EGI Financial achieves underwriting profitability in its personal auto lines

EGI Financial Holdings Inc. (TSX: EFH) reported a net income of $3 million in 2011 Q1, marking an increase of $4.8 million over 2010 Q1.
The insurer also reported an improvement in its underwriting loss, quarter-over-quarter, improving from an underwriting loss of $5.8 million in 2010 Q1 to an underwriting loss of $113,00 in 2011 Q1.
The overall combined ratio improved 15 percentage points, to 100%, in 2011 Q1.
The company saw a marked improvement in the loss ratio of its personal lines division, from 87.4% in 2010 Q1 to 68.1% in 2011 Q1.
“The improved underwriting result in the personal lines division is attributable to the strong performance of non-standard auto, which achieved its target profitability for the quarter,” an EGI release says.
“A significant improvement was realized in Ontario auto results, a demonstration of the sustained positive impact of remedial actions that were taken to restore underwriting profitability. It is too soon to assess the benefit, if any, that the reforms may have on the non-standard auto business.”