Desjardins Financial Security (DFS), a subsidiary of Lévis, Que.-based Desjardins Group specializing in life insurance, health insurance and retirement savings, ended 2014 with a decrease in net income but an increase in assets under management and administration (AUMA) as well as insurance sales.

DFS reported its year-end 2014 net income as $295.0 million, compared to $382.0 million for the same period in 2013. The main contributing factors to this result were a less favourable claims experience in 2014 and adjustments to certain actuarial assumptions made in 2013. By contrast, favourable financial markets improved investment performance and the company’s results, particularly during the first half of the year, according to DFS.

As of December 31, 2014, AUMA were up 12.2% to $41.3 billion, compared to $36.8 billion at the end of 2013. The savings sector posted 19.6% growth with total sales reaching $3.1 billion at the end of 2014, versus $2.6 billion for the same period in 2013.

In group insurance, the volume of premiums from groups and businesses and from plans offered through financial institutions, including the Desjardins caisses, stood at $2.9 billion compared to $2.8 billion at the end of 2013. Group and business insurance sales were up 3.9% to stand at $187.1 million, versus $180.1 million as at year-end in 2013.

In individual insurance, the volume of premiums totalled $672.3 million, compared to $640.2 million in 2013. Individual insurance sales stood at $57.3 million, while they were $55.1 million for the same period in 2013.

“This year’s results confirm that our long-term vision is working and that we are managing our business effectively,” says Denis Berthiaume, president and chief operating officer of DFS.

DFS also finalized the acquisition of State Farm Canada’s life and health insurance operations, which closed on Jan. 1, 2015. The transaction will enable DFS to increase its annual volume of gross written premiums by an estimated $140.0 million and nearly double its individual insurance sales outside Quebec, according to the company.

“DFS continues to make a name for itself in the Canadian market with initiatives such as the integration of State Farm’s Canadian life and health insurance operations,” says Monique F. Leroux, chair of the board, president and CEO of Desjardins Group and CEO of DFS. “The market is highly competitive, but the success of our life and health insurance arm and all of its business sectors is proof that the cooperative model is strong.”