Frédérique De Simone
May 21, 2019 09:30
The holding company Step Financial Holdings has reported a loss of net income of 259 % in the first quarter. The insurer had posted a net profit of 5.64 million dollars ($M) in 2018, while the results for the first quarter of 2019 instead display a loss of nearly$9 Million.
The fall is due in particular by reason of loss of subscription of$ 5.1 Million in insurance for individuals and$ 2 Million in insurance to businesses.
The trend of the last years showed that the first quarters of the year generally showed a stronger net profit which declined during the year. However, since the first quarter of 2018, the company’s net income Level was not increased, but a fall from one quarter to the other.
A harsh winter for the combined ratio
The combined ratio has also been affected. It has been brought to 108,8 % in the quarter ended march 31, 2019, while at the same date last year, it was of 95.5 %. “Our business in automotive and in our segments, personal and commercial, in Ontario and Quebec, have suffered the wrath of the negative impact of the extension of the winter weather conditions,” explains Serge Lavoie, president and ceo of Echelon.
Direct premiums written increased 25 % compared to last year, due to the growth in insurance products for individuals and businesses, on a national scale. The first quarter has 98,9 M$ compared to$ 79 Million last year.
The agreement of the sale of Echelon Insurance and its discontinued operations in Canada has been approved by the shareholders of the company at the end of the month of January 2019. The decision taken at an extraordinary meeting of shareholders has been submitted for approval to the regulatory authorities, which should render their verdict during the second quarter of 2019.