Co-Operators cite increase in claims costs for dramatic drop in Q3 net income

Co-Operators General Insurance Company announced a net loss of Cdn$16.1 million for 2009 Q3, compared to a net profit of Cdn$22.2 million for the same quarter in 2008.
The combined ratio for the quarter was 113.2%, compared to 103.5% in 2008 Q3.
The company’s loss ratio for 2009 Q3 also increased to 82.3% from 71.3% in 2008 Q3.
“The Q3 loss ratio has increased on all product lines,” a release says.
“Auto results continued to deteriorate in the Ontario region, particularly on accident benefits claims, but showed improvement in western Canada,” it continues.
“Home and commercial results have been negatively impacted in 2009 Q3 compared to the same period of last year due to severe summer storm activity in all regions of the country.”
The company reported net earned premiums in 2009 Q3 of Cdn$518.9 million, marking an increase from 2008 Q3’s Cdn$502.3 million.
Net investment income and net investment gains remained relatively flat, with Cdn$42.4 million reported in 2009 Q3, and Cdn$42.1 million in 2008 Q3.
Co-Operators General’s capital position was 223% in 2009 Q3, compared to 218% in 2008 Q3.
“Our results were impacted by a large number of severe summer storms throughout the country, which contributed to additional claims and adjustment expenses in the Q3 compared to last year,” said Kathy Bardswick, president and CEO of The Co-Operators.
“We are pleased to be sustaining growth in net earned premium across all our core product lines in every region of the country during the economic downturn.”