May 8, 2018 10:30
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For the quarter ended march 31, 2018, Echelon has recorded a 24% decline in net profit, which stood at 5.64 million dollars ($M), compared with 7,47 M$ in the first quarter of 2017. The combined ratio is also slightly deteriorated to 95 % compared to 94 %.
“Our first-quarter results have been positive. We ended the quarter with a combined ratio of 95 %. While the industry in general has suffered considerable losses during the winter, our results were not affected due to our focus on customers, small to medium in size, our retention limits are prudent, ” said Serge Lavoie, ceo of Echelon.
Increase of premiums written
In addition, the insurer recorded a jump of 45 % of its direct premiums written, which amounted to$ 79.3 Million for the first quarter. Echelon explains that it is the result of organic growth supported by a rise in interest rates by insurance companies. This sector has recorded fee income of$ 1.2 Million, up compared to$ 1 Million from the same period last year.
The personal insurance has seen its fee income also increased to reach$ 2 Million, compared to$ 1.9 Million. The segment has been witnessing a stable growth that comes primarily from automobile insurance industry.
“We are noticing a rise in premiums written in all segments and in all regions. We are putting in place more measures in relation to rates and to the subscription to ensure ongoing profitability, ” adds Mr. Lavoie.