Desjardins Group said Tuesday that fourth-quarter profits increased 22.6% to $206 million before dividends to members over the same period of 2003.

The Lévis, Que.-based financial co-operative said the increase in the quarter ended Dec. 31 is largely explained by the contribution of Desjardins Group subsidiaries, whose earnings for the last quarter of 2004 were up $58 million compared with a year ago.

“ For example, Desjardins General Insurance Group recorded a $23 million increase in earnings as a result of, among other things, a highly favourable claims experience and tight controls over operating costs, and this was achieved in a period that saw sustained growth in operations,” the company said in a news release. “Furthermore, it should be noted that results for the last quarter of 2003 were affected by problems in the venture capital subsidiary, which posted a loss of $27 million.”

Return on equity for the group was 11.5% for the quarter, vs 10.6% for the same period in 2003.

As of Dec. 31, total assets for Desjardins Group, including federations in Manitoba and New Brunswick, stood at $106.2 billion vs $98.7 billion in 2003.