Desjardins Financial Security on Tuesday reported a sharp increase in net income for the second quarter ended June 30.

The life and health insurer said profit for the quarter rose to $27.4 million, a 39.8% jump from a year ago.

Income from insurance premiums and annuities rose 13.7%, to $480.9 million in the second quarter of 2003, compared to $422.8 million for the year-earlier period.

The company said the increase resulted from growth in sales, favourable underwriting experience across all business lines and control of administrative expenses. All business lines in Canada reported substantially higher earnings.

“Our success in terms of sales is undeniable,” said François Joly, president and COO. “Insurance sales in the second quarter were up 51.8% over 2002, while sales of individual retirement savings products have already exceeded 2002 total sales.”