News Releases
Co-operators General Insurance Company reports 2009 third quarter results
Nov 2, 2009
7:01am
GUELPH, ON,
"Our results were impacted by a large number of severe summer storms throughout the country, which contributed to additional claims and adjustment expenses in the third quarter compared to last year. The industry also continues to experience increasing costs related to accident benefit auto claims in Ontario," said Kathy Bardswick, President and CEO of The Co-operators. "We are pleased to be sustaining growth in net earned premium across all our core product lines in every region of the country during the economic downturn. Our capital levels remain strong, and our solid financial footing positions the company well for the future."
Co-operators General's Third Quarter Financial Highlights ($ in millions, except for earnings per share) ------------------------------------------------------------------------- 3rd 3rd Year-to- Year-to- quarter quarter date date 2009 2008 2009 2008 ------------------------------------------------------------------------- Gross written premium $ 601.9 $ 589.3 $ 1,693.4 $ 1,644.6 Net earned premium $ 518.9 $ 502.3 $ 1,513.6 $ 1,478.8 Net investment income and net investment gains $ 42.4 $ 42.1 $ 122.6 $ 159.8 Net income (loss) $ (16.1) $ 22.2 $ (8.7) $ 67.2 Earnings (loss) per common share $ (1.01) $ 1.05 $ (0.85) $ 3.08 Return on equity (annualized) (5.5%) 7.8% (1.0%) 7.8% Gross written premium growth 2.1% 3.0% 3.0% 3.2% Loss ratio 82.3% 71.3% 77.1% 72.7% Expense ratio 30.9% 32.2% 32.2% 32.4% Combined ratio 113.2% 103.5% 109.3% 105.1% Minimum Capital Test 223% 218% 223% 218% ------------------------------------------------------------------------- -------------------------------------------------------------------------
Third Quarter Review
Gross written premium in the third quarter increased 2.1% to
Net earned premium growth for the quarter was 3.3% over the previous year. Growth was experienced across all product lines and regions.
Third quarter net investment income from interest, dividends and real estate rose to
The combined ratio of claims and operating expenses for the quarter was 113.2%, compared to 103.5% for the third quarter of 2008. Our loss ratio for the third quarter of 2009 increased to 82.3% from 71.3% in the third quarter of 2008; however, removing the impact of the market yield adjustment, produces an adjusted loss ratio of 79.3% in the third quarter versus 72.1% in 2008. The third quarter loss ratio has increased on all product lines. Auto results continued to deteriorate in the Ontario region, particularly on accident benefit claims, but showed improvement in western
Capital
Co-operators General's capital position remains strong, as the Minimum Capital Test was 223% at
About Co-operators General Insurance Company:
With assets of over