May 16, 2018 11:30
Photo : Freepik
For the quarter ended march 31, 2018, the Desjardins group has recorded an increase in surplus earnings before member dividends of $ 501 million of dollars (M$), a growth of$ 118 Million, or by 30.8 %, compared to the first quarter of 2017.
The results of operations of the cooperative have increased 7% to $ 4.02 billion, up from $ 3,76 billion in the corresponding quarter of the previous year.
Recovery damage insurance
The insurance activities of Desjardins group have experienced an increase, both in the area of wealth management and life and health insurance than that of property and casualty insurance.
The latter had recorded a loss of$ 18 Million in the first quarter of 2017, while it has generated a net surplus of$ 26 Million in the quarter ended march 31, 2018. Desjardins explains that the growth stems in part from the increase in investment income and the less significant increase of the contingent consideration payable in connection with the acquisition of the canadian operations of State Farm.
44% growth in insurance of persons
The gains on disposal of securities and real estate investments have benefited the sector of wealth management and life and health insurance, surplus earnings net of$ 206 Million. This increase of 44.1 % is also supported by higher revenues related to growth in assets under management, but is offset in part by the experience technique less favorable for the quarter.
The net premiums amounted to 2.14 G$, with an increase of 7.9 %. Desjardins states that the progress of the activities in insurance of persons and damage insurance, in addition to the effect of the reinsurance treaty signed in the framework of the acquisition of State Farm explain the increase.