Empire Life reports second quarter results

Q2 2025 highlights (compared to Q2 2024)

— Common shareholders' net income of $32 million (compared to net income of $35 million)

— Earnings per share (basic and diluted) of $32.66 (compared to $35.94)

The Empire Life Insurance Company (Empire Life) reported second quarter Common shareholders' net income of $32 million, a decrease of $3 million compared to the second quarter of 2024. The decrease was driven by a lower Net investment and insurance finance result and a decrease in Fee and other income. These decreases were slightly offset by an improved Net insurance service result, related to favourable mortality experience in the Individual Insurance segment and improved claims experience in Group Solutions.

“We remain focused on responsible capital and liquidity management to ensure the efficient use of resources and drive shareholder value,” says Mark Sylvia, President and Chief Executive Officer. “Our focus on financial stability is reflected in our recent upgraded ratings from DBRS Morningstar to A (high) from A thanks in part to our diversified earnings power and access to distribution.”

Financial highlights

Second Quarter Year to Date(in millions of dollars except per share amounts) 2025 2024 2025 2024Common shareholders' net income (loss) $ 32 $ 35 $ 102 $ 87Earnings per share – basic and diluted $ 32.66 $ 35.94 $ 103.76 $ 88.80 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30Other Financial Highlights 2025 2025 2024 2024 2024Return on common shareholders' equity(1) 17.6% 18.1% 17.4% 24.0% 12.7%LICAT total ratio 142% 140% 151% 154% 152%(1) See Non-IFRS measures section.

The following table provides a summary of Empire Life results for the three and six months ended June 30, 2025 and 2024.

For the three months ended For the six months ended(in millions of dollars) June 30, 2025 June 30, 2024 June 30, 2025 June 30, 2024Insurance service resultInsurance revenue $ 379 $ 351 $ 752 $ 690Insurance service expenses (306) (299) (610) (581)Insurance service result 73 52 142 109Net recovery (expense) from reinsurance contracts held (14) (9) (34) (28)Net insurance service result 59 43 108 81Investment and insurance finance resultInvestment income (loss), excluding segregated fund account balancesInvestment income (69) 75 97 (21)Change in investment contracts (4) (5) (12) (7)Net investment result, excluding segregated fund account balances (73) 70 85 (28)Insurance finance income (expense), excluding segregated fund account balancesInsurance contracts 86 (44) 8 105Reinsurance contracts held 5 2 5 6Net insurance finance income (expense), excluding segregated fund account balances 91 (42) 13 111Segregated fund account balances net investment and insurance finance resultInvestment income (loss) on investments for segregated fund account balances 408 17 456 459Insurance finance income (expenses) segregated fund account balances (408) (17) (456) (459)Segregated fund account balances net investment and insurance finance result – – – -Net investment and insurance finance result 18 28 98 83Other income and expensesFee and other income 9 15 17 23Non-insurance expenses (33) (32) (69) (54)Interest expenses (5) (4) (9) (8)Total other income and expenses (29) (21) (61) (39)Net income (loss) before taxes 48 50 145 125Income taxes (9) (10) (32) (27)Net income (loss) after taxes 39 40 113 98Less: net income (loss) attributable to the participating account 4 2 5 5Shareholders' net income (loss) 35 38 108 93Less: preferred share dividends declared and distributions on other equity instruments 3 3 6 6Common shareholders' net income (loss) $ 32 $ 35 $ 102 $ 87

Empire Life reported Common shareholders' net income of $32 million in the second quarter of 2025, a decrease of $3 million compared to the second quarter of 2024. The period over period decrease was driven by less favourable Net investment and insurance finance results as well as an increase in Total other expenses when compared to the same period in 2024.

Net insurance service result increased by $16 million in the second quarter compared to the same period in 2024. The period-over-period change was primarily related to improved mortality experience in the Individual Insurance segment in addition to more favourable long-term disability claims experience in the Group Solutions segment relative to the second quarter of 2024.

Net investment and insurance finance result decreased by $10 million in the second quarter of 2025 compared to the same period in 2024 due to the moderately unfavourable effect of interest rate increases in the current period compared to interest rate movements in the second quarter in 2024.

Total other expenses were $29 million in the second quarter compared to $21 million in the same period in 2024. The $8 million increase was primarily related to gains recognized during the comparative quarter within Fee and other income in the Capital and Surplus segment, related to the disposal of Property and equipment.

The Company's Life Insurance Capital Adequacy Test Total ratio was 142% at June 30, 2025, well above the requirements set by the Office of the Superintendent of Financial Institutions, Canada as well as Empire Life's internal targets.

Non-IFRS measures

Empire Life uses non-IFRS measures including return on common shareholders' equity, assets under management, annualized premium sales, gross and net sales for segregated funds and fixed annuities to provide investors with supplemental measures of its operating performance and to highlight trends in its core business that may not otherwise be apparent when relying solely onfinancial measures as defined in IFRS Accounting Standards. Empire Life also believes that securities analysts, investors and other interested parties frequently use non-IFRS measures in the evaluation of issuers. Empire Life's management also uses non-IFRS measures to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and to determine components of management compensation. Empire Life believes that these measures provide information useful to its shareholders and policyholders in evaluating the Company's underlying financial results. Further information on these non-IFRS measures can be found in Empire Life's latest Management's Discussion & Analysis (MD&A), filed on Empire Life's profile available at www.sedarplus.ca.

Additional information

All amounts are in Canadian dollars and are based on the consolidated financial results of Empire Life for the period ended June30, 2025. Additional information about Empire Life can be found in Empire Life's latest MD&A and Annual Information Form. These documents are filed on Empire Life's profile available at www.sedarplus.ca.

About Empire Life

Established in 1923 and a subsidiary of E-L Financial Corporation Limited, Empire Life provides individual and group life and health insurance, investment and retirement products. The Company's mission is to provide expertise and intelligent solutions to help Canadians navigate life with confidence. As of June30, 2025, Empire Life had total assets under management of $19.7 billion. Follow us on social media @EmpireLife or visit www.empire.ca for more information.

SOURCE The Empire Life Insurance Company

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