Financial Results
Organization and Structure
Products and Services
New Contracts
Surveys
Miscellaneous
2003 Third Quarter Financial Results
Desjardins Financial Security sustains strong growth
Toronto, November 17, 2003 - Desjardins Financial Security reports a 22.8 per cent increase to $29.2 million in net earnings for the third quarter of 2003, up from $23.8 million reported the same time last year. Income from insurance premiums and annuities rose nine per cent to
$485 million in the third quarter of 2003, compared to $444.2 million a year earlier.
For the nine months ended September 30, 2003, net earnings were up 30.7 per cent at
$78.5 million, from $60.1 million a year earlier. The share of earnings attributable to the shareholder was $72.1 million compared to $55.1 million in 2002, for ROE of 13.6 per cent, up sharply from 11 per cent in the third quarter of 2002. Lastly, income from insurance premiums and annuities totalled $1.47 billion, up 12.1 per cent.
Higher sales, favourable underwriting experience across most business lines, the stock market recovery as well as strict control of administrative expenses enabled Desjardins Financial Security to post continued growth and, once again, positive earnings in the third quarter of 2003. It should be noted that the upcoming sale of the Bahamas division, announced on
November 3, 2003, had no impact on the third quarter financial results.
Commenting on the significant improvement in return on equity, Monique F. Leroux, president of Desjardins Financial Corporation and chief executive officer of Desjardins Financial Security said, "Desjardins Financial Security's strategy focused on ensuring its growth in the Quebec market and positioning itself nationally as one of the five leading Canadian insurers in 2005. Consequently, the results of the past three quarters will help us attain our yield, growth, productivity and development objectives outlined in our strategic plan."
"We posted excellent results in the third quarter in terms of individual annuities, with sales up 34.7 per cent from one year ago. This reflects the trend among consumers to opt for products that offer safer returns. As for the individual and group insurance sectors, their operating results surpassed projections. Additionally, profitability was up across all Canadian distribution networks from a year ago," added François Joly, president and chief operating officer of Desjardins Financial Security.
Performance by business line
Group insurance - Group premiums totalled $344.5 million, up 13.1 per cent from the same quarter last year. At $996.2 million, they have hovered close to the billion-dollar mark since the beginning of 2003. Group product sales exceeded projections, totalling $89.1 million for the first nine months of the year. This sector's profitability also reflects favourable underwriting experience during this period.
Individual insurance - With sales of $9.4 million in the last quarter, individual insurance sales totalled $27.9 million for the first nine months of 2003, up slightly from the same period last year. In addition, sales by DFS financial security advisors to caisses Desjardins members during the first nine months of the year rose 20.9 per cent from the year-earlier period.
Annuities and savings products - Annuities and savings products were up sharply in the third quarter from $53.6 million in 2002 to $73.3 million, an increase of 36.7 per cent from third quarter last year. The more than $10 million increase in individual annuities largely contributed to sector growth.
About Desjardins Financial Security
Desjardins Financial Security specializes in life and health insurance including retirement savings products and is the fifth largest life and health insurer in the Canadian market. More than 5 million Canadians count on Desjardins Financial Security every day for their financial security needs. A member of the Desjardins Group, Desjardins Financial Security has offices in all major cities across the country, including Vancouver, Calgary, Regina, Winnipeg, Toronto, Ottawa, Montreal, Quebec City, Lévis, Halifax and St. John's.
2003 Second Quarter Financial Results
Desjardins Financial Security Records a 39.8% Increase in Net Income and a 13.7% Increase in Premium Income
Lévis, August 12, 2003 - Desjardins Financial Security recorded a 39.8% increase in net income for the second quarter of 2003, up from $19.6 million to $27.4 million year-over-year. Income from insurance premiums and annuities rose 13.7%, to $480.9 million in the second quarter of 2003, compared to $422.8 million for the year-earlier period.
For the six-month period ended June 30, 2003, net income was up 35.9% at $49.3 million, compared to $36.3 million a year earlier. The share of net income attributable to the shareholder was $46.1 million compared to $31.8 million in 2002, for ROE of 13%, up sharply from 9.6% for the year-earlier period. Income from insurance premiums and annuities was up 13.6% at
$985.7 million, just short of the billion-dollar mark.
These results are mainly attributable to growth in sales, favourable underwriting experience across all business lines and excellent control of administrative expenses. Thus, all business lines in Canada reported substantially higher earnings.
"Our excellent second quarter results validate the relevance of our strategies and demonstrate the strength of our momentum in terms of growth, profitability and return," declared
Monique F. Leroux, President of Desjardins Financial Corporation and Chief Executive Officer of Desjardins Financial Security. "Thus, the sharply improved ROE meets the shareholder's expectations."
"Our success in terms of sales is undeniable," noted François Joly, President and Chief Operating Officer. "Insurance sales in the second quarter were up 51.8% over 2002, while sales of individual retirement savings products have already exceeded 2002 total sales".
