Co-operators General Insurance reports higher net income for fourth quarter

Co-operators General Insurance Company reported a consolidated net income of $100.8 million for the fourth quarter of 2024, compared with $98.5 million a year earlier. Earnings per share were $3.55, up from $3.48 a year earlier. 

For the full year, net income reached $245.1 million, an increase from $151.4 million in 2023. Earnings per share rose to $8.60 from $5.17 a year earlier.  

President and CEO Rob Wesseling noted that climate-related weather events in 2024 affected underwriting profitability, but premium growth and investment results contributed to a strong capital position.  

Meanwhile, direct written premiums (DWP) rose by 14.8% in the fourth quarter to about $1.45 billion, while net earned revenue (NIR) grew by 13.5% to about $1.28 billion. Growth was seen in auto and home insurance due to increases in policies and higher average premiums. 

The loss ratio, excluding discounting and risk adjustment, improved by 1.6 percentage points due to lower major event activity. The expense ratio improved by 2.8 percentage points due to lower insurance operations expenses. 

Net investment income and gains for the quarter were $126.3 million, down $69.8 million from 2023, mainly due to lower unrealized gains in common share and bond portfolios. This was partially offset by higher bond interest income and dividend distributions. 

For the full year, DWP rose by 14.4% and NIR grew by 12.4%. The underwriting loss, excluding discounting and risk adjustment, improved to $106.9 million from $184.9 million. Claims and adjustment expenses increased due to four major events in 2024, contributing to $220.6 million in losses net of reinsurance. 

The combined ratio, excluding discounting and risk adjustment, improved by 2.2 percentage points. Net investment and insurance finance results increased by $59.2 million due to higher investment income and reduced losses on bond portfolios. 

Co-operators’ board also declared a quarterly dividend of $0.3125 per non-cumulative redeemable class E preference shares, payable on March 31 to shareholders of record on March 5. 

As of December 31, 2024, the company maintained a strong capital position with a Minimum Capital Test of 216%, exceeding internal and regulatory requirements.