News Releases

Co-operators General Insurance Company reports fourth quarter 2006 profit of $18,519,000

Feb 16, 2007
1:28pm

    GUELPH, ON, Feb. 16 /CNW/ - Co-operators General Insurance Company today
announced its financial results for the quarter ended December 31, 2006. For
the fourth quarter, the company reported consolidated after-tax net income of
$19 million, compared to the $39 million profit for the same period in 2005.
    Gross written premium in the fourth quarter increased 6.7% to
$519 million, compared to $486 million in the fourth quarter of 2005. The loss
ratio for the quarter was 68.3%, compared to 63.1% during the comparable
period last year. The combined ratio of claims and operating expenses was
99.0%, compared to 97.0% for the fourth quarter of 2005.
    Net earned premium growth was 6.9% above the previous year. Investment
income and realized gains totalled $40 million a decrease of 11.2% from the
$45 million reported for 2005.
    Earnings per common share were $0.78 for the fourth quarter compared to
$1.81 for the same period last year.

             Co-operators General Fourth Quarter Results Summary
                 (in millions, except for earnings per share)

    -------------------------------------------------------------------------
                          4th quarter   4th quarter      YTD          YTD
                              2006          2005         2006         2005
                              ----          ----         ----         ----
    Gross Written
     Premium              $       519  $       486  $     2,099  $     1,995
    Net Earned Premium    $       474  $       444  $     1,856  $     1,739
    Investment Income     $        40  $        45  $       189  $       164
    Net Income            $        19  $        39  $       118  $       132
    Earnings per
     common share         $      0.78  $      1.81  $      5.46  $      6.16

    Loss Ratio                   68.3%        63.1%        68.8%        66.7%
    Expense Ratio                30.7%        33.9%        31.0%        31.4%
    Combined Ratio               99.0%        97.0%        99.8%        98.1%
    -------------------------------------------------------------------------

    "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 results."

    With assets of approximately $4.4 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.A. The company is part of The
Co-operators, a national group of companies owned by 34 Canadian co-operative
organizations that focuses on insurance as well as investment products and
property development.

    The non-GAAP financial measures referred to herein do not have any
standardized meaning prescribed by GAAP and therefore may not be comparable to
similar measures presented by other issuers. A full explanation of each is
provided in the Annual Report.

    %SEDAR: 00008192EF

For further information: Kevin Daniel, Senior Vice-President and Chief
Financial Officer, Telephone: (519) 767-3036, Fax: (519) 824-0599

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