Wawanesa has published its first integrated annual report, combining financial results with sustainability disclosures as the Canadian mutual insurer seeks to demonstrate how its operational resilience and climate strategy are connected.
According to the report, the 2025 financial results were the strongest on record.
Consolidated premiums reached $4.1 billion and consolidated net income came in at $556 million, a 25% increase over the prior year. Gross written premiums in P&C insurance reached $3.8 billion, a 3% increase on the previous year, with the combined ratio in commercial insurance improving to 91%, down 17.8 percentage points in 2024.
The man who built a career on small bets is placing a big one on Santa Monica
Upland Capital’s Doug Alexander has a message for every organization chasing AI right now: slow down and do the math. He’s bringing that point of view — and the accountability framework behind it — to InsuranceFest this July.
"The Report to our Members 2025 demonstrates how we're aligning performance with purpose, and accountability with ambition," said Evan Johnston, Wawanesa's president and CEO. "By integrating financial results with sustainability considerations, we enhance our ability to create enduring value as a mutual insurer."
The record performance arrives at a significant moment in Wawanesa's strategic evolution. The company completed the sale of its US subsidiary, Wawanesa General Insurance Company, to the Automobile Club of Southern California in March 2024, exiting the California and Oregon markets to concentrate entirely on Canada.
The 2025 results are the first full financial year since that refocusing, and the improvement in profitability suggests the strategic rationale has been validated.
Wawanesa is also expanding domestically through acquisitions. Everest Group announced an agreement to sell its Canadian retail insurance operations to Wawanesa in a transaction anticipated to close in H2 2026.
The deal adds Everest Canada's commercial specialty lines capabilities to Wawanesa platform. AM Best affirmed the company's Financial Strength Rating of A (Excellent) with a stable outlook in February 2025, underpinning the group's capacity to pursue acquisitive as well as organic growth.
The strong results come against a backdrop of sustained and rising climate-related losses.
Between 2016 and 2025, annual insured losses from catastrophic weather events and wildfires in Canada totaled $37 billion, nearly triple the figure from the previous decade, with the average number of claims almost doubling over the same period. That trend has put sustained pressure on property underwriting margins and reinforced the logic of embedding climate risk management into core business planning rather than treating it as a reporting exercise.
Amalgamation has become a pressing agenda item across the Canadian mutual sector, driven by concerns about technology investment, relevance to an increasingly consolidated broker network, regulatory burden and exposure to climate-driven catastrophe losses.
For Wawanesa, a capitalization ratio of 290%, record net income and an active acquisition pipeline provide a stronger platform than most mutuals to navigate those pressures.
