Desjardins Financial Security continues to make major inroads into the Canadian market
 

• Insurance sales growth of 20.8%
• Gross group insurance premium growth of 32.7%
• Net earnings up 53.2%
• Return on shareholder equity of 27.3%
• Profitability across the business lines
   

Lévis, November 28, 2007 – Desjardins Financial Security's penetration of the Canadian market continues to bear fruit. At the end of the first three quarters of 2007, net earnings for the provider of life and health insurance and retirement savings products had risen by 53.2%, to stand at $166.4 million, compared to $108.6 million as at September 30, 2006.

After nine months, gross insurance premium income was up 6.8% in Quebec and 26.0% in the other Canadian provinces, for a total $1,801.4 million and an increase of $193.8 million (12.1%) over 2006. New insurance sales stood at $240.4 million, an increase of $41.4 million over the first three quarters of 2006. These excellent results are in part attributable to the major group insurance contracts sold in Ontario, Newfoundland and Labrador and Quebec, including the $75 million contract signed in the second quarter of the year with the Ontario Hospital Association for the benefit of the 70,000 employees of the Ontario health network's 185 employers that took effect on August 1.

Profitability during the period was affected by the sub-prime mortgage problems worldwide, which triggered a liquidity crisis on the asset-backed commercial paper (ABCP) market. Desjardins Financial Security, whose security holdings had a total value of $195.3 million on September 30, 2007, recorded a decline in value of $14.9 million. This depreciation, which resulted in a $7.9 million drop in net income for the Company for the first nine months of 2007, had already been included in the third quarter results of Desjardins Group, which were made public on November 15, 2007.

The share of Desjardins Financial Security's net earnings attributable to the Desjardins caisses, the Company's ultimate shareholders, was up $50.9 million and stood at $157.8 million. Return on shareholder equity was 27.3% versus 20.2% after the first three quarters of 2006, and remains one of the best in the financial services industry. The Company's consistent performances continue to make a substantial contribution to the profitability of Desjardins Group, whose net earnings before member dividends between January and June 2007 stood at $828.0 million.

Assets under management and administration totalled $22.3 billion, up more than 12.0% since the beginning of the year.

Third quarter results

For the period of July 1 to September 30, 2007, net earnings stood at $48.2 million, an increase of 22.0% over third quarter results of 2006, which stood $39.5 million. Income from insurance premiums during the period reached $595.1 million, up 12.7%. 

Commenting on these results, Mr. Alban D'Amours, President and Chief Executive Officer of Desjardins Group, and also Chief Executive Officer of Desjardins Financial Security, said he was very pleased with the Company's contribution to the overall performance of the largest integrated cooperative financial group in Canada. "These excellent results reflect Desjardins Financial Security's robust expansion, especially outside Quebec, where it ranks as one of the top life and health insurers. Through these consistent performances, Desjardins Financial Security contributes to the profitability of Desjardins Group and supports its expansion across Canada."

Desjardins Financial Security's President and Chief Operating Officer, Mr. Richard Fortier, reiterated that these results were the outcome of rigorously applying the Company's 3-year strategic plan. "As we get ready to tackle the final year of our 2006-2008 strategic plan, the results we are recording clearly show that our choice of directions is sound and that the efforts we have invested in achieving our objectives are paying off. It's on this solid basis that in the coming months we will be establishing our priorities and setting our objectives for the next three-year cycle."

Sector Results

Strong growth in group insurance sales

For the first time, Group and Business Insurance sales crossed the $200-million mark to stand at $211.1 million after the first nine months of the year, for an increase of 22.4%. As at September 30, 2006, sales totalled $172.5 million. Group insurance premiums, including those from group and business insurance and from plans offered through financial institutions, such as the Desjardins caisses, totalled $1,453.4 million, compared to $1,273.5 million in 2006. The major group and business insurance contracts sold last year are behind this substantial premium increase of 14.1% in 2007.

Growth in individual insurance sales and premiums

In Individual Insurance, new sales recorded during the first nine months of 2007 through the SFL financial centre network, the Desjardins Financial Security, Independent Network, and the financial security advisors assigned to Desjardins caisses grew by 10.6% to total $29.3 million. The gross premium volume stood at $348.0 million, for a $13.9 million improvement over last year.

