28 July, 2017 13:30
Photo : Freepik
At the same date last year, the Co-operators announced results in the red, the consequences of heavy economic losses related to fires Fort Murray. For the 2nd quarter of 2017, the insurer is growing again. It records a consolidated net profit of 29.1 million dollars ($M), compared to a net loss of 39.1 M$ for the corresponding quarter of 2016.
«A year after the fire without precedent occurred in Fort McMurray, our financial results reflect the stability that gives us the diversification of our activities,» says Rob Wesseling, president and chief executive officer of Co-operators. Excluding the impact of catastrophes in the last year, the intensification of weather events in the West and in Ontario has contributed to the increase in the claims costs, which has, however, been partially offset by solid growth in all business sectors in Canada.»
Direct written premiums increased by 6.4 %
Direct written premiums increased by 6.4 % (+ 46,1 M$), to reach 768,7 M$. The net earned premiums increase of 9.1 per cent, or 52.2 Million, respectively, compared to the same period in the previous year. According to the insurer, these improvements are attributable to the increase in the number of policies and vehicles in all sectors of activity.
For the quarter, the ratio of mixed, excluding the adjustment based on the performance of the market, reached 101,0 %, compared to x 114.3 % for the same period in the previous year. Compared to the second quarter of 2016, the net amount of the claims and settlement costs undiscounted decreases him of 8.6 %, bringing the claims ratio to 67.0 %.
Incidence of catastrophic fires
According to the Co-operators, the incidence of catastrophic fires in Fort McMurray explains the decrease in the net amount of the claims and settlement costs undiscounted. Excluding this event, the claims costs increases of$ 41.9 Million compared to the corresponding period of the previous year.
This increase is mainly attributable to the increase in the frequency of claims occurring in the current year in all sectors of activity, which is largely explained by the multiple weather events that occurred in the West and in Ontario. In addition, these events combine with the steady increase in premiums in all sectors of activity and an increase in the severity of claims in the area of home insurance, partially offset by a decrease in the severity of claims in the automobile insurance industry.