Desjardins announces surplus earnings of $501 million for Q1 2018
Desjardins Group announced on May 15 that it has recorded surplus earnings before member dividends of $501 million. This is up $118 million or 30.8 per cent from the same quarter of 2017.
The financial cooperative says this performance was due in part “to continued growth in caisse network operations, greater gains on investments and higher income related to growth in assets under management.”
Increased premium income
Q1 2018 operating income increased $263 million or seven per cent. Desjardins Group says this increase in operating income “was due in part to the contribution of the caisse network, which continued to grow, and those of the Wealth Management and Life and Health Insurance segment and the Property and Casualty Insurance segment, which both benefited from increased premium income.”
Net premiums were $2,139 million, up from $1,982 million in Q1 2017. Desjardins says this increase was “due to growth in the activities of both life and health insurance and property and casualty insurance, combined with the impact of the reinsurance treaty signed as part of the acquisition of State Farm's Canadian operations.”
Wealth Management and Life and Health Insurance
Net surplus earnings generated by Desjardins Wealth Management and Life and Health Insurance segment were $206 million at the end of the quarter compared to $143 million in Q1 2017: $143 million. “This 44.1 per cent increase was mainly due to higher gains on the disposal of securities and real estate investments in 2018 and increased income related to the growth of assets under management. The increase was partly offset by a less favourable claims experience in the three-month period ended March 31, 2018,” says Desjardins.