Increase in mutual fund and segregated fund sales

In Savings, overall sales totalled $858.9 million, topping 2006 figures by $41.4 million. Mutual fund sales grew by 33.9% to stand at $519.8 million, compared to $388.2 million last year. Millennia segregated fund sales grew by a remarkable 27.1%, to total $113.5 million. This brings total individual savings sales at the end of the third quarter to $196.2 million, down slightly (4.8%) from 2006 results. In group retirement savings, sales totalled $142.9 million as at September 30, which represents a 35.9% decline from the corresponding period in 2006, when major payout annuity contracts were signed.

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

Rethinking Retirement

How the Boomer generation is changing the face of retirement in Canada

TORONTO, ON November 6, 2007 -- According to a national study published today by Desjardins Financial Security, the current habits, lifestyles and attitudes among baby boomers have put the traditional “all play and no work” retirement mentality on the verge of extinction. One-tenth of today’s retirees continue to work, and over half (54%) of workers aged 40 and older are planning a gradual retirement.

The study, which surveyed Canadians from across the country, revealed the effects of starting work and family life later than previous generations.

Canadians hoping to retire are coming to terms with the fact that “early” retirement is not in the cards exactly in the way they had originally anticipated.  When asked about their ideal retirement age, university-educated workers are more likely to envision working past age 65 - at least five years longer than the “ideal” retirement age of other actively employed respondents.

“We know that beginning a family later in life is four times as frequent today as a generation earlier. We’re now supporting dependent children into our fifties and sixties, making our “ideal” retirement age somewhat of a moving target,” says Monique Tremblay, Senior Vice President, Savings and Segregated Funds, at Desjardins Financial Security.  "The effect of this stress on financial resources is aggravated by the minimal budgeting and financial planning during working life.”

Mitigating the risks crucial to retirement planning
 
Tremblay goes on to say that the Desjardins survey shows that this “magical thinking” among Canadian workers may result in unpleasant surprises in terms of risk management at the time of retirement.

“Canadians say they are willing to save for the future, but 66 per cent of respondents have not even considered how they will use those retirement dollars. If you don’t factor inflation into your future, you could be in for sticker shock when it comes to food, housing and other basic necessities” she adds.

Health is another significant risk factor. More than three quarters of existing Canadian retirees say they are in good, very good or excellent health. While that may be true today, about half are significantly concerned that they may need extended care at home or long term care in a facility as they age. 43% of retirees worry that they may not have the savings to pay these expenses, which can be quite significant in some cases.”

And yet, the Desjardins survey also finds that Canadians continue to take a “do-it-yourself” approach to savings and financial planning, not arming themselves with all the information and knowledgeable assistance they need to ensure a financially predictable retirement.

Michael Aziz, Regional Vice President of Sales Investment Products at Desjardins Financial Security, says “Canadians must take a leadership role in planning for their own future by equipping themselves with the tools and access to expertise they need to accomplish this. People need clear information about how much they will need to cover anticipated expenses, and what income they can expect to draw from their investments.”

It’s not just about saving

Over 80% of survey respondents anticipate entering their golden years “in the red”. Further, they appear complacent about it! Aziz adds, “The role of real estate in asset, debt and retirement financing remains quite vague in their mind."

According to the study results, only 38 per cent of aspiring and current retirees are concerned about outliving their savings.

Unexpected factors - health problems, increasing life expectancy, and market downturns - can erode savings over the long term.

“The responses to the questions we asked about life expectancy indicate that this notion and how to use it in a financial plan remains a mystery to most respondents”, said Tremblay. “It is certainly difficult to budget and envision scenarios when there’s no clear idea of the time horizon over which you need to allocate your financial resources”.

“There’s always tomorrow”

Tremblay adds, “With life expectancies on the rise, we could quite likely spend more years in retirement than we did working. We need to develop “saving behaviours” that ensure we won’t have to stay at work or return to work purely due to financial necessity. We can’t predict the future, but a good financial plan means we will be able to adjust more quickly as events unfold.”

When asked what they would do if they outlived their savings, Canadians had two equally stated answers: cut expenses significantly, or reduce what they would leave as inheritance.   When asked how they would alleviate retirement financial woes, 20 per cent would consider government, associations and charities. Some say they would turn to their families, and even friends, for support.

Aziz says, “Most people you know take a lot of time and care planning their African safari - the cost of airfare, accommodations, entertainment, itinerary…and they buy travel insurance to make sure they’re not stranded or sick or penniless with no recourse. When it comes to planning for the rest of our lives, we must pay as much, if not more attention. Seeking assistance does not mean relinquishing decision-making. It means making decisions in a well-informed and optimal way, knowing all the options available.”

