Co-operators General Insurance Companyincreased after four consecutive quarters of decline.
The company reports net income of $92.9 million (M$) in the third quarter of 2022, compared to $86.8 million in the third quarter of 2021. This is an increase of 7% or 6.1 million.
Excluding the market return adjustment, The Co-operators General reports underwriting income of $21.3 million in the third quarter of 2022 compared to $61.1 million in the third quarter of 2021.
This decrease of 65.1% or $39.8 million is mainly due to the increase in claims, especially in the automotive, residential and agricultural sectors, as a result of Hurricane Fiona, which swept through the Atlantic provinces and parts of Quebec towards the end of the current quarter,” says general partners.
“This catastrophic event reduced pretax net income by $56 million, net of reinsurance,” the insurer said.
As a result, net claims and regulatory expenses increased by 8.9%, or $52.5 million, from $587.7 million in the third quarter of 2021 to $640.2 million in the third quarter of 2022. This is “primarily attributable to Hurricane Fiona.”
As a result, the company sees its combined ratio worsen by 4.2 points “due to Hurricane Fiona”. This was 97.9% in Q3 2022 compared to 93.7% in Q3 2021.
“Hurricane Fiona had a devastating impact on our customers and we are working hard to help those affected through this difficult time. As climate change has increasingly severe and frequent impacts, the problem of access to adequate and affordable insurance will grow. So we have to to focus on prevention over protection,” he said. Rob WesselingCEO of The Co-operators, in connection with the publication of these results.
Collaborators General reports directly written premiums (PDS, direct written premium) of $1.2 billion in Q3 2022 compared to $1.1 billion in Q3 2021.
This increase of 6.8%, or $75 million, “is explained by an increase in policies in force in auto and business insurance combined with an increase in average premiums in business, home and farm insurance,” the company says. “Travel insurance PDS also increased as pandemic restrictions eased globally,” she said.
Gross written premiums (gross written premium) reached $1.2 billion in the third quarter of 2022, compared to $1.1 billion in the third quarter of 2021. They increased by 6.8% or $76.1 million.
Net earned premiums (net earned premium) reached $1 billion in the third quarter of 2022 compared to $974.7 million in the third quarter of 2021. They increased by 4.5% or $44 million.
Co-operators General reports net investment income and earnings of $79.5 million in the third quarter of 2022 compared to $48.5 million in the third quarter of 2021.
This increase of 63.9% or $31 million “is mainly attributable to realized gains on common stock and higher interest rates. However, these gains were overshadowed by increasing unrealized losses on preferred stock and unfavorable exchange rates.