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: 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.

If you would like further information on stress management strategies, parenting, work-life balance or PFC’s Kids Have Stress Too!® program, please visit: www.psychologyfoundation.org or www.kidshavestresstoo.org.

Upcoming Events

Managing to Manage Workplace Stress: Make Your Workplace Great! With Dr. Steven J. Stein 
 

• When: TUESDAY SEPTEMBER 25th, 2007 from 7:30am-9:00am, Toronto
• For: CEO’s, HR Professionals, EAP Specialists and other senior organization Decision-Makers
• Registration: Required
• Further Information: Krista Saleh at klsconsult@rogers.com
   

The Struggle to Juggle: Top Stress Management Strategies for You and Your Family With Dr. Steven Stein and Featuring Information from PFC’s Kids Have Stress Too!® Program
 

• When: TUESDAY SEPTEMBER 25th, 2007 at 12:15pm and 1:15 pm, First Canadian Place (FCP), Toronto
• For: Open to the Public, FCP Gallery (Located at Street Level, East of the Adelaide Main Entrance)
• Registration: Required. Register online after Labour Day Weekend, 2007 at http://www.fcpevents.com
   

(Media are invited to attend. Please RSVP to Krista at klsconsult@rogers.com or 416-878-7004.)

About Psychology Foundation of Canada
The Psychology Foundation of Canada (PFC) is a national registered charity that supports parents and strengthens families through a number of initiatives including creating educational resources, developing training programs for professionals, and delivering community-based education. Founded in 1974 to promote the understanding and use of sound psychological knowledge to better people’s lives, the Foundation is guided by a Board of Trustees comprised of psychologists and business and community leaders. PFC’s programs, like Kids Have Stress Too!®, Parenting for Life and Diversity in Action, help Canadians better understand how to manage situations and relationships more effectively at home, school, community and work. To find out more, or to order materials, please visit PFC’s Web sites at www.psychologyfoundation.org or www.kidshavestresstoo.org.

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 is committed to improve awareness of mental health promotion through a number of partnerships as well as its annual Health is Cool! survey. To find out more information about the Health is Cool! survey and other mental health promotion initiatives, please visit our Web site at www.desjardinsfinancialsecurity.com/cool

New OHA-Desjardins Financial Security Insurance Plan Provides Value-for-Money for Taxpayers

Toronto, June 27, 2007 – Better insurance programs for employees at a more competitive cost to Ontario healthcare providers are some of the most significant benefits of a new insurance partnership between the Ontario Hospital Association (OHA) and Desjardins Financial Security, the OHA announced today.

“Ontario’s hospitals are national leaders when it comes to efficiency and using the taxpayer’s resources wisely,” said Hilary Short, President and CEO of the OHA. “Our new agreement with Desjardins Financial Security will ensure that healthcare organizations have access to more competitive group insurance rates, help reduce administrative costs and provide greater value-for-money for taxpayers.”

OHA sponsored group benefit programs were created in 1962 to provide cost-effective insurance services to Ontario’s hospitals and other healthcare providers. In early 2007, the OHA undertook a market study review of these programs. After an extensive review of the marketplace, Desjardins Financial Security was selected as the OHA Benefit Plans provider.

"We are honoured by the confidence the OHA put in us by choosing DFS as the carrier for   their group benefits," said Alain Thauvette, Senior Vice President of Group and Business Insurance for Desjardins Financial Security.  "Our intention is to provide the best service and attention to detail in servicing the needs of the OHA, its members and their employees."

“With such a large workforce in Ontario hospitals and across the healthcare system, we have a responsibility to help ensure that insurance spending is as cost-effective as possible,” said Short. “There is a great financial advantage for hospitals in participating in this province-wide group benefits program.”

The OHA  Benefit Plans currently provide Long Term Disability, Basic and Voluntary Life  and Accidental Death and Dismemberment  coverage for approximately 185 Ontario healthcare employers representing 70,000 employees.  Health and Dental insurance coverage is also offered under this program.

About the OHA

Representing Ontario’s 158 public hospitals, the Ontario Hospital Association (OHA) advocates on behalf of its Members for an innovative, sustainable health system that provides world-class patient care. For more information about the OHA, visit their website.

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 more than 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.

