EGI Financial sees 2006 Q3 growth in niche products division

EGI Financial Holdings Inc. (TSX:EFH) has announced a “very strong performance” in its 2006 Q3 underwriting business, driving a 170% improvement in quarterly earnings per share.
In 2006 Q3, EGI Financial continued to show strong growth in its niche products division, the company announced in a press release.
“This growth, combined with the addition of the Ontario motorcycle program, has offset the reduction in the Ontario non-standard automobile segment to produce a flat top line result,” the company said.
Direct written premiums in the quarter totaled Cdn$29.2 million a 1% increase over the 2005 Q3 total of Cdn$28.5 million.
“Despite the modest increase in direct written premiums, net earned premiums rose 42% in the 2006 period, from Cdn$20.1 million to Cdn$28.5 million, as a result of the termination of the quota share reinsurance arrangements effective Dec. 31, 2005,” the company reported.
The combined ratio for 2006 Q3 improved to 78.1%, compared with a ratio of 98.6% in 2005 Q3.
“We were very pleased by the performance of our business in the third quarter, particularly given the competitive conditions in our core automobile business,” said EGI Financial CEO Douglas McIntyre. “Our strong results, driven by steady growth in net revenue and excellent performance in underwriting and claims, underlines our proven success in analyzing risk and pricing appropriately.”