Solid 2006 Q3 investment income buoys The Co-operators

Co-operators General Insurance Company reported a 2006 Q3 consolidated, after-tax net income of CD$18 million, compared to the CD$24 million profit for the same period in 2005.”Continued excellent investment returns, particularly in the resource sector, helped offset greater-than-expected automobile claims severity during the third quarter [of 2006],” said Kathy Bardswick, president and CEO of The Co-operators.”Net income is down in the third quarter relative to the previous year, but for the nine months ended Sept. 30, we are still ahead of 2005. Our performance remains solid with a 14.5% return on equity on a 12-month rolling basis.”The company’s 2006 Q3 investment income and realized gains totaled CD$57 million an increase of 50.3% from the CD$38 million reported for the same period in 2005.The Co-operators reported that its gross written premium in 2006 Q3 increased 4.9% to CD$549 million, compared to $523 million in the third quarter of 2005. The company’s loss ratio for the quarter was 75.7%, compared to 71.9% during the comparable period in 2005.The combined ratio of claims and operating expenses was 106.5% in 2006 Q3, compared to 100.6% in 2005 Q3.