Desjardins Financial Security

Desjardins Financial Security posts net income of $30.5M, maintaining solid financial footing (May 27, 2009)
SFL Partner of Desjardins Financial Security opens a new financial centre in Montréal's West Island (May 21, 2009)
Desjardins Financial Security opens new Vancouver-based Group Retirement Savings Sales office (May 20, 2009)
Recession-Stressed Workers Need Employers’ Support (May 4, 2009)
Desjardins Financial Security Launches Foresight, Group Retirement Savings Solution, Selects Morningstar as Independent Provider of Research, Data, and Portfolio Construction (April 30, 2009)
Self-employed Canadians managing recession, but not managing risk (April 1, 2009)
Group RRSPs holding strong in the face of economic turmoil (February 25, 2009)
Saving is the new black (January 26, 2009)

Desjardins Financial Security posts net income of $30.5M, maintaining solid financial footing

2009 First Quarter Financial Results

Individual savings sales up $127.5M
Insurance premium volume up 3.2%
10.5% increase in insurance sales
$30.5 million in net income
Return on shareholder equity of 17.5%

Lévis, May 27, 2009 – For the period ending March 31, 2009, Desjardins Financial Security, a Desjardins Group subsidiary specializing in life insurance, health insurance and retirement savings products and services, once again recorded growth in insurance premium income, which stood at $669.2 million, up 3.2 per cent as compared to the same period last year. Insurance sales totalled $65.1 million, up 10.5 per cent from March 31, 2008. Despite the ongoing worldwide financial crisis, Desjardins Financial Security has maintained its profitability with a net income of $30.5 million as compared to $36.3 million for the same period in 2008.

For the first quarter of 2009, the net income share attributable to the shareholder—the Desjardins caisses—totalled $30.3 million. Return on shareholder's equity was 17.5 per cent and assets under management and under administration totalled $19.5 billion.

Desjardins Financial Security's financial strength has not been affected by the continued economic crisis. The company still has an excellent capitalization ratio and the fundamental insurance operations also remain very profitable.

Ms. Monique F. Leroux, President and CEO of Desjardins Group, and also CEO of Desjardins Financial Security, acknowledged the Company's contribution to Desjardins Group. "Despite the effects of the financial crisis, our life and health insurance subsidiary achieved significant growth in terms of business volume and remains a financially sound and strong company. Desjardins Financial Security continues to contribute significantly to Desjardins Group's results."

Mr. Richard Fortier, Chief Operating Officer of Desjardins Financial Security, said that he was satisfied with the results, drawing attention to the growth achieved in the areas of insurance premiums and sales. "This growth clearly shows that our products and services stand out in the Canadian market and that they are meeting the needs and expectations of our clients. Given these results, we are confident that going forward we will continue to strengthen and grow our business across Canada."

Results by business segment

In group insurance, the volume of premiums generated by groups and businesses totalled $402.6 million as compared to $392.8 million during the last quarter of 2008. Group and business insurance sales grew by $5.2 million for a total of $54.3 million.

In individual insurance, sales grew by 10.2 per cent and stood at $10.8 million for the first quarter. Sales by Desjardins Financial Security's financial centre network rose by 6.0 per cent in Quebec and 4.1 per cent in the rest of Canada. Sales by financial security advisors assigned to Desjardins caisses stood at $4.7 million, up 16.5 per cent. Gross premium volume totalled $125.8 million, up $5.6 million over the same period in 2008 for the individual insurance segment.

In savings, aggregate sales were $354.6 million, representing a $41.7 million increase over the previous year. In individual savings, aggregate sales were $221.6 million, up $127.5 million since the first quarter of 2008. Group retirement savings sales were $44.4 million, down $11.0 million.

About Desjardins Financial Security
Desjardins Financial Security, a subsidiary of Desjardins Group, the largest 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. Desjardins Financial Security employs 3,800 people and administers $19.5 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.