Desjardins Financial Security Launches Retirement Zone Payout Concept

Advisors can help their clients see into their retirement futures and demonstrate solutions

Toronto, June 21, 2007 -- Desjardins Financial Security has developed a crystal ball to help Canadians forecast the potential outlook of their retirement incomes with the assistance of their financial advisor. With the launch of the Retirement Zone Payout concept -- the first of its kind financial simulator -- advisors and their clients can take the necessary steps to ensure that they can enjoy the secure retirement they've been working hard toward achieving.

The Retirement Zone Payout concept gives financial advisors a unique tool that clearly and visually demonstrates various scenarios that their respective clients can expect during their retirement.  This software engine allows for the advisor to demonstrate how a product such as a life annuity, part of the asset decumulation portfolio, can help ensure that funds are available to pay every-day living expenses throughout retirement and mitigate, for instance, longevity or inflation risk. 

"We wanted to help people find income for life because we noticed through our research that there is a proportion of Canadians at risk of outliving their retirement savings," says Michael Aziz, regional vice president of Sales Investment Products at Desjardins Financial Security. "Canadians do use financial advisors to help plan for retirement but once people retire, according to the 2006 DFS Retirement Survey, only 56 per cent say they have a plan on how to manage the asset decumulation period.”

The Retirement Zone Payout concept allows advisors to:
 

• Showcase using clear illustrations and animated charts, the advantages of a life annuity. The simulator demonstrates retirement income with and without this product.
• Illustrate life expectancy and the capital depletion.
• The risk of a person outliving his/her savings.
• Simulate return fluctuations for a portfolio, that does not include a life annuity, and from which withdrawals are made and
• Establish the amount of the life annuity to be offered and its payout solutions to ensure peace-of-mind during retirement.
   

Retirement Zone is bundled with the Fusion software produced by Desjardins Financial Security for the advisory community.

"Using Retirement Zone, it is easy to calculate the amount of the annuity that a client will need to ensure his or her income covers the expense for basic needs throughout their retirement," adds Aziz.
 
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 Reaches New Heights

With a 64% increase in first quarter net earnings…
 

• Net earnings up 63.5%
• Return on shareholder equity of 21.6%
• Sales insurance growth of 94.8%
• Gross insurance premiums up 11.5%
• Profitability in all business lines
   

Levis, May 28, 2007 – Desjardins Financial Security had a very strong first quarter, in fact the best ever in the company's history. Net earnings for this provider of life and health insurance and retirement savings products rose from $30.4M in the first quarter of 2006 to $49.8M on March 31, 2007, for a 63.5% increase. Operating income reached new heights at $68.1M, an improvement of $24.0M. This excellent quarterly performance is attributable mainly to improved disability claims experience, return on investment and administrative spending growth kept below income growth. Insurance premium income stood at $580.5M, up $60.1M. This brings total insurance, annuity and other premium income to $783.7M for the period. Insurance sales grew by 94.8% and totalled $98.0M, $47.7M more than on March 31, 2006. Assets under management and administration stood at $22.3B, for a $2.3B increase since the beginning of the year.

With performances like these, the Company continues to contribute solidly to the profitability of its parent company, Desjardins Group, the largest cooperative financial group in Canada.  From January to March 2007, Desjardins Group accumulated combined surplus earnings before patronage dividends of $265M. The portion of Desjardins Financial Security's net earnings attributable to its ultimate shareholders, the Desjardins caisses, stood at $48.0M, an improvement of $19.6M. Return on shareholder equity was 21.6%, compared to 16.3% in the first quarter of 2006, and remains one of the best in the financial services industry.

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 satisfied with the Company's performance in the first quarter of 2007. "Results like these, in a market as competitive as the Canadian life and health insurance market, are remarkable in themselves and a tribute to the quality of our insurance subsidiary's management team. Already well-established in Quebec, Desjardins Financial Security is perfectly positioned to pursue its development elsewhere in Canada, where it wants to double its market shares by the end of 2008."

Mr. Richard Fortier, President and Chief Operating Officer of Desjardins Financial Security, was particularly pleased with the Company's strong group and business insurance sales growth.  "The visibility we gained when we acquired the Government of Labrador and Newfoundland public service employees group insurance contract in 2006 has helped us sign major new contracts not only outside Quebec, where sales have increased by close to 70% in the first quarter, but also in Quebec, where we have more than tripled our sales over the same period."

