Economical Insurance is celebrating its tenth consecutive quarter of improved performance over the prior year, the company says in its most recent three month and full year earnings results for its fiscal year ended Dec. 31, 2020.
“It puts us on a confident footing as we approach our planned demutualization and IPO later this year,” says the company’s president and CEO, Rowan Saunders. “The combination of firm market conditions in property and most commercial lines, our recent investments in digital platforms and talent, and our disciplined approach to pursuing growth opportunities lead to premiums increasing 13.3 per cent for the fourth quarter and full year premiums exceeding $2.8-billion.”
Gross written premiums increased to $755.9-million in the fourth quarter of 2020, up from $667-million at the end of the same period in 2019. For the full year ended Dec. 31, 2020 gross written premiums totalled $2.8-billion, up from $2.5-billion reported at the end of the year in 2019.
Net income, meanwhile, rose considerably, jumping to $66.7-million for the quarter, up from just $6.8-million reported in the fourth quarter of 2019. The company says the increase was primarily driven by improved underwriting performance. Net income for the full year was $153.9-million, up from $17.4-million reported for all of 2019. As of Dec. 31, 2020 the company’s Minimum Capital Test ratio was 268 per cent. Beneficial underwriting, a reduction in auto claims frequency and benign weather, meanwhile, lead to combined ratios of 89.1 per cent for the fourth quarter and 94.6 per cent for the full year.
