Co-operators General Insurance Co. Reports Q3 Profit

Canada’s Co-operators General Insurance Company reported third quarter 2003 consolidated after-tax net income of $10.9 million, compared to the $3.4 million loss for the same period in 2002.

Gross written premium in the third quarter increased 10.0 percent to $528 million, compared to $480 million in the third quarter of 2002. The claims ratio for the quarter was 74.3 percent, compared to 80.9 percent during the comparable period last year. The combined ratio of claims and operating expenses was 102.5 percent, compared to 109.0 percent for the third quarter of 2002.

Gross written premium on a year-to-date basis was $1,450 million,
reflecting an increase of 12.5 percent over last year. Earned premium growth was 13.6 percent above the previous year. Net income was $30.3 million, compared to Net income of $1.4 million for the nine months ended Sept. 30, 2002. Investment income at $93.5 million decreased 1.0 percent from the $94.5 million reported for 2002.

Earnings per common share were $0.48 for the third quarter compared to a loss of $0.23 for the same period last year. Year-to-date earnings per common share were $1.23, compared to a loss of $0.21 for the nine month period ended Sept. 30, 2002.

“Our year-to-date results represent a very modest return on equity of
4.7 percent,” said Kathy Bardswick, president and CEO. “Profitability of the auto insurance product remains a serious concern in all provinces except Quebec; however we remain hopeful that solid reforms will soon benefit both consumers and the industry.”