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Desjardins Financial Security posts net income of $30.5M, maintaining solid financial footing

2009 First Quarter Financial Results

Individual savings sales up $127.5M
Insurance premium volume up 3.2%
10.5% increase in insurance sales
$30.5 million in net income
Return on shareholder equity of 17.5%

Lévis (Québec), May 27, 2009 – For the period ending March 31, 2009, Desjardins Financial Security, a Desjardins Group subsidiary specializing in life insurance, health insurance and retirement savings products and services, once again recorded growth in insurance premium income, which stood at $669.2 million, up 3.2 per cent as compared to the same period last year. Insurance sales totalled $65.1 million, up 10.5 per cent from March 31, 2008. Despite the ongoing worldwide financial crisis, Desjardins Financial Security has maintained its profitability with a net income of $30.5 million as compared to $36.3 million for the same period in 2008.

For the first quarter of 2009, the net income share attributable to the shareholder—the Desjardins caisses—totalled $30.3 million. Return on shareholder's equity was 17.5 per cent and assets under management and under administration totalled $19.5 billion.

Desjardins Financial Security's financial strength has not been affected by the continued economic crisis. The company still has an excellent capitalization ratio and the fundamental insurance operations also remain very profitable.

Ms. Monique F. Leroux, President and CEO of Desjardins Group, and also CEO of Desjardins Financial Security, acknowledged the Company's contribution to Desjardins Group. "Despite the effects of the financial crisis, our life and health insurance subsidiary achieved significant growth in terms of business volume and remains a financially sound and strong company. Desjardins Financial Security continues to contribute significantly to Desjardins Group's results."

Mr. Richard Fortier, Chief Operating Officer of Desjardins Financial Security, said that he was satisfied with the results, drawing attention to the growth achieved in the areas of insurance premiums and sales. "This growth clearly shows that our products and services stand out in the Canadian market and that they are meeting the needs and expectations of our clients. Given these results, we are confident that going forward we will continue to strengthen and grow our business across Canada."

Results by business segment

In group insurance, the volume of premiums generated by groups and businesses totalled $402.6 million as compared to $392.8 million during the last quarter of 2008. Group and business insurance sales grew by $5.2 million for a total of $54.3 million.

In individual insurance, sales grew by 10.2 per cent and stood at $10.8 million for the first quarter. Sales by Desjardins Financial Security's financial centre network rose by 6.0 per cent in Quebec and 4.1 per cent in the rest of Canada. Sales by financial security advisors assigned to Desjardins caisses stood at $4.7 million, up 16.5 per cent. Gross premium volume totalled $125.8 million, up $5.6 million over the same period in 2008 for the individual insurance segment.

In savings, aggregate sales were $354.6 million, representing a $41.7 million increase over the previous year. In individual savings, aggregate sales were $221.6 million, up $127.5 million since the first quarter of 2008. Group retirement savings sales were $44.4 million, down $11.0 million

About Desjardins Financial Security

Desjardins Financial Security, a subsidiary of Desjardins Group, the largest cooperative financial group in Canada, specializes in providing life insurance, health insurance and retirement savings products and services to individuals and groups. Every day, over five million Canadians rely on Desjardins Financial Security to ensure their financial security. Desjardins Financial Security employs 3,800 people and administers $19.5 billion in assets from offices in several cities across the country including Vancouver, Calgary, Winnipeg, Toronto, Ottawa, Montréal, Québec, Lévis, Halifax and St. John's. For more information, visit our website at www.desjardinsfinancialsecurity.com

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Contact: Sarah Twomey
Desjardins Financial Security
Tel.: 416-926-2700 or 1-877-906-5551 ext. 2015
Virtual newsroom: http://www.desjardinsfinancialsecurity.com/press