Co-operators General Insurance Company reported a sharp improvement in Q4 and full-year results, driven by stronger underwriting performance and lower major event losses.
The Canadian mutual posted consolidated net income of $220.6 million for the fourth quarter, up from $100.8 million in Q4 2024. Earnings per common share rose to $7.92 from $3.55. For the full year, net income climbed to $671.2 million, compared with $245.1 million in 2024, with earnings per share increasing to $24.18 from $8.60.
Direct written premium (DWP) in the fourth quarter rose 3.3% year over year to $1.49 billion, while net insurance revenue (NIR) increased 10.7% to $1.41 billion. Growth in both measures was recorded across all regions and core lines, particularly in auto and home, largely due to higher average premiums, especially in Ontario.
For the full year, DWP increased 7.0% to $5.99 billion, up from $5.60 billion in 2024, and NIR grew 13.8% to $5.47 billion from $4.81 billion. The company cited higher average premiums and growth in vehicles and policies in force as key drivers.
“We successfully navigated a year marked by economic uncertainty and market volatility while remaining firmly focused on building long-term resilience through disciplined operational execution,” said Rob Wesseling, president and CEO of Co-operators. “Our strong underwriting performance and steady investment returns generated solid results, enabling us to continue advancing the financial security of all Canadians.”
Underwriting income excluding discounting and risk adjustment also improved significantly. Co-operators reported underwriting income of $326.5 million in 2025, compared with an underwriting loss of $106.9 million the year before. The combined ratio excluding discounting and risk adjustment improved to 94.1% for the full year, from 102.2% in 2024; including discounting and risk adjustment, the combined ratio moved to 93.4% from 103.4%.
In the fourth quarter, the loss ratio excluding discounting and risk adjustment improved by 8.7 percentage points, supported by lower major event activity, reduced current accident year claims, and more favorable prior-year development. The expense ratio improved by 1.0 percentage point, mainly due to NIR growth.
Net investment income and gains for the fourth quarter were $98.3 million, down from $126.3 million a year earlier, mainly reflecting stronger unrealized equity gains in the prior period. For the full year, net investment and insurance finance results rose to $364.2 million from $237.9 million, helped by lower finance expenses on insurance and reinsurance contracts amid a more stable yield curve and higher interest and dividend income.
Total assets at year-end stood at $9.22 billion, up from $8.52 billion, while shareholders’ equity increased to $3.02 billion from $2.81 billion. Co-operators General’s Minimum Capital Test (MCT) ratio was 224% as of December 31, 2025, up from 216% a year earlier and above internal and regulatory minimums. The bond portfolio remained high quality, with 77.9% of holdings rated A or higher and 96.8% investment grade (BBB or higher). The equity portfolio was 82.2% weighted to Canadian stocks.
Within the Canadian P&C market, a full-year return on equity of 23.0% and a sub‑95% combined ratio (excluding discounting and risk adjustment) place Co-operators toward the stronger end of recent industry performance, in a period marked by inflation, weather-related losses, and higher reinsurance costs.
On capital, an MCT ratio of 224% sits above the levels many Canadian P&C writers publicly target, indicating a relatively conservative buffer over regulatory requirements. That gives Co-operators additional flexibility around growth, product investment and risk appetite, at a time when some peers have been balancing capital deployment with pressure from higher reinsurance costs and evolving climate‑related loss patterns.
While peer results vary by business mix and catastrophe exposure, the combination of double-digit NIR growth, a return to solid underwriting profitability, and a strengthened capital position suggests Co-operators is entering 2026 from a comparatively robust footing among domestic carriers.
