Fair weather, Ontario auto boost 2012 Q2 profit of The Co-operators

Co-operators General Insurance Company reported a consolidated net income of $64.4 million in 2012 Q2 compared to $26.4 million for the same quarter in 2011.

For the first six months of the year, net income is $130.9 million, an increase of $78.7 million from the same period last year.

“Earnings in the second quarter were positively impacted by fewer weather-related claims in Western Canada and by favourable claims experience in the Ontario auto insurance market,” said Kathy Bardswick, president and CEO of The Co-operators.

“We are confident the auto insurance reforms introduced by the Ontario government in September 2010 are having a lasting impact on costs related to accident benefits. The changes are benefiting drivers in the province, as evidenced by the rate reductions we have implemented in certain territories.”

The company reported a direct written premium of $587.4 million in 2012 Q2, up from $576.2 million over the same period last year.

Net investment gains and income decreased by $1.4 million versus the second quarter of prior year. “This is attributable to less realized and unrealized gains, which fully offset the lower impairment losses over the same period last year,” the company reported.

The combined ratio in 2012 Q2, excluding the market yield adjustment (MYA) for the quarter, was 89.2%, an improvement from 100.8% during the same period last year.

The company’s quarterly minimum capital test score was 285% (regulatory minimum is 150%).