Strong group insurance sales growth

In the first three months of 2007, net earnings for the group insurance line of business, including group and business insurance plans and plans offered through financial institutions, like the Desjardins caisses, stood at $31.8M, compared to $18.9M in 2006. In group and business insurance, sales have more than doubled compared to the first quarter of 2006, increasing from $42.0M to $88.7M. Premiums totalled $339.0M, for an improvement of $49.2M. These excellent results are due to the acquisition of new groups of 1,000 or more members, and the natural growth of existing groups. Premiums from plans offered through financial institutions, especially credit insurance plans, stood at $117.0M, for a $5.1M increase.

Individual insurance premium and sales growth

In this business line, net earnings totalled $12.9M, compared to $10.4M in the first three months of 2006. The 16.0% increase in Vision coverages sold through financial security advisors assigned to the caisses is primarily responsible for the 4.1% gain in gross premium volume, which stood at $116.4M for the period. Sales totalled $9.3M, a $1.0M improvement due mainly to a solid performance outside Quebec. Lastly, the premium volume for products sold by direct distribution stood at $21.5M, representing a $1.7M increase over the first quarter of 2006.

Increase in mutual fund sales

In Savings, net earnings for the first three months of 2007 stood at $5.1M, compared to $1.2M in 2006. Overall sales, which totalled $368.0M, were down by $19.8M over 2006. Mutual fund sales stood at $226.8M, compared to $162.4M a year earlier. In individual savings, Millennia sales had an excellent start to the year, crossing the $50.0M mark, for an 18.4% increase over 2006 figures. The Millennia III family of segregated funds was expanded and now includes four new Millennia III Franklin Templeton/QuotentiaI funds. These new funds were responsible for generating 30.7% of the quarter's sales. At $85.3M, total sales of individual savings products were down $8.6M from 2006. Group retirement savings sales totalled $55.9M, a drop of $75.6M from the first quarter of 2006, during which major contracts were signed and sales stood at $131.5M.

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.

Desjardins Financial Security Launches TRACE Lifecycle Environment

Gap emerging between Canadians’ personal values and workplace values
 

• Nearly 80% of Canadians do not consider themselves “workaholics”
• Family (54%), honesty (25%) and good health (23%) are the values most important to Canadians while work (10%) and money (5%) are among the least important.
• For 74% of Canadians, families are where they derive their values from. 
• Almost two-thirds of Canadian workers (65%) believe there is a gap between workplace and personal values.
• Only 27% of Canadians are convinced that work-life balance is possible.
   

TORONTO, Tuesday, April 24, 2007) – Bragging rights about being a workaholic may be coming to an end and being replaced by a focus on the family according to a study published today by Desjardins Financial Security. The study found that only 22% of Canadians now consider themselves to be a workaholic. When asked about the values most important to Canadians, 54% of Canadians listed family while work was only listed by 10% of Canadians.

Despite hectic work schedules, Canadians are working hard to put these family values into practice. Approximately 72% of Canadians plan vacations and 72% are having regular meals with their families and friends.

Canadians are not convinced that the priority they are placing on family is being fully supported by their workplaces. While many companies are implementing programs to promote work/life balance for their employees, the study results show that 65% of Canadians feel that the values at their workplace are not in tune with their personal values.

According to the survey one-quarter (25%) of Canadians are assured that their organization “walks the talk” when it comes to work-life balance and only 29% feel their employer truly cares about their work-life balance.

“Despite the general perception that work is increasingly defining us, this study shows that Canadians’ priority is still their family,” says Dr. David Goldbloom, Professor of Psychiatry at the University of Toronto.
 
“This gap between employees’ values and their workplace values is a warning sign to employers. If employees do not feel that they can balance their work and their personal priorities such as their families, not only are we going to see the number of Canadians struggling with mental health issues increase, but we are also going to face an employee base who are resentful, disengaged and stressed,” says Dr. Irvin Wolkoff, a psychiatrist in private practice in Toronto, and a commentator on mental health in the psychiatric and international community.

Released in anticipation of the Canadian Mental Health Association’s (CMHA) National Mental Health Week (May 7-13th), the study sponsored by Desjardins Financial Security explores Canadians’ perceptions of and experiences with mental health both at home and at work.

“With the war for talent in Canada escalating, employers cannot afford to ignore the needs of their employees. What we are seeing is that there is no longer a right employee for the job, but rather a right workplace and job for an employee, “says Alain Thauvette, Senior Vice President of Group and Business Insurance at Desjardins Financial Security.  “Employers who tune their workplace policies and culture to compliment and support employee values will attract the best and brightest talent.”

