Co-operators General Insurance Co., based in Guelph, Ont., released its financial results on Tuesday for the quarter ending March 31, 2020, reporting a net loss of almost $49 million, compared with net income of almost $22 million in the same quarter last year.
The loss resulted in a loss per common share of $1.88 in the quarter compared with earnings per share of $0.84 in the same period last year.
The first-quarter results were attributed to poor market returns.
“[S]ignificant turmoil in the global capital markets has negatively impacted the value of our invested assets, resulting in large investment losses for our company this period,” said Rob Wesseling, president and CEO of the Co-operators Group Limited, in a release.
The insurer had a net investment loss of $100.3 million in the quarter as a result of negative changes in the fair value of its preferred-share and bond portfolios. Its equity portfolio had a $17.7-million impairment loss.
Losses were partly offset by “significantly” improved underwriting performance, Wesseling said. The firm’s underwriting income was $49.8 million in the quarter, compared with a loss of $33.4 million in 2019.
Despite poor portfolio performance, the firm said its balance sheet, liquidity and capital positions remain strong. The insurer’s minimum capital test was 204% for the quarter, compared to 209% in the first quarter of last year.