2009 First Quarter Financial Results - Desjardins Financial Security posts net income of $30.5M, maintaining solid financial footing



    
    Individual savings sales up $127.5M
    Insurance premium volume up 3.2%
    10.5% increase in insurance sales
    $30.5 million in net income
    Return on shareholder equity of 17.5%
    

    LEVIS, QC, May 27 /CNW Telbec/ - For the period ending March 31, 2009,
Desjardins Financial Security, a Desjardins Group subsidiary specializing in
life insurance, health insurance and retirement savings products and services,
once again recorded growth in insurance premium income, which stood at $669.2
million, up 3.2 per cent as compared to the same period last year. Insurance
sales totalled $65.1 million, up 10.5 per cent from March 31, 2008. Despite
the ongoing worldwide financial crisis, Desjardins Financial Security has
maintained its profitability with a net income of $30.5 million as compared to
$36.3 million for the same period in 2008.
    For the first quarter of 2009, the net income share attributable to the
shareholder-the Desjardins caisses-totalled $30.3 million. Return on
shareholder's equity was 17.5 per cent and assets under management and under
administration totalled $19.5 billion.
    Desjardins Financial Security's financial strength has not been affected
by the continued economic crisis. The company still has an excellent
capitalization ratio and the fundamental insurance operations also remain very
profitable.
    Ms. Monique F. Leroux, President and CEO of Desjardins Group, and also
CEO of Desjardins Financial Security, acknowledged the Company's contribution
to Desjardins Group. "Despite the effects of the financial crisis, our life
and health insurance subsidiary achieved significant growth in terms of
business volume and remains a financially sound and strong company. Desjardins
Financial Security continues to contribute significantly to Desjardins Group's
results."
    Mr. Richard Fortier, Chief Operating Officer of Desjardins Financial
Security, said that he was satisfied with the results, drawing attention to
the growth achieved in the areas of insurance premiums and sales. "This growth
clearly shows that our products and services stand out in the Canadian market
and that they are meeting the needs and expectations of our clients. Given
these results, we are confident that going forward we will continue to
strengthen and grow our business across Canada."

    Results by business segment

    In group insurance, the volume of premiums generated by groups and
businesses totalled $402.6 million as compared to $392.8 million during the
last quarter of 2008. Group and business insurance sales grew by $5.2 million
for a total of $54.3 million.
    In individual insurance, sales grew by 10.2 per cent and stood at $10.8
million for the first quarter. Sales by Desjardins Financial Security's
financial centre network rose by 6.0 per cent in Quebec and 4.1 per cent in
the rest of Canada. Sales by financial security advisors assigned to
Desjardins caisses stood at $4.7 million, up 16.5 per cent. Gross premium
volume totalled $125.8 million, up $5.6 million over the same period in 2008
for the individual insurance segment.
    In savings, aggregate sales were $354.6 million, representing a $41.7
million increase over the previous year. In individual savings, aggregate
sales were $221.6 million, up $127.5 million since the first quarter of 2008.
Group retirement savings sales were $44.4 million, down $11.0 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 and services to
individuals and groups. Every day, over five million Canadians rely on
Desjardins Financial Security to ensure their financial security. Desjardins
Financial Security employs 3,800 people and administers $19.5 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.




For further information:

For further information: Sarah Twomey, Desjardins Financial Security,
(416) 926-2700, extension 2015, 1-877-906-5551, extension 2015,
sarah.twomey@dfs.ca; Virtual newsroom:
http://www.desjardinsfinancialsecurity.com/press


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