December 8, 2022

The Queens County Citizen

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Movement Desjardins: $ 387 million incentive refund

Movement Desjardins: $ 387 million incentive refund

Desjardins will pay its members $ 387 million in rebates this year, but is closing its doors to the idea of ​​offering its customers a rebate on auto insurance premiums, despite the reduction in disaster claims.

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On Wednesday, Lewis Cooperative announced its financial results for 2021. During this period, surplus earnings before Patronage Refunds reached a record $ 2.94 billion, up from $ 523 million in 2020.

During the press briefing, it was pointed out that the management has recorded the best performance in terms of recruitment in 20 years. In 2021, the Desjardins gained 83,000 new members, including 64,000.

The Desjardines Group says it is now in a good position to make purchases, especially in the field of risk insurance.

“We deserve our performance to be outstanding,” said President and CEO Guy Karmier, whose operating income crossed the $ 20 billion mark for the first time.

To illustrate its point of view, Desjardines stated that it would benefit, among other things, from a reduction in claims for damages at its Damage Insurance subsidiary, with a surplus of $ 575 million to $ 1.2 billion.

It must be said that most people with Telework use their vehicle sparingly. However, the co-operative said it had seen a significant resumption of operations on Quebec roads since September.

Despite the decline in claims, Deszardins does not intend to relieve its members of insurance contracts. In 2020, the co-op offered a three-month discount based on mileage.

“No. Repaying $ 155 million in 2020 is our adjustment. […] Our envelopes have grown significantly, ”said Mr. Carmier.

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The latter added that his company should also take into account in its calculations the impact of Mother Nature’s changes on claims.

$ 387 million was paid in incentive dividends, the highest amount since 2008, an increase of 17.3% compared to 2020. In addition, $ 110 million was paid in the form of sponsorships, donations and scholarships.

As a sign of financial recovery, the Desjardines Group cut its terms for credit losses last year. In 2020, Deszardins bailed out his treasury because the outlook was sluggish at the time.

In 2021, the provision for losses reached $ 69 million, down $ 794 million from the previous year.

An exception

For the fourth quarter of 2021, cooperative financial results were different for the full year. Revenues fell $ 483 million to $ 393 million before Patronage Refunds.

Management has justified this decline by investing in a number of “strategic projects” for “creation of technological platforms”, “data protection” and “security”.

Management recently injected $ 250 million into its security office with the Journal.

The revision of “Actual estimates of personal insurance activities” also had an impact on the group’s economy.

In numbers

Earnings before $ 2.94 million member dividend increased by $ 523 million or 21.6%

$ 387 million discount, 17% increase

83,000 new members, including 64,000 people

Source: Desjardins

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