SFL Partner of Desjardins Financial Security opens a new financial centre in Montréal's West Island

Serving Montréal's cultural mosaic!

Montréal, May 21, 2009 – SFL Partner of Desjardins Financial Security continues to expand in Quebec. We are pleased to announce the opening of the SFL St-Laurent West Island financial centre—the eighth financial centre in the Greater Montréal area and the fifteenth in Quebec.

This new financial centre, located at 110-555 boul. Dr-Frédérik-Philips, in Ville St-Laurent, is at the heart of Montréal's cultural communities, and will offer services geared specifically toward a multicultural client base through its financial advisors.

Martin Poirier isthe managing director of the SFL St-Laurent West Island financial centre. Mr. Poirier has more than 20 years of experience in the financial services industry. Over the past decade, he has held a variety of high-level positions. "My number one goal will be to develop relationships in this area, which is home to a wide range of cultural communities. Fourteen different cultural communities are currently represented on our team, which is composed of dynamic and attentive individuals, and this number will soon be rising to sixteen. Our plan is not only to offer these clients insurance and savings products adapted to their unique needs, but also to build close relationships with them and the local business people," said Mr. Poirier.

"This new centre fits in perfectly with Desjardins Financial Security’s strategy of strengthening its financial product and service distribution networks, not only in Quebec, but across Canada. More Quebecers and Canadians will now have better access to the products we are developing for them and to the expertise of advisors dedicated to ensuring the financial security of their clients and their loved ones," explained Alain Bédard, Senior Vice-President, Individual Insurance and Savings, Desjardins Financial Security.

The SFL St-Laurent West Island financial centre is part of a financial products and services distribution network with 55 service locations in Canada. The national network has some 1,100 associates, $6.3 billion in assets under management and over half a million clients. Through this network, clients have access to a wide range of innovative products and advisory services designed to meet all their financial security needs.

The new financial centre’s team of advisors can be reached at 514-748-0878.

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 to individuals and groups. Every day, over five million Canadians rely on Desjardins Financial Security to ensure their financial security. Desjardins Financial Security employs 3,800 people and administers $19.5 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.

Desjardins Financial Security opens new Vancouver-based Group Retirement Savings Sales office

Vancouver (May 20, 2009) – Desjardins Financial Security announces today the opening of a new Group Retirement Savings sales office in Vancouver. The new branch represents Desjardins' ongoing commitment to growing their business across Canada, particularly in the west.

Dorothy Chin, education advisor and sales support, will be the first to work from this new location. A full compliment of sales and support staff is expect to join Ms. Chin in the following months to provide a full range of financial products and services to clients and business partners.

The new office located at:
Desjardins Financial Security
Group Retirement Savings Division
401 West Georgia St., Suite 1010
Vancouver, BC V6B 5A1
Telephone: 604-658-2550 or toll free 1-877-251-5569
Fax: 604-251-5132

About Desjardins Financial Security
Desjardins Financial Security, a subsidiary of Desjardins Group, the largest financial cooperative 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 3,800 people and administers more than $19,6 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.

Recession-Stressed Workers Need Employers’ Support

New study shows increased anxiety in the workplace

Toronto (May 4, 2009) -- They’re stressed, anxious, worried about their jobs. They’re losing sleep and they’re losing confidence in the economy. Many Canadian employees are showing these and other signs of mental distress.

According to the first results of the Desjardins Financial Security National Health Survey released today for National Mental Health Week (May 4-10), during which Canadians are encouraged to "Invest in yourself", a significant number of workers in Canada feel they have lost control of their lives as the economic recession grinds on, unemployment numbers rise and financial security appears to be evaporating.

The study found that one-third of those surveyed say they are more stressed now than a year ago. About 30 per cent of employees across Canada are experiencing anxiety, losing sleep, and/or suffering from headaches, muscle aches and other physical tension—symptoms which often precede more serious problems.

