E-L Financial Corporation Limited Announces March 31, 2012 Interim Financial Results

TORONTO, ONTARIO--(Marketwire - May 10, 2012) - E-L Financial Corporation Limited ("E-L Financial") (TSX:ELF)(TSX:ELF.PR.F)(TSX:ELF.PR.G)(TSX:ELF.PR.H) today reported that for the quarter ended March 31, 2012, consolidated net operating income¹ of $44.9 million or $10.80 per share² compared with $25.1 million or $5.74 per share in 2011.

The $19.8 million increase in net operating income in 2012 versus 2011 is principally attributable to an $11.9 million increase in net operating income for the general insurance operation (The Dominion). The Dominion's increase in net operating income is due mainly to improved automobile claims experience, lower weather-related claims costs for personal and commercial property and lower claims frequency for non-weather-related personal property claims. Net operating income for the life insurance operation (Empire Life) improved $4.0 million primarily due to the favourable impact of higher long-term interest rates on the Individual Insurance product line.

Net income

E-L Financial earned consolidated net income of $155.7 million or $38.99 per share compared with $50.2 million or $12.11 per share in 2011.

In addition to the increase in net operating income described above, 2012 net income was positively impacted by improvements in the global equity markets. Fair value through profit or loss investments held at E-L Corporate increased $70.3 million compared to $6.0 million in 2011. As well, increases in the value of the Company's interest in Economic Investment Trust Limited and United Corporations Limited, partially offset by losses from Algoma Central Corporation, resulted in income from associates of $31.4 million for the first three months of 2012 compared to $7.1 million in 2011.

Comprehensive income

E-L Financial earned consolidated comprehensive income of $168.6 million or $42.26 per share for the first three months of 2012 compared of $45.8 million or $11.01 per share in 2011. Consolidated other comprehensive income was $12.9 million or $3.27 per share compared with other comprehensive loss of $4.4 million or $1.10 per share in 2011. The improvement in other comprehensive income for the quarter reflected a larger unrealized fair value increase on available for sale investments compared to the prior period.

"Strong equity markets and improved profitability across all business segments helped us finish the quarter on a high note", said Duncan Jackman, Chairman, President and CEO of E-L Financial.

CONSOLIDATED SUMMARY OF COMPREHENSIVE INCOME
		Period ended March 31, 2012
(thousands of dollars)		E-L Corporate			The Dominion			Empire Life			Total
Net operating income	$	7,227		$	25,322		$	12,393		$	44,942
Realized gain on available for sale investments including impairment write downs		528			7,099			1,485			9,112
Share of income of associates		31,370			-			-			31,370
E-L Corporate's fair value change in fair value through profit or loss investments		70,304			-			-			70,304
Net income		109,429			32,421			13,878			155,728
Other comprehensive income (loss)		8,436			5,401			(984	)		12,853
Comprehensive income	$	117,865		$	37,822		$	12,894		$	168,581
	Period ended March 31, 2011
(thousands of dollars)		E-L Corporate		The Dominion				Empire Life			Total
Net operating income	$	3,308		$	13,389		$	8,387		$	25,084
Realized gain on available for sale investments including impairment write downs		1,125			8,027			2,778			11,930
Share of income of associates		7,142			-			-			7,142
					-			-
E-L Corporate's fair value change in fair value through profit or loss investments		6,018			-			-			6,018
Net income		17,593			21,416			11,165			50,174
Other comprehensive (loss) income		(2,587	)		(4,911	)		3,122			(4,376	)
Comprehensive income	$	15,006		$	16,505		$	14,287		$	45,798

¹Use of non-GAAP measures:

"net operating income" is net income excluding realized gain on available for sale investments including impairment write downs, the Company's share of income from associates and the fair value change in fair value through profit or loss investments in the E-L Corporate portfolio, all net of tax. The term net operating income does not have any standardized meaning according to GAAP and therefore may not be comparable to similar measures presented by other companies.

²All earnings per share figures are net of dividends paid on First Preference shares.