Co-operators General Insurance Company Reports Third Quarter 2021 Results

This quarterly results press release should be read in conjunction with our unaudited third quarter 2021 condensed consolidated interim financial statements and MD&A as well as our 2020 Annual Report which are available on SEDAR at www.sedar .com. Unless otherwise indicated, all amounts are expressed in Canadian dollars.

GUELPH, ON, 28 October 2021 / CNW / – The Co-operators General Insurance Company (Co-operators General) today released its consolidated financial results for the quarter ended September 30, 2021. The consolidated net result was $ 86.8 million compared to the net income of $ 152.3 million for the same quarter in 2020. This translated into earnings per common share of $ 3.20 for the quarter, compared to earnings per share of $ 5.67 at the same time last year.

“Our solid financial performance is the result of continued momentum driven by positive technical results and the stability of our investments,” said Rob wesseling, CEO of The Co-operators. “From this position of capital strength, we can invest in solutions to better serve Canadians in a rapidly changing world, navigate the uncertainty within us and continue to prioritize the resilience of our clients and of our communities.

FINANCIAL HIGHLIGHTS OF THE THIRD QUARTER OF GENERAL CO-OPERATORS
(in millions of dollars except for earnings per share and ratios)







3rd trimester

3rd trimester

2021

2020


2021

2020

YTD

YTD

Key financial data





Direct Subscribed Premium (DWP)

1,109.0

1,076.3

3076.4

2 921.8

Net earned premium (NEP)

974.7

922.2

2 824.3

2,631.6

Net revenue

86.8

152.3

469.4

151.3

Total assets1

9 170.6

8,261.6

9 170.6

8,261.6

Equity1

2547.3

2 118.0

2547.3

2 118.0











Key indicators of success





DWP Growth

3.0%

7.7%

5.3%

4.1%

NEP growth

5.7%

9.7%

7.3%

9.3%

Underwriting result – excluding market yield adjustment (MYA)

61.1

77.9

396.5

93.9

Earnings per common share

$ 3.20

$ 5.67

$ 17.32

$ 5.44

Return on equity

16.1%

39.7%

30.5%

11.7%

Combined ratio – excluding MYA

93.7%

91.6%

86.0%

96.5%

Minimum capital test (TCM)1

261%

232%

261%

232%

1The balance sheet data and the results of the TCM for 2020 are as of December 31





THIRD QUARTER REVIEW

The third quarter of the year saw the DWP increase by 3.0% or $ 32.7 million compared to the same quarter of 2020 due to higher average premiums in the home and business lines of business and an increase in in-force policies in the business line in all regions. The NEP increased in the third quarter by 5.7% or $ 52.5 million compared to the same quarter last year, which was mainly attributable to the automotive and home sectors.

Net claims and undiscounted adjustment costs increased by $ 22.2 million Compared to the same quarter of 2020, however, our loss ratio improved by 1.1 percentage points to 60.5%, as PEN growth exceeded the increase in net claims and undiscounted adjustment costs. The increase in net claims and undiscounted adjustment costs is primarily due to the increase in current year claims in the domestic business line due to the increase in major events, and was offset by the increase in current year claims in the domestic business line. decrease in claims for the current year in the commercial and agricultural activity sectors. Our expense ratio of 33.2% increased 3.2 percentage points from the third quarter of 2020, as operating expenses increased at a faster pace than NEP due to increased expenses related to strategic initiatives and personnel costs. As a result, our combined ratio excluding MYA increased to 93.7% in the quarter, an increase of 2.1 percentage points compared to the same period last year. The discount rate used to measure our claim liability increased during the quarter, resulting in a favorable MYA of $ 2.3 million, compared to an unfavorable MYA of $ 22.5 million from the same quarter of last year.

During the third quarter, the economic recovery and continued vaccine rollout, supported by accommodative fiscal and monetary policies, led to continued gains in equity markets, while rising interest rates drove lower prices. bond valuations. Net investment income and gains from $ 48.5 million was recognized during the quarter primarily as a result of gains made on our common equity portfolio, interest income on bonds and dividend income.

Our balance sheet, liquidity and capital remain strong and allow us to continue to serve and meet the needs of our clients while supporting our strategic areas of intervention. Our investment portfolio is made up of high quality and well diversified assets. The credit quality of our portfolio remains high, with 96.3% of our portfolio rated as investment grade and 85.6% rated A or higher. Our equity portfolio is 84.6% weighted in Canadian equities.

CAPITAL CITY

Co-operators General’s capital position remains strong, as the minimum capital requirement for Co-operators General was 261% at September 30, 2021, well above the minimum internal and regulatory requirements. We continue to closely monitor capital levels in response to the changing economic environment with respect to the COVID-19 pandemic.

ATTENTION REGARDING FORWARD-LOOKING STATEMENTS

This document may contain forward-looking statements and forward-looking information, including statements concerning the operations, objectives, strategies, financial condition and performance of The Co – operators General. These statements can generally be identified by the use of forward-looking words such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, ” plan, “” “,” should “,” might “,” trend “,” predict “,” likely “,” potential “or” continue “or the negative of these and similar variations. These statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in forward-looking statements or information, including the impact of COVID-19 pandemic. on our investments, operations and claims adversely affecting the results of our operations and our financial position. Although we believe that the expectations reflected in the forward-looking statements and information are reasonable, there can be no assurance that these a tents will prove to be correct. Accordingly, we make no representation that the actual results obtained will be the same, in whole or in part, as those set forth in the forward-looking statements and information. For more information, see our management report for the third quarter of 2021 or our annual report 2020.

ABOUT THE CO-OPERATORS GENERAL INSURANCE COMPANY

With assets of over $ 9.1 billion, The Co-operators General is a leading multi-product insurance company in Canada. The Co-operators General is part of The Co-operators Group Limited, a Canadian cooperative. Through its group of companies, it offers home, auto, life, group, travel, commercial and agricultural insurance, as well as investment products. The Co-operators is well known for its community involvement and commitment to sustainability. The Co-operators is ranked among the 50 Best Corporate Citizens by Corporate Knights in Canada and is one of the best employers in Canada by Kincentric (formerly AON). For more information, visit www.cooperators.ca.

The Co-operators General Class E Preferred Shares, Series C trade under the symbol CCS.PR.C on the Toronto Stock Exchange (TSX). More information is available at www.cooperators.ca.

FOR MORE INFORMATION, PLEASE CONTACT:

Investor Relations
Lesley Christodoulou
Vice-President, Corporate Financing Services
Phone: 1-888-767-3909 Ext: 302493
E-mail: [email protected]

Media relations
E-mail: [email protected]

SOURCE The Co-operators Group Limited

Related links

www.cooperators.ca


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Justin D. O'Neill

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