Group retirement savings sales clear the $1B mark, up 145.3%
Total savings sales up 20.4%
Insurance premium volume up 7.4%
Net income of $382.0, up 81.4%
Return on shareholder's equity of 21.9%
Assets under administration and management up 6.8% to $36.7B
LÉVIS, QC, March 11, 2014 /CNW Telbec/ - At the close of the fiscal year
ended December 31, 2013, Desjardins Financial Security (DFS), a Desjardins Group subsidiary that specializes in life and
health insurance, and retirement savings, reported growth of 81.4% in
net income, which stood at $382.0M versus $210.6M at the end of fiscal
2012. The Company's improved profitability was driven mainly by
favourable market conditions throughout 2013, experience gains and some
revised actuarial assumptions.
Desjardins Financial Security saw its gross insurance premiums rise by
7.4% in 2013, for a total of $3.5B. Insurance sales, which stood at
$462.8M, were in line with last year's results of $463.5, while the
savings sector posted total sales of $2.6B for growth of 20.4%.
DFS enjoys excellent financial strength
DFS' return on shareholder's equity rose to 21.9% from 10.1% in 2012,
which is one of the best results in the Canadian life and health
insurance industry. As of December 31, 2013, assets under management
and administration were up 6.8%, totalling $36.7B versus $34.3B at the
end of 2012.
In 2013, DFS' primary focus was on the acquisition of State Farm's
Canadian life and health insurance operations. These operations
represent one component of the transaction announced by Desjardins Group on January 15, 2014. The transaction is
expected to be finalized in January 2015, increasing DFS' annual volume
of gross written premiums by approximately $140M and nearly doubling
its individual insurance sales outside Quebec.
"Desjardins Financial Security has experienced remarkable growth and
continues to assert itself in the Canadian market," stated Monique F.
Leroux, Chair of the Board, President and Chief Executive Officer of
Desjardins Group and Chief Executive Officer of Desjardins Financial
Security. "The recently announced addition of State Farm's Canadian
life and health insurance operations will reinforce DFS' fourth place
position in the Canadian market and strengthen our presence across the
country for the benefit of all our members and clients."
"We're extremely pleased with the excellent results our organization has
been posting throughout the year. Desjardins Financial Security's place
among the top life and health insurers in Canada has been confirmed by
the vitality of all our activity sectors, the quality of our offer and
the strength of our teams. They work very hard to help the Company
stand out in a highly competitive field and offer its individual and
business clients with innovative products and services," said DFS
President and Chief Operating Officer, Denis Berthiaume.
2013 fourth quarter results
At the close of the fourth quarter ended December 31, 2013, net income
was up 76.4% totalling $110.4M, compared to $62.6M for the same quarter
in 2012. Insurance premiums totalled $881.9M versus $835.7M in 2012.
Insurance sales stood at $92.6M compared to $84.4M for the last quarter
of 2012. The savings sector had total sales of $539.6M versus $462.6M
for the same period in 2012.
Results by business sector for the fiscal year ended December 31, 2013
The savings sector posted a 20.4% increase with total sales reaching
$2.6B at the end of fiscal 2013, versus $2.2B for the same period in
2012. Individual savings recorded total sales of $303.8M and individual
savings brokerage had sales of $1.3B compared to $1.2B, for a 3.2%
improvement. In group retirement savings, total sales rose by 145.3% to
stand at $1.0B.
In group insurance, the volume of premiums from groups and businesses
and from plans offered through financial institutions, including the
Desjardins caisses, stood at $2.8B compared to $2.6B at the end of
2012. Group and business insurance sales totalled $180.1M versus
$184.1M as at December 31, 2012.
In individual insurance, the volume of premiums totalled $640.2M
compared to $617.6M in 2012. Total sales recorded by DFS financial
security advisors assigned to the Desjardins caisses and by SFL network
and Desjardins Financial Security Independent Network financial centres
stood at $55.1M versus $59.0M as at December 31, 2012.
About Desjardins Financial Security
Desjardins Financial Security (DFS), a subsidiary of Desjardins Group,
the largest 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 DFS to ensure their financial security. DFS employs
almost 4 000 people and administers $36.7B in assets from offices in
several cities across the country, including Vancouver, Calgary,
Winnipeg, Toronto, Ottawa, Montreal, Quebec City, Lévis, Halifax and
St. John's. For more information, visit our website at desjardinslifeinsurance.com.
SOURCE: Desjardins Financial Security
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