Mental health study shows Canadians need a break from their Christmas break

Vancouver, Canada - A significant new Canadian study indicates that financial pressures coupled with the strain of "doing more" during the holiday season are placing already stressed Canadians under considerable more strain. The comprehensive two-part study, which focused on understanding winter holiday-triggered stress, anxiety and depression symptoms, polled mental health consumers and family members as well as doctors from across the country. The poll was conducted by MD Analytics, Canada's most innovative healthcare research firm, on behalf of the Canadian Mental Health Association, National (CMHA-NAT) in partnership with Desjardins Financial Security (DFS).

The consumer study sourced insights from people diagnosed with anxiety or depression, as well as those who experience stress, anxiety or depression symptoms during the winter holiday season.

"We've known for some time that December and January are extremely stressful months, but what we didn't know was how far-reaching the effects of holiday stress would be," says CMHA-NAT Chief Executive Officer Glenn Thompson, MSW, RSW. "This is the first time researchers have quantified winter holiday season-related stress anxiety and the occurrence of depression symptoms."

The study showed that added social pressure, financial stress, raised holiday expectations, an increased feeling of loneliness, increased family interaction and the "commercialization of the winter holiday season" topped the list as catalysts for holiday-related stress and anxiety, potentially leading to a diagnosis of anxiety or depression. The study also indicated that a staggering 76.6 percent of people who have been diagnosed with anxiety or depression experience a return or exacerbation of their symptoms during the winter holiday season.

One positive finding in the Holiday Mental Fitness study on holiday-triggered stress and anxiety symptoms shows that the survey respondents with an anxiety or depression diagnosis believe that attitudes are changing when it comes to the social stigma surrounding the use of anti-depressant medication.

73.1 percent of respondents with an anxiety or depression diagnosis agreed that the prescribed use of anti-depressant or anti-anxiety medication was more socially acceptable than it was five years ago. This could signal the commencement of a general shift in thinking towards the treatment of mental illness in this country.

Noting that the results of the last national health survey of Canadians indicate that financial worries undermine the quality of workers' lives and provoke stress, anxiety and even depression, Denis Berthiaume, Senior Vice-President, Individual Insurance for Desjardins Financial Security, emphasizes the importance of taking advantage of the assistance services available during this period of the year.

"In addition to the distress it causes the person who is experiencing the problem, an individual's physical and mental health disorders can have a significant impact on others, such as colleagues in the workplace, family members and friends. People should be aware that solutions are available to help them overcome stress, financial insecurities and uncertainties. They should not hesitate to seek out these services if they need them. Taking action to resolve their financial problems will certainly enable them to better enjoy the holiday season" says Berthiaume.

Of respondents who pursue additional stress-coping strategies during the winter holiday season, 66.7 percent said that they coped with the winter holiday season by taking time for themselves - in essence, taking a break from their holiday break. "This is an important insight for all Canadians because it comes from respondents who have experienced winter holiday-triggered stress, anxiety or depression symptoms or who have been diagnosed with anxiety or depression," says MD Analytics Managing Partner Howard Glase.

Other ideas for coping with holiday stress included advance planning for gift buying, re-emphasizing the spiritual aspects of the holidays, moderating food and alcohol consumption and restricting the number of social events during the holidays.

"The Canadian Mental Health Association has developed a list of ten tips for maintaining strong mental fitness throughout the winter holiday season," says CHMA-NAT CEO Glenn Thompson. "They are really common sense strategies, but during such a hectic time of year, the first thing people tend to do is take care of others before looking after themselves."

You need to look at ways to reduce holiday stress if you are:
 

CMHA issues tips for staying "mentally healthy" during busy holiday season

Here are ten tips from CMHA to help you maintain good mental health during the holiday season:
 

