Individual savings sales up 45%
Total savings sales up 39.3%
insurance sales up 22.2%
Gross insurance premium volume up 5.2%
income of $120.4 million
Return on shareholder equity of 26.7%
LÉVIS, QC, Aug. 31 /CNW Telbec/ - At the end of the first
six months of 2010, Desjardins Financial Security's profitability was up
44.5% and its net income stood at $120.4 million, compared to $83.3
million over the same period last year. This excellent financial
performance is in large part due to good claims experience in both
insurance and annuities. The Company, a subsidiary of Desjardins Group
that specializes in life and health insurance and retirement savings,
also continues to record growth in gross insurance premium income, which
stood at $1,414.6 million, for an increase of 5.2% compared to the first
six months of 2009.
Insurance sales totalled $110.3 million versus $116.8 million in 2009.
Savings product sales reached $1,118.6 million, compared to $803.0
million over the same period a year ago, for an increase of 39.3%.
The share of the Company's net income attributable to the shareholder,
the Desjardins caisses, stood at $121.5 million, for an increase of
$39.4 million. Return on shareholder equity was 26.7%, compared to 22.9%
in 2009, one of the best in the financial services industry.
Desjardins Financial Security's financial stability is excellent, with
assets under management and administration of $23.8 billion as at June
30, 2010, compared to $20.5 billion over the same period in 2009.
Second quarter results
For the period of April 1 to June 30, 2010, net income stood at $58.2
million, compared to $52.8 million in 2009. Insurance sales totalled
$49.9 million versus $51.2 million for the same period a year earlier.
Insurance premiums were $706.7 million, up $31.0 million over the second
quarter of 2009. Savings product sales totalled $571.9 million, for an
increase of $126.1 million over the second quarter a year ago. This
growth is due primarily to individual savings product sales.
Ms. Monique F. Leroux, Chair of the Board, President and Chief Executive
Officer of Desjardins Group, and Chief Executive Officer of Desjardins
Financial Security, was pleased with the Company's performance,
commenting that, "Desjardins Financial Security continues to make great
business strides while maintaining excellent profitability and making a
significant contribution to the overall performance of Desjardins Group."
Mr. Richard Fortier, President and Chief Operating Officer of Desjardins
Financial Security, looking back proudly on what the Company had
accomplished since the beginning of the year, commented that, "These
results prove that Desjardins Financial Security has the strength, the
creativity and the products to carve out a substantial share of the life
and health insurance market. Our accomplishments show that when it comes
to insurance and financial services, we rank among the top firms."
In group insurance, gross premiums from groups and businesses and from
plans offered in financial institutions, including the Desjardins
caisses, stood at $1,148.1 million as at June 30, 2010, for an increase
of $52.4 million over the same period a year earlier. Sales totalled
In individual insurance, gross premiums stood at $266.5 million for the
first half of the year, compared to $249.2 million for the same period
in 2009. 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
stood at $27.5 million, compared to $22.5 million over the same period a
In savings, total sales amounted to $1,118.6 million. Individual savings
sales rose 45% over the first six months of 2010, totalling $674.6
million, compared to $465.5 million over the same period a year ago.
Group retirement savings sales stood at $162.9 million.
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 more than 3,800 people and
administers over $23.8 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 Web site at href="http://www.desjardinsfinancialsecurity.com/">www.desjardinsfinancialsecurity.com.
SOURCE Desjardins Financial Security
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