Despite Market Volatility, The Economical Insurance Group Maintains Profitability.
Waterloo, Ontario - At its 136th annual general meeting today, senior management announced that The Economical Insurance Group (TEIG), in the face of increasing competition, lower premiums and increasing claims costs, generated an underwriting profit of $3.4 million on just over $1.9 billion in gross written premiums. Despite the result being lower than previous years, this is the fourth consecutive year TEIG reported an underwriting profit. TEIG's strong financial foundation is expected to help the company navigate future financial market instability.
"Given that we expect to see a continuing soft market, TEIG will focus on actions that result in preservation of capital," said Noel Walpole, President and Chief Executive Officer of TEIG. "Our strategy is to grow aggressively in hard market conditions, and we have done just that by outpacing the industry during these periods."
The company generated another year of positive investment performance, and as a result, recorded a pre-tax investment income of over $174 million. This, coupled with their underwriting income, resulted in an after-tax net income of $117.6 million - the fourth consecutive year that Net Income exceeded $100 million dollars. These strong results can be attributed to good investments; TEIG's avoidance of the sub-prime problems that spread affecting third party Asset-Backed Commercial Paper ensures that policyholders will be protected.
"The Group has no direct exposure to the sub-prime and third party Asset Backed Commercial Paper securities that have made headlines during this past year," said Walpole, "Our high quality investments provide ample security for our policyholders."
The Economical Insurance Group, founded in Waterloo, Ontario in 1871, is one of the largest property and casualty insurers in Canada with over $1.9 billion in premium volume and $4.3 billion in assets. Canadian owned and operated, TEIG provides a wide range of insurance products throughout North America. Member companies of TEIG are: Economical Mutual Insurance Company, The Missisquoi Insurance Company, Waterloo Insurance Company, Western General - Farm Division, Perth Insurance Company, Family Insurance Solutions Inc., Federation Insurance Company of Canada, The Mattei Companies (U.S. based).
Contact:
Katherine
Kipper
Vice
President, Sales and Marketing
The
Economical Insurance Group
519-570-8589
katherine.kipper@economicalinsurance.com