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Preferred Share Description
Empire Life Insurance Company (EML.PR.A)
5.75% Non-cumulative, Redeemable, Rate-Reset, Preferred Shares, Series 1
Prospectus - January 28, 2016
Marketing Summary - January 25, 2016
DBRS Credit Rating Update: May 27, 2019 - DBRS confirmed The Empire Life Insurance Company’s Financial Strength Rating and Issuer Rating at “A,” as well as its Subordinated Debt rating at A (low). DBRS also confirmed the Preferred Shares rating at Pfd-2. All trends are Stable.
The ratings and Stable trend reflect Empire’s position as a consistently performing life insurer with a proven track record of generating stable earnings while maintaining a conservative risk profile. The Company is a smaller player in the largely consolidated Canadian life insurance industry, maintaining a market share of approximately 2% of industry direct premiums. Empire has demonstrated consistent revenue generation over the years, resulting from a diversified mix of products across the individual life insurance, group insurance and wealth management segments. The Company’s strengths lie in its stable earnings generation, prudent risk management and strong capitalization relative to the risks undertaken
Note: Empire Life Insurance Company operates as a division of E-L Financial Corporation (ELF:CA).
- DBRS Rating
- Pfd-2 Stable Trend
- DBRS Rating Date
- Shares Issued
- Issued Date
- Shares O/S
- O/S Date
- $1.4375 per share per year
- Dividend Dates
- Payable on the 17th day of January, April, July and October
- Dividend Details
- The dividend rate is fixed until April 17, 2021. On April 17, 2021 and on April 17th every fifth year thereafter, the annual dividend rate will be reset to a annual rate equal to the sum of the 5-Year Government of Canada Bond Yield (“GCAN5YR”) plus 4.99%.
- The company can not redeem the shares prior to April 17, 2021. On April 17, 2021 and on April 17th every fifth year thereafter, the company may, at its option, redeem all or a portion of the shares outstanding at $25.00 per share.
- On April 17, 2021 and on April 17th every fifth year thereafter, the holders of the Series 1 Preferred Shares will have the right, at their option, to convert any or all of their shares into an equal number Series 2, Floating Rate, preferred shares. The holders of Series 2 Preferred Shares will be entitled to receive dividends, calculated and paid, quarterly. The Floating Quarterly Dividend Rate will be equal to the sum of the three-month Government of Canada Treasury Bill rate plus 4.99%. In addition, holders of the Series 2, Floating-Rate, preferred shares will have the option to convert all or a portion of their shares into an equal number of Series 1, Rate-Reset, preferred shares on April 17th 2026 and on April 17th every fifth year thereafter.
- Lead Underwriter(s)
- Scotia Capital Inc., CIBC World Markets Inc. and TD Securities Inc.
- Transfer Agent
- CST Trust Company
- CST Trust Company
- Dividend Reinvestment Plan
- Not available to preferred shareholders
- Convertible by Company
- Last Updated