“Despite market pressures for the period, net income was up significantly,” said Denis Berthiaume
, president and CEO of DFS. “Gross premiums were also up, thanks to State Farm's Canadian operations, which represent more than 45% of the increase for the quarter.”
Gross insurance premiums grew to $2,915.8 million, of which $102.3 million was generated by State Farm's Canadian operations. This represents an increase of $218.6 million or 8.1% over the same period last year.
Contributing factors include improved claims experience for certain products, particularly in individual insurance and savings, and more favourable investment opportunities, says Berthiaume. State Farm's operations also contributed $41.3 million to the company's net income at the end of the third quarter.
The acquisition of State Farm by Desjardins officially closed in January of this year – a statement move by the Quebec-based insurer that it was among the major players in the Canadian insurance market. The company employs some 4,000 people and administers $45.1 billion in assets from several cities across the country.
Insurance sales stood at $342.1 million for the first nine months of the year ($365.5 million in 2014). Net savings sales were at $642.2 million ($473.12 million in 2014).
The return on shareholder's equity for the year was 15.5% (14.8% in 2014). Assets under management and administration came in at $45.1 billion, up 11.9%.
For the period from July 1 to September 30, 2015, net income was $60.9 million, compared to $44.6 million for the same period the previous year—an increase of 36.5%. Individual insurance sales totalled $18.5 million, up $4.2 million or 29.4% over last year.
At the end of the first nine months of 2015, Desjardins Financial Security, a subsidiary of Desjardins Group specializing in life insurance, health insurance and retirement savings, recorded $301.3 million in net income, compared to $239.4 million for the same period in 2014.