Desjardins Financial Security, a subsidiary of Desjardins Group that specializes in life and health insurance, has collected $301.3 million in net income in 2015 so far. That compares to $239.4 million for the same period in 2014.
Gross insurance premiums grew to approximately $2.9 million, of which $102.3 million was generated by State Farm’s Canadian operations. This represents an increase of $218.6 million, or 8.1%, over the same period last year.
Contributing factors to the increase include improved claims experiences for certain products, particularly in individual insurance and savings. There are also more favourable investment opportunities for investors.
Overall, insurance sales stood at $342.1 million for the first nine months of the year, versus $365.5 million in 2014. Net savings sales were at $642.2 million, compared to $473.12 million in 2014.
The return on shareholder’s equity for the year was 15.5%, versus 14.8% in 2014. And, assets under management and administration came in at $45.1 billion, up 11.9%.
“Despite market pressures for the period, net income was up significantly,” says Denis Berthiaume, president and COO. “Gross premiums were also up, thanks to State Farm’s Canadian operations, which represent more than 45% of the increase for the quarter.”
Results by business sector for Q3
For Q3, net income was $60.9 million, compared to $44.6 million for the same period the previous year—an increase of 36.5%.
Individual insurance sales totaled $18.5 million, up $4.2 million over last year, while group and business insurance sales were at $26.3 million and net sales for group retirement savings were at $29.3 million.
Sales for plans offered in financial institutions stood at $55.3 million in the third quarter of 2015. Gross insurance premiums totaled $975.2 million, up $63.1 million over 2014.