1. Set your priorities. Before too many activities overwhelm you, it's important to decide which traditions offer the most positive impact, and eliminate unnecessary activities. For example, if you usually become overwhelmed by a flurry of baking, shopping, sending cards, visiting relatives and other activities that leave you exhausted, you may want to pick your favourite activities and really enjoy them, and skip the rest.
2. Ask for help. Have a "family meeting" and make a commitment to share tasks. Rather than have one person cooking the whole meal, have family and friends bring a dish. Children can help with gift-wrapping, decorating, baking or addressing cards. Try to focus on doing what's really important to you and your family.
3. Beware of overindulgence. Alcohol is a depressant so try to keep consumption to a minimum. Too much food can make you feel lethargic, tired and even less able to keep up a busy pace.
4. Relax.Breathe.Enjoy! This sounds so simple, but sometimes we forget to take deep breaths and give our bodies the oxygen we need. Remember to take time to do things you enjoy like exercising, listening to music or meditation that will serve as much-needed breaks during the hectic weeks of the holidays.
5. Stay within budget. Finances are a great stressor so set a budget and stick with it. A call, a visit or a note to tell someone how important he or she is to you can be as touching and often more meaningful than a gift.
6. Remember what the holiday season means to you. While holiday advertising creates a picture that the holidays are about shiny new toys and gift giving, remember that this season is really about sharing and time spent with loved ones. Develop your own meaningful family traditions. Encourage children to make gifts or cards for friends and relatives so the focus is on giving rather than receiving.
7. Learn about others. Attend diverse cultural events with family and friends. Help out at a local food bank or donate clothing and toys to families in need so that they can enjoy a happy holiday season. It's a good feeling to give to others.
8. Include others. If you have few family members or close friends nearby, reach out to neighbours. Find ways to spend the holidays with other people. If you're part of a family gathering, invite someone you know is alone to your gathering.
9. Put fun, humour, affection and "break time" into your holidays. Fun or silly activities, games or movies that make you laugh, hugs, playing with pets, and quiet time alone or with a partner are all good ways to reduce stress.
10. Get into the light. Research suggests that elevated depression around this time of year can have a lot to do with the weather, especially lack of daylight and Seasonal Affective Disorder (SAD). So soak up the sun when you can. If your dampened mood persists for weeks into the New Year, consider a visit to your physician or mental health professional.
     

Study highlights and these top 10 prevention tips can be found by visiting the CMHA web site.

About the CMHA Holiday Mental Fitness Study
The purpose of the CMHA study is to reveal insights and to measure the incidence, prevalence and severity of seasonally triggered stress, anxiety and depression symptoms. Information was sourced from two participant groups with separate unique surveys:
Canadian Consumers: Insights were sourced from an online survey of 32 questions. Participation is nationally distributed; margin of error is +/-5%, 19 times out of 20. Participants were profiled for having experienced winter holiday season stress, anxiety or depression symptoms or as having an actual diagnosis of anxiety or depression.
General and Family Medicine Practitioners: Insights were sourced from an online survey of practitioners. Participation is nationally distributed; margin of error is +/-5.7%, 19 times out of 20.

Canadian Mental Health Association
The Canadian Mental Health Association (CMHA) is a leading national, voluntary organization within the mental health sector. For more than 85 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 provincial, territorial and regional offices in more than 135 communities across Canada. All mental health projects are based on principles of empowerment, peer and family support, participation in decision-making, citizenship, and inclusion in community life.

For more information on the Canadian Mental Health Association.

About Desjardins Financial Security
Desjardins Financial Security is a subsidiary of Desjardins Group, the largest integrated cooperative financial group in Canada, and 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. The Company employs more than 3,650 people and administers $23.0 billion in assets. Desjardins Financial Security has offices in several cities across the country including Vancouver, Calgary, Winnipeg, Toronto, Ottawa, Montreal, Quebec City, Levis, Halifax and St-John's.

MD Analytics
MD Analytics is Canada's most innovative full-service healthcare marketing research organization. Its purpose is to provide actionable insights to enrich decision making within organizations that touch healthcare. MD Analytics embraces technology, unique methodologies and the development of innovative services to help study sponsors fulfill their information needs and to optimize the experience of survey participants. MD Analytics is a Gold Seal Member of the Marketing Research and Intelligence Association and is fully compliant with industry standards and privacy codes. 

New brand names for LFS Laurentian Financial Services and Performa

Levis, December 6, 2006 -- The Desjardins brand will be seen even more all across Canada. Desjardins Financial Security is changing the name of the entities of its financial products and services distribution networks in Canada. The 20 LFS Laurentian Financial Services centres that distribute insurance and savings products through nearly 450representatives will be doing business under the name "Desjardins Financial Security Independent Network." Moreover, Optifund Investments Inc., the mutual fund dealer of Desjardins Financial Security and the recently acquired Performa network will operate under the banner "Desjardins Financial Security Investments Inc."

