CO-OPERATORS GENERAL INSURANCE COMPANY REPORTS FIRST QUARTER 2025 RESULTS

Globe and Mail

08-05-2025

This quarterly earnings news release should be read in conjunction with our first quarter 2025 unaudited condensed consolidated interim financial statements and management's discussion and analysis (MD&A) as well as our 2024 Annual Report which are all available on SEDAR+ at www.sedarplus.com. Unless otherwise noted, all amounts are expressed in Canadian dollars.
GUELPH, ON , May 8, 2025 /CNW/ - Co-operators General Insurance Company (Co-operators General) today released consolidated financial results for the three months ended March 31, 2025 . The consolidated net income was $72.9 million compared to net income of $93.8 million for the same quarter in 2024. This resulted in earnings per common share of $2.64 for the quarter, compared to $3.41 in the same quarter of the prior year.
"In a period marked by persistent market and geopolitical uncertainty, we've remained focused on our purpose – financial security for Canadians," said Rob Wesseling , President and CEO of Co-operators. "While we experienced an elevated level of weather events in the first quarter impacting underwriting results, our disciplined approach to capital management allows us to navigate volatility, absorb shocks and continue supporting Canadians when they need us most."
($ in millions except for earnings per common share and ratios)
1st Quarter
1st Quarter
2025
2024
Key financial data
Direct written premium (DWP) 2
1,251.3
1,119.5
Net insurance revenue (NIR) 2
1,296.7
1,122.5
Net income
72.9
93.8
Net investment income and gains
97.5
105.6
Total assets 1
8,706.4
8,521.9
Shareholders' equity 1
2,898.2
2,805.9
Key success indicators
DWP growth 2
11.8 %
12.6 %
NIR growth 2
15.5 %
10.3 %
Underwriting result - excluding discounting and risk adjustment 2
(22.0)
(5.8)
Earnings per common share (EPS)
$2.64
$3.41
Return on equity (ROE) 2
10.6 %
15.1 %
Combined ratio - excluding discounting and risk adjustment 2
101.7 %
100.6 %
Minimum Capital Test (MCT) 1
222 %
216 %
1 Financial position data and MCT results for 2024 are as at December 31.
2 Refer to the Key Financial Measures (Non-GAAP) section.
FIRST QUARTER REVIEW
In the first quarter, DWP increased by 11.8% to $1,251.3 million compared to the same quarter of 2024, while NIR increased by 15.5% to $1,296.7 million compared to the same quarter last year. There was an increase in DWP across all core lines of business and regions, with the auto line of business and the Ontario region being the major contributors. Growth in both DWP and NIR was a result of increases in average premiums as well as growth in vehicles and policies in force attributable to new business.
Co-operators General's underwriting loss, excluding discounting and risk adjustment, for the first quarter of 2025 was $22.0 million , an unfavourable change of $16.2 million from the underwriting loss of $5.8 million in the same quarter of 2024. The unfavourable change was due to increases in both the net undiscounted claims and adjustment expenses of $154.7 million and acquisition and other expenses of $35.7 million , outpacing the growth in NIR of $174.2 million .
The increase in net undiscounted claims and adjustment expenses was primarily driven by higher current year accident claims, reserve strengthening and major event activity. This increase was partially offset by improved prior year claims development. The increase in acquisition and other expenses was due to increases in advisor commission and insurance operation expenses. The above increases led to a slight deterioration in combined ratio, excluding discounting and risk adjustment, by 1.1 percentage points from the comparative quarter.
Net investment and insurance finance result declined by $8.6 million for the quarter, representing $74.0 million in income in the current quarter, compared to income of $82.6 million in the prior period quarter. The unfavourable result was primarily due to a decrease of $8.1 million in total net investment income and gains when compared to the prior period quarter as a result of unrealized losses on our common shares and preferred shares portfolios.
Our balance sheet, liquidity and capital positions remain strong and enable us to continue to serve and meet the needs of our clients while also supporting our strategic areas of focus. Our investment portfolio is comprised of high quality and well diversified assets. The credit quality of our portfolio remains high with 97.1% of bond portfolio considered investment grade and 76.9% rated A or higher. Our equity portfolio is 81.5% weighted to Canadian stocks.
CAPITAL
Co-operators General's capital position remains strong, as the Minimum Capital Test for Co-operators General was 222% as at March 31, 2025 , well above internal and regulatory minimum requirements. We continue to closely monitor capital levels in response to the changing economic environment.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This document may contain forward-looking statements and forward-looking information, including statements regarding the operations, objectives, strategies, financial situation and performance of Co-operators General. These statements generally can be identified by the use of forward-looking words such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "plan," "would," "should," "could," "trend," "predict," "likely," "potential," and "continue," or the negative thereof and similar variations. These statements are not guarantees of future performance, and they involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in the forward-looking statements or information. We believe that the expectations reflected in the forward-looking statements and information are reasonable; however, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, levels of activity, performance or achievements. Consequently, we make no representation that actual results achieved will be the same in whole or in part as those set out in the forward-looking statements and information. For further information, refer to our first quarter 2025 MD&A or our 2024 Annual Report.
ABOUT US
Proudly Canadian since 1945, Co-operators is a leading financial services co-operative, offering multi-line insurance and investment products, services, and personalized advice to help Canadians build their financial strength and security. With more than $72 billion in assets under administration, Co-operators is well known for its community involvement and its commitment to sustainability. Currently a carbon neutral organization, Co-operators is committed to net-zero emissions in its operations and investments by 2040, and 2050, respectively. Co-operators is recognized as one of Canada's Top 100 Employers and ranked as one of Corporate Knights' Best 50 Corporate Citizens in Canada .
Co-operators General Class E Preference Shares Series C, trade under ticker symbol CCS.PR.C on the Toronto Stock Exchange (TSX).
For more information, please visit: www.cooperators.ca.
Investor Relations
Lesley Christodoulou
Vice-President, Finance and Chief Accountant
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