EGI Financial Holdings cites success of “remedial actions” in boosting net and underwriting income in 2010 Q4

EGI Financial Holdings reported a boost in its 2010 Q4 net income, which the company attributes to “remedial actions” taken over the past six to 12 months to restore profitability.
The company reported a 2010 Q4 net income of $3.3 million versus a loss of $2.3 million in 2009 Q4.
Underwriting income for the fourth quarter of 2010 was $2.1 million, a 122% increase over a $9.5-million loss in 2009 Q4.
“In personal lines, the company targeted incurred claims in the Greater Toronto Area, in an effort to restore the profitability of Ontario private passenger business,” the company announced.
“These initiatives included significant premium rate increases, changes to underwriting guidelines, the cancellation and rehabilitation of certain brokers, reduced commissions in select areas, the introduction of a maximum six-month policy term and, as a last resort, judicial use of the Ontario risk-sharing pool.”
In its niche products area, “the improved underwriting results are due to greater underwriting discipline, a renewed attention to our niche products operating principles and more active management at the program level, such as the repricing or cancellation of underperforming programs.”