Financial cooperative Desjardin posted surplus earnings of $677 million during the second quarter this year, as it realized gains from the creation of wealth management firm Aviso Wealth.
However, higher claims in property and casualty insurance drove down adjusted surplus earnings by an annualized 5.8% to $548 million.
According to the firm’s latest financial results, net premiums were $2.2 billion, up by 6% from the same period a year ago. This increase was partly due to the impact of the reinsurance treaty signed as part of the acquisition of State Farm’s Canadian operations.
It wealth management and life and health insurance segment generated net surplus earnings of $331 million, buoyed by higher income from the growth of assets under management and a more favourable claims experience.
Meanwhile, its property and casualty insurance division did not fare as well during the quarter, with $52 million in net surplus earnings, compared to $98 million in the second quarter of 2017. This was in part due to higher claims over a year ago as a result of two catastrophes related to wind damage in May and water and wind damage in April, and the impact of the sale of Western Financial Group and Western Life Assurance Company, completed on July 01.
“Our organization’s performance means we can further our mission, innovate and fulfill our role as a socioeconomic leader,” said president and CEO Guy Cormier, when the latest financial results were announced. “Innovation is at the heart of what we do. It allows us to improve services and simplify the lives of our members and clients. We were one of the first Canadian institutions to let consumers purchase home insurance and renew their mortgages entirely online.”
