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Dominion parent posts significant earnings growth for 2004


February 24, 2005   by Canadian Underwriter


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E-L Financial Corp. Ltd. (TSX: ELF), parent of Dominion of Canada General Insurance Co. , has posted net income o f$129.9 million, or $31.93 per share, for 2004. This is more than double the 2003 net income of $46.9 million, or $11.66 per share.
Significant growth came from the general insurance operations, where net income reached $83.7 million last year, soaring above the $20.3 million posted in 2003.
Overall, E-L brought in revenue of $1.9 billion in 2004, with the general insurance operations accounting for $1.2 billion of this. This compares with total revenue of $1.7 billion in 2004, including $962.9 million from the general insurance operations.
E-L also brought in $13.4 million in gains on sale of investments in 2004, of which $12.2 million can be attributed to the general insurance operations. This compares with an $11.2 million loss on sale of investments, with the general insurance operations producing a loss of $13.3 million on sale of investments itself.
Expenses for 2004 reached $1.7 billion, up from $1.6 billion in 2003, including claims, policy benefits, commissions and operating expenses across E-L’s three segments: general insurance, life insurance and portfolio investments.
The company’s tax burden also rose, to $87.8 million in 2004 from $51.4 million a year earlier.
Total assets at the end of 2004 reached $8.3 billion, up from $7.3 billion at the end of 2003, and capital and surplus at the end of 2004 stood at $1.7 billion, up from $1.4 billion at the end of 2003.