Co-operators General reports decline in Q4 profit, rise in year-end earnings

Co-operators General Insurance Company has announced its consolidated financial results for the three months and year ended December 31, 2010.

For the fourth quarter, Co-operators General reported a consolidated net income of $53.9 million, compared to $82.6 million for the same quarter in 2009. Earnings per common share was $2.42 for the fourth quarter compared to $3.86 for the same period last year.

Net income for the year amounted to $80.7 million, compared to $74.0 million in 2009, resulting in earnings per common share of $3.17 compared to $3.02 in 2009.

“Our earnings were positively impacted by favourable auto insurance results outside of the Greater Toronto Area (GTA), improved results in the home insurance line of business, premium growth in British Columbia and Quebec attributable to our agency distribution expansion, and improving net investment income and investment gains,” said Kathy Bardswick, President and CEO of The Co-operators, in a statement.

“We continue to have challenges with the auto insurance product in the GTA due to escalating accident benefit costs.  In addition, increased storm activity was experienced in the second and third quarters of 2010,” said Bardswick.

“Despite these challenges, net income year over year was up 9%, net earned premium continued to grow across all product lines and our capital position remains very strong.”

Co-operators General’s fourth quarter financial highlights:

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

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