13 August 2019 11:30
Photo : Jean-Philippe Bourgoin
The Desjardins group posts surplus earnings of 692 million dollars ($M) for the second quarter, up$ 15 Million compared to the corresponding quarter of 2018. And this, despite the setbacks surrounding the cooperative in connection with the leak of the data of 2.9 million customers.
Desjardins explained this rising surplus ” by the good performance of the activities of the caisse network as well as by the activities of the sector of damage insurance, which shows an increase in premium income and favorable loss experience compared to the same quarter of 2018 “.
In addition, the company has anticipated that the costs and provisions related to the establishment of protections for members amounted to$70 Million.
“The results of this second quarter are at the height of our expectations, particularly because of the growth of the caisse network. These results attest to the financial soundness of Desjardins group and its ability to cope with unforeseen situations. I would like to reassure our members about the leakage of personal information. Their co-op protects them by providing them with all the Protection Desjardins members in the event of identity theft. Our employees work very hard to respond to the concerns and needs of our members, ” says the president and chief executive officer, Guy Cormier.
P & c : rise in the quarter, decline in half
The sector of damage insurance has benefited from an ” increase in net premiums, [of] the impact least important of the disasters and major events as well as to the claims of the current year less important in property insurance and business “. In fact, it has recorded surpluses of$ 123 Million, up$ 71 Million compared to the second quarter of 2018.
During the first six months, the insurance has, however, experienced a decline in surplus of$ 36 Million. These are passed to$ 78 Million in the first half of 2018 to$ 42 Million in the same period of 2019. Desjardins attributes this decline to ” a loss and adversely to the earnings lower on investments “.
The insurance of people in withdrawal
As for the sector of the wealth management and life and health insurance, both in the second quarter than the first half, the segment’s net surplus earnings are withdrawn. The segment has generated net surplus earnings$ 183 Million for the three-month period ended on June 30 last, compared to$ 331 Million in the second quarter of 2019. Taking into account surpluses adjusted, the decline amounted to 9.4%, or$19 Million.
The second quarter of 2018 ” had benefited from the gain related to the transaction involving Qtrade Canada Inc. and the interest in Northwest & Ethical Investments LP “, stresses Desjardins.
At the end of the first half of 2019, the surplus adjusted net reached 322 M$ against 408 Million dollars for the first six months of 2018. “In addition to the reasons mentioned to explain the results of the second quarter, this decrease is primarily attributable to gains on the disposal of securities and real estate investments less than 2018,” says the co-op.