Property and casualty underwriter Economical Insurance has posted 71% increase in the second quarter of 2012 net income, which stood at $39.7m compared to $23.2m during the corresponding period earlier year.
For the three months ended on 30 June 2012, its combined ratio stood at 93.6%, with an increase of 6%, while its investment income slashed by 35% to $36.1m, compared to $55.8m during the same period last fiscal.
Economical Insurance president and CEO Karen Gavan said the company’s second quarter results show that it is continuing to deliver strong profitable growth, while maintaining growth in gross written premiums and mutual policyholders’ equity.
"While favourable weather conditions in 2012 have supported our performance, we continue to position our business for sustained profitable growth and a successful demutualization."
The company’s total mutual policyholders’ equity was $1.38bn, a 6.3% increase in the first six months of 2012.
Economical Insurance manages $1.7bn in premiums and $4.6bn in assets, and offers property and casualty underwriting services across Canada.