E-L Financial Lifts Earnings by 18% For 1-Q

E-L Financial Corp. Ltd. (TSX: ELF), parent of The Dominion of Canada General Insurance Co. and Chieftain Insurance, increased net income for the first quarter of this year to $11.1 million, or $2.89 per share, versus the $9.4 million in net income, or $2.44 per share, disclosed for the same period the year prior. This is exclusive of investment gains, which if included would boost total net income to $16.9 million, or $4.41 a share.

The company notes that the market value of stock portfolios held by its insurance subsidiaries had dropped $61 million below carrying value, a sharp dive from the $17 million difference reported at the end of 2002. “The deficiency of the market value relative to the carrying value of our insurance subsidiaries’ stock portfolios is not reflected in the [first quarter 2003] balance sheet,” states a company release. “Continued investment gains may not materialize to the same extent as in previous years, thus affecting future total earnings.”

The company’s general insurance operations saw revenue of $222.7 million, with net income (including investment results) of $7.98 million. This compares with revenue of $177 million, and net income of $4.1 million for the first quarter of 2002. Overall, revenue rose to $390.2 million for the latest reporting period from the $338.4 million disclosed for the same period in 2002. Of this, gain on sale of investments accounted for $4.5 million and $9.3 million for the first quarter 2003 and 2002 respectively. Total assets dropped in value to $6.4 billion at the end of the first quarter of this year compared with the $6.5 billion valuation made a year ago.