The Co-operators sees gains in home lines in 2010, deterioration in auto

The Co-operators General Insurance Company reported a net income of $80.7 million for 2010, marking an increase from 2009’s $74-million profit.
The combined ratio for the company (excluding market yield adjustment) deteriorated slightly from 101.7% in 2009 to 103.1% in 2010.
The insurer cites a 4.2% increase in net claims and adjustment expenses from 2009 to 2010 as a contributor to the increased combined ratio.
The Co-operators saw its auto lines loss ratio increase by 8.7% in 2010 compared to 2009, as continued escalation of accident benefit costs in the GTA have “overwhelmed otherwise favourable results,” The Co-operators’ annual report says.
The 2009 loss ratio was also positively affected by the release of reserves held for the Alberta minor injury cap as a result of the Supreme Court of Canada’s decision to deny leave to appeal to the constitutional challenge, it added.
The loss ratio in the home segment decreased by 15.1% in 2010. The company said increased pricing and enhanced client segmentation initiatives implemented in 2009 significantly improved profitability.
“The significant improvement in our home results was offset by escalating accident benefit costs in the auto line of business, specifically in the GTA and increased storm activity, especially in the second and third quarters of the year,” The Co-operators’ annual report says.