EGI Financial reports Q2 net income of $1.9 million, down from $4.8 million
EGI Financial Holdings Inc. announced its results for the three and six-months ended June 30, 2010.
Q2 Financial Highlights include:
- Net income of $1.9 million, compared to $4.8 million in the second quarter of 2009
- Net income per fully diluted share of $0.15, compared to $0.38 in the second quarter of 2009
- Direct written premiums increased by 15% over the second quarter of 2009
- Net earned premium of $40.4 million, compared to $35.5 million in the second quarter of 2009
- Investment income increased to $6.1 million from $6.0 million in the second quarter of 2009
- Book value per share increased to $11.01 from $10.98 at the end of the second quarter 2009
- Total fair value of investment portfolio and premium finance receivables increased to $329.6 million from $276.2 million as at June 30, 2009.
“We reported continued growth in our Personal Lines and Niche Products divisions during the second quarter, despite operating in a challenging environment for property and casualty insurance companies. We believe our ongoing volume growth is another strong sign of hardening market conditions in the Ontario automobile insurance market. In the first six months of the year our premium volumes increased by 25% and we expect this trend to continue throughout the remainder of the year,” said Douglas McIntyre, Chief Executive Officer of EGI Financial, in a press release. “While insurance market conditions have had a negative impact on our business, our underwriting results have improved significantly from the first quarter of 2010.”
“In our International division, we continue to make steady progress on our U.S. expansion. Our U.S. subsidiary launched business in Texas during the second quarter of the year and expects to launch in Florida during the third quarter,” continued Mr. McIntyre. “Our U.S. expansion will be gradual and cautious, as we believe that by maintaining our strict underwriting and pricing practices, we will be able to capitalize on the tremendous opportunities that exist in the Southeastern U.S. as the economy there improves.”
