The Economical grows net income by 11.9% in 2011

The Economical Insurance Group posted a net income of $91 million for 2011, marking an 11.9% increase over the 2010 net income of $81.3 million.

The insurer’s combined ratio improved from 102.9% in 2010, to 98.1% in 2011.

Underwriting results improved from an underwriting loss of $48.5 million in 2010 to an underwriting gain of $32.4 million in 2011. Investment income, on the other hand, decreased 27.2% from $175.2 million in 2010 to $148.0 million in 2011.

“Economical has now successfully transitioned from several years of corrective underwriting actions and strategic repositioning, and in 2012 we will continue to build upon these very positive results,” said Karen Gavan, Economical’s president and CEO.

“We remain encouraged by the Department of Finance’s clear commitment to providing a regulatory framework for demutualization. We also continue to have discussions with the Department of Finance in relation to this process.”