Echelon Insurance reports net income of $2.6M
Reported total pre-tax loss on invested assets of $0.6 million in Q4.
- Net operating income on continued operations was $0.40 per share compared to an income of $0.39 per share in the fourth quarter of 2015.
- A Canadian combined operating ratio was 90% compared to 88% in the fourth quarter of 201 –driven by exceptionally strong commercial lines results in the quarter, offset by weak performance in Ontario auto.
- The insurer also saw a 15% increase in direct written premiums over the same period in 2015 to $49.4 million, primarily driven by additional new commercial lines products across Canada.
- And it reported total pre-tax loss on invested assets of $0.6 million in the quarter compared to a pre-tax gain of $6.2 million in the fourth quarter of 2015, largely due to higher government bond yields and lower gains on Preferred Shares compared to prior year quarter.
“In addition to improving our personal lines operations, we have built strong teams to support our surety, commercial auto and commercial property products,” said Serge Lavoie, chief executive officer. These expanded business lines have been very well received by existing and new brokers, and we look forward to continuing to build and develop our relationships with them.”
“Our fourth quarter results were mixed. We were very pleased by the exceptional results reported in commercial lines across the country, however, our personal lines performance was negatively impacted by increased claims severity in Ontario auto, in line with market experience” he continued. “Most of these claims were reported prior to the introduction of the June 2016 reforms, which we hope will reduce catastrophic claims moving forward. We will continue to monitor our claims closely”.