Desjardins reports increased surplus earnings in 2011 Q3 despite higher loss ratio

The Desjardins Group’s property and casualty insurance segment reported its surplus earnings rose $17 million in 2011 Q3 despite a higher loss ratio in the third quarter of 2011 than during the same period in 2010.
The segment’s total income in 2011 Q3 was $571 million, up $147 million or 34.7% from the same period of 2010.
“This performance was due to a $79 million increase in net premiums, mainly due to the acquisition of Western Financial Group Inc., and a larger number of policies issued due to the benefits of advertising campaigns, a private label partnership agreement with a Canadian financial institution, new partnerships, renewals of group insurance agreements and higher average premiums in some business lines,” the company reported in a press release. “Excluding the activities of Western Financial Group Inc., during [2011 Q3] the segment broke through the ceiling of 2 million in-force policies.”
Expenses attributable to claims, benefits, annuities and changes in insurance liabilities grew $79 million from the same period of 2010. (This figure includes $16 million attributable to adding the activities of Western Financial Group Inc.)
The loss ratio (expenses related to claims divided by net premiums) for the third quarter was 80.9%, 3.9 points higher than it was one year earlier.
“This change was due in part to Hurricane Irene, which mainly affected Québec and the Maritime Provinces,” the company reported. “The automobile claims experience in Ontario related to coverage of bodily injury remains high.”