News Releases
Co-Operators General Insurance Company reports first quarter 2007 profit of $8,247,000
Apr 30, 2007
2:34pm
GUELPH, ON, April 30 /CNW/ - Co-operators General Insurance Company today announced its financial results for the quarter ended March 31, 2007. For the first quarter, the Company reported consolidated after-tax net income of $8.2 million, compared to the $31.9 million profit for the same period in 2006. Gross written premium in the first quarter decreased 1.3% to $423 million, compared to $428 million in the first quarter of 2006. The loss ratio for the quarter was 74.4%, compared to 67.9% during the comparable period last year. The combined ratio of claims and operating expenses was 107.5%, compared to 99.8% for the first quarter of 2006. Net earned premium growth was 3.3% above the previous year. Investment income and realized gains totalled $45.0 million a decrease of 4.4% from the $47.1 million reported for 2006. Earnings per common share were $0.34 for the first quarter compared to $1.53 for the same period last year. Co-operators General First Quarter Results Summary (In thousands, except for earnings per share) --------------------------- 1st quarter 1st quarter 2007 2006 ------------- ------------- Gross Written Premium $ 423,087 $ 428,486 Net Earned Premium $ 462,424 $ 447,443 Investment Income $ 45,036 $ 47,131 Net Income $ 8,247 $ 31,962 Earnings per common share $ 0.34 $ 1.53 Loss Ratio 74.4 67.9 Expense Ratio 33.1 31.9 Combined Ratio 107.5 99.8 "The first quarter of 2007 posed significant challenges," said Kathy Bardswick, president and CEO of The Co-operators. "Automobile claims frequency was up for the first quarter while average premium continues to decline due to the rate decreases taken in most areas of the country over the past two years. In addition, the severity of claims in our other product lines increased significantly during the first quarter. Offsetting some of these market pressures are a strong balance sheet, good investment gains in the equity markets and new underwriting and risk selection initiatives already implemented. The underlying strength of the company continues to be demonstrated in spite of first quarter challenges." 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.A. The company is part of The Co-operators, a national group of companies owned by 37 Canadian co-operative organizations that focuses on insurance as well as investment products and property development. %SEDAR: 00008192EF
For further information: Kevin Daniel, Senior Vice-President and Chief Financial Officer, Telephone: (519) 767-3036, Fax: (519) 824-0599