Small gains for Co-operators in 3-Q

The Co-operators General Insurance (TSE: CCS.PR.A) is showing signs of a rebound, announcing after tax net income of $267,000 for the third quarter to end September 2001. This is a far cry from the same period last year, when the company reported a loss of $3.3 million. This translates to a loss per common share of $0.06 for the quarter, compared with $0.24 last year.

However, the company is still reporting a net loss of $8.2 million for the first nine months of the year, compared with net income of $14.4 million last year. This represents a loss per share of $0.70, compared with earnings per share of $0.42 for the first nine months of 2000. Investment income is one part of the problem, down 10.5% from last year to $103.4 million.

The company’s gross written premiums were up for the quarter by 10.9%, to $444 million. This brings the nine-month total to $1.2 billion, reflecting a 7.1% rise on the first nine months of 2000. “Premium rate increases are starting to take effect and should improve year end results,” says The Co-operators president Terry Squire. He adds, however, that “the weak investment markets continue to limit the opportunity for improvement in investment returns”.