November 2, 2018 11:30
Mark Sylvia | Photo : Réjean Meloche
Although the net income ofEmpire Life would be lower than in the third quarter of 2018 compared to the corresponding period in 2017, the insurer knows up to now a better year in 2018 than in 2017.
The net profit of Empire Life in the third quarter of 2018 is $ 35.2 million ($M). This is 10 % lower than a year ago, while it was 39.1 M$.
However, for the first nine months of the year, Empire Life is more valuable in 2018 than it was in 2017. Empire is a profit to 131,2 Million dollars for the first nine months of 2018, or$ 8.6 Million more than in 2017. Empire Life has entered into the last year with a net profit of$ 171 Million, a record for the company.
Empire Life has posted its best quarterly performance since the start of 2017 to the second quarter of 2018. Its profit was$57.3 Million.
Revision of the assumptions and increase of reserves in individual life
To explain the decrease of its earnings in the third quarter of 2018, the insurer explained that it has increased from$ 20 Million to its reserves in the individual insurance line of business. This amount has been placed in the liabilities of the company after it had changed its assumptions projected on the behaviors of policyholders and their rate of mortality among other. The insurer states that its contracts universal life insurance that are under the magnifying glass.
Empire Life believes that its assets and liabilities are better matched to the result of this gesture. It follows other actions taken since the beginning of 2017, where the insurer is said to have increased its position in shares of real estate companies in sponsorship. “This has led to a gain as a result of the update of the liabilities of insurance contracts,” says the insurer.
Improvement in the collective and in the heritage management
The increase in gains in its activities in insurance and wealth management has helped offset some of the decline in profits in life insurance, also reveals the insurer. It establishes a 10 % combined increase in business in force in these two sectors in 2018 compared to 2017.
“Our priority for use of the data, the digital platforms and strategic partnerships to broaden distribution and to keep the promises we have made to our customers has led to solid results in our three business segments,” said Mark Sylvia, president and chief executive officer of Empire Life.