CO-OPERATORS GENERAL INSURANCE COMPANY REPORTS FIRST QUARTER 2026 RESULTS

This quarterly earnings news release should be read in conjunction with our first quarter 2026 unaudited condensed consolidated interim financial statements and management's discussion and analysis (MD&A) as well as our 2025 Annual Report which are all available on SEDAR+ at www.sedarplus.com. Unless otherwise noted, all amounts are expressed in Canadian dollars.

GUELPH, ON, May 5, 2026 /CNW/ - Co-operators General Insurance Company (Co-operators General) today released consolidated financial results for the three months ended March 31, 2026. The consolidated net income was $123.4 million compared to net income of $72.9 million for the same quarter in 2025. This resulted in earnings per common share of $4.46 for the quarter, compared to $2.64 in the same quarter of the prior year.

"Our first‑quarter results in 2026 show the strength of our core insurance business and the disciplined actions our teams have taken across the organization to focus on controlled and profitable growth, coupled with operational efficiency," said Rob Wesseling, President and CEO of Co-operators General. "Importantly, we delivered this performance during a quarter of volatile investment results, and we remain focused on delivering long-term, sustainable solutions that help our clients and communities build financial security."

CO-OPERATORS GENERAL'S FIRST QUARTER FINANCIAL HIGHLIGHTS

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

	1st Quarter	1st Quarter
	2026	2025
Key financial data
Direct written premium (DWP)^2	1,290.7	1,251.3
Net insurance revenue (NIR)^2	1,387.7	1,296.7
Net income	123.4	72.9
Net investment income and gains	57.9	97.5
Total assets^1	9,248.0	9,215.3
Shareholders' equity^1	3,134.8	3,019.4
Key success indicators
DWP growth^2	3.1 %	11.8 %
NIR growth^2	7.0 %	15.5 %
Underwriting result - excluding discounting and risk adjustment^2	75.3	(22.0)
Earnings per common share (EPS)	$4.46	$2.64
Return on equity (ROE)^2	17.0 %	10.6 %
Combined ratio - excluding discounting and risk adjustment^2	94.5 %	101.7 %
Minimum Capital Test (MCT)^1	235 %	224 %
^1 Financial position data and MCT results for 2025 are as at December 31.
^2 Refer to the Key Financial Measures (Non-GAAP) section.

FIRST QUARTER REVIEW

In the first quarter, DWP increased by 3.1% to $1,290.7 million compared to the same quarter of 2025, while NIR increased by 7.0% to $1,387.7 million compared to the same quarter last year. There was an increase in DWP across all core lines of business and regions, with the home and auto lines of business and the West region being the major contributors. Growth in both DWP and NIR was a result of increases in average premiums, primarily in home and auto.

Co-operators General's underwriting income, excluding discounting and risk adjustment, for the first quarter of 2026 was $75.3 million, a favourable change of $97.3 million from the underwriting loss of $22.0 million in the same quarter of 2025. The favourable change was due to NIR growth of $91.0 million and a decrease in the net undiscounted claims and adjustment expenses of $12.7 million, outpacing acquisition and other expense growth of $6.4 million.

The decrease in net undiscounted claims and adjustment expenses was primarily driven by lower current year accident claims and lower major event activity. The increase in acquisition and other expenses was due to increased commissions and premium taxes in line with NIR growth. This was offset by a decrease in other attributable and non-attributable operating expenses due to lower technology spending compared to the same quarter in 2025. The above decrease led to an improvement in the combined ratio, excluding discounting and risk adjustment, by 7.2 percentage points from the comparative quarter.

Net investment income and gains for the first quarter was $57.9 million, a decrease of $39.6 million compared to the same quarter in the prior year. The decrease was primarily driven by bond losses due to rising interest rates in the current period compared to the first quarter of the prior year. This was partially offset by higher net investment income in the current period.

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 area of focus. Our investment portfolio is comprised of high quality and well diversified assets. The credit quality of our portfolio remains high with 96.8% of our bond portfolio considered investment grade and 78.4% rated A or higher. Our equity portfolio is 83.3% weighted to Canadian stocks.

CAPITAL

Co-operators General's capital position remains strong, as the Minimum Capital Test for Co-operators General was 235% as at March 31, 2026, 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 first quarter 2026 MD&A or our 2025 Annual Report.

ABOUT US

Proudly Canadian since 1945, Co-operators is a leading financial services cooperative offering multi-line insurance and investment solutions, as well as personalized services and advice to help Canadians build and maintain their financial security. With over $79 billion in assets under administration, it is renowned for its community involvement and efforts to create a more sustainable future. As a carbon-neutral organization, Co-operators is committed to achieving 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 is ranked among the country's Top 50 Responsible Companies by Corporate Knights.

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

Co-operators General will release its 2025 Climate Report on May 8, 2026. The upcoming report will provide comprehensive climate-related financial disclosures for the fiscal year ended December 31, 2025.

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

CONTACT INFORMATION

Investor Relations
Peter Shaker
Vice-President, Corporate Development and Capital Management
Email: [email protected]

Media Relations
Email: [email protected]

SOURCE Co-operators Group Limited