Kingston, Ont.-based Empire Insurance Company Tuesday reported lower net income of $98.7 million in 2014, compared to $113.3 million in 2013.
Earnings from the firm’s individual insurance product line were $27.5 million, down $38.9 million from 2013’s results. The decrease in long-term interest rates in 2014 versus the increase experienced in 2013 was the main cause for this, according to the firm. The firm also reported that sales in individual insurance were up by 7 per cent over 2013.
The wealth management product line produced $41.7 million in net income, an increase of $23.1 million from 2013, which is attributed to growth in segregated fund management fees and growth in segregated fund guarantee fees related to guaranteed minimum withdrawal benefit products. Wealth management sales increased 32 per cent between 2013 and 2014.
“Given the unfavourable interest rate environment, the weaker individual insurance results are not surprising,” says Mark Sylvia, president and CEO. “I am very pleased with the strength of our wealth management results and the balanced approach taken to update our segregated fund product line in 2014, recognizing the regulatory and economic environment while still providing Canadians with affordable guaranteed products.”
The employee benefits product line achieved $9.0 million in net income, compared to $8.6 million in 2013. However, sales were down by 19 per cent from 2013 levels.
Empire Life also reported its assets under management as $13.7 billion, an increase of 14.2 per cent over 2013 levels.