Net income of $126 million for first three quarters, up $39.8 million
Gross written premiums increases of 9.1% in third quarter and 9% for the
first three quarters, entirely through organic growth
Combined ratio of 95.3% in the first nine months, down 4.7 percentage
points from the same period in 2011
LÉVIS, QC, Nov. 23, 2012 /CNW Telbec/ - For the quarter ended September
30, 2012, Desjardins General Insurance Group (DGIG), a Desjardins Group
subsidiary specializing in property and casualty insurance, posted a
net income of $22.8 million, compared to $28.6 million during the same
quarter last year.
This drop was largely the result of the decline in investment income
from $64.6 million in the third quarter of 2011 to $37.9 million in the
same quarter this year. For the first nine months of the year, net
income was $126.6 million, an increase of $39.8 million from the same
period in 2011.
Gross written premiums were $517 million in the third quarter and $1,522
million in the first nine months. This represents increases of 9.1% and
9.0%, respectively, compared to the same periods last year.
Sylvie Paquette, DGIG President and Chief Operating Officer, said she
was pleased by DGIG's consistent above-market growth. "We are growing
at a steady pace in all of our markets and regions of the country, and
we are on track to surpass $2 billion in premium volume by the end of
the year. This is a remarkable accomplishment considering that our
growth has been entirely organic and considering the fierce competition
in the P&C insurance market."
Despite severe wind and hail storms in Alberta, Ontario and Quebec, the
loss ratio for the third quarter fell to 78.2%, a drop of 4.7
percentage points from the third quarter of 2011. This helped drive
the combined ratio (loss ratio plus expense ratio) down 5.6 percentage
points to 101.1% for the quarter. For the first nine months of the
year, the loss ratio dropped 4.3 percentage points to 71.1%, while the
combined ratio dropped 4.7 percentage points to 95.3%.
Looking forward, Ms. Paquette says she is concerned by two issues:
profitability in the Ontario auto insurance market and the impact of
the prolonged period of low interest rates.
"Although it has improved, there are still a great many questions about
the Ontario auto insurance market, particularly with the current
political situation in Ontario," she said.
In regards to the low interest rate environment, Ms. Paquette said that
DGIG's investment income has held up remarkably well so far, but the
future looks challenging.
"As investments are rolled over at lower rates over the next couple of
years, this will have a negative impact on our bottom line.
Fortunately, DGIG is in a good position to weather this challenge as it
has produced an underwriting profit for 19 consecutive years and
counting," she added.
About Desjardins General Insurance Group
A subsidiary of Desjardins Group, Desjardins General Insurance Group
provides home and auto insurance to consumers across the country and
commercial insurance to businesses in Quebec. With 4,000 employees
across Canada, a portfolio of more than 2 million policies in force,
gross written premiums of $1.9 billion and assets of over $4 billion,
DGIG ranks among the largest P&C insurers in Canada.
SOURCE: Desjardins Groupe d'assurances générales