Promutuel Insurance reports 6% growth for 2018
Trois-Rivières, April 25, 2019 – At the conclusion of the Annual General Meeting of members held this afternoon in Trois-Rivières, Promutuel Insurance proudly announced a 6% increase in premiums written for 2018, bringing its premium volume to 869 million versus 820 million in 2017.
”This growth is very encouraging, especially in an industry as competitive as the damage insurance industry. Groupe Promutuel’s mutual insurance associations have been instrumental in achieving these results. They do everything they can to better serve our insured members every day,” said Normand Morin, Acting Chief Executive Officer.
Reflecting the new reality facing the industry as a whole, the loss ratio remains high, at 68.4% as at December 31, 2018, compared to 69.0% in 2017. This trend is largely due to the increased frequency of climatic events (e.g., windstorms, floods, tornadoes). Not only has the number of claims increased, but their severity tends to be higher as well. Costs have risen dramatically for everything from rebuilding (home insurance) to vehicle repair, which requires increasingly sophisticated technology, and this has a direct impact on the company’s loss ratio.
As a result of this high loss ratio, Promutuel Insurance ended the year with a combined ratio of 102.6% and a net loss of $5 million. However, this has in no way compromised the company’s financial strength, as evidenced by its 528 million in member assets. “We have already taken important steps to restore profitability. We have a duty to protect our insured members by maintaining a comfortable balance between premium levels and claims costs, and that is exactly what we are continuing to do in their best interest,” said Normand Morin.
Initiatives to better serve members
The last year was marked by the deployment of a new province-wide personal lines insurance policy management system. The new system is designed to enhance the member experience by improving insurance policy content and simplifying company processes. “Our insured members are the driving force behind our everyday actions. We appreciate the trust they place in us year after year, and reiterate our commitment to protecting them in the spirit of mutual assistance, trust, and locally based service,” added Group Chair Yvan Rose.
Mutual assistance, first and foremost
Promutuel Assurance continued to embody its values of mutual assistance and solidarity in 2018 by supporting organizations such as SOCODEVI, Institut Pacifique, Université Laval, Centraide, Forces AVENIR, the Grand défi Pierre Lavoie, and the Canadian Red Cross.
Always loyal to its agricultural origins, the company contributed to the annual Open House on Quebec Farms event and the National Order of Agricultural Merit, while also supporting a multitude of local organizations.
About Promutuel Insurance
Promutuel Insurance is one of the biggest damage insurers in Québec. Renowned for its financial stability, superior quality products, and outstanding customer service, Promutuel Insurance boasts 1,925 employees serving some 630,000 insureds. Promutuel Insurance’s mission is to promote and provide insurance products that meet the needs of its clients. In doing so it provides exceptional, personalized service while fostering the mutualist values that have guided it for 167 years.
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For more information:Cathy Baillargeon
Communications Advisor
[email protected]
1-800-463-4888, ext. 2120