February 12, 2015 by Canadian Underwriter
Industrial Alliance Insurance and Financial Services Inc. reported Thursday a 3.3-point improvement in its combined ratio and an 8.4% increase, in 2014, of its gross premiums.
The Quebec City-based firm operates Industrial Alliance Auto and Home Insurance Inc., as well as group insurance, wealth management, savings and retirement services.
In its financial results, Industrial Alliance reported Thursday its combined ratio dropped from 101.9% in 2013 to 98.6% last year. The claims ratio dropped from 70.6% in 2014 to 68.1% in 2014.
“Despite a harsh winter that led to high auto insurance claims in the first quarter, the absence of any major weather events (compared to four such events in 2013) was more than enough to even out claims experience for the year,” Industrial Alliance said.
Industrial Alliance Auto and Home sells to consumers through agents. Three years ago, it rolled out Mobiliz, an auto insurance product that uses telematics to monitor driving behaviour. Mobiliz is aimed primarily at drivers aged 16 to 24, in 2012 in Quebec.
Across all of Industrial Alliance, gross premiums were up 8.4%, from $5.431 billion in 2013 to $5.872 billion last year. Total revenues were up 61%, from $6.023 billion in 2013 to $9.68 billion in 2014. Net income increased 12%, from $388 million in 2013 to $435 million last year.
For the fourth quarter, Industrial Alliance reported its revenues were up 38%, from $1.85 billion in 2013 to $2.556 billion in 2014. Gross premiums increased 7.1%, from $1.256 billion in Q4 2013 to $1.346 billion in Q4 2014. Net income rose 23.7%, from $101 million in Q4 2013 to $125 million in the latest quarter.