Desjardins General Insurance Group reports solid second quarter and half-year results
- Second quarter net income of $42.5 million, with an ROE of 17.4%
- Direct written premiums increased by 6.3% in the quarter, entirely through organic growth
- Combined ratio of 88.4%, an 8.3 percentage point improvement from the same period in 2012
- Launch of the first widely available usage based insurance programs in the Ontario and Quebec markets
LÉVIS, QC, Aug. 26, 2013 /CNW Telbec/ - Desjardins General Insurance Group (DGIG), a Desjardins Group subsidiary specializing in property and casualty insurance, posted a net income of $42.5 million for the quarter ended June 30, 2013, up 13.3% from the corresponding period in 2012.
Direct written premiums increased in the quarter to $584.6 million, compared to $550.1 million in 2012. Once again, all business areas contributed to this above market 6.3% growth - general market home and auto insurance, group insurance, white label partnerships and commercial lines.
Despite record floods that severely hit southern Alberta, the combined ratio for the quarter was 88.4%.
Half Year Results
For the first six months of the year, net income was $67.9 million, down from $99.7 million for the same period in 2012, which benefited from unseasonably mild weather in the first quarter. The ROE for the first six months was 14.2%, down from 24.8% in 2012. Direct written premiums rose by 6.2% to $1,067.0 million and the combined ratio was 94.1%, up 1.2 percentage points from the same period last year.
"Many of our clients were strongly affected by the torrential rains that hit Alberta and our hearts go out to the victims of the floods during these difficult times. Our employees were mobilized promptly to respond to their needs, addressing claims rapidly to facilitate restoration work," said Sylvie Paquette, President and COO of Desjardins General Insurance Group.
"Our hearts also go out to the families and friends of the victims of the Lac-Mégantic tragedy in Quebec in early July. I am proud that so many Desjardins employees from different groups were on the scene quickly to help our clients and other victims, and to support the devastated community. Many of our employees worked long hours and postponed vacation time to lend a helping hand during this crucial time."
Ms. Paquette said that despite the Alberta flooding and continuing low level interest rate challenges, DGIG's second quarter and year-to-date performance was satisfactory.
"The launch of our Ajusto and Intelauto (for the group market) usage based insurance programs in May has been a tremendous success, with a take up rate significantly above our expectations," she noted. "This has provided a key competitive edge during a slow growth period in the Ontario and Quebec markets, and we are looking forward to introducing the programs in Alberta, following regulatory approvals."
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 over 3,700 employees across Canada, a portfolio of more than 2.1 million policies in force, gross written premiums of more than $2.0 billion and assets of over $4.4 billion, DGIG ranks among the largest P&C insurers in Canada.
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