Co-operators General Insurance Company, the largest Canadian-owned private sector property/casualty insurer, announced its second quarter, reporting consolidated after-tax net income of $38.0 million, compared to $25.3 million income for the same period in 2003.
Gross written premium in the second quarter increased 5.2 percent to $573 million, compared to $545 million in the second quarter of 2003. The claims ratio for the quarter was 63.7 percent, compared to 70.7 percent during the comparable period last year. The combined ratio of claims and operating expenses was 92.8 percent, compared to 97.8 percent for the second quarter of 2003. Investment income at $27.3 million decreased by 11.0 percent from the $30.7 million reported for the second quarter 2003.
“We are satisfied and encouraged by our strong 2004 results. The company has now shown progress in five consecutive quarters over the dismal results experienced in 2001 and 2002. Our two most recent agency rating reviews have resulted in removal of the negative trend on the rating for the company which reflects our improved financial performance. As various governments across Canada introduce effective automobile product reforms, we have been able to introduce rate decreases for our customers in those provinces and maintain a reasonable profit expectation for the company,” said Kathy Bardswick, President and CEO of The Co-operators.
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