E-L Financial results improve on general insurance gains

Results for Toronto-based E-L Financial Corp. (TSX: ELF) were much improved over 2003 for the first six months of 2004, largely on the back of gains in the general insurance segment. E-L is the parent of the Dominion of Canada General Insurance Co.
For the first half of this year, E-L pulled in overall net income of $54.7 million ($13.60 per share) up from $18.1 million ($4.51 per share) for the same period in 2003. Revenue was up to $924.1 million from $770.1 million and investment income also grew, to $142.3 million from $130.7 million for the same comparative period.
In the general insurance segment, net income blossomed to $34.9 million in the first half of 2004 from $3.8 million a year ago. Revenue was up to $571.2 million from $430.1 million and the general insurance segment posted a gain from sale of investments of $5.0 million compared to a loss of $18.0 million the year prior.
However, chairman Duncan Jackman pointed to the difficult environment faced by operating subsidiaries Dominion recently announced its intention to withdraw from Newfoundland as a result of auto insurance reforms there which have caused several insurers to decide to leave the province. “There is an unusually high degree of uncertainty around both the capital markets and the regulatory environment in which our operating subsidiaries do business,” notes Jackman. However, he adds, “we feel we are more than adequately capitalized to serve our clients.”
As of June 30, 2004, E-L’s capital and surplus stood at $1.47 billion, up from $1.31 billion at the same point in 2003.