August 10, 2018 09:45
For the second quarter of 2018, Echelon has recorded a 24% increase in its net profit, which stood at 3.96 million dollars ($M), compared to$ 3.2 Million in the second quarter of 2017. The combined ratio is also slightly deteriorated to 97% compared to 94 %.
The insurer had experienced a decline in its net profit of 24 % in the first quarter of 2018.
Increase of premiums written
Echelon has been an increase in the direct premiums written of 33 % compared to the second quarter of 2017, 112,8 Million, compared to$ 85 Million. The insurer attributes this increase to the growth of the individual insurance and business insurance at the national level.
The personal insurance, saw its fee income increase to $ 1.6 Million, compared to$ 1.4 Million in the same quarter last year, with a stable growth, mainly from automobile insurance industry.
“Our results for the insurance of individuals were consistent with the second quarter of 2017. The results were driven by the good performance registered in Ontario and in Western canada and have been offset by the poor results of the Quebec and the Atlantic. We expect ongoing profitability in individual insurance due to a rate increase in Quebec, Nova Scotia and Alberta, ” explains Serge Lavoie, chief executive officer of Echelon.
Lower revenues from underwriting business
The sector of insurance business recorded a revenue of underwriting of$ 1 Million, compared to$ 2.1 Million in the second quarter of 2017. The results have been affected by the many fires recorded in the canadian West, says the insurer.
“The insurance business was still profitable despite these isolated incidents. We expect an increase of profitability for the future “, said Mr. Lavoie.