Tremblay concludes, “Knowing what risks we face as we enter this phase in our lives is essential to mitigate those risks. Solutions are available to plan according to our lifestyle and the protection we need. This new reality means rethinking retirement. Planning starts today, and small steps will take you a long way.”

Editor's note:  Backgrounder about financial planning tips to reduce the impacts of longevity, health and economic accompanies this news release.

Backgrounder - Financial Planning Tips
  2 pages - 31kb

For more information, please visit:  www.rethinkretirement.ca

About the Survey
SOM Surveys, Opinion Polls and Marketing conducted the survey on behalf of Desjardins Financial Security between July 24 and August 31, 2007. In total, 1,505 interviews were conducted with a representative sample of Canadian adults. The sampling plan provides proportional estimates with a maximum margin of error of plus or minus 2.6% at a 95% confidence level (19 times out of 20). 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, a subsidiary of Desjardins Group, the largest integrated cooperative financial group in Canada, specializes in group and individual life and health insurance, and savings products and services. Every day, over 5 million Canadians rely on Desjardins Financial Security to ensure their financial security. With a staff of over 3,700 employees, Desjardins Financial Security manages and administers close to $22 billion in assets from offices in major cities across the country, including Vancouver, Calgary, Winnipeg, Toronto, Ottawa, Montreal, Quebec, Levis, Halifax and St. John's.

Helios and DFS Guaranteed Investment Funds Reimbursement of Fees
A first in Canada!

As part of the Helios Contract guarantees, Desjardins Financial Security will reimburse a portion of the fees clients pay to protect investments.

Montréal, November 2, 2007 -- The Helios Contract launched on October 29 sets itself apart part not only with its flexible made-to-measure approach and its Guaranteed Minimum Withdrawal Benefit, but also with another innovative feature: the reimbursement of fees.

"We don't think twice about insuring our car or our home because we don't want to risk losing them. The same thing applies to investments. Clients buy guaranteed investment funds to protect themselves against market downturns," explains Éric Lemaire, Senior Advisor, Marketing, Individual Savings, at Desjardins Financial Security. "Market crashes don't happen very often, but when they do, they can have serious consequences.  So, if clients don't have to use their guarantee, why not offer them a reimbursement?"

Desjardins Financial Security offers an innovative solution that can reimburse a portion of the fees clients pay to protect their investments. Under its Guarantee 100/100 r, the Helios Contract will refund a portion of the fees if, ten years after the investment, the portfolio has grown in value. This way, clients benefit from a reimbursement when their investments perform well, and from protection if markets drop.

With the Helios Contract and the Guarantee 100/100 r, Desjardins Financial Security is the first insurer in Canada to refund fees clients pay to protect their investments. This makes it one of the best-priced guarantees on the market.

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. The Company employs more than 3,700 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.

Desjardins Financial Security Launches Helios, a New Guaranteed Investment Fund Contract and its Guaranteed Minimum Withdrawal Benefit

Forty-four percent of retirees still do not know how they will convert their savings into retirement income.

Montréal, October 25, 2007 -- Desjardins Financial Security is entering a new age in retirement planning solutions with the launch of Helios, its new Guaranteed Investment Fund Contract, on October 29, 2007. Helios offers an a la carte approach to retirement planning that allows investors to design their own guarantees based on events in their lives, and to protect their capital. One of these solutions is the Guaranteed Minimum Withdrawal Benefit (GMWB).

The Guaranteed Minimum Withdrawal Benefit

To help future retirees plan their retirement income more effectively, Helios provides the Guaranteed Minimum Withdrawal Benefit (GMWB). This option is attractive to clients who wish to take advantage of market returns during the active part of their retirement years while benefiting from a predictable and guaranteed income. The GMWB option can be added to the client's portfolio at any time, when it is needed the most, and pay the client an income of up to 7%, the highest on the market for a maximum of flexibility.

"Today, one in three Canadians is a baby-boomer. Their expectations in terms of investments have changed considerably compared to the previous generations, especially when it comes to capital security," explains Claude Paré, Senior Director, Product Development and Marketing, Individual Savings, at Desjardins Financial Security. "Today's investors want to maximize their investment dollars and at the same time protect their assets against market fluctuations."

