The cooperative attributed the decrease in its surplus mainly to an increase in insurance claims, mainly due to higher average claims costs in motor insurance, particularly due to the impact of inflation, and an increase in vehicle thefts.

The general insurance sector posted a deficit of 25 million in the first quarter compared to a surplus of 53 million a year ago.

Desjardins also reported a provision for loan losses of $105 million, an increase of $99 million from the same period last year, primarily related to its personal loan and credit card portfolios.

An increase in staffing, technology and security costs, designed to support growth and improve service offerings to members and customers, also weighed on results, Desjardins argued.

All of these items were partially offset by an increase in net interest income and an increase in “other income,” the financial institution said in a statement.

Last quarter’s surplus compared to a surplus of 451 million in the first three months of 2022. Net income for the quarter was $2.67 billion, down from $2.62 billion a year earlier.

The private and business sector recorded a surplus of 223 million before patron refunds, compared to 218 million a year earlier.

The surplus of wealth management and life and health insurance was 109 million, while last year it had reached 162 million.

The provision for patron refunds was 106 million in the first quarter, up 3.9% from the same period last year.

Desjardins Group’s total assets were $398.6 billion as of March 31, down $5.3 billion, or 1.3%, from December 31.