The Co-operators reports increased Q3 net income over same period last year

Co-operators General Insurance Company announced its third quarter financials for 2012 on Oct. 25, including consolidated net income of $12.6 million compared with $6.2 million for the same period last year.

Direct written premium (DWP) in the third quarter, ended Sept. 30, has increased by 2.7% to $561.4 million compared to Q3 2011. Those figures exclude its L’Union Canadienne business, whose sale to RSA Canada closed Oct. 1.

The Co-operators, based in Guelph, Ont., reported net income for the year up to Sept. 30 of $143.5 million, an increase of $85.1 million from the same period last year.

The combined ratio, excluding the market yield adjustment (MYA) for Q3 was 105.7%, compared to 101.0% for the comparable period in 2011.

“We are experiencing good client growth across the country as direct written premium has increased across all core lines of business and all regions,” Kathy Bardswick, president and CEO of the Co-operators said in a statement.

“The positive impact of this client growth on direct written premiums has been offset somewhat by rate decreases being applied in some territories,” she added. “The improved performance in our investment portfolio reflects the general rise in equity markets and helped to offset third quarter underwriting losses resulting from summer storm activity.”

The company’s $150 million sale of L’Union Canadienne, which was announced in June, has also allowed it to focus more on its direct distribution business in the Quebec market, it noted.