Performance by Business Line
Group Insurance - This business line continued to post strong growth. Insurance sales in the second quarter increased 85.5% from 2003, up from $15.9 million to $29.5 million in 2002. Premiums rose 12.6%, to $331 million. Growth was mainly in the Canadian 1,000 member plus group market, with seven major groups joining up since the beginning of the year.
Group Savings - Group savings products sales for the general fund and segregated funds totalled $6.4 million compared to $3.4 million in 2002. Premiums rose from $6.5 million to
$15 million. Major efforts to develop the market outside Quebec proved successful as sales year-to-date tripled from 2002.
Individual Insurance - Individual insurance products sales reached $9.5 million in the second quarter of 2003, largely unchanged from the year-earlier period. Sales to Desjardins caisses members by DFS's financial security advisors reached $2.8 million, up 21.7% over the year-earlier period. Premiums in the second quarter of 2003, at $93 million, were the same as for the year-earlier quarter.
Individual Annuities - This sector sustained the growth pace evident during the RRSP campaign. Sales of individual annuity products rose 40%, totalling $46.1 million in the second quarter. Increasingly, consumers are opting for products such as annuities, which offer a more steady return compared to stock market performances. Sales of segregated funds were down over the previous year.
About Desjardins Financial Security
Desjardins Financial Security is a subsidiary of the Desjardins Financial Corporation, specialized in life and health insurance and retirement savings products. Over five million Canadians depend on us each day for their financial security. Desjardins Financial Security employs 3,530 people and manages $13 billion in assets. As part of Desjardins Group, Desjardins Financial Security has offices in several cities across the country, including Vancouver, Calgary, Regina, Winnipeg, Toronto, Ottawa, Montreal, Quebec City, Lévis, Halifax and St. John's. It is also present in the Bahamas through its Imperial Life Financial division.
2003 First Quarter Financial Results
Desjardins Financial Security Records a 31 Per Cent Increase in Net Earnings and a 13.5 Per Cent Increase in Premium Income
Toronto, May 13, 2003 - Desjardins Financial Security recorded a 31 per cent increase in net earnings to $21.9 million for the first quarter of 2003.This figure is up from $16.7 million recorded in the first quarter of 2002. The share of earnings attributable to shareholders was $19.9 million, a 44% increase, corresponding to an 11.4% return on shareholder's equity. Income from insurance premiums and annuities rose dramatically by 13.5 per cent to $504.8 million in the first quarter of 2003 compared to $444.8 for the same period one year ago.
"Desjardins Financial Security's results for the first quarter are very satisfactory with regard to increased profits and return on shareholders' equity," said Monique F. Leroux, President of the Desjardins Financial Corporation and Chief Executive Officer of Desjardins Financial Security. "This improvement is due to our efforts to control our operating costs as well as business growth."
"In terms of operating costs, all lines of business posted excellent results," said François Joly, President and Chief Operating Officer for Desjardins Financial Security. "These results correspond to Desjardins Financial Security's strategic orientations. We are particularly proud to have gained considerable ground in our national development of group insurance with significant expansion in British Columbia and a marked improvement of our Individual Network's profits. We also vigorously continued our caissassurance offer in Quebec."
Performance by Line of Business
Group Insurance - Group insurance sales were $44.2 million compared to $49.9 million in 2002. The Public Education Benefit Trust Fund group contributed $8 million in sales this quarter. In comparison, the City of Montreal group contributed $20 million in sales one year ago, which was instrumental in the sales results recorded for that period. This sector's rapid growth over the last two years is due to the sustained efforts of the sales force and the excellent reputation of our customer service.
Individual Insurance - Individual insurance sales were $9 million in the first quarter of 2003, up slightly from the first quarter of 2002. Sales to members of Desjardins caisses by DFS financial security advisors were $2.9 million compared to $2.1 million for the same period last year.
Group Savings - Group savings products sales for the general account and segregated funds were $22.1 million compared to $41.8 million in 2002. Last year's excellent performance can be attributed to the Université du Québec - Teaching Faculty contract, which contributed
$29.5 million to the total results.
Individual Annuities - Individual annuities products sales increased sharply, with $93.8 million compared to $78.3 million for the same period last year. Because of market conditions, consumers turned to products that, like annuities, provided a safer investment during the RRSP season. Segregated funds sales are behind last year's.
About Desjardins Financial Security
Desjardins Financial Security is a subsidiary of the Desjardins Financial Corporation, specialized in life and health insurance and retirement savings products. Over 5 million Canadians depend on us each day for their financial security. Desjardins Financial Security employs 3,530 people and manages $13 billion in assets. As part of the Desjardins Group, Desjardins Financial Security has offices in several cities across the country, including Vancouver, Calgary, Regina, Winnipeg, Toronto, Ottawa, Montreal, Quebec City, Levis, Halifax and St-John's. It is also present in the Bahamas through its Imperial Life Financial division.
