QUEBEC, April 5, 2018 /CNW Telbec/ - The future looks bright for La Capitale Insurance and Financial Services. Posting solid financial results for 2017 means the mutual company can confidently take on the challenges of the coming years.
"The efforts invested in the Life and Health Insurance and Financial Services sector in 2017 have paid off. This sector's success, added to that of the very strong Property and Casualty Insurance sector, enabled our Mutual to experience a very good year," said Mr. Jean St-Gelais, Chairman of the Board and Chief Executive Officer of La Capitale Civil Service Insurer.
La Capitale posted a consolidated net income of $75 million, a 66% increase over 2016. This result represents a return on equity of 7.9%. Total equity was $994.1 million, and total consolidated revenue, which is derived from premiums, investment income and other items, reached $2.5 billion. Lastly, consolidated assets rose to $7.1 billion, up by 11.8%.
Life and Health Insurance and Financial Services
The transformation efforts put forward with respect to Group and Individual insurance enabled the Life and Health Insurance and Financial Services sector to end 2017 with a $31.1 million consolidated net profit.
The Individual Insurance and Financial Services sector experienced sustained growth with an overall increase in sales of 18% over 2016. Regarding our savings and investments business, our investment in digital tools enabled our distribution channels to support an accelerated pace of development. As such, the portfolio value of assets and inforce business has doubled in four years and is now worth $2.1 billion.
The considerable efforts undertaken by Group Insurance to turn its activities around in the last year allowed it to enjoy one of the most profitable years in its history.
Group insurance sales reached $60.3 million in 2017. This good performance reflects the conclusion of specific distribution agreements regarding our niche market products and more advantageous positioning with actuarial consulting firms and major distributors. Product sales outside Quebec grew nicely, representing 52% of total sales.
Property and Casualty Insurance
The Property and Casualty insurance sector, which consists of La Capitale General Insurance, L'Unique General Insurance and Unica Insurance, had another excellent year that was marked by sustained growth in gross written premiums and a net profit of $43.9 million. This annual net profit level, the highest one to date for this sector, was garnered in a year which saw several major climatic events.
Our member companies combined ended 2017 with a gross written premium volume of $963.5 million, a $44.1 million increase over the previous year. These excellent results are due to solid performances by our three member companies.
The 2017 Annual Report is available on La Capitale's website.
About La Capitale
La Capitale Insurance and Financial Services, created in 1940, has a strong presence across Quebec and throughout Canada. With over 2,740 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 $7.1 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