2011 First Quarter Financial Results - Desjardins Financial Security continues to grow its business across Canada with net income of $53.4M as at March 31, 2011

Group and business insurance sales up 71.5%
Individual insurance sales up 20.0%
Group retirement savings sales up 17.1%
Gross insurance premiums up 6.5%
Premium growth in all business sectors
Return on shareholder's equity of 21.8%

LÉVIS, QC, May 26, 2011 /CNW Telbec/ - Desjardins Financial Security, a subsidiary of Desjardins Group specializing in life and health insurance and retirement savings, recorded net income of $53.4M at the end of the first quarter of 2011, compared to $51.5M over the same period in 2010. Gross insurance premiums were up in all business sectors, standing at $753.8M, for an increase of 6.5% over the first quarter last year.

On March 31, 2011, insurance sales totalled $136.3M compared to $99.2M at the same time last year. Sales of savings products stood at $482.7M for the first quarter of 2011.

The share of the Company's net income attributable to the shareholder, the Desjardins caisses, totalled $53.0M for the period ended March 31, 2011. Return on shareholder equity was 21.8%, which is one of the best in the financial services industry.

Desjardins Financial Security's financial stability is excellent, with assets under management and administration of $27.1B as at March 31, 2011, compared to $24.1B in the first quarter of 2010, for an increase of 12.8%.

Commenting on the Company's contribution to Desjardins Group, Ms. Monique F. Leroux, Chair of the Board, President and CEO of Desjardins Group, and also CEO of Desjardins Financial Security, said, "Desjardins Financial Security has once again performed very well and continues to carve itself a choice place among the leaders of the Canadian financial services industry."

Mr. Richard Fortier, President and Chief Operating Officer of Desjardins Financial Security, said he was very satisfied with the Company's results at the beginning of 2011. "These results show that our accelerated growth plan is paying off when it comes to our nationwide expansion. Close to 50% of our sales now come from outside Quebec. We're really motivated by our growing presence from coast to coast and are ready to challenge our competitors with quality products and services tailored to the needs of today's consumer. We're also working hard to contribute in a significant way to Desjardins Group's profitability and to building its reputation across the country."

Results by segment

In group insurance, premiums generated by groups and businesses and by plans offered in financial institutions like the Desjardins caisses stood at $610.7M in the first quarter of 2011, compared to $573.0M at the same time last year. Group and business insurance sales totalled $79.4M versus $46.3M last year, for an increase of 71.5%.

In individual insurance, gross premiums stood at $143.1M in the first quarter of 2011, compared to $135.0M at the same time in 2010. 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 totalled $25.8M ($21.5M in the first quarter of 2010), for a 20.0% increase.

In savings, total sales stood at $482.7M on March 31, 2011, with individual savings sales totalling $227.8M and investment fund sales totalling $196.1M ($174.8M in 2010). In group retirement savings, sales were up 17.1%, totalling $58.8M.

Information note

International Financial Reporting Standards

For its interim consolidated financial statements for the period ended March 31, 2011, Desjardins Financial Security applied the International Financial Reporting Standards (IFRS) for the first time. These standards replaced the Canadian Generally Accepted Accounting Principles (GAAP) on January 1, 2011. Desjardins Financial Security has restated its 2010 comparison figures to reflect the new IFRS standards.

About Desjardins Financial Security

Desjardins Financial Security, a subsidiary of Desjardins Group, the leading cooperative financial group in Canada, specializes in providing life and 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 security. Desjardins Financial Security employs some 4,000 people and administers $27.1 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 website at www.desjardinsfinancialsecurity.com.


SOURCE DESJARDINS FINANCIAL SECURITY

For further information:

Source (for journalists only):
Frédéric Pothier
Media Relations Advisor
Desjardins Group
514-281-7000 or 1-866-866-7000, ext. 7646
media@desjardins.com

Profil de l'entreprise

DESJARDINS FINANCIAL SECURITY

Renseignements sur cet organisme


FORFAITS PERSONNALISÉS

Jetez un coup d’œil sur nos forfaits personnalisés ou créez le vôtre selon vos besoins de communication particuliers.

Commencez dès aujourd'hui .

ADHÉSION À CNW

Remplissez un formulaire d'adhésion à CNW ou communiquez avec nous au 1-877-269-7890.

RENSEIGNEZ-VOUS SUR LES SERVICES DE CNW

Demandez plus d'informations sur les produits et services de CNW ou communiquez avec nous au 1‑877-269-7890.