2002 Annual Financial Results
Desjardins Financial Security shows growth in all lines of business
Levis, February 17, 2003 - Desjardins Financial Security posted net earnings of $79.2 million as at December 31, 2002, compared with $72 million in 2001, an increase of 10 per cent. This is the result of excellent profitability of the current business that experienced generalized growth. Sales of group insurance and group retirement savings products were up 48 per cent and 25 per cent respectively. The individual insurance sector showed a 12 per cent increase due mainly to a 64 per cent increase in individual insurance sales to caisse members through the Company's financial security advisors.
"Ranked 7th among insurers in Canada, Desjardins Financial Security is becoming more and more a dynamic force on the Canadian scene of insurance and financial services companies, declared Monique F. Leroux, president and chief executive officer of the Desjardins-Laurentian Financial Corporation and Chief Executive Officer of Desjardins Financial Security. In 2002, Desjardins Financial Security experienced significant growth in all its lines of business, especially in the area of group sales in the Canadian market. Its growth outlook for the current year is very promising."
François Joly, president and chief operating officer, is pleased with the successes of 2002. "This is the first full year of operation for Desjardins Financial Security since the merger of Desjardins-Laurentian Life Assurance and Imperial Life. The merger has given us the means to continue our development and improve our efficiency. In terms of business growth, we have reached new heights, thanks to the commitment of all our staff and the contribution of all our lines of business. In terms of accomplishments, many projects that we believe to be extremely important were also started."
The share of profits attributable to the shareholder, The Desjardins-Laurentian Financial Corporation, was $70.4 million, up 4.3 per cent compared to $67.6 million in 2001. This result corresponds to a return on shareholder's equity of 10.8 per cent, slightly higher than that recorded in 2001. The share of profits attributable to participating policyholders went from
$4.4 million in 2001 to $8.8 million in 2002. This increase is mainly due to investment income, which helped increase the return from participating business, improved claims experience and preservation of business.
As a precaution, given the uncertainty of financial markets in 2002, the Company increased its provision for investment assets. Without this provision, net earnings would have been
$93.3 million.
Business growth by line of business
Premium income - Income from insurance and annuities was $1.8 billion, compared with
$1.6 billion in 2001, an increase of 9.4 per cent.
Group insurance - Group insurance sales grew 48 per cent in 2002 to $135.4 million compared to $91.7 million in a year earlier. For two years, this sector has grown thanks to the sustained efforts of the sales force and the good reputation of our customer service. Together, these factors favoured the signing of groups of 1,000 or more employees. including CGI, Ottawa Carleton Elementary Teachers and Concordia University. This growth is expected to continue in 2003 with the coming into force of other contracts sold during the year. Enrolment in caissassurance products such as Loan Insurance, Line of Credit Insurance and the Homeowner Plus Option has also helped boost premiums significantly.
Individual insurance - Sales of individual insurance products increased from $33 million in 2001 to $37 million in 2002, up 12 per cent. This growth is due mainly to the sale of life and health insurance to Desjardins caisse members by the Company's financial security advisors, up 64 per cent from 2001. Furthermore, the introduction of four new products such as Family Advantage, Solo Health, MAX Life and Wealth Builder also significantly contributed to this increase.
Group retirement savings - Posting an increase of cent, the group savings sector, which pools the sums invested by clients, both in the company's general account and in segregated funds, generated sales of $75.5 million in 2002, compared with $60.7 million in 2001. The increase is, in part, attributable to the signing of a major group, the Université du Québec-Teaching Faculty, which enabled substantial sales of accumulation products to the tune of $30 million.
Individual annuities - Up 8.3 per cent despite stock market uncertainty, the sales of individual annuities were $160 million in 2002, compared with $147.7 million in 2001. Since consumers were opting increasingly for safer investments, the introduction, at the beginning of 2003, of the new Strategic Index Plus 108% that guarantees a return of one hundred and eight percent at maturity, is intended to fill this need for safer investments.
Individual segregated funds - The second biggest drop in markets in 100 years continued to impact the sale of individual segregated funds in 2002. Sales totaled $69.9 million, down
$23.1 million compared with 2001. The drop is, however, twice as small than that recorded in the mutual fund industry, according to Investor Economics, an independent research firm.
Assets under management
Assets under management were $13 billion, compared with $13.3 billion in 2001.
Solvency
The ratio of capitalization compared with the Minimum Continuing Capital and Surplus Requirements (MCCSR) greatly exceeds the ratio required by regulatory bodies and meets the objectives of the company. Furthermore, the Company is satisfying all the requirements of CompCorp.
Awards and honours received in 2002
In 2002, numerous awards recognized the service and innovation efforts of Desjardins Financial Security, its employees and the members of its sales force. Here are a few examples:
- "Best of Show" award in the 2002 Consumer WebSite category for the company Website, from The Life Communicators Association. This organization is prominent North American association of life insurance communicators. The judges were particularly impressed by the display of Desjardins Financial Security products and services on the site, as well as the calculators consumers use to define their financial situation and financial security needs.
