The Co-operators reports decreased net income in 2008

The Co-operators has reported a net income of Cdn$82.4 million in 2008, a decrease from Cdn$158.7 million in 2007.
“The Co-operators and its member-owners reflected upon a year marked by unprecedented economic upheaval and market volatility,” according to a company release. “Despite the challenging environment, The Co-operators maintained its financial strength, expanded its membership base and made significant contributions to Canadian communities.”
Return on shareholders’ equity for the group of companies was 6.2% for 2008, down from 13.2% in 2007, the company notes.
In addition to the challenging environment overall, rising average claims costs in the property and casualty businesses contributed to the decline in ROE, the company notes.
The insurer in 2008 purchased a 71.4% stake in Montreal-based Addenda Capital Inc., an institutional asset manager with Cdn$35.6 billion under management.
Despite unfavourable market conditions and the deployment of excess capital for the acquisition of Addenda Capital, the organization’s capital ratios remain well above the regulatory minimums of 150%, the company notes. 
The Minimum Capital Test for The Co-operators property and casualty insurance companies was 204%.
The Co-operators reported a combined ratio of 106.2% in 2008, up from 98.3% in 2007.