Co-operators produces modest 1-Q earnings growth

Mutual insurer, Co-operators General Insurance Co. (TSX: CCS.PR.A), lifted net earnings for the first quarter of this year by 6% to $36.5 million compared with the $34.4 million reported for the same period in 2004. The latest quarterly result equates to earnings of $1.75 a share versus the $1.65 a share shown for last year’s first quarter.
The insurer’s gross written premiums for the first quarter of this year clocked in at $407 million, showing moderate year-on-year revenue growth of 1.8% (2004 1-Q: $400 million). However, the company’s net earned premiums for the latest reporting period show a decline at $421.3 million against the $421.7 million reported for the first quarter of 2004.
Co-operators’ underwriting performance also appears to have deteriorated marginally for the first quarter of this year with a loss ratio of 66.1% versus the 65.7% ratio shown at the end of 2004’s first quarter. As a result, the insurer’s combined ratio for the latest reporting period came in at 96.9% (2004 1-Q: 96.4%). The company was able to boost investment income for the first quarter of this year by just over 10% to $41.6 million compared with the $37.7 million posted for the same period last year. "It is a very good start for the organization in 2005 as our strong financial performance continues. We are very pleased with the performance of all companies within this group and with all lines of business which include auto, home, farm and commercial insurance products," says company president Kathy Bardswick.