Retirees rely on financial institutions to come up with products and services that will help them achieve their objectives. According to the 2006 edition of Desjardins Financial Security's annual survey on retirement, only 56% of retirees had a plan to convert their savings into retirement income. That means that the remaining 44% of the retirees surveyed still did not know, because they lacked either the interest or the expertise, how they were going to change their savings into retirement income.

The Helios Contract

What makes Helios different is its a la carte formula, its broad selection of funds and, more specifically, its ability to adapt to life's events. For example, an investor can choose between three different capital security guarantees that offer protection at maturity and death of up to 100% of the capital over a 10-year period. It includes 31 investment funds diversified across all asset classes.

With the Helios Contract and the Guaranteed Minimum Withdrawal Benefit option, Desjardins Financial Security is among the first financial institutions in Canada to actively combine innovative accumulation and payout strategies to better meet the needs of future generations of retirees.

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. The Company employs more than 3,700 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.

Important Changes to Desjardins Financial Security Fund Portfolio

Montréal, October 17, 2007 -- Desjardins Financial Security is changing the name of its funds and adding both new fund managers and a new fund to its portfolio effective October 29, 2007.

The classic designation of "segregated funds" is being replaced by "guaranteed investment funds," which is more in line with the nature of the product and market trends. The new name also reflects the company's commitment to greater transparency and clarity, as it will begin with the Desjardins Financial Security acronym DFS, followed by the acronym GIF, which stands for guaranteed investment fund. From now on, Funds will be identified by the following designation: DFS GIF – name of fund category – name of asset manager. The designation Millennia III Funds will no longer be used.

"Using guaranteed investment funds, instead of "segregated fund," is a concrete way for us to simplify the investment terminology for our clients," explained Claude Paré, Senior Director, Product Development and Marketing, Individual Savings, at Desjardins Financial Security. "This initiative is part of the company's strategic direction that aims to provide clients with guidance and support in all their interactions with our company."

Two new managers

Desjardins Financial Security is also pleased to welcome two new fund managers, Addenda Capital, which specializes in the management of bond portfolios generally reserved for institutional clients, and UBS Global Asset Management, a business group of UBS, one of the world's leading financial services groups. Addenda and UBS will respectively manage the DFS GIF – Canadian Bond – Addenda and the DFS GIF – American Equity – UBS.

One new fund

A new Global Equity Fund managed by Alliance Bernstein, the DFS GIF – Global Equity – AllianceBernstein, is joining the Desjardins Financial Security portfolio. AllianceBernstein is a reputable fund manager renowned for controlling the volatility of its returns as compared to world market returns, and for its extensive geographic diversification worldwide.

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. The Company employs more than 3,700 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.

Desjardins Financial Security is the Top Canadian Company at the 2007 IFCA Contest with Six Awards, Including Three Best of Show

Lévis, October 15, 2007 --  For the fourth consecutive year, and the fifth time since 2001, Desjardins Financial Security (DFS) has won several awards in the Insurance & Financial Communicators Association (IFCA) contest. This association brings together 700 communicators from over 225 life and health insurance and financial services companies in North America. DFS received three Best of Show awards, one
Award of Excellence and two Honorable Mentions for its achievements, making it the Canadian company with the most number of awards this year.

"The quality and creativity of the communications of a company such as ours are an important measure of success. This year once again, the IFCA awards allow us to give special recognition to our employees for all their talent and hard work,"  said Daniel Roussel, Vice-President, Public Affairs and Communications at Desjardins Financial Security. Last year, Desjardins Financial Security came away with seven awards at the IFCA contest.

Health is Cool!

The 2006 Health is Cool! campaign and booklet earned two Best of Show awards in the following categories "Associations – Integrated Campaigns" and "Internally Developed Communications – Print" while the webcast of the May 2006 Health is Cool! survey results received an Honorable Mention. To view the 2006 survey results and download a copy of this booklet, go to the National Surveys section of www.desjardinsfinancialsecurity.com/cool.

Best of Show award for Oasis in the City

The Oasis in the City event, held in Toronto on Friday, May 5, 2006, earned a Best of Show award in the "Special Projects" category.  For one day, downtown office workers were able to relax in a special garden created by Desjardins Financial Security featuring a giant checker board, a giant chess board, a chocolate fountain, a carp-filled pond, a waterfall, a harpist, yoga and Nia demonstrations, etc.

Award of Excellence for "Perfect Garden"

The "Perfect Garden" booklet, featuring the results of the 2006 National Retirement Survey, won an Award of Excellence in the "Magazine Insert" category. To download a copy of this booklet, go to www.desjardinsfinancialsecurity.com/perfectgarden.

