Western Financial Group posted at 42.8% increase in profit for the second quarter as the High River, Alta. company announced the strongest quarterly performance in its history.

The financial services company said net income for the quarter ended June 30 was $5.8 million, or 8¢ a share. That compared with $4.1 million, or 7¢ a share in the year ago period.

Revenue for the quarter was $34.4 million, up 29% from $26.6 million a year ago.

“After an encouraging start to the year, our second quarter was the strongest in our history,” stated Scott Tannas, president and CEO.

“Performance has been driven on a broad base of strong organic revenue growth, low loan loss provisions, and the widening of our Network’s margins. We continue to be on target for growth in revenue, earnings, and market share for 2008.”

Western Financial Group (WFG) provides insurance, financial services and banking services in over 90 communities, to more than 400,000 individuals and businesses in Western Canada through its WFG Agency Network locations, its affiliated insurance brokers, Western Life Assurance Co. and Bank West.


The insurance network continued to increase market share, with same store sales up again from 8.1% to 9.5% year over year. Operating income for the network rose 17.6% during the quarter to $7.9 million, from $6.8 million a year ago.

Bank West decreased its loan book slightly from $283.6 million in the first quarter to $281.2 million in the second quarter. “We continue to maintain a conservative risk profile,” said Bob Marshall, president of Bank West. Interest and investment income soared 67% during the quarter to $4.6 million, from $2.8 million a year ago. Operating income in the second quarter rose to $1.3 million from $0.9 million a year ago.

Western Life’s income posted a record first 6 months in its history, the result of stable claims ratios and strong new sales. Policy/certificate count increased from 23,952 to 26,992, premium and investment income increased 28% to $15.5 million while operating income increased 37% to $2.4 million for the period ending June 30, 2008.

WFG’s strategic partnership portfolio, including Jennings Capital, HED, Falkins Insurance and Harvard Western, all showed expected returns in the second quarter.