The Co-operators reports decrease in net income in 2010 Q4, 2010 annual profit up 8%

Co-operators General Insurance Company reported a net income of $53.9 million in 2010 Q4, marking a decrease from $82.6 million in 2009 Q4.
On an annual basis, the insurer reported an increase in profit to $80.7 million in 2010 from $74 million in 2009.
“Our earnings [in 2010] were positively impacted by favourable auto insurance results outside of the Greater Toronto Area, improved results in the home insurance line of business, premium growth in British Columbia and Quebec attributable to our agency distribution expansion and improving net investment income and investment gains,” said The Co-Operators CEO and president Kathy Bardswick.
The combined operating ratio (COR) in 2010 Q4 was 97.5%, an increase from the company’s 82.8% COR over the same period in 2009. For the year, the COR grew to 103.1% in 2010 from 101.7% in 2009.
Net claims and adjustment expenses increased 4.2% from 2009 to 2010. The insurer attributes this growth to escalating claims costs in the auto line of business, especially in the GTA and a large number of severe weather storm losses.
Net investment income decreased year-over-year, from $143.3 million in 2009 to $134.4 million in 2010.
The company’s minimum capital test was 241% at Dec. 31, 2010, well above the regulatory minimum requirement of 150%.