An increase in direct written premiums, coupled with an enthusiastic embrace of usage-based insurance in Ontario and Quebec, are credited for a strong third quarter from Desjardins General Insurance Group.
Compared to 2012, direct written premiums increased 6.3 per cent for the quarter ending September 30, 2013 to $550.1 million – contributing to a posted net income of $45.4 million for the quarter – up 117.2 per cent from the previous year.
And all this, despite the summer of storms and the rail disaster that hit Canada’s two most populous provinces during that same quarter.
“The Lac-Mégantic tragedy in Quebec and the severe storms in areas of Ontario and Quebec during the quarter,” says Sylvie Paquette, president and COO of DGIG, “reminded us once again of how the coverage we provide is critical in helping people recover and move on with their lives.”
The combined ratio for the quarter was 95.1 per cent, an improvement of 6.5 percentage points from the corresponding period in 2012.
One of the greatest success stories for Desjardins has been in auto insurance, Paquette points out. The Ajusto and Intelauto usage based insurance pricing programs, in the first four-and-a-half months, approximately one third of eligible new customers in Ontario and Quebec have signed up for the programs, with about 38,000 customers having enrolled. (continued.)
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“With these programs, customers can earn a discount of up to 25 per cent on their auto insurance renewal,” says Paquette. “That's positive for us as we are attracting good drivers and encouraging good driving habits, and it's positive for our customers as they are saving money on their auto insurance. In addition, it is supporting the Ontario government's goal to reduce the cost of auto insurance in the province.”
She also said that the signing of an agreement with an insurance subsidiary of CIBC to underwrite its new home and auto insurance program was an achievement that will help DGIG to continue its strong growth across the country. The program has already launched in Ontario, with a broader rollout planned for 2014.