According to the Senior Vice-President Individual Insurance at Desjardins Financial Security, and President of Desjardins Financial Security Investments Inc., Mr. Denis Berthiaume, "the new names will help strengthen the reputation of the Desjardins brand and will allow the Company to consolidate its position as one of the major providers of financial products in Canada."

To meet their clients' needs effectively, associates of Desjardins Financial Security Independent Network will continue to have access to the products of over 15 Canadian insurance manufacturers including Desjardins Financial Security, and, for those mutual funds representatives licensed with Desjardins Financial Security Investments Inc., to more than 80 mutual fund organizations.

These changes were submitted for approval by the appropriate regulatory authorities.

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. In terms of written premiums, we are the largest life and health insurer in Quebec and fourth largest in Canada. The Company employs over 3,650 people and administers over $23 billion in assets. Desjardins Financial Security has offices in several cities across the country including Vancouver, Calgary, Winnipeg, Toronto, Ottawa, Montreal, Quebec City, Levis, Halifax and St. John's.

Desjardins Financial Security insurance sales remain strong with a 94.1% increase in 2006
 

• Net income of $108.6 million.
• Return on shareholder equity of 20.2%.
• Insurance sales up 94.1%.
• Strong group insurance growth outside Quebec.
• Assets under management and administration up 20.4%
• Profitability in all business lines.
   

Levis, November 20, 2006 - Desjardins Financial Security, the fourth largest life and health insurer in Canada and first in Quebec in terms of written premiums, reported 94.1% growth in insurance sales since the beginning of 2006. At the end of the 3rd quarter, insurance sales totalled $201.0 million, for a $97.4 million increase over the Company's results on September 30, 2005. This excellent performance is due primarily to the signing of major group and business insurance contracts, particularly during the 2nd quarter of the year. Revenues are also up, totalling $2,367.7 million compared with $2,313.9 million in 2005. While sales and premiums are up in Quebec, it's the other Canadian provinces that have reported the biggest increases, thus contributing to the Company's business growth in these markets. Assets under management and administration were up 20.4% to stand at $23.0 billion, an improvement of $3.9 over the same time last year.

Desjardins Financial Security generated another excellent return on shareholder equity, which stood at 20.2%. Elsewhere, net income for the third quarter of 2006 stood at $39.4 million, which brings total net income recorded since the beginning of the year to $108.6 million. At the end of the first nine months of 2005, continuing operations had generated net income of $116.6 million. This was due in part to the positive impact of non-recurring items from a reversal of provisions for losses in the amount of $12.5 million following the settlement of impaired loans. The share of Desjardins Financial Security's net income attributable to the ultimate shareholders, the Desjardins caisses, totalled $106 million.

From his perspective as Chief Executive Officer of Desjardins Financial Security, Mr. Alban D'Amours, President and Chief Executive Officer of Desjardins Group, considers that all caisse members benefit from the performance of the Group's life and health insurance subsidiary. "Apart from enhancing the financial security of caisse members with an offer of insurance and savings products suited to their needs, Desjardins Financial Security is also contributing to their collective wealth accumulation through sustained business growth across Canada and with its increased operational efficiency, which is making it one of the most competitive companies in the Canadian life and health insurance industry."

Desjardins Financial Security's President and Chief Operating Officer Mr. Richard Fortier, commenting on the marked growth in the volume of premiums and sales across Canada, explained that "Desjardins Financial Security wants to double its market share outside Quebec by the end of 2008. Our third quarter results indicate we're on the right track and that our efforts to achieve this goal are not interfering in any way with our growth in Quebec, where we continue to strengthen our leadership position quarter after quarter."

