Desjardins posts Q1 net income of $31.5 million

Desjardins General Insurance Group has reported a first quarter net income of $31.5 million, compared to $73.7 million for the same period in 2015.

While it’s a significant drop, the company says, “Return on equity was 5.6 percent, compared to the previous year’s 16.0 percent. These variations are primarily due to the one-time gain recorded in Q1 2015 following the acquisition of State Farm’s Canadian operations.”

Desjardins says direct premiums written grew by 14.8 percent to $1,042.9 million ($908.7 million in Q1 2015). “This organic growth is mainly attributable to the renewal of auto policies acquired from State Farm, whose terms are transitioning from 6 to 12 months, as well as growth initiatives and new features like the Ajusto app.”

The company says it’s “keep a close eye on the auto insurance markets in Ontario and Alberta” and that the company have to review its pricing in the short term in Alberta, because of an upward trend in bodily injury claims.

Read Desjardins’ Sylvie Paquette on flood coverage, the IBC and “adopting” State Farm

“Our clients that have been affected by the devastating wildfires that occurred in and around Fort McMurray can count on us,” said Sylvie Paquette, p0resident and chief operating officer in a formal release. “From the first moments, our claims advisors have been there to help them get through the crisis and they will keep on helping them through the rest of the subsequent claims process.”

This story was originally published by Canadian Insurance Top Broker.