Desjardins Financial Security records growth in premiums and individual insurance sales

 

  • Gross insurance premiums up 8.7%
  • Quarterly net income of $160.7 million, an increase of 50.3%
  • Total net sales in group retirement savings stand at $735.6 million

 

LÉVIS, QC, Aug. 25, 2015 /CNW Telbec/ - At the end of the first two quarters of 2015, Desjardins Financial Security, a subsidiary of Desjardins Group,    specializing in life insurance, health insurance and retirement savings, recorded $240.5 million in net income, compared to $194.8 million for the same period in 2014. Gross insurance premiums grew to $1,940.6 million, an increase of $155.5 million or 8.7% over 2014, nearly $68.0 million of which was generated by State Farm Canadian operations.

Contributing factors include improved claims experience for certain products, particularly in individual insurance and savings, and more favourable investment opportunities. The newly acquired operations of State Farm also contributed $38.5 million to the company's net income.

Insurance sales stood at $242.0 million after the first two quarters of 2015, which is comparable to last year's performance. Net savings sales were $630.2 million, compared to $441.2 million in 2014.

Return on shareholder equity was 17.8%, compared to 17.4% as at June 30, 2014. Assets under management and administration grew 14.4% over the previous year to stand at $45.5 billion. The company also maintains excellent financial stability.

"In spite of strong competition, insurance premium volumes and assets under management and administration have continued to grow since the start of the year," said Denis Berthiaume, President and Chief Operating Officer of Desjardins Financial Security. "We're very satisfied with how the State Farm integration is progressing, with their operations already contributing to more than 40% of the increase in our gross insurance premiums for the quarter."


Highlights

(In millions of dollars, unless
otherwise indicated)

YTD 2015

YTD 2014

% change

Q2 2015

Q2 2014

% change

Net income

240.5

194.8

23.5%

160.7

106.9

50.3%

Gross insurance premiums

1,940.6

1,785.1

8.7%

974.6

895.5

8.8%












As at June 30, 2015

As at December 31, 2014

As at June 30, 2014

Return on shareholder equity


17.8%

13.1%

17.4%

Assets under management and administration


$45.5 billion

$41.3 billion

$39.8 billion

 

Business sector results for Q2 2015
For the period from April 1 to June 30, 2015, net income was $160.7 million, compared to the $106.9 million recorded the previous year, representing growth of 50.3%. Individual insurance sales totalled $22.1 million, an increase of $8.7 million or 64.9% over 2014. Group and business insurance sales were up $7.4 million over Q2 2014 to stand at $42.5 million. Sales for plans offered in financial institutions stood at $60.0 million after the first two quarters of 2015. Gross insurance premiums totalled $974.6 million, an increase of $79.1 million, $33.6 million of which was generated by the State Farm network.

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 some 4,000 people and administers $45.5 billion in assets from several cities across the country, including Vancouver, Calgary, Winnipeg, Toronto, Ottawa, Montreal, Quebec City, Lévis, Halifax and St. John's. For more information, visit the company's website at www.desjardinslifeinsurance.com.

 

SOURCE DESJARDINS FINANCIAL SECURITY

For further information: (media inquiries only): Valérie Lamarre, Public Relations, Desjardins Group, 514-281-7275 or 1-866-866-7000, ext. 5557275, valerie.lamarre@desjardins.com, media@desjardins.com

RELATED LINKS
www.desjardinsassurancevie.com

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DESJARDINS FINANCIAL SECURITY

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