Guelph, Ontario-based Co-operators General Insurance Co. (TSX: CCS.PR.A) is reporting solid net income of $10.93 million, or $0.48 per share, for the third quarter ending September 30, 2003, a turnaround from the net loss of $3.4 million, or $0.23 per share, reported for the same period a year earlier. Net income on a year-to-date basis is also up, to $30.3 million, or $1.23 per share, from $1.4 million, representing a loss of $0.21 per share, a year ago.Gross written premiums were up in the third quarter 2003 to $528 million, a 10% jump over last year’s third quarter. But claims saw the greater improvement, with the company posting a loss ratio of 74.3% for the most recent quarter versus 80.9% a year earlier. The combined ratio dropped to 102.5% from 109% during the same comparative period.For the first nine months of 2003, the company had gross written premiums of $1.45 billion, up 12.5 % over last year’s tally of $1.29 billion at the nine-month mark. Net earned premiums were up 13.6% during the same period, to $1.15 billion from $1.01 billion. This is despite a drop in investment income to $93.5 million for the first nine months of this year, from $94.5 million last year.But the company is not ready to celebrate just yet. “Our year-to-date results represent a very modest return on equity of 4.7%,” notes Co-operators General president and CEO Kathy Bardswick. “Profitability of the auto insurance product remains a serious concern in all provinces except Quebec; however we remain hopeful that solid reforms will soon benefit both consumers and the industry.”
Insurers handling record amounts of claims this summer
Insurers have handled double the amount of claims this summer compared to last year, according to the Insurance Bureau of Canada. Approximately 228,000 insurance claims have been filed following this summer’s four major catastrophes: flooding in Toronto and southern Ontario, the Jasper wildfire, the Calgary hailstorm, and flooding in Quebec. All occurred in the span […]
By Alyssa DiSabatino | September 9, 2024
2 min read