This quarterly earnings news release should be read in conjunction with our first quarter 2024 unaudited condensed consolidated interim financial statements and management's discussion and analysis (MD&A) as well as our 2023 Annual Report which are all available on SEDAR+ at www.sedarplus.com. Unless otherwise noted, all amounts are expressed in Canadian dollars.
"Our first quarter results continue to reflect the trends we saw last year, as strong premium growth is being offset by increasing claims resulting in an underwriting loss," said
CO-OPERATORS GENERAL'S FIRST QUARTER FINANCIAL HIGHLIGHTS
($ in millions except for earnings per common share and ratios)
1st Quarter | 1st Quarter | |
2024 | 2023 | |
Key financial data | ||
Direct written premium (DWP) | 1,119.5 | 994.1 |
Net insurance revenue (NIR) | 1,122.5 | 1,017.6 |
Net income | 47.2 | 23.2 |
Total assets1 | 7,696.9 | 7,695.7 |
Shareholders' equity1 | 2,615.0 | 2,575.2 |
Key success indicators | ||
DWP growth | 12.6 % | 10.1 % |
NIR growth | 10.3 % | 6.3 % |
Underwriting result - excluding discounting and risk adjustment | (69.2) | (34.0) |
Earnings per common share (EPS) | ||
Return on equity (ROE) | 7.5 % | 3.6 % |
Combined ratio - excluding discounting and risk adjustment | 106.2 % | 103.3 % |
Minimum Capital Test (MCT)1 | 235 % | 236 % |
1 Balance sheet data and MCT results for 2022 are as at |
FIRST QUARTER REVIEW
In the first quarter, DWP increased by 12.6% to
Co‑operators General's underwriting loss, excluding discounting and risk adjustment, for the first quarter of 2024 was
The increase in net undiscounted claims and adjustment expenses was primarily driven by higher current year accident claims, reserve strengthening and major event activity. The increase was partially offset by improved prior year claims development. Accordingly, the combined ratio, excluding discounting and risk adjustment, increased by 2.9 percentage points from the comparative quarter.
Net investment and insurance finance income totalled
Net investment income and gains was
Our balance sheet, liquidity and capital positions remain strong and enable us to continue to serve and meet the needs of our clients while also supporting our strategic areas of focus. Our investment portfolio is comprised of high quality and well diversified assets. The credit quality of our portfolio remains high with 96.5% of bond portfolio considered investment grade and 82.6% rated A or higher. Our equity portfolio is 82.3% weighted to Canadian stocks.
CAPITAL
Co-operators General's capital position remains strong, as the Minimum Capital Test for Co‑operators General was 235% as at
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This document may contain forward-looking statements and forward-looking information, including statements regarding the operations, objectives, strategies, financial situation and performance of Co‑operators General. These statements generally can be identified by the use of forward-looking words such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "plan", "would", "should", "could", "trend", "predict", "likely", "potential" or "continue" or the negative thereof and similar variations. These statements are not guarantees of future performance and involve known and unknown risk, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in the forward-looking statements or information. Although we believe that the expectations reflected in the forward-looking statements and information are reasonable, there can be no assurance that such expectations will prove to be correct. Consequently, we make no representation that actual results achieved will be the same in whole or in part as those set out in the forward-looking statements and information. For further information, refer to our first quarter 2024 MD&A or our 2023 Annual Report.
ABOUT US
Co‑operators General is a leading Canadian multi-product insurance company and is part of The Co‑operators
Co‑operators
CONTACT INFORMATION
Investor Relations
Vice-President, Finance and Chief Accountant
Email: lesley_christodoulou@cooperators.ca
Media Relations
Email: media@cooperators.ca
SOURCE
© Canada Newswire, source