Despite the fact that Canadians want to put family first, many are beginning to question whether balance is possible. Although 81% of Canadians want to achieve work-life equilibrium, only 27% of respondents are convinced that work-life balance is attainable in our society and only 17% strongly believe our society supports its workers having good work-life balance.

This scepticism is leading Canadians to cope with stress instead of deal with the sources of stress head-on. Canadians report that when they are stressed, 43% do physical activities, 16% talk to someone they trust, 13% read a book and 11% engage in a relaxing activity such as yoga. Only two percent reduce their working hours and only 14% talk to their supervisors about their concerns regarding work / life balance.

“I’m not surprised to see that Canadians are frustrated in their attempts to create a balance between their work and the rest of their lives - they don’t feel it’s possible because of their workplaces,” says Glenn Thompson, CEO of CMHA, National.  “But our experience is showing us that more and more businesses are seeing the benefits of supporting work-life balance.  Ultimately, a mentally healthy employee is more productive and has fewer absences, making mental health a wise investment for employers.”

The Canadian Mental Health Association’s 56th annual National Mental Health Week (May 7-13) is presented this year by Desjardins Financial Security. Desjardins Financial Security will also be sponsoring the Psychologically Healthy Workplace Conference being held at the Rotman School of Management on May 3rd and 4th, 2007. 

For more information please visit: www.desjardinsfinancialsecurity.com/cool.

About the Survey
SOM Surveys, Opinion Polls and Marketing conducted the survey on behalf of Desjardins Financial Security between February 12th and March 14th, 2007. In total, 1,508 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 $20 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.

Excellent Insurance Sales Growth for Desjardins Financial Security in 2006
 

• Net income of $151.3 million
• Operating income growth of 9.7%, for a total of $202.8 million
• Return on shareholder equity of 20.7%
• Profitability in all business lines
• Net premium growth of 6.0% 
• Insurance premiums cross the $2-billion mark for the first time
• Group insurance sales outside Quebec grow by 135.6%
• Individual savings product sales grow by 10.5%
   

Levis, March 12, 2007 – For the year ended December 31, 2006, Desjardins Financial Security had operating income of $202.8 million, for a 9.7% increase.  The life and health insurer of Desjardins Group posted net income of over $150.0 million for the second year in a row. At $151.3 million, the Company’s figures were down slightly (2.0%) from the previous year, when income from continuing operations totalled $154.4 million. In 2005, certain non-recurring items, including a reversal of provisions from the settlement of impaired loan losses, had a positive impact on results that year. Had it not been for these exceptional factors, net income for 2006 would have exceeded 2005 figures. Return on shareholder equity remains one of the best in the financial services industry at 20.7%.

In terms of overall business growth, premium income from insurance and annuities was up 6.0%, for a total of  $2.4 billion. Insurance premiums crossed the $2-billion mark for the first time, to stand at $2.1 billion, for an increase of 8.4%.  Insurance sales were up 81.4%. Assets under management and administration stood at $19.9 billion, compared to $20.4 billion on December 31, 2005. 

Desjardins Financial Security therefore continues to contribute to the profitability of Desjardins Group, the largest cooperative financial group in Canada. In 2006, the Group reported combined surplus earnings before patronage dividends to members of $988 million. The share of Desjardins Financial Security’s income attributable to the Desjardins caisses, the ultimate shareholders, totalled $145.8 million, compared to $151.6 million in 2005.

Mr. Alban D’Amours, President and Chief Executive Officer of Desjardins Group and also Chief Executive Officer of Desjardins Financial Security, was very pleased with these results but stressed the importance of continually making our products more competitive. “We are confident that the momentum generated by our accomplishments in 2006 will remain strong in 2007, despite a fiercely competitive market.”

Mr. Richard Fortier, President and Chief Operating Officer of Desjardins Financial Security, noted that the results for this first year of the Company’s 2006-2008 Strategic Plan are more than just promising. They confirm that the Company is on the right track. “The gains made by each one of our business lines in 2006 are largely due to the strict application of our business plan.” Based on the major group insurance and savings contracts we signed in 2006 and the strengthening of our distribution capacity through the acquisition of certain Performa Financial Group assets, Mr. Fortier said he was convinced that ”if we stayed on course, in two years’ time, Desjardins Financial Security would be able to double its market share outside Quebec without impacting our growth in Quebec”.

