Northbridge Financial Corporation posted an underwriting profit of C$75 million in the first quarter of 2022, versus $66.7 million in Q1 2021.
The Canadian P&C insurance group, which includes Northbridge Insurance, Federated Insurance and TruShield Insurance, grew its income 12.4 per cent or $8.3 million.
Parent company Fairfax Financial says this growth “principally reflected increased net premiums earned, relative to a more modest increase in underwriting expenses,” coupled with “lower net adverse prior year reserve development.”
The group's combined ratio declined by 0.3 percentage points from 87 per cent in the first quarter of 2021 to 87.3 per cent in Q1 2022.
Northbridge Financial Corporation reported gross premiums written of $601.9 million in the first quarter of 2022, compared with $519 million in Q1 2021. This increase of 16 per cent or $82.9 million primarily reflects “strong retention of renewal business and continued rate increases,” Fairfax says.
Net premiums written climbed 15.2 per cent or $71.9 million, and net premiums were up 15 per cent or $77 million.
Northbridge Financial Corporation's operating income was $115.9 million in the first quarter of 2022, compared with $83.2 million in Q1 2021. This represents an increase of 39.3 per cent or $32.7 million. It is also the highest reported quarterly result since at least 2016.
Fairfax Financial reported consolidated net income of US$125.5 million in the first quarter of 2022, compared with US$806 million in Q1 2021, for a staggering decrease of 84.4 per cent or $680.5 million.
We could not determine Northbridge Financial Corporation’s net income because Fairfax does not present its consolidated net income in detail.