Desjardins Group posts Q3 surplus earnings of $570M

Desjardins Group has reported surplus earnings of $570 million for the third quarter ended Sept. 30, $188 million less than the same period last year.

One reason for the year-over-year decrease, the company says in a release, is the July 2017 sale of Western Financial Group Inc. and Western Life Assurance Company. Those business units were sold for approximately $775 million to Trimont Financial of property and casualty insurer Wawanesa Mutual.

Not accounting for that sale, Desjardins says, year-over-year adjusted surplus earnings rose $70 million, or 14%, in Q3 2018. Out of its total surplus earnings, it adds, the amount returned to members and the community was $116 million.

The company attributes its adjusted earnings growth to “good performance posted by the caisse network,” as well as to “a more favourable claims experience” for its wealth management and life and health insurance segment.

In a breakdown, Desjardins shows that its personal and business services segment earned the most at $369 million, compared to $304 million a year earlier. Next up was the wealth management and life and health insurance segment at $174 million, an increase from $121 million.

The property and casualty insurance unit earned $70 million, down from $318 million if the 2017 sale to Trimont Financial is considered, but up $7 million if adjusted.

For the wealth management and life and health insurance unit, in particular, growth was boosted by  growth in assets under management, the release says.

As of Sept. 30, Desjardins Group’s total assets were $295.3 billion, up 7.3% from the end of 2017.

It had $395 billion in assets under administration and almost $59 billion in assets under management, some of which may also be included in AUA if the assets are administered by the company.

Product news

Desjardins Investments said Wednesday that it’s closing two funds: the Desjardins IBrix Canadian Equity Focus Fund and Desjardins IBrix Global Equity Focus Fund.

The funds will be closed on or about March 8, a release says. The company will suspend additional investment starting Nov. 15, outside of investments made by periodic payments.

The closures are the result of low net asset value and too few unitholders.

Staff

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