Strong growth in group insurance outside Quebec

At the end of the first nine months of 2006, net income for the group insurance sector, which includes insurance plans for groups and businesses, as well as group plans offered in financial institutions like the Desjardins caisses, stood at $78.2 million versus $79.1 million a year ago. In group and business insurance, the enrolment of several groups with 1,000 and more insureds boosted sales dramatically to $174.5 million, more than doubling the figures ($78.4 million) recorded over the same period in 2005. Sales outside Quebec alone totalled $138.6 million. Premiums were $77.6 million higher than those collected over the same period in 2005 to stand at $906.4 million, the result of sales from the past twelve months and the groups' natural growth. Elsewhere, the volume of premiums from plans offered through financial institutions, particularly credit insurance plans, totalled $343.2 million, an improvement of $17.9 million over last year. The total volume of insured credit, both in loan life insurance and loan disability insurance, remains up. Sales totalled $85.0 million, figures similar to those recorded in 2005.

Increase in individual premiums and sales

In this sector, net income totalled $27.0 million, down $1.0 million from the first nine months of 2005. In individual insurance, gross premium volume totalled $292.2 million, up $8.8 million. Sales grew by $1.3 million to stand at $26.5 million. This growth is largely due to the 17.3% increase in the number of in-force contracts sold by financial security advisors assigned to the Desjardins caisses. The premium volume for products distributed without a representative, such as Travel Insurance and 50+ Life Insurance, totalled $38.5 million, $3.2 million more than on September 30, 2005.

Sustained volume of savings product sales

In Savings, despite a slowdown in group retirement savings in the third quarter, the sector's overall sales totalled $826.8 million, an increase of $10.0 million over the same period last year. Individual savings sales grew by 17.5% compared to a year ago to stand at $205.8 million versus $175.2 million. Individual annuity sales recorded increases, and Millennia Segregated Funds maintained their excellent performance with an increase of 39.7%. Elsewhere, mutual fund sales received a boost from the acquisition of Performa Financial Group assets. They increased by $33.6 million to stand at $397.9 million at the end of Q3. Group retirement savings sales totalled $223.1 million. Net income from savings totalled $3.4 million, down $6.1 million compared to the first nine months of 2005, which had been favourably affected by the reversal of provisions for losses.

About Desjardins Financial Security
Desjardins Financial Security is a subsidiary of Desjardins Group, the largest integrated cooperative financial group in Canada, and 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.  The Company employs 3,659 people and administers $23.0 billion in assets. Desjardins Financial Security has offices in several cities across the country including Vancouver, Calgary, Winnipeg, Toronto, Ottawa, Montreal, Quebec City, Levis, Halifax and St-John's.

Desjardins Financial Security Survey Reveals Canadians Waiting too Long to start Planning for Retirement

Canadians complacent about retirement, waiting too long to save and not following through with financial and social plans for new life

Download our "Perfect Garden" booklet to get in a creative way our 2006 Retirement Survey Report!

TORONTO, November 9, 2006 - A survey released today by Desjardins Financial Security indicates the message that people need to stash away some savings for retirement is catching on with Canadians.   The bad news is the message is not resonating with people until they reach their 30s or even into their 40s and beyond - making retirement a potential challenging time for people, both financially and socially.

In the fifth annual survey on retirement, Desjardins Financial Security measured the cost of complacency for Canadians when it comes to retirement saving and planning.  The results are startling: although age60 is the average, ideal age of retirement for surveyed workers, more than one third (35%) of workers and partial-retirees indicated they didn't seriously start saving for retirement until they were over 40 years old.

For half of the workers and partial retirees over 40 years old, the ideal age for retirement is between 56 and 65, where as 34% of the same group would like to retire by age 40 to 55. When questioned further about whether it will be possible to retire at this age, given what they know now about their financial requirements, the majority (60%) of workers 40 years old and over feel they are realistic in setting their ideal age for retirement.  These figures may allude to a country that is forward looking and sophisticated in their approach to retirement saving and planning, however the survey, conducted by SOM, revealed that on average when it comes to planning and saving, people simply start too late.

"Canadians need to realize that retirement is not a 20 or 30-year vacation," says Monique Tremblay, senior vice president of Savings and Segregated Funds for Desjardins Financial Security.  "People need to change their behaviour and start planning for retirement as soon as possible -earlier than the average age of 35 years old.  Through this survey, we discovered that there are groups who are in greater proportion to begin saving after 50 years old.  And, these Canadians still, on average, want to retire alongside their peers at age 60."

