- Group and business insurance sales up 93.0%
- Gross insurance premium income up 6.9%
- Net income of $104.2M
- Return on shareholder's equity of 18.3%
LÉVIS, QC, May 21, 2013 /CNW Telbec/ - Desjardins Financial Security (DFS), a subsidiary of Desjardins Group specializing in life insurance, health insurance and retirement savings, posted net income of $104.2M at the end of Q1, up from $48.6M for the same period in 2012. Gross insurance premium income was up 6.9% compared to March 31, 2012, for a total of $844.5M. For the period ended March 31, 2013, insurance sales totalled $115.8M versus $110.7M for the same period in 2012. Savings product sales were $590.2M for the first quarter of 2013.
The improved financial results as at March 31, 2013, compared to the same period last year were due to more stable economic conditions since early 2013, positive claims experience and the revision of certain actuarial assumptions, which had an impact of $29.8M.
The share of net income attributable to the shareholder, Desjardins Financial Corporation, was $99.5M for the period ended March 31, 2013, compared to $45.3M for the same period in 2012. The return on shareholder equity was 18.3% versus 11.0% in 2012.
Desjardins Financial Security enjoys excellent financial stability, with assets under management and administration of $35.4B as at March 31, 2013, versus $33.5B as at March 31, 2012.
"We are pleased to see such positive growth across so many sectors, particularly individual insurance and group and business insurance," said Denis Berthiaume, DFS President and Chief Operating Officer. "It's an excellent sign of the value and importance of our offer. We will continue to do what it takes to meet the diverse needs of our members and clients, by being proactive and innovative."
Business sector results
In group insurance, premiums from groups and businesses and plans offered in financial institutions, including the Desjardins caisses, stood at $688.5M for Q1 versus $636.9M for the same period in 2012 — an increase of 8.1%. Group and business insurance sales volume was $97.3M at the end of Q1 2013, compared to $50.4M for the same period in 2012. Sales for plans offered in financial institutions totalled $36.3M as at March 31, 2013, compared to $35.7M on the same date in 2012.
In individual insurance, premiums totalled $156M for the period ended March 31, 2013, compared to $153M in 2012, for an increase of 2%. Total sales recorded by the financial security advisors assigned to the Desjardins caisses, by the financial centres of the SFL network and by the Desjardins Financial Security Independent Network stood at $12.4M as at March 31, 2013.
In group retirement savings, sales totalled $125.1M; in individual savings, total sales stood at $84.9M; and in mutual funds, sales were $380.2M.
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 security. DFS employs more than 3,700 people and administers over $35.4B 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.desjardinsfinancialsecurity.com.
SOURCE: DESJARDINS FINANCIAL SECURITY
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