Mr. Rob Wesseling reports

CO-OPERATORS GENERAL INSURANCE COMPANY REPORTS SECOND QUARTER 2025 RESULTS

Co-operators General Insurance Company today released its consolidated financial results for the three months ended June 30, 2025. The consolidated net income was $149.7-million, compared with $95.7-million for the same quarter in 2024. This resulted in earnings per common share of $5.35 for the quarter, compared with $3.36 in the same quarter of the prior year.

"The second quarter of 2025 was impacted by major weather events and persistent volatility in the market. Through focused adherence to our strategic plan, we achieved premium growth, positive investment portfolio returns and concluded the quarter with strong financial results," said Rob Wesseling, president and chief executive officer of Co-operators. "From our position of capital strength, we will continue to focus on investing in solutions that help Canadians build their financial security and resilience."

Second quarter review

In the second quarter, DWP (direct written premium) increased by 8.3 per cent to $1,642.3-million, compared with the same quarter of 2024, while NIR (net insurance revenue) increased by 13.9 per cent to $1,351.4-million, compared with the same quarter last year. The increase in DWP was across all core lines of business and regions, with the auto and home line of business and Ontario region being the major contributors. Growth in both DWP and NIR was a result of increases in average premiums, as well as growth in vehicles and policies in force attributable to new business.

Co-operators General's underwriting income, excluding discounting and risk adjustment, for the second quarter of 2025 was $63.9-million, an unfavourable change of $11.1-million from the underwriting income of $75.0-million in the same quarter of 2024. The unfavourable change was due to increases in both the net undiscounted claims and adjustment expenses of $133.3-million, and acquisition and other expenses of $42.4-million, outpacing the growth in NIR of $164.6-million.

The increase in net undiscounted claims and adjustment expenses was primarily driven by higher major event activity and current-accident-year claims. This increase was partially offset by improved prior-year claims development. The increase in acquisition and other expenses was driven by the growth in premium, which resulted in increased premium taxes, net commissions and insurance operation expenses. The above increases led to a slight deterioration in combined ratio, excluding discounting and risk adjustment, by 1.5 percentage points from the comparative quarter.

Net investment and insurance finance result increased by $84.9-million, representing $83.5-million in income in the current quarter, compared with a loss of $1.4-million in the comparative period. The favourable result was due to an increase of $53.9-million in total net investment income and gains, as a result of gains in equities, and a decrease of $31.0-million in total net finance expense from insurance and reinsurance contracts when compared with the same period in the prior year. The change was due to a relative increase in the yield curve compared with the prior period, which resulted in a decrease to discounted liabilities.

The company's balance sheet, liquidity and capital positions remain strong, and enable the company to continue to serve and meet the needs of its clients while also supporting its strategic areas of focus. The company's investment portfolio comprises high-quality and well-diversified assets. The credit quality of its portfolio remains high, with 96.9 per cent of bond portfolio considered investment grade and 76.2 per cent rated A or higher. The company's equity portfolio is 81.6 per cent weighted to Canadian stocks.

Capital

Co-operators General's capital position remains strong, as the minimum capital test for Co-operators General was 228 per cent as at June 30, 2025, well above internal and regulatory minimum requirements. The company continues to closely monitor capital levels in response to the changing economic environment.

About Co-operators General Insurance Company

Proudly Canadian since 1945, Co-operators is a leading financial services co-operative, offering multiline insurance and investment products, services and personalized advice to help Canadians build their financial strength and security. With more than $74-billion in assets under administration, Co-operators is known for its community involvement and its commitment to sustainability. Currently a carbon-neutral organization, Co-operators is committed to net-zero emissions in its operations and investments by 2040 and 2050, respectively. Co-operators is recognized as one of Canada's Top 100 Employers and ranked as one of Corporate Knights' Best 50 Corporate Citizens in Canada.

Co-operators General's Class E preference shares, Series C, trade under ticker symbol CCS.PR.C on the Toronto Stock Exchange.

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