Co-operators General Insurance Company reported consolidated net income of $100.8 million for the fourth quarter of 2024. For the same period of 2023, the insurer reported net income of $98.5 million.

For the full year 2024, net income was $245.1 million, compared with $151.4 million in 2023. This is an increase of 62%.

“The Canadian insurance industry faced significant challenges in 2024 with a series of record-breaking climate-related weather events,” stated Co-operators President and CEO, Rob Wesseling.

“The catastrophic events in 2024 further highlight the need to stay focused on our long-term goal of building a more resilient and sustainable society,” he added.

The company was able to generate a positive underwriting result excluding discounting and risk adjustment. The result reached $5.1 million in the fourth quarter of 2024, compared with a loss of $46.3 million for the same period in 2023.

For the full year, underwriting results showed a loss of $106.9 million in 2024, compared with a loss of $184.9 million in 2023.

Combined ratio  

Co-operators General’s combined ratio for the fourth quarter of 2024 was 99.6%, compared with 104% for the last quarter of 2024. This result excludes discounting and risk adjustment.

For the full year, the combined ratio was 102.2% in 2024, compared with 104.4% in 2023.

The loss ratio, excluding discounting and risk adjustment, improved by 1.6 points in the fourth quarter of 2024 compared with the same period of 2023. For the full year 2023, this ratio stood at 71.6%, virtually unchanged from the forecast of 71.7% for 2023.

“The increase in net undiscounted claims and adjustment expenses was primarily driven by higher major event activity related to four major events during 2024 as well as higher accident year claims. The increase in current year claims were partially offset by lower prior year claims development compared to the prior year,” said the mutual insurer in its press release.

The four major events impacted Co-operators General's results in 2024, leading to higher claims mainly in the home and auto sectors. “The year-to-date losses, net of reinsurance and inclusive of costs relating to reinsurance reinstatement premiums, from these events totaled $220.6 million,” stated the mutual insurer in its MD&A.

Direct premiums  

Direct written premiums (DWP) in the fourth quarter of 2024 totalled $1.4 billion, an increase of $186 million or 15% compared with the fourth quarter of 2023.

This premium growth was seen across all lines of business and regions, but particularly in auto and home insurance.

For the full year, DWP totalled $5.6 billion in 2024, up $706 million or 14% from $4.9 billion in 2023.

Ontario remains the insurer's most important market, accounting for 50% of DWP for the full year 2024, compared with 35% for the four Western provinces, 9% for the Atlantic provinces and 6% for Quebec. Market share distribution was exactly the same in 2023, according to Co-operators General's management report.

Net insurance revenues rose by 12% in 2024, to $4.8 billion. The biggest increase was in auto insurance, up 18% over the previous year.

Auto insurance accounted for 47% of the mutual's written premium volume in 2024, while the other segments were, in order of importance, home insurance (26%), business insurance (18%) and farm, travel and other insurance (9%).

Investment income 

The Co-operators reported net investment income and gains of $126.3 million in the fourth quarter of 2024, compared with $196.1 million in the same quarter of 2023. The company attributes most of this decline to unrealized gains in its common shares and bond portfolios.

For the full year, net investment income totalled $470.5 million, compared with $345.1 million in 2023. This was as a result of “of an increase in unrealized gains on our common shares portfolio, a decrease in net losses on our bond portfolio and higher net investment income earned from stronger reinvestment yields,” stated the insurer.

Co-operators General's capital position remains strong, with a Minimum Capital Test (MCT) of 216% as at Dec. 31, 2024, “well above internal and regulatory minimum requirements,” says the company. The MCT for Co-operators General was 236% a year earlier.