- International award of excellence from the Life Office Management Association (LOMA), an organization that provides life and health insurance training programs, for the performance of our employees on their exams and the excellent quality of our training activities.
- Golden Arrow Award from the Direct Marketing and Customer Relationship Association for the thoroughness and unique operating procedure of our Direct Distribution Centre.
- "Special Bell Prize" at the 2002 Mercuriades Gala, awarded to WEBI, a virtual office for the representatives of Services financiers SFL and Laurentian Financial Services across the country.
- Finalist in the 2002 Mercuriades Awards, Human Resources Training and Development category, for our in-house training school targeting our financial security advisors assigned to Desjardins caisses.
- Finalist in the 2002 Mercuriades Awards, Client Orientation category, for our innovative approach to offering life and health insurance products in caisses.
About Desjardins Financial Security
Subsidiary of Desjardins-Laurentian Financial Corporation, Desjardins Financial Security is a company specialized in life and health insurance and retirement savings. More than 5 million Canadians count on us daily for their financial security. Desjardins Financial Security employs
3,530 employees and manages $12.9 billion in assets. As part of the Desjardins Group, Desjardins Financial Security has offices in several cities throughout the country, including Vancouver, Calgary, Regina, Winnipeg, Toronto, Ottawa, Montreal, Quebec City, Levis, Halifax and St-John's. It is also present in the Bahamas through its Imperial Life Financial division.
Desjardins Financial Security Selling its Bahamas Operations
Toronto, November 4, 2003 - Desjardins Financial Security announced today that it has signed an agreement with Colina Insurance from the Bahamas for the sale of the operations of its Imperial Life Financial Bahamas division. The transaction is subject to approval by Bahamian regulatory authorities and other conditions.
Imperial Life Financial has been operating in the Bahamas for over 104 years where it has offered life and health insurance and retirement savings to individuals, groups and businesses. Imperial Life Financial Bahamas division represented less than three per cent of Desjardins Financial Security assets under management.
"For several years now, Desjardins Financial Security has been focusing on developing its business in Canada and this transaction is in line with this strategy. It is also with tremendous pride that we are transferring a legacy of more than 100 years of operations in this community to a Bahamian institution," said Monique F. Leroux, President of Desjardins Financial Corporation and Chief Executive Officer of Desjardins Financial Security.
The proceeds from the sale of DFS' assets in the Bahamas, the amount of which will not be disclosed, will contribute to DFS's focus on developing its business in Canada.
About Colina Insurance Company
Colina Insurance Company Limited is the largest insurer in the Bahamas providing individual and group life. Colina Insurance is a member of the Colina Financial Group, which is a diversified Bahamian based financial services group with total assets under management in excess of US$1 billion. In addition to life and health insurance, CFG provides property and casualty insurance, investment management, mutual fund administration, offshore trust services, international private banking and corporate services.
About Desjardins Financial Security
Desjardins Financial Security, is a subsidiary of the Desjardins Financial Corporation specialized in life and health insurance and retirement savings. More than five million Canadians count on us daily for their financial security. Desjardins Financial Security, Canada's fifth largest insurer, has 3,530 employees and manages $13 billion in assets. As part of the Desjardins Group, Desjardins Financial Security has offices in several cities across the country, including Vancouver, Calgary, Regina, Winnipeg, Toronto, Ottawa, Montreal, Quebec City, Levis, Halifax and St-John's.
Desjardins Financial Security adopts a sector-based structure Organization restructured with stronger customer focus
Lévis, August 25, 2003 - Desjardins Financial Security revamped its organizational structure to focus more on business sectors than on distribution networks. This new arrangement, which is a reflection of the Company's strategic orientations, makes the client the focal point of each business sector.
Each business sector has full control over all activities impacting its objectives, regardless if they occur before or after the sale, this includes product design and customer service, or whether they affect product distribution directly.
The Company's senior management and the shared services department remain unchanged. As president of Desjardins Financial Corporation, the parent company of Desjardins Financial Security, Monique F. Leroux is the Chief Executive Office for the insurer. The President and Chief Operating Officer is François Joly. Shared services include the following divisions:
E-Business and Technology (Constance Lemieux, Senior Vice-President), Actuarial, Finance and Corporate Services (Richard Fortier, Senior Vice-President), and Human Resources and Organizational Development (Louis Chassé, Senior Vice-President).
Four new business sectors
The four new business sectors target four distinct clienteles: Individual Insurance, Savings and Segregated Funds, Group and Business Insurance and lastly AssurFinance for Institutions, AssurDirect and Desjardins Relations.
Under the direction of Denis Berthiaume, Senior Vice-President, the new Individual Insurance sector encompasses the activities of the former Individual Network, as well as AssurFinance for individuals.
All activities related to savings for groups and businesses, savings products for individuals and Millennia III segregated funds fall under the Savings and Segregated Funds sector, lead by Senior Vice-President Monique Tremblay.
These two aforementioned business sectors are encompassed by the Business Development, Individual Insurance and Savings senior executive division, which is specifically responsible for developing insurance and savings business, including segregated funds, nationally. This unit is headed up by Executive Senior Vice-President Robert St-Denis.