An eye-catching ad

A large billboard promoting group insurance at Toronto's Pearson Airport earned an Honorable Mention in the "Large Format Media Displays" category.

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. 526 entries were submitted this year.

About Desjardins Financial Security
Desjardins Financial Security is a subsidiary of Desjardins Group, the largest integrated cooperative financial group in Canada, and specializes in group and individual life and health insurance, and retirement savings products and services. Every day, over 5 million Canadians rely on Desjardins Financial Security to ensure their financial security. With a staff of over 3,700 employees, Desjardins Financial Security manages and administers over $22 billion in assets from offices in major cities across the country, including Vancouver, Calgary, Winnipeg, Toronto, Ottawa, Montréal, Québec, Lévis, Halifax and St. John's.

Desjardins Financial Security Acquires Real Estate from the Soeurs de la Charité de Québec in Lévis

Lévis, October 4, 2007 -- Desjardins Financial Security has acquired a sizeable real estate complex in Lévis belonging to the Soeurs de la Charité de Québec. This 40,000 m2 property is home to eight buildings including the Centre d'accueil Saint-Joseph de Lévis, an 'under agreement' long-term care facility (CHSLD) with 157 beds, and the Résidence Louis-Édouard Couture, a 25-bed 'not under agreement' facility.

This transaction is in line with the Company's investment asset category and geographical diversification objectives. "With long-term performance risk management and the evolving needs of an ageing population in mind, we feel that the time is right to increase our real estate holdings," indicated Desjardins Financial Security's Senior Vice-President of Finance, Mr. François Drouin.

Administration entrusted to Groupe Champlain

Mr. Drouin also confirmed that Desjardins Financial Security has absolutely no intention of running the Centre d'accueil Saint-Joseph de Lévis despite the fact that a decree recently issued by the Conseil des ministres du gouvernement du Québec has granted the Company the necessary authorization to do so. "We do not wish to become involved in health care management. As such, we will be proceeding as we do for the seniors' homes we already own by having an external administrator, recognized for its ability to maintain the high quality standards which seniors and their families can expect, manage the CHSLD and the Résidence Louis-Édouard Couture. Desjardins Financial Security has chosen Groupe Champlain (http://www.groupechamplain.qc.ca), a subsidiary of Sedna Health Group which currently manages 16 CHSLD-type 'under agreement' facilities in nine regions across Quebec. The President and CEO of Sedna, Mr. Michel Clair, indicated that his organization "will place at the disposal of residents and patients all the skills and expertise acquired over the years that have made Groupe Champlain a leader in long-term care and housing in Quebec." To ensure that patients continue to receive services and care with the level of efficiency and consideration which they have come to expect, no changes will be made to the CHSLD management team.

Desjardins Financial Security would like to further mention that the Company has not acquired this property with the intent of combining its life and health insurance and real estate activities to advantage its clients in any way. "Under no circumstances will Desjardins Financial Security be offering its clients preferred access to a bed in a CHSLD or accommodations in any other residential property which it owns, nor will the Company provide its clients with any type of discount," added Mr. Drouin. "Not only would this type of practice go against Desjardins Group's philosophy, but it is also prohibited under the Act respecting the distribution of financial products and services."

The Senior Vice-President of Finance at Desjardins Financial Security would also like to take this opportunity to pay tribute to the Sœurs de la Charité de Québec who, by selling their property, are winding down 130 years of active involvement in the Lévis community. "We owe them our appreciation and I would like to thank them for this long-term commitment to the population of Lévis, particularly in taking care of the orphans, persons with mental health disabilities and seniors they have helped with tireless dedication since 1879."

About Desjardins Financial Security
Desjardins Financial Security is a subsidiary of Desjardins Group, the largest integrated cooperative financial group in Canada, and specializes in group and individual life and health insurance, and retirement savings products and services. Every day, over 5 million Canadians rely on Desjardins Financial Security to ensure their financial security. With a staff of over 3,700 employees, Desjardins Financial Security manages and administers over $22 billion in assets from offices in major cities across the country, including Vancouver, Calgary, Winnipeg, Toronto, Ottawa, Montréal, Québec, Lévis, Halifax and St. John's.

