August 14, 2018 11:30
Guy Cormier | Photo : Normand Huberdeau
The Desjardins group recorded surplus earnings before member dividends of 677 million dollars ($M) in the second quarter of 2018, an increase of$ 96 Million compared to the corresponding quarter of 2017. However, the surplus earnings, as adjusted decreased$ 34 Million or 5.8 % to$ 548 Million due to “a loss more important in the activities of insurance damage,” says the co-op.
“The performance of our group can continue our mission, to innovate and to fully play our role of leading socio-economic. Innovation is at the heart of our activities. It allows us to improve our services and simplify the life of our members and clients. We are among the first in Canada to offer the possibility of totally online the purchase of a home insurance policy and the renewal mortgage “, stresses the president and chief executive officer of the cooperative movement, Guy Cormier.
Increase in the net income and the dividend
The dividend to members amounted to$ 106 Million, compared to$ 74 Million in the second quarter of the previous year.
Net interest income reached $ 1.16 billion (G$) for the second quarter, an increase of$ 73 Million compared to the same period in 2017. The progress of the activities funded in the area of mortgages, consumer loans and business loans explained these results.
Lower surpluses in damages
The sector of damage insurance has suffered losses more significant in the second quarter of 2018. In effect, the occurrence of two disasters and the impact arising from the sale of Western Financial Group and Western Life Assurance Company, completed on July 1, 2017, have been a result of the net surplus earnings for the sector. These amounted to$ 52 Million, down$ 46 Million (47 %).
For the first half of the year, the surplus adjusted net amounted to$ 78 Million, compared to$ 94 Million in the half year comparative of 2017.
The insurance people has the wind in its sails
However, the sectors of the wealth management and life and health insurance has the wind in its sail. Net surplus earnings generated have reached$ 331 Million in the second quarter of 2018, against$ 189 Million in the same quarter of 2017. The surplus adjusted net amounted to$ 202 Million, an increase of 6.9 %. Desjardins group attributes these increases to ” increase revenue linked to growth in assets under management and by the technical experience of the more favourable “.
The surplus adjusted net are of 408 M$ for the first half of 2018, compared to 332 Million dollars for the first six months of 2017.
Increase in net premiums
The growth of activities in insurance of persons and damage to property and the reinsurance treaty signed in the framework of the acquisition of the canadian businesses of State Farm , lead to a 6% growth in net premiums, which amounted to$2.2 billion.