Direct written premiums increased by 6.7% to pass the $2 billion mark in
Net income rose by 7.8% to $195.2 million for the year
Return on equity for the full year of 19.0%
LÉVIS, QC, March 13, 2014 /CNW Telbec/ - For the year ended December
31, 2013, Desjardins General Insurance Group (DGIG), a Desjardins Group subsidiary specializing in property and
casualty insurance, posted a net income of $195.2 million, compared to
$181.1 million in 2012, an increase of 7.8%.
Return on equity (ROE) was 19.0%, ranking the company among the best in
Direct written premiums increased by 6.7% to $2,112.1 million, and the
number of policies in force rose by more than 63,500, reaching 2.169
million. These increases were achieved entirely through organic growth.
The combined ratio improved by 2.9 percentage points to 91.7%, compared
to 94.6% in 2012. This was largely due to the 3.8 percentage point
improvement in loss ratio.
Fourth quarter results
The fourth quarter was very positive, with net income of $81.8 million,
an increase of 35.2% compared to the same period in 2012. In addition,
direct written premiums increased by 8.1% from the corresponding
quarter in 2012 due to increased marketing activity and the impact of
the Ajusto and Intelauto usage based insurance programs.
"DGIG had an outstanding year, particularly considering the major
flooding and other weather-related catastrophic events across the
country," said Monique F. Leroux, Chair of the Board, President and
CEO, Desjardins Group, and CEO of DGIG. "I am very proud that our P&C
insurance companies were there for our members and clients when they
needed us most, whether it was with the flooding in the Calgary area or
Toronto, or the tragic rail disaster in Lac-Mégantic, Québec."
"DGIG had a strong fourth quarter both in terms of growth and
profitability, and this gave a boost to our overall results for the
year," said Sylvie Paquette, President & COO, Desjardins General
Insurance Group. "We have significant growth momentum with our existing
operations and are in a solid financial position."
Ms. Leroux also commented on the recent announcement concerning the agreement to purchase State Farm Canada's businesses in
property and casualty and life insurance, as well as its Canadian
mutual fund, loan and living benefits companies. Under the agreement,
State Farm in the U.S. and Crédit Mutuel, a major European financial
cooperative and partner of Desjardins, will each make a substantial
investment in DGIG.
"Once completed, this transaction between three major cooperative and
mutual organizations will almost double DGIG's premium volume across
the country. As a result, our P&C insurance group will jump from the
seventh to the second spot in the industry, with close to $4 billion in
direct written premium volume."
Ms. Paquette says the biggest challenge over the next several years will
be planning for and integrating State Farm Canada's businesses. The
ongoing involvement and significant financial investment by U.S.-based
State Farm in DGIG once the acquisition is finalized will help
contribute to a smooth transition and the longer-term success of the
Longer term, Ms. Paquette would like to see the P&C insurance industry
work with government and other stakeholders to develop a more stable,
sustainable and affordable auto insurance market in Ontario and to
address the major earthquake and the increasing overland flooding risks
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 $2 billion and assets of over $4 billion,
DGIG ranks among the largest P&C insurers in Canada.
SOURCE: Desjardins General Insurance
For further information:
(for journalists only):
Media Relations Advisor
416-926-2700 or 1-877-906-5551, ext. 2015