Desjardins earnings up on insurance growth

Montreal-based financial services giant Desjardins Financial Corp. (TSX: DFS) reported net earnings were about double in the second-quarter ending June 30, 2003, primarily on the back of growth in its insurance operations, as well as investment gains.
Overall, net earnings for the quarter were $59.3 million, up from $28.6 million in the same period last year. For the first half of this year, net earnings were $78.6 million, versus $46.5 million in the first half of 2002. Return on equity for the half was 13.7%, against 8.5% in first-half 2002.
In the corporation’s general insurance operations, gross premiums were up 17% for the quarter, and net premiums earned up 14%. General insurance accounted for net earnings of $20.8 in the first six months of this year, versus $13.0 million last year. Despite a growth in claims, the company says its combined ratio was stable as a result of expense reductions. The company further notes that strong results in Quebec offset poor results in other areas of the country. And investment gains were also stronger during the most recent quarter in the general insurance segment.
The corporation also runs life & health insurance, trust services and mutual funds, as well as investment and asset management operations.