February 19, 2018 11:30
The increase in the frequency of claims was the result of the consolidated net income of the Company Co-operators general insurance, which recorded a decline of its net profits of 50 % in the fourth quarter of 2017, from $ 128.8 million ($M) in the corresponding period of 2016 to 64.8 M$. The combined ratio amounted to 100.3 %, an increase of nearly 15 percentage points.
However, direct premiums written have grown to 685,2 M$ in the fourth quarter, an increase of 46.1 M$ compared to the fourth quarter of 2016. This increase is explained by growth in all product categories of the Co-operators, mainly in the areas of home and auto insurance areas of Ontario and western Canada.
The strong winds and abundant rain in due
“The amounts of claims increased in 2017 compared to the previous year, despite the impact of forest fires in the tragic Fort McMurray in 2016. Among the factors contributing to this increase include the large number of storms of high winds and heavy rain that have hit residences and farms, as well as an increase in the frequency of claims in motor insurance, ” says Rob Wesseling, president and chief executive officer of Co-operators.
For the year 2017, the consolidated net income has also fallen compared to the previous year, from $ 145,3 Million to$ 121,1$ M. The combined ratio also deteriorated to a total of 103.2% compared with 101 % in the previous year.
Sustained growth in the number of policies
By 2017, direct premiums written increased 6.5 % to reach 2.74 million dollars (G$) versus 2.57 G$ in 2016, because of the growth in the number of policies and vehicles in all regions and the average premiums, higher home and automobile insurance in the West.
“The growth in the number of customers in all geographic regions of the country continues to stimulate sustained growth in the number of fonts in all of our major product lines,” says Mr. Wesseling. The client engagement team is an important element of our strategy and, as demonstrated by the results of the studies of J. D. Power on customer satisfaction in auto and home insurance in 2017, we are a leader industry in this field. “