Desjardins Group reported a decline in surplus earnings before member dividends for the first quarter of 2025, with a significant drop in its Property and Casualty Insurance segment.
Surplus earnings for the quarter amounted to $738 million, down $117 million compared to the same period in 2024. The decrease was largely driven by higher claims expenses, primarily due to an increase in both the frequency and average cost of claims within the Property and Casualty Insurance business.
The insurance service result for the first quarter was $290 million, marking a decrease of $119 million from the previous year. The reduction in the insurance service result was attributed to rising claims expenses in the Property and Casualty segment, which impacted the group’s overall insurance performance.
Additionally, Desjardins’ net insurance finance result for the quarter was $174 million, down $136 million from Q1 2024. This decline was influenced by unfavourable developments in financial markets, further contributing to the decrease in overall surplus earnings.
The increase in provision for credit losses, which amounted to $210 million, also impacted Desjardins’ insurance results. The provision was higher compared to the $133 million recorded in the same quarter last year and reflects concerns over deteriorating credit quality and broader economic challenges, including those related to US tariffs.
Despite these challenges, Desjardins has continued to focus on enhancing its insurance offerings. The cooperative is committed to expanding and improving its service to members by investing in its operations. Non-interest expenses for the quarter rose by 7% to $2.74 billion, driven by higher spending on personnel and technology to support operational growth and strengthen service offerings.
While Desjardins faces pressures in its insurance business due to claims costs and external economic factors, the company said it remains focused on strengthening its insurance products and services for its members, as part of its broader commitment to socio-economic development.
