This annual earnings news release should be read in conjunction with our 2025 audited consolidated financial statements and management's discussion and analysis (MD&A), which are all available on SEDAR+ at www.sedarplus.com. Unless otherwise noted, all amounts are expressed in Canadian dollars.

GUELPH, ON, Feb. 18, 2026 /CNW/ -  Co-operators General Insurance Company (Co-operators General) today announced its consolidated financial results for the three months and year ended December 31, 2025. For the fourth quarter, Co-operators General reported consolidated net income of $220.6 million, compared to $100.8 million for the same quarter in 2024. Earnings per common share was $7.92 for the fourth quarter, compared to $3.55 for the same period last year. Net income for the year amounted to $671.2 million, compared to $245.1 million in 2024. This resulted in earnings per common share of $24.18 compared to $8.60 in the previous year.

"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. "Our strong underwriting performance and steady investment returns generated solid results, enabling us to continue advancing the financial security of all Canadians."

CO-OPERATORS GENERAL'S FOURTH QUARTER AND YEAR END FINANCIAL HIGHLIGHTS

($ in millions except for earnings per common share and ratios)

Fourth Quarter Review

Fourth quarter DWP increased by 3.3% over the same period of 2024 to $1,494.9 million, while NIR grew by 10.7% compared to the fourth quarter of prior year to $1,414.9 million. DWP and NIR growth over the comparative quarter was seen across all regions and lines of business, particularly in the auto and home lines of business. The increase in both auto and home was primarily attributable to higher average premiums, particularly in Ontario.

The loss ratio, excluding discounting and risk adjustment, improved by 8.7 percentage points, compared with the prior year period quarter, driven by lower major event activity, lower current accident year claims and improved prior year claims development. The fourth quarter expense ratio improved by 1.0 percentage points over the comparative period, mainly due to growth in NIR.

Net investment income and gains for the fourth quarter was $98.3 million, a decrease of $28.0 million compared to the same quarter in the prior year. The decrease was primarily driven by unrealized gains in our common share portfolio being stronger in the prior year quarter. The unfavourable change was partially offset by higher interest income on bonds and increased dividend distributions from pooled funds.

Annual Review

We continued to grow across all core lines of business and in all regions in 2025 when compared to 2024. Higher average premiums and growth in vehicles and policies in force led to an increase in DWP of 7.0% and NIR growth of 13.8% over the prior year.

Our underwriting income, excluding discounting and risk adjustment, for 2025 was $326.5 million, a favourable change of $433.4 million from the underwriting loss of $106.9 million in 2024. The favourable change was due to growth in NIR of $665.3 million outpacing the increases in both the net undiscounted claims and adjustment expenses of $97.2 million, and acquisition and other expenses of $134.7 million.  

The increase in net undiscounted claims and adjustment expenses was primarily driven by higher current accident year claims, reserve strengthening, and a decrease in ceded claims from major events due to lower major event activity. The increase in current year claims was partially offset by favourable prior year claims development compared to the prior year. The increase in acquisition and other expenses was driven by the growth in premium, which resulted in increased premium taxes, net commissions and insurance operating expenses.

During the year, the combined ratio, excluding discounting and risk adjustment, improved by 8.1 percentage points when compared to the prior year, primarily due to the favourable change in the loss ratio driven by higher NIR growth and lower major event activity as compared to significant major event losses in the prior period. The ratio including discounting and risk adjustment improved by 10.0 percentage points. The relative improvement of the ratio was larger, due to a favourable impact of $90.2 million in net discounting and risk adjustment in the year as compared to the prior year.

Net investment and insurance finance results increased by $126.3 million, representing $364.2 million in income in the current year, compared to income of $237.9 million in the comparative period. The favourable result was due to the decrease in net finance expenses from insurance and reinsurance contracts of $101.5 million when compared with the prior year. The change was due to a relatively stable yield curve compared to a declining yield curve in the prior year, which resulted in reduced expenses from discounting in the year. Another favourable impact was due to an increase of $24.8 million in total net investment income and gains, when compared with the prior year, as a result of higher interest and dividend income and gains on our common shares portfolio, which was partially offset by losses on our limited partnership funds.

Our balance sheet, liquidity and capital positions remain strong and enable us to continue to serve and meet the needs of our clients while also supporting our strategic areas of focus. Our investment portfolio is comprised of high quality and well diversified assets. The credit quality of our bond portfolio remains high with 77.9% rated A or higher and 96.8% of our bonds being considered investment grade, rated BBB or higher. Our equity portfolio is 82.2% weighted to Canadian stocks.

Capital

Co-operators General's capital position remains strong, as the Minimum Capital Test for Co-operators General was 224% as at December 31, 2025, well above internal and regulatory minimum requirements. We continue to closely monitor capital levels in response to the changing economic environment.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This document may contain forward-looking statements and forward-looking information, including statements regarding the operations, objectives, strategies, financial situation and performance of Co-operators General. These statements generally can be identified by the use of forward-looking words such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," "plan," "would," "should," "could," "trend," "predict," "likely," "potential," and "continue," or the negative thereof and similar variations. These statements are not guarantees of future performance, and they involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in the forward-looking statements or information. We believe that the expectations reflected in the forward-looking statements and information are reasonable; however, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, levels of activity, performance or achievements. Consequently, we make no representation that actual results achieved will be the same in whole or in part as those set out in the forward-looking statements and information. For further information, refer to our 2025 Annual Report.

ABOUT US

Proudly Canadian since 1945, Co-operators is a leading financial services co-operative, offering multi-line insurance and investment products, services, and personalized advice to help Canadians build their financial strength and security. With more than $79 billion in assets under administration, Co-operators is well known for its community involvement and its commitment to sustainability. Currently a carbon neutral organization, Co-operators is committed to net-zero emissions in its operations and investments by 2040, and 2050, respectively. Co-operators is recognized as one of Canada's Top 100 Employers and ranked as one of Corporate Knights' Best 50 Corporate Citizens in Canada.

Co-operators General Class E Preference Shares Series C, trade under ticker symbol CCS.PR.C on the Toronto Stock Exchange (TSX).

For more information, please visit: www.cooperators.ca.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Investor Relations
Peter Shaker
Vice-President, Corporate Development and Capital Management
Email: peter_shaker@cooperators.ca

Media Relations
Email: media@cooperators.ca

SOURCE Co-operators Group Limited