E-L Financial Corp. Ltd. is reporting increased net operating income for the year ended Dec. 31, 2005.

The financial services holding company said net operating income for 2005 was $130.4 million, or $37.59 per share, compared with $91.4 million, or $26.99 per share, in 2004.

Total net income, including investment gains and income from the equity method investment, for the year was $293.7 million, or $86.68 per share, compared with $210.2 million, or $62.67 per share, in 2004.

E-L has two operating insurance subsidiaries, The Dominion of Canada General Insurance Co. and The Empire Life Insurance Co.

Dominion’s return on equity was 25.2% and its combined ratio was 90.8% for 2005, compared to 18.4% and 97.0%, respectively, in 2004. The improved fourth quarter and current year benefited from reductions in provisions for 2004 and 2005 auto claims, as a result of emerging favourable experience recognized in the 2005 year end actuarial valuation. Claims frequency remained historically low, although it began to rise in 2005. Revenue stabilized in 2005 from increased investment income and gains, partially offset by declining auto insurance premium rates. E-L said general insurance earnings are expected to decline but remain above historical levels in 2006.

Empire’s net income declined moderately in 2005 primarily as a consequence of higher reserve strengthening in the Individual Insurance product line and increased new business strain in both the individual insurance and wealth management product lines. Empire’s total assets under administration grew to $5.8 billion, from $5 billion in 2004. For the third consecutive year, segregated fund assets experienced double-digit growth, increasing by 28.7% due primarily to sales of segregated fund products that were more than double the level achieved in 2004. Empire’s overall premium revenue in 2005 was up 14.1% from last year’s level.

E-L’s results for 2004 have been restated to reflect changes in accounting policies.