- Gross insurance premium income up 8.1%
- Total savings sales up 21.4%
- Net income of $271.6M
- Return on shareholder's equity of 19.1%
- Assets under management and administration of $36.2B
LÉVIS, QC, Nov. 21, 2013 /CNW Telbec/ - For the nine-month period ended September 30, 2013, Desjardins Financial Security, a subsidiary of Desjardins Group specializing in life insurance, health insurance and retirement savings products, recorded a net income of $271.6M, compared to $148.0M for the same period in 2012. This increase in profitability is largely attributable to favourable market conditions since early 2013, a positive claims experience and the revision of certain actuarial assumptions. Gross insurance premiums are up 8.1%, for a total of $2.6B.
Insurance sales totalled $370.3M versus $379.1M for the same period in 2012. Savings sales were up 21.4%, for a total of $2.1B, compared to $1.7B as at September 30, 2012.
The share of net income attributable to the shareholder, the Desjardins caisses, was $253.9M for the period ended September 30, 2013. This share totalled $131.4M for the same period in 2012. Return on shareholder's equity was 19.1% versus 10.7% in 2012.
Desjardins Financial Security has excellent financial stability with assets under management and administration of $36.2B as at September 30, 2013, compared to $34.9B at the end of the first nine months of 2012.
The Senior Vice-President and General Manager of Wealth Management and Life and Health Insurance for Desjardins Group and President and Chief Operating Officer of Desjardins Financial Security, Denis Berthiaume, stated that: "Our results confirm that we are on the right track with our customer approach. We're providing a solid product offer that is meeting the needs of a wide range of clients across the country. As one of Canada's leading providers of life and health insurance and financial services, we are committed to growing the Desjardins brand and improving our profitability."
Results for Q3 2013
At the end of the third quarter of 2013, net income was $79.9M compared to $70.7M for the same quarter in 2012 (13.0% increase). Insurance sales totalled $97.6M versus $111.1M in Q3 2012. Savings product sales stood at $495.1M, compared to $394.8M for the same period in 2012 (25.4% increase).
Results by business segment for the first nine months of 2013
In group insurance, the volume of premiums from groups, businesses and plans offered in financial institutions including the Desjardins caisses stood at $2.1B as at September 30, 2013, versus $1.9B for the same period in 2012. Group and business insurance sales totalled $158.0M.
In individual insurance, premiums for the first nine months of 2013 totalled $471.4M, compared to $453.0M for the same period in 2012. Total sales recorded by the financial security advisors assigned to Desjardins caisses and by SFL network and Desjardins Financial Security Independent Network financial centres stood at $40.8M.
In savings, total sales were up 21.4%, standing at $2.1B as at September 30, 2013, compared to $1.7B for the same period in 2012. Total sales in individual savings stood at $223.1M. Individual savings brokerage activity sales totalled $969.2M versus $935.0M (3.7% increase). In group retirement savings, sales totalled $897.8M versus $338.1M as at September 30, 2012 (165.5% increase).
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 more than 3,700 people and administers $36.2B 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 www.desjardinslifeinsurance.com.
SOURCE: Desjardins Financial Security
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