Beneva has announced its first-time financial results.

Created through the merger of La Capitale and SSQ Insurance, the company reported combined net income of $276.4 million ($M) for the 2020 fiscal year.

In 2019, that combined result was $227.5 million, with $125.7 million for La Capitale and $101.8 million for SSQ, Beneva says.

As a result, Beneva's combined earnings increased by 21.5 per cent or $48.9 million between 2019 and 2020.

In 2018, La Capitale reported net income of $75.5 million compared with $94.6 million for SSQ, according to their respective annual reports. If Beneva had existed at the time, its combined net income would therefore have been $170.1 million.

Sector results 

Looking at Beneva's combined net income for the year 2020 in detail:

  • P&C insurance: Net income of $176.9 million, due to “claims experience that was much lower than expected due to the absence of significant weather events and fewer claims” Beneva notes. “Experience was favourable for all products” in this segment, the company says, noting that this result takes into account pandemic-related premium discounts given to customers.
  • Group insurance: Net income of $24.5 million. “Short-term products generated appreciable earnings,” Beneva says. It adds that “Long-term disability insurance was unfavourable during the year.” 
  • Individual insurance and financial services: Net income of $22.9 million in individual insurance and $13.1 million in savings. “The impact of the stock market and interest rate decreases led to below-target net income,” the insurer says.

“The remaining $39 million is the earned surplus,” Danielle Rioux, communications and public relations advisor and executive vice-presidency – talent, culture and communications, at Beneva, told Insurance Portal. 

“‘Earned surplus’ means the same thing as ‘insurer's equity.’ It represents the surplus of insurers’ assets over their liabilities. Thus, the earned surplus is the financial result of investments made during the year,” she explains.

Gross premiums rise 

Beneva reported gross premiums of $6 billion for 2020. They were $5.5 billion in 2019, namely $2.9 billion for La Capitale and $2.6 billion for SSQ. The corresponding increase is 9.1 per cent or $538 million.

In closer detail, 2020 gross premiums can be broken down as:

  • $1.3 billion in individual insurance and financial services, up 19.2 per cent from 2019
  • $1.7 billion in property and casualty insurance, up 15.5 per cent from 2019
  • $3 billion in group insurance, up 3.2 per cent from 2019.

For 2020, Beneva reports a solvency ratio of 157 per cent, which “demonstrates that Beneva is well capitalized at a level that is envied by the industry,” the company says.

“These excellent 2020 financial results ensure that we have a promising future. They show that our union has value and support our long-term vision,” Jean-François Chalifoux, President and CEO of Beneva said in his announcement of these results.

RSA Canada, Aviva Canada, Desjardins, Economical, Co-operators, Intact, iA, Manulife, Sun Life, Great-West Lifeco, Equitable Life and Empire Life released their financial results for the year 2020 a few months ago.