By: Luke Jones, Published on July 30, 2017 12:04 PM, Last Update on July 30, 2017 09:05 AM
Co-operators General Insurance Company announced Thursday announced its second quarter financial results, reporting an underwriting loss of $6.6 million. For the three months ending June 20, direct premiums written were $768.7 million, a 6.4% increase from $722.6 million during Q2 2016.
Through the same period a year ago, the Ontario-based company said underwriting was at a loss of $82.3 million, mostly due to the impact of the Fort McMurray wildfire.
“Excluding the impacts of this catastrophic event, our underwriting results deteriorated by $30.0 million,” from Q2 2016 to the most recent quarter, The Co-operators said in a release. “This was driven by an increase in the frequency of current accident year claims across all lines of business, primarily the result of multiple storms in the West and Ontario, and an increase in severity of home accident year claims, partially offset by continued policy growth across all lines of business.”
The company also detailed its net income, including subsidiaries such as The Sovereign General Insurance Company, COSECO Insurance Company (COSECO), L’Équitable, Compagnie d’assurances Générale (L’Equitable) and others – in total the combined company made $29.1 million, improving on a net loss of $39.1 million year-on-year.
Its “capital position remains strong, as the Minimum Capital Test for Co-operators General was 223% at June 30, 2017, well above the internal and regulatory minimum requirements,” The Co-operators said in a press release.
The loss ratio for Co-operators was 67%, a 16.4-point improvement over 83.4% compared Q2 2016. Combined ratio also improved, from 114.3% a year ago to 101% in the most recent quarter.
“Excluding the reinsurance reinstatement premiums included in 2016, the home line of business remained our largest contributor to NEP growth.”