Source: The Canadian Press

EGI Financial Holdings Inc. says its third-quarter net income fell nearly 66% as it also announced its CEO succession plan.

The property and casualty insurer reported that its earnings dropped to $800,000 or six cents per share, from $2.3 million or 18 cents per share a year earlier.

Direct written premiums increased 9% to $48.6 million from $44.5 million. However, the company posted a loss from its insurance underwriting operations of $2.9 million, compared with an underwriting profit of $284,000 last year.

“Market conditions continue to tighten, contributing to the ongoing growth of our core business and the continued improvement of our underwriting results,” said chief executive Douglas McIntyre in a release.

“We are pleased to see that the drastic actions we have taken to restore profitability are starting to take effect. We expect this trend toward profitability to continue for the next six to 12 months, as we realize the impact of recently approved rate increases, the new Ontario automobile insurance reforms and other remedial actions, including withdrawing producer representation in the worst performing areas of the Province.”

EGI also said that Steve Dobronyi will assume the role of chief executive officer starting on Jan. 1.

Dobronyi is currently the president and chief operating officer, and will continue to be the CEO of its Echelon general insurance division, it said.

Under the changes, McIntyre will become the vice chair of EGI Financial.