Main Content
Wednesday, May 10, 2023 - 10:21

Empire Life announces solid first quarter earnings


Q1 2023 highlights (compared to restated Q1 2022)

  • Common shareholders’ net income of $52 million (compared to restated $47 million)
  • Earnings per share (basic and diluted) of $52.66 (compared to restated $47.87)

(Kingston, ON – May 9, 2023) – For our first quarter reporting under International Financial Reporting Standards (IFRS) 17 and 9, Empire Life Insurance Company (Empire Life) reported common shareholders’ net income of $52 million for 2023, compared to a net income of $47 million for the first quarter of 2022. The increase in first quarter earnings over prior year was primarily a result of a more neutral economic environment.

“We are very pleased with our financial results this first quarter of 2023,” says Mark Sylvia, President and Chief Executive Officer. “A more neutral economic environment contributed to our solid performance. While the market and interest rates continue to influence performance across the industry, the ongoing hard work and adaptability of our employees and distribution partners allow us to continue to deliver on our promises to our customers and shareholders.”

Financial highlights


First quarter

(in millions of dollars except per share amounts)


2022 restated

Common shareholders' net income

$ 52

$ 47

Earnings per share - basic and diluted

$ 52.66

$ 47.87


Other Financial Highlights

Mar 31 2023

Dec 31 2022

Sep 30 2022

Jun 30 2022

Return on common shareholders' equity(1)

14.0 %

2.1 %

9.2 %

(9.2) %

LICAT total ratio(2)

152 %

138 %

137 %

139 %

(1) See Non-IFRS measures section.

(2) Amounts prior to January 1, 2023 have not been adjusted for the impacts from the adoption of IFRS 17 and IFRS 9. See Note 2.4 in the Condensed Interim Consolidated Financial Statements for additional details.

The following table provides a summary of Empire Life results for the three months ended March 31, 2023 and 2022.


For the three months ended

(in millions of dollars)

March 31, 2023

March 31, 2022 restated

Insurance revenue

$ 326

$ 304

Insurance service expenses



Insurance service results



Net expense from reinsurance contracts held



Net insurance service result



Insurance finance income (expense) from insurance contracts issued, excluding segregated funds



Reinsurance finance income (expense) from reinsurance contracts held



Insurance finance result



Investment income, excluding segregated funds



Change in investment contracts



Net investment income, excluding segregated funds



Changes in fair value of underlying items of the segregated funds



Net finance and investment result credited to offset fair value changes



Segregated funds net finance and investment result

Net investment result



Fee and other income



Non-insurance operating expenses



Interest expenses (subordinated debt)



Total other income and expenses



Net income (loss) before taxes



Total income taxes



Net income (loss) after taxes



Less: net income (loss) attributable to the participating account



Shareholders' net income (loss)



Less: preferred share dividends declared



Common shareholders' net income

$ 52

$ 47

Net insurance service result increased $3 million or 8% compared to the same period in 2022, primarily due to improved long-term disability (LTD) experience and growth in the Group Solutions line. This growth was driven by higher premium earned in our specialty and specialty reinsurance partnerships, partially offset by an increase in claims.

Net investment result was consistent with the same period in 2022. The economic environment in the two quarters was very different, primarily due to significant yield curve increases in Q1 2022, which were not repeated in 2023. In addition, while strong equity markets drove net income gains in both quarters, the impact was greater in Q1 2023.

Total other income and expenses improved $5 million or 37% compared to the same period in 2022 due to higher net deposits on annuities in Wealth Management and net earnings from TruStone Financial Inc., which was acquired on March 10, 2022.

The company’s Life Insurance Capital Adequacy Test (LICAT) Total Ratio was 152% at March 31, 2023, well above the requirements set by the Office of the Superintendent of Financial Institutions Canada (OSFI) as well as Empire Life’s minimum internal targets.

Non-IFRS measures

Empire Life uses non-IFRS measures including return on common shareholders’ equity, assets under management, annualized premium sales, gross and net sales for mutual funds, segregated funds and fixed annuities 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.

Additional information

All amounts are in Canadian dollars and are based on the consolidated financial results of Empire Life for the period ended March 31, 2023. Additional information about Empire Life can be found in Empire Life’s latest Management’s Discussion & Analysis and Annual Information Form. These documents are filed on Empire Life’s profile available at

About Empire Life

Established in 1923 and a subsidiary of E-L Financial Corporation Limited, Empire Life provides individual and group life and health insurance, investment and retirement products. The company’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 March 31, 2023, Empire Life had total assets under management of $18 billion. Follow us on social media @EmpireLife or visit for more information.

– ### –

Contact: Karen Smith

Director, Communication Services

613 548-1890, ext. 3387