Echelon Financial Holdings Inc. Reports Third Quarter 2019 Results
TORONTO, Nov. 14, 2019 /CNW/ - Echelon Financial Holdings Inc. ("EFH" or "the Company") (TSX: EFH), which operates in the property and casualty insurance industry in Canada, today reported direct premium written of $10.3 million in the third quarter this year, which was $1.0 million increase over the same period last year. Due largely to Hurricane Dorian, the Company reported a net loss of $0.7 million in its third quarter this year or $0.04 per share.
Third Quarter 2019 Highlights
- Net loss of $0.04 per diluted share on continued operations compared to net loss of $0.16 per diluted share in the third quarter of 2018. In the third quarter of 2018, the Company had net income from discontinued operations of $2.2 million or $0.18 per diluted share. Discontinued operations includes results of Echelon Insurance and the unregulated warranty business of Echelon Financial Holdings Inc. that have been sold May 31, 2019.
- Direct written premiums increased by $1.0 million over the same period in 2018 to $10.3 million as the Company increased rates in property lines across all provinces and personal auto in PEI.
- Closing book value per share of $7.46, has decreased by $0.02 per share from end of second quarter of 2019.
Financial Summary
3 months ended |
9 months ended |
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($ THOUSANDS except per share amounts) |
2019 |
2018 |
2019 |
2018 |
Direct written and assumed premiums |
10,271 |
9,284 |
28,200 |
26,468 |
Net earned premiums |
8,362 |
7,609 |
23,824 |
22,277 |
Net claims incurred |
6,522 |
5,576 |
15,927 |
16,274 |
Net acquisition costs |
1,868 |
1,961 |
5,232 |
5,701 |
Operating expenses |
1,258 |
1,070 |
3,420 |
3,256 |
Corporate expense |
524 |
2,266 |
1,227 |
3,221 |
Underwriting (loss) income |
(1,286) |
(996) |
(753) |
(2,954) |
Investment income |
874 |
379 |
1,859 |
1,181 |
Impact of change in discount rate on claims |
(78) |
69 |
(386) |
218 |
Net (loss) income before income taxes |
(1,014) |
(2,815) |
(509) |
(4,776) |
Income tax expense ( recovery) |
(341) |
(788) |
(236) |
(1,393) |
Net (loss) income on continued operations |
(673) |
(2,027) |
(273) |
(3,383) |
Net income on discontinued operations |
- |
2,197 |
46,220 |
13,184 |
Net ( loss) Income |
(673) |
170 |
45,947 |
9,801 |
Net (loss) income attributed to: |
||||
Shareholders of the Company – continued |
(505) |
(1,930) |
(284) |
(3,047) |
Shareholders of the Company – discontinued |
- |
2,197 |
46,220 |
13,184 |
Non-controlling interest – continued operations |
(169) |
(96) |
11 |
(336) |
Earnings (loss) per share |
||||
Continued operations |
||||
Basic |
$(0.04) |
$(0.16) |
$(0.02) |
$(0.26) |
Diluted |
$(0.04) |
$(0.16) |
$(0.02) |
$(0.26) |
Discontinued operations |
||||
Basic |
- |
$0.18 |
$3.86 |
$1.11 |
Diluted |
- |
$0.18 |
$3.80 |
$1.08 |
Non-IFRS Financial Measures
EFH uses both IFRS and certain non-IFRS measures to assess performance. Securities regulators require that companies caution readers about non-IFRS measures that do not have a standardized meaning under IFRS and are unlikely to be comparable to similar measures used by other companies. EFH analyzes performance based on underwriting ratios such as combined, expense and loss ratios, which are non-IFRS measures. Underwriting income is defined as net earned premiums less net claims incurred, net acquisition expenses, general expenses, integration costs and excludes any impact of change in discount rate on claims and corporate expenses.
Forward-looking Information
This news release contains forward-looking information based on current expectations. This information includes, but is not limited to, statements about the operations, business, financial condition, priorities, targets, ongoing objectives, strategies, litigation outcomes and outlook of EFH for 2019 and subsequent periods.
This information is based upon certain material factors or assumptions that were applied in drawing a conclusion or making a projection as reflected in the forward-looking information. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific. A variety of material factors, many of which are beyond EFH's control, affect the operations, performance and results of its business and could cause actual results to differ materially from the expectations expressed in any of this forward-looking information.
EFH does not undertake to update any forward-looking information. Additional information about the risks and uncertainties about Echelon's business is provided in its disclosure materials, including its Annual Information Form and Management Discussion & Analysis, filed with the securities regulatory authorities in Canada, available at www.sedar.com.
About Echelon Financial Holdings Inc.
Founded in 1998, Echelon Financial Holdings Inc. operates in the property and casualty insurance industry in Canada, providing personal and commercial lines insurance exclusively through the broker channel. The Company distributes insurance products through The Insurance Company of Prince Edward Island. It trades on the Toronto Stock Exchange under the symbol EFH. For more information, please visit efh.ca
SOURCE Echelon Financial Holdings Inc.
Investor Relations, 905-602-2150, [email protected]
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