It has been just over a year since Gore Mutual Insurance Company announced a bold new transformation strategy, and Canada’s oldest property and casualty (P&C) insurer is already reaping the rewards.
The mutual insurer, which was founded in 1839, reported revenue growth of 8.3% for the full year ended December 31, 2020, with gross written premiums (GWP) of $515 million before customer relief initiatives. Its core business generated a combined ratio of 96.6%, but this was bumped up to 101.1% after the insurer made significant investments in areas like talent and technology as part of its Next Horizon transformation program.
Gore Mutual launched Next Horizon at the onset of 2020. The end goal is to transform the company in just a few short years from a mid-size, regional carrier to a national scale insurer that is underpinned by best-in-class technology and operating models. The mutual is already moving in the right direction, producing solid growth and underwriting results in 2020.
The P&C insurer was not immune to the unprecedented and unforeseen challenges presented by the COVID-19 pandemic. Throughout the year, Gore Mutual responded with a series of customer relief initiatives and the largest donation in the history of the Gore Mutual Foundation to support Canadian healthcare workers and communities.
“Our overall growth resulted from a combination of rate strengthening in commercial lines and policy growth in personal lines, both of which exceeded our plan,” said Gore Mutual CEO, Andy Taylor (pictured). “Gore Mutual is well capitalized and resilient, and our results position us well as we confidently move forward with our ambitious transformation while continuing to support our brokers, customers and communities throughout the pandemic.”
Gore Mutual has big plans for 2021. According to a company release, this year represents “the largest period of transformation in Gore Mutual’s Next Horizon journey” in which the firm will up its investments in people and core capabilities. In the coming months, the mutual insurer plans to increase its workforce by 25% and implement new technology platforms and operating models that will create improvements in service, response times, pricing and appetite.
“We’re already off to a strong start in 2021 with first quarter results trending positively and a strong pipeline of growth initiatives,” said Taylor. “This will be a landmark year for Gore Mutual as we unlock our potential to scale our business together with our broker partners across Canada.”
