Desjardins Group revealed that in the fourth quarter of 2021, surplus (before member dividends) fell 55% to $ 393 million.
By comparison, insurers’ surpluses in the fourth quarter of 2020 were $ 876 million. De Jardin said the decline was partly due to increased costs associated with “strategic projects” and changes in actuarial assumptions associated with the life and health insurance businesses.
The decline in surplus revenue is noteworthy as De Jardin also reported that operating profit increased 14% to $ 5.5 billion in the fourth quarter of 2021. The insurer further said that for the full year, pre-membership surplus increased by 21.6% to $ 2.9 billion.
Desjardins said the decline in earnings in the fourth quarter of 2021 was somewhat offset by a loan loss reserve that fell from $ 169 million in the fourth quarter of 2020 to $ 16 million at the end of the year.
De Jardin takes a big revenue hit
Source link De Jardin takes a big revenue hit