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Mixed results for Empire Life second quarter

by

Mathieu Carbasse

July 31, 2017 11:30

Mark Sylvia | Photo : Réjean Meloche

In the second quarter of 2017, Empire Life has recorded a net profit attributable to ordinary shareholders of 33.4 million dollar ($M), compared to$ 24.8 Million for the comparable period in 2016, which represents an increase of nearly 35 %. According to the company, this increase is due to the reduction of the cost of coverage and to the improvement of the performance of activities in the sector of group insurance, partially offset by a decrease of the gains of the individual insurance.

In fact, in regards to the individual insurance, sales of annualized premium for the sector decreased by 14.8% in the second quarter. Empire Life explains the decline from lower sales of products with participation. The management considers that this situation is in part attributable to the entry into force on 1 January 2017 tax rules less favourable in terms of the criteria for exemption of certain life insurance policies.

«To provide competitive insurance products»

«We have continued to make progress to improve our results while maintaining a strong financial foundation and a composition of high-quality assets,» stresses Mark Sylvia, president and chief executive officer of Empire Life. The sales of the sector of the wealth management benefited from capital markets rather stable and our prioritization of investments in technology to improve the customer experience and maintain a distribution strategy to be diverse. The stability of the canadian economy and the positive trend of interest rate in the long term contribute to our business and individual insurance to our ability to provide competitive insurance products to our customers. «

In addition, Empire Life has reduced its actuarial losses of$ 15.3 Million in 2nd quarter of 2016, to$ 6.4 Million for the corresponding quarter of 2017. This decline, Empire, attributed it to the improvement of the claims of the insurance sector of the insurance collective. The company has indeed made significant gains on the measures taken by management in respect of the activities of individual insurance, thanks to a better matching of assets and liabilities.

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