- Gross insurance premium income up 5.3%
- Individual savings sales up 19.6%
- Return on shareholder's equity of 14.2%
LÉVIS, QC, May 27, 2014 /CNW Telbec/ - Desjardins Financial Security (DFS), a subsidiary of Desjardins Group specializing in life insurance, health insurance and retirement savings, posted a net income for Q1 2014 of $87.9M compared to $104.2M for the same period last year. This is a solid result considering that the company's Q1 2013 performance was boosted by the positive underwriting experience of a number of products and adjustments made to actuarial assumptions.
For the period ended March 31, 2014, gross insurance premium income was up 5.3% to total $889.6M. Insurance sales totalled $139.7M. Savings product sales were up 5.0%, standing at $619.6M.
The share of net income attributable to the shareholder, Desjardins Financial Corporation, was $82.2M. The return on shareholder's equity was 14.2% versus 18.3% for the same period in 2013. DFS remains on very sound financial footing, with assets under management and administration up 9.3%, for a total of $38.8B.
"Thanks to these results, 2014 is starting off very well. The growth we have achieved in a number of sectors is an excellent indication that we are on the right track with our business directions and decisions," said Denis Berthiaume, President and Chief Operating Officer of DFS. We will continue to be there for our clients, from coast to coast, with a solid and innovative product line that meets all their financial needs."
Q1 2014 business sector results
In group insurance, premiums from groups and businesses and plans sold in financial institutions, including the Desjardins caisses, stood at $726.1M versus $688.5M the year before, for an increase of 5.5%. Group and business insurance sales volume was $83.2M at the end of Q1 2014. Sales for plans offered in financial institutions totalled $34.5M.
In individual insurance, premiums totalled $163.4M, up 4.8% over the $156.0M posted for the same period in 2013. Total sales recorded by the financial security advisors assigned to the Desjardins caisses, by the SFL network and by Desjardins Financial Security Independent Network stood at $11.9M.
Overall savings sales rose by 5.0%. In individual savings, sales were up 19.6% for a total of $101.5M. Individual savings brokerage activity sales totalled $405.2M, for an increase of 6.6%. Group retirement savings sales totalled $112.9M.
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 almost 4,000 people and administers $38.8B 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 desjardinslifeinsurance.com
SOURCE: Desjardins Financial Security
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