Desjardins general insurance ops spur earnings growth

The general insurance arm of Desjardins Group helped boost company earnings in the first nine months of 2004, contributing to an overall return on equity of 17%. This compares with ROE of 14.7% in the first three quarters of 2003. The financial services giant also saw overall surplus earnings of $866 million in the first nine months of this year, up more than 28% over the same period a year ago.The performance of Desjardins General Insurance Group was highlighted in the company’s quarterly statement, with earnings in that segment soaring on the back of strong underwriting For the first nine months of 2004, the general insurance operations posted net income of $98.0 million, up from $39.3 million the year prior. ROE in the general insurance unit was a whopping 31.5% year-to-date in 2004, more than double the performance last year.Gross written premiums for general insurance were up by 11.6%, and the company notes strong performance in its non-Quebec subsidiary, The Personal. “The sharp rise in profitability, both for operations inside and outside of Qubec, reflects rising sales and significant improvement in underwriting profits in all markets, particularly with respect to automobile claims and the improvement to the operating expenseratio,” the company notes of Desjardins General’s performance.