Desjardins Financial Security

Canadian workers punch in even when sick and exhausted (May 1, 2008)
Accelerated and Sustained Growth for Desjardins Financial Security (March 18, 2008)
The Make your bills…our bills! with Loan Insurance contest - A resident of Dugald wins $15,000 (March 3, 2008)
The Make your bills…our bills! with Loan Insurance contest - A couple from North Bay wins $15,000 (February 22, 2008)
The Make your bills…our bills! with Loan Insurance contest - A Hearst resident wins $41,300 (February 16, 2008)
This Valentine's Day, Commit to Financial Security. Love Yourself Enough to Start Planning your Retirement Now. (February 14, 2008)

Canadian workers punch in even when sick and exhausted

Recent health survey finds that 83 per cent of Canadians have practiced "presenteeism"

Toronto, May 1, 2008 – According to the first results of the Desjardins Financial Security National Health Survey released today in advance of National Mental Health Week (May 5 to 11, 2008), 42 per cent of Canadian workers went to work sick or exhausted at least once in 2007. Of these, 29 per cent admitted to working while ill three to five times, 11 per cent from six to 10 times and 12 per cent admitted to more than 10 times in the last year. The reasons most often mentioned by the respondents for their presenteeism were:

Looming deadlines (61 per cent)
Preventing workload pile-up (55 per cent)
Not wanting colleagues to be overloaded (49 per cent)
Concern about missing work being frowned upon (41 per cent)
Simply not being able to miss the income (40 per cent)

Nine out of 10 workers believe that the incidences of stress-related mental health problems, such as burn-out, depression and anxiety have been increasing over the years. When asked about their daily work reality, many complained of increased stress, heavy workloads and a lack of recognition from their employer. 65 per cent said that they participate less in decisions that involve their work, 61 per cent agreed that workers today do too much for their employers and 60 per cent commented that workers have difficult relationships with their bosses. Over half of the workers surveyed (55 per cent) said they have less contact with their co-workers and supervisors.

"Even if each person is responsible for his or her own health, these results should prompt employers to take a closer look at the reality of their own workplaces and its impact on their employees' health," said Alain Thauvette, senior vice-president, Group and Business Insurance, at Desjardins Financial Security (DFS). "In the long run, employers cannot be entirely sure of the strength of their businesses if their workforce is not in good health."

And now the good news

Interestingly, when asked to name the top stressors in their lives, respondents mentioned work pressures third, after money problems and personal health issues. Michele Nowski, director of disability income claims and disability management at DFS is not surprised. "In reality, we see just a small percentage of mental health absences that are solely related to workplace issues. Obviously, stress management is still an everyday struggle for many people, but the main responsibility of the workplace is to provide healthy conditions to help workers face their daily challenges. The rest is up to the individual."

Workplaces appear to be gradually adapting to mental health challenges in their businesses. Close to two-thirds of workers think that their employer's senior management is concerned about employee wellness and four out of 10 believe that management is showing that they are ready to listen or are open to discussing issues with their employees.

Moreover, of the 55 per cent of workers who have seen a co-worker miss work for a period of time due to a mental health problem, 82 per cent said that it has made them more sensitive to behaving in a way that promotes mental health in the workplace. As a result, 68 per cent said that they have become more sensitive to their own mental health. Finally, 82 per cent of respondents disagreed that workers who miss work due to mental health problems view the time off as paid vacation.

"What struck me was the sense of compassion that workers have for their colleagues who are suffering from mental health problems. It's obvious that attitudes towards mental health issues in the workplace have evolved considerably," said Dr. Taylor Alexander, CEO of the Canadian Mental Health Association. "Increasingly, businesses are implementing policies and adopting behaviors that promote mental health that are becoming an integral part of the organization’s culture. This practice is crucial not only for everyone's well-being, but also as a means to combat looming labour shortages and to improve business profitability. Clearly, more needs to be done to create mentally healthier workplaces, as this survey shows. We should all think about adopting new attitudes about mental health at work, especially during National Mental Health Week."

The 57th annual National Mental Health Week is an initiative of the Canadian Mental Health Association (CMHA). For the third year in a row, Desjardins Financial Security is a major partner and will be sponsoring many activities across Canada including Dr. Steven Stein's "Mental Health: Make it Your Business" conference, to be held on May 6, 2008, at 6:00 p.m. at the Chateau Laurier in Ottawa.

For more details on the survey results and Desjardins Financial Security's mental health partnerships, please visit www.healthiscool.ca .