Among their worries, three of the most stressful aspects of their lives are associated with their employment—money, workload and job security. The vast majority (83 per cent) agree that they pay more attention to their personal finances and spending habits now than prior to the recession.

Employees appear to be working longer hours as 54 per cent feel the current recession is having an impact on their work/life balance. As well, 43 per cent are now concerned about losing their jobs.

Another sign that employees may be increasingly worried is their belief that the recession will last much longer than most economists are predicting. The survey found that 34 per cent believe the recession will last less than one year, while 47 per cent believe it will go on longer than a year.

“Clearly, many employees have lost confidence and this is showing up in all kinds of ways that could lead to more serious mental health problems down the road,” said Dr. Taylor Alexander, CEO of the CMHA’s National office.

In response to this deteriorating situation, the Canadian Mental Health Association (CMHA) is calling on all employers, in both the public and private sectors, to broaden access to and funding for mental health programs in the workplace.

“We’re currently reaching tens of thousands of people across the country through our programs, which give employers and employees alike the tools to deal effectively with stress, anxiety and depression. But, we could do so much more,” said Dr. Alexander.

Michele Nowski, Director, Disability Claims and Disability Management with Desjardins Financial Security, noted that a stressed-out workplace translates into increased presenteeism and absenteeism. This equates to increased short term disability claims for both physical and mental health issues. Mental health claims are the fastest growing category for days lost to disability in Canada.

“By investing in their workers, companies are investing in themselves. A mentally healthy workplace typically has fewer disability claims, lower absenteeism and better productivity,” said Nowski. "It really becomes a partnership between employees and employers because employees also have a responsibility to manage their health and stress levels."

This means giving their employees the tools to gain more control over their lives—such as engaging them in open communications, working in teams to find solutions, being supportive of those who are not coping well, offering flex hours and promoting a healthy work/life balance.

To tackle the rising incidence of workplace stress, employees need to take responsibility as well. For example, they should be talking with their employers when they see potential problems arising, maintaining their health, and focusing on their accomplishments and goals. Or they could be proactively exploring other career paths and networking to identify new job prospects.

About the Survey
SOM Surveys, Opinion Polls and Marketing conducted this web survey on behalf of Desjardins Financial Security between March 30 and April 15, 2009. In total, 1,062 interviews were conducted with a sample of Canadian workers who work for a company or organization with at least 10 employees. The data was weighted to reflect the distribution of the Canadian population in terms of the country’s main regions (Atlantic Provinces, Quebec, Ontario, the Prairies, British-Columbia), and by the joint age-gender population distribution in Quebec, Ontario and elsewhere in Canada. The data was also weighted to reflect the population distribution in terms of mother tongue and the proportion of adults who live alone in each of these same three regions.

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 to individuals and groups. Every day, over five million Canadians rely on Desjardins Financial Security to ensure their financial security. Desjardins Financial Security employs 3,800 people and administers $19.7 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.

About the Canadian Mental Health Association
The Canadian Mental Health Association National Office is a leading national voluntary organization within the mental health sector. For more than 90 years, it has existed to promote the mental health of all people in Canada and to serve mental health consumers, their families and friends through education, public awareness, research, advocacy and direct services. In addition to its National office, the CMHA has 11 provincial and territorial Divisions and some 135 Branches and Regions in communities across Canada.

To find more information about mental health, visit www.cmha.ca. To view Desjardins Financial Security’s survey, visit www.healthiscool.ca.

Desjardins Financial Security Launches Foresight, Group Retirement Savings Solution, Selects Morningstar as Independent Provider of Research, Data, and Portfolio Construction

Toronto (April 30, 2009) -- Desjardins Financial Security today announced the launch of ForesightTM, a unique group retirement savings/investment solution that combines the flexible and tailored group retirement savings solutions of Desjardins Financial Security with Morningstar's independent expertise in investment research and analysis. Each fund in a Foresight portfolio is carefully researched, selected and monitored by Morningstar Research Inc., the Canadian subsidiary of Morningstar, Inc. This is the first program of its kind in Canada and is truly a turnkey solution for small- to medium-sized businesses.

