financial Corp. Ltd.

E-L Financial operates as an investment and insurance holding company. In managing its operations, E-L Financial distinguishes between two operating segments, E-L Corporate and Empire Life.

E-L Corporate represents investments in stocks and fixed income securities held directly and indirectly through pooled funds, closed-end investment companies and other investment companies. The investment strategy is to accumulate shareholder value through long-term capital appreciation and dividend and interest income from its investments.

Empire Life is a subsidiary of E-L Financial. Since 1923, Empire Life has provided individual and group life and health insurance, investment and retirement products to Canadians. Empire Life's mission is to make it simple, fast and easy for Canadians to get the products and services they need to build wealth, generate income and achieve financial security. As of Sept. 30, 2023, Empire Life had total assets under management of $17-billion.