For the second quarter ended June 30, 2017, Desjardins Group continued to grow its business, increasing its operating income by 11.4 per cent to $3.9 billion.
"Our cooperative financial group's performance over the last quarter is a great achievement, and reflects strong business growth," stated Guy Cormier, Chair of the Board, President and Chief Executive Officer. "When Desjardins succeeds, all its members and clients succeed as well. This allows us to play an even larger role as a socioeconomic leader and to give back even more to our members and the community."
This growth applies to the financial institution’s life and health insurance business and general insurance business. The latter benefitted from the reinsurance treaty signed as part of the acquisition of State Farm. This resulted in a 19.3 per cent increase in net premiums ($2.08 billion versus $1.74 billion in the same quarter of 2016).
Wealth management and life and health insurance up sharply
Net surplus earnings generated by wealth management and life and health insurance were $189 million at the end of the quarter (compared to $124 million in the second quarter of 2016). According to the insurer, this 52.4 per cent increase is mainly due to the good performance of the investments and the decrease in actuarial liabilities arising from changes made to the credit ratings of the securities matched to these liabilities. For the first six months of 2017, surplus earnings amounted to $332 million (compared to $221 million in the first half of 2016).
Net surplus of $98 million in property and casualty insurance
The property and casualty insurance segment recorded net surplus earnings of $98 million in Q2 2017, an increase over the same period in 2016 ($49 million). For the first six months of 2017, the surplus reached $80 million (compared to $88 million for the first half of 2016).