This quarterly earnings news release should be read in conjunction with our second quarter 2026 unaudited condensed consolidated interim financial statements and management's discussion and analysis (MD&A) as well as our 2025 Annual Report which are all available on SEDAR+ at www.sedarplus.com. Unless otherwise noted, all amounts are expressed in Canadian dollars.
GUELPH, ON, Aug. 5, 2026 /CNW/ -- Co-operators General Insurance Company (Co-operators General) today released consolidated financial results for the three months ended June 30, 2026. The consolidated net income after tax was $174.8 million compared to $149.7 million for the same quarter in 2025. This resulted in earnings per share of $6.21 for the quarter, compared to $5.35 in the same quarter of the prior year.
"As Canadian insurers continue to navigate rising claims costs and increasingly complex risks from climate-related impacts and economic uncertainty, these results highlight the necessity of our disciplined approach to underwriting and prudent investment management," said Rob Wesseling, President and CEO of Co-operators General. "As we look ahead, we remain focused on sustainable growth, financial strength and our unwavering commitment to helping Canadians build financial security and resilience."
CO-OPERATORS GENERAL'S SECOND QUARTER FINANCIAL HIGHLIGHTS
($ in millions except for earnings per share and ratios)
| 2nd quarter
2026 | 2nd quarter
2025 | YTD
2026 | YTD
2025 |
Key financial data Direct written premium (DWP)2 | 1,701.2 | 1,642.3 | 2,991.9 | 2,893.6 |
Net insurance revenue (NIR)2 | 1,420.2 | 1,351.4 | 2,807.9 | 2,648.1 |
Net income | 174.8 | 149.7 | 298.2 | 222.6 |
Net investment income and gains | 152.6 | 117.8 | 210.6 | 215.3 |
Total assets1 | 9,392.1 | 9,215.3 | 9,392.1 | 9,215.3 |
Shareholders' equity1 | 3,138.0 | 3,019.4 | 3,138.0 | 3,019.4 |
Key success indicators |
|
|
|
|
DWP growth2 | 3.6 % | 8.3 % | 3.4 % | 9.8 % |
NIR growth2 | 5.1 % | 13.9 % | 6.0 % | 14.7 % |
Underwriting result - excluding discounting and risk adjustment2 | 81.4 | 63.9 | 156.6 | 41.9 |
Earnings per share (EPS) | $6.21 | $5.35 | $10.68 | $7.99 |
Return on equity (ROE)2 | 24.2 % | 21.8 % | 20.3 % | 15.8 % |
Combined ratio - excluding discounting and risk adjustment2 | 94.3 % | 95.3 % | 94.5 % | 98.4 % |
Minimum Capital Test (MCT)1 | 228 % | 224 % | 228 % | 224 % |
1 Financial position data and MCT results for 2025 are as at December 31 |
2 Refer to the Key Financial Measures (Non-GAAP) section |
SECOND QUARTER REVIEW
In the second quarter, DWP increased by 3.6% to $1,701.2 million compared to the same quarter of 2025, while NIR increased by 5.1% to $1,420.2 million compared to the same quarter last year. The increase in DWP was across all core lines of business and regions, with the auto and home lines of business and the Ontario and West regions being the major contributors. Growth in both DWP and NIR was a result of higher average premiums and growth in vehicles and policies in force.
Co-operators General's underwriting income, excluding discounting and risk adjustment, for the second quarter of 2026 was $81.4 million, a favourable change of $17.5 million from the underwriting income of $63.9 million in the same quarter of 2025. The favourable development was due to growth in NIR of $68.8 million, outpacing the increases in both net undiscounted claims and adjustment expenses and acquisition and other expenses of $43.8 million and $7.5 million, respectively.
The unfavourable change in net undiscounted claims and adjustment expenses was primarily driven by higher current accident year claims in the auto line of business, partially offset by lower major event activity mainly in the home line of business. The increase in acquisition and other expenses was due to increased commissions and premium taxes in line with NIR growth. The above changes led to an improvement in the combined ratio, excluding discounting and risk adjustment, of 1.0 percentage points from the comparative quarter.
Net investment and insurance finance result increased by $11.4 million over the prior year quarter, representing $94.9 million in income in the current quarter, compared to an income of $83.5 million in the prior year quarter. The favourable result was primarily due to an increase of $34.8 million in total net investment income and gains. The increase was primarily driven by higher investment income, higher realized gains on common shares, and unrealized gains on bonds in the current period compared to unrealized losses on bonds in the prior year quarter.
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. The credit quality of our bond portfolio remains high, with 80.3% rated A or higher, and with 96.7% of our bonds being considered investment grade, rated BBB or higher. Our equity portfolio is 82.5% weighted to Canadian stocks.
CAPITAL
Co-operators General's capital position remains strong, as the Minimum Capital Test for Co-operators General was 228% as at June 30, 2026, which is well above internal and regulatory minimum requirements. We continue to closely monitor capital levels in response to the changing economic environment.
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," and "continue," or the negative thereof and similar variations. These statements are not guarantees of future performance, and they involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in the forward-looking statements or information. We believe that the expectations reflected in the forward-looking statements and information are reasonable; however, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, levels of activity, performance or achievements. 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 2026 MD&A or our 2025 Annual Report.
ABOUT US
Proudly Canadian since 1945, Co-operators is a leading financial services cooperative offering multi-line insurance and investment solutions, as well as personalized services and advice to help Canadians build and maintain their financial security. With over $89 billion in assets under administration, it is renowned for its community involvement and efforts to create a more sustainable future. As a carbon-neutral organization, Co-operators is committed to achieving net-zero emissions in its operations and investments by 2040 and 2050, respectively. Co-operators is recognized as one of Canada's Top 100 Employers and is ranked among the country's Best 50 Corporate Citizens by Corporate Knights.
Co-operators General Class E Preference Shares Series C, trade under ticker symbol CCS.PR.C on the Toronto Stock Exchange (TSX).
For more information, please visit: www.cooperators.ca.
CONTACT INFORMATION
Investor Relations
Peter Shaker
Vice-President, Corporate Development and Capital Management
Email: peter_shaker@cooperators.ca
Media Relations
Email: media@cooperators.ca
SOURCE The Co-operators Group Limited
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