15 February 2019 11:30
Photo : Freepik
The Company Co-operators general insurance ended the year 2018 with a net loss of 37,1 million dollars ($M), whereas it had recorded a net profit of 121,1 M$ in 2017. The net income for the third quarter was not enough to prevent net loss.
The combined ratio also deteriorated in 2018, rising from 103.2% in the last year to 105,2 %. The Co-operators, says the increase in claims in the sectors of insurance for auto, home and business is in question.
In the fourth quarter, the insurer reported a net loss of$ 18.2 Million in the fourth quarter, compared to a net profit of 64,8 M$ for the corresponding period in 2017.
“This year has been difficult. The extreme weather conditions and an increase in the frequency of claims has had a negative impact on our technical results. In addition, a challenging environment for investment, particularly in the fourth quarter of 2018, has led to additional challenges, ” said Rob Wesseling, president and chief executive officer of Co-operators.
The consolidated results include the activities of CUMIS General, the acquisition of which was completed on April 1, 2018.
However, the revenues from all the sectors of activity of Co-operators are on the rise, both for the year 2018 for the fourth quarter. The direct premiums written for the year rose 20.3 % to reach nearly 3.3 billion dollars (G$). In the fourth quarter, the growth was 23.4 % compared to the same quarter of 2017, to 845,4 M$.
The Co-operators attribute this increase to an increase in average premiums and the continued growth in the number of policies in all regions and all major sectors of activity.
“Despite everything, we have registered revenue growth in all business segments and all regions, due to a sustained growth in the number of policies and measures targeted on pricing,” says Mr. Wesseling. The capital position of the company remains strong and we continue to take the necessary measures to restore our profitability. “