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Desjardins reports increase in net income for Q2, drop for first half


August 26, 2013   by Canadian Underwriter


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Desjardins General Insurance Group has reported a net income of $42.5 million for the second quarter of the year, up 13.3% from the same period in 2012, although it’s performance for the first half of the year didn’t quite measure up to last year.

Desjardins reports increase in net income for Q2, drop for first half

For the three months ending June 30, the company reported direct written premiums of $584.6 million, up from $550.1 million in the same period of 2012.

The combined ratio for the quarter was 88.4%, despite the severe flooding in southern Alberta, the insurer noted.

For the first half of the year, however, the company’s net income was down to $67.9 million from $99.7 million for the first six months of 2012, “which benefited from unseasonably mild weather in the first quarter,” Desjardins noted.

The return on equity for the first six months was 14.2%, down from 24.8% in 2012, while direct written premiums rose by 6.2% to $1.06 billion and the combined ratio was 94.1%, up 1.2 percentage points from the same period last year.

“Many of our clients were strongly affected by the torrential rains that hit Alberta and our hearts go out to the victims of the floods during these difficult times. Our employees were mobilized promptly to respond to their needs, addressing claims rapidly to facilitate restoration work,” noted Sylvie Paquette, Desjardins’ president and COO.

“Our hearts also go out to the families and friends of the victims of the Lac-Mégantic tragedy in Quebec in early July,” she added. “I am proud that so many Desjardins employees from different groups were on the scene quickly to help our clients and other victims, and to support the devastated community. Many of our employees worked long hours and postponed vacation time to lend a helping hand during this crucial time.”

Despite the Alberta flooding and the challenging low interest rate environment, Paquette noted that the company’s performance to date has been “satisfactory.”

“The launch of our Ajusto and Intelauto (for the group market) usage based insurance programs in May has been a tremendous success, with a take up rate significantly above our expectations,” she noted.

“This has provided a key competitive edge during a slow growth period in the Ontario and Quebec markets, and we are looking forward to introducing the programs in Alberta, following regulatory approvals.”


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