Hi-Alta net income doubles in first quarter

Broker consolidator Hi-Alta Capital Inc. (TSE: HIA) is reporting a 212% jump in net income for the first quarter of this year, compared with the same period in 2001. For the three months ending March 31, 2001, the company saw net income of $426,700, versus $136,800 for the first quarter of 2001. This leads to a rise in earnings per share of 200%, to $0.03 in Q1 2002 from $0.01 in Q1 2001.
Revenue grew 17% for the same period, to $5.88 million from $5.02 million, on the back of premium increases. However, the hardening market also represents a challenge for brokers, notes Hi-Alta president and CEO Scott Tannas. “Insurance premiums are on the rise, giving revenues and profits a lift,” he says. “This benefits us in the short term, but higher premiums mean we have to work harder to meet our commitment to find good products at reasonable prices for our customers.”
The company is planning a re-branding and repositioning initiative to be officially launched next month. In an effort to add new customers and cross-sell multiple products to existing customers, the company wants to reposition itself as “a provider of a variety of financial products, including insurance, investments, and agency banking”, states a Hi-Alta release.