Growth in direct written premiums of 6.1%
Net income of $25.4 million
Return on equity (ROE) of 10.9%
LÉVIS, QC, May 23, 2013 /CNW Telbec/ - For the first three months ended
March 31, 2013, Desjardins General Insurance Group (DGIG), a Desjardins
Group subsidiary specializing in property and casualty insurance,
posted a net income of $25.4 million. This was down 59.2% compared with
the first quarter in 2012, which benefited from unusually favourable
weather across the country.
Direct written premiums increased by 6.1% to $482.4 million compared to
$454.7 million in Q1 2012. This above market result was achieved
entirely through organic growth, with all business areas contributing -
mass market home and auto insurance, group insurance, white label
partnerships, and commercial lines. The combined ratio in the quarter
was 99.8%, 10.9 percentage points higher than in Q1 2012, while the
return on equity was 10.9%.
Ms. Sylvie Paquette, President and Chief Operating Officer of Desjardins
General Insurance Group, said that despite the unfavourable comparison
with 2012, the first quarter in 2013 was positive both in terms of
growth and profitability.
"This was a more typical quarter compared to Q1 last year, as we
actually had winter this year," she said. "Overall it was a good
quarter. Although our growth in sales has slowed, we remain optimistic
that we will continue to increase our market share through the rest of
the year. We are increasing our marketing activities and planning other
initiatives to improve sales, including an extensive launch a few days
ago of the first widely-available usage based insurance pricing
programs (UBIP) in the Quebec and Ontario markets. We are confident
that our leadership with UBIP will have a significant impact on our
growth and profitability."
Looking to the future, Ms. Paquette said that DGIG is closely monitoring
the Ontario government's proposed decrease in auto insurance rates.
"We understand the desire to reduce the cost of auto insurance in
Ontario, but any reduction in rates must be offset by corresponding
measures to reduce claims costs. All indications from the government
are that they understand this reality and will act prudently," she
Ms. Paquette noted that DGIG's Ajusto and Intelauto UBIP programs are
aligned with the government's stated desire to see better insurance
rates offered to good drivers in the province.
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.
SOURCE: Desjardins Groupe d'assurances générales
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