Desjardins to focus on Ontario, Montreal following positive 2012 Q1 results

Desjardins General Insurance Group’s loss ratio of 63.6% in 2012 Q1 was 2.3% lower than the first three months of 2011, largely the result of oft-cited favourable weather conditions and continued improvement in Ontario’s auto insurance market.
“With the Ontario auto reforms continuing to show positive results, we are now further expanding our marketing efforts in the province,” says Sylvie Paquette, president and chief operating officer of Desjardins General Insurance, which specializes in property and casualty insurance.
The company also increased focus on the Greater Montreal Area, launching a small network of exclusive agents aimed at English consumers.
Increases in both premium volume and net income “prove that our business development and growth initiatives have been productive,” company CEO Monique Leroux says in the statement.
Net income improved to $64.3 million in the first quarter of 2012, up 54.5% from $41.6 million in 2011 Q1. The combined ratio dropped two points to 88.2% compared with the same period last year.
Desjardins General Insurance reports it witnessed the ninth straight quarter of above-market organic growth in 2012 Q1. Individual home and auto insurance, group insurance, white label partnerships and commercial lines (Quebec only) all contributed to an 8.7% increase in direct written premiums to $454.7 million in 2012 Q1 compared with $418.2 million in 2011 Q1.