Highlights
- Net income of $45.4 million, up from $20.9 million in Q3 2012.
- Direct written premiums increased by 6.3% compared to the same period in 2012, entirely through organic growth.
- Combined ratio of 95.1%, a 6.5 percentage point improvement from the same period in 2012.
- Continued strong customer acceptance in Ontario and Quebec of the Ajusto and Intelauto usage based insurance pricing programs, with about one third of eligible new customers enrolling.
- Signing of a white label partnership to underwrite CIBC's new home and auto insurance program.
LÉVIS, QC, Nov. 25, 2013 /CNW Telbec/ - Desjardins General Insurance Group (DGIG), a Desjardins Group subsidiary specializing in property and casualty insurance, posted a net income of $45.4 million for the quarter ended September 30, 2013, up 117.2% from the corresponding period in 2012.
Direct written premiums increased to $550.1 million for the quarter, compared to $517.4 million in 2012. All business areas contributed to this 6.3% growth, led by DGIG's group insurers under The Personal brand.
The combined ratio for the quarter was 95.1%, an improvement of 6.5 percentage points from the corresponding period in 2012.
Nine Month Results
For the first nine months of the year, net income was $113.3 million, down from $120.6 million for the same period in 2012. The ROE for the first nine months was 15.2%, compared to 19.6% in 2012. Direct written premiums rose by 6.2% to $1,617.1 million and the combined ratio was 94.4%, an improvement of 1.5 percentage points compared to the same period last year.
"The Lac-Mégantic tragedy in Quebec and the severe storms in areas of Ontario and Quebec during the quarter reminded us once again of how the coverage we provide is critical in helping people recover and move on with their lives," said Sylvie Paquette, President and COO of Desjardins General Insurance Group.
Ms. Paquette said she was pleased with DGIG's results in the quarter and year to date, and by the success so far of the Ajusto and Intelauto usage based insurance pricing programs. In the first 4-1/2 months, approximately one third of eligible new customers in Ontario and Quebec signed up for the programs. Overall about 38,000 customers have enrolled.
"With these programs, customers can earn a discount of up to 25% on their auto insurance renewal," she noted. "That's positive for us as we are attracting good drivers and encouraging good driving habits, and it's positive for our customers as they are saving money on their auto insurance. In addition, it is supporting the Ontario government's goal to reduce the cost of auto insurance in the province."
Ms. Paquette also said that the signing of an agreement with an insurance subsidiary of CIBC to underwrite its new home and auto insurance program was an achievement that will help DGIG to continue its strong growth across the country. The program has already launched in Ontario, with a broader rollout planned for 2014.
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 3,700 employees across Canada, a portfolio of more than 2.1 million policies in force, gross written premiums of $2.0 billion and assets of over $4.4 billion, DGIG ranks among the largest P&C insurer in Canada.
SOURCE: Desjardins Groupe d'assurances générales
Source (for journalists only):
Sarah Twomey
Media Relations Advisor
Desjardins Group
416-926-2700 or 1-877-906-5551, ext. 2015
[email protected]
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