Canadian property and casualty insurance company EGI Financial has reported a net income of $13.9 million for the third quarter of the year, up from a net loss of $0.2 million for the same period in 2011.
Net operating income for the three months ended Sept. 30 was $2.6 million, compared to $2.3 million for Q3 in 2011. Net earned premiums were $45.7 million, an increase of 9.7% over the third quarter of 2011.Underwriting income came in at $0.2 million versus $0.5 million for the same period last year.
The company attributed its earnings of $19.1 million (before taxes) in the third quarter primarily to investment income of $20.8 million, compared with $0.9 million for the same quarter in 2011.
Direct written premiums increased by 23% to $57.8 million, which the company said is due to growth in its newly-formed international division, which accounted for $9.2 million in premiums written this quarter.
"Our core Personal Lines business, which accounts for the majority of our earned premiums, continues to perform well and has increased its underwriting profits by 86% so far this year," Steve Dobronyi, EGI’s CEO said in a statement on the results.
"In the third quarter, underwriting results in our Niche Products division improved dramatically over the second quarter,” he added. “However, the runoff of cancelled programs again had a negative impact on results. We continue to work on improving the division's performance by focusing on fewer, more profitable programs and exiting volatile product lines with long claims tails.”
“To further facilitate profitability, we have recently reorganized our Canadian division to combine the underwriting and operations of the Niche Products and Personal Lines businesses. We believe that this will provide us with a more integrated team approach and a more focused strategic direction."