Group and business insurance sales up 71.5%
Individual insurance sales up 20.0%
Group retirement savings sales up 17.1%
Gross insurance premiums up 6.5%
Premium growth in all business sectors
Return on shareholder's equity of 21.8%
LÉVIS, QC, May 26, 2011 /CNW Telbec/ - Desjardins Financial Security, a
subsidiary of Desjardins Group specializing in life and health
insurance and retirement savings, recorded net income of $53.4M at the
end of the first quarter of 2011, compared to $51.5M over the same
period in 2010. Gross insurance premiums were up in all business
sectors, standing at $753.8M, for an increase of 6.5% over the first
quarter last year.
On March 31, 2011, insurance sales totalled $136.3M compared to $99.2M
at the same time last year. Sales of savings products stood at $482.7M
for the first quarter of 2011.
The share of the Company's net income attributable to the shareholder,
the Desjardins caisses, totalled $53.0M for the period ended March 31,
2011. Return on shareholder equity was 21.8%, which is one of the best
in the financial services industry.
Desjardins Financial Security's financial stability is excellent, with
assets under management and administration of $27.1B as at March 31,
2011, compared to $24.1B in the first quarter of 2010, for an increase
Commenting on the Company's contribution to Desjardins Group, Ms.
Monique F. Leroux, Chair of the Board, President and CEO of Desjardins
Group, and also CEO of Desjardins Financial Security, said, "Desjardins
Financial Security has once again performed very well and continues to
carve itself a choice place among the leaders of the Canadian financial
Mr. Richard Fortier, President and Chief Operating Officer of Desjardins
Financial Security, said he was very satisfied with the Company's
results at the beginning of 2011. "These results show that our
accelerated growth plan is paying off when it comes to our nationwide
expansion. Close to 50% of our sales now come from outside Quebec.
We're really motivated by our growing presence from coast to coast and
are ready to challenge our competitors with quality products and
services tailored to the needs of today's consumer. We're also working
hard to contribute in a significant way to Desjardins Group's
profitability and to building its reputation across the country."
Results by segment
In group insurance, premiums generated by groups and businesses and by
plans offered in financial institutions like the Desjardins caisses
stood at $610.7M in the first quarter of 2011, compared to $573.0M at
the same time last year. Group and business insurance sales totalled
$79.4M versus $46.3M last year, for an increase of 71.5%.
In individual insurance, gross premiums stood at $143.1M in the first
quarter of 2011, compared to $135.0M at the same time in 2010. Total sales recorded by the financial security advisors assigned to the
Desjardins caisses and by the network of SFL and Desjardins Financial
Security Independent Network financial centres totalled $25.8M ($21.5M
in the first quarter of 2010), for a 20.0% increase.
In savings, total sales stood at $482.7M on March 31, 2011, with
individual savings sales totalling $227.8M and investment fund sales
totalling $196.1M ($174.8M in 2010). In group retirement savings, sales
were up 17.1%, totalling $58.8M.
International Financial Reporting Standards
For its interim consolidated financial statements for the period ended
March 31, 2011, Desjardins Financial Security applied the International
Financial Reporting Standards (IFRS) for the first time. These
standards replaced the Canadian Generally Accepted Accounting
Principles (GAAP) on January 1, 2011. Desjardins Financial Security has
restated its 2010 comparison figures to reflect the new IFRS standards.
About Desjardins Financial Security
Desjardins Financial Security, a subsidiary of Desjardins Group, the
leading cooperative financial group in Canada, specializes in providing
life and 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.
Desjardins Financial Security employs some 4,000 people and administers
$27.1 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
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