Co-operators General Insurance Company reported a sharp turnaround in its Q3 results, posting a consolidated net income of $228 million for the three months ended Sept. 30, swinging from a $54.2 million net loss a year earlier.
Earnings per common share rose to $8.35, compared to a loss of $1.71 a year earlier.
The insurer's performance reflects stronger underwriting results and improved investment income, as well as lower major loss activity compared to 2024. Direct written premiums (DWP) rose 5.7% to $1.6 billion, while net insurance revenue (NIR) increased 15.5% to $1.4 billion, driven by growth across all core lines and regions, particularly auto and home in Western Canada and Ontario. Growth in average premiums, alongside higher policy and vehicle counts, contributed to the gains.
Underwriting income, excluding discounting and risk adjustment, improved significantly to $141.4 million, compared to a loss of $180.9 million a year earlier. This improvement stemmed from higher net insurance revenue and a $162.6 million reduction in claims and adjustment expenses, partially offset by higher acquisition and operating costs tied to premium growth.
Claims experience improved due to fewer major weather-related events compared to the same quarter in 2024, when four major events impacted results. While current accident year claims were slightly higher, the reduction in catastrophic activity led to a marked improvement in underwriting profitability.
Investment and insurance finance results also strengthened, rising by $46.3 million to $127.9 million. The increase was driven by higher interest income, gains in common equities and reduced finance expenses due to smaller movements in the yield curve compared to last year. Co-operators noted that its investment portfolio remains well-diversified and of high credit quality, with 96.8% of its bond holdings rated investment grade.
Meanwhile, Q3 results underscored a broader trend of recovery across Canada's P&C insurance sector, following a period marked by severe weather losses and economic headwinds. Several major insurers, including Intact Financial and Aviva Canada, have also reported improved underwriting results in 2025 as rate adequacy and disciplined risk selection begin to offset inflationary pressures and claims volatility.
