Investment Slump Drags E-L’s Bottom-Line

E-L Financial Corp. Ltd. (TSX: ELF), parent company of The Dominion of Canada General Insurance Co., nearly doubled its operating income for 2003 to $42.9 million ($11.17 a share) from the $23.3 million ($6.08 per share) reported for 2002.

However, overall net income for the company, including portfolio investment, life insurance and general insurance operations, came in at $46.9 million ($12.20 a share), reflecting a moderate decline from the $47.6 million ($12.40 a share) disclosed for the 2002 financial year. The biggest financial blow was a $13.4 million loss on sale of investments, also stemming from the general insurance operation, compared to a gain of $18.2 million made the year prior.

General insurance operations posted increased revenues last year, up to $962.9 million (2002: $770.3 million). And, while the company’s net income before investments rose to $33.6 million for 2003 (2002: $14.0 million), the investment loss dragged net income down to $20.3 million (2002: $22.2 million). n