November 15, 2002 by Canadian Underwriter
The Co-operators General Insurance Co. (TSX: CCS.PR.A) produced a net loss of $3.3 million for the third quarter of this year compared with an after-tax profit of $267,000 for the same period a year prior. The insurer’s net income for the first nine months of this amounted to $1.4 million, a significant turnaround from the $8.2 million net loss made for the same period a year ago. The loss for the third quarter equates to 23c a share.
Co-operators’ gross written premium income rose by 8% to $480 million (2001 3-Q: $444 million) for the third quarter of 2002 over that of the same period last year. The insurer was able to reduce the claims ratio to 80.9% for the third quarter of this year compared with the 86.4% shown at the end of September 2001. The combined ratio for the latest quarterly reporting period clocked in at 108.9% against the 112.7% from a year ago.
President Kathy Bardswick says she is encouraged by the improvement in the underwriting results, although bodily injury (BI) claims on the auto side continue to bedevil the company’s bottom-line. "Escalating costs associated with serious bodily injury claims continue to depress earnings despite double-digit premium rate increases. The situation is not helped by limited investment yields in the current volatile markets."