N@N

EGI Financial Reports Fourth Consecutive Profitable Quarter

^{Published on 2011-05-05 08:36:02 - Market Wire}
 

 Q1 Financial Highlights ----------------------- - Net income of $3.0 million, a $4.8 million improvement over the first quarter of 2010 - Net income per fully diluted share of $0.24 compared to a loss of $(0.14) in the first quarter of 2010 - Total revenue of $44.7 million compared to $41.8 million in the first quarter of 2010 - A 6% increase in net earned premiums over the first quarter of 2010 - Investment income of $4.4 million versus $3.6 million in the same period in 2010 - Book value per share increased 11% to $12.35 from $11.14 at March 31, 2010 - An improved loss ratio of 66% compared to 83% in the first quarter of 2010 - An overall combined ratio of 100% versus 115% in the same period in 2010 

 Financial Summary ----------------- $000s 3-months ended 3-months ended % (except per share amounts) Mar. 31, 2011 Mar. 31, 2010 Change ------------------------------------------------------------------------- Direct written premiums 30,850 43,990 (29.9) Net earned premiums 40,344 38,224 5.5 Underwriting income (loss) (113) (5,810) 98.1 Interest expense - 299 - Investment income 4,402 3,574 23.2 Net income 3,028 (1,846) 264.0 Comprehensive income 2,007 182 1002.7 Net operating income (loss)(1) 2,156 (2,450) 188 Net income (loss) per diluted share 0.24 (0.14) 271.4 Net operating income (loss) per diluted share 0.17 (0.19) 189.5 Book value per share 12.31 11.14 10.5 (1) Net operating income (loss) is defined as net income (loss) plus or minus after-tax realized losses or gains on sale of investments. 

 First Quarter Highlights ------------------------ 

 Operating Results ----------------- Underwriting Income (loss)* 3-months ended 3-months ended $millions Mar. 31, 2011 Mar. 31, 2010 ------------------------------------------------------------------------- Personal Lines $1.0 $(4.0) Niche Products $0.0 $(1.2) International $(0.8) $(0.3) * Excluding head office overhead costs 

 3-months ended 3-months ended Loss Ratio Mar. 31, 2011 Mar. 31, 2010 ------------------------------------------------------------------------- Personal Lines 68.1% 87.4% Niche Products 56.1% 73.9% International 112.8% N/A* * Due to the minimal earned premium in the International division, the ratio is not meaningful 

 3-months ended 3-months ended Key Operating Ratios Mar. 31, 2011 Mar. 31, 2010 ------------------------------------------------------------------------- Loss ratio 65.7% 83.4% Expense ratio 34.6% 31.8% ------------------------------------------------------------------------- Combined ratio 100.3% 115.2% 

 Financial Position ------------------ 

 About EGI Financial ------------------- 

 Non-IFRS Financial Measures --------------------------- 

 Forward-looking Information --------------------------- 

 Conference Call ---------------