Performance by business line

Group Insurance – This business line has two activity sectors: insurance plans offered to groups and businesses and insurance plans offered through financial institutions like the Desjardins caisses. Over the past five years, despite a fiercely competitive environment, the compound growth rate for our in-force group insurance business has remained strong.  It totals $99.6 billion versus $67.1 billion in 2001.

In 2006, net income for the Group Insurance business line exceeded $100 million for the third year in a row, to stand at $101.1 million compared to $102.5 million in 2005. In terms of net business growth in this sector, 2006 was a record year for Desjardins Financial Security following the signing of major group insurance and savings contracts, such as the contract covering the 36,000 public sector employees and retirees of the Government of Newfoundland and Labrador. Insurance sales to groups and businesses totalled $195.6 million, more than double the previous year’s sales figures ($95.2 million). Sales outside Quebec alone totalled $154.8 million. The enrolment of several large groups is responsible for the 9.5% increase in the premium volume administered by the business line, which totalled $1,743.3 million compared to $1,593.7 million a year earlier. Credit insurance premiums were up by 6.7%, allowing the Company to maintain its position among the top credit insurance providers in Canada.

Individual Insurance – This business line handles the offer of life and health insurance, as well as products sold without the assistance of a representative. In the past year, Desjardins Financial Security intensified its efforts to recruit and train financial security advisors to serve the needs of Desjardins caisses members. The Company also strengthened its product offering with the introduction of Universal Life T-100. To maintain its leadership position in health insurance development and marketing, the Company enhanced its Independent Living Long-Term Care insurance and launched a critical illness insurance for children.

Net income for this business line crossed the $40.0-million mark once again, to stand at $42.0 million. In 2005, the Company more than doubled its figures by posting $43.0 million in net income, compared to $18.8 million a year earlier. Sales grew by $4.6 million and totalled $38.4 million. This growth comes largely from outside Quebec, where a substantial increase of 51.7% was recorded. Financial security advisors assigned to the Desjardins caisses posted 12.3% growth in sales, which stood at $15.5 million. In operation since 2000, this distribution model crossed the 90,000 mark for in-force contracts in 2006. The total volume of individual insurance premiums stood at $374.2 million, up 3.3% due mainly to the 16.9% rise in the number of in-force contracts sold to Desjardins caisse members. Direct insurance premium volume was up 8.3% and totalled $52.5 million.

Savings – This business line offers individuals a wide range of retirement savings products, including guaranteed return investments, multiple strategy investments, as well as segregated funds and retirement annuities. For groups and businesses, Desjardins Financial Security has a comprehensive product offering of group registered retirement savings plans, defined contribution plans and simplified pension plans. Eager to  differentiate itself from the competition by the superior quality of its service offer and plan sponsor and member support and education, in 2006 the Company launched Destination, a new module of its Setting Sail for the Future education and retirement planning program designed to support plan members in transition towards retirement. In 2006, the business line also integrated an offer of life annuities into the Vision-Retirement program for Desjardins caisse members who are approaching or have reached retirement age. In individual savings, the introduction of new portfolios and a new partnership with Northwest Funds marked the beginning of a segregated funds redesign project. A new innovative offering of individual plans is now also in effect.
 
The Savings business line posted good results in 2006 as it did in 2005. Net income totalled $8.2 million, compared to $8.9 million in 2005. Sales totalled $1,062.4 million, an increase of $48.0 million over 2005. This excellent growth of 4.7% is due mainly to payout annuities, and to mutual fund sales bolstered by the integration of Performa Financial Group’s sales force in June 2006. Savings has experienced strong growth for the past two years. Sales have increased by 41.2% in two years’ time, which translates into premium volume growth of more than 20.0%. Efforts deployed by the group retirement savings team enabled the Company to increase its visibility and thereby its ability to attract major groups. In individual savings, annuity product sales were up, totalling $140.3 million more than in 2005. Segregated fund sales, which have experienced strong growth for the past three years, were up 15.3% and totalled $114.6 million in 2006.

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 $20 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.

Planning to Ride into the Sunset at Retirement with your Spouse?

