November 16, 2018 13:30
Guy Cormier | Photo : Normand Huberdeau
The Desjardins group has experienced an increase in its net surplus earnings, as adjusted to the sectors of insurance of persons and damage to property in the third quarter of 2018. The good performance of the caisse network has also benefited generally to the growth of the segment’s net surplus earnings adjusted for the financial institution.
The surplus earnings, as adjusted before patronage allocations to members amounted to 570 M$ for the third quarter, up 14% compared to those recorded in the corresponding period of 2017, which were of$ 500 Million. The operating revenues of the company have reached 694 Million, excluding the gains realized on the sale of subsidiaries in 2017.
“The third quarter concludes with a very good overall performance. We have put forward a number of innovative initiatives, particularly in the field of sustainable development and have experienced strong growth in our number of members. We have launched new funds in responsible investment, making Desjardins a financial institution offering the widest range of funds IR to Canada, ” said Guy Cormier, president and chief executive officer of Desjardins group.
43% growth in insurance of persons
The sector of the wealth management and life and health insurance recorded a surplus of $ 174 million ($M), representing a growth of 43 % compared to the corresponding period of the previous year.
The technical experience that is more favourable and the increase in income related to growth in assets under management have allowed this gain on the part of the co-operative movement.
Tornadoes in Ottawa slow down the growth
In general insurance, the segment’s net surplus earnings, as adjusted, are$ 70 Million, an increase of$ 7 Million (11 %) compared to the third quarter of 2017 ($63 Million), excluding the gain, net of fees related to the sale of Western Financial Group and Western Life Assurance Company. Including this gain, the net surplus earnings for the third quarter of 2017 amounted to$318 Million.
Desjardins explained this increase by the increase in investment income, but is offset in part by the claims experience more significant, “particularly due to the occurrence of a disaster related to tornadoes and high winds” of the regions of Ottawa and Gatineau.