The survey revealed two groups of workers began saving before they reached 30 years old.  Generally they are couples with children (37%) and those with savings and investments over $100,000 (36%).  But in greater proportion were those groups who left saving it until they reached age 50.  They are pre-retirees (33%), those with an income between $20,000 and $30,000 (28%), those with savings and investments between $10,000 and $25,000 (25%), part-time workers (20%) and those who live alone without children (18%).
 
"It is understandable that the extent of the planning and saving must be in relation to the needs and financial capacity, but a simple plan is better than no plan at all," added Tremblay.  "Retirement planning is not just about RRSP contributions.  People also need to consider the social aspects of retirement and how that impacts their finances as well."

Social Aspect of Retirement Needs Planning Too

Financial matters are not the only ones that need to be considered when planning for retirement.  Three-quarters (74%) of workers aged 40 years and older indicated they were psychologically prepared for retirement, yet social factors such as loneliness, boredom and no longer being around colleagues weighed heavily on the minds of those surveyed.

A solid majority (82%) feel that it is important to make plans for one's free time and social life, yet only about half (55%) have actually done so.  Seven out of ten (69%) workers feel that it is important to consult with a financial advisor before retiring - only 53% have actually done so.  Interestingly, approximately half (49%) feel that it is important to seek advice for the emotional impact that accompanies retirement; few (23%), however, have sought out such advice.  Given the fact that most respondents don't want to work after retirement, it is not surprising that only 22% consider it important to seek advice on this matter and that less than one in ten (9%) have done so.

"Saving for retirement is important but Canadians need to recognize that they must plan their activities to keep themselves occupied and healthy during this long-awaited life phase," says Dr. Paul Garfinkel from the Centre for Addiction and Mental Health in Toronto.  "Work reflects hours put in, but it's something much more for most people.  It helps provide part of your sense of identity, who you are, who your community is and how you connect.  Those networks are disrupted at retirement."

About the Survey
SOM conducted the telephone survey on behalf of Desjardins Financial Security between August 3 and 16, 2006.  In total, 1,666 interviews were conducted with a representative sample of Canadian adults.  The sampling plan provides proportional estimates with a maximum margin of error plus or minus 2.6% at a 95% 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 2001 Census information.

About Desjardins Financial Security
Desjardins Financial Security is a component of Desjardins Group, the largest integrated cooperative financial group in Canada. Specialized in life and health insurance and retirement savings for individuals and groups, Desjardins Financial Security ensures the financial security of over 5 million Canadians from coast to coast every day. It employs 3,659 people and manages more than $17 billion in assets. The company has offices in a number of cities nation-wide including Vancouver, Calgary, Winnipeg, Toronto, Ottawa, Montreal, Quebec City, Levis and Halifax.

About SOM
IIn operation since 1986, SOM specializes in market research and public opinion polls with the Canadian population. The company conducts research activities in Canada, the United States and France. They can be reached at www.som.ca

Group Retirement Savings: Desjardins Financial Security education program wins award of excellence

Montreal, October 16, 2006 -- Desjardins Financial Security's Destination - Take Control of Your Retirement program for Group Retirement Savings participants approaching retirement won an award of excellence at the 2006 Insurance & Financial Communicators Association (IFCA) Awards Competition. The judges commented on the originality and effectiveness of the concept.

Éric Filion, Senior Director, Product Development and Marketing, Savings for Groups and Businesses at Desjardins Financial Security, is very proud of this award. "All our education programs are designed to make plan participant information relevant and easy to understand. By offering plan participants support and guidance, we hope to make them proactive about effective planning for their retirement. We're very proud of the recognition we've received for our work; it confirms we're on the right track," he explained.

Destination, an integrated module of the Setting Sail for the Future education and retirement planning program, is offered exclusively to Desjardins Financial Security group retirement savings clients. Its purpose is to support plan participants approaching retirement by giving them access to a wide range of products, services and tools designed specifically for their needs. Last year, Setting Sail for the Future received a Best of Show award in the "Group Benefits and Pensions − Integrated Campaign" category.

In all, Desjardins collected seven communications awards at the 2006 IFCA Awards Competition, including four awards of excellence and three honourable mentions.

