Q3 2026 highlights (compared to Q3 2025)
- Common shareholders' net loss of $23 million (compared to net income of $93 million)
- Earnings per share (basic and diluted) of $(23.37) (compared to $94.60)
KINGSTON, ON, Nov. 3, 2026 /CNW/ -- The Empire Life Insurance Company (Empire Life) reported Common shareholders' net loss of $23 million compared to Common shareholders' net income of $93 million in the third quarter of 2025. The decrease was primarily attributable to a lower Net investment and insurance finance result, reflecting unfavourable impacts from interest rate movements. Additionally, higher Net insurance service results in the Individual Insurance segment were partially offset by higher expenses related to company-wide strategic initiatives.
"Although broader market volatility remains an industry concern, our operations remain stable as confirmed by our recent DBRS assessment which reflects our diversified earnings sources," says Mark Sylvia, President and CEO. "Our segregated fund sales in 2026 have been exceptionally strong as a result of new product introductions over the past year. Our strong Life Insurance Capital Adequacy Test (LICAT) ratio validates our ongoing focus on profitable growth, capital preservation and resilience despite economic uncertainty."
Financial highlights
Third Quarter | Year to Date | |||
(in millions of dollars except per share amounts) | 2026 | 2025 | 2026 | 2025 |
Common shareholders' net income (loss) | $ (23) | $ 93 | $ 66 | $ 195 |
Earnings per share - basic and diluted | $ (23.37) | $ 94.60 | $ 67.20 | $ 198.36 |
Sep 30 | Jun 30 | Mar 31 | Dec 31 | Sep 30 | |
Other Financial Highlights | 2026 | 2026 | 2026 | 2025 | 2025 |
Return on common shareholders' equity(1) | 4.1 % | 10.7 % | 7.8 % | 11.5 % | 12.3 % |
LICAT total ratio | 150 % | 159 % | 150 % | 153 % | 145 % |
(1) See Non-IFRS Measures section. | |||||
The following table provides a summary of Empire Life results for the three and nine months ended September 30, 2026 and 2025.
For the three months ended | For the nine months ended | |||
(in millions of dollars) | September 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 |
Insurance service result | ||||
Insurance revenue | $ 399 | $ 386 | $ 1,194 | $ 1,138 |
Insurance service expenses | (327) | (333) | (1,002) | (942) |
Insurance service result | 72 | 53 | 192 | 196 |
Net recovery (expense) from reinsurance contracts held | (16) | (10) | (34) | (44) |
Net insurance service result | 56 | 43 | 158 | 152 |
Investment and insurance finance result | ||||
Investment income (loss), excluding segregated fund account balances | ||||
Investment income | (468) | 222 | (98) | 319 |
Change in investment contracts | 1 | (10) | (8) | (22) |
Net investment result, excluding segregated fund account balances | (467) | 212 | (106) | 297 |
Insurance finance income (expense), excluding segregated fund account balances | ||||
Insurance contracts | 423 | (93) | 162 | (85) |
Reinsurance contracts held | -- | (5) | -- | 1 |
Net insurance finance income (expense), excluding segregated fund account balances | 423 | (98) | 162 | (84) |
Segregated fund account balances net investment and insurance finance result | ||||
Investment income (loss) on investments for segregated fund account balances | 16 | 585 | 993 | 1,042 |
Insurance finance income (expense), segregated fund account balances | (16) | (585) | (993) | (1,042) |
Segregated fund account balances net investment and insurance finance result | -- | -- | -- | -- |
Net investment and insurance finance result | (44) | 114 | 56 | 213 |
Other income and expenses | ||||
Fee and other income | 19 | 10 | 55 | 27 |
Non-insurance expenses | (46) | (31) | (144) | (101) |
Interest expenses | (6) | (4) | (15) | (13) |
Total other income and expenses | (33) | (25) | (104) | (87) |
Net income (loss) before taxes | $ (21) | $ 132 | $ 110 | $ 278 |
Income taxes | 9 | (31) | (20) | (64) |
Net income (loss) after taxes | (12) | 101 | 90 | 214 |
Less: net income (loss) attributable to the participating account | 1 | 5 | 3 | 10 |
Less: net income (loss) attributable to non-controlling interests | -- | -- | -- | -- |
Shareholders' net income (loss) | (13) | 96 | 87 | 204 |
Less: preferred share dividends declared and distributions on other equity instruments | 10 | 3 | 21 | 9 |
Common shareholders' net income (loss) | $ (23) | $ 93 | $ 66 | $ 195 |
The drivers of our reported Common shareholders' net income are Net insurance service result, Net investment and insurance finance result, and Total other income (expense). Below is a summary of the movements in these balances during the quarter.
- The Net insurance service result of $56 million increased by $13 million in the third quarter, compared to the same period in 2025, primarily driven by impacts from assumption updates in the current quarter, within the Individual Insurance segment.
- The Net investment and insurance finance result decreased by $158 million to a loss of $44 million in the third quarter of 2026 compared to the same period in 2025. The decline was primarily driven by unfavourable impacts from interest rate movements and non-fixed income asset performance compared to favourable impacts in the comparative quarter.
- Total other expenses were $33 million in the third quarter compared to $25 million in the same period in 2025. The $8 million increase in Total other expenses reflects increased investments in technology and other strategic initiatives.
The Company's Life Insurance Capital Adequacy Test Total ratio was 150% at September 30, 2026, well above the requirements set by the Office of the Superintendent of Financial Institutions, Canada as well as Empire Life's internal targets.
Non-IFRS measures
Empire Life uses non-IFRS measures including return on common shareholders' equity, assets under management, annualized premium sales, gross and net sales for segregated funds and fixed annuities to provide investors with supplemental measures of its operating performance and to highlight trends in its core business that may not otherwise be apparent when relying solely on financial measures as defined in IFRS Accounting Standards. Empire Life also believes that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers. Empire Life's management also uses non-IFRS measures to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and to determine components of management compensation. Empire Life believes that these measures provide information useful to its shareholders and policyholders in evaluating the Company's underlying financial results. Further information on these non-IFRS measures can be found in Empire Life's latest Management's Discussion & Analysis (MD&A), filed on Empire Life's profile available at www.sedarplus.ca.
Additional information
All amounts are in Canadian dollars and are based on the consolidated financial results of Empire Life for the period ended September 30, 2026. Additional information about Empire Life can be found in Empire Life's latest MD&A and Annual Information Form. These documents are filed on Empire Life's profile available at www.sedarplus.ca.
About Empire Life
Established in 1923 and a subsidiary of E-L Financial Corporation Limited, Empire Life provides individual and group life and health insurance, investment and retirement products. The Company's mission is to provide expertise and intelligent solutions to help Canadians navigate life with confidence. As of September 30, 2026, Empire Life had total assets under management of $21 billion. Follow us on social media @EmpireLife or visit empire.ca for more information.
SOURCE The Empire Life Insurance Company
Karen Smith, Director, Corporate Communications, 613 548-1890, ext. 3387, [email protected]
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