EGI Financial reports decrease in Q3 net income; announces new CEO appointment

EGI Financial Holdings reported a net income of $779,000 for 2010 Q3, marking a 65.5% decrease over its $2.3-million profit in 2009 Q3.
During the quarter, EGI reported an underwriting loss of $2.9 million, a large decline from the underwriting profit of $284,000 reported in 2009 Q3.
The insurer attributed the loss primarily to high claims costs for the motorcycle line of business and for automobiles in the Greater Toronto Area.
Direct written premiums increased by 9% in 2010 Q3, to $48.6 million, when compared to 2009 Q3. The majority of this increase was recorded in the personal lines division, which grew by 15% during the quarter. Most of the growth occurred in the non-standard auto line of business, an EGI release says.
The loss ratio in personal lines was 80.7% in 2010 Q3, a deterioration from the 67.1% loss ratio reported in the same period of 2009.
EGI Financial also announced Steve Dobronyi, currently president and chief operating officer, will assume the role of CEO of EGI Financial effective Jan. 1, 2011. Douglas McIntyre, EGI Financial’s current CEO, will become EGI’s vice chair.
McIntyre will continue as executive chairman of Echelon General Insurance Company, and Dobronyi will continue as CEO of Echelon.