Co-operators General earns $149.7-million in Q2

Executive Summary

• Co-operators General Insurance Company reported consolidated net income of $149.7 million for Q2 2025, a significant increase from $95.7 million in the same quarter of 2024.
• Earnings per common share rose to $5.35 from $3.36 in the prior year period.
• The company achieved strong premium growth, with Direct Written Premium (DWP) up 8.3% and Net Insurance Revenue (NIR) up 13.9%, driven by increases in average premiums and new business volume.

Key Details

• Financial Performance:
  • Consolidated Net Income: $149.7 million (2025) vs. $95.7 million (2024).
  • Earnings Per Share: $5.35 (2025) vs. $3.36 (2024).
• Premium Growth:
  • Direct Written Premium (DWP): $1,642.3 million, an 8.3% increase year-over-year.
  • Net Insurance Revenue (NIR): $1,351.4 million, a 13.9% increase year-over-year.
  • Growth drivers included increases in average premiums and growth in vehicles/policies in force, particularly in auto, home, and Ontario regions.
• Underwriting Results:
  • Underwriting income (excluding discounting and risk adjustment): $63.9 million, a decrease of $11.1 million from $75.0 million in Q2 2024.
  • Net undiscounted claims and adjustment expenses increased by $133.3 million, driven by higher major event activity and current-accident-year claims.
  • Acquisition and other expenses increased by $42.4 million due to premium growth (premium taxes, commissions, and operation expenses).
  • Combined ratio (excluding discounting and risk adjustment) deteriorated by 1.5 percentage points.
• Investment & Finance Results:
  • Net investment and insurance finance result increased by $84.9 million, moving from a loss of $1.4 million in Q2 2024 to an income of $83.5 million in Q2 2025.
  • Total net investment income and gains increased by $53.9 million, primarily due to gains in equities.
  • Total net finance expense decreased by $31.0 million due to a relative increase in the yield curve, which reduced discounted liabilities.
• Capital & Balance Sheet:
  • Minimum Capital Test (MCT) ratio: 228% as of June 30, 2025, well above internal and regulatory minimums.
  • Investment Portfolio Quality: 96.9% of the bond portfolio is investment grade, with 76.2% rated A or higher.
  • Equity Portfolio: 81.6% weighted to Canadian stocks.

Notable Quotes

• "The second quarter of 2025 was impacted by major weather events and persistent volatility in the market. Through focused adherence to our strategic plan, we achieved premium growth, positive investment portfolio returns and concluded the quarter with strong financial results," said Rob Wesseling, president and chief executive officer.