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May 11, 2023

As a result of new accounting standards for insurance contracts (IFRS 17) and financial instruments (IFRS 9) being applied for the first time in the current period, 2023 results have been presented under the new standards and 2022 results have been restated where possible. This quarterly earnings news release should be read in conjunction with our first quarter 2023 unaudited condensed consolidated interim financial statements and management's discussion and analysis (MD&A), which include more information on the new accounting standards and the resulting changes, as well as our 2022 Annual Report which are all available on SEDAR at Unless otherwise noted, all amounts are expressed in Canadian dollars.

GUELPH, ON, May 11, 2023 /CNW/ - Co-operators General Insurance Company (Co-operators General) today released consolidated financial results for the three months ended March 31, 2023. The consolidated net income was $23.2 million compared to net income of $72.2 million for the same quarter in 2022. This resulted in earnings per common share of $0.82 for the quarter, compared to earnings per common share of $2.60 in the same period last year.

"We had a challenging start to the year with increasing costs per claim and unfavourable claims development across our core lines of business," said Rob Wesseling, CEO of Co-operators. "Despite this, our balance sheet and strong capital position enable us to invest in a climate-resilient, sustainable society, while continuing to provide financial security for Canadians and our communities long into the future."


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

1st Quarter

1st Quarter


2022 (Restated)

Key financial data

Direct written premium (DWP)



Net insurance revenue



Net income



Total assets1



Shareholders' equity1



Key success indicators

DWP growth2

10.1 %

7.8 %

Net insurance revenue growth2

6.3 %


Underwriting result - excluding discounting and risk adjustment



Earnings per common share



Return on equity

3.6 %

11.9 %

Combined ratio - excluding discounting and risk adjustment

103.3 %

93.8 %

Minimum Capital Test (MCT)1

256 %

251 %

1Balance sheet data and MCT results for 2022 are as at December 31

2 Comparative period ratios have not been restated or are not available due to the transition to IFRS 17 on January 1, 2023


The first quarter of the year saw DWP increase by 10.1% or $91.5 million compared to the same quarter of 2022. There was an increase in DWP across all lines of business and all regions. For the auto and commercial lines of business DWP growth was attributable to both policy growth and increases in average premiums. In the home and farm lines of business higher average premiums were the main driver of the increase. DWP continued to increase in the travel and other line of business as the comparative quarter was still impacted by pandemic restrictions.

Net undiscounted claims and adjustments expenses increased by $103.0 million compared to the same quarter of 2022 resulting in a deterioration of our loss ratio excluding discounting and risk adjustment of 6.4 percentage points to 67.9%. The increase in claims and related expense was primarily attributable to increases in current accident year claims and unfavourable claims runoff of prior year claims in auto, home and commercial, particularly in Ontario. Our expense ratio of 35.4% rose 3.1 percentage points compared to the first quarter of 2022, as increases in the advisor transition commission expense, increased strategic spending and increased staffing costs all contributed to the deterioration from the comparative period. Consequently, our combined ratio excluding discounting and risk adjustment increased to 103.3% in the quarter, an increase of 9.5 percentage points compared to the same period last year.

The discount rate curve used to measure our claims liabilities decreased in the quarter resulting in an unfavourable impact of discounting and risk adjustment of $41.7 million. The decrease in the discount rate curve in the current period contrasts with a large increase in the discount rate curve in the comparative period, resulting in an overall unfavourable change from the impact of discounting and risk adjustment of $112.8 million. Consequently, our combined ratio including the impact of discounting and risk adjustment increased to 107.4% which is a 21.0 percentage point deterioration from the prior period.

Net investment income and gains was $103.3 million for the quarter, an increase of $140.8 million compared to the total net losses of $37.5 million in the comparative quarter. The increase was primarily driven by gains on our equity portfolio, unrealized gains on our bond portfolio, and higher interest income.

Our balance sheet, liquidity and capital positions remain strong and enable us to continue to serve and meet the needs of our clients while also supporting our strategic areas of focus. Our investment portfolio is comprised of high quality and well diversified assets. The credit quality of our portfolio remains high with 96.1% of our portfolio considered investment grade and 82.1% rated A or higher. Our equity portfolio is 84.2% weighted to Canadian stocks.


Co-operators General's capital position remains strong, as the Minimum Capital Test for Co-operators General was 256% at March 31, 2023, 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 2023 MD&A or our 2022 Annual Report.


Co-operators General is a leading Canadian multi-product insurance company and is part of The Co-operators Group Limited (Co-operators). Co-operators is a leading Canadian financial services co-operative, offering multi-line insurance and investment products, services, and personalized advice to help Canadians build their financial strength and security. The company has more than $58 billion in assets under administration. Co-operators has been providing trusted guidance to Canadians for the past 78 years. The organization is well known for its community involvement and its commitment to sustainability. Achieving carbon neutral equivalency in 2020, the organization is committed to net-zero emissions in its operations and investments by 2040, and 2050, respectively. Co-operators is also ranked as a Corporate Knights' Best 50 Corporate Citizen in Canada. For more information, please visit:

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


Investor Relations
Lesley Christodoulou
Vice-President, Corporate Finance Services
Telephone: 1-888-767-3909 Ext: 302493

Media Relations

SOURCE The Co-operators Group Limited

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