On Friday, Empire Life Insurance Co. based in Kingston, Ontario, reported net income to common shareholders of $32 million for the second quarter, down from $32 million48 million in the second quarter of 2020 and $157 million in the first quarter.
The decline was primarily due to higher company employee benefit claims and losses on certain assets compared to profits for the same period in 2020.
Year-to-date common shareholder net income was $189 million, up from $16 million in the first half of 2020, driven by the release of segregated fund guarantee reserves in the first quarter of 2021.
Expected operating profit declined 4% in the second quarter, mainly due to the insurer’s asset management lines.
From June 30, Total assets under management of Empire Life amounted to: $18.9 billioncompared to $17.8 billion a year earlier.
“We continue to be pleased with our financial results this quarter and for the full year,” he said Marek Sylwia, president and CEO of Empire Life, in a release. “While our second-quarter earnings reflect an increase in claims for employment benefits, it means that Canadians are resuming some important health care activities that may have been unavailable to them during the height of the pandemic. This is very positive news for our society.”
