Co-operators General sees more than tripling of net income

Drivers of underwriting gains revealed

Co-operators General sees more than tripling of net income

Insurance News

By Terry Gangcuangco

Co-operators General Insurance Company has published its earnings report for the second quarter of 2024, during which its net income more than tripled.

It attributed the major turnaround to a combination of growth in NIR and a decline in the net undiscounted claims and adjustment expenses.

Here’s how Co-operators General performed in the three months ended June 30:

Metric

Q2 2024

Q2 2023

Direct written premium (DWP)

$1.52 billion

$1.32 billion

Net insurance revenue (NIR)

$1.19 billion

$1.05 billion

Net income

$95.7 million

$29.9 million

Net investment income and gains

$63.9 million

$39.9 million

Underwriting result – excluding discounting and risk adjustment

$75 million

$(59.9 million)

Combined ratio – excluding discounting and risk adjustment

93.8%

105.7%

 

Co-operators General noted: “The increase in DWP was across all core lines of business, with the auto line of business being the largest contributor, with an increase of 22.9%. Similarly, DWP increased across all regions with the Ontario region being the major contributor with an increase of 17.3%.

“DWP and NIR growth was a result of higher average premiums and growth in vehicles and policies in force attributable to both higher retention and new business.”

“Our continued focus on disciplined growth and an improved claims experience during the second quarter resulted in an underwriting gain,” Co-operators president and chief executive Rob Wesseling (pictured) said.

“This result, coupled with another strong quarter of investment results, helps ensure our overall capital position remains strong and allows us to continue supporting our clients while investing in a resilient and sustainable society.”

Capital-wise, Co-operators General highlighted that its capital position remains strong, with the Minimum Capital Test for the insurer standing at 223% as of the end of June.

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