16 May 2019 13:30
Photo : Jean-Philippe Bourgoin
The sector of damage insurance, of Desjardins group recorded a net deficit of $ 81 million ($M) in the first quarter of 2019, compared to a surplus of$ 26 Million in the same period of 2018.
The difficult weather conditions, contributing to the increase in the frequency of claims explain the fall in net income. It was, however, offset by the increase in net premiums, ” said Desjardins.
Weather conditions to blame
“The difficult weather conditions of this winter and this spring have greatly influenced the performance of our property and casualty insurer with a significant increase in claims in the residential compared to the previous year. Moreover, these difficult conditions continue, Desjardins is of any heart with the people that are affected by the floods. We are empathetic and tuned in providing relief to our members and clients who are currently living in difficult times. Despite the impact of weather events on our results in damage insurance, the greater diversification of the activities of the Movement and the good results of other areas of activity will allow Desjardins to achieve a good performance in the first quarter. I’m also proud of the evolution of the discount. It is now more accessible and uniform, and acknowledges more the faithfulness of our members. As of this year, 840, 000 members more will receive a rebate, ” said president and chief executive officer, Guy Cormier.
Desjardins does not expect the flooding to have a material impact on its financial results.
Net premiums, comprising life insurance and people, have increased from 8.3 to $ 2.3 billion, due to growth of activities in the two sectors.
The wealth management and life and health insurance have also been falling
The net surplus earnings for the sector of the wealth management and life and health insurance have also declined compared to the first quarter of 2018, rising from$ 206 Million to$139 Million.
This can be explained ” by the gains on the disposal of securities and real estate investment lower in 2018, offset by the decrease in provisions related to the investment portfolio “, according to Desjardins.
$ 100 Million in less
For all of the group’s surplus earnings before patronage allocations to members have fallen by$ 100 Million compared to the corresponding quarter of 2018, to reach 401 Million, respectively. The performance of the sector of damage insurance has attenuated the sustained growth of the caisse network, ” explains Desjardins.
The return to the members and to the community has increased from$ 23 Million to reach$105 Million.