Slave Lake fires affect Co-operators General Insurance Company Q2 2011 results
Co-operators General Insurance Company (Co-operators General) released consolidated financial results for the three months ended June 30, 2011. Consolidated net income was $26.4 million compared to a net loss of $(2.6) million for the same quarter in 2010. This resulted in earnings per common share of $1.06 for the quarter compared to $(0.38) in the same period last year.
For the first six months of the year, net income has increased by $23.4 million compared to last year to $52.2 million, resulting in earnings per common share of $2.17 (2010 – $1.01)
“The wildfires that devastated the community of Slave Lake resulted in some 800 claims. We are very proud of our dedicated team who were among the first on the ground to serve impacted clients and to date have settled 62% of claims,” said Kathy Bardswick, President and CEO of The Co-operators, in a statement.
“After-tax losses from the Slave Lake event totaled approximately $31 million net of reinsurance. The cost of this tragedy and storm losses in the second quarter were partially offset by improving claims experience in Ontario auto insurance, and net investment gains and income which increased by $24.8 million to $45.1 million compared to the same quarter last year. For the second quarter, we achieved an annualized return on equity of 8.2 per cent, and our capital position remains very strong.”
Co-operators General’s second quarter financial highlights
($ in millions, except for earnings per share and ratios)
| Key financial data | 2nd quarter 2011 | 2nd quarter 2010 | YTD 2011 | YTD 2010 |
| Gross written premium (GWP) | 666.6 | 658.7 | 1,146.3 | 1,120.9 |
| Net earned premium (NEP) | 536.4 | 529.0 | 1,065.5 | 1,039.5 |
| Net income (loss) | 26.4 | (2.6) | 52.2 | 28.8 |
| Total assets | 5,254 | 4,956 | 5,254 | 4,956 |
| Shareholders’ equity | 1,427 | 1,301 | 1,427 | 1,301 |
| Key success indicators | ||||
| GWP growth1 | 1.2% | 4.5% | 2.3% | 4.5% |
| NEP growth1 | 1.4% | 4.3% | 2.5% | 4.3% |
| Earnings per share | $1.06 | ($0.38) | $2.17 | $1.01 |
| Annualized return on average equity | 8.2% | (0.8%) | 8.2% | 4.7% |
| Combined ratio – excluding MYA | 100.5% | 102.2% | 101.9% | 101.2% |
| Minimum Capital Test (MCT)2 | 240% | 242% | 240% | 242% |
1Growth metrics for 2010 are based on Canadian GAAP values as comparisons do not exist
22010 MCT is as at December 31
