2003 sees big leap in Co-operators’ earnings

2003 saw a giant leap in net income for Guelph, Ontario-based Co-operators General Insurance Co. (TSX: CCS.PR.A). The company produce income of $44.0 million last year, versus a net loss of $1.1 million the year prior. This translates to earnings per share of $1.78 in 2003, against a loss per share of $0.48 in 2002.The company’s gross written premiums were up year-over-year to $1.96 billion from $1.73 billion. And net earned premiums were up over the same comparative period to $1.57 billion from $1.38 billion.Co-operators was able to drag its loss ratio down between 2002 and 2003, to 74.0% from 80.0%. The expense ratio was up slightly in 2003, to 29.1% from 28.9% the year previous, but the combined ratio dropped to 103.1% from 108.9% during the same time.The company saw good progress in the last quarter ending December 31, 2003, with net income for the three months of $13.7 million, or $0.55 per share, over a loss of $2.5 million, or $0.27 per share, in fourth quarter 2002. Both gross written and net earned premiums were up, while the loss ratio dropped to 69.5% from 78.2% between fourth quarter 2003 and 2002. Significantly, the company produced a combined ratio close to the “magic 100″ mark in the fourth quarter of 2003, at 100.6%, down from 106.3% in the last quarter of 2002.”We are satisfied and encouraged by our strategic progress resulting in this improved financial performance,” says Kathy Bardswick, president and CEO of parent company The Co-operators. However, she warns, “automobile product performance remains a concern across the country though, given ongoing reform uncertainties.”