Empire Life reports third quarter results

Q3 2025 highlights (compared to Q3 2024)

— Common shareholders' net income of $93 million (compared to net income of $177 million)

— Earnings per share (basic and diluted) of $94.60 (compared to $179.88)

The Empire Life Insurance Company (Empire Life) reported third quarter Common shareholders' net income of $93 million. This strong result reflected a solid Net investment and insurance finance result, due to positive impacts from interest rate movements. While Common shareholders' net income decreased $84 million compared to the third quarter of 2024, this is primarily attributable to an even more favourable Net investment and insurance finance result in the comparative period. In addition to this, the impacts of assumption updates were more favourable in the third quarter of 2024 than in the current period.

“In our third quarter, we experienced solid growth in our new sales and deposits within our insurance and investment lines. Our segregated fund assets have seen steady growth, surpassing $10 billion this quarter,” says Mark Sylvia, President and Chief Executive Officer. “Our Life Insurance Capital Adequacy Test (LICAT) ratio also remains very strong due to our robust capital base.”

Financial highlights

Third Quarter Year to Date(in millions of dollars except per share amounts) 2025 2024 2025 2024Common shareholders' net income (loss) $ 93 $ 177 $ 195 $ 265Earnings per share – basic and diluted $ 94.60 $ 179.88 $ 198.36 $ 268.68 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30Other Financial Highlights 2025 2025 2025 2024 2024Return on common shareholders' equity(1) 12.3% 17.6% 18.1% 17.4% 24.0%LICAT total ratio 145% 142% 140% 151% 154%(1) See Non-IFRS measures section.

The following table provides a summary of Empire Life results for the three and nine months ended September30, 2025 and 2024.

For the three months ended For the nine months ended(in millions of dollars) September 30, 2025 September 30, 2024 September 30, 2025 September 30, 2024Insurance service resultInsurance revenue $ 386 $ 357 $ 1,138 $ 1,048Insurance service expenses (333) (271) (942) (852)Insurance service result 53 86 196 196Net recovery (expense) from reinsurance contracts held (10) (24) (44) (53)Net insurance service result 43 62 152 143Investment and insurance finance resultInvestment income (loss), excluding segregated fund account balancesInvestment income 222 502 319 481Change in investment contracts (10) (19) (22) (25)Net investment result, excluding segregated fund account balances 212 483 297 456Insurance finance income (expense), excluding segregated fund account balancesInsurance contracts (93) (289) (85) (184)Reinsurance contracts held (5) 25 1 30Net insurance finance income (expense), excluding segregated fund account balances (98) (264) (84) (154)Segregated fund account balances net investment and insurance finance resultInvestment income (loss) on investments for segregated fund account balances 585 609 1,042 1,068Insurance finance income (expenses) segregated fund account balances (585) (609) (1,042) (1,068)Segregated fund account balances net investment and insurance finance result – – – -Net investment and insurance finance result 114 219 213 302Other income and expensesFee and other income 10 8 27 31Non-insurance expenses (31) (27) (101) (81)Interest expenses (4) (4) (13) (12)Total other income and expenses (25) (23) (87) (62)Net income (loss) before taxes 132 258 278 383Income taxes (31) (72) (64) (100)Net income (loss) after taxes 101 186 214 283Less: net income (loss) attributable to the participating account 5 6 10 10Shareholders' net income (loss) 96 180 204 273Less: preferred share dividends declared and distributions on other equity instruments 3 3 9 8Common shareholders' net income (loss) $ 93 $ 177 $ 195 $ 265

The drivers of our reported Common shareholders' net income are Net insurance service result, Net investment and insurance finance result, and Total other income (expense). Below is a summary of the movements in these balances during the quarter.

— Net insurance service result decreased by $19 million in the third quarter compared to the same period in 2024. This was driven by the contrast between the favourable impact of assumption updates in the Group Solutions results in the third quarter of 2024, and the unfavourable impact of assumption updates in the Individual Insurance segment in the current quarter.

— Net investment and insurance finance result decreased by $105 million in the third quarter of 2025 compared to the same period in 2024. This comparison reflects less favourable interest rate movements this quarter, and the absence of the favourable impacts of assumption updates that were recognized in the third quarter of the prior year, even as the current quarter's results remained strong.

— Total other expenses were $25 million in the third quarter compared to $23 million in the same period in 2024. The $2 million change was related to an increase in Non-insurance expenses, primarily related to investments in information systems and process efficiency, and higher activity in our non-insurance distribution channels.

The Company's Life Insurance Capital Adequacy Test Total ratio was 145% at September30, 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 September30, 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 September30, 2025,

Empire Life had total assets under management of $20.5 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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