Desjardins P&C segment reports 25.5% increase in total income

Desjardins Group’s Property and Casualty Insurance segment reported a total income of $2.04 billion in 2011, a 25.5% increase over 2010’s total income.

The company cites a $261-million increase in net premiums as a contributing factor for the increase in income. Growth initiatives targeting mass markets and groups, both in Quebec and across the country, allowed the insurer to increase the number of policies issued.

Western Financial Group contributed $71 million to net premiums since its acquisition, a Desjardins release says.

Expenses related to claims, benefits and changes in insurance contract liabilities increased $243 million (23%) from 2010. “This change was mainly due to growth in the portfolio of automobile insurance policies in Ontario, which recorded a higher loss ratio than other business lines, particularly with respect to bodily injury coverage,” a release says.