28 February 2019 13:30
Guy Cormier | Photo : Normand Huberdeau
The more important number of claims was the result of the results in damage insurance, of Desjardins group in the year 2018 and the fourth quarter. In effect, the segment’s net surplus earnings amounted to 173 million us dollars (M$) for the year, compared with$ 443 Million in 2017. The results of 2017, which include the gain, net of fees related to the sale of Western Financial Group. In spite of everything, the surplus adjusted net are lower of$ 32 Million compared to the previous year.
In the fourth quarter, the segment’s net surplus earnings amounted to$ 25 Million, against$ 48 Million in the corresponding quarter of 2017. “The claims more significant when compared to the previous period largely explains the decrease of the surplus earnings of the comparative period, offset by the decrease of contingent consideration payable in connection with the acquisition of the canadian businesses of State Farm as well as the increase in investment income,” says Desjardins.
Rising surplus in insurance of persons
For the sector of the wealth management and life and health insurance, the situation is quite different. For the year 2018, Desjardins group recorded surplus earnings of 894 M$, with an increase compared to the surplus of 612 M$ in 2017.
In the fourth quarter, the segment’s net surplus earnings were$ 183 Million against$ 159 Million in the corresponding quarter of 2017.
For the two periods, Desjardins explained the results by gains on disposal of real estate investments senior in 2018, the technical experience that is more favourable and the increase in income related to growth in assets under management. In return, the adjustments made to the actuarial assumptions made in the normal course of business were less favourable “.
Growth for the group
All in all, the cooperative movement has experienced a growth of its net surplus earnings. For the year 2018, they have reached 2.3 billion dollars (G$), an increase of 15.5% compared to those of 2017. For the fourth treimstre, the segment’s net surplus earnings amounted to 578 Million, respectively, representing a growth of 34.7 %.
“The increase was mainly due to the increase in net interest income of the sector, both individuals and businesses, technical experience more favorable wealth management segment and life and health insurance, and is offset by a loss ratio more important in the sector of damage insurance,” stresses Desjardins.
“I am very proud of the performance of the Desjardins group. Our membership has experienced its strongest growth of the past ten years and young people are at the rendezvous. In addition, our surpluses are growing, and at the height of our expectations. For me, there is no doubt that the continued strengthening of our culture of member and client and our transition to digital has a lot to do with the remarkable results of the past year, ” said president and chief executive officer, Guy Cormier.