About the Survey
SOM Surveys, Opinion Polls and Marketing conducted the survey on behalf of Desjardins Financial Security between February 7 and March 10, 2008. In total, 1,594 interviews were conducted with a representative sample of Canadian adults. The sampling plan provides proportional estimates with a maximum margin of error of plus or minus 2.6 per cent at a 95 per cent confidence level (19 times out of 20). The data was statistically weighted to accurately reflect the composition of Canadians by region, gender and age based on Statistics Canada's 2006 Census information.

About Desjardins Financial Security
Desjardins Financial Security, a subsidiary of Desjardins Group, the largest integrated cooperative financial group in Canada, specializes in providing life insurance, health insurance and retirement savings products and services to individuals and groups. Every day, over five million Canadians rely on Desjardins Financial Security to ensure their financial security. The company employs over 3,900 people and administers more than $22 billion in assets from offices in several cities across the country, including Vancouver, Calgary, Winnipeg, Toronto, Ottawa, Montréal, Québec, Lévis, Halifax and St. John's.

Accelerated and Sustained Growth for Desjardins Financial Security

2007 Financial Results

Net premium growth of 5.6%
Group insurance premiums up 14.9%
Net income of $216.7M, up 43.2%
Operating income growth of $288.3M, up 42.2%
Return on shareholder equity of 27.5%
Profitability in all business lines

Lévis, March 18, 2008 -- At year-end, December 31, 2007, Desjardins Financial Security's net income totalled $216.7 million, crossing the $200-million mark for the first time. This excellent performance represents a $65.4 million or 43.2% increase over 2006, when net income totalled $151.3 million. Operating income amounted to $288.3 million for a 42.2% increase.

Business growth across the country, coupled with investment performance and improved productivity, was one of the key factors behind the Company's success.

With respect to overall business growth, insurance and annuity premium income increased 5.6% to stand at $2.6 billion. Insurance sales rose 14.0% to total $415.7 million. Assets under management and administration stood at $22.6 billion compared to $19.9 billion at the end of 2006, representing a 13.2% increase.

The Company's profitability in 2007 was affected by the subprime mortgage credit crisis worldwide, which led to liquidity problems on the non-bank-sponsored asset-backed commercial paper (ABCP) market. At December 31, 2007, Desjardins Financial Security had ABCP holdings of $161.2M after recognition of a $34.2M decrease in value. This depreciation reduced the Company's net income for 2007 by $17.8 million.

The portion of the Company's net income attributable to the shareholder totalled $211.1 million, for an increase of $65.3 million over 2006. Return on shareholder equity was 27.5%. With results like these, the Company continues to contribute to the profitability of Desjardins Group, the largest integrated cooperative financial group in Canada, with declared combined surplus earnings before member dividends of $1.1 billion at the end of 2007.

Fourth Quarter Results

For the period of October 1 to December 31, 2007, net income stood at $50.4 million, for an 18.0% improvement over Q4 2006 ($42.7 million). Insurance premium income for the period totalled $611.2 million, for a 12.9% increase.

Mr. Alban D'Amours, President and Chief Executive Officer of Desjardins Group and also Chief Executive Officer of Desjardins Financial Security, was very pleased with the life and health insurance subsidiary's strong growth across the country. "These exceptional results are a tribute to the quality of our Company's service offer and the hard work of our teams, which enabled us to reach our ambitious objectives. Desjardins Financial Security is asserting itself more and more on the Canadian market, where it is consolidating its position and making major gains, notably in the group insurance market, and contributing in a very tangible way to the success of Desjardins Group across Canada."

Mr. Richard Fortier, President and Chief Operating Officer of Desjardins Financial Security, was also extremely happy with the Company's performance last year. "On the basis of these results, we plan to forge ahead and strengthen our position as the fourth largest life and health insurer in Canada and reinforce our leadership position in the Quebec market. We will continue to focus our efforts on growing organically in all our activity sectors and will pay special attention to the development of our integrated service offer in the Desjardins caisse network."

Sector Performances

Strong growth in group and business insurance sales and premiums – Group and business insurance sales and administered premiums passed the $235-million and $2-billion mark respectively. Overall sales have grown significantly, from $195.6 million in 2006 to $237.3 million in 2007. Sales outside Quebec alone reached $180 million, in contrast to $154.8 million in 2006. These results are due to major group sales recorded outside Quebec, mainly in the public and parapublic sector. Since signing a $70-million contract with the Government of Newfoundland and Labrador in 2006, the Company has continued to expand its business portfolio by adding an $85-million insurance partnership with the Ontario Hospital Association and a $21.4-million agreement with the Newfoundland and Labrador Teachers' Association.

