Co-operators stumbles again

Claims and operating costs continue to hamper Canada’s largest private insurer, Co-operators General Insurance Company. Despite a restructuring program following last year’s dismal financial performance, Co-operators saw net income drop and claims and operating ratios rise in the second quarter of 2000 compared with the same period last year. Net income for the first six months of this year amounted to $15.7 million — down 26% on the $21.4 million reported for the same period in 1999.

Gross written premiums rose by just over 191% to $415 million for the second quarter 2000 (1999: $348 million). However, the claims ratio for second quarter rose to 71.8% from the 69.4% mark for 1999. This resulted in the combined ratio soaring to 103.7%, from 98.7% for the same period last year.

Gross written premiums for the first six months of this year rose by 10.5% over last year, and investments clocked in at $76.4 million — a 5.9% increase from the $72.2 million reported for the first half of 1999. However, net taxed income dropped to $17.7 million for the first two quarters of 2000, from $28.9 million for the same period last year. This translated into a 46% slump in earnings a share to 66 compared with $1.23 a share reported for the first half of last year.