Desjardins Financial Security Launches Three New Innovative Investment Funds Accessible in Multi-management

More accessible alternative investment strategies for pension funds

Montreal, September 11, 2007 -- As part of Optigestion, its multi-management investment program for pension funds, Desjardins Financial Security is offering alternative management accessibility for three new investment funds. They are the Alternative Investments Fund and the Emerging Markets Fund, managed by Desjardins Asset Management, and the Global Real Estate Fund, managed by CBRE Investors.

“Given the current interest rate climate, we feel it is essential that our clients be able to access alternative management asset classes“, explained Éric Filion, Senior Manager, Product Development and Marketing, Savings for Groups and Businesses, at Desjardins Financial Security. “The availability of these new funds illustrates Desjardins Financial Security’s desire to offer the best solutions possible to its group savings plan clients at a very competitive price.”

The objective of the Alternative Investments Fund, which is managed by Desjardins Asset Management, is to globally replicate the strategies used by traditional hedge funds. However, the Fund is structured to ensure full position transparency and complete accessibility for our pension fund clients.

“The Alternative Investments Fund is the product of several years of financial engineering research at Desjardins Asset Management, and we are very proud to be the first in Canada to make this type of investment vehicle available in conjunction with Desjardins Financial Security”, noted Jacques Lussier, Vice-President, Securities Investments and Financial Engineering, Desjardins Asset Management.
 
By offering access to several well-known managers, Desjardins Asset Management’s Emerging Markets Fund offers participation in the growth of developing countries, while benefiting from excellent diversification and reduced global portfolio volatility.   
 
Lastly, the Global Real Estate Fund offers hybrid investments that combine equities and bonds, thus generating a high level of income with competitive returns and improving the risk-return ratio of a diversified portfolio.

About Desjardins Asset Management
Desjardins Asset Management, a subsidiary of Desjardins Group, manages over $46 billion from the equity of the insurance subsidiaries and management authorizations that it has been awarded by other Desjardins Group components. Desjardins Asset Management brings together over 170 professionals in Montreal, Quebec City, Toronto and Vancouver. Its operations include mortgage investments, and business financing, real estate investments, securities investments and financial engineering. Desjardins Asset Management is a group of investment experts recognized for its value-added approach and innovation with regard to its asset management, advisory and financial product development services.

About Desjardins Financial Security
Desjardins Financial Security, a subsidiary of Desjardins Group, the largest integrated cooperative financial group in Canada, specializes in group and individual life and health insurance, and savings products and services. Every day, over 5 million Canadians rely on Desjardins Financial Security to ensure their financial security. With a staff of over 3,700 employees, Desjardins Financial Security manages and administers close to $22 billion in assets from offices in major cities across the country, including Vancouver, Calgary, Winnipeg, Toronto, Ottawa, Montreal, Quebec, Levis, Halifax and St. John's.

Desjardins Financial Security Provides Complimentary Three-day Travel Insurance for Shoppers Optimum™ Cardholders

Levis, September 6, 2007 -- Desjardins Financial Security Life Assurance Company (DFS) and Shoppers Drug Mart®/Pharmaprix® are pleased to announce that they have signed an agreement offering Shoppers/Pharmaprix Optimum Members™ three days of complimentary travel insurance, effective September 8, 2007.

Shoppers Optimum Members across the country will be protected under DFS’s Travel Insurance Emergency Health Care, Trip Cancellation, Accident and Baggage coverage for each trip of three days or less they take outside their home province. The coverage extends to spouses and dependent children when they are travelling with the member. What’s more, they have access to a free telephone travel assistance service available 24 hours a day to lend a hand in case they run into problems abroad. When they are travelling for more than three days, members simply extend their coverage for the entire duration of their trip by contacting Desjardins Financial Security and paying for the additional days. There is no need to activate coverage for trips of three days or less but if the trip lasts more than three days, coverage for the entire duration must be purchased for the complimentary offer to apply. Members can take as many three-day trips as they want.
 
“Shoppers Drug Mart is a trademark synonymous with exceptional service, value and trust, much like DFS,” said François Durocher, Vice-President, Sales and Business Development, Credit Insurance (Ontario, Atlantic and Western Regions) and AssurDirect at DFS. “Our partnership speaks volumes about how dedicated both companies are to the health and well-being of consumers.”
 
Laila Zichmanis, Senior Vice President, Marketing, Shoppers Drug Mart, said, “As the owner of one of the most recognized and largest loyalty card programs in Canada, our alliance with Desjardins Financial Security is an opportunity for Shoppers to provide an additional service to its  7.7 million active Shoppers Optimum cardholders across the country.”

