Co-operators' Profits Soar in 2025 Amid Calmer Weather and Higher Premiums

GUELPH, ON – February 18, 2026 – Co-operators General Insurance Company announced a dramatic surge in profitability for 2025, with full-year net income rocketing to $671.2 million, a stark increase from the $245.1 million earned in 2024. The performance marks a significant turnaround for the Guelph-based insurer, driven by a sharp recovery in its core underwriting business and a more favorable claims environment.

The company's earnings per common share for the year climbed to $24.18, nearly tripling the $8.60 reported in the previous year. The fourth quarter was particularly strong, with net income of $220.6 million, more than double the $100.8 million from the same period in 2024.

“We successfully navigated a year marked by economic uncertainty and market volatility while remaining firmly focused on building long-term resilience through disciplined operational execution,” said Rob Wesseling, President and CEO of Co-operators, in a statement. “Our strong underwriting performance and steady investment returns generated solid results, enabling us to continue advancing the financial security of all Canadians.”

The Underwriting Turnaround

The engine behind Co-operators' stellar 2025 results was a profound reversal in its underwriting fortunes. The company generated an underwriting income of $326.5 million for the year, a staggering $433.4 million positive swing from the underwriting loss of $106.9 million it suffered in 2024.

This improvement is clearly reflected in the company's combined ratio, a key metric of insurer profitability where a figure below 100% indicates that it is earning more in premiums than it is paying out in claims and expenses. Co-operators' combined ratio, excluding discounting and risk adjustments, improved to 94.1% for 2025, a significant recovery from the unprofitable 102.2% recorded in 2024.

The turnaround was fueled by two main factors: substantial growth in net insurance revenue (NIR), which rose 13.8% for the year, and a notable decrease in claims costs. The revenue growth outpaced increases in expenses, stemming largely from higher average premiums across its auto and home insurance lines, particularly in Ontario, as well as growth in its policy base.

A Respite from Mother Nature

A crucial factor contributing to the improved claims environment was a significant reduction in costly weather-related events. While the company's press release pointed to “lower major event activity,” industry-wide data provides dramatic context. After a record-breaking year in 2024, when severe weather caused an estimated $9.4 billion in insured losses across Canada, 2025 brought a relative calm. Total insured catastrophic losses for the Canadian industry fell to a more manageable $2.4 billion in 2025.

This industry-wide trend provided significant relief for insurers' balance sheets. The year 2024 was marked by several costly events, including torrential rains and hail, which pressured results for many carriers. In contrast, the more subdued catastrophe landscape in 2025 allowed underwriting performance to shine through. This trend was also visible in the results of competitors like Desjardins General Insurance, which saw its earnings improve in the latter half of 2025 due to a lack of major catastrophes compared to the prior year.

The improved loss ratio for Co-operators was not just due to fewer disasters; the company also cited better-than-expected development on claims from previous years as a contributing factor.

Navigating a Complex Market

Co-operators' 2025 performance stands out in a competitive Canadian insurance market. While industry leader Intact Financial also reported a strong year with an impressive combined ratio of 88.2%, its story was one of consistent strength rather than a dramatic turnaround. Co-operators' results highlight a successful navigation of the pressures that challenged the entire sector in 2024, including peers like Wawanesa, which had reported a difficult underwriting year.

The company’s investment portfolio provided a steady, albeit mixed, contribution. For the full year, net investment income and gains increased to $495.3 million from $470.5 million in 2024, bolstered by higher interest income on its extensive bond portfolio. However, fourth-quarter investment income declined compared to the same period in 2024. The company attributed this to the prior year's quarter benefiting from exceptionally strong unrealized gains in its common share portfolio, a high bar that was not cleared in Q4 2025.

A Strong Capital Base for an Uncertain Future

Looking ahead, Co-operators appears well-positioned to handle future volatility. The company reported a Minimum Capital Test (MCT) ratio of 224% at year-end, a measure of its financial strength that is comfortably above regulatory requirements. This strong capital base provides a crucial buffer against an economic and risk landscape that remains complex.

While the market saw some signs of softening competition and moderating rate increases in late 2025, significant headwinds persist. Inflation continues to pressure claims costs for auto repairs and construction materials. The personal auto insurance market, in particular, remains challenging for the industry, with underwriting losses seen across the country. Furthermore, the long-term trend of increasing frequency and severity of weather events continues to reshape risk models and influence property insurance pricing.

The company's strong balance sheet, which includes total assets of $9.2 billion and a high-quality investment portfolio, positions it to continue investing in its strategic initiatives and cooperative mission. With a disciplined approach and a fortified financial position, Co-operators has demonstrated its resilience and ability to thrive even after a period of significant industry-wide stress.