Desjardins reports positive surplus earnings in the third quarter
Photo: Jean-Philippe Bourgoin
Desjardins Group reported its financial results for the third quarter of 2020, recording surplus earnings before member dividends of $729-million, up 27.9 per cent from $570-million reported for the third quarter of 2019.
The results for the three months ended September 30, 2020 were driven by good performance from the company’s caisse network, as well as Desjardins Securities Inc. and the group’s property and casualty insurance segment.
For the nine months ended September 30, the group recorded surplus earnings before member dividends of $1.5 billion, down 7.2 per cent from $1.67-billion reported for the nine months ended September 30, 2019.
Financial consequences of COVID-19
The company says the financial consequences of COVID-19 included an increase in the provision for credit losses and an increase in costs related to travel insurance. In auto insurance, Desjardins says auto insurance premiums refunded to policyholders were offset by lower auto insurance claims due to changes in driving habits.
Broken down, in the three months ended September 30, 2020, the group’s personal and business services segment surplus earnings were up $47-million.
Its wealth management and life and health insurance segment was up $40-million.
Its property and casualty insurance segment was up $121-million compared to the same period in 2019.
The group’s total capital ratio was 22.1 per cent at September 30, 2020, up from 18.1 per cent during the same period in 2019. Its assets under management reached $73.1-billion during the quarter, up from $66.3-billion in the third quarter of 2019.