The Economical reports significant improvement in Q2 results

The Economical Insurance Group (TEIG) reported a net income of $23.2 million in 2011 Q2, marking a significant improvement from 2010 Q2’s net loss of $3.6 million.For the first half of the year, TEIG reported a net income of $52.1 million, an increase from the $12.4 million reported in 2010 H1.The insurer’s combined ratio dropped 6.4%, from 106% in 2010 Q2 to 99.6% in 2011 Q2. On a year-to-date basis, this figure dropped to 98.8% in 2011 H1 from 104.7% in 2010 H1.Underwriting income also showed a dramatic improvement, with the company moving from an underwriting loss of $25 million in 2010 Q2 to a gain of $1.5 million in 2011 Q2. This brings the total underwriting income for 2011 H1 to $9.9 million, up from an underwriting loss of $40.4 million in 2010 H1.TEIG’s claims ratio decreased 7.7% quarter-over-quarter, from 72.7% to 65%. Investment income also showed signs of improvement, increasing from $49.1 million in 2010 Q2 to $55.8 million during the same period of 2011.