In its financial results published on November 8, Desjardins Group reported a decline in surplus earnings for its insurance activities in the third quarter of 2024.

Combining the wealth management and life and health insurance segments with those of general insurance, the contribution to surplus earnings reached $156 million in the third quarter of 2024.

These two segments achieved a surplus of $228 million in the same period of the previous year. This represents a 31.6% year-on-year decline.

General insurance 

 In general insurance, surplus earnings reached $53 million in the third quarter of 2024, compared with $103 million in the same quarter of the previous year.

The change in surplus earnings was due to higher claims-related expenses resulting from two weather-related catastrophes and one major event during the quarter. This was partly offset by higher income from insurance activities.

Net income from insurance activities was $105 million in the third quarter of 2024, compared with $212 million in the third quarter of the previous year. This represents a decrease of 51%. 

Direct written premiums in this segment totaled $2.1 billion in the third quarter of 2024. This represents an increase of $236 million or 13% compared with the same quarter in 2023.

Insurance revenue rose by 13% in the most recent 12-month quarter. This was “mainly due to premium growth in automobile and property insurance and to business resulting from the acquisition of The Insurance Company of Prince Edward Island (ICPEI),” Desjardins stated.

Wealth management and life and health insurance  

In the Wealth Management and Life and Health Insurance segment, surplus earnings reached $125 million in the third quarter of 2024. The same surplus earnings were recorded in the same quarter last year.

The insurance service result was $159 million in the third quarter of 2024, compared with $180 million in the same quarter of 2023.

This 12% decrease in the insurance service result is explained “mainly due to a less favourable experience and a less favourable effect of the update to actuarial assumptions,” as stated in the quarterly report.

Claims experience  

In general insurance, the discounted combined ratio stood at 99.3% in the third quarter of 2024, compared with 91.7% for the same quarter in 2023.

The claims ratio was 81.5% in the third quarter of 2024, compared with 75.1% in the same quarter of 2023. This includes a catastrophe and major event loss ratio of 30.6% in the latest quarter, compared with 7.2% a year earlier. 

The loss ratio fell in the last quarter to 22.2%, compared with 24.7% in the same quarter last year.

Expenses relating to insurance activities rose by 57% year-on-year. “The third quarter of 2024 was marked by two major catastrophes, namely torrential rains in Québec and hail in Alberta, as well as a major event in Ontario, whereas the third quarter of 2023 was marked by seven smaller-scale major events, mainly wind and water damage in Québec and Ontario,” stated Desjardins.

At September 30, Desjardins' total assets stood at $464.7 billion. One year earlier, total assets stood at $414 billion.