For the first quarter of 2017, property and casualty insurer Economical Insurance enjoyed significant growth in gross written premiums, among other notable advances.
The insurance company enjoyed a year-over-year increase of 14.5% compared to the first quarter of 2016 and it has attributed this to the success of its personal lines, as well as contributions from its online brand Sonnet and newly-acquired pet insurance label Petline.
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“We generated significant growth in gross written premiums stemming from broker channel personal lines, Sonnet, and our newly-acquired Petline business. We are pleased to welcome Petline to the Economical family and are excited by the opportunities for this new line of business,” said Economical president and CEO Rowan Saunders.
The insurer, however, admitted that it ran into some difficulties during the quarter.
“. . . We continued to be challenged by the performance of our auto lines, and were impacted by increased levels of catastrophe losses and relatively worse winter weather conditions,” Saunders explained. “Ongoing investments in Sonnet and the replacement of our personal lines policy administration system also contributed to the increase in the combined ratio. A number of measures including improvements in pricing, underwriting, and claims actions are being implemented, but will take time to be reflected in our results.”
Economical posted a combined ratio of 107.2% for the first quarter, 2017. This included an impact of 6.5 percentage points related to Sonnet, as well as the overhaul of the company’s personal lines policy administration system.
For the quarter, Economical’s generated net income came in at $5.3 million. The company’s total equity since December 31, 2016 has increased by $35.1 million, to $1.8 billion.
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