Desjardins Financial Security increases insurance sales by 12.9% and posts net income of $78.3 million for the first half of 2012

Highlights :

Insurance sales: Up 12.9%
Individual insurance sales: Up 11.8%
Group and business insurance sales: Up 8.8%
Gross insurance premium income: Up 4.4%
Net income: $78.3 million
Return on shareholder equity: 11.6%
Total assets under management and administration: Up 20.8%

LÉVIS, QC, Aug. 21, 2012 /CNW Telbec/ - Desjardins Financial Security (DFS) reported a net income of $78.3 million for the first six months of 2012, compared with $112.2 million for the same period in 2011. DFS, a subsidiary of Desjardins Group specializing in life and health insurance and retirement savings products, also posted a 4.4% increase in gross insurance premium income to $1.582 billion, compared to $1.515 billion for the first half of 2011.

As at June 30, 2012, insurance sales were up 12.9% to $268.3 million, compared to $237.7 million for the same period in 2011. Sales of savings products reached $1.3 billion, compared to $1.1 billion for the first half of 2011. The share of net income attributable to the shareholder — the Desjardins caisses — totalled $68.9 million for the period ending June 30, 2012. Return on shareholder equity was 11.6%. Market volatility, low interest rates and deteriorating long-term disability claims experience are the main reasons for the change over June 30, 2011.

Desjardins Financial Security's financial stability is excellent, with assets under management and administration of $33.1 billion as at June 30, 2012, compared with $27.4 billion for the same period in 2011, representing an increase of 20.8%.

2012 Q2 results

Net income for the period from April 1 to June 30, 2012 was $30.5 million, compared with $58.8 million for Q2 2011. Insurance sales totalled $158.2 million, compared with $107.0 million in 2011. Gross insurance premiums stood at $791.7 million, up $30.9 million over Q2 2011. Savings sales totalled $582.3 million.

"Our life and health insurance company once again posted growth in insurance sales, for both the individual and group and business lines," said Denis Berthiaume, President and Chief Operating Officer of Desjardins Financial Security. "As an insurer that people trust, we will stay focused on national growth and do what it takes to make sure we can continue to offer products and services that fully meet our clients' changing needs."

Results by sector

In group insurance, the volume of premiums from groups, businesses and plans offered in financial institutions, including the Desjardins caisses, stood at $1.282 billion for the first half of 2012, compared with $1.233 billion for the same period in 2011. Group and business insurance sales totalled $128.0 million, compared with $117.6 million as at June 30, 2011, for an increase of 8.8%.

In individual insurance, gross premium volume totalled $299.9 million in the first half of 2012, compared with $281.8 million for the same period in 2011. Total sales recorded by the financial security advisors assigned to Desjardins caisses and by the SFL network and Desjardins Financial Security Independent Network financial centres stood at $45.4 million, compared to $40.6 million for the first half of 2011, for an increase of 11.8%.

In savings, total sales stood at $1.3 billion, compared to $1.1 billion as at June 30, 2011. Total sales in individual savings reached $378.0 million. Mutual fund sales totalled $661.7 million, compared to $320.8 million the previous year. This 106.3% increase can be attributed to sales by MGI Financial Inc., which was acquired in the last quarter of 2011. In group retirement savings, sales were $286.8 million.

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 over 3,600 people and administers $33.1 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 the website at www.desjardinsfinancialsecurity.com.

SOURCE: DESJARDINS FINANCIAL SECURITY

(for journalists only):
Sarah Twomey
Media Relations Advisor
Desjardins Group
416-926-2700 or 1-877-906-5551, ext. 2015
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