After recording the best net income in its history in 2005, Desjardins Financial Security started 2006 on a strong note as it posted $30.4 million in net income for the first quarter, ended March 31, compared to $31.9 million the previous year.

The results are notable considering the marked deterioration in long-term disability claims experienced during the quarter. Income from insurance and annuity premiums, investment income and other income increased to $836.2 million from $732.9 million in 2005, an increase of 14.1%. Insurance sales surpassed the $50-million mark, up $8.1 million over the same quarter last year. And Assets under management continued to grow, amounting to $18 billion, a $2.6 billion increase over the same date last year.

With these kinds of results, the company is contributing to the profitability of the parent co-operative, Desjardins Group, which, from January to March 2006, posted $186 million in surplus earnings before patronage dividends to members. Desjardins Financial Security’s share of the net income attributable to the ultimate shareholders (such as the Desjardins caisses) is $28.3 million with a return on shareholder equity of 16.3%.

Alban D’Amours, president and CEO of Desjardins Group and CEO of Desjardins Financial Security, indicated that he is satisfied with the first quarter results, and highlighted the company’s strong performance in Canada’s very competitive life insurance market. “Desjardins Financial Security continues to be a strong player in the market, particularly outside Quebec, where it plays a strategic role in developing and penetrating the Canadian market. In this regard, its results are in line with expectations.”

President and chief operating officer François Joly is especially pleased with Desjardins Financial Security’s performance outside Quebec: “One of the priorities of our new 2006-2008 strategic plan is to double our market share outside Quebec. Our first quarter results in group and business insurance and group retirement services are a step in the right direction toward achieving this goal.”