The Economical sees net income gains in 2011 Q1

The Economical Insurance Group reported an increase in net income to $29 million in 2011 Q1 from $16 million in 2010 Q1.The insurer’s combined ratio also improved from 100.2% in 2010 Q1 to 93.6% in 2011 Q1, marking a return to underwriting profitability.”The significant improvement in the combined ratio demonstrates the results of the decision last year to focus our ongoing efforts on high-quality, profitable business,” said Kathy Mabe, president and CEO of The Economical. “In particular, the return to underwriting profitability and the marked improvement in the performance of our personal automobile business are especially gratifying. “We are starting to see the benefits of the 2010 auto reforms in Ontario, which is combining with our recent increased focus on proactive broker management and underwriting discipline to generate stronger results.”Underwriting income for 2011 Q1 was $26.1 million, a dramatic improvement from 2010 Q1’s underwriting loss of $1.1 million.Investment income decreased in 2011 Q1 – from $24.3 million in 2010 Q1 to $16.4 million in 2011 Q1.