Increased net premiums and improved claims experience helped Desjardins Group’s property and casualty insurance segment post $47 million in surplus earnings before member dividends in 2012 Q2.
The total represents a $24-million increase, or 104.3% higher, than surplus earnings before member dividends in 2011 Q2, notes a statement from Desjardins Group, operated through Western Financial Group Inc.
Total income for the P&C segment increased 12.5% to $568 million for the second quarter of 2012 compared with the same period in 2011.
The performance was attributable to a $49-million increase in net premiums and growth in the number of policies issued. Desjardins points to “growth initiatives targeting mass-market clienteles and groups, both in Quebec and across Canada; the development of white label partnerships; the insurance offer for businesses; and an increase in the average premium in certain market segments,” the company reports.
Expenses related to claims, benefits, annuities and changes in insurance and investment contract liabilities increased $9 million, or 2.7%, in 2012 Q2 compared with 2011 Q2. “The change was mainly due to growth in the portfolio of automobile insurance policies in Ontario, which was largely offset by an improved claims experience,” the statement notes.
More favourable weather conditions, producing fewer claims, coupled with an increase in the average earned premium, contributed to a loss ratio of 70.4% for 2012 Q2, down 5.9 basis points from the same quarter in 2011.