Co-Operators reports Q1 net loss

Co-Operators General Insurance Company reported a net loss of  $6.4 million in 2009 Q1, compared to a net income of $5.9 million in 2008 Q1.
Its minimum capital test score dropped to 200% in Q1 from 255% in 2008 Q1. Still, the company notes this is “well above the regulatory minimum requirement of 150%.”
The insurer’s combined ratio increased to 110.5% for the quarter from 109.2% reported in 2008 Q1.
The company reported a loss ratio of 76.5% in 2009 Q1, marking a slight decrease from 2008 Q1’s loss ratio of 76.9%.
“The first quarter loss ratio was down on auto, commercial and farm product lines,” a Co-Operators release says. “Home results were unfavourably impacted by replacement and clean-up costs, as well as major event losses relating to weather.”
Gross written premium in 2009 Q1 increased 5.8% to $466 million, compared to $440.4 million in 2008 Q1.
Net investment gains of $6.2 million were achieved in the quarter, down from $17.3 million in the same period of 2008, the release continues.
“The impact of the downturn in the capital markets and increased claims costs contributed to the loss we experienced in the first quarter,” said Kathy Bardswick, president and CEO of The Co-Operators. “Despite a challenging environment, our fundamentals are solid, our capital position is strong, and we continue to make progress toward our strategic objectives.”