Surplus Earnings Up 41% at DesjardinsBy Andrew Rickard | August 14 2015 01:06PM
For the second quarter of 2015, the Desjardins Group is reporting surplus earnings before member dividends of $629 million. This is an increase of $183 million, or 41%, over the same period last year.
Broken down by business line, Desjardins' Personal Services and Business and Institutional Services segment made the largest contribution, accounting for $239 million or 38% of surplus earnings. Desjardins says that this increase was due in part to sales of financial products, which helped to drive up income.
Thanks mostly to life and health insurance operations, including the newly acquired State Farm business in Canada, the Wealth Management and Life and Health Insurance segment of the Desjardins Group added $195 million or 31% to surplus earnings, which is $61 million more than during the same period in 2014.
Finally, the Property and Casualty Insurance segment recorded surplus earnings of $194 million, up $133 million compared to the second quarter of 2014. Desjardins also attributes much of this increase to State Farm's operations, which it says benefited from a "particularly favourable environment" in the second quarter and also saw improved claims experience in property insurance.
"I'm very satisfied with these results which reflect strong growth in Canada, particularly in insurance," commented Desjardins Group president and CEO Monique Leroux. "This not only helps Desjardins provide the security that our members and clients are looking for, but we can also continue to innovate and contribute to the development and vitality of our communities."