EGI Financial Holdings records fifth consecutive quarterly profit in 2011 Q2

EGI Financial Holdings Inc (TSX: EFH) has reported a profit of $1.4 million for 2011 Q2, its fifth consecutive profitable quarter.
The quarterly profit of $1.4 million in 2011 Q2 compared to a $2-million profit during 2010 Q2.
The company’s net earned premiums of $41 million in 2011 Q2 represented a 2% increase over 2010 Q2. The company also improved the combined ratio in its core non¿standard auto business – from 106% in 2010 Q2 to 92% in 2011 Q2.
“We’re very pleased with the improvements that we continue to see in our underwriting results”, said EGI Financial CEO Steve Dobronyi. “We recorded an underwriting profit in Ontario auto insurance for the third consecutive quarter and our overall combined ratio for auto insurance was 92%. These improvements can be attributed directly to initiatives taken by management in 2010 to restore the profitability of the business.”
These initiatives included 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.