EGI Financial reports 2008 profits of Cdn$5.98 million

EGI Financial Holdings Inc. (TSX: EFH) has reported a 2008 net income of Cdn$5.98 million, marking a 60.3% decrease from 2007’s profit of Cdn$15 million.
The combined ratio for 2008 was 99.9% compared with 91.4% in the year prior.
The loss ratio in the 2008 period was 67.5% and the expense ratio was 32.6%. This compares with 59.5% and 31.9% respectively for 2007.
Underwriting income for the year was Cdn$163,000, a 98.4% decrease from the Cdn$10.2 million reported in 2007.
Net earned premiums increased by 31.5% year-over-year, with EGI reporting Cdn$157.3 million in 2008 compared to Cdn$119.6 million in 2007.
Investment income for 2008 was Cdn$10 million, marking a decrease from 2007’s investment income of Cdn$12.9 million.
The personal lines division loss ratio was 65.6% for the year, compared to 59.1% in 2007. The combined ratio for this division was 92.9% in 2008, marking an increase from 87.8% in 2007.
The niche products division loss ratio was 66% in 2008, an increase from 2007’s 56.1%.
“In a tough operating environment within the Canadian property and casualty industry, we successfully drove significant organic growth within our personal lines division, while maintaining solid underwriting results and with an encouraging auto insurance combined ratio of 92.9%,” said Douglas McIntyre, EGI’s CEO.