About the IFCA Awards Competition
The IFCA is an association of 750 communicators from over 225 life and health insurance and financial services companies in Canada and the United States. It is dedicated to the ongoing professional development of its members. The IFCA Annual Awards Competition covers ten categories related mainly to advertising, public relations, corporate communications and sales promotion. Over 550 entries were submitted this year. The 2006 awards will be presented at the IFCA annual meeting to be held from October 15 to 18 in Banff, Alberta.

About Desjardins Financial Security
Desjardins Financial Security is a component of Desjardins Group, the largest integrated cooperative financial group in Canada. Specialized in life and health insurance and retirement savings for individuals and groups, Desjardins Financial Security ensures the financial security of over 5 million Canadians from coast to coast every day. It employs 3,659 people and manages more than $17 billion in assets. The Company has offices in a number of cities nation-wide including Vancouver, Calgary, Winnipeg, Toronto, Ottawa, Montreal, Quebec City, Levis and Halifax.

Desjardins Financial Security wins seven communications awards

Levis, September 25, 2006 -- Desjardins Financial Security collected seven awards in the 2006 Insurance & Financial Communicators Association (IFCA) contest. This association brings together 650 communicators from over 125 life and health insurance and financial services companies in Canada and the United States. The Company received four awards of excellence and three honourable mentions for its achievements.

Daniel Roussel, Vice-President of Public Affairs and Communications, who represents Desjardins Financial Security at IFCA, is pleased with the peer recognition we received once again this year for our Company's communications. "All these prizes are testimony to the talent and creativity of the Company's communications teams and its business lines, as well as the Advertising and Promotion team." Recall that last year Desjardins Financial Security had also earned seven awards in the IFCA contest.

Four awards of excellence

An award of excellence was given for the Annual Employee and Annual Manager Meetings. During the Annual Employee Meeting, all Desjardins Financial Security employees from Levis, Quebec City, Montreal and Toronto were brought together virtually thanks to fibre optics.

The Destination - Take Control of Your Retirement program for group retirement savings members approaching retirement also received an award of excellence. Judges commented on the originality and effectiveness of the concept.

The article entitled "The 'Sandwich Generation' Wants a Healthy Workplace" also earned an award of excellence. This article all about balancing family needs and job obligations appeared in the August 2005 issue of Benefits & Pensions Monitor.

Desjardins Financial Security and its employees were also rewarded for their commitment to sustainable development. An award of excellence was also collected for The Green Squad, an initiative aimed at making employees aware of "responsible consumption."
 
Three honourable mentions

Two achievements that received honourable mentions involved marketing and promotion of specific products. They are the This is not part of the package Internet Banner promoting the Desjardins Financial Security Travel Insurance offer, and the Group Retirement Savings Visit Card for intermediaries such as actuaries and brokers. A banner positioned along a major Toronto highway in support of the Becel Ride for Heart, a Heart & Stroke Foundation fundraising activity, also received an honourable mention.

About the IFCA contest
IFCA is dedicated to the ongoing professional development of its members. This association's annual contest covers ten categories related mainly to advertising, public relations, corporate communications and sales promotion. Over 550 entries were submitted this year. The 2006 awards will be presented at the IFCA annual meeting to be held from October 15 to 18, 2006, in Banff, Alberta.

About Desjardins Financial Security
Desjardins Financial Security is a component of Desjardins Group, the largest integrated cooperative financial group in Canada. Specialized in life and health insurance and retirement savings for individuals and groups, Desjardins Financial Security ensures the financial security of over 5 million Canadians from coast to coast every day. It employs 3,659 people and manages more than $17 billion in assets. The Company has offices in a number of cities nation-wide including Vancouver, Calgary, Winnipeg, Toronto, Ottawa, Montreal, Quebec City, Levis and Halifax.

A net income of $69.2 million for the first six months of 2006

Desjardins Financial Security reinforces its market penetration outside Quebec
 

• Net income of $69.2 million
• Return on shareholder equity of 19.4%
• Marked increase in savings and insurance sales
• 6.6% growth in insurance premiums
• Significant penetration outside Quebec in group insurance and retirement savings
   

Levis, August 28, 2006 -- The leading life and health insurer in Quebec and fourth largest in Canada in terms of written premiums, Desjardins Financial Security posted a net income of $69.2 million at the end of the first six months of 2006 compared with $74.2 million for continuing operations in 2005, when results benefited from a reversal of allowance for impaired loans. In the second quarter, the net income was $38.7 million compared with $42.4 million in 2005, a drop of $3.7 million compared with the corresponding quarter last year. As was the case in the first quarter, the poor experience in long-term disability continues to affect the year's results.

