February 22, 2018 09:45
Photo : Freepik
Economical insurance is a challenge for a second year in a row. The insurer cash, a net loss of $ 28 million ($M) for the fourth quarter of 2017, while the loss amounted to 38.3 Million during the fourth quarter of 2016.
“Our operational performance disappointing in the fourth quarter reflected the trends we have experienced throughout the year,” says the CEO of Economical, Rowan Saunders. The company recorded a net loss of 92.7 M$ for the entire year, compared with$ 20.3 Million for 2016.
The combined ratio of the insurer is 118 % for the fourth quarter, when it amounted to 114.4 % for the same period in 2016. For the year, the business recorded a combined ratio of 113,7 % compared to 109,1 % in the past year.
Increase of the written premiums gross
Gross written premiums were $ 541,4 M$ in the fourth quarter of 2017, compared to 521,8 M$ for the same period of the previous year, resulting from an increase of 3.8 %. The total written premiums gross of the year amounted to 2.3 billion dollars (G$), compared to$ 2.1 billion, representing an increase of 9.7 %. The company attributes this increase to the growth of its insurance industry, individuals.
Economical has experienced a loss of subscription 99.9 M$ for the last quarter, while this loss was 72.1 M$ for the same quarter of the previous year. The insurer assigns these numbers to the difficulties of the automotive sector of Ontario, Alberta and British Columbia. For the year 2017, the loss of the subscription is $ 295,7 Million, compared to 178,4 M$ for the previous year.
“In response to these challenges, we have implemented a range of pricing corrective, actions of underwriting and management of brokers improvements that will intensify in 2018, but that will take some time to appear in our results,” concludes Mr. Saunders.