Canadian Underwriter

44% of The Co-operators’ claims and benefits in 2016 were for property damage, the company’s inaugural integrated report says

April 4, 2017   by Canadian Underwriter

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Guelph, Ont.-based The Co-operators has released its inaugural 2016 Integrated Annual Report, reporting that more than four in ten claims and benefits paid in 2016 were for property damage.

The Co-operators released the report on Tuesday, joining “a handful of pioneering Canadian companies that have adopted this emerging best practice of corporate reporting,” the company said in a statement. Integrated reporting provides a “holistic analysis of how a company creates value for its stakeholders both in the short- and long-term” and outlines the group of companies’ progress and performance in 2016.

According to the inaugural report, the total amount paid in claims and benefits last year was $1.86 billion. Property damage accounted for 44% of claims and benefits paid to clients in 2016, collision repairs for 20%, injuries 16%, death and disability 10%, other 6% and medical and dental 4%. Looking at property damage specifically, fire accounted for 40%, a “larger-than-normal proportion due to the unprecedented wildfire” in Fort McMurray, Alta. last May; water accounted for 24%; other 15%; wind/hail/ice 13%; and theft/vandalism 8%.

From a financial perspective, 2016 net income after tax was $234.6 million. Net income attributable to participating policyholders for 2016 was 58.2 million, up dramatically from 29.2 million in 2015. Net income attributable to members and shareholders last year was $162 million, the report said, up from $157 million in 2015. Property and casualty direct written premium was also up to $2.86 billion in 2016 from $2.70 billion two years ago. Net earned premium totalled $3.31 billion in 2016, up from $3.18 billion in 2015.

Other highlights of the integrated annual report include:

  • 72% net carbon emission reductions since 2010 (the target is carbon neutral equivalent by 2020);
  • 144,821 Comprehensive Water policy endorsements in 2016. These endorsements provide coverage to protect property from overland flood and surface water damage (only available in Alberta and Ontario in 2016). The Co-operators target is 333,288 endorsements across Canada by the end of 2018;
  • The number of fire sprinkler discounts in 2016 was 31,055, compared to 22,919 in 2015; the number of hybrid/electric vehicle discounts last year was 2,762 compared to 2,196 in 2015;
  • The percentage of auto repairs completed at “green” shops was 50% in 2016, up slightly from 48% in 2015;
  • The percentage of new clients who were multi-line in 2016 was 67%, up slightly from 66% in 2015;
  • 60% of new clients who were Generation X or Y in 2016 was 60, up from 57% in 2015; and
  • $7,559,330 was donated to Canadian co-operatives, not-for-profits and charities in 2016, up from $5,807,140 in 2015

Related: Co-operators General Insurance Company net income $128.8 million in 2016 Q4, up from $103.3 million in 2015 Q4

Robert Wesseling, president and CEO of The Co-operators, said in the statement that the report “critically examines how The Co-operators is grappling with emerging issues like more extreme weather, disruptive technologies, economic volatility, shifting demographics and more. Building resiliency in the midst of the complex challenges we face as a society today requires a holistic, collaborative approach. We’re proud to take an integrated view of our strategy, governance and operations as we work to protect the financial security of Canadians and their communities.”

The Co-operators Group Limited is a Canadian co-operative with more than $44 billion in assets under administration. Through its group of companies, it offers home, auto, life, group, travel, commercial and farm insurance, as well as investment products.