Desjardins Group sees profit rise in Q2 2024

Desjardins Group sees profit rise in Q2 2024 | Insurance Business Canada

Insurance News

Desjardins Group sees profit rise in Q2 2024

P&C insurance played a key role

Insurance News

By
Noel Sales Barcelona

Desjardins Group’s earnings, before member dividends, for the second quarter of 2024 have reached $918 million, a $365 million increase compared to the same period, according to the company’s latest financial report.

Desjardins said the increase was mainly due to the results of its property and casualty insurance segment, which saw fewer claims combined with higher revenues from automobile and property insurance.

The company also attributed the increase in its surplus earnings to the high performance of its personal and business services sector, which recorded a higher net interest income, connected to its growth and lower non-interest expense. The company has been able to lower its non-interest expense thanks to rigorous expenditure management, Desjardins said.

For Q2 2024, the provision for member dividends totalled $110 million, an amount comparable to that recorded in the corresponding period of 2023. In addition, sponsorships, donations, and scholarships amounted to $33 million, of which $16 million came from the Caisse community development fund.

“I am proud of these results for the second quarter of 2024, with surplus earnings before member dividends of $918 million, up $365 million from the same period of 2023,” said Desjardins president and CEO Guy Cormier (pictured).

“These results reflect the same upward trend as in the first quarter. As a result, Desjardins can give back to the community, in particular through our involvement in a partnership with the Québec government to make available more than 1,750 affordable housing units.”

Desjardins also said that it has intensified its support of community development projects through its GoodSpark fund. It has allocated $250 million to fund projects and initiatives to stimulate social and economic activity in local communities.

Desjardins reported that since 2017, the group has released a total of $198 million to 874 projects related to the GoodSpark fund.

In 2021, Desjardins also announced its campaign to curb carbon emissions in all its operations and plans to achieve zero emissions by 2040 in its three key carbon-intensive sectors – energy, transportation, and real estate.