DBRS has posted quarterly results for Canadian insurer Desjardins Group, reporting the company achieved net income of $401 million in Q1 2019 – which represents a 31% decline quarter-over-quarter.

The report noted that a “greater frequency of adverse weather-related events” in Canada during the first quarter negatively affected Desjardins’ P&C insurance segment, which led to more claims being filed. As a result, the loss ratio for P&C insurance increased to 86.5% in Q1 2019, compared to 79.5% in Q1 2018, generating a loss of $81 million.

DBRS warned that Desjardins’ loss ratio could remain elevated for the current quarter, due to ongoing adverse weather-related conditions in eastern Canada. However, the global credit rating agency explained that Desjardins maintains adequate reinsurance programs to withstand major losses. Desjardins’ recurring earnings have also been described as “strong and sufficiently diverse to absorb a temporary increase in claims activity” by the report.

The insurance group’s business segments enjoyed increased sequential revenue in Q1 2019, driven by Desjardins’ strong franchise in Quebec. Notably, there was a strong sequential growth of 7.6% in wealth assets under management to $61.8 billion in Q1 2019.