As a result of new accounting standards for insurance contracts (IFRS 17) and financial instruments (IFRS 9) being applied for the first time in the current fiscal period, 2023 results have been presented under the new standards and 2022 results have been restated where possible. This quarterly earnings news release should be read in conjunction with our second quarter 2023 unaudited condensed consolidated interim financial statements and management's discussion and analysis (MD&A), which include more information on the new accounting standards and the resulting changes, as well as our 2022 Annual Report which are all available on SEDAR at www.sedar.com. Unless otherwise noted, all amounts are expressed in Canadian dollars.
"We continue to execute well against our corporate growth strategy with strong policy growth across most of our lines of business. However, profitability was negatively impacted this quarter by higher claims," said
CO-OPERATORS GENERAL'S SECOND QUARTER FINANCIAL HIGHLIGHTS
($ in millions except for earnings (loss) per common share and ratios)
2nd Quarter | 2nd Quarter | YTD | YTD | ||
2023 | 2022 (Restated) | 2023 | 2022 (Restated) | ||
Key financial data | |||||
Direct written premium (DWP) | 1,321.4 | 1,202.0 | 2,315.5 | 2,104.6 | |
Net insurance revenue | 1,045.4 | 968.9 | 2,063.0 | 1,925.8 | |
Net income | 29.9 | (51.5) | 53.1 | 20.6 | |
Total assets1 | 7,118.6 | 7,137.5 | 7,118.6 | 7,137.5 | |
Shareholders' equity1 | 2,482.7 | 2,586.9 | 2,482.7 | 2,586.9 | |
Key success indicators | |||||
DWP growth2 | 9.9 % | 7.5 % | 10.0 % | 7.6 % | |
Net insurance revenue growth2 | 7.9 % | N/A | 7.1 % | N/A | |
Underwriting result - excluding discounting and risk adjustment | (59.9) | 47.6 | (94.0) | 107.1 | |
Earnings per common share | ( | ||||
Return on equity | 4.7 % | (8.2 %) | 4.2 % | 1.7 % | |
Combined ratio - excluding discounting and risk adjustment | 105.7 % | 95.1 % | 104.6 % | 94.4 % | |
Minimum Capital Test (MCT)1,2 | 234 % | 251 % | 234 % | 251 % |
1 Balance sheet data and MCT results for 2022 are as at | ||||
2 Comparative period ratios have not been restated or are not available due to the transition to IFRS 17 on |
SECOND QUARTER REVIEW
In the second quarter, DWP increased by 9.9% to
Co-operators General reported an underwriting loss of
The increase in net undiscounted claims and adjustment expenses was primarily driven by increases in current accident year claims and unfavourable claims development in auto, home and commercial, particularly in
Net investment income and insurance finance result totalled
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. Our investment in bonds is diversified both geographically and by sector, with a large portion invested in Canadian government debt instruments. The credit quality of our portfolio remains high with 80.9% rated A or higher and 95.5% of our bonds are considered investment grade. Our equity portfolio is 84.7% weighted to Canadian stocks.
CAPITAL
Co-operators General's capital position remains strong, as the Minimum Capital Test for Co-operators General was 234% 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 second quarter 2023 MD&A or our 2022 Annual Report.
ABOUT US
Co-operators General is a leading Canadian multi-product insurance company and is part of
Co-operators
FOR FURTHER INFORMATION, PLEASE CONTACT:
Investor Relations
Vice-President, Finance, Accounting, Reporting and Chief Accountant
Telephone: 1-888-767-3909 Ext: 302493
Email: lesley_christodoulou@cooperators.ca
Media Relations
Email: media@cooperators.ca
SOURCE
© Canada Newswire, source