Net income at Desjardins Financial Security surged by $159 million in 2009 as insurance premiums continued to grow and sales of individual savings products more than doubled over the previous year, the company announced on Tuesday.

For the year ended December 31, 2009, Desjardins Financial Security – the Desjardins Group subsidiary specializing in life insurance, health insurance and retirement savings – posted net income of $193.8 million, up from $34.5 million in 2008.

Gross insurance premiums continued to grow, totalling $2.7 billion in 2009, for an increase of $54 million over 2008. Quebec was responsible for $25.2 million of this increase and the other Canadian provinces for $28.9 million.

Return on shareholder equity was 25.9%. Assets under management and administration totalled $22.8 billion, up $3.1 billion compared to 2008.

For the fourth quarter, Desjardins posted net income of $42.8 million, reversing a net loss of $77.5 million in the same quarter the previous year. The company noted that its Q4 performance in 2008 was hit hard by the financial crisis.

“Our results are a tribute to the efforts we have continued to invest in our accelerated growth plan,” commented Richard Fortier, Desjardins Financial Security’s chief operating officer. “Our prospects today and for the future look very good.”

Monique Leroux, chairwoman of the board, president and CEO of Desjardins Group, and CEO of Desjardins Financial Security, noted that the company had consolidated its position despite the highly competitive environment.

“This kind of market penetration is very beneficial for Desjardins Group in terms of its reputation and its overall profitability,” she said.

For the year, insurance sales rose to $193.5 million, an increase of $12.7 million from 2008. Sales grew by 6.6% in Quebec, and by 7.3% in the rest of the country.

Group insurance gross premiums jumped by $32.5 million to $2.2 billion, and sales to groups and businesses increased by $7.5 million to $144.3 million.

Individual insurance gross premiums totalled $512.2 million, up $21.5 million from 2008. Total sales by advisors assigned to the Desjardins caisses and by the network of SFL and Desjardins Financial Security Independent Network financial centres rose 11.8% to $49.2 million.

In the company’s savings division, sales surged to a new record of $1.5 billion, up $807.4 million from a year earlier. This growth was driven by excellent sales performance in segregated funds and group retirement savings, Desjardins said.

Group retirement savings sales rose by $143.4 million to $403.6 million over 2008. Individual savings, meanwhile, pulled in sales of $1.1 billion – more than doubling 2008 sales.

Guaranteed investment funds also experienced unprecedented growth in 2009, with sales of $986.4 million, up from $315.8 million in 2008. Clients looking for a secure return on their money and capital guarantees invested heavily in Helios Guaranteed Investment Funds in 2009, the company said.

IE