Individual savings up 45.5%
Gross insurance premium growth of 5.8%
Premium volume up across all business sectors
Net income of $62.2M
Return on shareholder equity of 27.0%
LÉVIS, QC, May 31 /CNW Telbec/ - For the year ending March 31, 2010, Desjardins Financial Security - a subsidiary of Desjardins Group that specializes in life and health insurance and retirement savings - posted a net income of $62.2M, compared to $30.5M over the same period the previous year. This strong performance was due in large part to the strength of business in both insurance and annuities, and the recovery of the markets. Gross insurance premiums were $707.9M, up 5.8% over the first quarter of 2009.
Insurance sales stood at $60.4M, versus $65.6M as at March 31, 2009. In the savings sector, sales rose to $546.7M compared to $357.2M the previous year, for an increase of 53.1%.
For the first quarter of 2010, the share of the Company's net income attributable to the shareholder, the Desjardins caisse network, stood at $62.2M, an increase of $31.9M over 2009. Return on shareholder equity was 27.0%, compared to 17.5% in 2009, and remains one of the best in the financial services industry.
Desjardins Financial Security remains financially sound and continues to enjoy excellent capitalization. Assets under management and administration totalled $23.7B as at March 31, 2010, up 4.2% compared to December 31, 2009.
Monique F. Leroux, Chair of the Board, President and Chief Executive Officer of Desjardins Group, and Chief Executive Officer of Desjardins Financial Security, spoke highly of Desjardins Financial Security and the key role it has played in Desjardins Group's success. "By continuing its solid performance over the first quarter, our life and health insurance subsidiary has consolidated its position as a leader in the Canadian financial services industry and continues to play a major role in Desjardins Group's national expansion."
Richard Fortier, President and Chief Operating Officer, Desjardins Financial Security, is pleased with the year's results so far. "These numbers show that we're on the right path with our strategic directions. They also demonstrate how effective our growth efforts have been. We're on track for our accelerated growth plan in the Canadian market and we plan to make a significant contribution to Desjardins Group's brand recognition and profitability."
Results by segment
In group insurance, gross premiums generated by groups and businesses, and by plans sold in financial institutions like the Desjardins caisses, totalled $425.7M, compared to $402.6M over the same period in 2009. Sales to groups and businesses stood at $46.3M.
In individual insurance, gross premiums totalled $135.0M for the first quarter of 2010, compared to $125.8M for the same period in 2009. Total sales recorded by financial security advisors assigned to the Desjardins caisses and by SFL and Desjardins Financial Security Independent Network financial centres stood at $14.1M, compared to $11.3M for the first quarter of 2009.
The savings sector saw total sales of $546.7M, an increase of $189.5M over the same period in 2009. In individual savings, sales totalled $321.7M, compared to $221.1M for the first three months of 2009. In group retirement savings, sales rose to $50.2M, up $5.8M over 2009.
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 to individuals and groups. Every day, over five million Canadians rely on Desjardins Financial Security to ensure their financial well-being. Desjardins Financial Security employs some 3,800 people and administers over $22.8 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.
SOURCE Desjardins Financial Security
For further information: For further information: (for journalists only): Caroline Phémius, Advisor, Media Relations, Desjardins Group, (514) 281-7000, 1-866-866-7000, ext. 7646, firstname.lastname@example.org