Empire Life reports fourth quarter and year-end results
Canada NewsWire
KINGSTON, ON, Feb. 26, 2026
Q4 2025 highlights (compared to Q4 2024)
- Common shareholders' net income of $5 million (compared to net income of $16 million)
- Earnings per share (basic and diluted) of $5.31 (compared to $16.09)
2025 highlights (compared to 2024)
- Common shareholders' net income of $201 million (compared to net income of $281 million)
- Earnings per share (basic and diluted) of $203.67 (compared to $284.77)
KINGSTON, ON, Feb. 26, 2026 /CNW/ - The Empire Life Insurance Company (Empire Life) reported fourth quarter Common shareholders' net income of $5 million, a decrease of $11 million compared to the fourth quarter of 2024. This result reflects improved Net investment and insurance finance results, due to favourable non-fixed income asset performance, and stronger Net insurance service results from the Individual Insurance segment. This was entirely offset by an increase in Non-insurance expenses related to increased investments in information systems and workforce costs. Empire Life reported year-to-date Common shareholders' net income of $201 million, which represents a decrease of $80 million over the prior year. The decrease primarily reflects decreased Net investment and insurance finance results, due to less favourable impacts from interest rate movements and insurance contract liability assumption updates. Increased Non-insurance expenses also contributed to the reduced year-over-year performance.
"Our year-over-year and quarter-over-quarter growth in revenues, sales and core operational results remains solid," says Mark Sylvia, President and CEO. "We're pleased with the success of our new Registered Disability Savings Plan—the first Canadian insurer to offer it—and the national expansion of our Group Retirement Savings program as well as the addition of new segregated funds. These product innovations help us build wealth and security for our customers and drive long-term results."
Financial highlights
Fourth Quarter | Year to Date | |||
(in millions of dollars except per share amounts) | 2025 | 2024 | 2025 | 2024 |
Common shareholders' net income (loss) | $ 5 | $ 16 | $ 201 | $ 281 |
Earnings per share - basic and diluted(1) | $ 5.31 | $ 16.09 | $ 203.67 | $ 284.77 |
Dec 31 | Sep 30 | Jun 30 | Mar 31 | Dec 31 | |
Other Financial Highlights | 2025 | 2025 | 2025 | 2025 | 2024 |
Return on common shareholders' equity(2) | 11.5 % | 12.3 % | 17.6 % | 18.1 % | 17.4 % |
LICAT total ratio | 153 % | 145 % | 142 % | 140 % | 151 % |
(1) Prior year amounts have been revised from those previously presented. |
(2) See Non-IFRS measures section. |
The following table provides a summary of Empire Life results for the three months and year ended December 31, 2025 and 2024.
For the three months ended | For the year ended | |||
(in millions of dollars) | December 31, 2025 | December 31, 2024 | December 31, 2025 | December 31, 2024 |
Insurance service result | ||||
Insurance revenue | $ 392 | $ 358 | $ 1,530 | $ 1,405 |
Insurance service expenses | (344) | (335) | (1,286) | (1,187) |
Insurance service result | 48 | 23 | 244 | 218 |
Net recovery (expense) from reinsurance contracts held | (1) | 10 | (46) | (42) |
Net insurance service result | 47 | 33 | 198 | 176 |
Investment and insurance finance result | ||||
Investment income (loss), excluding segregated fund account balances | ||||
Investment income | (59) | 38 | 261 | 518 |
Change in investment contracts | (3) | (4) | (25) | (29) |
Net investment result, excluding segregated fund account balances | (62) | 34 | 236 | 489 |
Insurance finance income (expense), excluding segregated fund account balances | ||||
Insurance contracts | 81 | (32) | (4) | (216) |
Reinsurance contracts held | (1) | 2 | — | 33 |
Net insurance finance income (expense), excluding segregated fund account balances | 80 | (30) | (4) | (183) |
Segregated fund account balances net investment and insurance finance result | ||||
Investment income (loss) on investments for segregated fund account balances | 199 | 52 | 1,240 | 1,120 |
Insurance finance income (expenses) segregated fund account balances | (199) | (52) | (1,240) | (1,120) |
Segregated fund account balances net investment and insurance finance result | — | — | — | — |
Net investment and insurance finance result | 18 | 4 | 232 | 306 |
Other income and expenses | ||||
Fee and other income | 14 | 14 | 41 | 45 |
Non-insurance expenses | (58) | (28) | (159) | (109) |
Interest expenses | (4) | (4) | (17) | (15) |
Total other income and expenses | (48) | (18) | (135) | (79) |
Net income (loss) before taxes | 17 | 19 | 295 | 403 |
Income taxes | (16) | (3) | (80) | (103) |
Net income (loss) after taxes | 1 | 16 | 215 | 300 |
Less: net income (loss) attributable to the participating account | (7) | (3) | 3 | 7 |
Less: net income (loss) attributable to non-controlling interests | — | — | — | — |
Shareholders' net income (loss) | 8 | 19 | 212 | 293 |
Less: preferred share dividends declared and distributions on other equity instruments | 3 | 3 | 11 | 12 |
Common shareholders' net income (loss) | $ 5 | $ 16 | $ 201 | $ 281 |
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.
- Net insurance service result increased by $14 million in the fourth quarter compared to the same period in 2024. The improvement was primarily attributable to more favourable mortality experience in the Individual Insurance segment.
- Net investment and insurance finance result increased by $14 million in the fourth quarter of 2025 compared to the same period in 2024, which was driven by more favourable non-fixed income asset performance.
- Total other expenses were $48 million in the fourth quarter compared to $18 million in the same period in 2024. The $30 million increase primarily reflects higher workforce costs and spending on technological infrastructure.
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 year.
- Net insurance service result increased by $22 million in 2025 compared to the same period in 2024. This increase was primarily driven by favourable mortality experience in the Individual Insurance segment.
- Net investment and insurance finance result decreased by $74 million in 2025 compared to the same period in 2024. This decrease was primarily due to impacts of insurance contract liability assumption updates in 2024, which significantly elevated the results in the prior year, and were not repeated in 2025.
- Total other expenses increased by $56 million in 2025 compared to 2024, largely reflecting strategic investments in information systems and the Company's talent base aimed at strengthening technological capabilities and maintaining a competitive advantage in an evolving market. Additionally, the prior year's results benefited from gains within Fee and other income, specifically related to the sale of Property and equipment, that did not recur in 2025.
The Company's Life Insurance Capital Adequacy Test Total ratio was 153% at December 31, 2025, 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 December 31, 2025. 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 December 31, 2025, Empire Life had total assets under management of $20.8 billion. Follow us on social media @EmpireLife or visit empire.ca for more information.
SOURCE The Empire Life Insurance Company
