February 18, 2010 by Canadian Underwriter
The Co-operators General Insurance Company reported a net income of $74 million in 2009, marking an increase from 2008’s net income of $52.8 million.
The insurer’s combined ratio dropped from 106.4% in 2008 to 103.1% last year.
Its return on equity also improved year-over-year from 4.8% in 2008 to 6.5% in 2009.
The minimum capital test score increased from 199% in 2008 to 230% in 2009.
“Our results were positively impacted by favourable weather conditions and claims development in the fourth quarter and the positive Supreme Court of Canada decision on the Alberta minor injury cap legislation,” said Kathy Bardswick, president and CEO of The Co-operators.
“We continue to face challenges with the home insurance product due to the impact of rising severity of losses and replacement and clean-up costs, as well as continuing losses in the Greater Toronto Area on auto accident benefit claims.”