Desjardins Q1 results “very good”

Desjardins Financial Security has begun its year on a strong note reporting a net income of CD$30.4 million for the first quarter of 2006, compared to CD$31.9 million for the same period last year.
These results, according to Desjardins, are “very good” in light of the deterioration in long-term disability claims the Company experienced during the quarter.
Income from insurance and annuity premiums, investment income and other income increased 14.1% from CD$732.9 million to CD$836.2 million over 2005. Also, the Company reports that its insurance sales surpassed the CD$50-million mark, up CD$8.1 million over the same quarter last year.
Desjardins say its assets under management increased by CD$2.6 billion from the Q1 2005 to reach CD$18.0 billion in Q1 2006.
Desardins posted CD$186 million in surplus earnings before patronage dividends to members. The Company’s share of the net income attributable to the ultimate shareholders, i.e. the Desjardins caisses, is CD$28.3 million, with a return on shareholder equity of 16.3%.
President and chief operating officer Franois Joly says one of the Company’s priorities of its new 2006-2008 strategic plan is to double our market share outside Qubec.
For the first three months of 2006, net income for Desjardins Group Insurance line of business, which includes insurance plans for groups and businesses as well as group plans offered in financial institutions (including the Desjardins caisses) amounted to CD$18.9 million.
Group and Business Insurance recorded a net increase in sales, which totaled CD$42.0 million compared to CD$33.7 million in 2005.
Last year’s break into the group insurance market outside Qubec continued in Q1, with sales increasing by 27.4% over last year.
Premiums of group insurance were up CD$19.4 million to total CD$289.8 million. These results, according to Desjardins, are due to the enrolment of new groups, nine of which have premiums in excess of CD$1 million, and to the natural growth of existing groups.
Premiums associated with plans offered through financial institutions, particularly loan insurance, amounted to CD$111.9 million, a slight increase over last year. Lastly, at CD$6.9 million, direct insurance premiums were 18% higher than Q1 2005.
In its individual insurance line of business, the Company’s net income rose to CD$10.4 million, compared to CD$6.9 million for Q1 2005. Gross premiums individual insurance amounted to CD$111.8 million, an increase of CD$5.0 million. These results, according to Desjardins, are partly due to the growth of the Vision portfolio and the increase in the average premium for all coverages sold through life insurance representatives assigned to the caisses.
The Company says its sales remained relatively unchanged from last year at CD$8.3 million.