Individual insurance posts improved results – In 2007, individual insurance sales grew by $3.5 million to total $41.9 million. Premiums stood at $392.6 million, up $18.4 million from 2006. Sales and premiums from the network of caisse-dedicated financial security advisors rose by 6.5% and 21.1% respectively over last year.

Segregated funds records 32.4% growth – The savings sector has recorded good results once again. Sales totalled $1.1 billion, an improvement of $48.2 million over 2006. This excellent growth of 4.5% is due mainly to a combination of Helios and Millennia segregated fund sales, mutual fund sales, and group retirement savings sales.

In individual savings, sales totalled $255.8 million in 2007. Group retirement savings sales stood at $218.5 million, with accumulation products accounting for $96.7 million, for a 14.9% improvement over 2006, and payout annuities accounting for $121.8 million. With respect to segregated fund sales, combined sales of Helios and Millennia products reached $151.7 million, for a 32.4% increase over 2006.

About Desjardins Financial Security
Desjardins Financial Security, a subsidiary of Desjardins Group, the largest integrated cooperative financial group in Canada, specializes in providing life insurance, health insurance and retirement savings products and services to individuals and groups. Every day, over 5 million Canadians rely on Desjardins Financial Security to ensure their financial security. Desjardins Financial Security employs over 3,900 people and administers over $22.0 billion in assets from offices in several cities across the country including Vancouver, Calgary, Winnipeg, Toronto, Ottawa, Montréal, Québec, Lévis, Halifax and St. John's.

The Make your bills…our bills! with Loan Insurance contest - A resident of Dugald wins $15,000

Toronto, March 3, 2008 – Laurie Fellers, a member of the Caisse populaire Laprairie, was pleased to learn that she had won $15,000. Ms. Fellers' mortgage loan with Desjardins was eligible for the Make your bills…our bills! with Loan Insurance contest, and she met with a credit officer from the caisse to obtain a Loan Insurance offer on her mortgage loan. She has now joined the ranks of the winners of the Make your bills…our bills! with Loan Insurance contest, organized by Desjardins Financial Security, the fourth-ranked insurer in Canada, in collaboration with caisses from the Fédération des caisses populaires du Manitoba.

The 2007 edition of the Make your bills…our bills! with Loan Insurance contest, which began on January 1, 2007 and ended on December 31, 2007, offered residents of Ontario and Manitoba the chance to win over $85,000 in prizes.

About Desjardins Financial Security
Desjardins Financial Security, a subsidiary of Desjardins Group, the largest integrated cooperative financial group in Canada, specializes in individual and group life and health insurance, as well as retirement savings products and services. Every day, over 5 million Canadians rely on Desjardins Financial Security to ensure their financial security. Desjardins Financial Security employs over 3,700 people and administers over $22.0 billion in assets from offices in several cities across the country including Vancouver, Calgary, Winnipeg, Toronto, Ottawa, Montréal, Québec, Lévis, Halifax and St. John's.

The Make your bills…our bills! with Loan Insurance contest - A couple from North Bay wins $15,000

Toronto, February 22, 2008 – Linda Paquette-Moulaison and Darren Moulaison, members of the Caisse populaire North Bay Limitée, were pleased to learn that they had won $15,000. Ms. Paquette-Moulaison and Mr. Moulaison have a mortgage loan with Desjardins that was eligible for the Make your bills…our bills! with Loan Insurance contest, and they met with a credit officer from the caisse to obtain a Loan Insurance offer on their mortgage loan. They have now joined the ranks of the winners of the Make your bills…our bills! with Loan Insurance contest, organized by Desjardins Financial Security, the fourth-ranked insurer in Canada, in collaboration with caisses from the Alliance des caisses populaires de l'Ontario.

The 2007 edition of the Make Your Bills…Our Bills! with Loan Insurance contest, which began on January 1, 2007 and ended on December 31, 2007, offered residents of Ontario and Manitoba the chance to win over $85,000 in prizes.

About Desjardins Financial Security
Desjardins Financial Security, a subsidiary of Desjardins Group, the largest integrated cooperative financial group in Canada, specializes in individual and group life and health insurance, as well as retirement savings products and services. Every day, over 5 million Canadians rely on Desjardins Financial Security to ensure their financial security. Desjardins Financial Security employs over 3,700 people and administers over $22.0 billion in assets from offices in several cities across the country including Vancouver, Calgary, Winnipeg, Toronto, Ottawa, Montréal, Québec, Lévis, Halifax and St. John's.

