GUELPH, ON, April 30 /CNW/ - Co-operators General Insurance Company today
announced its financial results for the quarter ended March 31, 2007. For the
first quarter, the Company reported consolidated after-tax net income of
$8.2 million, compared to the $31.9 million profit for the same period in
Gross written premium in the first quarter decreased 1.3% to
$423 million, compared to $428 million in the first quarter of 2006. The loss
ratio for the quarter was 74.4%, compared to 67.9% during the comparable
period last year. The combined ratio of claims and operating expenses was
107.5%, compared to 99.8% for the first quarter of 2006.
Net earned premium growth was 3.3% above the previous year. Investment
income and realized gains totalled $45.0 million a decrease of 4.4% from the
$47.1 million reported for 2006.
Earnings per common share were $0.34 for the first quarter compared to
$1.53 for the same period last year.
Co-operators General First Quarter Results Summary
(In thousands, except for earnings per share)
1st quarter 1st quarter
Gross Written Premium $ 423,087 $ 428,486
Net Earned Premium $ 462,424 $ 447,443
Investment Income $ 45,036 $ 47,131
Net Income $ 8,247 $ 31,962
Earnings per common share $ 0.34 $ 1.53
Loss Ratio 74.4 67.9
Expense Ratio 33.1 31.9
Combined Ratio 107.5 99.8
"The first quarter of 2007 posed significant challenges," said Kathy
Bardswick, president and CEO of The Co-operators. "Automobile claims frequency
was up for the first quarter while average premium continues to decline due to
the rate decreases taken in most areas of the country over the past two years.
In addition, the severity of claims in our other product lines increased
significantly during the first quarter. Offsetting some of these market
pressures are a strong balance sheet, good investment gains in the equity
markets and new underwriting and risk selection initiatives already
implemented. The underlying strength of the company continues to be
demonstrated in spite of first quarter challenges."
With assets of approximately $4.5 billion, Co-operators General Insurance
Company is the leading Canadian-owned multi-product insurance company.
Co-operators General preference shares are listed on the Toronto Stock
Exchange under the trading symbol CCS.PR.A. The company is part of The
Co-operators, a national group of companies owned by 37 Canadian co-operative
organizations that focuses on insurance as well as investment products and
For further information:
For further information: Kevin Daniel, Senior Vice-President and Chief
Financial Officer, Telephone: (519) 767-3036, Fax: (519) 824-0599