Insurer reports increase in Q2 results
Economical Insurance has reported net income of $44.8 million for the second quarter of this year, compared to $21.9 million for the same period last year, bringing its six-month net income to $41.6 million compared with $18.1 million for the first half of 2019.
"Our results in the first half of the year were strong, but we are still in the early stages of an unprecedented global pandemic,” said Rowan Saunders, president & CEO of Economical. “We do not yet know how COVID-19 will play out, or its ultimate impact on the economy or on our operating and investment performance, and we therefore remain cautious in our outlook.”
Company has provided relief during COVID-19
Saunders said Economical has provided significant premium relief across the business to customers in need and will continue to do so into the second half of the year.
“Our underwriting results in the quarter reflected a continuation of the momentum we've established in recent years, together with a reduction in auto claims frequency that was partially attributable to COVID-19, as our customers complied with public health restrictions.”
Saunders said that on an adjusted basis, the company’s combined ratio of 90 per cent was 8.7 points better than a year ago. He said the firm’s personal and commercial property businesses have been resilient and have each reported an underwriting profit despite incurring more than 10 points of catastrophe losses.