- Gross insurance premiums up 7.9%
- Net income of $191.7M
- Return on shareholder's equity of 19.0%
- Assets under management and administration up 5.4%
LÉVIS, QC, Aug. 22, 2013 /CNW Telbec/ - Desjardins Financial Security (DFS) reported net income of $191.7M for the first six months of 2013, compared to $77.2M for the same period in 2012. DFS, a subsidiary of Desjardins Group specializing in life insurance, health insurance and retirement savings products, also posted a 7.9% increase in gross insurance premium income, which totalled $1.7B, compared with $1.6B in the first half of 2012.
For the period ended June 30, 2013, insurance sales totalled $272.7M, compared to $268.0M for the same period in 2012. Savings product sales were up 20.2%, standing at $1.6B, compared with $1.3B for the first six months of 2012.
The share of net income attributable to the shareholder, the Desjardins caisses, was $176.5M for the period ended June 30, 2013. This share totalled $67.9M for the same period in 2012. Return on shareholder's equity was 19.0%, compared with 8.4% in 2012.
The improved financial results as at June 30, 2013, compared to the same period last year, were due to more stable economic conditions in 2013, a positive claims experience and the revision of certain actuarial assumptions.
DFS's financial stability remains excellent, with assets under management and administration of $35.3B as at June 30, 2013, compared with last year's $33.5B.
"We are very pleased with our performance in the first half of the year. Our results confirm the quality of our offer and the value of our services," said Denis Berthiaume, DFS President and Chief Operating Officer. "They inspire us to remain steadfast in our dedication to our members and clients by finding creative ways to meet their needs, while maintaining our financial stability."
Results for Q2 2013
Net income for the period from April 1 to June 30, 2013 was $87.5M, compared to $28.6M in Q2 2012. Insurance sales totalled $116.8M in Q2 2013. Gross insurance premiums stood at $861.3M, up 8.8% over Q2 2012. Savings product sales totalled $1.0B, compared with $582.3M in Q2 2012.
Half-year results by activity sector
In group insurance, the volume of premiums from groups and businesses and plans offered in financial institutions, including the Desjardins caisses, stood at $1.4B for the first six months of 2013, compared with $1.3B for the same period in 2012. Group and business insurance sales totalled $129.0M, compared with $128.0M as at June 30, 2012.
In individual insurance, gross premium volume totalled $312.0M for the first six months of 2013, compared with $299.9M 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 $28.1M, compared to $30.6M for the first half of 2012.
In savings, total sales amounted to $1.6B, compared to $1.3B as at June 30, 2012. Total sales in individual savings stood at $148.6M. Mutual funds sales totalled $679.0M, compared with $661.7M the previous year. In group retirement savings, sales were up 171.4%, totalling $767.3M, compared to $282.7M as at June 30, 2012.
About Desjardins Financial Security
Desjardins Financial Security (DFS), a subsidiary of Desjardins Group, the leading 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 over $35.3B 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
(for journalists only):
Sarah Twomey
Media Relations Advisor
Desjardins Group
416-926-2700 or 1-877-906-5551, ext. 2015
[email protected]
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