The Economical sees slight decrease in 2007 net income

The Economical Mutual Insurance Company has reported a net profit of Cdn$117.6 million for 2007, a decrease from 2006’s net income of Cdn$130 million.
Net claims and adjustment expenses also increased slightly from Cdn$946 million in 2006 to Cdn$983 million in 2007, according to statements of income filed with the Office of the Superintendent of Financial Institutions.
The company reported an underwriting profit in 2007 of Cdn$3.4 million, based on just over Cnd$1.9 billion in gross written premiums.
The Economical attributed its “strong results” to good investments and The Economical’s avoidance of the sub-prime and third party asset-backed commercial paper problems.
“The Group has no direct exposure to the subprime and third party asset backed commercial paper securities that have made headlines during this past year,” said Noel Walpole, president and CEO of The Economical. “Our high-quality investments provide ample security for our policyholders.”
Walpole said that given the expectation of a continuing soft market, “The Economical will focus on actions that result in preservation of capital. Our strategy is to grow aggressively in hard market conditions, and we have done just that by outpacing the industry during these periods.”