The following two business sectors report directly to the President and Chief Operating Officer, François Joly, as do the shared services department.
The Group and Business Insurance sector is responsible for all activities of the former Group Network, as well as AssurFinance offered to business members of the Desjardins caisses. This sector is headed up by Senior Vice-President Alain Thauvette.
The AssurFinance for Institutions, AssurDirect and Desjardins Relations sector deals specifically with products distributed through the Desjardins caisses, such as loan insurance. This sector is also responsible for direct distribution and Desjardins Financial Security's business relations with the other Desjardins Group components, and for coordinating the offer of products and services to the network of caisses. It operates under the direction of Senior Vice-President Louise Turgeon.
In addition to reflecting changes in the insurance and financial services industry, this new structure accounts for the retirement of two senior managers: Camille Fortier, formerly Executive Senior Vice-President, Desjardins Network, and Gilles Juneau, formerly Senior Vice-President, Customer Service. At meetings held upon their departure, the Company's senior management highlighted the remarkable contribution of these two senior managers and wished them well in this new phase of their lives. The new positions were filled by managers already in place, and the restructuring did not lead to any layoffs.
About Desjardins Financial Security
Specializing in life and health insurance and retirement savings products, Desjardins Financial Security is a company upon which over five million Canadians rely every day for their financial security. Desjardins Financial Security is a subsidiary of Desjardins Financial Corporation that employs 3,530 people and manages $13 billion in assets. A member of the Desjardins Group, Desjardins Financial Security has offices in several cities across the country including Vancouver, Calgary, Regina, Winnipeg, Toronto, Ottawa, Montreal, Quebec City, Lévis, Halifax and St-John's. It also has operations in the Bahamas through its Imperial Life Financial division.
"It pays to be wise"
Desjardins Financial Security launches premier national ad campaign
Toronto, May 8, 2003 - Desjardins Financial Security will issue wise words to Canadian financial professionals beginning in May through a national print media campaign targeting business and insurance-trade magazines, national daily newspapers' insurance supplements and selected Websites.
The "It pays to be wise" advertising campaign is designed to increase awareness of Desjardins Financial Security's name as the company fulfills its mandate to expand across Canada. Seventy per cent of the media buy will appear outside of the province of Quebec. The remaining 30 per cent is targeted for Quebec-based media. This is the first Canada-wide corporate advertising campaign for the Desjardins Group, the sixth largest financial institution in Canada with more than $90 billion in assets. Desjardins Financial Security is the life and health assurance subsidiary of Desjardins Group.
"The 'It pays to be wise' campaign embodies the set of values Desjardins Financial Security incorporates into its corporate culture each day," says Daniel Roussel, vice president of public affairs, advertising and communications for Desjardins Financial Security. "We designed the campaign to incorporate inserts that can be included in magazines to describe the company, its mandate and culture and its services. Additionally, we have print ads that will appear in appropriate print media and on Internet sites that promote the company or specific products and a 20-page booklet entitled Wise Words."
The campaign will roll out with 800,000 copies of the insert that presents the company's values and that summarizes the booklet, Wise Words. This booklet serves as a calling card and explains, quite simply, Desjardins Financial Security's value offer and sets out the company's operating blueprint so the customer understands the strength of the firm. It will be available to new and prospective clients, financial advisors and independent brokers.
The print campaign continues with a mix of advertisements in targeted media to promote Desjardins Financial Security as a manufacturer and provider of life and health insurance products and retirement savings plans. The promotion will also focus on each of the company's different divisions such as group insurance, individual insurance and investment planning.
Coordination for the "It pays to be wise" campaign was handled through Desjardins Financial Security's internal advertising agency with the assistance of external suppliers.
Desjardins Financial Security specializes in life and health insurance including retirement savings products and is the seventh largest life and health insurer in the market. More than five million Canadians count on Desjardins Financial Security every day for their financial security needs. A member of the Desjardins Group, Desjardins Financial Security has offices in all major cities across the country, including Vancouver, Calgary, Regina, Winnipeg, Toronto, Ottawa, Montreal, Quebec City, Lévis, Halifax and St. John's.
Desjardins Financial Security is expanding its network of medical clinics and hospitals in Florida and offers new emergency return trip coverage
Snowbirds
Levis, October 8, 2003 - People insured with Desjardins Financial Security (DFS) who are travelling to Florida this winter can count on an even larger number of medical establishments for emergency medical care. Indeed, DFS has added several establishments to its network of medical clinics and hospitals at this sunny destination in anticipation of the 2003-2004 snowbirds season. New emergency return trip coverage is also being offered.
In total, Desjardins Financial Security is counting on the services of some 3,000 medical clinics and hospitals in the United States.
Most often, these establishments are part of a private network (Private Provider Organisation). By entering into an agreement with these establishments, we can set up various administrative processes in advance. In this way, our insureds are sure to obtain the emergency health care they need without having to pay upfront when they visit one of these establishments.
