Lévis, Que.-based Desjardins Financial Security (DFS), the insurance arm of Desjardins Group, suffered a drop in net income in the first quarter (Q1) of 2015, according to the firm’s quarterly earnings announcement.

Net income for the DFS was $79.8 million in the quarter ended March 31 compared with $87.9 million in Q1 2014. Return on shareholders’ equity also dipped to 13.3% in Q1 from 14.2% in Q1 2014. However, the performance metrics achieved in Q1 2014 were attributed to a one-time adjustment to actuarial liabilities.

On the positive side, DFS’s individual insurance sales increased in Q1 as a result of completing its acquisition of State Farm Life Insurance Co.’s Canadian life and health insurance operations and shares of its mutual fund, loan and living benefits companies.

“We are very pleased with our performance in the first quarter of 2015. We posted a substantial increase in individual insurance and group retirement savings sales,” says Denis Berthiaume, DFS’s president and chief operating officer. “With the addition of State Farm’s life and health insurance operations, we have strengthened our position across Canada.”

Total individual insurance sales recorded by DFS advisors assigned to the Desjardins caisses, the SFL network, the Desjardins Financial Security Independent Network and the State Farm network were $16.7 million vs $11.9 million in Q1 2014.

Group and business insurance sales were $62.7 million in Q1 while sales for plans offered in financial services institutions totalled $38 million in the quarter.

Total net sales for group retirement savings rose to $781 million from $560.7 million in Q1 2014.

The firm also had an increase in its gross insurance premiums, to $966 million, up by 8.6% from Q1 2014. Assets under management and administration rose to $46.3 billion, up by 19.2% year-over-year.