EGI Financial Holdings reports strongth growth in premiums

EGI Financial Holdings Inc., reported an increase of 15.5% from Cdn$36.6 million in 2006 Q2 to Cdn$42.3 million in 2007 Q2, in direct written and assumed premiums, according to results for 2007 Q2 and six-months ended June 30.
The increase is attributed to a growth in motorcycle premiums in Ontario, new reinsurance treaties with AssuranceAmerica and continued significant growth in the Niche Products division, which offset the weakness in Ontario non-standard auto business.
Net written and assumed premiums also increased 19.2% due to these factors, in addition to more effective use of capital through risk retention, to Cdn$39.3 million.
Year-over-year increase in direct premiums written and assumed was reflected in net earned premiums that rose from Cdn$26.2 million last year to Cdn$29.8 million this year.
In 2007 Q2, total underwriting income increased 17.5% to Cdn$4.5 million as compared to Cdn$3.9 million in 2006 Q2, which is attributed to a reduction in the loss ratio in the Personal Lines division, which offset an increase in the loss ratio in the Niche Products division.
The strong growth in premiums and net income achieved in the second quarter of 2007, while maintaining profitability, is validation of our strategy to diversify our business beyond the Ontario non-standard automobile market, Douglas McIntyre, CEO, EGI Financial, said in a release. While underwriting results in the P&C insurance industry are trending down toward the industrys historic norms, EGIs new businesses are driving steady growth.