“Foresight is ideal for retirement plan sponsors and their employee participants because it provides accurate research and information about their funds. In this market, this type of investor information is empowering and reassuring,” said Gil McGowan, regional vice president of group retirement sales and development for Desjardins Financial Security. “Foresight is also well-suited for small- to medium-sized businesses because it takes the thinking out of retirement plan management. Instead of concentrating on their employees' retirement portfolios, they're able to concentrate on their businesses."

Morningstar has performed extensive research and due diligence on each of the funds on the Foresight platform, and the portfolios have been carefully constructed to ensure diversification and appropriate risk management. In total, plan participants can choose from 12 funds, six lifecycle portfolios, and three retirement paths.

“We’re pleased that Desjardins Financial Security has selected Morningstar for our independent research and analysis,” said Scott Mackenzie, president and chief executive officer of Morningstar Research Inc. “Our goal is to help investors make informed decisions, and plan participants will have peace of mind knowing they have clear investment choices based on Morningstar’s research and portfolio construction.”

Another key advantage of the Foresight solution is that it meets with Capital Accumulation Plan (CAP) guidelines. Desjardins Financial Security will assume responsibility for the entire plan implementation process and employee support, which includes training, communications, information, transaction tools, statements and reports. Morningstar is responsible for ongoing monitoring of the Foresight portfolios as well as the individual funds in the portfolios.

For more information, please visit www.foresightsolution.com.

About Morningstar
Morningstar Research Inc. is the Canadian subsidiary of Chicago-based Morningstar, Inc., a leading provider of independent investment research. The company offers an extensive line of Internet, software, and print-based products and services for individuals, financial advisors, and institutions. Morningstar provides data on more than 300,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 4 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. The company has operations in 19 countries and minority ownership positions in companies based in three other countries.

Desjardins Financial Security ("Desjardins") has retained Morningstar Research Inc. ("Morningstar"), a wholly owned subsidiary of Morningstar, Inc., to provide fund research, analytical, data compilation, and portfolio construction services for Desjardins' "Foresight Group Retirement Solution" program. Morningstar is providing consulting services only to Desjardins, and is not acting in the capacity as an advisor to investor clients of Desjardins.

Self-employed Canadians managing recession, but not managing risk

(Toronto) April 1, 2009 – Self-employed Canadians tend to have more debt and risk to manage than the average Canadian employee, but that is having limited effect on their stress and work levels during this recession, according to a survey conducted by Desjardins Financial Security.

Desjardins research indicates that self-employed Canadians are carrying more personal debt, excluding mortgages on their primary residence, than the average Canadian. Despite their heavier debt loads and the additional risk that it brings, a survey of self-employed Canadians, conducted the first week of March, found that self-employed Canadians remain split on the impact of the recession on their stress levels. Just more than half (56 per cent) feel their stress level is higher now compared to a year ago and fewer (44 per cent) feel it is harder to be competitive now compared to the start of the recession. However, 72 per cent of self-employed Canadians said they are not working significantly more hours since the start of the recession.

"It is encouraging that Canada’s self-employed are getting through the recession, however, the survey results also show that many are not doing enough to mitigate the risks particular to small businesses,” said Nathalie Tremblay, Health Products Manager, Individual Insurance, at Desjardins Financial Security. “People who start their own companies often tend to think like an employee with a benefits package, where most of the risk is covered by the company. When you run your own business, you are responsible for everything: your livelihood, employees, creditors, vendors and ultimately your family, so self-employed Canadians need to use different tools to protect their interests."

