E-L Financial Corporation Limited: Strong Q3 2024 Results and Dividend Increase

E-L Financial Corporation Limited (ELF) has reported robust financial results for the third quarter of 2024, reflecting the company's strong performance and strategic positioning. The company's net equity value per common share increased to $2,262.20 as of September 30, 2024, up 14.9% from December 31, 2023, and 6.5% from June 30, 2024. This growth is a testament to ELF's ability to generate value for shareholders.
ELF's consolidated shareholder's net income for the third quarter of 2024 was $497 million, or $146.56 per common share, compared to a net loss of $57 million, or $17.73 per common share, in the same period in 2023. For the first nine months of 2024, ELF reported a consolidated shareholder's net income of $1,276 million, or $375.64 per common share, compared to $432 million, or $121.42 per common share, in the same period in 2023.
E-L Corporate, a key contributor to ELF's overall financial results, reported a net gain on investments of $325 million for the third quarter of 2024, compared to a net loss of $103 million in the same period in 2023. This significant turnaround was driven by a 5% pre-tax total return, including dividend income, for the third quarter of 2024, compared to a negative 1% return in the prior year. For the first nine months of 2024, E-L Corporate's investment portfolio generated a pre-tax total return of 20%, compared to 9% in the same period in 2023, contributing to a net gain on investments of $1,169 million.
Empire Life, another major contributor to ELF's financial performance, reported a net income of $176 million for the third quarter of 2024, compared to a net loss of $5 million in the same period in 2023. This improvement was driven by gains in the net investment and insurance finance result, due to favorable yield curve movements and insurance contract liability assumption updates. Empire Life's Life Insurance Capital Adequacy Test (LICAT) total ratio was 154% at September 30, 2024, well above the requirements set by the Office of the Superintendent of Financial Institutions Canada and Empire Life's minimum internal targets.
ELF's strong financial performance has led to an increase in its quarterly dividend. The Board of Directors declared a quarterly dividend of $3.75 per common share, payable on January 17, 2025, with a record date of December 31, 2024. This increase reflects the company's confidence in its future prospects and commitment to returning value to shareholders.

ELF's robust financial performance, driven by the strong results of E-L Corporate and Empire Life, positions the company well for continued growth and value creation. The company's ability to generate significant value through strategic investment decisions and its commitment to returning value to shareholders make it an attractive investment opportunity.