Co-operators General Insurance Company has released its consolidated financial results for the first quarter of 2025, reporting a decrease in net income and a rise in underwriting losses.
For the three months ended March 31, the company recorded a net income of $72.9 million, down from $93.8 million during the same period in 2024. This resulted in earnings per common share of $2.64, compared to $3.41 in the prior-year quarter.
Co-operators’ reported a notable increase in direct written premiums (DWP), which rose by 11.8% to about $1.25 billion, compared to about $1.12 billion in Q1 2024. Net income from operations (NIR) rose by 15.5% to $1.3 billion. The growth in both DWP and NIR was driven by higher average premiums and an increase in the number of vehicles and policies in force.
At the same time, Co-operators saw an underwriting loss of $22 million in the first quarter, a significant increase from the underwriting loss of $5.8 million in the same period last year. The change was largely driven by an increase in net undiscounted claims and adjustment expenses. The increase in claims was primarily due to higher accident claims, reserve strengthening, and major event activity.
The company’s net investment and insurance finance result for the quarter decreased by $8.6 million, with income from investments totalling $74 million, down from $82.6 million in the prior-year quarter. The decline was attributed to unrealized losses on common shares and preferred shares portfolios.
Despite the challenges, Co-operators’ capital position remains solid. As of March 31, 2025, the company’s minimum capital test was 222%, well above both internal and regulatory minimum requirements.
Rob Wesseling (pictured above), president and CEO of Co-operators, said that although the first quarter saw a higher frequency of weather events impacting underwriting results, the company’s approach to capital management helped it navigate volatility and continue serving its clients.
“In a period marked by persistent market and geopolitical uncertainty, we’ve remained focused on our purpose – financial security for Canadians,” said Wesseling.
The company also said it continues to monitor its capital levels in response to changing economic conditions. Co-operators General’s investment portfolio remains diversified, with 97.1% of its bond portfolio rated as investment grade and 76.9% rated A or higher.
