Co-Operators General Earnings Up on Underwriting Gains

Guelph-based Co-operators General Insurance Co. (TSX: CCS.PR.A) has posted higher earnings for the third quarter and nine months ending September 30, 2004 as a result of improved underwriting.

The insurer netted income of $28.3 million ($1.34 per share) for the third quarter, more than double the income of $10.9 million ($0.48 per share) posted in the third quarter a year ago. Gross written premiums were down for the quarter, to $519.4 million from $528.2 million the year before. But net earned premiums were up over the same comparative period to $434.8 million from $408.8 million. The company was able to drag its loss ratio down to 67.2% in the third quarter of 2004 (Q3 2003: 74.3%), while improving its combined ratio to 96.9% (Q3 2003: 102.5%).

For the first nine months of 2004, the company produced net income of $100.7 million ($4.74 per share), almost triple the income of $30.3 million ($1.23 per share) produced in the first three quarters of 2003. Gross written premiums were up in the first nine months of 2004 to $1.49 billion from $1.45 billion the year prior, while net earned premiums grew to $1.28 billion from $1.15 billion over the same period. At the same time, the loss ratio dropped to 65.5% from 75.6%. And the combined ratio improved to 95.4% year-to-date in 2004, from 104.1% a year before.

Co-operators CEO Kathy Bardswick says the six consecutive quarters of improving results are encouraging. “This is quite an achievement considering the number of summer storms across Canada that impacted Co-operators General,” she notes of the most recent results.