Insurer Beneva has just released its 2022 annual report. Its consolidated net income is $209.7 million, a 43 per cent decrease from $367.9 million in 2021.
Gross premiums were nearly $7 billion (B) in 2022, 6 per cent higher than the $6.6 B reported in 2021.
The mutual results from the merger of SSQ and La Capitale, announced in 2020. On January 1, 2023, “Beneva officially became an insurer, distributor and employer,” says Jean St-Gelais, Chair of the Board of Directors.
The insurer ranks in the Top 5 in Quebec in main segments of its operations: It is the leader in group insurance, and ranks third in P&C insurance and fourth in individual insurance and annuities. Beneva holds seventh place in the province for segregated fund sales.
At $55.3 million, net income in group insurance in 2022 rose phenomenally from the loss of $65.4 million in 2021. President and CEO Jean-François Chalifoux explains that “experience improved for most benefits” and that “interest rate fluctuations had a positive impact.”
New business was $178.5 million, down 19.3 per cent over 2021. The decrease is partly due to business decisions to support a gradual integration of the new ecosystem comprising the two merged firms.
Despite this decline, total business volume was $3.4 billion, 8.5 per cent higher than in 2021.
Property and casualty insurance
In the P&C insurance segment, net income was $93.8 million in 2022, versus $245 million in 2021. The explanation provided is that “three major climatic events marking 2022 negatively impacted results” in addition to “inflation and supply chain issues that contributed to an increase in the average cost of claims,” the company said in its release.
Sales were $441.6 million in 2022, compared to $448.7 million in 2022, for a 1.6 per cent decline year-over-year. Underwritten premiums were $2.2 billion, up 9.3 per cent from $2 billion reported in 2021.
Beneva does not separately disclose the results of its subsidiaries L’Unique General Insurance and Unica Insurance. However, the annual report mentions that both subsidiaries received their first credit rating from A.M. Best in 2022. The subsidiaries received an “A (excellent)” Financial Strength rating and an “a” Issuer Credit rating.
Nor does the annual report disclose loss ratios for P&C insurance.
Among the highlights, the report mentions Beneva’s sale of its dealership distribution business and portfolios to Sym-Tech, a subsidiary of the Amynta Group.
Individual insurance and financial services
Net income for the individual insurance and financial services segment was $42.4 million in 2022, versus $103.2 million in 2021.
Individual insurance new business dipped to $51.9 million in 2022, compared to $52.7 million in 2021, for a decrease of 1.5 per cent.
In financial services, new business amounted to $1.6 billion in 2022, versus $1.8 billion in 2021, corresponding to a decline of nearly 11 per cent.
Beneva’s assets were $25.1 billion. They were down 6.3 per cent from $26.8 billion reported in 2021.
Equity was $3.2 billion, up 3.2 per cent from $3.1 billion reported in 2021.
Jean-François Chalifoux points out that these financial results let Beneva “maintain solvency ratios at enviable levels.” The solvency ratio was 152 per cent, versus 172 per cent in 2021.
“Major technological investments carried out during the year, including expenses related to the integration, will allow Beneva to stand out, thus ensuring growth and competitiveness in the years to come,” the President and Chief Executive Officer of Beneva added.