Co-operators’ earnings lifted by underwriting

Co-operators General Insurance Co. (TSX: CCS.PR.A) increased net income three-fold for 2004 to $139.49 million ($6.54 a share) compared with the $44.04 million ($1.78 a share) reported for 2003. The insurer boosted earnings for the fourth quarter of 2004 to $38.80 million ($1.81 a share) versus the $13.73 million (55 a share) disclosed for the same period the year prior.

Stronger underwriting gains, and a vastly improved loss ratio, propelled earnings for the latest reporting periods. For 2004, the company posted a loss ratio of 64.0% (2003: 74.0%), while the overall combined ratio dropped to 94.9% in 2004 (2003: 103.2%). In the fourth quarter of 2004, the loss ratio improved to 59.4% (2003: 69.5%), while the combined ratio fell to 93.7% (2003: 100.6%).

Co-operators’ net earned premiums grew 9.1% to $1.7 billion for last year (2003: $1.5 billion) while net earned premiums for the last quarter of 2004 came in at $435.4 million (2003 Q4: $421.83 million). The company’s investment income grew slightly year-on-year by 3.4% to reach $123.6 million for 2004 against the $119.5 million reported for 2003.