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Co-operators General Insurance Company reports second quarter 2007 of $48.9 million

Aug 2, 2007
9:06am

    GUELPH, ON, Aug. 2 /CNW/ - Co-operators General Insurance Company today
announced its financial results for the quarter ended June 30, 2007. For the
second quarter, the Company reported consolidated after-tax net income of
$48.9 million, compared to $49.6 million for the same period in 2006.
    Gross written premium in the second quarter decreased 0.7% to $598.6
million, compared to $602.8 million in the second quarter of 2006. The loss
ratio for the quarter was 61.8%, compared to 63.1% during the comparable
period last year. The combined ratio of claims and operating expenses was
92.5%, compared to 93.8% for the second quarter of 2006.
    Net earned premium growth was 2.3% from the previous year. Net investment
income and realized gains totalled $39.0 million, a decrease of 13.3% from the
$45.0 million reported for 2006.
    Earnings per common share were $2.29 for the second quarter compared to
$2.32 for the same period last year. Highlights of the Company's consolidated
results for the period are as follows:

             Co-operators General Second Quarter Results Summary
                (In thousands, except for earnings per share)

    -------------------------------------------------------------------------
                      2nd quarter    2nd quarter        YTD           YTD
                         2007           2006           2007          2006
                         ----           ----           ----          ----
    Gross Written
     Premium          $  598,575     $  602,766     $1,021,662    $1,031,252
    Net Earned
     Premium          $  472,402     $  461,800     $  934,826    $  909,243
    Net Investment
     Income and
     realized gains   $   39,027     $   44,942     $   84,063    $   92,073
    Net Income        $   48,864     $   49,629     $   57,111    $   81,591
    Earnings per
     common share           2.29           2.32           2.63          3.85

    Loss Ratio             61.8%          63.1%          68.0%         65.5%
    Expense Ratio          30.7%          30.7%          31.9%         31.3%
    Combined Ratio         92.5%          93.8%          99.9%         96.8%
    -------------------------------------------------------------------------

    The Company's shareholders' equity is $1,173.8 million at June 30, 2007,
an increase of $136.9 million or 13.2% since year end, primarily due to
recognizing investment market values on the balance sheet. This foundation
supports the Company's operations and has resulted in a Minimum Capital Test
for the Company of 239%, well above the regulatory minimum requirement of
150%.
    A strong balance sheet, superior capitalization and continued earnings
provide a strong, sustainable base for the Company and its planned results for
2007. We are well positioned to build upon our diversified product,
geographical presence and distribution base.
    "Following a challenging first quarter of 2007, we are pleased that our
results improved in the second quarter and are very consistent with the same
period last year," said Kathy Bardswick, president and CEO of The
Co-operators. "Net investment income is down compared to last year, but our
underwriting results are an improvement over the same quarter last year and
the organization's financial strength remains solid."
    With assets of approximately $4.5 billion, Co-operators General Insurance
Company is the leading Canadian-owned, multi-product insurance company.
Co-operators General preference shares are listed on the Toronto Stock
Exchange under the trading symbol CCS.PR.C. The Company is part of The
Co-operators Group Limited, a national group of companies owned by 37 Canadian
co-operative organizations, which focuses on insurance and investment
products.
    A copy of the Company's financial statements for the period ended June
30, 2007 is available at www.sedar.com.

    %SEDAR: 00008192EF
For further information: Bruce West, Senior Vice-President, Finance and
Chief Financial Officer, Telephone: (519) 767-3036, Fax: (519) 824-0599

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