The Co-operators General Insurance Company is maintaining its vigorous growth.
It reported net income of $184.9 million in the second quarter of 2021, compared with $47.9 M in Q2 2020. The increase amounts to 286 per cent or $137 million.
The company also reported a combined ratio of 81.8 per cent in the second quarter of 2021. This is an improvement of 22.2 percentage points over the 104 per cent combined ratio reported for Q2 2020.
“In the second quarter of 2021, our financial performance was strong, driven by fewer extreme weather events, a continued trend of improved underwriting and a positive performance in our investment portfolio,” says Rob Wesseling, President and CEO of The Co-operators Group Limited.
The Co-operators General reported net investment gains and income of $80.4 million in the second quarter of 2021, compared with $135.1 million in Q2 2020.
Although positive, this result is down 40.5 per cent or $54.7 million. The decrease in net investment income and gains “was primarily the result of lower unrealized gains on our preferred share portfolio, combined with rising interest rates over the year, which led to realized losses on our bond portfolio,” the insurer explains
“During the second quarter, economic recovery and vaccine rollouts, supported by accommodative fiscal and monetary policies, have resulted in continued gains in equity markets while rising interest rates from the prior period of last year drove lower bond valuations,” Co-operators General says.
The Co-operators General reported net claims and adjustment expenses of $460.6 million in the second quarter of 2021, compared with $640.8 million in Q2 2020.
This amount decreased by 28.1 per cent or $180.2 million due to “lower major events in the current period, as the comparative quarter was impacted by two catastrophic events in Alberta.”
At the same time, the insurer reported an underwriting gain of $170.6 million in the second quarter of 2021, up from an underwriting loss of $33.6 million in Q2 2020.
The $204.2 million upswing was “primarily the result of lower total claims and adjustment expenses compared to the prior period, driven by lower major events in the commercial and home lines of business," the insurer says, adding that “we experienced net earned premium growth in the auto and home lines of business across all regions.”
In fact, the Co-operators General reported net earned premium (NEP) of $937.6 million in the second quarter of 2021, compared with $836.9 million in the second quarter of 2020. This represents an increase of 12 per cent or $100.7 million.
By comparison, direct written premium (DWP) rose to $1.1 billion in the second quarter of 2021, up from $1 billion in Q2 2020.
The insurer attributes the increase of 10.9 per cent or $110.6 million “to higher average premiums, an increase in policies in force in the auto and commercial lines of business in all regions, and from the Reduced Driving Refund lowering DWP in the comparative quarter.”
Intact Financial Corporation also released its financial results for the second quarter of 2021.