Desjardins Financial Security results:
Growth in insurance premiums and investment sales
• $2,982.7 million in gross insurance premiums
• Gross investment sales up significantly
Lévis (Qc), November 15, 2016 - Desjardins Financial Security (DFS) has released results for the first nine months of 2016. DFS is a subsidiary of Desjardins Group that specializes in life insurance, health insurance and retirement savings. The company posted an increase in gross insurance premiums for the period, standing at $2,982.7 million, up 2.3% over 2015. Insurance sales totalled $360.3 million for the first three quarters of the year ($344.6 million in 2015). Net insurance sales stood at $4,582.1 million ($905.1 million in 2015).
As at September 30, 2016, net income was $353.2 million, compared to $301.3 million in 2015. The January 1, 2016 acquisition of two companies, Desjardins Investments Inc. and Desjardins Investment Product Operations Inc., accounts for a $62.7 million increase in net income over 2015. Other contributors include strong returns on investments and strict control of expenses. Furthermore, 2015 results had been positively affected by Q2 adjustments to actuarial assumptions due to the acquisition of State Farm's Canadian life and health insurance operations.
The acquisition of the two companies also contributed to an increase in assets under management and administration, which grew to $96.9 billion as at September 30, 2016, compared to $45.7 billion as at December 31, 2015. Return on equity was 16.7%, compared to 16.8% in 2015. The company also maintains excellent financial stability.
"The diversity of our product line remains our biggest strength in the current high-competition market. Based on our excellent investment sales, it's clear that our disciplined approach is trusted across the country, by business and individual investors alike," said Denis Berthiaume, DFS President and Chief Operating Officer. "I'd also like to welcome Gregory Chrispin, who will be taking over as head of this great company, and under whose leadership DFS will continue to grow and remain a top choice for Canadians."
Results by business sector as at September 30, 2016
By the end of the first three quarters of the year, gross investment sales have grown significantly, ending the period at $10.4 billion, which is an $8.8 billion (or 558.0%) increase over the same period last year. This growth is attributable to a large group retirement savings contract signed in Q1 2016, and to sales generated by one of the new subsidiaries, Desjardins Investments Inc.
Group and business insurance sales grew to $153.5 million ($131.5 million in 2015). Sales for plans offered in financial institutions, including the Desjardins caisses, ended the quarter at $152.6 million ($154.5 million in 2015). In individual insurance, sales stood at $54.2 million ($58.6 million in 2015).
About Desjardins Financial Security
Desjardins Financial Security is a subsidiary of Desjardins Group, the leading cooperative financial group in Canada, specializing in life insurance, health insurance and retirement savings products for individuals and groups. Every day, over five million Canadians rely on DFS to ensure their financial security. The company employs some 4,700 people and administers $96.9 billion in assets from several cities across the country, including Vancouver, Calgary, Winnipeg, Toronto, Ottawa, Montreal, Quebec City, Lévis, Halifax and St. John's. For more information, visit the company's website at www.desjardinslifeinsurance.com