Co-operators General Insurance Company reported consolidated net income of $123.4 million for the first quarter of 2026, up from $72.9 million a year earlier.
Earnings per common share rose to $4.46 from $2.64. Net insurance revenue increased 7.0% to $1.39 billion, outpacing 3.1% growth in direct written premium to $1.29 billion. The increase was driven largely by higher average premiums in home and auto across all regions, with the West a key contributor. Return on equity improved to 17.0% from 10.6%, while shareholders’ equity edged up to $3.13 billion and total assets stood at $9.25 billion.
Underwriting performance strengthened materially. Underwriting income, excluding discounting and risk adjustment, was $75.3 million, compared with an underwriting loss of $22.0 million in the first quarter of 2025.
The improvement reflected higher net insurance revenue and a $12.7 million reduction in net undiscounted claims and adjustment expenses, helped by lower current-year accident claims and fewer major events.
The stronger first-quarter result comes against a broadly supportive backdrop for the Canadian P&C market, where underwriting performance has improved for many carriers.
Recent industry data indicated that large Canadian P&C insurers have, on average, reported lower combined ratios over the past year as rate increases and portfolio remediation have earned through, particularly in personal auto and property.
Against that context, Co-operators General’s undiscounted combined ratio of 94.5% places it in a competitive range on underwriting profitability, sitting between the very largest national players and smaller regional carriers. Major peers such as Intact Financial and Aviva Canada have also reported sub‑100% combined ratios in recent periods, reflecting similar themes of prior-year rate actions, tighter underwriting and some moderation in catastrophe losses. Co-operators’ result is directionally consistent with that trend, while still leaving room for further margin improvement relative to the top-tier performers.
Net investment income and gains for the quarter were $57.9 million, down from $97.5 million a year earlier, primarily due to bond losses linked to rising interest rates, partially offset by higher recurring investment income.
Management said the investment portfolio remains high quality and well diversified, with the majority of the bond holdings investment grade and a significant weighting to Canadian equities.
Co-operators General’s capital position remains strong. The Minimum Capital Test ratio was 235% as of March 31, 2026, comfortably above regulatory and typical internal targets. That buffer provides flexibility to absorb market volatility, withstand higher weather-related losses and continue investing in technology and product development.
The combination of improved underwriting profitability, steady premium growth and robust capitalization suggests Co-operators General is well positioned to maintain capacity and compete on product breadth, particularly in personal lines.
As Canadian auto and property markets continue to evolve, the company’s ability to balance rate adequacy, claims trends and capital strength will remain a key focus for market observers.
