(Kingston, ON – March 3, 2021) The Empire Life Insurance Company (“Empire Life” or the “Company”) (TSX: EML.PR.A) today announced that it will exercise its right to redeem all of its 5,980,000 outstanding Non-Cumulative Rate Reset Preferred Shares, Series 1 (the “Preferred Shares Series 1”) on Saturday, April 17, 2021 at the price of $25.00 per Preferred Share Series 1 for an aggregate total of $149,500,000, plus declared and unpaid dividends.
On February 24, 2021, Empire Life announced that a dividend of $0.359375 per Preferred Shares Series 1 had been declared. This will be the final dividend on the Preferred Shares Series 1, and will be paid in the usual manner to shareholders of record on March 18, 2021, as previously announced. After April 17, 2021, the Preferred Shares Series 1 will cease to be entitled to dividends and the only remaining rights of holders of such shares will be to receive payment of the redemption amount.
Given April 17, 2021 is a Saturday, payment of the final dividend and the redemption amount will be made as noted above on Monday, April 19, 2021.
The Preferred Shares Series 1 are currently listed for trading on the Toronto Stock Exchange under the symbol EML.PR.A and will be de-listed from the TSX, as at the close of trading on Friday, April 16, 2021.
Beneficial holders of Preferred Shares Series 1 should contact the financial institution, broker or other intermediary through which they hold these shares to confirm how they will receive their redemption proceeds.
Forward-Looking Statements:
Certain information contained herein relating to, but not limited to, statements with respect to the anticipated timing of the redemption of the Preferred Shares Series 1, constitutes forward-looking information under applicable securities laws. All statements, other than statements of historical fact, which address activities, events or developments that Empire Life expects or anticipates may or will occur in the future, are forward-looking information. Forward-looking information typically contains statements with words such as "will", "may", "estimate", "anticipate", "believe", "expect", "potential", "plan", "intend", "target", "project", "forecast" or similar words suggesting future outcomes or outlook. The forward-looking information included herein involves significant risks, uncertainties and other factors. Additional information on risks, uncertainties and factors that could affect the foregoing forward-looking information and/or Empire Life’s operations or financial results is included in its filings with the securities commission or similar authority in each of the provinces and territories of Canada, as may be updated from time to time. Readers are also cautioned that such additional information is not exhaustive.
The impact of any one risk, uncertainty or factor on a particular forward-looking statement is not determinable with certainty as these factors are independent and management’s future course of action would depend on its assessment of all information at that time. Although Empire Life believes that the expectations conveyed by the forward-looking information are reasonable based on information available on the date of preparation, no assurances can be given as to future results, levels of activity and achievements. Undue reliance should not be placed on the information contained herein, as actual results achieved will vary from the information provided herein and the variations may be material. Empire Life makes no representation that actual results achieved will be the same in whole or in part as those set out in the forward-looking information. Furthermore, the forward-looking statements contained herein are made as of the date hereof, and Empire Life does not undertake any obligation to update publicly or to revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable laws. Any forward-looking information contained herein is expressly qualified by this cautionary statement.
Non-IFRS measures
Empire Life uses non-IFRS measures including assets under management to provide investors with supplemental measures of its operating performance and to highlight trends in its core business that may not otherwise be apparent when relying solely on International Financial Reporting Standards financial measures. Empire Life also believes that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers.
About Empire Life
Established in 1923, Empire Life is a subsidiary of E-L Financial Corporation Limited. The Company’s mission is to make it simple, fast and easy for Canadians to get the investment, insurance and group benefits coverage they need to build wealth, generate income, and achieve financial security. As of December 31, 2020, Empire Life had total assets under management of $18.8 billion. Follow on Twitter @EmpireLife or visit www.empire.ca for more information.
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Contact: Julie Tompkins
Vice-President, Corporate Services & Chief Communications Officer
613 548-1890, ext. 3301 julie.tompkins@empire.ca