(February 29 – 17:15 ET) – Desjardins-Laurentian Financial Corporation is reporting consolidated net earnings of $80.1 million for the year ended December 31, 1999, compared to $86.2 million in 1998. Net earnings per common share were $1.69, for return on common shareholders’ equity of 7.9%, compared to net earnings per share of $1.82 and return on equity of 9.3% in 1998.

“With the exception of Imperial, all our subsidiaries reported ROE of between 14% and 25%, which is equal to or even higher than that for their respective industries,” says Michel Thérien, President and Chief Executive Officer. “However, DLFC’s 1999 operating results were affected by the additional provisions required to compensate policyholders who had purchased pension plans in the United Kingdom and Imperial’s negative profitability. We are confident that the work in progress to reposition our life and health sector operations outside Quebec will help to improve our results in 2000,” says Thérien.

Net earnings in 1999 included a $38.1 million provision related to the guarantees given to policyholders of individual pension plans in the United Kingdom, while 1998 net earnings included a provision of $62.3 million. The impact of these provisions on consolidated results, after income taxes, non-controlling interests and reversal of provisions totalled $24.1 million and $25.2 million respectively in 1999 and 1998.

Société de portefeuille du Groupe Desjardins, assurances générales contributed $34.2 million to DLFC’s consolidated net earnings in 1999, compared to $32.4 million in 1998, representing ROI for DLFC of 14.3%, compared to 14.9% in 1998. Gross premiums written in 1999 totalled $512 million, up 6% from 1998.

Desjardins Specialized Financial Services Management contributed $12.1 million to DLFC’s consolidated net earnings in 1999, compared to $5.3 million in 1998

Desjardins Securities contributed $3.7 million to DLFC’s consolidated net earnings in 1999 compared to $3.8 million in 1998. Its contribution represents ROI for DLFC of 11.2%. compared to 12.2% in 1998. Total revenues were up 19% from 1998. Commissions rose 15%, reflecting the 51% increase in the volume of activity. The Desjardins caisses network accounted for 52% of commission revenue in 1999, compared to 53% in 1998. Assets under administration totalled $6.0 billion compared to $4.3 billion in 1998, a jump of 40%.
-IE Staff