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Co-operators General Insurance reports Q3 results

Co-operators General Insurance Company reported it consolidated net income was $6.2 million in the third quarter of 2011, compared to a net loss of $8.9 million for the same quarter in 2010. This resulted in earnings per common share of $0.14 for the quarter compared to $(0.61) in the same period last year.

Co-operators General said for the first nine months of the year, net income is $58.4 million, which is an increase of $38.6 million from the same period last year, resulting in earnings per common share of $2.31 (2010 - $0.40).

“Hail, wind and rain storms in Ontario and western Canada negatively affected our results, but were offset by much-improved claims results in the Ontario auto insurance market. At this point, we are cautiously optimistic that Ontario auto reforms introduced last year are having a positive impact,” said Kathy Bardswick, President and CEO of The Co-operators.

“The major correction in the stock markets in the third quarter related to the debt crisis in Europe and uncertainty surrounding the U.S. budget contributed to our net investment losses of $10.1 million during that time.”

CO-OPERATORS GENERAL’S THIRD QUARTER FINANCIAL HIGHLIGHTS

($ in millions, except for earnings per share and ratios)

3rd quarter
2011

3rd quarter
2010

YTD
2011

YTD
2010

Key financial data
Direct written premium (DWP)

611.2

612.4

1,745.2

1,737.9

Net earned premium (NEP)

564.7

539.4

1,630.2

1,578.9

Net income (loss)

6.2

(8.9)

58.4

19.8

Total assets

 5,328

5,172

5,328

5,172

Shareholders’ equity

1,428

1,343

1,428

1,343

Key success indicators   
DWP growth1

(0.2%)

3.0%

0.4%

4.2%

NEP growth1

4.7%

4.0%

3.2%

4.3%

Earnings per share

 $0.14

($0.61)

$2.31

$0.40

Annualized return on average equity

1.9%

(2.9%)

6.1%

2.2%

Combined ratio – excluding MYA

101.0%

111.7%

101.6%

104.8%

Minimum Capital Test (MCT)2

242%

242%

242%

242%

1Growth metrics for 2010 are based on Canadian GAAP values as comparisons do not exist

22010 MCT is as at December 31

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