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2% fall in net income from RBC Insurance in the third quarter



24 Aug 2018 09:45

Photo : Freepik

The insurance subsidiary of RBC Royal Bank , registered a decrease of 2 % of its net profit in the third quarter of 2018 compared to the corresponding quarter of 2017. It has therefore been established to 158 million us dollars (M$) for the period ending 31 July, compared to$ 161 Million last year.

RBC attributes these results to higher costs to support the growth of sales and service activities to the customer, ” balanced by a more favourable claims experience at the international level “.

Net profit fell to$ 14 Million (8 %) compared to the second quarter, due to the decline in the loss ratio related to investments. However, this decline has been offset by the expansion of insurance activities in Canada, the recovery of a contract of retrocession life and a better claims experience in the international.

Net income of$ 3.1 billion for the group

RBC Royal Bank has reported a net profit of 3.1 billion dollars (G$) for the whole group, an increase of 11 % compared to the third quarter of 2017.

The division of wealth management of RBC, has experienced revenues of 578 Million, respectively, representing a growth of 19 %, thanks to growth of average assets linked to fee-based services in Canada and the United States affected by a good performance of the equity markets and client activity.

The net profit of this division increased by$ 41 Million, or 8 %, compared to the second quarter of 2018. The growth of average assets linked to fee-based services, reflecting capital appreciation and net sales, and an increase in net interest income due to volume growth contributed to these results.

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