4 May 2018 13:30
Photo : Freepik
The harsh winter has had because of the financial results ofEconomical Insurance. The insurer recorded a net loss of $ 1.2 million ($M) in the first quarter of 2018, compared to earnings of$ 5.3 Million for the same period of 2017. The combined ratio also deteriorated, increasing from 2.7 points to reach 109.9 %.
What’s more, the Company has experienced a decrease in its written premiums in gross, that reach 470,8 M$, a decrease of$ 17.8 Million, for the quarter ended march 31, 2018. The net earned premiums, however, increased from 521,3 Million during the first quarter of 2017 to 549,7 M$.
«Bad winter conditions have had an impact on our underwriting operations for the first quarter, with an unusual cold and fluctuations are frequent in the temperatures of January,» says Rowan Saunders, president and ceo of Economical. To address our problems of underwriting, we continued to implement corrective measures at the rate, improved the measures of underwriting and broker management, and are planning other actions this year. «
Loss of insurance underwriting business
The insurance business has suffered a loss from underwriting of$ 23.9 Million, compared to a loss of$ 10.8 Million in the same quarter of 2017. Mr. Saunders says that a decline in gross premiums written was necessary in the sector to achieve a threshold of sustained profitability.
The insurance industry has recorded a revenue of underwriting of$ 7.5 Million in the first quarter of 2018, a slight increase compared to$ 6.9 Million for the corresponding period of the previous fiscal year.
«Consistently with our focus on profitability, we announced a restructuring program in February to maximize our effectiveness and our organizational structure,» said Mr. Saunders.
Implementation of a new platform
«While our platform Vyne in insurance individuals to progress towards its launch later this year, our investment in its development will continue to have a financial impact. We expect that Vyne improves the efficiency of operations, pricing, underwriting and ease of doing business with our broker partners. But these benefits will take time to be felt, » said Mr Saunders.