Economical Insurance Group reports Q1 results

The Economical Insurance Group announced significant improvements in its consolidated financial results for the three months ended March 31, 2011.

The Group reported consolidated net income of $29.0 million for the first quarter of 2011, compared to $16 million in the same quarter of 2010. Economical said the increase was primarily due to significantly improved underwriting performance, with the combined ratio improving by 6.6 percentage points over 2010 to 93.6% and resulting in a return to underwriting profits for the quarter.

The Group’s total policyholders’ equity was $1,246.6 million at March 31, a 3.0% increase in the first three months of 2011.

“Economical’s performance has been strong this quarter, building on the momentum generated in 2010,” said Kathy Mabe, President and Chief Executive Officer, in a statement.  “The significant improvement in the combined ratio demonstrates the results of the decision last year to focus our ongoing efforts on high-quality, profitable business. In particular, the return to underwriting profitability and the marked improvement in the performance of our personal automobile business are especially gratifying.  We are starting to see the benefits of the 2010 auto reforms in Ontario, which is combining with our recent increased focus on proactive broker management and underwriting discipline to generate stronger results.”

Mabe added: “Our policy volumes have also stabilized.  Now that we have executed the tough actions needed to return to profitability, the improved quality of our insurance business, combined with our strong capital position, will form an excellent base for sustained, profitable growth in keeping with our long-term vision.”

The Economical Insurance Group Consolidated Highlights

($ in millions, except as otherwise noted)

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