November 15, 2018 13:30
Echelon Insurance has reported a net profit of $ 170 million (M$) in the third quarter of 2018, a decrease of 79% compared to the corresponding period of the previous year. The insurer had posted a net income of 810 M$.
Since 2017, the net income of Echelon is a roller coaster. Serge Lavoie, president and CEO of the company, is happy to say that the results for the quarter are ” positive “. “Overall, we are pleased with our recent progress and satisfied with the gradual return to profitability observed in our results for the third quarter of one year to the next. “
In an interview to the Journal of insurance last July, Mr. Lavoie said he was confident of return to profitability by 2018. The cumulative first three quarters confirms that the company seems to be on the right track, with a net income of$ 9.8 Million, although there is a negative difference of 15 % compared to the first nine months of 2017.
“During the quarter, we have witnessed a strong growth and profitability in our largest regions, Ontario and Quebec. These results were offset by weaker performance to be weak in the Atlantic and Western canada. We conduct active reviews of rates and pricing to improve the profitability of these regions, ” he said by way of a press release regarding quarterly results.
Loss underwriting despite a rise in premiums
Despite a rise in net premiums acquired of 59 % between the third quarter of 2017 and 2018, Step records a loss in the underwriting of nearly $ 1.5 million. Nevertheless, it is an improvement compared to the quarter ended September 30, 2017, then that Step had recorded a loss on underwriting of$3.4 Million.
The insurer explains that the premium increase is explained by organic growth in both personal insurance as in the area of business. The latter has recently experienced a rise in premiums, which came to support this growth.