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Desjardins Financial Sustains Profit, Reports First Half Net Of $83.3m

Has reported continued growth in insurance premium income, which stood at $1,344.9 million

Desjardins Financial Security has maintained its profitability at the end of the first six months of 2009, with a net income of $83.3 million.

The Desjardins Group subsidiary, specialising in life and health insurance and retirement savings, has also reported continued growth in insurance premium income, which stood at $1.34 billion for a 3.3% improvement over the first half of 2008.

Quebec posted an increase of $14.1 million (1.6%) while other provinces a significantly higher increase of $28.4 million for a 6.7% improvement. Insurance sales were $116.3 million and similar to those in the first half of 2008. Retirement savings sales were also up, standing at $799.5 million compared to $527.4 million in the same period a year earlier.

For the period of April 1 to June 30, 2009, the net income totalled $52.8 million as compared to $59.3 million in 2008. Insurance sales amounted to $51.2 million versus $57.5 million for the same period last year.

The company’s gross insurance premiums were $675.7 million, up $21.6 million over the second quarter of 2008, with Quebec recording a 1.5% increase and a 7.0% increase in other provinces. Savings sales totalled $444.9 million, up $90.3 million over the first quarter of 2009.

Monique Leroux, president and chief executive officer of Desjardins Group and CEO of Desjardins Financial Security, said: “Our life and health insurance subsidiary is recording good business growth and substantial profitability in economic conditions that remain challenging and call for prudence and vigilance. The company’s contribution to the overall performance of Desjardins Group remains significant.”