2016 fiscal year results - La Capitale reports a solid performance
Apr 03, 2017, 17:45 ET
2016 key facts and figures
- Total consolidated revenue of $2.2 billion
- Consolidated net income of $45.2 million
- Increase of 11% in gross written premiums for commercial insurance
- Savings and investments portfolio increase of 20%
- 9.2% increase of consolidated assets to $6.4 billion
- The 2016 Annual Report is available on La Capitale's website
Quebec City, April 3, 2017 /CNW Telbec/ - La Capitale Insurance and Financial Group reported a solid performance in 2016, in spite of the difficult economic climate. "The Mutual was able to hold its own during these tough times and post positive results. The Property and Casualty Insurance sector's outstanding performance compensated for the difficulties encountered by the Life and Health Insurance and Financial Services sector, which again proves that the diversification of La Capitale's operations, the strength of our distribution networks, our presence in numerous markets and the quality of our employees are invaluable advantages," said Mr. Jean St-Gelais, Chairman of the Board and Chief Executive Officer of La Capitale Civil Service Mutual during the Annual General Assembly held in Quebec City on April 3, 2017.
La Capitale posted consolidated net income of $45.2 million, which represents a 5.0% return on equity. Total equity was $960.3 million, and total consolidated income, which is derived from premiums, investment income and other items, grew by 10% to $2.2 billion. Lastly, consolidated assets rose to $6.4 billion, up 9.2%.
Life and Health Insurance and Financial Services
During the last fiscal year, the Life and Health Insurance and Financial Services sector was not able to contribute as much to the Mutual's profitability as in previous years. In 2016, the sector was able to record net income of $2.3 million. Its consolidated revenue from premiums increased by 9%, reaching $1.16 billion.
Many initiatives have already been introduced to turn this situation around and strengthen the market position of the Life and Health Insurance and Financial Services sector. These include investments in technological infrastructures and concrete measures for improving processes and containing costs in the Group Insurance sector.
Property and Casualty insurance
The Property and Casualty Insurance sector, which includes La Capitale General Insurance, L'Unique General Insurance and Unica Insurance, had an excellent year. Once again, the sector posted record profitability with a net income of $42.9 million, representing a 12.3% return on equity. Unica Insurance achieved the highest profit level in its history by, in particular, maintaining its disciplined underwriting policy and continuing to focus on targeted growth in commercial insurance. Together, our Property and Casualty insurance companies ended 2016 with a consolidated gross written premium volume of $919.4 million, a 4.4% increase over the previous year.
These excellent results reflect the performance of all three companies and their ongoing efforts to offer an outstanding client experience.
About La Capitale
La Capitale Insurance and Financial Group, created in 1940, has a strong presence across Quebec and throughout Canada. With over 2,680 employees and guided by the values of mutualism on which it was founded, La Capitale works with clients to build, protect and value what they feel counts for their financial security. It offers insurance products and financial services to the general public as well as to Quebec public service employees. With assets of $6.4 billion, La Capitale occupies a choice position among leading insurers in Canada.
SOURCE La Capitale Financial Group Inc.
For further information: Jean-Pascal Lavoie, Communications and Public Relations Advisor, 418 747-8053, 418 559-7738
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