The Co-operators reports Q4 net income increase

The Co-operators General Insurance Co. (TSX:CCS.PR.A.) gained a consolidated after-tax net income of Cdn$39.1 million for the fourth quarter ended Dec. 31, 2005, compared to the Cdn$38.8 million profit for the same period in 2004.

Gross written premium in the fourth quarter declined 1.8% to Cdn$486 million, compared with Cdn$495 million for the fourth quarter of 2004. The loss ratio for the quarter was 63.1%, compared to 59.4% during the comparable period last year. The combined ratio of claims and operating expenses was 97%, compared to 93.7% for the fourth quarter of 2004.

Gross written premium on a year-to-date basis was Cdn$1.995 million, reflecting an increase of 0.4% over last year. Earned premium growth was 1.3% above the previous year. Net income was Cdn$132.1 million, compared to Cdn$139.5 million for the year ended Dec. 31, 2004. Investment income, at Cdn$164 million, increased 32.7% from the Cdn$123.6 million reported for 2004.

“Despite increased storm activity, our results remain strong,” Kathy Bardswick, president and CEO of The Co-operators, says. “Solid investment income and client growth helped offset the effects of our auto insurance rate reductions.”

Co-operators General Insurance, with assets of approximately $4.2 billion, is part of The Co-operators national group of companies.