Mr. Rob Wesseling reports

CO-OPERATORS GENERAL INSURANCE COMPANY REPORTS THIRD QUARTER 2025 RESULTS

Co-operators General Insurance Company today released its consolidated financial results for the three months ended Sept. 30, 2025. The consolidated net income was $228.0-million, compared with a net loss of $45.2-million for the same quarter in 2024. This resulted in earnings per common share of $8.35 for the quarter, compared with a loss per share of $1.71 in the same quarter of the prior year.

This quarterly earnings news release should be read in conjunction with the company's third quarter 2025 unaudited condensed consolidated interim financial statements and management's discussion and analysis (MD&A), as well as its 2024 annual report, which are all available on SEDAR+.

"While the industry remains challenged by expected severe weather events, economic pressures and competitive markets, our positive third quarter results demonstrate the strength of our strategy and our disciplined execution," said Rob Wesseling, president and chief executive officer of Co-operators. "Improved underwriting performance and strong investment returns reflect our focus on building long-term resilience. This foundation allows us to continue investing in solutions that help build financial security for all Canadians."

Third quarter review

In the third quarter, DWP (direct written premium) increased by 5.7 per cent to $1,601.4-million, compared with the same quarter of 2024, while NIR (net insurance revenue) increased by 15.5 per cent to $1,411.9-million, compared with the same quarter last year. The increase in DWP was across all core lines of business and regions, with auto and home lines of business in the West and Ontario regions being the major contributors. Growth in both DWP and NIR was a result of increases in average premiums and growth in vehicles and policies in force attributable to new business.

Co-operators General's underwriting income, excluding discounting and risk adjustment, for the third quarter of 2025 was $141.4-million, a favourable change of $322.3-million from the underwriting loss of $180.9-million in the same quarter of 2024. The favourable change was due to growth in NIR of $189.5-million and a decrease in net undiscounted claims and adjustment expenses of $162.6-million. This result was partially offset by an increase in acquisition and other expenses of $29.8-million.

The decrease in net undiscounted claims and adjustment expenses was primarily driven by lower major event activity as compared with the four major events in the prior-year period. The decrease was partially offset by higher current accident year claims. 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 change led to an improvement in combined ratio, excluding discounting and risk adjustment, by 24.7 percentage points from the comparative quarter.

Net investment and insurance finance results increased by $46.3-million, representing $127.9-million in income in the current quarter, compared with an income of $81.6-million in the comparative period. The favourable result was due to an increase of $7.0-million in total net investment income and gains, as a result of higher interest income and gains in common equities, and a decrease of $39.3-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 relatively smaller 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 Co-operators General 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 the company's portfolio remains high, with 96.8 per cent of bond portfolio considered investment grade, and 77.1 per cent rated A or higher. Its equity portfolio is 81.8 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 242 per cent as at Sept. 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 $78-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 Class E preference shares, Series C, trade under ticker symbol CCS.PR.C on the Toronto Stock Exchange.

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