At the end of the first six months of 2010, Desjardins Financial Security’s profitability was up 44.5% and its net income stood at $120.4 million, compared to $83.3 million over the same period last year.

The solid performance is due in large part due to good claims experience in both insurance and annuities. Gross insurance premiums for the six months were $1,414.6 million, an increase of 5.2% compared to the first six months of 2009.

Insurance sales totalled $110.3 million versus $116.8 million in 2009. Savings product sales reached $1,118.6 million, compared to $803 million over the same period a year ago, for an increase of 39.3%.

The share of the company’s net income attributable to the shareholder, the Desjardins caisses, stood at $121.5 million, for an increase of $39.4 million. Return on shareholder equity was 26.7%, compared to 22.9% in 2009, one of the best in the financial services industry.

Assets under management and administration were $23.8 billion as at June 30, 2010, compared to $20.5 billion over the same period in 2009.

The second quarter ended June 30, net income stood at $58.2 million, compared to $52.8 million in 2009. Insurance sales totalled $49.9 million versus $51.2 million for the same period a year earlier. Insurance premiums were $706.7 million, up $31.0 million over the second quarter of 2009. Savings product sales totalled $571.9 million, for an increase of $126.1 million over the second quarter a year ago.

Sector results

In group insurance, gross premiums from groups and businesses and from plans offered in financial institutions, including the Desjardins caisses, stood at $1,148.1 million as at June 30, for an increase of $52.4 million over the same period a year earlier. Sales totalled $82.8 million.

In individual insurance, gross premiums stood at $266.5 million for the first half of the year, compared to $249.2 million for the same period in 2009. Total sales recorded by the financial security advisors assigned to the Desjardins caisses and by the network of SFL and Desjardins Financial Security Independent Network financial centres stood at $27.5 million, compared to $22.5 million over the same period a year earlier.

In savings, total sales amounted to $1,118.6 million. Individual savings sales rose 45% over the first six months of 2010, totalling $674.6 million, compared to $465.5 million over the same period a year ago. Group retirement savings sales stood at $162.9 million.

Desjardins Financial Security, a subsidiary of Desjardins Group, the largest co-operative financial group in Canada, specializes in providing life insurance, health insurance and retirement savings products to individuals and groups.