Desjardins posts increased surplus earnings in 2009 Q1; cites “excellent” auto result

Desjardins Group, a cooperative financial group in Canada, announced surplus earnings of Cdn$117 million (before member dividends) in 2009 Q1, up Cn$50 million compared to 2008 Q1.
Desjardins General Insurance Group (DGIG) contributed Cdn$6.8 million to the Group’s results for the first quarter of 2009. This compares with DGIG’s negative contribution of Cdn$2.2 million for the same period in 2008.
DGIG’s return on equity (ROE) in 2009 Q1 was 5.9%, whereas it was -2.0% in 2008 Q1. 
“This good performance was mainly due to an excellent claims experience in automobile insurance due to favourable climatic conditions in the first quarter,” Desjardins said in a press release.
At Cdn$349.3 million, gross premiums written in 2009 Q1 were relatively unchanged from the Cdn$348.1 million posted for the first three months of 2008.
“This was in a slow market environment in which the industry also reported little change in premiums written,” the company said in its statement.
DGIG’s investment portfolio posted Cdn$23 million in income. This was slightly down from 2008 Q1 and Desjardins noted the result came “in the face of the global financial crisis.” 
DGIG’s operating expense ratio, expressed as a percentage of premiums, compares favourably with that of the industry, the company said in a statement, “although it increased slightly, in part because the volume of premiums was affected by lower rates in Québec.”