Details about the program will be available at Shoppers Drug Mart/Pharmaprix stores, by calling Desjardins Financial Security at 1-866-735-7337 and at www.shoppersdrugmart.ca/travelinsurance.

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

About Shoppers Drug Mart
Shoppers Drug Mart is one of the most recognized and trusted names in Canadian retailing. Shoppers Drug Mart Inc. or its affiliates license full-service retail drug stores operating under the name Shoppers Drug Mart (Pharmaprix in Québec). With more than 1,000 Shoppers Drug Mart and Pharmaprix stores operating in prime locations in every province and two territories, the Company is one of the most convenient retailers in Canada. The Company also owns and operates 60 Shoppers Home Health Care® stores, making it the largest Canadian retailer of home health care products and services. In addition to its retail store network, the Company also owns MediSystem Technologies Inc., a provider of pharmaceutical products and services to long-term facilities in Ontario and Alberta. For more information please visit www.shoppersdrugmart.ca.

Desjardins Financial Security Reports Strong Growth Across Canada

2007 Second Quarter Financial Results
 

• Net earnings up 70.8%
• Return on shareholder equity of 25.7%
• Insurance sales growth of 22.9%
• Gross insurance premiums up 12.0%
• Profitability across the business lines
   

Levis, August 27, 2007 -- Desjardins Financial Security continues to have a very strong year. At the end of the first half of 2007, the net earnings of the life and health insurance and retirement services provider had risen from $69.2 million in 2006 to $118.2 million on June 30, 2007, for an increase of 70.8%.

After six months, the Company's income from insurance and annuity premiums and investment and other income stood at $1,386.4 million. Gross insurance premiums alone accounted for $1,178.5 million, up 12.0%, or $126.2 million. The Company recorded growth of 7.2% in Quebec and 25.1% in the other provinces. New insurance sales figures were impressive at $210.0 million, for an increase of $39.1 million over the first half of 2006. These excellent results are in part attributable to the sale of major group contracts in Ontario, Newfoundland and Labrador and Quebec. A few weeks ago, the Ontario Hospital Association signed a $75 million group insurance contract with Desjardins Financial Security for the benefit of the 70,000 employees of the Ontario health network's 185 employers. The contract took effect on August 1.

The share of Desjardins Financial Security's net earnings attributable to the Desjardins caisses, the Company's ultimate shareholders, stood at $111.4 million, up $43.3 million over last year. Return on shareholder equity was 25.7% versus 19.4% after the first two quarters of 2006, and remains one of the best in the financial services industry. The Company continues to make a substantial contribution to the profitability of Desjardins Group, its parent company and Canada's largest integrated cooperative financial group, whose net earnings before patronage dividends between January and June 2007 stood at $580 million.

Assets under management and administration totalled $22.4 billion, for an increase of $1.6 billion since the beginning of the year.

Second quarter results

For the period of April 1 to June 30, 2007, net earnings stood at $68.4 million compared to $38.7 million in the second quarter of 2006. Insurance premium income totalled $598.1 million, for a gain of 12.4%, while sales totalled $112.0 million.

Commenting on these results, Mr. Alban D'Amours, President and Chief Executive Officer of Desjardins Group, and also Chief Executive Officer of Desjardins Financial Security, said he was very pleased with the remarkable progress the Company had made in the Canadian market. "Desjardins Financial Security continues to differentiate itself in the Canadian marketplace, where it is enjoying a great deal of success, especially in the group and business insurance market. The quality and added value of Desjardins Financial Security's product offering is getting more and more recognition in the public and parapublic sectors and giving the Company an edge over its main competitors."

Desjardins Financial Security's President and Chief Operating Officer, Mr. Richard Fortier, said these results were the outcome of rigorously applying the Company's 3-year strategic plan.  "Without continually striving to improve our operational efficiency and significantly reduce our unit costs, we wouldn't be able to develop and market the competitively priced products and services we are offering not only to groups and businesses, but also to individuals, including the members of the Desjardins caisses, our financial centre clients and business partners.

Sector Results

Strong growth in group insurance sales

In the first six months of 2007, group and business insurance sales rose by 24.2% to total $189.6 million. Gross premiums stood at $695.5 million, for an increase of $107.8 million over the first six months of 2006.  These excellent results stem from the enrolment of groups with 1,000 or more participants and the natural growth of the groups already in place. Premiums, and credit insurance premiums in particular, generated by plans offered through financial institutions, including the Desjardins caisses, totalled $236.7 million, for an increase of $10.2 million.

