E-L Financial Corporation Profile
E-L Financial Corporation Limited operates as an investment and insurance holding company.
The company also owns investments in equities and fixed income securities directly, and indirectly, through pooled funds, closed-end investment companies and other investment companies.
The company has one major operating subsidiary, The Empire Life Insurance Company (‘Empire’ or ‘Empire Life’). The company owns in excess of 50% of the issued and outstanding common shares of United Corporations Limited (United), a public closed-end fund.
The company owns 100% of E-L Financial Services Limited (ELFS), a holding company, which in turn owns 98.3% of Empire. The company also owns 1.1% of Empire directly. United is a closed-end investment corporation.
The company’s investments include its operating subsidiary, Empire, and other corporate investments, which include direct investments in stocks and fixed income securities and indirect investments in stocks and fixed income securities through pooled funds, closed-end investment companies, and other investment companies. Other than Empire and United, the company’s most significant corporate investments are Economic Investment Trust Limited (Economic), another public closed-end investment company; and Algoma Central Corporation (Algoma), a publicly-traded Canadian shipping company.
Empire
Empire Life provides a broad range of wealth management products, individual life insurance products, employee benefit plans, and financial services to meet the needs of individuals, professionals, and businesses through a network of independent financial advisors (IFAs), managing general agents (MGAs), national account (NA) firms, and employee benefit brokers and representatives.
Empire Life serves more than 340,000 individual customers (including organizations); more than 10,900 group customers with over 250,000 certificate-holders; and 900 group retirement plans (pension and registered savings plans). Empire Life has relationships with more than 31,500 professional financial advisors through a network of IFAs, MGAs, NA firms and employee benefit brokers and representatives.
Empire Life has strong relationships with its distribution partners and has broadened its distribution reach by building and expanding on previously established relationships within the MGA network, continuing existing relationships within the IFA network, and increasing its market penetration within the NA channel, which includes mutual fund dealer firms, bank-owned investment dealer organizations, and large financial planning firms. Starting in 2016, Empire Life has partnered with several leading third party administrator firms across Canada. Empire Life has three major product lines, such as Wealth Management, Individual Insurance, and Employee Benefits.
Wealth Management
Empire Life’s Wealth Management product line comprises segregated fund products, guaranteed interest rate products, and mutual funds offered through ELII. Empire Life’s Wealth Management products (except mutual funds) are a form of annuity and are sold on both an immediate and a deferred basis. All of Empire Life’s Wealth Management products are non-participating.
Individual Insurance
Empire Life offers term life insurance, whole life insurance (participating and non-participating), health and disability insurance, and universal life insurance (the company stopped offering universal life insurance products at the end of 2016 but continues to administer in-force policies).
In 2020, the company launched several enhancements to its individual insurance product portfolio, such as Return of Premium on Death for Empire Life CI Protect Plus (April), a non-contractual Additional Deposit Option for its participating life insurance products (May), Term 25 life insurance product (June) and Disability Credit Protection (November). The Individual Insurance product line seeks to offer income protection and estate protection; and is marketed towards middle-income families, independent business persons, professionals, and individuals in the pre- and post- retirement market across Canada.
Empire Life’s Individual Insurance products are distributed through a network of IFAs, MGAs and NA firms.
Employee Benefits
Empire Life’s Employee Benefits products include life, short- and long-term disability, extended health, dental, critical illness, and accidental death and dismemberment, as well as creditor insurance products, all of which are sold on a non-participating basis only. Employee Benefits products are sold on an insured basis (where Empire Life assumes substantially all of the claims risk) or on an administrative services only basis (where plan administration and claims payment services are provided on a fee-for-service basis).
The target market for Empire Life’s Employee Benefits products is primarily small to medium sized businesses across Canada with fewer than 200 employees. Employee Benefits products are sold by independent producers working with specialized account executives based in offices located in major centres across Canada.
Since 2016, Empire Life has entered into a number of strategic partnerships, mainly with third-party administrators, as a means to expand market share while still focusing on the small to medium sized business owner. The target market for Empire Life’s Employee Benefits products is small and medium sized employers.
United
United is a closed-end investment corporation with an investment portfolio comprising global investments. United is an investment vehicle for long-term growth through investments in common equities.
The company engages investment managers for global equity mandates. Passive investment strategies are also utilized. As of December 31, 2021, there were six investment managers engaged in the management of separate actively managed investment portfolios. The largest concentration is with Burgundy Asset Management Ltd. (Burgundy). Burgundy is a global investment manager that commenced operations in 1991 and whose head office is in Toronto, Ontario. Investments are made primarily in publicly traded equity securities of companies in the U.S., Europe, Australia, Asia, and emerging markets.
Distribution Channels
Empire Life distributes its products through a variety of distribution channels.
Regulation
The activities of the company are governed by the Business Corporations Act (Ontario).
History
E-L Financial Corporation Limited was founded in 1968. The company was incorporated in 1968 under the Corporations Act (Ontario).
