Growth in direct written premiums of 8.2%
Net income of $185.9 million
20th consecutive year generating an underwriting profit
LÉVIS, QC, March 14, 2013 /CNW Telbec/ - For the year ended December 31,
2012, Desjardins General Insurance Group (DGIG), a Desjardins Group
subsidiary specializing in property and casualty insurance, posted a
net income of $185.9 million, compared to $128.2 million in 2011.
Direct written premiums increased by 8.2% to $1,980.2 million, entirely
through organic growth, and the number of policies in force surpassed
2.1 million. All business areas contributed to this growth - mass
market home and auto insurance, group insurance, white label
partnerships, and commercial lines (in Quebec only).
The combined ratio improved by 4.3 percentage points to 94.3%, compared
to 98.6% in 2011. This was largely due to the 4.0 percentage point
improvement in loss ratio.
Return on equity (ROE) was 20.9%, up from 17.4% in 2011.
Even if Ontario AB/BI claims remain a concern, DGIG's Ontario results
did improve with the Ontario Government's auto insurance reforms.
Ms. Monique F. Leroux, Chair of the Board, President and CEO of
Desjardins Group and CEO of DGIG, said that DGIG continues to be an
important contributor to Desjardins' growth and success. "I
congratulate DGIG on 20 straight years generating an underwriting
profit, which is a remarkable achievement within a cyclical industry
like P&C insurance. The discipline required to achieve this level of
consistent results is a strong foundation to build upon as Desjardins
continues to expand its insurance business across the country. "
Ms. Sylvie Paquette, President and Chief Operating Officer of Desjardins
General Insurance Group, said that 2012 was a very positive year both
in terms of growth and profitability. "It was an excellent year for
DGIG. We grew at roughly twice the industry rate for the third straight
year, and we increased our market share in Ontario and Alberta, and
strengthened our position in Quebec. Because of our disciplined
approach, we were able to achieve this growth while also maintaining a
high level of profitability.
"Looking forward, our focus will be on improving the customer
experience, as we feel this will be an important differentiator in an
increasingly competitive marketplace," she added.
In terms of industry outlook, Ms. Paquette sees some challenges on the
horizon with the continuing low interest rate environment, the
uncertainties in the Ontario auto insurance market, and the
consolidation trend in the industry.
"Despite these challenges, we are confident going forward that because
of the strength of our direct distribution model, DGIG will outperform
the industry in terms of growth, profitability, and the customer
experience," she said.
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 3,700 employees across Canada, a portfolio of more than
2.1 million policies in force, gross written premiums of $2.0 billion
and assets of over $4.3 billion, DGIG ranks among the largest P&C
insurers in Canada.
SOURCE: Desjardins General Insurance
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