Desjardins Q1 profit down due to insurance claims

Desjardins Group’s $401 million net income for the first quarter was $100 million lower than the same period last year due to property and casualty insurance claims, the co-op said Tuesday.

Desjardins’ first-quarter results also showed a decline in profit from the wealth management and life and health insurance segment. Net income for the quarter that ended March 31 was $139 million for that segment, compared to $206 million a year ago. The earnings release said the decline was due to smaller gains from the disposal of securities and real estate investments.

The co-op’s operating income increased by 6.9% year over year to $4.3 billion.

The property and casualty insurance segment saw a loss of $81 million, compared to a $26-million profit a year ago.

“Despite the impact of weather conditions on our results in property and casualty insurance, Desjardins performed well in the first quarter due to its highly diversified activities and the good results posted by the other business segments,” president and CEO Guy Cormier said in a statement.

The co-op said it’s monitoring the flooding in Ontario, Quebec and New Brunswick and, based on the available information, “the floods themselves will not have a significant impact on Desjardins Group’s financial results.”

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