The Make your bills…our bills! with Loan Insurance contest - A Hearst resident wins $41,300

Toronto, February 16, 2008 – Joël Hudon, a member of the Caisse populaire de Hearst, was pleased to learn that he had won $41,300. Mr. Hudon's mortgage loan with Desjardins was eligible for the Make your bills…our bills! with Loan Insurance contest, and he met with a credit officer from the caisse to obtain a Loan Insurance offer on his mortgage loan. He has now joined the ranks of the winners of the Make your bills…our bills! with Loan Insurance contest, organized by Desjardins Financial Security, the fourth-ranked insurer in Canada, in collaboration with caisses from the Alliance des caisses populaires de l'Ontario.

About Desjardins Financial Security
Desjardins Financial Security, a subsidiary of Desjardins Group, the largest integrated cooperative financial group in Canada, specializes in individual and group life and health insurance, as well as retirement savings products and services. Every day, over 5 million Canadians rely on Desjardins Financial Security to ensure their financial security. Desjardins Financial Security employs over 3,700 people and administers over $22.0 billion in assets from offices in several cities across the country including Vancouver, Calgary, Winnipeg, Toronto, Ottawa, Montréal, Québec, Lévis, Halifax and St. John's.

This Valentine's Day, Commit to Financial Security.
Love Yourself Enough to Start Planning your Retirement Now.

TORONTO, February 14, 2008 -- It may be the height of RRSP season, but chances are that today, many Canadians won’t be thinking about investments; they’ll be thinking about romantic dinners. In fact, according to a national study recently published by Desjardins Financial Security, many Canadians seem to be inclined to spend more time choosing a new exotic restaurant than planning for their retirement years.

According to the annual DFS retirement survey, the proportion of workers 40 and over who say they have a savings accumulation plan is down to a low of 53%, compared to 62% of respondents in 2006. The rate drops even lower for workers 40 and over with only a high school education (42%), for those with household incomes of $50,000 or less (27%) and personal savings of $25,000 or less, and for those who consider their physical condition to be poor or fair (21%).

“It is disappointing, but not surprising” says Monique Tremblay, Senior Vice President, Savings and Segregated Funds, at Desjardins Financial Security. “People tell us that they can't imagine their lives five or ten years down the line, let alone 30 or 40! Our challenge is not only to communicate a certain sense of urgency, but also to show them it can be fun and easy to save by giving them tangible strategies they can use today to start on the road to a financially secure retirement.”

The survey also indicates that 28% of workers 40 and over who had a retirement savings management plan had prepared it themselves. While there is a considerable amount of financial information available nowadays, one might wonder if those plans take into consideration a variety of factors and risks that can have an impact on the yield and longevity of their nest eggs, such as market-related factors (e.g., inflation), rising life expectancies and healthcare costs.

Tremblay adds, “In the years leading to retirement, many feel like they have all the time in the world to plan and prepare for life after work. One unfortunate consequence of this is that many Canadians entering retirement do not have adequate savings in place or a prepared plan that specifies not only how they will use their savings to generate retirement income, but also how they will pay for the expensive care they might need in the last few years of their lives.”

So this Valentine's Day, Canadians may want to consider buying some simple chocolates and preparing a nice meal themselves and trading the expensive dinners for the ultimate show of self-love: a hundred bucks in their RRSP and a renewed focus on how they can better prepare for their future.

About the Survey
SOM Surveys, Opinion Polls and Marketing conducted the survey on behalf of Desjardins Financial Security between July 24 and August 31, 2007. In total, 1,505 interviews were conducted with a representative sample of Canadian adults. The sampling plan provides proportional estimates with a maximum margin of error of plus or minus 2.6% at a 95% confidence level (19 times out of 20). For more details on the survey results, please visit www.rethinkretirement.ca.

About Desjardins Financial Security
Desjardins Financial Security, a subsidiary of Desjardins Group, the largest integrated cooperative financial group in Canada, specializes in individual and group life and health insurance, as well as retirement savings products and services. Every day, over 5 million Canadians rely on Desjardins Financial Security to ensure their financial security. Desjardins Financial Security employs over 3,700 people and administers over $22.0 billion in assets from offices in several cities across the country including Vancouver, Calgary, Winnipeg, Toronto, Ottawa, Montréal, Québec, Lévis, Halifax and St. John's.