February 28, 2019 09:30
Photo : Freepik
Empire Life has recorded a 20% decline in its net profit for the year 2018 compared to the previous year. In effect, the insurer made a net profit of 137 million dollars ($M) in 2018, against$ 171 Million for the year 2017.
Decrease of 87.5% in the fourth quarter
With the results recorded during the first three quarters of 2018, Empire Life had gotten ahead of the game compared to the first nine months of 2017. It took the last quarter ends for bellows falls.
The company has recorded a net profit of$ 6 Million in the fourth 2018. In comparison, net income was$ 48 Million in the fourth quarter of 2017. This is a decrease of 87.5 %.
Several factors explain the decline in the net income of Empire Life in 2018. First, the measures taken by the management and changes in assumptions have been unfavourable to the company. These represent a loss of$ 20 Million for fiscal year 2018, when they accounted for a gain of$ 32 Million for the year 2017.
The company has also recorded an actuarial loss amounting to$ 3 Million in 2018. In 2017, it was recorded actuarial gains amounting to$16 Million.
Also, the company recorded lower earnings because of its management in individual insurance and the performance of its activities in wealth management.