The Empire Life Insurance Company reported Q3 common shareholders' net income of $93 million, supported by strong investment and insurance finance results driven by positive interest rate movements.
Although earnings were down $84 million from the $177 million recorded in the same quarter last year, the insurer said the decline mainly reflected an unusually favourable investment and insurance finance result in 2024, along with more positive assumption updates during that period.
President and CEO Mark Sylvia said the company experienced steady growth across both its insurance and investment businesses during the quarter. Segregated fund assets surpassed $10 billion, while the Life Insurance Capital Adequacy Test (LICAT) ratio remained strong at 145%, backed by a robust capital base.
Empire Life's return on common shareholders' equity stood at 12.3%, compared with 24% in Q3 2024. Year to date, common shareholders' net income totalled $195 million, compared with $265 million in the same period last year.
The insurer’s net insurance service result fell by $19 million year over year, reflecting unfavourable assumption updates in the Individual Insurance segment compared to positive impacts from Group Solutions updates in the prior year.
Net investment and insurance finance results were also lower, decreasing by $105 million from the same period in 2024, due to less favourable interest rate movements and the absence of the previous year’s one-time benefits.
Non-insurance expenses rose by $4 million to $31 million, largely due to continued investments in information systems, process efficiency, and increased activity across non-insurance distribution channels.
Empire Life said its capital position remains well above regulatory and internal targets, with the LICAT ratio at 145% as of September 30, 2025, compared to 154% a year earlier.
According to a recent peer review by Fitch Ratings, Canadian life insurers maintained a high average LICAT ratio of around 136 % in the second quarter of 2025, placing Empire Life’s 145 % ratio above the industry average.
Industry data also suggested broader market growth: new annualized premiums in the Canadian individual life insurance market grew approximately 5 % year-over-year in the second quarter of 2025, and 9 % in the first half, indicating healthy demand despite more challenging operating conditions.