A closer look at what prevents couples from retiring at the same time

Toronto, January 22, 2007 --  Many workers dream of exotic travel alongside their spouse or partner when they envision their life in retirement, but according to a recent retirement survey by Desjardins Financial Security, close to three-quarters (72%) of couples surveyed indicated they will not be able to retire in the same year as their spouse.

The first reason is quite simple - the difference in ages between spouses:
 

• Men are more likely to have to wait for their spouse to retire (34%) because their spouse is younger (56%).
• One in four (26%) respondents expects their spouse to retire before them, which is more likely to be the case for females (32%).
• Approximately one in ten (13%) respondents state that their spouse has already retired - particularly workers living in couples without children (23%).
   

Only three of out ten (28%) workers aged 40 years and older expect to be retired at the same time as their spouses, with the proportion being higher among full-time workers (32%).   Other considerations are of a financial nature.  For example one-third (36%) of respondents cite financial reasons, such as having to support children, for continuing to work after their spouse has retired.

"For couples with children, 67% indicated that their children still require their financial help to pay for their basic expenses such as lodging, food, education and transportation," says Monique Tremblay, senior vice president of Savings and Segregated Funds for Desjardins Financial Security.  "With a younger spouse continuing to work, there is a better chance the couple can still support adult children where needed, without prematurely using their retirement savings."

In addition to age and financial concerns however, the survey also revealed other reasons why the traditional picture of couples' retirement is fading.  When respondents 40 years old and over whose spouse's are already retired were asked why they choose to keep working past their partner or spouse's retirement, 20% said it was because they liked his or her job or because they owned their own business, while another 12% said it was "to have something to do".
 

"The results indicate that there is a willingness on the part of pre-retirees to continue working beyond their spouse's retirement, but there are several challenges in the ways it can be done," says Tremblay. "Although our benchmarking data shows that partial retirement is slowly trending downward from 61% in 2005 to 56% in 2006, it still reveals more than half of those surveyed in the forty-plus age group are willing to continue employment, so it is definitely worthwhile looking for win-win solutions for employers and workers."

Tremblay continues, "We dug a little deeper to find out if employers could contribute at all to the likelihood of these workers postponing retirement and for the first time in the five years we've researched this subject, access to health benefit plans resonated with this group. Couples may be finding that in addition to the social adjustments that come with the retirement of one spouse, potential increases in healthcare costs make access to those benefits worth a lot more than the dream of a honeymoon 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 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 3,600 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.

About SOM
In 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.

Desjardins Financial Security Launches Millennia III Franklin Templeton Quotential Portfolios

Becoming the only national insurance company to offer this investment solution

TORONTO, January 10, 2007 - Desjardins Financial Security expands Millennia III Segregated Funds portfolio with the addition of Franklin Templeton Quotential  Portfolios, as part of the Millennia lll Turnkey Solutions.

With this new addition to the Millennia III line up, Desjardins Financial Security becomes the only national insurance company to offer the Franklin Templeton Quotential Portfolios within a segregated fund.  This solution is ideal for investors looking for a good risk/ return ratio wrapped with the benefits of the Millennia III Plan - New Era contract, which include: 
 

• a 100% minimum capital  guarantee at death*;
• an annual automatic reset of the death benefit when the market value or inflation-adjusted value is higher than the existing death benefit;** and
• and, favourable estate-planning benefits.
   

"The new Millennia III Franklin Templeton Quotential Portfolios are designed to provide a turnkey approach that simplifies the advisor's role of rebalancing portfolios to meet client's investment objectives," says Monique Tremblay, senior vice president of Savings and Segregated Funds at Desjardins Financial Security. "Now, individuals can further reap the benefits of diversification normally available to wealthy investors and benefit from the experience and various management styles of a wide array of fund managers, while having a distinctive guarantee of capital only available with segregated funds."

"We are confident that Quotential will be a distinctive advantage to Desjardins Financial Security as they build a platform of proven investment solutions to provide their clients," said Don Reed, President and C.E.O. of Franklin Templeton Investments.  "We are pleased to expand our partnership within the Desjardins Financial Security Millennia III Segregated Fund platform."

The Millennia III Franklin Templeton Quotential Portfolios are now available through Desjardins Financial Security distribution partners such as Desjardins Financial Security Independent Network, SFL Partner of Desjardins Financial Security and other independent agencies across Canada.

* For deposits made before age 80.
**Escalation of the death benefit is available up to age 75.

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 3,600 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.