6 November 2018 13:30
The benefits are rare for Economical Insurance since the second quarter of 2017. The insurer cash again a net loss of $ 33.3 million ($M) in the third quarter of 2018. It is, however, an improvement compared to the loss of$ 51.5 Million recorded in the corresponding period in 2017.
Although the year 2018 has no benefit, unlike 2017 where the first quarter showed a profit of$ 5.3 Million, the cumulative total for the first nine months of the year is better than the previous year. The net losses were$ 59.6 Million at September 30, 2018, compared to 64.7 M$ in 2017.
The combined ratio continues to oscillate, but always above the bar critique of 100 %. For the third quarter of 2018, it is 114.1 %, decrease compared to the combined ratio of 116.2 % in the corresponding quarter of 2017.
In contrast, the combined ratio deteriorated by 70 basis points, from 112,2 % 112,9 % for the first nine months of 2018.
The company said that the combined ratio includes the activities of Sonnet, the subsidiary Web direct to the insurer, and the investment made in the development and implementation of their new platform font management Vyne.
The corrective measures in question
Rowan Saunders, president and ceo of Economical justifies the bad results by the corrective measures put in place by the company and by the consequences of the increase in disasters.
“Our combined ratio for the quarter was strongly affected by the continuation of strategic investments and the disaster exacerbated. The bad weather conditions and catastrophic claims important developments throughout the year are one of the worst years of climate that we have known. We continue to implement corrective actions to improve our underwriting performance and to evaluate other needed actions, given the combined ratios are still high in our lines of automobiles throughout the country, ” he said.
Sonnet double its premiums
The insurer also recorded an increase of$ 74.7 Million (12.5 %) of its gross premiums written in the third quarter, from to 671 M$. In the segment of personal insurance, the increase was 19.4 %, thanks in large part to the subsidiary digital direct Economical. Without specifying exactly how much they amount, the insurer stated that its gross premiums written were doubled compared to the corresponding quarter of 2017.
Economical crunches, all the same, a loss of warrants of$ 79.4 Million, a decrease compared to the loss e 89.7 Million$ in the third quarter of 2017. The disasters have cost 37.5 M$ to the insurer, mostly due to tornadoes that have affected the provinces of Quebec and Ontario.