26 July, 2017 07:00
Although the recent floods in Quebec and not able to be directly attributed to climate change, for Denis Dubois, president of Desjardins general insurance Group, the trend is clear : the costs related to claims will climb.
«With climate warming, the costs related to the phenomena of weather extremes continue to escalate from one year to the other. This is why it is so important that insurers continue to work with the government to help protect Canadians and to develop effective solutions and consistent to deal with the consequences of floods and other risks linked to climatic conditions, » -he said, when the disclosure of the results of the first quarter of the division of insurance of Desjardins group.
The difficult winter that has seen the Quebec also weighed on the results of Desjardins group for the first quarter of 2017. The insurer posted a net loss of $ 11.4 million ($M) and return on shareholders ‘ equity deficit of 3.3 %. The insurer is also stressed that it is struggling with a loss experience is unfavourable for the current year, in large part due to the difficult weather conditions.
The insurer, however, has somewhat improved its combined ratio compared to the first quarter of 2016. He rose 101.9% to 101.6 %. In the first quarter of 2016, Desjardins Insurance had presented a net income of$ 31.5 Million for its activities in the property and casualty insurance. Its return on equity was 5.7 %.
Desjardins also says it experienced a strong organic growth during the first quarter of 2017 with in-force policies reaching the level of 4.26 million units, an increase of more than 10 000 in-force policies. The direct premiums written amounted to 923,6$ M, down 11.4 % compared to the same period in 2016. This decrease is explained in large part by the impact of the conversion carried out during the previous year on the car policies of State Farm , whose term is increased from six to twelve months, as well as by the tariff reductions of the 1 June 2016 arising from the government’s reform of automobile insurance in Ontario.