Lévis — Desjardins Group on Friday reported earnings before member dividends of $342 million for the first quarter, down 24.2% from the year-ago period, while total net sales rose 1.9%.

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 last year.

Desjardins also reported a provision for loan losses of $105 million, up $99 million from the prior-year period, 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 growth in net interest income and a rise in “other income,” the financial institution said in a statement.

The most recent quarter’s surplus compared to a surplus of $451 million in the first three months of 2022. $1 year earlier.

The private and business sector posted a surplus of $223 million before patron refunds, up from $218 million last year.

Wealth management and life and health insurance sector surplus was $109 million compared to $162 million a year earlier.

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.