Co-Operators report slight decrease in Q3 profit

Co-Operators General Insurance Company reported a net income of Cdn$29.3 million for 2008 Q3, compared to Cdn$30.3 million for the same period of 2007.
The company saw its combined ratio increase to 103.5% in the quarter, from 99.9% in 2007 Q3. Its year-to-date combined ratio is 105.1%, up from 99.9% for the same period of last year.
The Co-Operators’ loss ratio also increased from 68.4% in 2007 Q3 to 71.3% for 2008 Q3.
Net earned premium was Cdn$502.3 million in 2008 Q3, marking an increase from 2007 Q3’s Cdn$487.9 million.
“Rising average claims costs have negatively impacted the company’s results this quarter,” said Kathy Bardswick, president and CEO of The Co-Operators. “In particular, recent regulatory action in Alberta related to minor injury liability caps has increased Facility Association auto reserves.”
She added the company has not been affected by recent U.S. liquidity and credit events.
“Net earned premium growth for the quarter was 3.0% above the previous year and was largely attributable to the automobile and home lines of business, predominantly in Western Canada and Ontario,” the Co-Operators release says.
“The company’s capital position remains strong, as the minimum capital test for Co-Operators General Insurance Company was 218% at Sept. 30, 2008, well above the regulatory minimum requirement of 150%,” a Co-Operators release says.