This winter, half a million Canadian snowbirds, most of whom are retired, will take a trip abroad for several weeks or months. Purchasing travel insurance is part of the essential travel arrangements to be made.
Emergency Return Trip
Finally, a new return trip plan is now offered to all insureds who purchase travel insurance from Desjardins Financial Security (long stay). This new coverage allows the leisure traveller to return home in case of the death or hospitalization of a family member (or the spouse's family member) or in the case of a natural disaster involving his home (or his business), and then return to the place where he was vacationing. These unexpected travel expenses are paid by DSF.
A Word About Desjardins Financial Security
Desjardins Financial Security, a subsidiary of the Desjardins Financial Corporation, specializes in life and health insurance and retirement savings plans. More than 5 million Canadians depend on it every day to ensure their financial security. Desjardins Financial Security has
3,530 employees and manages assets of $13 billion. A component of the Desjardins Group, DFS has offices in several cities in Canada: Vancouver, Calgary, Regina, Winnipeg, Toronto, Ottawa, Montreal, Quebec City, Levis, Halifax and St-John's. It is also present in the Bahamas, where it is represented by its division of Imperial Life Financial.
Retirement Dreams Attainable with New Registered Savings Products Guaranteeing 8% from Desjardins Financial Security
Also, product for non-registered savings now available
Toronto, January 21, 2003 - Positive returns in a bear market and limited market volatility are available to investors in their RRSPs and in their investment portfolios with the new Strategic Index Plus 108%, guaranteeing a minimum yield of eight per cent at maturity for RRSPs, and a three-year non-registered Index Plus Tactic hedge-fund GICs.
The new registered Strategic Index Plus 108% has a 100 per cent capital guarantee at death and a guaranteed minimum yield of eight per cent at maturity.
"The Strategic Index Plus 108% is designed for strong returns with minimal volatility. Worst-case, for every $100 invested, contributors will receive a minimum of $108 at the end of the
8-year period. We are reducing their downside risk, while still offering equity-type returns," explains Michael Aziz, regional vice president for savings products at Desjardins Financial Security. "With this guarantee, investors can rest easily and introduce stability in to their RRSP portfolios.
"The three-year Index Plus Tactic is an ideal product for those interested in securing their investments from the market's swinging pendulum, giving investors peace of mind when they're saving for a down payment on a house or a car."
The three-year Index Plus Tactic offers a capital guarantee of 75 per cent at maturity and 100 per cent at death. The reintroduction of this sophisticated diversification tool is perfect for investors who need medium-term liquidity.
" Strategic Index Plus and Index Plus Tactic are designed to return positive returns in both bull and bear markets," says Aziz. "The diversification provided by Strategic Index Plus and Index Plus Tactic is unique in the market. Their return is linked to the performance of portfolios made of more than 65 hedge funds for Strategic Index Plus and 50 hedge funds for Index Plus Tactic. Thus, their sophisticated strategic diversification not only includes a single strategy, like managed futures arbitrage, but also includes broader strategies such as convertible and fixed-income arbitrage, long and short-term equity positions, event-driven arbitrage, managed derivatives, statistical arbitrage and volatility arbitrage."
The annualized returns for the Strategic Index Plus, eight-year-term, was 5.12% for the campaign beginning April 1, 1999 and 6.08% for the October 1, 2002 campaign. For Index Plus Tactic the return was 3.73% and 7.44% for the campaigns beginning November 1, 2001 and October 1, 2002 respectively (both eight-year terms). "These returns bode well when compared to the market indices, which have seen double-digit negative returns during the last three years," adds Aziz.
Also new this year for the Index Plus Tactic is the taxation at maturity feature. Beginning in 2003, investors can defer tax payment until maturity of the contract instead of receiving a tax slip at the end of each year, simplifying tax calculations and payments.
Strategic Index Plus 108% and the three-year non-registered Index Plus Tactic hedge fund GIC are available through Laurentian Financial Service representatives or through financial advisors across Canada.
Desjardins Financial Security specializes in life and health insurance including retirement savings products and is the seventh largest life and health insurer in the market. More
than 5 million Canadians count on Desjardins Financial Security every day for their financial security needs. A member of the Desjardins Group, Desjardins Financial Security has offices in all major cities across the country, including Vancouver, Calgary, Regina, Winnipeg, Toronto, Ottawa, Montreal, Quebec City, Lévis, Halifax and St. John's.
Desjardins Financial Security Selected to Administer Long-Term Disability Benefits For Public Education Benefits Trust's 14,000 Employees
Toronto, March 27, 2003 - Desjardins Financial Security received the Public Education Benefits Trust long-term disability contract to cover 14,000 unionized school district support workers in British Columbia. The Trust provides a government-funded long-term disability plan for the Canadian Union of Public Employees (CUPE) support workers. The agreement represents an
$8 million annual Administrative Services Only contract, which went into effect March 1, 2003.