Insurance sales totalled $175.9 million, up by $98.3 million over the first six months of 2005. Acquisition of new major contracts, including one with the Government of Newfoundland and Labrador for its 36,000 employees and retirees, explains the 126.7% increase over last year. Insurance and annuities income, investment income and other income represent $1.6321 billion compared with $1.5103 billion in 2005, up 8.1%. Lastly, assets under management rose to $17.5 billion, up $2.0 billion from the corresponding date in 2005.

The Company continues its sustained contribution to the profitability of Desjardins Group, the largest cooperative financial group in Canada which, at the end of the first six months, reported $376 million in surplus earnings before patronage dividends to members. Desjardins Financial Security's share of the net income attributable to the ultimate shareholders, the Desjardins caisses, is $68.1 million with a return on shareholder equity of 19.4%.

Commenting on these results, the president and CEO of Desjardins Group and CEO of Desjardins Financial Security, Alban D'Amours, declared "On the eve of the new 2006-2008 strategic plan, the performance of the first six months permits us to expect continued profitable growth of the Company to the benefit of its clients and Desjardins caisse members."

François Joly, president and COO, emphasized the solid growth especially outside Quebec where the Company is aiming to double its market share. "The signing of major group insurance and retirement savings contracts in the past few months has helped strengthen our penetration into the Canadian market. Also, the recent acquisition of the Performa Financial Group will reinforce our capacity for product and service distribution, and thus help reach our objectives for development outside Quebec, which will allow us to strengthen our position among the key financial service providers in Canada." 

Performance by business line

Group Insurance - At the end of the first six months of 2006, net income for the group insurance line, which includes group and business insurance as well as group plans offered in financial institutions, including Desjardins caisses, generated $48.3 million compared with $49.1 million last year. In group and business insurance, the enrolment of several new groups generated premiums of over $1.0 million. These included the 25,000 employees and 11,000 retirees of the Government of Newfoundland and Labrador. The natural growth of already established groups also contributed to the excellent performance for this period. From January to June 2006, sales totalled $157.7 million compared with $60.3 million in 2005, an increase of 161.5%. Group insurance premiums posted a net increase of $41.0 million over those collected in the first six months of 2005 to reach $587.7 million. Premiums associated with plans offered through financial institutions, particularly credit insurance, totalled $226.5 million, up 5.6% from the corresponding period last year. The total volume of insured credit continued to climb while sales totalled $57.1 million, staying more or less at the same level as in 2005.

Individual Insurance - Net income for this line grew by 10.3% reaching $19.3 million, compared with $17.5 million for the first six months of 2005. Gross individual insurance premiums reached $195.5 million, up by $6.6 million. Sales rose by $0.9 million to reach $18.2 million. Lastly, individual products marketed through direct distribution like Travel Insurance and 50+ Life Insurance produced $23.5 million, up $2.2 million from the first two quarters of last year.

Savings - Important new contracts signed in group retirement savings largely contributed to the growth in overall sales of this line, reaching $366.1 million, an increase of $70.3 million or 23.8% compared with the first two quarters of 2005. Group retirement savings sales have gone up from $161.1 million to $213.4 million, up 32.5%. Stimulated by a 56.8% increase in sales of Millennia segregated funds, individual savings sales posted an overall growth of 13.4% to stand at $152.7 million, compared with $134.7 million last year. However, the net income in savings experienced a setback of $6.0 million over the results of first six months of last year and stands at $1.5 million.

About Desjardins Financial Security
Desjardins Financial Security is a component of Desjardins Group, the largest integrated cooperative financial group in Canada. Specialized in life and health insurance and retirement savings for individuals and groups, Desjardins Financial Security ensures the financial security of over 5 million Canadians from coast to coast every day. It employs 3,659 people and manages more than $17 billion in assets. The company has offices in a number of cities nationwide including Vancouver, Calgary, Winnipeg, Toronto, Ottawa, Montreal, Quebec City, Levis and Halifax.