EGI Financial Q3 results down 18.7%

EGI Financial Holdings Inc. (TSX: EFH) has reported a profit of Cdn$4.5 million for 2007 Q3, marking an 18.7% decrease over last years Q3.
The company reported a combined ratio of 88.5% and Cnd$42.3 million in direct written premiums, a 45.1% increase over the same period of time last year.
Net written premiums increased from 2006 Q3s Cdn$26.6 million to Cdn$39.6 million in 2007 Q3.
Underwriting income, however, decreased 43.2% to Cdn$3.5 million in 2007 Q3.
An EGI statement attributes the decline to increased loss ratios. This increase, it continues, is due to the low reported claims experience in the 2006 Q3, and a decline in the prior year reserve releases in 2007 Q3 to Cdn$2 million compared to Cdn$2.6 million in the same period of last year.
As the competitive insurance market creates challenges for EGI to grow its non-standard auto line of business, we remain focussed on continuing to diversify our business beyond the Ontario non-standard automobile market by profitably growing our Niche Products division, by pursuing opportunities in new geographic markets and new vehicles types, such as motorcycles, and by expanding our reinsurance business in the United States, Douglas McIntyre, CEO of EGI Financial, said in a statement.