Desjardins Financial Security's results as at March 31, 2012: a 152.6% increase in group retirement savings sales and a 19.5% increase in individual insurance sales Français
- Group retirement savings sales: up 152.6%
- Individual insurance sales: up 19.5%
- Insurance sales from plans offered in financial institutions: up 16.3%
- Gross insurance premium income: up 4.8%
- Net income: $47.8 M
- Return on shareholder equity: 14.7%
LÉVIS, QC, May 28, 2012 /CNW Telbec/ - Desjardins Financial Security (DFS), a Desjardins Group subsidiary specializing in life and health insurance and retirement savings, posted net income of $47.8 million for the first quarter of 2012, compared to $53.4 million for the same period last year. Gross insurance premium income totalled $789.9 million, up 4.8% from March 31, 2011. Insurance sales amounted to $110.1 million, also as at March 31, 2012. Savings product sales for Q1 2012 totalled $540.1 million, representing an increase of 11.9% over Q1 2011 sales.
The share of net income attributable to shareholders, the Desjardins caisses, totalled $44.4 million for the period ending March 31, 2012. Return on shareholder equity was 14.7%.
Desjardins Financial Security is financially very solid, with assets under management and administration totalling $33.0 billion as at March 31, 2012, compared with $27.1 billion on the same date last year.
"Our life and health insurance company has delivered a solid financial performance in the first quarter of the year, due in part to an impressive growth in group retirement savings sales," said Monique F. Leroux, Chair of the Board, President and CEO of Desjardins Group, and CEO of Desjardins Financial Security. "DFS continues to be recognized as one of Canada's leading providers of life and health insurance and financial services."
Denis Berthiaume, President and Chief Operating Officer of Desjardins Financial Security, was also pleased with the company's results. "Our teams continue to work very hard towards our expansion across Canada. Our Group and Business Insurance business line recently celebrated the milestone of reaching $2 billion in in-force premiums. This, along with the growth in individual insurance sales, is a clear indication of our teams' excellent work and the quality of our service offer. We have had a good start to the year and will continue to offer products designed to meet our clients' needs, and to use our dynamic management style to meet the needs of our growing clientele across the country."
Results by sector
In group insurance, premiums from groups and businesses and from plans offered in financial institutions, including the Desjardins caisses, stood at $636.9 million for Q1 2012, compared to $610.7 million as at March 31, 2011, for an increase of 4.3%. Insurance sales from groups and businesses totalled $50.4 million. Sales from plans offered in financial institutions were $34.2 million as at March 31, 2012, up 16.3%.
In individual insurance, premiums totalled $152.9 million as at March 31, 2012, compared with $143.1 million for the same period in 2011, for an increase of 6.9%. 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 were up 19.5% to stand at $24.5 million, compared with $20.5 million as at March 31, 2011.
Group retirement savings sales were up 152.6%, standing at $148.5 million compared with $58.8 million as at March 31, 2011. Individual savings sales and mutual fund sales stood at $209.2 million and $182.4 million respectively, compared with $227.8 million and $196.2 million as at March 31, 2011.
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. The company employs 3,600 people and administers $33.0 billion 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 www.desjardinsfinancialsecurity.com.
Source (for journalists only):
Sarah Twomey
Media Relations Advisor
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