Desjardins Financial Security today reported a 9.7% increase in operating income for the year ended Dec. 31, 2006,

DFS said operating income growth for the year was $202.8 million, while net income was $151.3 million.

The company’s figures were down slightly from the previous year, when income from continuing operations totalled $154.4 million. In 2005, certain non-recurring items, including a reversal of provisions from the settlement of impaired loan losses, had a positive impact on results that year. Had it not been for these exceptional factors, net income for 2006 would have exceeded 2005 figures.

Return on shareholder equity was 20.7%

In terms of overall business growth, premium income from insurance and annuities was up 6.%, for a total of $2.4 billion. Insurance premiums crossed the $2 billion mark for the first time, to stand at $2.1 billion, for an increase of 8.4%. Insurance sales were up 81.4%.

Assets under management and administration stood at $19.9 billion, compared to $20.4 billion on Dec. 31, 2005.

Alban D’Amours, president and CEO of Desjardins Group and also CEO of DFS, commented: “We are confident that the momentum generated by our accomplishments in 2006 will remain strong in 2007, despite a fiercely competitive market.”

Richard Fortier, president and COO of DFS, noted that the results for this first year of the company’s 2006-2008 Strategic Plan are more than just promising. They confirm that DFS is on the right track. “The gains made by each one of our business lines in 2006 are largely due to the strict application of our business plan.” Based on the major group insurance and savings contracts we signed in 2006 and the strengthening of our distribution capacity through the acquisition of certain Performa Financial Group assets, Fortier said he was convinced that “if we stayed on course, in two years’ time, DFS would be able to double its market share outside Quebec without impacting our growth in Quebec”.

In 2006, net income for the Group Insurance business line exceeded $100 million for the third year in a row, to stand at $101.1 million compared to $102.5 million in 2005.

Net income for the Individual Insurance Group crossed the $40 million mark once again, to stand at $42.0 million. In 2005, the company more than doubled its figures by posting $43.0 million in net income, compared to $18.8 million a year earlier. Sales grew by $4.6 million and totalled $38.4 million. This growth comes largely from outside Quebec, where a substantial increase of 51.7% was recorded.


The Savings business line posted good results in 2006 as it did in 2005. Net income totalled $8.2 million, compared to $8.9 million in 2005. Sales totalled $1,062.4 million, an increase of $48.0 million over 2005.