Growth in individual insurance sales and premiums

In Individual Insurance, new sales realized during the six-month period ending on June 30 through the SFL financial centre network, Desjardins Financial Security Independent Network, and the Financial Security Advisors assigned to Desjardins caisses, grew by 12.1% to total $20.4 million. Gross premiums amounted to $230.4 million, for an increase of $9.1 million over last year.

Increase in mutual fund sales

In Savings, overall sales totalling $660.5 million exceeded last year's figures by $18.5. Mutual funds stood at $380.7 million versus $275.9 million a year ago. The marked growth (27.0%) in Millennia segregated fund sales, which reached $85.9 million, brings total individual savings sales for the first half of the year to $143.1 million, down 6.2% over 2006 results. In group retirement savings, sales totalled $136.7 million on June 30, which represents a 36.0% decline over the corresponding period in 2006, when major payout annuity contracts were signed.

About Desjardins Financial Security
Desjardins Financial Security is a subsidiary of Desjardins Group, the largest integrated cooperative financial group in Canada, and specializes in group and individual life and health insurance, and retirement savings products and services. Every day, over 5 million Canadians rely on Desjardins Financial Security to ensure their financial security. With a staff of over 3,700 employees, Desjardins Financial Security manages and administers over $22 billion in assets from offices in major cities across the country, including Vancouver, Calgary, Winnipeg, Toronto, Ottawa, Montreal, Québec, Lévis, Halifax and St. John's.

Five Top Tips to Help Kids Deal with Back to School Stress

The Psychology Foundation of Canada & Desjardins Financial Security partner to promote stress management strategies for families.

Joint Press Release from the Psychology Foundation of Canada and Desjardins Financial Security

Toronto, August 22, 2007 – What better time of year than ‘back to school’, to address the importance of teaching children to manage stress effectively? Despite what a surprising number of parents may think, the fact is that too many environmental stresses early in a child’s life can have some negative physiological effects on his/her overall long-term development.

Parents and caregivers are in the best position to introduce children to life-long stress management skills. Going back to, or starting a new school, can trigger stress in children. That’s why arming children with effective strategies to help them manage this time of transition is a wise time investment.

According to Dr. Ester Cole, psychologist and past Chair of both The Psychology Foundation of Canada (PFC) and the Ontario Psychological Association, "Any time of transition, including back to school, can create a range of emotions in children, including worry and stress. Helping your children with reliable information and a few simple tips on how they can have control over their everyday lives often helps put things into perspective for the family as a whole”.

The Psychology Foundation of Canada offers five top tips for parents and caregivers to help families at back to school time:
 

1. Start preparing your kids for school at least a week before. For example, shop for necessary school supplies, arrange some fun social times with new classmates, practice the route to school, have them review some of the school material from last year, and get them back into a school-time sleeping schedule.
    
2. Prepare a “Must Know” list for the school and teacher. The list will provide important information for the teacher, school office, or day care staff, such as allergies, illnesses, physical limitations, or any necessary accommodations that might need to be made, such as the best seating arrangement for your child in the classroom.
    
3. Listen carefully and respectfully to your children when they talk and watch for possible signs of stress. Watch for these signs – such as disturbed sleep, headaches and/or stomach pains, a lack of appetite (or eating more than usual), anxiety, or poor concentration – both before school starts and for several weeks after school begins. Don’t forget to ask your kids if they have any concerns or worries about the new school year, then follow up on their concerns and provide information, reassurance and problem solving help, as needed. Remind your kids that you are there for them at all times, even if they have gone away to university or college.
    
4. Be careful not to overload your child with too many competitive activities outside of school. Sometimes the best cure for stress is just to have some quiet time, or to have them be involved in a variety of non-competitive activities in the community or at home, such as walking the dog or volunteering at a community centre. Doing nothing sometimes is fine too!
    
5. Finally, be a motivator. Be positive about school with your children and help them feel it’s a good experience. Monitor and manage your own stress level so that it does not create more anxiety for them and so they can pick up some good stress management techniques from you too!
    

Through a series of information campaigns and upcoming events this fall, the partnership between PFC and Desjardins Financial Security will aim to create further awareness of important mental health issues in the workplace and at home, by providing sound stress management strategies that can be used by everyone in the family – including children.

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