Life and health insurer Desjardins Financial Security today posted a 55% jump in first-quarter profit to $40.6 million.

That was up from net earnings of $26.2 million in the first three months of 2004.

Of its profit for the period ended March 31, DFS said $38.5 million is allocated to shareholder Desjardins Group.

The results include a $9.4 million gain from the sale of DFS’s Bahamas division of Imperial Life, which was finalized in January.

Continuing operations reported net earnings of $31.9 million, up $5.2 million or 19.5% from 2004, the firm said.

Income from insurance premiums and annuities, investments and other income was $732.9 million, up from $711.3 million for the same period last year.

Group insurance activities in the quarter, including group loan life and disability insurance plans offered by financial institutions such as Desjardins Group, posted $20.6 million in net earnings, up 25.6% from the first quarter in 2004.

Group insurance premiums administered reached $251.2 million, up 9.3% from the corresponding period in 2004.

DFS specializes in life and health insurance and retirement savings and manages assets of over $15 billion.