(May 17 – 10:40 ET) – Desjardins-Laurentian Financial Corporation is reporting consolidated net earnings of $21.5 million for the first quarter of 2000. They’re up 25% from $17.2 million a year earlier. Net earnings per common share were 47¢ for return on common shareholders’ equity of 8.2%, compared to 35¢ and 6.8%, respectively, in the first quarter of 1999.
“This past quarter has been DLFC’s best ever since it was created in 1994. Clearly, we are extremely pleased. The stabilization of the U.K. regulatory authorities’ requirements as regards compensation for pension plan policyholders, as well as Imperial Life’s positive earnings performance were proven key success factors for DLFC”, said Michel Thérien, DLFC’s president and CEO. “The transactions carried out by our securities brokerage sector and the commissions generated were at an all-time high, while gross premiums written by our general insurance sector were up 13% during the quarter. Moreover, we are confident that the repositioning of our life and health insurance sector will enable Imperial Life to post positive earnings in 2000 and thus contribute to improving our consolidated results”, said Thérien.
The life and health insurance sector contributed $9.0 million to DLFC’s consolidated net earnings in the first quarter of 2000, compared to $7.8 million a year earlier. Life and health insurance sector ROI was 5.7% year-to-date. Desjardins-Laurentian Life Assurance contributed $8.7 million to the life and health insurance sector results, compared to $9.1 million in the year-earlier quarter. ROE was 11.2%.
Imperial Life contributed $0.3 million to the life and health sector results compared to a loss of $1.3 million in the first quarter of 1999. Improved individual and group network experience in short and long-term disability and health contributed to these favourable results.
Desjardins Specialized Financial Services Management contributed $1.7 million to DLFC’s consolidated net earnings in the first quarter of 2000, compared to $2.6 million in 1999. ROI year-to-date was 18.8%.
Desjardins Trust, DSFSM’s principal subsidiary, reported net earnings of $2.6 million for the first quarter of 2000, compared to $3.8 million in 1999. ROE was 17.2%. The volume of Desjardins funds outstanding totalled $4.2 billion at March 31, 2000, compared to $4.0 billion at March 31, 1999, a rise of 5%.
Desjardins Securities contributed $6.7 million to DLFC’s consolidated net earnings in the first quarter of 2000, compared to $0.7 million in 1999. ROI year-to-date was 71.5%. Opvest contributed $0.1 million to DLFC’s consolidated earnings in the first quarter of 2000. This susbidiary is managed as a shared service centre and its operating costs are allocated among DLFC’s other subsidiary companies.
-IE Staff