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Feb 22, 2024

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 year, 2023 and 2022 results have been presented under the new standards. Results for 2021 have not been restated and are presented under the old standards. This annual earnings news release should be read in conjunction with our 2023 audited consolidated financial statements and management's discussion and analysis (MD&A), which include more information on the new accounting standards and the resulting changes, which are all available on SEDAR at Unless otherwise noted, all amounts are expressed in Canadian dollars.

GUELPH, ON, Feb. 22, 2024 /CNW/ - Co-operators General Insurance Company (Co-operators General) today announced its consolidated financial results for the three months and year ended December 31, 2023. For the fourth quarter, Co-operators General reported consolidated net income of $98.5 million, compared to $161.4 million for the same quarter in 2022. Earnings per common share was $3.48 for the fourth quarter, compared to $5.84 for the same period last year. Net income for the year amounted to $151.4 million, compared to $255.9 million in 2022. This resulted in earnings per common share of $5.17 compared to $9.10 in the previous year.

"This has been a challenging year for the insurance industry, but I'm proud of the work our team has done to stay focused on bringing our vision and strategic plan to life as an insurer, investor and co-operative partner," said Rob Wesseling, President and CEO of
Co-operators. "Continued negative trends in increased claims and inflation have led to an underwriting loss in the year which has been mitigated by strong premium growth. Positive investment results have supported us in keeping our strong capital position and from this position of capital strength, we will continue to invest in long-term solutions that provide financial security for Canadians."


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

4th Quarter

4th Quarter




2022 (Restated)


2022 (Restated)

Key financial data

Direct written premium (DWP)1





Net insurance revenue (NIR)1





Net income





Total assets4





Shareholders' equity





Key success indicators

DWP growth1,2

13.9 %

7.3 %

11.2 %

7.1 %

NIR growth1,2

10.2 %


8.1 %


Underwriting result - excluding discounting and risk adjustment1





Earnings per common share (EPS)3





Return on equity1,2

16.6 %

28.3 %

5.9 %

9.9 %

Combined ratio - excluding discounting and risk adjustment1

104.0 %

97.3 %

104.4 %

95.6 %

Combined ratio - including discounting and risk adjustment1

107.8 %

89.0 %

104.2 %

89.6 %

Minimum Capital Test (MCT)2

236 %

251 %

236 %

251 %

1 Refer to Key Financial Measures (Non-GAAP) Section

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

3 All of the common shares of CGIC are owned by CFSL; refer to the Dividends declared section below for dividends declared per share

4 Comprised of current and non-current amounts which are disclosed in the notes to the consolidated financial statements

Fourth Quarter Review

Fourth quarter DWP increased 13.9% over the same period of 2022 to $1,261.0 million, while NIR grew by 10.2% compared to the fourth quarter of prior year to $1,125.7 million. DWP and NIR growth over the comparative quarter was seen across all business lines and regions but particularly in the auto and commercial lines of business. The increase in auto is primarily attributable to higher vehicle growth and higher average premiums mainly in the Ontario and the West regions, while the increase in commercial is driven by higher average premium and growth in policies in force, primarily in the Ontario region.

Co-operators General reported an underwriting loss, excluding discounting and risk adjustment, of $46.3 million for the fourth quarter of 2023, a decline of $74.2 million from the underwriting income of $27.9 million in the same quarter of 2022. The result was from the increase in net undiscounted claims and adjustment expenses by $204.7 million, offset by the growth in net insurance revenue of $103.9 million.

The loss ratio for the quarter, excluding discounting and risk adjustment, was 70.6% compared to 57.8% from the same period of 2022, a deterioration of 12.8 percentage points. The unfavourable change is driven by higher current accident year claims, unfavourable claims development and reserve strengthening. Fourth quarter acquisition and other expenses declined over the comparative period by $26.6 million due to overall reduced insurance operations expenses.

Net investment income and gains for the fourth quarter was $196.1 million, an increase of $114.1 million compared to the same quarter in the prior year. The increase was primarily driven by unrealized gains in both our common share and bond portfolios. Higher interest income on bonds and increased dividend distributions further contributed to the increase.

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 bond portfolio considered investment grade and 82.6% rated A or higher. Our equity portfolio is 82.7% weighted to Canadian stocks.

Annual Review

We continued to grow proportionally across all core lines of business and in all regions in 2023 when compared to 2022. Higher average premiums and growth in policies in force led to an increase in DWP of 11.2% and NIR growth of 8.1% over the prior year.

Our underwriting loss, excluding discounting and risk adjustment, for 2023 was $184.9 million, a decline of $356.2 million from the underwriting gain of $171.3 million in the same period of 2022. This resulted from an increase in both the net undiscounted claims and adjustment expenses of $631.3 million and acquisition and other expenses of $43.7 million, which was offset by the growth in NIR of $318.8 million.

The increase in net undiscounted claims and adjustment expenses during the year was primarily driven by increases in current accident year claims and unfavourable claims development in auto, home and commercial lines of business, particularly in the Ontario region. Also contributing to the increase in claims was higher major event activity in the home line of business, particularly in the West region.

During the year the combined ratio, excluding discounting and risk adjustment, increased by 8.8 percentage points when compared to the prior year, while the ratio that includes discounting and risk adjustment increased by 14.6 percentage points. The net impact of discounting and risk adjustment significantly declined by $234.2 million to $6.4 million during the year, an unfavourable change when compared to the net impact of $240.6 million in the comparative period. This result was mainly due to substantial increases in bond yields during 2022.

Net investment income and gains increased by $452.5 million compared to the prior year, primarily due to unrealized gains in both common shares and bond portfolios. The increase was driven by favourable movements on the common share portfolio of $164.0 million and favourable movement in unrealized gains and realized losses on our bond portfolio of $137.2 million and $30.0 million respectively. This increase was driven by the stabilization of interest rates and subsequent strengthening of market valuations. Additionally, we experienced higher interest incomes attributable to the elevated interest rates. 


Co-operators General's capital position remains strong, as the Minimum Capital Test for Co-operators General was 236% as at December 31, 2023, well above internal and regulatory minimum requirements. We continue to closely monitor capital levels in response to the changing economic environment.


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 2023 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. Co-operators has more than $62 billion in assets under administration and 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 and Chief Accountant

Media Relations

SOURCE The Co-operators Group Limited

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