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Co-operators General Insurance Company reports third quarter 2007 profit of $87.4 million

Nov 5, 2007

    GUELPH, ON, Nov. 5 /CNW/ - Co-operators General Insurance Company (the
"Company") today announced its financial results for the three and nine months
ended September 30, 2007. For the third quarter, the Company reported
consolidated net income of $30.3 million, compared to $18.0 million for the
same quarter in 2006. The improvement was due to stronger underwriting
performance. Earnings per common share were $1.44 for the third quarter
compared to $0.83 for the same period last year.
    Year-to-date net income amounted to $87.4 million, compared to
$99.6 million for the same period last year, resulting in earnings per common
share of $4.06 in 2007 compared to $4.68 in 2006. Lower realized investment
gains and higher general expenses contributed to the decline in the results.
    "We are pleased with our results this quarter, which have improved
significantly over the same period last year, reflecting continued positive
auto claims development from prior accident years," commented Kathy Bardswick,
president and CEO of The Co-operators. "Our combined ratio at 99.9%, continues
to improve toward our target range of 95 - 99% and our capital position
remains very strong with a Minimum Capital Test ratio of 243%."

           Co-operators General Third Quarter Financial Highlights
                (In thousands, except for earnings per share)

                          3rd quarter  3rd quarter       YTD          YTD
                              2007         2006         2007         2006
                              ----         ----         ----         ----

    Gross Written Premium  $ 571,949    $ 549,251   $ 1,593,611  $ 1,580,503
    Net Earned Premium     $ 487,906    $ 472,592   $ 1,422,732  $ 1,381,835
    Net Investment Income
     and realized gains    $  38,872    $  56,781   $   122,935  $   148,854
    Net Income             $  30,268    $  18,011   $    87,379  $    99,602
    Earnings per
     common share          $    1.44    $    0.83   $      4.06  $      4.68

    Loss Ratio                 68.4%        75.7%         68.1%        68.9%
    Expense Ratio              31.5%        30.8%         31.8%        31.1%
    Combined Ratio             99.9%       106.5%         99.9%       100.1%

    Gross written premium in the third quarter increased 4.1% to
$571.9 million, compared to $549.3 million in the third quarter of 2006
primarily due to growth in the auto and home lines of business in western
    Net earned premium growth for the quarter was 3.2% above the previous
year due to new home and auto policies in western Canada, partially offset by
continued soft pricing in commercial markets and rate reductions in certain
auto markets. Third quarter net investment income and realized gains totalled
$38.9 million, a decrease of 31.4% from the $56.7 million reported for 2006.
The decline in investment income was due to lower investment gains realized in
    The loss ratio for the quarter was 68.4%, down from 75.7% during the
comparable period last year. The combined ratio of claims and operating
expenses was 99.9%, compared to 106.5% for the third quarter of 2006 due to
improved prior accident year claims development and the release of related
reserves partially offset by storm losses in western Canada. The year-to-date
combined ratio, while showing some improvement from 2006, is still being
impacted by the high current accident year claims in the first quarter of 2007
and increased storm losses when compared to 2006 storm related losses.
    The Company's capital position remains very strong, as the Minimum
Capital Test for Co-operators General Insurance Company was 243% at
September 30, 2007, well above the regulatory minimum requirement of 150%. The
Company has no exposure to non-bank asset backed commercial paper.

    With assets of approximately $4.5 billion, Co-operators General Insurance
Company is a 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, a national group of companies owned by 37 Canadian co-operative
organizations that focuses on insurance and investment products.

    %SEDAR: 00008192EF

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

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