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
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
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