The Empire Life Insurance Co. reported yearend results for 2006, including a record high of $7.1 billion in assets under administration, at its annual general meeting held on Wednesday in Toronto. As well as the 22% increase in assets, shareholders’ net income increased by 88% to $57.5 million from $30.6 million in 2005.
“Our efforts during 2006 continued to focus on the organic growth of our individual wealth management sales, as well as overall premium growth in our individual insurance and employee nenefits product lines,” says Doug Hogeboom, president and CEO of Empire Life. “It was a year in which the significant investments we have made over the years in the Company’s technology and organizational depth resulted in solid business results.”
Contributing to the increase in assets were positive net sales and continued positive performance of Empire Life segregated funds, which experienced overall asset growth of 34% in 2006, the fourth consecutive year for double-digit growth. General fund assets increased by 10% due primarily to continued growth in the individual insurance product line.
The increase in shareholders’ net income is attributed to improved overall net income from the Company’s three major product lines and increased Capital and Surplus earnings from rising domestic equity markets. Improved claims experience and lower reserve strengthening in the Individual Insurance product line, and higher profits from a larger in-force base in all product lines, were factors contributing to the improved overall net income result.
Other notable results included overall wealth management product sales exceeding $1 billion for the first time in the Company’s history. Premium revenue was up 12% from the previous year, resulting from strong sales and retention of in-force business.
Empire Life announces record AUA in 2006 yearend results
Total AUA increased 22%; shareholders’ net income rose 88%
- By: IE Staff
- May 2, 2007 May 2, 2007
- 15:08