By: Luke Jones, Published on April 5, 2017 03:10 PM, Last Update on April 11, 2017 12:50 PM
The Co-operators has released its inaugural Integrated Annual Report for 2016, showing that property damage made up more than 40% of its claims and benefits payments during last year.
With this report, the Guelph, Ont.-based provider is changing to a new type of financial reporting and is joining “a handful of pioneering Canadian companies” that will now reveal financial results in this way. Integrated reporting offers a “holistic analysis of how a company creates value for its stakeholders both in the short- and long-term.”
During 2016, The Co-operators paid $1.86 billion in total claims and benefits, with property damage accounting for 44% of the payments to clients. Collision repairs in the auto insurance market accounted for 20%, followed by injuries 16%, death and disability 10%, other 6% and medical and dental 4%.
As with all Canadian P&C companies last year, the Fort McMurray wildfire that tore through the Albertan town last May left a lasting effect on financials. The Co-operators reports fire accounted for 40% of property damage claims and benefits payments. This was a “larger-than-normal proportion due to the unprecedented wildfire” in Fort McMurray.
In terms of financial results, the company posts net income for 2016 at $234.6 million after tax, with net income for participating policyholders increasing significantly from 29.2 million in 2015 to 58.2 million in 2016.
Property and casualty direct premiums increased to $2.86 billion compared to $2.70 billion in 2015. Total net premiums were $3.31 billion, a year-on-year rise from $3.18 billion.
Other information the integrated annual report includes:
Robert Wesseling, president and CEO of The Co-operators, said in the statement that the report “critically examines how The Co-operators is grappling with emerging issues like more extreme weather, disruptive technologies, economic volatility, shifting demographics and more. Building resiliency in the midst of the complex challenges we face as a society today requires a holistic, collaborative approach. We’re proud to take an integrated view of our strategy, governance and operations as we work to protect the financial security of Canadians and their communities.”