Desjardins Financial Security pursues its expansion across Canada with excellent financial stability, recording net income of $156.2M over the first nine months of 2012

Highlights

• Insurance sales up 8.9%
• Individual insurance sales up 12.9%
• Insurance premium volume up 4.4%
• Net income of $156.2M
• Return on shareholder equity of 11.0%
• Assets under management and administration up 23.3%
  
  

LÉVIS, QC, Nov. 21, 2012 /CNW Telbec/ - Over the nine-month period ending September 30, 2012, Desjardins Financial Security, a subsidiary of Desjardins Group, specializing in life insurance, health insurance and retirement savings, recorded a 4.4% increase in insurance premiums for a total of $2.4B. The increase is attributable to higher business volume in all insurance sectors. Insurance sales stood at $381.3M, compared to $350.1M over the same period a year ago, an increase of 8.9%. In savings, sales totalled $1.7B versus $1.4B as at September 30, 2011. The company's net income stood at $156.2M compared to $177.4M at the same time last year.

The difference is essentially due to financial market volatility, low interest rates and a change in the accounting method used for the valuation of investment property. The company applied the fair value method instead of the amortized cost method used previously. The change in accounting method was applied retroactively.

The share of net income attributable to shareholders, the Desjardins caisses, totalled $138.8M for the period ending September 30, 2012 versus $169.5M for the same period last year. Return on shareholder equity was 11.0% compared to 16.3%.

Desjardins Financial Security's financial stability is excellent, with assets under management and administration of $34.9B as at September 30, 2012 versus $28.3B at the end of the first nine months of 2011.

Results for Q3 2012

Net income for the period from July 1 to September 30, 2012 was $73.5M compared to $42.1M recorded over the same quarter in 2011, an increase of 74.7%. At $113.2M, insurance sales were similar to last year's results for the same quarter ($112.4M). In savings, total sales stood at $380.6M versus $307.6M in Q3 2011, an increase of 23.7%. Market volatility and a good claims experience in individual insurance and savings are mainly responsible for the difference in the third quarter of 2012 compared to the same quarter last year.

"We are very happy with these results. They reflect the quality of our offer and our rigorous management practices, and also confirms our steady growth since the beginning of the year," said Denis Berthiaume, President and COO of Desjardins Financial Security. "The recent signing of major national group accounts shows how dynamic our development has been in Quebec and the rest of country. We plan to do everything necessary to maintain this momentum," added Berthiaume.

Results by business sector for the first nine months of 2012

In group insurance, the volume of premiums from groups and businesses and plans offered through financial institutions, including the Desjardins caisses, stood at $1,931.5M as at September 30, 2012, compared to $1,854.5M for the same period in 2011. Insurance sales totalled $311.3M versus $288.1M a year ago at this time.

In individual insurance, gross premium volume for the first nine months of 2012 totalled $453M versus $429.5M for the same period in 2011. 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 $70M compared to $62M in the third quarter of 2011, an increase of 12.9%.

In savings, total sales amounted to $1.7B as at September 30, 2012 versus $1.4B for the corresponding period in 2011. Individual savings sales totalled $441.7M while mutual fund sales stood at $920.8M versus $420.8M in 2011, for an increase of $118.8%. This increase is due mainly to sales recorded by MGI Financial Inc., a subsidiary acquired in the last quarter of 2011. In group retirement savings, sales totalled $344.6M as at September 30, 2012.

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 $34.9 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
[email protected]
[email protected]