Skip to main content

News Releases

Co-operators General Insurance Company Reports First Quarter 2019 Results

Apr 26, 2019

This quarterly earnings news release should be read in conjunction with our first quarter 2019 unaudited condensed consolidated interim financial statements and Management's Discussion and Analysis (MD&A) as well as our 2018 Annual Report which are available on SEDAR at Unless otherwise noted, all amounts are expressed in Canadian dollars. 

GUELPH, ON, April 26, 2019 /CNW/ - Co-operators General Insurance Company (Co-operators General) today released consolidated financial results for the three months ended March 31, 2019. The consolidated net income was $21.8 million compared to a net loss of $27.8 million for the same quarter in 2018. This resulted in an earnings (loss) per common share of $0.84 for the quarter compared to ($1.35) in the same period last year.

"We continued to achieve strong premium growth in the quarter, and rising bond and equity markets led to strong investment performance," said Rob Wesseling, president and CEO of The Co-operators. "While our underwriting results improved, our combined ratio remains elevated driven by an increased frequency and severity of claims, particularly in our auto line of business. We continue to focus and execute on the actions required to return us to underwriting profitability."


($ in millions except for earnings per share and ratios)

1st quarter

1st quarter



Key financial data

Direct written premium (DWP)



Net earned premium (NEP)



Net income (loss)



Total assets1



Shareholders' equity1



Key success indicators

DWP growth



NEP growth



Earnings (loss) per common share



Return on equity



Combined ratio - excluding market yield adjustment (MYA)



Minimum Capital Test (MCT)1



1Balance sheet data and MCT results for 2018 are as at December 31

2Amounts presented include the results of operations and balance sheet of CUMIS General Insurance Company (CUMIS
General) from the date of acquisition, April 1, 2018


On April 1, 2018, CGIC entered into an agreement with a company under common control, to acquire 100% of the common shares of CUMIS General. As a result of the acquisition, amounts presented in our MD&A and unaudited condensed interim financial statements reflect CUMIS General's operating results since the acquisition date.

In the first quarter, DWP increased by 26.3% or $157.9 million to $757.6 million. The first quarter results of CUMIS General contributed 12.9% or $77.2 million to the overall increase. Excluding the impact of CUMIS General, DWP improved by 13.4% or $80.7 million. This was attributable to rate adjustments across all lines of business, combined with growth in vehicle and policy counts most notably in Ontario. NEP increased during the first quarter by 15.9% or $104.9 million compared to the same quarter last year. The first quarter results of CUMIS General contributed 5.7% or $37.6 million to the overall increase. Excluding the impact of CUMIS General, NEP grew by 10.2% or $67.3 million. The increase in NEP during the quarter is seen throughout all geographic regions and core product lines. The results of CUMIS General were also driven by the trends described above.

Excluding the impact of CUMIS General, undiscounted net claims and adjustment expenses have increased by 8.1% or $39.8 million from the first quarter of 2018. Increased frequency and severity of current accident year claims in the auto line of business, most notably in Ontario and the West, drove the increase in claims costs. This was partially offset by a decrease in the severity of current year accident claims in the home and farm lines of business. Strong premium growth offset the increase in claims costs, thereby decreasing the loss ratio from 74.5% to 71.9%. The expense ratio decreased by 0.5 percentage points to 32.5% and was driven by NEP growth which outpaced expense growth compared to the same period last year. Consequently, our combined ratio excluding MYA decreased to 104.4% in the current quarter, compared to 107.5% in the same quarter of 2018.

Net investment income and gains increased by $72.9 million compared to the same quarter last year as rising bond and equity markets drove investment gains. The MYA had an $18.6 million unfavourable impact on net income before tax as a result of a decrease in the discount rate.

Co-operators General's investment portfolio is comprised of high quality and well diversified assets. The credit quality of our portfolio remains high with 96.3% of our portfolio considered investment grade and 85.3% rated A or higher. Our equity portfolio is 84.7% weighted in Canadian stocks.


Co-operators General's capital position remains strong, as the Minimum Capital Test for Co-operators General was 217% at March 31, 2019, well above internal and regulatory minimum requirements. 


This document may contain forward-looking statements and forward-looking information, including statements regarding the operations, objectives, strategies, financial situation and performance of Co-operators General. These statements generally can be identified by the use of forward-looking words such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "plan", "would", "should", "could", "trend", "predict", "likely", "potential" or "continue" or the negative thereof and similar variations. These statements are not guarantees of future performance and involve known and unknown risk, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in the forward-looking statements or information. Although we believe that the expectations reflected in the forward-looking statements and information are reasonable, there can be no assurance that such expectations will prove to be correct.  Consequently, we make no representation that actual results achieved will be the same in whole or in part as those set out in the forward-looking statements and information. For further information, refer to our first quarter 2019 MD&A or our 2018 Annual Report.


With assets of more than $6.7 billion, Co-operators General is a leading Canadian multi-product insurance company. Co-operators General is part of The Co-operators Group Limited, a Canadian co-operative. Through its group of companies it offers home, auto, life, group, travel, commercial and farm insurance, as well as investment products. The Co-operators is well known for its community involvement and commitment to sustainability and is listed among the Best Employers in Canada by Aon Hewitt and Corporate Knights' Best 50 Corporate Citizens in Canada.

Co-operators General Class E, Series C Preference Shares trade under ticker symbol CCS.PR.C on the Toronto Stock Exchange (TSX). Further information can be found at

SOURCE The Co-operators

For further information: Karen Higgins, Executive Vice-President, Finance and Chief Financial Officer, Telephone: (519) 840-3167

Back to news releases

Find us on:

  • Facebook
  • Twitter
  • YouTube