Increased claims severity mutes The Co-operators’ 2006 Q4 results

Co-operators General Insur-ance Company reported consolidated after-tax net income of Cnd$19 million in 2006 Q4, compared to its Cdn$39 million profit in 2005 Q4.

Gross written premium in 2006 Q4 increased 6.7%, to Cnd$519 million, compared to Cdn$486 million in the fourth quarter of 2005.

The combined ratio of claims and operating expenses was 99.0% in 2006 Q4, compared to 97.0% during 2005 Q4.

Investment income and realized gains totalled Cnd$40 million – a decrease of 11.2% from the Cnd$45 million reported for 2005.

“This brings to a close another very successful year for The Co-operators property and casualty operations, which is good news for our clients and for The Co-operators 34 Canadian member-owners,” said Kathy Bardswick, president and CEO of The Co-operators. “While major storm losses decreased this year, we did experience increased claims severity, leading to a slight deterioration of underwriting results, but this was offset by strong investment [returns].”