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Premiums up 5.9%, combined ratio up 0.7 points for Desjardins General Insurance


March 10, 2015   by Canadian Underwriter


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Desjardins General Insurance Group Inc. released Tuesday its financial results for 2014, reporting a 9.9% decline in underwriting income, a 5.9% increase in direct written premiums and a slight increase in combined ratio.

DGIG, owned by Desjardins Group of Levis, Quebec, provides home and auto insurance in Ontario, Alberta and Quebec – as well as commercial insurance, include property, liability, business interruption and equipment breakdown, in Quebec.

DGIG reported direct written premiums of $2.236 billion in 2014, up 5.9% from $2.112 billion in 2013.

Monique Leroux, chair and CEO, Desjardins Group

On Jan. 1, Desjardins completed the acquisition of the Canadian operations of State Farm.

“With the State Farm transaction, which almost doubles the size of our P&C insurance business, DGIG has achieved its objective to be in the top three in the industry,” stated Monique F. Leroux (pictured), chair of the board, president and chief executive officer of DGIG’s parent company, Desjardins Group, in a release. Leroux is also CEO of DGIG.

“It has also made solid progress in improving customer experience and in positioning itself as a partner of choice for our members and clients.”

The combined ratio increased by 0.7 points, from 93.1% in 2013 to 93.8% last year.

Underwriting income excluding market yield adjustment dropped 9.9% to $122.6 million in 2014, from $136 million in 2013.

Net income dropped from $195.2 million in 2013 to $151.3 million in 2014.

For the fourth quarter, DGIG reported direct written premiums of $526.2 million, up from $495 million in Q4 2013. The combined ratio deteriorated by 8.7 points, from 83.9% in Q4 2013 to 92.6% in the most recent quarter.

Correction notice: An earlier version of this story incorrectly reported that DGIG’s direct written premiums were $2.357 billion in 2014 and that the increase from 2013 was 11.6%.


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