May 6, 2004 by Canadian Underwriter
Guelph, Ontario-based Co-operators General Insurance Co. (TSX: CCS.PR.A) is reporting its fourth straight quarter of strong results, with net income of $34.4 million for the quarter ending March 31, 2004.
This compares with a net loss for $5.9 million for the first quarter last year. Earnings per share over the same period grew to $1.65 from a loss of $0.36.
Most notably, the company’s combined ratio dropped to below the “magic 100%” at 96.4% for the most recent quarter, versus 112.5% a year ago. At the same time, the company drove its loss ratio down to 65.7% from 82.4% last year.
Gross written premiums were up to $399.6 million (Q1 2003: $377.5 million), while net earned premiums were up to $421.7 million (Q1 2003: $361.2 million).
Investment income was also up by 9.6% to $37.7 million for first quarter 2004, versus $34.4 million last year.
“We are satisfied and encouraged by our strong first quarter results. The company has now shown progress in four consecutive quarters over the dismal results experienced in 2001 and 2002,” says Kathy Bardswick, president and CEO of parent company The Co-operators. “However, the full negative impact associated with our recent automobile premium refunding activity across the country has not yet impacted our earned premium.”