Co-operators releases Q3 results

http://autoinsurancereview.tk/wp-content/uploads/2016/10/Finance_general_41-238x143.jpg

Co-operators releases Q3 results

Insurer posts net income of $16.3 million versus loss of $21.4 million in 2015 for same quarter.

Staff on October 28, 2016

Co-operators General Insurance Company today released consolidated financial results for the three months ended September 30, 2016. The consolidated net income was $16.3 million compared to a net loss of $21.4 million for the same quarter in 2015. This resulted in an earnings (loss) per common share of $0.71 for the quarter compared to ($1.07) in the same period last year.

During the quarter, there were no material changes to the Company’s estimated net losses for the Fort McMurray wildfires.

“Guided by our corporate strategy, our staff and advisors across the country are dedicated to putting clients at the centre of our decision-making and solution delivery. Their efforts are producing results, as we continue to achieve growth in all lines of business across the country,” said Kathy Bardswick, president and CEO of The Co-operators,” in a release.

“Our performance continues to be very strong, although our results reflect the impact of an increase in the severity of claims as well as significant unfavourable auto claims development during the third quarter. Offsetting our underwriting results was an improvement in our investment performance.”

DWP improvements during the third quarter were attributable to policy and vehicle count growth in all lines of business paired with higher average home and farm premiums. In the third quarter, DWP increased by 6.2% or $40.1 million to $691.0 million. NEP increased during the third quarter by 4.9% or $28.8 million compared to the same period last year. The increase in NEP is seen in all geographic regions and all product lines.

The combined ratio, excluding the market yield adjustment for the quarter, was 109.0% compared to 104.0% for the same period last year. Undiscounted net claims and adjustment expenses have increased by 11.6% from the third quarter of 2015, bringing the loss ratio to 77.2%. The increase was driven by the severity of current accident year claims across all lines of business, except farm, combined with higher unfavourable claims development within the auto line of business. The expense ratio increased by 0.3 percentage points, to 31.8%, as compared to the same period in 2015, driven by an increase in distribution staffing levels.

Net investment income and gains increased by $90.0 million versus the third quarter of 2015. In the third quarter of 2016, unrealized preferred share gains were $28.1 million higher than the same period in 2015, combined with realized common share and bond gains that were $29.9 million and $5.3 million higher, respectively. Impairment losses and favourable currency movements also supported improved results.

Source link

Co-operators releases Q3 results