E-L Financial reports 74% decrease in 2007 Q3 profits

E-L Financial Corporation Limited, parent company of the Dominion of Canada General Insurance Company, has reported a 74% decrease in 2007 Q3 profits over the same period last year.
The company posted a net income of Cdn$20.3 million for 2007 Q3, compared to its 2006 Q3 profit of Cdn$77.7 million.
On a year-to-date basis, E-L Financial earned profits of Cdn$104.3 million, compared with Cdn$186.9 million for the same period of 2006.
The Dominion saw a 5.5% reduction in the growth rate of its automobile gross written premiums, down to Cdn$159 million for 2007 Q3.
Personal property showed a growth rate of 0.6%, to Cdn$59 million, in gross written premiums. Commercial property and casualty gross written premium showed the strongest growth rate at 8.8% and Cdn$51 million.
Average premiums have levelled off for personal automobile insurance, following several years of large decreases resulting from regulatory activity, a statement from the company says.
There is a decline in average premiums for commercial automobile, personal property and commercial lines due to ongoing price competition, it adds.
The decline in general insurance results reflects lower underwriting income, partly offset by higher investment income and realized gains on investments, the release says.