Sale of subsidiaries helps Desjardins boost earnings

By The IJ Staff | November 13 2017 09:45AM

Photo: Jean-Philippe Bourgoin

Desjardins Group, Canada’s largest co-operative financial group, has recorded third-quarter surplus earnings before member dividends of $758 million, up $304 million from the same quarter last year.   

Desjardins said the results include a $258-million gain, net of expenses and after income taxes, realized on the sale of its subsidiaries Western Financial Group Inc. and Western Life Assurance Company.  Adjusted surplus earnings were $508 million, up $47 million or 10.2%.

P&C division helps Desjardins grow

An increase in adjusted surplus earnings in the third quarter was largely due to the contribution made by the caisse network, which continues to grow, and by the property and casualty Insurance segment, which benefited from a more favourable claims experience for the current year than for the same quarter of 2016, particularly in home and automobile insurance.

Net surplus earnings from Desjardins’ wealth management and life and health insurance segment stood at $121 million at the end of the quarter, compared with $126 million for the same period last year. The four per cent decline was largely due to a deteriorating claims experience, but was partly offset by improved interest rates and by growth in assets under management.