Desjardins sees Q1 net income dip

Desjardins Financial Security has reported a $6-million dip in year-over-year first quarter net income.

The Desjardins Group subsidiary said that net income in the three months ended March 31 was $47.8 million, compared with $53.4 million in the same period last year.

Gross insurance premium income was $789.9 million, and insurance sales amounted to $110.1 million. Savings product sales for Q1 were $540.1 million—an 11.9% increase over the same 2011 period.

Assets under management and administration totalled $33 billion as at March 31, 2012, compared with $27.1 billion on the same date last year.

In group insurance, premiums from groups and businesses and from plans offered in financial institutions stood at $636.9 million for Q1 2012, compared to $610.7 million as at March 31, 2011, for an increase of 4.3%.

Insurance sales from groups and businesses were $50.4 million. Sales from plans offered in financial institutions were $34.2 million, up 16.3%.

Group retirement savings sales were up 152.6%, standing at $148.5 million compared with $58.8 million for the same quarter in 2011.

“Our life and health insurance company has delivered a solid financial performance in the first quarter of the year, due in part to an impressive growth in group retirement savings sales,” said Desjardins Financial Security CEO Monique Leroux, who is also chairwoman, president and CEO of Desjardins Group.