Desjardins reports strongest Q1 in company’s history

Desjardins Financial Security has reported the strongest first quarter in the companys history.
The company reported 2007 Q1 net earnings of Cdn$49.8 million, a 65.3% increase from 2006 Q1.
Insurance premium income rose by Cdn$60.1 million in 2007 Q1, to Cdn$580.5 million. That brought total insurance, annuity and other premium income to Cdn$783.7 million for this period.
Insurance sales were up 94.8% in 2007 Q1, up to Cdn$90.8 million.
This excellent quarterly performance is attributable mainly to improved disability claims experience, return on investment and administrative spending growth kept below income growth, the company said in a release.
The visibility we gained when we acquired the Government of Labrador and Newfoundland public service employees group insurance contract in 2006 has helped us sign major new contacts not only outside Quebec, where sales have increased by close to 70% in the first quarter, but also in Quebec, where we have more than tripled our sales over the same period, Richard Fortier, president and COO of Desjardins Financial Security, said in a release. Fortier added he was particularly pleased with the strong group and business insurance sales growth.
Net earning for the group insurance line of business rose to Cdn$31.8 million in 2007 Q1, compared to Cdn$18.9 million in 2006 Q1.
In both the group and business insurance lines, sales more than doubled compared to 2006 Q1; premiums totalled Cdn$339 million in 2007 Q1. The company attributes these results to the acquisition of new groups of 1,000 or more members, in addition to the natural growth of existing companies.