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:
- 72% net carbon emission reductions since 2010 (the target is carbon neutral equivalent by 2020);
- 144,821 Comprehensive Water policy endorsements in 2016. These endorsements provide coverage to protect property from overland flood and surface water damage (only available in Alberta and Ontario in 2016). The Co-operators target is 333,288 endorsements across Canada by the end of 2018;
- The number of fire sprinkler discounts in 2016 was 31,055, compared to 22,919 in 2015; the number of hybrid/electric vehicle discounts last year was 2,762 compared to 2,196 in 2015;
- The percentage of auto repairs completed at “green” shops was 50% in 2016, up slightly from 48% in 2015;
- The percentage of new clients who were multi-line in 2016 was 67%, up slightly from 66% in 2015;
- 60% of new clients who were Generation X or Y in 2016 was 60, up from 57% in 2015; and
- $7,559,330 was donated to Canadian co-operatives, not-for-profits and charities in 2016, up from $5,807,140 in 2015
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.”