EGI Financial reports Q4 income of $5.4 million
EGI Financial Holdings Inc. has announced its results for the three and twelve months ended December 31, 2010.
Q4 Financial Highlights
- Total comprehensive income of $5.4 million compared to a loss of $(5.1) in the fourth quarter of 2009
- Net income of $3.3 million from a loss of $(2.3) million in the fourth quarter of 2009
- Net income per fully diluted share of $0.26 compared to a loss of $(0.19) in the fourth quarter of 2009
- A 16% increase in net earned premiums over the fourth quarter of 2009
- Investment income of $3.7 million – excluding realized gains, investment income was $3.3 million versus $2.7 million in the fourth quarter of 2009
- A 10% increase in book value from the end of the fourth quarter of 2009 – book value at December 31, 2010, is $146 million, or $12.14 per share
- An 8% increase in the total fair value of the investment portfolio (including premium finance receivables) to $398 million during the quarter
“We are pleased to report our third consecutive profitable quarter,” said Steve Dobronyi, Chief Executive Officer of EGI. ”Our underwriting results continue to improve and, in the fourth quarter, we reached our profitability target by recording a combined ratio of 95%. These results are evidence that the remedial actions taken over the past six to twelve months to restore the profitability of the business are having the desired effect.”
“Both our Personal Lines and Niche Products divisions recorded an underwriting profit for the quarter,” continued Mr. Dobronyi. “This is our fourth consecutive quarter of improved underwriting performance and we’re pleased to be ahead of where we expected to be at this point in time. The increase in earned premiums demonstrates that our company continues to grow but at a controlled and more manageable rate.”
“Our balance sheet remains strong and our regulated entities are well capitalized,” added Mr. Dobronyi. “We have a high quality investment portfolio, no goodwill and no debt. These attributes all contribute to our A.M. Best issuer credit rating of bb+”.
“Going forward, our priorities are clear,” Mr. Dobronyi concluded. “The Ontario automobile market remains in disrepair, which provides opportunities for specialty insurers such as EGI. We will protect our core non-standard automobile business through optimum service to our producers and the sophisticated selection of risk. We will diversify by product through the growth of our Niche Products division and by geography through our start-up U.S. operation and expansion into underserved segments of the Canadian market. We expect 2011 to provide a number of compelling opportunities for enhanced growth and profitability and we have the right team in place to capitalize on them as they arise.”
For the twelve months ended December 31, 2010, the Company recorded net income of $4.2 million, compared with net income of $4.5 million in the same period of 2009. During the year an underwriting loss of $9.8 million was incurred, an increase of $0.5 million from the twelve months ended December 31, 2009.
