The Co-operators Announces Year-End Financial Results
Apr 15, 2010
REGINA, SK, April 15 /CNW/ - The Co-operators today announced net income for the co-operatively-owned group of companies of $55 million for 2009, a decrease of 25 per cent from $73 million the previous year. During its Annual General Meeting, which wrapped up today in Regina, the organization reflected upon a year of significant achievement despite a very challenging operating environment.
Amid challenges including the economic downturn and a very costly year for property claims related to storms across Canada, The Co-operators maintained its financial strength and made significant corporate acquisitions. In a transaction that closed on December 31, 2009, Co-operators Life Insurance Company and Central 1 Credit Union acquired the CUMIS Group Ltd., which provides insurance services and products to Canadian credit unions and their members. The Co-operators also significantly expanded its presence in British Columbia with the acquisition of Vancity Insurance Services Limited which provided insurance through 17 retail branches in Greater Vancouver and Victoria.
"It was a testament to the underlying financial strength of this organization that we were able to make these significant acquisitions during such a challenging time," said Kathy Bardswick, president and CEO of The Co-operators. "Not only did these transactions help us grow, they also deepened our relationship with the Canadian credit union sector and credit union members."
The organization also celebrated a milestone in its history in the summer of 2009 as the first Co-operators agents opened for business in the province of Quebec. Plans call for a total of seven agencies to open in the province by the end of 2010.
Despite unfavourable market conditions and a prolonged recession, the organization's capital position remains very strong. The Minimum Capital Test for Co-operators General Insurance Company was 230 per cent, while Co-operators Life Insurance Company's Minimum Continuing Capital and Surplus Requirement was 255 per cent.
In 2009, more than $5 million was reinvested into Canadian communities through staff and agent contributions, community partnerships, corporate giving and volunteerism.
The Co-operators Annual Reports were also released during the AGM. They are available at www.cooperators.ca.
About The Co-operators:
The Co-operators Group Limited is a 100 per cent Canadian-owned co-operative with more than $36.9 billion in assets under administration. It is well known for its community involvement, and is listed among the 50 Best Employers in Canada. The group of companies includes property and casualty insurers Co-operators General Insurance Company, the Sovereign General Insurance Company, l'Union Canadienne, and COSECO Insurance Company; life insurer Co-operators Life Insurance Company and its subsidiary TIC Travel Insurance Co-ordinators Ltd., as well as The CUMIS Group Ltd.; and institutional asset manager Addenda Capital Inc.