Claims hamper Co-operators rebound

Despite encouraging half-year results, net income was down in the seoncd quarter and claims were on the rise for Co-operators General Insurance Company (TSX: CCS.PR.A).
After-tax net income was down to $7.0 million for the quarter ending June 30, 2002, from $11.5 million for the same period a year earlier. This translates into earnings per common share of $0.20 for the current quarter, against $0.43 a year earlier.
But for the first six months of this year, the company posted net income of $4.7 million, versus a loss of $8.5 million at mid-year 2001. Year- to-date earnings per share are $0.02, compared to a loss per share of $0.60 in the first half of 2001.
Gross written premiums were up for the second quarter and half-year, by 6.3% and 5.6% respectively. GWP for the second quarter are $473 million, versus $445 million a year earlier. Net earned premiums were also up, to $333 million in 2-Q 2002, from $315 million last year in the second quarter.
But the company’s claims ratio rose, to 79.2% in the second quarter of this year, compared to 72.7% during the same period in 2001. The combined ratio similarly blossomed, to 108.1% for the current quarter from 103.0% a year earlier.