Economical Insurance generated a net loss of $25.1 million during the second quarter this year amid higher catastrophe losses, according to its latest financial results.
“Unfortunately, like many in the industry, we were heavily impacted by severe weather events in Ontario and Quebec, relating to wind, ice, and rain during the second quarter. We incurred catastrophe losses of $48.2 million, which were substantially higher than historic levels, for this time of year, and the $14.3 million incurred in the same quarter a year ago,” said CEO and president Rowan Saunders in a statement.
Meanwhile, gross written premiums returned to overall growth, increasing by $8.9 million (or 1.4%). Personal lines premiums grew by $38.1 million, or 8.7%, driven primarily by new business growth from its digital direct brand, Sonnet, increased personal property policy volumes in its broker channel, and rate increases in personal auto. Commercial lines premiums declined by $29.2 million, or 13.1%, as it continued to implement underwriting actions designed to improve profitability.
“While we are encouraged to see signs of improvement in our top line growth and underlying claims performance compared to recent periods, we are continuing to implement a number of corrective actions to address our underlying underwriting performance. These corrective actions significantly impacted gross written premiums, particularly in commercial lines, but are necessary as we seek sustained profitability and improved business mix,” Saunders said.
