TORONTO, ONTARIO--(MARKET WIRE)--Nov 3, 2008 -- E-L Financial Corporation Limited ("E-L Financial") (Toronto:ELF.TO - News)(Toronto:ELF-PRF.TO - News)(Toronto:ELF-PRG.TO - News) today reported that for the quarter ended September 30, 2008, it earned net operating income(1) of $49.6 million or $14.16 per share compared with $15.7 million or $3.97 per share for the comparable period last year. On a year to date basis, E-L Financial earned net operating income of $83.1 million or $22.72 per share compared with $63.5 million or $16.81 per share in 2007.

Total net loss for the quarter was $25.0 million or $8.28 per share compared with net income of $20.3 million or $5.34 per share for the comparable period last year. On a year to date basis, E-L Financial earned a net loss of $7.6 million or $4.54 per share compared with net income of $104.3 million or $29.07 per share in 2007.

Each of the segments was negatively impacted by the decline in global stock markets. On a consolidated basis, after tax, E-L Financial reported a realized loss on available for sale investments of $29.5 million in the first nine months of 2008 compared to a realized gain of $45.3 million for the first nine months of 2007. Corporate Investment's equity method investment, United Corporations Limited, decreased in value by $61.2 million, after tax, compared to a decrease of $4.5 million for the same period last year due to negative global stock markets. The increase in net operating income in the Life Insurance segment was primarily due to improved investment spreads in the Individual Insurance line and a reserve release related to discounted future tax liabilities.

As of September 30, 2008, The Dominion of Canada General Insurance Company's Minimum Capital Test was approximately 195%, and The Empire Life Insurance Company's Minimum Continuing Capital and Surplus Requirements measure was 187%.

 

                                   Nine months ended September 30, 2008
                                         (thousands of dollars)
                               --------------------------------------------
                                  Corporate   General      Life
                                Investments Insurance Insurance      Total
                                ----------- --------- --------- ----------
Revenue                           $(100,366) $845,419  $483,882 $1,228,935
                                ----------- --------- --------- ----------
                                ----------- --------- --------- ----------
Net income (loss):
 Operating income                 $  10,625  $ 35,493  $ 37,011 $   83,129
 Realized gain (loss) on
  available for sale
  investments                       (35,558)    7,269    (1,167)   (29,456)
 Loss from equity method
  investment                        (61,244)        -         -    (61,244)
                                ----------- --------- --------- ----------
                                  $ (86,177) $ 42,762  $ 35,844 $   (7,571)
                                ----------- --------- --------- ----------
                                ----------- --------- --------- ----------


                                    Nine months ended September 30, 2007
                                           (thousands of dollars)
                               --------------------------------------------
                                  Corporate   General      Life
                                Investments Insurance Insurance      Total
                                ----------- --------- --------- ----------
Revenue                           $  15,159  $859,033  $565,971 $1,440,163
                                ----------- --------- --------- ----------
                                ----------- --------- --------- ----------
Net income:
 Operating income                 $  15,571  $ 34,756  $ 13,164 $   63,491
 Realized gain (loss) on
  available for sale
  investments                          (254)   34,565    11,018     45,329
 Loss from equity method
  investment                         (4,533)        -         -     (4,533)
                                ----------- --------- --------- ----------
                                  $  10,784  $ 69,321  $ 24,182 $  104,287
                                ----------- --------- --------- ----------
                                ----------- --------- --------- ----------

(1) Use of non-GAAP measures

"net operating income (loss)" is net income excluding realized gain on available for sale investments and income (loss) from the equity method investment, both net of tax. The term net operating income (loss) does not have any standardized meaning according to GAAP and therefore may not be comparable to similar measures presented by other companies. We believe this measure provides information useful to shareholders in evaluating the Company's results.

     Contacts:
     E-L Financial Corporation Limited
     Mark M. Taylor
     Executive Vice-President and Chief Financial Officer
     (416) 947-2578
     (416) 362-0792 (FAX)