Growing our business, adapting to change

As we account for the risks and opportunities presented by rapid changes in our operating environment – from the global pandemic to climate change – we remain focused on ensuring the long-term financial strength of our co-operative.

Strategic Performance Indicators

The following metrics are key indicators used to measure our strategic performance

Expense Ratio for P&C operations


2019: 32.6%
2018: 31.9%

Target: At or better than the industry by the end of 2022
Status: Above expectations

Efficiency Ratio for Life operations


2019: 19.2%
2018: 19.1%

Target: 17.7% by the end of 2022
Status: Below expectations

P&C Combined Ratio


2019: 101.1%
2018: 105.2%

Target: 98% by end of 2022
Status: Above expectations

Why it matters

By appropriately managing our expense ratios, we can continue offering affordable and competitive products and services to meet the needs of our clients and members, while enhancing our investment in communities. It is critical that we manage expenses effectively and continue to find efficiencies where possible, to ensure we are safeguarding the premiums paid by our clients.

Why it matters

This helps gauge the profitability of our P&C lines, taking the sum of all incurred losses and expenses, and dividing them by our earned premium.

Return on Members’ Equity


2019: 7.7%
2018: (0.5)%

Target: 8-10% each year
Status: Exceeded

Return on participating policyholders’ (Par) equity


2019: 8.7%
2018: 0.1%

Target: 4.5-6.5% each year
Status: Not achieved


What this means for our stakeholders

A strong return on equity demonstrates our success in putting our members’ capital to good use and investing it wisely. While our decisions are made over a longer-term horizon, showing a positive year-over-year return on members’ equity is a good indicator of the strength of our co-operative, and by extension, of the strength of the co-operative business model itself.

What this means for our stakeholders

Our participating policyholders are those clients who hold a Life insurance policy with us that includes an investment portion which lasts for much, or all, of their lifetime.

A strong return on Par equity, especially over the long term, is important to monitor and manage because it impacts the financial security of many of our Life insurance clients, and can be used as an indicator contributing to their overall peace of mind and future success planning.

This year we experienced challenges due to the low interest rate environment and policyholder behaviour.

Retail wealth sales growth


2019: 11.3%

Target: 36.4% compound annual growth rate through 2022
Status: Below expectations

Sales of retail wealth products, including Mutual Fund and Segregated Fund products, help meet the savings and investment needs of our individual clients, supporting their long-term financial well-being.

Retail wealth assets under management and administration

$1.91 billion

2019: $1.69 billion

Target: $3.0 billion by the end of 2022
Status: Below expectations

The amount of retail wealth assets invested within client accounts of Co-operators Advisors, including CLIC segregated funds and annuities, as well as mutual funds sourced through CFIS.

Individual insurance new annual premium growth


2019: 3.3%

Target: 7.0% compound annual growth rate through 2022
Status: Below expectations

A measurement of the annual growth of individual Life insurance premiums.

Revenue growth in consolidated P&C Commercial lines of business


2019: 20.0%
2018: 8.9%

This is an indicator of success in expanding advice and risk-management solutions for Canadian businesses, including farms, through Sovereign General Insurance Company, CUMIS General Insurance Company and Co-operators General Insurance Company (CGIC).

Group Benefits premium growth


2019: 3.6%

Target: 7.3% compound annual growth rate through 2022
Status: Below expectations

This measures the annual growth in our Group Benefits business.

Evolving to meet Canadians’ holistic financial needs

We’re driven to meet the unmet and ill-met financial security needs of Canadians, and our competitive growth strategy is designed to ensure our members and clients are supported in securing their financial futures. There are promising opportunities to grow our advice-based products and services for a mass market of Canadians whose financial planning needs aren’t met. Through our suite of insurance, financial planning and investment solutions, we can become trusted partners in securing our clients’ financial futures.

Enabling a network of financial advisors to meet clients’ holistic financial needs

We’ve stayed focused on supporting our Financial Advisors in providing holistic financial services and advice-based products and services to Canadians. 436 Financial Advisors and their staff have now been onboarded to our mutual funds dealer, Co-operators Financial Investment Services, which enables them to offer mutual funds as part of their comprehensive suite of advice-based services to clients.

Efforts to improve underwriting processes to better serve our clients

We are driven to create a better experience for clients by building a more efficient end-to-end underwriting process. In 2020, we focused on improving the efficiency of our underwriting processes to create additional capacity, by removing over 60,000 tasks from underwriters and client-facing staff, which ensured they could shift focus to delivering advice-based financial services.