Life and health insurer shows strong growth following acquisitions of two Desjardins Group subsidiaries
Desjardins Financial Security has become the latest life and health insurer to release its results following on from the big three of Manulife, Sun Life and Great-West last week.
Reporting its earnings for the first nine months of the year, the Desjardins Group subsidiary increased insurance premiums for the period to $2.9 billion – a 2.3% jump. Insurance sales, meanwhile, amounted to $360.3 million for the first three quarters, comparing favourably to the $344.6 million during the same period last year.
This meant net income for the period was $353.2 million, up significantly from 2015’s $301.3 million. It’s been an eventful year for the company, right from the very beginning. On January 1, Desjardins Financial Security acquired Desjardins Investments and Desjardins Investment Product Operations.
The acquisition of the two companies contributed to an increase in assets under management and administration, which grew to $96.9 billion as of September 30, 2016, compared to $45.2 billion as of September 30, 2015.
Addressing the results, Desjardins Financial Services President and Chief Operating Officer, Denis Berthiaume stated the main reasons why performance had improved across the board.
"The diversity of our product line remains our biggest strength in the current high-competition market,” he said. “Based on our excellent investment sales, it's clear that our disciplined approach is trusted across the country, by business and individual investors alike. I'd also like to welcome Gregory Chrispin, who will be taking over as head of this great company, and under whose leadership DFS will continue to grow and remain a top choice for Canadians."
Last month, Chrispin was appointed as executive vice-president of Wealth Management and Life and Health insurance with Desjardins Group. This position means he will also serve as president and COO of Desjardins Financial Security.
Prior to becoming the head of DFS, Chrispin distinguished himself as vice-president of Investments in charge of all Desjardins Global Asset Management's activities.
Aside from life and health insurance, DFS also specializes in retirement savings, and this showed significant growth also.
By the end of the first three quarters, gross investment sales have grown significantly, ending the period at $10.4 billion, which is an $8.8 billion (or 558.0%) increase over the same period last year. The company attributed the growth to a large group retirement savings contract signed in Q1 2016, as well as sales generated by one of the new subsidiaries, Desjardins Investments.
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Reporting its earnings for the first nine months of the year, the Desjardins Group subsidiary increased insurance premiums for the period to $2.9 billion – a 2.3% jump. Insurance sales, meanwhile, amounted to $360.3 million for the first three quarters, comparing favourably to the $344.6 million during the same period last year.
This meant net income for the period was $353.2 million, up significantly from 2015’s $301.3 million. It’s been an eventful year for the company, right from the very beginning. On January 1, Desjardins Financial Security acquired Desjardins Investments and Desjardins Investment Product Operations.
The acquisition of the two companies contributed to an increase in assets under management and administration, which grew to $96.9 billion as of September 30, 2016, compared to $45.2 billion as of September 30, 2015.
Addressing the results, Desjardins Financial Services President and Chief Operating Officer, Denis Berthiaume stated the main reasons why performance had improved across the board.
"The diversity of our product line remains our biggest strength in the current high-competition market,” he said. “Based on our excellent investment sales, it's clear that our disciplined approach is trusted across the country, by business and individual investors alike. I'd also like to welcome Gregory Chrispin, who will be taking over as head of this great company, and under whose leadership DFS will continue to grow and remain a top choice for Canadians."
Last month, Chrispin was appointed as executive vice-president of Wealth Management and Life and Health insurance with Desjardins Group. This position means he will also serve as president and COO of Desjardins Financial Security.
Prior to becoming the head of DFS, Chrispin distinguished himself as vice-president of Investments in charge of all Desjardins Global Asset Management's activities.
Aside from life and health insurance, DFS also specializes in retirement savings, and this showed significant growth also.
By the end of the first three quarters, gross investment sales have grown significantly, ending the period at $10.4 billion, which is an $8.8 billion (or 558.0%) increase over the same period last year. The company attributed the growth to a large group retirement savings contract signed in Q1 2016, as well as sales generated by one of the new subsidiaries, Desjardins Investments.
Related stories:
Canadian insurers profit from Trump-inspired interest rate increases
Great-West announce operational shakeup following disappointing Q3 earnings
