Desjardins Financial Security performs exceptionally well in the first half
of 2010, with net income rising by close to 45% over 2009

Individual savings sales up 45%
Total savings sales up 39.3%
Individual insurance sales up 22.2%
Gross insurance premium volume up 5.2%
Net income of $120.4 million
Return on shareholder equity of 26.7%

LÉVIS, QC, Aug. 31 /CNW Telbec/ - At the end of the first six months of 2010, Desjardins Financial Security's profitability was up 44.5% and its net income stood at $120.4 million, compared to $83.3 million over the same period last year. This excellent financial performance is in large part due to good claims experience in both insurance and annuities. The Company, a subsidiary of Desjardins Group that specializes in life and health insurance and retirement savings, also continues to record growth in gross insurance premium income, which stood at $1,414.6 million, for an increase of 5.2% compared to the first six months of 2009. 

Insurance sales totalled $110.3 million versus $116.8 million in 2009. Savings product sales reached $1,118.6 million, compared to $803.0 million over the same period a year ago, for an increase of 39.3%.

The share of the Company's net income attributable to the shareholder, the Desjardins caisses, stood at $121.5 million, for an increase of $39.4 million. Return on shareholder equity was 26.7%, compared to 22.9% in 2009, one of the best in the financial services industry.

Desjardins Financial Security's financial stability is excellent, with assets under management and administration of $23.8 billion as at June 30, 2010, compared to $20.5 billion over the same period in 2009.

Second quarter results

For the period of April 1 to June 30, 2010, net income stood at $58.2 million, compared to $52.8 million in 2009. Insurance sales totalled $49.9 million versus $51.2 million for the same period a year earlier. Insurance premiums were $706.7 million, up $31.0 million over the second quarter of 2009. Savings product sales totalled $571.9 million, for an increase of $126.1 million over the second quarter a year ago. This growth is due primarily to individual savings product sales.

Ms. Monique F. Leroux, Chair of the Board, President and Chief Executive Officer of Desjardins Group, and Chief Executive Officer of Desjardins Financial Security, was pleased with the Company's performance, commenting that, "Desjardins Financial Security continues to make great business strides while maintaining excellent profitability and making a significant contribution to the overall performance of Desjardins Group."

Mr. Richard Fortier, President and Chief Operating Officer of Desjardins Financial Security, looking back proudly on what the Company had accomplished since the beginning of the year, commented that, "These results prove that Desjardins Financial Security has the strength, the creativity and the products to carve out a substantial share of the life and health insurance market. Our accomplishments show that when it comes to insurance and financial services, we rank among the top firms."

Sector results

In group insurance, gross premiums from groups and businesses and from plans offered in financial institutions, including the Desjardins caisses, stood at $1,148.1 million as at June 30, 2010, for an increase of $52.4 million over the same period a year earlier. Sales totalled $82.8 million.

In individual insurance, gross premiums stood at $266.5 million for the first half of the year, compared to $249.2 million for the same period in 2009. Total sales recorded by the financial security advisors assigned to the Desjardins caisses and by the network of SFL and Desjardins Financial Security Independent Network financial centres stood at $27.5 million, compared to $22.5 million over the same period a year earlier.

In savings, total sales amounted to $1,118.6 million. Individual savings sales rose 45% over the first six months of 2010, totalling $674.6 million, compared to $465.5 million over the same period a year ago. Group retirement savings sales stood at $162.9 million.

About Desjardins Financial Security

Desjardins Financial Security, a subsidiary of Desjardins Group, the largest cooperative financial group in Canada, specializes in providing life insurance, health insurance and retirement savings products to individuals and groups. Every day, over five million Canadians rely on Desjardins Financial Security to ensure their financial well-being. Desjardins Financial Security employs more than 3,800 people and administers over $23.8 billion in assets from offices in several cities across the country, including Vancouver, Calgary, Winnipeg, Toronto, Ottawa, Montréal, Québec, Lévis, Halifax and St. John's. For more information, visit our Web site at www.desjardinsfinancialsecurity.com.

For further information:

Source (for journalists only):
Sarah Twomey
Advisor, Media Relations
Desjardins Group
416-926-2700 or 1-877-906-5551, ext. 2015
[email protected]