Desjardins GIG reports Q1 results

Desjardins General Insurance Group (DGIG), a Desjardins Group subsidiary specializing in property and casualty insurance, posted a Q1 net income of $25.4 million. This was down 59.2% compared with the first quarter in 2012, which benefited from unusually favourable weather across the country.

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Direct written premiums increased by 6.1% to $482.4 million compared to $454.7 million in Q1 2012. This above market result was achieved entirely through organic growth, with all business areas contributing — mass market home and auto insurance, group insurance, white label partnerships, and commercial lines. The combined ratio in the quarter was 99.8%, 10.9 percentage points higher than in Q1 2012, while the return on equity was 10.9%.

Sylvie Paquette, president and chief operating officer of Desjardins General Insurance Group, said that despite the unfavourable comparison with 2012, the first quarter in 2013 was positive both in terms of growth and profitability.

“This was a more typical quarter compared to Q1 last year, as we actually had winter this year,” she said. “Overall it was a good quarter. Although our growth in sales has slowed, we remain optimistic that we will continue to increase our market share through the rest of the year. “

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Looking ahead, Paquette said that DGIG is closely monitoring the Ontario government’s proposed decrease in auto insurance rates.

“We understand the desire to reduce the cost of auto insurance in Ontario, but any reduction in rates must be offset by corresponding measures to reduce claims costs. All indications from the government are that they understand this reality and will act prudently,” she said.

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Staff

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