A tremendous year for Desjardins Financial Security

  • Net income hits $504.5 million, surpassing the half-billion mark for the first time
  • Gross insurance premiums reach a record high of $4 billion

LÉVIS, QC, March 1, 2017 /CNW Telbec/ - For the period ending December 31, 2016, Desjardins Financial Security (DFS), a subsidiary of Desjardins Group specializing in life insurance, health insurance and retirement savings, posted net income of more than half a billion dollars for the first time: $504.5 million, up 12.5% over 2015.

On January 1, 2016, DFS acquired 2 of Desjardins Group's subsidiaries: Desjardins Investments Inc., whose operations include designing and administering individual and group investment products, and Desjardins Investment Product Operations Inc., which processes and administers savings and investment accounts for specialized products. These acquisitions have not only boosted synergy between DFS sectors, but have also had a positive impact on the company's net results, assets under management and total savings sales, compared to 2015. Other factors that increased net income were strong returns on investments and strict control of expenses.

For the first time in the company's history, gross insurance premium sales reached $4 billion, which translates as a 3.0% jump in growth over 2015. Insurance sales grew by 4.5%, peaking at $470.8 million compared to $450.6 million in 2015.

DFS continues to enjoy excellent financial strength: return on shareholder's equity is 17.9%. As at December 31, 2016, assets under management and administration were up by $50.7 billion, reaching $96.5 billion.

"We have kept innovating to meet the changing needs of our members and clients, particularly with respect to online investments, where we have 2 new funds for investors who are concerned about the environment. We've improved the online experience for insureds, as well. With Gregory Chrispin at the helm, we'll harness the full potential of our strengths to move forward and become the financial health partner of choice," affirmed Guy Cormier, Chair of the Board, President and CEO of Desjardins Group and CEO of DFS.

"We're very happy with these results, particularly the major growth we've seen in net income and gross insurance premiums, which hit record highs this year. In a challenging market, our disciplined management style, excellent sales growth and the increased cohesiveness between our activities were all key factors in making 2016 such a successful year," explains Gregory Chrispin, President and Chief Operating Officer of Desjardins Financial Security.

 

Highlights 







(In millions of dollars, unless otherwise indicated)

2016

2015

Change

Q4 2016

Q4 2015

Change

Net income

504.5

448.4

12.5%

151.2

147.0

2.9%

Gross insurance premiums

4,005.4

3,887.4

3.0%

1,022.7

971.6

5.3%













As at Dec. 31,

As at Dec. 31,






2016

2015

Return on equity




17.9%

18.3%

Assets under management and administration




$96.5 billion

$45.7 billion


 

2016 fourth quarter results
For the fourth quarter of 2016, net earnings represent $151.2 million, versus $147.0 million in 2015, and insurance premiums total $1.0 billion, surpassing 2015's posted $971.6 million. Insurance sales capped at $110.5 million, compared to $106.0 million the previous year. 

Sales in the savings sector rose to $2.7 billion, compared to $457.3 million in 2015.

Results by business sector for the fiscal year ended December 31, 2016 
At the end of the 2016 fiscal year, total sales in the savings sector had skyrocketed to $13.1 billion, over $2.0 billion in 2015, which represents growth of 544.4%. Individual savings recorded total sales of $407.4 million.

In group insurance, the volume of premiums from groups and businesses and from plans offered through financial institutions, including the Desjardins caisses, stood at $3.1 billion, compared to $3.0 billion at the end of 2015.

Insurance sales for groups and businesses rose to $186.5 million, representing 14.3% growth over the previous year. Sales for plans offered in financial institutions stand at $203.8 million.

The volume of individual insurance premiums grew by 5.6%, totalling $898.8 million, and surpassing 2015's $851.0 million. In 2016, total sales recorded by the financial security advisors assigned to Desjardins caisses and by the SFL network, Desjardins Financial Security Independent Network and the State Farm network hit $80.5 million, topping the previous year's total sales of $77.2 million.  

About Desjardins Financial Security 
Desjardins Financial Security (DFS) is a subsidiary of Desjardins Group, the leading cooperative financial group in Canada, specializing in providing life insurance, health insurance and retirement savings products to individuals and groups. Each day, more than 5 million people count on DFS to protect their financial security. The company employs some 4,800 people and administers $96.5 billion in assets. DFS has offices in a number of cities nation-wide including Vancouver, Calgary, Edmonton, Winnipeg, Toronto, Montreal, Quebec City, Lévis, St-John's and Halifax. For more information, visit www.desjardinslifeinsurance.com.

 

SOURCE Desjardins Financial Security



For further information: (media inquiries only): Jacques Bouchard, Public Relations, Desjardins Group, 514-281-0844, or 1-866-866-7000, ext. 5557940, jacques.bouchard@desjardins.com, media@desjardins.com


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