Co-operators General sees more than tripling of net income
Co-operators General sees more than tripling of net income | Insurance Business Canada
Insurance News
Co-operators General sees more than tripling of net income
Drivers of underwriting gains revealed
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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