7 February 2018 13:30
The acquisition of the american insurer specializing OneBeacon by Intact financial Corporation to bear fruit and enhances the growth of premiums of 16 % for the fourth quarter of 2017 and 3 points for the year.
Direct premiums written are recorded at close to 2.3 billion dollars (G$) for the last quarter of 2017, an increase of 17 % compared to the$ 1.9 billion recorded in the fourth quarter of 2016. For the year, they are 8 747 G$ against 8 293$ Billion in 2016, an increase of 5 %.
«The year 2017 was a pivotal year as we have expanded our reach by entering the us market for specialty products. In the United States, our transition plans and profitability to improve the results of OneBeacon are progressing as planned. Thanks to a good balance sheet and better prospects of returns, we are pleased to increase the dividend paid to our shareholders, » says Charles Brindamour, ceo of Intact.
36% increase in net income
The insurer has recorded for the fourth quarter, net income of 232 million dollars ($M), up 36 % compared to the corresponding period of 2016, while it amounted to$ 171 Million. For 2017 year, net income was $ 792 Million from$ 541 Million to$ 2016 in growth of 46 %.
The combined ratio remained virtually unchanged at 92.6 % in the fourth quarter of 2017, as against 92.5% in 2016. For the year, it has dropped by one point to reach 94.3 %, while it was from 95.3 % in 2016. In Canada, the combined ratio improved by 0.6 point in the fourth quarter to 91.9 per cent and reflects improved results in the sector of insurance business, offset by higher losses and weaker results in the automobile insurance industry.
Motor insurance is still in the red
The quarter has seen declines in motor insurance premiums for individuals and an increase in the combined ratio by 0.3 points, which is passed to è with 101.2 %. This has resulted in a net loss from underwriting of$ 11 Million for the quarter, compared to$ 9 Million in the previous fiscal year.
However, Intact indicates that the change in claims from previous years has improved by 1.4 point. The underlying profitability declined by 2.9 percentage points » because of the increase in costs related to property damage and insurance claims related to weather conditions «.
Decrease of the net proceeds of the subscription
The net proceeds of subscription in the insurance sector of the property of individuals has declined from$ 120 Million in the fourth quarter of 2016 to$ 106 Million in 2017 due to the increase in claims related to weather conditions. However, the company has recorded a «very good» combined ratio of 79.7 %, although it increased compared to the fourth quarter of 2016. The premiums in this sector have also increased by 4 %.
Growth in the insurance business
Despite the measures of adjustment of the rates and segmentation in insurance, property and liability business, premiums in the insurance business increased 2 % during the quarter. The combined ratio fell by 5.8 percentage points to 87.4 per cent. The net proceeds of the subscription has almost doubled, standing at$ 75 Million against$ 42 Million in the fourth quarter of 2016. For the year 2017, the combined ratio improved 5 points and amounted to 86,5 %.