Co-Operators reports increase in profit, loss ratio and combined ratio

Co-Operators General Insurance Company reported a 2008 Q1 net income of Cdn$10.5 million, an increase of Cdn$2.3 million over the same period of last year.
Net earned premium for 2008 Q1 was Cdn$484.2 million, an increase from 2007 Q1’s Cdn$462.4 million, according to a company release. The company cites its decision to retain a greater portion of its underwriting risk by reducing its use of reinsurance as an explanation for the increase.
The company’s loss ratio increased to 76.9% from 74.4% and the combined ratio climbed to 109.3% from 107.5% for the same period.
The company attributes the increase in its loss ratio to the impact of lower interest rates on its claims reserves and regulatory changes in Alberta.
“Excluding the impact of lower interest rates and regulatory changes in Alberta, our loss ratio was 72.6% and our combined ratio was 105.0%,” the company said.
“Growth in personal automobile and home lines of business, primarily in the Western and Ontario regions, was partly offset by declines in the commercial line of business and the Quebec region.
“Lower interest rates had a negative short-term impact on our results, as did changes in the Alberta auto regulatory situation related to minor injury claims,” said Kathy Bardswick, president and CEO of Co-Operators General Insurance. “However, the company’s performance during the first quarter demonstrated its continued underlying strength.”