Co-Operators General Insurance sees increase in Q4 profits

Co-operators General Insurance Company (TSX:CCS.PR.A.) has gained a consolidated after-tax net income of $39.1 million for the fourth quarter ended Dec. 31, 2005, compared to the $38.8 million profit for the same period in 2004.
Gross written premium in the Q4 declined 1.8% to $486 million, compared to $495 million in the Q4 of 2004. The loss ratio for the quarter was 63.1%, compared to 59.4% during the comparable period last year. The combined ratio of claims and operating expenses was 97%, compared to 93.7% for the Q4 of 2004.
Gross written premium on a year-to-date basis was $1,995 million, reflecting an increase of 0.4% over last year. Earned premium growth was 1.3% above the previous year. Net income was $132.1 million, compared to $139.5 million for the year ended Dec. 31, 2004. Investment income at $164 million increased 32.7% from the $123.6 million reported for 2004.
Earnings per common share were $1.81 for the Q4 compared to $1.81 for the same period last year. Year-to-date earnings per common share were $6.16, compared to $6.54 for the year ended Dec. 31, 2004.
“Despite increased storm activity, our results remain strong,” Kathy Bardswick, president and CEO of The Co-operators, says. “Solid investment income and client growth helped offset the effects of our auto insurance rate reductions.”
Co-operators General Insurance, with assets of approximately $4.2 billion, is part of The Co-operators national group of companies.