Desjardins takes massive earnings hit

Desjardins takes massive earnings hit | Insurance Business Canada

Desjardins takes massive earnings hit

For the fourth quarter of 2021, Desjardins Group has revealed that its surplus earnings (before member dividends) sank 55% to $393 million.

By comparison, the insurer’s surplus earnings in Q4 2020 were $876 million. Desjardins said the drop was in part due to higher expenses related to “strategic projects,” as well as changes in actuarial assumptions related to its life and health insurance businesses.

The sink in surplus earnings is notable, as Desjardins also reported that for the fourth quarter of 2021 its operating income increased 14% to $5.5 billion. The insurer additionally said that for the full-year, its surplus earnings before member dividends increased 21.6% to $2.9 billion.

Desjardins did mention that its Q4 2021 earnings slump was somewhat offset by the provision for credit losses falling to $16 million at the end of the year, from $169 million in Q4 2020.