Risky Business

While 85 per cent of Canadians carry a debt load of $25K or less, just over half of self-employed workers claimed their debt was in this bottom category. At the top end of debt levels, only five per cent of Canadians at large have more than $50k of debt, compared to 21 per cent of self-employed Canadians who have more than $50k of debt.

According to the survey, the majority of self-employed Canadians said they own health insurance, like most Canadian employees. However, fifty-four per cent of respondents said they didn't have enough disability coverage and 80 per cent said they were not familiar with business expense insurance.

This spring, DFS launched a new suite of insurance products specially designed for self-employed Canadians. The Solo portfolio offers four customized products allowing almost all small business owners to ensure their businesses remain solvent in case of illness, accident or personal injury. Coverage includes disability income, business expense, living expenses and accident disability income.

"We found that a common misconception among small business owners is about the coverage in case of disability from the spousal group plan. In fact, it is the case for health care expenses not covered under the provincial health program but personal disability cannot be provided by the spousal group plan," said Tremblay. "Small business owners should consider a disability insurance coverage to replace their income in case of disability and business expense insurance to keep businesses solvent in case of unforeseen circumstances.” The new Solo suite provides both.

For more information about Desjardins Financial Security’s products for small business owners and self-employed Canadians, including disability insurance and business expense insurance, visit: www.dfs.ca/solo.

About the Survey
The Desjardins Financial Security Survey on Self-Employed – Small Business Owners: 2009 edition was conducted by Ipsos Reid Public Affairs on behalf of Desjardins Financial Security between March 3 and 9, 2009. In total, 1,010 interviews were conducted with a representative sample of Canadian adults that are self-employed or owners of a small business. The margin of error on a sample size of 1,010 respondents is ±3.1%,19 times out of 20, of what they would have been had the entire population been polled. Data for the Ipsos Reid Online Omnibus are collected through a random sampling of the 241,000+ member national Ipsos Reid online panel.

Both the survey invitation list and the returned data are weighted to reflect the composition of the general Canadian population. Data was also weighted to reflect the self-employed and the small business owners' population. The comparative data about average Canadian employees came from the 2008 DFS retirement and Health is Cool! Surveys.

Group RRSPs holding strong in the face of economic turmoil

Montréal, February 25, 2009 – The 2009 RRSP season is almost over and many group retirement savings plan members are getting ready to make their final contribution for the 2008 taxation year. Despite the hard economic times, Desjardins Financial Security's January 2009 RRSP campaign indicators show that Desjardins Financial Security plan members contributed slightly more to their RRSPs than a year earlier and that the anticipated rush toward safer investment vehicles, like guaranteed investment certificates (GICs), is not going to happen.

A panic averted

In spite of the significant number of lay-offs announced at the beginning of the year and the fact that many major employers were not able to pay bonuses to their employees for the first time in many years, the percentage of RRSP contributions as compared to total contributions, which was 36 per cent in January 2008, rose to 44 per cent in January 2009.

"Since the markets were performing so poorly at the end of 2008, we were expecting more calls in the first few months of 2009 from unhappy or disappointed clients, but this wasn't the case. Most of the people who contact us want to be reassured about their investment choices," said François M. Desjardins, a team lead in Desjardins Financial Security's Group Retirement Savings Customer Contact Centre. "This year, we're more educators than service providers to members. Our clients are more interested in knowing our take on the current situation."

Is a GIC in hand better than two funds in the bush?

In 2007, the percentage of deposits invested in Guaranteed Investment Certificates (GIC) divided by total deposits invested in RRSPs was 7.4 per cent. In 2008, it was 8 per cent. In January 2008, of the total deposits made, 8.1 per cent were invested in GICs, whereas in January 2009, it was 7.5 per cent.

"Even though 48 per cent of Canadians told us last fall in our 2008 Rethink Retirement survey that capital guarantees would now be a very important factor when they choose savings and investment products, the members I see every day have adopted a more rational approach," indicated Karrina Dusablon, Director, Education Centre and Global Management Group Retirement Savings. "They aren't necessarily ready to trade higher performance potential for a bit less risk. For many of them, retirement is still very far off and they're prepared to wait until economic conditions improve."

