Mr. Rob Wesseling reports

CO-OPERATORS GENERAL INSURANCE COMPANY REPORTS SECOND QUARTER 2026 RESULTS

Co-operators General Insurance Company has released consolidated financial results for the three months ended June 30, 2026. The consolidated net income after tax was $174.8-million compared with $149.7-million for the same quarter in 2025. This resulted in earnings per share of $6.21 for the quarter, compared with $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 chief executive officer 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."

Second quarter review

In the second quarter, DWP (direct written premium) increased by 3.6 per cent to $1,701.2-million, compared with the same quarter of 2025, while NIR (net insurance revenue) increased by 5.1 per cent to $1,420.2-million compared with 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 point 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 with 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 with unrealized losses on bonds in the prior-year quarter.

The company's balance sheet, liquidity and capital positions remain strong and enable Co-operators Generalt o continue to serve and meet the needs of its clients while also supporting the company's strategic areas of focus. Co-operators General's investment portfolio comprises high-quality and well-diversified assets. The credit quality of Co-operators General's bond portfolio remains high, with 80.3 per cent rated A or higher and with 96.7 per cent of its bonds being considered investment grade, rated BBB or higher. Co-operators General's equity portfolio is 82.5 per cent weighted to Canadian stocks.

Capital

Co-operators General's capital position remains strong, as the minimum capital test for Co-operators General was 228 per cent as at June 30, 2026, which is well above internal and regulatory minimum requirements. Co-operators General continues to closely monitor capital levels in response to the changing economic environment.

About Co-operators General Insurance Company

Proudly Canadian since 1945, Co-operators is a leading financial services co-operative offering multiline 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.

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