30 October 2018 11:30
Photo : Freepik
The Co-operators has posted a net profit in the third quarter of 2018. In the accumulated first nine months of the year, the insurer incurs a loss.
The third quarter of 2018 is the first where the Co-operators is a profit positive in 2018. It is of $ 12.9 million, ($M). In the previous quarter, its loss was$ 31 Million. In the third quarter of 2017, the Co-operators had submitted a loss of$7.4 Million.
The quarters follow and do not look for Co-operators. In the course of the last seven quarters, the insurer reported a loss three times.
Although it shows a profit in the third quarter of 2018, the Co-operators shows a loss for the full year, after three quarters. This is$ 18.9 Million. After three quarters in 2017, the insurer had a profit of$ 56.2 Million. It was concluded by 2017 with a profit of 121,1 M$.
Integration of CUMIS
For the first time in the third quarter of 2017, the Co-operators has integrated the results of The insurance Company CUMIS general. The insurer acquired all of CUMIS in the spring of 2018. He shared this property before. This makes sure that the direct written premiums of the insurer have increased by 21.8 %, or 162,9 M$, to $ 909,1 M$.
If the results of CUMIS had not been included in those of the Co-operators, the increase in direct written premiums of the insurer would have been 9.8 %, or$ 73 Million. This increase is attributable to an adjustment to rates, mostly in Ontario and in the West, combined with the increase in the number of policies and vehicles, and more particularly in Ontario.
“In the third quarter, we recorded an exceptional growth of revenue as a result of the acquisition of CUMIS, the strong growth of the customer base, an excellent retention and a targeted measure in terms of pricing,” says Rob Wesseling, president and chief executive officer of Co-operators. At the same time, extreme weather conditions and an increase in the frequency of claims has had a negative impact on our technical results. “
Combined Ratio negative
Thus, the combined ratio of the Co-operators stood at 104.1 % in the third quarter of 2018, compared to 108.9 % for the same period of the previous fiscal year. Compared to the third quarter of 2017, the amount of the net claims and adjustment expenses undiscounted increased 9.3 %, or$ 47 Million. However, the Co-operators indicates that the growth of its premiums to offset this increase, as its claims ratio standing at 73.4 %.
The costs related to claims increased compared to the corresponding period of the previous year for two main reasons why the Co-operators. The first : the integration of the results of CUMIS for the current quarter. The second is related to the increase in the frequency of claims for the current year in all regions except the West, and in all activity sectors, except the agricultural sector.