Desjardins Financial Security's third quarter results show continued growth in group retirement savings and insurance sales

Group retirement savings sales: up 75.5%  
Group and business insurance sales: up 45.0%
Individual insurance sales: up 22.8%
Gross insurance premium income: up 6.7%
Net income: $137.4 M
Return on shareholder's equity: 19.0%

LÉVIS, QC, Nov. 29, 2011 /CNW Telbec/ - Despite a difficult market situation for life insurance companies, Desjardins Financial Security (DFS), a Desjardins Group subsidiary specializing in life insurance, health insurance and group retirement savings products, posted earnings of $137.4 million for the first nine months of 2011, compared to $166.9 million for the same period in 2010. Gross insurance premium income totalled $2.3 billion for an increase of 6.7% over the same period in 2010. Insurance sales stood at $362.4 million, up $58.6 million compared to the same period a year earlier, and savings product sales totalled $1.4 billion.

The share of DFS' net income attributable to the shareholder, the Desjardins caisses, totalled $136 million. Return on shareholder equity was 19.0%, which ranks among the best in the financial services industry.

Falling stock prices and declining interest rates had the most significant impact on the company's profitability in the first nine months of 2011 compared to the same period a year earlier. DFS' financial stability remains excellent, with assets under management and administration of $27.7 billion compared to $25.8 billion for the same period in 2010.

Third Quarter Results
For the period of July 1 to September 30, 2011, net income totalled $25.1 million compared to $67.0 million for the same period a year ago. Insurance sales stood at $117.6 million compared to $97.3 million in 2010. Insurance premiums totalled $769.4 million, compared to $726.6 million a year earlier. Savings product sales totalled $307.7 million compared to $308.3 million for the same period in 2010.

Monique F. Leroux, Chair of the Board, President and CEO of Desjardins Group, and also CEO of Desjardins Financial Security, praised the company's performance in these uncertain economic times. "Once again, our life and health insurance company has posted notable growth while remaining strongly focused on national expansion. Its financial stability is excellent despite the recent upheaval of the financial markets," she said.

Denis Berthiaume, Senior Vice-President and General Manager of Wealth Management and Life and Health Insurance, Desjardins Group, President and COO of Desjardins Financial Security, said he was very pleased with the results. "Our product and service expertise, our drive and our commitment to growing our business, combined with our rigorous management, have allowed us to achieve our national expansion goals. Our promising results have motivated us to continue this expansion with as much attention to our clients as ever and a continued commitment to making a significant contribution to Desjardins Group's performance."

Results by sector
In group insurance, the volume of premiums from groups, businesses and from plans offered in financial institutions, including the Desjardins caisses, stood at $1.9 billion as at September 30, 2011, for an increase of $117.4 million over the same period last year. Group and business insurance sales stood at $165.6 million compared to $114.2 million for an increase of 45.0%. Sales of plans offered in financial institutions totalled $117.6 million as at September 30, 2011.

In individual insurance, premium volume totalled $429.5 million for the first nine months of 2011 compared to $404.1 million in 2010, for an increase of 6.3%. 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 $74.8 million, compared to $60.9 million, up 22.8% over the same period in 2010.

Sales of group retirement savings products totalled $426.0 million compared to $242.8 million for an increase of 75.5%. Sales of individual savings products totalled $546.9 million. Mutual fund sales stood at $420.8 million, up 11.1% over the same period in 2010.

About Desjardins Financial Security
Desjardins Financial Security, a subsidiary of Desjardins Group, the leading 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 security. The Company employs over 4,000 people and administers $27.7 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 www.desjardinsfinancialsecurity.com.


SOURCE DESJARDINS FINANCIAL SECURITY

For further information:

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