E-L Financial Corporation Limited Announces March 31, 2011 Interim Financial Results

E-L Financial Corporation Limited ("E-L Financial")
(TSX:ELF)(TSX:ELF.PR.F)(TSX:ELF.PR.G) today reported that for the quarter ended
March 31, 2011, it earned net consolidated operating income(1)of $25.1 million
or $5.74 per share compared with $12.4 million or $2.52 per share for the
comparable period in 2010. 




--  E-L Corporate's net operating income, which represents dividend,
    interest and other income, for the first three months of 2011 remained
    at a consistent level with the prior year. 
    
--  The Dominion of Canada General Insurance Company's increase in the
    quarter's operating income mainly reflects higher investment income and
    a reduction in claims expense resulting from an increase in the claims
    discount rate in the first quarter of 2011 (insignificant in 2010). 
    
--  The Empire Life Insurance Company's increase in net operating income was
    due primarily to better mortality and surrender experience in the
    Individual Insurance product line in 2011. Net operating income also
    improved due to a non-recurring loss in the first quarter of 2010
    related to a change in actuarial method. This change in actuarial method
    was related to the January 1, 2010 transition to IFRS. 



Net income

For the three months ended March 31, 2011, E-L Financial earned a consolidated
net income of $50.2 million or $12.11 per share compared with $18.8 million or
$4.13 per share in 2010.




--  E-L Corporate showed significant improvement in net income as realized
    gain on AFS investments, the fair value change in FVTPL investments and
    investments in associates increased during the quarter compared to the
    prior year, reflecting improvements in global stock markets. 
    
--  The Dominion's increase in the quarter's net income from last year
    mainly reflects higher net realized investment gains. 
    
--  Empire Life's increase in net income was due to the improvement in
    operating income partially offset by a decrease in the realized gains on
    AFS investments including impairment write downs. 



Comprehensive income

E-L Financial earned consolidated comprehensive income of $45.8 million or
$11.01 per share in 2011 compared with $21.5 million or $4.83 per share for the
comparable period in 2010. Consolidated other comprehensive loss ("OCL") was
$4.4 million or $1.10 per share compared with other comprehensive income ("OCI")
of $2.7 million or $0.70 per share for the comparable period in 2010.




--  E-L Corporate's increase in OCL reflects an increase in realized gains
    being reclassified to net income during the first quarter of 2011
    relative to the prior year. 
    
--  The Dominion's OCL in the first quarter of 2011 is due to a net
    unrealized investment loss and an increase in the reclassification of
    realized gains on sale of common share investments to net income from
    accumulated other comprehensive income. Prior year's other comprehensive
    income of $6.5 million was due mainly to unrealized gains in the fair
    value of common share investments. 
    
--  Empire Life's OCI increased during the first quarter of 2011 relative to
    the first quarter of 2010 due to a stronger rise in Canadian stock
    markets in 2011 and the reclassification to net income of a lower
    realized gain in 2011 than in the first quarter of 2010. 



"We are very pleased with the substantial improvement in the operating
profitability of E-L's two major subsidiaries" said Duncan Jackman, Chairman,
President and CEO of E-L Financial. "On behalf of the Board of Directors, I
would like to thank all the employees of The Dominion and Empire Life for their
hard work during these challenging times."


CONSOLIDATED SUMMARY OF COMPREHENSIVE INCOME (LOSS)



----------------------------------------------------------------------------
                                      Period ended March 31, 2011           
                            ------------------------------------------------
                                    E-L         The      Empire             
(thousands of dollars)        Corporate    Dominion        Life       Total 
----------------------------------------------------------------------------
Net operating income         $    3,308  $   13,389  $    8,387  $   25,084 
Realized gain on available                                                  
 for sale investments                                                       
 including impairment write                                                 
 downs                            1,125       8,027       2,778      11,930 
Share of income of                                                          
 associates                       7,142           -           -       7,142 
Fair value change in fair                                                   
 value through profit or                                                    
 loss investments                 6,018                               6,018 
----------------------------------------------------------------------------
Net income                       17,593      21,416      11,165      50,174 
Other comprehensive (loss)                                                  
 income                          (2,587)     (4,911)      3,122      (4,376)
----------------------------------------------------------------------------
Comprehensive income (loss)  $   15,006  $   16,505  $   14,287  $   45,798 
----------------------------================================================
                                                                            
                                                                            
----------------------------------------------------------------------------
                                      Period ended March 31, 2010           
                            ------------------------------------------------
                                    E-L         The      Empire             
(thousands of dollars)        Corporate    Dominion        Life       Total 
----------------------------------------------------------------------------
Net operating income (loss)  $    3,780  $   11,532  $   (2,875) $   12,437 
Realized gain (loss) on                                                     
 available for sale                                                         
 investments including                                                      
 impairment write downs             (23)        357       4,640       4,974 
Share of loss of associates      (1,920)          -           -      (1,920)
Fair value change in fair                                                   
 value through profit or                                                    
 loss investments                 3,303                               3,303 
----------------------------------------------------------------------------
Net income                        5,140      11,889       1,765      18,794 
Other comprehensive income                                                  
 (loss)                          (1,296)      6,520      (2,487)      2,737 
----------------------------------------------------------------------------
Comprehensive income (loss)  $    3,844  $   18,409  $     (722) $   21,531 
----------------------------================================================
                                                                            
(1)Use of non-GAAP measures:                                                
"net operating income (loss)" is net income excluding realized gain (loss)  
on AFS investments including impairment write downs, the Company's share of 
income (loss) from associates and the fair value change in FVTPL investments
in the E-L Corporate portfolio, all net of tax. The term net operating      
income (loss) does not have any standardized meaning according to GAAP and  
therefore may not be comparable to similar measures presented by other      
companies.