Nova Q2 Report - 2023 loading...
q2q2
LEADERSHIP
REPORT
2023
q2q2
LEADERSHIP
REPORT
2023
TABLE OF CONTENTS
COMPANY PROFILE 3
OUR PURPOSE & VALUES 4
EXECUTIVE SUMMARY 5
IT UPDATE 6
OPERATIONS 7
MARKETING & BRAND 10
RISK MANAGEMENT 12
PROJECTS AT A GLANCE - Q2 2023 14
PROJECTS AT A GLANCE - Q3 2023 15
FINANCIAL RESULTS Q2 YTD 2023 16
OTHER INFORMATION 28
3
COMPANY PROFILE
as of March 31, 2023
DISTRIBUTION SPLIT
Broker: 85%
Agent: 15%
Digital: 0%
LINE OF BUSINESS SPLIT
Automobile: 27%
Commercial: 23%
Farm: 24%
Residential: 26%
ROI
4.1%
ROE
3.5%
Investments
$41.3M
Net Risk Ratio
108.7%
MCT
(Q1 2023)
399%
Expense
Ratio
45.7%
Claims
Ratio
58.4%
Gross Risk
Ratio
132.8%
Combined
Ratio
102.3%
BROKERS
14
AGENTS
4
EMPLOYEES
49
OUR PURPOSE
To protect the unique lifestyles of each of our members by empowering our people to
provide solutions that are creative, transparent, and member centric.
OUR VALUES
INTEGRITY RESPECT COURAGE
We are open, honest, and
ethical. We hold authen-
ticity and transparency in
the highest regard.
We treat others the way
they want to be treated.
We show empathy for
others by listening and
keeping an open mind.
We believe it takes cour-
age to lead. We respond
to, adapt, and embrace
the changing world in
which we operate.
OUR PURPOSE & VALUES
5
On June 22 the Board held an onsite Board meeting. The purpose of the meeting
was threefold. First it was educational in nature where Ken Worsley provided his
rendition of “Insurance 101” for those not so close to managing risk. Second, a review
and update on the strategic plan. Six months into the formal strategic plan the
Leadership Team presented an update on key metrics and environmental risks. Third,
the Board and Leadership Team hosted a BBQ for all sta on the lawn of the Jarvis
oce. The weather held out and it was a very successful event enjoyed by all those in
attendance.
YTD results show a promising sign within underwriting and investments.
Although there is still room for improvements Nova is on solid ground moving forward.
Our agency force has made significant strides in the quarter with sales and the launch
of a satellite oce in Tillsonburg. Several new brokers have reached out to Nova
with the hopes of partnering with us as they see the tremendous eort in course
correction taking place. A YTD underwriting loss of $335K is more than oset by
strong investment results of $1.0M. Net income for YTD is $475K.
In May 2023 FSRA held a town hall meeting to outline its new Risk Based
Supervisory Framework for Insurance. Nova Mutual was well represented at this town
hall. In September 2023 FSRA will be holding an education session for three Board
members in Toronto to further explain the new framework. Subsequent to the quarter
end, FSRA reached out as Nova Mutual has been selected to undergo an examination
under the new Risk Based Supervisory Framework for Insurers (RBFS-I). A team from
Nova Mutual is expected to meet with FSRA on August 16th for a Discovery meeting
where FSRA will learn about Nova Mutual, the Leadership Team, the Board and our
key risks.
There is still much to do. Nova Mutual is on the right path, with dedicated
professionals looking after our members’ best interests as a priority and keeping our
promise to be there in their time of need.
EXECUTIVE SUMMARY
INSURANCE PLATFORM UPDATE
Adoption rates continue to rise across all products. IT and UW are currently
working on the “Rules Review - Phase 1” to update existing residential rules in C+,
which will reduce the need to process in IBS and increase the adoption rates for
renewals.
IT completed the initial discovery on the Claims module, gathering requirements
and reviewing demos and functions.
BACKUP SOLUTION SHIFT
IT has changed backup solutions to allow a better experience when dealing with
both ad hoc and timed backups. The new solution still has the same functionality
as the prior (immutability, critical vs non-production timed backups, etc), but now
allows Nova to better support both locations (Toronto and Jarvis), better flexibility
when moving the backups between the two locations, and a better user interface to
maneuver around.
IT UPDATE