Co-operators General sees earnings plunge
Co-operators General sees earnings plunge | Insurance Business Canada
Insurance News
Co-operators General sees earnings plunge
Net income in both Q4, full-year down
Insurance News
By
Terry Gangcuangco
Co-operators General Insurance Company’s earnings in the quarter and full year ended December 31, 2023, have taken a beating, with both figures down compared to those in 2022.
Here’s how Co-operators General performed in the periods:
Metric
Q4 2023
Q4 2022 (restated)
FY 2023
FY 2022 (restated)
Direct written premium (DWP)
$1.3 billion
$1.1 billion
$4.9 billion
$4.4 billion
Net insurance revenue (NIR)
$1.1 billion
$1 billion
$4.3 billion
$4 billion
Net income
$98.5 million
$161.4 million
$151.4 million
$255.9 million
Underwriting result – excluding discounting and risk adjustment
$(46.3 million)
$27.9 million
$(184.9 million)
$171.3 million
Combined ratio – excluding discounting and risk adjustment
104%
97.3%
104.4%
95.6%
Combined ratio – including discounting and risk adjustment
107.8%
89%
104.2%
89.6%
Lifting the lid on the underwriting losses, Co-operators General said in a release: “Co-operators General reported an underwriting loss, excluding discounting and risk adjustment, of $46.3 million for the fourth quarter of 2023, a decline of $74.2 million from the underwriting income of $27.9 million in the same quarter of 2022. The result was from the increase in net undiscounted claims and adjustment expenses by $204.7 million, offset by the growth in net insurance revenue of $103.9 million…
“Our underwriting loss, excluding discounting and risk adjustment, for 2023 was $184.9 million, a decline of $356.2 million from the underwriting gain of $171.3 million in the same period of 2022. This resulted from an increase in net undiscounted claims and adjustment expenses of $631.3 million and acquisition and other expenses of $43.7 million, which was offset by the growth in NIR of $318.8 million.”
Co-operators president and chief executive Rob Wesseling, meanwhile, commented: “This has been a challenging year for the insurance industry, but I’m proud of the work our team has done to stay focused on bringing our vision and strategic plan to life as an insurer, investor, and co-operative partner.
“Continued negative trends in increased claims and inflation have led to an underwriting loss in the year, which has been mitigated by strong premium growth. Positive investment results have supported us in keeping our strong capital position, and from this position of capital strength, we will continue to invest in long-term solutions that provide financial security for Canadians.”
What do you think about this story? Share your thoughts in the comments below.
Related Stories
Keep up with the latest news and events
Join our mailing list, it’s free!
