Desjardins Group’s insurance surplus earnings increased 55% in 2024

In announcing its financial results on Feb. 25, Desjardins Group reported net surplus earnings of $544 million in the fourth quarter of 2024 for its property and casualty insurance, wealth management and life and health insurance segments. This is a 5% decrease over the same period in 2023, when surplus earnings totalled $574 million.   

For the full year, these two segments generated net surplus earnings of $1.7 billion in 2024, compared with $1.1 billion in 2023. This is a year-on-year increase of $607 million or 55%.   

Property & casualty insurance   

In the fourth quarter of 2024, property and casualty insurance net surplus earnings were $468 million, compared with $360 million in the same quarter of 2023.    

For the full year, property and casualty insurance net surplus earnings totalled $1.1 billion, compared with $494 million in 2023. This is an increase of 123% in 12 months.   

Net insurance revenue totalled $737 million in the fourth quarter of 2024, compared with the $581 million announced for the same period in 2023.   

For the full year, net revenue approached $1.9 billion in 2024, compared with $1 billion in 2023. This is an increase of 85%.   

Desjardins attributes this result to automobile and property insurance premium growth, as well as to business arising from the acquisition of The Insurance Company of Prince Edward Island (ICPEI). Desjardins Group also reported lower claims expenses for prior years and for the claims expense for the current year. This was offset by the occurrence of two catastrophes and one major event in 2024.   

Direct premiums written in this segment were $1.8 billion in the fourth quarter of 2024, compared with $1.6 billion in the fourth quarter of 2023. This is an increase of $185 million or 11%.   

For the full year, direct premiums written were $7.6 billion, up $709 million or 10% on the $6.9 billion announced in 2023.    

Wealth management and life and health insurance   

In the Wealth Management and Life and Health Insurance segment, net surplus earnings totalled $76 million in the fourth quarter of 2024, compared with net surplus earnings of $229 million in the same quarter of 2023. This is a decrease of $153 million or 67%.   

This segment reported a net surplus of $601 million for the full year 2024, unchanged from 2023.   

Desjardins Group attributes the fourth quarter decrease in particular to “a lower net insurance finance result stemming from a gain on disposal of buildings in the fourth quarter of 2023, as well as to higher costs arising from growth in assets under management and under administration.” The decline was partially offset by higher other income, due in particular to higher assets under management and administration.   

 Claims experience   

In property and casualty insurance, the claims ratio was 64.6% in 2024, compared with 72.8% in 2023.     

The combined ratio was 84.4% in 2024, compared with 93.0% in 2023. Desjardins has not published loss experience figures for the fourth quarter.   

The catastrophe and major event loss ratio was 7.8% in 2024, compared with 3.6% in 2023.    

Desjardins reports having responded to, “in just a few weeks, to the needs of members and clients following the two largest events in Desjardins's history of indemnification, with more than 40,000 claims.” 

As of Dec. 31, 2024, Desjardins' total assets amounted to $471 billion. This is an 11% increase over the $423 billion reported at Dec. 31, 2023.