Small gains for Co-operators in Q3

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 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 from $115.5 million.But gross written premiums were up for the quarter by 10.9%, to $444 million. This brings the nine-month total to $1.2 billion, up 7.1% from the first nine months of 2000.And the company’s combined ratio dropped to 112.7% from last year’s third quarter showing of 115.1%”Premium rate increases are starting to take effect and should improve year end results,” says The Co-operators president and CEO Terry Squire. However, he adds, “The weak investment markets continue to limit the opportunity for improvement in investment returns”.