Desjardins General Insurance Group reports strong second quarter and half year results
- 2nd quarter net income of $39.5 million and half-year net income of $103.8 million, up 137% and 78.3%, respectively, from the same period in 2011
- Direct written premiums increase in first six months of 8.9% year over year, entirely through organic growth
- Combined ratio of 92.3% for first six months, down 4.2 points from the same period in 2011
LÉVIS, QC, Aug. 23, 2012 /CNW Telbec/ - For the quarter ended June 30, 2012, Desjardins General Insurance Group, a Desjardins Group subsidiary specializing in property and casualty insurance, posted a net income of $39.5 million, compared to $16.6 million during the same quarter last year.
For the first six months of the year, net income was $103.8 million, an increase of $45.6 million from the same period in 2011. Direct written premiums were $550 million in the second quarter and $1.0 billion in the first six months. This represents increases of 9% and 8.9%, respectively, compared to the same periods last year. Once again, all business areas contributed to this above market growth - mass market home and auto insurance, group insurance, white label partnerships and commercial lines.
Sylvie Paquette, DGIG President and Chief Operating Officer, said she was particularly pleased by the strong growth in an increasingly competitive P&C insurance market. "With industry consolidation and the improvement in the Ontario market, we are seeing a lot more promotional activity in the marketplace. Our ability to continue to outperform the market both in terms of growth and profitability is largely due to our direct business model, which we've been fine tuning since we made the transition to the direct approach 25 years ago. We are determined and well positioned to continue this growth through the rest of the year, and into the future," she added.
Despite severe rains and flooding in Montreal and in Thunder Bay in late May, the loss ratio for the second quarter fell to 71%, a drop of 5.9 percentage points from the second quarter 2011. This helped drive the combined ratio down 6.4 percentage points to 96.1% for the quarter. For the first half of the year, the loss ratio dropped 4.1 percentage points to 67.4%, while the combined ratio dropped 4.2 percentage points to 92.3%.
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 généralesFor further information:
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