- Net income of $64.3 million, up 54.5% from Q1 2011
- Direct written premiums increased 8.7%, entirely through organic growth
- Loss ratio of 63.6%, down 2.3 points compared to Q1 2011
- Combined ratio of 88.2%, down 2 points from the same period in 2011
- Launch of exclusive agent network in Montreal area
LÉVIS, QC, June 5, 2012 /CNW Telbec/ - For the first three months ended March 31, 2012, Desjardins General Insurance Group, a Desjardins Group subsidiary specializing in property and casualty insurance, posted a net income of $64.3 million, compared to $41.6 million in the same quarter in 2011.
Direct written premiums increased by 8.7% to $454.7 million compared to $418.2 million in Q1 2011. This was the ninth straight quarter of above market organic growth and once again all business areas contributed — individual home and auto insurance, group insurance, white label partnerships and commercial lines (Quebec only).
The combined ratio (claims and expenses divided by earned premiums) dropped two points to 88.2% compared to the same period in 2011. This positive result was largely due to favourable weather conditions and continued improvement in the Ontario auto insurance market.
Ms. Monique F. Leroux, Chair of the Board, President and CEO of Desjardins Group and CEO of Desjardins General Insurance Group, said she was very happy with the growth in premium volume and the significant increase in net income in the quarter. "P&C insurance is an important component in Desjardins' pan-Canadian expansion strategy. These results prove that our business development and growth initiatives have been productive."
Ms. Sylvie Paquette, President and Chief Operating Officer of Desjardins General Insurance Group, said that the mild winter across the country had a positive impact on DGIG's results. "We did benefit greatly from the weather, but we also took proactive steps to enhance our growth and profitability. For example, we increased our focus on the Greater Montreal Area, which included launching a small network of exclusive agents aimed at English consumers. We also continued to maintain strong underwriting discipline in the Ontario auto market, while achieving above-market sales growth. With the Ontario Auto Reforms continuing to show positive results, we are now further expanding our marketing efforts 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 million policies in force, gross written premiums of $1.9 billion and assets of approximately $4 billion, DGIG ranks among the largest P&C insurers in Canada.
About Desjardins Group
Desjardins Group www.desjardins.com is the leading cooperative financial group in Canada with assets of $196.4 billion. Drawing on the strength of its caisse network in Québec and Ontario and its subsidiaries across Canada, it offers a full range of financial products and services to its 5.6 million members and clients. Desjardins specializes in Wealth Management and Life and Health Insurance, in Property and Casualty Insurance, in Personal Services, in business and Institutional Services. As one of the largest employers in the country and among Canada's Top 100 Employers for 2012TM, Desjardins is supported by the skills of its 44,645 employees and the commitment of nearly 5,400 elected officers. A new education and cooperation program is now available to Desjardins members and the general public. For more information, visit www.desjardins.com/co-opme.
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