About Desjardins Financial Security
Desjardins Financial Security is a subsidiary of Desjardins Group, the largest integrated cooperative financial group in Canada, and specializes in providing life insurance, health insurance and retirement savings products to individuals and groups. Every day, over five million Canadians rely on Desjardins Financial Security to ensure their financial well-being. Desjardins Financial Security employs nearly 3,900 people and administers over $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.

Saving is the new black

Canadian women determined to make the most of what they have in 2009

Toronto, January 26, 2009 – As the current economic situation continues to take its toll on everyone's pocketbook, Canadian women have more incentive this year to take charge of their financial future. While the recent Rethink Retirement survey by Desjardins Financial Security reveals that half of Canadian women are considering postponing retirement by an average of six years due to market conditions, it also shows that women aren't simply accepting these setbacks. In fact, women are adopting a more take-charge, can-do attitude towards their finances while making the most of what they have.

Debunking the myths about women and money

While more men than women have traditionally been involved in financial matters, the picture is changing: 20 per cent of women admitted having little or no interest in preparing for retirement, compared to 27 per cent of men; 55 per cent said they hate being told that they are not saving enough for retirement, compared to 62 per cent of men; and only 31 per cent said they would rather not know how much they need to save, compared to 37 per cent of men.

"Women may be getting over what you could call the Sex and the City money mentality, where the main characters did not give much thought to saving for a rainy day," said Karrina Dusablon, Director, Education Centre and Global Management at Desjardins Financial Security. "Budgeting and putting money aside for retirement are hardly sexy plot themes, but many smart and successful women are becoming more financially-savvy, and that's good."

More action, less guilt

Thirty-six per cent of women admit to feeling guilty that they are not saving enough for retirement and 38 per cent believe they will never be able to accumulate enough retirement savings. These two results are likely contributing to why money is still the most often cited source of stress among men and women. However, many Canadian women have said they are prepared to make the following changes to save more for retirement:

84 per cent would postpone a major purchase to avoid relying on financing or credit;
79 per cent would take less expensive vacations;
69 per cent would bring lunch from home rather than eating at a restaurant;
66 per cent would significantly reduce the use of their car;
61 per cent would reduce spending on sports or cultural activities; and
56 per cent would consider getting rid of the household's second car.

The only compromise that six out of ten women seemed reluctant to make in the name of financial improvement was reducing spending on children's activities, compared to 68 per cent of men.

What next?

Budgeting seems to be on many women's minds with 28 per cent of respondents mentioning it as their number one financial priority in 2009, while 24 per cent said they would make it a priority five years from now. Paying off the mortgage and other debts were mentioned second as a priority this year among 14 per cent of respondents respectively. Almost 20 per cent of women said they would focus on saving for retirement and 12 per cent on paying off their mortgages five years from now.

"Every new year, women tend to make resolutions about improving their health and wellness,” said Ms. Dusablon. “We'd suggest that women pay special attention to their financial health by making one simple financial improvement in 2009. For example, always pay for food, including restaurant meals, in cash. Also, if you are already contributing the maximum amount to your RRSP, consider opening a Tax-Free Savings Account (TFSA) with what you have saved as the result of your cost-cutting measures. The best thing about financial fitness is that you get immediate gain with very little pain."

For more information on simple strategies to improve your financial well-being in 2009, please visit: http://www.rethinkretirement.ca/.

About the Survey
SOM Surveys, Opinion Polls and Marketing conducted the survey on behalf of Desjardins Financial Security between June 26 and August 12, 2008. In total, 2,217 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 2.4 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.

SOM Surveys, Opinion Polls and Marketing conducted another survey on behalf of Desjardins Financial Security between October 21 and 23, 2008. In total, 1,150 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 1.4 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.