"This is our largest long-term disability client in British Columbia," says Dan Poole, vice president of sales for the Group Network's insurance division in Atlantic, Ontario and Western Canada. "Desjardins Financial Security's reputation for professionalism combined with the level of expertise and knowledge of the team to serve and meet the needs of the Public Education Benefits Trust were influential factors in the decision."
Sales for the group insurance network reached record levels in 2002, continuing the growth that began in 2001. This division of Desjardins Financial Security experience an increase of 48 per cent over 2001 figures, surpassing the $135 million mark in an environment characterized by downward market pulls. In 2001, sales were 52 per cent higher than the year before.
The Public Education Benefits Trust is a joint Trust between CUPE and the British Columbia's Public School Employers' Association (BCPSEA). It was established to provide health and welfare benefits to members.
Desjardins Financial Security specializes in life and health insurance including retirement savings products and is the seventh largest life and health insurer in the market. More
than 5 million Canadians count on Desjardins Financial Security every day for their financial security needs. A member of the Desjardins Group, Desjardins Financial Security has offices in all major cities across the country, including Vancouver, Calgary, Regina, Winnipeg, Toronto, Ottawa, Montreal, Quebec City, Lévis, Halifax and St. John's.
Canadians Ill-Prepared to Pick Up Healthcare Costs Throughout Life
Forty Per Cent Of Canadians' Financial Futures Head For Life Support
Toronto, Oct. 27, 2003 - Canadians could see their dreams and goals evaporate as many are ill-prepared to financially survive an illness or an accident and the associated recovery period lasting more than three months, let alone fund healthcare expenses in old age, according to the 2003 Desjardins Financial Security National Health survey conducted by the research firm SOM.
Many Canadians polled nationally feel that they can cover additional healthcare procedures not listed under provincial health plans. In reality, nearly four out of 10 Canadians (39%) could face financial problems if their health deteriorates, and they are unable to work, and might have to dip into their savings or sell assets to cover costs of necessary procedures or medicine.
Albeit 72% of Canadians recognize that provincial governments are not able to pick up all the medical costs associated with an illness or injury, including recovery, there is still 28% of the population who still hold onto the belief that all costs are covered under the provincial health plans. Additionally, of the 72% aware of the situation, 39% say they will not be able to cover the cost. However, it is difficult to determine what the cost will be since each illness or accident and the lost income from work, for instance, varies from person to person.
"Canadians must begin to think the same about healthcare planning as they do for retirement," said Taylor Train, vice president of marketing for Desjardins Financial Security. "At the very minimum 12 million Canadians' financial futures face life support because a proportion of the population continues to hold onto the traditional notion of universality in healthcare 'that all will be taken care of.' Another segment recognizes the shift in the system but feels that they will not be able to set money aside to help pay for necessary medical expenses. This will leave numerous people dipping into their savings and possibly selling their assets to pay for their recovery."
Regional Data
On a regional basis, Canadians in Western Canada and the Prairies are more likely to believe that provincial government healthcare plans will pay for all costs associated with an illness or an accident (31% for the Prairie provinces and 33% for British Columbia). Moving toward the eastern provinces, fewer Canadians embrace the notion of provincial governments covering all costs (Ontario and Quebec 26% respectively and 24% for the Atlantic Canada provinces).
Again looking at the regions and excluding those who assume that all costs are covered by provincial healthcare plans, Canadians in the three Prairie provinces were more optimistic regarding their ability to cover all their out-of-pocket expenses not covered by the province in which they reside, compared to the rest of Canadians (52% versus 45% for all Canadians). Ontario followed the Prairies with 47% believing they could cover de-listed medical services, followed by Quebec at 46%, Atlantic Canada provinces at 37% and British Columbia rounding out the list with 35%.
Canadians Facing Future Financial Uncertainty for Healthcare
"We noticed that Canadians have an unrealistic picture of their debt load," said Train. "Forty-five per cent say that they have less than $1,000 of debt, excluding mortgages, and another 28% carry a debt load between $1,000 and $10,000," added Train. "We know that Statistics Canada reported the debt-to-savings level is at 100% even though they report that residential real estate increased in value during the first two quarters, while the corresponding household debt grew along side. If this is the situation, the question becomes, how are people going to pay for the necessary de-listed healthcare procedures to recover from an ailment or live with dignity when aging or diagnosed with a critical illness when they don't have the savings set aside?"
Additionally, only 36% of Canadians surveyed felt that they are very or somewhat likely to be in an accident, be diagnosed with a critical illness or become disabled for a period exceeding three months during their life. In actuality, the 1985 Commissioner's Disability Table, from the Society of Actuaries, states the risk of a 35-year old Canadian becoming disabled as a result of an injury or an illness for at least three months before the age of 65 years is 50%.
