Sun Life Financial Inc. today reported an increase in profit for the first quarter ended March 31, despite tough market conditions and the stronger Canadian dollar.

The company reported a quarterly profit of $533 million, or 93¢ a share, up from $497 million, or 86¢ a share, a year earlier.

“Difficult capital markets, global credit pressures and currency headwinds persisted during the quarter and moderated the company’s financial results,” said Donald Stewart, Sun Life’s CEO, in a release.

Sun Life said its operating earnings dipped to $533 million, or 93¢a share, from $558 million, or 96¢ a share.

The company said the stronger Canadian dollar against foreign currencies reduced its operating earnings by $43 million compared with the first quarter of 2007. Factoring out foreign exchange, the firm’s operating earnings per share would have risen 5% to $1.01.

Sun Life said its results were adversely affected by the decline in stock markets for its North American businesses, the unfavourable impact of wider credit spreads in its U.S. and Asian businesses, as well as credit-related charges in the United States.

The company did report stronger results from its U.S. insurance business, where earnings were up 15% year-over-year.