Promutuel targets English Canada

Promutuel Insurance posted record profits last year, so management now believes it has enough backbone to double its size and take English Canada by storm.

“It has been an exceptional year. […] We have never achieved these results”, indicated to the Log CEO, Geneviève Fortier.

Thursday, the Quebec insurer which brings together 16 mutual companies held its annual general meeting. Management revealed during the event that it had made a historic profit of $229 million (+74.8%), of which $206 million came from gains in the insurance sector.

Total written premiums for this group are now approaching the $1 billion mark, or $993 million (+4.5%). Promutuel is the fourth largest damage insurer in Quebec with 632,000 members.

Like several other insurers, management does not hide having taken advantage of the favorable context of the past two years due to the pandemic where motorists have notably been less present on the roads. The low loss rate due to the mercy of Mother Nature also helped.

Double in size

Despite its good results and the changes in the world of work, Promutuel does not plan to lower its auto insurance premiums. The insurer says it is also a victim of inflation. Costs for repairs and materials have skyrocketed.

Promutuel now hopes to double its size within “five to seven years”. To achieve this, the management has an envelope of several tens of millions of dollars. The objective is to grow organically, but also to make acquisitions or sign strategic partnerships.

Insurers in the rest of Canada are already on the hunting board. Motus and mouth sewn on their identity. The personnel in these companies will also weigh in the balance when the time comes to make choices.

“In the position that we have, to be able to maintain our competitiveness, the question of size becomes important. The industry continues to consolidate,” said Ms. Fortier.

Promutuel does business in the auto, home, business and farm insurance sectors. The only breakthrough the group has made outside Quebec since its birth 170 years ago is in New Brunswick.

cyberattack

Today, Promutuel says it has recovered completely from its cyberattack at the end of 2020 which had paralyzed its computer systems.

The investigation showed that this offensive came from hackers located outside of Canada, said Mr.me Fortier.

The latter added that, despite this incident, the retention rate of the group’s insurance policies reached 89% last year. The insurer has also since launched its cyber risk product for businesses.

VOLUME OF PREMIUMS SUBSCRIBED

  • $403 million car
  • $305 million housing
  • $211 million business
  • $74 million agricultural

Source: Promutuel Insurance

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