EGI Financial sees signs in 2008 of hardening market

EGI Financial Holdings Inc. (TSX:EFH) says it is poised to take advantage of the hardening market conditions now developing in 2008.

“With competitive conditions persisting within the non-standard auto line of business, we have remained focused on continued diversification efforts and profitably growing our niche products division,” EGI Financial CEO Douglas McIntyre said in a press release announcing the company’s 2008 Q1 results. “The erosion of underwriting margins in the property and casualty industry in 2007 and continuing in 2008 will likely cause the standard insurers to reverse their earlier actions taken to gain market share.

“While it is too early to make a call as to the exact timing for the return of a hard market phase, we have begun to see early signs that a shift in marketplace dynamics is occurring.”

Overall, the company reported a 2.3% increase in its 2008 Q1 profits, which went from Cdn$2.5 million in 2007 Q1 to Cdn$2.6 million for the three months ended Mar. 31, 2008.

The company’s 2008 Q1 combined ratio stood at 100.8%, compared to 94.7% for the same period last year.