Individual savings sales up 202.3% ($485.4 million)
44.9% increase in group retirement sales
Group insurance sales growth of 8.5%
Record level of insurance premium volume-$2 billion for the period
Net income of $150.9 million
Return on shareholder's equity of 26.3%
LÉVIS, QC, Nov. 30 /CNW Telbec/ - Desjardins Financial Security recorded a net income of $150.9 million for the period ending September 30, 2009, compared to $112 million for the same period in 2008. The Company, a subsidiary of Desjardins Group, specializing in life and health insurance and retirement savings, once again posted growth in insurance premium income which stood at a record level of $2.0 billion ($2,027.3 million) after only three quarters, an increase of $40.3 million (2.0%) compared to the same period in 2008. In Quebec, insurance premiums grew by $18.0 million (1.4%) while growth in the other provinces was higher at $22.3 million (3.4%).
Insurance sales totalled $159.9 million, up $12.2 million over the same period in 2008. Savings sales stood at $1,260.3 million, up $415.5 million compared to 2008. This growth is the result of strong sales of segregated funds and group retirement savings products.
The share of net income attributable to the shareholder, the Desjardins caisses, stood at $146.5 million, up $36.7 million. Return on shareholder's equity was 26.3% and is one of the best in the financial services industry. Assets under management and administration stood at $21.9 billion.
Desjardins Financial Security remains very financially strong and has an excellent capitalization ratio.
For the period from July 1 to September 30, 2009, net income totalled $67.6 million compared to $16.4 million for the same period a year ago. Insurance sales stood at $43.6 million, up from $31.3 million in 2008. Gross insurance premiums were $682.4 million. Savings sales totalled $460.8 million, up $15.9 million compared to the second quarter of 2009.
Commenting on these results, Ms. Monique F. Leroux, President and CEO of Desjardins Group, also CEO of Desjardins Financial Security, was pleased to note the Company's continued contribution to the overall performance of Canada's largest cooperative financial group. "These results demonstrate Desjardins Financial Security's ability to achieve an increasingly prominent position among the leading Canadian life and health insurance companies. As a result, the Company is contributing not only to Desjardins Group's profitability but also to its development across the country."
Desjardins Financial Security's Chief Operating Officer, Mr. Richard Fortier, reminds us that this growth is the result of the Company's commitment to its action plan and firm management style. "Our results show how effective we've been in working to achieve the objectives of our accelerated growth plan. The management approach we've adopted has also continued to pay off."
Results by sector
In group insurance, gross premium volume from groups, businesses and plans offered through financial institutions, including the Desjardins caisses, stood at $1,650.5 million as of September 30, 2009, for an increase of $26.6 million over the same period a year earlier. Sales volume for group and business insurance was $126.7 million, up $9.9 million.
In individual insurance, total sales recorded by the financial security representatives assigned to the Desjardins caisses and by the Desjardins Financial Security Independent Network and SFL financial centre network stood at $33.2 million, compared to $30.9 million in 2008, an increase of 7.4%. Gross premiums were $376.8 million, $13.7 million higher than in 2008.
Sales of group retirement savings products totalled $309.4 million, up 44.9% compared to September 30, 2008, while individual savings sales were $725.4 million, a volume three times higher than that of 2008. Sales of guaranteed investment funds stood at a record level of $640.6 million, while mutual fund sales totalled $225.5 million, down 42.4% compared to September 30, 2008.
About Desjardins Financial Security
Desjardins Financial Security, a subsidiary of Desjardins Group, the largest cooperative financial group in Canada, specializes in life insurance, health insurance and retirement savings products for individuals and groups. Every day, over five million Canadians rely on Desjardins Financial Security to ensure their financial security. The Company employs 3,800 people and administers over $21.9 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 www.desjardinsfinancialsecurity.com
SOURCE Desjardins Financial Security
For further information: For further information: Sarah Twomey, Desjardins Financial Security, (416) 926-2700, ext. 2015; Toll free: 1-877-906-5551, ext. 2015, email@example.com; Virtual newsroom: http://www.desjardinsfinancialsecurity.com/press