"Although the majority of Canadians are covered by a group insurance plan (51%), there is a large portion of the population that doesn't have access to such a plan, either because they are retired without benefits, self-employed or unemployed", said Train. "Group insurance plans at work will cover some of the expenses, but there still could be out-of-pocket expenses that need to be paid by the person making the claim since there are vast differences in the level of benefits from employer to employer and the plan might not necessarily cover tests or medicine someone may need," said Train. "Few Canadians realize that there are other policies available through group or individual insurance plans that can be purchased to reduce the risk of depleting financial resources and complement group insurance plans in the event of an illness or an accident."
In terms of coverage, 63% of polled Canadians stated they held a life insurance policy on a personal basis. Remarkably 75% of Canadians surveyed knew that disability income replacement insurance existed (to cover loss of income from their employer while they are on disability so they may continue paying their bills). Yet when it came to owning health insurance to financially cover other healthcare costs associated with recovery in the likelihood of an illness or an injury the figures dropped.
Critical illness insurance, a supplemental medical expense coverage that assists with healthcare costs if the insured person is diagnosed with a disease such as life-threatening cancer, stroke or heart condition, was only recognized by 34% of those surveyed. Long-term care insurance, which pays for constant care such as nursing assistance that is not offered by provincial health plans, was recalled by 40% of Canadians. Complementary healthcare insurance was the least recognized at 24% of the population.
"Governments and individuals both need to take ownership in our healthcare solutions for the future," says Train. "Canadians need to set money aside so that they can obtain services that government healthcare programs do not provide. Both the public and private sectors as well as individuals must complement one another to provide and secure the integrity and sustainability of our excellent healthcare system."
About the Survey
SOM conducted the survey on behalf of Desjardins Financial Security between July 31 and August 24, 2003. In total, 1,999 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 2.3% at a 95% confidence level. The data was statistically weighted to accurately reflect the composition of Canadians by region, gender and age based on Statistics Canada's 2001 Census information.
About Desjardins Financial Security
Desjardins Financial Security specializes in life and health insurance including retirement savings products and is the fifth largest life and health insurer in the Canadian market. More than 5 million Canadians count on Desjardins Financial Security every day for their financial security needs. A member of the Desjardins Group, Desjardins Financial Security has offices in all major cities across the country, including Vancouver, Calgary, Regina, Winnipeg, Toronto, Ottawa, Montreal, Quebec City, Lévis, Halifax and St. John's. The following background information are also available:
Fact sheet #1: Additional Statistical Findings from the Desjardins Financial Security Health Regarding Healthcare.
2 pages - 28 kb
Fact sheet #2: Canadians' Definition of Financial Security
2 pages - 35 kb
Fact sheet #3: Cross Sample of Medical Services Not Covered in Ontario and in Alberta
3 pages - 37 kb
Fact sheet #4: Testimonial from Heart Patient Regarding Out-of-Pocket Costs, Ontario
1 page - 26 kb
Fact sheet #5: Actual Versus Perceived Costs of Long Term Care Facilities, Nationally
1 page - 27 kb
Summary of the Survey
13 pages - 1921 kb
Canadians Will Not Work to Death
Despite Low Confidence, Impending Labour Shortage and Little Savings
Toronto, February 11, 2003 - Once Canadians decide to retire there is no changing of their minds regardless of the lack of confidence in their own ability to save for retirement and their perception of possibly receiving a government pension, according to a survey conducted by SOM Surveys, Opinions and Marketing on behalf of Desjardins Financial Security.
Although 16 per cent of Canadians say they have a high degree of confidence in their ability to save for retirement, an overwhelming 46 per cent of the population feel that they will not be able to set aside enough money for this phase of life, among people who have not fully retired, but are under the age of 65. Confidence in government pension plans is a mere 6 per cent.
Factoring in the impending labour shortage and the low level of savings held in RRSPs, 68 per cent of Canadians said they would not consider returning to work once they retire even if they received an ideal offer to work full-time in their dream job. In Quebec, this figure jumps to 87 per cent.
"Working to death is not an option for Canadians," says Taylor Train, vice president of marketing for Desjardins Financial Security. "There is little flexibility about returning to work on a permanent basis once retired. Many people over 40 years old are holding onto their dream of early retirement but are still being realistic. Fifty-nine per cent will seek to be self-employed and work about 20 hours a week so they can remain active, regardless of the low personal confidence level for retirement saving."
According to the national poll, 60 per cent of Canadians over age 40 expressed interest in gradual retirement once they leave the workforce. And, although 48 per cent of Canadians are aware of the impending labour shortage, they are more likely to look for opportunities to work on their own terms, whether that be part-time consulting or turning a hobby into a business. This fact raises other financial issues such as bringing personal health insurance into the financial plan since these people will no longer be covered by company benefits.
"The low savings levels are not affecting Canadians' desire to retire," adds Train. "Currently, 50 per cent of Canadians have less than $25,000 in total savings. Of the 58 per cent of the adult population who own an RRSP, 69 per cent of them have less than $50,000 in their accounts.
"For Canadians, the brightest star is employer pension plans. Of the 46 per cent of Canadians who contribute to an employers pension plan, 42 per cent have faith in their employer's capacity to pay