Net income at Desjardins Financial Security more than doubled in the first quarter, the life and health insurance and retirement savings subsidiary of Desjardins Group said Monday.

Net income for the quarter ended March 31 was $62.2 million compared to $30.5 million over the same period the previous year.

The strong performance was due in large part to the strength of business in both insurance and annuities, and the recovery of the markets, DFS said.

Gross insurance premiums were $707.9 million, up 5.8% over the first quarter of 2009.

Insurance sales stood at $60.4 million, versus $65.6 million as at March 31, 2009. In the savings sector, sales rose to $546.7 million compared to $357.2 million the previous year, for an increase of 53.1%.

Return on shareholder equity during the quarter was 27.0%, compared to 17.5% in 2009, and remains one of the best in the financial services industry.

Assets under management and administration totalled $23.7 billion as at March 31, 2010, up 4.2% compared to December 31, 2009.
expansion.”

“These numbers show that we’re on the right path with our strategic directions,” stated Richard Fortier, president and chief operating officer.

“They also demonstrate how effective our growth efforts have been. We’re on track for our accelerated growth plan in the Canadian market and we plan to make a significant contribution to Desjardins Group’s brand recognition and profitability.”

In group insurance, gross premiums generated by groups and businesses, and by plans sold in financial institutions like the Desjardins caisses, totalled $425.7 million compared to $402.6 million over the same period in 2009. Sales to groups and businesses stood at $46.3 million.

In individual insurance, gross premiums totalled $135 million for the first quarter of 2010, compared to $125.8 million for the same period in 2009. Total sales recorded by financial security advisors assigned to the Desjardins caisses and by SFL and Desjardins Financial Security Independent Network financial centres stood at $14.1 million, compared to $11.3 million for the first quarter of 2009.

The savings sector saw total sales of $546.7 million, an increase of $189.5 million over the same period in 2009. In individual savings, sales totalled $321.7 million, compared to $221.1 million for the first three months of 2009. In group retirement savings, sales rose to $50.2 million, up $5.8 million over 2009.

IE