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Aug 3, 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 fiscal 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 second 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, Aug. 3, 2023 /CNW/ - Co-operators General Insurance Company (Co-operators General) today released consolidated financial results for the three months ended June 30, 2023. The consolidated net income after tax was $29.9 million compared to a net loss of $51.5 million for the same quarter in 2022. This resulted in earnings per common share of $0.94 for the quarter, compared to a loss per common share of $2.04 in the same period last year.

"We continue to execute well against our corporate growth strategy with strong policy growth across most of our lines of business. However, profitability was negatively impacted this quarter by higher claims," said Rob Wesseling, President and CEO of Co-operators. "We also experienced favourable investment returns, which helps ensure our overall capital position remains strong and we can continue to invest in long-term solutions that provide financial security for Canadians."


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

2nd Quarter

2nd Quarter




2022 (Restated)


2022 (Restated)

Key financial data

Direct written premium (DWP)





Net insurance revenue





Net income





Total assets1





Shareholders' equity1





Key success indicators

DWP growth2

9.9 %

7.5 %

10.0 %

7.6 %

Net insurance revenue growth2

7.9 %


7.1 %


Underwriting result - excluding discounting and risk adjustment        





Earnings per common share





Return on equity

4.7 %

(8.2 %)

4.2 %

1.7 %

Combined ratio - excluding discounting and risk adjustment

105.7 %

95.1 %

104.6 %

94.4 %

Minimum Capital Test (MCT)1,2

234 %

251 %

234 %

251 %

1 Balance 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


In the second quarter, DWP increased by 9.9% to $1,321.4 million compared to the same quarter of 2022. There was an increase in DWP across all lines of business with the auto line of business being the major contributor with an increase of 10.7%. Similarly, DWP also increased across all regions with the Ontario region being the major contributor with an increase of 9.7%. For the auto, commercial and home lines of business DWP growth was a result of both policy growth and increases in average premiums. In the farm line of business higher average premiums was the main driver of the increase in DWP. DWP continued to increase in the travel and other lines of business compared with the second quarter of 2022.

Co-operators General reported an underwriting loss of $59.9 million for the second quarter of 2023, a decline of $107.5 million from the underwriting income of $47.6 million in the same quarter of 2022. The decrease was from a combination of net undiscounted claims and adjustment expenses which increased by $158.6 million while acquisition and other operating expenses rose by $25.4 million which outweighed the growth in net insurance revenue of $76.5 million.

The increase in net undiscounted claims and adjustment expenses was primarily driven by increases in current accident year claims and unfavourable claims development in auto, home and commercial, particularly in Ontario and the West. The increase in other expenses is driven by higher general expenses. Accordingly, our combined ratio excluding discounting and risk adjustment increased by 10.6 percentage points from the comparative quarter. Our combined ratio including discounting and risk adjustment increased by 10.6 percentage points over the comparative period as the change in the net impact of discounting and risk adjustment was minimal over this quarter of $56.6 million compared with the same period of the prior year of $51.6 million.

Net investment income and insurance finance result totalled $66.1 million for the quarter, an increase of $216.1 million compared to the same quarter in the prior year. The increase is a combination of stronger investment gains and net income from insurance and reinsurance contracts. Net investment income and gains were $39.9 million for the quarter, an increase of $216.9 million compared to the total net losses of $177.0 million in the comparative quarter. The favourable increase in net investment income and gains were attributed to realized gains on common equities, reduction of unrealized losses in bonds and common equities as well as stronger interest income on bonds due to the higher reinvestment yields on our bond portfolio.

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. Our investment in bonds is diversified both geographically and by sector, with a large portion invested in Canadian government debt instruments. The credit quality of our portfolio remains high with 80.9% rated A or higher and 95.5% of our bonds are considered investment grade. Our equity portfolio is 84.7% weighted to Canadian stocks.


Co-operators General's capital position remains strong, as the Minimum Capital Test for Co-operators General was 234% as at June 30, 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 second 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 $59 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, Finance, Accounting, Reporting and Chief Accountant
Telephone: 1-888-767-3909 Ext: 302493

Media Relations

SOURCE The Co-operators Group Limited

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